ÑóºÓ¹É·Ý: 2022ÄêÄê¶È±¨¸æ£¨Ó¢Îİ棩

Jiangsu Yanghe Distillery Co., Ltd.
            April 2023
            Section I Important Statements, Contents and Definitions
The board of directors, board of supervisors, directors, supervisors and senior management of Jiangsu Yanghe
Distillery Co., Ltd. (hereinafter referred to as the Company) hereby 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.
Mr. Zhang Liandong, responsible person for the Company, Mr. Yin Qiuming, responsible person for accounting
affairs and Mr. Zhao Qike, responsible person for accounting department (accounting supervisor) have warranted
that the financial statements in this report are true, accurate and complete.
All directors attended the board meeting to review this report.
The future plans and some other forward-looking statements mentioned in this report shall not be considered as
virtual promises of the Company to investors. Investors and people concerned should maintain adequate risk
awareness and understand the difference between plans, predictions and promises. Investors are kindly
reminded to pay attention to possible investment risks.
In the annual report, the possible risks in the operation of the Company are described in detail (see 11. Outlook
for the Future Development of the Company in Section III Management Discussion and Analysis). Investors are
kindly reminded to pay attention to relevant content.
The profit distribution plan approved by the board of directors: based on total share capital participating in the
dividend on the registration date (excluding the repurchased shares held in the Company's special repurchase
securities account) when the profit distribution plan is implemented in the future, a cash dividend of CNY 37.40
(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.
The Company¡¯s Chinese 2022 Annual Report was publicly disclosed on the Shenzhen Stock Exchange and
www.cninfo.com.cn on 26 April 2023. If there are any differences between the English version and the Chinese
one, please refer to the latter.
                                 Contents
Section I Important Statements, Contents and Definitions¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.2
Section II Company Profile and Key Financial Results¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.5
Section ¢ó Management Discussion and Analysis¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­10
Section ¢ó Corporate Governance¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..35
Section ¢ó Environment and Social Responsibility¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..71
Section ¢ó Significant Events¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..78
Section ¢ó Changes in Shares and Information about Shareholders¡­¡­¡­¡­¡­¡­..99
Section ¢ó Information about Preference Shares¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.109
Section ¢ó Information about Bonds¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...110
Section¢ú Financial Report¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.111
                                                     Definitions
                       Term                           Reference                           Definition
The Company, This Company, Yanghe                      Refer to   Jiangsu Yanghe Distillery Co., Ltd.
Yanghe Group, Controlling shareholder                  Refer to   Jiangsu Yanghe Group Co.,Ltd.
The current year, In the reporting period             Refer to    1 Jan. 2022 to 31 Dec. 2022
The report                                            Refer to    2022 Annual Report
Yuan, Ten thousand yuan, A hundred million yuan       Refer to    CNY 0.00, CNY 10,000.00, CNY 100,000,000.00
The shareholders' meeting, the board of directors,                The shareholders' meeting, the board of directors and
                                                      Refer to
the board of supervisors                                          the board of supervisors of the Company
                                                                  Articles of incorporation of Jiangsu Yanghe Distillery
Articles of incorporation                             Refer to
                                                                  Co., Ltd.
SSE                                                   Refer to    Shenzhen Stock Exchange
SRC, CSRC                                             Refer to    China Securities Regulatory Commission
                                                                  State-owned Assets Supervision and Administration
SAC of Suqian, SASAC of Suqian                        Refer to
                                                                  Commission of Suqian
Suya Jincheng, Accounting firm                        Refer to    Suya Jincheng CPA LLP
Blue Alliance                                         Refer to    Jiangsu Blue Alliance Co., Ltd.
Yanghe Branch of the Company                          Refer to    Jiangsu Yanghe Distillery Co., Ltd. Yanghe Branch
Siyang Branch of the Company                          Refer to    Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch
Shuanggou Distillery                                  Refer to    Jiangsu Shuanggou Distillery Stock Co.,Ltd.
Guijiu Comapny                                        Refer to    Guizhou Guijiu Co., Ltd.
Inside and outside the province                       Refer to    Inside and outside Jiangsu Province
               Section II Company Profile and Key Financial Results
Stock abbreviation         Yanghe                           Stock code               002304
Stock exchange where the
shares of the Company    Shenzhen Stock Exchange
are listed
Name of the Company in
                       ½­ËÕÑóºÓ¾Æ³§¹É·ÝÓÐÏÞ¹«Ë¾
Chinese
Abbr. of the Company
                           ÑóºÓ¹É·Ý
name in Chinese
Name of the Company in
                       Jiangsu Yanghe Distillery Joint-Stock Co., Ltd.
English (if any)
Abbr. of the Company
                           Yanghe
name in English (if any)
Legal representative       Zhang Liandong
Registered address         No.118 Middle Avenue, Yanghe Town, Suqian City, Jiangsu Province, China
Postal code of registered
address
Historical changes of the
company's registered      N/A
address
Business address           No.118 Jiudu Avenue, Yanghe Town, Suqian City, Jiangsu Province, China
Postal code of business
address
Company website            http://www.chinayanghe.com
E-mail                     yanghe002304@chinayanghe.com
                                             Company secretary            Representative for securities affairs
Name                                 Lu Hongzhen                         Sun Dali
                                     No.118 Jiudu Avenue, Yanghe Town, No.118 Jiudu Avenue, Yanghe Town,
Address
                                     Suqian City, Jiangsu Province     Suqian City, Jiangsu Province
Tels.                                0527-84938128                       0527-84938128
Fax                                  0527-84938128                       0527-84938128
E-mail                               yanghe002304@chinayanghe.com        yanghe002304@chinayanghe.com
 The website of the stock exchange where       Securities Times, Shanghai Securities Times, China Securities
 the company discloses the annual report       Journal, Securities Daily
 Media name and website of the annual
                                               http://www. cninfo.com.cn
 report disclosed by the company
 Place where the Annual Report of the          Shareholder reading room, the headquarters of the
 Company is kept                               Company, Suqian City, Jiangsu Province
Organization code                    9132000074557990XP
Changes in main business activities
since the Company was listed (if    None
any)
Changes of controlling shareholders
                                    None
of the Company (if any)
Accounting firm engaged by the Company
Name of the accounting firm    Suya Jincheng CPA LLP
Business address of the        14-16/F., Block A, Zhengtai Center, No.159 Taishan Road, Jianye District, Nanjing,
accounting firm                Jiangsu Province
Name of accountants for
                               Li Laimin, Li Yan
writing signature
Sponsors engaged by the Company to continuously perform its supervisory function during the reporting period
¡õApplicable ¡Ì N/A
Financial adviser engaged by the Company to continuously perform its supervisory function during the reporting
period
¡õApplicable ¡Ì N/A
Whether the Company performed a retroactive adjustment or restatement of accounting data
¡õYes   ?No
Operating revenues (CNY)          30,104,896,186.70     25,350,178,204.45               18.76%     21,101,051,131.79
Net profits attributable to
shareholders of the Company        9,377,832,429.08      7,507,682,797.40               24.91%      7,482,228,633.63
(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                           21.03%                18.55%              2.48%                 20.20%
                                 At the end of 2022 At the end of 2021        YoY Change          At the end of 2020
Total assets (CNY)                67,964,247,134.43     67,798,704,193.76                0.24%     53,866,259,306.59
Net assets attributable to
shareholders of the Company       47,474,946,974.68     42,486,209,789.59               11.74%     38,484,583,983.54
(CNY)
The Company's net profit before or after deducting non-recurring profits and losses in the last three fiscal years is
negative, and the audit report of the last year shows that the Company's ability to continue operating is
uncertain
¡õYes   ?No
The net profit before or after deducting non-recurring profits and losses is negative
¡õYes   ?No
   and China accounting standards
   ¡õApplicable ¡Ì N/A
   No such differences during this period.
and China accounting standards
   ¡õApplicable ¡Ì N/A
   No such differences during this period.
                                                                                                           Unit: CNY
                                              Q1                   Q2                    Q3                    Q4
    Operating revenues                 13,026,004,652.73    5,881,994,189.67      7,574,626,286.45       3,622,271,057.85
    Net profits attributable to
    shareholders of the Company
    Net profits attributable to
    shareholders of the Company
    before deducting                    4,897,883,633.65    1,744,789,237.61      2,200,554,186.42         433,417,773.61
    non-recurring profits and
    losses
    Net cash flows from
                                       -3,061,792,273.86    -1,391,962,784.13     3,497,754,845.22       4,603,624,164.96
    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.
   ¡õYes    ?No
   ¡ÌApplicable ¡õN/A
                                                                                                                Unit: CNY
                     Item                            2022                 2021                  2020                Note
Profit or loss from disposal of non-current
assets (including the write-off portion of the     -5,887,909.75        -10,687,905.76         -4,735,638.66
impairment provision)
Government grants included in the profit or
loss for the current period (except those
closely related to the normal business of the
company, in line with the provisions of            60,162,525.57         87,366,302.47        98,175,595.19
national policies, and continuously enjoyed
according to a certain standard quota or
quantity)
Except for the effective hedging business
related to the normal business of the
company, profits and losses from changes in
fair value arising from holding trading
financial assets and trading financial             77,907,331.60        153,349,470.08   2,356,818,184.75
liabilities, as well as the investment income
obtained from the disposal of trading
financial assets, trading financial liabilities
and financial assets available for sale
Impairment provision reversal of the
accounts receivables on which the                                        12,009,031.70
impairment test is carried out individually
Other non-operating income and
expenditure except above-mentioned items
Other profit and loss items that conform to
the definition of non-recurring profits and       3,610,292.93       3,484,445.51         818,031.70
losses
Less: Corporate income tax                       34,647,176.78      79,096,331.61     609,395,883.18
        Minority interests (after tax)              784,942.50          -55,656.60         90,900.93
Total                                          101,187,597.79      134,924,540.11    1,830,159,691.65        --
   Details of other profit and loss items that meet the definition of non-recurring profit and loss£º
   ¡õApplicable ¡Ì N/A
   The company has no specific circumstances of other profit and loss items that meet the definition of
   non-recurring profit and loss.
   Description of defining non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
   Information Disclosure for Listed Companies -Non-recurring Profits and Losses as recurring profit and loss items.
   ¡õApplicable ¡Ì N/A
   There is no such situation that the company classifies the non-recurring profit and loss items listed in the
   Explanatory Announcement No. 1 on Information Disclosure for Listed Companies -Non-recurring Profits and
   Losses as recurring profit and loss items.
                   Section ¢ó Management Discussion and Analysis
According to the data of the National Bureau of Statistics, there were 963 Chinese Baijiu enterprises above
designated size nationwide in 2022, a decrease of 2 compared with the previous year; The output of Chinese
Baijiu was 6,712,400.00 kiloliters, a year-on-year decrease of 5.58%; The operating revenue was CNY662.645
billion, a year-on-year increase of 9.64%; The total profit was CNY220.172 billion, a year-on-year increase of
among famous liquor producing areas, regional markets and price segments intensified, the trend of
consolidation, branding and premiumization became more prominent. The development of Chinese Baijiu
industry has shown a steady upward trend in the fierce competition.
Yanghe is a large Chinese Baijiu production enterprise enjoying high brand awareness and reputation nationwide.
It is the only enterprise in the Chinese Baijiu industry that owns two famous Chinese Baijiu brands, Yanghe and
Shuanggou, two time-honored Chinese brands, six well-known Chinese trademarks, and two 4A level scenic
spots. The company's leading products are Dream Blue, Sky Blue, Ocean Blue, Sujiu, Zhenbaofang, Yanghe Daqu,
Shuanggou Daqu and so on. During the reporting period, in the face of complex international and domestic
situations and fierce market competition, the company overcame pressure and maintained a healthy
development trend of "steady progress" and achieved an operating revenue of CNY30.105 billion, a year-on-year
increase of 18.76%; The company realized a net profit attributable to shareholders of listed companies of
CNY9.378 billion, a year-on-year increase of 24.91%. According to the report of Chinese Baijiu listed companies in
the first three quarters of 2022, the sales scale of the company ranked among the top three in the industry.
The company shall comply with the disclosure requirements of food and wine manufacturing industries in
Self-regulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry Information
Disclosure
The main business engaged
The main business of the company is the production and sales of Chinese Baijiu, which is produced by solid-state
fermentation and sold mainly through two modes: wholesale distribution and online direct sales. The company's
main business and business model did not change during the reporting period. According to the Industry
Classification Guidelines for Listed Companies (revised in 2012) issued by the CSRC, the company belongs to the
"C15 wine, beverage and refined tea manufacturing industry".
Information about brand operation
The Company¡¯s products include Dream Blue, Sujiu, Sky Blue, Zhenbaofang, Ocean Blue, Yanghe Daqu,
Shuanggou Daqu, Guijiu, Sidus Wine and so on. According to the price range standard of ex-factory price, the
Company groups the products into mid/high end and ordinary products. The mid/high end products refer to
those with ex-factory price ¡Ý CNY 100 / 500ml, mainly including Dream Blue craft class, Dream Blue M9,
Dream Blue M6 +, Dream Blue Crystal version, Su Jiu, Sky Blue, Zhenbaofang (Difang, Shengfang), Ocean Blue and
so on. Ordinary products refer to those with ex-factory price £¼ CNY 100 / 500ml, mainly including Yanghe Daqu
and Shuanggou Daqu.
The revenue of various products is as follows:
                                                                                                             Unit: CNY
                                                                         Operating revenue
              Products
     Mid/high end products                              26,226,828,574.84                                            21.87%
       Ordinary products                                 3,273,034,492.80                                                4.97%
Main sales model
The company sells its products mainly through distributors. Its sales models include wholesale distribution and
online direct selling, among which wholesale distribution is the main sales model.
  ¡ÌApplicable        ¡õN/A
                                                                                                              Unit: CNY
                                                                                                   Gross
   Types           Operating revenue      YoY change      Operating cost           YoY change                  YoY change
                                                                                                   margin
By sales model
Wholesale
distribution
   Online
direct selling
  Subtotal           29,499,863,067.64        19.73%          7,214,917,301.54          26.51%       75.54%         -1.31%
By geographical segment
   Jiangsu           13,321,057,010.40        15.28%          3,659,281,374.24          24.59%       72.53%         -2.05%
 Ex-Jiangsu          16,178,806,057.24        23.66%          3,555,635,927.30          28.55%       78.02%         -0.84%
  Subtotal           29,499,863,067.64        19.73%          7,214,917,301.54          26.51%       75.54%         -1.31%
By product
  Mid/high
    end              26,226,828,574.84        21.87%          5,171,156,593.59          28.34%       80.28%         -1.00%
  products
  Ordinary
  products
  Subtotal           29,499,863,067.64        19.73%          7,214,917,301.54          26.51%       75.54%         -1.31%
The company's main products are classified according to the price range standard of ex-factory price, including
medium/high end products ¡Ý 100 CNY / 500ml and ordinary products < 100 CNY / 500ml.
 Geographical segment Distributor number at the end Increase number during the Decrease number during
                          of the reporting period         reporting period       the reporting period
         Jiangsu                            2977                               325                            298
       Ex-Jiangsu                           5261                              1570                           1501
           Total                            8238                              1895                           1799
During the reporting period, the change in the number of distributors was mainly due to the company's
optimization of distribution structure and in-depth national layout, and further adjustment of the distribution
system.
The Company mainly adopts the bank transfer method for settlement, and adopts the method of payment
before goods for product sales.
In 2022, the total sales amount of the top five distributors was CNY 1,540.4580 million, accounting for 5.12% of
the total sales of this year. Among the sales of the top five distributors, the sales from related parties were CNY 0,
accounting for 0% of the total sales of this year. The total amount of receivables of the top five distributors at the
end of the period was zero.
Retail sales accounted for more than 10%.
  ¡õApplicable       ¡Ì N/A
Online direct selling
  ¡Ì Applicable     ¡õN/A
                                                                                                       Unit: CNY
                            Online direct
       Product                                   Sales amount in 2022          Sales amount in 2021      YoY change
                               selling
                             E-commerce
        Liquor                                                392,624,307.67          364,634,097.30             7.68%
                              platforms
  The sales price of the main products accounting for more than 10% of the total operating revenue of the
current period changed by more than 30% compared with the previous reporting period
¡õApplicable ¡Ì N/A
Procurement mode and content
                                                                                                       Unit: CNY
         Procurement mode                       Procurement content                          Amount
                                       Raw materials and packaging
Market bidding                                                                                      6,277,275,721.68
                                       materials
Marketing purchase                     Energy                                                         413,914,303.34
Procurement of raw materials from cooperatives or farmers accounted for more than 30% of the total purchase
amount
  ¡õApplicable ¡Ì N/A
The price of major outsourced raw materials changed by over 30% year on year
  ¡õApplicable ¡Ì N/A
Main production mode
The Company's production mode is self-produced mode, with major parts including raw material crushing,
fermentation, distillation, grade storage, liquor body design and combination, product packaging, etc.
Commissioned production
  ¡õApplicable ¡Ì N/A
The main components of operating costs
                                                                                                             Unit:CNY
                                                          As a
 Types       Cost item                                percentage                          As a percentage YoY change
                                  Amount                                 Amount
                                                      of operating                        of operating cost
                                                          cost
          Direct materials      5,316,873,839.12           69.54%      4,033,119,166.37             64.47%        31.83%
            Direct labor        1,238,729,841.81           16.20%      1,083,148,551.48             17.32%        14.36%
             Fuels and
Chinese                           288,045,390.08            3.77%        234,523,774.33             3.75%         22.82%
              energy
 Baijiu
          Manufacturing
           overhead
Output and inventory
            Types                      Item                Unit            2022              2021         YoY change
                                       Sales               Ton              195,322.68       184,001.07           6.15%
       Chinese Baijiu             Production               Ton              197,590.68       204,331.95           -3.30%
                                     Inventory             Ton               46,496.48        44,228.48           5.13%
  Inventory of finished products (in tons, including          Inventory of semi-finished Baijiu (including raw liquor)
                   baijiu and wine)                                                    (ton)
               Name of production entity                      Design capacity of finished Actual capacity in 2022 (ton)
                                                                    products (ton)
 Yanghe (including Yanghe branch and Siyang branch)                      222,545                       149,275
                    Shuanggou Distillery                                  97,040                        44,143
The Company has significant advantages in natural environment, quality technology, brand building, marketing
network and so on. The Company has formed its unique core competitiveness, which has not changed during the
reporting period.
The Company is located in Suqian, the capital of Chinese Baijiu with 'three rivers, two lakes and one wetland¡¯. As
one of the three famous wetlands in the world, Suqian enjoys equal popularity with the Scotch whisky producing
area and the French Cognac producing area. The long history and unique ecological environment provide a good
source of water, soil and air for production for liquor production. Especially the microorganism condition is
significantly beneficial to production. The Yanghe distillery originated in the Sui and Tang Dynasties, flourished in
the Ming and Qing Dynasties. It had been sold in Jianghuai area during the period of Yong Zheng of Qing Dynasty.
It has a good reputation that 'dainty taste derived from fortune spring and liquor ocean, which made Yanghe
rank first place in Jianghuai area'. Shuanggou alongside Yanghe was praised as the origin of Chinese natural liquor
by domestic and overseas experts due to the discovery of drunken ape fossils in Xiacaowan.
Considering the diversification and individuation of consumption demand, the Company took the lead in
breaking the traditional classification of Baijiu flavor. The Company classifies Baijiu based on taste and
emphasizes the value of taste. The Company strengthens the mellowness of Baijiu, puts forward the new style of
the mellow Baijiu quality, and deeply meets core demand of target consumers. It has successfully established
new craft of mellow Baijiu production and system framework of mellowness mechanism, which caters to market
consumption. In June 2008, "Mellowness", a special type of Yanghe, was first written into the national standard
in China Protected Geographical Indication Product- Yanghe Daqu (Standard No. GB/T220406-2008). In 2019, the
company formulated the group standard named "Mellow Baijiu" (i.e., t/cbj2104-2019), which further enriched
and improved the relevant standards of mellow Baijiu. In 2022, the company formulated the standards of "Baijiu
Wetland Real Estate Area" (T/CBJ2305-2022) and "Wetland Baijiu" (T/CBJ2110-2022), which promoted the
specification of technical quality standards for wetland liquor.
The Company has 39 Masters of Chinese Baijiu, 78 provincial Baijiu tasting committee members and 1975
technicians. The Company also has 10 national and provincial technical research and development platforms. The
obvious advantage of technical talents provides technical support for the continuous improvement of mellow
Baijiu quality. In 2022, the company's three scientific and technological achievements, "Research and Application
of Targeted Flavor Song of Mianrou Baijiu", "Integrated Research and Industrial Application of Digital Technology
for Solid Liquor Brewing", and "Research on Autophagy and Antioxidant Effects of Mianrou Baijiu" were
identified by the China Light Industry Federation. In the 6th National Sommelier Competition sponsored by the
China Alcoholic Drinks Association, the company won the championship for five consecutive times, and 6
representatives entered the top ten of the lists, fully demonstrating the company's talent advantages.
The Company, as one of the eight traditional well-known Baijiu enterprises, is the only one in China's liquor
industry that has two Chinese famous wines, Yanghe and Shuanggou, two Chinese time-honored brands, six
well-known Chinese trademarks such as Yanghe, Shuanggou, Blue Classic, Zhenbao Fang, Dream Blue, Su, two
national 4A scenic spots, two national industrial heritages, and a national key cultural relics protection unit. In
world-renowned brand value research institution, the company ranked fourth in the world with a brand value of
USD6.446 billion and ranked 102nd in the "China's 500 Most Valuable Brands" released by World Brand Lab, with
a brand value of CNY75.545 billion.
The company has a marketing team with the latest ideas and the strongest execution. Its marketing network has
penetrated into all counties and regions in China; The high-speed channel for distribution has been basically built,
laying a solid foundation for future market expansion and category extension. Meanwhile, as a traditional
enterprise, Yanghe has consistently optimized new sales model and advanced digital transformation. The sales
digitalization of Yanghe has become a case study for Tsinghua University, showcasing the leading position of
Yanghe in internet application.
During the reporting period, the company closely focused on the main line of high-quality development,
efficiently implemented annual work deployment and planning, and maintained the development trend of
"seeking progress in stability and excellence in progress", accumulating strength for writing a new chapter of
"stable high quality, sustainable in progress, and healthier in good life". In 2022, the company achieved an
operating income of CNY30.105 billion, a year-on-year increase of 18.76%; The net profit attributable to
shareholders of the listed company was CNY9.378 billion, a year-on-year increase of 24.91%; The net profit
attributable to shareholders of the listed company after deducting non-recurring profits and losses was CNY9.277
billion, a year-on-year increase of 25.82%.
Solid strengths and supports are deeply integrated, and products are upgraded on the basis of improving
quality. Continue to explore the research and application of the mechanism of Mianrou, three innovative
scientific and technological achievements have been identified, and the yield and quality of winemaking have
achieved a double harvest. In the National Sommelier Competition sponsored by the China Alcoholic Drinks
Association, the company's technical team won the championship for five consecutive times, which further
highlighted the talent advantage. Continue to optimize the storage structure of raw wine, and orderly promote
the construction of key projects such as high-end wine storage, which provides strong support for the ultimate
softness. Focusing on the concept of "product refinement, structural optimization, and scale expansion", Dream
Blue handmade class (master) was launched, upgraded Haizhi Blue, Ecological Sujiu, Difang and other products,
sorted out and eliminated 218 SKUs, consolidated the position of Meng6+ strategic subject, strengthened the
cultivation of crystal version of Dream Blue consumers, and continuously expanded the scale of Ocean Blue, and
further optimized the product matrix.
The deep integration of cohesion and combat effectiveness promotes the development of the company and
accumulates advantages. Continue to build a "strategic community, value community, interest community, and
destiny community" for manufacturers, focus on the structural optimization of distributors, and improve the
cultivation system for distributors around "attracting large enterprises, supporting excellent enterprises, and
strengthening good enterprises ", and further improve the quality of distributors¡¯ teams. Strengthen channel
construction, adapt measures to local conditions in the regional market, comprehensively enhance the
competitiveness of the market in Jiangsu province, steadily promote the sales market outside the province, and
effectively break through the cultivation market outside Jiangsu province. To help market construction with
digitalization, digital marketing tools were utilized in main products were to achieve monitoring, analysis and
traceability of the whole process, and jointly help the marketing.
The organizational force and the driving force are deeply integrated, and the forward momentum is
continuously gathered. Focusing on "the marketing headquarters formulates the strategy and the business
department is responsible for the implementation", it promotes the adjustment of the marketing organizational
structure, realizes the sinking of the organizational structure, effectively stimulates the potential of the team, and
improves the organizational efficiency. Guided by the "Nine Persistence," the company trains cadres, discovers
cadres, selects and promotes cadres, and appoints cadres on the front line, so as to deeply stimulates and
mobilizes the enthusiasm of cadres. Continue to build a collaborative supervision system and make every effort
to purify the market business environment. Improve the incentive mechanism of "efficient growth, efficient
incentive and efficient constraint" of the marketing system, improve the "communication, assistance,
emergency" mechanism and the welfare system of "activities, treatment and service" to stimulate the
high-quality development of the company.
The leading power and the appeal are deeply integrated, and the highlights of the brand continue to appear.
With dream culture as the link, broaden the brand communication matrix, and actively spread Chinese wine
culture with the help of international events such as the SCO Summit and the 51st anniversary of China-US table
tennis diplomacy; Together with the Space Foundation to fully support the launch of the Wentian Experimental
Module, Mengtian Experimental Module and the 14th China Aerospace Expo; Innovative publicity methods, the
Mid-Autumn Festival live broadcast has reached tens of millions of viewers, and the new version of Ocean Blue is
efficiently spread with the help of the power of science and technology; Actively promote the construction of the
"Dream Blue Brand Experience Center", and improve the consumer operation system through online consumer
operation and offline consumer attraction. Continuously practicing social responsibility, poverty alleviation and
rural revitalization have been deepened, and the "Chinese Craftsmanship, Light of Dreams" sealing ceremony
was successfully held, and the "National Harmonious Labor Relations Creation Demonstration Enterprise" was
obtained, realizing the effective linkage between the dream of enterprise development and the dream of
employee growth, the dream of partners, and the dream of home.
(1) Breakdown of operating revenues
                                                                                                        Unit£ºCNY
                                           As a percentage                        As a percentage
                                                                                                     YoY change
                          Amount            of operating         Amount            of operating
                                              revenues                               revenues
Total                 30,104,896,186.70              100%     25,350,178,204.45             100%             18.76%
By business segment
Liquor                29,499,863,067.64            97.99%     24,638,674,089.57           97.19%             19.73%
Other                     605,033,119.06            2.01%        711,504,114.88            2.81%             -14.96%
By product
Baijiu                29,338,843,747.26            97.46%     24,440,221,392.60           96.41%             20.04%
Wine                      161,019,320.38            0.53%       198,452,696.97             0.78%             -18.86%
Other                     605,033,119.06            2.01%        711,504,114.88            2.81%             -14.96%
By geographical segment
Jiangsu               13,594,267,792.89            45.16%     11,800,507,954.17           46.55%             15.20%
Ex-Jiangsu            16,510,628,393.81            54.84%     13,549,670,250.28           53.45%             21.85%
By sales model
Wholesale
distribution
Online direct
selling
Other                      605,033,119.06              2.01%       711,504,114.88               2.81%            -14.96%
(2) Business segment, products, geographical segments or sales models contributing over 10% of the
    operating revenues or profits
¡Ì Applicable     ¡õN/A
                                                                                                              Unit: CNY
                                                            Gross       YoY change of                YoY change of
                   Operating                                                          YoY change of
                                       Cost of sales        profit        operating                   gross profit
                   revenues                                                            cost of sales
                                                            margin         revenue                      margin
By business segment
Liquor           29,499,863,067.64    7,214,917,301.54         75.54%           19.73%            26.51%          -1.31%
By product
Baijiu           29,338,843,747.26    7,126,963,516.65         75.71%           20.04%            27.19%          -1.36%
By geographical segment
Jiangsu          13,321,057,010.40    3,659,281,374.24         72.53%           15.28%            24.59%          -2.05%
Ex-Jiangsu       16,178,806,057.24    3,555,635,927.30         78.02%           23.66%            28.55%          -0.84%
By sales mode
Wholesale
distribution
Online
direct             392,624,307.67           84,037,614.45      78.60%            7.68%            60.96%          -7.08%
selling
Under the circumstances that the statistical standards for the Company¡¯s main business data adjusted in the
reporting period, the Company¡¯s main business data in the current one year is calculated based on adjusted
statistical standards at the end of the reporting period.
¡õApplicable ¡Ì N/A
(3) Whether revenue from physical sales is higher than service revenue
¡Ì Applicable ¡õN/A
   By business
                    Item                        Unit                 2022                2021              YoY change
    segment
                      Sales volume               Ton                 195,322.68          184,001.07               6.15%
                        Production
Baijiu                                           Ton                 197,590.68          204,331.95               -3.30%
                          volume
                    Inventory volume             Ton                    46,496.48         44,228.48               5.13%
                      Sales volume               Ton                     2,406.64          2,654.55               -9.34%
                        Production
Wine                                             Ton                     2,616.66          2,856.66               -8.40%
                          volume
                    Inventory volume             Ton                        839.15              629.13           33.38%
Reasons for any over 30% YoY changes in the data above.
¡Ì Applicable ¡õN/A
The inventory of red wine increased by 33.38% year-on-year, mainly due to the increase in stocking at the end of
the year.
(4) Execution of significant sales contracts and significant purchase contracts in the reporting period
¡õApplicable ¡Ì N/A
(5) Breakdown of cost of sales
By business and product segment
                                                                                                            Unit£ºCNY
 By business                                                                                  As a
                 Item                            As a percentage                                          YoY change
  segment                         Amount                                Amount           percentage of
                                                 of cost of sales
                                                                                          cost of sales
Liquor                        7,214,917,301.54            94.37% 5,702,863,048.47               91.17%         26.51%
                                                                                                            Unit£ºCNY
 By product                                                As a                               As a
                     Item                                                                                 YoY change
  segment                              Amount         percentage of       Amount         percentage of
                                                       cost of sales                      cost of sales
Liquor         Direct materials    5,402,139,505.20         70.66% 4,128,993,712.95             66.01%         30.83%
Liquor         Direct labor        1,240,006,256.85         16.22% 1,085,084,143.74             17.35%         14.28%
Liquor         Fuels and energy      288,774,712.57             3.78%   235,359,439.08           3.76%         22.70%
               Manufacturing
Liquor                               283,996,826.92             3.71%   253,425,752.70           4.05%         12.06%
               overhead
Note: Nil
(6) Changes in the scope of the consolidated financial statements for the reporting period
¡Ì Applicable    ¡õ N/A
Establishment of subsidiaries
In March 2022, the company jointly invested CNY400 million with Tibet Earth Third Pole Industry Development
Co., Ltd., Lhasa Pure Land Industry Investment and Development Group Co., Ltd. and Shenzhen Baoneng Food
Technology Group Co., Ltd. to establish Tibet Earth Third Pole Wine Co., Ltd., of which the company contributed
CNY204 million, accounting for 51% of its registered capital; Tibet Earth Third Pole Industry Development Co., Ltd.
invested CNY72 million, accounting for 18% of its registered capital; Lhasa Pure Land Industry Investment and
Development Group Co., Ltd. invested CNY64 million, accounting for 16% of its registered capital; Shenzhen
Baoneng Food Technology Group Co., Ltd. invested CNY60 million, accounting for 15% of its registered capital. It
will be included in the consolidated financial statements as of March 2022.
In August 2022, Guizhou Maotai Town Guijiu Liquor Co., Ltd., a holding subsidiary, invested CNY500,000 to
establish Guizhou Guijiu Liquor Operation Co., Ltd., accounting for 100% of its registered capital. It has been
included in the consolidated financial statements since August 2022.
In August 2022, the company subscribed to contribute CNY10 million to establish Jiangsu Azure Beverage
Catering Management Co., Ltd., accounting for 100% of its registered capital. It has been included in the
consolidated scope of consolidated financial statements since August 2022.
In August 2022, the company subscribed to contribute CNY300,000 to establish Jiangsu Yanghe Dream
Investment Management Co., Ltd., accounting for 100% of its registered capital. It has been included in the
consolidated scope of consolidated financial statements since August 2022.
In September 2022, Jiangsu Yanghe Dream Investment Management Co., Ltd., a holding subsidiary, invested
CNY10 million to establish Jiangsu Yanghe Blue Investment Management Co., Ltd., accounting for 100% of its
registered capital. It has been included in the consolidated scope of the consolidated financial statements since
September 2022.
Subsidiary deregistration
In September 2022, Jiangsu Collite Biotechnology Research Institute Co., Ltd., a holding subsidiary, was cancelled
and no longer be included in the consolidated scope of the consolidated financial statements from October 2022.
In November 2022, Guizhou Guijiu Liquor Operation Management Co., Ltd., a holding subsidiary, was liquidated
and cancelled, and it was no longer be included in the consolidated scope of consolidated financial statements
from December 2022.
(7) Major changes in the business, products or services in the reporting period
¡õApplicable ¡Ì N/A
(8) Main customers and suppliers
Sales to major customers of the Company
 Total sales from top five customers£¨CNY£©                                                           1,540,457,955.89
 Total sales from top five customers as a percentage of
 the total sales
 Total sales from related parties among top five
 customers as a percentage of the total sales
Information on top five customers
                                                                                  As a percentage of the total sales
    No.                 Customer                    Sales amount (CNY)
                                                                                            for the year
Total                       --                                 1,540,457,955.89                                5.12%
Other information on major customers
¡õApplicable ¡Ì N/A
Major suppliers of the Company
Total purchase from top five suppliers£¨CNY£©                                                        1,229,265,656.40
Total purchase from top five suppliers as a
percentage of the total sales
Total purchase from related parties among top
five suppliers as a percentage of the total                                                                   0.00%
purchase
Information on top five suppliers
                                                                                    As a percentage of the total
    No.                   Supplier                     Purchases (CNY)
                                                                                       purchase for the year
Total                        --                               1,229,265,656.40                               17.53%
Other information on major suppliers
¡õApplicable ¡Ì N/A
                                                                                                     Unit£ºCNY
Selling and
distribution expenses
General and
administrative           1,935,673,295.75     1,830,080,139.18            5.77%
expenses
                                                                                The increase in time deposits
                                                                                was due to a corresponding
Finance expenses          -636,470,105.91      -399,145,509.96          -59.46%
                                                                                increase in interest income on
                                                                                deposits.
R&D expenses               253,574,976.39      258,458,102.63             -1.89%
The company shall comply with the disclosure requirements of food and wine manufacturing businesses in Self
Regulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry Information Disclosure
 The composition of selling and distribution expenses
                                                                                                            Unit£ºCNY
                                          As a percentage of                           As a percentage of
                    Current period            selling and         Previous period          selling and
      Item                                                                                                  YoY change
                       amount                distribution             amount              distribution
                                               expenses                                     expenses
Advertising and
promotion             2,414,204,544.39                57.77%        1,911,827,032.90               53.94%        26.28%
expense
Payroll               1,177,066,920.45                28.17%        1,065,844,674.57               30.07%        10.44%
Travel expense           433,273,104.21               10.37%          390,432,690.88               11.02%        10.97%
Labor expense             47,961,453.63                1.15%           88,722,961.18                2.50%       -45.94%
E-commerce
expense
Other expense             72,783,688.70                1.74%           49,736,198.81                1.40%        46.34%
Subtotal              4,179,140,807.85               100.00%        3,544,364,889.54              100.00%        17.91%
 Composition of advertising costs:
                                                                                                            Unit£ºCNY
                                                                                    As a percentage of advertising
                  Item                          Current period amount
                                                                                              expense
 Nationwide advertising expense                                 1,079,779,124.66                               84.07%
 Regional advertising expense                                    204,531,402.15                                15.93%
 Total                                                          1,284,310,526.81                                100%
 ¡Ì Applicable ¡õ N/A
   Name of main R &                                                          Objectives to be     Expected impact on
                                Purpose                Progress
      D projects                                                                achieved          future development
                                                                          characteristic flavor   process is
                                                                          system of Daqu and      continuously
                                                                          its microecological     optimized to meet
   Research and
                                                                          formation               the demand for
   application of
                                                                          mechanism; 2.           high quality; 2.
   microecological
                          Optimize                Successfully            Optimize the            Continuously enrich
   regulation
                          production              promoted and            fermentation            the application
   technology based
                          processes and           applied in              factors of key flora    results of
   on flavor
                          flavor profiles.        September 2022.         growth and              microorganisms in
   enhancement of
                                                                          metabolism; 3.          winemaking
   Daqu
                                                                          Build a targeted        production, and
   characteristics
                                                                          regulation              improve the
                                                                          technology for          adaptability of
                                                                          microbiota              Daqu and
                                                                          optimization and        winemaking
                                                                     flavor                 production.
                                                                     improvement.
                                                                     product positioning
                                                                     according to the
                                                                                            Complete the
                                                                     consumption trend
                                                                                            technical reserve of
                        Provide young                                of young
                                                                                            new tasting drinks
 Research on young,     consumers with                               consumers; 2.
                                                Successfully                                other than liquor,
 personalized and       fashionable,                                 Develop 2 kinds of
                                                developed in                                providing support
 fashionable            healthy and                                  fashionable and
                                                November 2022.                              and assistance for
 products               personalized new                             personalized fruit
                                                                                            the company's
                        wine products.                               wine and 2 kinds of
                                                                                            diversification
                                                                     healthy and healthy
                                                                                            strategy.
                                                                     dew wine, and form
                                                                     a supporting
                                                                     process.
                                                                                            The output of raw
                                                                                            wine with different
                                                The milestone
 Research on the                                                     comprehensive          is controlled from
                        Analyze the reasons     target will be
 quality differences                                                 information            the perspective of
                        for the difference in   completed in
 of raw wine and the                                                 database; 2.           production, which
                        taste between           December 2022
 key ingredients of                                                  Analyze the taste      provides an
                        different original      and is expected to
 typical                                                             differences of         important
                        sake.                   be completed in
 characteristics                                                     different types of     theoretical basis for
                                                November 2023.
                                                                     original wine.         the precision of
                                                                                            auxiliary production
                                                                                            process.
                                                                     composition and
                        In order to analyze
                                                                     evolution of the
                        the composition of
                                                                     brewing
                        the brewing
                                                                     environment and        It provides support
                        environment
                                                                     brewing process        for the analysis of
                        microecology in the
                                                The phased target    microbial              the microecological
                        summer and
 Interaction study of                           will be completed    community in the       structure of the
                        autumn production
 brewing                                        in December 2022     summer and             liquor brewing
                        areas, and to
 environment                                    and is expected to   autumn production      environment and
                        elaborate the
 micro-ecosystem                                be completed in      area; 2. Clarify the   the formation
                        interaction
                                                December 2023.       interaction            mechanism of
                        between
                                                                     between summer         brewing in the
                        environmental
                                                                     and autumn             production area.
                        microecology and
                                                                     brewing
                        winemaking
                                                                     microecology and
                        production.
                                                                     brewing
                                                                     production.
Information about R&D personnel
Number of R&D personnel                               587                        575                       2.09%
R&D personnel as a
percentage in total                                2.99%                      3.20%                       -0.21%
employees
Educational background of R & D personnel
Bachelor degree                                       155                        156                      -0.64%
Master degree                                         59                          54                       9.26%
Age of R & D personnel
Under 30                                              51                          58                      -12.07%
Between 30 and 40                                    343                         340                       0.88%
Information about R&D input
R&D input (CNY)                          260,555,532.15               270,723,001.71                       -3.76%
R&D input as a percentage
in operating revenues
Capitalized R&D input
(CNY)
Capitalized R&D input
percentage in total R&D                           2.68%                       4.53%                        -1.85%
input
Reasons and effects of YoY change in the composition of R & D personnel.
¡õApplicable ¡Ì N/A
Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.
¡õApplicable ¡Ì N/A
Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.
¡Ì Applicable ¡õ N/A
The capitalized amount of R&D investment in the reporting period decreased by 43.09% compared with the
same period of the previous year, mainly due to the decrease in technology R&D equipment purchased in the
current period.
                                                                                                    Unit£ºCNY
           Item                        2022                         2021                     YoY change
Subtotal of cash inflows
from operating activities
Subtotal of cash outflows
from operating activities
Net cash flows from
operating activities
Subtotal of cash inflows
from investing activities
Subtotal of cash outflows
from investing activities
Net cash flows from
investing activities
Subtotal of cash inflows
from financing activities
Subtotal of cash outflows              4,534,576,978.60            4,498,567,810.77                        0.80%
from financing activities
Net cash flows from
                                         -4,491,776,978.60             -3,547,817,810.77                    -26.61%
financing activities
Net increase in cash and
cash equivalents
Explanation of why the data above varied significantly.
¡ÌApplicable ¡õ N/A
Net cash flow from operating activities decreased by 76.19% in the current period compared with the same
period of the previous year, mainly due to the decrease in cash received from the sale of goods and services in
the current period, as well as the increase in various taxes and fees paid in the current period.
The net cash flow generated by investment activities increased by 118.68% over the previous period, mainly due
to the decrease in cash paid for investment due to the increase or decrease of wealth management products in
the current period, which was greater than the decrease in cash received from investment recovery, resulting in
an increase in net cash flow from investment activities.
The net increase in cash and cash equivalents decreased by 76.68% in the current period compared with the
same period of the previous year, mainly due to the decrease in net cash flow from operating activities in the
current period compared with the same period of the previous year.
An explanation of the reasons for the significant difference between the net cash flow generated by the
Company's operating activities and the net profit for the year during the reporting period
¡Ì Applicable      ¡õ N/A
The reasons for the large difference between net cash flow and net profit from operating activities was mainly
due to the reduction in contractual liabilities and taxes payable, resulting in a larger decrease in operating
payables.
¡Ì Applicable      ¡õ N/A
                                                                                                          Unit£ºCNY
                                              As a percentage
                            Amount                                      Reasons                 Sustainability
                                               of total profits
                                                               It is mainly the wealth
                                                               management income
Investment                                                     and the investment
income                                                         income of trading
                                                               financial assets during
                                                               the holding period
                                                                Mainly due to changes
Changes in fair
                            -318,331,123.43              -2.55% in fair value of financial No
value
                                                                assets held for trading
Asset                                                             provision for stock
                            -2,333,823.54                -0.02%                                 No
impairment                                                        obsolescence
                                                               compensation and
Non-operating
income
                                                               income
                                                               Mainly due to donation
Non-operating                                                  expenses and losses
expenses                                                       from retirement of fixed
                                                               assets
                                                                                                            Unit£ºCNY
                    As at the end of 2022        As at the beginning of 2021
                                         As a                             As a   Change
                                       percen                           percenta   In            Explanation about any
                       Amount          tage of       Amount               ge of percenta          significant changes
                                         total                            total    ge
                                        assets                           assets
Cash and cash
equivalents
Accounts
receivable
Inventories        17,729,258,966.54 26.09%      16,803,093,441.81       24.78%         1.31%
Long-term
equity                 32,979,630.21    0.05%           32,743,397.31      0.05%
investments
Fixed assets        5,794,773,069.53    8.53%     6,276,466,308.05         9.26%    -0.73%
Construction in
progress
Right-of-use
asset
Contract
liability
Long-term
borrowings
Lease
Liabilities
The proportion of overseas assets is relatively high.
¡õApplicable ¡Ì N/A
¡Ì Applicable    ¡õ N/A
                                                                                                     Unit£ºCNY
                                         Changes in
                            Changes in
                                              the
                             fair value                           Amount
               Opening                   cumulative Provision for          Amount of  Other             Closing
     Item                   recognized                               of
               balance                    fair value impairment              sale    change s           balance
                            in profit or                          purchase
                                          recorded
                                loss
                                         into equity
Financial
Assets
assets held
for trading
(excluding
derivative
financial
assets)
Total
Financial
liabilities
Other changes
No
Whether measurement attribution of main assets changed significantly during this period
¡õApplicable ¡Ì N/A
No
¡Ì Applicable ¡õ N/A
 Investment made in the reporting        Investment made in the prior year
                                                                                        YoY change
          period (CNY)                               (CNY)
¡õApplicable ¡Ì N/A
¡õApplicable ¡Ì N/A
¡Ì Applicable ¡õ N/A
(1) Securities investment
                                         Unit£ºCNY
                                                                                                           Changes
                                                                                                             in the
                                                             Accoun                           Changes in                                         Profit and
                                                                                                           cumulati
                                                     Initial  ting                             fair value                                       loss during
 Category of       Stock        Abbr. of                                     Opening                        ve fair Amount of   Amount of                        Closing         Accounting   Capital
                                                  investment measur                           recognized                                            the
  securities       code        securities                                    balance                         value   purchase     sale                           balance           subject    source
                                                      cost   ement                            in profit or                                       reporting
                                                                                                           recorded
                                                             model                                loss                                            period
                                                                                                              into
                                                                                                            equity
                           Shanghai Yunfeng                                                                                                                                   Other
                           Xincheng               1,176,435,004. Fair                                                                                           1,176,435,004.Non-current Owned
Other            Nil                                                       1,252,231,763.94                                     75,796,759.92
                           Investment Center                  02 value                                                                                                     02 financial   Fund
                           (L.P.)                                                                                                                                             assets
                                                                                                                                                                               Other
Domestic and                                                       Fair                       -227,368,419.8                                                                   Non-current Owned
foreign stocks                                                     value                                  4                                                                    financial   Fund
                                                                                                                                                                               assets
                           Pan Mao                                                                                                                                             Other
                           (Shanghai)                              Fair                                                                                                        Non-current Owned
Other            Nil                              276,185,376.22            360,911,196.41    33,762,373.80                                      3,226,340.17   394,673,570.21
                           Investment Center                       value                                                                                                       financial   Fund
                           (L.P.)                                                                                                                                              assets
                                                                                                                                                                               Other
                           CHINA MINSHENG                          Fair                       -247,000,000.0                                                                   Non-current Owned
Other            Nil                              650,000,000.00            585,000,000.00                                                                      338,000,000.00
                           TRUST Co., Ltd.                         value                                  0                                                                    financial   Fund
                                                                                                                                                                               assets
                                                                                                                                                                               Other
                           Lianchu Reserve                         Fair                                                                                                                    Owned
Other            Nil                              330,000,000.00            330,000,000.00                                                                      330,000,000.00 Non-current
                           Securities Co., Ltd.                    value                                                                                                                   Fund
                                                                                                                                                                               financial
                                                                                                                                                                                                   assets
                                 Jinshi Kunxiang                                                                                                                                                 Other
                                 Equity                                  Fair                                                                                                                    Non-current Owned
Other                Nil                                208,695,182.50                258,930,097.01    17,596,365.46                           27,673,591.80                     248,852,870.67
                                 Investment(Hangzh                       value                                                                                                                   financial   Fund
                                 ou)Partnership(L.P.)                                                                                                                                            assets
                                 Suzhou Danqing
                                 Phase II Innovative                                                                                                                                             Other
                                 Pharmaceutical                          Fair                                                                                                                    Non-current Owned
Other                Nil                                173,710,818.17                232,906,944.43    15,086,057.90                            7,885,119.23                     240,107,883.10
                                 Industry                                value                                                                                                                   financial   Fund
                                 Investment                                                                                                                                                      assets
                                 Partnership (L.P.)
