Luzhou Laojiao Co., Ltd.
August 2023
Section I Important Statements, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and senior management guarantee
that the information presented in this report is free of any false records, misleading statements or
material omissions, and shall individually and together be legally liable for truthfulness, accuracy and
completeness of its contents.
Liu Miao, responsible person for the Company, Xie Hong, responsible person for accounting work and
Yan Li, responsible person for the Company’s financial affairs (Accounting Supervisor) have warranted
that the financial statements in this report are true, accurate and complete.
Other directors attended the board meeting to deliberate this report by themselves except the following
directors.
Position of directors who
Name of directors who did not Reason for not attending
did not attend the meeting Name of deputies
attend the meeting in person the meeting in person
in person
Wang Hongbo Director Work Lin Feng
Ying Hanjie Director Work Liu Miao
Affected by risks, uncertainties and assumptions, the forward-looking statements concerning business
objectives and future plans made in this report based on the subjective assumptions and judgments of
the future policies and economic conditions may be significantly different from the actual results. Such
statements shall not be considered as virtual promises of the Company to investors, and the investors
and relevant persons shall maintain adequate risk awareness and shall understand the differences
between plans, forecasts and commitments.
In this report, the potential risks in the operation of the Company have been disclosed. Investors are
kindly reminded to pay attention to possible investment risks.
The Company has no interim dividend plan, either in the form of cash or stock.
This report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Contents
Documents Available for Reference
responsible person for accounting work and the responsible person for the Company’s financial affairs
(Accounting Supervisor); and
the reporting period.
Definitions
Term Reference Definition
Company, the Company, Luzhou
Refer to Luzhou Laojiao Co., Ltd.
Laojiao
Laojiao Group Refer to Luzhou Laojiao Group Co., Ltd.
XingLu Group Refer to Luzhou XingLu Investment Group Co., Ltd.
State-owned Assets Supervision and Administration
SASAC of Luzhou Refer to
Commission of Luzhou
Huaxi Securities Refer to Huaxi Securities Co., Ltd.
Sales Company Refer to Luzhou Laojiao Sales Co., Ltd.
Brewing Company Refer to Luzhou Laojiao Brewing Co., Ltd.
Section II Company Profile and Key Financial Results
Stock abbreviation Luzhou Laojiao Stock code 000568
Stock exchange where
the shares of the Shenzhen Stock Exchange
Company are listed
Name of the Company 泸州老窖股份有限公司
in Chinese
Abbr. of the Company
name in Chinese (if 泸州老窖
any)
Name of the Company
Luzhou Laojiao Co., Ltd.
in English (if any)
Abbr. of the Company
name in English (if LZLJ
any)
Legal representative Liu Miao
Representative for securities
Secretary of the board
affairs
Name Li Yong Wang Chuan
Luzhou Laojiao Command Center, Nanguang Road, Luzhou City,
Address
Sichuan Province, China
Tel. （0830）2398826 （0830）2398826
Fax （0830）2398864 （0830）2398864
E-mail dsb@lzlj.com dsb@lzlj.com
Whether any change occurred to the registered address, office address and their zip codes, website
address, email address and other contact information of the Company in the reporting period.
? Applicable ? N/A?
No change occurred to the said information in the reporting period, which can be found in the 2022
Annual Report.
Whether any change occurred to the information disclosure and place where the interim report is kept.
? Applicable ? N/A?
No change occurred to the website of the stock exchange, media and other websites designated by
the Company for information disclosure, as well as to the place where the disclosed documents are
kept in the reporting period. The said information can be found in the 2022 Annual Report.
Whether any change occurred to other information in the reporting period.
? Applicable ? N/A?
Whether the Company performed a retroactive adjustment to or restatement of accounting data.
? Yes ? No
H1 2023 H1 2022 Change
Operating revenues (CNY) 14,593,051,774.14 11,664,377,552.94 25.11%
Net profits attributable to
shareholders of the 7,090,426,787.07 5,531,926,340.44 28.17%
Company (CNY)
Net profits attributable to
shareholders of the
Company before non- 7,040,938,575.63 5,496,265,842.50 28.10%
recurring gains and losses
(CNY)
Net cash flows from
operating activities (CNY)
Basic earnings per share
(CNY/share)
Diluted earnings per share
(CNY/share)
Weighted average ROE 18.79% 17.96% 0.83%
Total assets (CNY) 61,524,708,713.71 51,385,481,354.52 19.73%
Net assets attributable to
shareholders of the 35,086,468,059.34 34,207,871,130.03 2.57%
Company (CNY)
accounting standards
prepared under the international and China accounting standards
? Applicable ? N/A?
No such differences for the reporting period.
prepared under the overseas and China accounting standards
? Applicable ? N/A?
No such differences for the reporting period.
