Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Wuliangye Yibin Co., Ltd.
Annual Report 2022
Chairman of the Board: Zeng Congqin
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part I Important Notes, Table of Contents and Definitions
directors, supervisors and senior management of Wuliangye Yibin Co., Ltd. (hereinafter referred to
as the ―Company‖) hereby guarantee that the contents of this Report are true, accurate and
complete and free of any misrepresentations, misleading statements or material omissions, and
collectively and individually accept legal responsibility for such contents.
Financial Officer, and Yang Wentian, head of the Company’s accounting department, hereby
guarantee that the financial statements carried in this Report are true, accurate and complete.
of them were present at the meeting in person while Mr. Xiao Hao, Mr. Xie Zhihua, Mr. Hou
Shuiping, and Mr. Luo Huawei voted by way of telecommunication for they were unable to be
present due to work reasons.
in this Report shall not be considered as promises to investors for the reason of their uncertainty.
Investors are kindly advised to invest wisely. The Company has disclosed in this Report the
possible risks. And investors are reminded to exercise caution when making investment decisions.
per 10 shares to shareholders based on the total 3,881,608,005 shares held by them, with no bonus
issue from either profit or capital reserves.
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Table of Contents
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Documents Available for Reference
The following documents are available for shareholders at the relevant department of the
Company:
Chief Financial Officer, and the head of the accounting department.
firm, as well as signed and stamped by the relevant certified public accountants.
China Securities Journal, Shanghai Securities News and Securities Times during the Reporting
Period.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Definitions
Term refers to Definitions
The ―Company‖, ―Wuliangye‖,
refers to Wuliangye Yibin Co., Ltd.
―WLY‖, or ―we‖
The State-owned Assets Supervision and
SASAC Yibin refers to Administration Commission of the People’s Government
of Yibin City
Yibin Development Group refers to Yibin Development Holding Group Co., Ltd.
Wuliangye Group refers to Sichuan Yibin Wuliangye Group Co., Ltd.
Wuliang NongXiang refers to Sichuan Wuliangye NongXiang Baijiu Co., Ltd.
Push Group refers to Sichuan Yibin Push Group Co., Ltd.
Global Group refers to Sichuan Yibin Global Group Co., Ltd.
Anji Logistic Group refers to Anji Logistic Group Co., Ltd. Sichuan
Wuliangye Group Finance refers to Sichuan Yibin Wuliangye Group Finance Co., Ltd.
Wuliangye Group I&E refers to Yibin Wuliangye Group I&E Co., Ltd.
Creart refers to Yibin Wuliangye Creart Co., Ltd.
Wuliangye New Retail refers to Sichuan Wuliangye New Retail Management Co., Ltd.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Wuliangye Stock code 000858
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 宜宾五粮液股份有限公司
Abbr. 五粮液
Company name in English (if
WULIANGYE YIBIN CO.,LTD.
any)
Abbr. (if any) WLY
Legal representative Zeng Congqin
Registered address 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China
Zip code 644007
Past changes of registered
N/A
address
Office address 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China
Zip code 644007
Company website http://www.wuliangye.com.cn
Email address 000858-wly@sohu.com
II Contact Information
Board Secretary Securities Representative
Name Jiang Lin Huang Hui
Office address
Yibin City, Sichuan Province, China Yibin City, Sichuan Province, China
Tel. （0831）3567000 （0831）3567000
Fax （0831）3555958 （0831）3555958
Email address 000858-wly@sohu.com 000858-wly@sohu.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report
The website of the Shenzhen Stock Exchange (www.szse.cn)
is disclosed
Media and website where this Report is China Securities Journal, Shanghai Securities News, Securities Times, and
disclosed http://www.cninfo.com.cn
Place where this Report is lodged The Company’s Board Office
IV Change to Company Registered Information
Unified social credit code 91511500MA62A0WM8P
Changes to the principal activities of the Company
No change during the Reporting Period
since its listing (if any)
Every change of controlling shareholder since
No change during the Reporting Period
incorporation (if any)
V Other Information
The independent auditor appointed by the Company:
Name of the independent auditor Sichuan Huaxin (Group) CPA (LLP)
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Office address 28/F, South Jinmaolidu, 18 Ximianqiao Street, Chengdu City, Sichuan Province, China
Accountants writing signatures Li Wulin, Ye Juan, and Luo Guiqiu
The independent sponsor appointed by the Company to exercise constant supervision over the Company in
the Reporting Period:
? Applicable □ Not applicable
Name of sponsor Office address Representative Supervision period
Guotai Junan Securities Co., 618 Shangcheng Road, China
Cai Hu, and Kang Xin 1 January 2022-31 December 2022
Ltd. (Shanghai) Pilot Free Trade Zone
The independent financial advisor appointed by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable ? Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes ? No
(%)
Operating revenue (RMB) 73,968,640,704.54 66,209,053,612.11 11.72% 57,321,059,453.15
Net profit attributable to the listed
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 26,662,736,708.98 23,327,729,257.82 14.30% 19,994,943,929.15
exceptional gains and losses (RMB)
Net cash generated from/used in
operating activities (RMB)
Basic earnings per share (RMB/share) 6.876 6.023 14.16% 5.141
Diluted earnings per share (RMB/share) 6.876 6.023 14.16% 5.141
Down by
Weighted average return on equity (%) 25.28% 25.30% 24.94%
percentage
point
Change of
December
December
Total assets (RMB) 152,714,727,880.22 135,620,812,221.13 12.60% 113,893,139,013.72
Equity attributable to the listed
company’s shareholders (RMB)
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and
after exceptional gains and losses was negative for the last three accounting years, or the latest independent
auditor’s report indicated that there was uncertainty about the continuity of the Company’s operations.
□ Yes ? No
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and
after exceptional gains and losses was negative.
□ Yes ? No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.
□ Applicable ? Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 27,548,160,168.43 13,674,217,414.68 14,557,309,237.20 18,188,953,884.23
Net profit attributable to the listed
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 10,841,889,446.84 4,268,700,205.22 4,908,714,059.89 6,643,432,997.03
exceptional gains and losses
Net cash generated from/used in
-3,401,025,898.78 5,288,100,539.70 8,898,402,607.19 13,645,659,013.37
operating activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially
from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
IX Exceptional Gains and Losses
? Applicable □ Not applicable
Unit: RMB
Item 2022 2021 2020 Note
Gain or loss on disposal of non-current assets
(inclusive of impairment allowance write-offs)
Government grants through profit or loss (exclusive
of government grants consistently given in the
Company’s ordinary course of business at fixed 100,421,839.81 184,126,377.62 100,407,690.85
quotas or amounts as per governmental policies or
standards)
Capital occupation charges on non-financial
enterprises that are recognized in profit or loss
Non-operating income and expense other than the
-62,917,173.08 -80,306,712.64 -141,782,777.02
above
Less: Income tax effects 8,377,774.30 21,010,672.65 -15,373,976.81
Non-controlling interests effects (net of tax) 3,927,171.59 11,985,497.85 11,671,148.66
Total 27,924,688.44 49,345,095.58 -40,134,334.63 --
Particulars about other items that meet the definition of exceptional gain/loss:
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
The Baijiu industry remains in long-term structural prosperity. It continued to see structural growth in 2022.
In the year, the number of Baijiu producers above the designated size nationwide was 963, a decrease of two
over last year; the production volume of Baijiu stood at 6.712 million kiloliters, down 5.6% year on year; the
sales revenue was RMB662.65 billion, representing a year-on-year increase of 9.6%; and the profit before tax
grew 29.4% on a year-on-year basis to RMB220.17 billion. The market has become more concentrated towards
strong brands, top producers, and major regions of production. In 2022, the Company achieved operating
revenue of RMB73.969 billion, up 11.72% year on year, and a profit before tax of RMB37.104 billion, up 14.34%
year on year.
II Principal Operations of the Company during the Reporting Period
(I) Overview
The Company is principally engaged in Baijiu production and sales. According to the Guidelines for the
Industry Classification of Listed Companies (revised in 2012) issued by the China Securities Regulatory
Commission, the Baijiu industry falls into the category of the "liquor & wine, beverage, and refined tea
production industry" (C15). No change occurred to the principal operations of the Company during the
Reporting Period. "Wuliangye", the primary product of the Company, is a classic strong-flavor Chinese Baijiu.
Additionally, the Company has developed, based on different production techniques, ―Wuliang NongXiang‖
products such as Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, and Mianrou
Jianzhuang with complete categories and unique tastes to meet the diverse needs of different consumers.
(II) Brand Operation
In 2022, the Company took solid steps to drive high-quality marketing. It continued to increase consumer
cultivation efforts, enhance Wuliangye's market position, meet the consumer needs arising in the new era, and
build a shared future of Wuliangye. In doing so, the marketing of the Wuliangye brand has been brought to a
new level.
Firstly, the Company continued to optimise its product system and steadily improved its product
strength. It refined the development processes for standard and customised products, the management standards
and mechanisms for new product development, and the management standards for the elimination of Wuliangye-
branded products. In addition, 23 new product series were launched, further enriching the Wuliangye-branded
product system.
Secondly, continuous efforts were made to better convey the culture in pursuit of a stronger brand
presence. The Company worked with high-profile platforms such as the Boao Forum for Asia, and APEC, and
established deep cooperation with CCTV, People's Daily, Xinhua News Agency and other mainstream media to
drive a stronger presence of the Wuliangye brand.
Finally, the Company continually improved its channel structure and steadily increased its strength
with regard to channels. Through innovative methods including the star-rating at the retail end, QR code-
related prizes, and policy support payments, the Company helped distributors enhance royalty at the retail end,
thus strengthening the traditional retail channels. Centering around ―one focus on major customers, three high-
end markets, and two platforms‖, the Company strove to establish cooperation with more major corporate
customers by paying over 50,000 visits to enterprises in the year as part of its efforts to expand group purchase
channels. Meanwhile, it worked with Geely Auto to launch the Wuliangye Zeekr Limited Edition Customized
Baijiu, actively exploring innovative channel cooperation models. In addition, the Wuliangye exclusive store
platform integrated branding, consumption conversion and membership operation, entering a new stage of smart
store operation.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
In 2022, Wuliang NongXiang continued to adhere to the strategies of "three characteristics and one
recognition", "three focuses" and key product building. Through proactive, relentless, flexible and practical
efforts, new results and breakthroughs have been achieved in high-quality development.
Firstly, the product system continued to improve. A variety of products were launched to the market to
meet increasing consumer demand, including Wuliangchun Mingmenchun, Wuliang Tequ Jincai, Wuliang Tequ
Crown, Wuliang Haoke, Wuliang NongXiang for the Year of the Rabbit, etc. Meanwhile, certain low-priced
products were eliminated in pursuit of a higher brand value.
Secondly, the sell-through of products hit a record high. Vigorous actions were taken with regard to the
QR code-related prizes for consumers, banquet promotions, etc. A double-digit growth was achieved year on
year in the participants in the ―crack a bottle, scan the code, and win a prize‖ activities.
Thirdly, the brand image continued to improve. On-site publicity achieved full coverage in key markets,
and online promotions reached nearly two billion participants. Wuliang Chun (Spring), and Wuliang Chun (Rich
Flavor) were ranked 35th and 37th on the 2022 (28th) Top 100 Most Valuable Chinese Brands, representing
significant improvements in brand reputation.
Finally, market empowerment efforts proved to be accurate and effective. Through visits, social
meetings and regional seminars, as well as the launch of the 12 measures of "flexible and practical
empowerment", a variety of actions were taken to empower markets and serve distributors in a deeper manner to
promote the sustained, high-quality and healthy development of markets.
(III) Major Sales Models of the Company
Distribution model: This includes the traditional channel operator model, KA marketplace, etc., mainly
sold offline.
Direct-to-consumer model: This includes the group purchase model, where products are sold directly to
groups of consumers, the exclusive store model for the retail end and consumer groups, and the online sales
model, where products are sold through e-commerce platforms such as Tmall and JD.
(IV) Distribution Model
? Applicable □ Not applicable
Categories
Unit: RMB
Gross YoY change in YoY change in
YoY change in
Item Operating revenue Cost of sales profit operating gross profit
cost of sales
margin revenue margin
By sales model
Liquor products 67,562,646,631.24 12,242,850,024.31 81.88% 9.45% 0.63% 1.59%
Of which: Distribution
model
Direct-to-
consumer model
By product category
Liquor products 67,562,646,631.24 12,242,850,024.31 81.88% 9.45% 0.63% 1.59%
Of which: Wuliangye-
branded Baijiu products
Other liquor
products
Number of distributors of
Reason for change (more than
Region Wuliangye-branded Baijiu YoY change (number)
products
East China 691 129
South China 468 57 N/A
West China 466 74
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
North China 351 75
Central China 513 100
Subtotal 2,489 435
Number of distributors of
Region Wuliang NongXiang YoY change (number)
products
China 655 53
Total 3,144 488
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiang
products.
A distribution model is mainly used, with a "payment before delivery" settlement method. In the Reporting
Period, the total sales revenue from the top five distributors reached RMB9.8 billion, accounting for 13.25% of
the total sales revenue.
? Applicable □ Not applicable
Number of exclusive
Number of exclusive stores at the Reason for change (more than
Region stores at the beginning of
end of the Reporting Period 30%)
the Reporting Period
East China 411 443
South China 273 292
West China 291 286
N/A
North China 217 237
Central China 353 372
Total 1,545 1,630
? Applicable □ Not applicable
Product category Platform
Wuliangye-branded Baijiu products:
The 8th-generation Wuliangye Tmall, JD, and WeChat
Other liquor products:
Wuliang Chun (Spring), Wuliang Chun (Rich Flavor),
Tmall, JD, and WeChat
Wuliang Tequ, and Jianzhuang
Indicate whether any of the major products that accounted for more than 10% of the total operating revenue
in the current period saw a 30% or greater change in its selling price compared to the prior reporting period.
□ Applicable ? Not applicable
(V) Purchase Model and Purchased Items
Unit: RMB
Purchase model Purchased items Amount
Market-based purchase Raw materials and auxiliary materials, etc. 8,823,725,733.36
Market-based purchase Packaging materials 2,432,264,243.26
Market-based purchase Energy 515,505,433.53
Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30%
of the total purchase amount.
□ Applicable ? Not applicable
Indicate whether the price of any of the major raw materials purchased externally changed by more than 30%
year-on-year.
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(VI) Main Production Models
The Company's Baijiu products are all produced by itself.
Commissioned processing and production:
□ Applicable ? Not applicable
(VII) Production Volume and Inventory
Production volume (ton) Sales volume (ton) Inventory (ton)
Product
Wuliangye-
branded Baijiu 33,791 18.95% 32,768 12.21% 2,961 52.79% (note 2)
products
Other liquor
products
Total 129,328 -31.47% 127,161 -30.04% 23,328 10.24%
Notes: 1. The liquor referred to in the table above is all commercial liquor.
earlier than last year, and the inventory base in 2021 was low.
priced products; and the sales base of low-priced products in 2021 was high.
Category Inventory (ton)
Finished liquor 23,328
Semi-finished liquor (including base liquor) 182,849
Designed production Actual production capacity Production capacity in progress
Major product
capacity (’0,000 tons) (’0,000 tons) (’0,000 tons)
Liquor 14.2802 10.4316 6
Note: The liquor in the table above includes Baijiu and base fruit liquor.
III Core Competitiveness Analysis
The Company has five major competitive edges that are unique and unrepeatable, which represent its core
competitiveness.
The first is the geographical competitiveness. The unique natural environment and production techniques
have created a unique microbial zone within the Wuliangye Distillery.
The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pit
clusters dating back to the Ming and Qing dynasties, represented by Changfasheng and Lichuanyong, have been
in existence for more than 650 years, and are the earliest and largest cave-type fermentation pits in China with
uninterrupted production, which have scarcity value that is unrepeatable and non-reproducible.
Quality represents the third competitive edge. The five-grain formulas, the production secrets of
"growing, brewing, selecting, aging and mixing", and the unique "1366" traditional production technique that has
been identified as a national intangible cultural heritage have contributed to the outstanding quality of the
products of the Company. It is the only Baijiu producer to have won four China Quality Awards.
The fourth is the brand strength. Wuliangye is a time-honored brand with a history of over a thousand
years, beginning in the Tang Dynasty, emerging in the Song Dynasty, becoming famous in the Ming Dynasty,
and establishing the brandname in the Qing Dynasty. It is a symbol and leader of China’s strong-flavored Baijiu.
Finally, the consumer base. Strong-flavored Baijiu is the Baijiu category with the highest market share and
the largest consumer base. Being famous worldwide for its unique style of "lasting aroma, mellow, pleasant and
smooth taste, and harmonious, well-balanced and comprehensive flavors", Wuliangye has a wide and solid
consumer base.
IV Analysis of Principal Operations
During the Reporting Period, the Company adhered to the guidance of Xi Jinping’s Thought on Socialism
with Chinese Characteristics for a New Era, thoroughly implemented the key spirit and instructions of the 20th
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
National Congress of the Communist Party of China and General Secretary Xi Jinping's visit to Sichuan and
Yibin, and followed the general principle of "staying politically aware, driving development, improving people's
livelihood, ensuring safety, and delivering first-class performance". In accordance with the general requirements
of "focusing on stability, seeking progress in stability, and making more contributions", the Company adhered to
"focusing on and strengthening the principal operations", and continued to shore up weak spots, develop
strengths, rise to challenges and forge ahead against headwinds. As a result, it performed well in both stable
current year growth and long-term growth planning, and delivered improvements in both financial results and
development quality. In 2022, the Company achieved operating revenue of RMB73.969 billion, up 11.72% year
on year, and a net profit attributable to its shareholders of RMB26.691 billion, up 14.17% year on year. This
represented a new stage for the development of the Company. Wuliangye's finished Baijiu production and sales
grew steadily, matching the expansion in the high-end markets. The brand value has increased by 12.08% to
RMB364.619 billion on top of five consecutive years of double-digit growth. For that, it becomes the only Baijiu
producer in China to have won the ―2022 Best China Brand‖.
Meanwhile, significant progress has been made in product mix, cultural development, branding, marketing
reform, technological innovation and long-term planning.
Firstly, the product mix continued to improve. In the year, 12 brands were eliminated; the packaging
design of the 8th-generation Wuliangye and low-alcohol Wuliangye products was refined; and a variety of
cultural Baijiu products including Harmonious China, Lucky Panda, and Year of the Rabbit Baijiu were launched,
which are all well-received among consumers. As for the Wuliang NongXiang products, the Company adhered to
―three focuses‖, with Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, Jianzhuang and
other key national strategic products and regional brands all seeing a stronger presence.
Secondly, cultural development efforts produced a wide range of results. The scenic spot of Wuliangye
has been selected as one of the first scenic spots as national intangible cultural heritages and a national
demonstration base for industrial tourism. The international proposal collection for the Chinese Baijiu cultural
sanctuary and Yuanshui area was completed, and the construction of the 501 ancient fermentation pits-Chinese
Baijiu cultural sanctuary and the gateway for world-class Baijiu producers was in full swing. Additionally, the
Wuliangye old fermentation pit site was approved as the only restoration project in the Baijiu category for the
Thirdly, impressive results have been achieved in branding. The new brand concept of ―Aroma of the
Nation, Harmony of Wuliangye, Masterpiece of Chinese Baijiu‖ has been established, and a number of cultural
IPs have been created, including the "Harmony Cultural Festival", "1218 Super Fan Festival" and "Rose
Wedding Ceremony". 10 new Wuliangye Cultural Experience Halls have been established in Shanghai,
Guangdong and other key and high-end markets. Joining hands with high-end platforms, the Company
participated in a deep manner in top international and domestic political and business events such as APEC,
Boao Forum for Asia and the China International Import Expo. Meanwhile, the Company stepped up its
cooperation with CCTV, People's Daily, Xinhua News Agency and other mainstream media to effectively tell the
brand, cultural and production technique stories of Wuliangye, further improving the reputation of the brand.
Fourthly, marketing reform carried on in a deeper manner. A marketing strategy of "headquarters
responsible for overall marketing and regional marketing divisions responsible for regional marketing" has been
adopted, with 21 regional marketing divisions adjusted to 26, enabling better responsiveness to market changes,
more accurate strategies, and more thoughtful services. Further, the Company strengthened market expansion
with nearly 100 new exclusive stores and steady improvement in the operations of Wuliangye New Retail.
Fifthly, it was a fruitful year in technological innovation. The innovation platform system has become
more complete. With the new China Scientific Research Centre for Baijiu Flavour and the China Engineering
and Technology Research Centre for Baijiu Brewing Grains, the number of the Company’s national innovation
platforms has increased to seven. A major technological breakthrough was achieved, with the discovery and
announcement of three typical microbial strains of strong-flavored Baijiu for the first time in the world, verifying
the scarcity value of Wuliangye's special brewing environment and deciphering the key to the aroma of the
nation. For the first time in the world, the 8th-generation Wuliangye flavour spectrum has been unveiled with
approximately 3,000 compounds found, around 1,000 compounds more than the industry average. A number of
technological achievements have been recognized as internationally advanced, and four of them including the
research on new strains in old fermentation pit mud for strong-flavored Baijiu have been published as key
scientific and technological achievements of the Chinese Baijiu.
Finally, key projects progressed well. In pursuit of long-term growth, the Company launched the 345 high
quality and fast growth programme. To be specific, the 523 workshop 2,000-ton capacity expansion project, the
operation; main constructions have been completed for the Baijiu blending and storage cellar renovation project
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
and the intelligent packaging and warehousing integration project; and construction has started for the 100,000-
ton ecological brewery phase I and phase II projects, the 110kV power distribution system renovation project,
the Jiangbei water supply system upgrade project, the qu production capacity expansion project, and the
centralised waste water treatment plant project.
(1) Breakdown of Operating Revenue
Unit: RMB
As % of As % of
total total Change (%)
Operating revenue Operating revenue
operating operating
revenue (%) revenue (%)
Total 73,968,640,704.54 100.00% 66,209,053,612.11 100.00% 11.72%
By operating division
Manufacturing 73,968,640,704.54 100.00% 66,209,053,612.11 100.00% 11.72%
By product category
Liquor products 67,562,646,631.24 91.34% 61,731,839,992.96 93.24% 9.45%
Of which: Wuliangye-
branded Baijiu products
Other liquor
products
Plastic products 3,201,867,776.04 4.33% 2,509,011,509.24 3.79% 27.61%
Printing 138,273,774.15 0.19% 138,217,423.29 0.21% 0.04%
Glass bottles 119,011,295.97 0.16% 135,971,277.27 0.21% -12.47%
Other 2,946,841,227.14 3.98% 1,694,013,409.35 2.56% 73.96% (note 2)
By operating segment (note 1)
Liquor products 67,562,646,631.24 91.34% 61,731,839,992.96 93.24% 9.45%
Of which: East China 18,985,619,872.12 25.67% 18,782,177,440.32 28.37% 1.08%
South China 7,481,640,730.11 10.11% 7,430,135,341.39 11.22% 0.69%
West China 21,538,460,675.15 29.12% 16,979,243,862.88 25.64% 26.85%
North China 8,414,668,164.38 11.38% 7,535,414,625.22 11.38% 11.67%
Central China 11,142,257,189.48 15.06% 11,004,868,723.15 16.62% 1.25%
Non-liquor products 6,405,994,073.30 8.66% 4,477,213,619.15 6.76% 43.08% (note 2)
By sales model
Liquor products 67,562,646,631.24 91.34% 61,731,839,992.96 93.24% 9.45%
Of which: Distribution
model
Direct-to-
consumer model
Non-liquor products 6,405,994,073.30 8.66% 4,477,213,619.15 6.76% 43.08% (note 2)
Notes: 1. The sales regions are divided based on the places of registration of customers.
(2) Operating Division, Product Category, Operating Segment or Sales Model Contributing over 10% of
Operating Revenue or Operating Profit
? Applicable □ Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
YoY
YoY change in
Gross YoY change in
change in gross
Operating revenue Cost of sales profit operating
cost of profit
margin revenue (%)
sales (%) margin
(%)
By operating division
Manufacturing
(Liquor production)
By product category
Liquor products 67,562,646,631.24 12,242,850,024.31 81.88% 9.45% 0.63% 1.59%
Of which:
Wuliangye-branded 55,335,178,077.41 7,434,393,364.78 86.56% 12.67% 5.06% 0.97%
Baijiu products
Other liquor
products
By operating segment
Liquor products 67,562,646,631.24 12,242,850,024.31 81.88% 9.45% 0.63% 1.59%
Of which: East
China
South China 7,481,640,730.11 1,126,829,964.29 84.94% 0.69% -4.05% 0.75%
West China 21,538,460,675.15 4,731,384,798.37 78.03% 26.85% 15.97% 2.06%
North China 8,414,668,164.38 1,181,126,024.59 85.96% 11.67% -5.23% 2.50%
Central China 11,142,257,189.48 2,392,992,899.47 78.52% 1.25% 6.21% -1.01%
By sales model
Liquor products 67,562,646,631.24 12,242,850,024.31 81.88% 9.45% 0.63% 1.59%
Of which:
Distribution model
Direct-to-
consumer model
Data of principal operations for the prior period (2021) adjusted according to the changed methods of
measurement that occurred in the Reporting Period (if any):
? Applicable □ Not applicable
Unit: RMB
YoY
YoY change
Gross change in YoY change
in gross
Operating revenue Cost of sales profit operating in cost of
profit
margin revenue sales (%)
margin (%)
(%)
By sales model
Liquor products 61,731,839,992.96 12,165,790,903.99 80.29% 17.73% 17.63% 0.01%
Of which:
Distribution model
Direct-to-
consumer model
Reasons for the changed methods of measurement:
The Company accelerated the construction of Smart Store 2.0 to enhance the service capability at the retail
end and positioned the exclusive stores as the core of direct services for retail customers, in view of which the
Company adjusted the exclusive stores to the direct-to-consumer model.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
? Yes □ No
Operating division Item Unit 2022 2021 Change (%)
Sales volume Metric ton 127,161 181,775 -30.04% (note)
Liquor Production volume Metric ton 129,328 188,717 -31.47% (note)
Inventory Metric ton 23,328 21,161 10.24%
Any over 30% YoY movements in the data above and why:
? Applicable □ Not applicable
Note: Mainly because Wuliang NongXiang optimized its product mix in 2022 to focus on mid- to high-
priced products; and the sales base of low-priced products in 2021 was high.
(4) Execution Progress of Significant Signed Sales or Purchase Contracts in the Reporting Period
□ Applicable ? Not applicable
(5) Breakdown of Cost of Sales
Unit: RMB
Operating As % of As % of total Change in
Item
division Cost of sales total cost of Cost of sales cost of sales percentage
sales (%) (%)
Raw
materials
Labor cost 5,705,800,119.67 31.39% 5,141,719,582.95 31.51% -0.12%
Manufacturing
Energy 934,705,836.04 5.14% 947,639,638.53 5.81% -0.67%
Productio
n cost
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
? Yes □ No
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,
the Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and Yibin
Wuliangye Xinshengdai Liquor Co., Ltd., were de-registered.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable ? Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 9,799,743,491.32
Total sales to top five customers as % of total sales in the
Reporting Period (%)
Total sales to related parties among top five customers as % of
total sales in the Reporting Period (%)
Top five customers:
As % of total sales in the
No. Customer Sales to the customer (RMB)
Reporting Period (%)
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Total -- 9,799,743,491.32 13.25%
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 2,816,306,970.68
Total purchases from top five suppliers as % of total purchases
in the Reporting Period (%)
Total purchases from related parties among top five suppliers
as % of total purchases in the Reporting Period (%)
Top five suppliers:
As % of total purchases in the
No. Supplier Purchases (RMB)
Reporting Period (%)
Total -- 2,816,306,970.68 22.22%
Other information about major suppliers:
□ Applicable ? Not applicable
Unit: RMB
Main reason for any significant
Item 2022 2021 Change (%)
change
Selling expense 6,844,237,013.17 6,503,506,131.90 5.24%
Administrative expense 3,068,119,268.45 2,899,968,867.37 5.80%
Finance costs -2,026,351,047.92 -1,731,702,085.22 N/A
Greater investments in R&D
R&D expense 235,783,645.79 177,411,727.65 32.90% projects such as production
techniques
(1) Breakdown of Selling Expense
Unit: RMB
Reason for
Item As % of selling As % of selling Change (%)
Amount Amount change
expense expense
Image promotion
expense
Sales promotion
expense
Warehousing and
logistics expense
Labor cost 718,179,395.38 10.49% 611,192,688.42 9.40% 17.50%
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Other expenses 519,536,560.04 7.59% 475,538,836.35 7.31% 9.25%
Total 6,844,237,013.17 6,503,506,131.90 5.24%
(2) Advertising Expense
During 2022, the Company’s primary advertising means included TV, broadcasting, Internet, outdoor ads
and exhibitions. The expenses on online, offline and TV ads were RMB126 million, RMB755 million and
RMB359 million, respectively.
? Applicable □ Not applicable
Specific Expected impact on the
Main R&D project Purpose Progress
objectives Company
The project is
(1) The new strain (code:
designed to
JNU-WLY1368; Chinese
replicate the
name: 解糖利乳己小杆菌)
similar function
of the main caproic acid
of naturally The project will expedite the
bacteria in the strong- The project
ageing pit mud ageing of the new fermentation
flavoured pit mud has been aims to screen
with modern pits and pit mud, continuously
obtained. (2) The first functional
biotechnology and increase the yield rate of high-
Research on the purely cultured new species microorganisms
obtain man-made quality unblended Baijiu,
replication of the pit (code: JNU-WLY501; in the pit mud
ageing pit mud especially the famous wine rate,
mud engineering Chinese name: 501 丙酸菌) and use them
with a similar and help Wuliangye safeguard
technology with of the proteiniphilum for man-made
flavour of its advantageous position as
modern microorganism in the pit ageing of the pit
naturally ageing China's largest brewing base
biotechnology and mud has been obtained. (3) mud and
pit mud and using the pure-grain solid
its application in the In terms of achievements, conduct a large-
microbial flora fermentation technique, keep in
Wuliangye high- major breakthroughs have scale production
during brewing, alignment with the development
quality been made in the research and application
thereby enabling trend of the Baijiu industry,
multiplication on the new species, demonstration
man-made pit meet people's increasing
project metabolic mechanisms, and in Wuliangye
mud to rapidly demand for quality Baijiu, and
interaction of characteristic Baijiu
age and consolidate Wuliangye's status
microorganisms in the production
contributing to the as a leader in strong-flavoured
strong-flavoured Baijiu workshops.
construction of Baijiu.
brewing system, and the
the new plant in
overall technology has
the high-quality
reached an internationally
multiplication
advanced level.
project.
The project is
designed to
establish a data
(1) More than 100 small
bank of small
active molecules in The project
bioactive The project will help analyse the
Wuliangye Baobaoqu, aims to analyse
molecules during small bioactive molecules
fermented grains, brewing the small
Key technology for the brewing of during the brewing of the
byproducts, and Baijiu have bioactive
analysing small Wuliangye, representative of strong-
been separated and molecules
bioactive molecules providing flavoured Baijiu--Wuliangye,
identified. (2) Thirteen during the
during the brewing technical support provide a scientific basis for
invention patents have been brewing of
of Wuliangye and for research on rational drinking, and play a
applied for (nine of them Wuliangye and
its application the active critical role in improving Baijiu
have been granted), eleven use them for
ingredients in quality and expanding the Baijiu
papers have been published, quality control
Baijiu and a data market.
and one corporate standard of Baijiu.
basis for
has been formulated.
"moderate
drinking and
healthy living".
Development of The project is (1) The R&D of key The project The dissemination and
Wuliangye designed to brewing equipment has aims to apply application of the project result
intelligent brewing inherit the essence been completed, and a pilot the will enable the bionic equipment
production line and of the traditional demonstration line has been demonstration to imitate flexible manual
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
research on production built. (2) The application of line on a certain operation, achieve the scientific
supporting technique and the designed intelligent scale in the analysis of the traditional
production develop brewing production line in brewing plants brewing technique, and
technique intelligent bionic the intelligent brewing base of Wuliangye. transform the experience- and
brewing in the first phase of the skill-dominated production
equipment by Wuliangye high-quality process toward a human-
focusing on the multiplication project has machine collaborative
core brewing been confirmed. Currently, production process. This will
process of the base has proceeded to help inherit the traditional
Wuliangye, construction. (3) More than production technique, stabilize
thereby reducing 60 patent applications have the traditional production
labour intensity been filed. technique operation, and
during improve product quality.
production, Concurrently, applying
improving intelligent equipment can lower
production labour costs and boost the
efficiency, and labour efficiency of brewing
promoting the production lines.
perfect integration
of the traditional
production
technique and
modern
technology.
Particulars about R&D personnel:
Number of R&D personnel 2,574 2,571 0.12%
R&D personnel as % of total
employees
Educational background of R&D personnel
Bachelor’s degree 915 899 1.78%
Master’s degree 171 168 1.79%
Doctoral degree 14 13 7.69%
Age structure of R&D personnel
Below 30 860 857 0.35%
Particulars about R&D investments:
R&D investments (RMB) 235,783,645.79 177,411,727.65 32.90% (note)
R&D investments as % of operating
revenue
Capitalized R&D investments (RMB) 0.00 0.00 0.00%
Capitalized R&D investments as % of
total R&D investments
Note: Mainly due to greater investments in R&D projects such as production techniques.
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ? Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
Unit: RMB
Item 2022 2021 Change (%)
Subtotal of cash generated from
operating activities
Subtotal of cash used in
operating activities
Net cash generated from/used in
operating activities
Subtotal of cash generated from
investing activities
Subtotal of cash used in investing
activities
Net cash generated from/used in
-1,716,454,550.53 -1,496,849,812.04 N/A
investing activities
Subtotal of cash generated from
financing activities
Subtotal of cash used in
financing activities
Net cash generated from/used in
-13,105,431,458.20 -11,269,456,954.06 N/A
financing activities
Net increase in cash and cash
equivalents
Explanation of why any of the data above varies significantly on a year-on-year basis:
? Applicable □ Not applicable
Notes: 1. Mainly due to the increased net cash proceeds from the disposal of fixed assets, intangible assets and
other long-term assets in the Reporting Period.
the year-on-year decrease in net cash generated from operating activities as a result of a slight increase in cash
generated from operating activities and the increased taxes and levies paid, etc., and the increased cash dividends
paid in the Reporting Period.
Explanation of why the net cash generated from/used in operating activities varies significantly from the net
profit of the Reporting Period:
□ Applicable ? Not applicable
V Analysis of Non-Core Businesses
□ Applicable ? Not applicable
VI Analysis of Assets and Liabilities
Unit: RMB
Change in
for any
As % of total As % of total percentag
Amount Amount significant
assets assets e (%)
change
Monetary assets 92,358,426,975.79 60.48% 82,335,955,927.74 60.71% -0.23%
Accounts
receivable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Inventories 15,980,657,013.57 10.46% 14,015,067,118.25 10.33% 0.13%
Long-term
equity 1,986,387,524.78 1.30% 1,911,228,653.63 1.41% -0.11%
investments
Fixed assets 5,312,971,445.61 3.48% 5,610,147,000.37 4.14% -0.66%
Construction in
progress
Right-of-use
assets
Contract
liabilities
Lease liabilities 16,976,148.73 0.01% 355,338,950.93 0.26% -0.25%
Indicate whether overseas assets account for a large proportion in total assets.
□ Applicable ? Not applicable
? Applicable □ Not applicable
Unit: RMB
Gain/l
Purc
oss on Cumulat Impair
hase Sold
fair- ive fair- ment
d in in the
value value allowa
the curre
Item Opening amount change changes nce for Other changes Closing amount
curr nt
s in recogniz the
ent perio
the ed in current
peri d
current equity period
od
period
Financial assets
financial assets
(exclusive of derivative
financial assets)
assets
investments
Subtotal of financial
assets
Investment property
Productive living assets
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Other
Total of the above 1,642,709,588.69 27,262,688,831.75 28,905,398,420.44
Financial liabilities
Contents of other changes:
The Company classified the portion of bank's acceptance notes received that were to be endorsed or
discounted as receivables financing, and other changes during the current period represented the net amount
recognized and utilized during the current period.
Indicate whether any significant change occurred to the measurement attributes of the major assets in the
Reporting Period.
□ Yes ? No
? Applicable □ Not applicable
Unit: RMB
Item Closing carrying amount Reason for restriction
The balance of RMB3,222.19 in the securities trading account with the Yibin
Business Department of Essence Securities, security deposits of
Monetary assets 192,532,713.23
RMB192,004,714.62 for bank acceptance notes, and other security deposits of
RMB524,776.42
Receivables financing 117,021,640.00 In pledge for bank acceptance notes
Total 309,554,353.23
VII Investment Analysis
□ Applicable ? Not applicable
□ Applicable ? Not applicable
□ Applicable ? Not applicable
(1) Securities Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
? Applicable □ Not applicable
(1) General Information about the Use of Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
Re- Cumulat Purpose
Amount
purpose ive re- and
Unuse being
Used in the d Cumulative purpose whereab
Year of Total amount Cumulatively d idle for
Way of raising current amount re-purposed d outs of
raising raised used amoun more
period in the amount amount the
t than two
Reportin as % of unused
years
g Period total amount
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
amount
raised
Private placement of
shares
Total -- 185,327.74 45,360.72 193,500.84 0 169,405.51 91.41% 0 -- 0
General information about the use of raised funds
As of 31 December 2022, The Company had used up the total raised funds of RMB1,935 million (including the net proceeds of
RMB1,813 million and the interest income of RMB122 million).
(2) Promised Use of Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
Promised
raised Retur
Total Investm Signifi
funds Re- Time ns Meeti
promised ent cant
investmen purpose when the deriv ng the
investme Adjusted Cumulatively progress change
t project d or Used in the project is ed in expect
nt total used as of the as of the to
and partiall Reporting period- ready for the ed
amount investment period-end project
investmen y re- Period its Repor return
with amount (1) (2) end (3) feasibil
ts with purpose intended ting s or
raised ＝ ity or
over- d or not use Perio not
funds (2)/(1) not
raised d
funds
Promised projects
Informatio
n
technolog 100.00
Yes 71,530 5,644.64 5,644.64 N/A N/A N/A No
y-based %
transform
ation
Constructi
on of a 100.00
Yes 50,793 3,944.06 3,944.06 N/A N/A N/A No
marketing %
center
Service-
oriented e- 100.00
Yes 63,074 8,434.04 8,434.04 N/A N/A N/A No
commerce %
platform
Finished
liquor
packaging
and
Expecte
intelligent
warehousi No 94,422.74 28,795.55 98,132.23 N/A N/A No
% Decem
ng and
ber
distributio
n
integratio
n
Baijiu No 74,982.77 16,565.17 77,345.87 103.15 N/A N/A No
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
blending %
and
storage
cellar
renovation
Subtotal
of
-- 185,397 187,428.25 45,360.72 193,500.84 -- -- -- --
promised
projects
Investments with over-raised funds
Total -- 185,397 187,428.25 45,360.72 193,500.84 -- -- 0 -- --
Explain
project by
project the
reasons
for not
reaching
the
scheduled
progress
or
expected
N/A
returns
(including
reasons
for
inputting
―N/A‖ for
―Meeting
the
expected
returns or
not‖)
Particulars
about
significant
N/A
change to
project
feasibility
Amount,
purpose
and use
progress N/A
of over-
raised
funds
Change of
implement
ation
location of
N/A
raised
funds
investmen
t projects
Adjustme
nts to the
way of
implement N/A
ation of
raised
funds
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
investmen
t projects
Advance
investmen
ts in
promised
projects
funded N/A
with
raised
funds and
subsequen
t swaps
Use of
idle raised
funds for
temporaril
y N/A
suppleme
nting the
working
capital
Surplus
amount of
raised
funds
upon
N/A
project
implement
ation and
the
reasons
Purpose
and
whereabo
uts of N/A
unused
raised
funds
Problems
or other
issues
arising in
the use N/A
and
disclosure
of raised
funds
(3) Re-purposed Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
Investmen
Total raised Returns Meeting Significant
Cumulativel t progress Time when the
funds to be Used in the derived the change to the
y used as of as of the project is
New project Former project invested in Reporting in the expected feasibility of
the period- period-end ready for its
the new Period Reportin returns or the new project
end (2) (3)＝ intended use
project (1) g Period not or not
(2)/(1)
Finished Information
Expectedly
Liquor technology-
packaging based
and transformation,
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
intelligent construction of
warehousin a marketing
g and center, and
distribution service-
integration oriented e-
Baijiu commerce
blending platform
and storage 74,982.77 16,565.17 77,345.87 103.15% N/A N/A No
cellar
renovation
Total -- 169,405.51 45,360.72 175,478.1 -- -- -- --
The Proposal on Changes to the Purpose and User of Funds Raised in a Private Placement
was approved at the 73rd Meeting of the Fifth Board of Directors on 24 April 2020 and then
at the 2019 Annual General Meeting of Shareholders on 29 May 2020. As such, it was
Reasons for the changes, decision-making agreed to change the purpose of the raised funds, and change the user from Sichuan Yibin
procedure executed and relevant disclosed Wuliangye Supply and Marketing Co., Ltd. to Sichuan Yibin Wuliangye Distillery Co., Ltd.
information (project by project) For further information, see the Announcement on Resolutions of the 73rd Meeting of the
Fifth Board of Directors, the Announcement on Resolutions of the 2019 Annual General
Meeting of Shareholders, and the Announcement on Signing a Four-party Supervision
Agreement for the Special Account for Raised Funds for a Private Placement.
Reasons for not reaching the scheduled
progress or expected returns (project by N/A
project)
Particulars about significant change to the
N/A
feasibility of the new projects
VIII Sale of Major Assets and Equity Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
IX Principal Subsidiaries and Joint Stock Companies
? Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Relationsh
Principal
Name ip with the Registered capital Total assets Net assets
activities
Company
Liquor-
Yibin Wuliangye Liquor Sales Co.,
Subsidiary related 200,000,000.00 54,143,959,635.14 30,465,929,640.29
Ltd.
operations
Unit: RMB
Name Relationsh Principal Operating revenue Operating profit Net profit
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
ip with the activities
Company
Liquor-
Yibin Wuliangye Liquor Sales Co.,
Subsidiary related 55,106,792,873.09 26,483,924,329.02 19,857,416,073.60
Ltd.
operations
Subsidiaries acquired or disposed of in the Reporting Period:
? Applicable □ Not applicable
Way of acquisition
Name of company Impact on the Company
or disposal
As per the Three-year Action for the Reform of State-owned Enterprises
at Provincial and Municipal Levels (2020～2022), in order to optimize
the branch company and subsidiary allocation as a state-owned
Yibin Wuliangye Xinshengdai
enterprise, the Company has strengthened the disposal of less
Liquor Co., Ltd. and Wuhou De-registered
competitive business entities that are not part of its principal operations.