                                                                                                                                                                                                 Other
Domestic and                                                             Fair                                                                                                                    Non-current Owned
                     VSPT        Vina San Pedro         425,350,132.53                237,412,110.83     2,284,386.60                                             16,081,193.22   239,696,497.43
foreign stocks                                                           value                                                                                                                   financial   Fund
                                                                                                                                                                                                 assets
                                 Nanjing Xingnahe
                                                                                                                                                                                                 Other
                                 Venture Capital
                                                                         Fair                                                                                                                    Non-current Owned
Other                Nil         Partnership            205,027,500.00                162,490,000.00                            50,000,000.00    7,462,500.00                     205,027,500.00
                                                                         value                                                                                                                   financial   Fund
                                 (Limited
                                                                                                                                                                                                 assets
                                 Partnership)
                                 CICC Jiatai Phase II                                                                                                                                            Other
                                 (Tianjin) Equity                        Fair                                                                                                                    Non-current Owned
Other                Nil                                119,096,307.39                301,532,355.61 -59,286,322.18                             41,705,511.69                     200,540,521.74
                                 Investment Fund                         value                                                                                                                   financial   Fund
                                 Partnership (L.P.)                                                                                                                                              assets
Other securities investments held at the end of this    1,630,818,987.                                                                          1,772,504,892.                    1,838,146,936.
                                                                                --   3,459,505,221.46   72,839,306.39    0.00   74,806,086.81                    128,595,994.95                         --     --
period                                                             17                                                                                      08                                79
Total                                                                           --   8,242,761,789.29                    0.00 124,806,086.81                     150,745,633.59                         --     --
         (2) Derivative investments
         ¡õApplicable ¡Ì N/A
    No such cases in the reporting period.
    ¡õApplicable ¡Ì N/A
    No such cases in the reporting period.
    ¡õApplicable ¡Ì N/A
    No such cases in the reporting period
    ¡õApplicable      ¡Ì N/A
    ¡Ì Applicable ¡õ N/A
    Main subsidiaries and joint companies with an over 10% influence on the Company¡¯s net profit
                                                                                                                              Unit£ºCNY
 Company     Company          Business   Registered                                            Operating         Operating
                                                          Total assets       Net assets                                            Net profit
  name         type            scope       capital                                              revenue           profit
Su Wine                   Wholesalin
Trade                     g and
Group      Subsidiary     retailing of   334,400,000.00   24,356,255,484.58 6,551,117,577.66 25,742,788,677.28 7,333,596,391.79    5,625,339,043.93
Limited by                prepackage
Share Ltd.                d food
Jiangsu
Shuanggou                 Production
Distillery Subsidiary     and sales      110,000,000.00    8,605,549,762.72 5,646,892,673.28   2,181,426,315.65 2,103,043,324.29   2,092,249,046.41
Stock Co.,                of Baijiu
Ltd.
Jiangsu                   Wholesalin
Shuanggou                 g and
Liquor    Subsidiary      retailing of   5,000,000.00      3,906,483,280.76 1,431,143,783.08   5,022,586,319.41 1,890,756,493.83   1,418,052,154.87
Operation                 prepackage
Co., Ltd.                 d food
    Acquisition and disposal of subsidiaries during the reporting period
    ¡Ì Applicable ¡õ N/A
                                                 How subsidiary was acquired or
                                                                                               Impact on overall operation and
               Subsidiary name                    disposed during the reporting
                                                                                                           results
                                                             period
 Tibet Earth Third Pole Wine
                                      Establishment                        minor
 Industry Co., Ltd
 Guizhou Guijiu Wine Industry
                                      Establishment                        minor
 Operation Co., Ltd
 Jiangsu Azure Drink Catering
                                      Establishment                        Tiny
 Management Co., Ltd
 Jiangsu Yanghe Dream Investment
                                      Establishment                        minor
 Management Co., Ltd
 Jiangsu Yanghe Blue Investment
                                      Establishment                        minor
 Management Co., Ltd
 Jiangsu Collite Biotechnology
                                      Deregistration                       Tiny
 Research Institute Co., Ltd
 Guizhou Guijiu Wine Operation
                                      Deregistration                       Tiny
 Management Co., Ltd
¡õApplicable ¡Ì N/A
Industry situation analysis
    enhancement of consumer brand awareness, the trend of liquor market share concentration to the head
    brand is becoming more and more obvious, and the industry differentiation continues to intensify. Leading
    enterprises with "brand advantages, management advantages, channel advantages, and talent advantages"
    are more likely to win in the future liquor market competition and seize more market share.
    intensified, and all liquor companies will continue to innovate and optimize in terms of "products, brands,
    channels, and marketing models", the development pattern and competition situation of the liquor industry
    are gradually taking shape, and the competitive advantage of the head brand will continue to be enlarged,
    and will be further strengthened in the future market competition.
    above designated size was 6.7124 million kiloliters, down 5.58% from the same period of the previous year,
    and the sales revenue in the same period has steadily increased, and the trend of consumption upgrading is
    obvious. Consumers pay more attention to brands, the industry has entered the era of "long-term lack of
    wine, long-term shortage of good wine", wine companies with strong "brand power and product power" will
    enjoy more consumption upgrade dividends.
The company's development strategy and business plan
    During the "14th Five-Year Plan" period, the company adheres to the consumer-centered, double-famous
    baijiu as the main body, multi-brand as the pillar, quality-oriented, brand-based, culture as the soul,
    innovation as the key, builds the "12345" strategic system, creates the Yanghe leading the wave and the
    surging power of the double ditch, promotes the continuous growth of the quantity and the steady
   improvement of the quality of the enterprise at a higher level, achieves a fuller, more balanced, more
   high-quality and efficient development, Yanghe becomes a Chinese taste that Chinese are proud of and the
   Chinese business card remembered by the world.
   In 2023, the company will promote the company to achieve higher quality, more sustainable and healthier
   development with stronger confidence, and strive to achieve a year-on-year increase in operating income of
   (1) Focus on high quality and promote enterprise party building. Adhere to the leadership position of party
       building, promote the common development of party building business, strengthen the party's overall
       leadership, fully clarify the leading role of party building, and take high-level party building as a powerful
       driving force for the high-quality development of enterprises. Adhere to the construction of party style
       and clean government as the fundamental guarantee for enterprise development, and continue to
       create a good ecology of "secondary entrepreneurship".
   (2) Focus on a high starting point and make another breakthrough to promote the continuous improvement
       of market construction. Seize the opportunity of brand centralized development, promote the
       optimization of regional structure and product structure, vigorously expand leading brands such as
       Haitian Dream and Zhenbao Fang, and promote the reshaping of brand value of famous wines to achieve
       in-depth coverage of sales channels and consumption scenarios. Based on the integrated construction of
       manufacturers, implement the "1320" strategy, promote the strong business project, rich business
       project, and business support project, improve the operation level of the core distributor market, and lay
       a solid foundation for full market expansion. Strengthen business capabilities and basic management,
       improve the conference battle and graded training system, pay attention to the assessment of process
       indicators, and realize the improvement of team, market and distributor management.
   (3) Focus on high positioning and re-excellence, and continue to promote brand building. Make full use of
       the company's brand advantages, closely focus on the company's brand development strategy, further
       build a hierarchical brand system, establish a clearer brand path, strengthen systematic brand publicity,
       strengthen market services, and realize the effective linkage of brand communication and marketing
       expansion. The company aims to tell the story of brand identity, focus on improving communication
       efficiency, expand the high-end media matrix, deepen the expression of quality value, achieve more
       efficient brand communication, and promote the vigorous development of the company's brand.
   (4) Focus on high requirements and secondary upgrades, and continue to promote product construction.
       Improve the dynamic product management system, continuously optimize the product structure, realize
       the management of the product life cycle through digital technology, and further shape a product line
       with clear levels and comprehensive price coverage. Adhere to the original heart, continue to do a good
       job in product quality improvement, characteristic product creation, key topic research, to ensure quality
       upgrade. Adhere to market awareness, responsibility awareness, service awareness, continue to improve
       product guarantee level, operation control capabilities, and provide strong guarantee for the market.
   (5) Focus on high standards and continue to promote cultural construction. With "dream culture" as the
       core and "five dreams linkage" as the connotation, create the humanistic feelings and spiritual beliefs of
       Yanghe, display the new style of culture, carry out the construction of wine capital in depth with more
       pragmatic measures, and promote the combination of wine and the city. To further stimulate the vitality
       of the organization, with "improving the organizational operation ability and strengthening the
       organizational operation level" as the key, build a higher quality and stronger talent team, and at the
       same time focus on improving the quality and efficiency of basic management to comprehensively
        contribute to the construction of culture.
Possible risks
          the pressure still exists, coupled with the multiple challenges facing the world economy, liquor
          consumption is easily affected by economic fluctuations, which brings greater uncertainty to the
          development of the liquor industry.
          becoming more and more obvious, the market share continues to be concentrated in famous wine
          enterprises and head wine enterprises, and the liquor industry has gradually entered a stage of
          accelerated competition, and market competition, especially between famous wine enterprises, will be
          further intensified.
          behaviors have undergone great changes, and the upgrading of health concepts, the prominence of
          brand consumption, the growth of online consumption, and the improvement of quality demand have
          gradually become new consumption trends, which may have a certain impact on the consumption
          demand and consumption of liquor.
etc. during the reporting period.
¡Ì Applicable      ¡õ N/A
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                    Reception                          Type of
  Date of visit                   Way of visit                        Visitor       discussion      main inquiry
                       site                             visitor
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                                                                                   information
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                                                                      long-term
                                                                      development
                                                                      planning, etc
                     Section IV CORPORATE GOVERNANCE
    The company strictly follows the "Company Law", "Securities Law", "Governance Guidelines for Listed
Companies", "Shenzhen Stock Exchange Listing Rules" and other laws, administrative regulations, departmental
rules and normative documents. Combining the actual development of the company, the company constantly
improves its modern enterprise system and corporate governance structure. During the reporting period, the
overall operation of the company was standardized and complied line with the governance requirements of
listed companies.
  The responsibilities of the company's general meeting of shareholders are clear, with accurate rules of
procedure and practical implementation. The calling, convening and deliberation procedures of the company's
general meeting of shareholders comply with the relevant provisions of the Company Law, the Articles of
Association and the Rules of Procedure for the General Meeting of Shareholders of the Company. All
shareholders are treated equally, especially to ensure that small and medium shareholders enjoy equal status
and ensure that small and medium shareholders can sufficiently exercise its own rights. The board of directors of
the company earnestly implemented the resolutions of the general meeting of shareholders.
   The responsibilities of the board of directors of the company are clear, and all directors can perform their
duties conscientiously. The board of directors of the company elects directors in strict accordance with the
selection and appointment procedures stipulated in the Company Law and the Articles of Association. The board
of directors of the company currently consists of 8 directors, 4 of which are independent directors. The
composition of the board of directors conforms to the requirements of laws and regulations. The board of
directors of the company strictly complies with the "Company Law", "Articles of Association" and other relevant
regulations to regulate the deliberation and operation of the board of directors. All directors of the company can
attend the board of directors in accordance with the "Procedure Rules of the Board of Directors", "Working
System for Independent Directors" and other regulations, diligently and conscientiously review each case,
making scientific and reasonable decisions on major issues of the company, and earnestly safeguarding the
interests of the company and the legitimate rights and interests of all shareholders. The company's board of
directors consists of four professional committees, namely the strategy committee, the nomination committee,
the audit committee and the remuneration and appraisal committee. Each committee has a clear division of
labor, powers and responsibilities, and gives full play to its professional functions, providing scientific and
professional opinion for the decision-making of the board of directors.
  The company's board of supervisors has clear responsibilities, and all supervisors can conscientiously and
responsibly perform their duties. The board of Supervisors of the company election is in strict accordance with
the recruitment procedures stipulated in the Company Law and the Articles of Association and etc. The board of
supervisors of the company is composed of 5 supervisors, among which 2 are employees' representatives. The
composition of the members of the board of supervisors meets the requirements of laws and regulations. The
board of supervisors operates in strict accordance with the company law, the company's articles and other
regulations, the supervisors can attend the board requested by the rules of procedure of the board of
supervisors, earnestly perform their duties, effectively supervising and expressing opinions on the major issues
of the company, financial status, and how the directors and President perform. Safeguarding the legitimate rights
and interests of the company and shareholders is also the duty of the board of supervisors.
   The appointment of the company's directors, supervisors and senior management personnel is open and
transparent, in line with relevant laws and regulations, and a fair and transparent management performance
evaluation standard and incentive and restraint mechanism have been established. During the reporting period,
the company conducted a performance appraisal on the goals set by the executive suites in accordance with the
annual business plan, and all the executive suites have conscientiously performed their duties.
   The controlling shareholder of the company shall exercise the rights of the investor and take the obligations in
strict accordance with the requirements of the Company Law. The company and the controlling shareholder shall
separate personnel, assets and finances, with independent organization and business, accounting independently
and taking responsibilities and risks independently. During the reporting period, the controlling shareholder did
not directly or indirectly interfere with the company's decision-making and business activities beyond the
company's general meeting of shareholders, and there was no situation where the controlling shareholder
harmed the legitimate rights and interests of other shareholders of the company. There is no major related
transaction between the company and its controlling shareholder, there is no phenomenon that the controlling
shareholder occupies the funds of the company, and the company does not provide guarantees for the
controlling shareholder and its subsidiaries.
   The company pays great attention to the management of investor relations and actively safeguards the
legitimate rights and interests of the company's shareholders. In addition to performing information disclosure
obligations diligently and honestly, the chairman, president and secretary of the board of directors maintain
positive interactions with investors by receiving investor surveys, participating in online performance briefings
and brokerage strategy meetings, etc. The securities department acting as a specialized relationship
management agency, strengthens communication with investors through telephone, email, interactive and other
methods, fully guaranteeing the investors' right to know, and safeguarding their legitimate rights and interests.
  The company fulfills its social responsibility obligations in accordance with the requirements of social
responsibility, fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizes
the coordination and balance of the interests of the society, government, shareholders, the company, employees
and other parties, and jointly promotes the harmonious and stable development of the company. The company
advocates the governance concept of ¡®green brewing, ecological enterprise¡¯, integrates ecological and
environmental protection requirements into the company's development strategy and corporate governance
process. While maintaining the sustainable development, the company actively participates in social welfare
undertakings and practices social responsibility.
   In strict accordance with the requirements of the regulatory authorities, the company earnestly implements
the "Information Disclosure Management System", "Investor Relations Management System" and others,
strengthens the management of information disclosure affairs, and earnestly fulfills its information disclosure
obligations in accordance with the law, and discloses truthfully, accurately, completely, timely and fairly.
information, ensuring that all shareholders have equal access to information.
   The company continues to improve the internal control system, further strengthen corporate governance, so
that the level of corporate governance has been further improved. The audit committee of the company
comprehensively reviews and supervises the effectiveness of the company's financial reporting, internal control
and corporate governance. As an internal audit unit, the company's audit center conducts routine and
continuous supervision and inspection for the improvement and implementation of the internal control system,
timely discovers and improves the deficiencies of internal control, ensures the effectiveness of internal control,
and improves the company's operation and management level and risk prevention ability.
Is the actual situation of corporate governance significantly different from laws, administrative regulations and
regulations on listed company governance issued by the CSRC£¿
  ¡õ Yes ¡Ì No
The actual situation of corporate governance is not significantly different from laws, administrative regulations
and regulations on listed company governance issued by the CSRC.
from Controlling Shareholders and Actual Controller
  The company has a complete independent production and management system, and independent
decision-making management ability, covering business, personnel, assets, organizations and finance five
aspects.
  The company's business structure is independent and complete, with the ability to independently face the
market and operate independently. There is no horizontal competition with the controlling shareholder, and the
controlling shareholder does not directly or indirectly interfere with the company's operations.
   The company has established an independent personnel and wage management system, and signed a "labor
contract" with employees. The chairman, president, vice president, chief financial officer and secretary of the
board of directors of the company receive remuneration from the company, but do not receive remuneration
from the controlling shareholder. The directors, supervisors and senior management of the company do not hold
positions prohibited by laws and regulations in other companies with the same or similar business as the
company.
   The company has a clear property relationship with the controlling shareholder, has independent land use
rights and housing property rights, and independently registers, builds accounts, accounts and manages
company assets. The controlling shareholder has not occupied or dominated the company's assets or interfered
with the company's operation and management of the assets.
   The company has a mature organizational system. The general meeting of shareholders, the board of directors,
the board of supervisors, the management and each functional department operate independently, and a
corresponding internal management and control system has been formulated, so that the division of labor
among each department is clear, and each department performs its own duties. The cooperation with each other
forms an organic whole, which ensures the legal operation of the company, and there is no subordination
relationship with the controlling shareholder's functional department.
  The company has a complete and independent financial institution, equipped with sufficient full-time financial
accounting personnel, established an independent accounting system and financial management system, and
independently opened bank accounts, paid taxes, and made financial decisions independently. The controlling
shareholder does not intervene in the financial management of the company.
  ¡õ Applicable    ¡Ì N/A
period
                                       Investor
Which Session         Type                                   Open Date      Disclose Date   Meeting Outcome
                                  Participation Ratio
                                                                                            For details, please
                                                                                            refer to the
                                                                                            "Announcement
                                                                                            on Resolutions of
                                                                                            the 2021 Annual
                  Annual
                  General
General                                                                                     of Shareholders"
                  Meeting of                  76.47%         May 30, 2022   June 2, 2022
Meeting of                                                                                  disclosed by the
                  Shareholde
Shareholders                                                                                company in the
                  rs
                                                                                            statutory
                                                                                            information
                                                                                            disclosure media
                                                                                            (Announcement
                                                                                            No.: 2022-013)
  ¡õ Applicable    ¡Ì N/A
                                                                          Number of      Number of     Number of      Other    Number of
                                                                         shares held       Shares        Shares     Increase   shares held
                        Service                    Term       Term End      at the      increased in   decreased       or       at the end
Name        Position              Gender   Age                                                                                               Reasons
                        status                   Start Date     Date     beginning of     current      in current   decrease      of the
                                                                          the period       period        period     changes       period
                                                                           (shares)       (Shares)      (Shares)    (shares)     (shares)
Zhang                   Incum                    February     February
            chairman              Male     55                            0              0              0            0          0
Liandong                bent                     23, 2021     23, 2024
            Vice
                        Incum                    February     February
Zhong Yu    chairman,             Male     59                            0              0              0            0          0
                        bent                     10, 2015     23, 2024
            President
Yang                    Incum                    May 30,      February
            Director              Male     49                            0              0              0            0          0
Weiguo                  bent                     2022         23, 2024
                        Incum                    May 19,      February
Wang Kai    Director              Male     46                            2,400          0              0            0          2,400
                        bent                     2017         23, 2024
Zhao       Independe     Incum               February   February
                                 Male   71                         0    0   0   0   0
Shuming    nt Director   bent                23, 2021   23, 2024
           Independe     Incum               February   February
Nie Yao                          Male   46                         0    0   0   0   0
           nt Director   bent                23, 2021   23, 2024
Lu         Independe     Incum               February   February
                                 Male   63                         0    0   0   0   0
Guoping    nt Director   bent                23, 2021   23, 2024
           Independe     Incum               February   February
                                 Male   59                         0    0   0   0   0
           nt Director   bent                23, 2021   23, 2024
Mao
Lingxiao
           Chairman
Chen       of the        Incum               July 13,   February
                                 Male   58                         0    0   0   0   0
Taiqing    Supervisor    bent                2020       23, 2024
           y Board
Xu                       Incum               May 23,    February
           Supervisor            Male   46                         0    0   0   0   0
Youheng                  bent                2019       23, 2024
                         Incum                 February    February
Xu Lili     Supervisor           Female   44                          0        0   0   0   0
                         bent                  23, 2021    23, 2024
Chen                     Incum                 July   6,   February
            Supervisor           Male     58                          0        0   0   0   0
Fuya                     bent                  2020        23, 2024
Chen                     Incum                 February    February
            Supervisor           Male     55                          0        0   0   0   0
Taisong                  bent                  10, 2015    23, 2024
            Vice         Incum                 February    February
Lin Qing                         Female   48                          0        0   0   0   0
            President    bent                  10, 2015    23, 2024
Zheng       Vice         Incum                 February    February
                                 Male     56                          45,000   0   0   0   45,000
Bujun       President    bent                  10, 2015    23, 2024
            Vice
Yin                      Incum                 July 13,    February
            President,           Male     51                          0        0   0   0   0
Qiuming                  bent                  2020        23, 2024
            CFO
            Vice         Incum                 July 13,    February
Li Yuling                        Male     53                          0        0   0   0   0
            President    bent                  2020        23, 2024
Lu
          Board        Incum                    February   February
Hongzhe                           Female   45                           0           0   0   0   0
          Secretary    bent                     23, 2021   23, 2024
n
Liu       Director,
                       Leavin                   January    February
Huashua   Executive               Male     53                           0           0   0   0   0
                       g office                 29, 2018   24, 2023
ng        President
Cong                   Leavin                   February   Septembe
          Director                Male     57                           2,778,291   0   0   0   2,778,291
Xuenian                g office                 10, 2015   r 30, 2022
          Director,
                       Leavin                   February   Septembe
          Vice                    Male     61                           2,878,291   0   0   0   2,878,291
Zhou                   g office                 10, 2015   r 7, 2022
          President,
Xinhu
Fu
          Vice         Leavin                   January    January 8,
Hongbin                           Male     61                           0           0   0   0   0
          President,   g office                 17, 2020   2022
g
Total       --            --        --        --      --           --            5,703,982       0               0               0            5,703,982   --
During the reporting period, is there any resignation of directors and supervisors and dismissal of senior managers during their term of office£¿
  ¡Ì Applicable ¡õ N/A
During the reporting period, Mr. Cong Xuenian resigned as a director for personal reasons.
Mr. Zhou Xinhu and Mr. Fu Hongbing retired.
Changes in directors, supervisors and senior management of the company
  ¡Ì Applicable ¡õ N/A
Name                  Position                Type                  Date                   Reasons
Yang Weiguo           Director                Elected               May 30, 2022           General election
                                                                    September 30,          Voluntary
Cong Xuenian          Director                Leaving office
                      Director, Vice
Zhou Xinhu                                    Leaving office        September 7, 2022      Retirement
                      President
Fu Hongbing           Vice President          Decruitment           January 8, 2022        Retirement
  The professional background, main work experience and main responsibilities of the current directors,
supervisors and senior management of the company
    Mr. Zhang Liandong, born in September 1968, master degree from the Party School, deputy to the National
People's Congress. He successively served as organizational officer and organizational member of the Party
Committee of Zhikou Township, Suqian City, organizational member and member of the Party Committee of
Sucheng Town, Sucheng District, deputy secretary of the Party Working Committee and secretary of the
Disciplinary Work Committee of Xingfu Street, Sucheng District, director of sub-district office, secretary of party
Working Committee of Xiangli Street, Sucheng District, director of the Management Committee and deputy
secretary of the Party Working Committee of Sucheng District Economic Development Zone, director of the
Investment Promotion Bureau of Sucheng District, deputy district chief of Sucheng District, and member of the
Standing Committee of the Sucheng District Committee, secretary of the Party Working Committee of Sucheng
Economic Development Zone, deputy secretary-general of the Suqian Municipal Government, director and
deputy secretary of the Party Group of the Suqian Urban Management Bureau, deputy secretary-general of the
Suqian Municipal Government (section level), secretary of the Party Working Committee of the Yanghe New
District of Suqian City. He is currently the company¡¯s secretary and chairman of the party committee, chairman of
Jiangsu Shuanggou Wine Co., Ltd., chairman of Sujiu Group Trading Co., Ltd., and executive director of Jiangsu
Shuanggou Wine Sales Co., Ltd.
    Mr. Zhong Yu, born in May 1964, master degree, Chinese Brewmaster, a master of Chinese liquor, a senior
engineer, and a representative of the 14th Jiangsu Provincial People's Congress. He successively served as the
director of the technical department, the director of the environmental protection department, and the director
of the technology center of Jiangsu Shuanggou Winery; the deputy chief engineer, assistant to the general
manager, brewing director, assistant to the president, vice president, general manager of Yanghe Co., Ltd. Siyang
branch. He is currently the deputy secretary of the party committee, vice chairman and president of the company,
and he is the general manager of Yanghe Branch as well.
    Mr. Yang Weiguo, born in February 1974, bachelor degree and master degree. He has served as Standing
Committee member of Siyang County Party Committee, Minister of Publicity Department, member of Party
Leading Group of County government, deputy county head, deputy secretary-general of Suqian Municipal Party
Committee, deputy director of Suqian Reform Office, Party Secretary and President of Suqian Daily. He is
currently secretary of the party committee and chairman of Suqian Industrial Development Group Co., LTD.,
chairman of Jiangsu Yanghe Group Co., LTD., and chairman of Jiangsu Shuanggou Group Co., LTD.
     Mr. Wang Kai, born in August 1977, bachelor degree, intermediate economist. He has served as the manager
of the brand department of the Marketing Center of Shanghai Tobacco Group Co., Ltd., and the assistant to the
general manager of Shanghai Haiyan Logistics Development Co., Ltd. He is currently the director of the company
and the deputy general manager of Shanghai Haiyan Logistics Development Co., Ltd.
     Mr. Zhao Shuming, born in December 1952, Ph.D. He has served as staff member, deputy section chief,
section chief, deputy director (presiding over the work) of Nanjing University Foreign Affairs Office, assistant to
the president, then he worked as the associate professor, professor, distinguished professor, senior professor,
vice dean and dean of Nanjing University Business School, Nanjing Shenghe Pharmaceutical Co., Ltd.
Independent director of Industrial Co., Ltd. and independent director of JSTI Group Co., Ltd. He is currently an
independent director of the company, a senior professor/doctoral supervisor of Nanjing University, the honorary
dean of the Business School, the dean of the Xingzhi Academy, and concurrently serves as the vice chairman of
the Business Administration Professional Education Steering Committee of the Ministry of Education, the vice
chairman of the China Management Modernization Research Association, and the vice president of China Human
Resource Development Research Association, distinguished adjunct professor of Missouri-St. Louis University,
visiting professor of Drucker School of Management, Claremont Graduate University, California, lifetime honorary
president of Jiangsu Human Resources Society, Lianfa, independent director of Lianfa Co., Ltd., and Nanjing
securities Co., Ltd.
    Mr. Nie Yao, born in June 1977, Ph.D. He has served as a visiting scholar at the Advanced Biotechnology and
Medical Center of Rutgers University (State University of New Jersey), an associate professor at the School of
Bioengineering, Jiangnan University, and an independent director of Jinhui Liquor Co., Ltd. He is currently an
independent director of the company, subdean and professor of the School of Bioengineering, Jiangnan
University.
     Mr. Lu Guoping, born in March 1960, bachelor degree, professor of accounting, CICPA, outstanding educator
in Jiangsu Province. He has successively served as lecturer, associate professor, director of teaching and research
section of the School of Engineering of Nanjing Agricultural University, and independent director of Longbo
Sealing Technology Co., Ltd., Huaxin New Materials Co., Ltd. Currently he is the independent director of Yanghe
Distillery, the deputy dean, professor and master tutor of the National Wealth Auditing College of Nanjing Audit
University, the person in charge of the national excellent online open course "Advanced Financial Accounting"
and the national first-class Head of the undergraduate course "Advanced Financial Accounting", director of
Langbo Sealing Technology Co., Ltd, independent director of Huaxin New Materials Co., Ltd and Baosheng Co.,
Ltd.
     Mr. Mao Lingxiao, born in January 1964, bachelor¡¯s degree, first-class lawyer (Senior professional title). He
has served as a staff member of the Jiangsu Provincial Department of Justice, a full-time lawyer of Jiangsu
International Economic and Trade Law Firm, a senior partner and director of Jiangsu Lingxiao Law Firm, a senior
partner of Jiangsu Jinding Law Firm, and a senior partner and director of Jiangsu Tianzhe Law Firm. Full-time
lawyer, senior partner and executive director of Beijing Zhongyin (Nanjing) Law Firm. He is currently an
independent director of the company, a full-time lawyer, senior partner and chairman of the partner meeting of
Beijing Haotianxinhe (Nanjing) Law Firm.
     Mr. Chen Taiqing, born in May 1965, holds a master degree, a senior political engineer, and a member of the
Communist Party of China. He successively served as member of the party committee, director of the company
office, member of the party committee of the company, director of the company office, director of the human
resources department, director of the general department, assistant to the president, and deputy general
manager of Yanghe Branch, deputy secretary of the party committee and secretary of the disciplinary committee
of the company , secretary of the party committee and general manager of Shuanggou Wine Industry. He is
currently the deputy secretary of the party committee, chairman of the supervisory committee and chairman of
the labor union.
    Mr. Xu Youheng, born in March 1977, master¡¯s degree, senior political engineer and member of Communist
Party of China. He successively served as the director of the organization department, the director of the cadre
supervision department, the director of the cadre education department, and the director of the office of the
Organization Department of the Suqian Municipal Party Committee, the deputy director of the office of the party
construction leading group of the Suqian Municipal Party Committee, and the deputy secretary and deputy
general manager of the party committee of Suqian Industrial Development Group Co., Ltd. He is currently a
supervisor of the company, deputy secretary of the party committee and chairman of the supervisory committee
of Suqian Industry Development Group Co., Ltd.
     Ms. Xu Lili, born in March 1979, bachelor's degree. She has successively served as the secretary of the Youth
League Committee of Shanghai Jieqiang Tobacco Sugar and Wine (Group) Co., Ltd., deputy manager of the
marketing department of Shanghai Jieqiang tobacco, Sugar and Wine Group, deputy general manager of
Shanghai Qinzhou Trading Co., Ltd., assistant general manager of Shanghai Jieqiang Tobacco Sugar and Wine
Group Distribution Center, deputy General Manager, executive deputy general manager and general manager of
Shanghai Jieqiang Tobacco Sugar (Group) Chain Co., Ltd. Currently she is the company's supervisor, deputy
general manager of Shanghai Jieqiang tobacco Sugar (Group) Co., Ltd., general manager of Shanghai Jieqiang
Tobacco Sugar and Wine Group Dignation Co., Ltd., and general manager of Shanghai Jieqiang Food Sales Co.,
Ltd.
    Mr. Chen Fuya, born in November 1965, bachelor's degree. He has successively served as the member of the
Standing Committee of the Discipline Inspection Commission of Suqian and the director of the party style and
clean government. He is currently the Deputy Secretary of the Party Committee, Secretary of the Discipline
Inspection Commission, and Supervisor.
    Mr. Chen Taisong, born in January 1968, master¡¯s degree. He has successively served as a member and
secretary of the Legislative Bureau of Siyang County Government, Secretary of the Office of the Siyang County
Government Office, Deputy Section Chief, Section Chief, Director Assistant, Deputy Director, Siyang County Chief
of Chuancheng Town, Secretary of the Party Committee, Jiangsu Sujiu Industrial Co., Ltd. Deputy Secretary,
Secretary of the Discipline Inspection Commission, Chairman of the Supervisory Board, Deputy Secretary of the
Discipline Inspection Commission, Standing Committee of the Party Committee and Organization Minister of the
company, Deputy Secretary of the Party Committee of Sujiu Group Trading Co., Ltd., Secretary of the Discipline
Inspection Commission, and Chairman of the Supervisory Board. He is currently a member of the Standing
Committee of the Party Committee, Supervisor, Chairman of Guijiu Co., Ltd.
    Mr. Zhong Yu, President of the company, the same resume as above.
     Ms. Lin Qing, born in May 1975, master's degree, senior accountant and certified public accountant. She
successively served as deputy director of the Enterprise Division of Suqian Finance Bureau of Jiangsu Province,
assistant to the director of the Municipal Price Bureau, member and deputy director of the Suqian Party
Committee of the Municipal Development and Reform Commission, member of the Standing Committee of the
Party Committee of the company, and vice president of the company. She is currently a member of the Standing
Committee of the company's party committee, vice president, head of the internal audit organization, and vice
chairman of Sujiu Group Trading Co., Ltd.
     Mr. Zheng Bujun, born in January 1967, MBA's degree, senior engineer. He successively served as the
general manager of Jiangsu Yanghe Group Co., Ltd., the general manager of Suqian State-owned Investment Co.,
Ltd., the deputy general manager of Jiangsu Shuanggou Wine Co., Ltd., the procurement and logistics director of
Yanghe Co., Ltd., and the assistant to the president. He is currently a member of the standing committee of the
company's party committee, vice president, secretary of the party committee and general manager of the
company's Siyang branch.
     Mr. Yin Qiuming, born in July 1972, college's degree, auditor. He successively served as Assistant to the
Director of Audit, Director of Audit, Deputy Secretary of the Disciplinary Committee of Jiangsu Yanghe Group Co.,
Ltd., Director of the Company's Management Department, Deputy General Manager of Jiangsu Yanghe Sales Co.,
Ltd., Deputy General Manager, Party Committee Member, Financial Officer of Jiangsu Yanghe Wine Co., Ltd.
Minister, company supervisor, deputy secretary of the Disciplinary Committee, deputy general manager of the
company's Yanghe branch, finished product scheduling director, financial director, financial director, and general
manager of the financial center. He is currently the vice president and CFO of the company.
     Mr. Li Yuling, born in December 1970, master's degree in MBA from Nanjing University, intermediate
economist. He successively served as the assistant to the director of the supply department, the assistant to the
director of the finance department, the deputy chief dispatcher of the general dispatching room, the director of
the supply department, the director of the company's supply department, the assistant to the general manager
of Yanghe Branch, the director of procurement and logistics, and the director of supply chain management in
Jiangsu Yanghe Group Co., Ltd. , Deputy Director and Office Director of the Procurement and Supply Logistics
Center. He is currently the vice president of the company, secretary of the party committee and general manager
of Jiangsu Shuanggou Wine Co., Ltd.
     Ms. Lu Hongzhen, born in October 1978, bachelor's degree£¬the member of the China Association for the
Promotion of Democracy. She has obtained the qualification certificate for board secretary issued by Shenzhen
Stock Exchange. She joined Jiangsu Yanghe Group Co., Ltd. in September 2001 and served as the secretary of the
office, deputy director of the general department, deputy director of the company office, deputy director of the
securities department, and representative of securities affairs of Yanghe Co., Ltd. She is currently the secretary of
the company's board of directors and the general manager of the Human Resource Center, Director of Securities
Department.
Positions in shareholder corporations
  ¡Ì Applicable ¡õ N/A
                                                                                                  Whether to
 Name of                                  Position held in the                        Term
                 Shareholder name                                   Term start date               receive
 employee                                 shareholder company                         end date
                                                                                                  remuneration
                                                                                        allowance in
                                                                                        the shareholder
                                                                                        company
                Jiangsu Yanghe                               January 18,
 Yang Weiguo                             Chairman                                             NO
                Group Co., Ltd                               2022
                Shanghai Haiyan
                Logistics
 Wang Kai                             Vice General Manager   March 1, 2017                    YES
                Development Co.,
                Ltd.
                Jiangsu Yanghe
 Xu Youheng                              Supervisor          May 25, 2020                     NO
                Group Co., Ltd
                Shanghai Jieqiang
                Tobacco Sugar &
 Xu Lili                              Vice General Manager   April 1, 2021                    YES
                Wine (Group) Co.,
                Ltd.
 Descriptions
 of Positions
 in
                   None
 shareholder
 corporations
Employments in other corporations
  ¡Ì Applicable ¡õ N/A
                                                                                        Whether to
                                                                                        receive
 Name of         Other corporation     Positions held in     Term start      Term end   remuneration
 employee        name                  other companies       date            date       allowances in
                                                                                        other
                                                                                        companies
                 Suqian Industry       Secretary of the
                                                             January
 Yang Weiguo     Development Group     Party Committee,                                 YES
                 Co., Ltd.             Chairman
                 Jiangsu Shuanggou                           January
 Yang Weiguo                           Chairman                                         NO
                 Group Co., Ltd.                             18,2022
                                       Senior Professor,
 Zhao Shuming    Nanjing University                          July 6, 2017               YES
                                       Doctoral Supervisor
                 Nanjing Securities    Independent           November 15,
 Zhao Shuming                                                                           YES
                 Co., Ltd.             Director              2018
                 Jiangsu Lianfa        Independent
 Zhao Shuming                                                May 13, 2020               YES
                 Textile Co., Ltd.     Director
                 Jiangsu Human         Lifetime Honorary     September 1,
 Zhao Shuming                                                                           NO
                 Resources Society     President             2021
                 China Human
                 Resource
                                                             September 1,
 Zhao Shuming    Development           Deputy Chairman                                  NO
                 Research
                 Association
                 Professional                                September 1,
 Zhao Shuming                          Deputy Minister                                  NO
                 Education Steering                          2013
               Committee for
               Business
               Administration
               Disciplines of the
               Ministry of
               Education
               China Management
               Modernization          Vice                  November 02,
Zhao Shuming                                                                 NO
               Research               Director-general      2015
               Association
                                      Vice Dean and
                                      Professor of
Nie Yao        Jiangnan University                          June 10, 2020    YES
                                      Bioengineering
                                      Students
                                      Deputy Dean and
               Nanjing Audit                                March 01,
Lu Guoping                            Professor of Guofu                     YES
               University                                   2020
                                      Zhongxin College
               Changzhou Langbo
                                                            February 22,
Lu Guoping     Sealing Technology     Director                               YES
               Co., Ltd.
               Baosheng
                                      Independent
Lu Guoping     Technology                                   May 9, 2019      YES
                                      Director
               Innovation Co., Ltd.
               Changzhou
               Academy of             Independent
Lu Guoping                                                  July 6, 2020     YES
               Architecture and       Director
               Technology Co., Ltd.
               Suzhou Lianxun         Independent           December 1,
Lu Guoping                                                                   YES
               Instrument Co., Ltd.   Director              2022
               Suzhou Tiejin
                                      Independent           December 1,
               Electromechanical                                             YES
Lu Guoping                            Director              2022
               Technology Co., Led.
                                      Deputy Secretary of
               Suqian Industry
                                      Party Committee,      October 16,
Xu Youheng     Development Group                                             YES
                                      Chairman of the       2021
               Co., Ltd.
                                      Supervisory Board
               Suqian City Citizen
Xu Youheng                            Executive Director    April 19, 2021   NO
               Card Co., Ltd.
               Suqian International
Xu Youheng                            Executive Director    April 14, 2021   NO
               Hotel Co., Ltd.
               Suqian Chufeng
Xu Youheng     Hotel Management       Executive Director    July 23, 2021    NO
               Co., Ltd.
               Jiangsu Jingshi Big
Xu Youheng     Data Management        Chairman              June 22, 2022    NO
               Co., Ltd.
               Suqian Talent Group                          November 17,
Xu Youheng                            Executive Director                     NO
               Co., Ltd.                                    2022
               Suqian Human
                                                            November 30,
Xu Youheng     Resources Service      Executive Director                     NO
               Co., Ltd.
               Shanghai Jieqiang
               Tobacco Sugar &
Xu Lili        Wine Group             General Manager       July 14, 2020    NO
               Distribution Co.,
               Ltd.
Xu Lili        Shanghai Jieqiang      General Manager       July 14, 2020    NO
                    Food Sales Co., Ltd.
                                            Full-time lawyer,
                    Beijing Hylands         senior partner,          January 1,
 Mao Lingxiao                                                                                   YES
                    (Nanjing) Law Firm      chairman of the          2021
                                            partnership meeting
 Descriptions of
 Employments
 in other           None
 corporations
Penalties imposed by securities regulators on current and outgoing directors, supervisors and senior managers of
the company in the past three years
  ¡õ Applicable ¡Ì N/A
Decision-making procedures, basis for determination and actual payment of remuneration for directors,
supervisors and senior managers
     Decision procedure: The remuneration shall be implemented based on the cases ¡°Adjusting the Allowance
of Independent Directors¡± approved by the Company's 2020 Annual General Meeting of Shareholders and
¡®Compensation and Assessment Management Measures for Members of Management Team¡¯ approved by the
Company's 2021 Annual General Meeting of Shareholders.
     Determination basis: According to the company's current business situation, reference to the regional
economic level, industry and market level.
     Actual payment: Paid on time according to the corporate's performance and compensation institutions.
Remuneration of directors, supervisors and senior managers during the reporting period
                                                                                               Unit: CNY10, 000
                                                                                                      Whethe
                                                                                        Total
                                                                                                r to obtain
                                                                                   pre-tax
                                                                                                remuneratio
                                                                     Employed or   compensatio
 Name              Position        Gender           Age                                         n from
                                                               not                 n received
                                                                                                related
                                                                                   from the
                                                                                                parties of the
                                                                                   company
                                                                                                company
 Zhang
                   Chairman        Male             55               Incumbent         191.65         NO
 Liandong
                   Vice
 Zhong Yu          Chairman,       Male             59               Incumbent         197.17         NO
                   President
                   Board
 Yang Weiguo                       Male             49               Incumbent         0              YES
                   Director
                   Board
 Wang Kai                          Male             46               Incumbent         0              YES
                   Director
Zhao           Independent
                                Male     71        Incumbent     10       NO
Shuming        Director
               Independent
Nie Yao                         Male     46        Incumbent     10       NO
               Director
               Independent
Lu Guoping                      Male     63        Incumbent     10       NO
               Director
               Independent
Mao Lingxiao                    Male     59        Incumbent     10       NO
               Director
               Chairman of
               the
Chen Taiqing                    Male     58        Incumbent     143.19   NO
               Supervisory
               Committee
Xu Youheng     Supervisor       Male     46        Incumbent     0        YES
Xu Lili        Supervisor       Female   44        Incumbent     0        YES
Chen Fuya      Supervisor       Male     58        Incumbent     144.58   NO
Chen Taisong   Supervisor       Male     55        Incumbent     141.63   NO
               Vice
Lin Qing                        Female   48        Incumbent     142.15   NO
               President
               Vice
Zheng Bujun                     Male     56        Incumbent     143.18   NO
               President
               Vice
Yin Qiuming    President,       Male     51        Incumbent     143.9    NO
               CFO
               Vice
Li Yuling                       Male     53        Incumbent     143.06   NO
               President
               Secretary of
Lu Hongzhen                     Female   45        Incumbent     66.14    NO
               the Board
Liu            Board
                                Male     53        Former        187.35   NO
Huashuang      Director, CEO
Cong           Board
                                Male     57        Former        12.25    YES
Xuenian        Director
               Board
Zhou Xinhu     Director, Vice   Male     61        Former        115.18   NO
               President
               Vice
Fu Hongbing                     Male     61        Former        65.55    NO
               President
     Total          --              --   --        --          1,876.98   --
 Session                     Open Date                        Disclose Date   Resolution
                                                                              Reviewed and approved
                                                                              the ¡°Proposal on
                                                                              Adjustment of Internal
                                                                              Organizations¡±. For
                                                                              details, please refer to
                                                                              the ¡°Announcement on
 The Eighth Session of the
                                                                              Resolutions of the Eighth
 Seventh Board of            April 07,2022                    April 08,2022
                                                                              Session of the Seventh
 Directors
                                                                              Board of Directors¡±
                                                                              disclosed by the
                                                                              company in the statutory
                                                                              information disclosure
                                                                              media.( Announcement
                                                                              No.: 2022-003)
                                                                              Reviewed and approved
                                                                              the ¡°2021 Annual Work
                                                                              Report of the President¡±,
                                                                              ¡°2021 Annual Work
                                                                              Report of the Board of
                                                                              Directors¡±, ¡°2021 Annual
                                                                              Report and Summary¡±,
                                                                              ¡° 2021 Annual Financial
                                                                              Final Report¡±, ¡° Internal
                                                                              Control Self-Assessment
                                                                              Report¡±, ¡°Proposal on
                                                                              Renewing the
                                                                              Appointment of Suya
                                                                              Jincheng Certified Public
                                                                              Accountants (Special
                                                                              General Partnership) as
                                                                              the Company's Audit
 The Ninth Session of the                                                     Institution in 2022¡±,
 Seventh Board of            April 27,2022                    April 29,2022   ¡° 2021 Social
 Directors                                                                    Responsibility Report¡±,
                                                                              ¡° Proposal on Daily
                                                                              Connected Transactions¡±,
                                                                              Full Text of the ¡°First
                                                                              Quarterly Report of
                                                                              Authorizing the
                                                                              Company's Management
                                                                              to Use Its Own Funds to
                                                                              Purchase Financial
                                                                              Products at
                                                                              Opportunities¡±, ¡°Plan on
                                                                              Formulating
                                                                              Management Measures
                                                                              for Compensation and
                                                                              Assessment of
                                                                              Management Team
                                                                              Members¡±, ¡°Plan on
                                                                       nominating Mr. Yang
                                                                       Weiguo as the
                                                                       non-independent
                                                                       director candidate for the
                                                                       seventh Board of
                                                                       Directors of the
                                                                       Company¡± and ¡°Proposal
                                                                       on holding 2021 Annual
                                                                       General Meeting of
                                                                       Shareholders¡±. For
                                                                       details, please refer to
                                                                       the ¡°Announcement on
                                                                       Resolutions of the Ninth
                                                                       Session of the Seventh
                                                                       Board of Directors¡±
                                                                       disclosed by the
                                                                       company in the statutory
                                                                       information disclosure
                                                                       media. ( Announcement
                                                                       No.: 2022-005£©
                                                                       Reviewed and approved
                                                                       the ¡°Proposal on the
                                                                       Establishment of
                                                                       wholly-owned
                                                                       Subsidiaries and Joint
                                                                       Investment with
                                                                       Professional Investment
                                                                       Institutions¡±. For details,
The Tenth Session of the
                                                                       please refer to the
Seventh Board of            August 08,2022          August 10,2022
                                                                       ¡°Announcement on
Directors
                                                                       Resolutions of the Tenth
                                                                       Session of the Seventh
                                                                       Board of Directors¡±
                                                                       disclosed by the
                                                                       company in the statutory
                                                                       information disclosure
                                                                       media. ( Announcement
                                                                       No.: 2022-016£©
                                                                       Reviewed and approved
The Eleventh Session of
                                                                       the full text and abstract
the Seventh Board of        August 25,2022          August 27,2022
                                                                       of the ¡°2022 Semi-annual
Directors
                                                                       Report of the Company¡±.
                                                                       Reviewed and approved
The Twelfth Session of                                                 the full text and abstract
the Seventh Board of        October 27,2022         October 28,2022    of ¡°the 2022 Third
Directors                                                              Quarterly Report of the
                                                                       Company¡±.