? Applicable ? N/A
Unit: CNY
Item Amount Note
Gain or loss from disposal of non-
current assets (including the write-off -477,479.38 See "Section X Note 5.46" for details.
portion of the impairment provision)
Government grants accounted for, in
the profit or loss for the current
period (except for the government
grants closely related to the business See "Section X Note 5.42 and 5.47"
of the Company and consistently for details.
given at a fixed amount or quantity in
accordance with the national policies
or standards)
Gain or loss on fair-value changes on
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and
See "Section X Note 5.43 and 5.44"
liabilities and available-for-sale 37,839,310.52
for details.
financial assets (exclusive of the
effective portion of hedges that arise
in the Company’s ordinary course of
business)
Other non-operating income and
See "Section X Note 5.47 and 5.48"
expenditure except above-mentioned 7,506,932.03
for details.
items
Less: Corporate income tax 16,427,670.44
Minority interests (after tax) 119,219.17
Total 49,488,211.44
Other items that meet the definition of non-recurring gain/loss:
? Applicable ? N/A?
No such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to
the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.
? Applicable ? N/A?
No such cases for the reporting period.
Section III Management Discussion and Analysis
The Company operates within the baijiu subdivision industry which belongs to the liquor & wine,
beverage and refined tea production industry with specialized baijiu product design, production and
sales as its main business model. Its primary products include baijiu series such as "National Cellar
baijiu industry.
Affected by the population size, demographic structure as well as changes in supply and demand, the
baijiu industry has entered into an era of competition for existing customers, facing multiple pressures
such as consumption downturn and intensified competition. Since the beginning of the year, the
domestic consumer market has been recovering. With favorable national policies for expanding
domestic demand and boosting consumption, the demand side may continue to improve and bring
new development opportunities for the industry.
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Sel f-regulation of
Listed Companies—Industry-specific Information Disclosure.
The Company holds five food business licenses, and its production model is self-production. The
Company’s main business is the research and development, production and sales of baijiu series
such as "National Cellar 1573" and "Luzhou Laojiao".
During the Reporting Period, with a focus on the development theme of "promoting reform, enhancing
collaboration, focusing on main areas and achieving leapfrog development", the Company seized the
opportunities and went all out with a pragmatic and progressive attitude to promote the development
of the Company to a new level. For H1 2023, operating revenue amounted to CNY 14.593 billion, up
CNY 7.09 billion, up 28.17% year on year, maintaining good and rapid growth.
A. Main operations and results in the Reporting Period
a. Actively innovating marketing strategy and steadily enhancing market share and market
competitiveness
The Company continuously focused on consumer cultivation, strategic market building and key
project support. The offline consumer operation system was continuously improved, the construction
of the online sales shop matrix was completed, the "Hundred Cities Program" was steadily promoted,
and the Chunlei Action was effective. The Company's ability to enhance market share and market
competitiveness has improved dramatically.
b. Continuously enhancing the brand connotation and achieving effective brand development
Relying on mainstream media, the Company further enhanced the brand's influence through public
relations communication on the themes of "Living Dual National Treasures" and technological
innovation. The brand's reputation was further improved by constructing emotional resonance with
consumers through the Fengcang Dadian, the poetic drama tour of "Yellow River" and other activities.
The brand image of Luzhou Laojiao was comprehensively established by integrating Luzhou Laojiao's
branding activities and integrating online and offline information dissemination.
c. Continuously strengthening the reform of scientific research and making fruitful innovations and
breakthroughs
The Company launched the construction of a scientific research center platform to promote the win -
win development of the university and enterprises, conducted analysis and inventory of the
effectiveness of scientific and technological projects to enhance result orientation, and boosted
technological publicity and promotion to achieve technology-empowered brand marketing. In the first
half of 2023, the Company declared nine vertical scientific research projects at all levels, and won
seven honors of scientific and technological awards from associations including China National Light
Industry Council and China Alcoholic Drinks Association. It participated in the formulation and revision
of two national standards and five group standards, and was granted 42 patents. In addition, 17
scientific research papers of the Company were published.
d. Making every effort to promote the development of major projects to a new level
The Company accelerated the construction of the Technical Upgrade Project of Intelligent Brewing,
completed the overall project plan design, preliminary design of the first phase of the project, bidding
for participating units and project investigation. Major projects such as the display platform of the
production scheduling command center and the Qu-preparation MES system of the Huangyi Brewery
Eco-Park were advanced. The Company's intelligent brewing and supply chain system security
achieved a higher level.
e. Firmly fulfilling social responsibilities and achieving preliminary results in party building
empowerment
The Company continuously practiced the corporate philosophy of "Baijiu for the World, a Shared
Future", and deeply implemented rural revitalization arrangements. The Company's village members
stationed in Guntang Village, Maiwa Township, Hongyuan County, were awarded the "Excellent
Village Members in Aba Prefecture", and Guntang Village under the paired assistance of the
Company was awarded the "Excellent Key Village of Rural Revitalization in Aba Prefecture". The
Company continuously played the integration role of party building position, and achieved preliminary
results in "1 + N" party building clustering. The party group service center was upgraded, and a
unique brand culture of party building was gradually formed.