Cultural Development Co., Ltd.
In 2022, two subsidiaries of the Company, namely Wuhou Cultural
Development Co., Ltd. and Yibin Wuliangye Xinshengdai Liquor Co.,
Ltd., were de-registered.
X Structured Entities Controlled by the Company
□ Applicable ? Not applicable
XI Prospects
(I) Industry Landscape and Trends
From a macroeconomic point of view, China's economy remains resilient with great potential and vitality,
and the conditions that support the country’s achievement of high-quality development have not changed. In
particular, governments at all levels have prioritised the recovery and expansion of consumption in 2023,
providing multiple channels to increase the income of urban and rural residents, which will accelerate the
recovery of consumption.
For the Baijiu industry, growth is a long-term trend. The structural prosperity of the industry is accelerating
towards strong brands, top producers, and major regions of production, with better overall efficiency. With
consumption gradually recovering, the Baijiu industry is ushering in a new round of strategic opportunities.
In terms of policy-related opportunities, the Central Committee of the Communist Party of China and the
State Council jointly issued a strategic planning outline for expanding domestic demand. With expanding
domestic demand being lifted as a national strategy, the potential for Baijiu consumption remains huge.
Meanwhile, Sichuan Province takes the development of distinctive industries and strategic emerging industries
as a key task, vigorously implementing a plan to drive the quality and growth of these industries. In addition,
Yibin City supports Wuliangye to lead the way in the creation of a world-class premium Baijiu industry cluster.
As such, the Company will embrace multiple strategic opportunities.
(II) Development Strategies of the Company: The Company will vigorously implement the 135
development strategy. With an aim to develop into a world-leading Baijiu producer with superior products,
strong brands, advanced innovation and modern governance, the Company will promote the three major
programmes of quality brands, marketing innovation and high-quality & fast growth, and make every effort to
build an ecological and quality-oriented Wuliangye with culture as the foundation, digital transformation as the
driver and sound corporate governance as the support. It will further polish the signboard of "Aroma of the
Nation, Harmony of Wuliangye, Masterpiece of Chinese Baijiu", and lead the way in the creation of a world-
class premium Baijiu industry cluster.
(III) Completion of the Business Plan for 2022
year.
(IV) Development Goals for 2023
The Company's operation goal for 2023: A continued double-digit growth in operating revenue.
In 2023, the Company will follow the general principle of "staying politically aware, driving development,
improving people's livelihood, ensuring safety, and delivering first-class performance", comply with the general
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
requirements of "focusing on stability, seeking progress in stability, improving quality and efficiency, as well as
making more contributions", and adhere to the philosophy of "taking quality, culture, integrity and innovation as
the foundation". Proactive actions will be taken to shore up weak spots, develop strengths, as well as strive for
high-quality development and sound financial growth, so as to further solidify the Company’s position as a
leading producer of strong-flavored Baijiu in China.
(V) Potential Risks
Firstly, there exist uncertainties in the macro environment; secondly, consumption is not recovering in an
expected pace; and finally, competition in the industry, especially among the top players, is increasingly intense.
XII Researches, Inquiries, Interviews, etc. Received during the Reporting Period
? Applicable □ Not applicable
Main
discussi
ons and
Type of
Way of material Index to the
the
Date Place communicat Communication party s relevant
communic
ion provide information
ation party
d by the
Compan
y
AEGON-INDUSTRIAL
Fund
HSBC Qianhai,
One-on-one Greenwoods Asset
meeting Management, and Allianz
Capital Partners
Fullgoal Fund, China
and BOCOM Schroders
Taikang, China Universal,
One-on-one
meeting
Asset Management
China Merchants Fund, The
Yinhua Fund y’s
develop
ment
cninfo.com.
Securities strategie
E Fund, China Merchants cn
firm’s s,
Fund, Invesco Great Wall producti
Fund Management, and on and
strategy
Taikang Asset operatio
conference
n status
CCB Wealth Management,
By phone
Ping An Fund Management,
BOCIM, and China
one meeting
Southern Asset Management
China Life Asset, ICBC
Credit Suisse Asset
and Nuode Asset
Management
Zhong Ou Asset, Yinhua
Asset Management
One-on-one
by phone
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
China Southern Asset
General Institution
Management, Invesco Great
Wall Fund Management,
shareholders individual
and Great Wall Fund
JPMorgan Chase, UBS
One-on-one
meeting
Canada Pension Plan
Fidelity, Tiger Pacific
and Fullgoal Fund
Panjing Invest, PICC Asset
One-on-one
Management, Penghua
Fund, and Canada Pension
by phone
Plan
Invesco Great Wall Fund
Management, Citibank,
Ninetyone, and Goldman
Sachs Asset Management
Zhongtai Securities and
Yongjin Investment
One-on-one Northeast Securities, CICC,
meeting and Anatole Investment
Bosera Funds, Orient
By phone Securities Asset
one meeting Management, and
BlackRock
Zheshang Securities,
By phone Fullgoal Fund, Western
Yibin and
Chengdu
one meeting Securities, Tebon Securities,
and GF Fund Management
Huatai Securities, China
One-on-one
meeting
Universal
By phone Bosera Funds, Brilliance
one meeting Universal
One-on-one
meeting
Securities
China Universal, Mega
firm’s
Trust, Bank of China Asset
Management, and AEGON-
strategy
INDUSTRIAL Fund
conference
Minsheng Securities and
Ping An Annuity Insurance
Securities AEGON-INDUSTRIAL
Shanghai,
firm’s Fund, Fullgoal Fund,
Qingdao
and
strategy Zhong Ou Asset, and
Changsha
conference Sinolink Securities
GF Fund Management,
Sealand Asset Management
First Seafront and BOCOM
Schroders
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
By phone
and
China Asset Management,
securities
GF Fund Management,
HuaAn Fund, Tongben
investment
Invest, and Loyal Valley
strategy
conference
Securities Ping An Fund Management,
firm’s Guotai Asset Management,
strategy Invest, Cinda Fund, and
conference Bosera Funds
China Universal, New China
Schroders
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part IV Corporate Governance
I Corporate Governance Overview
In 2022, focusing closely on the development goal of building a world-class enterprise with modern
governance, the Company continued to improve its corporate governance structure, optimize its mechanisms, as
well as accelerate the establishment of a well-organized, well-coordinated and well-balanced corporate
governance mechanism.
Company completed the re-election of the sixth Board of Directors and the sixth Supervisory Committee.
Meanwhile, staffing has been further improved for the five special committees under the Board of Directors,
namely the Strategy Committee, the Remuneration and Appraisal Committee, the Nomination Committee, the
Audit Committee, and the Comprehensive Budget Management Committee. And new senior executives have
been appointed by the Board of Directors. As such, a well-coordinated and well-balanced corporate governance
mechanism has been put in place, enabling scientific decision-making and efficient operation.
the Articles of Association, the Rules of Procedure for General Meetings of Shareholders, the Rules of Procedure
for the Board of Directors, the Operational Rules for Major Decision-making, Personnel Appointments and
Dismissals, Project Arrangements and Operation of Large Sums of Money, etc., which has further refined the
system of rules. As such, a sound mechanism of categorised and tiered delegation of authority has been put in
place to ensure that each governance body has its own role to play.
Indicate whether there is any material incompliance with the applicable laws, regulations, or rules issued by
the CSRC governing the governance of listed companies.
□ Yes ? No
No such cases.
II Independence of the Company from its Controlling Shareholder and Actual Controller in
Assets, Personnel, Finance, Organizational Structure, Business, etc.
The Company is independent of its controlling shareholder in business, personnel, assets, organizational
structure, finance, etc. It has independent and complete systems of production and operation and is able to
operate on its own.
In terms of business, the Company has independent production and operation systems, production
supporting systems and related ancillary facilities. It is able to make decisions on its own with respect to
operating activities.
In terms of personnel, the Company independently manages labor, human resources and salaries.
In terms of assets, the Company has ownership and control of its assets, and the controlling shareholder
does not occupy its assets or funds.
In terms of organizational structure, the principal management organs and systems for production and
operation of the Company are independent.
In terms of finance, the Company has an independent financial organ, independent accounting system and
financial management mechanism, and has its own bank account.
III Horizontal Competition
□ Applicable ? Not applicable
IV Annual and Extraordinary General Meetings of Shareholders Convened during the
Reporting Period
Investor
Meeting Type Date of the meeting Disclosure date Resolutions
participation ratio
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
See the Announcement
on Resolutions of the
The 2021 Annual Annual General
General Meeting of Meeting of 71.49% 27 May 2022 28 May 2022
Meeting of
Shareholders Shareholders
Shareholders
(2022/No. 028)
with Resumed Voting Rights
□ Applicable ? Not applicable
V Directors, Supervisors and Senior Management
Increa Decrea
Other Reaso
Opening se in se in Closing
increas n for
Stat Gen sharehol the the sharehol
Name Office title Age Start of office term End of office term e/decr share
us der ding current current ding
ease change
(share) period period (share)
(share) s
(share) (share)
Secretary of
the CPC Incu 28 January 2022
Zeng Mal
Committee mbe 54 Currently ongoing
Congqin e
Chairman of nt
the Board
Deputy
Secretary of
the CPC
Committee Incu
Jiang Mal
Vice mbe 56 Currently ongoing
Wenge e
Chairman of nt
the Board 27 May 2022
and General
Manager
Member of
the CPC 30 December 2020
Committee Incu
Zhang Mal
mbe 48 Currently ongoing
Yu Vice e
nt
Chairman of 27 May 2022
the Board
Incu
Fem
Liang Li Director mbe 52 27 May 2022 Currently ongoing
ale
nt
Incu
Fem
Xu Bo Director mbe 55 27 May 2022 Currently ongoing
ale
nt
Deputy
Secretary of Incu
Xiao 15 December 2021
the CPC mbe Mal 46 Currently ongoing
Hao Committee nt e
Director 27 May 2022
Member of
Jiang the CPC Incu Fem 22 February 2022
Lin Committee mbe ale 43 Currently ongoing
nt
Director and 27 May 2022
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Deputy
General
Manager
Board
Secretary
Incu
Xie Independent Mal
mbe 63 27 May 2022 Currently ongoing
Zhihua Director e
nt
Incu
Independent Mal
Wu Yue mbe 56 27 May 2022 Currently ongoing
Director e
nt
Incu
Hou Independent Mal
mbe 67 27 May 2022 Currently ongoing
Shuiping Director e
nt
Incu
Luo Independent Mal
mbe 53 27 May 2022 Currently ongoing
Huawei Director e
nt
Member of
the CPC 22 February 2022
Committee Incu
Liu Mal
Chairman of mbe e 52 Currently ongoing 6,065
Ming
the nt
Supervisory
Committee
Incu
Zhang Mal
Supervisor mbe 53 27 May 2022 Currently ongoing
Xin e
nt
Incu
Zhang Employee Mal
mbe 57 27 May 2022 Currently ongoing 12,730
Qing Supervisor e
nt
Grante
d
under
Incu emplo
Wu Employee Mal
mbe 53 27 May 2022 Currently ongoing 17,594 40,988 yee
Guoping Supervisor e
nt stock
owner
ship
plan
Member of
the CPC Incu 23 May 2022
Yang Fem
Committee mbe 51 Currently ongoing 15,894
Yunxia ale
Chief nt
Engineer
Member of
the CPC Incu 22 February 2022
Mal
Jiang Jia Committee mbe 48 Currently ongoing 11,841
e
Chief nt
Economist
Member of
Incu
Xie the CPC Mal 26 October 2022
mbe 54 Currently ongoing
Zhiping Committee e
nt
CFO 4 November 2022
Yue Deputy Incu Mal 50 27 May 2022 Currently ongoing 9,819
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Song General mbe e
Manager nt
Deputy Incu
Liu Mal
General mbe 44 27 May 2022 Currently ongoing
Yang e
Manager nt
Deputy Incu
Mal
Li Jian General mbe 48 27 May 2022 Currently ongoing
e
Manager nt
Secretary of
Li
the CPC For Mal
Shuguan 60 21 April 2017 18 February 2022
Committee mer e
g
and Director
Member of
the CPC
Committee,
Vice For Mal
Zou Tao 44 21 July 2018 18 February 2022
Chairman of mer e
the Board
and General
Manager
Member of
the CPC
Committee,
For Mal
Luo Wei Deputy 58 18 July 2014 4 November 2022
mer e
General
Manager
and CFO
Zhou Independent For Mal
Yousu Director mer e
Gan
Independent For Mal
Shengda 56 18 November 2016 27 May 2022
Director mer e
o
Cao
Employee For Fem
Hongyin 56 5 June 2020 27 May 2022
Supervisor mer ale
g
Hu For Mal
Supervisor 38 27 May 2022 17 March 2023
Jianfu mer e
Member of
the CPC
Zhao For Mal
Committee 58 12 July 2017 19 May 2022 12,130
Dong mer e
and Chief
Engineer
Liu For Fem
Supervisor 53 29 May 2020 27 May 2022
Feng mer ale
Total -- -- -- -- -- -- 17,594 109,467 --
Indicate whether any director, supervisor or senior management resigned before the expiry of their office
terms during the Reporting Period.
□ Yes ? No
Changes of directors, supervisors and senior management:
? Applicable □ Not applicable
Type of
Name Office title Date Reason
change
Zeng Director Elected at a general meeting of shareholders
Elected 27 May 2022
Congqin Chairman of the Elected by the Board of Directors
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Board
Director Elected at a general meeting of shareholders
Jiang Vice Chairman of the Elected
Wenge Board
General Manager Appointed Appointed by the Board of Directors
Director Elected at a general meeting of shareholders
Zhang Yu Vice Chairman of the Elected 27 May 2022
Elected by the Board of Directors
Board
Liang Li Director Elected 27 May 2022 Elected at a general meeting of shareholders
Xu Bo Director Elected 27 May 2022 Elected at a general meeting of shareholders
Xiao Hao Director Elected 27 May 2022 Elected at a general meeting of shareholders
Director Elected Elected at a general meeting of shareholders
Deputy General 27 May 2022
Jiang Lin
Manager Appointed Appointed by the Board of Directors
Board Secretary 24 August 2022
Xie Zhihua Independent Director Elected 27 May 2022 Elected at a general meeting of shareholders
Wu Yue Independent Director Elected 27 May 2022 Elected at a general meeting of shareholders
Hou
Independent Director Elected 27 May 2022 Elected at a general meeting of shareholders
Shuiping
Luo Huawei Independent Director Elected 27 May 2022 Elected at a general meeting of shareholders
Supervisor Elected 27 May 2022 Elected at a general meeting of shareholders
Chairman of the
Liu Ming
Supervisory Elected 27 May 2022 Elected by the Supervisory Committee
Committee
Zhang Xin Supervisor Elected 27 May 2022 Elected at a general meeting of shareholders
Elected 27 May 2022 Elected at a general meeting of shareholders
Hu Jianfu Supervisor
Former 17 March 2023 Resigned for work reasons
Zhang Qing Employee Supervisor Elected 27 May 2022 Elected in a staff congress
Wu
Employee Supervisor Elected 27 May 2022 Elected in a staff congress
Guoping
Yang
Chief Engineer Appointed 27 May 2022 Appointed by the Board of Directors
Yunxia
Jiang Jia Chief Economist Appointed 27 May 2022 Appointed by the Board of Directors
Xie Zhiping CFO Appointed 4 November 2022 Appointed by the Board of Directors
Deputy General
Yue Song Appointed 27 May 2022 Appointed by the Board of Directors
Manager
Deputy General
Liu Yang Appointed 27 May 2022 Appointed by the Board of Directors
Manager
Deputy General
Li Jian Appointed 27 May 2022 Appointed by the Board of Directors
Manager
Li
Director Former 18 February 2022 Resigned for a job change
Shuguang
Vice Chairman of the
Zou Tao Board and General Former 18 February 2022 Resigned for a job change
Manager
Zhou Yousu Independent Director Former 27 May 2022 Dismissed at a general meeting of shareholders
Gan
Independent Director Former 27 May 2022 Dismissed at a general meeting of shareholders
Shengdao
Appointed 3 March 2022 Appointed by the Board of Directors
Zhao Dong Chief Engineer
Former 19 May 2022 Ceased to be Chief Engineer due to age
Liu Feng Supervisor Former 27 May 2022 Dismissed at a general meeting of shareholders
Cao
Employee Supervisor Former 27 May 2022 Dismissed at a staff congress
Hongying
Deputy General Ceased to be Deputy General Manager and CFO
Luo Wei Former 4 November 2022
Manager and CFO due to age
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Professional backgrounds, main work experience and current positions in the Company of the incumbent
directors, supervisors and senior management:
(1) Mr. Zeng Congqin, a doctoral degree holder. He began to work in July 1988 and successively served in
Changning County of Yibin, municipal authorities, Cuiping District, and Lingang Economic Development Zone.
He once served as a member of the Standing Committee of the Changning County CPC Committee, Director of
the Publicity Department, and Executive Deputy County Chief of Changning County, Director of the Investment
Service Bureau of Yibin Lingang Economic Development Zone, Secretary of the Party Leadership Group and
Director of the Yibin Municipal Development and Reform Commission and Director of the Municipal Price
Bureau, Director of the Municipal Bureau of Energy, Secretary of the Cuiping District CPC Committee, and
Secretary of the Party Working Committee of Lingang Economic Development Zone. At present, he serves as the
Secretary of the CPC Committee and the Chairman of the Board of the Company, as well as the Secretary of the
CPC Committee and the Chairman of the Board of Wuliangye Group.
(2) Mr. Jiang Wenge, a master's degree holder. He began to work in August 1985 and successively served in
Peng'an County and Shunqing District of Nanchong City, Sichuan, the Sichuan Provincial Development and
Reform Commission, and the Welfare-to-work Office of Sichuan Province. He once served as the Deputy Head
of Shunqing District Government, Deputy Director of the Employment and Income Distribution Office, Deputy
Director of the Division of Rural Economy, and Director of the Division of Rural Economy of Sichuan
Provincial Development and Reform Commission, and the Deputy Director and Primary Investigator of the
Welfare-to-work Office of Sichuan Province. He now serves as the Deputy Secretary of the CPC Committee,
Vice Chairman of the Board, and General Manager of the Company.
(3) Mr. Zhang Yu, a doctoral degree holder. He began to work in July 1997 and successively served in the
Chengdu Education Bureau, Qingyang District Government and Xindu District Committee. He once served as
Secretary of CPC Committee, Director, and Party Group Secretary of the District Education Bureau, a member
of the Party Group of the District Government, Deputy District Chief, a member of the Standing Committee of
District Committee and Director of the Organization Department of the District Government, Deputy Secretary
of the CPC Committee of Wuliangye Group from April to December 2020, and Deputy Secretary of the CPC
Committee of the Company from December 2020 to December 2021. Currently, he is a member of the CPC
Committee and Vice Chairman of the Board of the Company.
(4) Ms. Liang Li, a bachelor's degree holder. She began to work in November 1986 and once took
community-level posts in towns, the organization department of the county CPC Committee, and the urban
governance office. She took the posts of Director of the Office and Head of the Agriculture Section of Yibin
Municipal Finance Bureau, Member of the CPC Committee and Chief Financial Officer of Yibin Kaiyi
Automobile Co., Ltd., Deputy Secretary to the CPC Committee and General Manager of Yibin Sanjiang
Investment and Construction Group Co., Ltd. Concurrently, she was the Secretary to the CPC Committee and
Chairman of Sichuan Changjiang Private Economy Financing Guarantee Co., Ltd. At present, she serves as
Director of the Company and Secretary of the CPC Committee and Chairman of the Board of Yibin
Development Group.
(5) Ms. Xu Bo, a bachelor's degree holder. She began to work in December 1983 and successively served
in the Electronic Education Company of the Yibin Education Bureau and the Yibin City Bureau of Audit. She
once served as the Deputy Head, Head, and Deputy Director of the Yibin City Bureau of Audit. She now serves
as a Director of the Company, as well as a Director and the General Manager of Yibin Development Group.
(6) Mr. Xiao Hao, a master's degree holder. He began to work in July 1998. He successively served in the
Organization Department of the CPC Committee of Yibin County, the Organization Department of the CPC
Committee of Yibin City, and the Office of the CPC Committee of Yibin City. He successively served as the
Deputy Director of Municipal CPC Committee Office, Director of the Standing Committee Office of the
Municipal CPC Committee, and Deputy Secretary-General of the Municipal CPC Committee. He served as the
Deputy Secretary of the CPC Committee of Wuliangye Group from December 2020 to December 2021. He has
been the Deputy Secretary of the CPC Committee of the Company since December 2021, and the Deputy
Secretary of the CPC Committee and a Director of Wuliangye Group since March 2022. He is now a Deputy
Secretary of the CPC Committee and a Director of the Company.
(7) Ms. Jiang Lin, a doctoral degree holder. She began to work in July 2004 and successively served in
Research Office of Chongqing Municipal Government, Research Office of Chengdu Municipal Committee,
Chengdu Finance Office, Tianfu International Fund Area, and Wanchuang Investment Holdings Chengdu Co.,
Ltd. She once served as the Deputy Head of the Economy Division of the Research Office of Chengdu
Municipal Committee, Deputy Head and Head of the Capital Market Division of the Chengdu Finance Office,
Director and General Manager of the Tianfu International Fund Area, and Deputy General Manager of
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Wanchuang Investment Holdings Chengdu Co., Ltd. She now serves as a member of the CPC Committee,
Director, and Deputy General Manager of the Company, in addition to being a Director and the Secretary of the
CPC Branch of Wuliangye Group Finance, as well as a Director of Yibin Wuliangye Fund Management Co., Ltd.,
Sichuan Bank, and Sichuan United Liquor Exchange Co., Ltd.
(8) Mr. Xie Zhihua, a doctoral degree holder, professor, certified public accountant, and Expert of the
Special Government Allowances of the State Council. He began to work in June 1976 and successively served in
Xiangxi Autonomous Prefecture Commercial School, Beijing Business School, and Beijing Technology and
Business University. He once served as the Deputy Director, Director, Director of the Academic Affairs
Department, and Vice President of the Accounting Faculty of Beijing Business School, and a member of the CPC
Committee and Vice President of Beijing Technology and Business University. He now serves as an Independent
Director of the Company, Professor of Beijing Technology and Business University, as well as an Independent
Director of BJB (Beijing) Information Technology Co., Ltd., China Non-ferrous Metal Industry's Foreign
Engineering and Construction Co., Ltd., Sinochem Energy Co., Ltd., Yunnan Hongta Bank Co., Ltd., and Bank
of Jiaxing Co., Ltd.
(9) Mr. Wu Yue, a doctoral degree holder and professor. He now serves as the Professor at the School of
Law of Southwestern University of Finance and Economics, and concurrently serves as the Vice President of
Sichuan Business Law Research Association, Executive Director of China Business Law Research Association,
Arbitrator of China International Economic and Trade Arbitration Commission, and Arbitrator of Chengdu
Arbitration Commission, and Independent Director of the Company, Independent Director of Chengdu Corpro
Technology Co., Ltd., Independent Director of Sichuan MIngxing Electric Power Co., Ltd., and Independent
Director of Sichuan Jule Food Co., Ltd.
(10) Mr. Hou Shuiping, a doctorate degree holder, researcher and an expert entitled to special allowances
from the State Council. He took the posts of Dean of the Sichuan Academy of Social Sciences and Deputy
Director of the Decision-making Advisory Committee (Provincial Science and Technology Advisory Group) of
the CPC Sichuan Provincial Committee and the People's Government of Sichuan Province. At present, he serves
as a researcher and post-doctoral co-supervisor at the Sichuan Academy of Social Sciences, Vice Chairman and
Director of the Academic Committee of Sichuan Law Society, and Independent Director of Sichuan Yahua
Industrial Group Co., Ltd., Sichuan Shudao Equipment & Technology Co., Ltd., and the Company.
(11) Mr. Luo Huawei, a doctorate degree holder, professor, certified public accountant, and legal
practitioner. At present, he serves as a doctoral supervisor at Sichuan Agricultural University, Director of the
Accounting Society of Sichuan, External Director of Ya'an Development Investment Co., Ltd., and Independent
Director of Sichuan Yahua Industrial Group Co., Ltd. and the Company.
(12) Mr. Liu Ming, a bachelor's degree holder, senior engineer of liquor brewing, and China Liquor
Brewing Master, national-level specially-invited Baijiu appraisal committee member. He began to worked in
Wuliangye distillery in December 1986 and once served as the Deputy Director and Director of the workshop,
and concurrently served as the Deputy Secretary of the Party Branch, Secretary of the Party Branch, President of
the Branch Labor Union, Secretary of the Party General Branch, General Manager and Chairman of Yibin
Changjiangyuan Liquor Co., Ltd., Assistant to the General Manager and Director of the Production Management
Department of the Company. He served as the Chief Engineer of the Company from July 2021 to March 2022.
He has been a member of the CPC Committee of the Company since February 2022. Currently, he is a member
of the CPC Committee and the Chairman of the Supervisory Committee of the Company.
(13) Mr. Zhang Xin, a master's degree holder. With his career starting in August 1991, he used to serve in
the Yibin Bureau of Finance, and the Yibin State-owned Assets Supervision and Administration Commission. He
once was a Head of Section, Deputy Head of the Corporate Section, Full-time Deputy Secretary of the CPC
Committee and Head of the Asset Management Section of the Yibin Bureau of Finance. Currently, he is a
Supervisor of the Company, a member of the CPC Committee and Deputy General Manager of Yibin
Development Group, as well as the Secretary of the CPC Branch and Chairman of the Board of Sichuan Sanjiang
Huihai Finance Leasing Co., Ltd.
(14) Mr. Zhang Qing, a college degree holder and brewing engineer. He began to work at the Wuliangye
distillery in January 1983. He took the posts of Leader and Technician of the Brewing Team of the Workshop,
Assistant Workshop Director, Assistant Head of the Production Management Department, Head of the Control
Room, President of the Branch Labour Union, Workshop Director, President of the Labour Union, Supervisor,
General Manager, and Director of Yibin Changjiangyuan Liquor Co., Ltd., and Deputy Head of the Production
Management Department of the Company. At present, he serves as Employee Supervisor and Head of the
Production Management Department of the Company.
(15) Mr. Wu Guoping, a bachelor's degree holder, auditor and senior sourcer. He began to work in August
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Audit. He was transferred to the Company and served as the Deputy Director of the Audit Affairs Department in
May 2015, Employee Supervisor of the Company in June 2015, and Deputy Director of the Audit Department in
July 2015. He now serves as an Employee Supervisor and the Deputy Director of the Audit and Supervision
Department of the Company, as well as a Supervisor of Wuliangye Group.
(16) Ms. Yang Yunxia, a bachelor's degree holder and Senior Political Mentor. She began to work at the
Wuliangye distillery in July 1991. She once held offices at Workshop 508, Workshop 513, the Audit Supervision
and Legal Affairs Department, and the Organization Department of the CPC Committee. She was Deputy
Secretary to the CPC Branch of Workshop 506 in August 2003 and Secretary of the CPC Branch of Workshop
June 2014 and June 2020 and Head of the Work Department of the CPC Committee of the Company between
May and July 2015. She started serving as the Head of the Mass Work Department of the Company in July 2015
(concurrently, she was Deputy Secretary to the CPC Xingwen Committee between March 2016 and June 2018).
She took the posts of Member of the CPC Committee, President of the Labour Union, and Head of the Mass
Work Department of the Company in June 2018, and of Member of the CPC Committee, Chairman of the
Supervisory Committee, and Head of the Mass Work Department of the Group in December 2020. At present,
she is a Member of the CPC Committee and General Engineer of the Company.
(17) Mr. Jiang Jia, a bachelor's degree holder and senior economist. He began to work in Wuliangye
distillery in July 1997 and once served as the Deputy General of the Sales Department, Deputy General of the
Brand Affairs Department of Brand Distributors, Deputy Director and Director of the Strategic Development
Department, and Chairman of Wuliangye Health Wine Company. He has served as a member of the CPC
Committee and Chief Economist of Wuliangye Group since April 2020. He is also a member of the CPC
Committee and the Chief Economist of the Company.
(18) Mr. Xie Zhiping, a master's degree holder. He began to work in August 1991. He took posts at the
Yibin Municipal Finance Bureau and Yibin Municipal Bureau of Statistics. He was a Member of the CPC Group
and Deputy Director of Yibin Municipal Finance Bureau, Secretary to the CPC Group and Director of the Yibin
Municipal Bureau of Statistics, and Secretary to the CPC Group and Director of Yibin Municipal Finance Bureau.
He became a Member of the CPC Committee and Chief Financial Officer of Wuliangye Group in February 2022.
At present, he is a Member of the CPC Committee and Chief Financial Officer of the Company.
(19) Mr. Yue Song, a bachelor's degree holder and senior brewing technician. He started to work in the
Wuliangye Distillery in December 1995. He once served as the Deputy Director of the Office, Deputy Director
of the Office of the Board of Directors, Secretary of the CPC Branch, as well as Secretary of the CPC Branch
and President of the Branch Labor Union of Workshop 505 and Workshop 523 of the Company, General
Manager and President of the Branch Labor Union of Sichuan Wuliangye Culture Tourism Co., Ltd., Secretary
of the Party General Branch and Chairman of Yibin Changjiangyuan Liquor Co., Ltd., and General Engineer of
Wuliangye Group. He is now a Deputy General Manager of the Company.
(20) Mr. Liu Yang, a bachelor's degree holder. He began to work in July 2001 and used to serve as the
Director of the Liaison Office of Yibin Municipal Government in Beijing. He is now a Deputy General Manager
of the Company.
(21) Mr. Li Jian, a doctoral degree holder. He began to work in October 1995 and once served in the
Housing and Urban-Rural Development Bureau of Changning County, Education and Sports Bureau of Yibin
City, and Shunan Culture & Tourism Group. He once served as a member of the CPC Committee and Deputy
General Manager of Shunan Culture & Tourism Group. He is now a Deputy General Manager of the Company.
Offices held concurrently in shareholding entities:
? Applicable □ Not applicable
Start of office End of office Paid by the entity
Name Shareholding entity Office held in the entity
term term or not
Secretary of the CPC
Zeng Congqin Wuliangye Group Committee and Chairman No
of the Board
Secretary of the CPC
Yibin Development
Liang Li Committee and Chairman Yes
Group of the Board
Yibin Development Director and General
Xu Bo Yes
Group Manager
Deputy Secretary of the
Xiao Hao Wuliangye Group CPC Committee and No
Director
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Member of the CPC
Yibin Development
Zhang Xin Committee and Deputy Yes
Group
General Manager
Offices held concurrently in other entities:
? Applicable □ Not applicable
Start of End of
Office held in the Paid by the
Name Other entity office office
entity entity or not
term term
Director and
Wuliangye Group Finance Secretary of the
CPC Branch
Jiang Lin No
Yibin Wuliangye Fund Management Co., Ltd.,
Sichuan Bank Company Limited, and Sichuan Director
United Liquor Exchange Co., Ltd.
Beijing Technology and Business University Professor Yes
BJB (Beijing) Information Technology Co., Ltd.,
Xie Zhihua China Non-ferrous Metal Industry's Foreign
Independent
Engineering and Construction Co., Ltd., Yes
Director
Sinochem Energy Co., Ltd., Yunnan Hongta Bank
Co., Ltd., and Bank of Jiaxing Co., Ltd.
Southwestern University of Finance and Professor of School
Yes
Economics of Law
Wu Yue Chengdu Corpro Technology Co., Ltd., Sichuan
Independent
MIngxing Electric Power Co., Ltd., and Sichuan Yes
Director
Jule Food Co., Ltd.
Research Fellow
Sichuan Academy of Social Sciences and Postdoctoral
Co-supervisor
Hou Shuiping Yes
Sichuan Yahua Industrial Group Co., Ltd., and
Independent
Sichuan Shudao Equipment & Technology Co.,
Director
Ltd.
Sichuan Agricultural University Doctoral Supervisor
Luo Huawei Ya'an Development Investment Co., Ltd. Outside Director Yes
Independent
Sichuan Yahua Industrial Group Co., Ltd.
Director
Secretary of the
Sichuan Sanjiang Huihai Finance Leasing Co., CPC Branch and
Zhang Xin No
Ltd. Chairman of the
Board
Punishments imposed in the recent three years by the securities regulator on the incumbent directors,
supervisors and senior management as well as those who resigned in the Reporting Period:
□ Applicable ? Not applicable
Decision-making procedure, determination basis and actual payments of remunerations for directors,
supervisors and senior management:
(1) Decision-making procedure
In accordance with the relevant rules of the higher organization and the Company, the remuneration plan for
the senior management of the Company is formulated, then submitted to the Remuneration and Appraisal
Committee under the Board of Directors for review, and then finalized by the Board of Directors.
(2) Basis for the determination of remunerations
In accordance with the relevant rules, the remunerations for directors, supervisors and senior management
are determined upon appraisal.
(3) Actual payments
Part of the base pay is given on a monthly basis, and part of the performance-related pay is given within the
year.
Remunerations of directors, supervisors and senior management during the Reporting Period
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB'0,000
Total before-tax
remunerations Paid by any related
Name Office title Gender Age Status
from the party or not
Company
Zeng
Chairman of the Board Male 54 Incumbent 92.91 No
Congqin
Jiang Vice Chairman of the Board and
Male 56 Incumbent 97.78 No
Wenge General Manager
Zhang Yu Vice Chairman of the Board Male 48 Incumbent 66.94 No
Liang Li Director Female 52 Incumbent Yes
Xu Bo Director Female 55 Incumbent Yes
Xiao Hao Director Male 46 Incumbent 24.47 No
Director, Deputy General
Jiang Lin Female 43 Incumbent 54.29 No
Manager and Board Secretary
Xie Zhihua Independent Director Male 63 Incumbent 10 No
Wu Yue Independent Director Male 56 Incumbent 10 No
Hou
Independent Director Male 67 Incumbent 6.8 No
Shuiping
Luo
Independent Director Male 53 Incumbent 6.8 No
Huawei
Chairman of the Supervisory
Liu Ming Male 52 Incumbent 57.89 No
Committee
Zhang Xin Supervisor Male 53 Incumbent Yes
Zhang Qing Employee Supervisor Male 57 Incumbent 37.33 No
Wu
Employee Supervisor Male 53 Incumbent 70.53 Yes
Guoping
Yang
Chief Engineer Female 51 Incumbent 51.25 No
Yunxia
Jiang Jia Chief Economist Male 48 Incumbent 38.87 No
Xie Zhiping CFO Male 54 Incumbent 3.57 No
Yue Song Deputy General Manager Male 50 Incumbent 17.64 No
Liu Yang Deputy General Manager Male 44 Incumbent 36.67 No
Li Jian Deputy General Manager Male 48 Incumbent 35.95 No
Li
Director Male 60 Former 92.91 No
Shuguang
Zou Tao Vice Chairman of the Board Male 44 Former 41.78 No
Zhao Dong Chief Engineer Male 58 Former 92.79 No
Deputy General Manager and
Luo Wei Male 58 Former 89.37 No
CFO
Zhou Yousu Independent Director Male 70 Former 5.8 No
Gan
Independent Director Male 56 Former 9 No
Shengdao
Hu Jianfu Supervisor Male 38 Former Yes
Cao
Employee Supervisor Female 56 Former 252.87 No
Hongying
Liu Feng Supervisor Female 53 Former Yes
Total -- -- -- -- 1,304.21 --
Notes: 1. During the Reporting Period, the Company settled the remuneration of some of the directors and
supervisors for the year 2020 and granted incentives to some of the incumbent directors and supervisors for the
adjustments. Mr. Xiao Hao, Ms. Yang Yunxia, Ms. Jiang Lin, Mr. Xie Zhiping and Mr. Yue Song were on the
Company's payroll upon their appointment and on Wuliangye Group's payroll before their appointment. And Mr.
Wu Guoping was given a pay of RMB44.7 thousand by Wuliangye Group.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
VI Activities of Directors during the Reporting Period
Meeting Date of the meeting Disclosure date Resolutions
th
The 100 Meeting of the Fifth Board
of Directors
The Second Meeting of the Fifth
Board of Directors in 2022
The Third Meeting of the Fifth Board
of Directors in 2022
The Proposal on Adjusting the
Name and Construction Plan of
The Fourth Meeting of the Fifth
Board of Directors in 2022
Brewing Project (Phase I) was
approved.
The Fifth Meeting of the Fifth Board
of Directors in 2022
The Sixth Meeting of the Fifth Board
of Directors in 2022
The Seventh Meeting of the Fifth
Board of Directors in 2022
The First Meeting of the Sixth Board
of Directors in 2022
The Second Meeting of the Sixth
Board of Directors in 2022
The Third Meeting of the Sixth Board
of Directors in 2022
The following proposals were
approved: the Proposal on the
Star Rating and Awards for Retail
Stores for H1 2022, the Proposal
on the Report on the
The Fourth Meeting of the Sixth Establishment of the ―Group
Board of Directors in 2022 Purchase-based Sales‖ Project of
Wuliangye Headquarters, and the
Proposal on Wuliang
NongXiang’s Wuliangye Culture
Publicity and Promotion Plan for
The Fifth Meeting of the Sixth Board
of Directors in 2022
The Proposal on the Plan for the
The Sixth Meeting of the Sixth Board Transfer and Disposal of Some
of Directors in 2022 Assets in Plastic F Section was
approved.
The Proposal on the Donation for
the 6.8 Magnitude Earthquake
The Seventh Meeting of the Sixth
Board of Directors in 2022
Ganzi, Sichuan Province was
approved.
The Proposal on the Project of the
The Eighth Meeting of the Sixth Construction of a New Boiler
Board of Directors in 2022 Room in the Hongba New Park,
among others, was approved.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
The Ninth Meeting of the Sixth Board
of Directors in 2022
th
The 10 Meeting of the Sixth Board
of Directors in 2022
The 11th Meeting of the Sixth Board
of Directors in 2022
The Proposal on the Transfers of
The 12th Meeting of the Sixth Board 30 November-2 December Physical Assets by Wuliangye
N/A
of Directors in 2022 2022 Supply and Marketing and Liquor
Sales was approved.
The following proposals were
approved: the Proposal on
Amendments to the Performance
Appraisal and Remuneration
The 13th Meeting of the Sixth Board Management Methods for Deputy
of Directors in 2022 Senior Management, and the
Proposal on the Transfer of
Equity Interests in Wuguchun Jiu
Ye Co., Henan. China for No
Compensation.
The Proposal on the Wuliangye
The 14th Meeting of the Sixth Board 1618 Spring ―Crack a Bottle,
of Directors in 2022 Scan the Code, and Win a Prize‖
Activities was approved.
Attendance of directors at board meetings and general meetings of shareholders
Board
Total number Board The director
meetings Board General
of board Board meetings failed to attend
attended by meetings meetings
meetings the meetings the two
Director way of attended of
director was attended on director consecutive
telecommuni through a shareholder
supposed to site failed to board meetings
cation or proxy s attended
attend attend or not
circulation
Zeng
Congqin
Jiang Wenge 21 3 18 0 0 No 1
Zhang Yu 14 2 12 0 0 No 1
Liang Li 14 2 12 0 0 No 1
Xu Bo 21 3 18 0 0 No 1
Xiao Hao 14 2 12 0 0 No 1
Jiang Lin 21 3 18 0 0 No 1
Xie Zhihua 21 0 21 0 0 No 0
Wu Yue 21 2 19 0 0 No 1
Hou Shuiping 14 1 13 0 0 No 1
Luo Huawei 14 1 13 0 0 No 1
Li Shuguang 1 0 1 0 0 No 0
Zou Tao 1 0 1 0 0 No 0
Zhou Yousu 7 1 6 0 0 No 1
Gan
Shengdao
Explanation of why any director failed to attend two consecutive board meetings:
Not applicable.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Indicate whether any director raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
Indicate whether any recommendation from directors was adopted by the Company.
? Yes □ No
Explanation on adoption/rejection of recommendations of directors:
During the Reporting Period, in strict compliance with the applicable laws, regulations and the Articles of
Association, the directors of the Company performed their duties diligently, providing professional opinion or
recommendations for business decisions of the Company. They have played their part in protecting the
legitimate rights and interests of the Company and its shareholders.
VII Activities of Special Committees under the Board of Directors during the Reporting
Period
The Board of Directors of the Company has set up five special committees, including the Strategy
Committee, the Audit Committee, the Nomination Committee, the Remuneration and Appraisal Committee, and
the Comprehensive Budget Management Committee.
As per the relevant requirements of the Implementation Rules for the Strategy Committee, the Strategy
Committee convened two meetings during the Reporting Period, mainly receiving briefings on key work
progress in the first half of the year and the implementation plan for the high-quality development and fast-
growth programme, studying the report of the 20th CPC Congress, and studying the Report on Accelerating the
High-quality Development of the Baijiu Industry jointly issued by the Yibin Municipal CPC Committee and the
Yibin Municipal Government.
As per the relevant requirements of the Implementation Rules for the Audit Committee, the Audit
Committee was diligent and responsible in performing the responsibilities required by the rules in the Reporting
Period: (1) conducting a reminder on the audit of the 2021 annual financial statements upon the First Meeting of
the Audit Committee under the Fifth Board of Directors in 2022; (2) reviewing, for the first time, the summary
financial statements of 2021 prepared by the Department of Finance of the Company before the entry of the
certified public accountants for the annual audit, and providing written review pinion at the Second Meeting of
the Audit Committee under the Fifth Board of Directors in 2022; (3) reviewing, for the second time, the 2021
annual financial statements of the Company, and providing written review pinion at the Third Meeting of the
Audit Committee under the Fifth Board of Directors in 2022; (4) reviewing and approving the Proposal on the
Re-appointment of the CPA Firm for 2022, the Summary of the Audit on the Financial Statements and Internal
Control of 2021, the Independent Auditor’s Reports on the Financial Statements and Internal Control of 2021,
the 2021 Internal Control Assessment Report, and the Deposit and Use of Raised Funds in 2021 at the Fourth
Meeting of the Audit Committee under the Fifth Board of Directors in 2022; (5) reviewing and approving the
First Quarterly Report 2022 at the Fifth Meeting of the Audit Committee under the Fifth Board of Directors in
the Sixth Board of Directors in 2022; and (7) reviewing and approving the Third Quarterly Report 2022 at the
Seventh Meeting of the Audit Committee under the Sixth Board of Directors in 2022.