                                                                       Reviewed and approved
                                                                       the ¡°Proposal on
                                                                       Donation to China
                                                                       Aerospace Foundation¡±
The Thirteenth Session of                                              and the ¡°Proposal on
the 7th Board of            December 20,2022        December 21,2022   Donation to Jiangxi Youth
Directors                                                              Development
                                                                       Foundation¡±. For details,
                                                                       please refer to the
                                                                       ¡°Announcement on
                                                                       Resolutions of the
                                                                                     Thirteenth Session of the
                                                                                     Seventh Board of
                                                                                     Directors¡± disclosed by
                                                                                     the company in the
                                                                                     statutory information
                                                                                     disclosure media.
                                                                                     ( Announcement No.:
              Attendance of Directors at Board of Directors and General Meetings of Shareholders
                   The
               number of                                                              Whether
                                           Number of
               times they                                   Number of    Amounts         not        Amounts
                                             board
                 should      Number of                         proxy        of        attended          of
                                            meetings
  Name of      attend the      on-site                      attendance   absences        two       attendance
                                            by means
  Directors     board of        board                          at the    from the    consecutiv         at
                                                of
                directors    attendance                      board of    Board of      e board     shareholde
                                           communica
               during the                                    directors   Directors    meetings     r meetings
                                               tion
                reporting                                                             in person
                 period
    Zhang
  Liandong
  Zhong Yu          6             5             1               0            0           NO             1
     Liu
 Huashuang
  Wang Kai          6             0             5               1            0           NO             0
    Yang
  Weiguo
    Zhao
  Shuming
   Nie Yao          6             1             5               0            0           NO             0
    Mao
  Lingxiao
 Lu Guoping         6            1             5            0              0            NO              0
    Cong
   Xuenian
 Zhou Xinhu         4            3             1            0              0            NO              1
Explanation of two consecutive absences from attending the board of directors in person
  N/A
Were there any objections on related issues of the Company from directors?
  ¡õ Yes ¡Ì No
During the reporting period, there is no objections on related issues of the Company from directors.
Were there any suggestions from directors accepted by the Company?
 ¡Ì Yes ¡õ No
The statement on whether the director's recommendation to the company's proposal has been adopted or not
    During the reporting period, the directors of the Company in accordance with the relevant requirements of
¡°the Company Law¡±, ¡°the Securities Law¡±, ¡°the Articles of Association¡± and other laws, regulations and rules,
carried out various work diligently and responsibly, provided reasonable opinions and suggestions for the
company's business decisions, and effectively safeguarded the interests of the company and all shareholders.
                                                                                                         Specific
                                Number                                       Important     Other
                                                                                                       circumstan
  Committee                       of           Opening         Content of    comments     performa
                  Members                                                                               ces of the
    name                        meetings        date            meeting         and        nce of
                                                                                                        objection
                                 held                                       suggestions    duties
                                                                                                         (if any)
                                                                  Reviewe
                                                               d and
                                                               approved
                                                               the ¡°2021
                 Zhang
                                                               Report on
                 Liandong,
                                                               the Work
                 Zhong Yu,
   Strategy                                     April          of the
                 Zhao             1
  Committee                                    26,2022         Board of
                 Shuming,
                                                               Directors¡±
                 Liu
                                                                  Planned
                 Huashuang
                                                               the future
                                                               developme
                                                               nt of the
                                                               company
                                                               Reviewed
                 Nie Yao,                                      and
                 Zhang                                         approved
 Nomination                                    April
                 Liandong,        1                            the
 Committee                                   25,2022
                 Mao                                           ¡°Proposal
                 Lingxiao                                      on the
                                                               nomination
                                             of Mr. Yang
                                             Weiguo as
                                             the
                                             non-indepe
                                             ndent
                                             Director of
                                             the
                                             seventh
                                             Board of
                                             Directors
                                             of the
                                             Company¡±
                                             and
                                             qualificatio
                                             n review
                                                Reviewe
                                             d the
                                             performan
                                             ce of the
                                             company's
                                             manageme
                                             nt team
                                             members
             Zhao
                                             and the
             Shuming,
                                             implement
             Nie Yao,
                                             ation of
             Cong
                                             the salary
             Xuenian
Remunerati                                   system in
             (Cong
on and                        April          2021
             Xuenian     1
Appraisal                    25,2022            Reviewe
             resigned
Committee                                    d and
             from the
                                             approved
             committee
                                             the
             on
                                             ¡°Managem
             September
                                             ent
                                             Measures
                                             for Salary
                                             and
                                             Assessmen
                                             t of
                                             Manageme
                                             nt Team
                                             Members¡±
  Audit        Lu        4   February           Reviewe
Committee   Guoping,    22,2022        d
            Cong                       accounting
            Xuenian,                   firm's audit
            Mao                        plan and
            Lingxiao                   entry
            (Cong                      arrangeme
            Xuenian                    nt for 2021
            resigned                   Annual
            from the                   Report,202
            committee                  1 internal
            on                         audit work
            September                  and 2022
                                          Reviewe
                                       d        and
                                       approved
                                       the
                                       ¡°Proposal
                                       on
                                       Renewing
                                       the
                                       Appointme
                                       nt of Suya
                                       Jincheng
                                       Certified
                                       Public
                                       Accountant
                                       s (Special
                                       General
                                       Partnership
                                       ) as the
                                       Company's
                                       Audit
                                       Institution
                                       in 2022¡±
                                          Reviewe
                                       d the
                                       implement
                                       ation of
                          April
                                       the audit
                                       work of the
                                       annual
                                       report.
                  Reviewe
               d and
               approved
               the ¡°2021
               Internal
               Control
               Self-Assess
               ment
               Report¡±,
               ¡°2021
               Audit
               Report¡±,
               ¡°Financial
               Final
               Accounts
               Report of
               ¡°Financial
               and
               accounting
               statements
               for the first
               quarter of
               ¡°Proposal
               on Daily
               Connected
               Transaction
               s¡±.
                  Reviewe
               d the
               implement
               ation of
               internal
               audit work
               in the first
               quarter of
                  Reviewe
               d the
August
               implement
               ation of
               internal
                                                            audit work
                                                            in the first
                                                            half of
                                                               Reviewe
                                                            d and
                                                            approved
                                                            the ¡°2022
                                                            semi-annu
                                                            al Financial
                                                            Report¡±
                                                               Reviewe
                                                            d the
                                                            implement
                                                            ation of
                                                            internal
                                                            audit work
                                                            in the third
                                                            quarter of
                                           October
                                                               Reviewe
                                                            d and
                                                            approved
                                                            the
                                                            ¡°Financial
                                                            Statements
                                                            for the
                                                            third
                                                            quarter of
Were there any risks to the Company identified by Board of Supervisors when performing its duties during the
reporting period?
  ¡õ Yes ¡Ì No
The Supervisory Committee has no objection to the supervision matters during the reporting period.
 Number of on-the-job employees of the parent
 company at the end of the reporting period (person)
 Number of on-the-job employees of major
 subsidiaries at the end of the reporting period                                                          9,911
 (person)
 Total number of on-the-job employees at the end of
 the reporting period (person)
 The total number of employees receiving salary in the
 current period (person)
 Number of retired employees (persons) that the
 parent company and major subsidiaries need to pay
 Professional Composition
 Professional Composition Category                            Professional composition number (person)
 Production staff                                                                                         8,442
 Sales staff                                                                                              6,614
 Technical staff                                                                                          1,975
 Financial staff                                                                                            229
 Administration staff                                                                                     2,229
 Internal retirees                                                                                         127
 Total                                                                                                   19,616
 Education Level
 Educational level category                                   Quantity (person)
 Master                                                                                                     391
 Bachelor                                                                                                 4,616
 College                                                                                                  4,741
 Senior High School and below                                                                             9,868
 Total                                                                                                   19,616
The salary of the company's employees is composed of basic salary, performance salary and profit increment
sharing award. All departments of the company implement a post-self-organization mechanism, and revised the
"Administrative Measures for Post-Self-organization" to further improve the quantity, quality, efficiency and
economic value of work. It has established quantifiable and assessable indicators to encourage employees to be
spontaneous, improve their work efficiency, and improve the company's management level in order to achieve a
win-win situation between the company and its employees.
During the reporting period, centering on the goal of improving the "professional and practical organization" and
"learning and research organization", the company adhered to the combination of internal resource integration
and external resource cooperation and carried out three-level training composed of company level,
branch/subsidiary level and department level. The company has hired 262 internal lecturers, carried out 1240
training sessions, and developed 36 high-quality courses and 15 micro courses.
(1) Strengthening the construction of cadre echelons. In order to train new middle management personnel, the
    company has carried out in-depth cooperation with Yangzhou University and set up special training courses.
    In addition, the company cooperates with external organizations to set up excellent manager training camp
    to train middle managers.
(2) Enriching the course content. For the training of marketing talents, the company organized and invited
    outstanding marketing talents to live broadcast 11 events on the platform of marketing lecture hall to share
    successful marketing cases. In addition, the company has developed 9 "Quality Belief Winemaker courses" to
    help marketers master efficient business skills and improve the efficiency of solving marketing problems. In
    terms of the promotion of skilled talents, the company carries out independent training and appraisal of
    vocational skills to support the promotion of skilled talents. The company undertakes the "skill upgrading
    training for senior technicians of provincial winemakers", carries out the "junior college to bachelor degree"
    degree-upgrading project, and carries out new apprenticeship and special types of work certificate renewal
    and certification training to promote the skill level of works.
This measure provides human resources guarantee for the company to build the "second stage" of "second
entrepreneurship", and effectively promotes the company's transformation and upgrading and the promotion
and implementation of strategic goals. The company carries out talent training with the characteristic concept of
"hierarchical, classified and sub-field" and the promotion method of "whole process, all aspects and full
coverage", and strengthens the construction of talent team.
  ¡õ Applicable ¡Ì N/A
Profit distribution policy in the reporting period, especially the formulation, implementation and adjustment of
cash dividend policy
 ¡Ì Applicable ¡õ N/A
On May 30, 2022, the company held the 2021 annual general meeting of shareholders, and reviewed and
approved the company's 2021 equity distribution plan. The specific plan is that based on the total equity on the
equity registration date when the profit distribution plan is implemented (excluding the repurchased shares held
in the company¡¯s special securities account for repurchase), use undistributed profits to distribute cash dividends
of CNY30 (tax included) per 10 shares to all shareholders, no bonus shares, no conversion to paid-in capital.
The company implements the 2021 annual equity distribution, with June 21, 2022 as the equity registration date,
June 22, 2022 as the ex-rights and ex-dividend date, and the company's total share capital after excluding the
a cash dividend of CNY 30 (tax included) for every 10 shares, with a total cash dividend of CNY 4,519,335,222 (tax
included).
Special explanation of cash dividend policy
Whether it complies with the provisions of the           YES
company's articles of association or the requirements
of the resolution of the shareholders' meeting
Whether the dividend standard and ratio are explicit
                                                           YES
and clear
Whether the relevant decision-making procedures
                                                           YES
and mechanisms are complete
Whether the independent directors performed their
                                                           YES
duties and played their roles
Whether minority shareholders have the opportunity
to fully express their opinions and demands, and
                                                           YES
whether their legitimate rights and interests are fully
protected
If the cash dividend policy is adjusted or changed,
                                                           The company's cash dividend policy does not adjust
whether the conditions and procedures are compliant
                                                           or change
and transparent
The company was profitable during the reporting period and the parent company's profit available for
distribution to shareholders was positive, but no cash dividend distribution plan was proposed
   ¡õ Applicable ¡Ì N/A
Profit distribution and conversion of capital reserve into paid-in capital during the reporting period
  ¡Ì Applicable ¡õ N/A
Number of bonus shares for every 10 shares (shares)        0
Dividends per 10 shares (CNY) (tax included)               37.4
Base of shares (shares) of the distribution plan           1,506,445,074
Amount of cash dividends (CNY) (tax included)              0.00
Amount of cash dividends in other ways (such as
share repurchase) (CNY)
Total cash dividends (including other methods) (CNY)       5,634,104,576.76
Distributable profit (CNY)                                 29,676,346,187.62
Proportion of total cash dividends (including other
methods) to total profit distribution
Cash dividend situation
If the company's development stage is mature and there is no major capital expenditure arrangement when
making profit distribution, the proportion of cash dividends in this profit distribution should be at least 80%.
Detailed description of profit distribution or capital reserve conversion plan
As audited by Suya Jincheng Certified Public Accountants (Special General Partnership), the parent company
realized a net profit of CNY 6,394,344,631.56 in 2022, and the statutory surplus reserve for the year was CNY
the 2021 profit distribution of CNY 4,519,335,222.00, the profit available for distribution to shareholders this
year was CNY 29,676,346,187.62.
In line with the principle of not only taking into account the long-term development of the company, but also
giving appropriate returns to shareholders, the company plans to use the total share capital on the equity
registration date when the profit distribution plan is implemented (excluding the repurchased shares held in
the company's special securities account for repurchase) as the base , using undistributed profits to distribute
cash dividends of RMB 37.4 (tax included) for every 10 shares to all shareholders, no bonus shares, and no
conversion to share capital. The profit distribution plan complies with the cash dividend policy stipulated in
the Articles of Association.
Assuming that the company's existing total share capital of 1,506,988,000 shares is calculated based on the
account for share repurchase, it is estimated that the company will distribute a cash dividend of CNY
other employee incentives
  ¡Ì Applicable    ¡õ N/A
  N/A
Equity incentives obtained by the directors and senior management of the company
  ¡õ Applicable ¡Ì N/A
Evaluation mechanism and incentives for senior managers
The company continues to establish and improve the assessment and traction mechanism based on business
performance and the compensation and incentive mechanism for management team members oriented by value
contribution that are compatible with the market economy system and modern enterprise system. The 2021
Annual General Meeting of shareholders of the Company reviewed and approved the ¡°Management Measures
for Compensation and Assessment of Management Team Member¡±, which stipulates that the annual
remuneration of the members of the management team of the Company consists of basic annual salary,
performance-based annual salary, tenure incentive and other income, the basic annual salary is paid monthly,
the performance-based annual salary is implemented according to the annual performance appraisal results, and
the tenure incentive is linked to the operating performance appraisal during the term of office.
  ¡Ì Applicable ¡õ N/A
All valid employee stock ownership plans during the reporting period
                                                                              Proportion to      Funding sources
   Range of             Number of      Total shares                          the total share           for the
                                                             Changes
  employees             employees          held                              capital of listed   implementation
                                                                               companies                plan
Company¡¯s                                                                                        Participants¡¯
directors                                                                                        legal
(excluding                    4,738         9,118,384                  N/A             0.61%     remuneration,
independent                                                                                      self-financing
directors),                                                                                      and other
supervisors,                                                                              methods
senior                                                                                    permitted by
management                                                                                laws and
personnel, and                                                                            regulations
middle-level
and above
personnel and
core backbones
who are
determined by
the board of
directors of the
company and
wholly-owned
subsidiaries to
play an
important role
in the
company's
overall
performance
and medium
and long-term
development
Shareholdings of Directors, Supervisors and Senior Management in the Employee Stock Ownership Plan during
the Reporting Period
                                              Number of shares     Number of shares
                                                                                       Proportion to the
                                                  held at the      held at the end of
      Name                    Title                                                    total share capital
                                               beginning of the      the reporting
                                                                                      of listed companies
                                               reporting period          period
  Zhang Liandong          Chairman                        96,404              96,404                0.01%
                      Deputy chairman,
     Zhong Yu                                             96,404              96,404                0.01%
                          President
                          Director,
  Liu Huashuang                                           96,404              96,404                0.01%
                     CEO (Leaving office)
                           Director,
    Zhou Xinhu          Vice president                    48,202              48,202                0.00%
                       (Leaving office)
                       Chairman of the
   Chen Taiqing            Board of                       48,202              48,202                0.00%
                         Supervisors
    Chen Fuya             Supervisor                      48,202              48,202                0.00%
   Chen Taisong           Supervisor                      48,202              48,202                0.00%
     Lin Qing           Vice president                    48,202              48,202                0.00%
   Zheng Bujun          Vice president                    48,202              48,202                0.00%
                       Vice president,
    Yin Qiuming                                           48,202              48,202                0.00%
                             CFO
     Li Yuling          Vice president                    48,202              48,202                0.00%
   Lu Hongzhen         Secretary of the                   19,281              19,281                0.00%
                              Board
                          Vice president
   Fu Hongbing                                               48,202                48,202                  0.00%
                         (Leaving office)
Changes in asset management institutions during the reporting period
  ¡õ Applicable ¡Ì N/A
Changes in equity due to disposal of shares by holders during the reporting period
  ¡õ Applicable ¡Ì N/A
The exercise of shareholders' rights during the reporting period
  N/A
Other relevant situations and explanations of the employee stock ownership plan during the reporting period
  ¡õ Applicable ¡Ì N/A
Members of Employee Stock Ownership Plan Management Committee Change
  ¡õ Applicable ¡Ì N/A
The financial impact of the employee stock ownership plan on the listed company during the reporting period
and related accounting treatment
  ¡Ì Applicable ¡õ N/A
  In this period, the company confirmed that the cost increase of "capital reserves-other capital reserves" was
  CNY 122,414,308.77.
Termination of employee stock ownership plans during the reporting period
  ¡õ Applicable ¡Ì N/A
Other instructions: none
  ¡õ Applicable ¡Ì N/A
     The company has mainly formulated 15 categories and 260 systems for human resources, quality and food
safety, financial and audit management.
     (1) Standardize the establishment of the organizational structure. According to the relevant laws and
regulations of China, clarify the responsibilities, authority, conditions, rules of procedure and work procedures of
the board of directors, board of supervisors and managers to ensure that decision-making, execution and
supervision are separated from each other and form checks and balances. Clarify the internal division of labor of
the board of directors, and set up special committees including strategy committee, nomination committee,
remuneration and appraisal committee, and audit committee.
    (2) Improve human resources policies.
     ¢Ù Improve the staff training mechanism. The company needs a strict assessment when hiring employees,
select outstanding talents to join the company, and form a system for employees on training, treatment,
performance assessment and promotion. For employees in different positions, the company provides channels
to improve their comprehensive quality to cultivate high-quality talents. ¢Ú Establish an effective incentive
mechanism. On the basis of following the fairness and relative stability of incentives and constraints, the
company formulates equity incentives and mechanisms for spontaneous compensation incentives which is
conducive to stimulating employees' subjective initiative, giving full play to their potential, safeguarding
corporate interests and achieving corporate goals.
Measures¡±, ¡°Risk Management Responsibility Investigation System¡± and other systems to investigate risks from
the aspects of food safety and behavior safety, and make preparations for the occurrence and generation of risks.
At the same time, the company organizes the Guidance on Common Risks and Control of Contract Management,
Risk Management Training and other trainings, focusing on the risk management system, internal control system
and integrated risk management and control module, to discover and deal with risk points in time.
implements measures such as division of responsibilities control, authorization control, review and approval
control, budget control and performance evaluation control, to effectively safeguard the interests of the
enterprise and ensure the stable and orderly progress of various work.
of the information system, establishes a sensitive information collection and feedback system, realizes the
upward, parallel or downward flow and communication of various information within the enterprise, and
implements the whole process of the entire internal control information from production, release to feedback
modern management.
scientific view of internal audit culture, pays great attention to the organization and team building of the audit
department, sets up the internal audit department in accordance with the relevant regulations of China, and
allocates internal auditors with professional competence, maintains the independence of internal audit, and
makes the internal audit department more independent. Besides, the internal audit has transformed from a
single supervision function to a comprehensive function of supervision, evaluation, control and consultation, and
fully exerted the value-added function. By sorting out the supervision content and matters, the company clarifies
the evaluation standards and audit methods of each department, and constantly improves the audit work plan.
In addition, the company needs to strengthen the construction of audit informatization, constantly strengthen
the thinking mode of big data audit, enhance the ability of big data audit, comprehensively use on-site audit and
off-site audit methods, and improve the efficiency of internal audit.
      The company continues to establish and improve the internal control system and can effectively implement
it. In the focus of audit, highlight the key supervision of key funds, important projects, important assets and
important positions responsible for the economic responsibility of personnel. In the content of audit, benefit
audit, responsibility audit and internal control system audit should be the main. In terms of audit methods, audit
and research should be combined, post-supervision should be transformed into pre-control, and comprehensive
audit should be strengthened. Audit means need to gradually transition to modern audit means. The audit
Committee of the Board of Directors of the Company annually reviews and supervises the financial report, the
effectiveness of internal control, and the reasonableness and effectiveness of corporate governance; Carry out
internal control self-evaluation every year; Optimize the system and management process every year according
to the internal and external environment and development requirements of the enterprise; Closely focus on the
key work of the company, carry out full coverage audit of all molecular companies and functional departments,
so as to achieve full coverage audit of key departments once a year; Conduct spot check and audit of important
departments, with a spot check rate of 50%, and audit with full coverage once every two years; Spot check and
audit of general departments, the spot check rate of 33%, to achieve full coverage of audit once every three
years.
  ¡õ Yes ¡Ì No
 Name of the      Combination      Combination                                         Resolve        Follow-up
                                                         Issues       Solutions
 subsidiaries        plan            progress                                          progress     resolution plan
N/A              N/A              N/A              N/A             N/A              N/A             N/A
Date of disclosure of the full text
of the internal control evaluation      April 26, 2023
report
Disclosure Index of the Full Text of
                                        The full text of the "Self-assessment Report on Internal Control" will be
the Internal Control Evaluation
                                        disclosed on http://www.cninfo.com.cn on April 26, 2023
Report
The ratio of the total assets of the
company included in the
evaluation scope to the total           99.48%
assets of the company's
consolidated financial statements
The ratio of the operating income
of the company included in the
evaluation scope to the operating       99.99%
income of the company's
consolidated financial statements
                                          Defect identification standard
                Type                              Financial report                     Non-financial report
                                  (1) Signs of major deficiencies in
                                  financial reports include: i.
                                  Fraudulent conduct by the
                                  company¡¯s directors, supervisors           (1) Signs of major deficiencies in
                                  or senior executives; ii. Significant      non-financial reports include: i.
                                  misstatements in the current               lack of democratic decision-making
                                  financial statements were found,           procedures, unscientific
                                  but the management failed to               decision-making procedures,
                                  detect them during the operation           major mistakes which resulting in
                                  of internal control; iii. As a result of   major property losses to the
                                  internal control evaluation, major         company; ii. Serious violation of
                                  deficiencies have not been                 national laws and regulations;
                                  rectified; iv. The audit committee         iii.Lack of important business
                                  and internal audit institution's           management system or systemic
                                  supervision of internal control is         failure of system operation; iv. The
                                  invalid. (2) Signs of significant          company's major or important
                                  deficiencies in financial reporting        internal control deficiencies
                                  include: i. Failure to select and          cannot be rectified in a timely
                                  apply accounting policies in               manner; v. The company continues
Qualitative Criteria
                                  accordance with generally                  or has a large number of important
                                  accepted accounting principles; ii.        internal control deficiencies . (2)
                                  Failure to establish anti-fraud            Signs of significant deficiencies in
                                  procedures and control measures;           non- financial reporting include: i.
                                  iii. Failure to establish                  The business behavior violates
                                  corresponding accounting                   relevant national laws; ii.
                                  treatment for non-routine or               Inadequate decision-making
                                  special transactions iv. There are         process leads to important errors
                                  one or more deficiencies in the            and large losses; iii. Serious loss of
                                  control over the period-end                business personnel in key
                                  financial reporting process and            positions; iv. Deficiencies in
                                  there is no reasonable assurance           important business systems or
                                  that the prepared financial                systems. (3) General deficiencies
                                  statements will achieve the true           refer to control deficiencies other
                                  and accurate objectives. (3)               than the above major deficiencies
                                  General defects refer to other             and significant deficiencies.
                                  control defects other than the
                                  above-mentioned major defects
                                  and important defects.
                                  Major defects: Misstatement > 3%
                                  of total operating income;
                                  Misstatement > 5% of total profit;
                                  Misstatement > 2% of total assets.
                                  Important defects: 1% of total
                                                                             Major defect: loss accounts for ¡Ý
                                  operating income < misstatement
                                  ¡Ü 3% of total operating income;
                                                                             defects: 0.5%¡Ülosses account for
Quantitative standard                                                        less than 1% of total assets.
                                  ¡Ü 5% of total profit; 1% of total
                                                                             General defects: The proportion of
                                  assets < misstatement ¡Ü 2% of
                                                                             loss to total assets is less than
                                  total assets. General defects:
                                  misstatement ¡Ü 1% of total
                                  operating income; misstatement
                                  ¡Ü 3% of total profit;
                                  misstatement ¡Ü 1% of total
                                  assets.
Number of major deficiencies in
financial reports (pieces)
Number of major deficiencies in   0
non-financial reports (pieces)
Number of material deficiencies in
financial reports (pieces)
Number of material deficiencies in
non-financial reports (pieces)
¡Ì Applicable ¡õ N/A
                        Deliberation Opinion Paragraph in Internal Control Audit Report
We believe that on December 31, 2022, Yanghe Co., Ltd. maintained effective internal control over financial
reporting in all material aspects in accordance with the ¡°Basic Norms for Corporate Internal Control¡± and
relevant regulations.
Disclosure Situation of
                              Disclosed
Internal Control Audit Report
Disclosure date of the full text
of the internal control audit April 26, 2023
report
Full text disclosure index of
                                 The full text will be disclosed on http://www.cninfo.com.cn on April 26, 2023
internal control audit report
Types of opinions on internal
                              Standard unqualified opinion
control audit reports
Whether there are material
deficiencies in non-financial    No
reporting
Whether the accounting firm issued an internal control audit report with a non-standard opinion
  ¡õ Yes ¡Ì No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation
report of the board of directors
  ¡Ì Yes ¡õ No
   During the self-inspection, some directors, supervisors and senior executives of the company were unable to
attend the general meeting of shareholders in person due to business trips and other reasons. The company had
promptly notified the relevant personnel of the convening of the meeting and the deliberation of proposals after
the meeting.
               Section V Environmental and Social Responsibility
Whether the listed company and its subsidiaries belong to the key pollutant discharge companies announced by
the environmental protection department
  ¡ÌYes ¡õ No
Environmental protection related policies and industry standards
The company strictly complies with environmental protection related laws and regulations and industry
standards.
Relevant laws and regulations: ¡°Environmental Protection Law of the People's Republic of China¡±, ¡°Law of the
People's Republic of China on Water Pollution Prevention and Control¡±, ¡°Law of the People's Republic of China on
the Prevention and Control of Environmental Pollution by Solid Waste¡±, ¡°Law of the People's Republic of China on
Prevention and Control of Air Pollution¡±, ¡°Law of the People's Republic of China on the Prevention of Noise
Pollution¡±, ¡°Rules for Implementation of the Law on the Prevention and Control of Water Pollution¡±, ¡°Measures
for administrative penalties on environmental protection¡±, ¡°Rules for the Implementation of the Air Pollution
Prevention and Control Law¡±, ¡°Regulations on the Safety Management of chemical dangerous Goods¡±,
¡°Regulations on discharge permit Administration¡±, ¡°Regulations of Jiangsu Province on Environmental Protection¡±
and so on.
Relevant industry standards: ¡°Emission of Odorous Pollutants¡± (GB14554-93) Table 1 Secondary Standards, ¡°The
Integrated Emission Standard of Air Pollutants¡± (GB16297-1996) Table 2 Standard limits, ¡°Industrial enterprise
boundary environmental noise emission standard¡± (GB12348-2008) Table 1 Class 2 standards, ¡°Discharge
standard for water pollutants of fermented alcohol and liquor industry¡± £¨GB27631-2011£©, ¡°Discharge standard
of air pollutants from boilers¡± £¨DB32/ 4385¡ª2022), ¡°Classified Management List of Environmental Impact
Assessment of Construction Projects (2021 Edition)¡± and so on.
Environmental protection administrative permit
The company and its subsidiaries have complete materials such as environmental impact reports and pollutant
discharge permits for construction projects.
    Jiangsu Yanghe Distillery Co., Ltd.£ºOn July 18, 2022, the Company applied to Suqian Bureau of Ecological
Environment for the ¡°Pollutant Discharge Permit of Yanghe Branch of Yanghe Stock Co., LTD.¡±, valid from July 18,
    Jiangsu Shuanggou Wine Co., Ltd.£ºThe Company has obtained ¡°Jiangsu Provincial Pollutant Discharge
License¡± issued by Suqian Municipal Bureau of Ecological Environment on August 12, 2021, valid from August 12,
    Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch£ºOn November 11, 2022, the Company obtained the
¡°Pollutant Discharge License of Siyang Branch of Yanghe Corporation¡± issued by Suqian Municipal Bureau of
Ecological Environment. The license is valid from November 11, 2022 to November 10, 2027.
    Guizhou Guijiu Group Co., Ltd.£ºThe company applied for the renewal of the pollutant discharge permit in
to October 17, 2027.
Industrial discharge standards and details of the discharge of pollutants involved in production and business
activities
                       Names
                                                                         Impleme
             Types        of
Compa          of                                    Distrib               nted
                        major                 Num
  ny         major                                    ution    Emissio   pollutan                         Exces
 name       polluta    polluta                ber                                    Total     Total
                                  Emission              of        n          t                             sive
  or        nts and    nts and                 of                                   emissi   approved
subsidi     charact               method             dischar   concen    discharg                         emis
                       charact                vent                                    ons    emissions
  ary        eristic                                    ge     tration       e                            sions
 name       polluta     eristic                 s
                                                     outlets             standard
              nts      polluta
                                                                             s
                         nts
                       Oxygen
                       Deman
                       d,                            Longitu   57.95m               76.95    454.7
                       Ammo                          de£º       g/L                  tons     tons/year
Jiangsu
                       nia                           118¡ã22¡ä   0.78mg    650mg/L    1.03     74.7
Yanghe
            Waste      Nitroge    Indirect           33.74¡å    /L        40mg/L     tons     tons/year
Distiller                                     1                                                           None
            water      n, Total   emissions          Latitud   0.81mg    5mg/L      1.07     2.07
 y Co.,
                       Phosph                        e£º        /L        60mg/L     tons     tons/year
  Ltd.
                       orus,                         33¡ã47¡ä2   23.94m               31.79    37.3
                       Total                         6.74 ¡å    g/L                  tons     tons/year
                       Nitroge
                       n
                       Oxygen
                       Deman
                       d,                            Longitu   59.55m               39.12    400
Jiangsu                Ammo                          de£º       g/L                  tons     tons/year
Shuang                 nia                           118¡ã12¡ä   2.43mg    500mg/L    1.47     32
  gou       Waste      Nitroge    Indirect           07¡å       /L        40mg/L     tons     tons/year
 Wine       water      n, Total   emissions          Latitud   1.64mg    8mg/L      1.01     6.4
  Co.,                 Phosph                        e£º        /L        60mg/L     tons     tons/year
  Ltd.                 orus,                         33¡ã13¡ä4   12.96m               8.60     48
                       Total                         5¡å        g/L                  tons     tons/year
                       Nitroge
                       n
Jiangsu                Oxygen                        Longitu   119mg                94       600
Yanghe                 Deman                         de£º       /L        500mg/L    tons     tons/year
Distiller   Waste      d,         Indirect           118¡ã45¡ä   3.98mg    60mg/L     0.65     42
 y Co.,     water      Ammo       emissions          33.08¡å    /L        6mg/L      tons     tons/year
  Ltd.                 nia                           Latitud   1.7mg/    60mg/L     1.76     5
 Siyang                Nitroge                       e£º        L                    tons     tons/year
Branch              n, Total                      33¡ã42¡ä2   23mg/L               11.44    58.8
                    Phosph                        5.70¡å                          tons     tons/year
                    orus,
                    Total
                    Nitroge
                    n
                    Oxygen
                    Deman
                    d,                            Longitu   42.73m               4.65     8.958
                    Ammo                          de£º       g/L                  tons     tons/year
Guizho
                    nia        Straight           106¡ã35¡ä   1.18mg    100mg/L    0.13     0.898
u Guijiu
           Waste    Nitroge    emissions          43¡å       /L        10mg/L     tons     tons/year
 Group                                      1                                                          None
           water    n, Total   after              Latitud   0.098m    1mg/L      0.01     0.0925
  Co.,
                    Phosph     processing         e£º        g/L       20mg/L     tons     tons/year
  Ltd.
                    orus,                         25¡ã50¡ä5   8.66mg               0.94     1.85
                    Total                         2¡å        /L                   tons     tons/year
                    Nitroge
                    n
                                                  Longitu
                                                  de£º
Guizho
u Guijiu
           exhaus   Nitroge    Straight           43¡å       33.86m    200mg/     2.47     6.199
 Group                                      1                                                          None
            t gas   n oxide    emissions          Latitud   g/m?      m3         tons     tons/year
  Co.,
                                                  e£º
  Ltd.
Treatments of pollutants
Jiangsu Yanghe Distillery Co., Ltd.£ºThe sewage treatment station in use was completed in 2012, with a total
investment of CNY 96 million, covering an area of 19,000 square meters, with a designed sewage treatment
capacity of 10,000 tons per day. The sewage treatment process adopts physical treatment method + chemical
treatment method + anaerobic biological treatment method + aerobic biological treatment method in order to
reach the treatment of high-concentration wastewater of 250 tons per hour. The emission implements the
"Fermentation Alcohol and Liquor Industry Pollutant Emission Standard (GB27631-2011)" to modify the list of
indirect emission protocol standards. In 2022, 1.328 million tons of wastewater were treated. COD reduction was
nitrogen reduction was 305.12 tons. The emission concentration of all pollutants is lower than the national
emission standard. There is a biogas boiler room equipped with 9 biogas boilers, and the biogas produced by
anaerobic fermentation of sewage treatment was all used for biogas boiler combustion. The steam produced by
the biogas boiler was used for brewing production, and the steam output was 135,000 tons in 2022. The sludge
and vinasse are mainly recycled by qualified third party units.
Jiangsu Shuanggou Wine Co., Ltd.£ºThe sewage treatment station in use was completed in 2013, with a total
investment of CNY 42.5 million, covering an area of 15,000 square meters, with a designed sewage treatment
capacity of 5,400 tons per day. Sewage treatment adopts anaerobic tower + UASB + AAO + secondary
sedimentation tank + phosphorus removal tank treatment process, in accordance with the revised list of
"Fermentation Alcohol and Liquor Industrial Pollutant Discharge Standard ( GB27631-2011)". In 2022, 597,600
tons of wastewater were treated. COD reduction was 6,538.24 tons, ammonia nitrogen reduction was 92.97 tons,
total phosphorus reduction was 42.65 tons, total nitrogen reduction was 162.58 tons. The emission
concentration of all pollutants is lower than the national emission standard. There is a biogas boiler room
equipped with 3 biogas boilers, and the biogas produced by anaerobic fermentation of sewage treatment was all
used for biogas boiler combustion. The steam produced by the biogas boiler was used for brewing production,
and the steam output was 31,700 tons in 2022. The sludge and vinasse are mainly recycled by qualified third
party units.
Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch£ºThe sewage treatment station in use was completed in 2015,
with a total investment of CNY 50 million, covering an area of about 15,000 square meters, with a designed
sewage treatment capacity of 6,000 tons per day. The sewage treatment process adopts EGSB + AAO + advanced
treatment technology, and implements the indirect discharge agreement standard of the revised list of
"Fermentation Alcohol and Liquor Industry Pollutant Discharge Standard GB27631-2011". In 2022, 867,900 tons
of wastewater were treated. COD reduction was 9496.62 tons, ammonia nitrogen reduction was 93.5 tons, total
phosphorus reduction was 252.74 tons, total nitrogen reduction was 87.08 tons. The emission concentration of
all pollutants is lower than the national emission standard. There is a biogas boiler room equipped with 6 biogas
boilers, and the biogas produced by anaerobic fermentation of sewage treatment was all used for biogas boiler
combustion. The steam produced by the biogas boiler was used for brewing production, and the steam output
was 82,000 tons in 2022. The sludge and vinasse are mainly recycled by qualified third party units.
Guizhou Guijiu Group Co., Ltd.£ºThe sewage treatment station in use was completed in 2021, with a total
investment of CNY 11.5 million, covering an area of about 1,980 square meters, with a designed sewage
treatment capacity of 700 tons per day. The wastewater produced by pretreatment + AAO + MBR + ozone
decolorization and disinfection + chemical phosphorus removal treatment process shall comply with the direct
discharge standard in Table 2 of the Discharge Standard for Water Pollutants in Fermented Alcohol and Liquor
Industry (GB27631-2011). In 2022, 108,600 tons of wastewater were treated. COD reduction was 746.89 tons,
ammonia nitrogen reduction was 19.55 tons, total phosphorus reduction was 34.67 tons, total nitrogen
reduction was 10.84 tons. The emission concentration of all pollutants is lower than the national emission
standard. The combustion equipment is gas-fired boilers with natural gas as fuel. The sludge and vinasse are
mainly recycled by qualified third party units.
Emergency plan for environmental emergencies
The company and its subsidiaries have formulated contingency plans for environmental emergencies. The
company has filed with the Bureau of Ecological Environment of Suqian City£»Shuanggou Wine has filed with the
Sihong Ecological Environment Bureau of Suqian City, the company's Siyang Branch has filed with Siyang County
Ecological Environment Bureau for the record, Guijiu Company has filed with Xiuwen County environmental
supervision brigade.
The company and its branches and subsidiaries actively organize employees to train and learn the plan, and
regularly carry out environmental emergency plan drills, to improve the environmental protection awareness and
emergency handling ability of all staff.
Environmental Self-Monitoring Program
The company and its subsidiaries have completed self-monitoring plans
Jiangsu Yanghe Distillery Co., Ltd. has installed COD, ammonia nitrogen, total nitrogen, total phosphorus, PH,
flow online monitoring instruments, whose data is connected to the automatic monitoring and basic database
system of key polluters and the Jiangsu Province pollution source "One enterprise, One station" management
system. The daily manual sampling and self-testing is conducted, and a periodical sampling inspection by
qualified institutions is entrusted by a third party. The environmental self-monitoring program has been filed
with the Jiangsu Province self-monitoring information release platform of key monitoring enterprises.
Jiangsu Shuanggou Wine Co., Ltd. has installed COD, ammonia nitrogen, total nitrogen, total phosphorus, PH,
flow online monitoring instruments and released the test results on the automatic monitoring and basic
database system of key pollutant discharge enterprises, the Jiangsu Province self-monitoring information release
platform of pollutant discharge enterprises, and the Suqian City Big Data Center of Ecological Environment. The
daily manual sampling and self-testing is conducted, and a sampling inspection by qualified institutions is
entrusted by a third party every month. The environmental self-monitoring program has been filed with the
Jiangsu pollutant discharging enterprises self-monitoring information release platform.
Jiangsu Yanghe Distillery Co., Ltd. Siyang Branch has installed COD, ammonia nitrogen, total nitrogen, total
phosphorus, PH, flow online monitoring instruments and released the test results on the automatic monitoring
and basic database system of key pollutant discharge enterprises, the Jiangsu Province self-monitoring
information release platform of pollutant discharge enterprises, and the Suqian City Big Data Center of Ecological
Environment. The daily manual sampling and self-testing is conducted, and a sampling inspection by qualified
institutions is entrusted by a third party every month. The environmental self-monitoring program has been filed
with the Jiangsu Province self-monitoring information release platform of key monitoring enterprises.
Guizhou Guijiu Group Co., Ltd. has installed COD, ammonia nitrogen, total nitrogen, total phosphorus, PH, ss,
flow online monitoring instruments released the test results on Guizhou Province Automatic monitoring and
management platform for key pollution sources. The daily manual sampling and self-testing is conducted, and a
sampling inspection by qualified institutions is entrusted by a third party every quarter. The environmental
self-monitoring program has been filed with the Xiuwen Branch of Guiyang Bureau of Ecology and Environment.
Input in environmental governance and protection and payment of environmental protection tax
The company, its branches and subsidiaries actively carry out environmental treatment and protection work. In
the environmental protection tax is about CNY 1.0808 million.
Measures taken to reduce carbon emissions during the reporting period and their effects
¡Ì Applicable ¡õ N/A
In 2022, the company actively responded to the Party and the state to implement the spirit requirements of the
national carbon peak carbon neutrality strategy, and cooperated with China Energy Conservation Group to carry
out enterprise carbon emission inventory and product carbon footprint accounting. The company started to
compile the Carbon Peak Carbon Neutrality Plan and Action Plan of Yanghe Stock to clarify the strategic goal and
action path of the company to achieve carbon peak carbon neutrality.
In 2022, the company is committed to spreading low-carbon concepts and improving energy utilization efficiency.
(1) Energy saving: All the biogas produced by anaerobic fermentation through sewage treatment was used for
boiler combustion to produce steam, with an annual steam output of 240,000 tons and a reduction of 75,000
tons of carbon dioxide emissions. By controlling the total air intake pressure and gas consumption loss, the
Siyang Branch of the company reduced the purchased steam by 57,500 tons and carbon emissions by 17,800
tons. Shuanggou implemented automatic slurry filling transformation of slurry tank, saving 2,586 tons of water
and 4,938 tons of steam annually. Siyang Branch of the company has promoted the watt reduction project of
solar projection lamp, solar street lamp and factory lamp. Up to now, it has completed the replacement of 125
solar projection lamp, 114 solar street lamp and 396-watt reduction lamp, reducing the state grid electricity
consumption by 976,400 KWH in total. Guizhou Guijiu Company adjusted boiler steam pressure according to
brewing demand to realize fine management of natural gas, and the consumption decreased by 3.5% compared
with the same period last year.
(2) Resource conservation: Shuanggou Wine Industry carried out the transformation of circulating water in
production, and realized the annual saving of 129,900 tons of water resources through the reuse of wastewater
and the optimization of circulating water equipment. In addition, the transformation of sludge pressure filter
equipment measures to achieve the annual pharmaceutical, electricity savings of CNY 245,000.
(3) Green energy use: The accumulative new photovoltaic during the reporting period is 14.4WM, including
(4) Ecological protection: Shuanggou Wine implemented measures to improve the soil, optimized the green
space of about 500 square meters in the reporting period, and added more than 1200 green plants.
(5) Low-carbon concept: the company launched the initiative call of "Be a low-carbon master" and "low-carbon
life", and carried out activities such as Yanghe Top ten "Low-carbon Master" selection and energy conservation
Publicity week. A total of 16,800 people participated in these activities, which strengthened and spread the
concept of low-carbon, shaped the new wind of saving, and painted a green picture.
Administrative penalties for environmental issues during the reporting period
                                                                             The impact on
  Company or                                                                the production
                     Reason for         Violation          Punishment                          Rectification
   subsidiary                                                                and operation
                    punishment          situation             result                            measures
     name                                                                       of listed
                                                                              companies
None              None               None               None                None             None
Other environmental information that should be disclosed
  None
Other environmental protection related information
  None
The company has disclosed the ¡°2022 Annual Social Responsibility Report and ESG Report¡± £¬ see
www.cninfo.com.cn for details.
During the reporting period, the company adhered to the social responsibility concept of "feeding back the
country and the people", actively fulfilled its corporate social responsibility, and devoted itself to social welfare
and charity undertakings. On the road of promoting "common prosperity", the company has further built a green
raw grain planting base, driven the steady development of supporting enterprises in the upstream and
downstream industrial chains of planting industry, processing industry, packaging industry and so on to increase
employment opportunities, and become a pillar force in poverty alleviation. In promoting "rural revitalization",
the company has actively carried out assistance to poor villages, helping Taiping Village and Qiuzhuang Village in
Zhenglou Town to achieve poverty alleviation. In addition, the company and Zhang Du village cooperation to
carry out "love warm sunset, dream for love" for the golden wedding elderly collective wedding photos,
"weekend hairdressers" activities. The company also cooperated with Qiuzhuang Village to carry out the
Mid-Autumn Festival visit to the countryside.
Furthermore, The "Lasa Langrejiu Village" industrial aid project for Tibet has been successfully implemented,
driving rural revitalization through the construction of highland barley finishing industry, wine making industry
and characteristic cultural and tourism industry. In terms of "public welfare responsibility", the company donated
CNY2 million to Suqian Charity Federation to help nearly 10,000 poor students realize their dreams of university£¬
and donated CNY800,000 from online sales of co-branded products to China Veterans Employment and
Entrepreneurship Service Promotion Association, which was used to help veterans find jobs and start businesses,
and held online fundraising rallies for education and promoted the project of "Donate love for children's health".
Measures such as supporting the development of China's space industry and providing assistance to
earthquake-stricken areas have also been effectively implemented. Yanghe Group uses public welfare actions to
demonstrate its social responsibility and responsibility and pass on love.
In 2023, the company will continue to respond to the call of the state, thoroughly implement the policy of
consolidating and expanding the achievements of poverty alleviation and effectively linking them with rural
revitalization, and take stronger actions to boost common prosperity and rural revitalization.
For other information, please refer to the ¡°2022 Annual Social Responsibility Report and ESG Report¡± disclosed
by the company.
                              Section VI Significant Events
parties, acquirers, and other related parties for the commitments by the end of the reporting period
  ¡Ì Applicable ¡õ N/A
                 Giver of
Commitment                   Commitment       Details of       Date of      Term of
               commitment                                                               Performance
    s                           Type         Commitment      Commitment   Commitment
                    s
                                             Commitment
                                             to avoid
                                             horizontal
                                             competition:
                                             (1) The
                                             company is
                                             not currently
                                             engaged in
                                             any business
                                             that
                                             competes
                                             with the
                                             joint-stock
                                             company.
                                             The company
                             Commitment      promises to
                             s on            maintain the
Commitment    Jiangsu        horizontal      existing
s made at     Yanghe         competition,    business        August 26,                 In normal
                                                                          Long-term
IPO or        Group Co.      related         structure,      2009                       execution
refinancing   Ltd.           transactions,   and not to
                             and capital     directly or
                             occupation      indirectly
                                             operate with
                                             the business
                                             of the
                                             joint-stock
                                             company
                                             that actually
                                             constitutes
                                             competition
                                             or may
                                             constitute
                                             competition.
                                             Any business,
                                             or newly
                                             established
                                             subsidiaries
                                             or affiliated
enterprises
engaged in
the
above-menti
oned
business. (2)
If the
company
violates the
above
commitment
s, the
joint-stock
company has
the right to
request the
company to
immediately
terminate
the business
of horizontal
competition
and
compensate
the economic
loss caused
to the
joint-stock
company. At
the same
time, the
company
shall pay
liquidated
damages of
CNY 10
million to the
joint-stock
company. (3)
The company
promises not
to use its
status as the
controlling
shareholder
in the
joint-stock
company to
damage the
legitimate
rights and
interests of
the
joint-stock
company,
other
shareholders
of the
joint-stock
company and
creditors of
the
joint-stock
company. ¢È
This letter of
commitment
takes effect
from the
date of
signing and
cannot be
revoked
without the
consent of
the
joint-stock
company. 2.
Commitment
to reduce
related-party
transactions:
The company
will strictly
abide by the
requirements
of relevant
laws,
regulations
and
normative
documents
such as the
Company
Law, the
Securities
Law, and the
Code of
Corporate
Governance
for Listed
Companies,
and further
reduce and
strictly
regulate the
relationship
with
joint-stock
companies.