B. Priorities in the second half of the year
a. Strengthening marketing and accelerating the layout of intelligent empowerment
By continuously following the marketing theme of "strategic concentration, accelerated breakthrough,
operation upgrade, and full personnel activation", the Company will effectively promote the
development of business standards. It will comprehensively advance the effective implementation of
the "Hundred Cities Program" and fully integrate resources. With a focus on the digital upgrade of the
front-line business, the Company will continuously improve the marketing service and guarantee
capacity. Additionally, it will constantly boost digital empowerment for consumer development, adhere
to the healthy and benign development of the market, and make every effort to promote sales
expansion.
b. Strengthening culture cultivation and boosting brand empowerment
The Company will continuously integrate thematic marketing to effectively build consumer empathy
and publicize brand stories. Activities such as poem and baijiu culture will be continuously organized
to stimulate public resonance and enhance the enterprise's reputation. Platforms such as the mobile
museum will be fully leveraged to revitalize the cultural communication of Luzhou Laojiao and shape
a tangible and emotional brand culture. The publicity effect of creative activities will be strengthened
to increase brand popularity and enhance consumer loyalty.
c. Strengthening the management model and enhancing collaboration efficiency
The Company will accelerate the formation of an integrated online and offline digital collaboration
support system to promote professional, systematic and intelligent decision-making by the
management. Centering on the actual needs of sales and production, the Company will make every
effort to optimize procedures and policies. Information-based management will be enhanced to
realize the empowerment of big data. The Company will strengthen the lean organization and
management to improve collaboration efficiency.
d. Boosting project construction and supporting industrial upgrade
The Company will continue to promote the construction of major projects such as the Luzhou Laojiao
Technical Upgrade Project of Intelligent Brewing, the conservation and restoration of cultural cellar
caves of baijiu production workshops of Luzhou Laojiao in Xiaoshi region, the baijiu culture scenario
building and the surrounding environment improvement project, and accelerate the layout of
intelligent brewing, intelligent production as well as culture and tourism integration, to consolidate and
expand the advantages of Luzhou Laojiao in production capacity guarantee and brand culture.
e. Strengthening talent efficiency gains and promoting talent development
Adhering to dynamic and fine management, the Company will continuously optimize talent allocation
to support business development. Adhering to quality improvement and efficiency enhancement, the
Company will continuously optimize the selection and appointment of talent to create a talent base.
Adhering to the enhancement of personnel efficiency, the Company will optimize the talent structure
and strengthened echelon building. Adhering to a multi-dimensional orientation, the Company will
optimize talent incentives and stimulated self-motivation. Adhering to a people-oriented spirit, the
Company will optimize employee services to create a harmonious corporate atmosphere.
f. Enhancing the leadership of party building to boost the development of the Company
The Company will further play the integration role of party building position, and create a benchmark
position in sales, production and other grassroots front lines to provide better education-based
guidance and services to party members and present the Company's development achievements in a
three-dimensional manner. It will refine work to support rural revitalization and social welfare, strongly
promote regional development, and make due contribution to consolidating and expanding poverty
alleviation results and comprehensively boosting rural revitalization.
Brand operation
The Company has always insisted on "dual brands, three product series, and major single products":
The National Cellar 1573 series has been one of the three high-end baijiu products in China; Luzhou
Laojiao's brand rejuvenation plan saw remarkable results, and the product series showed a good
momentum of development; innovative products such as Health, Gogoon and Chinese-style fruit
baijiu continued to be cultivated, and have become the driving force for the Company's young,
fashionable, healthy and international development.
Main sales models:
Currently, the Company has two main sales models:
Company establishes cooperative relationships with the distributors by product lines and regions. The
Company directly supplies goods to the distributors, and then distributors sell them to consumers and
terminal outlets.
cooperative relationships with e-commerce platforms, self-media and webcasters, and sells the goods
to consumers through flagship stores, specialty stores, live streaming rooms on online platforms and
other network terminals.
Distribution models:
? Applicable □N/A
Unit: CNY
YoY YoY
Gross YoY change
change of change of
Operating revenue Cost of sales profit of operating
cost of gross profit
margin revenue
sales margin
By sales model
Traditional channel
operation model 13,960,908,535.33 1,498,640,545.49 89.27% 28.82% 1.93% 2.84%
Emerging channel
operation model 550,076,103.08 171,370,733.31 68.85% -22.73% 36.69% -13.54%
Unit: Number
Region Number of Increased Decreased YoY change of Reason for any
distributors at the number during number during number of significant
end of the the reporting the reporting distributors (%) change
reporting period period period
Domestic 1701 13 15 11.47%
Overseas 111 0 15 -0.89%
The Company's main settlement method for distributors is payment before delivery. The distribution
method is authorized distribution.
Total sales to top five customers（CNY） 9,102,705,218.08
Total sales to top five customers as % of the total sales 62.38%
Total sales to related parties among top five customers as % of the total
sales
The Company had no accounts receivable from the top five distributors at the end of the period.