The Nomination Committee convened six meetings in the Reporting Period according to the relevant
provisions of the Implementation Rules for the Nomination Committee, at which the following proposals were
approved to be submitted to the Board of Directors for further review: the Proposal on the Election of Vice
Chairman of the Board and the Appointment of General Manager, the Proposal on New Director for the Fifth
Board of Directors, the Proposal on the Appointment and Dismissal of Senior Management, and the Proposal on
the Appointment of Board Secretary.
The Remuneration and Appraisal Committee convened two meetings in the Reporting Period according to
the relevant provisions of the Implementation Rules for the Remuneration and Appraisal Committee, and issued
opinions on the settlement of senior management’s 2020 annual remunerations and the prepayment of part of the
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
The committee convened two meetings in the Reporting Period according to the Implementation Rules for
Comprehensive Budget Management Committee of the Company, and deliberated and approved the Annual
Budget Scheme 2022 and the Comprehensive Budget Adjustment Scheme 2022.
VIII Activities of the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in
the Reporting Period.
□ Yes ? No
The Supervisory Committee raised no objections with respect to matters of the Company.
IX Employees
Number of in-service employees of the Company as the parent
at the period-end 17,142
Number of in-service employees of major subsidiaries at the
period-end 8,322
Total number of in-service employees at the period-end 25,464
Total number of paid employees in the Reporting Period 25,464
Number of retirees to whom the Company as the parent and its
major subsidiaries need to pay retirement pensions 320
Functions
Function Number of employees
Production 19,081
Sales 1,145
Technical 4,048
Financial 198
Administrative 992
Total 25,464
Educational backgrounds
Educational background Number of employees
Junior college and beyond 7,044
High school to junior college (exclusive) 11,265
Middle school and below 7,155
Total 25,464
The remuneration policies implemented by the Company are the Trial Measures for the Management of
Total Wages of Municipal Supervised Enterprises in Yibin City (YGZW [2019] No. 205), and the Company's
Interim Provisions on Wage Management and the Trial Measures for the Management of Total Wages of
Subsidiaries.
In 2022, trainings organized by the Company centered on the strategy of "Reform, Innovation,
Transformation, and Development", focused on the building of the talent team and strengthened the foundation
of innovation and development. The Company carried out hierarchical and classified trainings with rich contents
and by flexible means based on the demand of the Company for reform and development and the demands of
employees for diversified trainings, enhancing the planning, pertinency and effectiveness of training. In 2023,
the Company plans to carry out 104 trainings at company level, 94 trainings at department level, 209 trainings at
workshop level, 46 skill trainings and 87 external trainings to provide strong human resources guarantee for the
reform and innovation of the Company, so as to effectively match up with and promote strategic improvement of
the Company and achievement of the annual operation objectives.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
? Applicable □ Not applicable
During 2022, the Company and its major majority-owned subsidiaries outsourced carriage, loading and
unloading, temporary work, etc., for which they paid RMB214 million in total.
X Profit Distributions in the Form of Cash and/or Shares
The formulation, implementation and amendments to the profit distribution policy, especially the cash
dividend policy, in the Reporting Period:
? Applicable □ Not applicable
According to the 2021 Final Dividend Plan approved at the 2021 Annual General Meeting of Shareholders,
the Company declared a cash dividend of RMB30.23 (tax inclusive) per 10 shares to shareholders based on the
total 3,881,608,005 shares held by them. The independent directors issued their opinion on the final dividend
plan, which was approved by the Board of Directors and then at the general meeting of shareholders. This final
dividend plan has been carried out on 29 June 2022.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting of shareholders
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully Yes
protected
In case of adjusting or altering the cash dividend policy, the
conditions and procedures involved are in compliance with Yes
applicable regulations and transparent
Indicate whether the Company fails to put forward a cash dividend plan despite the facts that the Company
has made profit in the Reporting Period and the profit of the Company as the parent distributable to shareholders
is positive.
□ Applicable ? Not applicable
Final dividend plan for the Reporting Period:
? Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 37.82
Share base (share) 3,881,608,005
Cash dividends (RMB) (tax inclusive) 14,680,241,474.91
Cash dividends in other forms (such as share repurchase)
(RMB)
Total cash dividends (including those in other forms) (RMB) 14,680,241,474.91
Distributable profit (RMB) 52,952,968,888.03
Total cash dividends (including those in other forms) as % of
the total profit to be distributed
Applicable cash dividend policy
Where the Company is at a mature stage of development and has any substantial spending plan, total cash dividends shall account for
at least 40% of the total profit to be distributed.
Final dividend plan in detail
As the 2022 final dividend plan, the Company intends to pay a cash dividend of RMB37.82 (tax inclusive) per 10 shares to
shareholders based on the total share capital at the record date for the dividend payout, with the total amount to be distributed
amounting to RMB14,680,241,474.91; and no bonus issue will be carried out, either from profit or capital reserves.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
? Applicable □ Not applicable
Not applicable.
Equity incentives received by directors and senior management:
□ Applicable ? Not applicable
Appraisal mechanism and incentives for senior management:
See ―Part IV, V, 3. Remunerations of Directors, Supervisors and Senior Management‖ herein.
? Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
Number
Scope of Total number of shares As % of the total share capital
of Change Funding source
employees held under the plans of the Company
employees
Employees
covered by 2,428 23,696,280 None 0.61% Self-pooled
the plans
Shareholdings of directors, supervisors and senior management under employee stock ownership plans
during the Reporting Period:
In April 2018, the Company carried out an employee stock ownership plan through a private placement, and
certain in-service directors, supervisors and senior management participated in the employee stock ownership
plan. By the end of the Reporting Period, some non-transaction transfers had been completed.
Change of the asset management agency during the Reporting Period:
□ Applicable ? Not applicable
Equity changes incurred by the disposal of shares by any holder, etc. during the Reporting Period:
□ Applicable ? Not applicable
Exercise of shareholder rights during the Reporting Period:
□ Applicable ? Not applicable
Other information about the employee stock ownership plans during the Reporting Period:
? Applicable □ Not applicable
As approved at the first general meeting of holders under the employee stock ownership plan in 2021 and
the first meeting of the management committee of the employee stock ownership plan in 2021, the shares under
the employee stock ownership plan were transferred to the securities accounts of the holders by way of ―non-
transaction transfer‖. As of the end of the Reporting Period, a total of 21.04 million shares have been transferred
to 2,412 holders by way of ―non-transaction transfer‖ under the employee stock ownership plan.
As approved at the first general meeting of holders under the employee stock ownership plan in 2022 and
the Fifth Meeting of the Fifth Board of Directors in 2022, the duration of the employee stock ownership plan has
been agreed to be extended to 31 December 2023.
Changes to members of the management committees of employee stock ownership plans:
□ Applicable ? Not applicable
The financial impact of employee stock ownership plans on the Company and the relevant accounting
treatments during the Reporting Period:
□ Applicable ? Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable ? Not applicable
Other information: None.
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
XII Establishment and Implementation of Internal Controls during the Reporting Period
In 2022, in accordance with the applicable laws and regulations such as the Company Law, the Basic
Criteria of Enterprise Internal Control, and the Guidelines on the Compliance of the Operation of Listed
Companies, the Company continuously established institutional norms for Party building, business operation,
risk control and post-event supervision, and continued to improve the internal control system.
As per the relevant requirements, the Company conducts internal control self-assessment every year. It set
up steering groups for internal control self-assessment to guide a total of 57 units including workshops,
functional departments and subsidiaries to carry out internal control self-assessment work and at the same time,
set up groups for random inspection of internal control to conduct random inspection on the construction and
implementation of the Company's internal control system, focused on major business segments such as
procurement, sales, and production, evaluated the rationality of the design and the effectiveness of the operation
of the internal control system, so as to continuously optimized internal control. The evaluation results showed
that no material and significant deficiency was identified in the internal control system.
In the future, the Company will continue to strengthen internal control training, reinforce the awareness of
compliance in operation, enhance the risk prevention capability and effectively promote the steady
implementation of its strategies.
□ Yes ? No
XIII Management and Control of Subsidiaries during the Reporting Period
Problems
Name of Integration
Integration plan encountered in the Measures taken Progress Subsequent plan
company progress
integration
N/A
XIV Self-assessment Report or Independent Auditor’s Report on Internal Control
Date of full disclosure of the internal control assessment report 29 April 2023
Index of full disclosure of the internal control assessment report http://www.cninfo.com.cn
Ratio of the total assets of the organizations included in the assessment to
the Company's consolidated total assets
Ratio of the operating revenue of the organizations included in the
assessment to the Company's operating revenue in the consolidated 100.00%
financial statements
Deficiency identification criteria
Category Financial report Non-financial report
Company of the financial statement which have national laws, regulations, or normative
been published. (2) major misstatements found documents. (2) unscientific enterprise decision-
by the external auditor in current financial making procedure, such as wrong decision,
statements which have not been identified. (3) which causes failure of major transactions. (3)
corrupt practice of directors, supervisors, and loss of management personnel or technician of
officers found by the external auditor. (4) important posts. (4) lack of institutional control
ineffective supervision of internal control by the or systematic failure of the institution for
Company's internal audit department. (5) important businesses, and existing but ineffective
material deficiencies previously found but were operation of institutional guidance for internal
Qualitative criteria
not corrected within a reasonable period or were control of important economic business. (5)
ineffectively corrected. failure to correct material deficiencies within a
and apply accounting policies in accordance 2. Significant deficiencies: (1) property loss not
with generally accepted accounting policies. (2) reaching or exceeding the level of materiality but
failure to effectively control irregular (non- should be noticed by the Board of Directors and
repeating) or complicated transactions. (3) the management in nature. (2) individual events
failure to effectively control the anti-corrupt criticized by government departments, causing
work. (4) ineffective internal control over the moderate negative influence on reputation of the
financial report at the end of the period. Company. (3) violation of internal rules and
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
material deficiencies and significant (4) deficiency in important business mechanism
deficiencies are recognized as general or system.
deficiencies. 3. General deficiencies: deficiencies in internal
control other than material deficiencies and
significant deficiencies are general deficiencies.
amount >3% of total operating revenue;
misstatement amount >10% of net profit;
misstatement amount >3% of total assets.
operating revenue < misstatement amount ≤3% profit ≥5%.
of total operating revenue; 5% of net profit < 2. Significant deficiencies: 3%≤ proportion of
Quantitative criteria
misstatement amount ≤10% of net profit; 1% of loss to net profit <5%.
total assets < misstatement amount ≤3% of total 3. General deficiencies: proportion of loss to net
assets. profit <3%.
≤1% of total operating revenue; misstatement
amount ≤5% of net profit; misstatement amount
≤1% of total assets.
Number of material deficiencies
in financial reports
Number of material deficiencies
in non-financial reports
Number of significant
deficiencies in financial reports
Number of significant
deficiencies in non-financial 0
reports
? Applicable □ Not applicable
Opinion paragraph
Sichuan Huaxin (Group) CPA (LLP) is of the opinion that the Company maintained, in all material respects, effective internal
control over financial reporting as of 31 December 2022, based on the Basic Rules on Enterprise Internal Control and other
applicable regulations.
Report disclosed or not Disclosed
Disclosure date 29 April 2023
Index to the disclosed report http://www.cninfo.com.cn
Type of opinion Unmodified unqualified opinion
Material defects in internal control
N/A
not related to financial reporting
Indicate whether any modified opinion is expressed in the Independent Auditor’s Report on Internal Control.
□ Yes ? No
Indicate whether the Independent Auditor’s Report on Internal Control is consistent with the internal control
self-assessment report issued by the Company’s Board of Directors.
? Yes □ No
XV Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
During the Reporting Period, the Company actively promoted the re-election of the Board of Directors
according to the prescribed procedure. On 27 April 2022, the Proposal on the Re-election of the Board of
Directors was approved at the Sixth Meeting of the Fifth Board of Directors in 2022. On 27 May 2022, the
Proposal on the Re-election of the Board of Directors was approved at a general meeting. As such, the re-
election of the Board of Directors has been completed.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate whether the Company or any of its subsidiaries was identified as a major polluter by environmental
authorities.
? Yes □ No
The Company strictly complies with the laws and regulations on environmental protection and has
identified and collected 218 laws, regulations, rules, and standards on environmental protection, such as the
Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on
Promoting Clean Production, the Law of the People's Republic of China on Water Pollution Prevention and
Control, the Law of the People's Republic of China on Atmospheric Pollution Prevention and Control, and the
Law of the People's Republic of China on the Prevention and Control of Solid Waste Pollution, formulated 15
policies on corporate environmental protection management, and developed the relevant internal control
standards Brewery Wastewater Discharge Standards. The Company has implemented the requirements for
environmental protection throughout its operation.
The Company was granted the pollutant discharge license valid between November 2019 and November
and expansion projects of the Company all met the requirements of laws and regulations, such as the national
environmental protection law and the environmental impact assessment law, went through the environmental
impact assessment and approval process before commencement, and carried out environmental protection
acceptance after completion. Additionally, all pollution governance facilities ran stably, and pollutants were
discharged in compliance with standards, satisfying the requirement for total emission control.
Nu
Appro
Name mbe
Type ved
of the r of Total Excess
of Major Way of Distribution of Discharge Governing total
Comp disc discharge ive
major pollutan discharg discharge concentration/ discharge discha
any or ts harg (metric discha
pollut e outlets intensity standards rge
subsid e ton) rge
ants (metri
iary outl
c ton)
ets
COD 19.55mg/l Table 1 of the 84 132 None
Discharge
Ammon Standard of
Discharge
ia 0.34mg/l Water 1.5 9.9 None
Water Direct outlets at
nitrogen Pollutants in
pollut discharg 1 Wuliangye
Total Minjiang and
ants e Ecological 6.98mg/l 30 49.5 None
nitrogen Tuojiang Rivers
Wetland
Total
The （DB51/2311-
phospho 0.24mg/l 1 1.65 None
Comp rus 2016）
any Natural gas
Table 3 of the
Organiz boilers (Phase 1.34 mg/m? 0.17 N/A None
Emission
Air ed and I) 1#-9#
Particul Standard of Air
intermitt Natural gas
pollut ate 18 Pollutants for
ent boilers (Phase 1.19 mg/m? 0.16 N/A None
ants matter Coal-burning
discharg II) 10#-15#
Oil-burning
e Natural gas
boilers (Phase
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
III) 16#-18# （GB13271-
Hot water
boilers 1#-5#
Broken leaven Table 2 of the
outlets 1#-20# Integrated
Emission
Grain Standard of Air
processing Pollutants
outlets
（GB16297-
Natural gas
boilers (Phase Not detected Table 3 of the 0.9 N/A None
I) 1#-9# Emission
Organiz Standard of Air
Natural gas
Air ed and Pollutants for
Sulfur intermitt Coal-burning
pollut II) 10#-15#
dioxide ent Oil-burning
ants Natural gas
discharg Gas-fired Boiler
boilers (Phase Not detected 0.2 N/A None
e
III) 16#-18# （GB13271-
Hot water 2014）
boilers 1#-5#
Natural gas
boilers (Phase 50.42 mg/m? Table 3 of the 43.1 92.5 None
I) 1#-9# Emission
Organiz Standard of Air
Natural gas
Air ed and Pollutants for
Oxynitri intermitt Coal-burning
pollut II) 10#-15#
de ent Oil-burning
ants Natural gas
discharg Gas-fired Boiler
boilers (Phase 49.33 mg/m? 12.3 20.1 None
e
III) 16#-18# （GB13271-
Hot water 2014）
boilers 1#-5#
The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone in
the Jiangbei industrial park, using biochemical treatment and Fenton treatment technology for wastewater
treatment. The advanced treated tailwater is discharged after being treated by ecological wetlands and is under
good condition.
At present, the Company has built 18 natural gas boilers (20t/h) in the Jiangbei industrial park and put them
into operation, which adopt the advanced low-NOx combustion technology of first-line brands of German and
run normally. The leaven production line is equipped with 20 bag-type dust collectors, and the grain processing
production line is equipped with 18 bag-type dust collectors, all of which run normally.
The Company has formulated the Comprehensive Response Plan for Environmental Emergencies, which
has been filed with Yibin Environmental Protection Bureau after expert review. On 2 November 2022, the
Company carried out the "Emergency Drill for Environmental Emergencies", which tested the emergency
response, the effectiveness of response measures and the organization and coordination ability under emergency
situations, and laid a solid foundation for the construction of the Company's emergency response system.
The Company strictly implements the self-monitoring requirements of the discharge permits and formulates
annual monitoring plans in accordance with the aforesaid requirements. As per the Self-monitoring and
Information Disclosure Measure for National Key Monitoring Enterprises (Trial), the Company discloses its
self-monitoring plans, annual reports and self-monitoring data to the public on the pollutant source monitoring
information management and sharing platform of Sichuan Province.
The Company spent a total of approximately RMB230 million on environmental protection projects and
pollution control facilities and paid environmental protection tax of RMB388 thousand.
? Applicable □ Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
The Company uses biogas generated from wastewater treatment to generate electricity with approximately
approximately 3,500 tons.
Company name or Regulation Remediation
Reason for penalty Penalty Impact on the Company
subsidiary name violated measures
N/A
The Company implemented relevant requirements of the Administrative Measures for the Legal Disclosure
of Enterprise Environmental Information and disclosed basic corporate information, environmental management
information, information on pollutant generation, governance, and discharge, and ecological and environmental
emergency information in the Management System of Sichuan Province for the Legal Disclosure of Corporate
Environmental Information. Additionally, according to the self-monitoring plan, the Company disclosed the data
on pollutant discharge self-monitoring via the Pollution Source Monitoring Information Management and
Sharing Platform of Sichuan Province.
The Company's environmental management system ran continuously and effectively. Additionally, the
Company carried out an integrated internal audit of environmental and energy management systems. The
Company also engaged a third-party institution to re-certify and externally audit its energy and environmental
management systems as per the management requirements of the environmental management system and
successfully passed the external audit. Moreover, China Quality Certification Centre was appointed by the
Company to audit the Company's green gas discharge report and issue a third-party audit statement.
II Corporate Social Responsibility (CSR)
For details, please refer to the Environmental, Social and Governance Report 2022 disclosed by the
Company on 29 April 2023.
III Efforts in Poverty Alleviation and Rural Revitalization
The year 2022 witnessed the convening of the 20th National Congress of the Communist Party of China,
was the first year of the second centennial goal, and was a crucial year for the "14th Five-Year Plan". According
to the arrangements of the CPC Sichuan Provincial Committee, the People's Government of Sichuan Province,
the CPC municipal committee, and the People's Government of Municipality, for an effective and smooth
transition in consolidating and expanding the achievements in poverty alleviation and rural revitalization,
Wuliangye provided targeted assistance for Litang County, Ganzi Prefecture and Pingshan County, Yibin City.
Adhering to the "Company's investment, professional operation, and benefiting all" assistance philosophy,
Wuliangye carried out assistance work in depth and solidly with a focus on industrial development, market
expansion, and governance improvement. This earned the Company a number of honours, such as "Progressive
Group in Paired Assistance of the Province", "The 17th People's Enterprise Social Responsibility Awards of the
People's Daily Online: Rural Revitalization Prize", "China Agriculture-Rural Revitalization Extraordinary
Contribution Award", and "Best Practice Case in Rural Revitalization" (China Association for Public Companies)
Concurrently, the assisted counties were included among the key, excellent assisted counties in the rural
revitalization of the province, and the assisted villages were selected as the demonstration villages in the rural
revitalization of the province and "civilized demonstration villages" and "Six Free" safe villages of Yibin City.
(1) Promoted base construction and the prosperity of featured local industries
Industrial development is crucial to rural revitalization. The Company, based on the resource endowment,
industrial foundation, and people's development willingness of the assisted regions, earnestly promoted the
development and expansion of featured industries, thereby helping "local specialities" grow. First, achievements
in the construction of the polar fruit and vegetable (lentinus) industrial base of Wuliangye were consolidated and
expanded. On the basis of the previous development of the industrial base, Wuliangye made strenuous efforts to
cement the foundation and establish platforms and built up momentum and strength for expanding marketing
channels, strengthening the endogenous driving force, and extending industrial chains. At present, the base
covers an area of 42 mu and boasts an annual yield of 700,000 bags of lentinus, 100,000 jin of dried lentinus,
million. With an industrial system that integrates production, supply, and marketing, the base provided nearly 80
jobs in 2022, and the gross pay for its employees surpassed RMB0.8 million. Moreover, the base distributed
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
more than RMB0.5 million in dividends in 2022 to farmers and herdsmen. Second, the "vegetable basket"
vegetable supply base in Litang County was upgraded. Based on Litang County's strengths in location, arable
land, and agricultural industry, Wuliangye empowered the resource endowment, attracted leading enterprises,
tapped into land resources and assets, and cultivated new agricultural entities. Relying on the "assisting unit +
leading enterprise + village collective + farmer" development mode, Wuliangye established a vegetable supply
base that covered an area of nearly 500 mu in Mula Town, Litang County, removing the bottlenecks in mass
labour and technical management. Additionally, it helped each household improve garden planting efficiency.
Through experiments and trial planting, Wuliangye helped the vegetable park in Naisha Village successfully test
more than 20 varieties, achieving an output value of more than RMB3 million, providing jobs for over 6,000
people, paying total wages of nearly RMB0.8 million, and improving the average household income by more
than RMB0.012 million. Third, the cultivation of featured industries based on mountains and woodland in
Pingshan County was expedited. Wuliangye donated a total of nearly RMB3 million in industrial development
funds. Based on the natural conditions and tea industry foundation of Yingxiong Village, Qingping Yi Ethnic
Township assisted, Wuliangye introduced high-mountain tea strains and adopted equal-height platforms, road
and water supporting facilities, and ecological cultivation to effectively conserve water and soil and improve the
soil and ecological environment. Additionally, Wuliangye encouraged villagers in Yingxiong Village to plant tea
spontaneously. It boosted the tea industries of townships and towns around Qingping Yi Ethnic Township by
developing a "fan-out" high-mountain tea industrial radiation belt. So far, 700,000 tea seedlings have been
planted by 71 households, contributing to the sustainability of the collective economy and the stable income of
farmers. Fourth, efforts were made to promote the sustainable development of local bamboo and tea industries.
Wuliangye vigorously procured nearly 700,000 tons of bamboo raw materials from Yibin, boosting the fine
processing of the bamboo industry and the sustainability of the industry, converting the strengths in bamboo
resources into regional development strengths, and giving full play to the role of the bamboo industry in boosting
farmers' income. Additionally, Wuliangye procured nearly RMB10 million of tea raw materials from Yibin,
vigorously promoting industrial development and farmers' income.
(2) Made unremitting efforts in promoting consumer spending on agricultural specialities,
increasingly broadening the prospects of the agricultural speciality market
Promoting consumer spending is a critical initiative in consolidating and expanding the achievements in
poverty alleviation and promoting full rural revitalization. It is also crucial to helping regions lifted out of
poverty improve the quality and efficiency of their featured industries and stimulate the endogenous driving
force of local development. Adhering to the market-oriented strategy, the Company made "promoting consumer
spending" a vital driver of rural revitalization and common prosperity through the external and internal
connection and online and offline combination, thereby stimulating the vitality of economic growth. First,
domestic sales strengths were fully leveraged. Throughout the year, Wuliangye purchased dozens of categories
of agricultural specialities from Litang County and Pingshan County, including lentinus, agaric, yak meat, honey,
and bamboo shoots, through normalized purchasing instead of donations, centralized procurement in important
solar terms, pre-purchase orders of canteens, and launching in the "Wuliangye Family" app, with a total purchase
amount of nearly RMB10 million. Second, platform resources were fully used. In collaboration with large
businesses such as Fresh Hema, Wuliangye helped introduce products from the assisted regions such as lentinus
and agaric into local supermarkets in Zhuhai and exhibit such products at fairs such as the fair of the China
Agricultural Brand Annual Ceremony and the Agricultural Expo, contributing to the expansion of the external
markets of such products.
(3) Focused on the leadership of Party building and significantly raised the efficiency of rural
governance
Rural governance is the foundation of national governance, and effective governance guarantees rural
revitalization. Wuliangye has been raising the efficiency of grassroots governance by upholding the leadership of
high-quality Party building. It has been strengthening the political and organizational roles of the Party
organizations in rural areas to boost the modernization of grassroots governance. First, the building of grassroots
Party organizations was enhanced. In 2022, a donation of RMB0.2 million was arranged for Litang and Pingshan
counties, respectively, to strengthen the development of grassroots Party organizations. To this end, grassroots
positions were enhanced by strengthening standard, normative, and information-based development of Party
branches, and an efficient operation mechanism featuring "co-development of organization positions, co-
management of education of Party members, co-arrangements for activities, co-promotion of things for people,
and win-win through scientific development" was developed. Second, paired assistance was deepened. The Party
committee of Wuliangye vigorously supported the paired co-development of the grassroots Party branches of the
Company's subordinate agencies and the assisted villages. To constantly improve the leadership, innovation, and
strength of grassroots Party organizations, Wuliangye regularly stationed the steering groups of Party building in
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
the paired villages, supported grassroots Party building, the cultivation of reserve forces, competence and quality
improvement, and guided Party branches to implement policies such as "Three Sessions and One Class",
democratic life meetings, and heart-to-heart talks. Additionally, Wuliangye's basic militia brigade and the militia
platoon of Qingping Yi Ethnic Township carried out paired co-development events. Specifically, more than 500
sets (pieces) of equipment and other emergency supplies, including tents and go bags, were donated to Qingping
Yi Ethnic Township to boost its capabilities of responding to disasters, including floods and earthquakes.
(4) Persisted in project promotion to solidify the support and protection of rural development
Local educational and cultural development and talent support are critical for rural development. Hence,
Wuliangye persists in refining assistance projects through down-to-earth efforts and improving quality and
efficiency through work promotion, thereby providing firm and vigorous support and protection for long-term
local development. First, dedicated educational and talent donations were made. Wuliangye donated RMB2
million to the "Wuliangye Education Fund" educational aid activity in order to boost local educational causes
through concrete actions. It also explored the educational and talent development in the assisted regions through
visits, seminars, and site research. Concurrently, RMB0.3 million in assistance funds was donated to Litang and
Pingshan counties, respectively, to set up the "Wuliangye Love: Litang Talent Development Fund" and
"Wuliangye Love: Pingshan Talent Development Fund". To help cultivate and leverage local talent, Wuliangye
granted more than 50 university students in need grants in 2022. It continued to donate RMB0.06 million to the
"Compassionate Student Financial Aid Fund Package" project of Yibin City, sending hundreds of compassionate
student financial aid fund packages to Qingping Yi Ethnic Primary School. Moreover, the assistance role of
resident cadres was fully capitalized on in coordinating and integrating resources. Specifically, charitable
organizations were invited to carry out caring activities in Starbase School, including donating more than 2,500
sets (pieces) of school, life, cultural, and sports goods equivalent to approximately RMB0.25 million, thereby
helping students grow and succeed. Second, social civility development was advanced. Wuliangye vigorously
guided people in the assisted regions to develop new social civility. It encouraged villagers from the assisted
villages in Litang and Pingshan counties to go to Wuliangye. Additionally, Wuliangye capitalized on the
cultivation methods of the corporate culture to help the assisted villages refine and develop values and cultures
that have a rich rustic flavour and will inspire people to work hard. Moreover, rustic culture publicity platforms
were established to guide the abolishment of outmoded conventions and customs using healthy corporate culture.
Vigorous efforts were made to help explore and develop comparison-based appraisal and incentive channels,
such as "Point Management", Moral Bank, and "Point Supermarket", to further stimulate the endogenous driving
force of people lifted out of poverty. Third, assistance was provided for infrastructure upgrading. Thanks to
strenuous efforts, Wuliangye's resident cadres helped the assisted villages secure RMB1.4 million in the road
construction fund to broaden the village industry roads and RMB0.3 million to repair the landslide roads. By
improving the road infrastructure, the travelling trouble plaguing people was resolved, and the industrial
development foundation was solidified.
Wuliangye vigorously fulfilled social responsibility with a higher political stance and a stronger political
sense.
(1) Adhered to the green development path that puts ecology first
First, the upstream sense was strengthened, and ecological restoration was implemented. Wuliangye has
always been an advocate of the ecological civilization philosophy. It has been strengthening its big-picture
awareness and upstream sense and redoubling efforts to fulfil upstream responsibilities. Second, organizational
construction was strengthened to solidify basic guarantees. Wuliangye established an Environmental
Management Committee with Chairman as the leader to explore, arrange, guide, and coordinate the overall
ecological construction of the Company. An ecological environment inspection team was set up to strengthen
inspections and evaluations, ensuring that all environmental protection targets are achieved and measures
implemented. Third, wastewater was discharged in line with standards stricter than the national ones. Wuliangye
constructed an environmental protection ecological wetland that integrated such functions as landscape,
demonstration, and pollution treatment in 2018. By diverting the wastewater into the wetland and further
reducing the volume of pollutants discharged through biodegradation, Wuliangye met the Standards for the
Discharge of Water Pollutants in the Minjiang and Tuojiang River Basins in Sichuan Province (DB51 2311—
Discharge Standards that is stricter than the national and Sichuan Provincial wastewater discharge indicators.
Fourth, scientific plans were made to drive green development. To contribute to ecological and environmental
protection of the upper reaches of the Yangtze River, Wuliangye formulated a "dual carbon" plan and the "14th
Fiver-Year Plan" for Comprehensive Energy based on the current development in combination with the
nationally planned path, current technological development, and key development orientations.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(2) Firmly implemented employment security on all fronts
First, vigorous efforts were made to offer jobs. Wuliangye offered more than 1,000 jobs to fresh graduates,
the disabled, people out of poverty, veterans, and dependents through campus recruitment, public recruitment,
and flexible employment. Second, vigorous efforts were made to ensure stable employment. Wuliangye persisted
in not downsizing or reducing salaries for the surplus staff caused by business optimization to enable all
employees to share the fruits of development. Third, vigorous efforts were made to integrate industries and
education. Wuliangye vigorously strengthened cooperation and exchanges with local institutions of higher
education and carried out industry-education integration. Specifically, Wuliangye carried out joint cultivation
and provided internships for university students to help students improve their employability and access more
jobs. Additionally, it provided internships and jobs to bring in outstanding talent.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part VI Significant Events
I Fulfillment of Undertakings
well as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-
end
? Applicable □ Not applicable
On 19 April 2018, the Company disclosed the Announcement on Undertakings Made in a Private Placement,
which detailed the undertakings in five aspects made by the Company and its directors, controlling shareholder
and actual controller as well as the directors and senior management who participated in the employee stock
ownership plan. During the Reporting Period, the aforesaid entities and personnel all strictly abided by their
undertakings.
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable ? Not applicable
II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its Related
Parties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees for External Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
IV Statement Made by the Board of Directors Regarding the Latest “Modified Opinion” of
an Independent Auditor on Financial Statements
□ Applicable ? Not applicable
V Statements Made by the Board of Directors, the Supervisory Committee and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable ? Not applicable
VI Changes to Accounting Policies and Estimates and Correction of Material Accounting
Errors Compared with Last Year
□ Applicable ? Not applicable
No such cases in the Reporting Period.
VII Changes to the Scope of Consolidated Financial Statements Compared with Last Year
? Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,
the Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and Yibin
Wuliangye Xinshengdai Liquor Co., Ltd., were de-registered.
VIII Appointment and Dismissal of CPA Firm
Current CPA firm:
Name of the domestic CPA firm Sichuan Huaxin (Group) CPA (LLP)
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
The Company’s payment to the domestic CPA firm
(RMB’0,000)
How many consecutive years the domestic CPA firm has
provided audit service for the Company
Names of the certified public accountants from the domestic
Li Wulin, Ye Juan, and Luo Guiqiu
CPA firm writing signatures on the independent auditor’s report
Li Wulin: 2 years
How many consecutive years the certified public accountants
Ye Juan: 3 years
have provided audit service for the Company
Luo Guiqiu: 2 years
Indicate whether the CPA firm was changed for the Reporting Period.
□ Yes ? No
CPA firm appointed for the audit of internal control, as well as financial advisor or sponsor appointed:
? Applicable □ Not applicable
The Company re-appointed Sichuan Huaxin (Group) CPA (LLP) as the independent auditor for internal
control of the Company in 2022, with a payment of RMB600,000.
IX Possibility of Delisting after the Disclosure of this Report
□ Applicable ? Not applicable
X Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XI Significant Legal Matters
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XII Penalties and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XIII Credit Standings of the Company as well as Its Controlling Shareholder and Actual
Controller
? Applicable □ Not applicable
The Company as well as its controlling shareholder and actual controller were in good credit standing
during the Reporting Period.
XIV Significant Related-Party Transactions
? Applicable □ Not applicable
See ―5. Related-Party Transactions‖ under ―XI Related Parties and Related-Party Transactions‖ of Part X.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
? Applicable □ Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Making deposits:
Amount incurred in the current
Upper limit of period Closing
Related Range of Opening balance
Relationship daily deposit Total amount Total amount balance
party interest rate (RMB’0,000)
(RMB’0,000) deposited withdrawn (RMB’0,000)
(RMB’0,000) (RMB’0,000)
Wuliangye
Group Associate 4,790,000.00 0.42%～3.5% 3,463,584.01 1,400,901.25 1,360,052.09 3,504,433.17
Finance
Note: The amount incurred in the current period is presented on a net basis, which means such transactions
are eliminated as the same company withdrawing a deposit and making another deposit of a different kind, or
companies included in the consolidated financial statements making transfers via Wuliangye Group Finance.
Receiving loans: The Company received no loans from Wuliangye Group Finance during the Reporting
Period.
Receiving credit (inclusive of discounting) or other financial services:
Amount incurred
Related party Relationship Type of business Line (RMB’0,000)
(RMB’0,000)
Wuliangye Group
Associate Receiving credit 1,000,000.00 87,200.00
Finance
Note: On 15 April 2022, the Company and Wuliangye Group Finance signed a supplementary agreement to
the Financial Service Agreement, agreeing to continue to implement in 2022 ―the Financial Service Agreement
signed between the Company and Wuliangye Group Finance on 2 April 2021‖, i.e. the daily total balance of
outstanding loans and unused credit with Wuliangye Group Finance shall not exceed RMB10 billion in 2022.
The ―amount incurred‖ in the Reporting Period includes the discounted bank acceptance notes of RMB860
million with Wuliangye Group Finance (annual interest rate: 1.85%; interest payment: RMB6.418 million; and
undue bank acceptance notes as of the end of the Reporting Period: RMB581 million) and the bank acceptance
notes of RMB12 million issued by Wuliangye Group Finance (undue at 31 December 2022).
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XV Significant Contracts and Execution
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(1) Cash Entrusted for Wealth Management
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(2) Entrusted Loans
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XVII Significant Events of Subsidiaries
? Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,
the Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and Yibin
Wuliangye Xinshengdai Liquor Co., Ltd., were de-registered.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part VII Share Changes and Shareholder Information
I Share Changes
Unit: share
Before Increase/decrease in the current period (+/-) After
B
on
us
Bonus
iss
issue
As % of ue As % of
Number of New from Number of
total fr Other Subtotal total
shares issue capital shares
shares o shares
reserv
m
es
pr
ofi
t
I Restricted shares 110,244 0.00% -28,146 -28,146 82,098 0.00%
state
owned corporations
domestic investors
Of which: Shares
held by domestic
corporations
Shares held
by domestic individuals
investors
Of which: Shares
held by overseas
corporations
Shares held
by overseas individuals
II Unrestricted shares 3,881,497,761 28,146 28,146 3,881,525,907
% %
ordinary shares % %
foreign shares
foreign shares
III Total shares 3,881,608,005 3,881,608,005
% %
Reasons for share changes:
? Applicable □ Not applicable
The share changes were mainly attributable to the expiry of the lockup periods for the shares held by former
directors, supervisors and senior management, the non-transaction transfers of shares to the incumbent directors,
supervisors and senior management under the employee stock ownership plan, etc.
Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
? Applicable □ Not applicable
As approved at the first general meeting of holders under the employee stock ownership plan in 2021 and
the first meeting of the management committee of the employee stock ownership plan in 2021, the shares under
the employee stock ownership plan were transferred to the securities accounts of the holders by way of ―non-
transaction transfer‖. As of the end of the Reporting Period, a total of 21.04 million shares have been transferred
to 2,412 holders by way of ―non-transaction transfer‖ under the employee stock ownership plan.
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the latest
accounting period, respectively:
□ Applicable ? Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be
disclosed:
□ Applicable ? Not applicable
? Applicable □ Not applicable
Unit: share
Opening Increase in the Unlocked in the Closing Reason for Date of
Shareholder
restricted shares current period current period restricted shares restriction unlocking
Yang Yunxia 11,920 In
accordance
Jiang Jia 8,881 Non-
with the
transaction rules for
Liu Ming 4,549
transfer restriction of
Yue Song 7,364 under the shares held
Zhang Qing 9,547 employee by
stock incumbent
senior
ownership
Wu Guoping 17,545 13,195 30,740 management
plan and
supervisors
In
accordance
Lockup of with the
shares held rules for
Zhao Dong 9,097 by former restriction of
senior shares held
management by former
senior
management
Peng Zhifu 43,858 43,858 Unlocking of 20220902
shares held
Tang Shengyun 9,100 9,100 20220119
by former
Cao Hongying 7,740 7,740 senior 20221125
Zhu Zhongyu 11,501 11,501 management 20220119
and
Tang Bochao 20,500 20,500 20220317
supervisors
Total 110,244 13,195 92,699 82,098 -- --
II Issuance and Listing of Securities
□ Applicable ? Not applicable
□ Applicable ? Not applicable
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
III Shareholders and Actual Controller
Unit: share
Number of
Number of preference
Number of
ordinary shareholders
preference
shareholders with resumed
shareholders
Number of ordinary at the voting rights at
with resumed
shareholders at the 577,632 month-end 473,366 0 the month-end 0
voting rights
period-end prior to the prior to the
at the period-
disclosure disclosure of
end (if any)
of this this Report (if
(see note 8)
Report any) (see note
Shares in
Shareho Increase/dec Restri pledge,
Nature of Total shares
lding rease in the cted Unrestricted marked or
Name of shareholder sharehold held at the
percenta Reporting shares shares held frozen
er period-end
ge Period held Shar
Status
es
State-
Yibin Development
owned
Holding Group Co., 34.43% 1,336,548,020 1,336,548,020
corporatio
Ltd.
n
State-
Sichuan Yibin
owned
Wuliangye Group 20.40% 791,823,343 791,823,343
corporatio
Co., Ltd.
n
Hong Kong Overseas
Securities Clearing corporatio 5.86% 227,567,230 2,384,694 227,567,230
Company Limited n
China Securities
Finance Corporation Other 2.38% 92,385,936 92,385,936
Limited
Bank of China
Limited－China
Merchants China
Securities Baijiu Other 1.39% 53,813,064 5,280,184 53,813,064
Index Classification
Securities Investment
Fund
State-
Central Huijin Asset
owned
Management Co., 1.01% 39,325,400 39,325,400
corporatio
Ltd.
n
Bank of China
Limited－E Fund
Blue Chip Selected Other 0.79% 30,700,000 2,300,000 30,700,000
Mixed Securities
Investment Fund
Industrial and
Commercial Bank of
China Limited－
Invesco Great Wall Other 0.57% 22,233,100 1,268,990 22,233,100
Newly Growth Mixed
Securities Investment
Fund
China Life Insurance
Company Limited－
Other 0.55% 21,325,437 -2,709,010 21,325,437
Traditional－General
Insurance Product-
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Shenzhen
Agricultural Bank of
China Limited－E
Fund Consumer Other 0.38% 14,684,751 2,588,111 14,684,751
Sector Stock
Investment Fund
Strategic investor or general
corporation becoming a top-10
N/A
shareholder in a rights issue (if
any) (see note 3)
Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of Yibin
Related or acting-in-concert parties
Development Group. And the Company is not aware of any related or acting-in-concert
among the shareholders above
parties among the other public shareholders.
Shareholders above
entrusting/entrusted with or N/A
waiving voting rights
Repurchased share account (if any)
among the top 10 shareholders (see N/A
note 10)
Top 10 unrestricted shareholders
Unrestricted shares held at the period- Shares by class
Name of shareholder
end Class Shares
RMB-
Yibin Development Holding Group Co.,
Ltd.
ordinary shares
RMB-
Sichuan Yibin Wuliangye Group Co., Ltd. 791,823,343 denominated 791,823,343
ordinary shares
RMB-
Hong Kong Securities Clearing Company
Limited
ordinary shares
RMB-
China Securities Finance Corporation
Limited
ordinary shares
Bank of China Limited－China Merchants RMB-
China Securities Baijiu Index 53,813,064 denominated 53,813,064
Classification Securities Investment Fund ordinary shares
RMB-
Central Huijin Asset Management Co., Ltd. 39,325,400 denominated 39,325,400
ordinary shares
RMB-
Bank of China Limited－E Fund Blue Chip
Selected Mixed Securities Investment Fund
ordinary shares
Industrial and Commercial Bank of China RMB-
Limited－Invesco Great Wall Newly 22,233,100 denominated 22,233,100
Growth Mixed Securities Investment Fund ordinary shares
China Life Insurance Company Limited－ RMB-
Traditional－General Insurance Product- 21,325,437 denominated 21,325,437
Agricultural Bank of China Limited－E RMB-
Fund Consumer Sector Stock Investment 14,684,751 denominated 14,684,751
Fund ordinary shares
Related or acting-in-concert parties among
Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of
top 10 unrestricted public shareholders, as
Yibin Development Group. And the Company is not aware of any related or
well as between top 10 unrestricted public
acting-in-concert parties among the other public shareholders.
shareholders and top 10 shareholders
Top 10 ordinary shareholders involved in
securities margin trading (if any) (see note N/A
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of
the Company conducted any promissory repurchase during the Reporting Period.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
□ Yes ? No
No such cases in the Reporting Period.
Nature of the controlling shareholder: controlled by a local state-owned organization
Type of the controlling shareholder: corporation
Legal
Name of the controlling representative/
Date of incorporation Organization code Principal activities
shareholder person-in-
charge
Capital and asset operations as
Yibin Development Holding
Liang Li 4 August 1999 915115007118234259 authorized by the People’s
Group Co., Ltd.
Government of Yibin City
Interests held in other
domestically and overseas Yibin Development Group directly held 171,401,846 shares (or 16.88%) in Yibin Tianyuan Group
listed companies in the Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co., Ltd.
Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Nature of the actual controller: local state-owned assets management organization
Type of the actual controller: corporation
Legal representative/person- Date of
Name of the actual controller Organization code Principal activities
in-charge incorporation
The State-owned Assets Supervision
and Administration Commission of the Xiang Junge 24 February 2005 N/A N/A
People’s Government of Yibin City
Interests controlled in other SASAC Yibin indirectly held 171,401,846 shares (or 16.88%) in Yibin Tianyuan Group
domestically and overseas listed Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co.,
companies in the Reporting Period Ltd.