All kinds of
related-party
transactions
between the
two
companies,
to ensure
                                that the
                                status of the
                                controlling
                                shareholder
                                and actual
                                controller
                                will not be
                                used to harm
                                the interests
                                of the
                                joint-stock
                                company and
                                other
                                shareholders
                                of the
                                joint-stock
                                company,
                                and that no
                                new
                                occupation
                                of the
                                joint-stock
                                company will
                                occur.
                                Commitment
                                to avoid
                                horizontal
                                competition:
                                company is
                                mainly
                                engaged in
                                investment
                                management
                Commitment      , and does
                s on
                                not operate
                horizontal
Jiangsu Blue                    the same or
                competition,                    November               In normal
Alliance Co.,                                              Long-term
                related         related         23, 2017               execution
Ltd.
                transactions,
                                business as
                and capital
                occupation      the issuer.
                                The company
                                will not
                                engage in the
                                same or
                                related
                                business as
                                the issuer's
                                business, and
                                will not harm
                                the issuer's
interests, nor
will it seek
illegitimate
benefits from
the issuer; 2.
If the
company
violates the
above
commitment
s, the issuer
has the right
to demand
compensatio
n from it
owing to
economic
losses caused
to the issuer,
and pay
liquidated
damages of
CNY 5
million, and
have the
right to
request the
acquisition of
the business
project at the
market price
of the
business
project or
the
establishmen
t cost price
(whichever is
lower); 3.
This
commitment
The book will
take effect
from the
                             date of
                             signing and
                             cannot be
                             revoked
                             without the
                             consent of
                             the issuer.
                             After the
                             issuer's
                             shares have
                             been listed
                             and traded
                             on the stock
                             exchange for
                             one year, the
                             shares
                             transferred
                             each year
                             shall not
Jiangsu Blue    Share        exceed 25%
                                              November               In normal
Alliance Co.,   Reduction    of the total                Long-term
Ltd.            Commitment                    23, 2017               execution
                             number of
                             the issuer's
                             shares held
                             by the issuer,
                             and the
                             issuer's
                             shares held
                             and their
                             changes shall
                             be reported
                             to the issuer
                             in a timely
                             manner.
                             As one of the
                             directors,
                             supervisors
                             and senior
Cong            Other        managers of      November               In normal
                                                         March 30,
                commitment
Xuenian                      the of           23, 2017   2024        execution
                s
                             Jiangsu Blue
                             Alliance Co.,
                             Ltd., I
                             promise: 1.
                           During the
                           term of
                           office of the
                           issuer, the
                           annual
                           transfer of
                           Blue Alliance
                           equity shall
                           not exceed
                           total equity
                           of Blue
                           Alliance held
                           by me 2. If I
                           resign from
                           the issuer, I
                           shall not
                           transfer the
                           shares of the
                           Blue Alliance
                           held by me
                           within six
                           months after
                           resignation;
                           from the
                           issuer, the
                           number of
                           shares
                           transferred
                           shall not
                           exceed 50%
                           of the total
                           shares of the
                           Blue Alliance
                           held by me
                           within 12
                           months of six
                           months of
                           resignation
                           As one of the
              Other
                           directors,       November   January 8,   Execution
Feng Pantai   commitment
                           supervisors      23, 2017   2022         completed
              s
                           and senior
managers of
the of
Jiangsu Blue
Alliance Co.,
Ltd., I
promise: 1.
During the
term of
office of the
issuer, the
annual
transfer of
Blue Alliance
equity shall
not exceed
total equity
of Blue
Alliance held
by me 2. If I
resign from
the issuer, I
shall not
transfer the
shares of the
Blue Alliance
held by me
within six
months after
resignation;
from the
issuer, the
number of
shares
transferred
shall not
exceed 50%
of the total
shares of the
Blue Alliance
held by me
within 12
months of six
                                               months of
                                               resignation
Whether the
promise is
                  YES
fulfilled on
time
If the
commitment
is overdue
and not
fulfilled, the
specific
reasons for
the failure to
                  N/A
fulfill and the
next work
plan shall be
explained in
detail
reporting period is still within the forecast period, the Company shall explain whether the performance of
the asset or project reaches the profit forecast and why:
  ¡õ Applicable      ¡Ì N/A
related parties
  ¡õ Applicable ¡Ì N/A
  No such case during the current reporting period.
  ¡õ Applicable ¡Ì N/A
  No such case during the current reporting period.
  ¡õ Applicable      ¡Ì N/A
Directors (if applicable) regarding the ¡°Non-standard Auditor¡¯s Report¡± Issued by the CPA
Firm for the Current Reporting Period
  ¡õ Applicable    ¡Ì N/A
Accounting Errors Compared with the Financial Report for the Prior Year
  ¡õ Applicable    ¡Ì N/A
There was no change in accounting policies, accounting estimates or correction of significant accounting errors
during the reporting period of the Company.
report of the previous year
  ¡Ì Applicable    ¡õ N/A
     (1) In March 2022, the company, Xizang Earth Third Pole Industry Development Co., Ltd., Lhasa Pure Land
Industry Investment and Development Group Co., Ltd., and Shenzhen Baoneng Food Technology Group Co., Ltd.,
jointly invested CNY 400.00 million to establish Xizang Earth Third Pole Wine Co., Ltd., of which the company
invested CNY 204.00 million. 51% of its registered capital; Xizang Earth Third Pole Industry Development Co., Ltd.
invested CNY 72.00 million, accounting for 18% of its registered capital; Lhasa Jingland Industry Investment and
Development Group Co., Ltd. invested CNY 64.00 million, accounting for 16% of its registered capital; Shenzhen
Baoneng Food Technology Group Co., Ltd. Invested CNY 60.00 million, accounting for 15% of its registered capital.
It will be included in the consolidated scope of the consolidated financial statements from March 2022.
     (2) In August 2022, Guizhou Maotai Town Guijiu Wine Industry Co., Ltd., the holding subsidiary, invested
CNY 0.50 million to establish Guizhou Guijiu Wine Industry Operation Co., Ltd., accounting for 100% of its
registered capital. Since August 2022, the company has included Guizhou Guijiu Wine Operation Co., Ltd. in the
consolidated scope of the consolidated financial statements.
     (3) In August 2022, the Company subscribed CNY 10 million to establish Jiangsu Blue Shangyin Catering
Management Co., Ltd., accounting for 100% of its registered capital. Since August 2022, the Company has
incorporated Jiangsu Azure Shangyin Catering Management Co., Ltd. into the consolidated scope of the
consolidated financial statements.
     (4) In August 2022, the company subscribed capital of CNY 3.00 billion to establish Jiangsu Yanghe Dream
Investment Management Co., Ltd., accounting for 100% of its registered capital. Jiangsu Yanghe Dream
Investment Management Co., Ltd. has been included in the consolidated scope of the consolidated financial
statements since August 2022.
     (5) In September 2022, Jiangsu Yanghe Dream Investment Management Co., LTD., the holding subsidiary,
invested CNY 10.00 million to establish Jiangsu Yanghe Blue Investment Management Co., Ltd., accounting for
Investment Management Co., Ltd. in the consolidated scope of the consolidated financial statements.
     (1) In September 2022, the holding subsidiary Jiangsu Kelite Biotechnology Research Institute Co., Ltd. was
deregested and will no longer be included in the consolidated scope of the consolidated financial statements
from October 2022.
    (2) In November 2022, Guizhou Guijiu Liquor Operation and Management Co., LTD., the holding subsidiary,
was liquidated and cancelled, and it will no longer be included in the consolidated scope of the consolidated
financial statements from December 2022.
CPA firm engaged at present
Name of domestic accounting firm                        Suya Jincheng CPA LLP.
Remuneration of domestic accounting firm
(CNY10,000)
Consecutive years of audit services of domestic
accounting firms
The name of the certified public accountant of the
                                                        Li Laimin, Li Yan
domestic accounting firm
Consecutive years of auditing services by certified
                                                        Li Laimin: 3 years; Li Yan: 4 years
public accountants of domestic accounting firms
Whether to change the CPA firm in the current period
   ¡õ Yes      ¡Ì No
Engagement of internal control audit CPA firm, financial advisor or sponsor
   ¡Ì Applicable ¡õ N/A
During the reporting period, the Company hired Suya Jincheng CPA LLP. as the internal control audit accounting
firm, and paid a total of CNY 530,000 of financial consulting fees during the period.
  ¡õ Applicable     ¡Ì N/A
  ¡õ Applicable ¡Ì N/A
  No such case during the reporting period.
  ¡õ Applicable ¡Ì N/A
  The Company had no material litigation or arbitration during the current reporting period.
  ¡õ Applicable ¡Ì N/A
  No such case during the reporting period.
  ¡õ Applicable    ¡Ì N/A
     ¡õ Applicable ¡Ì N/A
  No such case during the reporting period.
  ¡õ Applicable ¡Ì N/A
  No such case during the reporting period.
  ¡õ Applicable ¡Ì N/A
  No such case during the reporting period.
  ¡õ Applicable ¡Ì N/A
  No such case during the reporting period.
  ¡õ Applicable ¡Ì N/A
  No such case during the reporting period.
  ¡õ Applicable ¡Ì N/A
There is no deposit, loan, credit or other financial business between the financial company controlled by the
Company and its related parties.
  ¡õ Applicable ¡Ì N/A
  The company has no other significant related transactions during the reporting period.
£¨1£©Trusteeship
¡õ Applicable ¡Ì N/A
No such case in the reporting period.
£¨2£©Contracting
¡õ Applicable ¡Ì N/A
No such case in the reporting period.
£¨3£©Leasing
¡õ Applicable ¡Ì N/A
No such case in the reporting period.
¡õ Applicable ¡Ì N/A
No such case in the reporting period.
£¨1£©Entrusted financial management
¡Ì Applicable ¡õ N/A
Overview of entrusted wealth management during the reporting period
                                                                                              Unit: CNY10, 000
                                                                                                Amount of
                                                                                               impairment
                                                                             Amount not
                                                             Outstanding                      accrued owing
 Product types      Source of funds       Amount                            collected after
                                                              balance                           to overdue
                                                                             the due date
                                                                                                 financial
                                                                                               management
 Bank wealth
 management         Private funds           1,192,000             800,000                 0                 0
 products
 Trust wealth
 management         Private funds          208,285.29              27,500         7,269.55           6,512.85
 products
 Total                                   1,400,285.29             827,500         7,269.55           6,512.85
Specific circumstances of high-risk entrusted wealth management with a single large amount or low security and
low liquidity
  ¡Ì Applicable ¡õ N/A
                                                                                                                                                     Unit: CNY10, 000
                                                                   Ref
         Typ
                                                                   ere
         e of                                     Inv                                  Actual        The actual                  Whether                  An overview
                                                         Remun     nce                                                                        Is there
         Tru           A                          est                     Expect     profit and     recovery of   Amount of       it has                     of the
                                     Star                eration   ann                                                                           any
Truste   ste           m    Sourc           End   me                        ed          loss         profit and    provision       gone                   matter and
                Typ                    t                 determ    uali                                                                     entrusted
  e       e            o     es of          dat    nt                     earnin      amount        loss during       for        through                  an index of
                 e                   dat                 ination   zed                                                                       financial
name     (or           u    funds            e    dire                     gs (if    during the         the       impairme         legal                    related
                                      e                  metho     rate                                                                     plan in the
         Tru           nt                         ctio                     any)      reporting       reporting    nt (if any)   procedure                  queries (if
                                                            d       of                                                                         future
         ste                                       n                                   period          period                        s                        any)
                                                                    ret
          e)
                                                                   urn
                CITI                                                                                                                                        The trust
                  C                                                                                                                                         financing
                Tru                                                                                                                                       expires, and
                st •                                                                                                                                       part of the
                Jiah                                                                                                                                        principal
                  e    6,                   Nov                                                                                                           and income
                                     Ma
                No.    5                    em    Deb                                                                                                          are
                            Privat    y
CITIC    Tru    118    1                    ber    t               7.6    1,085.                                                                            deferred.
                              e      29,                  Cash                           2,201.31    1341.14       6,512.85        Yes         Yes
Trust     st    Eve    2.                   29,   ass              0%       97                                                                            For details,
                            funds    202
                rgra   8                    202   ets                                                                                                     please refer
                nde    5                     1                                                                                                                to the
                Gui                                                                                                                                       "Announce
                yan                                                                                                                                       ment on the
                  g                                                                                                                                         Deferred
                 Ne                                                                                                                                       Payment of
                 w                                                                                                                                        the Expired
              Wo                                                                                                          Principal
              rld                                                                                                       and Income
              Acc                                                                                                       of Entrusted
              um                                                                                                           Wealth
              ulat                                                                                                      Manageme
              ive                                                                                                             nt"
              Fun                                                                                                       disclosed by
               d                                                                                                             the
              Tru                                                                                                       company on
               st                                                                                                        December
              Pla                                                                                                          4, 2021
               n                                                                                                         (Announce
                                                                                                                          ment No.
              AVI                                                                                                        The trust
               C                                                                                                         financing
              Tru                                                                                                         extends,
              st •                                                                                                      and part of
              Tia                                                                                                            the
                                   Feb   Feb
              nxi    1                                                                                                    principal
                                   rua   rua   Equ
               n     0,   Privat                                                                                        and income
AVIC    Tru                         ry    ry    ity          8.5
              Bay    0      e                         Cash         1,700        1,567.26   691.64   5,000   Yes   Yes        are
Trust    st                        26,   26,   ass           0%
              Are    0    funds                                                                                          deferred.
                a    0                                                                                                  For details,
              Ren                                                                                                       please refer
              ew                                                                                                           to the
               al                                                                                                       "Announce
              No.                                                                                                       ment on the
              Coll                                                                                                      Payment of
              ecti                                                                                                      the Expired
               ve                                                                                                         Principal
              Fun                                                                                                       and Income
                d                                                                                                       of Entrusted
              Tru                                                                                                          Wealth
                st                                                                                                      Manageme
               Pla                                                                                                           nt"
                n                                                                                                       disclosed by
              Pha                                                                                                            the
              se 1                                                                                                      company on
                                                                                                                          March 18,
                                                                                                                         (Announce
                                                                                                                          ment No.
              AVI                                                                                                        The trust
               C                                                                                                         financing
              Tru                                                                                                         extends,
              st •                                                                                                      and part of
              Tia    1             Mar   Mar                                                                                 the
        AVI                                    Equ
              nxi    0,   Privat    ch    ch                                                                              principal
AVIC     C                                      ity          8.5
               n     0      e       1,    1,          Cash         1,700        1,560.27   684.66   5,000   Yes   Yes   and income
Trust   Tru                                    ass           0%
              Bay    0    funds    202   202                                                                                 are
         st                                    ets
              Are    0               1     3                                                                             deferred.
               a                                                                                                        For details,
              Ren                                                                                                       please refer
              ew                                                                                                           to the
               al                                                                                                       "Announce
                No.                                                                                                              ment on the
                Coll                                                                                                             Payment of
                ecti                                                                                                             the Expired
                 ve                                                                                                                Principal
                Fun                                                                                                              and Income
                  d                                                                                                              of Entrusted
                Tru                                                                                                                 Wealth
                  st                                                                                                             Manageme
                 Pla                                                                                                                  nt"
                  n                                                                                                              disclosed by
                Pha                                                                                                                   the
                se 2                                                                                                             company on
                                                                                                                                   March 18,
                                                                                                                                  (Announce
                                                                                                                                   ment No.
        Total                                                               4,485.
Entrust finance expected to be failed to recover principle or other situation leading to impairment
¡Ì Applicable ¡õ N/A
The ¡°CITIC Trust Jiahe No. 118 Evergrande Guiyang New World Collective Fund Trust Plan¡± purchased by the company extended. Based on the principle of
prudence, the company handles changes in fair value. The amount of impairment accrued during the reporting period was CNY 28.8718 million, and the amount of
impairment accrued by the end of the reporting period was CNY 65.1285 million.
The ¡°AVIC Trust • Tianxin Bay Area Renewal No. 10 Collective Fund Trust Plan Phase 1¡±, ¡°AVIC Trust • Tianxin Bay Area Renewal No. 10 Collective Fund Trust Plan
Phase 2¡± purchased by the company extended. Based on the principle of prudence, the company handles changes in fair value. The amount of impairment accrued
during the reporting period was CNY 50 million, and the amount of impairment accrued by the end of the reporting period was CNY 100 million.
£¨2£©Entrusted loan management
¡õ Applicable ¡Ì N/A
No such case during the reporting period
¡õ Applicable ¡Ì N/A
No such case during the reporting period
¡Ì Applicable    ¡õ N/A
Fund (Limited Partnership) by investing in Jiangsu Xinghe Investment Management Co., Ltd. and Nanjing
Xingnahe Venture Capital Partnership (Limited Partnership). Xingnahe Partnership and Jiequan Fund have
completed the Raised and completed the filing with the Asset Management Association of China, the filing codes
are SCF515 and SCL005 respectively. For details, please refer to the "Announcement on Cooperative Investment
with Professional Investment Institutions" (Announcement No.: 2017-021) and "Progress Announcement on
Cooperative Investment with Professional Investment Institutions" disclosed by the company on December 30,
subscribed for the partnership shares of Suzhou Danqing Phase II Innovative Pharmaceutical Industry Investment
Partnership (Limited Partnership). Danqing Phase II has completed the fundraising and completed the filing with
the China Securities Investment Fund Industry Association, the filing code is SED720. For details, please refer to
the "Announcement on Cooperative Investment with Professional Investment Institutions" (Announcement No.:
(Announcement No.: 2018-030), "Announcement on the Progress of Cooperative Investment with Professional
Investment Institutions" (Announcement No.: 2019-004).
(Shanghai) Investment Center (Limited Partnership). Panmao Investment has completed the fundraising and
completed the filing with the Asset Management Association of China, the filing code is SED720. For details,
please refer to the "Announcement on Cooperative Investment with Professional Investment Institutions"
disclosed by the company on June 22, 2018 (announcement number: 2018-025).
Hongyun Health Industry Investment Partnership (Limited Partnership), Suqian Yida Industrial Venture Capital
Fund (Limited Partnership), and Hunan Huaye Tiancheng Venture Capital Partnership (Limited Partnership). Zijin
Hongyun, Suqian Yida and Huaye Tiancheng have completed the fundraising and completed the filing with the
Asset Management Association of China. The filing codes are SGA436, SGV275 and SGW727 respectively. For
details, please refer to the "Announcement on Cooperative Investment with Professional Investment
Institutions" (Announcement No.: 2019-002) disclosed by the company on March 28, 2019, and "About
Participating in Investment in Suqian Yida Industrial Venture Capital" disclosed on April 30, 2019 Announcement
on Funds and Related Party Transactions¡± (Announcement No.: 2019-012), and ¡°Announcement on Subscription
of Hunan Huaye Tiancheng Venture Capital Fund¡± disclosed on September 6, 2019 (Announcement No.:
Xingnaheyuan Venture Capital Partnership (Limited Partnership) by subscribing to Nanjing Xingnahai Equity
Investment Partnership (Limited Partnership), and Jiangsu Yanghe Investment Management Co., Ltd. subscribes
for Suzhou The partnership shares of Zhongxing Fushuzhi Venture Capital Partnership (Limited Partnership) and
Nanjing Hongyang Equity Investment Partnership (Limited Partnership), Xingna Heyuan, Suzhou Xingfu and
Nanjing Hongyang have completed the fundraising and invested in China Securities Investment Fund The
industry association has completed the filing, and the filing codes are SLR472, SNC111, and SNF086. For details,
please refer to the "Announcement on Cooperative Investment with Professional Investment Institutions"
(Announcement No.: 2020-031) disclosed by the company on August 12, 2020, and the "About Subscription of
Suzhou Zhongxin Fushuzhi Entrepreneurship" disclosed on October 19, 2020 Investment Fund Announcement
(Announcement No.: 2020-035), and the Announcement on Subscription of Nanjing Hongyang Equity Investment
Fund (Announcement No.: 2020-038) disclosed on November 4, 2020. Suzhou Xingfu and Nanjing Hongyang
completed the fundraising scale of CNY 1.5 billion and CNY 230 million respectively.
Huaye Tiancheng Phase IV Venture Capital Partnership (Limited Partnership), Xiamen Yuanfeng Equity Investment
Fund Partnership (Limited Partnership), and Shanghai Yunfeng Xincheng Investment Center (Limited Partnership).
Huaye Phase IV, Xiamen Yuanfeng and Yunfeng Xincheng have completed the filing with the Asset Management
Association of China. The filing codes are SQB769, SLX842 and SH1000 respectively. For details, please refer to
the "Announcement on Subscribing Zhuhai Hengqin Huaye Tiancheng Phase IV Venture Capital Fund" disclosed
by the company on February 10, 2021 (Announcement No.: 2021-007), and the "About Subscription to Xiamen"
disclosed on April 13, 2021 Yuanfeng Equity Investment Fund Announcement (Announcement No.: 2021-012),
and the Announcement on Cooperative Investment with Professional Investment Institutions disclosed on
August 6, 2021 (Announcement No.: 2021-033). Huaye Phase IV and Xiamen Yuanfeng completed the fundraising
scale of CNY 1.899 billion and CNY 20 billion respectively.
Management Co., Ltd. subscribe for the partnership shares of Nanjing Huatai Yanghe Equity Investment Mother
Fund (limited partnership). Huatai Yanghe Mother Fund has completed the filing in Asset Management
Association of China with the filing code of SXY168. For details, please refer to the "Announcement on the
establishment of wholly-owned subsidiaries and Cooperative Investment with Professional Investment
Institutions" disclosed by the company on August 10, 2022 (Announcement No.: 2022-017), and the "Progress
Announcement on the establishment of wholly-owned subsidiaries and Cooperative Investment with
Professional Investment Institutions" disclosed by the company on September 28, 2022 (Announcement No.:
Cooperative Investment with Professional Investment Institutions" disclosed by the company on December 17,
¡õ Applicable ¡Ì N/A
                  Section VII Changes in Shares and Shareholders
I¡¢Changes in shares
                                                                                                   Unit£ºshare
                          Before the change            Changes in the period (+, -)         After the change
                                                                   Share
                                                                 transferr
                                               New
                                                           Bonus    ed            Sub-tota
                           Shares    Ratio    Shares                       Others          Shares    Ratio
                                                           issue   from              l
                                              Issued
                                                                  capital
                                                                  reserve
conditional restriction(s) 986                                            ,854     ,854     32
State-owned corporate
holdings                  986                                             ,854     ,854     32
   Including: held by     249,480,                                        -249,480 -249,480 0
domestic corporates       000                                             ,000     ,000
       held by domestic 4,277,98                                          1,414,14 1,414,14 5,692,1
natural persons         6                                                 6        6        32
Including: held by
overseas corporates
         held by
overseas natural person
restriction               0,014                                           854      854      95,868
shares                    0,014                                           854      854      95,868
foreign shares
listed overseas
Reason for share changes
¡Ì Applicable ¡õ N/A
Changes in shares were mainly due to changes in the shares locked by the current and outgoing directors,
supervisors and senior managers of the company.
Approval for changes in share capital
¡õ Applicable ¡Ì N/A
Transfer for changes in share capital
¡õ Applicable ¡Ì N/A
Effects of changes in share capital on the basic earnings per share ("EPS"), diluted EPS, net assets per share
attributable to common shareholders of the Company, and other financial indexes over the last year and last
period
¡õ Applicable ¡Ì N/A
Other contents that the Company considers necessary or required by the securities regulatory authorities to
disclose
¡õ Applicable ¡Ì N/A
¡Ì Applicable ¡õ N/A
                                                                                                    Unit£ºshare
                      Opening                                       Closing         Note for
    Name of                         Increased in    Vested in                                      Date of
                     restricted                                    restricted      restricted
  shareholder                      current period current period                                  unlocking
                       shares                                        shares          shares
                                                                                                Sales
                                                                                                restrictions
                                                                                                were not lifted
                                                                                                during the
                                                                                                reporting
                                                                                                period. On
                                                                                                March 7, 2023,
                                                                               Lock in upon     25% of the
Zhou Xinhu             2,158,718         719,573               0     2,878,291 director's       shares held
                                                                               departure        were lifted
                                                                                                from
                                                                                                restrictions on
                                                                                                sale, and the
                                                                                                remaining
                                                                                                shares that
                                                                                                have not been
                                                                                                lifted from
                                                                                              restrictions on
                                                                                              sale will be
                                                                                              lifted in
                                                                                              accordance
                                                                                              with relevant
                                                                                              regulations.
                                                                                              Sales
                                                                                              restrictions
                                                                                              were not lifted
                                                                                              during the
                                                                                              reporting
                                                                                              period. On
                                                                                              March 30,
                                                                                              the shares
                                                                                              held were
                                                                            Lock in upon      lifted from
Cong Xuenian           2,083,718      694,573              0      2,778,291 director's        restrictions on
                                                                            departure         sale, and the
                                                                                              remaining
                                                                                              shares that
                                                                                              have not been
                                                                                              lifted from
                                                                                              restrictions on
                                                                                              sale will be
                                                                                              lifted in
                                                                                              accordance
                                                                                              with relevant
                                                                                              regulations.
                                                                               Previously
Jiangsu Blue                                                                   issued shares
Alliance Co., Ltd                                                              before initial
                                                                               public offering
Total                253,722,436    1,414,146    249,480,000      5,656,582          --              --
II.Issuance and Listing of Securities
¡õ Applicable ¡Ì N/A
Liabilities
¡õ Applicable    ¡Ì N/A
¡õ Applicable    ¡Ì N/A
III¡¢Particulars about the Shareholders and Actual Controller
                                                                                                        Unit£ºshare
                                                                                       The total
                                                                                       number of
                                                        The total                      preference
                           Total number
                                                        number of                      shareholders
                           of common
                                                        preferred                      whose voting
Total number               shareholders
                                                        shareholders                   rights have
of common                  at the end of
                                                        whose voting                   been restored
shareholders               the previous
at the end of              month prior to
                                                        been restored                  the previous
the reporting              the annual
                                                        at the end of                  month before
period                     report
                                                        the reporting                  the disclosure
                           disclosure
                                                        period (if any)                date of the
                           date
                                                        (see Note 8)                   annual report
                                                                                       (if any) (see
                                                                                       Note 8)
                Shareholders who hold more than 5% of total shares or the top 10 shareholders
                                                           Increa                         Pledge, marking or
                                                           se/de                               freezing
                                                  Total     creas Numbe
                                   Share-h     common         e    r of
                                                                          Number of
   Name of          Nature of       olding    shares held durin restrict
                                                                         unrestricted
 Shareholders     shareholders     percent   at the end of g the    ed
                                                                         shares held      Status        Amount
                                   age (%)   the reporting report shares
                                                 period      ing   held
                                                            perio
                                                              d
Jiangsu Yanghe State-owned
Group Co., Ltd. legal person
Jiangsu Blue       Domestic
Alliance Co., Ltd. Non-state-own
                ed legal person
Shanghai Haiyan
Logistics       State-owned
Development legal person
Co., Ltd.
Shanghai
Jieqiang
                State-owned
Tobacco Sugar &                    3.96%   59,744,099 0         0 59,744,099
                legal person
Wine (Group)
Co., Ltd.
Bank of China
Limited - China
Merchants CSI
Baijiu Index                                            -6450
                Others             2.91%   43,787,041           0 43,787,041
Classified                                              418
Securities
Investment
Fund
Hong Kong
Securities
                Overseas legal                          39407
Clearing                           2.48%   37,367,730           0 37,367,730
                persons                                 57
Company
Limited
Bank of China
Limited - E Fund
Blue Chip
                                                        -4500
Selected Mixed Others              2.20%   33,200,000           0 33,200,000
Securities
Investment
Fund
China Securities
                 Domestic
Finance
                 Non-state-own     0.92%   13,790,044 0         0 13,790,044
Corporation
                 ed legal person
Limited
Bank of China
Limited - E Fund
Premium
Selected Hybrid Others             0.72%   10,820,000           0 10,820,000
Securities
Investment
Fund
Yanghe Distillery
Co., LTD£­The Others                0.61%    9,118,384           0   9,118,384
first phase of
the core
backbone
shareholding
plan
Strategic investors or general
legal persons becoming the top
placement of new shares (if any)
(see Note 3)
Explanation of the related
relationship or concerted action NO
of the above shareholders
Explanation of the
above-mentioned shareholders
involving entrusted/entrusted     NO
voting rights and abstention
from voting rights
Special instructions for the
existence of a special repurchase
account among the top 10          NO
shareholders (if any) (see Note
                     Shareholdings of the top 10 shareholders without restrictions on sales
                                   Number of unrestricted shares held at the end of           Type of shares
     Name of shareholders
                                               the reporting period                      Type         Amount
                                                                                     RMB
Jiangsu Yanghe Group Co., Ltd.                                           514,858,939 common          514,858,939
                                                                                     shares
                                                                                     RMB
Jiangsu Blue Alliance Co., Ltd                                           264,991,926 common          264,991,926
                                                                                     shares
                                                                                     RMB
Shanghai Haiyan Logistics
Development Co., Ltd.
                                                                                     shares
                                                                                     RMB
Shanghai Jieqiang Tobacco Sugar
& Wine (Group) Co., Ltd.
                                                                                     shares
Bank of China Limited£­China                                                          RMB
Merchants CSI Liquor Index                                                           common
Graded Securities Investment                                                         shares
Fund
                                                                                     RMB
Hong Kong Securities Clearing
Co., Ltd
                                                                                     shares
Bank of China Limited£­E Fund                                                       RMB
Blue Chip Selected Mixed                                                33,200,000 common      33,200,000
Securities Investment Fund                                                         shares
                                                                                   RMB
China Securities Finance Co., LTD                                       13,790,044 common      13,790,044
                                                                                   shares
Bank of China Limited£­E Fund                                                       RMB
Premium Selected Hybrid                                                 10,820,000 common      10,820,000
Securities Investment Fund                                                         shares
Yanghe Distillery Co., LTD£­The                                                     RMB
first phase of the core backbone                                         9,118,384 common        9,118,384
shareholding plan                                                                  shares
Description of the connected
relationship or concerted action
among the top 10 shareholders
of unrestricted tradable shares,
                                 NO
and between the top 10
shareholders of unrestricted
tradable shares and the top 10
shareholders
Explanation on the participation
of the top 10 ordinary
shareholders in the securities    NO
margin trading (if any) (see Note
Any of the Company¡¯s top 10 common shareholders or top 10 non-restricted common shareholders conducted
any agreed buy-back in the reporting period?
¡õ Yes ¡Ì No
No such case during the current reporting period.
Nature of controlling shareholder: local state-owned holding
Type of controlling shareholder: Corporation
                                Legal
   Name of Controlling                            Date of
                           representative/                       Organization Code      Business scope
      Shareholder                              establishment
                           People in charge
                                                                                  Sales of brewing
                                                                                  machinery and
                                                                                  equipment, various raw
Jiangsu Yanghe Group
                          Yang Weiguo         8 May, 1997      91321300142334989Y and auxiliary materials,
Co., LTD
                                                                                  equipment and parts
                                                                                  required for wine
                                                                                  export and import
                                                                                     production, industrial
                                                                                     investment; municipal
                                                                                     public works, housing
                                                                                     construction projects,
                                                                                     tourism and cultural
                                                                                     industry investment.
Change of controlling shareholder during the reporting period
¡õ Applicable ¡Ì N/A
The Company's controlling shareholder has not changed during the reporting period.
Nature of actual controller: local state-owned assets management organization
Actual controller type: Corporation
                               Legal
                          representative/    Date of
Name of Actual Controller                                     Organization Code        Business scope
                             People in    establishment
                              charge
                                                                                  On behalf of Suqian
                                                                                  Municipal people's
                                                                                  Government to execute the
Suqian SASAC(State-owned                                                          responsibilities of
Assets Supervision                         October 22,                            state-owned enterprise
                         Zhao Xiaoli                         N/A
and Administration                         2005                                   investors, implementing
Commission)                                                                       the supervision and
                                                                                  management of
                                                                                  state-owned assets and
                                                                                  state-owned enterprises.
The equity of other
domestic and foreign listed
companies controlled by N/A
the actual controller during
the reporting period
Change of the actual controller during the reporting period
¡õ Applicable ¡Ì N/A
No such change during the reporting period.
The ownership and controlling relationship between the actual controller of the Company and the Company is
detailed as follows:
The actual controller controls the company through trust or other asset management methods
¡õ Applicable ¡Ì N/A
Cumulative Pledged Shares Account for 80% of the Company's Shares Held by Them
¡õ Applicable   ¡Ì N/A
¡Ì Applicable   ¡õ N/A
                                    Legal
                                                     Date of
  Name of Actual Controller    representative/                  Organization Code       Business scope
                                                  establishment
                               People in charge
                                                                                    Sales of daily
                                                                                    necessities,
                                                                                    biotechnology research
                                                                                    and development,
                                                                                    furniture production,
Jiangsu Blue Alliance Co., LTD Cong Xuenian       28 July, 2016   CNY 105.6 million
                                                                                    business management
                                                                                    consulting services,
                                                                                    fruit tree planting,
                                                                                    pre-packaged food
                                                                                    sales.
Restructurer or Other Committing Parties
¡õ Applicable   ¡Ì N/A
IV. The specific implementation of share repurchases during the reporting period
The implementation progress of share repurchases
¡õ Applicable ¡Ì N/A
The implementation progress of reducing repurchased shares by centralized bidding
¡õ Applicable ¡Ì N/A
                                Section VIII Preferred Shares
¡õ Applicable ¡Ì N/A
There are no preferred shares in the company during the reporting period.
                     Section IX Bonds
¡õ Applicable ¡Ì N/A
                                 Section X Financial Report
I. Auditor¡¯s report
Type of audit report                                  Standard and unqualified opinion
Date of signature                                     24 April 2023
Name of Audit                                         Suya Jincheng CPA LLP.
No. of auditor¡¯s report                               Suya Audit [2023] No.736
Names of auditors                                     Li Laimin, Li Yan
                                          Auditor¡¯s Report
To all the shareholders of Jiangsu Yanghe Distillery Co., Ltd.:
    Opinion
      We have audited the financial statements of Jiangsu Yanghe Distillery Co., Ltd. (hereinafter
referred to as the ¡°Company¡±), which comprise the consolidated balance sheet and balance
sheet as at 31 December 2022, consolidated income statement and income statement,
consolidated cash flow statement and 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.
Please refer to note 28, ¡°Accounting Policies¡± in Note¢õ, "Significant Accounting Policies and Estimates" and
note 38 in Note ¢÷, "main Items of the Consolidated Financial Statements".
Key audit matters                    How our audit addressed the key audit matter
The Company¡¯s specific condition of     Our procedures in relation to revenue recognition included:
revenue recognition is that revenue
is recognized after customer            (1) Understood, tested and evaluated the effectiveness of internal
acceptance based on transfer of         control of sales and cash receipts cycle designed and executed by the
control. In 2022, the Company¡¯s         management.
annual operating revenue was
                                        (2) Through sampling inspection of the sales contract, identified the
CNY30.11 billion. The amount
substantial and operating revenue is    contractual rights and obligations, evaluated the point of time of
an important component of income        performance obligations and evaluated whether the judgment of the
statement. Therefore, we identified     transfer of control related to revenue recognition conforms to the
operating revenue as a key audit        Company's accounting policies and Accounting Standards for Business
matter.
                                        Enterprises.
                                        (3) Judged whether there is an abnormal fluctuation of revenue in the
                                        reporting period with the analytic review of revenue and gross profit
                                        margin in combination with product category.
                                        (4) Sampling inspection of supporting documents related to revenue
                                        recognition including sales contracts or orders, invoices, delivery lists or
                                        receiving reports, shipping lists and bank slips.
                                        (5) Implemented the external confirmation of selected major
                                        franchisers and inspected the payback of account receivables after the
                                        reporting period in combination with audit of accounts receivable and
                                        contract liabilities.
                                        (6) Sampling inspection of calculation and accounting treatment of
                                        sales discount and sales allowance.
                                        (7) Chose samples from sales revenue records before and after the
                                        balance sheet date, inspected related supporting documents and
                                        evaluated whether the revenue recorded in the appropriate accounting
                                        period.
Please refer to note 11, ¡°Accounting Policies¡± in Note ¢õ, "Significant Accounting Policies and Estimates" and
note 8 in Note ¢÷, "main Items of the Consolidated Financial Statements".
Key audit matters                       How our audit addressed the key audit matter
As at 31 December 2022, the book        Our procedures in relation to existence, valuation, allocation of
value of inventory is CNY 17.73         inventories included:
billion, accounting for 26.09% of the
                                        (1) Understood, tested and evaluated the effectiveness of management's
total assets and 34.42% of all
                                        design and implementation of inventory-related internal control.
current assets. The book value of
                                        (2) Carried out the inventory analysis review procedure.
the inventories at year end is
                                        (3) Supervised the inventory at the end of the period.
relatively large and accounts for a
relatively large proportion of the      (4) Sample check of production cost calculation table and other cost
total assets at the year end.           accounting data, and conducted valuation test on inventory, and
Therefore, the existence, valuation     evaluated the accuracy of closing balance of inventory.
and allocation of inventories are       (5) Obtained the calculation table of provision for stock obsolescence,
identified as a key audit matter.       conduct the inventory impairment test, reviewed the inventory
                                        impairment test process, and checked whether the provision for stock
                                        obsolescence is made sufficiently.
     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 auditors 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.
    (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,
including the disclosures, 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.
Suya Jincheng CPA LLP
                                                          CPA of China: Li Laimin
                                                                       CPA of China: Li Yan
  Nanjing, China                                                            24 April 2023
II. Financial statements
                                      Consolidated balance sheet
Prepared by: Jiangsu Yanghe Distillery Co., Ltd.
                                      As at 31 December 2022
                                                                                                      Unit: CNY
                  Item                      On December 31st 2022                    On January 1st 2022
Current assets:
  Cash and bank balances                              24,375,449,432.33                       20,955,831,010.12
  Settlement reserves
  Lending funds
  Financial assets held for trading                    7,998,150,119.16                       10,953,894,328.01
  Derivative financial assets
  Notes receivables                                      526,004,730.00                          663,849,328.28
  Accounts receivables                                      45,142,892.78                          1,247,949.91
  Account receivables financing                          623,098,310.00                          222,793,060.40
  Prepayment                                                11,019,093.60                          9,408,768.12
  Premiums receivable
  Reinsurance accounts receivable
  Reinsurance contract reserve
  Other receivables                                         74,362,342.41                         11,520,008.85
  Including: Interests receivable
  Dividends receivable
  Buying back the sale of financial
assets
  Inventories                                         17,729,258,966.54                       16,803,093,441.81
  Contract assets
  Assets held for sale
  Non-current assets due within one
year
  Other current assets                                   129,687,990.26                          143,005,191.58
Total current assets                                  51,512,173,877.08                       49,764,643,087.08
Non-current assets:
  Disbursement of loans and
advances
  Investment in debt instruments
  Investment in other debt
instruments
  Long-term receivables
  Long-term equity investments                   32,979,630.21       32,743,397.31
  Investment in other equity
instruments
  Other non-current financial assets        6,148,634,160.78      7,635,942,149.06
  Investment property
  Fixed assets                              5,794,773,069.53      6,276,466,308.05
  Construction in progress                    757,145,492.90        525,497,000.26
  Productive biological assets
  Oil and gas assets
  Right-of-use asset                             34,115,602.27       19,610,113.75
  Intangible assets                         1,714,381,075.43      1,679,597,933.06
  Development expenses
  Goodwill                                    276,001,989.95        276,001,989.95
  Long-term deferred expenses                    12,078,509.76       16,104,679.68
  Deferred tax assets                       1,498,116,524.68      1,385,956,896.18
  Other non-current assets                    183,847,201.84        186,140,639.38
Total non-current assets                   16,452,073,257.35     18,034,061,106.68
Total assets                               67,964,247,134.43     67,798,704,193.76
Current liabilities:
  Short-term loans
  Borrowings from the central bank
  Loans from other banks
  Financial liabilities held for trading
  Derivative financial liabilities
  Notes payable                                                      30,000,000.00
  Accounts payables                         1,376,209,527.01      1,444,175,262.08
  Advance from customer
  Contract liabilities                     13,741,547,677.99     15,804,521,430.17
  Financial assets sold for
repurchase
  Customer brokerage deposits
  Securities underwriting brokerage
deposits
  Receivings from vicariously sold
securities
  Employee benefits payable                   482,991,738.73        536,717,129.16
  Taxes payable                             1,136,695,805.18      3,061,385,171.71
  Other payables                            1,854,922,517.23      1,808,838,882.26
  Including: Interests payable
  Dividends payable
  Handling charges and commissions
payable
  Reinsurance accounts payables
  Liabilities held for sale
  Non-current liabilities due within
one year
  Other current liabilities                             1,312,248,150.31      2,039,264,937.72
Total current liabilities                              19,928,299,823.20     24,733,308,659.87
Non-current liabilities:
  Insurance contract reserves
  Long-term loans                                                                    36,360.00
  Bonds payable
  Including: Preference shares
  Perpetual bonds
  Lease liabilities                                           3,715,300.93       10,729,824.19
  Long-term payables                                      196,459,834.53        196,694,194.53
  Long-term payroll payables
  Accrued liabilities
  Deferred income                                            92,277,166.67       77,242,500.00
  Deferred tax liabilities                                219,046,405.35        299,382,397.38
  Other non-current liabilities
  Total non-current liabilities                           511,498,707.48        584,085,276.10
Total liabilities                                      20,439,798,530.68     25,317,393,935.97
Shareholders' equity
  Share capital                                         1,506,988,000.00      1,506,988,000.00
  Other equity instruments
  Including: preference shares
  Perpetual bonds
  Capital reserves                                        904,650,678.91        782,236,370.14
  Less: treasury stock                                       56,278,680.79       56,278,680.79
  Other comprehensive income                                  1,981,678.95       -5,843,990.29
  Special reserves
  Surplus reserves                                        753,494,000.00        753,494,000.00
  General risk reserve
  Undistributed profits                                44,364,111,297.61     39,505,614,090.53
Total equity attributable to owners of
the parent company
  Non-controlling interests                                  49,501,629.07       -4,899,531.80
Total owners' equity                                   47,524,448,603.75     42,481,310,257.79
Total liabilities and owners' equity                   67,964,247,134.43     67,798,704,193.76
Legal representative: Zhang Liandong
Person in charge of accounting affairs: Yin Qiuming
Person in charge of accounting department: Zhao Qike
                                Balance sheet of parent company
                                      As at 31 December 2022
                                                                                              Unit: CNY
                  Item                       On December 31st 2022           On January 1st 2022
Current assets:
  Cash and bank balances                               23,231,793,606.79              19,908,620,924.68
  Financial assets held for trading                     5,084,342,428.09               8,090,978,413.80
  Derivative financial assets
  Notes receivables                                       505,704,730.00                 601,826,328.28
  Accounts receivables                                  1,204,161,788.24                 424,595,684.45
  Account receivables financing                           394,478,350.00                  10,760,000.00
  Prepayment                                                 51,616,255.75                76,366,400.75
  Other receivables                                     1,068,086,225.72               2,211,826,118.30
  Including: Interests receivable
  Dividends receivable                                                                 1,812,736,853.55
  Inventories                                          11,550,551,319.29              11,289,319,403.65
  Contract assets
  Assets held for sale
  Non-current assets due within one
year
  Other current assets                                       40,571,905.54
Total current assets                                   43,131,306,609.42              42,614,293,273.91
Non-current assets:
  Investment in debt instruments
  Investment in other debt
instruments
  Long-term receivables
  Long-term equity investments                          8,180,436,290.49               7,994,556,728.17
  Investment in other equity
instruments
  Other non-current financial assets                    2,427,355,825.21               3,598,974,759.45
  Investment property
  Fixed assets                                          3,693,258,788.76               3,990,650,393.37
  Construction in progress                                251,750,887.23                 183,491,743.37
  Productive biological assets
  Oil and gas assets
  Right-of-use asset                              1,161,853.86        1,431,936.19
  Intangible assets                         1,141,322,601.26      1,181,546,201.25
  Development expenses
  Goodwill
  Long-term deferred expenses                    12,078,509.76       16,104,679.68
  Deferred tax assets                            24,212,971.55       12,941,142.63
  Other non-current assets                    163,216,415.72        164,332,861.20
Total Non-current Assets                   15,894,794,143.84     17,144,030,445.31
Total Assets                               59,026,100,753.26     59,758,323,719.22
Current liabilities:
  Short-term loans
  Financial liabilities held for trading
  Derivative financial liabilities
  Notes payable
  Accounts payables                         1,041,176,754.20        985,248,728.21
  Advance from customer
  Contract liabilities                     17,485,085,741.24     21,199,823,390.34
  Employee benefits payable
  Taxes payable                               377,457,671.93        643,076,598.44
  Other payables                            3,762,682,905.35      1,842,392,622.94
  Including: Interests payable
  Dividends payable
  Liabilities held for sale
  Non-current liabilities due within
one year
  Other current liabilities                 2,688,940,410.36      3,300,680,288.13
Total current liabilities                  25,356,048,423.10     27,971,663,485.89
Non-current liabilities:
  Long-term loans                                                        36,360.00
  Bonds payable
  Including£ºpreference shares
  Perpetual bonds
  Lease liabilities                                 656,135.70          820,816.63
  Long-term payables                          143,950,749.73        144,104,709.73
  Long-term payroll payables
  Provisions
  Deferred income                                 4,791,666.67        5,000,000.00
  Deferred tax liabilities                    135,357,661.52        248,825,948.76
  Other non-current liabilities
Total non-current liabilities                 284,756,213.62        398,787,835.12
Total liabilities                          25,640,804,636.72     28,370,451,321.01
Owners' equity (or shareholders'
equity)
  Share capital                                          1,506,988,000.00            1,506,988,000.00
  Other equity instruments
  Including: preference shares
  Perpetual bonds
  Capital reserves                                       1,504,746,609.71            1,382,332,300.94
  Less: treasury stock                                        56,278,680.79               56,278,680.79
  Other comprehensive income
  Special reserves
  Surplus reserves                                           753,494,000.00            753,494,000.00
  Undistributed profits                                 29,676,346,187.62           27,801,336,778.06
Total owners' equity                                    33,385,296,116.54           31,387,872,398.21
Total liabilities and owners' equity                    59,026,100,753.26           59,758,323,719.22
                                         Consolidated Income Statement
                                       For the year ended 31 December 2022
                                                                                              Unit: CNY
                  Item                           Year 2022                    Year 2021
  Including: Operating revenue                          30,104,896,186.70           25,350,178,204.45
  Interest income
  Earned premium
  Fee and commission income
  Including: cost of sales                               7,645,533,264.72            6,255,397,564.10
  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                                   4,388,312,404.88            4,147,982,128.12
  Selling and distribution expenses                      4,179,140,807.85            3,544,364,889.54
  General and administrative
expenses
  Research and Development
expenses
  Financial expenses                          -636,470,105.91      -399,145,509.96
  Including: Interest expenses                        694,325.50         603,755.58
  Interest income                               645,806,427.40       433,923,395.67
  Plus: Other income                               63,772,818.50     90,850,747.98
  Investment income ("-" for losses)            425,865,631.53       900,613,478.22
   Including: income from investment
in associates and joint ventures
  Disposal of financial instruments at
                                                -13,584,025.11
a mortised cost ("-" for losses)
  Foreign exchange gains ("-" for
losses)
  Net exposure to hedging
gains("-"for loss)
  Gains from the changes in fair
                                              -318,331,123.43      -721,212,806.81
values (¡°-¡° for losses)
  Losses from credit impairment ("-"
                                                    -746,085.96      12,627,487.28
for losses)
  Losses from asset impairment ("-"
                                                   -2,333,823.54     -7,175,293.45
for losses)
  Gains from disposal of assets ("-"
for losses)
  Plus: non-operating income                       25,586,332.71     20,718,383.00
  Less: non-operating expenses                     31,507,701.73     63,220,053.35
losses)
  Less: income tax expenses                   3,113,885,719.88     2,433,610,121.20
  Classification by operating
continuity
   Net profit from continuing operation
("-" for losses)
  Net profit from discontinued
operation ("-" for losses)
  Classification by owners
  Attributable to owners of the parent
company
   Attributable to non-controlling
interests
comprehensive income
   Net of tax from other
comprehensive income to the owner                   7,825,669.24       -630,741.36
of the parent company
  Other comprehensive income
cannot reclassified into the profit and
loss:
  Including: Changes in remeasured
defined benefit obligations
  Share in other comprehensive
income that cannot be classified into
profit and loss under equity method
  Changes in the fair value of other
equity instruments
  Fair value changes in enterprise's
own credit risk
  Others
  Other comprehensive income that
will be reclassified into the profit and                    7,825,669.24                        -630,741.36
loss
  Including: Share in other
comprehensive income that will be
classified into profit and loss under
equity method
  Net gain on debt instruments at fair
value through other comprehensive
income
  The amount of financial assets
reclassified into other comprehensive
income
  Other debt investment credit
impairment provision
  Cash flow hedging reserve
   Balance arising from the translation
of foreign currency financial                               7,672,165.66                        -641,034.99
statements
  Others
  Net of tax from other
comprehensive income to                                       35,418.46                           -3,225.33
non-controlling interests
   Total comprehensive income
attributable to owners of the parent                  9,385,658,098.32                     7,507,052,056.04
company
   Total comprehensive income
attributable to non-controlling                            11,601,160.87                       5,131,374.75
interests
  (1) Basic earnings per share                                    6.2251                             5.0141
  (2) Diluted earnings per share                                  6.2251                             5.0141
Where an enterprise is merged under the same control in the current period, the net profit realized by the
merged party before the merger is: CNY 0.00, and the net profit realized by the merged party in the previous
period is: CNY 0.00.