As % of the total
No. Customer Sales amount (CNY) sales for the
reporting period
Total -- 9,102,705,218.08 62.38%
Store sales terminals accounted for more than 10%
□ Applicable ? N/A
Online direct sales
? Applicable □N/A
For the main sales models of the Company, please refer to the contents under the heading “Distribution
models” in “1. Business scope in the reporting period” of Section III. For the sales of the Company's
main products, please refer to the contents under the heading "Business segment, products or
geographical segments contributing over 10% of the operating revenues or profits" in “3. Analysis of
main business” of Section III. The Company's main products are sold online. Its main cooperation
platforms include JD.com and Tmall.
Sales price of main products contributing over 10% of the total operating revenues for the current
period changed by more than 30% from the previous reporting period
□ Applicable ? N/A
Purchase model and purchase content
Unit: CNY
Purchase model Purchase content Amount of main purchase content
Organic raw grains are purchased
through cooperative model and
supplied by organic raw grain bases;
Raw materials 1,904,661,332.91
other raw grains and packaging
materials are purchased through bid
invitation
Purchase based on the unified
pricing of the Development and
Reform Commission of Luzhou and Fuels and energies 92,495,405.92
the Price Bureau of Luzhou, and
purchase through bid invitation
Purchase through bid invitation Low-value consumables 24,502,517.66
The purchase of raw materials from cooperatives or farmers accounted for more than 30% of the total
purchase amount
□ Applicable ? N/A
The price of main raw materials purchased externally changed by more than 30% year-on-year
□ Applicable ? N/A
Main production model:
The Company's main production model is self-production.
Commissioned processing and production
□ Applicable ? N/A
Main breakdown items of cost of sales
Unit: CNY
H1 2023 H1 2022
By business
Item As % of cost of As % of cost of YoY Change
segment Amount Amount
sales sales
Baijiu Raw materials 1,411,571,489.11 84.52% 1,362,639,995.08 85.40% 3.59%
Baijiu Labor costs 117,395,758.18 7.03% 97,048,667.74 6.08% 20.97%
Manufacturing
Baijiu 141,044,031.51 8.45% 135,902,902.04 8.52% 3.78%
overhead
Production volume and inventory
YoY change YoY change
Production
Product Sales volume Inventory of production of sales YoY change Description of
volume
classification (ton) (ton) volume volume of inventory major changes
(ton)
(%) (%)
Mid- and high-
end baijiu
Other baijiu 25,552.95 26,485.26 10,763.18 12.28% 21.20% -26.19%
Unit: Ton
Finished baijiu Semi-finished baijiu (including base baijiu)
Unit: Ton
Main products Design capacity Actual capacity Capacity in progress
Baijiu 170000 170000 80000
A. Geographical advantage
Luzhou City, where the Company is located, sits in the transitional area between the southern rim of the
Sichuan Basin and the Yunnan-Guizhou Plateau, featuring a warmer and more humid sub-tropical
climate compared to other areas at the same latitude, with a temperature above 0℃ throughout the
year. The unique climate and soil are agreeable to grow grains for baijiu brewing. The glutinous red
sorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.
The cellars in which the Company brews its baijiu are made of the local loessal clay characterized by
strong viscosity, rich minerals and excellent moisture retention. In addition, the abundant and quality
water in the region creates a unique geographical advantage for the production of the Company’s baijiu.
B. Advantage of cellars and brewing technique
Aged cellars are the most essential condition for a strong aromatic baijiu maker to produce good quality
baijiu. The Cellars of National Treasure 1573, founded in 1573, was granted by the State Council as the
first Cultural Relic of National Importance in the industry under the Protection of the State in December
with its 16 ancient brewing workshops and three natural cellar holes, were all selected as the fourth
batch of Cultural Relics of National Importance under the Protection of the State in 2013. They are
unique resources that cannot be replicated. In both 2006 and 2012, Luzhou Laojiao Daqu Cellars were
twice selected into the preliminary list of China for World Heritage. In November 2018, Luzhou Laojiao
Cellars and Brewing Workshops were selected into China’s Industrial Heritage List. The time-honored
Traditional Brewing Technique of Luzhou Laojiao is a 24-generation inheritance and a classic brewing
technique for strong aromatic baijiu. This technique was selected as the first batch of National
Intangible Cultural Heritage in May 2006. The Cellars of National Treasure 1573 and the Traditional
Brewing Technique of Luzhou Laojiao together provide the most essential basis and assurance for the
quality of the product series of National Cellar 1573 and Luzhou Laojiao. Additionally, Huangyi Brewery
Eco-Park has moved into full production in late 2020. Upholding the cultural connotations of
“inheritance of ancient ways, pure-grain brewing, traditional techniques, and intelligent technologies”,
the Company carried out brewing technical renovation featuring automatic, intelligent and information
technology-based transformation. As such, it has established a baijiu brewery eco-park comprising
brewing workshops, leaven making workshops, and base baijiu storage cellars, along with energy and
sewage treatment facilities. This brewery eco-park brings with it new production capacities of 100,000
tons of quality pure-grain solid baijiu and 100,000 tons of leaven in addition to a new storage capacity of
C. Brand advantage
Brand is a key business resource for baijiu producers. The Company’s reputation is greatly built on its
superiority in brand. National Cellar 1573, which is of a connoisseurship level, is a world-famous high-
end brand. Luzhou Laojiao Tequ, a classic brand for strong aromatic baijiu, was selected in 1952 by the
first national tasting competition judges as one of the four most famous baijiu brands in China. It is the
only strong aromatic baijiu brand that won the title of “National Famous Baijiu” for five consecutive times,
as well as the pioneer with regard to the “Tequ” variety of baijiu. In recent years, the Company has
successfully put in place a brand system of “dual brands, three product series, and major single
products” with great clarity and focus. The programs carried out to promote the brand of National Cellar
improvement in brand influence. The Company’s baijiu is increasingly known by consumers as a
national brand of strong aromatic baijiu and of authentic flavor.