Change of the actual controller in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Illustration of the relationship between the actual controller and the Company:
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
the largest shareholder and its acting-in-concert parties that are in pledge accounts for over 80% of their
total shareholdings in the Company.
□ Applicable ? Not applicable
? Applicable □ Not applicable
Legal
Name of corporate
representative/person- Date of incorporation Registered capital Principal activities
shareholder
in-charge
Investment and investment
Sichuan Yibin Wuliangye management, asset
Zeng Congqin 12 August 1998 RMB1,000,000,000
Group Co., Ltd. management, and business
management services
Reorganizer and Other Undertaking Makers
□ Applicable ? Not applicable
IV Share Repurchases in the Reporting Period
Progress on any share repurchase:
□ Applicable ? Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing the independent auditor’s report 27 April 2023
Name of the independent auditor Sichuan Huaxin (Group) CPA (LLP)
Number of the independent auditor’s report Huaxin Audit (2023) No. 0068
Names of the certified public accountants Li Wulin, Ye Juan, and Luo Guiqiu
Independent Auditor’s Report
To the Shareholders of Wuliangye Yibin Co., Ltd.:
I Opinion
We have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to as the
―Company‖), which comprise the consolidated and parent company (the Company as the parent exclusive of
subsidiaries) balance sheets as at 31 December 2022, the consolidated and parent company statements of income,
cash flows and changes in owners’ equity for the year then ended, as well as the notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated and parent company financial position of the Company at 31 December 2022, and the consolidated
and parent company operating results and cash flows for the year then ended, in conformity with China’s
Accounting Standards for Business Enterprises (CAS).
II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of
Financial Statements section of our report. We are independent of the Company in accordance with the China
Code of Ethics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities in
accordance with the said Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
III Key Audit Matters
Key audit matters are matters that, based on our professional judgment, are deemed most important to the
audit of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. The key audit matters we identified in our audit are as follows:
Key audit matters Audit response
(I) Existence and integrity of monetary assets
Please refer to notes to financial With respect of monetary assets, we conducted the following audit procedures:
statements "V. Notes to consolidated 1. Understood, tested, and evaluated key internal controls related to the management of
financial statements, 1. Monetary assets". monetary assets;
As at 31 December 2022, the 2. Obtained list of bank accounts opened, and checked the books of the Company against
balance of monetary assets of the the bank account information and integrity of the bank accounts;
Company was RMB92,358.4270 million, 3. Obtained the bank statement and bank reconciliation for confirmation of the bank
accounting for 60.48% of the total assets. accounts, and controlled the process of confirmation;
The safety of deposits and the accuracy
and integrity of balance have great 4. Supervised the originals of certificate of time deposit, and paid attention to the holders of
impact on the financial statements due to certificate of time deposit and other information;
the large amount of balance of monetary 5. Obtained credit report of the enterprise and checked whether the monetary assets are
assets and large number of bank under mortgage, charge or frozen;
accounts. Therefore, we consider the 6. At the end of the period, the amount deposited with Sichuan Yibin Wuliangye Group
existence and integrity of monetary Finance Co., Ltd. was RMB35,044.3317 million in total; the deposit and loan business of
assets as a key audit matter. Sichuan Yibin Wuliangye Group Finance Co., Ltd. was checked.
We believe that the above audit procedures can support the management of the Company in
their determination of the existence and integrity of monetary assets.
(II) Recognition of operating revenue
Please refer to notes to financial With respect of operating revenue, we conducted the following audit procedures:
statement "V Notes to the Consolidated 1. Understood, tested, and evaluated key internal controls related to the recognition of
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Financial Statements, 33. Operating operating revenue;
revenue and cost of sales". 2. Selected samples to examine sales contracts and identify contractual terms and
The Company recorded operating conditions relating to the transfer of control of goods in order to evaluate whether the time
revenue of RMB73,968.6407 million of recognition of operating revenue meets the requirements of the CAS;
during 2022, which was the main source 3. Performed analytical review procedures to compare the key indicators such as sales
of the operating profit. And operating volumes, unit sales prices, gross margins and major customers for the current period with
revenue is one of the key performance the previous period to identify changes in key indicators and the reasonableness of the
indicators. Therefore, we consider the changes;
recognition of operating revenue as a key 4. Performed detail testing by selecting samples of the revenue and transactions of the
audit matter. principal operations recorded during the year and examining supporting documentation
such as sales contracts or orders, release orders, delivery notes, customer sign-off records,
sales invoices, etc. to evaluate the authenticity and accuracy of operating revenue
recognition;
relevant supporting documentation (including dispatch notes or customer acknowledgement
of receipt) to assess whether operating revenue is recognised in the appropriate accounting
period; and
to perform correspondence procedures to verify the amount of operating revenue for the
period and the closing balance of contract liabilities and verify the authenticity and
accuracy of the amount of operating revenue recognized by management.
We believe that the above audit procedures can support the management of the Company in
their determination of the recognition of operating revenue.
IV Other Information
The Company’s management is responsible for the other information. The other information comprises all
of the information included in the Company’s 2022 Annual Report other than the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
V Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair
view in accordance with CAS, and for designing, implementing and maintaining such internal control as the
management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern (if applicable) and using
the going concern basis of accounting unless the management either intends 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.
VI Auditor’s Responsibilities for Audit of 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 CAS 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 CAS, 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
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
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 management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions 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 by CAS to draw users’ attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient 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 Company 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 noteworthy deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and 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 those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA (LLP) Chinese certified public accountant: Li Wulin
(engagement partner)
Chengdu ·China
Chinese certified public accountant: Ye Juan
Chinese certified public accountant: Luo Guiqiu
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
II Financial Statements
Monetary unit for the financial statements and the statements in the notes thereto unless otherwise stated: RMB
Prepared by Wuliangye Yibin Co., Ltd. Unit: RMB
Item 31 December 2022 1 January 2022
Current assets：
Monetary assets 92,358,426,975.79 82,335,955,927.74
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 119,918,307.60 23,859,058,132.07
Accounts receivable 35,686,942.32 64,193,116.22
Receivables financing 28,904,198,420.44 1,641,509,588.69
Prepayments 135,982,868.14 195,652,974.42
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 30,901,231.69 26,288,496.24
Of which: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 15,980,657,013.57 14,015,067,118.25
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets
Total current assets 137,565,771,759.55 122,137,725,353.63
Non-current assets：
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 1,986,387,524.78 1,911,228,653.63
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 5,312,971,445.61 5,610,147,000.37
Construction in progress 3,773,155,983.95 2,646,087,846.01
Productive living assets
Oil and gas assets
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Right-of-use assets 380,922,885.84 697,805,952.69
Intangible assets 518,517,835.31 556,398,465.19
Development costs
Goodwill 1,621,619.53 1,621,619.53
Long-term prepaid expense 158,586,327.06 155,512,345.82
Deferred income tax assets 2,043,089,823.62 1,683,957,848.54
Other non-current assets 972,502,674.97 219,127,135.72
Total non-current assets 15,148,956,120.67 13,483,086,867.50
Total assets 152,714,727,880.22 135,620,812,221.13
Current liabilities：
Short-term borrowings
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 887,970,376.53 872,040,239.87
Accounts payable 7,246,802,709.58 5,403,561,392.95
Advances from customers 16,160,671.49 10,970,385.19
Contract liabilities 12,379,125,542.70 13,058,652,246.11
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial
institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 3,375,526,829.88 3,335,937,141.30
Taxes and levies payable 5,301,718,185.93 5,192,183,704.90
Other payables 4,631,434,915.43 3,693,858,108.21
Of which: Interest payable
Dividends payable 13,191,392.99 37,436,404.82
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 1,544,723,419.34 1,688,367,639.42
Total current liabilities 35,759,145,250.65 33,615,598,257.01
Non-current liabilities：
Insurance contract reserve
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Lease liabilities 16,976,148.73 355,338,950.93
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 254,416,864.75 257,991,368.32
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 271,393,013.48 613,330,319.25
Total liabilities 36,030,538,264.13 34,228,928,576.26
Owners’ equity：
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which : Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 28,432,198,524.98 23,866,103,395.72
General reserve
Retained earnings 79,028,605,172.04 68,638,139,859.37
Total equity attributable to owners of the
Company as the parent
Non-controlling interests 2,659,130,827.92 2,323,385,298.63
Total owners’ equity 116,684,189,616.09 101,391,883,644.87
Total liabilities and owners’ equity 152,714,727,880.22 135,620,812,221.13
Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Yang Wentian
Unit: RMB
Item 31 December 2022 1 January 2022
Current assets：
Monetary assets 51,104,448,387.06 43,723,114,772.56
Held-for-trading financial assets
Derivative financial assets
Notes receivable 50,000.00
Accounts receivable
Receivables financing
Prepayments 33,048,447.08 32,605,050.85
Other receivables 8,462,631,304.66 7,827,776,183.91
Of which: Interest receivable
Dividends receivable 2,126,718,123.00 1,153,154,780.16
Inventories
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets
Total current assets 59,600,128,138.80 51,583,546,007.32
Non-current assets：
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 13,383,816,192.05 13,313,609,602.58
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 100,713,555.25 97,722,498.48
Construction in progress 115,870,542.48 114,160,542.48
Productive living assets
Oil and gas assets
Right-of-use assets 1,948,611.38 3,757,317.38
Intangible assets 38,664,783.59 41,628,936.23
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 1,082,797.53 1,108,475.08
Other non-current assets
Total non-current assets 13,643,296,482.28 13,573,187,372.23
Total assets 73,243,424,621.08 65,156,733,379.55
Current liabilities：
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1,134,674.42 1,134,674.42
Advances from customers
Contract liabilities
Employee benefits payable 4,106,534.36 3,747,183.77
Taxes and levies payable 277,283,965.88 65,068,408.85
Other payables 146,366,462.73 154,169,154.25
Of which: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 430,062,561.70 225,936,334.16
Non-current liabilities：
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities 1,170,924.31
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 500,000.00 500,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 500,000.00 1,670,924.31
Total liabilities 430,562,561.70 227,607,258.47
Owners’ equity：
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 13,295,638,080.20 11,333,854,390.82
Retained earnings 52,952,968,888.03 47,031,016,639.11
Total owners’ equity 72,812,862,059.38 64,929,126,121.08
Total liabilities and owners’ equity 73,243,424,621.08 65,156,733,379.55
Unit: RMB
Item 2022 2021
I Total revenues 73,968,640,704.54 66,209,053,612.11
Of which: Operating revenue 73,968,640,704.54 66,209,053,612.11
Interest income
Insurance premium income
Fee and commission income
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
II Total costs and expenses 37,049,016,916.17 33,957,661,247.50
Of which: Cost of sales 18,178,425,659.64 16,318,778,588.82
Interest costs
Fee and commission costs
Surrenders
Net insurance claims paid
Net amount provided as insurance contract
reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 10,748,802,377.04 9,789,698,016.98
Selling expense 6,844,237,013.17 6,503,506,131.90
Administrative expense 3,068,119,268.45 2,899,968,867.37
R&D expense 235,783,645.79 177,411,727.65
Finance costs -2,026,351,047.92 -1,731,702,085.22
Of which: Interest expense 48,003,667.91 69,130,792.55
Interest income 2,075,700,630.12 1,801,002,307.73
Add: Other income 186,525,904.41 215,728,235.35
Return on investment (―－‖ for loss) 92,571,951.15 97,346,566.33
Of which: Share of profit or loss of joint ventures
and associates
Income from the derecognition of financial
assets at amortized cost
Exchange gain (―－‖ for loss)
Net gain on exposure hedges (―－‖ for loss)
Gain on changes in fair value (―－‖ for loss)
Credit impairment loss (―－‖ for loss) -1,437,932.66 -2,601,524.74
Asset impairment loss (―－‖ for loss) -26,207,459.87 -7,531,487.70
Asset disposal income (―－‖ for loss) 3,347,202.23 -1,905,183.84
III Operating profit (―－‖ for loss) 37,174,423,453.63 32,552,428,970.01
Add: Non-operating income 38,885,270.86 52,099,818.22
Less: Non-operating expense 109,788,008.25 154,124,342.53
IV Gross profit (―－‖ for gross loss) 37,103,520,716.24 32,450,404,445.70
Less: Income tax expense 9,132,888,784.02 7,942,954,115.44
V Net profit (―－‖ for net loss) 27,970,631,932.22 24,507,450,330.26
(I) By operating continuity
loss)
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
loss)
(II) By ownership
the parent
VI Other comprehensive income, net of tax
Other comprehensive income, net of tax attributable to
owners of the Company as the parent
(I) Other comprehensive income that will not be
reclassified to profit or loss
defined benefit schemes
reclassified to profit or loss under the equity method
investments
changes in own credit risk
(II) Other comprehensive income that will be
reclassified to profit or loss
reclassified to profit or loss under the equity method
investments
reclassification of financial assets
investments
foreign currency-denominated financial statements
Other comprehensive income, net of tax attributable to
non-controlling interests
VII Total comprehensive income 27,970,631,932.22 24,507,450,330.26
Total comprehensive income attributable to owners of
the Company as the parent
Total comprehensive income attributable to non-
controlling interests
VIII Earnings per share：
(I) Basic earnings per share 6.876 6.023
(II) Diluted earnings per share 6.876 6.023
Where business combinations involving entities under common control occurred in the current period, the net profit achieved by the
acquirees before the combinations was RMB0.00, with the amount for last year being RMB0.00.
Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Yang Wentian
Unit: RMB
Item 2022 2021
I Operating revenue 0.00 6,072.98
Less: Cost of sales 0.00 3,997.51
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Taxes and levies 370,416.70 169,236.15
Selling expense
Administrative expense 142,946,488.68 108,298,808.63
R&D expense 55,470,547.04 49,585,654.07
Finance costs -1,320,194,889.62 -1,174,604,456.01
Of which: Interest expense 68,515.70 120,978.03
Interest income 1,320,290,654.38 1,174,761,559.86
Add: Other income 20,873,010.56 12,836,803.76
Return on investment (―－‖ for loss) 18,799,779,256.49 17,986,096,250.69
Of which: Share of profit or loss of joint
ventures and associates
Income from the derecognition of
financial assets at amortized cost (―－‖ for loss)
Net gain on exposure hedges (―－‖ for loss)
Gain on changes in fair value (―－‖ for loss)
Credit impairment loss (―－‖ for loss) -1,002,989.80 -500,010.20
Asset impairment loss (―－‖ for loss)）
Asset disposal income (―－‖ for loss)
II Operating profit (―－‖ for loss) 19,941,056,714.45 19,014,985,876.88
Add: Non-operating income 413,500.00 75,201.02
Less: Non-operating expense 58,415,869.51 99,772,654.47
III Gross profit (―－‖ for gross loss) 19,883,054,344.94 18,915,288,423.43
Less: Income tax expense 265,217,451.15 220,328,944.73
IV Net profit (―－‖ for net loss) 19,617,836,893.79 18,694,959,478.70
(I) Net profit from continuing operations (―－‖ for
net loss)
(II) Net profit from discontinued operations (―－‖
for net loss)
V Other comprehensive income, net of tax
(I) Other comprehensive income that will not be
reclassified to profit or loss
defined benefit schemes
not be reclassified to profit or loss under the equity
method
investments
changes in own credit risk
(II) Other comprehensive income that will be
reclassified to profit or loss
be reclassified to profit or loss under the equity method
investments
from the reclassification of financial assets
debt investments
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
of foreign currency-denominated financial statements
VI Total comprehensive income 19,617,836,893.79 18,694,959,478.70
VII Earnings per share：
(I) Basic earnings per share
(II) Diluted earnings per share
Unit: RMB
Item 2022 2021
I Cash flows from operating activities：
Proceeds from sale of goods and rendering of
services
Net increase in customer deposits and deposits
from other banks and financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial
institutions
Premiums received on original insurance
contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy
holders
Interest, fees and commissions received
Net increase in loans from other banks and
financial institutions
Net increase in proceeds from repurchase
transactions
Net proceeds from acting trading of securities
Tax and levy rebates 72,322,800.00 24,522,993.00
Cash generated from other operating activities 2,006,197,288.41 2,045,885,363.36
Subtotal of cash generated from operating activities 83,849,102,992.33 83,023,369,160.65
Payments for goods and services 19,397,297,581.75 19,137,502,429.86
Net increase in loans and advances to customers
Net increase in deposits in the central bank and
other banks and financial institutions
Payments for claims on original insurance
contracts
Net increase in loans to other banks and financial
institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 7,879,082,833.54 7,240,759,270.94
Taxes and levies paid 27,773,048,881.11 25,084,613,186.47
Cash used in other operating activities 4,368,537,434.45 4,785,552,400.33
Subtotal of cash used in operating activities 59,417,966,730.85 56,248,427,287.60
Net cash generated from/used in operating activities 24,431,136,261.48 26,774,941,873.05
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
II Cash flows from investing activities：
Proceeds from the disposal of investments
Return on investment 23,038,080.00 41,720,016.00
Net proceeds from the disposal of fixed assets,
intangible assets and other long-term assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 69,705,342.99 47,904,368.82
Payments for the acquisition and construction of
fixed assets, intangible assets and other long-term 1,780,534,893.52 1,539,129,180.86
assets
Payments for the acquisition of investments 5,625,000.00 5,625,000.00
Net increase in pledge loans
Net payments for the acquisition of subsidiaries
and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 1,786,159,893.52 1,544,754,180.86
Net cash generated from/used in investing activities -1,716,454,550.53 -1,496,849,812.04
III Cash flows from financing activities：
Capital contributions received
Of which: Capital contributions received by
subsidiaries from non-controlling interests
Borrowings received
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings
Interest and dividends paid 12,681,422,089.05 10,874,295,018.51
Of which: Dividends paid by subsidiaries to non-
controlling interests
Cash used in other financing activities 424,009,369.15 395,161,935.55
Subtotal of cash used in financing activities 13,105,431,458.20 11,269,456,954.06
Net cash generated from/used in financing activities -13,105,431,458.20 -11,269,456,954.06
IV Effect of foreign exchange rate changes on cash and
cash equivalents
V Net increase in cash and cash equivalents 9,609,386,518.94 14,008,165,578.27
Add: Cash and cash equivalents, beginning of the
period
VI Cash and cash equivalents, end of the period 90,584,643,897.66 80,975,257,378.72
Unit: RMB
Item 2022 2021
I Cash flows from operating activities：
Proceeds from sale of goods and rendering of services 0.00 2,200.00
Tax and levy rebates
Cash generated from other operating activities 1,463,712,176.86 1,053,801,847.71
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Subtotal of cash generated from operating activities 1,463,712,176.86 1,053,804,047.71
Payments for goods and services
Cash paid to and for employees 151,676,699.98 114,541,768.51
Taxes and levies paid 46,538,112.01 193,123,570.90
Cash used in other operating activities 264,037,436.73 521,409,386.01
Subtotal of cash used in operating activities 462,252,248.72 829,074,725.42
Net cash generated from/used in operating activities 1,001,459,928.14 224,729,322.29
II Cash flows from investing activities：
Proceeds from the disposal of investments
Return on investment 17,761,634,324.18 17,515,105,146.72
Net proceeds from the disposal of fixed assets, intangible
assets and other long-term assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 17,761,634,461.79 17,515,105,146.72
Payments for the acquisition and construction of fixed assets,
intangible assets and other long-term assets
Payments for the acquisition of investments 5,625,000.00 5,625,000.00
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 17,597,576.93 26,782,071.16
Net cash generated from/used in investing activities 17,744,036,884.86 17,488,323,075.56
III Cash flows from financing activities：
Capital contributions received
Borrowings received
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings
Interest and dividends paid 11,734,100,955.49 10,014,548,652.90
Cash used in other financing activities 1,979,700.00 1,979,700.00
Subtotal of cash used in financing activities 11,736,080,655.49 10,016,528,352.90
Net cash generated from/used in financing activities -11,736,080,655.49 -10,016,528,352.90
IV Effect of foreign exchange rate changes on cash and cash
equivalents
V Net increase in cash and cash equivalents 7,009,416,157.51 7,696,524,044.95
Add: Cash and cash equivalents, beginning of the period 42,966,222,702.66 35,269,698,657.71
VI Cash and cash equivalents, end of the period 49,975,638,860.17 42,966,222,702.66
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Equity attributable to owners of the Company as the parent
Other equity
Item Le
instruments Other Sp Ge
ss: Non-controlling
Pre Tre
comp eci ner
Ot Total owners’ equity
Per rehen fic al interests
Share capital fer Capital reserves asu Surplus reserves Retained earnings he Subtotal
pet sive res res
enc Ot ry r
ual inco erv erv
e her sha
bo me e e
sha res
nds
res
I Balance as at
the end of the 3,881,608,005.00 2,682,647,086.15 23,866,103,395.72 68,638,139,859.37 99,068,498,346.24 2,323,385,298.63 101,391,883,644.87
prior year
Add:
Adjustments
for changes in
accounting
policies
Adjustments
for correction
of previous
errors
Adjustments
for business
combinations
involving
entities under
common
control
Other
II Balance as
at the
beginning of 3,881,608,005.00 2,682,647,086.15 23,866,103,395.72 68,638,139,859.37 99,068,498,346.24 2,323,385,298.63 101,391,883,644.87
the year
III Increase/
decrease in the
period (―-‖ for 4,566,095,129.26 10,390,465,312.67 14,956,560,441.93 335,745,529.29 15,292,305,971.22
decrease)
(I) Total
comprehensive 26,690,661,397.42 26,690,661,397.42 1,279,970,534.80 27,970,631,932.22
income
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(II) Capital
increase and
reduction by -21,148,883.78 -21,148,883.78
owners
share increase
by owners
increase by
holders of
other equity
instruments
payments
recognized in
owners’ equity
(III) Profit
distribution 4,566,095,129.26 -16,300,196,084.75 -11,734,100,955.49 -923,076,121.73 -12,657,177,077.22
Appropriated
to surplus 4,566,095,129.26 -4,566,095,129.26
reserves
Appropriated
to general
reserve
to owners (or -11,734,100,955.49 -11,734,100,955.49 -923,076,121.73 -12,657,177,077.22
shareholders)
(IV) Transfers
within owners’
equity
capital (or
share capital)
from capital
reserves
capital (or
share capital)
from surplus
reserves
reserves used
to offset loss
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
defined benefit
schemes
transferred to
retained
earnings
comprehensive
income
transferred to
retained
earnings
(V) Specific
reserve
the period
period
(VI) Other
IV Balance as
at the end of 3,881,608,005.00 2,682,647,086.15 28,432,198,524.98 79,028,605,172.04 114,025,058,788.17 2,659,130,827.92 116,684,189,616.09
the period
Unit: RMB
Equity attributable to owners of the Company as the parent
Other equity
Le
Item instruments Other Sp Ge
ss: Non-controlling
Pre comp eci ner Total owners’ equity
Per Tre interests
fer rehen fic al Ot
Share capital pet Capital reserves asu Surplus reserves Retained earnings Subtotal
enc Ot sive res res her
ual ry
e her inco erv erv
bo sha
sha me e e
nds res
res
I Balance as at
the end of the 3,881,608,005.00 2,682,647,086.15 19,698,525,995.51 59,443,191,559.08 85,705,972,645.74 2,052,273,998.97 87,758,246,644.71
prior year
Add:
Adjustments
for changes in
accounting
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
policies
Adjustments
for correction
of previous
errors
Adjustments
for business
combinations
involving
entities under
common
control
Other
II Balance as
at the
beginning of 3,881,608,005.00 2,682,647,086.15 19,698,525,995.51 59,443,191,559.08 85,705,972,645.74 2,052,273,998.97 87,758,246,644.71
the year
III Increase/
decrease in the
period (―-‖ for 4,167,577,400.21 9,194,948,300.29 13,362,525,700.50 271,111,299.66 13,633,637,000.16
decrease)
(I) Total
comprehensive 23,377,074,353.40 23,377,074,353.40 1,130,375,976.86 24,507,450,330.26
income
(II) Capital
increase and
reduction by
owners
share increase
by owners
increase by
holders of
other equity
instruments
payments
recognized in
owners’ equity
(III) Profit
distribution 4,167,577,400.21 -14,182,126,053.11 -10,014,548,652.90 -859,264,677.20 -10,873,813,330.10
Appropriated
to surplus 4,167,577,400.21 -4,167,577,400.21
reserves
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Appropriated
to general
reserve
to owners (or -10,014,548,652.90 -10,014,548,652.90 -859,264,677.20 -10,873,813,330.10
shareholders)
(IV) Transfers
within owners’
equity
capital (or
share capital)
from capital
reserves
capital (or
share capital)
from surplus
reserves
reserves used
to offset loss
defined benefit
schemes
transferred to
retained
earnings
comprehensive
income
transferred to
retained
earnings
(V) Specific
reserve
the period
period
(VI) Other
IV Balance as
at the end of 3,881,608,005.00 2,682,647,086.15 23,866,103,395.72 68,638,139,859.37 99,068,498,346.24 2,323,385,298.63 101,391,883,644.87
the period
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Other equity instruments Less: Other Spe
Item Treas compre cifi
Perpe Ot
Share capital Prefere Capital reserves ury hensiv c Surplus reserves Retained earnings Total owners’ equity
tual Ot her
nce share e rese
bond her
shares s income rve
s
I Balance as at the end of the prior year 3,881,608,005.00 2,682,647,086.15 11,333,854,390.82 47,031,016,639.11 64,929,126,121.08
Add: Adjustments for changes in accounting
policies
Adjustments for correction of previous
errors
Other
II Balance as at the beginning of the year 3,881,608,005.00 2,682,647,086.15 11,333,854,390.82 47,031,016,639.11 64,929,126,121.08
III Increase/ decrease in the period (―-‖ for decrease) 1,961,783,689.38 5,921,952,248.92 7,883,735,938.30
(I) Total comprehensive income 19,617,836,893.79 19,617,836,893.79
(II) Capital increase and reduction by owners
instruments
equity
(III) Profit distribution 1,961,783,689.38 -13,695,884,644.87 -11,734,100,955.49
(IV) Transfers within owners’ equity
reserves
reserves
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
retained earnings
retained earnings
(V) Specific reserve
(VI) Other
IV Balance as at the end of the period 3,881,608,005.00 2,682,647,086.15 13,295,638,080.20 52,952,968,888.03 72,812,862,059.38
Unit: RMB
Other equity Ot
instruments he
r
co
Pr Less m
Item ef : pr Spec
Trea eh ific
Share capital er Capital reserves Surplus reserves Retained earnings Other Total owners’ equity
en Perpetual Othe sury en reser
ce bonds r shar si ve
sh es ve
ar in
es co
m
e
I Balance as at the end of the prior
year 3,881,608,005.00 2,682,647,086.15 9,464,358,442.95 40,220,101,761.18 56,248,715,295.28
Add: Adjustments for changes in
accounting policies
Adjustments for correction of
previous errors
Other
II Balance as at the beginning of
the year 3,881,608,005.00 2,682,647,086.15 9,464,358,442.95 40,220,101,761.18 56,248,715,295.28
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
III Increase/ decrease in the period
(―-‖ for decrease) 1,869,495,947.87 6,810,914,877.93 8,680,410,825.80
(I) Total comprehensive income 18,694,959,478.70 18,694,959,478.70
(II) Capital increase and reduction
by owners
owners
other equity instruments
recognized in owners’ equity
(III) Profit distribution 1,869,495,947.87 -11,884,044,600.77 -10,014,548,652.90
shareholders) -10,014,548,652.90 -10,014,548,652.90
(IV) Transfers within owners’
equity
capital) from capital reserves
capital) from surplus reserves
loss
schemes transferred to retained
earnings
transferred to retained earnings
(V) Specific reserve
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(VI) Other
IV Balance as at the end of the
period 3,881,608,005.00 2,682,647,086.15 11,333,854,390.82 47,031,016,639.11 64,929,126,121.08
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
III Company Profile
Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company") is a company limited by shares
established by Sichuan Yibin Wuliangye Distillery through fund raising on 19 August 1997 with the approval of
Document CFH (1997) No. 295 issued by the People's Government of Sichuan Province. The Company is
principally engaged in the production and sales of "Wuliangye"-branded Baijiu products and other Baijiu series,
with a registered capital of RMB3,881.6080 million and registered address: 150 Minjiang West Road, Cuiping
District, Yibin City, Sichuan Province, China.
The Company issued 80 million common shares (in RMB) on-line by fixed price offering at Shenzhen
Stock Exchange on 27 April 1998. According to the resolution of the extraordinary general meeting of
Shareholders in September 1999, the Company, based on the total share capital of 320 million shares on 30 June
share capital after the conversion was changed to 480 million shares. The Company placed 31.2 million common
shares (in RMB) to the original shareholders as approved by the Document ZH.J.G.S.Z. [2001] No. 6 issued by
the China Securities Regulatory Commission. The total share capital after the placement was 511.2 million
shares. In August 2001, the Company implemented the interim distribution plan 2001 and issued four bonus
shares and increased three shares for every ten shares by transferring capital reserve to share capital, with 357.84
million bonus shares and shares transferred from capital reserve in total. The total share capital after the issuance
and translation was 869.04 million shares. In April 2002, the Company implemented the distribution plan 2001
and issued one bonus shares, increased two shares by transferring capital reserve to share capital, and distributed
RMB0.25 (tax inclusive) in cash for every ten shares, with 260.712 million bonus shares in total. The total share
capital after the issuance and translation was 1,129.752 million shares. In April 2003, the Company implemented
the distribution plan 2002 and increased two shares for every ten shares by transferring capital reserve to share
capital for all shareholders, increasing the share capital by 225.9504 million shares. The total share capital after
the translation was 1,355.7024 million shares. In April 2004, the Company implemented the distribution plan
every ten shares, with 1,355.7024 million bonus shares in total. The total share capital after the issuance and
translation was 2,711.4048 million shares.
On 31 March 2006, the Company carried out the equity division reform and the shareholding structure after
the reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the total
share capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 million
shares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained
In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares and
distributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total.
The total share capital after the issuance and distribution was 3,795.96672 million shares. On 2 April 2008,
shares for state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and
became 2,128.3714 million shares, taking up 56.07% of the total share capital. Other shareholders held
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye Yibin
Co., Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province
(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders of
Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the State
Council (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as Yibin
Development Holding Group Co., Ltd. in 2021) transferred 761,823,343 shares held by it in the Company to
Sichuan Yibin Wuliangye Group Co., Ltd. for free on 10 October 2012. After this free transfer of shares, Yibin
Development Holding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was
the first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07%
shares of the Company (i.e. 791,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.
(Y.G.Z.W. [2016] No. 32), the State-owned Assets Supervision and Administration Commission of the People’s
Government of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to
Yibin Development Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the change
of shares held by both parties in the Company, without changing the controlling shareholder and actual controller
of the Company.
According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting of
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Shareholders 2015, the 19th meeting of the 5th Board of Directors, the 24th meeting of the 5th Board of
Directors, and annual general meeting of Shareholders 2016 of the Company and as approved by the License
ZH.J.X.K. [2017] No. 1910 issued by the China Securities Regulatory Commission, the Company issued
after the issuance was 3,881.608 million shares, including 2128.3714 million shares for state-owned legal person,
taking up 54.83% of the total share capital, and 1,753.2366 million shares for other shareholders, taking up 45.17%
of the total share capital.
According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd.
(Y.G.Z.W. [2020] No. 157), issued by The State-owned Assets Supervision and Administration Commission of
the People’s Government of Yibin City, the transfer was approved in principle. On 24 August 2020, Yibin
Development Holding Group Co., Ltd. transferred 30,000,000 shares held by it in the Company to Sichuan Yibin
Wuliangye Group Co., Ltd. for free. After this transfer of shares, Yibin Development Holding Group Co., Ltd.
still held 34.43% shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of the
Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343
shares), was the second majority shareholder of the Company. This transfer of shares did not change the
controlling shareholder and actual controller of the Company.
The Company is engaged in the beverage production industry and its business scope is: Production and
operation of liquor products and relevant auxiliary products (bottle caps, trademarks, logos and packaging
products). Its primary products are "Wuliangye"-branded Baijiu products and other Baijiu series.
These financial statements have been reviewed and approved by General Meeting of Shareholders of the
Company on 27 April 2023, and will be submitted to the general meeting for review according to the Articles of
Association.
As of 31 December 2022, subsidiaries included in the scope of consolidated financial statements of the
Company were:
The
The Company’s
Company’s
Full name of subsidiary Type of subsidiary Tier shareholding
voting right
percentage
percentage
Majority-owned
Sichuan Yibin Wuliangye Distillery Co., Ltd. First-tier 99.99% 99.99%
subsidiary
Majority-owned
Yibin Wuliangye Liquor Sales Co., Ltd. First-tier 95.00% 95.00%
subsidiary
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Majority-owned
Second-tier 95.00% 95.00%
Ltd. subsidiary
Majority-owned
Yibin Wuliangchun Brand Marketing Co., Ltd Second-tier 95.00% 95.00%
subsidiary
Yibin Wuliangye Series Liquor Brand Marketing Co., Majority-owned
Second-tier 95.00% 95.00%
Ltd. subsidiary
Majority-owned
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. First-tier 99.95% 99.95%
subsidiary
Wholly-owned
Yibin Jiangjiu Liquor Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Wuliangye Environmental Protection Majority-owned
First-tier 51.00% 51.00%
Industry Co., Ltd. subsidiary
Majority-owned
Sichuan Jinwuxin Technology Co., Ltd. Second-tier 51.00% 51.00%
subsidiary
Majority-owned
Sichuan Jiebeike Environmental Technology Co., Ltd. Second-tier 26.01% 26.01%
subsidiary
Wholly-owned
Yibin Changjiangyuan Liquor Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Wholly-owned
Yibin Changjiangyuan Trade Co., Ltd. Second-tier 100.00% 100.00%
subsidiary
Wholly-owned
Yibin Changjiangyuan Brewery Co., Ltd. Second-tier 100.00% 100.00%
subsidiary
Yibin Wuliangye Organic Agriculture Development Co., Wholly-owned
Second-tier 100.00% 100.00%
Ltd. subsidiary
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Majority-owned
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. First-tier 90.00% 90.00%
subsidiary
Majority-owned
Yibin Xianlin Liquor Marketing Co., Ltd. Second-tier 90.00% 90.00%
subsidiary
Majority-owned
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. First-tier 98.53% 98.53%
subsidiary
Majority-owned
Yibin Xinxing Packaging Co., Ltd. Second-tier 98.53% 98.53%
subsidiary
Sichuan Yibin Plastic Packaging Materials Company Wholly-owned
First-tier 100.00% 100.00%
Limited subsidiary
Wholly-owned
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Wholly-owned
First-tier 100.00% 100.00%
Ltd. subsidiary
Wholly-owned
Sichuan Yibin Push Group 3D Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Guangdong Plastic Packaging Materials Company Wholly-owned
Second-tier 100.00% 100.00%
Limited subsidiary
Sichuan Yibin Wuliangye Investment (Consulting) Co., Majority-owned
First-tier 95.00% 95.00%
Ltd. subsidiary
Majority-owned
Wuliangye Dashijie (Beijing) Trade Co., Ltd. First-tier 95.00% 95.00%
subsidiary
Majority-owned
Handan Yongbufenli Liquor Co., Ltd. First-tier 51.00% 51.00%
subsidiary
Majority-owned
Linzhang Desheng Liquor Trade Co., Ltd. Second-tier 51.00% 51.00%
subsidiary
Majority-owned
Handan Yongbufenli Sales Co., Ltd. Second-tier 51.00% 51.00%
subsidiary
Wholly-owned
Huaibin Wubin Consultation Service Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Majority-owned
Wuguchun Jiu Ye Co., Henan. China Second-tier 51.03% 51.03%
subsidiary
Majority-owned
Huaibin Tenglong Trade Co., Ltd. Third-tier 51.03% 51.03%
subsidiary
Majority-owned
Wuguchun Jiu Ye Sales Co., Henan. China Third-tier 51.03% 51.03%
subsidiary
Sichuan Wuliangye Culture Tourism Development Co., Majority-owned
First-tier 80.00% 80.00%
Ltd. subsidiary
Majority-owned
Sichuan Wuliangye Tourist Agency Co., Ltd. Second-tier 80.00% 80.00%
subsidiary
Majority-owned
Yibin Wuliangye Creart Co., Ltd. First-tier 45.00% 51.00%
subsidiary
Majority-owned
Sichuan Wuliangye NongXiang Baijiu Co., Ltd. First-tier 95.00% 95.00%
subsidiary
Majority-owned
Sichuan Wuliangye New Retail Management Co., Ltd. First-tier 90.00% 90.00%
subsidiary
Refer to the Note "VIII. Changes in consolidation scope" and "IX. Interests in other entities" for the scope
of consolidated financial statements of the current period and its changes.
IV Preparation Basis for Financial Statements
The financial statements of the Company are prepared on the basis of going concern and the recognition
and measurement are made at actual transactions and matters in accordance with the Accounting Standards for
Business Enterprises-Basic Standards issued by the Ministry of Finance and the specific Accounting Standards
for Business Enterprise, Guidelines for Application of Accounting Standards for Business Enterprises,
Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafter
referred to as ―Accounting Standards for Business Enterprise‖), combining with the Preparation Rules for
Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on
Financial Reports (2014 revision) issued by China Securities Regulatory Commission on this basis.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
The Company has the ability of going concern for at least 12 months from the end of the Reporting Period,
and there is no major event affecting the ability of going concern.
V Significant Accounting Policies and Accounting Estimates
The Company should obey the disclosure requirement for the food and wine manufacturing related
industries in SSE Guidelines No. 3 on the Application of Self-Regulation Rules for Listed Companies - Industry
Information Disclosure requirement
Specific accounting policies and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimates formulated by
the Company according to the actual production and operation characteristics.
The Company states that the financial statements prepared comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company's financial position, operating
results, cash flows and other relevant information.
From 1 January to 31 December of each calendar year.
The Company’s operating cycle is 12 months.
RMB is used as the bookkeeping base currency and reporting currency of the Company.
control
(1) Business combination involving enterprises under the common control
The assets and liabilities acquired by the combining party through business combination involving
enterprises under the common control are measured at the share of owners' equity of the combined party in the
carrying value on consolidated financial statements of the final controlling party on the combination date. The
difference between the carrying value of the net assets obtained by the combining party and the carrying value of
consideration paid for the combination (or total par value of the shares issued) is adjusted against share premium
in the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall be
adjusted. All the direct costs incurred by the combining party for the business combination shall be included in
current profit/loss when incurred.
(2) Business combination involving enterprises not under the common control
In case of business combination involving enterprises not under the common control, the combination costs
shall be the fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on the
date of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the common control achieved through step-by-
step implementation of multiple transactions, related accounting treatment shall be carried out by distinguishing
individual financial statements from consolidated financial statements:
a) In the individual financial statements, the sum of carrying value of the equity investment held in the
acquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shall be taken
as the initial cost of such investment; where the equity held in the acquiree prior to the date of acquisition
involves other comprehensive income, the other comprehensive income related to such investment shall be
transferred to current return on investment.
b) In the consolidated financial statements, the equity held in the acquiree prior to the date of acquisition
shall be re-measured at the fair value of such equity on the date of acquisition, and the difference between its fair
value and its carrying value shall be included in the current return on investment; where the equity held in the
acquiree prior to the date of acquisition involves other comprehensive income, the other comprehensive income
related to such investment shall be transferred to current return on investment on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and other administrative
expenses incurred by the acquirer for the business combination shall be included in current profit/loss; the
transaction expenses for issuing equity securities or debt securities by the acquirer as consideration of the
combination shall be included in the initial recognition amount of the equity securities or debt securities.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the business
combination involving enterprises not under the common control shall be measured at the fair value on the date
of acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's net
identifiable assets obtained in the combination, the difference shall be recognized as goodwill. Where the
combination cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assets
obtained in the combination, the acquirer shall first recheck the fair values of the acquiree's identifiable assets,
liabilities and contingent liabilities obtained in the combination and the combination cost. Where the
combination cost is still less than the acquirer's interest in the fair value of the acquiree's net identifiable assets
obtained in the combination, the difference shall be included in the current profit/loss.
(1) Principles for determining the scope of consolidated financial statements:
The scope of consolidated financial statements is determined on the basis of control, including the
Company and the subsidiaries under its control. Control means that the Company has the power over the
invested company, gets variable return by participating in related activities of the invested company and has the
ability to influence the amount of the return by its power over the invested company.
(2) Methods for preparing consolidated financial statements:
The Company as the parent shall prepare the consolidated financial statements based on its financial
statements and those of its subsidiaries and according to other relevant information. The share of the subsidiaries
in current profit/loss attributable to non-controlling interests shall be presented in the consolidated income
statement as "net profit attributable to non-controlling interests" under the net profit. The share in current
comprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented in
the consolidated income statement as "total comprehensive income attributable to non-controlling interests"
under the total other comprehensive income.
For subsidiaries and businesses of the Company as the parent added by business combination involving
enterprises under the common control during the Reporting Period, the revenue, expenses, and profits of such
subsidiaries and businesses from the beginning to the end of the period of business combination shall be
recorded into the consolidated income statement. Cash flows of such subsidiaries and businesses from the
beginning to the end of the year of business combination shall be recorded into the consolidated cash flow
statement, and relevant items of the statements shall be adjusted through comparison of the statements, as if the
reporting entity after the combination had been existing from control of the final controlling party after the
combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not under the
common control or other means, the revenue, expenses, and profits of such subsidiaries and businesses from the
date of acquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash
flows of such subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into the
consolidated cash flow statement.
When the Company as the parent disposes subsidiaries and businesses during the Reporting Period, the
revenue, expenses, and profits of such subsidiary and business from the beginning of the Reporting Period to the
date of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiary
and business from the beginning of the Reporting Period to the date of disposal shall be recorded into the
consolidated cash flow statement.
In the consolidated financial statements, when the Company as the parent acquires the equity held by the
minority shareholders in the subsidiary, the difference between the long-term equity investment obtained by
acquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated from
the date of acquisition or combination according to the new increase in shareholding proportion shall be adjusted
against the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writing
down, the retained earnings shall be adjusted.
Joint arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture and owns its
relevant assets and bears its relevant liabilities.
The Company shall recognize the following items related to share of interests and treat them according to
relevant Accounting Standards for Business Enterprises:
(1) Recognize assets solely held by the Company, and those jointly owned assets according to the
Company's share;
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilities according to
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
the Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of joint operation;
(4) Recognize revenue from sales in the joint operation according to the Company's share;
(5) Recognize expenses solely incurred, and those incurred for joint operation according to the Company's
share.