Legal representative: Zhang Liandong
Person in charge of accounting affairs: Yin Qiuming
Person in charge of accounting department: Zhao Qike
                            Income statement of parent company
                            For the year ended 31 December 2022
                                                                                             Unit: CNY
                  Item                        Year 2022                      Year 2021
  Less: Cost of sales                                   5,980,220,225.56            5,692,899,268.72
  Taxes and surcharges                                  3,545,342,923.46            3,418,193,216.10
  Selling and distribution expenses                           8,061,097.87                4,350,000.19
  General and administrative
expenses
  Research and Development
expenses
  Financial expenses                                      -599,586,816.00           -360,797,750.83
  Including: Interest expenses                                  68,917.37                   80,013.55
  Interest income                                          601,536,203.50             392,282,831.40
  Plus: Other income                                         12,864,187.98               35,355,375.48
  Investment income ("-" for losses)                    5,820,859,899.66            4,025,167,004.11
   Including: income from investment
in associates and joint ventures
  Disposal of financial instruments at
                                                           -11,790,752.31
a mortised cost ("-" for losses)
   Net exposure to hedging gains ("-
"for loss)
  Gains from the changes in fair
                                                          -453,873,148.94           -553,286,086.09
values (¡°-¡° for losses)
  Losses from credit impairment ("-"
                                                              -343,834.00                 1,133,079.28
for losses)
  Losses from asset impairment ("-"
                                                             -2,182,437.80               -6,671,650.31
for losses)
  Gains from disposal of assets ("-"
for losses)
  Plus: non-operating income                                  5,673,709.03                2,129,227.09
  Less: non-operating expenses                               17,026,160.31               26,922,264.60
Losses)
  Less: income tax expenses                                212,632,426.14             -24,278,888.68
   Net profit from continuing operation
("-" for losses)
  Net profit from discontinued
operation ("-" for losses)
comprehensive income
  Other comprehensive income
cannot reclassified into the profit and
loss:
  Including: Changes in remeasured
defined benefit obligations
  Other comprehensive income that
cannot be transferred under the equity
method
  Net gain on equity instrument at fair
value through other comprehensive
income
  Fair value changes in enterprise's
own credit risk
  Others
  Other comprehensive income that
will be reclassified into the profit and
loss
  Including: Share in other
comprehensive income that will be
classified into profit and loss under
equity method
  Net gain on debt instruments at fair
value through other comprehensive
income
  The amount of financial assets
reclassified into other comprehensive
income
  Other debt investment credit
impairment provision
  Cash flow hedging reserve
   Balance arising from the translation
of foreign currency financial
statements
  others
  (1)Basic earnings per share
  (2)Diluted earnings per share
                                     Consolidated Statement of Cash Flows
                                      For the year ended 31 December 2022
                                                                                           Unit: CNY
                 Item                           Year 2022                    Year 2021
  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 for the sale of
securities
  Refunds of taxes and surcharges                             3,060,026.48
  Cash received from other operating
activities
  Sub-total of cash inflows from
operating activities
  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
  A net increase in divested 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      12,905,501,412.00      8,805,477,883.69
  Cash paid for other operating
activities
Sub-total of cash outflows from
operating activities
Net cash flows from activities
operating
  Cash received from disposal of
investments
  Cash received from returns on
investments
   Net cash received from disposal of
fixed assets, intangible assets and              5,625,033.85        6,072,909.38
other long-term assets
  Net cash received from disposal of
subsidiaries and other business units
  Cash received from other investing
activities
Sub-total of cash inflows from
investing activities
   Cash paid to acquire and construct
fixed assets, intangible assets and          539,153,153.61        423,524,255.39
other long-term assets
  Cash paid for investments               13,131,786,086.81     25,910,110,341.89
  Net increase in pledge loans
  Net cash paid to acquire
subsidiaries and other business units
  Cash paid for other investing
activities
Sub-total of cash outflows from
investing activities
Net cash flows from investing
activities
  Cash received from investors                  42,800,000.00        4,900,000.00
  Including: cash received by
subsidiaries from investments by                42,800,000.00        4,900,000.00
minority shareholders
  Cash received from borrowings
  Cash received from other financing
activities
Sub-total of cash inflows from
financing activities
  Cash paid for debt repayments                    36,360.00
   Cash paid for distribution of
dividends and profits or payment of                4,519,335,876.00            4,491,980,070.00
interest
   Including: dividends and profits paid
to minority shareholders by
subsidiaries
  Cash paid for other financing
activities
Sub-total of cash outflows from
financing activities
Net cash flows from financing
                                                  -4,491,776,978.60           -3,547,817,810.77
activities
                                                         -336,446.78                -3,194,795.97
rate on cash and cash equivalents
equivalents
  Plus: balance of cash and cash
equivalents at the beginning of the               20,847,003,550.37            7,243,186,362.29
period
equivalents at the end of the period
                        Cash flow statements of parent company
                           For the year ended 31 December 2022
                                                                                        Unit: CNY
                 Item                      Year 2022                    Year 2021
  Cash received from sale of goods
and rendering of services
  Refunds of taxes and surcharges                        3,060,026.48
  Cash received from other operating
activities
Sub-total 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               4,939,845,815.65            4,301,849,478.48
  Cash paid for other operating
activities
Sub-total of cash outflows from
operating activities
Net cash flows from activities
                                          -3,410,912,786.55    21,505,035,033.67
operating
  Cash received from disposal of
investments
  Cash received from returns on
investments
   Net cash received from disposal of
fixed assets, intangible assets and             4,762,886.20        2,464,467.97
other long-term assets
  Net cash received from disposal of
subsidiaries and other business units
  Cash received from other investing
activities
Sub-total of cash inflows from
investing activities
   Cash paid to acquire and construct
fixed assets, intangible assets and          241,687,386.76       189,141,129.66
other long-term assets
  Cash paid for investments                8,172,000,000.00    18,425,100,000.00
  Net cash paid to acquire
subsidiaries and other business units
  Cash paid for other investing
activities
Sub-total of cash outflows from
investing activities
Net cash flows from investing
activities
  Cash received from investors
  Cash received from loans
  Cash received from other financing
activities
Sub-total of cash inflows from
financing activities
  Cash paid for debt repayments                   36,360.00
   Cash paid for distribution of
dividends and profits or payment of        4,519,404,139.37     4,491,980,070.00
interest
  Cash paid for other financing
activities
Sub-total of cash outflows from
financing activities
Net cash flows from financing
                                          -4,519,440,499.37    -3,546,833,739.72
activities
rate on cash and cash equivalents
equivalents
  Plus: balance of cash and cash
equivalents at the beginning of the    19,800,847,429.16    5,713,353,085.92
period
equivalents at the end of the period
                                                  Consolidated statement of changes in shareholders' equity
                                                                     For the year ended 31 December 2022
                                                                                                                                                                                    Unit: CNY
                                                                                                              Year 2022
                                                                         Equity attributable to owners of the parent company
                                             Other equity                                                                                                                                    Total
                                                                                                                                                                              Non-con
       Item                                  instruments                                                                               Genera    Undistrib                                 sharehold
                        Share                                        Capital     Less :Tre      Other          Special     Surplus                            Oth   Subto      trolling
                                                                                                                                        l risk      uted                                      ers'
                                    Prefer     Perpe        Others                asury      Comprehens                                                                       interests
                        capital                                      reserve                                   reserve     reserve                            ers     tal
                                     red        tual                                                                                   reserve      profit                                   equity
                                                                                  stock      ive Income
                                    stock       bond
last year                                                                                                                                                               .59
  Plus:
adjustments for
changes in
accounting
policies
   Adjustments for
correction of
accounting errors
in prior year
  Business
combinations
under common
control
  Others
January 1 of the                                                                                                                                                    209,789
current year                                                                                                                                                            .59
ases in the current                                                    308.77                                                                       207.08          37,185.         0.87        345.96
year (¡° -¡± for                                                     09
decreases)
  (1) Total                                                    9,385,6
comprehensive                      7,825,669.24                58,098.
income                                                             32
  (2) Capital
contributed or          122,414,                               122,414   42,800,00   165,214,30
reduced by               308.77                                ,308.77       0.00          8.77
owners
  Capital
contributions by
owners
  Capital
contributions by
other equity
instruments
holders
  Amounts of
share-based
payments
recognized in
owners' equity
  Others
  (3) Profit                                      -4,519,335
                                                               -4,519,
                                                                                     -4,519,335
distribution                                         ,222.00
                                                                                        ,222.00
                                                                  .00
  Withdrawal of
surplus reserves
  Withdrawal of
general risk
reserve
   Profit distributed                                          -4,519,
                                                  -4,519,335                         -4,519,335
to owners (or                                                  335,222
                                                     ,222.00                            ,222.00
shareholders)                                                     .00
  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
   Amount of
Changes in setting
benefit plan
transfer to
retained earnings
   Other
comprehensive
income
transferred to
retained earnings
  Others
  (5) Special
reserves
  Withdrawal for
the period
  Use for the
period
  Others
the current year                                                                                         .68
                                                                                                       Year 2021
                                                                    Equity attributable to owners of the parent company
                                     Other equity
                                                                                                                                                                                Non-          Total
    Item                             instruments
                                                                                             Other                                   Genera                                   controlling   sharehold
                 Share                 Perpet                  Capital     Less :Trea                      Special        Surplus              Undistribute   Othe   Subtot
                           Preferr                  Other s                               Comprehensi                                 l risk                                   interest       ers'
                capital                                        reserve     sury stock                      reserve        reserve                d profit      rs      al
                                       ual                                                 ve Income                                 reserve                                      s          equity
                           ed
                                       bond
                           stock
as at 31        1,506,98                                      741,532,55   1,002,128,     -5,213,248.9                753,494,0                36,489,911,                    -14,930,9     38,469,65
                                                                                                                                                                     ,583,9
December of     8,000.00                                            0.13       680.79                  3                     00.00                  363.13                         06.55     3,076.99
last year
   Plus:
adjustments
for changes
in
accounting
policies
   Adjustmen
ts for
correction of
accounting
errors in
prior year
  Business
combination
s under
common
control
  Others
as at           1,506,98                                      741,532,55   1,002,128,     -5,213,248.9                753,494,0                36,489,911,                    -14,930,9     38,469,65
                                                                                                                                                                     ,583,9
January 1 of    8,000.00                                            0.13       680.79                  3                     00.00                  363.13                         06.55     3,076.99
the current
year
decreases in                                                           4,001,
the current                                -630,741.36                 625,80
                       .01         00.00                       27.40                4.75     ,180.80
year (¡° -¡± for                                                           6.05
decreases)
  (1) Total                                                            7,507,
comprehensi                                -630,741.36                 052,05
ve income                                                                6.04
  (2) Capital
contributed      40,703,820   -945,850,0                                        4,900,000   991,453,8
or reduced             .01         00.00                                             .00       20.01
by owners
  Capital
contributions
                                                                                     .00         .00
by owners
  Capital
contributions
by other
equity
Instruments
holders
   Amounts
of
share-based                                                            986,55
payments                                                               3,820.
                       .01         00.00                                                       20.01
recognized                                                                01
in owners'
equity
  Others
  (3) Profit                                             -4,491,980,
                                                                       -4,491
                                                                                            -4,491,98
distribution                                                 070.00
                                                                       ,980,0
   Withdrawa
l of surplus
reserves
   Withdrawa
l of general
risk reserve
   Profit
distributed to                       -4,491
                       -4,491,980,            -4,491,98
owners (or                           ,980,0
shareholder                           70.00
s)
  Others
   (4)
Internal
carry-forwar
d of owners'
equity
  Conversio
n of capital
reserves into
paid-in
capital
  Conversio
n of surplus
reserves into
paid-in
capital
   Surplus
reserves
offsetting
losses
   Carry-forw
ard of
retained
earnings
from
changes in
defined
benefit plans
   Other
comprehensi
ve income
transferred
to retained
earnings
  Others
  (5) Special
reserves
   Withdrawa
l for the
period
  Use for
the period
  (6) Others
as at 31                                                                                                     42,486
December of                                                                                                  ,209,7
the current                                                                                                   89.59
year
                           Statement of changes in shareholders' equity of parent company
                                         For the year ended 31 December 2022
                                                                                                                         Unit: CNY
                                                                                                    Year 2022
                                      Other equity instruments                                            Other                                                                  Total
                                                                                          Less£º
       Item           Share                                              Capital                         Compreh    Special      Surplus         Undistributed                shareholde
                                 Preferred     Perpetual                                 Treasury                                                                  Other s
                     capital                                 Others      reserve                          ensive    reserve      reserve               profit                      r
                                                                                           stock
                                   stock          bond                                                     Income                                                              s' equity
last year
  Plus:
adjustments for
changes in
accounting
policies
  adjustments
for correction of
accounting
errors in prior
year
  Others
January 1 of the                                                                                                              753,494,000.00   27,801,336,778.06
current year
reases in the
current year                                                          122,414,308.77                                                           1,875,009,409.56
                                                                                                                                                                                         .33
(¡° -¡± for
decreases)
  (1) Total
comprehensive                                                                                                                                  6,394,344,631.56
                                                                                                                                                                                         .56
income
  (2) Capital
contributed or                                                        122,414,308.77
reduced by
owners
  Capital
contributions by
owners
(common stock)
  Capital
contributions by
other equity
instruments
holders
  Amounts of
share-based
payments           122,414,308.77
recognized in
owners' equity
  Others
  (3)Profit                                                   -4,519,335,22
                                          -4,519,335,222.00
distribution                                                          2.00
  Withdrawal of
surplus reserves
  Profit
distributed to                                                -4,519,335,22
                                          -4,519,335,222.00
owners (or                                                            2.00
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
  Amount of
Changes in
setting benefit
plan transfer to
retained
earnings
   Other
comprehensive
income
transferred to
retained
earnings
  Others
  (5) Special
reserves
  Withdrawal for
the period
  Use for the
period
  (6) Others
the current year
                                                                                                      Year 2021
                                      Other equity instruments                                       Other
                                                                                     Less£º                                                                                        Total
       Item             Share                                          Capital                      Comprehe      Special                       Undistributed
                                   Preferred    Perpetua                            Treasury                                Surplus reserve                         Others     shareholder
                       capital                               Others    reserve                       nsive        reserve                           profit
                                    stock         l bond                              stock                                                                                      s' equity
                                                                                                     Income
last year
  Plus:
adjustments for
changes in
accounting
policies
   adjustments for
correction of
accounting errors
in prior year
  Others
January 1 of the                                                                                                             753,494,000.00
current year
ases in the current                                                   40,703,820   -945,850,000
                                                                                                                                              -478,311,939.59                 508,241,880.42
year (¡° -¡± for                                                              .01               .00
decreases)
  (1) Total
comprehensive                                                                                                                                 4,013,668,130.41               4,013,668,130.41
income
  (2) Capital
contributed or                                                        40,703,820   -945,850,000
reduced by                                                                  .01               .00
owners
  Capital
contributions by
owners (common
stock)
  Capital
contributions by
other equity
instruments
holders
  Amounts of
share-based
payments                                                               986,553,820.01
                             .01            .00
recognized in
owners' equity
  Others
  (3)Profit                                        -4,491,980,070.0   -4,491,980,070.0
distribution                                                     0                   0
  Withdrawal of
surplus reserves
  Profit
distributed to                                     -4,491,980,070.0   -4,491,980,070.0
owners (or                                                       0                   0
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
 Amount of
Changes in
setting benefit
plan transfer to
retained earnings
   Other
comprehensive
income
transferred to
retained earnings
  Others
  (5) Special
reserves
  Withdrawal for
the period
  Use for the
period
  (6) Others
the current year
III. Company profile
     Jiangsu Yanghe Distillery Co., Ltd.(hereinafter referred to as ¡°the Company¡±)was established on 26
December 2002, verified by the Government of Jiangsu Province, details referred to Reply on The approval of
Establishment of Jiangsu Yanghe Distillery Co., Ltd. by the provincial government (SuZhengFu [2002]No.155),
and it was a company founded by Jiangsu Yanghe Group Co., Ltd., Shanghai Haiyan Logistics Development Co.,
Ltd., Nantong Zongyi Investment Co., Ltd., Shanghai Jieqiang Tobacco Sugar & Wine (Group) Co., Ltd., Jiangsu
Venture Capital Co.,Ltd., China National Research Institute of Food and Fermentation Industries Co. Ltd.,
Nantong Shengfu Industrial Trade Co., Ltd. and Yang Yandong and other totally 14 nature persons. On 27
December, the Company obtained the unified social credit code (91460000201357188U) issued by Jiangsu
Provincial Administration for Industry and Commerce. The registered capital was CNY 68 million and the share
capital was 68,000,000 (CNY 1 per share). According to the documents verified by Jiangsu Provincial
Department of Finance (Su Cai Guo Zi [2002] No.178), all the fund capital converts into share capital according
to the ratio 1:0.65561,among which, Jiangsu Yanghe Group Co., Ltd contributed CNY 52,264,100 of evaluated
physical assets and CNY 735,900 of currency, covered into 34,747,330 shares, accounting for 51.099% of the
total share capital; Shanghai Haiyan Logistics Development Co., Ltd contributed CNY 15,000,000 of currency,
covered into 9,834,150 shares, accounting for the 14.462% of the total share capital; Nantong Zongyi
Investment Co., Ltd. contributed CNY 15,000,000 of currency, converted into 9,834,150 shares, accounting for
Jiangsu Venture Capital Co., Ltd . contributed CNY 3,000,000 of currency concerted into 1,966,830 shares,
accounting for 2.892% of the total share capital; China National Research Institute of Food and Fermentation
Industries Co. Ltd. contributed CNY 1,000,000 of currency, converted into 655,611 shares, accounting for 0.964%
of the total share capital; Nantong Shengfu Industrial Trade Co., Ltd. contributed CNY 1,000,000 of currency,
converted into 655,611 shares, accounting for 0.964% of the total share capital; Yang Yandong and other
totally 14 nature persons contributed CNY 8,720,200 of currency, converted into 5,717,050 shares, accounting
for 8.408% of the total share capital.
     On 13 September 2009, the Company was verified by China Securities Regulatory Commission, according
to the document Reply on Approving Initial Public Offering of Jiangsu Yanghe Distillery Co., Ltd. (Zheng Jian
Approval [2009] No.1077). The Company announced the initial public offering of 45,000,000 common shares
on 27 February 2009 and was listed for transactions in SZSE since 6 November 2009.
     According to the decisions of 2010 Shareholders¡¯ General Meeting on 23 April 2011, based on the total
capital of 450,000,000 shares on 31 December 2010, the capital reserves per 10 shares were converted into 10
shares. After the conversion, the total share capital of the Company was 900,000,000 as well as registered
capital of CNY 900,000,000.
     According to the decision of 2011 Shareholders¡¯ General Meeting on 17 May 2012, based on the total
capital of 900,000,000 shares on 31 December 2011, the capital reserves per 10 shares were converted into 2
shares. After the conversion, the total share capital of the Company was 1,080,000,000 as well as registered
capital of CNY 108,000,000.
     According to the Proposal of Initial Share Repurchase of Public Shares approved by 2012 Shareholders¡¯
General Meeting on 17 May 2013, the Company used owned funds to repurchase public shares and the price
of public shares was no more than CNY 70.00 per share, as well as the total amount of repurchase shares was
no more than CNY 10 billion. The form of repurchase was centralized competitive bidding approved by SZSE.
Until May 2014, the amount of repurchase shares was 3,580,000 and the total amount of payment CNY
reduction. After the repurchase, the registered capital became CNY 1,076,420,000 and the total share capital
of the Company became 1,076,420,000.
     According to the decision of 2014 Shareholders¡¯ General Meeting on 26 May 2015, based on the total
capital of 1,076,420,000 shares on 31 December 2014, the capital reserves per 10 shares were converted into
registered capital of CNY 1,506,988,000.
     Registered address of the Company: 118 Middle Avenue, Yanghe Town, Suqian City, Jiangsu Province
     Company type: Incorporated company (Listed)
     Industry of the Company: Brewing food industry
     Business scope of the Company: production and sale of liquor, wholesaling and retailing of prepackaged
food, grain purchase, self-operating and agency of import and export of various types of merchandise and
technology excluding merchandise and technology limited or prohibited by the state for import and export,
domestic trade, construction of e- commerce platform and online sales. ( Business activities of projects needed
to be approved by law must be approved according to related departments )
     Parent company of the Company:Jiangsu Yanghe Group Co.,Ltd.
     The scope of the Company's consolidated financial statements is based on control, and all subsidiaries are
included in the consolidation scope of the consolidated financial statements.
      Changes of the scope of consolidation are as follows:
                                    Name                                               Measure of acquisition
                Tibet Earth Third Pole Liquor Industry Co., Ltd                         Newly establishment
               Guizhou Guijiu Liquor Industry Operation Co., Ltd                        Newly establishment
           Jiangsu Weilan Shangyin Catering Management Co., Ltd                         Newly establishment
           Jiangsu Yanghe Dream Investment Management Co., Ltd                          Newly establishment
            Jiangsu Yanghe Blue Investment Management Co., Ltd                          Newly establishment
                         Name
                                                                             Change method
Jiangsu Kelite Biotechnology Research Institute Co., Ltd
                                                                              deregistration
Guizhou Guijiu Liquor Operations Management Co., Ltd
                                                                              deregistration
scope¡±.
IV.      Basis of preparation of financial statements
     The Company has prepared its financial statements on a going concern basis, and recognized and
measured its accounting items in compliance with the Accounting Standards for Business Enterprises¡ªBasic
Standards and various concrete accounting standards, and other relevant provisions on the basis of actual
transactions and events.
     The Company has sustainable operation ability for at least 12 months from the end of the reporting
period. In addition, there is no significant event affecting going concern.
V.      Significant accounting policies and accounting estimates
      The disclosure requirements of food and wine manufacturing-related industries in the Guidelines for
Self-regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -Industry Information Disclosure shall be
observed
     (1) Sales contract
     The Company's sales products, promotional products and other goods belong to the performance
obligations performed at a certain point.
     The Company recognizes the sales revenue when the goods are delivered to the customer and the control
of the goods is transferred. For export sales business, the Company recognizes the revenue after the goods are
delivered and the customs clearance procedures are completed.
      According to the marketing policy, and the distributor sales of final product, the Company gives the
distributor a percentage discount, and regularly or irregularly settles with distributors. At the time of settlement,
the discounts are recorded in a sales invoice issued. The net amount of invoice value after the deduction of the
discount sales income is recognized as revenue according to the accrual principle. The discounts that have
occurred and have not yet been settled at the end of the current period shall be taken provision from the sales
revenue and recorded into the contract liabilities.
     (2) Service Contract
     The service contract provided by the Company contains the performance obligation of the lease service
provided. Since the customer obtains and consumes the economic benefits brought by the performance of the
contract at the same time, it is regarded as the performance obligation performed within a certain period of
time and is equally apportioned and confirmed during the service provision.
    The financial statements of the Company have been prepared in accordance with ASBE, and present truly
and completely, the group¡¯s financial position, the Company¡¯s and results of operations, and changes in
shareholders' equity, cash flows and other related information for the reporting period.
    The Company¡¯s accounting period is calendar year as its accounting year, i.e. from 1 January to 31
December.
    The Company¡¯s accounting period is 12 months.
    The Company has adopted China Yuan (CNY) as functional currency.
not under common control
    (1) Accounting treatment method for business combination under common control
    Business combination under common control is accounted for under pooling of interest method.
    Assets and liabilities obtained by the Company through business combination under common control shall
be measured at the book value as stated in the combine¡¯s accounting record on 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) Accounting treatment method of business combination not under common control
    The Company accounts for business combination not under common control under purchase method.
    a) All the net identifiable assets, liabilities or contingent liabilities obtained by the Company through
business combination not under common control shall be measured at fair value. Assets paid, liabilities
incurred or assumed and the equity securities issued as consideration for combination are generally measured
at fair value on the acquisition date, and differences between their fair values and book values shall be
included in the current profit and loss.
    b) The cost of acquisition shall be respectively determined for the following conditions;
    i. Business combination of a transaction implementation, the combination cost shall be the sum of the fair
value of the assets given, the liabilities incurred or assumed and the equity securities issued by the Company in
exchange for the control on the acquisition date, and contingent considerations meeting the recognition
conditions. The combination cost is the initial investment costs of long-term equity investments in individual
financial statements.
    ii. Business combination through multiple transactions step by step to realized, the combination cost shall
be the sum of the fair value measurement on the acquisition of the equity investment that holding before the
acquisition date and cost of all the new investment on the acquisition date. Long-term equity investment cost
in individual financial statements shall be the sum of the book value of the equity investment that holding
before the acquisition date and cost of all the new investment on the acquisition date. A package deal is
excluded.
    c) The Company, on the acquisition date, allocates the combination costs between the identifiable assets
and liabilities acquired
    i. All assets of the acquiree obtained by the Company through business combination (not limited to those
that have been recognized by the acquiree), other than intangible assets, shall be separately recognized and
measured at fair value when the future economic benefits arising thereafter are expected to flow into the
Company and the fair value can be reliably measured.
    ii. Intangible assets of the acquiree obtained by the Company through business combination shall be
separately recognized and measured at fair value when their fair values can be reliably measured.
    iii. All liabilities of the acquiree obtained by the Company through business combination, other than
contingent liabilities, shall be separately recognized and measured at fair value when fulfillment of relevant
obligations is expected to bring future economic benefits to the Company and the fair value can be reliably
measured.
    iv. Contingent liabilities of the acquiree obtained by the Company through business combination shall be
separately recognized as liabilities and measured at fair value when their fair values can be reliably measured.
    v. When the Company allocates the cost of business combination and recognizes the identifiable assets and
liabilities acquired through combination, it shall not include any goodwill and deferred income taxes that have
been recognized by the acquiree before the business combination.
      d) Treatment of the difference between the business combination costs and the fair value of net
identifiable asset acquired from the acquiree through combination
    i. 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.
    ii. The Company shall recognize the difference of the combination costs in short of the fair value of the net
identifiable asset acquired from the acquiree through combination according to the following provisions:
    Review the measurement of fair values of all the identifiable assets, liabilities and contingent liabilities
acquired from the acquiree and the combination costs;
    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.
    (3) Treatment of relevant expenses arising from the Company¡¯s business combination
    a) Relevant expenses directly arising from the business combination of the Company (including the
expenses for audit, legal services, evaluation and consultation or other intermediary costs for business
combination) shall be included in the current profit and loss when they are incurred.
    b) Commissions, fees and other expenses paid on issuance of bonds and undertaking of other debts for the
business combination shall be included in the initial measurement amount of debt securities.
    i. Where the bonds are issued at discount or par value, that part of expenses will increase the amount of
the discount;
    ii. Where the bonds are issued at premium, that part of expenses will decrease the amount of the
premium.
    c) 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.
    i. Where the equity securities are issued at premium, that part of expenses shall be deducted from capital
reserves (stock premium);
    ii. Where the equity securities are issued at par value or discount, that part of expenses shall be deducted
from the retained earnings.
    (1) Consistency of accounting policies and accounting period
    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 adjusted according to the
accounting policies and accounting periods of the Company.
    (2) Preparation method of consolidated financial statements
    The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the parent company according to other relevant information after the
adjustment to long-term equity investments in subsidiaries under the equity method and the elimination of
effects of the internal transactions between the Company and its subsidiaries and between the subsidiaries on
the consolidated financial statement.
    (3) Reflection of excess losses incurred to a subsidiary in the consolidated financial statements
    In the consolidated financial statements, where the current losses undertaken by the parent company are
in excess of its share of owners¡¯ equity in the subsidiary at the beginning of the period, the balance shall
reduce the owners¡¯ equity (retained earnings) of the parent company; where the current losses undertaken by
a subsidiary¡¯s non- controlling shareholders excess those non-controlling shareholders¡¯ share of owners¡¯ equity
in the subsidiary at the beginning of the period, the balance shall reduce the non- controlling interests.
    (4) Changes in number of subsidiaries during the reporting period
    a) Acquisition of subsidiaries during the reporting period
    i. Treatment of acquiring subsidiaries from business combination under common control during the
reporting period
    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.
    ii. Treatment of acquiring subsidiaries from business combination not under common control during the
reporting period
    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.
    b) Treatment of disposing subsidiaries during the reporting period
    During the reporting period, if the Company disposes subsidiaries, the opening balance in the consolidated
balance sheet shall not be adjusted. The income, expenses and profits of the newly disposed sub diaries 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.
operation
    (1) Classification of joint venture arrangements
    A joint arrangement is classified as either a joint operation or a joint venture. A joint operation is a joint
arrangement whereby the joint operators have rights to the assets, and obligations for the liabilities, relating to
the arrangement. A joint venture is a joint arrangement whereby the joint ventures only have the rights to the
net assets under this arrangement.
    A joint arrangement that is not structured through a separate vehicle shall be classified as a joint operation.
A separate vehicle refers to a separately identifiable financial structure, including separate legal entities or
entities without a legal personality but recognized by statute.
    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---for example, 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 treatment of a joint operation
    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.
    Cash comprises cash on hand and deposits that can be readily withdrawn on demand.
    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.
    (1) Accounting method of foreign currency transactions
    a) Initial recognition of foreign currency transactions
    For foreign currency transactions incurred, the Company converts the amount in foreign currency into the
amount in functional currency at the spot exchange rate (middle rate) announced by the People¡¯s Bank of
China on the transaction date. Among them, for foreign currency exchange occurred or transaction involving
foreign currency exchange, the Company converts at the exchange rate actually adopted on the transaction
date.
    b) Adjustment or settlement on the balance sheet date or settlement date
    On the balance sheet date or the settlement date, the Company handles foreign currency monetary items
and foreign currency non-monetary items separately in accordance with the following methods:
    i. Accounting principles for handling foreign currency monetary items
    For foreign currency monetary items, on the balance sheet date or the settlement date, the Company
converts them by using the spot exchange rate (middle rate) prevailing on the balance sheet date or
settlement date, and adjusts the amount in functional currency of foreign currency monetary items in respect
of the difference arising from exchange rate fluctuations, which shall be treated as exchange difference at the
same time. Among them, the exchange differences arising from foreign currency loans relating to the
acquisition, construction or production of assets eligible for capitalization shall be included in the costs of
assets eligible for capitalization; other exchange differences shall be included in the current financial expenses.
    ii. Accounting principles for handling foreign currency non-monetary items
    For foreign currency non-monetary items measured at historical cost, the Company shall convert them at
the spot exchange rate (middle rate) prevailing on the transaction date, with their amounts in functional
currency remaining unchanged and no exchange differences incurred.
    For an inventory that is measured at the lower of its costs or its net realizable values, if the net realizable
value is determined in foreign currency, the Company, when determining the value of the inventory at the end
of the period, shall firstly convert the net realizable value into functional currency and then compare it with
the inventory cost reflected in functional currency.
    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.
    (2) Accounting treatment method for translation of foreign currency statements
     a) The Company shall translate the financial statements of foreign operations in accordance with the
following methods:
     i. 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.
     ii. 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.
     The translation of comparative financial statements is handled by reference to the above approach.
     b) The Company shall translate the financial statements of foreign operations that are in virulent inflation
economy in accordance with the following methods:
     i. The Company restates the items in the balance sheet by using the general price index, and restates the
items in the income statement by using the changes in general price index, and then converts those items at
the spot exchange rate on the latest balance sheet date.
     ii. Where the foreign operations are no longer in virulent inflation economy, the Company ceases to restate
the financial statements and converts the financial statements restated according to the price level on such
cease.
     c) Where the Company disposes of an overseas business, it shall transfer the foreign currency financial
statements exchange difference, which relates to the business disposed of and is presented under the items of
the other comprehensive income in the balance sheet, from the other comprehensive income item to the gain
or loss on disposal for the current period. 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.
     Financial instruments are the financial asset, financial liability or (equity) instrument will be recognised
when the Company became one of the parties under a contract.
     (1) Classification of financial instruments
     a) Classification of financial assets
     According to the company's business model of managing financial assets and the characteristics of contract
cash flow of financial assets, financial assets are classified into the following three categories: financial assets
measured at amortized cost; financial assets measured at fair value through other comprehensive income
(including financial assets directly designated to be measured at fair value through other comprehensive
income); and financial assets measured at fair value through the current profit or loss.
     b) Classification of financial liabilities
     The Company classifies the financial liabilities into the following two categories: financial liabilities
measured at fair value through current profit and loss (including financial liabilities held for trading and
financial liabilities directly designated to be at fair value through current profit and loss); and financial liabilities
measured at amortized cost.
     (2) Recognition basis and measurement method of financial instruments
     a) Recognition basis of financial instruments
     When the Company becomes a party to a financial instrument, it shall recognize a financial asset or
financial liability.
    b) Measurement method of financial instruments
    i. Financial assets
    Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through
profit or loss, relevant transaction costs are directly recognized in profit or loss for the period. For other
categories of financial assets, relevant transaction costs are included in the amount initially recognized.
Accounts receivable or notes receivable arising from sales of goods or rendering services and without
significant financing component or the company decided not to consider financing elements for less than one
year are initially recognized based on the amount of consideration expected to be entitled to receive according
to Accounting Standard for Business Enterprises No. 14 - Revenue.
      ¢ÙFinancial assets measured at amortized cost
    These assets are subsequently measured at amortized cost using the effective interest method after initial
recognition. Gains/losses on financial assets that are measured at amortized cost and are not a part of any
hedging relationship shall be recognized in profit or loss when the financial asset is derecognised or
reclassification or amortized using the effective interest method or recognized the impairment allowance.
    ¢ÚFinancial assets measured at fair value through other comprehensive income
    These assets are subsequently measured at fair value after initial recognition. Except impairment, foreign
exchange gains and losses, interest income calculated using the effective interest method are recognized in
profit or loss; other gains and losses are recognized in other comprehensive income. On derecognition, gains
and losses accumulated in other comprehensive income are transferred to profit or loss.
    In addition, the company designated some non-tradable equity instruments as financial assets measured at
fair value through other comprehensive income; the company shall recognize the relevant dividend income of
such financial assets into the current profit and loss, and recognize the change of fair value in other
comprehensive income. On derecognition, the accumulated gains/losses previously recognized in other
comprehensive income shall be transferred to retained earnings and not be recognized in current profit and
loss.
    ¢Û Financial assets measured at fair value through profit or loss
    The Company classifies the financial assets, except for financial assets measured at amortized cost or at fair
value through other comprehensive income as mentioned above, into the financial assets measured at fair
value through profit or loss for the current period. In addition, the company may designate some financial
assets as financial assets measured at fair value through profit or loss for the current period upon the initial
recognition to eliminate or significantly reduce accounting mismatch. For such financial assets, the company
adopts the fair value for subsequent measurement, and changes in fair value are recognized in the profit or
loss for the current period.
    ii. Financial liabilities
    Financial liabilities shall be classified into financial liabilities measured at fair value through profit or loss for
the current period upon initial recognition and other financial liabilities. For financial liabilities measured at fair
value through profit or loss, relevant transaction costs are directly recognized in the current profit and loss,
and the relevant transaction costs of other financial liabilities are recognized in the initial recognition amount.
    ¢ÙFinancial liabilities measured at fair value through profit or loss
    Financial liabilities held for trading (including derivatives of financial liabilities) shall be subsequently
measured at the fair value. Except for those related to hedge accounting, changes in the fair value shall be
recognized in the profit or loss of the current period. For financial liabilities designated to be at fair value
through profit or loss, fair value changes caused by the Company's own credit risk changes which is recognized
in other comprehensive income, when the liability is derecognition, the accumulated change in its fair value
caused by the change in its own credit risk recognized in other comprehensive income is transferred to
retained earnings, the remaining changes of fair value is record in profit of loss. If the above treatment of the
impact of the change in the credit risk of such financial liabilities will cause or expand the accounting mismatch
in the profit and loss, the company will record all the gains/losses of such financial liabilities (including the
amount affected by fair value changes in enterprise's own credit risk) into the current profit and loss.
     ¢Ú Financial liabilities measured at amortized cost
     Except financial liabilities that arise when a transfer of a financial assets does not qualify for derecognition
or when the continuing involvement approach applies security contract are classified as financial liabilities
measured by amortized cost, or financial subsequently measurement at amortized cost, and record the profits
or losses guarantee contracts recognition or amortization into the current profit and loss.
     (3) Financial assets transfer
     If the Company transfers substantially all the risks and rewards of ownership of the financial asset to the
transferee, the Company derecognizes the financial asset, the rights and obligations arising or retained in the
transfer shall be separately recognized as its assets or liabilities; if the Company retains substantially all the
risks and rewards of ownership of the financial asset, it continues to recognize the transferred financial assets.
If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset, it is accounted for as follows: if the Company has not retained control, it derecognizes the financial asset,
the rights and obligations arising or retained in the transfer shall be separately recognized as its assets or
liabilities; and if the Company has retained control, it continues to recognize the financial asset to the extent of
its continuing involvement in the transferred financial asset and recognizes the relevant liability.
     Where transfer of financial assets qualify for derecognition entirety, the difference between the following
two amounts will be included into current profit or loss: The book value measured at the date of derecognition;
and The sum of the consideration for the derecognition part and the portion of derecognition corresponding
to the accumulated amount of the changes in fair value originally and directly included in OCI (involving the
situation where the financial asset transferred is a debt instrument investment measured at fair value and
recognized in other comprehensive income). The Company transferred the partial transfer of financial assets
which qualify for derecognition, the overall carrying amount of the transferred financial asset shall be
apportioned according to their respective relative fair value between the portion of derecognition and the
remaining.
     (4) Derecognition of financial liabilities
     If the current obligation of the financial liability (or part thereof) has been discharged, the company shall
remove financial liability (or part thereof), and the company shall recognize the difference between its book
value and the consideration paid (including any non-cash assets transferred or liabilities assumed) in the
current profit and loss.
     (5) Offsetting of financial assets and liabilities
     Financial assets and financial liabilities shall be shown separately in the balance sheet and shall not be
offset against each other. If the following conditions are met at the same time, the net value offset each other
after amount listed in the balance sheet:
     The company has offset the confirmed number of legal rights of financial assets and financial liabilities, and
this kind of legal rights is the executable; and
     The company plans to net or cash at the same time when the financial assets and liquidation of the
financial liability.
     If the transfer of financial assets does not meet the conditions for derecognition, the transferor shall not
offset the transferred financial assets and related liabilities.
     (6) Equity instruments
     Equity instruments are contracts that prove ownership of the residual interest in the company¡¯s assets after
deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of the equity
instruments of the company shall be treated as changes in the equity. The company does not recognize
changes in the fair value of equity instruments, and the transaction fees related to the equity transactions shall
be deducted from the equity. Where the equity instrument of the company distributes dividends during the
term of its existence, it shall be treated as profit distribution, and the total amount of shareholders' equity will
not be affected by the stock dividends issued.
     (7) Method for determining the fair value of financial assets and financial liabilities
     Where there is an active market for a financial instrument, the company shall determine its fair value by
quoting in the active market. Where there is no active market for the financial instrument, the company shall
determine its fair value by means of valuation technology. In valuation, the company uses valuation techniques
applicable in the current situation and supported by sufficient available data and other information to select
input values consistent with the characteristics of assets or liabilities considered by market participants in
transactions of related assets or liabilities, and gives priority to relevant observable input values as far as
possible. Use unobservable inputs only when relevant observable inputs cannot be obtained or are
impracticable to obtain.
     Upon initial recognition, the fair value of financial assets or financial liabilities is determined by the quoted
price of the same assets or liabilities in the active market or other valuation technology that only uses
observable market data, the Company defers the difference between the fair value and the transaction price.
After initial recognition, the Company recognizes the deferred difference as gain or loss in the corresponding
accounting period according to the changes of a certain factor in the corresponding accounting period.
     (8) Impairment of Financial Assets
     Based on the expected credit loss, the Company shall recognize the impairment loss on financial assets
measured at amortized cost, debt instrument investment at fair value through other comprehensive income.
     a) The approach of recognition loss allowance for expected credit losses
     Considering the reasonable and valid information such as past events, current conditions and forecast of
future economic conditions, and weighted by the risk of default, the Company calculates the probability
weighted amount of the present value of the difference between the cash flow receivable under the contract
and the expected cash flow to be received, and confirms the expected credit loss.
     i. General approach
     The Company assess whether the credit risk of financial instruments in different stages at each reporting
date has increased significantly. If the financial instruments' credit risk have not increased significantly after
initial recognition, it will be included in phase 1, and the Company measures the loss allowance for those
instruments at an amount equal to 12-month expected credit losses; if the financial instruments' credit risk
have increased significantly but without objective evidence for impairment after initial recognition, it will be
included in phase 2, and the Company measures the loss allowance of those instruments at an amount equal
to lifetime expected credit losses; if the financial asset that is evidently credit-impaired after initial recognition,
it will be included in phase 3, and the Company measures the loss allowance of those financial instruments at
an amount equal to lifetime expected credit losses. For financial instruments with low credit risk on the
balance sheet data (e.g., fixed deposits in commercial banks with higher credit rating, financial instruments
with external credit rating above "investment grade"), the Company assumes that the credit risk has not
increased significantly since the initial recognition and chooses to measure the loss provision according to the
expected credit loss in the next 12 months.
    ii. Simplified approach
    For accounts receivable, contract assets, lease receivables and Income-related notes receivable that do not
contain significant financing components or do not consider the financing components in the contracts for no
more than one year old, the company adopts simplified approach and shall always measure the loss allowance
at an amount equal to lifetime expected credit losses
    For accounts receivable, contract assets and lease receivables are defined by the Accounting Standards for
Business Enterprises No. 21-Leasing that include significant financing components, the company recognizes a
loss allowance equal to the lifetime expected credit losses.
    b) Criteria for determining whether credit risk has increased significantly subsequent to the initial
recognition
    If the probability of default of a financial asset in lifetime as determined on the balance sheet date is
significantly higher than the probability of default in lifetime as determined at the initial recognition, the credit
risk of the financial asset increases significantly.
    No matter what method the Company is applied to evaluate whether credit risk has increased significantly,
it usually inferred that the credit risk of the financial instrument has increased significantly if the contract
payment delay exceeds 30 days, unless the Company can get the reasonable and valid information at
reasonable cost to evidence that the credit risk of the financial instrument has not increased significantly since
the initial recognition.
    Except in special cases, the Company shall use the change of default risk in the next 12 months as a
reasonable estimate of the change of default risk in lifetime to determine whether the credit risk has increased
significantly to the initial recognition
    c) Approach of assessing expected credit risk on a portfolio basis and determine basis
    The company evaluates credit risk individually for the credit risk of significantly different notes receivables,
accounts receivables, contract assets, lease receivables and other receivables with the following characteristics.
Such as: accounts receivables in dispute with the other party or involving litigation or arbitration; notes
receivables, accounts receivables that have shown clear signs that the debtor is likely to be unable to meet
repayment obligations.
    When it is impossible to evaluate the expected credit loss information of an individual financial asset at a
reasonable cost, the Company divides the receivables into several portfolio according to the credit risk
characteristics, and calculates the expected credit loss on collective basis. The basis for determining the
portfolio is as following:
                 Name                                  Approach of assessing expected credit risk
         Bank acceptance bill   For notes receivables divided into portfolio, the bank acceptance bill and
         Portfolio;             commercial acceptance bill refer to the historical credit loss experience, and
         Commercial             combines the current situation and the forecast of future economic situation
         acceptance bill        respectively. The Company calculates the expected credit loss based on the
         Portfolio              default risk exposure and the expected credit loss rate of the whole duration.
                                For accounts receivables divided into risk portfolio, the Company refers to the
                                historical credit loss experience, and combines the current situation and the forecast of
        Risk Portfolio          future economic situation, and prepares a comparison table between overdue ages of
                                accounts receivables and expected credit loss rate of the whole
                                duration to calculate the expected credit loss.
                               The Company classifies items without significant recovery risk receivables as other
                               portfolio such as items from subsidiaries in the consolidation scope, tax refunds
        Other Portfolio
                               receivable, collection and withholding of funds. There is no provision for
                               bad debt for them.
                               For Lease receivables classified into combinations, the expected credit loss is
                               calculated through the default risk exposure and the expected credit loss rate of
         Lease receivables
                               the whole duration according to the historical credit loss experience, the current
                               situation and the forecast of the future economic situation
    The Company shall take the provision or transfer the loss into the current profit and loss. For the debt
instrument investment measured at fair value through other comprehensive income, the Company shall adjust
other comprehensive income while recording the impairment loss or gain into the current profit and loss.