D. Quality and R&D advantage
The Company is committed to producing high-quality baijiu, advocating a healthy lifestyle and “making
the quality visible”. The first “Organic Sorghum Planting Base” was established and the six-factor
management system (including organic, quality, safety, environment, measurement and energy) was
built and improved. The research platforms are established, including National Engineering Research
Center of Solid-State Brewing, National Liquor Test Center, National Postdoctoral Workstation, etc,
which all support the innovation and upgrading of products with their strong technical force. In recent
years, the Company has put in a lot of efforts in researching Tequ production, brewing informatization &
automation. Relying on the technological innovation platforms such as the National Industrial Design
Center, and continuously deepening the cooperation with universities and scientific research institutes
including the Chinese Academy of Sciences and the Jiangnan University, the Company has undertaken
dozens of national- or provincial-level projects and has been granted hundreds of invention or utility
model patents. And remarkable results have been achieved with respect to improvement of the quality
of base Baijiu, as well as production efficiency improvement.
E. Talent advantage
The Company has 1 inheritor of national intangible cultural heritage, 4 masters of Chinese brewing, 2
masters of Chinese baijiu, 2 Chinese liquor connoisseurs, 1 master of Chinese baijiu technique, 11
senior professor engineers, 7 experts who receive special allowances from the State Council, 4 national
technicians, 2 national model workers, 5 national Labor Day Medal winners, 3 academic and
technologic leaders of Sichuan province, 1 expert with outstanding contribution in Sichuan province, 1
innovation leader of Tianfu, 1 excellent engineer of Tianfu, 3 craftsmen of Tianfu, 2 craftsmen of
Sichuan province, 1 technological elite of Tianfu, 4 technicians of Sichuan province, as well as
hundreds of highly skilled personnel including national baijiu judges, senior brewing technicians and
brewing technicians. The comprehensive and professional personnel system assures the sound
development of the Company.
Overview
See contents under the heading “1. Business scope in the reporting period” above.
Year-on-year changes in key financial data
Unit：CNY
YoY Reason for any significant
H1 2023 H1 2022
Change change
Operating revenues 14,593,051,774.14 11,664,377,552.94 25.11%
Cost of sales 1,700,263,105.68 1,642,310,550.61 3.53%
Selling and
distribution expenses
General and
administrative 539,879,241.31 542,666,754.49 -0.51%
expenses
Finance expenses -125,783,791.43 -126,988,421.10
Mainly due to the increased
Corporate income
tax
resulting in the increased profit
R&D investments 85,012,075.06 93,892,252.85 -9.46%
Mainly due to the increased
Net cash flows from
operating activities
goods in the current period
Mainly due to the redemption of
wealth management product
Net cash flows from
investing activities
plan) from securities firm in the
current period
Net cash flows from Mainly due to the bank loans
financing activities received in the current period
Mainly due to the increased net
Net increase in cash cash flows from operating,
and cash equivalents investing and financing activities
in the current period
Significant changes to the profit structure or sources of the Company in the reporting period
? Applicable ? N/A
No such changes in the Reporting Period.