Refer to the Note "long-term equity investment" for the accounting policy of the Company for investments
in joint venture.
Cash of the Company refers to cash on hand and deposits that can be used for payment at any time; cash
equivalents refer to the short-term (no more than three months since the date of acquisition) and highly liquid
investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk
of change in value.
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping base currency at the benchmark
exchange rate (which is generally refers to the middle rate of the current foreign exchange rate published by the
People's Bank of China, the same below) published by the People's Bank of China on the transaction date; at the
end of the period, foreign currency monetary items shall be translated at the ending spot exchange rate; non-
monetary items in foreign currency measured at historical cost shall be translated at the spot exchange rate
prevailing on the transaction date; monetary items in foreign currency and measured at the fair value shall be
translated at the spot exchange rate prevailing on the date of determining fair value. The difference arising from
translation shall be included in the construction cost of relevant fixed assets if in connection with acquisition and
construction of the fixed assets which has not yet reached its intended condition for use; shall be included in
administrative expenses if incurring during the preparation period and not in connection with acquisition and
construction of fixed assets; and shall be included in current finance costs if incurring during the production and
operation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balance sheet date;
all items of owners' equity, except for retained earnings, shall be translated at the spot exchange rate at the time
of incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rate on the date
of transaction. Differences arising from the translation of foreign currency-denominated financial statements
shall be separately presented under the owners' equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated at the spot
exchange rate on the date of incurrence of the cash flows.
Financial instruments refer to any contract that gives rise to a financial asset of a party and financial
liabilities or equity instruments of other parties.
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a party of the
financial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) The
contractual right to charge the cash flow of the financial assets is terminated; 2) The financial assets have been
transferred and the Company has transferred almost all risks and remuneration of the financial assets ownership
to the transferee; and 3) The financial assets have been transferred and the Company does neither transfer nor
retain almost all risks and remuneration of the financial assets ownership but gives up the control over the
financial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (or part
thereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize the assets
to be received and the liabilities to be assumed on the trading day, or derecognize the assets sold on the trading
day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets, the Company classified financial assets into the following categories: Financial assets
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
measured at the amortized cost, financial assets measured at fair value through other comprehensive income, and
financial assets measured at fair value through profit and loss of the current period.
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets at fair
value through profit or loss, relevant transaction expenses shall be directly included in current profit or loss; for
other categories of financial assets, relevant transaction expenses shall be included in the initial recognition
amount. For notes receivable and accounts receivable arising from sales of goods or provision of service which
do not include or consider the compositions of major assets, the Company shall take the consideration expected
to be received as the initial recognition amount.
a) Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtaining contractual cash
flow, and the characteristics of contractual cash flow of such financial assets are basically the same as basic
borrowing arrangement, namely the cash flow arising on a specific date, which are solely payments of principal
and interest on the principal amount outstanding. The Company subsequently measures such financial assets at
amortized costs by effective interest method. The gain or loss from their amortization, impairment and
derecognition shall be included in current profit or loss.
b) Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receiving contractual cash
flow as well as selling, and the characteristics of contractual cash flow of such financial assets are basically the
same as basic borrowing arrangement. Such financial assets shall be measured at fair value, with the changes
included in other comprehensive income, but the impairment loss, exchange gain or loss and interest income
calculated by effective interest method shall be included in current profit or loss. The accumulative gains or
losses which are previously included in other comprehensive income shall be transferred out from other
comprehensive income and included in current profit or loss upon derecognition.
c) Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instruments measured at
amortized cost and debt instruments at fair value through other comprehensive income as financial assets at fair
value through profit or loss. For eliminating or significantly reducing accounting mismatch upon initial
recognition, financial assets may be designated as financial assets at fair value through profit or loss. Such
financial assets shall be subsequently measured at fair value with all changes in fair value included in current
profit or loss. Only when the Company changes the business model of managing financial assets, shall relevant
financial assets being affected be reclassified.
d) Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financial assets at
fair value through other comprehensive income upon initial recognition. The Company includes relevant
dividends income in current profit or loss, with changes in fair value included in other comprehensive income.
The accumulative gains or losses which are previously included in other comprehensive income shall be
transferred from other comprehensive income to retained earnings instead of current profit or loss upon
derecognition of such financial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownership to the
transferee, the financial assets shall be derecognized; if the Company retains almost all risks and remuneration of
the financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financial assets
ownership but gives up the control over the financial assets, such financial assets shall be derecognized and the
rights or obligations arising or retained during the transfer shall be separately recognized as assets or liabilities; if
control over the financial assets is retained, relevant financial assets shall be continuously recognized according
to the extent of involving in the financial assets transferred and relevant liabilities shall be recognized
accordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost and financial
liabilities at fair value through profit or loss upon initial recognition.
Any financial liability meeting any of the following conditions can be designated upon initial measurement
as the financial liabilities at fair value through profit or loss: a) This designation can eliminate or significantly
reduce accounting mismatch; b) According to the risk management or investment strategy of the Company as
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
stated in formal written document, the portfolio of financial liabilities or the portfolio of financial assets and
financial liabilities is managed and evaluated on the basis of fair value, and reported to the key management on
the basis of this inside the Company; c) This financial liability contains embedded derivative to be separately
split.
The Company shall determine classification of the financial liabilities upon initial recognition. For
financial liabilities at fair value through profit or loss, relevant transaction expenses shall be directly included in
current profit or loss; relevant transaction expenses of financial liabilities measured at amortized cost shall be
included in the initial recognition amount.
a) Financial liabilities measured at amortized cost: The Company subsequently measures such financial
liabilities at amortized costs by effective interest method. The gain or loss from derecognition or amortization
shall be included in current profit/loss.
b) Financial liabilities at fair value through profit or loss: Including held-for-trading financial liabilities
(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value
through profit or loss upon initial recognition.
Held-for-trading financial liabilities (including derivative instruments belonging to financial liabilities)
shall be subsequently measured at fair value (except for those concerning hedge accounting) with changes in fair
value included in current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fair value
arising from change of the credit risk of the Company shall be included in other comprehensive income;
accumulative gain or loss previously included in other comprehensive income shall be transferred from other
comprehensive income to retained earnings. Other changes in fair value shall be included in current profit or loss.
If previous accounting treatment may cause or expand the accounting mismatch in profit or loss, all gains or
losses of such financial liabilities (including the amount affected by change in credit risk of the Company) shall
be included in current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilities shall
be presented as net amount after offset in the balance sheet: The Company has the legal right to offset the
recognized amount and may exercise such legal right currently; the Company plans to settle with net amount or
realize the financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation in the
active market. For financial instruments without active market, the fair value shall be determined by valuation
technique. The Company shall adopt the valuation technique which is applicable in current situation and
supported by sufficient available data and other information for valuation. The Company shall choose inputs
which are consistent with the characteristics of assets or liabilities considered by the market participant in the
transaction of relevant assets and liabilities, and give priority to relevant observable inputs. If it is impossible or
impractical to obtain relevant observable inputs, the Company may use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortized cost,
investments in debt instruments at fair value through other comprehensive income, contract asset, lease
receivables, loan commitment and financial guarantee contracts based on the expected credit loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contract cash flows discounted by the Company at
the original effective interest rate and receivable according to the contract and all expected cash flows received,
namely the present value of all cash shortage. Among which, the financial assets purchased or originated that
have suffered from credit impairment shall be discounted at the effective interest rate of the financial assets after
credit adjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during the expected
lifetime of financial instruments due to defaults.
expected lifetime of the financial instrument is less than 12 months, the expected lifetime) after the balance sheet
date due to possible defaults of financial instruments and is an integral part of the lifetime expected credit loss.
On the balance sheet date, the Company measured the expected credit loss of financial instruments at
different stages, respectively. If the credit risk of a financial instrument has not increased significantly since the
initial recognition, the financial instrument is in Stage 1, and the Company measures the provisions for loss
according to the 12-month expected credit loss; if the credit risk of a financial instrument has increased
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
significantly but the credit impairment has not yet occurred since the initial recognition, the financial instrument
is in Stage 2, and the Company measures the provisions for loss according to the lifetime expected credit losses;
if the financial instrument has suffered credit impairment since the initial recognition, it is in Stage 3, and the
Company measures the provisions for loss according to the lifetime expected credit loss.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly since the initial recognition, and the Company measures the provisions
for loss according to the 12-month expected credit loss.
For financial instruments with low credit risk in Stage 1 and Stage 2, the Company shall calculate the
interest income according to the carrying amount and effective interest rate before deducting the provisions for
impairment. For financial instruments in Stage 3, the Company shall calculate the interest income according to
the amortized cost and effective interest rate of the carrying amount after withdrawing the provisions for
impairment.
For notes receivable and accounts receivable, regardless of whether there is major financing, the Company
shall always consider all reasonable and sound information, including prospective information, to estimate
expected credit loss of the above accounts receivable individually or in combination and adopt the simplified
model of expected credit loss. The Company shall always measure the provisions for loss according to the
lifetime expected credit loss.
a) At the end of the Reporting Period, if there is objective evidence indicating that impairment has occurred
in an account receivable, impairment test shall be carried out separately on it, such as accounts receivable in
dispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is
likely to fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debt
provisions shall be made based on the balance between the present value of future cash flows and its carrying
value.
b) If there is no objective evidence indicating that impairment or the credit loss of a single financial asset
cannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups by
characteristics of credit risk. The expected credit loss shall be calculated based on the combinations. Basis for
determining the combinations is as below:
Item Determination Basis
Bank acceptance bill group Bank acceptance bills
Letter of credit group Letters of credit
Commercial acceptance bills group Commercial acceptance bills
Accounts receivable group Receivables from related parties
Accounts receivable group External customer
Other receivables group Receivables from and payables to related parties
Other receivables group Cash float, deposits and other receivables with low credit risk
Other receivables group Other amounts
For accounts receivable divided into risk groups, the Company, with reference to historical experience in
credit loss and based on current situation and forecast of future economic situation, shall prepare a comparison
table between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expected
credit losses. For other groups, the Company, with reference to historical experience in credit loss and based on
current situation and forecast of future economic situation, shall calculate the expected credit losses according to
the exposure at default and the 12-month or lifetime expected credit loss rate.
For debt investment and other debt investments, the Company shall calculate the expected credit loss
according to the nature of investment, types of counterparty and risk exposure, exposure at default and the 12-
month or lifetime expected credit loss rate.
The Company shall include the provision or reversal for loss made or included in current profit or loss. For
investment in debts instruments at fair value through other comprehensive income, the Company shall adjust
other comprehensive income when the impairment loss or gain is included in current profit or loss; for financial
assets measured at amortized cost, the provision for loss shall offset the carrying value of such financial assets.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finished products,
goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing Baijiu are measured at actual cost and priced by
weighted average method when sent out; paper, printing ink, and auxiliary materials for producing printed
matters are measured at planned cost when purchased and sent out, with the difference between actual cost and
planned cost included in ―materials cost difference‖. The difference to be amortized by the materials sent out
shall be calculated by materials cost difference by category at the end of the month, so as to adjust cost of the
materials sent out into actual cost; goods in process, self-manufactured semi-finished products, and finished
products are measured at actual cost and priced by weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision of inventory falling
price reserves
On the balance sheet date, the inventories shall be measured at the lower of cost and net realizable value. If
cost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shall
be made and included in current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion, estimated
selling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidence obtained and
after taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheet
events. Materials held for use in the production of inventories are measured at cost if the net realizable value of
the finished products in which they will be incorporated is higher than their cost; decline in the price of materials
indicates that the cost of the finished products exceeds their net realizable value, the materials are measured at
net realizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on the
contract price. If the quantities held by the Company is higher than the quantities of inventories specified in sales
contracts, the net realizable value of the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory is lower than
the cost.
future.
of the product.
and the market price of the raw material is lower than the book cost.
change of market demands due to change of consumer preference.
The Company shall usually determine the falling price reserves of inventories on an item-by-item basis.
For inventories in large amount and low unit price, provision for inventory falling price reserves may be made by
category of the inventories. For item of inventories relating to a product line that is produced and marketed in the
same geographical area, have the same or similar end uses or purposes, and cannot be practically measured
separately from other items, provision for inventory falling price reserves may be made on an aggregate basis.
The Company shall determine the net realizable value of inventories on the balance sheet date. When
factors causing written-down of the inventory value disappear, the amount written down shall be recovered and
will be reversed from the provided inventory falling price reserves. The amount reversed will be included in
current profit or loss.
(4) Inventory system of inventories
The perpetual inventory system is adopted.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
Under the contract between the Company and the customer, the Company shall be entitled to receive the
contract price for the goods transferred to the customer and for the related services provided, while at the same
time assuming the performance obligation to transfer the goods or services to the customer. When the customer
has actually paid the contract consideration or the enterprise has transferred goods or services to the customer
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
before such consideration is due and payable, the right to receive the consideration for the transferred goods or
services should be presented as a contract asset and recognized as an accounts receivable when the unconditional
right to receive is obtained; conversely, the Company's obligation to transfer goods or services to the customer
for the consideration received or receivable from the customer should be presented as a contract liability. Any
contract liability shall be recognised as revenue when the Company fulfils its obligation to transfer goods or
provide services to the customer. The Company presents contract asset and contract liability under the same
contract on a net basis.
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet both of the following conditions as
assets held for sale: 1) Assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions; 2) sales are highly likely to occur, that is,
the Company has already made a resolution on a sale plan and obtained a certain purchase commitment, and the
sale is expected to be completed within one year.
Non-current assets or disposal groups specifically obtained by the Company for resale shall be classified
by the Company as held-for-sale on the acquisition date when they meet the stipulated conditions of ―expected to
be sold within one year‖ on the acquisition date, and may well satisfy the category of held-for-sale within a short
time (which is usually three months).
If the transaction between non-related parties fails to be completed within one year due to one of the
following circumstances which is over the control of the Company, and the Company still promises to sell the
non-current assets or disposal groups, the Company should continue to classify the non-current assets or disposal
groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions that lead to extension of the
sale. The Company has already acted on these conditions in a timely manner and it is expected to be able to
successfully deal with the conditions that led to the extension of the sale within one year after the conditions
were set; 2) due to unusual circumstances, the non-current assets or disposal groups held-for-sale failed to be
sold within one year. In the first year, the Company has taken necessary measures for these new conditions and
the assets or disposal groups meet the conditions of held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
When the Company initially measures or remeasures non-current assets or disposal groups held for sale on
the balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs,
the carrying value will be written down to the net amount of fair value minus the sale costs. The amount written
down will be recognized as asset impairment loss and included in current profit and loss, and provision for
impairment of assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall be
measured at the lower of net amount of initial measurement amount minus sales cost and that of fair value minus
selling expenses, assuming they were not classified as held-for-sale during initial measurement. Except for non-
current assets or disposal groups acquired from business combination, the difference arising from taking the net
amount of fair value minus sales cost as initial measurement amount of the non-current assets or disposal groups
shall be included in current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the carrying value
of goodwill of the disposal groups shall be offset first, and then the carrying value of various non-current assets
in the disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation
or amortization. Interest and other expenses of liabilities in the disposal group held for sale shall still be
recognized.
If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheet
date minus the sale costs increases, the previous written-down amount will be restored and reversed from the
asset impairment loss recognized after the assets are classified as held-for-sale. The reversed amount shall be
included in the current profit or loss. The asset impairment loss recognized before being classified as held-for-
sale shall not be reversed.
If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet date
minus the sale costs increases, the previous written-down amount will be restored and reversed from the asset
impairment loss recognized for non-current assets after the assets are classified as held-for-sale. The reversed
amount shall be included in the current profit or loss. The carrying value of goodwill which had been written
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
down and the asset impairment loss recognized before non-current assets being classified as held-for-sale shall
not be reversed.
For the recognized amount of asset impairment loss of the disposal groups held for sale which is reserved
subsequently, the carrying value shall be increased according to the proportion of carrying value of various non-
current assets (except for goodwill) in the disposal groups.
When a non-current assets or disposal group ceases to be classified as held-for-sale or a non-current asset
is removed from the disposal group held for sale due to failure in meeting the classification conditions for the
category of held-for-sale, it will be measured by one of the followings, whichever is lower: a) Amount after
adjusting the carrying value before being classified as held for sale according to the depreciation, amortization or
impairment that would have been recognized under the assumption that it was not classified as held for sale; b)
the recoverable amount.
The gain or loss not yet recognized shall be included in current profit or loss when recognizing the non-
current assets or disposal groups held for sale.
(1) Determination of initial investment cost
a) Long-term equity investment from business combination
enterprises under the common control, the share of the carrying value of the owners' equity of the combined
party in the ultimate controller's consolidated financial statements on the date of combination shall be taken as
the initial investment cost of the long-term equity investment. The share premium of the capital reserve shall be
adjusted with the difference between the initial investment cost of the long-term equity investment and the
carrying value of the consideration paid. If the share premium of the capital reserve is insufficient for writing
down, the retained earnings shall be adjusted.
enterprises not under the common control, initial investment cost of the investment shall be the fair value of the
assets paid, liabilities incurred or assumed and equity securities issued by the Company in exchange for control
over the acquiree on the date of acquisition. For long-term equity investment in subsidiaries acquired through
business combination involving enterprises not under the common control implemented by multiple transactions,
the initial investment cost shall be the sum of the carrying value of equity investment held by the Company in
the acquiree before the date of acquisition and the cost of new investment on the date of acquisition.
b) For long-term equity investment acquired by cash payment, the initial investment cost shall be the
purchase price actually paid. The initial investment cost includes fees, taxes and other necessary expenses
directly related to acquire the long-term equity investment.
c) For long-term equity investment acquired by issuing equity securities, the initial investment cost of long-
term equity investment obtained by issuing of equity securities shall be the fair value of issuing the equity
securities.
d) The initial investment cost of long-term equity investment obtained by the exchange of non-monetary
assets shall be the fair value of the assets surrendered and relevant taxes payable if the exchange of non-
monetary assets has commercial nature and the fair value of the assets received or surrendered may be reliably
measured, unless there is conclusive evidence providing that fair value of the assets received is more reliable.
For exchange of non-monetary assets not meeting the above conditions, the initial investment cost shall be the
carrying value of the assets surrendered and relevant taxes payable.
e) The initial investment cost of a long-term equity investment obtained by debt restructuring shall be
recognized at the fair value.
(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equity
investment calculated by cost method shall be priced at the initial investment cost. The cost of long-term equity
investment shall be adjusted when the investment is added or recovered. The cash dividends or profits declared
to be distributed by the invested company should be recognized as current return on investment.
The long-term equity investment in associates and joint ventures is accounted by the equity method.
If the initial cost of long-term equity investment is greater than the fair value of identifiable net assets of
the invested company gained from the investment, the initial cost of long-term equity investment shall not be
adjusted. If the initial investment cost is smaller than the fair value of identifiable net assets of the invested
company gained from the investment, the difference shall be included in current profit or loss, and the cost of
long-term equity investments shall be adjusted.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
After the Company obtains a long-term equity investment, it shall, in accordance with the share of the net
profits and other comprehensive income of the invested company to be enjoyed or shared, recognize the return
on investment and other comprehensive income respectively, and adjust the carrying value of the long-term
equity investment. The Company shall, in accordance with the share in the profits or cash dividends declared and
distributed by the invested company, decrease the carrying value of the long-term equity investment accordingly.
As for other changes in owners' equity except for the net profit and loss, other comprehensive income and
profit distribution of the invested company, the Company shall adjust the carrying value of the long-term equity
investment and include it into the owners' equity. When the share of the net profit or loss of the invested
company is recognized, the net profit of the invested company shall be adjusted and recognized according to the
fair value of the net identifiable assets of the invested company when the investment is made.
For the transactions between the Company and associates and joint ventures, the unrealized gains and
losses of the internal transactions shall be offset by the proportion attributable to the Company, and the return on
investment is recognized accordingly. Unrecorded internal transaction losses incurred between the Company and
the invested company shall be recognized in full if they fell under asset impairment loss.
The Company shall recognize the net losses of the invested company until the carrying value of the long-
term equity investment and other long-term rights and interests which substantially form the net investment
made to the invested company are reduced to zero, unless the Company has the obligation to undertake extra
losses. If the invested company realizes a net profit in the subsequent period, the Company shall restore the
recognition of its share in profits after its share in profits offsets the share in unrecognized losses.
If the accounting policy and accounting period adopted by the invested company are inconsistent with
those adopted by the Company, financial statements of the invested company shall be adjusted and return on
investment and other comprehensive income shall be recognized according to the accounting policy and
accounting period of the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the carrying value and the actual price
at which the investment is obtained shall be included in current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investment originally
included in other comprehensive income shall be accounted for on the same basis as the invested company's
direct disposal of the relevant assets or liabilities when disposed. The owners' equity recognized as a result of
changes in other owners' equity other than net profit or loss, other comprehensive income, and profit distribution
of the invested company is carried forward proportionally into current profit or loss, except for other
comprehensive income arising from changes due to remeasurement of net liabilities or net assets of the defined
benefit plan.
In case of loss of common control or significant influence on the invested company due to disposal of part
of the equity investments, residual equity will be accounted by the recognition and measurement criterion for
financial instruments. The difference between the fair value on the date of losing common control or significant
influence and the carrying value shall be included in current profit or loss. Other comprehensive income
recognized due to accounting of the original equity investment by equity method shall be accounted for on the
same basis as the invested company’s direct disposal of the relevant assets or liabilities when stopping using
equity method. Owner’s equity recognized due to other changes in other owners’ equity other than the net profit
or loss, other comprehensive income and profit distribution of the invested company will all be carried forward
into current profit or loss when stop using equity method.
If the Company disposes of part of the equity investment and loses control over the invested company, and
if the remaining equity after disposal can implement joint control or exert significant influence on the invested
company, it shall be accounted for using the equity method when the individual financial statements are prepared,
and the equity shall be adjusted as if the remaining equity had been accounted for using the equity method since
acquired; if the remaining equity after disposal cannot implement joint control or exert significant influence on
the invested company, it shall be subject to accounting treatment in accordance with the relevant provisions of
the criteria for recognition and measurement of financial instruments. The difference between the fair value and
the carrying value on the date of losing control shall be included in the current profit or loss.
If the disposed equities are acquired by the business combination due to the reasons such as additional
investment, the remaining equities after the disposal shall be calculated based on the cost method or equity
method in preparing the individual financial statements, and other comprehensive income and other owners'
equity recognized because of the equity method adopted for the calculation of the equity investment held prior to
the date of acquisition are carried forward in proportion; if the remaining equities after the disposal shall be
changed to be accounted in accordance with the recognition and measurement criterion for financial instruments,
other comprehensive income and other owners' equity shall be carried forward in full.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(4) Determination basis of common control and significant influence on the invested company
Common control means common control over an arrangement according to relevant provisions, and the
decision-making for relevant activities of such arrangement needs unanimous agreement of all participants
sharing the control.
Significant influence means having the power to participate in decision-making of the financial and
operating policies of the invested company, but not the power to control or jointly control the formulation of
these policies together with other parties.
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services, renting or
operation and management and with service life of more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and other
expenditures incurred before and for making the fixed assets reach its intended condition for use directly
attributable to such assets.
Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and for
making the fixed assets reach its intended condition for use.
Book value of fixed assets invested by investors shall be the value recognized by the investors.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting the
recognition conditions for fixed assets, and shall be included in current profit or loss if not meeting the
recognition conditions for fixed assets.
(2) Depreciation method
Category Depreciation Method Depreciation Life Residual Rate Yearly Depreciation Rate
Tenements and Buildings Straight-line method 25-30 years 3%-5% 3.17-3.88%
General equipment Straight-line method 10-12 years 3%-5% 7.92-9.70%
Specialised equipment Straight-line method eight years 3%-5% 11.18-12.13%
Transport equipment Straight-line method six years 3%-5% 15.83-16.17%
Other equipment Straight-line method six years 3%-5% 15.83-16.17%
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line
method (the straight-line depreciation) from the second month after they reach their intended serviceable
condition.
(1) For construction in progress, book value of the fixed assets shall be the necessary expenditures incurred
before the assets reach its intended condition for use.
(2) Cost of fixed assets that have reached the intended condition for use but for which the completion
settlement has not been handled shall be recognized at the estimated value, and depreciation shall be provided.
Adjustment shall be made to the originally and provisionally estimated value based on the actual cost after the
completion settlement is handled, but depreciation already provided shall not be adjusted.
(1) Recognition principles of borrowing costs:
Interest of borrowings, and amortization of discount or premium attributable to the acquisition and
construction or production of fixed assets, investment properties and inventories meeting the conditions of
capitalization period and capitalization amount should be capitalized and included in the cost of such assets;
other interest of borrowings, and amortization of discounts or premiums shall be included in expenses in current
period. The exchange differences incurred from special foreign currency borrowings for acquisition and
construction or production of fixed assets and investment properties shall be capitalized and included in the cost
of such assets if it is within the capitalization period. Auxiliary expenses for special borrowings, if incurred
before the fixed assets acquired or constructed reach the intended condition for use, shall be capitalized at the
time of occurrence; other auxiliary expenses shall be recognized as expenses in current period and included in
current profit or loss.
(2) Capitalization period of borrowing costs:
a) Commencement of capitalization: Capitalization of borrowing interest, amortization of discount or
premium, and exchange differences shall be commenced when all the following conditions are met.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
have already begun.
b) Suspension of capitalisation: Where the acquisition and construction of a fixed asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs
shall be suspended and the borrowing costs shall be recognized as current expenses until recommencement of the
acquisition and construction of the asset.
c) Termination of capitalization: When the fixed assets acquired and constructed reach the intended
condition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be the amount of
interest expenses actually incurred in the current period less the interest income of the borrowings unused and
deposited in bank or the amount of return on investment from temporary investment. Interest of general
borrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements of
the excess of accumulated asset disbursements over the special borrowings by the capitalization rate of used
general borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.
Refer to "Part X, V. Significant Accounting Policies and Accounting Estimates, 28. Lease".
(1) Valuation method, service life and impairment test
a) Valuation and amortization of intangible assets: Externally acquired intangible assets shall be measured
at the actual cost when acquired and averagely amortized during the expected service life since the month when
the intangible assets is acquired; book value of the self-developed intangible assets shall be the sum of the
expenditures during the research and development stage of internal research and development projects of the
Company which are eligible for capitalization and the expenditures incurred before reaching the intended
condition for use, and be averagely amortized over the expected service life since the month in which the
intangible asset is ready for use.
b) Service life: Service life of intangible assets shall be analyzed and determined when acquired. Intangible
assets with limited service life shall be amortized over period during which they may bring economic interests; if
the period during which the intangible assets may bring economic benefit to the enterprise is unforeseeable, such
intangible assets shall be considered as intangible assets with uncertain service life and shall not be amortized.
c) Impairment test: At the end of each year, the Company shall recheck the service life and amortization
method of the intangible assets. Intangible assets with uncertain service life shall be subject to impairment test
every year whether there is any indication of impairment.
(2) Accounting policy for internal research and development costs
The expenditures of the Company’s internal research and development projects are divided into research
phase expenditures and development phase expenditures.
Research phase expenditures shall be included in current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets only when meeting
all of the following conditions, otherwise shall be included in current profit or loss when incurred:
a) It is technically feasible to complete this intangible assets so that it can be used or sold.
b) The Company has the intention to complete the intangible assets and use or sell them.
c) The way in which intangible assets generate economic benefits, including the ability to prove that the
products produced using the intangible assets exist in the market or the intangible assets themselves exist in the
market, and the intangible assets will be used internally, can prove their usefulness; sufficient technical, financial
resources and other resources support to complete the development of the intangible asset and the ability to use
or sell the intangible asset; the expenditure attributable to the development phase of the intangible asset can be
reliably measured.
For the long-term equity investments, investment properties, fixed assets, construction in progress,
intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, an
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
impairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less than
its carrying value according to the test, provision for impairment will be made at the difference and included in
impairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting the
disposal expenses and the present value of estimated future cash flow of the asset. The provision for impairment
of assets is calculated and made on an individual basis. If it is difficult for the Company to estimate the
recoverable amount of the individual asset, the recoverable amount of an asset group, to which the said asset
belongs, shall be determined. Asset group is the smallest asset group that can independently generate cash
inflows.
For goodwill, impairment test shall be conducted at least at the end of each year. Impairment test shall be
carried out in combination with the relevant asset group or combination of asset group.
The carrying value of goodwill caused by business combination is amortized to relevant asset groups with
a reasonable method from the date of acquisition when the Company carries out impairment test on goodwill; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When
the carrying value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall
be evenly amortized according to the proportion of the fair value of each assets group or combination of assets
groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value
cannot be reliably measured, it should be amortized according to the proportion of the carrying value of each
asset group or combination of assets groups in the total carrying value of assets groups or combinations of assets
groups.
When making an impairment test on the relevant assets groups or combination of assets groups containing
goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the
Company shall first conduct an impairment test on the assets groups or combinations of assets groups not
containing goodwill, calculate the recoverable amount and compare it with relevant carrying value to recognize
the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or
combinations of assets groups containing goodwill, and compare the carrying value of these assets groups or
combinations of assets groups (including the carrying value of the goodwill apportioned thereto) with the
recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets
groups is lower than the carrying value thereof, the Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.
Long-term prepaid expense is recorded according to the actual amount incurred and amortized over the
benefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expense
item cannot benefit a later accounting period, the amortized value of the item that has not been amortized shall
be transferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement of
fixed assets under operating lease shall be amortized averagely within the benefit period.
(1) Accounting treatment of short-term remuneration
Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within
During the accounting period when employees serve the Company, the actual short-term remuneration is
recognized as liabilities and included in current profit or loss or costs of relevant assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by the enterprise
after retirement from or termination of the labor relation with the enterprise in exchange for the service provided
by the employee. Post-employment benefits are divided into two types: Defined contribution plans and defined
benefit plans.
a) Defined contribution plan: Contribution which shall be made by the Company separately on the balance
sheet date in exchange for the service provided by the employee during the accounting period shall be
recognized as payroll liabilities and included in current profit or loss or relevant asset cost.
b) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method, the
benefit obligations arising from the defined benefit plan shall be attributable to the period in which the employee
provides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement of
the net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income and
shall not be reversed to profit or loss in subsequent accounting periods.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(3) Accounting treatment of dismissal benefits
Dismissal benefits refer to the compensation paid to the employee by the enterprise for termination of the
labor contract with the employee prior to expiration, or encouraging the employee to accept downsizing
voluntarily.
If the enterprise provides dismissal benefits, payroll liabilities arising from dismissal benefits shall be
recognized and included in current profit or loss on the earlier date of:
a) The date when the enterprise could not unilaterally withdraw the dismissal benefits which offered by the
plan or layoff proposal due to termination of the labor relation.
b) The date when the enterprise recognizes the cost or expense related to the reorganization related to
payment of the dismissal benefits.
(4) Accounting treatment of the other long-term employee welfare
Other long-term employee benefits refer to all payrolls except for short-term remuneration, post-
employment benefits, and dismissal benefits, including long-term paid absences, long-term disability benefits,
long-term profit sharing plan, etc.
The other long-term employee benefits provided by the enterprise shall be recognized and measured as net
liability or net asset of other long-term employee benefits according to relevant provisions of the defined benefit
plan, except for those meetings the conditions of defined contribution plan.
Refer to "Part X, V. Significant Accounting Policies and Accounting Estimates, 28. Lease".
(1) Recognition criteria for provisions
When obligations related to contingencies meet the following conditions, the Company shall recognize
them as provisions:
a) The obligation is the current obligation assumed by the Company.
b) The performance of this obligation may result in the outflow of economic benefits.
c) The amount of this obligation can be reliably measured.
(2) Measurement method of provisions
Considering the risks, uncertainties, and time value of money related to contingencies, the provisions shall
be initially measured at the best estimate of the required expenditure for the performance of current obligation. If
the time value of money is significant, the best estimate shall be determined after discounting relevant future
cash outflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjust
the carrying value to reflect current best estimate.
Accounting policy for recognition and measurement of revenue
(1) Recognition principles of revenues
Revenue is the total inflow of economic benefits arising from the Company's ordinary activities that would
result in an increase in shareholders' equity and are unrelated to capital contributions by shareholders.
The Company recognizes revenue when it has fulfilled its performance obligations under the contract, that
is, when the customer obtains control of the relevant goods. Obtaining control over related goods means being
able to dominate the use of the goods and obtain almost all economic benefits from them.
If the contract contains two or more performance obligations, the Company will allocate the transaction
price to each individual performance obligation according to the relative proportion of the individual selling
price of the goods or services promised under each individual performance obligation on the contract
commencement date, and measure the revenue according to the transaction price allocated to each individual
performance obligation.
Transaction price is the amount of consideration that the Company is expected to be received due to the
transfer of goods or services to customers, excluding the amount collected on behalf of third parties. In
determining the transaction price of a contract, if variable consideration exists, the Company will determine the
best estimate of the variable consideration based on the expected or most likely amount and include in the
transaction price in an amount not exceeding the amount that the accumulated recognized revenue will most
likely not be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financing
component in the contract, the Company will determine the transaction price according to the amount payable by
the customer in cash when obtaining the control right of the goods. The difference between the transaction price
and the contract consideration will be amortized by the effective interest rate method during the contract period.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
If the interval between the transfer of control right and the payment price by the customer does not exceed one
year, the Company will not consider the financing component.
Performance obligations are fulfilled within a certain period if any of the following conditions is met;
otherwise, performance obligations are fulfilled at a certain point in time:
a) The customer acquires and consumes the economic benefits of the Company's performance at the same
time as the Company's performance;
b) The customer controls the goods under construction during the performance of the Company;
c) The goods produced by the Company during the performance of the contract have irreplaceable uses,
and the Company has the right to collect money for the accumulated performance that has been completed so far
during the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenue according
to the performance progress within that period, except that the performance progress cannot be reasonably
determined. The Company determines the performance progress of the services provided according to the input
method (or output method). When the performance progress cannot be reasonably determined, if the costs
incurred by the Company are expected to be compensated, the revenue shall be recognized according to the
amount of costs incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods. When judging whether the customer has acquired
control of goods or services, the Company will consider the following indications:
a) The Company has a present right to receive payment for the goods or services, i.e. the customer has a
present obligation to pay for the goods;
b) The Company has transferred legal ownership of the goods to the customer, i.e. the customer has legal
ownership of the goods;
c) The Company has physically transferred the goods to the customer, i.e. the customer has taken physical
possession of the goods;
d) The Company has transferred to the customer the principal risks and rewards of ownership of the goods,
i.e., the customer has acquired the principal risks and rewards of ownership of the good;
e) The customer has accepted the goods.
(2) Recognition methods of revenues
a) Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goods to the
buyer according to the contract, and recognizes revenue after the buyer signs for it;
b) Recognition methods of revenues for direct sales model
receives payment or acquires the right to receive payment;
commerce platform from the consumer.
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by the Company and
used for acquisition or construction or for formation of long-term assets in other ways, including the financial
allocation for purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assets
and others.
The specific standard of the Company for classifying the government subsidies as asset-related subsidies:
government subsidies obtained by the Company and used for acquisition or construction or for formation of
long-term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Company
classifies the government subsidies as asset-related subsidies or income-related subsidies were as follows:
Whether the subsidies are used for acquisition or construction or for formation of long-term assets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Government subsidies, when
actually received, shall be recognized as deferred income and transferred equally to current profit or loss based
on the expected service life of the long-term assets when the long-term assets are available for use.
The asset-related government subsidies are recognized as deferred income, and included in current profit or
loss by stages based on the service life of the assets acquired and constructed. If the related asset is sold,
transferred, scrapped or damaged before the end of the service life, the deferred income balance not yet
distributed shall be transferred to the profits and losses of the period in which the assets are disposed.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(2) Judgment basis and accounting treatment of income-related government subsidies
Income-related government subsidies refer to all the government subsidies other than asset-related
government subsidies.
The specific standard of the Company for classifying the government subsidies as income-related subsidies:
All the government subsidies other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Government subsidies,
when actually received, shall be included in current profit or loss if used to compensate the relevant expenses or
losses of the Company in the subsequent period; included in current profit or loss directly when acquired if used
to compensate relevant expenses or losses incurred by the Company.
Income-related government subsidies used to compensate the relevant expenses or losses of the Company
in the subsequent period shall be recognized as deferred income when acquired; included in current profit or loss
in the period in which relevant expenses are recognized; those used to compensate relevant expenses or losses
incurred by the Company, shall be directly included in profit or loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be included in other incomes
or used to offset relevant costs and expenses according to the substance of the economic business. The
government subsidies irrelevant to the daily activities of the Company shall be included in non-operating
revenue.
The deferred income tax assets and deferred income tax liabilities are calculated and recognized according
to the difference (temporary difference) between the tax base and carrying value of the assets and liabilities.
Deductible losses that can be carried forward to the subsequent year to offset taxable income according to the tax
law shall be considered as temporary difference, and corresponding deferred income tax assets shall be
recognized.
For temporary differences related to the initial recognition of goodwill, corresponding deferred income tax
liabilities shall not be recognized. For the temporary differences related to the initial recognition of the assets or
liabilities incurred in the transaction not for business combination that will not affect the accounting profits and
taxable income (or deductible losses), corresponding deferred income tax assets and deferred income tax
liabilities shall not be recognized. The deferred income tax assets and deferred income tax liabilities are
measured on the balance sheet date according to the applicable tax rate in the period of expected recovery of
relevant assets or liquidation of relevant liabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which the Company may
obtain for deducting deductible temporary differences, deductible losses and tax deduction. Deferred income tax
assets and deferred income tax liabilities arising from temporary differences related to the investment in
subsidiaries and associates shall be recognized. If the time of reversal of temporary differences can be controlled
by the Company and the temporary differences are likely to not be reversed in the foreseeable future, deferred
income tax assets and liabilities shall not be recognized.
From the effectiveness date of a contract, the Company assesses whether the contract is a lease or includes
any lease. If a party to the contract transfers the right allowing the control over the use of one or more assets that
have been identified within a certain period, in exchange for a consideration, such contract is a lease or includes
a lease.
(1) Accounting treatment of the Company as the lessee
On the commencement date of the lease term, except for short-term leases and leases of low-value assets
being adopted simplified treatment, the Company recognises right-of-use assets or lease liabilities for the lease.
Right-of-use assets shall be initially measured at costs, including: a) The initial measurement amount of the
lease liabilities; b) the lease payment paid on or before the commencement date of the lease term. If there is a
lease incentive, the amount related to the lease incentive taken should be deducted; c) the initial direct cost
incurred by the lessee; d) the estimated cost that the Company will use to pull down and remove the leasehold
property, and restore the site of the leasehold property or restore the leasehold property to the state agreed in the
lease clauses (excluding the costs incurred by inventories for production).
The lease liabilities shall be initially measured at the present value of the unpaid lease payment from the
commencement date of the lease term. When calculating the present value of lease payments, the Company uses
the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,
the Company’s incremental lending rate is used as the rate of discount.
After the commencement date of the lease term, the Company subsequently measures the right-of-use
assets at cost model, and the right-of-use assets are subject to depreciation by using the straight-line method.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Meanwhile, the interest expenses of the lease liabilities in each period of the lease term are calculated, and shall
be included in the profit or loss for the current period, unless otherwise stipulated to be included in underlying
asset costs. Variable lease payments that are not covered in the measurement of the lease liabilities are included
in current profit or loss when actually incurred, unless otherwise stipulated to be included in underlying asset
costs.
For short-term leases and leases of low-value assets, the Company chooses not to recognise right-of-use
assets and lease liabilities. They are included in relevant asset cost or the profit or loss for the current period in
the straight-line method in each period of the lease term.
(2) Accounting treatment of the Company as the lessor
a) Classification of lease
The Company classifies leases into finance leases and operating leases at the inception of leases. A finance
lease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, are
substantially transferred, regardless of whether the ownership is eventually transferred or not. An operating lease
refers to all leases other than finance leases.
b) Accounting treatment of financial lease
On the commencement date of the lease term, the Company recognises the finance lease receivables for the
finance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance lease
receivables, the sum of the unsecured residual value and the present value of the lease payments receivable not
yet received on the commencement date of the lease term discounted at the interest rate implicit in lease is the
book value of the finance lease receivables. The Company calculates and recognises the interest income in each
period within the lease term at a fixed interest rate implicit in the lease. The received variable lease payments
that are not included in the measurement of the net investment in the lease are included in profit or loss for the
current period when they are actually incurred.
c) Accounting treatment of operating lease
The Company recognises the lease payments receivable of the operating lease as rental earning in each
period within the lease term on a straight-line basis or according to other systematic and reasonable methods.
The initial direct costs related to the operating lease are capitalised, amortised within the lease term on the same
basis as the recognition of rental earning, and included in profit or loss for the current period. The received
variable lease payments related to the operating lease that are not included in the lease payments receivable are
included in profit or loss for the current period when they are actually incurred.
(1) Changes to Significant Accounting Policies
? Applicable □ Not applicable
Change and reason Note
In December 2021, the Ministry of Finance issued the Interpretation No. 15 for the Accounting The implementation of
Standards for Business Enterprises, with provisions regarding "accounting treatments for the sale of the provisions had no
products or by-products produced by an enterprise before a fixed asset is ready for its intended use impact on the financial
or in the course of research and development" and "judgment on loss-making contracts‖. The statements of the
Company has implemented the aforementioned provisions since 1 January 2022. Company.
In November 2022, the Ministry of Finance issued the Interpretation No. 16 for the Accounting
Standards for Business Enterprises, with provisions regarding "accounting treatments for deferred
The implementation of
income tax related to assets and liabilities arising from a single transaction that is not exempt from
the provisions had no
initial recognition", "accounting treatments for the income tax effects of dividends on financial
impact on the financial
instruments classified as equity instruments by the issuer", and "accounting treatments for the
statements of the
modification of share-based payments settled in cash to share-based payments settled in equity". The
Company.
first provision will be implemented by the Company from 1 January 2023, while the second and
third provisions will be implemented from the date of publication.