    (1) Classification of inventory
    Inventories are classified as: raw materials, semi-finished goods, stock commodities, consigned processing
materials, goods in progress and revolving materials (including low-cost consumables), etc.
    Measurement method of dispatched inventories
    Dispatched materials and stock commodities are accounted for by using the weighted average method.
    (2) Basis to determine net realizable values of inventories and method of provision for
    stock obsolescence
    a) Determination basis of net realizable values of inventories
    i. In normal operation process, for merchandise inventories held directly for sale, including stock
commodities (finished goods) and materials for sale, their net realizable values are determined at their
estimated selling prices minus their estimated selling expenses and relevant taxes and surcharges.
    ii. In normal operation process, for material inventories that need further processing, their net realizable
values are determined at the estimated selling prices of finished goods minus estimated costs to completion,
estimated selling expenses and relevant taxes and surcharges.
    iii. For inventories held to execute sales contract or service contract, their net realizable values are
calculated on the basis of contract price. If the quantities of inventories specified in the sales contracts are less
than the quantities held by the Company, the net realizable value of the excess portion of inventories shall be
based on general selling prices.
    iv. 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.
    b) Provision for stock obsolescence
    i. Provisions for stock obsolescence are made at the lower of costs or net realizable values on a single basis.
    ii. For inventories with large quantity and relatively low unit prices, the provision for stock obsolescence
shall be made on the ground of the categories of inventories.
    (3) Inventory system
    The Company adopts perpetual inventory system and takes physical inventory counts on a regular basis.
    (4) Amortization method of revolving materials
   a) Amortization method of low-cost consumables:
   Low-cost consumables are amortized in full at once.
   b) Amortization method of packaging materials
   Packing materials are amortized in full at once when fetched for use by the Company.
    A contract asset is a company's right to receive consideration for goods transferred to a customer, and this
right depends on factors other than the passage of time. The company's contract assets mainly include
completed and unsettled assets and quality guarantee deposit. The contract assets and contract liabilities
under the same contract shall be shown on a net basis, and the contract assets and contract liabilities under
different contracts shall not be set off.
    For the determination method and accounting treatment method of expected credit loss of contract assets,
refer to "Impairment of Financial Assets" in Note 10 (8).
    Assets related to contract costs include contract acquisition costs and contract performance costs.
    The cost of contract fulfillment incurred by the company to perform the contract shall be recognized as an
asset if the following conditions are met:
    (1) The cost is directly related to a current or anticipated contract.
    (2) The cost increases the company's resources for future performance obligations.
    (3) The cost is expected to be recovered.
    The incremental cost incurred by the company in obtaining the contract is expected to be recovered shall
be recognized as an asset as the cost of obtaining the contract.
    The Company amortizes the asset related to the contract cost on the same basis as the recognition of the
revenue of the goods or services related to the asset, and includes it in the profit or cost for the current period.
    If the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will make an impairment provision for the excess part and confirm it as the
impairment loss of the assets:
    (1) The transfer of the goods or services related to the asset less the estimated cost;
    (2) Estimated impending costs for the transfer of the related goods or services.
    If the impairment provision of the above asset is subsequently reversed, the book value of the asset after
reversal shall not exceed the carrying amount the asset would have reached on the date of reversal had the
provision for impairment been not made.
    Assets held for sale
    a) Scope of a non-current asset held for sale and a disposal group
    A non-current asset or disposal group is classified as held for sale when a company recovers its carrying
value primarily through the sale (including the exchange of non-monetary assets of a commercial nature)
rather than through the continuous use of such a group.
    A disposal group is a group of assets that are disposed as a whole through sales or other ways in one
transaction and liabilities directly related to these assets delivered in the transaction.
    b) Recognition criteria of a non-current asset held for sale and a disposal group
    The Company recognizes its component (or non-current asset) that satisfies the following conditions as
assets held for sale:
    i. 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;
    ii. 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. If it requires
shareholders¡¯ approval or supervisors¡¯ approval according to regulations, it has already received approval from
the general meeting of stockholders or relative authority institution.
    c) Accounting treatment and presentation of a non-current asset held for sale and a disposal group
    The non-current asset or disposal group is first classified as held for sale, the Company should measure the
non-current assets or assets and liabilities made up of disposal group in accordance with relevant accounting
standards.
    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
valueless 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 impairment of disposal group, 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.
    No matter the asset is classified as individual asset held for sale or asset belonging to disposal group, the
asset is presented as current assets under ¡°assets held for sale¡± item; liabilities related to the asset transferred
in the disposal group held for sale is presented as current liabilities under ¡°liabilities held for sale¡± item in the
balance sheet.
    The Company is committed to a sale plan involving loss of control of subsidiary shall classify all the assets
and liabilities of that subsidiary held for sale in consolidated balance sheets when the above criteria are met,
regardless of whether the Company retain a non¨Ccontrolling interests in its former subsidiary after the sale. In
the balance sheets of parent company, the investment should be classified as held for sale in full. In the
consolidated financial statements, all assets and liabilities of the subsidiaries are classified as held for sale.
    Termination of business operations
    Termination means any separate part which satisfies one of the following conditions and which has been
disposed of or classified as being held for sale:
    a) The component represents a separate principal business or a separate principal area of operation;
    b) The component is part of an associated plan to dispose of a separate principal business or a separate
principal operating area;
    c) The component is a subsidiary acquired specifically for resale.
   (1) Recognition of the initial investment costs of long-term equity investments
   a) For long-term equity investments from business combinations, the initial investment cost shall be
recognized in accordance with the provisions mentioned in Notes 3(5). Accounting Method for Long-term
Equity Investment from Business Combinations under Common Control and Business Combination not under
Common Control.
   b) Except for the long-term equity investments arising from business combinations, those obtained by
other means shall recognize their initial investment costs in accordance with the following provisions:
   i. For the long-term equity investments obtained by cash paid, the Company recognizes the actual purchase
price as the initial investment costs. The initial investment costs include directly related expense, taxes and
other necessary expenses of obtaining long-term equity investments.
     ii. For the long-term equity investments acquired by the issue of equity securities (equity instrument), the
initial investment cost shall be the fair value of the equity securities (equity instrument) issued. If the fair value
of the long-term equity investment obtained is more reliable than equity securities issued, the initial
investment cost shall be the fair value of the long-term equity investment made by the investors. The cost
directly attributable to the issue of equity securities (equity instrument), including fees, commissions, etc.,
write-downs premium price of the issue, if premium price of the issue is insufficient, write- downs surplus
reserve and undistributed profit in turn. For the long-term equity investments acquired by the issue of debt
securities (debt instrument) , reference through the issuance of equity securities (equity instrument).
     iii. 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.
     iv. 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.
     Expenses, taxes and other necessary expenses incurred to the Company and that are directly related to the
obtainment of long-term equity investments shall be recognized as the initial investment costs of long-term
equity investments.
     For long-term equity investments obtained by the Company by any means, cash dividends or profits
declared but not yet distributed in the actual payments or the consideration actually paid for the investment
shall be separately accounted as dividends receivable and shall not constitute the costs of long- term equity
investments.
    (2) Subsequent measurement and recognition of gains and losses of long-term equity investments
    a) Long-term equity investment measured under cost method
      i. If accompany can control an investee, namely investment in subsidiary, the long-term equity investment
shall be measured under the cost method.
    ii. 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
    i. For the long-term equity investment which has joint control or significant influence over the investee, the
equity method is adopted for accounting.
    ii. 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 and at the same time the adjustment will be made to
the initial costs of the long-term equity investments.
    iii. After obtaining the long-term equity investments, 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 fall into the scope of losses
on assets impairment, 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.
    (3) Basis for judgment of common control or significant influence over the investee
    a) Basis for judgment of common control over investee
    Common control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. Relevant
activities of an arrangement usually include selling and purchasing of goods or services, managing financial
assets, acquiring or disposing of assets, researching and developing activities and financing activities. A joint
venture is a joint arrangement whereby the joint ventures have rights to the net assets of the arrangement.
The parties have rights to the assets, and obligations for the liabilities, relating to the arrangement, which is a
joint operation, but not a joint venture.
    b) Basis for judgment of significant influence over investee
    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.
Where the Company is able to exert significant influence over the investee, the investee is its associate.
   (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:
   a) It is probable that the economic benefits relating to the fixed assets will flow into the Company;
   b) The cost of the fixed assets can be measured reliably.
   (2) Depreciation of fixed assets
                                                        Estimated       Estimated
                                                                                       Annual depreciation
                                                        useful life   residual value
               Category         Depreciation method
                                                                                             rate (%)
                                                           (Yr)          rate (%)
        Buildings
                               Straight-line method      20 ~25              5             3.80 ~4.75
        And constructions
        Machinery equipments   Straight-line method         10               5                 9.50
        Transportation
                               Straight-line method         10               5                 9.50
        equipments
        Other equipments       Straight-line method           8              5                11.88
    (1) Categories of constructions in progress
    Constructions in progress are accounted on individual project basis.
    (2) Criteria and commencement of conversion of constructions in progress into fixed assets
    The book entry values of the fixed assets are stated at total expenditures incurred before construction in
progress reaches the working condition for their intended use. For self- operating projects, total expenditures
are measured according to the expenditures of direct materials, direct labor, direct measurement mechanical
construction costs and other expenditures; for contracting projects, total expenditures are measured according
to project costs payable and other expenditures. Borrowing costs incurred before the projects that are
undertaking with borrowing costs reach working condition for their intended use and meeting the condition
for capitalization shall be capitalized and included into the costs of construction in progress.
    For construction in progress that has reached working condition for intended use but for which the
completion of settlement has not been handled, it shall be transferred into fixed assets at the estimated value
according to the project budget, construction price or actual cost, etc. from the date when it reaches the
working condition for intended use and the fixed assets shall be depreciated in accordance with the Company¡¯s
policy on fixed asset depreciation; adjustment shall be made to the estimated value based on the actual cost
after the completion of settlement is handled, but depreciation already provided will not be adjusted.
   (1) Scope of borrowing costs
    The Company¡¯s borrowing costs include interest thereon, amortization of discounts or premiums, ancillary
expenses and exchange differences incurred from foreign currency loan, etc.
    (2) Recognition principles of capitalization of borrowing costs
    The borrowing costs incurred to the Company and directly attributable to the acquisition and construction
or production of assets eligible for capitalization should be capitalized and recorded into relevant asset costs;
other borrowing costs should be recognized as costs according to the amount incurred and be included into
the current profit and loss.
    Assets eligible for capitalization include fixed assets, investment properties, inventories and other assets
which may reach the working condition for their intended use or sale by acquisition and construction or
production activities for quite long time.
    (3) Recognition of capitalization period of borrowing costs
    a) Recognition of commencement of capitalization of borrowing costs
    Borrowing costs may be capitalized when asset disbursements have already been incurred, borrowing costs
have already been incurred and the acquisition and construction or production activities which are necessary
to prepare the assets for their intended use or sale have already been started. Among which, asset
disbursements include those incurred by cash payment, the transfer of non-cash assets or the undertaking of
interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization.
    b) Recognition of period of 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. If the interruption is necessary for the acquisition and
construction or production to prepare the assets for their intended use or sale, the capitalization of borrowing
costs should continue.
    c) Recognition of period of 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 all parts of the acquired and constructed or produced assets are completed, each part may be used or
sold externally in the process of continuous construction of other parts and the necessary acquisition or
production activities have been substantially completed to make the part of assets reach the working condition
for their intended use or sale, the capitalization of borrowing costs related to the part of assets should be
ceased; if all parts of the acquired and constructed or produced assets are completed 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.
    (4) Recognition of capitalized amounts of borrowing costs
    a) Recognition of capitalized amounts of interest on borrowing costs
    During the period of capitalization, capitalized amount of the interest of each accounting period (including
amortization of discounts or premiums) shall be recognized according to the following provisions:
    i. 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.
    ii.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. The capitalization rate is calculated by weighted average interest rate of general
loans.
    iii. 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.
    iv. 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.
    b) Recognition of capitalized amounts of auxiliary expenses of loans
    i.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.
    ii. Auxiliary expenses incurred from general loans shall be recognized as costs according to the amounts
incurred when they occur and included in the current profit and loss.
    c) Recognition of capitalized amount of exchange differences
    During the period of capitalization, exchange differences incurred from the principal and interest of special
foreign currency loans should be capitalized and included in the costs of the assets eligible for capitalization.
    An asset that represents a lessee¡¯s right to use an underlying asset for the lease term.
    At the commencement date of the lease term, the company recognizes the right-of-use assets and lease
liabilities of all leases except for short-term leases and leases of low-value assets, and confirm the depreciation
and interest expenses respectively during the lease term.The Company charges the lease payment of the
short-term lease and the low-value asset lease as the current loss and profit or the relevant asset costs on a
straight-line basis over each period during the lease term.
    (1) Initial measurement
    At the commencement date, a lessee shall measure the right-of-use asset at cost. The cost of the
right-of-use asset shall comprise:
    ¢Ù the amount of the initial measurement of the lease liability,
    ¢Ú any lease payments made at or before the commencement date, less any lease incentives received,
which is the incremental cost for the lease
    ¢Û any initial direct costs incurred by the lessee;
    ¢Ü an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring the underlying asset to the condition required by the terms
and conditions of the lease, unless those costs are incurred to produce inventories
    (2) Subsequent measurement
    a) Measurement basis
    After the commencement date, a lessee shall measure the right-of-use asset applying a cost model. To
apply a cost model, a lessee shall measure the right? of? use asset at cost less any accumulated depreciation
and any accumulated impairment losses; and adjusted for any remeasurement of the lease liability specified in
the lease term.
    b) Depreciation of the right-of-use assets
    Since the commencement date, the Company shall depreciate the right-of-use asset. Depreciation shall be
made in the month of lease commencement and shall be accounted in the cost of related asset or profit and
loss. When determining the depreciation method, straight line method is used for depreciation based on the
expected way of consuming of economic benefit related to the right-of-use asset. The Company shall
depreciate the right-of-use asset subsequently based on the book value after impairment loss deduction if
impairment is applicable.
    (1) Measurement, useful life and impairment test
    a) Initial measurement of intangible assets
    i. Initial measurement of outsourcing intangible assets
    Costs of outsourcing intangible assets shall be recognized according to the purchase price, related taxes
and other expenses directly attributed to reaching the working condition for their intended use. The cost of
intangible assets shall be recognized based on present value of purchase price when deferred payment over
normal credit conditions with financial nature. The difference between actual payment and purchase price,
expect for capitalized amount, shall be included into the current profit and loss in the period of credit.
    ii. Initial measurement of internally researched and developed intangible assets
    Costs of internally researched and developed intangible assets shall be recognized according to the total
expenses during the period after the assets are eligible for capitalization and before they reach the intended
purpose and the expenses that have been included in the previous periods shall no longer be adjusted.
    Expenses on the research phase of internally researched and developed intangible assets shall be included
in the current profit and loss when they incur; those on the development phase ineligible for capitalization
shall be included in the current profit and loss; those eligible for capitalization shall be recognized as intangible
assets. If it is unable to distinguish expenditure on the research phase and expenditure on development phase,
the research and development expenditures shall be all included in the current profit and loss.
    b) Subsequent measurement of intangible assets
    The useful lives of intangible assets are analyzed on acquisition. Intangible assets obtained by the Company
are divided into intangible assets with limited useful lives and intangible assets with indefinite useful lives.
    i. Subsequent measurement of intangible assets with limited useful lives
    The intangible assets with limited useful lives are amortized on a straight-line basis when they reach
intended use over their useful lives with no residual value reserved. Amortizations of intangible assets are
usually recorded into the current profit and loss; where the economic benefits of an intangible asset are
realized by the products or other assets produced thereafter, the amortizations are recorded into the costs of
the relevant assets.
    Category, estimated useful life, estimated net residual value rate and annual amortization rate of intangible
assets are shown below:
              Category of            Estimated useful life      Estimated net residual Annual amortization
           intangible assets               (years)                  value rate (%)          rate (%)
             Land use right                   50                           0                     2.00
               Trademark                     7-10                          0                 14.29-10.00
          Computer software                   10                           0                     10.00
    The useful lives and amortization methods of intangible assets with limited useful lives on the balance
sheet date shall be reviewed.
    ii. Subsequent measurement of intangible assets with indefinite useful lives
    Intangible assets with indefinite useful lives are not amortized in the holding period, but impairment tests
are performed at the end of each year.
    c) Estimates of useful lives of intangible assets
    i. For intangible assets from any contractual right or other statutory rights, their useful lives shall be
recognized according to the period no more than that of the contractual or other statutory rights; when the
contractual right or other statutory rights contract is extended due to renewal of contracts and there is
evidence that the renewal of the Company does not need large costs, the renewal period shall be included into
the useful lives.
    ii. Where the contract or the law fails to specify the useful lives, the Company integrates situations in all
aspects and determine the period of intangible assets that can bring economic benefits for the Company by
hiring the relevant experts to demonstrate or comparing with the situation of the industry as well as referring
to the Company¡¯s historical experience or otherwise.
    iii. If it is still unable to reasonably determine that intangible assets may bring economic benefits for the
Company according to the above methods, the intangible assets are taken as intangible assets with indefinite
useful lives.
    (2) Accounting policies of internal research and development expenditure
    According to the actual situation of the research and development, the Company classifies the research
and development project into that on the research phase and that on the development phase.
    a) Research stage
    Research stage is the stage when creative and planned investigations and research activities are conducted
to acquire and understand new scientific or technological knowledge.
    b) Development stage
    Development stage is the stage when the research achievements or other knowledge are applied to a plan
or design, prior to the commercial production or use, so as to produce any new or substantially improved
material, device or product.
    Expenditure of an internal research and development project on the research phase shall be included in
current profit and loss when it occurs.
    Specific criteria for qualifying expenditure on the development phase for capitalization
    Expenditure on the development phase of an internal research and development project shall be
recognized as intangible assets only when the following conditions are simultaneously satisfied:
    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 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.
    If there are impairment indicators of long-term equity investment, investment property measured at cost
model, fixed assets, construction in progress, right-of-use assets, intangible assets with indefinite useful lives
and other long-term assets at balance sheet date, impairment test should be performed. If the result of
impairment test shows that recoverable amount is less than its book value, the difference should be provided
for impairment and recorded into impairment loss. 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.
Provision for impairment is calculated and recognized on the basis of 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. Asset group is the minimum asset group which can generate cash
inflow separately.
    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.
    When the Company performs impairment test, book value of goodwill arising from business combination
should be amortized to relevant asset group using the reasonable method from the date of purchase. If it is
difficult to amortize it to relevant asset group, amortize it to relevant asset group portfolio. Apportion book
value of goodwill to relevant asset group or asset group portfolio according to the proportion of fair value of
asset group or asset group portfolio accounting for total amount of relevant asset group or asset group
portfolio. If fair value is difficult to be measured reliably, amortize according to the proportion of book value of
asset group or asset group portfolio accounting for total amount of relevant asset group or asset group
portfolio. When perform impairment test for asset group or asset group portfolio including goodwill, if there is
impairment indicator of asset group or asset group portfolio relevant to goodwill, perform impairment test for
asset group or asset group portfolio without goodwill firstly, calculate its recoverable amount, compare with
relevant book value and recognize impairment loss. Then perform impairment test for asset group or asset
group portfolio including goodwill, compare book value of the asset group or asset group portfolio (including
proportional book value of goodwill) and its recoverable amount, if recoverable amount of relevant asset
group or asset group portfolio is less than its book value, recognize impairment loss of goodwill.
    Once impairment loss stated above is recognized, reversal is not allowed in the subsequent accounting
periods.
    (1) Scope of long-term deferred expenses
    Long-term deferred expenses refer to various expenses which have been already incurred but will be born
in this period and in the future with an amortization period of over 1 year (exclusive).
    (2) Initial measurement of long-term deferred expenses
    Long-term deferred expenses shall be initially measured according to the actual costs incurred.
    (3) Amortization of long-term deferred expenses
    Long-term deferred expenses are amortized using the straight-line method over the beneficial period.
   Contract liabilities refer to the obligation of a company to transfer commodities to customers for
consideration received or receivable from customers. If the customer has paid the contract consideration or
the company has obtained an unconditional right to receive the goods prior to the company's transfer of the
goods to the customer, the company will show the amount received or receivable as a contractual liability in
which earlier the customer actually pays the amount or the amount becomes due. The contract assets and
contract liabilities under the same contract shall be shown on a net basis, and the contract assets and contract
liabilities under different contracts shall not be set off.
    (1) Accounting treatment of short-term benefits
    Short-term benefits are the benefits that the Company expect to pay in full within 12 months after the
reporting period in which the employee provided relevant services, excluding the compensation for
employment termination.
    Short-term benefits include: wage, bonus, allowance and subsidy; employee welfare, social securities
including health insurance and work injury insurance; housing common reserve fund; union expenditure and
employee training expenditure; short-term paid leave; short-term profit-sharing; non-monetary welfare and
other short-term benefits.
    Actual 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 profits
and losses or the cost relevant assets.
    (2) Accounting treatment of post-employment benefits
    The defined contribution plan of the Company includes payments of basic pension, unemployment
insurance, annuity, etc. that accord to relevant provisions. The amount which the Company deposit on balance
sheet date in exchange for the service of the employee during the accounting period will be recognized as
employee benefits liability and shall be included into the profit or loss for the current period.
    (3) Accounting treatment of termination benefits
    Termination benefits are the benefits the Company provide to the employee when the Company
terminates the employment before labor contract expires or encourages voluntary resignation. 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.
    (4) Accounting treatment 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. At the end of reporting period, the company will
recognize the employee benefits cost from other long-term employee benefits as the following components:
    a) Service cost;
    b) Net amount of interest from other long-term employee benefits net liabilities or assets;
    c) Changes from recalculation of the net liabilities or assets from other long-term employee benefits.
    In order to simplify related accounting procedure, the net amount of the above subjects shall be included
into current profit or loss or the cost of relevant assets.
    (1) Initial measurement
    At the commencement date, a lessee shall measure the lease liability at the present value of the lease
payments that are not paid at that
    a) Lease payment
    The lease payments included in the measurement of the lease liability comprise the following payments for
the right to use the underlying asset during the lease term that are not paid at the commencement date:
    i. fixed payments (including in-substance fixed payments) less any lease incentives receivable;
    ii. variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commence date;
    iii. The exercise price of the purchase option, if the Company is reasonably certain to exercise that option;
    iv. Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option
to terminate the lease;
    v. The amount expected to be paid based on the residual value of the guarantee provided by the company.
    b) The discount rate
    When calculating the present value of lease payments, the interest rate in the lease is determined as the
discount rate. If the rate cannot be readily determined, the Company shall use the lessee¡¯s incremental
borrowing rate, which is the rate of interest that a lessee would have to pay to borrow over a similar term, and
with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a
similar economic environment. The incremental borrowing rate is based on the bank lending rate and adjusted
by the Company considering relevant factors.
    (2) Subsequent measurement
    After the commencement date, the Company shall measure the lease liability by:
    ¢Ùincreasing the carrying amount to reflect interest on the lease liability;
    ¢Ú reducing the carrying amount to reflect the lease payments made;
    ¢Û remeasuring the carrying amount to reflect any reassessment or lease modifications
    After the lease commencement date, lease payment shall be remeasured if the following circumstances
incurred, and the lease liability shall be remeasured at the present value which is based on the revised lease
payment and revised discounting rate. The Company shall remeasure the lease liability to reflect changes to
the lease payments. A lessee shall recognize the amount of the remeasurement of the lease liability as an
adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to
zero and there is a further reduction in the measurement of the lease liability, a lessee shall recognize any
remaining amount of the remeasurement in profit or loss.
    ¢Ùchange of in-substance fixed payments (subject to original discounting rate)
    ¢Úchange of amounts expected to be payable under residual value guarantees
    ¢Ûchange of an index or a rate used for future lease payments
    ¢Üchange in assessment of a buy option
    The interest expense during each period of the lease term shall be included in the current profit and loss ,
except for those that should be capitalized.
    (1) Recognition principles of provision
    When obligations related to external guarantees, pending actions or arbitration, product quality assurance,
onerous contracts, reorganization and contingencies satisfy the following three conditions, they shall be
recognized as provision:
    a) This obligation is a present obligation of the Company;
    b) The settlement of such obligation is likely to result in outflow of economic benefits from the Company;
and
    c) The amount of the obligation can be measured reliably.
   (2) Measurement method of provision
   The amount of provision is measured at the best estimate of expenses required for contingencies.
   a) If there is continuous range for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimate shall be determined at the median of the range.
   b) The best estimate shall be accounted as follows in other cases:
   i. If the contingency involves a single item, the best estimate shall be determined at the most likely
outcome.
   ii. If the contingency involves two or more items, the best estimate should be determined according to all
the possible outcomes with their relevant probabilities.
    Share-based payment is classified as equity-settled share-based payment and cash- settled share-based
payment.
    (1) Accounting treatment on the date of granting
    The Company does not make any accounting treatment on the date of granting, neither for equity-settled
share-based payment nor for cash-settled share-based payment, except that the right of the share-based
payment can be exercised immediately.
      (2) Accounting treatment on each balance sheet date within vesting period
    On each balance sheet date within vesting period, the Company records the service provided by employees
or other party as cost and expense, and recognizes equity or liability at the same time.
    For the share-based payment attached with market conditions, once employees satisfy all conditions
except market conditions, the service acquired can be recognized. If the performance condition is not market
condition, the estimate for previous periods can be revised when the vesting period is determined and
subsequent information shows that the estimate for conditions of exercising rights requires adjustments.
    For equity-settled share-based payment related with employees, charge the service into costs, expenses
and capital reserve (other capital reserve), using the fair value of the equity instrument on the date of granting.
The subsequent changes of fair value should not be recognized. For cash-settled share-based payment related
with employees, recalculate fair value of the equity instrument at each balance sheet date and recognize
related costs, expenses and employee benefit payable.
    At each balance sheet date within vesting period, the Company makes the best estimate and revises the
number of equity instrument that can be exercised according to the latest subsequent information such as
change of number of employees who can exercise rights.
    Use fair value and the number of equity instrument stated above to calculate cumulative amount of costs
and expenses that should be recognized by this period and then deduct the cumulative amount already
recognized in the previous period. The balance is the amount of cost and expense that should be recognized in
the current period.
    (3) Accounting treatment after the date when rights can be exercised
    For equity-settled share-based payment, after the date when rights can be exercised, no adjustment shall
be made to the total amount of the cost expense and equity already recognized. The Company recognizes
share capital and capital premium, and carry forward the capital reserve (other capital reserve) recognized
within vesting period at the he dates when rights can be exercised.
    For cash-settled share-based payment, the Company shall not recognize costs and expenses. The change of
fair value of liability (employee benefit payable) should be recorded into current profit or loss (profit or loss
arising from fair value changes) after the date when rights can be exercised.
    (4) Accounting treatment for repurchasing shares regarding employee option incentive.
    When the Company encourages employees in the form of repurchasing shares, total expenditure of
repurchasing shares is regarded as treasury stock and registered for check. At each balance sheet date within
vesting period, charge the employee service acquired into costs and expenses, and meanwhile increase capital
reserve (other capital reserve), using fair value of the equity instrument at the date of granting. When the
employee exercises the right to buy the Company¡¯s shares and receives the amount, write off the cost of
treasury stock delivered to the employee and the cumulative amount of capital reserve (other capital reserve)
recognized within the vesting period, meanwhile the balance adjusting capital reserve (share capital premium).
   Accounting policies adopted in revenue recognition and measurement
    (1) Principle and measurement method of revenue recognition
    a) Revenue recognition
    The Company has fulfilled its contractual performance obligation to recognize revenue when the customer
acquires control of the relevant goods. On the beginning date of the contract, the Company evaluates the
contract, identifies the individual performance obligations contained in the contract, and determines whether
the individual performance obligations are performed within a certain period of time or at a certain point.
Then, the Company recognizes the revenue when the individual performance obligations are fulfilled.
    b) Revenue measurement
    If the contract contains two or more performance obligations, the Company shall, on the commencement
date of the contract, apportion the transaction price to each single performance obligation according to the
relative proportion of the separate selling price of the commodity or service committed by each single
performance obligation, and measure the revenue according to the transaction price apportioned to each
single performance obligation. In determining the transaction price, the Company will take into account the
impact of variable consideration, material financing elements existing in the contract, non-cash consideration
and customer consideration payable, and it is assumed that the goods will be transferred to the customer in
accordance with the provisions of the existing contract and that the contract will not be canceled, renewed or
changed.
    (2) Specific revenue recognition policies
    a) Sales contract
    The Company's sales products, promotional products and other goods belong to the performance
obligations performed at a certain point.
    The Company recognizes the sales revenue when the goods are delivered to the customer and the control
of the goods is transferred. For export sales business, the Company recognizes the revenue after the goods are
delivered and the customs clearance procedures are completed.
    According to the marketing policy, and the distributor sales of final product, the Company gives the
distributor a percentage discount, and regularly or irregularly settles with distributors. At the time of
settlement, the discounts are recorded in a sales invoice issued. The net amount of invoice value after the
deduction of the discount sales income is recognized as revenue according to the accrual principle. The
discounts that have occurred and have not yet been settled at the end of the current period shall be taken
provision from the sales revenue and recorded into the contract liabilities.
    b) Service Contract
    The service contract provided by the Company contains the performance obligation of the lease service
provided. Since the customer obtains and consumes the economic benefits brought by the performance of the
contract at the same time, it is regarded as the performance obligation performed within a certain period of
time and is equally apportioned and confirmed during the service provision.
    (1) Types of government grants
    Government grants are monetary assets and non-monetary assets acquired free of charge by the Company
from the government, including government grants related to assets and government grants related to
income.
    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.
    Government grants related to income are government grants other than government grants related to
assets.
   (2) Recognition principles of government grants
   Government grants are recognized when both of the following conditions are met:
   a) The Company can meet the attached conditions for the government grants;
   b) The Company can receive the grants.
   (3) Measurement of government grants
   a) If a government grant is a monetary asset, it shall be measured in the light of the received or receivable
amount.
   b) 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 (a nominal amount is CNY 1).
    (4) Accounting treatment method of government grants
    a) The government grants related to assets shall be set off of the book value of the related assets or
recognized as deferred income at the actual entry amount on acquisition. Government grants recognized as
deferred income shall be allocated evenly over the useful lives of the relevant assets, and included in the
current profit or loss. Government grants measured at the nominal amount shall be directly included in current
profit and loss.
    b) Government grants related to income shall be separately handled according to the following
circumstances:
    i. If government grants related to income are used to compensate the Company¡¯s relevant expenses or
losses in future periods, such government grants should be recognized as deferred income on acquisition and
be included into the current profit and loss or written off of the related costs when the relevant expenses,
losses are recognized.
    ii. If government grants related to income are used to compensate the
    Company¡¯s relevant expenses or losses incurred, such government grants are directly included into the
current profit and loss on acquisition or written off of the related costs.
    c) Government grants related to assets and related to income are received together, shall be treated
separately. If it is hard to separate, government grants shall be treated as related to income as a whole.
    d) Government grants related to daily operation shall be recoded in other income or written off relevant
expenses, costs. Government grants unrelated to daily operation shall be recorded in non-operating income.
Financial subsidy funds directly allocated to the company shall be offset the relevant borrowing costs.
    e) Government grants already recognized required to be refunded shall be handled according to the
following circumstances:
    i. If the grants have written down the book value of assets, the book value shall be adjusted.
    ii. If there is related deferred income, the book value of relevant deferred income is written down and the
exceeding part is recorded in the current profit and loss.
    iii. If there is no related deferred income, the exceeding part is directly included in the current profit and
loss.
    The Company adopts the balance sheet liability method to account for income tax.
    (1) Recognition of deferred tax assets or deferred tax liabilities
    a) The Company recognizes its tax base on acquisition of assets and liabilities. On the balance sheet date,
the Company analyzes and compares the book value of the assets and liabilities and the tax base. If there are
temporary differences in book value of the assets and liabilities and the tax base, under the circumstance that
the temporary differences incur in the current period and meet the recognition criteria, the Company shall
respectively recognize taxable temporary differences or deductible temporary differences as deferred tax
liability or deferred tax assets.
    b) Recognition basis of deferred tax assets
    i. Deferred tax assets incurred from deductible temporary differences are recognized to the extent that
they shall not exceed the taxable income probably obtained in future periods to be against the deductible
temporary difference. In determining the taxable income probably obtained in future periods, including the
taxable income from normal production and operation activities in future periods and the increase of taxable
income due to the reversal of taxable temporary differences during the period of reversal of deductible
temporary differences.
    ii. For deductible losses and tax credits that can be carried forward to the next years, the Company is likely
to recognize the corresponding deferred tax assets to the extent that the assets shall not exceed the taxable
income in the future for deducting deductible losses and tax credits and that are probably obtained by the
Company.
    iii. On the balance sheet date, the Company reviews the book value of deferred tax assets. If it is probably
unable to obtain sufficient taxable income in the future period to offset the benefits of the deferred tax assets,
the Company shall write down the book value of the deferred tax assets; when it is probable to obtain
sufficient taxable income, the write-downs shall be reversed.
    c) Recognition basis of deferred tax liabilities
    The Company recognizes the current and previous taxable temporary differences payable but unpaid as
deferred tax liabilities. But they exclude temporary differences arising from goodwill; transactions which are
formed other than from business combinations and neither affect the accounting profits nor affect taxable
income at the time of occurrence.
    (2) Measurement of deferred tax assets or deferred tax liabilities
    a) On the balance sheet date, the deferred tax assets and deferred tax liabilities are measured at the
applicable tax rate during the period of expected recovery of the assets or liquidation of the liabilities in
accordance with the provisions of the tax law.
    b) Where the applicable tax rate changes, the Company remeasures deferred tax assets and deferred tax
liabilities recognized, except for those incurred in transactions or events directly recognized in the owner¡¯s
equity, of which the effect shall be included in the income tax expenses in the current period when the rate
changes.
   c) When the Company measures the deferred tax assets and deferred tax liabilities, the tax rate and tax
base in consistent with the expected recovery of assets or liquidation of liabilities shall be adopted.
   d) Deferred tax assets and deferred tax liabilities of the Company shall not be discounted.
    (1) Accounting treatment for operating lease
    According to the nature of the assets, the company will include the assets used as operating lease in the
relevant items of the balance sheet. The Company shall add initial direct costs incurred in obtaining an
operating lease to the carrying amount of the underlying asset and recognize those costs as an expense over
the lease term on the same basis as the lease income. Lease payment received shall be recognized as lease
income on a straight-line basis within the period. The depreciation policy for depreciable underlying fixed
assets subject to operating leases shall be consistent with the lessor¡¯ s normal depreciation policy for similar
assets. Amortization for other underlying assets subject to operating lease shall be on reasonable systematic
basis. The variable lease payments obtained by the company related to operating leases, which are not
included in the lease payment received, shall be included in the current profit and loss when actually incurred.
    A lessor shall account for a modification to an operating lease as a new lease from the effective date of the
modification, considering any prepaid or accrued lease payments relating to the original lease as part of the
lease payments for the new lease.
    (2) Accounting treatment for finance lease
    At the commencement date of the lease term, the Company recognizes the finance lease receivable at the
net value of lease investment (the sum of the unguaranteed residual value and the present value of the lease
receipts not yet received at the commencement date of the lease term that are discounted at the interest rate
in the lease) and derecognizes the finance lease asset. Over the term of the relevant lease, the Company
calculates and recognizes interest income based on the interest rate in the lease.
    The company shall account for a finance lease modification as a separate lease if both conditions are
satisfied: ¢Ù the modification increases the scope of the lease by adding the right to use one or more
underlying assets or extending the contractual lease term. ¢Ú the consideration for the lease increases by an
amount commensurate with the stand-alone price for the increase in scope or the contractual lease term
extension and any appropriate adjustments to that stand-alone price to reflect the circumstances of the
particular contract. Stand-alone price to reflect the circumstances of the particular contract.
  (1) Changes in significant accounting policies
     ¡õApplicable    ?N/A
  (2) Changes in significant accounting estimates
     ¡õApplicable    ?N/A
    None.
VI.      Taxes
                Tax type                             Taxation basis                                Tax rate
Value-added tax (VAT)                    Output tax-deductible input tax           13%¡¢9%¡¢6%¡¢19%
                                         Sales revenue or composite assessable
Consumption tax
                                         price
Urban maintenance and construction tax   Applicable turnover tax amount            7%¡¢5%
                                         Applicable income tax rate Taxable
Corporate income tax                                                               25%¡¢16.5%¡¢0%¡¢27%
                                         income
Disclosure statement if there are various taxpaying bodies with different corporate income tax rates
                         Company name                                              Applicable tax rate
JSSJ Industry (HK) Holdings Co., Ltd.                         16.50%
Hong Kong Zhaiugou International Trade Co., Ltd.              16.50%
ZYG E-Commerce HK Limited                                     16.50%
Yanghe Hong Kong Distillery Co., Ltd.                         16.50%
YANGHE CHILE SPA                                              27%
YangHe International Investment Ltd                           0%
ZYG LTD and ZYG TECHNOLOGY INVESTMENT LTD                     0%
None.
    (1) Ad valorem taxation: liquor consumption tax shall be calculated and paid according to 20% of the
approved sales amount. The taxable liquor commissioned for processing shall be taxed according to the sales
price of similar liquor of the entrusted party, and if there is no sales price of similar liquor, the taxable liquor
shall be computed according to the composition assessable price. Consumption tax on red wine (wine) is
calculated at 10% of sales.
    (2) Quantity-based taxation: liquor consumption tax is calculated and paid according to CNY 1 per kg.
VII.     Notes to items in the consolidated financial Statements                      (all currency unit is CNY,
         except other statements)
                                                                                                                   Unit: CNY
                  Item                               Closing balance                           Opening balance
Cash                                                                                                               3,549.27
Bank deposit                                                24,331,397,524.64                            20,894,755,169.16
Other cash and cash equivalents                                    44,051,907.69                              61,072,291.69
Total                                                       24,375,449,432.33                            20,955,831,010.12
Including: total deposit outbound                                            49,598,745.91                               80,215,579.77
Other notes
On December 31st 2022, the interest receivable for time deposit is RMB 356,432,891.61; The ending
balance of other currency funds is mainly the funds deposited in Tenpay, Alipay and other platforms.
Liquor manufacturing enterprises should disclose in detail whether there is any special interest arrangement
such as the establishment of capital co-management accounts with relevant parties
¡õApplicable ?N/A
                                                                                                                                 Unit: CNY
                     Item                                      Closing balance                               Opening balance
Financial asset at fair value through
profit and loss
Including:
Equity instrument                                                                                                        47,300,000.00
Debt instruments                                                        7,998,150,119.16                              10,906,594,328.01
Including:
Total                                                                   7,998,150,119.16                              10,953,894,328.01
Other notes
Debt instruments are bank financial products and trust financial products that mature within one year
  (1) Classification of notes receivables
                                                                                                                                 Unit: CNY
                     Item                                     Closing balance                         Opening balance
Bank acceptance bill                                                        526,004,730.00                              663,849,328.28
Total                                                                       526,004,730.00                              663,849,328.28
                                                                                                                                 Unit: CNY
                                               Closing balance                                        Opening balance
                                                 Provision for bad                                              Provision for
                            Book balance                                                Book balance
        Item                                           debt                 Book                                  bad debt          Book
                            amou       propo               proporti         value                 proporti     amou      propo      value
                                               amount                                  amount
                             nt        rtion                   on                                   on           nt      rtion
Including:
Provision      for
bad debt of                 526,00                                                                                                  663,84
notes                       4,730.                                                                                                  9,328.2
receivables by                    00                                                                                                     8
portfolio
Including:
Bank     acceptance         526,00                                                                                                  663,84
bill portfolio                                                                  0.00    328.28
Total
Provision for bad debt by individual: 0.00
                                                                                                                                          Unit: CNY
                                                                                      Closing balance
              Item
                                                       Book balance         Provision for bad debt                                        Proportion
Bank acceptance bill portfolio                        526,004,730.00
Total                                                 526,004,730.00
Notes to determine provision for bad debt by portfolio:
If provision for bad debt of notes receivable is calculated according to the general model of expected credit
loss, please refer to the disclosure method of other receivables to disclose the relevant information about
provision for bad debt:
¡õApplicable ?N/A
   (2) Notes receivable that have been endorsed to other parties by the Company but have not expired at
the end of year
                                                                                                                                          Unit: CNY
                      Item                               Derecognition at period end                       Not derecognition at period end
Bank acceptance bill                                                                                                                422,394,730.00
Total                                                                                                                               422,394,730.00
    (1) Disclosed by categories
                                                                                                                                          Unit: CNY
                                              Closing balance                                                 Opening balance
                                                      Provision for bad                                                Provision for
                              Book balance                                                    Book balance
                                                            debt                                                         bad debt
    Category                                                                      Book                                                       Book
                                                                                                                                 Prop
                                          Propor                   Propor         value                 Propor                               value
                             Amount                   Amount                                Amount                    Amount     ortio
                                           tion                     tion                                   tion
                                                                                                                                    n
Including:
Provision for bad       49,543,070.1      100.00      4,400,17                   45,142,8   4,082,16    100.00        2,834,21   69.4       1,247,94
debt by portfolio                     4           %       7.36                      92.78       1.80              %      1.89        3%         9.91
Including:£º
Risk portfolio                                                      8.88%
Total                                                               8.88%
Provision for bad debts by portfolio:
                                                                                                                                          Unit: CNY
                                                                                      Closing balance
              Aging
                                          Accounts receivables                    Provision for bad debt               Proportion of provision
Within1 year (including 1
year)
Over 3 years                                  2,984,017.58                        2,966,306.41                              99.41%
Total                                        49,543,070.14                        4,400,177.36
Notes to determine provision for bad debt by portfolio:
If provision for bad debt of accounts receivables is calculated according to the general model of expected
credit loss, please refer to the disclosure method of other receivables to disclose the relevant information
about provision for bad debt:
¡õApplicable           ?N/A
Disclosed by aging                                                                                                      Unit: CNY
                              Aging                                                             Book value
Within1 year (including 1 year)                                                                                     46,205,254.29
Within1 year                                                                                                        46,205,254.29
Over 3 years                                                                                                         2,984,017.58
        Over 5 years                                                                                                 2,935,993.29
Total                                                                                                               49,543,070.14
    (2) Provision for bad debt that is accrued, recovered or reversed during this period
Provision for bad debts during this period:
                                                                                                                        Unit: CNY
                                                         Changes in the current period
                         Opening
   Category                                              Recovered or                                               Closing balance
                         balance       Provision                                Write off             Others
                                                           reversed
Provision       for
bad debt of
accounts
receivables
Total                  2,834,211.89   1,565,965.47                                                                   4,400,177.36
Significant amount of reversal or recovery during this period
                                                                                                                        Unit: CNY
             Company name                      Amount recovered or reversed                            Method
        (3) Top five entities with the largest balances of the accounts receivables
                                                                                                                        Unit: CNY
                                                                      Proportion in the total
         Company's name                Closing balance                                                       Provision amount
                                                                      accounts receivables
First                                        10,693,847.15                                  21.58%                     320,815.41
Second                                       10,125,399.40                                  20.44%                     303,761.98
Third                                         5,053,213.00                                  10.20%                     151,596.39
Fourth                                        1,671,379.39                                  3.37%                       50,141.38
Fifth                                         600,000.00                        1.21%                     600,000.00
Total                                    28,143,838.94                         56.80%
                                                                                                           Unit: CNY
                  Item                             Closing Balance                       Opening Balance
 Bank acceptance bill                                        623,098,310.00                          222,793,060.40
 Total                                                       623,098,310.00                          222,793,060.40
Increase or decrease of receivable financing for the current period and changes in its fair value.
¡õApplicable ?N/A
If a provision for impairment is made for receivable financing in accordance with the general model of
expected credit losses, please disclose relevant information on the provisions for impairment with reference to
the disclosure method of other receivables.
¡õApplicable ?N/A
    (1) Analysis by aging
                                                                                                           Unit: CNY
                                     Closing balance                                Opening balance
          Aging
                              Amount                 Proportion               Amount                 Proportion
Within 1 year                10,442,862.34                       94.77%       8,077,156.80                    85.85%
Over 3 years                     140,477.59                       1.27%         419,972.49                         4.46%
Total                        11,019,093.60                                    9,408,768.12
Significant prepayment aging over 1 year without settlement on time:
No significant prepayment aging over 1 year is recorded in the ending balance.
    (2) Top five entities with the largest balances of prepayment
        Company¡¯s name                 Closing balance                    Proportion in the total prepayment (%)
First                                                    2,481,010.08                                               22.52
Second                                                   2,277,241.70                                               20.67
Third                                                    1,575,000.00                                               14.29
Fourth                                                   1,103,249.58                                               10.01
Fifth                                                    1,097,068.44                                                9.96
Total                                                    8,533,569.80                                               77.44
                                                                                                           Unit: CNY
                    Item                                   Closing balance                            Opening balance
Other receivables                                                        74,362,342.41                             11,520,008.85
Total                                                                    74,362,342.41                             11,520,008.85
    (1) Other receivables
    a) Other receivables by nature
                                                                                                                          Unit: CNY
        Nature of other receivables                         Closing balance                             Opening balance
Savings deposits (infringement dispute)                                  22,839,924.27                             22,839,924.27
 Deposit                                                                 75,233,431.94                             18,258,461.27
Cooperation                                                               3,910,000.00                              3,910,000.00
Business loans, petty cash and others                                    26,329,410.21                             21,280,921.11
Total                                                                 128,312,766.42                               66,289,306.65
    b) Provision for bad debt
                                                                                                                          Unit: CNY
                                          Stage 1                   Stage 2                   Stage 3
                                                             Expected credit loss for    Expected credit loss
            Bad debt              Expected credit losses                                                                  Total
                                                             lifetime (No credit loss    for lifetime (Credit
                                  in the next 12 months
                                                                    occurred)              loss occurred)
Balance as at 1 January 2022                406,088.25                                       54,363,209.55            54,769,297.80
Change of opening balance
as at 1 January 2022 in
current period
Provision in 2022                         1,548,524.26                                                                    1,548,524.26
Recovery in 2022                                                                              2,368,403.77                2,368,403.77
Other changes                                 1,005.72                                                                        1,005.72
Balance      as   at   31
December 2022
Significant changes of loss provision in the book balance during this period.