Breakdown of operating revenues
Unit：CNY
H1 2023 H1 2022
As % of As % of YoY Change
Amount operating Amount operating
revenues revenues
Total 14,593,051,774.14 100% 11,664,377,552.94 100% 25.11%
By business segment
Baijiu 14,510,984,638.41 99.44% 11,549,327,272.44 99.01% 25.64%
Other revenues 82,067,135.73 0.56% 115,050,280.50 0.99% -28.67%
By product
Mid- and high-
end baijiu
Other baijiu 1,520,899,556.91 10.42% 1,176,918,891.99 10.09% 29.23%
Other revenues 82,067,135.73 0.56% 115,050,280.50 0.99% -28.67%
By geographical segment
Domestic 14,516,179,307.86 99.47% 11,570,386,785.08 99.19% 25.46%
Overseas 76,872,466.28 0.53% 93,990,767.86 0.81% -18.21%
Business segment, products or geographical segments contributing over 10% of the operating
revenues or profits
? Applicable ? N/A
Unit：CNY
Gross YoY change YoY change YoY change
Operating revenue Cost of sales profit of operating of cost of of gross profit
margin revenue sales margin
By business segment
Baijiu 14,510,984,638.41 1,670,011,278.80 88.49% 25.64% 4.66% 2.31%
By product
Mid- and high-
end baijiu
Other baijiu 1,520,899,556.91 694,071,123.47 54.36% 29.23% 16.35% 5.05%
By geographical segment
Domestic 14,516,179,307.86 1,688,065,142.75 88.37% 25.46% 5.72% 2.17%
Under the circumstances that the statistical standards for the Company’s main business data were
adjusted in the reporting period, the Company’s main business data in the current period is calculated
based on adjusted statistical standards at the end of the reporting period
? Applicable ? N/A
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Sel f-regulation of
Listed Companies—Industry-specific Information Disclosure.
A. Breakdown of selling and distribution expenses
Unit：CNY
Selling and
Reason for any significant
distribution H1 2023 H1 2022 YoY Change
change
expenses
Advertising
expenses
Sales promotion Increased sales promotion
expenses activities in the current period
Warehousing
and logistics 95,488,340.44 63,874,054.36 49.49% Increased stock for sale
expenses
Labor costs 210,781,737.74 204,443,388.51 3.10%
Other 84,793,614.57 111,135,142.80 -23.70%
B. Breakdown of advertising expenses
Unit：CNY
Advertising Expenses
Online advertising (exclusive of TV advertising) 53,376,655.14
Offline advertising 161,825,375.75
TV advertising 138,219,714.09
Other (inclusive of branding ideas, exhibitions &
showcases, advertising materials, activity planning, 232,319,474.58
etc.)
? Applicable ? N/A
Unit：CNY
Change in Explanation about any
As % of total As % of total percentage material change
Amount Amount
assets assets
Mainly due to the
positive net cash
Cash and cash flows from operating
equivalents 30,344,475,538.13 49.32% 17,757,528,211.25 34.56% 14.76%
activities and bank
loans received in the
current period
Accounts
receivable 14,720,743.59 0.02% 5,939,420.78 0.01% 0.01%
Inventories 10,794,156,136.00 17.54% 9,840,742,374.85 19.15% -1.61%
Investment
property
Long-term equity
investments 2,721,676,735.14 4.42% 2,667,500,553.17 5.19% -0.77%
Fixed assets 8,616,388,591.11 14.00% 8,856,258,598.78 17.23% -3.23%
Construction in
progress 1,209,595,255.85 1.97% 808,919,047.21 1.57% 0.40%
Right-of-use
assets 29,616,062.33 0.05% 39,952,525.63 0.08% -0.03%
Contract
liabilities 1,933,610,554.94 3.14% 2,566,374,718.76 4.99% -1.85%
Mainly due to the
Long-term loans 9,515,100,000.00 15.47% 3,179,600,000.00 6.19% 9.28% bank loans received
in the current period
Lease liabilities 26,095,309.94 0.04% 29,096,969.66 0.06% -0.02%
? Applicable ? N/A
? Applicable □ N/A
Unit：CNY
Changes in
Changes in
cumulative
Opening fair value Provision for Amount of Amount of Other Closing
Item fair value
balance through impairment purchase sale changes balance
recorded
profit or loss
into equity
Financial
asset
trading
financial
assets 1,073,466,7 32,781,678. 200,000,000 1,106,191,7 200,056,716
(exclusive of 80.37 42 .00 42.66 .13
derivative
financial
assets)
ts in other 1,136,736,9 189,135,818 391,086,685 445,414,722
equity 78.11 .57 .52 .85
instruments
Accounts -
receivables 1,818,022,4
financing 03.37 12.77
Subtotal of -
financial 1,818,022,4
assets 61.85 42 .57 .00 28.18 51.75
Total 1,818,022,4
Financial
liability 0.00 0.00
Information about other changes
N/A
Whether measurement attribution of main assets changes significantly in the reporting period
?Yes ? No
Unit：CNY
Closing
Item Reason
Balance
Accrued interest on term deposits, and amount frozen by
Bank deposits 22,939,930.13
court of law
Other cash and cash
equivalents
Total 32,939,930.13
? Applicable ? N/A
Investment made in the Investment made in the same
YoY change
reporting period (CNY) period of last year (CNY)
Note 1: Mainly due to the purchase of a larger amount of wealth management product (collective
asset management plan product) from securities firm in the same period of last year.