(2) Changes to Significant Accounting Estimates
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
VI Taxes
Tax Item Tax Basis Tax Rate
VAT Taxable sales revenue
tax)
Consumption tax Taxable price or ex-factory price 10%, 20%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 25%
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Note on disclosure of taxpayer applying different corporate income tax rates:
Name of taxpayer Income tax rate
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 15%
Sichuan Yibin Plastic Packaging Materials Company Limited 15%
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. 15%
Yibin Xinxing Packaging Co., Ltd. 20%
Sichuan Jiebeike Environmental Technology Co., Ltd. 20%
Sichuan Jinwuxin Technology Co., Ltd. 20%
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. 20%
Linzhang Desheng Liquor Trade Co., Ltd. 20%
Sichuan Wuliangye Tourist Agency Co., Ltd. 20%
(1) Value added tax (VAT)
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate of
social welfare enterprise "F.Q.ZH.Z. No. 51004121049" issued by the Department of Civil Affairs of Sichuan
Province. The Company, conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VAT
Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the State
Administration of Taxation (C.SH. [2016] No. 52), enjoys the drawback policy of value-added tax. Recoverable
value-added tax of each month = Number of disabled person employed by the taxpayer in current month x
quadruple of the minimum wage of current month. The amount of value-added tax refunded in 2022 was
RMB72,322,800.00.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials Company
Limited, and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to the
Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Corporate
Income Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of the
Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission)
has been filed with the Local Taxation Bureau of Yibin for preferential corporate income tax and pays the
corporate income tax at 15%.
Yibin Xinxing Packaging Co., Ltd., Sichuan Jiebeike Environmental Technology Co., Ltd., Sichuan
Jinwuxin Technology Co., Ltd., Yibin Wuliangye Xinshengdai Liquor Co., Ltd., Linzhang Desheng Liquor
Trade Co., Ltd. and Sichuan Wuliangye Tourist Agency Co., Ltd. conform to the provisions of the Notice on
Implementing the Inclusive Tax Deduction Policy for Small and Micro Enterprises (C.SH. [2019] No. 13), and
the Announcement on Implementing the Preferential Income Tax Policies for Micro and Small Enterprises and
Individual Industrial and Commercial Households ([2021] No. 12), and the Announcement on the Further
Implementation of Preferential Income Tax Policies for Micro and Small Enterprises ([2022] No. 13) jointly
issued by the Ministry of Finance and the State Taxation Administration, which specifying that if the annual
taxable income of small low-profit enterprises is less than RMB1 million, the taxable income shall be 12.5% of
such annual taxable income and the corporate income tax rate shall be 20%; if the annual taxable income is more
than RMB1 million but less than RMB3 million, the taxable income shall be 25% of such annual taxable income
and the corporate income tax rate shall be 20%.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
VII Notes to the Consolidated Financial Statements
Unit: RMB
Item Closing balance Opening balance
Cash on hand 19,772.01 21,897.04
Bank deposits 92,144,164,939.42 82,028,143,002.95
Other monetary assets 214,242,264.36 307,791,027.75
Total 92,358,426,975.79 82,335,955,927.74
Total amount restricted in use due to being mortgaged, in
pledge, frozen, etc.
Other information:
(1) Other monetary assets included the securities trading balance of RMB3,222.19 deposited with the Yibin
Business Department of Essence Securities, the security deposits for bank acceptance notes of
RMB192,004,714.62, the Tenpay account balance of RMB21,709,551.13, and other security deposits of
RMB524,776.42.
(2) Among other monetary assets, the securities trading balance of RMB3,222.19, the security deposits for
bank acceptance notes of RMB192,004,714.62, and other security deposits of RMB524,776.42 were restricted in
use. Save as disclosed above, there were no other funds restricted in use due to being mortgaged, in pledge,
frozen, etc.; nor there were funds deposited overseas and restricted in repatriation.
A liquor/wine production enterprise should disclose in detail whether there is any special interest
arrangement where the Company and any of its stakeholders have a joint account for funds, etc.
□ Applicable ? Not applicable
(1) Notes receivable presented by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance notes 23,859,058,132.07
Letters of credit 119,918,307.60
Total 119,918,307.60 23,859,058,132.07
As a result of the decreased discount rates on the notes during the current period, the Company changed the
purpose of managing its bank acceptance notes from notes receivable with the purpose of collecting contractual
cash flows to notes receivable with the purposes of both collecting contractual cash flows when due and selling,
which were reclassified from notes receivable to financial assets at fair value through other comprehensive
income.
Unit: RMB
Closing balance Opening balance
Allowance for Allowance for
Gross amount Gross amount
doubtful account doubtful account
Category As % of Allowance Carrying amount As % of Allowance Carrying amount
the total as % of the total as % of
Amount Amount Amount Amount
gross the gross gross the gross
amount amount amount amount
Notes
receivable
for which
allowances
for doubtful
accounts
are
established
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
on an
individual
basis
Notes
receivable
for which
allowances
for doubtful
accounts 119,918,307.60 100.00% 119,918,307.60 23,859,058,132.07 100.00% 23,859,058,132.07
are
established
on a
grouping
basis
Of
which:
Bank
acceptance 23,859,058,132.07 100.00% 23,859,058,132.07
notes
Letters of
credit
Total 119,918,307.60 100.00% 119,918,307.60 23,859,058,132.07 100.00% 23,859,058,132.07
Where the allowance for any doubtful note receivable is established using the general model of expected
credit loss, please disclose allowance information as other receivables.
□ Applicable ? Not applicable
(2) Notes receivable in pledge at the end of the current period
The Company had no notes receivable pledged by the Company at the end of the period.
(3) Notes receivable endorsed or discounted by the Company at the end of the current period and not
expired yet on the balance sheet date
The Company had no notes receivable endorsed or discounted by the Company at the end of the period and
not expired yet on the balance sheet date.
(4) Notes transferred to accounts receivable by the Company at the end of the current period due to
failure of the drawer to perform
Notes transferred to accounts receivable by the Company at the end of the period due to failure of the
drawer to perform.
(5) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(1) Accounts receivable presented by category
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross amount Gross amount
account account
Category Carrying Carrying
As % of Allowanc As % of Allowanc
the total e as % of amount the total e as % of amount
Amount Amount Amount Amount
gross the gross gross the gross
amount amount amount amount
Accounts receivable for
which allowances for
doubtful accounts are 5,174,866.86 11.86% 5,174,866.86 100.00% 1,508,250.71 2.08% 1,508,250.71 100.00%
established on an
individual basis
Of which:
External
customers
Accounts receivable for
which allowances for
doubtful accounts are 38,447,767.23 88.14% 2,760,824.91 7.18% 35,686,942.32 70,910,703.98 97.92% 6,717,587.76 9.47% 64,193,116.22
established on a
grouping basis
Of which:
External
customers
Related parties 15,747,313.52 36.10% 0.00% 15,747,313.52 19,964,400.77 27.57% 19,964,400.77
Total 43,622,634.09 7,935,691.77 18.19% 35,686,942.32 72,418,954.69 100.00% 8,225,838.47 11.36% 64,193,116.22
%
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Accounts receivable for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
Closing balance
Entity Allowance for Allowance as % of the
Gross amount Reason for allowance
doubtful account gross amount
Expected to be
Qu Liang 1,411,528.44 1,411,528.44 100.00%
unrecoverable
Beijing Junhui Tianhong Trading Expected to be
Co., Ltd. unrecoverable
Expected to be
Wang Xiubing 872,596.00 872,596.00 100.00%
unrecoverable
Ningxiahong Zhongning Expected to be
Wolfberry Products Co., Ltd. unrecoverable
Expected to be
Nanxi Daliangxin Food Co., Ltd. 389,729.12 389,729.12 100.00%
unrecoverable
Hunan Liuyanghe Liquor Expected to be
Industry Co., Ltd. unrecoverable
Sichuan Debo Daily Commodity Expected to be
Co., Ltd. unrecoverable
Expected to be
Gushi County Yingjun Liquor 207,600.00 207,600.00 100.00%
unrecoverable
Total 5,174,866.86 5,174,866.86
Accounts receivable for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance for Allowance as % of the gross
Gross amount
doubtful account amount
Accounts receivable for which allowances for
doubtful accounts are established based on the 22,700,453.71 2,760,824.91 12.16%
external customer group
Accounts receivable for which allowances for
doubtful accounts are established based on the 15,747,313.52
related party group
Total 38,447,767.23 2,760,824.91
Where the allowance for any doubtful account receivable is established using the general model of expected
credit loss, please disclose allowance information as other receivables.
□ Applicable ? Not applicable
Accounts receivable presented by aging:
Unit: RMB
Aging Gross amount
Within 1 year (inclusive) 35,188,964.20
More than 3 years 8,148,052.25
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
More than 5 years 6,763,204.11
Total 43,622,634.09
(2) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
Changes in the current period
Opening
Category Recovered Written Othe Closing balance
balance Established
or reversed off rs
Accounts receivable for which
allowances for doubtful accounts
are established on an individual
basis
Accounts receivable for which
allowances for doubtful accounts
are established based on the
external customer group
Total 8,225,838.47 -284,297.70 5,849.00 7,935,691.77
(3) Accounts receivable actually written off in the current period
Unit: RMB
Item Amount written off
Beijing Feidi Jiahao Liquor Co., Ltd. 5,849.00
Total 5,849.00
(4) Top five entities with respect to accounts receivable
Unit: RMB
Closing balance of
Closing balance of As % of the closing balance of total
Entity allowances for doubtful
accounts receivable accounts receivable
accounts
Sichuan Putian Packaging
Co., Ltd.
Shanxi Pangquan Distillery
Co., Ltd.
Chengdu Huayu Glass
Manufacturing Co., Ltd.
Hebei Boqiang Plastic
Products Co., Ltd.
Yibin Guanghua Packaging
Co., Ltd.
Total 18,707,159.18 42.89%
(5) Amount of assets and liabilities formed due to the transfer of accounts receivable and continuous
involvement
At the end of the current period, the Company had no assets or liabilities formed due to the transfer of
accounts receivable and continuous involvement.
(6) Accounts receivable derecognized due to the transfer of financial assets
At the end of the current period, the Company had no accounts receivable derecognized due to the transfer
of financial assets.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Item Closing balance Opening balance
Bank acceptance notes 28,904,198,420.44 1,641,509,588.69
Total 28,904,198,420.44 1,641,509,588.69
Changes in receivables financing and in their fair value in the current period:
? Applicable □ Not applicable
The Company, based on the management purpose of notes receivable, classified notes receivable for
receiving contractual cash flows and selling as financial assets at fair value through other comprehensive income.
Where the allowance for any doubtful receivable financing is established using the general model of
expected credit loss, please disclose allowance information as other receivables.
? Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Allowa Allowa
nce for nce for
doubtf doubtf
Gross amount Gross amount
ul ul
accoun accoun
t t
All All
ow ow
Category anc anc
e Carrying amount e Carrying amount
as as
As % of As % of
A % A %
the total the total
Amount mo of Amount mo of
gross gross
unt the unt the
amount amount
gro gro
ss ss
am am
ou ou
nt nt
Receivables
financing for
which
allowances for
doubtful
accounts are
established on
an individual
basis
Receivables
financing for
which
allowances for
doubtful 28,904,198,420.44 100.00% 28,904,198,420.44 1,641,509,588.69 100.00% 1,641,509,588.69
accounts are
established on
a grouping
basis
Of which:
Bank
acceptance 28,904,198,420.44 100.00% 28,904,198,420.44 1,641,509,588.69 100.00% 1,641,509,588.69
notes
Total 28,904,198,420.44 100.00% 28,904,198,420.44 1,641,509,588.69 100.00% 1,641,509,588.69
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(2) Receivables financing in pledge at the end of the current period
Unit: RMB
Item Closing amount in pledge
Bank acceptance notes 117,021,640.00
Total 117,021,640.00
Notes: The bank acceptance pledged by the Company at the end of the current period is mainly arising from
the Company’s pledge of notes in large amount to the bank and the issuance of notes in small amount for
external payments.
(3) Receivables financing endorsed or discounted by the Company at the end of the period and not expired
yet on the balance sheet date
Unit: RMB
Amount not yet derecognized at
Item Amount derecognized at the end of the period
the end of the period
Bank acceptance notes 2,368,263,504.29
Total 2,368,263,504.29
(4) Receivables financing transferred the notes to accounts receivable by the Company at the end of the
period due to failure of the drawer to perform.
(5) The Company had no receivables financing actually written off at the end of the period.
(1) Prepayments presented by aging
Unit: RMB
Closing balance Opening balance
Aging As % of total As % of total
Amount Amount
prepayments prepayments
Within 1 year 71,127,726.38 52.31% 147,104,566.14 75.19%
More than 3 years 38,388,974.68 28.23% 37,046,449.17 18.93%
Total 135,982,868.14 195,652,974.42
Reasons for non-timely settlement of prepayments in significant amount with the aging more than one year:
Prepayments with the aging more than one year are mainly the prepayments to Yibin Guoding Gas Co., Ltd.
for the gas source as agreed.
(2) Top five entities with respect to prepayments
Unit: RMB
As % of the closing balance of
Entity Closing balance
total prepayments
Yibin Guoding Gas Co., Ltd. 28,160,000.00 20.71%
Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan 18,900,000.00 13.90%
Wankai New Materials Co., Ltd. 6,163,036.00 4.53%
Sichuan Qichen Trading Co., Ltd. 6,148,180.50 4.52%
China National Petroleum Corporation, Southwest Chemical Sales
Branch 4.04%
Total 64,860,328.70 47.70%
Unit: RMB
Item Closing balance Opening balance
Other receivables 30,901,231.69 26,288,496.24
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Total 30,901,231.69 26,288,496.24
(1) Other receivables
Unit: RMB
Nature Closing gross amount Opening gross amount
Cash float 4,232,009.46 4,850,891.36
Current account 2,980,205.78 3,783,822.76
Security deposits 26,975,912.31 18,850,679.72
Other advance money for others or
temporary payment
Total 39,282,387.96 32,949,453.15
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for doubtful 12-month Lifetime expected credit Lifetime expected credit Total
accounts expected credit loss (without credit loss (with credit
loss impairment) impairment)
Balance as at 1 January 2022 6,657,087.06 3,869.85 6,660,956.91
Balance as at 1 January 2022
was in the current period
- Transferred to Stage 2
- Transferred to Stage 3
- Transferred back to Stage 2
- Transferred back to Stage 1
Established in the current
period
Reversed in the current period
Charged off in the current
period
Written off in the current
period
Other changes
Balance as at 31 December
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
Other receivables presented by aging:
Unit: RMB
Aging Gross amount
Within 1 year (inclusive) 17,581,713.35
More than 3 years 13,318,026.68
More than 5 years 3,145,135.12
Total 39,282,387.96
Allowances for doubtful accounts in the current period:
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Changes in the current period
Category Opening balance Recover
Written Othe Closing balance
Established ed or
off rs
reversed
Other receivables for which allowances for
doubtful accounts are established on an 3,869.85 2,031.00 1,838.85
individual basis
Other receivables for which allowances for
doubtful accounts are established based on the 6,657,087.06 1,722,230.36 8,379,317.42
credit risk chacteristic group
Total 6,660,956.91 1,722,230.36 2,031.00 8,381,156.27
Unit: RMB
Item Amount written off
Zhou Zhiqiang 2,031.00
Total 2,031.00
Unit: RMB
Closing
As % of the
Nature balance of
closing balance
Entity of Closing balance Aging allowances for
of total other
account doubtful
receivables
accounts
Security Within 1year; 2-3
Yibin Zhongqi Natural Gas Co., Ltd. 8,000,000.00 20.37% 920,000.00
deposit years
Yibin Cuiping District Housing and Security
Urban-Rural Development Bureau deposit
Tempor
China National Petroleum Corporation, Within 1year; 1-2
ary 1,831,508.70 4.66% 73,552.85
Sichuan Yi Saibin Sales Branch payment years
Advanc
Chongqing Xibolesi Building e money
Engineering Co., Ltd. for
others
Cash
Xu Wenwen 1,289,963.40 Within 1year 3.28% 38,698.90
float
Total 17,792,812.42 45.29% 4,869,324.01
(1) Classification of inventory
Unit: RMB
Closing balance Opening balance
Inventory Inventory
valuation valuation
allowances or allowances or
Item impairment impairment
Gross amount Carrying amount Gross amount Carrying amount
allowances for allowances for
contract contract
performance performance
costs costs
Raw materials 707,788,815.54 5,923,783.20 701,865,032.34 775,478,393.21 6,475,077.13 769,003,316.08
Goods in
process
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Inventory of
goods
Turnover
materials
Goods issued 105,088,512.68 1,956,236.12 103,132,276.56 191,350,703.16 1,956,236.12 189,394,467.04
Homemade
semi-finished 11,388,060,199.27 150,386.01 11,387,909,813.26 10,218,594,324.45 150,386.01 10,218,443,938.44
products
Packing
materials
Manufacturing
consignment 86,136,817.83 86,136,817.83 86,246,622.66 86,246,622.66
materials
Goods in transit 31,839,562.96 31,839,562.96 31,656,238.05 31,656,238.05
Total 16,035,642,906.94 54,985,893.37 15,980,657,013.57 14,071,293,140.32 56,226,022.07 14,015,067,118.25
(2) Classification of merchandise on hand
Unit: RMB
Closing balance Opening balance
Item Valuation Valuation
Gross amount Carrying amount Gross amount Carrying amount
allowances allowances
Liquor 1,937,262,431.76 1,937,262,431.76 1,045,634,821.36 1,045,634,821.36
Plastic
products
Printing 38,532,766.99 15,558,180.76 22,974,586.23 52,359,687.34 13,613,249.08 38,746,438.26
Glass
bottles
Others 55,414,043.79 689,966.21 54,724,077.58 56,298,494.00 5,141,395.35 51,157,098.65
Total 2,498,986,318.92 30,602,282.53 2,468,384,036.39 1,609,230,590.03 31,291,117.30 1,577,939,472.73
(3) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB
Decrease in the current
Increase in the current period
period
Item Opening balance Closing balance
Reversed or
Established Others Others
charged off
Raw materials 6,475,077.13 551,293.93 5,923,783.20
Inventory of goods 31,291,117.30 5,552,799.12 6,241,633.89 30,602,282.53
Turnover materials 436,409.41 436,409.41
Packing materials 15,916,796.10 15,916,796.10
Goods issued 1,956,236.12 1,956,236.12
Semi-finished products 150,386.01 150,386.01
Total 56,226,022.07 5,552,799.12 6,792,927.82 54,985,893.37
(4) Note on closing balance of inventory containing the capitalized amount of borrowing costs
None
(5) Notes of the amount of contract performance costs amortized for the current period
None
Unit: RMB
Increase/decrease in the current period Cl
De Return on Adju Ot Im osi
Opening balance Ot Closing balance
Investee Increase in cre investment stme her Declared cash pai ng
(carrying amount) her (carrying amount)
investment ase recognized using nt to eq dividends or profit rm bal
s
in the equity method other uit ent anc
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
inv comp y all e
est rehen cha ow of
me sive ng anc im
nt inco es e pai
me rm
ent
all
ow
anc
e
I Joint ventures
II Associates
Oriental Outlook
Media Co., Ltd. 25,565,938.31 563,199.61 26,129,137.92
Sichuan Yibin
Wuliangye Group 1,865,633,396.55 87,543,010.97 23,038,080.00 1,930,138,327.52
Finance Co., Ltd.
Beijing
Zhongjiuhuicui
Education and 5,508,129.61 5,625,000.00 -486,541.11 10,646,588.50
Technology Co.,
Ltd.
Yibin Jiamei
Intelligent
Packaging Co., 14,521,189.16 4,952,281.68 19,473,470.84
Ltd.
Sub-total 1,911,228,653.63 5,625,000.00 92,571,951.15 23,038,080.00 1,986,387,524.78
Total 1,911,228,653.63 5,625,000.00 92,571,951.15 23,038,080.00 1,986,387,524.78
Other information:
(1) The Company invested in Oriental Outlook Media Co., Ltd., an associate of the Company, for
implementing the strategy of entering the media industry. The Company contributed RMB17.15 million in April
Shanghai Worldbest Co., Ltd. and Shanghai Tiancheng Chuangye Development Co., Ltd.
(2) As reviewed and approved by the 22th meeting of the 4th Board of Directors of the Company on 24
October 2012, the Company, Wuliangye Group and six of its subsidiaries, and ABC International Holdings
Limited jointly invested and established Wuliangye Group Finance. Its registered capital is RMB2 billion,
among which the Company contributed RMB720 million, taking up 36% of the registered capital.
On 23 May 2020, the 74th meeting of the 5th Board of Directors of the Company considered and approved
the capital increase of the Company to Wuliangye Group Finance based on the net asset value per share of
Wuliangye Group Finance evaluated at RMB1.3817 per share as consideration for the capital increase of
RMB734,693,877.55, of which: RMB531,731,835.82 was credited to registered capital and RMB202,962,041.73
was credited to capital reserve. In this capital increase, the related party Sichuan Yibin Wuliangye Group Co.,
Ltd. increased its capital at the same price, and the remaining shareholders of Wuliangye Group Finance did not
participate in this capital increase. After the completion of this capital increase, the registered capital of
Wuliangye Group Finance increased from RMB2 billion to RMB3,085,619,164.80, and the shareholding ratio of
the Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the Company, and
Shenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and established Yibin Jiamei Intelligent
Packaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co., Ltd. include research and
development, platemaking, printing, production and sales of packaging products. Its registered capital is RMB20
million, among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB9.8 million, taking
up 49% of the registered capital.
(4) As reviewed and approved by the 85th meeting of the 5th Board of Directors of the Company on 5
February 2021, the Company, Beijing Zhongjiuhuicui Exhibition Co., Ltd. Sichuan Wine and Tea Investment
Group Co., Ltd., Sichuan Science and Engineering Asset Management Co., Ltd., Sichuan Jingwei Education
Management Group Co., Ltd., and Yibin Vocational & Technical College Asset Operation and Management Co.,
Ltd. jointly invested and established Beijing Zhongjiuhuicui Education and Technology Co., Ltd. Its registered
capital is RMB54 million, among which the Company contributed RMB11.25 million, taking up 20.83% of the
registered capital.
Unit: RMB
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Item Closing balance Opening balance
Sichuan Chinese Liquor Jinshanjiao Brand Operation
and Development Co., Ltd.
Total 1,200,000.00 1,200,000.00
Unit: RMB
Item Closing balance Opening balance
Fixed assets 5,311,203,941.09 5,607,863,056.26
Disposal of fixed assets 1,767,504.52 2,283,944.11
Total 5,312,971,445.61 5,610,147,000.37
(1) Information on fixed assets
Unit: RMB
Buildings and Specialised Transport
Item General equipment Other equipment Total
constructions equipment equipment
I Gross amount:
balance
the current period
(1)
Acquisition
(2)
Transferred from
construction in
progress
(3) Increase
from business
combination
the current period
(1) Disposed
or scrapped
(2) Donation
(3) Others 59,752.65 11,365,336.00 11,425,088.65
balance
II Accumulated
depreciation
balance
the current period
(1)
Provisions
the current period
(1) Disposed
or scrapped
(2) Donation
(3) Others 11,195.30 11,021,543.51 11,032,738.81
balance
III Impairment
allowances
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
balance
the current period
(1)
Provisions
the current period
(1) Disposed
or scrapped
balance
IV Carrying
amount
carrying amount
carrying amount
(2) Fixed assets that are temporarily idle
The Company has no major fixed assets that are temporarily idle.
(3) Fixed assets leased out under operating leases
Unit: RMB
Item Closing carrying amount
Buildings and constructions 109,486,889.71
Total 109,486,889.71
(4) Fixed assets without certificate of title
Unit: RMB
Item Carrying amount Reason for not obtaining certificate of title
The certificate of title has not been obtained due to historical reasons, to which
Buildings and
constructions certificate of title gradually.
Buildings and
constructions
Total 803,751,444.28
Other information:
According to the Interim Regulation on Real Estate Registration of Sichuan Province 2016, the property
ownership certificate and the land use certificate are integrated into the real estate ownership certificate. The
Company is sorting out relevant assets and handling with the certificate of title of relevant assets.
(5) Disposal of fixed assets
Unit: RMB
Item Closing balance Opening balance
Equipment 1,767,504.52 2,283,944.11
Total 1,767,504.52 2,283,944.11
Unit: RMB
Item Closing balance Opening balance
Construction in progress 3,770,609,910.77 2,643,541,772.83
Project goods and materials 2,546,073.18 2,546,073.18
Total 3,773,155,983.95 2,646,087,846.01
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Project Impairment Impairment
Gross amount Carrying amount Gross amount Carrying amount
allowance allowance
The liquor packaging and integrated smart storage-and-
delivery project
Baijiu Cellar Renovation Project 803,231,249.04 803,231,249.04 561,927,859.73 561,927,859.73
I)
Hongba New Park Supporting Facilities Construction
Project
Brewing Special Grain Process Bin & Milling
Automation Renovation Project
Marketing Centre Construction Project 80,451,935.66 80,451,935.66 6,607,740.78 6,607,740.78
Pipe Network Reconstruction Project of Jiangbei Park 38,861,543.75 38,861,543.75 37,438,811.11 37,438,811.11
Phase II of 90-Thousand-Ton Pottery Jar Aging Spirit
Room Technical innovation Project (Phase VI)
Anlequan Scenic Area Upgrade Emergency Project 32,447,494.28 32,447,494.28 29,657,494.28 29,657,494.28
Pilot Project for the Expansion of the Research and
Application of Traditional Solid Baijiu Production
Responding to the Restriction of High temperature in Hot
Season
Factory Buildings and Other Buildings Renovation
Project of the Company (Phase II)
High-end Intelligent Oxyfuel Kiln (8#) Crystal Glass
Bottles Demonstration Production Line Renovation 17,444,335.98 17,444,335.98
Project
Coal-to-Gas Energy Conservation and Emission
Reduction Project (Phase III)
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Renovation Project
New Finished Product Warehouse Construction Project 14,051,582.78 14,051,582.78
Wuliangye Distillery Main Water Pipe Renovation
Project
Project of the Conversion of No. 1 Natural Gas Kiln to a
Fully Electric Fusion Kiln Production Line
Installation of online monitoring equipment in the gas
boiler room of Workshop 510
Wastewater Treatment Capacity Upgrade Project 10,078,673.88 10,078,673.88 797,118.40 797,118.40
Emergent Maintenance and Rectification of Ageing
Group 521-2 (Sixty–Thousand-Tons) Wine Cellar and 9,290,000.00 9,290,000.00 13,790,000.00 13,790,000.00
Adjacent Accommodation
Miscellaneous works 420,723,131.19 2,400,005.55 418,323,125.64 364,738,141.82 2,400,005.55 362,338,136.27
Total 3,773,009,916.32 2,400,005.55 3,770,609,910.77 2,645,941,778.38 2,400,005.55 2,643,541,772.83
(2) Changes in important construction in progress in the current period
Unit: RMB
Tr
an
sfe Cu
Inter
rre m Of
est
d ul which
capit
to Cumulat ati :
aliza
fix ive ve Capita
Other tion
ed project ca lized
Increase in the decreases in Project rate Funding
Project Budget Opening balance ass Closing balance investm pit interes
current period the current progress for source
ets ent as % ali t in
period the
in of the ze the
curr
the budget d curren
ent
cur int t
peri
ren er period
od
t est
per
iod
The liquor packaging and Owned
integrated smart storage- 8,596,655,000.00 653,863,297.65 424,684,284.29 1,078,547,581.94 12.55% raised
te)
and-delivery project funds
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Owned
and
Baijiu Cellar Renovation
Project funds and
subsidies
Jar Aging Spirit Room 857,070,000.00 551,044,953.58 15,169,220.14 566,214,173.72 66.08% 99% funds and
(Phase I) subsidies
Hongba New Park
Owned
Supporting Facilities 655,122,000.00 170,985,026.40 93,599,695.88 264,584,722.28 40.39% 90% funds
Construction Project
Brewing Special Grain
Owned
Process Bin & Milling
Automation Renovation subsidies
Project
Owned
Marketing Centre and
Construction Project
funds
Brewery Project (Phase I)
Pipe Network
Owned
Reconstruction Project of 109,396,900.00 37,438,811.11 1,422,732.64 38,861,543.75 36.40% 99.8% funds
Jiangbei Park
Phase II of 90-Thousand-
Ton Pottery Jar Aging
Owned
Spirit Room Technical 50,552,120.00 32,843,685.42 1,685,000.00 34,528,685.42 68.30% 100% funds
innovation Project (Phase
VI)
Anlequan Scenic Area
Owned
Upgrade Emergency 46,744,700.00 29,657,494.28 2,790,000.00 32,447,494.28 70.59% 99% funds
Project
Pilot Project for the
Expansion of the Research Owned
and Application of
Traditional Solid Baijiu
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Production Responding to
the Restriction of High
temperature in Hot Season
Upgrade
and Renovation Project
Factory Buildings and
Other Buildings Owned
Renovation Project of the
Company (Phase II)
High-end Intelligent
Oxyfuel Kiln (8#) Crystal
Owned
Glass Bottles 64,329,600.00 17,444,335.98 17,444,335.98 27.12% 85% funds
Demonstration Production
Line Renovation Project
Coal-to-Gas Energy
Conservation and Owned
Emission Reduction
Project (Phase III)
Owned
Center Upgrading and 29,884,165.00 10,376,158.46 4,349,999.99 14,726,158.45 49.28% 99% funds
Renovation Project
New Finished Product
Owned
Warehouse Construction 29,111,257.68 14,051,582.78 14,051,582.78 48.27% 98% funds
Project
Wuliangye Distillery Main
Owned
Water Pipe Renovation 21,499,200.00 12,551,990.72 850,000.00 13,401,990.72 62.34% 99% funds
Project
Project of the Conversion
of No. 1 Natural Gas Kiln Owned
to a Fully Electric Fusion
Kiln Production Line
Installation of online
monitoring equipment in Owned
the gas boiler room of
Workshop 510
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Wastewater Treatment Owned
Capacity Upgrade Project
Emergent Maintenance
and Rectification of
Ageing Group 521-2 Owned
(Sixty–Thousand-Tons)
Wine Cellar and Adjacent
Accommodation
Total 14,796,660,742.68 2,281,203,636.56 1,093,066,898.57 21,983,750.00 3,352,286,785.13
Notes: The total budget investment in liquor packaging and integrated smart storage-and-delivery project is RMB8,596,655,000, among which the investment in
construction is RMB6,787,568,000, with RMB1,809,087,000 of initial working capital. The project has two phases. The progress of the first phase is 85.00%, and the
second phase will begin at the right time according to the production and operations of the Company. The total progress of the two phases of the project is 33.00%.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(3) Project goods and materials
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Project goods
and materials
Total 2,546,073.18 2,546,073.18 2,546,073.18 2,546,073.18
Unit: RMB
Buildings and Specialised Transport Other
Item Land use right Total
constructions equipment equipment equipment
I Gross amount
balance
in the current 63,963,075.43 623,858.85 9,767,580.97 74,354,515.25
period
(1)
Operating 63,963,075.43 623,858.85 9,767,580.97 74,354,515.25
leases
in the current 19,578,102.77 19,578,102.77
period
(1) Expiry
or termination 19,578,102.77 19,578,102.77
of leases
balance
II Accumulated
depreciation
balance
in the current 98,183,655.64 122,058.11 188,903.31 3,717,986.65 286,062,876.60 388,275,480.31
period
(1)
Provisions
in the current 16,616,000.98 16,616,000.98
period
(1) Expiry
or termination 16,616,000.98 16,616,000.98
of leases
balance
III Impairment
allowances
balance
in the current
period
(1)
Provisions
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
in the current
period
(1)
Disposal
balance
IV Carrying
amount
carrying 91,966,966.42 162,744.06 561,472.95 2,168,825.60 286,062,876.81 380,922,885.84
amount
carrying 129,149,648.42 284,802.17 126,517.41 5,886,812.25 562,358,172.44 697,805,952.69
amount
(1) Intangible assets
Unit: RMB
No
n-
pat
Pa
ent Technology use
Item Land use right te Software system Copyright Total
tec right
nts
hn
olo
gy
I Gross amount
balance
in the current 18,257,951.57 12,240,173.06 30,498,124.63
period
(1)
Acquisition
(2)
Internal research
and development
(3)
Increase from
business
combination
in the current 7,917,930.00 7,917,930.00
period
(1)
Disposal
balance
II Accumulated
amortization
balance
in the current 9,710,717.39 52,626,625.04 7,358.52 1,613,207.52 63,957,908.47
period
(1)
Provisions
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
in the current 3,497,083.96 3,497,083.96
period
(1)
Disposal
balance
III Impairment
allowances
balance
in the current
period
(1)
Provisions
in the current
period
(1)
Disposal
balance
IV Carrying
amount
carrying amount
carrying amount
At the end of the current period, the intangible assets created by internal research and development of the
Company accounts for 0.00% of the balance of intangible assets.
(2) Land use right failed to accomplish certification of property
None
(1) Gross amounts of goodwill
Unit: RMB
Decrease in
Increase in the
the current
current period
period
Opening Generated
Investee or item generating goodwill Closing balance
balance due to
Dispo
business
sal
combinatio
n
Sichuan Yibin Global Group Shenzhou Glass
Co., Ltd.
Sichuan Yibin Global Gelasi Glass
Manufacturing Co., Ltd.
Sichuan Yibin Plastic Packaging Materials
Company Limited
Sichuan Yibin Push Group 3D Co., Ltd. 899,616.62 899,616.62
Total 1,621,619.53 1,621,619.53
Unit: RMB
Increase in the Amortization in
Item Opening balance Other decreases Closing balance
current period the current period
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Molds 125,820,463.71 67,571,755.55 57,777,265.66 135,614,953.60
Overhaul expenses
of kilns
Others 4,881,523.30 4,003,121.59 5,755,350.67 3,129,294.22
Total 155,512,345.82 75,082,697.17 72,008,715.93 158,586,327.06
Other notes: Long-term prepaid expense include the molds of Sichuan Yibin Plastic Packaging Materials
Company Limited, a subsidiary of the Company, and the overhaul expenses of kilns of Sichuan Yibin Global
Gelasi Glass Manufacturing Co., Ltd., which will be amortized in three years and four years, respectively.
(1) Deferred income tax assets which have not been offset
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Asset impairment
allowances
Unrealized profit of
internal transactions
Employee benefits
payable
Accrued expenses, etc. 3,833,924,325.92 958,481,081.48 2,616,999,030.72 654,249,757.68
Total 8,172,359,294.48 2,043,089,823.62 6,735,831,394.16 1,683,957,848.54
(2) Details about deferred income tax assets which have not been recognized
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 3,304,671.54 14,562,119.04
Deductible losses 154,643,413.06 185,492,641.43
Total 157,948,084.60 200,054,760.47
Notes: Due to the uncertainty of whether sufficient taxable income will be obtained in the future, deductible
temporary differences and deductible losses of deferred income tax assets are not recognized.
(3) Deductible losses of deferred income tax assets which have not been recognized will become due in the
following years
Unit: RMB
Year Closing amount Opening amount Remarks
Total 154,643,413.06 185,492,641.43
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Advances of progress
payment for information
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
system construction
Prepayments for land bids 725,547,470.92 725,547,470.92
Total 972,502,674.97 972,502,674.97 219,127,135.72 219,127,135.72
The prepayments for land bids mainly included the prepayments to the Yibin Natural Resources and
Planning Bureau for land transfers, including RMB639,693,000.00 for land in the Wuliangye gateway area,
RMB75,200,515.04 for land for the 100,000-ton Ecological Brewery Project Phase II and RMB10,653,955.88
for land for the qu-making workshop expansion project.
Unit: RMB
Category Closing balance Opening balance
Bank acceptance notes 886,789,180.37 871,061,362.43
Letters of credit 1,181,196.16 978,877.44
Total 887,970,376.53 872,040,239.87
Total amount of notes payable which became matured but unpaid at the end of the current period is
RMB0.00.
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Accounts payable 7,246,802,709.58 5,403,561,392.95
Total 7,246,802,709.58 5,403,561,392.95
(2) Significant accounts payable over 1 year
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Project payment 18,627,178.78
Total 18,627,178.78
(1) Presentation of advances from customers
Unit: RMB
Item Closing balance Opening balance
Advances from customers 16,160,671.49 10,970,385.19
Total 16,160,671.49 10,970,385.19
(2) Significant advances from customers over 1 year
There were no significant advances from customers over 1 year during the Reporting Period.
(3) Advances from customers presented by aging
Unit: RMB
Aging Gross amount
Within 1 year 6,620,873.55
More than 3 years 3,735,308.29
Total 16,160,671.49
(4) Top five entities with respect to advances from customers
Unit: RMB
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
As % of the closing balance of total
Entity Closing balance
advances from customers
Beijing Universe Pictures Co., Ltd. 5,790,000.00 35.83%
Henan Huaibin Wulong Wine Industry Co., Ltd. 1,144,539.50 7.08%
Gubeichun Group Co., Ltd. 462,977.00 2.86%
ICBC Yibin Branch 299,520.00 1.85%
Chengdu Jinqiao Wine Co., Ltd. 260,000.00 1.61%
Total 7,957,036.50 49.24%
Unit: RMB
Item Closing balance Opening balance
Advances from customers 12,379,125,542.70 13,058,652,246.11
Total 12,379,125,542.70 13,058,652,246.11
(1) Presentation of employee benefits payable
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
I Short-term
remuneration
II Post-employment
benefits - defined 14,212.86 1,265,585,788.93 1,265,444,062.95 155,938.84
contribution plans
III Dismissal benefits 2,475,935.67 1,475,935.67 1,000,000.00
Total 3,335,937,141.30 7,870,684,271.87 7,831,094,583.29 3,375,526,829.88
(2) Presentation of short-term remuneration
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
allowances and subsidies
charges
Including: Medical
insurance premium
Industrial
injury insurance premium
Birth
insurance premium
fund
expenditure and
personnel educational
fund
Total 3,335,922,928.44 6,602,622,547.27 6,564,174,584.67 3,374,370,891.04
(3) Presentation of defined contribution plans
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
insurance
insurance premium
contribution
Total 14,212.86 1,265,585,788.93 1,265,444,062.95 155,938.84
Unit: RMB
Item Closing balance Opening balance
VAT 1,081,836,866.14 728,372,175.12
Consumption tax 921,407,756.36 1,334,494,888.87
Corporate income tax 3,017,389,769.33 2,815,738,734.80
Individual income tax 26,308,217.47 82,919,949.14
Urban maintenance and construction tax 143,754,429.94 187,159,402.54
Property tax 441,068.14 689,739.04
Stamp duty 6,357,506.98 1,929,855.79
Land use tax 669,153.14 1,064,621.99
Education surcharge 62,118,360.81 23,896,418.74
Local education surcharge 41,417,432.28 15,899,070.65
Environmental protection tax 17,625.34 18,848.22
Total 5,301,718,185.93 5,192,183,704.90
Other information: The taxes and levies of the Company depend on the amount verified and imposed by the
tax authorities.
Unit: RMB
Item Closing balance Opening balance
Dividends payable 13,191,392.99 37,436,404.82
Other payables 4,618,243,522.44 3,656,421,703.39
Total 4,631,434,915.43 3,693,858,108.21
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Dividends payable by subsidiaries to
non-controlling shareholders
Total 13,191,392.99 37,436,404.82
(2) Other payables
Unit: RMB
Item Closing balance Opening balance
Image publicity expense and sales
promotional expense
Security deposits 1,059,053,791.82 952,693,928.59
Frozen funds 254,603,170.35 249,103,170.35
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Collecting payment on behalf of others 79,272,558.15 57,463,693.60
Claims from safeguarding rights 31,207,782.63 27,200,519.63
Others 87,065,952.24 94,064,342.33
Total 4,618,243,522.44 3,656,421,703.39
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Security deposits 140,068,578.96
Frozen funds 248,322,766.21
Total 388,391,345.17
Unit: RMB
Item Closing balance Opening balance
Current portion of lease liabilities 375,682,599.77 360,027,399.06
Total 375,682,599.77 360,027,399.06
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 1,544,723,419.34 1,688,367,639.42
Total 1,544,723,419.34 1,688,367,639.42
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 16,976,148.73 355,338,950.93
Total 16,976,148.73 355,338,950.93
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance Cause
current period current period
Government
subsidies
Total 257,991,368.32 23,347,702.40 26,922,205.97 254,416,864.75 --
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Items involving government subsidies:
Unit: RMB
Amount
Amount
charged
recognize Amount
New to costs
d in non- recognized in
government and Related to
Liability item Opening balance operating other income in Other changes Closing balance
subsidies in the expenses assets/income
income in the current
current period in the
the current period
current
period
period
Technical Innovation Project (Phase I) assets
Brewery Wastewater Comprehensive Treatment Related to
Project assets
Wastewater Comprehensive Treatment and Related to
Transformation Project assets
Related to
Wuliangye Industrial Park Construction Project 10,000,000.00 10,000,000.00
assets
(Phase I) assets
Baijiu Blending and Storage Cellar Renovation Related to
Project assets
Songgong River (Wuliangye Section) Comprehensive Related to
Treatment Project assets
Technical Upgrading Project of the Quality Control, Related to
Quality Inspection and Testing Center assets
Wastewater Treatment System Upgrading and Related to
Renovation Project assets
Coal-to-Gas Energy Conservation and Emission Related to
Reduction Project (Phase I) assets
Technical Upgrading Project of the 60-Thousand-Ton Related to
Rich-Flavor Baijiu Pottery Jar Aging Cellar assets
Brewing Special Grain Process Bin & Milling Related to
Automation Renovation Project assets
Related to
Informatization and big data application 479,166.58 125,000.04 354,166.54
assets
Shiergoubao Production Line Technical Upgrading Related to
Project assets
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Award from the 4A Scenic Spot of Tourist Related to
Administration of Cuiping District income
Related to
Industrial development funds 1,000,000.00 558,744.47 441,255.53
income
Reward payment for demolition of Jiujiang Lingang
Related to
International Industrial Community, Nanhai District, 20,307,702.40 6,215,221.46 10,172,700.00 3,919,780.94
assets
Foshan City
Related to
Subsidy for national green plant of 2018 500,000.00 500,000.00
income
Yibin Sanjiang New Area 2021 Outstanding Related to
Economic Contribution Enterprise Award income
Total 257,991,368.32 23,347,702.40 16,749,505.97 10,172,700.00 254,416,864.75
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Increase/decrease in the current period (+/-)
Bonus
Opening balance Bonus issue Closing balance
issue
New issue from capital Others Subtotal
from
reserves
profit
Total shares 3,881,608,005.00 3,881,608,005.00
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Capital premium (share
premium)
Other capital reserves 123,383.17 123,383.17
Total 2,682,647,086.15 2,682,647,086.15
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Statutory surplus
reserves
Total 23,866,103,395.72 4,566,095,129.26 28,432,198,524.98
Unit: RMB
Item 2022 2021
Retained earnings at the end of the prior
period before adjustment
Retained earnings at the beginning of the
period after adjustment
Plus: Net profit attributable to owners of
the Company as the parent in the current 26,690,661,397.42 23,377,074,353.40
period
Less: Appropriation to statutory surplus
reserves
Dividends payable to ordinary
shareholders
Retained earnings at the end of the period 79,028,605,172.04 68,638,139,859.37
Adjustments to the retained earnings at the beginning of the period:
adjustment according to the Accounting Standards for Business Enterprises and relevant new provisions.
accounting policies.
accounting errors.
combination scope arising from the same control.
adjustments.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Item
Revenue Costs Revenue Costs
Principal operations 73,363,741,120.87 17,732,568,111.41 65,753,001,416.07 15,948,182,928.09
Other operations 604,899,583.67 445,857,548.23 456,052,196.04 370,595,660.73
Total 73,968,640,704.54 18,178,425,659.64 66,209,053,612.11 16,318,778,588.82
Whether the lower of net profit before or after exceptional gains and losses is negative
□ Yes ? No
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Information on revenue:
Unit: RMB
Contract
East China South China West China North China Central China Total
category
By product category
Wuliangye-
branded Baijiu 17,496,875,030.84 6,786,734,526.67 13,176,884,851.52 8,103,453,869.26 9,771,229,799.12 55,335,178,077.41
products
Other liquor
products
By sales channel
Online 1,179,671,394.19 165,150,138.76 465,552,199.55 2,329,179,020.66 109,284,348.17 4,248,837,101.33
Offline 17,805,948,477.93 7,316,490,591.35 21,072,908,475.60 6,085,489,143.72 11,032,972,841.31 63,313,809,529.91
By sales model
Distributor
model
Direct-to-
consumer 5,782,226,969.18 3,128,008,749.74 9,186,846,518.08 4,571,184,686.68 4,401,992,791.87 27,070,259,715.55
model
Total 18,985,619,872.12 7,481,640,730.11 21,538,460,675.15 8,414,668,164.38 11,142,257,189.48 67,562,646,631.24
Information related to performance obligations:
Revenue is recognized at the point when the Company completes its contractual performance obligations when the customer obtains control of the goods to
which it belongs in the contractual agreement.