¡õApplicable ?N/A
Disclosure by aging
                                                                                                                          Unit: CNY
                             Aging                                                             Book value
Within 1 year(including 1 year)                                                                                    72,545,501.15
Within 1 year                                                                                                      72,545,501.15
Over 3 years                                                                                                       52,686,437.21
Over 5 years                                                                                                       49,515,880.22
Total                                                                                                             128,312,766.42
   c) Provision for bad debt that is accrued, recovered or reversed during this period
     Provision for bad debts during this period:
                                                                                                                                 Unit: CNY
                                                                        Changes in current period
                                    Opening                                                                                     Changes in
         Category                                                     Recovered or                            Other
                                    balance           Provision                             Write off                         current period
                                                                        reversed                             changes
 Other          receivables                          1,548,524.2                                                               53,950,424.0
 bad debt provision                                            6                                                                          1
 Total                           54,769,297.80                         2,368,403.77                             1,005.72
Significant amount of reversal or recovery during this period:
                                                                                                                                 Unit: CNY
                     Entity                              Amount of reversal or recov                                 Method
   d) Top five entities with the largest balances of other receivables
                                                                                                                                 Unit: CNY
                                                                                                                              Provisioning
                                                                                                 Proportion in total
  Company¡¯s name                   Category         Closing balance             Aging                                      amount at period
                                                                                                        receivable
                                                                                                                                  end
 Xiuwen County
 Investment                   Deposit                 55,000,000.00         Within 1 year                      42.86%          1,100,000.00
 Promotion Bureau
 Industrial
 Commercial Bank              Savings deposit
 of China Ltd.                (Infringement           22,839,924.27      Over 5 years                          17.80%         22,839,924.27
 Kaifeng Haode                dispute)
 branch
 Bankruptcy
 administrator of
 Jiangsu Juntai
 Properties Co.,              Deposit                 15,000,000.00      Over 5 years                          11.69%         15,000,000.00
 Ltd., Suqian Guotai
 Department Store
 Co., Ltd
 Nanjing Peilong
 Sports Culture Co.,          Cooperation               3,910,000.00     Over 5 years                           3.05%          3,910,000.00
 Ltd.
 Siyang County
 Land Acquisition
                              Deposit                   2,938,496.00        Within 1 year                       2.29%             58,769.92
 and Reserve
 Center
  Total                                               99,688,420.27                                            77.69%         42,908,694.19
   (1) Categories of Inventories
                                                                                                                                 Unit: CNY
                                              Closing balance                                           Opening balance
         Item
                          Book balance           Provision        Book value         Book balance          Provision for       Book value
                                          for stock                                                  stock
                                          obsolesce                                               obsolescence
                                             nce
 Raw material           426,227,182.05                     414,358,379.43      438,692,292.37     15,300,348.33     423,391,944.04
                                                   .62
 Work in
 progress
 Stock goods          2,971,329,097.21                   2,971,329,097.21                                         2,632,674,836.85
 semi-finished                                                                13,085,411,678.                     13,085,411,678.9
 goods                                                                                       94                                   4
 Total                17,741,127,769.16                  17,729,258,966.54                        15,300,348.33
                                                   .62                                       14                                   1
    The disclosure requirements of food and wine manufacturing-related industries in the Guidelines for
Self-regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -Industry Information Disclosure shall be
observed
    (2) Provision for stock obsolescence and impairment provision of contract cost
                                                                                                                      Unit: CNY
                                            Increases in current period        Decreases in current period
                                                                                                                     Closing
         Item     Opening balance                                              Recovery or
                                             Provision          Other                                Other           balance
                                                                                reversal
 Raw material          15,300,348.33       2,333,823.54                        5,765,369.25                       11,868,802.62
 Total                 15,300,348.33       2,333,823.54                        5,765,369.25                       11,868,802.62
                                                                                                                      Unit: CNY
                 Item                                    Closing balance                             Opening balance
 VAT to be deducted                                                   113,102,451.80                              131,525,820.12
 Consumption tax to be deducted                                           6,734,883.21                              6,575,730.95
 Advance payment of income tax                                            9,850,655.25                              4,903,640.51
 Total                                                                129,687,990.26                              143,005,191.58
                                                                                                                                                                           Unit: CNY
                                                                                     Changes in current period
                                                                                                                                                                           Closing
                                                                        Profit or loss
                                                                                         Adjustment                  Cash      Provisi                                   balance of
                          Opening                                       recognized                       Other                                             Closing
        Investee                                                                          s of other               divided     on for                                     provision
                          balance          Increase       Decrease         under                       changes                              Other          balance
                                                                                         comprehens                or profit   impair                                        for
                                                                           equity                      in equity
                                                                                         ive income                declared    ment                                      impairment
                                                                          method
Diageo
International Spirits     8,173,436.53                   8,124,100.65     909,717.87     -865,007.06                                       -94,046.69
Company Limited
Subtotal                  8,173,436.53                   8,124,100.65     909,717.87     -865,007.06                                       -94,046.69
Jiangsu Su Wine
Culture
Transmission on
Co, Ltd.
Nanjing Hesong
Culture Technology        3,852,352.73                                    -82,056.98                                                                     3,770,295.75
Co., Ltd.
Jiangsu Xinghe
Investment
Management nt
Co., Ltd.
Nanjing Huatai
Yanghe Equity
Investment Master                         6,980,000.00                         561.41                                                                    6,980,561.41
Fund (limited
partnership)
 Subtotal                 24,569,960.78   6,980,000.00                  4,291,718.92                                                     -2,862,049.49   32,979,630.21
Total                     32,743,397.31   6,980,000.00   8,124,100.65   5,201,436.79     -865,007.06                                     -2,956,096.18   32,979,630.21
                                                                                                                        Unit: CNY
                    Item                                    Closing balance                          Opening balance
Classified as financial assets at fair
value through profit and loss
Including: equity instrument investment                              5,848,590,827.45                             6,358,903,792.90
Debt instrument investment                                              300,043,333.33                            1,277,038,356.16
Total                                                                6,148,634,160.78                             7,635,942,149.06
                                                                                                                        Unit: CNY
                    Item                                    Closing balance                          Opening balance
Fixed Assets                                                         5,794,773,069.53                             6,276,466,308.05
Total                                                                5,794,773,069.53                             6,276,466,308.05
  (1)Details of fixed assets
                                                                                                                        Unit: CNY
                                         Buildings and         Machinery         Transportatio       Other                  Total
                Item
                                         constructions         equipment         n equipment      equipment
Original cost of fixed assets
(1) External purchase                       14,918,193.52            47,102.56    5,676,284.34    20,507,307.58        41,148,888.00
(2) Transfer from construction
in progress
(3) Increase from business
combination
(1) Disposal or retirement                   1,572,771.20        42,136,794.72   14,882,492.03     8,035,197.51        66,627,255.46
Accumulated depreciation
(1) Provision                             391,048,659.54       260,975,939.00     4,284,339.13    22,559,411.78       678,868,349.45
(1) Disposal or retirement                    754,910.54         35,471,641.96   13,511,424.47     6,428,441.04        56,166,418.01
Provision for fixed asset
impairment
(1) Provision
(1) Disposal or retirement
Book value
    (2) Investment properties without certification of right
                                                                                                                 Unit: CNY
                                                                                   Reason for not having the certification of
                     Item                                  Book value
                                                                                                     right
Yanghe Blue-collar workers apartment                              29,009,949.65                   In process
Yanghe 40,000-ton pottery jar warehouse                           158,664,124.59                  In process
Yanghe workshop etc.                                              164,491,024.99                  In process
property of the subsidiary, etc.                                    4,588,086.29                  In process
Total                                                             356,753,185.52
                                                                                                                 Unit: CNY
                    Item                              Closing balance                         Opening balance
Construction in progress                                          757,145,492.90                             525,497,000.26
Total                                                             757,145,492.90                             525,497,000.26
  (1) Details of the construction in progress
                                                                                                                                                                                Unit: CNY
                                                                                  Closing balance                                                 Opening balance
                               Item                                               Provision for                                                       Provision for    Book value
                                                                Book Balance                                Book value           Book Balance
                                                                                   impairment                                                         impairment
  Shuanggou 120000 ton pottery jar storage project                 3,670,946.95                                  3,670,946.95
  Shuanggou packaging production line                             17,191,907.04                                 17,191,907.04     17,191,907.04                         17,191,907.04
  Siyang base three-dimensional warehouse, packaging
  production line projec
  Nanjing operation center building project                      355,622,206.07                                355,622,206.07    226,554,154.35                        226,554,154.35
  Sesame Fragrant Intelligent brewing Project (Workshop
  sewage treatment capacity expansion and
  reconstruction project
  Comprehensive brewing plant                                      2,753,290.37                                  2,753,290.37      4,798,126.18                          4,798,126.18
  Exhibition and Decoration Engineering of Wine History
  Museum, Wine Rhyme Museum, and Wine Art Museum
  Phase II of Gui wine project                                    62,362,038.53                                 62,362,038.53     43,619,689.76                         43,619,689.76
   Other projects                                                102,170,280.18                                102,170,280.18    123,447,895.38                        123,447,895.38
  Total                                                          757,145,492.90                                757,145,492.90    525,497,000.26                        525,497,000.26
(2) Significant changes in construction in progress
                                                                                                                                                                                Unit: CNY
                                                                                                                                                        Include:Ca    Capital
                                                                                                                 Proportion of            Interest
                                                                    Transfer      Other                                                                  pitalized    ization     Sourc
                                      Opening     Increase in                                     Closing        accumulative    Progre   capitaliz
     Item             Budget                                        into fixed    decrea                                                                 interest      rate         e of
                                      balance   current period                                    balance        project input     ss       ation
                                                                     assets        ses                                                                    for the     for the     funds
                                                                                                                 in budget (%)              rate
                                                                                                                                                          period      period
 Shuanggou          1,000,000,00                                                                                                 Early
pottery jar
storage
project
Shuanggou
packaging        120,000,000.                                                                                     Late
production                00                                                                                      stage
line
Siyang base
three-dimensi
onal
warehouse,                        1,100,810.08                                           1,100,810.08   64.97%            Other
packaging
production
line projec
of pottery jar   360,000,000.                                     14,880,900.0                                    Late
warehouse                 00                                                0                                     stage
project
Nanjing
operation                                                                                                         Middl
center                          226,554,154.35   129,068,051.72                        355,622,206.07   51.94%    e       Other
building                                                                                                          stage
project
Sesame                                                                                                            Late
Fragrant
                                                                                                                  stage
Intelligent
brewing          68,842,800.0
Project                    0
(Workshop
of pottery jar   42,000,000.0                                     46,689,383.4
warehouse                  0                                                4
project
sewage
                                                                                                                  Middl
treatment        23,000,000.0
capacity                   0
                                                                                                                  stage
expansion
and
reconstructio
n project
of pottery jar                                                                                                    Middl
warehouse                  00
                                                                                                                  stage
project
Comprehensi
ve      brewing                    4,798,126.18    27,868,796.06                          2,753,290.37   81.67%           Other
plant
Exhibition
and
Decoration
Engineering
of Wine                                                                                                           Middl
History                                            61,055,364.82                         61,055,364.82   67.84%   e       Other
Museum,                                                                                                           stage
Wine Rhyme
Museum, and
Wine Art
Museum
Phase II of                                                                                                       Middl
Gui       wine                    43,619,689.76    21,397,215.98   2,654,867.21          62,362,038.53   46.59%   e       Other
project                                                                                                           stage
Total                            402,049,104.88   348,377,727.48                        654,975,212.72
                                                                                                                         Unit: CNY
                     Item                              Building and construction                              Total
Total original carrying amount
    (1) New Lease                                                       31,644,842.71                                 31,644,842.71
    (2) Other                                                                138,473.14                                  138,473.14
    (1) Disposal                                                          8,092,572.74                                 8,092,572.74
    (2) Other
Accumulated depreciation
    (1) Provisions                                                      11,177,822.64                                 11,177,822.64
    (2) Other                                                                46,157.72                                    46,157.72
    (1) Disposal                                                          2,038,725.77                                 2,038,725.77
Provision for Right-of-use Assets
impairment
     (1) Provision
     (1) Disposal or retirement
Total book value
 (1) Details of intangible assets
                                                                                                                         Unit: CNY
                                                           No-patent right          Trademark        Computer
      Item              Land use right      Patent right                                                                       Total
                                                             technology               right           software
Original cost of
intangible assets
balance                                                                                                                                0
current period
(1)Including:
Acquired
(2)Internally
developed
(3)Business
combination
current period
(1)Including:
Disposal
Accumulated
amortization of
intangible assets
balance
current period
(1)Including:
Provision
current period
(1)Including:
Disposal
Provision for
impairment
balance
current period
(1)Including:
Provision
current period
(1)Including:
Disposal
Book value of
 intangible assets
 Closing      book                                                                                                    1,714,381,075.4
 value                                                                                                                               3
 Opening      book                                                                                                    1,679,597,933.0
 value                                                                                                                               6
   The proportion of intangible assets formed through internal research and development of the Company in
the balance of intangible assets at the end of this period is 0.00%.
   (1) Goodwill book value
                                                                                                                         Unit: CNY
                                                                                      Decrease in current
  Investee¡¯s name                                Increase in current period
                                                                                            period
 or items resulting     Opening balance                                                                            Closing balance
     in goodwill                                  Business
                                                                                      Disposal
                                                combination
 Jiangsu
 Shuanggou
 Distillery Stock
 Co., Ltd.
 Jiangsu Zhaiugou
 E-commerce Co.,           6,940,018.79                                                                                6,940,018.79
 Ltd
 Jiangsu Zhaibianli
 E-commerce Co.,          21,250,284.80                                                                              21,250,284.80
 Ltd
 Guizhou Guijiu
 Co., Ltd.
 ZYG
 TECHNOLOGY                5,057,111.19                                                                                5,057,111.19
 INVESTMENT LTD
 Guizhou
 Maotaizhen
 Guijiu Liquor
 Industry Co., Ltd
 Total                   339,408,809.99                                                                              339,408,809.99
   (2) Goodwill impairment provision
                                                                                                                         Unit: CNY
  Investee¡¯s name or                                  Increase in current period       Decrease incurrent period
   items resulting in         Opening balance                                                                         Closing balance
       goodwill                                        Provision                         Disposal
 Jiangsu Zhaiugou
 E-commerce Co., Ltd
 Jiangsu Zhaibianli
 E-commerce Co., Ltd
 Guizhou Guijiu Co.,
 Ltd.
 ZYG TECHNOLOGY
 INVESTMENT LTD
 Guizhou Maotaizhen
 Guijiu Liquor                 11,333,195.25                                                                     11,333,195.25
 Industry Co., Ltd
 Total                         63,406,820.04                                                                     63,406,820.04
Related information of asset groups or asset group portfolio containing goodwill
The recoverable amount of asset group containing apportioned goodwill is determined according to the
present value of the estimated future cash flow of the relevant asset group. Its future cash flows are
determined based on the 3-year financial budget, with a certain discount rate. Cash flow over 3 years is
calculated on the basis of19.04% growth rate. After the test, there is no goodwill impairment resulting from
the acquisition of Jiangsu Shuanggou Distillery Stock Co., Ltd.
Statement of testing process of impairment of goodwill, key parameters (e.g. the forecast growth rate at
present value of future cash flows; the growth rate in stable period; profit margin; the discount rate; predictive
period and etc.) and determination methods of recognizing goodwill impairment loss.
Effect of goodwill impairment test
Other notes
                                                                                                                      Unit: CNY
                                                                       Amortization for
                                               Increase in the
         Item           Opening balance                                  the current        Other decreases     Closing balance
                                               current period
                                                                              period
 Wine city night
 view Identification     12,016,464.46                                    3,004,116.11                            9,012,348.35
 project
 Brighten old
 factory and
 packaging logistics
 center project
 Decoration
 expenses of hotel
 Total                   16,104,679.68                                    4,026,169.92                           12,078,509.76
   (1) Deferred tax assets before offset
                                                                                                                      Unit: CNY
                                                   Closing balance                                  Opening balance
                 Item             Deductible temporary           Deferred tax               Deductible         Deferred tax
                                          differences                assets                 temporary             assets
                                                                                                  differences
 Provision for asset
 impairment
 Unrealized profit from
 internal transaction
 Deductible losses                       1,005,233,098.74            251,308,274.69            1,005,233,098.74             251,308,274.69
 The difference between
 book value of debt and tax              4,703,841,737.42         1,175,960,434.36             4,371,081,520.39           1,092,770,380.10
 base
 ESOP                                       163,118,128.78            40,779,532.19                40,703,820.01              10,175,955.00
 Total                                   5,992,801,528.76         1,498,116,524.68             5,543,828,290.24           1,385,956,896.18
   (2) Deferred tax assets or liabilities presented as net value after offset
                                                                                                                                   Unit: CNY
                                                            Closing balance Of           Opening offset amount           Opening balance Of
                                 Offset amount of
                                                           deferred tax assets or         of deferred tax assets     deferred tax assets or
            Item              deferred tax assets and
                                                           deferred tax liabilities         and deferred tax         deferred tax liabilities
                               deferred tax liabilities
                                                                 after offset                   liabilities                 after offset
 Deferred tax assets                                           1,498,116,524.68                                           1,385,956,896.18
 Deferred tax liabilities                                        219,046,405.35                                             299,382,397.38
   (3) Details of unrecognized deferred tax assets
                                                                                                                                   Unit: CNY
                     Item                                   Closing balance                                    Opening balance
 Deductible temporary differences                                          180,135,943.91                                   192,033,907.02
 Deductible losses                                                         265,285,228.80                                     56,117,773.36
 Total                                                                     445,421,172.71                                   248,151,680.38
   (4)Deductible losses from unrecognized deferred tax assets will due on the following years
                                                                                                                                   Unit: CNY
              Year                           Closing balance                    Opening balance                             Note
 Total                                             265,285,228.80                         56,117,773.36
                                                                                                                                   Unit: CNY
                                         Closing balance                                               Opening balance
     Item                                 Provision for                                                  Provision for
                       Book Balance                             Book value          Book Balance                               Book value
                                           impairment                                                     impairment
Compensation
for land
demolition
Prepayment of
construction
equipment and
house purchase
Total               183,847,201.84                183,847,201.84     186,140,639.38                   186,140,639.38
                                                                                                            Unit: CNY
                  Item                          Closing balance                           Opening balance
 Bank acceptance Bill                                                                                30,000,000.00
 Total                                                                                               30,000,000.00
        As of December 31st 2023, the company did not have any unpaid matured notes payable.
    (1) Presentation of accounts payables
                                                                                                            Unit: CNY
                 Item                           Closing balance                           Opening balance
Payments for goods                                        1,305,100,314.00                        1,364,515,734.82
Payables on equipment                                          71,109,213.01                         79,659,527.26
Total                                                     1,376,209,527.01                        1,444,175,262.08
    (2) Significant accounts payables aging over one year
      No significant accounts payables aging over 1 year are recorded in the ending balance.
                                                                                                            Unit: CNY
                 Item                           Closing balance                           Opening balance
Advance from customers                                    9,296,856,026.01                       11,645,306,829.55
Discounts and allowances payable to
the distributors that have not yet been                   4,444,691,651.98                        4,159,214,600.62
settled
Total                                                    13,741,547,677.99                       15,804,521,430.17
The company is required to comply with the disclosure requirements of the food and alcohol manufacturing
related industries in the "Shenzhen Stock Exchange Listed Companies Self Regulatory Guidelines No. 3-
Industry Information Disclosure"
    (1) Employee benefits payable shown as follows:
                                                                                                            Unit: CNY
          Item               Opening balance   Increase in current      Decrease in current       Closing balance
                                                      period                     period
Short-term benefits           536,524,921.85      3,157,749,362.07         3,211,935,603.97          482,338,679.95
Post-employment
benefits-defined                  192,207.31        232,881,595.55              232,420,744.08           653,058.78
contribution plans
Total                         536,717,129.16      3,390,630,957.62         3,444,356,348.05          482,991,738.73
    (2) Short-term employee benefits payable shown as follows:
                                                                                                             Unit: CNY
                                                Increase in current      Decrease in current
         Item               Opening balance                                                        Closing balance
                                                      period                     period
Wages,        bonuses,
allowances         and        536,383,317.12      2,801,055,303.36         2,856,412,693.81          481,025,926.67
grants
Employees¡¯ welfare                                    82,968,887.25             82,968,887.25
Social       insurance
premiums
Including:      Medical
Insurance
Work-related       injury
insurance
Maternity      insurance
premium
Housing funds                     120,629.80        147,250,554.12              146,421,363.92           949,820.00
Labor            union
expenditures       and
employee education
funds
Total                         536,524,921.85      3,157,749,362.07         3,211,935,603.97          482,338,679.95
    (3) Defined Contribution Plan shown as follows:
                                                                                                             Unit: CNY
                                                Increase in current      Decrease in current
         Item               Opening balance                                                        Closing balance
                                                      period                     period
Basic        endowment
insurance premium
Unemployment
insurance premium
Total                             192,207.31        232,881,595.55              232,420,744.08           653,058.78
                                                                                                             Unit: CNY
                    Item                         Closing balance                           Opening balance
Value-added tax                                                234,202,860.34                        175,920,362.08
Consumption tax                                            229,128,457.84                          554,560,829.94
Enterprise income tax                                      563,184,112.71                        2,200,631,701.75
Individual Income Tax                                      46,912,680.60                            30,310,775.71
Urban maintenance and construction tax                     19,917,118.57                            26,222,879.17
Land use tax                                               15,177,169.95                            23,861,228.61
Property tax                                                 4,438,533.76                             6,464,914.93
Education      Surcharge   and   Local
Education Surcharge
Stamp tax                                                    1,827,899.05                             1,556,153.30
Integrated funds                                                   532.45                                   6,505.75
Other tax                                                    2,484,661.40                             2,333,399.20
Total                                                    1,136,695,805.18                        3,061,385,171.71
                                                                                                            Unit: CNY
                   Item                       Closing balance                          Opening balance
Other payables                                           1,854,922,517.23                        1,808,838,882.26
Total                                                    1,854,922,517.23                        1,808,838,882.26
  (1) Other payables
  a) Categories by nature
                                                                                                            Unit: CNY
                   Item                       Closing balance                          Opening balance
Dealer deposit                                             416,896,278.21                          538,078,762.11
Dealer risk pledged deposit                                672,664,279.37                          685,270,708.36
Accrued expenses                                           508,608,287.32                          351,345,770.61
Quality guarantee deposit and
performance deposit
Other payables                                             90,532,787.12                           102,947,100.75
Total                                                    1,854,922,517.23                        1,808,838,882.26
    b) Other important payables aging more than 1 year
                                                                                                            Unit: CNY
                   Item                       Closing balance               Reasons for being unpaid or written-off
Dealer risk pledged deposit and dealer                                       Dealer risk pledged deposit and dealer
deposit                                                                               deposit not yet due
Total                                                      611,870,057.78
                                                                                                            Unit: CNY
                   Item                       Closing balance                          Opening balance
 Lease liabilities due within one year                     23,684,406.75                              8,405,846.77
 Total                                                     23,684,406.75                              8,405,846.77
                                                                                                                      Unit: CNY
                      Item                               Closing balance                            Opening balance
Output VAT to be transferred                                            889,853,420.31                         1,491,462,609.44
Notes endorsed but not
derecognized
Total                                                              1,312,248,150.31                            2,039,264,937.72
  (1) Long-term loans by category
                                                                                                                      Unit: CNY
                      Item                               Closing balance                            Opening balance
Credit loans                                                                                                          36,360.00
Total                                                                                                                 36,360.00
                                                                                                                      Unit: CNY
                       Item                               Closing balance                            Opening balance
  Lease liabilities                                                        3,715,300.93                            10,729,824.19
  Total                                                                    3,715,300.93                            10,729,824.19
                                                                                                                      Unit: CNY
                       Item                               Closing balance                            Opening balance
 Special accounts payables                                               196,459,834.53                           196,694,194.53
 Total                                                                   196,459,834.53                           196,694,194.53
   (1) Special accounts payables
                                                                                                                      Unit: CNY
                                                    Increase in            Decrease in
          Item               Opening balance                                                 Closing balance         Reason
                                                current period           current period
 Compensation
 for replacement
 of employee
 status
 Total                        196,694,194.53                                 234,360.00       196,459,834.53
                                                                                                                      Unit: CNY
                                      Opening            Increase in          Decrease in
               Item                                                                             Closing balance        Reason
                                      balance          current period       current period
 Government grants                  77,242,500.00      24,000,000.00           8,965,333.33       92,277,166.67
 Total                              77,242,500.00      24,000,000.00           8,965,333.33       92,277,166.67          --
   Projects involving government grants:
                                                                                                                                                                      Unit: CNY
                                                                    Non-operating                      Cost reduction
                                   Opening          Increase in                      Other income in                                                          Relevant to asset or
            Liability item                                            income in                          in current     Other changes   Closing balance
                                    balance        current period                    current period                                                                 income
                                                                    current period                        period
Hubei Lihuacun liquor industry
liquor brewing, filling project
supporting facilities
construction subsidies
Special fund for packaging
logistics project in Shuanggou     9,000,000.00                                         3,000,000.00                                           6,000,000.00          Asset
new area
Special fund for Harbin Binzhou
Distillery construction project
Shuanggou sewage treatment
project
The second batch of provincial-
level industrial and information
industry transformation and
upgrading special funds in 2020
Supplementary funds for the
Shuanggou Pottery Tan                               24,000,000.00                                                                             24,000,000.00          Asset
Warehouse project
Total                              77,242,500.00    24,000,000.00                       8,965,333.33                                          92,277,166.67
                                                                                                                          Unit: CNY
                                                 Increases/decreases in the current period (+, -)
                                                                        Conversion of
                 Opening balance      Issuance of     Share                                                          Closing balance
                                                                      reserves funds into   Others     Subtotal
                                      new shares     donation
                                                                            shares
Total shares       1,506,988,000.00                                                                                 1,506,988,000.00
                                                                                                                          Unit: CNY
                                                     Increase in current        Decrease in current
         Item                Opening balance                                                                  Closing balance
                                                           period                       period
Share premium                   741,502,550.13                                                                      741,502,550.13
Other capital reserves           40,733,820.01           122,414,308.77                                             163,148,128.78
Total                           782,236,370.14           122,414,308.77                                             904,650,678.91
T
he company confirms the ESOP plan fee to increase the capital reserves-other capital reserves of RMB
                                                                                                                          Unit: CNY
                                                     Increase in current         Decrease in current
         Item                Opening balance                                                                      Closing balance
                                                           period                       period
Share repurchase                 56,278,680.79                                                                       56,278,680.79
Total                            56,278,680.79                                                                       56,278,680.79
                                                                                                                                                                  Unit: CNY
                                                                                           Current period
                                                             Less: Previously        Less: previously                                        Amount
                                            Amount in                                                                       Amount
                             Opening                        recognized in other    recognized in other                                     attribute to
            Item                           current period                                                     Less:        attribute to                     Closing balance
                             balance                         comprehensive        comprehensive income                                    non-controlling
                                           before income                                                    income tax   parent company
                                                            income transferred    transferred to retained                                  shareholders
                                                tax                                                                         after tax
                                                              to profit or loss          earnings                                            after tax
  II. Other
  comprehensive
  income that will be      -5,843,990.29   7,707,584.12           -153,503.58                                             7,825,669.24        35,418.46       1,981,678.95
  reclassified to profit
  or loss
  Including: other
  comprehensive
  income will be
  reclassified into         -153,503.58                           -153,503.58                                               153,503.58
  profits or losses
  under the equity
  method
  Effect on
  conversion of
  financial
                           -5,690,486.71   7,707,584.12                                                                   7,672,165.66        35,418.46       1,981,678.95
  statements
  denominated in
  foreign currencies
  Total other
  comprehensiv             -5,843,990.29   7,707,584.12           -153,503.58                                             7,825,669.24        35,418.46       1,981,678.95
  e income
Other notes, including adjustments for valid portion of the gains and or losses from cash flow hedging transferring to initial recognition amount of projects hedged.
                                                                                                                          Unit: CNY
                                                           Increase in current    Decrease in current
            Item                    Opening balance                                                             Closing balance
                                                                 period                   period
 Statutory          surplus
 reserves
 Total                                  753,494,000.00                                                            753,494,000.00
                                                                                                                          Unit: CNY
                      Item                                   Current period                             Previous period
 Retained Earnings before adjustment at
 the end of the last year
 Retained Earnings after adjustment
 at the beginning of year
 Add: net profit attributable to
 owners      of      the      parent
 company      for    the      current
 period
 Less: Dividends payable on common
 shares
 Retained earnings at the end of the
 current reporting period
Notes for adjusting undistributed profits at the beginning of the period:
(1) Retained Earnings at the beginning of the period were affected by CNY0.00 due to the retrospective
adjustment under the Accounting Standards for Business Enterprises and related new regulations.
(2) Retained Earnings at the beginning of the period were affected by CNY0.00 due to changes in accounting
policies.
(3) Undistributed profits at the beginning of the period were affected by CNY0.00 due to the correction of
significant accounting errors.
(4) Retained Earnings s at the beginning of the period were affected by CNY0.00 due to changes in the scope of
consolidation resulting from business combination involving enterprises under common control.
(5) Retained Earnings at the beginning of the period were affected by CNY0.00B in total due to other
adjustments
                                                                                                                          Unit: CNY
                                             Current period amount                            Previous period amount
            Item
                                   Operating revenue          Cost of sales        Operating revenue              Cost of sales
 Operating incomes                 29,499,863,067.64        7,214,917,301.54       24,638,674,089.57            5,702,863,048.47
 Other            operating
 income
 Total                             30,104,896,186.70        7,645,533,264.72       25,350,178,204.45            6,255,397,564.10
Whether the net profit is negative or not after deducting non-recurring profits and losses by audit,
¡õ Yes ¡Ì No
Information on revenue:
                                                                                                      Unit: CNY
                                                                       Current period
   Category of Contra          Segment 1           Segment 2                                      Total
                                                                           amount
  Commodity type
  Including:
 liquor                                                                29,499,863,067.64     29,499,863,067.64
 Other                                                                    605,033,119.06        605,033,119.06
  By operating regions
  Including:
  Type of market or
  customer
  Including:
  Type of contract
  Including:
  By     the    time    of
  commodity transfer
  Including:
  By the contract time
  Including:
  By the selling channel
  Including:
 Total                                                                 30,104,896,186.70     30,104,896,186.70
Information regarding performance obligations
N/A
Information relating to the transaction price apportioned to the remaining performance obligations:
At the end of this report, the amount of revenue corresponding to the performance obligations with the
contracts signed but not performed or not performed is CNY 9,296,856,026.01, of which CNY 9,296,856,026.01
is expected to be recognized in 2023, and CNY 0.00 is expected to be recognized in 2024.
                                                                                                      Unit: CNY
                     Item                    Current period amount               Previous period amount
 Consumption tax                                        3,611,101,428.65                      3,445,365,868.93
 Urban maintenance and construction tax                     340,401,921.12                      300,870,065.44
 Educational surcharge                                      337,972,048.98                      298,966,722.11
 Property tax                                               65,064,008.57                        70,430,075.52
 Land use tax                                               18,379,939.08                        18,361,571.79
 Vehicle and vessel tax                                           8,875.20                             8,508.00
Stamp tax                                            14,303,404.79                  13,969,946.24
Environmental protection tax                           1,080,778.49                      9,370.09
Total                                            4,388,312,404.88                4,147,982,128.12
                                                                                       Unit: CNY
                    Item              Current period amount           Previous period amount
Advertising and promotion expense                2,414,204,544.39                1,911,827,032.90
Payroll                                          1,177,066,920.45                1,065,844,674.57
Travel expense                                       433,273,104.21                390,432,690.88
Labor expense                                        47,961,453.63                  88,722,961.18
E-commerce expenses                                  33,851,096.47                  37,801,331.20
Other expense                                        72,783,688.70                  49,736,198.81
Total                                            4,179,140,807.85                3,544,364,889.54
                                                                                       Unit: CNY
                    Item              Current period amount           Previous period amount
Payroll                                              774,749,241.22                738,382,078.49
Travel expense                                       14,520,700.63                  35,607,123.11
Office allowance                                       7,460,258.87                  7,389,752.82
Water, electric and steam expense                    66,592,027.85                  57,175,472.37
Business entertainment expense                       21,636,429.90                  25,674,580.41
Depreciation cost                                    422,769,117.64                430,504,129.04
Repair charge                                        39,597,394.14                  43,706,934.03
Amortization of intangible assets                    58,879,062.62                  56,541,702.98
Vehicle use expense                                  19,074,484.31                  21,827,557.47
Shipping and handling cost                           25,978,095.37                  31,039,417.23
ESOP plan fee                                        119,528,186.15                 39,741,779.13
Other expense                                        364,888,297.05                342,489,612.10
Total                                            1,935,673,295.75                1,830,080,139.18
                                                                                       Unit: CNY
                    Item              Current period amount           Previous period amount
Material expenses                                    121,940,738.99                126,609,051.53
Payroll                                              84,197,126.24                  84,819,165.34
Other expense                                        47,437,111.16                  47,029,885.76
Total                                                253,574,976.39                258,458,102.63
                                                                                       Unit: CNY
                   Item                             Current period amount                     Previous period amount
Interest expense                                                       694,325.50                               603,755.58
Bill discount expense                                                5,887,512.78                            28,742,496.43
Less: Interest income                                              645,806,427.40                           433,923,395.67
Plus: Losses from currency exchange
(Less: income)
Plus: Bank charges                                                   2,418,036.43                             2,236,837.73
Total                                                             -636,470,105.91                         -399,145,509.96
                                                                                                                Unit: CNY
        Sources of other income                     Current period amount                     Previous period amount
Government grants received                                         60,162,525.57                             87,366,302.47
Withholding personal tax commission                                  3,610,292.93                             3,484,445.51
Total                                                              63,772,818.50                             90,850,747.98
                                                                                                                Unit: CNY
                          Item                               Current period amount              Previous period amount
Investment       income    from     long-term   equity
investments under the equity method
Investment income from disposing long- term equity
                                                                            -1,052,106.17
investments
Investment income from financial assets held for
trading during the holding period
Investment income from disposal of financial
assets held for trading
Income from derecognition of financial assets measured
                                                                            -13,584,025.11
at amortized cost
Total                                                                       425,865,631.53                 900,613,478.22
                                                                                                                Unit: CNY
  Gains/losses of changes in fair value            Current period amount                     Previous period amount
Held-for-trading financial assets                                 -318,331,123.43                         -721,212,806.81
Total                                                             -318,331,123.43                         -721,212,806.81
                                                                                                                Unit: CNY
                          Item                               Current period amount              Previous period amount
Credit impairment losses of other receivables                                   819,879.51                   12,801,955.01
Credit impairment losses of accounts receivables                            -1,565,965.47                      -174,467.73
Total                                                                         -746,085.96                    12,627,487.28
                                                                                                                   Unit: CNY
                           Item                                  Current period amount            Previous period amount
Losses on inventory devaluation and Contract assets
                                                                              -2,333,823.54                    -7,175,293.45
impairment loss
Total                                                                         -2,333,823.54                    -7,175,293.45
                                                                                                                   Unit: CNY
        Gains from disposal of assets                Current period amount                     Previous period amount
Gains from disposal of fixed assets                                     1,846,300.27                               224,432.51
Gains from disposal of intangible assets                                                                           -39,747.54
Total                                                                   1,846,300.27                               184,684.97
                                                                                                                   Unit: CNY
                                                                                                      Amount included in
              Item                      Current period amount         Previous period amount      non-recurring profit and loss
                                                                                                       in current period
Liquidated damages income                         6,966,329.61                   7,192,792.01                   6,966,329.61
Compensation payment                             10,662,216.44                  11,339,388.88                  10,662,216.44
Account payables that
are unable to pay
Others                                            4,493,984.81                   2,165,592.11                   4,493,984.81
Total                                            25,586,332.71                  20,718,383.00                  25,586,332.71
                                                                                                                   Unit: CNY
                                                                                                      Amount included in
              Item                      Current period amount         Previous period amount      non-recurring profit and loss
                                                                                                       in current period
Donation expenses                                12,401,802.24                  42,083,802.00                  12,401,802.24
Losses from disposal of
fixed asset
Integrated fund                                      66,741.89                      72,950.74
Reparations                                          15,537.00                   3,971,839.00                       15,537.00
Others                                           12,341,516.75                   6,218,870.88                  12,341,516.75
Total                                            31,507,701.73                  63,220,053.35                  31,440,959.84
  (1) Details of income tax expense
                                                                                                                   Unit: CNY
                  Item                             Current period amount                   Previous period amount
Income tax for the current reporting
period
Deferred income tax expenses                                         -192,562,915.79                       -616,983,716.56
Total                                                            3,113,885,719.88                      2,433,610,121.20
  (2) Adjustment for accounting profit and income tax expense
                                                                                                                Unit: CNY
                             Item                                                  Current period amount
Total profit                                                                                          12,503,283,891.37
Income tax expenses determined by statutory/applicable
tax rate
Impact from subsidiaries¡¯ different tax rates                                                                1,392,608.98
Adjust for impact from income tax expense in previous
                                                                                                            -9,380,792.40
period
Tax effect of non-taxable income                                                                            -6,287,068.37
Impact of non-deductible costs, expenses and losses                                                          9,779,208.84
Deductible from deferred tax assets in previous period                                                      -1,036,623.82
Impact of deductible temporary differences or deductible
losses for which no deferred income tax assets is                                                           52,758,055.68
recognized for the current period
Impact of use unrecognized deferred income tax assets in the
                                                                                                              -943,743.09
prior period
Impact of additional deduction of R&D expenses                                                             -62,107,915.85
Other                                                                                                        3,891,017.07
Income tax expense                                                                                     3,113,885,719.88
    Refer to note for details.
  (1) Cash received from other operation activities
                                                                                                                Unit: CNY
                  Item                             Current period amount                   Previous period amount
Interest income                                                       398,200,995.54                        325,095,935.92
 Liquidated damages income                                              6,966,329.61                          7,192,792.01
Government grants                                                     75,197,192.24                         78,609,302.47
Charges of withholding individual
income tax
Others                                                                66,782,450.92                         314,046,435.75
Total                                                                 550,757,261.24                        728,428,911.66
  (2) Cash paid for other operating activities
                                                                                                   Unit: CNY
                    Item                      Current period amount             Previous period amount
Transportation fee                                             28,032,045.07                    32,454,361.50
Advertising promotion expense                               2,243,614,041.05                1,875,126,011.49
Repair charge                                                  39,389,355.92                    40,144,581.28
Travel expense                                                 435,008,309.39                  431,546,399.27
Entertainment expense                                          23,994,929.18                    25,897,841.15
Labor expense                                                  91,759,676.26                   135,250,366.93
Others                                                         606,935,645.43                  462,537,339.25
Total                                                       3,468,734,002.30                3,002,956,900.87
  (3) Cash received from other financing activities
                                                                                                   Unit: CNY
                    Item                      Current period amount             Previous period amount
Repurchase of ESOP shares                                                                      945,850,000.00
Total                                                                                          945,850,000.00
  (4) Cash paid for other financing activities
                                                                                                   Unit: CNY
                    Item                      Current period amount             Previous period amount
Lease payment                                                  15,204,742.60                     6,587,740.77
Total                                                          15,204,742.60                     6,587,740.77
  (1) Supplementary information about of cash flow statement
                                                                                                   Unit: CNY
                     Item                        Current period amount           Previous period amount
Reconciliation of net profit to cash
flow from operating activities
Net profit                                                  9,389,398,171.49                7,512,817,397.48
Add: Impairment of assets                                        3,079,909.50                   -5,452,193.83
        Fixed assets depreciation                              678,868,349.45                  693,049,497.12
        Right-of-use assets depreciation                       11,177,822.64                     5,509,542.40
        Amortization of intangible assets                      58,842,693.52                    56,541,702.98
        Amortization of long-term
        deferred expenses
        Gains on disposal of fixed
        assets, intangible assets and                          -1,846,300.27                      -184,684.97
        other long-term assets
        Fixed asset scrapping losses                             6,682,103.85                   10,872,590.73
        Losses (gains) from changes in fair
   value
        Financial expense                                        1,030,772.28                    3,798,551.55
       Investments income                                                  -425,865,631.53                       -900,613,478.22
        Decrease in deferred tax asset                                     -112,159,628.50                       -460,035,492.67
        Increase in deferred tax liabilities                                -80,335,992.03                       -156,957,017.00
        Decrease in inventory                                              -922,733,979.02                    -1,956,133,735.33
        Decrease in operation receivables                                  -371,555,344.91                       -230,907,969.63
        Increase in operation payables                               -4,789,890,533.79                        10,090,059,214.80
       Others                                                              -119,425,753.84                        -69,564,493.37
Net cash flow from operating activities                               3,647,623,952.19                        15,318,165,480.53
Significant investing and financing
activities not Involving cash flow:
   Conversion of debt into capital
   Convertible corporate bonds maturing
within one year
   Assets under leases
Net change in cash &cash equivalents
Closing balance of cash                                              24,019,016,540.72                        20,847,003,550.37
Less: Opening balance of cash                                        20,847,003,550.37                          7,243,186,362.29
Add: Closing balance of cash equivalents
Less:      Opening      balance     of    cash
equivalents
Net Increase (decrease) in cash and
cash equivalents
  (2) Composition of cash and cash equivalents
                                                                                                                       Unit: CNY
                       Item                                 Closing balance                           Opening balance
Cash                                                                 24,019,016,540.72                        20,847,003,550.37
Including: cash on hand                                                                                                  3,549.27
             Unrestricted bank deposit                               23,974,964,633.03                        20,785,927,709.41
             Cash equivalents                                               44,051,907.69                          61,072,291.69
Closing balance of cash and cash
Equivalents
  (1) Foreign currency balance
                                                                                                                       Unit: CNY
                                         Balance in foreign currency at                           Balance of CNY converted at the
                Item                                                              Exchange rate
                                         the end of the reporting period                            end of the reporting period
Cash and cash equivalents
Including £ºUSD                                               2,325,513.37       6.9646                             16,196,270.44
                EUR
                HKD                                        11,621,517.91        0.8933                             10,381,501.95
                CLP                                       471,084,627.00        0.008131                            3,830,608.28
 Accounts receivables
 Including £ºUSD
              EUR
              HKD
 Long-term loans
 Including £ºUSD
              EUR
              HKD
    (2) Description of the overseas business entity, including the important foreign business entity, which
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         ¡õN/A
                                                                       Functional
         Foreign business entities               Operation site                           Choosing reason
                                                                       currency
                                                                                        Currency in the main
 JSSJ Industry (HK) Holdings Co., Limited      Hong Kong, China            HKD        economic environment of
                                                                                         business operations
                                                                                        Currency in the main
 Hong Kong Zhaiugo International Trade Co.,
                                               Hong Kong, China            HKD        economic environment of
 Ltd.
                                                                                        business operations
                                                                                        Currency in the main
ZYG E-Commerce HK Limited                      Hong Kong, China            HKD        economic environment of
                                                                                         business operations
                                                                                        Currency in the main
ZYG LTD                                         Cayman Islands             USD        economic environment of
                                                                                         business operations
                                                                                        Currency in the main
YangHe International Investment Ltd           British Virgin Islands       USD        economic environment of
                                                                                         business operations
                                                                                        Currency in the main
ZYG TECHNOLOGY INVESTMENT LTD                 British Virgin Islands       USD        economic environment of
                                                                                         business operations
                                                                                        Currency in the main
YANGHE CHILE SPA                                Santiago, Chile            CLP        economic environment of
                                                                                        business operations
                                                                                        Currency in the main
Yanghe Hong Kong Distillery Co., Ltd.         Hong Kong, China             HKD        economic environment of
                                                                                         business operations
  (1) Details of government grants
                                                                                                              Unit: CNY
                                                                                                  Amount booked in
                    Category                          Amount            Financial Report Items
                                                                                                 current profit and loss
Industrial development guidance funds                   30,095,665.00        Other income                   30,095,665.00
Steady post subsidy                                     11,025,458.27        Other income                   11,025,458.27
training subsidy                                        1,548,650.00         Other income                    1,548,650.00
Reward funds for local financial and
economic contribution
Funding for the 2021 Provincial Industrial
and       Information     Technology      Industry
Transformation Project of Sihong County
Finance Bureau
Sihong County Finance Bureau Treasury
Jiangsu      Province     Intellectual    Property      1,000,000.00         Other income                    1,000,000.00
Industrial Trademark Cultivation Award
Construction Special Fund
Funding for the construction of the liquor
capital
Yanghe      Xinqu       2017   and     2018    Coal
Reduction Work Award and Supplementary                    738,000.00         Other income                       738,000.00
Funds
Protection Special Fund
Special Fund for Tourism Development of
Sihong County Bureau of Culture, Radio,                   500,000.00         Other income                       500,000.00
and Television
Park rent subsidy                                         436,644.87         Other income                       436,644.87
Incentive funds for the 2021 Sihong County
Industrial Conference of the State Treasury               300,000.00         Other income                       300,000.00
of Sihong County Finance Bureau
Funding      for    Municipal        Science   and
Technology Plan Projects in 2022
funds for industrial enterprises above                    200,000.00         Other income                       200,000.00
designated size
Award
Others                                                    557,074.10         Other income                       557,074.10
Transfer of current deferred earnings                   8,965,333.33         Other income                    8,965,333.33
Total                                                   60,162,525.57                                       60,162,525.57
VIII. Changes in consolidated scope
     Explain the change of merger scope caused by other reasons (such as new subsidiary, liquidation
subsidiary, etc.) and the relevant situation
     (1) In March 2022, the company jointly invested 40 million yuan with Tibet Earth Third Pole Industry
Development Co., Ltd., Lhasa Pure Land Industry Investment and Development Group Co., Ltd., and Shenzhen
Baoneng Food Technology Group Co., Ltd. to establish Tibet Earth Third Pole Liquor Industry Co., Ltd. The
company contributed 204 million yuan, accounting for 51% of its registered capital; Tibet Earth Third Pole
Industrial Development Co., Ltd. invested 72 million yuan, accounting for 18% of its registered capital; Lhasa
Pure Land Industry Investment and Development Group Co., Ltd. invested 64 million yuan, accounting for 16% of
its registered capital; Shenzhen Baoneng Food Technology Group Co., Ltd. has invested 60 million yuan,
accounting for 15% of its registered capital. It will be included in the consolidation scope of the consolidated
financial statements starting from March 2022.
     (2) In August 2022, the holding subsidiary Kweichow Moutai Guijiu Liquor Industry Co., Ltd. invested 500000
yuan to establish Guizhou Guijiu Liquor Industry Operation Co., Ltd., accounting for 100% of its registered capital.
It will be included in the consolidation scope of the consolidated financial statements starting from August 2022.
     (3) In August 2022, the company subscribed 10 million yuan to establish Jiangsu Ulan Shangyin Catering
Management Co., Ltd., accounting for 100% of its registered capital. It will be included in the consolidation scope
of the consolidated financial statements starting from August 2022.
     (4) In August 2022, the company subscribed a capital of 300 million yuan and established Jiangsu Yanghe
Dream Investment Management Co., Ltd., accounting for 100% of its registered capital. It will be included in the
consolidation scope of the consolidated financial statements starting from August 2022.
     (5) In September 2022, the controlling subsidiary Jiangsu Yanghe Dream Investment Management Co., Ltd.
invested 10 million yuan to establish Jiangsu Yanghe Blue Investment Management Co., Ltd., accounting for
statements starting from September 2022.
     (1) In September 2022, holding subsidiary Jiangsu Kelite Biotechnology Research Institute Co., Ltd cancelled
in the current reporting period and no longer included in the scope of consolidation from October 2022.
     (2) In November 2022, holding subsidiary Guizhou Guijiu Liquor Operations Management Co., Ltd cancelled
in the current reporting period and no longer included in the scope of consolidation from December 2022.