? Applicable ? N/A
? Applicable ? N/A
Unit: CNY
Accum
Accum Reason
ulated
ulated s for
actual
Whethe Amount actual not Date
Industr input
r it is a of input income meetin of
Invest y of the amount Project Project Disclosur
fixed in the Capital by the g the disclo
Item ment investm by the progres ed e index
asset reportin source end of schedul sure
form ent end of s income (if any)
investm g the e and (if
project the
ent period reportin project any)
reportin
g ed
g
period income
period
Announc
ement
No.
on the
Luzhou Impleme
Laojiao ntation of
Technical Luzhou
Upgrade Self- 10,193, Laojiao
Yes Baijiu 3,579.5 financin 1.00% N/A N/A N/A July
Project of built 333.83 Technical
Intelligen Upgrade
t Brewing Project of
(Phase I) Intelligen
t Brewing
(Phase I)
by
Subsidiar
y
Total -- -- -- 3,579.5 -- -- N/A N/A -- -- --
? Applicable □ N/A
Unit: CNY
Chang
Chang es in Profit
es in the and
Abbre Accou Beginn
Categ Initial fair cumul Amou loss Closin
viation nting ing Amou Accou
ory of Stock invest value ative nt of during g book Capital
of measu book nt of nting
securit code ment recogn fair purcha the balanc source
securit rement balanc sale item
ies cost ized in value se reporti e
ies model e
profit record ng
or loss ed into period
equity
Invest
Dome ments
stic 60121 6,241, in
value Own
and GTJA ,156.7 9,389. 1,031. 0,188. other
foreign equity
stock instru
ments
Invest
Dome ments
Fair 14,931 13,761 14,791
stic 00224 1,030, 78,177 in
value Own
and SNC ,950.2 ,230.2 ,230.2 other
foreign equity
rement 4 9 9
stock instru
ments
Invest
Dome ments
stic in
LZBA value Own
and 01983 ,000.0 8,392. ,357.2 8,357. other
NK measu fund
foreign equity
stock instru
ments
Invest
Dome - ments
CTG 542,28 Fair 807,13 391,08 119,38
stic 31,811 977,28 in
value Own
and 01880 Duty- 5,380. 9,120. 6,685. 6,821. other
measu ,873.8 0.00 fund
foreign equity
Free 80 rement 07 52 41
stock 7 instru
ments
Total 4,537. -- 278,85 0.00 8,744. 0.00 6,685. 6,596. -- --
□Applicable ? N/A
No such cases in the reporting period
? Applicable ? N/A
? Applicable □ N/A
Unit：CNY 10,000
Total Accumula
Total Total
amount ted re- Amount
amount Accumula amount Purpose
of re- purposed Total of funds
Total of raised ted of and
purposed funds amount raised
amount funds amount accumula direction
Year Method funds raised of unused idle for
of funds used in of raised ted re- of unused
raised in as % of funds more
raised the funds purposed funds
the total raised than two
reporting used funds raised
reporting funds years
period raised
period raised
Deposite
Public
d in
offering 12,139.3 59,296.1 special
corporate
for raised
bond
funds
Public
offering
corporate
bond
Total -- 299,280 0 0 0.00% -- 0
Notes for general use of funds raised
The total amounts of used and unused funds raised include interest on the funds.
? Applicable □ N/A
Unit：CNY 10,000
Committe
Investme Date of Whether
d Whether Total
Accumula nt the Whether the
investme the amount Investme Realized
Adjusted ted input progress projects the feasibility
nt project of funds nt benefits
Investme by the by the reach the expected of the
projects has been raised for amount in during
nt total end of end of working benefits project
and changed committe the the
amount the reporting condition have has
direction (including d reporting reporting
(1) reporting period (3) for their been changed
of over- partial investme period period
period (2) ＝(2)/(1) intended achieved significan
raised change) nt
use tly
funds
Committed investment projects
Technical
Renovati
on 325,002. 30 June
No 11,074.11 Yes No
Project of 74 2021
Brewing
(Phase II)
Project of
Intelligent
Upgradin
g and
Building
of the No 398,400 398,400 1,065.26 9,299.15 88.18% N/A N/A N/A No
Informati
on
Manage
ment
System
Project of
Acquiring
Sealing 30 June
No 0 12,043.3 Yes No
Equipme 2021
nt for the
Cellar of
Huangyi
Brewing
Base
Project of
Acquiring
Accessor
y
Equipme
nt for 30 June
No 0 4,980.25 Yes No
Leaven 2021
Making
for
Huangyi
Brewing
Base
Subtotal
of
committe 12,139.3 351,325.
d -- 398,4001 398,400 -- -- N/A -- --
investme 7 44
nt
projects
Use of over-raised funds
None No
Total -- 398,400 398,400 -- -- N/A -- --
Explain
project by
project
the
situation
and
reason
for not
reaching
plan
progress
or
expected
benefits N/A
(including
reason
for
inputting
“N/A” for
“Whether
the
expected
benefits
have
been
achieved”
)
Significan
t changes
N/A
of project
feasibility
Amount,
purpose
and
progress N/A
of over-
raised
funds
Change
of
implemen
tation site
N/A
of
investme
nt
projects
Adjustme
nt of the
implemen
N/A
tation
mode of
raised
funds
investme
nt
projects
Applicable
On 14 May 2019, the Company held the First Extraordinary General Meeting of Shareholders of 2019, which considered and
Situation approved the Proposal on Requesting the Company’s General Meeting of Shareholders to Fully Authorize Chairman of the
of
advance Board or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond.
investme According to the Proposal, in the event of inconsistency between the payment of the raised funds and the progress of the project
nt and
replacem implementation, the Company may make advance investments using other funds (including self-owned funds, bank project
ent loans, etc.) according to the actual situation, and replace fund investment other than capital funds when the raised funds are in
place. As of 30 June 2023, the Company had replaced advance investments of self-pooled funds of CNY 573,178,496.64 using
the raised funds.