Information related to the transaction price apportioned to the remaining performance obligation:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not completed at the end of the Reporting
Period was RMB12,379,125,542.70.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Item 2022 2021
Consumption tax 8,653,332,472.22 7,776,945,076.19
Urban maintenance and construction tax 1,132,484,875.40 1,010,969,161.44
Education surcharge 486,699,510.87 434,483,541.69
Tax on natural resources 92,594.00 45,946.20
Property tax 47,802,066.72 108,880,137.88
Land use tax 48,955,268.10 49,348,856.38
Vehicle and vessel usage tax 105,993.23 130,667.12
Stamp duty 54,296,957.03 118,209,627.99
Local education surcharge 324,466,433.74 289,651,168.33
Environmental protection tax 566,205.73 1,033,833.76
Total 10,748,802,377.04 9,789,698,016.98
Unit: RMB
Item 2022 2021
Image publicity expense 1,240,440,205.34 1,218,266,158.62
Sales promotional expense 3,889,326,216.67 3,786,854,045.27
Storage and logistics expenses 476,754,635.74 411,654,403.24
Expenses of labor 718,179,395.38 611,192,688.42
Other expenses 519,536,560.04 475,538,836.35
Total 6,844,237,013.17 6,503,506,131.90
Unit: RMB
Item 2022 2021
Comprehensive expenses of the Company (including travel, office, expenses of
the Board of Directors, employee remuneration, labor insurance, labor protection 1,302,358,844.82 1,153,058,803.19
appliances, etc.)
Rents 12,138,843.91 31,590,929.73
Trademark and logo royalties 863,873,404.43 742,030,648.63
Comprehensive service fee 78,322,182.60 80,272,320.88
Others 811,425,992.69 893,016,164.94
Total 3,068,119,268.45 2,899,968,867.37
Unit: RMB
Item 2022 2021
Comprehensive expenses (including travel, office, payroll, labor insurance, labor
protection appliances, etc.)
Material expenses 24,305,191.52 17,595,341.62
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Product design fees 14,835,860.22 14,671,117.06
Depreciation and amortization expenses 15,940,284.31 11,225,044.37
Comprehensive expenses (including travel, office, payroll, labor insurance, labor
protection appliances, etc.)
Total 235,783,645.79 177,411,727.65
Unit: RMB
Item 2022 2021
Interest costs 48,003,667.91 69,130,792.55
Less: Interest income 2,075,700,630.12 1,801,002,307.73
Exchange loss 394,735.15 585,270.50
Less: Exchange gains 509,873.32 256,035.88
Service charge of financial institutions 1,903,782.68 1,984,791.95
Others -442,730.22 -2,144,596.61
Total -2,026,351,047.92 -1,731,702,085.22
Unit: RMB
Sources of other income 2022 2021
Government subsidies 100,421,839.81 159,198,913.34
Tax rebates 72,322,800.00 24,522,993.00
Tax preferences 13,781,264.60 32,006,329.01
Total 186,525,904.41 215,728,235.35
Notes: 1. Refer to the Note "VII Notes to the Consolidated Financial Statements, 51. Government
subsidies" for details of government subsidies.
preferences" for details.
Unit: RMB
Item 2022 2021
Return on long-term equity investments
measured using the equity method
Total 92,571,951.15 97,346,566.33
Unit: RMB
Item 2022 2021
Loss on uncollectible other receivables -1,722,230.36 -1,546,459.61
Loss on uncollectible accounts
receivable
Total -1,437,932.66 -2,601,524.74
Unit: RMB
Item 2022 2021
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Inventory valuation loss and impairment loss on contract
-5,552,799.12 -7,531,487.70
performance costs
Impairment loss on fixed assets -20,654,660.75
Total -26,207,459.87 -7,531,487.70
Unit: RMB
Source of asset disposal income 2022 2021
Disposal of non-current assets 3,347,202.23 -1,905,183.84
Total 3,347,202.23 -1,905,183.84
Unit: RMB
Amounts included in current
Item 2022 2021
exceptional profit or loss
Penalty income 7,902,851.31 11,413,330.49 7,902,851.31
Gains from scrap of non-
current assets
Others 26,066,282.98 38,972,624.12 26,066,282.98
Total 38,885,270.86 52,099,818.22 38,885,270.86
Unit: RMB
Amounts included in current
Item 2022 2021
exceptional profit or loss
Donations 57,541,747.10 99,159,845.28 57,541,747.10
Penalty expenditure 578,945.52 588,035.22 578,945.52
Sponsorship expenditure 1,000,000.00 1,000,000.00
Loss on scrap of non-current
assets
Exceptional loss 198,610.78 386,224.38 198,610.78
Others 44,487,603.43 30,558,562.37 44,487,603.43
Total 109,788,008.25 154,124,342.53 109,788,008.25
Other information: The donations mainly consisted of RMB57.3821 million to Sichuan Wuliangye Charity
Fund.
(1) List of income tax expense
Unit: RMB
Item 2022 2021
Current income tax expense 9,492,020,759.10 8,140,840,384.03
Deferred income tax expense -359,131,975.08 -197,886,268.59
Total 9,132,888,784.02 7,942,954,115.44
(2) Reconciliation between accounting profit and income tax expense
Unit: RMB
Item 2022
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Gross profit 37,103,520,716.24
Income tax expense based on the statutory/applicable tax rates 9,275,880,179.06
Effects of different tax rates of subsidiaries -98,809,539.85
Effects of adjustments to income tax of the prior period -19,147,403.40
Effects of non-taxable revenue -23,142,987.79
Effects of non-deductible costs, expenses and losses 36,940,122.68
Effects of the utilization of deductible losses on which deferred income tax
-2,045,165.55
assets were unrecognized in the prior period
Effects of deductible temporary differences or losses on which deferred income
-445,925.31
tax assets are unrecognized in the current period
Effects of the utilization of temporary differences on which deferred income
tax assets were unrecognized in the prior period
Effects of the over-deduction in the calculation of the taxable amount in
-16,416,370.36
relation to wages for the disabled employees
Effects of the 10% preferential income tax rate for stream revenue
Effects of the over-deduction in the calculation of the taxable amount in
-20,365,371.46
relation to R&D expense
Effects of the one-time deduction of fixed assets 441,246.00
Income tax expense 9,132,888,784.02
(1) Cash generated from other operating activities
Unit: RMB
Item 2022 2021
Interest income 1,547,650,473.84 1,661,218,236.26
Security deposits and government
subsidies received
Total 2,006,197,288.41 2,045,885,363.36
(2) Cash used in other operating activities
Unit: RMB
Item 2022 2021
Expenses relating to selling 2,284,853,859.19 2,690,167,279.28
Comprehensive service fee 78,322,182.60 80,272,320.88
Trademark and logo royalties 863,873,404.43 742,030,648.63
Security deposits paid, payments for current transactions,
and other out-of-pocket expenses
Total 4,368,537,434.45 4,785,552,400.33
(3) Cash used in other financing activities
Unit: RMB
Item 2022 2021
Payment for the lease liabilities 402,860,485.37 395,161,935.55
Payments to non-controlling shareholders of subsidiaries for
distribution of residual assets in the liquidation and de- 21,148,883.78
registration of subsidiaries
Total 424,009,369.15 395,161,935.55
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information 2022 2021
operating activities
Net profit 27,970,631,932.22 24,507,450,330.26
Add: Asset impairment allowances 20,844,584.71 5,796,149.63
Depreciation of fixed assets, depletion of oil and gas
assets, and depreciation of productive living assets
Depreciation of right-of-use assets 388,275,480.31 394,268,510.31
Amortization of intangible assets 63,957,908.47 37,740,806.36
Amortization of long-term prepaid expense 72,008,715.93 57,930,691.97
Loss on the disposal of fixed assets, intangible assets and
-3,347,202.23 1,905,183.84
other long-term assets (―-‖ for gain)
Loss on the retirement of fixed assets (―-‖ for gain) 1,064,964.85 21,717,811.67
Loss on changes in fair value (―-‖ for gain)
Finance costs (―-‖ for income) 47,867,401.72 69,600,321.23
Loss on investment (―-‖ for income) -92,571,951.15 -97,346,566.33
Decrease in deferred income tax assets (―-‖ for increase) -359,131,975.08 -197,886,268.59
Increase in deferred income tax liabilities (―-‖ for
decrease)
Decrease in inventories (―-‖ for increase) -1,964,349,766.62 -790,605,226.52
Decrease in operating receivables (―-‖ for increase) -3,969,465,671.49 -5,010,652,760.11
Increase in operating payables (―-‖ for decrease) 1,814,403,391.23 7,347,957,407.88
Others
Net cash generated from/used in operating activities 24,431,136,261.48 26,774,941,873.05
cash proceeds or payments
Conversion of debt to capital
Current portion of convertible corporate bonds
Fixed assets under finance leases
Closing balance of cash 90,584,643,897.66 80,975,257,378.72
Less: Opening balance of cash 80,975,257,378.72 66,967,091,800.45
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 9,609,386,518.94 14,008,165,578.27
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I Cash 90,584,643,897.66 80,975,257,378.72
Of which: Cash on hand 19,772.01 21,897.04
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Bank deposits that can be readily drawn
on demand
Other monetary assets that can be readily
drawn on demand
III Cash and cash equivalents, end of the period 90,584,643,897.66 80,975,257,378.72
Unit: RMB
Closing carrying
Item Reason for restriction
amount
The balance of RMB3,222.19 in the securities trading account with the Yibin
Business Department of Essence Securities, security deposits of
Monetary assets 192,532,713.23
RMB192,004,714.62 for bank acceptance notes, and other security deposits of
RMB524,776.42
Receivables
financing
Total 309,554,353.23
(1) Foreign currency monetary items
Unit: RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Monetary assets
Of which: USD 303,443.37 6.9646 2,113,361.69
EUR
HKD
Accounts receivable
Of which: USD
EUR
HKD
Long-term borrowings
Of which: USD
EUR
HKD
(2) Overseas business entities (for substantial overseas business entities, the following information shall be
disclosed: principal place of business, functional currency and basis for the choice, change of functional
currency and reasons)
□ Applicable ? Not applicable
(1) Basic information on government subsidies
Unit: RMB
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Amount included in current
Type Amount Presented item
profit or loss
Technical Innovation Project (Phase I)
Reward payment for demolition of Jiujiang Lingang
International Industrial Community, Nanhai District, 20,307,702.40 Deferred income 6,215,221.46
Foshan City
Brewery Wastewater Comprehensive Treatment
Project
Technical Upgrading Project of the 60-Thousand-Ton
Rich-Flavor Baijiu Pottery Jar Aging Cellar
Industrial development funds 1,000,000.00 Deferred income 558,744.47
Songgong River (Wuliangye Section)
Comprehensive Treatment Project
Technical Upgrading Project of the Quality Control,
Quality Inspection and Testing Center
Wastewater Comprehensive Treatment and
Transformation Project
Wastewater Treatment System Upgrading and
Renovation Project
Coal-to-Gas Energy Conservation and Emission
Reduction Project (Phase I)
Informatization and big data application 1,000,000.00 Deferred income 125,000.04
Shiergoubao Production Line Technical Upgrading
Project
Cuiping District Tourism Bureau 4A Scenic Spot
Award
(Phase I)
Baijiu Blending and Storage Cellar Renovation
Project
Wuliangye Industrial Park Construction Project 10,000,000.00 Deferred income
Brewing Special Grain Process Bin & Milling
Automation Renovation Project
Subsidy for national green plant of 2018 500,000.00 Deferred income
Yibin Sanjiang New Area 2021 Outstanding
Economic Contribution Enterprise Award
Award from the Modern Service Industry
Development Bureau of the Economic and 45,771,539.00 Other income 45,771,539.00
Technological Development Zone in Lingang
Job Stabilisation Subsidy 12,222,276.84 Other income 12,222,276.84
Industrial support funds for projects in Lingang
Economic and Technological Development Zone of 5,045,222.00 Other income 5,045,222.00
Yibin
Talent Introduction Subsidy 4,329,400.00 Other income 4,329,400.00
Sichuan National Enterprise Technology Centre
R&D Investment Incentive
Subsidy funds of the ten measures for a strong
modern industrial city
Support funds for settled enterprises 2,128,500.00 Other income 2,128,500.00
Team Award by the Economic Cooperation and
Foreign Affairs Bureau in Nanxi District, Yibin
Support funds from the Linzhang County Finance
Bureau
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Henan Liquor Development Funds 1,080,000.00 Other income 1,080,000.00
The first batch of Yibin manufacturing segment
champion incubatees
Utilities subsidy for industrial enterprise
development
Funds for promoting innovation and development of
industrial enterprises in Sanjiang New Area, Yibin
Sales incentive from the Yibin Sanjiang New Area
Industry and Services Bureau
Special enterprise technology transformation funds
for high quality development
Provincial special funds for science and technology
project
Special subsidy for the overall image promotion of
liquor produced in Henan
Fiscal incentive funds for full capacity production of
above-designated-size enterprises in the first quarter 100,000.00 Other income 100,000.00
of 2022
Subsidy from the International Cooperation and
Investment Service Bureau of the Chengdu Hi-Tech
Industrial Development Zone for supporting small
trading enterprises to scale up
Provincial special funds for intellectual property 100,000.00 Other income 100,000.00
Special funds for high-quality development 50,000.00 Other income 50,000.00
Municipal Business Development Project Subsidy
from the Yibin Sanjiang New Area Industry and 50,000.00 Other income 50,000.00
Service Bureau
Yibin Nanxi District Finance Bureau 2021 Economic
Work Recognition Award
Special fund for talent development 20,000.00 Other income 20,000.00
Other miscellaneous government subsidies 8,980.00 Other income 8,980.00
Total 419,730,036.24 100,421,839.81
(2) Return of government subsidies
□ Applicable ? Not applicable
VIII Changes to the Scope of the Consolidated Financial Statements
There were no business combinations involving entities not under common control in the Reporting Period.
There were no business combinations involving entities under common control in the Reporting Period.
There was no subsidiary acquired by counter purchase during the Reporting Period.
There was no disposal of subsidiaries during the Reporting Period.
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise,
the Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. In 2022, two subsidiaries of the Company, namely Wuhou Cultural Development Co., Ltd. and Yibin
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Wuliangye Xinshengdai Liquor Co., Ltd., were de-registered.
IX Interests in Other Entities
(1) Compositions of the Group
The Company’s How the
Principal Place of
Nature of interest subsidiary
Subsidiary place of registratio
business was
business n Direct Indirect obtained
Manufacturi Incorporat
Sichuan Yibin Wuliangye Distillery Co., Ltd. Yibin Yibin 99.00% 0.99%
ng ed
Incorporat
Yibin Wuliangye Liquor Sales Co., Ltd. Yibin Yibin Business 95.00%
ed
Yibin Wuliang Tequ and Touqu Brand Incorporat
Yibin Yibin Business 95.00%
Marketing Co., Ltd. ed
Incorporat
Yibin Wuliangchun Brand Marketing Co., Ltd Yibin Yibin Business 95.00%
ed
Yibin Wuliangye Series Liquor Brand Incorporat
Yibin Yibin Business 95.00%
Marketing Co., Ltd. ed
Sichuan Yibin Wuliangye Supply and Incorporat
Yibin Yibin Business 99.00% 0.95%
Marketing Co., Ltd. ed
Manufacturi 100.00 Incorporat
Yibin Jiangjiu Liquor Co., Ltd. Yibin Yibin
ng % ed
Sichuan Yibin Wuliangye Environmental Manufacturi Incorporat
Yibin Yibin 51.00%
Protection Industry Co., Ltd. ng ed
Business
combinatio
n
involving
Sichuan Jinwuxin Technology Co., Ltd. Yibin Yibin Business 51.00%
entities not
under
common
control
Sichuan Jiebeike Environmental Technology Incorporat
Yibin Yibin Engineering 26.01%
Co., Ltd. ed
Manufacturi 100.00 Incorporat
Yibin Changjiangyuan Liquor Co., Ltd. Yibin Yibin
ng % ed
Yibin Changjiangyuan Trade Co., Ltd. Yibin Yibin Business
% ed
Manufacturi 100.00 Incorporat
Yibin Changjiangyuan Brewery Co., Ltd. Yibin Yibin
ng % ed
Yibin Wuliangye Organic Agriculture 100.00 Incorporat
Yibin Yibin Agriculture
Development Co., Ltd. % ed
Yibin Wuliangye Xianlin Ecological Liquor Manufacturi Incorporat
Yibin Yibin 90.00%
Co., Ltd. ng ed
Incorporat
Yibin Xianlin Liquor Marketing Co., Ltd. Yibin Yibin Business 90.00%
ed
Sichuan Yibin Wuliangye Jingmei Printing Co., Manufacturi Incorporat
Yibin Yibin 97.00% 1.53%
Ltd. ng ed
Incorporat
Yibin Xinxing Packaging Co., Ltd. Yibin Yibin Business 98.53%
ed
Business
Sichuan Yibin Plastic Packaging Materials Manufacturi 100.00 combinatio
Yibin Yibin
Company Limited ng % n
involving
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
entities not
under
common
control
Sichuan Yibin Global Group Shenzhou Glass Manufacturi 100.00
Yibin Yibin
Co., Ltd. ng %
Sichuan Yibin Global Gelasi Glass Manufacturi 100.00
Yibin Yibin
Manufacturing Co., Ltd. ng %
Manufacturi 100.00
Sichuan Yibin Push Group 3D Co., Ltd. Yibin Yibin
ng %
Guangdong Plastic Packaging Materials Manufacturi 100.00 Incorporat
Foshan Foshan
Company Limited ng % ed
Sichuan Yibin Wuliangye Investment Incorporat
Yibin Yibin Investment 95.00%
(Consulting) Co., Ltd. ed
Incorporat
Wuliangye Dashijie (Beijing) Trade Co., Ltd. Beijing Beijing Business 95.00%
ed
Manufacturi Incorporat
Handan Yongbufenli Liquor Co., Ltd. Handan Handan 51.00%
ng ed
Incorporat
Linzhang Desheng Liquor Trade Co., Ltd. Handan Handan Business 51.00%
ed
Incorporat
Handan Yongbufenli Sales Co., Ltd. Handan Handan Business 51.00%
ed
Business
combinatio
n
Consultatio 100.00 involving
Huaibin Wubin Consultation Service Co., Ltd. Huaibin Huaibin
n % entities not
under
common
control
Manufacturi
Wuguchun Jiu Ye Co., Henan. China Huaibin Huaibin 11.03% 40.00%
ng
Incorporat
Huaibin Tenglong Trade Co., Ltd. Huaibin Huaibin Business 51.03%
ed
Incorporat
Wuguchun Jiu Ye Sales Co., Henan. China Huaibin Huaibin Business 51.03%
ed
Sichuan Wuliangye Culture Tourism Incorporat
Yibin Yibin Tourism 80.00%
Development Co., Ltd. ed
Incorporat
Sichuan Wuliangye Tourist Agency Co., Ltd. Yibin Yibin Tourism 80.00%
ed
Incorporat
Yibin Wuliangye Creart Co., Ltd. Yibin Yibin Business 45.00%
ed
Sichuan Wuliangye NongXiang Baijiu Co., Incorporat
Yibin Yibin Business 95.00%
Ltd. ed
Sichuan Wuliangye New Retail Management Incorporat
Chengdu Chengdu Business 90.00%
Co., Ltd. ed
Note on the difference between shareholding proportion and proportion of voting rights in subsidiary:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing Sparkle
Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,
Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "Creart
Company"), of which the registered capital is RMB100 million. The Company contributes RMB45 million,
taking up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co.,
Ltd. and the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd.
through mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
The basis of controlling the invested company even if holding half or less than half voting rights and not
controlling the invested company even if holding more than half voting rights:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing Sparkle
Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,
Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "Creart
Company"), of which the registered capital is RMB100 million. The Company contributes RMB45 million,
taking up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co.,
Ltd. and the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd.
through mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Net profit or loss Declared dividends
Non-controlling attributable to non- for non-controlling Closing balance of non-
Subsidiary
interests controlling interests in interests in the controlling interests
the current period current period
Yibin Wuliangye
Liquor Sales Co., Ltd.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(3) Key financial information of important non-wholly-owned subsidiaries
Unit: RMB
Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Yibin Wuliangye Liquor Sales Co., Opening balance
Ltd. Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Unit: RMB
Subsidiary Net cash generated from/used in
Operating revenue Net profit Total comprehensive income
operating activities
Yibin Wuliangye Liquor Sales Co.,
Net cash generated from/used in
Ltd. Operating revenue Net profit Total comprehensive income
operating activities
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
(1) Important joint ventures or associates
The Company’s Accounting
interest (%) treatment of
Principal Place of
Nature of investment
Joint venture or associate place of registratio
business in the joint
business n Direct Indirect venture or
associate
Advertising Equity
Oriental Outlook Media Co., Ltd. Beijing Beijing 49.00%
industry method
Sichuan Yibin Wuliangye Group Finance Equity
Yibin Yibin Finance 40.56%
Co., Ltd. method
Packaging and
Yibin Jiamei Intelligent Packaging Co., Equity
Yibin Yibin printing 48.28%
Ltd. method
industry
Beijing Zhongjiuhuicui Education and Education Equity
Beijing Beijing 20.83%
Technology Co., Ltd. industry method
(2) Key financial information of important associates
Unit: RMB
Closing balance/2022 Opening balance/2021
Sichuan Yibin Wuliangye Group Finance Sichuan Yibin Wuliangye Group Finance
Co., Ltd. Co., Ltd.
Current assets 10,716,370,139.80 15,261,397,498.01
Non-current assets 33,512,182,650.82 28,681,784,105.08
Total assets 44,228,552,790.62 43,943,181,603.09
Current liabilities 39,453,741,415.00 39,338,284,799.58
Non-current liabilities 16,087,688.44 5,208,942.19
Total liabilities 39,469,829,103.44 39,343,493,741.77
Non-controlling interests
Equity attributable to the shareholders of
the Company as the parent
Share of net assets in proportion to the
Company’s interest
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Carrying amount of equity investments
in associates
Fair value of equity investments in
associates with quoted prices on the open
market
Operating revenue 478,928,872.79 501,329,916.19
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Net profit 215,835,825.86 210,463,988.65
Net profit of discontinued operations
Other comprehensive income
Total comprehensive income 215,835,825.86 210,463,988.65
Dividends received from the associates
in the current period
(3) Aggregate financial information of unimportant joint ventures and associates
Unit: RMB
Closing balance/2022 Opening balance/2021
Joint ventures:
Aggregate amount in proportion to the
Company’s interests
Associates:
Total carrying amount of investments 56,249,197.26 45,595,257.08
Aggregate amount in proportion to the
Company’s interests
--Net profit 5,028,940.18 7,388,096.20
--Total comprehensive income 5,028,940.18 7,388,096.20
There were no structured entities that were not included in the consolidated financial statements in the
Reporting Period.
X Disclosure of Fair Value
Unit: RMB
Closing fair value
Item Fair value Fair value Fair value
measurement at measurement at measurement at level Total
level I level II III
I Consistent fair value measurement -- -- -- --
Receivables financing 28,904,198,420.44 28,904,198,420.44
Other non-current financial assets 1,200,000.00 1,200,000.00
Total assets measured at fair value
on an ongoing basis
II Fair value measurement on a
-- -- -- --
non-ongoing basis
ongoing bases
Not applicable
quantitative information on the valuation techniques used and significant parameters
Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
quantitative information on the valuation techniques used and significant parameters
Receivables financing: Due to the short term of notes receivable held by the Company, and the selling time,
selling price and selling proportion cannot be estimated reliably, the Company measures the notes receivable
according to the par value as a reasonable estimate of fair value.
Other non-current financial assets: Since the Company holds other non-current financial assets that are not
traded in an active market, and its equity interest in the invested company is low and has no significant influence,
it is not realistic and feasible to value the equity in the invested company using the income approach or market
approach, and there is no recent introduction of external investors to the invested company or transfer of equity
among shareholders that can be used as a reference basis for determining fair value. In addition, the Company
has not found any significant changes in the internal and external environment of the invested company since the
beginning of the year from the analysis of the relevant information available, therefore, it is a "limited
circumstances" in which the carrying cost can be used as the best estimate of the fair value, and therefore the fair
value is based on the cost at the end of the year.
beginning and ending carrying values and sensitivity analysis of unobservable parameters
Not applicable
in the current period, the reasons for the conversion and the policy for determining the conversion time
point
Not applicable
Not applicable
Not applicable
XI Related Parties and Related-Party Transactions
The parent
Place of The parent
Nature of company’s voting
Name of the parent company registratio Registered capital company’s interest
business right percentage in
n in the Company
the Company
Yibin Development Holding
Yibin Investment RMB5 billion 34.43% 34.43%
Group Co., Ltd.
Information on the parent company of the Company:
Yibin Development Holding Group Co., Ltd. is a wholly state-owned company funded and established by
the People’s Government of Yibin City. Legal representative of the company is Liang Li and its registered
capital is RMB5 billion. Its business scope includes the state-owned property right (including state-owned
shares), state-owned assets and state investments as authorized by the People's Government of Yibin City. The
company, as an investor, conducts capital management and assets management by holding, shareholding,
investment and receiving assignment, transfer, auction, and lease within the limits of authority.
Main functions of Yibin Development Holding Group Co., Ltd. include: First, holding state-owned equity
and exercising shareholder’s rights in municipal-level enterprise on behalf of the People’s Government of Yibin
City; second, raising funds for key construction projects as an investment and financing platform of the People’s
Government of Yibin City, and investing in such projects by shareholding and holding; third, promoting the
preserve and increase the value of state-owned assets and economic development of the city by capital
management and assets management.
Yibin Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds 100%
of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,128,371,363.00 shares of the
Company directly or indirectly, taking up 54.83% of the total share capital of the Company.
The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin
City is the ultimate controller of the Company.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Refer to the Note "IX Interests in Other Entities" for information about subsidiaries of the Company.
Refer to the Note "IX Interests in Other Entities" for information about important joint ventures and
associates of the Company.
Other joint ventures or associates that were involved in related-party transactions with the Company in the
current period, or that were involved in related-party transactions with the Company in prior periods with
balances lasting into the current period:
Name of joint venture or associate Relationship with the Company
Sichuan Yibin Wuliangye Group Finance Co., Ltd. Associate
Yibin Jiamei Intelligent Packaging Co., Ltd. Associate
Names of other related parties Relationship between other related parties and the Company
The legal representative of the Company concurrently serves as
the Secretary of the CPC Committee and Chairman of the
Board of Wuliangye Group, and some directors and officers of
Sichuan Yibin Wuliangye Group Co., Ltd.
the Company concurrently hold positions in Wuliangye Group.
Wuliangye Group directly holds a 20.40% interest in the
Company.
Yibin Wuliangye Group I&E Co., Ltd. Subsidiary of Wuliangye Group
Yibin Jinlong Trade Development Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Wuliangye Group Ecological Brewery and
Subsidiary of Wuliangye Group
Marketing Co., Ltd.
Yibin Wuliangye Ecological Brewing Co., Ltd. Subsidiary of Wuliangye Group
Chengdu Wuliangye Grand Hotel Co., Ltd. Subsidiary of Wuliangye Group
Yibin Paper Industry Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Push Group Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Push Mold Co., Ltd. Subsidiary of Push Group
Sichuan Push Acetati Company Limited Subsidiary of Push Group
Sichuan Yibin Push Drive Co., Ltd. Subsidiary of Push Group
Chengdu Push Medical Plastics Packaging Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push Building Materials Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push Auto Parts Co., Ltd. Subsidiary of Push Group
Push Information & Automation (Chengdu) Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push Intelligent Technology Co., Ltd. Subsidiary of Push Group
Yibin Push Linko Technology Co., Ltd. Subsidiary of Push Group
Sichuan Putian Packaging Co., Ltd. Subsidiary of Push Group
Yibin Push Assets Management Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push International Co., Ltd. Subsidiary of Push Group
Push Ningjiang Machine Tool Co., Ltd. Subsidiary of Push Group
Zhejiang Pukai New Material Co., Ltd. Subsidiary of Push Group
Chongqing PUSH POWER Technology Co., Ltd. Subsidiary of Push Group
Yibin Puyi Automobile Technology Co., Ltd. Subsidiary of Push Group
Sun Display Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Licai Group Co., Ltd. Subsidiary of Wuliangye Group
Yibin Wucai Packaging Co., Ltd. Subsidiary of Licai Group
Sichuan Yibin Global Group Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. Subsidiary of Global Group
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Yibin Global Photoelectric Energy Conservation Technology
Subsidiary of Global Group
Co., Ltd.
Chengdu Huayu Glass Manufacturing Co., Ltd. Subsidiary of Global Group
Yibin Global Energy Conservation Service Co., Ltd. Subsidiary of Global Group
Sichuan Global Insulator Co., Ltd. Subsidiary of Global Group
Yaohua (Yibin) Glass, Co., Ltd. Associate of Global Group
Yibin City Commercial Bank Co., Ltd. Wuliangye Group holds a 19.99% interest
Yibin Wuliangye Fund Management Co., Ltd. Subsidiary of Wuliangye Group
Yibin Wuliangye Rural Development Fund (L.P.) Subsidiary of Wuliangye Group
Yibin Wuliangye Tea Industry Development Fund (L.P.) Subsidiary of Wuliangye Rural Development Fund
Wuming Tea Industry Holding Co., Ltd. Subsidiary of Wuliangye Tea Industry Development Fund
Yibin Chuanhong Tea Group Co., Ltd. Subsidiary of Wuliangye Tea Industry Development Fund
Sichuan Linhu Tea Industry Co., Ltd. Subsidiary of Chuanhong Tea Group
Sichuan Nongwu E-commerce Co., Ltd. Subsidiary of Chuanhong Tea Group
Anji Logistic Group Co., Ltd. Sichuan Subsidiary of Wuliangye Group
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. Subsidiary of Anji Logistic Group
Yibin An Shi Ji International Logistics Co., Ltd. Subsidiary of Anji Logistic Group
Yibin An Shi Ji Auto Service Co., Ltd. Subsidiary of Anji Logistic Group
Sichuan An Shi Ji Supply Chain Management Co., Ltd. Subsidiary of Anji Logistic Group
Sichuan Andaxin Logistics Co., Ltd. Subsidiary of Anji Logistic Group
Yibin Jichi Automobile Sales Service Co., Ltd. Subsidiary of Anji Logistic Group
Yibin An Shi Ji Auto Service Co., Ltd. (Chengdu Branch) Subsidiary of Anji Logistic Group
Wuliangye Group Anji Shipping Co., Ltd. Subsidiary of Anji Logistic Group
Anji Logistic Group Co., Ltd. (Chengdu, Sichuan Branch) Subsidiary of Anji Logistic Group
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Huansheng Pharmacy Co., Ltd. Subsidiary of Wuliang Pharmaceutical
Yibin Tianyuan Group Co., Ltd. Subsidiary of Yibin Development Group
Yibin Tianyuan Goods&Materials Industry Group Co., Ltd. Subsidiary of Tianyuan Group
Yibin Tianyi New Material Technology Co., Ltd. Subsidiary of Tianyuan Group
Yibin Tianchang Logistics Co., Ltd. Subsidiary of Tianyuan Group
Yibin Grace Group Co., Ltd. Subsidiary of Yibin Development Group
Yibin Grace Fiber Industry Co., Ltd. Subsidiary of Grace Group
Yibin Hiest Fibre Limited Corporation Subsidiary of Grace Group
Yibin Jinxilai Changxin Industry Co., Ltd. Subsidiary of Grace Group
Yibin Jinxiuyuan Landscaping Co., Ltd. Subsidiary of Grace Group
Yibin Grace Mechanical and Electrical Engineering Co., Ltd. Subsidiary of Grace Group
Sacred Mountain Molin Group Co., Ltd. Si Chuan Subsidiary of Wuliangye Group
Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan Subsidiary of Sacred Mountain Molin Group
Sichuan Shuzhan New Materials Co., Ltd. Subsidiary of Sacred Mountain Molin Group
Yibin Sanjiang Investment and Construction Group Co., Ltd. Subsidiary of Yibin Development Group
Yibin Xianghe Aviation Service Co., Ltd. Subsidiary of Sanjiang Investment and Construction Group
Cowin Automobile Co., Ltd. Subsidiary of Sanjiang Investment and Construction Group
Yibin Jindun Security Service Co., Ltd. Subsidiary of Sanjiang Investment and Construction Group
Sichuan Haida Rubber Group Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Tyre and Rubber Co., Ltd. Subsidiary of Haida Group
Sichuan Gloport Investment and Development Group Co., Ltd. Subsidiary of Yibin Development Group
Yibin Lingang Business Service Co., Ltd. Subsidiary of Gloport Investment Group
Yibin Urban and Traffic Construction Investment Group Co., Subsidiary of Yibin Development Group
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Ltd.
Yibin Changsheng Engineering Management Co., Ltd. Subsidiary of Yibin Urban and Traffic Construction Investment
Group
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan Subsidiary of Wuliangye Group
Sichuan Wuliangye Baojianjiu Sales Co., Ltd. Subsidiary of Health Liquor Group
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering of
services
Purchases of goods/receipt of services:
Unit: RMB
Over
the
App
appr
rove
oved
d
trans
Content of trans
Related party 2022 actio 2021
transaction actio
n
n
amo
amo
unt
unt
or
not
Raw materials,
Sichuan Yibin Global Group Tianwo Trade
glass bottles, 486,353,033.02 489,352,080.56
Co., Ltd.
etc.
Sacred Mountain Molin Group Co., Ltd. Si Raw materials,
Chuan etc.
RFID anti-
Sichuan Yibin Push Group Co., Ltd. counterfeit 74,657,518.94 67,959,749.62
labels etc.
Raw materials,
Yibin Jinlong Trade Development Co., Ltd. 74,547,521.47 29,445,309.93
etc.
Chengdu Push Medical Plastics Packaging Co., Raw materials,
Ltd. etc.
Sacred Mountain Molin Group Co., Ltd. Si
PPE, etc. 63,612,864.25 63,567,442.37
Chuan
Wuming Tea Industry Holding Co., Ltd. Tea, etc. 54,932,985.64 63,205,148.32
Yibin Chuanhong Tea Group Co., Ltd. Tea 29,638,828.00 1,908,311.50
Raw materials, 64,080,623.14
Sichuan Yibin Push Mold Co., Ltd. 68,939,522.33
etc.
Raw materials,
Sichuan Yibin Push Drive Co., Ltd. 17,523,314.19 25,198,204.17
etc.
Sacred Mountain White Magnolia Industrial
PPE, etc. 16,261,166.33
Co., Ltd., Sichuan
Sichuan Yibin Wuliang Pharmaceutical Co.,
Medicines, etc. 14,620,065.38 11,174,519.56
Ltd.
Raw materials,
Sichuan Putian Packaging Co., Ltd. 13,561,665.00 10,720,904.50
etc.
Yibin Global Photoelectric Energy Raw materials,
Conservation Technology Co., Ltd. etc.
Chengdu Huayu Glass Manufacturing Co., Ltd. Glass bottles 21,780,109.59 3,233,095.59
Sichuan Yibin Push Building Materials Co.,
Raw materials 5,487,962.63 166,591.02
Ltd.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Sichuan Huansheng Pharmacy Co., Ltd. Medicines 2,567,710.74 641,800.51
Raw materials,
Sichuan Yibin Push Auto Parts Co., Ltd. 2,006,480.60
etc.
Push Information & Automation (Chengdu) Raw materials,
Co., Ltd. etc.
Sichuan Yibin Global Group Tianwo Trade
Health liquor 44,958,850.17
Co., Ltd.
Raw materials,
Sichuan Shuzhan New Materials Co., Ltd. 468,746.01 1,279,766.67
etc.
Sichuan Yibin Push Intelligent Technology Co., Raw materials,
Ltd. etc.
Packaging
Yibin Wucai Packaging Co., Ltd. 44,574,105.04
materials, etc.
Sichuan Wuliangye Baojianjiu Sales Co., Ltd. Health liquor 39,195,390.87
Raw materials,
Yibin Push Linko Technology Co., Ltd. 17,849,789.80
etc.
Yibin An Shi Ji International Logistics Co.,
Liquor 2,026,327.43
Ltd.
Other miscellaneous purchases of goods from
related parties
Total purchases of goods from related parties 1,308,552,760.86 1,307,749,584.24
Freight and
miscellaneous
Anji Logistic Group Co., Ltd. Sichuan 797,438,814.15 691,658,046.61
charges, service
charges, etc.
External
Yi Bin Jia Mei Smartpackaging Co., Ltd. processing 87,842,293.03 41,632,320.82
expenses
External labour
Sichuan Andaxin Logistics Co., Ltd. 77,361,088.22
costs
Freight and
miscellaneous
Sichuan Yibin Wuliangye Group Anji Logistic
charges, shuttle 69,437,258.05 38,527,096.20
Co., Ltd.
service charges,
etc.
Sichuan Yibin Push Intelligent Technology Co., Repair
Ltd. expenses, etc.
Marketing
WuLiangYe Group Health Liquor Co., Ltd.
support 8,157,421.41
Yibin. Sichuan
expenses
Freight and
miscellaneous
Yibin An Shi Ji Auto Service Co., Ltd. charges, repair 5,718,811.96 5,274,819.29
charges, vehicle
costs, etc.
External
Yibin Wucai Packaging Co., Ltd. processing 3,064,274.15
expenses
Freight and
Yibin An Shi Ji International Logistics Co.,
miscellaneous 1,352,869.02
Ltd.
charges
Yibin Jinlong Trade Development Co., Ltd. Repair expenses 1,337,300.00 2,899,211.82
Yibin Global Energy Conservation Service Co., Smoke
Ltd. treatment, etc.
Yibin Jichi Automobile Sales Service Co., Ltd. Vehicle costs, 188,590.86 1,916,208.75
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
etc.
Image
Chengdu Wuliangye Grand Hotel Co., Ltd. promotion 6,830,188.54
expenses
Freight and
Wuliangye Group Anji Shipping Co., Ltd. miscellaneous 3,909,107.29
charges
Other miscellaneous receipts of services from
related parties
Total receipts of services from related parties 1,066,447,987.93 805,795,953.80
Notes to the related-party transactions involving purchases of goods/receipt of services:
Note 1: The Company and Sichuan Yibin Global Group Tianwo Trade Co., Ltd. entered into the Purchase
and Sales Agreement and Agreement, according to which the Company procures raw materials, cartons, glass
bottles, etc. from Sichuan Yibin Global Group Tianwo Trade Co., Ltd. The pricing principle is market quotations,
and the specific purchases and sales demand may be determined according to the orders by the two parties. The
Agreement is valid from 1 January 2021 to 31 December 2023.
Note 2: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the Labor
Protection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according to
which the Company procures labor protection appliances, packing bags, and festival food from Sacred Mountain
Molin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 3: The Company and Chengdu Push Medical Plastics Packaging Co., Ltd. entered into Procurement
Contract. The Company procures films, bags, boxes, accessories, etc. from Chengdu Push Medical Plastics
Packaging Co., Ltd. According to the bid agreement, the Company will place an order with Chengdu Push
Medical Plastics Packaging Co., Ltd. with the bid result. Specific information on the name, quantity, amount, etc.
of accessories can be seen in the procurement orders signed by both parties. The price of goods is the factory
price in lump sum, including the factory price of materials, packing expenses, transportation loss charges,
transportation expenses, and various testing fees of the material, various risks, profits, taxes, and other expenses.
The Agreement is valid for three year since the bid opening day.
Note 4: On 11 December 2020, the Company and Sichuan Yibin Push Mold Co., Ltd. entered into the
Supply Agreement. The Company procures molds, spare parts, systems, R&D restructuring and maintenance
projects, injection products and raw material, value-added services and so on from Sichuan Yibin Push Mold Co.,
Ltd. The agreement products are paid at market price, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 5: On 5 March 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the Related-
Party Transaction Framework Agreement. The Company procures equipment and anti-counterfeit labels from
Push Group. Refer to corresponding purchases and sales contract for details on sales of goods, unit, quantity, and
amount. The product price is the factory price in lump sum, including the factory price of materials, packing
expenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate adjusted by
the country) and other expenses. If delivery is requested, extra expenses such as the freight charge, insurance
expense and delivery expense are needed based on the factory price. The Agreement is valid from 5 March 2021
to 31 December 2023.