IX.         Interests in other entities
       (1) Group composition:
                            Major                                              Shareholding
        Name of                           Place of         Nature of
                           business                                                                 Acquisition method
       subsidiaries                     registration       business        Direct     Indirect
                           location
                        Nanjing,
Nanjing Yanghe                        Nanjing, Jiangsu
                        Jiangsu                          Commerce                       100.00%   Establishment
Blue Classic Co., Ltd                 province
                        province
Beijing Yanghe
                        Fengtai,
Commerce and                          Fengtai, Beijing   Commerce                       100.00%   Establishment
                        Beijing
Trade Co., Ltd.
Jiangsu Huaqu           Nanjing,
                                      Nanjing, Jiangsu
Wine Group Co.,         Jiangsu                          Commerce                        97.00%   Establishment
                                      province
Ltd.                    province
Suqian Tianhai          Suqian,
                                      Suqian, Jiangsu
Commerce and            Jiangsu                          Commerce                       100.00%   Establishment
                                      province
Trade Co., Ltd.         province
Suqian Yanghe           Suqian,
                                      Suqian, Jiangsu
Guibinguan Co.,         Jiangsu                          Hotel industry   100.00%                 Establishment
                                      province
Ltd.                    province
                        Suqian,
Su Wine Group                         Suqian, Jiangsu
                        Jiangsu                          Commerce          83.63%        16.37%   Establishment
Trade Co., Ltd                        province
                        province
Jiangsu Yanghe
                        Suqian,
Liquor Operation                      Suqian, Jiangsu
                        Jiangsu                          Commerce         100.00%                 Establishment
Management Co.,                       province
                        province
Ltd.
Jiangsu Shuanggou       Sihong,
                                      Sihong, Jiangsu
Liquor Operation        Jiangsu                          Commerce                       100.00%   Establishment
                                      province
Co., Ltd.               province
Jiangsu Dongdi          Suqian,
                                      Suqian, Jiangsu
Union International     Jiangsu                          Commerce         100.00%                 Establishment
                                      province
Trade Co., Ltd.         province
Jiangsu
                        Suqian,
Dongdixinghui                         Suqian, Jiangsu
                        Jiangsu                          Commerce         100.00%                 Establishment
International Trade                   province
                        province
Co., Ltd.
                        Suqian,
Suqian Blue Dream                     Suqian, Jiangsu
                        Jiangsu                          Commerce                       100.00%   Establishment
Trade Co., Ltd.                       province
                        province
Siyang Lantu Liquor     Siyang,       Siyang, Jiangsu
                                                         Commerce         100.00%                 Establishment
Operation Co., Ltd.     Jiangsu       province
                        province
JSSJ Industry (HK)
                        Hong       Kong,   Hong Kong£¬
Holdings Co.,                                                 CORP                         100.00%   Establishment
                        China
Limited                                    China
Hubei Lihuacun          Shiyan, Hubei      Yunxian, Hubei
                                                              Commerce                     100.00%   Establishment
Trade Co., Ltd.         province           province
                                                                                                     Business combinations
Jiangsu Shuanggou       Sihong,                               Liquor
                                           Sihong, Jiangsu                                           involving enterprises
Distillery Stock Co.,   Jiangsu                               manufacture         99.99%    0.01%
                                           province                                                  not under common
Ltd.                    province                              and sales
                                                                                                     control
                                                                                                     Business combinations
Sihong Shuanggou        Sihong,                               Waste
                                           Sihong, Jiangsu                                           involving enterprises
Antai Waste             Jiangsu                               material                     100.00%
                                           province                                                  not under common
Recycling Co., Ltd.     province                              recycle
                                                                                                     control
                                                                                                     Business combinations
Hubei Lihuacun                                                Process liquor,
                        Shiyan, Hubei      Yunxian, Hubei                                            involving enterprises
Liquor Industry Co.,                                          wine and fruit     100.00%
                        province           province                                                  not under common
Ltd.                                                          wine
                                                                                                     control
                                                              Manufacture
                                                                                                     Business combinations
Ningxiang               Ningxiang,                            and sale of
                                           Ningxiang,                                                involving enterprises
Miluochun Liquor        Hunan                                 liquor      and    100.00%
                                           Hunan province                                            not under common
Industry Co., Ltd.      province                              compound
                                                                                                     control
                                                              wine
                                                                                                     Business combinations
                        Binxian,           Binxian,
Harbin Binzhou                                                                                       involving enterprises
                        Heilongjiang       Heilongjiang       Liquor-making      100.00%
Distillery Co., Ltd.                                                                                 not under common
                        province           province
                                                                                                     control
                                                              Assets/invest
Su Wine Group
                        Nanjing,                              ment
Jiangsu Wealth                             Nanjing, Jiangsu
                        Jiangsu                               management,        100.00%             Establishment
Management Co.,                            province
                        province                              information
Ltd.
                                                              consultation
Ningxiang               Ningxiang,
                                           Ningxiang,
Miluochun Trade         Hunan                                 Commerce                     100.00%   Establishment
                                           Hunan province
Co., Ltd.               province
                        Suqian,
Suqian Blue Sky                            Suqian, Jiangsu
                        Jiangsu                               Commerce                     100.00%   Establishment
Trade Co., Ltd.                            province
                        province
                                                              Liquor,
                                                              compound
Shiyan Yunyang
                        Shiyan, Hubei      Shiyan, Hubei      wine,     health
Lihuacun Package                                                                           100.00%   Establishment
                        province           province           wine
Service Co.,Ltd.
                                                              packaging
                                                              service
                                                         Network
                                                         technology
                                                         development,
Jiangsu Lion and      Nanjing,                           technical
                                      Nanjing, Jiangsu
Sheep Network         Jiangsu                            consultation,   100.00%             Establishment
                                      province
Technology Co.,Ltd.   province                           technical
                                                         services;
                                                         Software
                                                         development
                                                                                             Business combinations
Jiangsu Zhaiugou      Nanjing,
                                      Nanjing, Jiangsu                                       involving enterprises
E-commerce Co.,       Jiangsu                            Commerce                  100.00%
                                      province                                               not under common
Ltd                   province
                                                                                             control
                                                         Freight                             Business combinations
NanjingTongmeng       Nanjing,
                                      Nanjing, Jiangsu   Transport,                          involving enterprises
City Logistics Co.,   Jiangsu                                                       99.99%
                                      province           Warehouse                           not under common
Ltd.                  province
                                                         service                             control
                                                         Freight                             Business combinations
Nanjing Jinling       Nanjing,
                                      Nanjing, Jiangsu   Transport,                          involving enterprises
Tongmeng City         Jiangsu                                                       51.00%
                                      province           Warehouse                           not under common
Logistics Co., Ltd.   province
                                                         service                             control
                                                         Freight                             Business combinations
Huaian Tongmeng       Huaian,
                                      Huaian, Jiangsu    Transport,                          involving enterprises
City Logistics Co.,   Jiangsu                                                       51.00%
                                      province           Warehouse                           not under common
Ltd.                  province
                                                         service                             control
Changzhou                                                Freight                             Business combinations
                      Changzhou,
Jiezzhong                             Changzhou,         Transport,                          involving enterprises
                      Jiangsu                                                       51.00%
Tongmeng City                         Jiangsu province   Warehouse                           not under common
                      province
Logistics Co., Ltd.                                      service                             control
                                                         Freight                             Business combinations
Nantong Tongmeng      Nantong,
                                      Nantong,           Transport,                          involving enterprises
City Logistics Co.,   Jiangsu                                                       51.00%
                                      Jiangsu province   Warehouse                           not under common
Ltd.                  province
                                                         service                             control
                                                         Freight                             Business combinations
Suzhou Tongmeng       Suzhou,
                                      Suzhou, Jiangsu    Transport,                          involving enterprises
City Logistics Co.,   Jiangsu                                                       51.00%
                                      province           Warehouse                           not under common
Ltd.                  province
                                                         service                             control
                                                         Freight                             Business combinations
Taizhou Tongmeng      Taizhou,
                                      Taizhou, Jiangsu   Transport,                          involving enterprises
City Logistics Co.,   Jiangsu                                                       51.00%
                                      province           Warehouse                           not under common
Ltd.                  province
                                                         service                             control
Wuxi Tongmeng                                            Freight                             Business combinations
                      Wuxi, Jiangsu   Wuxi, Jiangsu
City Logistics Co.,                                      Transport,                 51.00%   involving enterprises
                      province        province
Ltd.                                                     Warehouse                           not under common
                                                            service                          control
                                                            Freight                          Business combinations
Yancheng              Yancheng,
                                         Yancheng,          Transport,                       involving enterprises
Tongmeng City         Jiangsu                                                       51.00%
                                         Jiangsu province   Warehouse                        not under common
Logistics Co., Ltd.   province
                                                            service                          control
                                                            Freight                          Business combinations
Zhenjiang             Zhenjiang,
                                         Zhenjiang,         Transport,                       involving enterprises
Tongmeng City         Jiangsu                                                       51.00%
                                         Jiangsu province   Warehouse                        not under common
Logistics Co., Ltd.   province
                                                            service                          control
                                                            Freight                          Business combinations
Yangzhou              Yangzhou,
                                         Yangzhou,          Transport,                       involving enterprises
Tongmeng City         Jiangsu                                                       53.00%
                                         Jiangsu province   Warehouse                        not under common
Logistics Co., Ltd.   province
                                                            service                          control
                                                            Freight                          Business combinations
Suqian Tongmeng       Suqian,
                                         Suqian, Jiangsu    Transport,                       involving enterprises
City Logistics Co.,   Jiangsu                                                       51.00%
                                         province           Warehouse                        not under common
Ltd.                  province
                                                            service                          control
                                                            Freight                          Business combinations
Pizhou Tongmeng       Xuzhou,
                                         Xuzhou, Jiangsu    Transport,                       involving enterprises
City Logistics Co.,   Jiangsu                                                       51.00%
                                         province           Warehouse                        not under common
Ltd.                  province
                                                            service                          control
Lianyungang                                                 Freight                          Business combinations
                      Lianyungang,
Huaxing Tongmeng                         Lianyungang,       Transport,                       involving enterprises
                      Jiangsu                                                       51.00%
City Logistics Co.,                      Jiangsu province   Warehouse                        not under common
                      province
Ltd.                                                        service                          control
                                                                                             Business combinations
Jiangsu Zhaibianli    Nanjing,
                                         Nanjing, Jiangsu                                    involving enterprises
E-commerce Co.,       Jiangsu                               Commerce               100.00%
                                         province                                            not under common
Ltd                   province
                                                                                             control
                                                                                             Business combinations
Hongkong Zhaiugou
                      Hong       Kong,   Hong Kong,                                          involving enterprises
International Trade                                         Commerce               100.00%
                      China              China                                               not under common
Co., Ltd
                                                                                             control
Guizhou Guijiu                                                                               Business combinations
                      Guiyang,           Guiyang,
Liquor Operation                                                                             involving enterprises
                      Guizhou            Guizhou            Commerce     100.00%
Management Co.,                                                                              not under common
                      province           province
Ltd.                                                                                         control
                                                                                             Business combinations
                      Guiyang,           Guiyang,
Guizhou Guijiu                                                                               involving enterprises
                      Guizhou            Guizhou            Commerce               100.00%
Trade Co., Ltd.                                                                              not under common
                      province           province
                                                                                             control
                                                                                             Business combinations
ZYG E-Commerce        Hong       Kong,   Hong Kong,         Industrial
HK Limited            China              China              investment
                                                                                             not under common
                                                                                                    control
                                                                                                    Business combinations
                      Cayman                              Industrial                                involving enterprises
ZYG LTD                                Cayman Islands                                      69.08%
                      Islands                             investment                                not under common
                                                                                                    control
YangHe                British Virgin   British Virgin     Industrial
International                                                                             100.00%   Establishment
                      Islands          Islands            investment
Investment Ltd
                                                          Healthy wine,
Jiangsu Shuanggou
                      Suqian,                             nutrition and
Healthy Liquor                         Suqian, Jiangsu
                      Jiangsu                             health        food              100.00%   Establishment
Research institute                     province
                      province                            research and
Co., Ltd.
                                                          development
                                                                                                    Business combinations
ZYG TECHNOLOGY        British Virgin   British Virgin     Industrial                                involving enterprises
INVESTMENT LTD        Islands          Islands            investment                                not under common
                                                                                                    control
Jiangsu Blue Dream    Suqian,
                                       Suqian, Jiangsu
E- commerce Co.,      Jiangsu                             Commerce                        100.00%   Establishment
                                       province
Ltd.                  province
                                                          Network
                                                          technology
Jiangsu Yanghe
                      Nanjing,                            development,
Weiketang Network                      Nanjing, Jiangsu
                      Jiangsu                             technical             100.00%             Establishment
Technology Co.,                        province
                      province                            consultation,
Ltd.
                                                          technical
                                                          service
                      Renhuai,         Renhuai,           Liquor                                    Business combinations
Kweichow Moutai
                                                                                                    involving enterprises
Town Guijiu Liquor    Guizhou          Guizhou            manufacture                     100.00%
                                                                                                    not under common
Industry Co., Ltd     province         province           and sales                                 control
                                                          Road general
                                                          cargo
                                                          transport,
Suqian Su Wine        Suqian,Jiangs    Suqian, Jiangsu
                                                          cargo                 100.00%             Establishment
Logistics Co., Ltd.   u province       province
                                                          distribution,
                                                          freight
                                                          forwarder
                                                          Movable and
                                                          real         estate
                                                          investment
                      Santiago,
YANGHE CHILE SPA                       Santiago, Chile    services,             100.00%             Establishment
                      Chile
                                                          building
                                                          construction
                                                          services
Jiangsu Yanghe        Suqian,          Suqian, Jiangsu    Foreign                50.00%    50.00%   Establishment
Investment             Jiangsu     province           investment,
Management Co.,        province                       Asset
Ltd.                                                  management,
                                                      Investment
                                                      consulting
                                                      Enterprise
                                                      management
                                                      consulting;
Su Wine Group                                         Industrial
                       Nanjing,
Nanjing Operation                  Nanjing, Jiangsu   investment;
                       Jiangsu                                                        100.00%   Establishment
Management Co.,                    province           Food         sales;
                       province
Ltd.                                                  Gift         sales;
                                                      House lease;
                                                      Hotel
                                                      management
                       Nanjing,
Jiangsu Zhongshiji                 Nanjing, Jiangsu   Food         sales,
                       Jiangsu                                                        100.00%   Establishment
liquor Co., Ltd.                   province           Gift sales
                       province
Yanghe Hong Kong       HongKong,   Hong               Industrial
Distillery Co., Ltd.   China       Kong,China         investment
                                                      Painting      and
                                                      calligraphy
                                                      creation,
                                                      exhibition;
                                                      Academic
                                                      research;
Jiangsu Yanghe         Nanjing,
                                   Nanjing, Jiangsu   Public         art
Calligraphy and        Jiangsu                                                        100.00%   Establishment
                                   province           education;
Painting Academy       province
                                                      Cultural      and
                                                      creative
                                                      products
                                                      development
                                                      and
                                                      promotion
                       Sihong,
Jiangsu Shuanggou                  Sihong, Jiangsu
                       Jiangsu                        Commerce                        100.00%   Establishment
Wine Sales Co., Ltd                Province
                       Province
                                                      Internet
Jiangsu Jiushang       Suqian,
                                   Suqian, Jiangsu    information
Internet               Jiangsu                                               51.00%             Establishment
                                   Province           service,
Technology Co., LTD    Province
                                                      alcohol sales
Jiangsu Yanghe         Suqian,                        Tobacco retail,
                                   Suqian, Jiangsu
Cultural Tourism       Jiangsu                        catering,             100.00%             Establishment
                                   Province
Co., LTD               Province                       accommodati
                                                            on,      tourism
                                                            business
                                                            Tobacco retail,
Jiangsu Yanghe        Suqian,                               catering,
                                         Suqian, Jiangsu
Cultural Tourism      Jiangsu                               accommodati                    80.00%   Establishment
                                         Province
Operation Co., LTD.   Province                              on,      tourism
                                                            business
                                                            Wine
Siyang Blue Sky       Sihong         ,
                                         Sihong, Jiangsu    production
Packaging Service     Jiangsu                                                   100.00%             Establishment
                                         Province           and packaging
Co., Ltd              Province
                                                            services
                                                            Painting      and
                                                            calligraphy
                                                            creation,
                                                            exhibition;
                                                            Academic
                                                            research;
Jiangsu Yanghe        Nanjing,
                                         Nanjing, Jiangsu   Public        art
Calligraphy and       Jiangsu                                                    51.00%             Establishment
                                         province           education;
Painting Academy      province
                                                            Cultural      and
                                                            creative
                                                            products
                                                            development
                                                            and
                                                            promotion
Kweichow Moutai       Zunyi      City,   Zunyi City,
Guijiu Liquor         Guizhou            Guizhou            Commerce                      100.00%   Establishment
Industry Co., Ltd     Province           Province
Jiangsu Ulan          Nanjing,           Nanjing, Jiangsu
Shangyin Catering     Jiangsu            province           Catering
Management Co.,       province                              Management
Ltd.
Jiangsu Yanghe        Nanjing,           Nanjing, Jiangsu   equity
Dream Investment      Jiangsu            province           investment
Management Co.,       province
Ltd
Jiangsu Yanghe        Nanjing,           Nanjing, Jiangsu   equity
Dream Investment      Jiangsu            province           investment
Management Co.,       province
Ltd.
The shareholding ratio in the subsidiary is different from the voting ratio:
N/A
The basis for holding half or less of the voting rights but still controlling the invested entity, and for
holding more than half of the voting rights but not controlling the invested entity
N/A
For important structural subjects included in the scope of merging, the basis of control:
Basis for determining whether the company is an agent or a principal:
      (1) Summary of financial information of insignificant joint ventures and associates
                                                                                                          Unit: CNY
                                               Closing balance/Current period      Opening balance/Previous period
                                                           amount                               amount
Associates:
Total carrying amount of investment                                                                    8,173,436.53
The     aggregate     amount      of    the
following items calculated based on
the      Company¡¯s       equity        share
percentage of the associates
--Net profit                                                          909,717.87                      -2,562,964.31
--Other comprehensive income                                          153,503.58                          10,293.63
-- Total comprehensive income                                       1,063,221.45                      -2,552,670.68
Joint ventures:
Total carrying amount of investment                                32,979,630.21                      24,569,960.78
The sum of the following items
calculated        according    to       the
shareholding ratio
--Net profit                                                        4,291,718.92                       5,511,685.26
-- Total comprehensive income                                       4,291,718.92                       5,511,685.26
X.        Risks related to financial instruments
    The Group is exposed to various financial risks in the ordinary course of business, mainly including:
credit risk, liquidity risk, market risk, etc. The Company's management is fully responsible for the
formulation of risk management objectives and policies, and takes responsibility for risk management
objectives and policies. The objective of the Company¡¯s risk management is to identify and analysis risk,
minimizing the adverse impact of financial risks without excessive influence on the company's
competitiveness and resilience.
    Credit risk refers to the risk that one party of the financial instruments fails to perform its
obligations and causes the financial losses of the other party. Credit risk mainly related to notes
receivables and accounts receivable, in order to control the risk, the Company takes the following
measures:
    (1) Bank deposit
    The company's bank deposits are mainly deposited in state-owned holding banks, large and
medium-sized listed banks and other commercial banks with high credit. There is no significant credit
risk and no significant loss caused by default.
    (2) Notes receivables and accounts receivables
    The Company mainly trades with distributors, according to company credit policy, and adopts the
way of delivery after the payments finished. For some group purchase business, it only deals with the
reputable group clients, and continuously monitors the balance of notes receivables and accounts
receivables, as a result, there is no collateral required, and credit risk management concentrates on the
clients. The balance of notes receivables and accounts receivables are small till 31 December 2021. The
Company does not hold any collateral or other credit enhancement for the balance of accounts
receivables.
    (3) Other receivable
    The other receivables are mainly saving deposits involving infringement dispute, deposits and petty
cash, employee business loan and so on. The Company manages other receivables and continuously
monitors its balance, to ensure the Company not to face significant bad debt risks.
    Liquidity risk refers to the risk of capital shortage when enterprise performs its obligations related
to financial liabilities. The Company uses various financing methods such as bill clearing and bank loan
to optimize the financing structure and maintain the balance between financing continuity and
flexibility.
    The maturity of the financial liabilities held by the Company according to the un discounted
remaining contractual obligations is analyzed as follows:
                                                                  Closing balance
       Item
                       Within 1 year               1-2 years           2-3 years       Over 3 years            Total
Account
payables             1,376,209,527.01                                                                       1,376,209,527.01
Other
payables             1,854,922,517.23                                                                       1,854,922,517.23
Long-term
loan
Long-term
payables                                                                              196,459,834.53          196,459,834.53
   (Continued)
                                                                         Opening balance
              Item
                                   Within 1 year           1-2 years      2-3 years      Over 3 years           Total
Account payables                       1,444,175,262.08                                                       1,444,175,262.08
Other payables                         1,808,838,882.26                                                       1,808,838,882.26
Long-term loan                               36,360.00                                                                 36,360.00
Long-term payables                                                                         196,694,194.53       196,694,194.53
    Market risk is the fair value of financial instrument or future cash flow fluctuates due to the fluctuation of
market price, and it mainly includes: interest rate risk, foreign exchange risk, etc.
    (1) Interest rate risk
    Interest rate risk refers to the fair value of financial instrument or future cash flow fluctuates due to the
fluctuation of interest rate. The Company faces the risk of market interest rate change mainly related to the
Company's borrowing limit.
    (2) Foreign exchange risk
    Foreign exchange risk arises from fluctuation in exchange rate, relevant to the assets and liabilities in
foreign currency. The less import and export business happened, the lower impact of exchange rate fluctuation
on company's operation.
    The amount in CNY of the Company¡¯s assets and liabilities shown in foreign currencies as follows:
                                        Closing balance                                                  Opening balance
        Item          Balance in foreign       Exchange                             Balance in foreign        Exchange
                                                              Balance in CNY                                                Balance in CNY
                          currency                 rate                                 currency                rate
 Cash and
 cash
 equivalents
   Include: USD          2,325,513.37                6.9646   16,196,270.44            10,263,661.09            6.3757     65,438,024.01
               HKD      11,621,517.91                0.8933   10,381,501.95              4,177,908.36           0.8176       3,415,857.87
               CLP     471,084,627.00             0.008131     3,830,608.28        1,119,093,451.00           0.007483       8,374,417.98
 Other
 receivables
  HKD                       155,679.16               0.8933       139,068.19               123,179.16           0.8176         100,711.28
 Account
 payables
   Include: USD
 Other
 payables
   Include: USD                512.13                6.9646         3,566.78
               HKD          217,800.00               0.8933       194,560.74               448,590.73           0.8176         366,767.78
               CLP          328,119.00            0.008131          2,668.09               579,431.00         0.007483              4,336.01
  Net amount                                                  11,076,949.57                                                70,974,562.64
      The amount of foreign currency financial assets and financial liabilities of the company is small, and
exchange rate fluctuations have little impact on the company's business performance.
XI.        Fair value disclosure
Reporting Period
                                                                                                                               Unit: CNY
                                                                               Closing fair value
               Item
                                           Level 1                Level 2                      Level 3                      Total
Continuous fair value
                                             --                      --                             --                       --
measurement
Financial assets held for
trading
through current profit and
loss
(1) Debt instrument
investment
(2) Equity instrument
investment
Receivables Financing                                                                623,098,310.00              623,098,310.00
Bank acceptance bill                                                                 623,098,310.00              623,098,310.00
Total    assets   continuously
measured at fair value
Non-Continuous fair value
                                       --                    --                        --                          --
measurement
measurement items
                                                                                            Active market price
                  Item                              Fair value
                                                                            Trading price              Information source
Continuous fair value
measurement
Trading financial assets:
       Equity instrument investment                     1,074,170,177.19      Closing price       Local open market closing price
Total assets continuously measured
at fair value
adopted for continuous and non-continuous level 2 fair value measurement it
None
adopted for continuous and non-continuous level 3 fair value measurement it
                   Item                             fair value                           Valuation techniques
Continuous fair value
measurement
                                                                           Using    expected     returns   as     an    important
Debt instrument investment
                                                                           Using cost or the net assets of the invested entity
Equity instrument investment                                               at the end of the period as an important
                                                                           reference for evaluating its fair value
                                                                           Using the face value as an important reference
Bank acceptance bill                                    623,098,310.00     for evaluating its fair value
                  Item                                 fair value                              Valuation techniques
Total assets continuously
measured at fair value
XII.     Related parties and related party transactions
                                                                                             Shareholding        Voting Ratio by
Name of parent                                                           Registered
                      Registration place        Business nature                               ratio by the            the parent
   company                                                                 capital
                                                                                            parent company            company
                                            Sales of brewing
                                            machinery
                                            equipment,
                                            export of liquor,
                                            import of various
                                            raw and auxiliary
Jiangsu Yanghe
                      Suqian, Jiangsu       materials,                  CNY 1.5 billion               34.16%                  34.16%
Group Co., Ltd.
                                            equipment and
                                            accessories
                                            required for
                                            production,
                                            industrial
                                            investment.
Information about the Company¡¯s parent company:
The final control party of the Company is State-owned Assets Supervision and Administration Commission of
Suqian.
Other statements:
The information about the subsidiaries of the Company refers to NoteVI.1 Interests in Subsidiaries.
The information about the joint venture and associate of the Company refers to the Note VI.2.
Other joint ventures and associates whose related party transactions with the Company in the current period
or balance formed from related party transactions with the Company in the prior period as follows:
             Name of joint venture and associate                                      Relationship with the Company
Diageo International Spirits Company Limited                        Joint Venture
Jiangsu Su Wine Cultural Transmission Co., Ltd.                     Associate
Nanjing Hesong Culture Technology Co., Ltd.                         Associate
Jiangsu Xinghe Investment Management Co., Ltd.                      Associate
                  Name of other related party                                         Relationship with the Company
Shanghai Haiyan Logistics Development Co., Ltd.                     Holding 9.67% shares
VSPT, Vi?a San Pedro Tarapac¨¢ S.A.                                  Joint stock company, holding 12.50% shares
                                                                     Controlled by Diageo International Spirits Company Limited,
Jiangsu Diageo Wine Co. LTD
                                                                     joint venture of Company
   (1) Related party transactions regarding sales and purchases of goods, provision of services and receiving
services
   Statement of purchase of goods / Receipt of labor services
                                                                                                                              Unit: CNY
                                                                                                    Whether
                                                                            Approved            exceeding the
                            Transaction          Amount for the                                                        Amount for the
    Related Party                                                          transaction              approved
                              Content             current period                                                        prior period
                                                                             amount              transaction
                                                                                                    amount
 VSPT, Vi?a San
 Pedro Tarapac¨¢            Red wine                 16,462,530.10                                                       21,169,155.61
 S.A
 Nanjing
                           Advertising and
 Hesong Culture
                           general publicity            756,341.39                                                            303,276.09
 Technology
                           expense
 Co., Ltd.
 Jiangsu Diageo
                           Liquor                                                                                       10,129,543.56
 Wine Co. LTD
 Total                                              17,218,871.49                                                       31,601,975.26
Statement of sales of goods/ rendering of labor services
                                                                                                                              Unit: CNY
           Related Party                   Transaction Content             Current period amount              Previous period amount
 Shanghai Haiyan Logistics
                                      Sales of liquor                                    866,000.02                      5,067,075.48
 Development Co., Ltd.
 Jiangsu Su Wine Cultural
                                      Sales of liquor                                 40,369,222.60                     46,448,093.82
 Transmission Co., Ltd.
 Jiangsu Diageo Wine Co. Ltd          Sales of liquor                                                                    3,820,908.96
 Jiangsu Xinghe Investment
                                      Consulting fee income                                                              2,443,396.23
 Management Co., Ltd.
 Total                                                                                41,235,222.62                     57,779,474.49
   (2) Related party lease
The Company as a lessor
                                                                                                                              Unit: CNY
                                                                                                               Amount in previous
           Related party                  Types of Leased Assets         Amount in current period
                                                                                                                     period
 None
The Company as a lessee
                                                                                                                              Unit: CNY
                                                      Variable lease
                              Simplified rental
                                                      payments not                               Interest expense
                            fees for short-term
                                                     included in the                                 on lease            Increased use
                               leases and low                                 Rent paid
              Types                                 measurement of                                   liabilities          rights assets
                             value asset leases
                                                   lease liabilities£¨If                              assumed
 Related        of           £¨If Applicable£©
                                                      Applicable£©
  party      Leased
                                                                                                            Previo
             Assets                    Previou                Previou                                                            Previou
                            Current                Current                Current   Previous    Current       us       Current
                                          s                      s                                                                  s
                             period                 period                 period    period      period     period      period
                                        period                 period                                                             period
                            amount                 amount                 amount    amount      amount      amou       amount
                                       amount                 amount                                                             amount
                                                                                                              nt
 Jiangsu
 Yanghe     lease of                                                      298,16    201,834.    68,263.     80,01
 Group      houses                                                        5.14      86          37          3.55
 Co., Ltd
   (3) Compensation for key managers
                                                                                                                             Unit: CNY
                     Item                                Current period amount                      Previous period amount
     (1) Payables
                                                                                                                             Unit: CNY
              Item                                  Related party                     Closing balance                Opening balance
                                       Shanghai     Haiyan    Logistics
 Contract liabilities                                                                          72,307.08                   6,010,270.99
                                       Development Co., Ltd.
                                       Jiangsu Su Wine Cultural Transmission
 Contract liabilities                                                                      3,803,634.02                   26,791,306.31
                                       Co., Ltd.
 Accounts payables                    Jiangsu Diageo Wine Co. Ltd.                                                         2,195,373.19
                                      VSPT,
 Accounts payables                                                                         6,508,528.42
                                      Vi?a San Pedro Tarapac¨¢ S.A.
                                      Shanghai Haiyan Logistics
 Other Payables                                                                                133,000.00                    151,531.60
                                       Development Co., Ltd.
                                       Jiangsu Su Wine Cultural Transmission
 Other Payables                                                                                950,000.00                  1,000,451.00
                                       Co., Ltd.
XIII. Share-based payment
?Applicable ¡õN/A
                                                                                                                             Unit: CNY
 Total of equity instruments granted during the current
 reporting period
 Total of equity instruments vested during the current reporting
 period
 Total of equity instruments forfeited during the current
 reporting period
   Other information:
According to Phase I Core Backbone Shareholding Plan (Draft) of Jiangsu Yanghe Distillery Co., Ltd., deliberated
and approved at the second Extraordinary Shareholders' Meeting of 2021 held on August 2, 2021, the
shareholding scale of the shareholding plan does not exceed 9,118,384 share. The stock in this stock plan is
derived from the company's A-share ordinary shares repurchased by the special account. The duration of the
shareholding plan is 36 months, and the lock-up period of the acquired shares is 24 months, which shall be
calculated from the date when the draft shareholding plan is approved by the Shareholders' Meeting and the
company announces the last transfer of the underlying shares to the shareholding plan. Upon expiration of the
shareholding plan, the shareholding plan shall terminate automatically, and it may be extended upon the
consent of more than half of the members of the management Committee and the approval of the board of
directors. Upon expiration of the lock-up period, the stock rights and interests held in the stock holding plan
will be disposed according to the assessment results of the company's performance objectives. The
performance assessment of the shareholding plan requires that the operating revenue in 2021 should increase
by no less than 15% compared with 2020 and the operating revenue in 2022 should increase by no less than 15%
compared with 2021. If the performance assessment indicators are not reached, all the underlying stock rights
and interests held in the shareholding plan shall be recovered by the management Committee and sold at an
appropriate time after the expiration of the lock-up period, and shall be returned to the holder on the basis of
the lower investment amount and the sold amount (after deducting relevant expenses), and the remaining
profits shall be enjoyed by the Company.
The total amount of expenses recognized in the current period is RMB 122,414,308.77, which is included in
capital reserve - Other capital reserve, accumulated included in capital reserve - other capital reserves RMB
XIV. Commitments and contingencies
   Significant commitments as of the balance sheet date
      By the end of 31 December 2022, there were no significant commitments needed to be disclosed.
   (1) Significant contingencies as of the balance sheet date:
   By the end of 31 December 2022, there were no significant commitments needed to be disclosed.
   (2) If no contingencies that need to be disclosed, statement should be made.
The Company has no significant contingencies to disclose.
XV.       Post balance sheet event
                                                                                                                    Unit: CNY
 Profits or dividends to be distributed                                                                    29,676,346,187.62
 Profits or dividends declared for distribution after being
 approved
                                                                The company plans to distribute cash dividends of RMB 37.40
                                                                (including tax) to all shareholders for every 10 shares based on
                                                                the total share capital on the equity registration date when
 Profit distribution plan
                                                                implementing the profit distribution plan (excluding the
                                                                repurchased shares held in the company's dedicated securities
                                                                account for repurchase), with undistributed profits, without
  bonus shares or conversion to share capital.
XVI. Notes to major items of financial statements of parent company
    (1) Disclosure of accounts receivable by categories
                                                                                                                                                                             Unit: CNY
                                                    Closing balance                                                                     Opening balance
                             Carrying balance             Credit loss provision                              Carrying balance                Credit loss provision
       Type
                                          Percentage                   Proportion       Book value                        Percentage                      Proportion of    Book value
                          Amount                          Amount                                           Amount                           Amount
                                              (%)                      of provision                                           (%)                          provision
 Including:
 Provision
 for     bad
 debts    by
 portfolio
 Including:
 Risk portfolio            5,053,200.00           0.42%   151,596.00          3.00%      4,901,604.00
 Other
 portfolio
 Total                 1,204,313,384.24         100.00%   151,596.00          0.01%   1,204,161,788.24   424,595,684.45           100.00%                                 424,595,684.45
Provision for bad debts by portfolio: risk portfolio
                                                                                                                                                                             Unit: CNY
                                                                                                           Closing balance
                  Name of portfolio
                                                             Accounts receivables                        Provision for bad debt                              Proportion
Within 1 year                                                                  5,053,200.00                                   151,596.00                                          3.00%
Total                                                                          5,053,200.00                                   151,596.00
Notes to determine provision for bad debt by portfolio:
Provision for bad debts by portfolio: other portfolio
                                                                                                                 Unit: CNY
                                                                       Closing balance
        Name of portfolio
                                      Accounts receivables           Provision for bad debt                     Proportion
Accounts receivable of
companies within the scope                 1,199,260,184.24                                                                     0.00%
of consolidation
Total                                      1,199,260,184.24
         Notes to determine provision for bad debt by portfolio:
         If the Company uses the accounts receivable provision for bad debts according to the general
         model of expected credit loss, please disclose the relevant information of provision for bad debt
         by referring to the disclosure method of other receivables
         ¡õApplicable        ?N/A
         Analysis by aging
                                                                                                                 Unit: CNY
                              Aging                                                        Closing balance
Within 1 year (including 1 year)                                                                                1,204,313,384.24
Within 1 year                                                                                                   1,204,313,384.24
Total                                                                                                           1,204,313,384.24
            (2) Provision for bad debt that is accrued, recovered or reversed during this period
            Provision for bad debts during this period:
                                                                                                                 Unit: CNY
                                                           Changes in the current period
                       Opening                                                                                         Closing
   Category                                               Recovered or
                       balance           Provision                            Write off            Others              balance
                                                            reversed
Provision for
bad debt of
accounts
receivables
Total                                    151,596.00                                                                    151,596.00
         Significant amount of reversal or recovery during this period
                                                                                                                 Unit: CNY
           Company name                          Amount recovered or reversed                        Method
None
            (3) Top five entities with the largest balances of the accounts receivables
                                                                                                                 Unit: CNY
                                                                    Proportion in the total
        Company¡¯s name                  Closing balance                                                      Provision amount
                                                                   accounts¡¯ receivables (%)
First                                      1,106,779,402.21                             91.90%
Second                                        91,345,507.40                               7.59%
Third                                          5,053,200.00                               0.42%                        151,596.00
Fourth                                           855,899.68                               0.07%
Fifth                                            279,374.95                               0.02%
Total                                      1,204,313,384.24                            100.00%
                                                                                                                 Unit: CNY
                   Item                               Closing balance                               Opening balance
Dividend receivable                                                                                             1,812,736,853.55
Other receivables                                                1,068,086,225.72                                 399,089,264.75
Total                                                            1,068,086,225.72                               2,211,826,118.30
            (1) Dividend receivable
                                                                                                          Unit: CNY
                    Item                              Closing balance                           Opening balance
Dividends receivable from
subsidiaries
Total                                                                                                    1,812,736,853.55
        ¡õApplicable ?N/A
           (2) Other receivables
                                                                                                          Unit: CNY
       Nature of other receivables                     Closing balance                           Opening balance
Payments by related parties within the
Group
 Guarantee deposit                                                18,498,496.00                             15,060,000.00
 Business loans and petty cash                                     1,128,524.66                                575,275.71
 Other receivables                                                 2,602,307.10                              2,527,992.51
 Total                                                         1,085,103,855.17                            415,914,656.20
                                                                                                          Unit: CNY
                                  Phase 1                   Phase 2                 Phase 3
  Provisions for debts        Future 12-month        Lifetime ECL(without   Lifetime ECL(with credit          Total
                                    ECL               credit impairment)          impairment)
Balance as at 1 January
Change of opening
balance as at 1 January
Provision in 2022                    192,238.00                                                                192,238.00
Balance as at 31
December 2022
         Significant change of the book balance of provision during the period
        ¡õApplicable ?N/A
        Other receivables by aging
                                                                                                          Unit: CNY
                             Aging                                                    Closing balance
Within 1 year (including 1 year)                                                                           739,643,544.05
Within 1 year                                                                                              739,643,544.05
Over 3 years                                                                                                30,544,815.21
Over 5 years                                                                                                20,866,783.21
Total                                                                                                    1,085,103,855.17
                                                                                                                            Unit: CNY
                                                                  Changes in the current period
   Category            Opening balance                           Recovered or                                 Other          Closing balance
                                                Provision                             Write off
                                                                   reversed                                  changes
Provision for
other
receivables
bad debt
Total                   16,825,391.45          192,238.00                                                                     17,017,629.45
       Significant amount of reversal or recovery during this period:
                                                                                                                            Unit: CNY
              Company name                                     recovery or reversal                              Way of recovery
                                                                                                                            Unit: CNY
                                                                                                          Proportion in       Provisioning
Company¡¯s Name              Category              Closing balance                     Aging                   total            amount at
                                                                                                           receivables         period end
                                                                          Within 1
Guizhou Guijiu                                                            year627,605,000.00£¬
                              Loan                 941,550,495.91         1-2years                              86.77%
Co., Ltd.
Guizhou Maotai
Town Guijiu Liquor            Loan                 103,640,000.00         Within 1 year                          9.55%
Industry Co., Ltd
Jiangsu Juntai
Properties Co., Lt.,
Suqian Guotai               deposit                    15,000,000.00      Over 5 years                           1.38%        15,000,000.00
Department Store
Co., Ltd.
                                                                          Within 1 year
Harbin Binzhou                                                            400,000.00,2-3years
                              Loan                     14,807,100.00                                             1.36%
Distillery Co., Ltd.                                                      460,000.00, over 3
                                                                          years 13,717,100.00
Siyang County
Land Acquisition
                           guarantee                    2,938,464.00      Within 1 year                          0.27%             58,769.28
and Reserve
Center
ºÏ¼Æ                                               1,077,936,059.91                                               99.33%        15,058,769.28
                                                                                                                            Unit: CNY
                                             Closing balance                                              Opening balance
      Item                                    Impairment                                                   Impairment
                         Book balance                              Book value          Book balance                              Book value
                                                provision                                                   provision
Investment in
subsidiaries
Total                    8,180,436,290.49                         8,180,436,290.49     7,994,556,728.17                        7,994,556,728.17
             (1) Investment in subsidiaries
                                                                                                                           Unit: CNY
                                                   Increase or decrease in the current period                                       Closing
                                                                                                                                    balance
  Investee         Opening balance                                         Provision for                        Closing balance        of
                                            Increase        Decrease                             Others                            provision
                                                                           impairment
                                                                                                                                      for
                                                                                      impairme
                                                                                         nt
Suqian
Yanghe
Guibinguan
Co., Ltd.
Jiangsu
Shuanggou
Distillery     1,717,299,880.97                   12,368,912.08   1,729,668,793.05
Stock Co.,
Ltd.
Su Wine
Trade Group     306,242,867.20                    61,510,650.24    367,753,517.44
Co., Ltd.
 Jiangsu
 Yanghe
 Liquor
 Operation
 Manageme
 nt Co., Ltd
 Jiangsu
 Dongdi
 Union
 Internatio
 nal Trade
 Co., Ltd.
 Jiangsu
 Dongdixi
 nghui
 Internati        5,000,000.00                                        5,000,000.00
 onal
 Trade
 Co., Ltd
 Siyang
 Lantu
 Liquor           3,161,700.00                                        3,161,700.00
 Operation
 Co., Ltd.
 Hubei
 Lihuacun
 Liquor           3,000,000.00                                        3,000,000.00
 Industry
 Co., Ltd.
 Ningxiang
 Miluochu
 n Liquor         2,129,000.00                                        2,129,000.00
 Industry
 Co., Ltd.
 Harbin
 Binzhou
 Distillery
 Co., Ltd.
 Su Wine
 Group
 Jiangsu
 Wealth        3,000,000,000.00                                   3,000,000,000.00
 Managem
 ent Co.,
 Ltd.
 Jinagsu
 Kelite
 Biology
 Technology
 Research
 Institute
 Co., Ltd.
 Jiangsu Lion
 and Sheep
 Network                5,460,000.00                                                                5,460,000.00
 Technology
 Co., Ltd.
 Guizhou
 Guijiu             943,300,000.00                                                              943,300,000.00
 Co., Ltd.
 Jiangsu
 Yanghe
 Weiketang
 Network
 Technology
 Co., Ltd.
YANGHE
CHILE SPA
Jiangsu
Yanghe
Investment         1,500,000,000.00                                                            1,500,000,000.00
Management
Co., Ltd.
Yanghe Hong
Kong Liquor           18,000,000.00                                                                 18,000,000.00
Co., Ltd.
Jiangsu
Jiushang
Internet                5,100,000.00                                                                5,100,000.00
Technology
Co., LTD
Tibet Earth
Third Pole
Liquor                                                                                          102,000,000.00
Industry Co.,
Ltd
Jiangsu
Yanghe
Dream                                  20,000,00
Investment                                 0.00
Management
Co., Ltd
Total              7,994,556,728.17                10,000,000.00               73,879,562.32   8,180,436,290.49
                                                                                                           Unit: CNY
                                        Current period amount                         Previous period amount
         Item
                               Operating revenue          Cost of sales       Operating revenue           Cost of sales
Primary business               11,033,861,278.77         5,597,622,749.56      9,855,981,149.71          5,134,136,876.95
Other business                    458,946,611.18           382,597,476.00        620,861,040.12            558,762,391.77
Total                          11,492,807,889.95         5,980,220,225.56     10,476,842,189.83          5,692,899,268.72
           Information relating to revenue
                                                                                                           Unit: CNY
 Category of Contract             Segment 1                 Segment 2       Current period amount              Total
 Commodity type                               0.00
 Including:
Liquor                                                                        11,033,861,278.77         11,033,861,278.77
Other                                                                            458,946,611.18            458,946,611.18
  By operating region
  Including:
 Type of market or
 customer
 Including:
 Type of contract
 Including:
 By the time of
 commodity transfer
 Including:
 By contract term
 Including:
 By Selling channel
 Including:
 Total                                                                  11,492,807,889.95    11,492,807,889.95
         Information relating to performance obligations
         N/A
         Information relating to the transaction price apportioned to the remaining performance
         obligations:
         At the end of this report, the amount of revenue corresponding to the performance obligations
         with the contracts signed but not performed or not performed is CNY 17,485,085,741.24, of
         which CNY 17,485,085,741.24 is expected to be recognized in 2023, and CNY 0.00 is expected to
         be recognized in 2024. CNY 0.00 is expected to be recognized as revenue in 2025.
                                                                                               Unit: CNY
                    Item                      Current period amount               Previous period amount
Investment income from long-term
equity investments under the equity                        5,529,140,387.31                   3,816,035,295.48
method
Investment income from financial assets
held for trading during the holding                            3,865,643.47                        10,199,080.04
period
Investment income from disposal of
financial assets held for trading
Income from derecognition of financial
                                                             -11,790,752.31
assets measured at amortized cost
Total                                                      5,820,859,899.66                   4,025,167,004.11
         XIV. Supplementary information
         ?Applicable       ¡õN/A
                                                                                               Unit: CNY
                   Item                              Amount                                 Note
Profit or loss from disposal of
                                                              -5,887,909.75
non- current assets
Government grants accounted for, in
the profit or loss for the current period
(except for the government grants
closely related to the business of the
Company and given at a fixed amount
or quantity in accordance with the
state's uniform standards)
In addition to the effective hedging
business related to the company's
normal business operations, changes in
fair value from holding financial assets
held for trading, derivative financial
assets, financial liabilities held for
trading, fair value changes, and                               77,907,331.60
investment income from disposal of
financial assets held for trading and
derivative financial assets, financial
liabilities held for trading, derivative
financial liabilities and other debt
investments
 Other non-operating income and
 expense       except       the     items                          827,476.72
 mentioned above
 Other profit and loss items that
 conform to the definition of                                    3,610,292.93
 non-recurring profits and losses
 Less: Effect of income tax                                    34,647,176.78
Effect of minority equity                                         784,942.50
Total                                                          101,187,597.79                       --
        Specific details of other profit and loss items that conform to the definition of non-recurring
        profits and losses
        ¡õApplicable        ?N/A
        The Company does not have any Specific details of other profit and loss items that conform to the
        definition of non-recurring profits and losses
        Statement for extraordinary gain and loss items that the Company defines according to the
        definition in Explanatory Announcement of Information Disclosure of Company that Issues
        Securities publicly No.1- Extraordinary Gain and Loss and definition of recurrent gain and loss
        items that are listed as extraordinary gain and loss in the Explanatory Announcement of
        Information Disclosure of Company that Issues Securities publicly NO. 1- Extraordinary Gain and
        Loss:
        ¡õApplicable        ?N/A
                                                                                  EPS (CNY/Share)
Profit during reporting period        Weighted average ROE
                                                                      Basic EPS                     Diluted EPS
Net profits attributable
to ordinary
shareholders of the
Company
Net profits attributable
to ordinary
shareholders of the
Company after                                         20.80%                      6.1580                          6.1580
deduction of
extraordinary gain and
loss
        China
             (1) Difference of the net profit and net assets disclosed in financial report, under both IAS
        (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
       ¡õApplicable     ?N/A
    (2) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
       ¡õApplicable     ?N/A
     (3) Explain the reasons for differences in accounting data under domestic and foreign
accounting standards, and, where the data audited by an overseas audit institution are subject to
adjustment for difference, indicate the name of the overseas institution.
     None.