Note 6: The Company and Wuming Tea Industry Holding Co., Ltd. entered into the Agreement, according
to which the Company procures tea leaves and peripheral products of tea, tea-related prepackaged foods and tea
for heatstroke prevention and cooling, papers products, and marketing products from Wuming Tea Industry
Holding Co., Ltd. The pricing principle is based on the value and cost, oriented by market competition, taking
the historical price for reference and the costs, profits, taxes and dues, quality, delivery date, order quantity, after-
sales service, logistics, packaging, payment terms into full consideration. The specific purchases and sales
demand may be determined according to the orders by the two parties. The Agreement is valid from 1 January
Note 7: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the Labor
Protection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according to
which the Company procures labor protection appliances, packing bags, and festival food from Sacred Mountain
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Molin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 8: The Company and Anji Logistic Group Co., Ltd. Sichuan entered into the Agreement on 1 January
stevedoring. The pricing principle is price fairness, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Sale of goods/rendering of services:
Unit: RMB
Related party Content of transaction 2022 2021
Yibin Wuliangye Group I&E Co., Ltd. Liquor products, etc. 890,325,314.77 409,320,476.95
Yibin Jinlong Trade Development Co., Ltd. Liquor products 336,748,937.76 816,348,512.08
Sichuan Putian Packaging Co., Ltd. Bottle caps, slices, etc. 147,098,873.26 177,193,094.91
Yibin An Shi Ji International Logistics Co., Ltd. Liquor products, etc. 96,358,269.24
Wuming Tea Industry Holding Co., Ltd. Liquor products, etc. 88,605,502.59 416.04
Sichuan Global Insulator Co., Ltd. Glass bottles, etc. 85,983,531.87 62,123.90
Glass bottles, raw
Sichuan Yibin Global Group Co., Ltd. 59,487,606.48 176,449,056.05
materials, etc.
Yibin Global Photoelectric Energy Conservation
Raw materials, etc. 50,054,556.67 47,195.44
Technology Co., Ltd.
Sichuan Nongwu E-commerce Co., Ltd. Liquor products 41,097,469.02 49,538,612.53
Chengdu Push Medical Plastics Packaging Co.,
Slices, rolls, etc. 37,044,899.55 55,077,686.69
Ltd.
Yibin Tianyuan Goods&Materials Industry Group
Raw materials, etc. 23,198,309.63
Co., Ltd.
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. Liquor products, etc. 17,820,858.43 36,147,029.43
Sichuan Yibin Push Drive Co., Ltd. Slices, etc. 10,870,632.10 19,366,272.90
Zhejiang Pukai New Material Co., Ltd. Slices 9,609,175.58
Chengdu Huayu Glass Manufacturing Co., Ltd. Cartons, etc. 6,311,751.24 6,490,641.32
Sichuan Yibin Push Building Materials Co., Ltd. Raw materials, etc. 5,730,155.65 364,117.86
Sichuan Shuzhan New Materials Co., Ltd. Hangtags, labels, etc. 5,456,605.98 11,348,797.14
Yibin Xianghe Aviation Service Co., Ltd. Liquor products 5,094,330.99
Yibin Grace Fiber Industry Co., Ltd. Cartons 4,139,121.41
Sichuan Yibin Wuliangye Group Ecological
Liquor products 3,233,235.08 45,012,917.77
Brewery and Marketing Co., Ltd.
Sichuan Yibin Wuliangye Group Ecological
Raw materials, etc. 2,895,562.51 2,128,083.34
Brewery and Marketing Co., Ltd.
Sichuan Linhu Tea Industry Co., Ltd. Packaging boxes, etc. 2,708,303.80 8,657,314.16
Miscellaneous items,
Sichuan Nongwu E-commerce Co., Ltd. 2,482,856.40 2,055,108.18
paper, etc.
Yibin Wuliangye Ecological Brewing Co., Ltd. Raw materials, etc. 2,285,500.82 2,035,519.70
Yibin Tianyi New Material Technology Co., Ltd. Cartons 2,277,096.90
Sichuan Yibin Push Auto Parts Co., Ltd. Raw materials, etc. 1,910,077.66 722,332.60
Cowin Automobile Co., Ltd. Liquor products 1,911,504.42
Sichuan Yibin Push International Co., Ltd. Slices 1,621,563.45 3,646,154.03
Yibin Hiest Fibre Limited Corporation Cartons 1,495,038.88
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Anji Logistic Group Co., Ltd. Sichuan Raw materials, etc. 1,220,663.96
Liquor, food and
Sichuan Yibin Push Mold Co., Ltd. 1,203,612.63 1,625,007.87
beverage, etc.
Yibin Jinxilai Changxin Industry Co., Ltd. Glass bottles, etc. 1,150,733.24
Push Ningjiang Machine Tool Co., Ltd. Liquor products 1,061,946.90 1,061,946.90
Yi Bin Jia Mei Smartpackaging Co., Ltd. Paper, etc. 993,977.16 513,031.82
Anji Logistic Group Co., Ltd. Sichuan Liquor products 275,706.18 796,696,566.44
Sichuan Tyre and Rubber Co., Ltd. Liquor products 265,486.73 1,356,672.57
Sichuan An Shi Ji Supply Chain Management Co.,
Liquor products 254,910.61 1,469,515.07
Ltd.
Sichuan Push Acetati Company Limited Raw materials, etc. 56,833.55 17,958,510.06
Glass bottles, paper,
Sichuan Yibin Global Group Tianwo Trade Co.,
industrial sodium 48,054.66 17,429,899.65
Ltd.
carbonate, etc.
Yibin Jinlong Trade Development Co., Ltd. Mixed grains, rice bran 3,458,626.32 3,871,702.12
Yibin Wucai Packaging Co., Ltd. Liquor products 44,573,505.04
Sichuan Yibin Push Group Co., Ltd. Plastics 12,277,424.74
WuLiangYe Group Health Liquor Co., Ltd. Yibin.
Liquor products 3,320,666.38
Sichuan
Sichuan Linhu Tea Industry Co., Ltd. Liquor products 1,221,238.94
Other miscellaneous sales to related parties 6,124,646.14 7,618,094.91
Total 1,959,971,840.22 2,733,005,245.53
Notes to the related-party transactions involving sale of goods/rendering of services:
Note 1: On 1 January 2021, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered into the
Export Commodities Purchase and Sales Agreement. According to the Agreement, Wuliangye Group I&E shall
give the Company prior written notice of specific requirements for specification, model, packaging, anti-
counterfeit label, quantity, and delivery term of the Wuliangye series products according to the demands of the
international market, and prepay 60% of the purchase price to the Company. The Company shall organize the
production and supply Wuliangye series liquor products in a timely manner according to the export demands of
Wuliangye Group I&E. Due to some factors such as the change of the exchange rate, the price that the Company
charges for the agreed products supplying to Wuliangye Group I&E is floating price. The Agreement is valid
from 1 January 2021 to 31 December 2023.
Note 2: On 22 December 2020, the Company and Sichuan Putian Packaging Co., Ltd. entered into the
Framework Contract. Sichuan Putian Packaging Co., Ltd. procures bulk chemical materials, packaging products
and other materials from the Company for production and operation. Refer to corresponding purchases and sales
contract for details on sales of goods, unit, quantity, and amount. The product price is the factory price in lump
sum, including the factory price of materials, packing expenses, and various testing fees of the material, various
risks, profits, taxes (utilizing the tax rate adjusted by the country) and other expenses. If delivery is requested,
extra expenses such as the freight charge, insurance expense and delivery expense are needed based on the
factory price. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 3: On 1 January 2021, the Company and Sichuan Yibin Global Group Co., Ltd. entered into the
Agreement. Sichuan Yibin Global Group Co., Ltd. procures glass bottles and so on from the Company. The
pricing principle is as it is agreed in the contract, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 4: The Company and Chengdu Push Medical Plastics Packaging Co., Ltd. entered into the Framework
Contract and Related-Party Transaction Framework Agreement. Chengdu Push Medical Plastics Packaging Co.,
Ltd. procures bulk chemical materials, packaging products and other materials from the Company for production
and operation. Please refer to corresponding purchases and sales contract for details on sales of goods, unit,
quantity, and amount. The product price is the factory price in lump sum, including the factory price of materials,
packing expenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
adjusted by the country) and other expenses. If delivery is requested, extra expenses such as the freight charge,
insurance expense and delivery expense are needed based on the factory price. The Agreement is valid from 1
January 2021 to 31 December 2023.
Note 5: The Company and Sichuan Nongwu E-commerce Co., Ltd. entered into the Agreement. Sichuan
Nongwu E-commerce Co., Ltd. procures Wuliang Nongxiang wine from the Company, and the specific
purchases and sales demand may be determined according to the orders by the two parties. The Agreement is
valid from 1 January 2021 to 31 December 2023.
Note 6: On 1 September 2020, the Company and Sichuan Yibin Wuliangye Group Ecological Brewery and
Marketing Co., Ltd. entered into the Base Wine Purchase Agreement. According to the market demand, Sichuan
Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. put forward specific requirements for the
quantities, delivery date and so on of the agreed products in advance. Then, the Company supplies the agreed
products to it based on its demand for production and operation. For each actual supply of the agreed products,
the actual settle quantity should be the quantity determined by both parties, and the price of the agreed products
shall strictly obey the market price with the delivery after payment. The Agreement is valid from 1 January 2021
to 31 December 2023.
Note 7: On 15 December 2020, the Company and Yibin Wucai Packaging Co., Ltd. entered into the
Agreement. Yibin Wucai Packaging Co., Ltd. procures finished liquor and others from the Company. The pricing
principle is as it is agreed in the contract, and the specific purchases and sales demand may be determined
according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
(2) Leases between the Company and related parties
The Company as the lessor:
Unit: RMB
Lease income
Type of the Lease income recognized in
Lessee recognized in the
leased asset the prior period
current period
Sichuan Yibin Push Building Materials Co., Ltd. Warehouses 657,289.27 817,008.36
Sichuan Yibin Global Group Tianwo Trade Co., Buildings and
Ltd. constructions
Buildings and
Anji Logistic Group Co., Ltd. Sichuan 169,268.48
constructions
Sichuan Putian Packaging Co., Ltd. Warehouses 63,048.44 74,109.62
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Buildings and
Sichuan constructions
Sichuan Yibin Push Intelligent Technology Co.,
Warehouses 60,317.51
Ltd.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
The Company as the lessee:
Unit: RMB
Lease expense on short-term leases
Type of and leases of low-value assets Variable lease payments not included
Lease payments Interest expense on lease liabilities Addition of right-of-use assets
the accounted with a simplified in lease liabilities (if applicable)
Lessor
leased approach (if applicable)
asset
Chengdu Huayu
Glass Equipm
Manufacturing Co., ent
Ltd.
Anji Logistic
Vehicle
Group Co., Ltd. 126,517.41
s
Sichuan
Anji Logistic
Wareho
Group Co., Ltd. 490,000.11 716,376.87 61,860,729.58 130,597,335.81 23,103,665.50 19,603,124.18 757,254.25 342,054.67 34,272,706.59
uses
Sichuan
Anji Logistic
Group Co., Ltd. Wareho
(Chengdu, Sichuan uses
Branch)
Sichuan An Shi Ji
Supply Chain Wareho
Management Co., uses
Ltd.
Sichuan Putian Equipm
Packaging Co., Ltd. ent
Sichuan Yibin
Global Group
Plant 2,742,857.12 2,057,142.84 210,054.49 7,847,140.12
Tianwo Trade Co.,
Ltd.
Sichuan Yibin
Wareho
Global Group Co., 2,989,811.34 1,494,905.67 84,675.42 61,061.66 5,827,142.31
uses
Ltd.
Sichuan Yibin Licai Buildin
Group Co., Ltd. gs and
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
constru
ctions
(note 3)
Buildin
gs and
Sichuan Yibin Push
constru 6,715,238.08 6,715,238.10 446,482.91 1,189,835.59
Group Co., Ltd.
ctions
(note 4)
Sichuan Yibin Push Wareho
Group Co., Ltd. uses
Sichuan Yibin Push Equipm
Auto Parts Co., Ltd. ent
Sichuan Yibin
Wuliangye Group Vehicle
Anji Logistic Co., s
Ltd.
WuLiangYe Group
Wareho
Health Liquor Co., 834,227.59 834,227.59 53,826.65 26,243.24 2,408,821.15
uses
Ltd. Yibin. Sichuan
Buildin
Sichuan Yibin gs and
Wuliangye Group constru 1,522,182.20 29,255,400.00 29,255,400.00 1,533,162.69 2,485,292.89 83,200,577.90
Co., Ltd. ctions
(note 2)
Sichuan Yibin
Land
Wuliangye Group 296,608,546.40 296,608,546.40 15,544,110.07 25,197,390.30 843,537,258.68
(note 1)
Co., Ltd.
Yibin Global
Photoelectric
Energy Wareho
Conservation uses
Technology Co.,
Ltd.
Yibin Global
Photoelectric
Energy Equipm
Conservation ent
Technology Co.,
Ltd.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Buildin
Yibin Push Linko
gs and
Technology Co., 907,200.00 897,933.34 1,885,428.57 1,885,428.57 68,515.70 120,978.03 1,235,272.20
constru
Ltd.
ctions
Yibin Push Linko
Wareho
Technology Co., 2,219,398.11 2,024,924.51
uses
Ltd.
Yibin Push Assets
Wareho
Management Co., 4,128,446.44 3,735,473.53 7,751,407.36 146,943.35 427,923.75 4,718,715.17 0.00
uses
Ltd.
Sun Display Co., Wareho
Ltd. uses
Sichuan Andaxin Wareho
Logistics Co., Ltd. uses
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Notes to the leases between the Company and related parties:
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into
three Land Lease Agreements, according to which Wuliangye Group leased five plots of lands (Wujiaba Land
Parcel, Zongchang Land Parcel, Ziyan Land Parcel I, Fuzao Land Parcel, and Zhuchangqu Land Parcel) with an
area of 2,315,349.08 square meters, Guifei Land Parcel, Old Summer Palace Land Parcel I and II, Nanxi Land
Parcel I, II, and III, Zhuchangqu Land Parcel with an area of 725,587.75 square meters, and 1,000 mu of land (an
area of 666,670.00 square meters) in the north side of Hongba Road owned by it to the Company. The annual
rents are RMB185,227,900, RMB5,804,700and RMB53,333,600, respectively, totaling RMB296,608,500. The
lease term is from 1 January 2021 to 31 December 2023.
Land price criterion:
The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. is formulated
with reference to the land lease criterion of previous years and in accordance with the Reply of Yibin Land
Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of the Land Lease Criterion
(YGTH [2010] No. 53, 12 March 2010), which states that "the rent of RMB50 to RMB110 per square meter per
year for the industrial land in this area is consistent with prevailing land price of Yibin". The Company and
Wuliangye Group determine the rent of leased land as RMB80 per square meter per year through mutual
agreement.
Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into
the Operation and Management Areas Lease Agreement, according to which Wuliangye Group leases part of the
operation and management areas (including the office building, multi-function pavilion, etc.) owned by it to the
Company. The leased area is 27,121.32 square meters, with the annual rent of RMB29,255,400. The lease term is
from 1 January 2021 to 31 December 2023.
Note 3: On 19 November 2020, the Company and Sichuan Yibin Licai Group Co., Ltd. entered into the
Factory Building Lease Contract, according to which Licai Group leases the high-end product workshop building
(1 F-5 F) at its headquarter to the Company. The leased area is 20,557.30 square meters, with the annual rent (tax
inclusive) of RMB16,288,386. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 4: On 1 January 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the
Operation and Management Areas Lease Agreement, according to which Push Group leases its office building
located at No. 150, West Minjiang Road, Yibin and all office equipment in the office building to the Company.
The leased area is 6,536.70 square meters, with the annual rent of RMB7.051 million. The lease term is from 1
January 2021 to 31 December 2023.
(3) Guarantees between the Company and related parties
There were no guarantees between the Company and related parties during the Reporting Period.
(4) Loans between the Company and related parties
There were no loans between the Company and related parties during the Reporting Period.
(5) Asset transfers and debt restructuring involving related parties
There were no asset transfers or debt restructuring involving related parties during the Reporting Period.
(6) Remuneration of key management
Unit: RMB’0,000
Item 2022 2021
Remuneration of key management 1,304.21 1,407.67
(7) Other related-party transactions
a) Procurement of equipment, etc.
Unit: RMB
Related party Content of transaction 2022 2021
Trademark and logo royalties
Sichuan Yibin Wuliangye Group Co., Ltd. 862,086,498.68 739,709,867.75
(Note 1)
Comprehensive service fee
Sichuan Yibin Wuliangye Group Co., Ltd. 77,670,062.58 79,499,446.08
(Note 2)
Sichuan Yibin Push Mold Co., Ltd. Procurement of equipment 4,345,132.74
Yibin An Shi Ji Auto Service Co., Ltd. Procurement of transportation 15,450,000.00
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
equipment
Yibin An Shi Ji Auto Service Co., Ltd. (Chengdu Procurement of transportation
Branch) equipment
Procurement of transportation
Yibin Jichi Automobile Sales Service Co., Ltd. 11,861,194.56 5,075,292.71
equipment
Procurement of equipment and
Push Information & Automation (Chengdu) Co., Ltd. 7,176,823.71 5,525,663.76
software systems
Sichuan Yibin Push Intelligent Technology Co., Ltd. Procurement of equipment 6,570,295.36 6,506,484.48
Chongqing PUSH POWER Technology Co., Ltd. Procurement of equipment 167,433.63
Yibin Global Photoelectric Energy Conservation
Procurement of equipment 142,477.88
Technology Co., Ltd.
Chengdu Huayu Glass Manufacturing Co., Ltd. Procurement of equipment 2,298.01
Sichuan Yibin Push Group Co., Ltd. Procurement of equipment 6,207,106.20
Sichuan Yibin Wuliangye Group Co., Ltd. Land use rights 814,316.92
Sichuan Yibin Wuliangye Group Co., Ltd. Procurement of equipment 339,022.37
Procurement of transportation
Yaohua (Yibin) Glass Co., Ltd. 32,998.25
equipment
Sun Display Co., Ltd. Sale of equipment 5,843.81
Yibin Jichi Automobile Sales Service Co., Ltd. Sale of equipment 849,557.52
Sale of transportation
Sichuan Yibin Push Mold Co., Ltd. 423,194.48
equipment
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into
the Trademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses to the Company
the nonexclusive right of use of one factory emblem, the nonexclusive right of use of seven trademarks,
exclusive right of use of 182 trademarks, and unpaid exclusive right of use of eight trademarks. The royalty shall
be paid by the following means: a) The royalty of "factory emblem" shall be paid at 1.27% of the annual sales
revenue from all liquor products using the factory emblem; b) no royalty shall be paid for trademark of liquor
products of which the annual sales revenue is less than 50 tons, and royalty of trademark of liquor products sold
by 50 tons (inclusive) or more shall be calculated by the total sales volume. Royalties of trademark shall be paid
by the following means: Trademark royalty of products with selling price at RMB30,000 per ton and above shall
be RMB1,500 per ton; and that of products with selling price at RMB12,000 per ton and above but below
RMB30,000 per ton shall be RMB1,400 per ton; that of products with selling price below RMB12,000 shall be
RMB1,300 per ton. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into
the Comprehensive Service Agreement, according to which the latter shall provide the agreed service to the
Company by the quantity agreed by both parties from time to time. Both parties measure the services at the
actual cost, and the rate of increase of the unit cost price compared with the previous year shall be no more than
the inflation index of previous year plus 5% or the growth factor of consumer price index of Sichuan Province,
whichever is lower. The increase shall not be subject to the above limit when the service scope is expanded, and
the service shall still be measured at the actual cost of provision of the service. The Agreement is valid from 1
January 2021 to 31 December 2023.
b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co., Ltd.
On 15 April 2022, the Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (hereinafter
referred to as "Wuliangye Group Finance") entered into the Financial Service Agreement. The main contents are
loan and deposit services. As such, both parties agreed to continue to implement in 2022 ―the Financial Service
Agreement signed between the Company and Wuliangye Group Finance on 2 April 2021‖, i.e. the daily balance
of deposits in 2022 was no more than RMB47.9 billion, and the daily balance of loans in 2022 was no more than
RMB10 billion.
The total deposits of the Company with Wuliangye Group Finance was RMB35,044,331,678.13 at the end
of the period; Sichuan Yibin Wuliangye Group Co., Ltd. issued the Commitment Letter to the Company,
assuring that relevant deposits and loans of the Company with Wuliangye Group Finance are safe; the current
interest income is RMB909,869,881.32 in total; Wuliangye Group Finance discounted bank acceptance notes of
RMB860,000,000.00 for the Company during the current period (annual interest rate for discounting: 1.85%;
paid interest for discounting: RMB6,417,986.25; undue bank acceptance notes as at 31 December 2022:
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
RMB581,000,000.00); and Wuliangye Group Finance issued bank acceptance notes of RMB12,000,000.00 for
the Company during the current period (all undue as at 31 December 2022).
c) Related-party transactions with Yibin City Commercial Bank Co., Ltd.
The total deposits of the Company with Yibin City Commercial Bank Co., Ltd. was RMB4,819,054,254.00
at the end of the period; the current interest income is RMB33,498,295.65 in total; Yibin City Commercial Bank
Co., Ltd. issued bank acceptance notes of RMB240,678,000.00 for the Company during the current period
(undue bank acceptance notes as at 31 December 2022: RMB110,758,000.00).
(1) Amounts due from related parties
Unit: RMB
Closing balance Opening balance
Allow Allow
ance ance
Item Related party for for
Gross amount doubtf Gross amount doubtf
ul ul
accou accou
nt nt
Account
Sichuan Putian Packaging Co., Ltd. 9,704,093.72 12,850,871.27
receivable
Account Chengdu Huayu Glass Manufacturing Co.,
receivable Ltd.
Account
Yibin Grace Fiber Industry Co., Ltd. 1,667,887.25
receivable
Account Yibin Tianyi New Material Technology Co.,
receivable Ltd.
Account
Yibin Puyi Automobile Technology Co., Ltd. 260,687.92
receivable
Account
Yi Bin Jia Mei Smartpackaging Co., Ltd. 254,828.61 57,854.06
receivable
Account
Sichuan Linhu Tea Industry Co., Ltd. 223,910.00
receivable
Account
Anji Logistic Group Co., Ltd. Sichuan 203,114.35
receivable
Account
Yibin Paper Industry Co., Ltd. 167,965.83
receivable
Account Sichuan Yibin Wuliang Pharmaceutical Co.,
receivable Ltd.
Account
Sichuan Shuzhan New Materials Co., Ltd. 134,578.48
receivable
Account
Sichuan Yibin Push Auto Parts Co., Ltd. 98,059.08 129,813.03
receivable
Account
Wuming Tea Industry Holding Co., Ltd. 82,148.00
receivable
Account Sichuan Yibin Wuliangye Group Ecological
receivable Brewery and Marketing Co., Ltd.
Account
Sichuan Nongwu E-commerce Co., Ltd. 46,800.00
receivable
Account Chengdu Push Medical Plastics Packaging
receivable Co., Ltd.
Account WuLiangYe Group Health Liquor Co., Ltd.
receivable Yibin. Sichuan
Account
Yibin Chuanhong Tea Group Co., Ltd. 84,455.50
receivable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Sacred Mountain White Magnolia Industrial
Prepayment 18,900,000.00
Co., Ltd., Sichuan
Prepayment Anji Logistic Group Co., Ltd. Sichuan 827,429.00 827,429.00
Prepayment Yibin An Shi Ji Auto Service Co., Ltd. 238,939.83 4,528.59
Sichuan Yibin Push Intelligent Technology
Prepayment 155,255.03
Co., Ltd.
Sichuan Yibin Global Group Tianwo Trade
Prepayment 30,000.00
Co., Ltd.
Prepayment Wuming Tea Industry Holding Co., Ltd. 7,245.00 1,560,000.00
Prepayment Sichuan Yibin Push Group Co., Ltd. 24,826,236.07
Chengdu Push Medical Plastics Packaging
Prepayment 4,713,700.00
Co., Ltd.
Sacred Mountain Molin Group Co., Ltd. Si
Prepayment 1,761,061.95
Chuan
Monetary Sichuan Yibin Wuliangye Group Finance Co.,
assets Ltd.
Monetary
Yibin City Commercial Bank Co., Ltd. 10,804,085.47
assets
Other Sichuan Yibin Wuliangye Group Anji
receivable Logistic Co., Ltd.
Other
Sichuan Putian Packaging Co., Ltd. 260,000.00 260,000.00
receivable
Other Chengdu Huayu Glass Manufacturing Co.,
receivable Ltd.
Other
Anji Logistic Group Co., Ltd. Sichuan 160,000.00 130,000.00
receivable
Other Yibin Global Photoelectric Energy
receivable Conservation Technology Co., Ltd.
Other Yibin Wuliangye Ecological Brewing Co.,
receivable Ltd.
Other
Sichuan Linhu Tea Industry Co., Ltd. 69,000.00 45,000.00
receivable
Other
Sichuan Yibin Wuliangye Group Co., Ltd. 56,200.00
receivable
Other
Sichuan Shuzhan New Materials Co., Ltd. 15,000.00 15,000.00
receivable
Other
Sichuan Yibin Push Auto Parts Co., Ltd. 5,000.00
receivable
Other
Sichuan Nongwu E-commerce Co., Ltd. 2,000.00
receivable
The amounts related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. and Yibin City Commercial
Bank Co., Ltd. in this table represented the interest on time deposits accrued on an accrual basis, and the closing
balances were presented in monetary assets.
(2) Amounts due to related parties
Unit: RMB
Item Related party Closing gross amount Opening gross amount
Account Sichuan Yibin Global Group Tianwo Trade Co.,
payable Ltd.
Account Sichuan Yibin Push Intelligent Technology Co.,
payable Ltd.
Account
Chengdu Huayu Glass Manufacturing Co., Ltd. 723,458.44 897,056.30
payable
Account Sichuan Yibin Wuliangye Group Anji Logistic
payable Co., Ltd.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Account
Yibin Push Assets Management Co., Ltd. 313,182.65
payable
Account Yibin Global Energy Conservation Service Co.,
payable Ltd.
Account
Sichuan Global Insulator Co., Ltd. 209,728.58
payable
Account Sacred Mountain White Magnolia Industrial Co.,
payable Ltd., Sichuan
Account
Sichuan Putian Packaging Co., Ltd. 37,096.80 37,096.80
payable
Account
Wuming Tea Industry Holding Co., Ltd. 35,588.80
payable
Account
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 11,035.00
payable
Account
Sichuan Yibin Push Group Co., Ltd. 6,385,676.78
payable
Account
Yi Bin Jia Mei Smartpackaging Co., Ltd. 4,050,000.00
payable
Account Yibin Global Photoelectric Energy Conservation
payable Technology Co., Ltd.
Account
Anji Logistic Group Co., Ltd. Sichuan 405,066.80
payable
Account
Yibin An Shi Ji International Logistics Co., Ltd. 73,959.23
payable
Account Sacred Mountain Molin Group Co., Ltd. Si
payable Chuan
Account
Sichuan Huansheng Pharmacy Co., Ltd. 1,310.05
payable
Advance from WuLiangYe Group Health Liquor Co., Ltd. Yibin.
customer Sichuan
Contract
Yibin Wuliangye Group I&E Co., Ltd. 445,542,725.66 371,681.42
liability
Contract
Yibin Jinlong Trade Development Co., Ltd. 59,426,283.57
liability
Contract
Yibin Xianghe Aviation Service Co., Ltd. 33,329,766.37
liability
Contract Sichuan Yibin Wuliangye Group Ecological
liability Brewery and Marketing Co., Ltd.
Contract
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 1,536,665.16 17,410,387.61
liability
Contract Sacred Mountain Molin Group Co., Ltd. Si
liability Chuan
Contract
Sichuan Shuzhan New Materials Co., Ltd. 709,442.48 524,403.54
liability
Contract
Yibin Wuliangye Ecological Brewing Co., Ltd. 675,562.97 675,562.97
liability
Contract Sichuan An Shi Ji Supply Chain Management
liability Co., Ltd.
Contract
Sichuan Nongwu E-commerce Co., Ltd. 453,537.40 741,808.36
liability
Contract
Yibin Development Holding Group Co., Ltd. 369,000.00 326,548.67
liability
Contract
Yibin Jinxilai Changxin Industry Co., Ltd. 214,099.77
liability
Contract
Yi Bin Jia Mei Smartpackaging Co., Ltd. 120,325.42
liability
Contract Sichuan Yibin Push Auto Parts Co., Ltd. 81,505.00
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
liability
Contract
Anji Logistic Group Co., Ltd. Sichuan 50,286.24 16,579.99
liability
Contract WuLiangYe Group Health Liquor Co., Ltd. Yibin.
liability Sichuan
Contract
Sichuan Yibin Licai Group Co., Ltd. 35,745.13
liability
Contract
Yibin City Commercial Bank Co., Ltd. 15,313.27
liability
Contract
Wuming Tea Industry Holding Co., Ltd. 9,000.00
liability
Contract
Sichuan Tyre and Rubber Co., Ltd. 230.09
liability
Contract
Yibin Lingang Business Service Co., Ltd. 53.10
liability
Contract
Sichuan Yibin Push International Co., Ltd. 1,435,659.19
liability
Contract
Yibin An Shi Ji International Logistics Co., Ltd. 184,290.39
liability
Contract
Sichuan Putian Packaging Co., Ltd. 112,938.05
liability
Contract Sichuan Yibin Wuliangye Group Anji Logistic
liability Co., Ltd.
Note payable Yi Bin Jia Mei Smartpackaging Co., Ltd. 9,190,015.55
Note payable Sichuan Putian Packaging Co., Ltd. 70,000.00
Other payable Yibin Chuanhong Tea Group Co., Ltd. 3,206,818.98
Sichuan Yibin Push Intelligent Technology Co.,
Other payable 2,356,447.86 1,674,898.82
Ltd.
Other payable Anji Logistic Group Co., Ltd. Sichuan 1,615,588.00
Sacred Mountain Molin Group Co., Ltd. Si
Other payable 1,315,988.00 440,254.40
Chuan
Push Information & Automation (Chengdu) Co.,
Other payable 1,313,400.40 1,356,900.44
Ltd.
Other payable Yibin An Shi Ji Auto Service Co., Ltd. 872,925.00 20,000.00
Other payable Sichuan Putian Packaging Co., Ltd. 712,872.00 1,838,478.00
Other payable Yibin Wuliangye Fund Management Co., Ltd. 534,000.00
Chengdu Push Medical Plastics Packaging Co.,
Other payable 217,761.64 217,761.64
Ltd.
Other payable Yibin Jinxiuyuan Landscaping Co., Ltd. 210,778.80
Other payable Sichuan Nongwu E-commerce Co., Ltd. 200,000.00 100,000.00
Sichuan Gloport Investment and Development
Other payable 194,572.40
Group Co., Ltd.
Other payable Yibin An Shi Ji International Logistics Co., Ltd. 150,000.00 731,184.30
Other payable Yibin Xianghe Aviation Service Co., Ltd. 150,000.00
Sichuan Yibin Wuliangye Group Anji Logistic
Other payable 137,790.43 137,790.43
Co., Ltd.
Other payable Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 100,000.00 111,500.00
Other payable Yi Bin Jia Mei Smartpackaging Co., Ltd. 60,000.00 60,000.00
Yibin Global Photoelectric Energy Conservation
Other payable 50,004.21 5,040.84
Technology Co., Ltd.
Other payable Sichuan Yibin Push Building Materials Co., Ltd. 50,000.00 50,000.00
Other payable Yibin Development Holding Group Co., Ltd. 50,000.00 50,000.00
Other payable Sichuan Tyre and Rubber Co., Ltd. 50,000.00 50,000.00
Other payable Yibin Tianchang Logistics Co., Ltd. 50,000.00
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Other payable Cowin Automobile Co., Ltd. 50,000.00
Yibin Global Energy Conservation Service Co.,
Other payable 49,000.00 49,000.00
Ltd.
Other payable Yibin Jinlong Trade Development Co., Ltd. 30,000.00
Sichuan Yibin Global Group Tianwo Trade Co.,
Other payable 20,000.00 20,000.00
Ltd.
Other payable Wuming Tea Industry Holding Co., Ltd. 20,000.00 20,000.00
Other payable Chongqing PUSH POWER Technology Co., Ltd. 18,920.00
Sacred Mountain White Magnolia Industrial Co.,
Other payable 9,200.00
Ltd., Sichuan
Other payable Yibin Jindun Security Service Co., Ltd. 6,000.00
Yibin Grace Mechanical and Electrical
Other payable 5,000.00
Engineering Co., Ltd.
Yibin Changsheng Engineering Management Co.,
Other payable 2,000.00
Ltd.
Other payable Yibin Push Linko Technology Co., Ltd. 166,531.03
Other payable Yibin Push Assets Management Co., Ltd. 85,204.00
Other payable Sichuan Linhu Tea Industry Co., Ltd. 10,000.00
Other payable Sichuan Shuzhan New Materials Co., Ltd. 3,000.00
Other payable Sichuan Andaxin Logistics Co., Ltd. 1,000.00
XII Undertakings and Contingencies
The Company had no significant undertakings which need to be disclosed during the Reporting Period.
The Company had no significant contingencies which needed to be disclosed during the Reporting Period.
XIII Post-Balance Sheet Date Events
The Company had no important non-adjustment matters which need to be disclosed.
As resolved by the 4th Meeting in 2023 of the 6th Board of Directors of the Company held on 27 April
distributed to shareholders, with no bonus issue from capital reserves. This plan shall be subject to the approval
of a general meeting of shareholders.
The Company has no other post-balance sheet date events which need to be disclosed.
XIV Other Significant Matters
The Company obtained the reply of the State-owned Assets Supervision and Administration Commission of
the People’s Government of Yibin City on the Plan of Establishing the Corporate Annuity Plan of the Company
(YGZW [2018] No. 221) on 14 September 2018, and had filed with the Department of Human Resources and
Social Security of Sichuan Province on 30 October 2018.
Participants of the corporate annuity plan of the Company include: (1) Employees who have entered into
labor contracts with the Company; (2) employees who participate in the basic old-age insurance system for
enterprise employees according to the law and perform the obligation of payment; and (3) employees who are on
duty and registered (excluding the probation period) will participate the corporate pension plan on a voluntary
basis.
Expenses for the corporate annuities shall be shared by the Company and the employees. Contribution by an
employee shall be 3% of the contribution base of such employee, and the monthly contribution base of the
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
employee shall be the average wage in the previous year. Total amount of contribution by the Company shall be
employees at 3% of the contribution base of the employees, while the remaining 2% shall be distributed to the
corporate account as incentives for rewarding personnel who make significant contributions to the Company and
for redistribution to employees of the Company.
The Company has no other businesses than liquor products which have significant impact on the operating
result. The Company has no segment information that needs to be disclosed since revenue of the Company is
mainly generated within China and the assets are also located within China.
XV Notes to Major Line Items in the Financial Statements of the Company as the Parent
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 2,126,718,123.00 1,153,154,780.16
Other receivables 6,335,913,181.66 6,674,621,403.75
Total 8,462,631,304.66 7,827,776,183.91
(1) Dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Dividends receivable from subsidiaries 2,126,718,123.00 1,153,154,780.16
Total 2,126,718,123.00 1,153,154,780.16
□ Applicable ? Not applicable
(2) Other receivables
Unit: RMB
Nature Closing gross amount Opening gross amount
Current account 6,333,318,770.49 6,671,120,101.42
Security deposits 5,000,000.00 5,000,000.00
Cash float 101,301.29 5,202.65
Total 6,338,420,071.78 6,676,125,304.07
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for doubtful 12-month Lifetime expected credit Lifetime expected credit Total
accounts expected credit loss (without credit loss (with credit
loss impairment) impairment)
Balance as at 1 January
Balance as at 1 January
period
- Transferred to Stage 2
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
- Transferred to Stage 3
- Transferred back to
Stage 2
- Transferred back to
Stage 1
Established in the current
period
Reversed in the current
period
Charged off in the current
period
Written off in the current
period
Other changes
Balance as at 31
December 2022
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
Other receivables presented by aging:
Unit: RMB
Aging Gross amount
Within 1 year (inclusive) 4,118,461,478.12
More than 3 years 1,855,535,256.00
More than 5 years 1,626,726,105.83
Total 6,338,420,071.78
Allowances for doubtful accounts in the current period:
Unit: RMB
Changes in the current period
Closing
Category Opening balance Recovered Writte
Established Others balance
or reversed n off
Other receivables for which allowances for
doubtful accounts are established on an individual
basis
Other receivables for which allowances for
doubtful accounts are established based on the 1,503,900.32 1,002,989.80 2,506,890.12
credit risk chacteristic group
Total 1,503,900.32 1,002,989.80 2,506,890.12
The Company as the parent had no other receivables actually written off in the Reporting Period.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Unit: RMB
As % of the Closing balance
Nature of closing balance of of allowances
Entity Closing balance Aging
account total other for doubtful
receivables accounts
Sichuan Yibin
Current
Wuliangye Distillery 3,992,817,736.97 Within 1year 62.99%
account
Co., Ltd.
Yibin Jiangjiu Liquor Current 1-5 years; more than
Co., Ltd. account 5 years
Sichuan Yibin
Wuliangye
Current Within 2 years; more
Environmental 181,069,526.20 2.86%
account than 5 years
Protection Industry
Co., Ltd.
Yibin Wuliangye
Current
Xianlin Ecological 129,206,278.05 More than 5 years 2.04%
account
Liquor Co., Ltd.
Housing and Urban-
Rural Development Security
Bureau of Cuiping deposit
District, Yibin City
Total 6,338,315,209.13 100.00% 2,500,000.00
Unit: RMB
Closing balance Opening balance
Imp Imp
airm airm
Item ent ent
Gross amount Carrying amount Gross amount Carrying amount
allo allo
wan wan
ces ces
Investments in
subsidiaries 11,416,902,138.11 11,416,902,138.11 11,416,902,138.11 11,416,902,138.11
Investments in associates
and joint ventures 1,966,914,053.94 1,966,914,053.94 1,896,707,464.47 1,896,707,464.47
Total 13,383,816,192.05 13,383,816,192.05 13,313,609,602.58 13,313,609,602.58
(1) Investments in subsidiaries
Unit: RMB
Increase/decrease in the
current period Closi
Inc De Im ng
rea cre pai balan
Opening balance Closing balance ce of
Investee se ase rm
(carrying amount) Ot (carrying amount)
in in ent impai
her rment
inv inv all
s
est est ow allow
me me anc ance
nt nt e
Sichuan Yibin Wuliangye Distillery Co., Ltd. 5,069,784,707.36 5,069,784,707.36
Yibin Wuliangye Liquor Sales Co., Ltd. 190,000,000.00 190,000,000.00
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Sichuan Yibin Wuliangye Supply and Marketing Co.,
Ltd.
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00 50,000,000.00
Sichuan Yibin Wuliangye Environmental Protection
Industry Co., Ltd.
Yibin Changjiangyuan Liquor Co., Ltd. 20,000,000.00 20,000,000.00
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. 2,700,000.00 2,700,000.00
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 49,374,409.93 49,374,409.93
Sichuan Yibin Plastic Packaging Materials Company
Limited
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. 108,922,175.18 108,922,175.18
Sichuan Yibin Global Gelasi Glass Manufacturing Co.,
Ltd.
Sichuan Yibin Push Group 3D Co., Ltd. 240,419,229.32 240,419,229.32
Sichuan Yibin Wuliangye Investment (Consulting) Co.,
Ltd.
Wuliangye Dashijie (Beijing) Trade Co., Ltd. 323,000,000.00 323,000,000.00
Handan Yongbufenli Liquor Co., Ltd. 255,000,000.00 255,000,000.00
Huaibin Wubin Consultation Service Co., Ltd. 199,675,708.13 199,675,708.13
Wuguchun Jiu Ye Co., Henan. China 55,467,741.39 55,467,741.39
Sichuan Wuliangye Culture Tourism Development Co.,
Ltd.
Yibin Wuliangye Creart Co., Ltd. 45,000,000.00 45,000,000.00
Sichuan Wuliangye NongXiang Baijiu Co., Ltd. 95,000,000.00 95,000,000.00
Sichuan Wuliangye New Retail Management Co., Ltd. 90,000,000.00 90,000,000.00
Total 11,416,902,138.11 11,416,902,138.11
(2) Investment in associates and joint ventures
Unit: RMB
Increase/decrease in the current period
Ad
jus Clos
tm ing
ent bala
De Ot Im
to nce
cre her pai
oth of
Opening balance ase Return on eq rm Closing balance
Investee er Ot imp
(carrying amount) Increase in in investment uit Declared cash ent (carrying amount)
co her airm
investment inv recognized using y dividends or profit all
mp s ent
est the equity method cha ow
reh allo
me ng anc
ens wan
nt es e
ive ce
inc
om
e
I Joint ventures
II Associates
Oriental Outlook
Media Co., Ltd. 25,565,938.31 563,199.61 26,129,137.92
Sichuan Yibin
Wuliangye
Group Finance 1,865,633,396.55 87,543,010.97 23,038,080.00 1,930,138,327.52
Co., Ltd.
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Beijing
Zhongjiuhuicui
Education and 5,508,129.61 5,625,000.00 -486,541.11 10,646,588.50
Technology Co.,
Ltd.
Sub-total 1,896,707,464.47 5,625,000.00 87,619,669.47 23,038,080.00 1,966,914,053.94
Total 1,896,707,464.47 5,625,000.00 87,619,669.47 23,038,080.00 1,966,914,053.94
Unit: RMB
Item
Revenue Cost Revenue Cost
Other operations 6,072.98 3,997.51
Total 6,072.98 3,997.51
Unit: RMB
Item 2022 2021
Return on long-term equity investments
measured using the cost method
Return on long-term equity investments
measured using the equity method
Income from the disposal of long-term
equity investments
Total 18,799,779,256.49 17,986,096,250.69
XVI Supplementary Information
? Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets 2,282,237.38
Government grants through profit or loss (exclusive of government
grants consistently given in the Company’s ordinary course of business 100,421,839.81
at fixed quotas or amounts as per governmental policies or standards)
Capital occupation charges on non-financial enterprises that are
recognized in profit or loss
Non-operating income and expense other than the above -62,917,173.08
Less: Income tax effects 8,377,774.30
Non-controlling interests effects 3,927,171.59
Total 27,924,688.44 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
Annual Report 2022 of Wuliangye Yibin Co., Ltd.
Weighted average ROE EPS
Profit in the Reporting Period
(%) Basic EPS (RMB/share) Diluted EPS (RMB/share)
Net profit attributable to the
Company’s ordinary shareholders
Net profit attributable to the
Company’s ordinary shareholders 25.26% 6.869 6.869
before exceptional gains and losses
International Financial Reporting Standards (IFRS) and foreign accounting standards
(1) Net profit and equity under CAS and IFRS
□ Applicable ? Not applicable
(2) Net profit and equity under CAS and foreign accounting standards
□ Applicable ? Not applicable
(3) Accounting data differences under CAS and IFRS and foreign accounting standards. Where any
reconciliation is made to the data audited by an overseas independent auditor, the name of the overseas
independent auditor shall be provided.
None.
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