Idle
raised
funds
used for
temporar N/A
y
suppleme
ntary
liquidity
Amount
and
reason
for N/A
surplus of
funds
raised
Purpose
and The idle raised funds are deposited in the special account No. 9550880046723000135 for raised funds in the Chengdu Branch
whereabo of China Guangfa Bank Co., Ltd., the special account No. 517517460013000000860 for raised funds in the Luzhou Branch of
uts of
unused Bank of Communications Co., Ltd., and the special account No. 631395395 for raised funds in the Chengdu Branch of China
funds Minsheng Banking Corp., Ltd.
raised
Problems
and other
situation
when
N/A
raised
funds are
used and
disclosed
Note 1: The subtotal of funds raised for committed projects was CNY 3,984 million, which was the
combined amount of CNY 4,000 million (CNY 2,500 million of corporate bonds issued in August 2019
plus CNY 1,500 million of corporate bonds issued in March 2020) minus the total issuance costs of
CNY 16 million.
Note 2: Because there are uncertainties in the approval and issue time for bond, in order to ensure
smooth progress of the projects and protect the interests of the Company’s shareholders, the
investment sequence and specific amounts of the corresponding raised funds should be determined
by the Chairman of the Board as authorized by the general meeting of shareholders or other persons
as authorized by the Board of Directors within the scope of the four raised funds investment projects
according to the actual needs, provided that the capital funds for each project is no less than 20% of
the total investment.
Note 3: As of 30 June 2023, the Project of Intelligent Upgrading and Building of the Information
Management System was in the process.
Note 4: These raised funds investment projects have helped further expand the Company’s
production and sales, and increase its comprehensive competitiveness. The economic benefits of
these projects cannot be measured separately.
? Applicable ? N/A
No such cases in the reporting period
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
? Applicable ? N/A
Main subsidiaries and joint companies with an over 10% influence on the Company’s net profit
Unit：CNY
Company Company Business Registere Total Operating Operating
Net assets Net profit
name type scope d capital assets revenue profit
Luzhou
Laojiao
Luzhou
series
Laojiao 100,000,0 11,303,45 7,572,099, 14,047,11 6,996,142, 5,241,722,
Subsidiary unified
Sales Co., 00.00 9,162.06 954.44 1,152.15 338.04 614.521
package
Ltd.
Baijiu
sales
Note 1: Operating profit and net profit increased year on year, mainly due to the increased sales
revenue in the current period.
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable ? N/A
Notes for major holding companies and joint stock companies
There were no major holding companies or joint stock companies during the reporting period of which
information shall be disclosed.
? Applicable ? N/A
A. Macroeconomic risk. The baijiu industry has a strong relevance with the macroeconomy. At present,
the economy is in a major process of factor-driven shift to high-quality development, and there are
problems such as insufficient domestic demand, complex and severe external environment, and
tortuous economic recovery, which may have an impact on the industry and enterprises. In this regard,
the Company will face up to the impact of the economic environment, maintain strategic
determination, boost confidence in development, strengthen the spirit of optimism, competition,
innovation and solidarity, and endeavor to embark on a new journey of high-quality development.
B. Risk of aggravating industrial competition. In recent years, the baijiu output and the number of
large enterprises have declined while the concentration has climbed, continuously intensifying the
industry competition. To this end, the Company will adhere to the blueprint, always move forward in
the right direction with exertion, courage and determination, and compete for new development
opportunities in industry concentration and brand competition with a long history, deep culture, strong
technology and excellent quality.
Section IV Corporate Governance
convened during the reporting period
Investor Date of the Date of Resolution of the
Meeting Type
participation ratio meeting disclosure meeting
Announcement
No.: 2023-19 of
Luzhou Laojiao
Co., Ltd. on
The 2022 Annual Annual General
Resolutions of
General Meeting Meeting of 63.51% 29 June 2023 30 June 2023
the 2022 Annual
of Shareholders Shareholders
General Meeting
of Shareholders
(http://www.cninf
o.com.cn/)
preference shareholders with resumed voting rights
? Applicable ? N/A
? Applicable □ N/A
Name Title Type Date Reason
Li Yong Secretary of the board Appointed 9 March 2023
Wang Hongbo Secretary of the board Resignation 3 March 2023 Voluntary resignation
for the reporting period
? Applicable ? N/A?
The Company has no interim dividend plan, either in the form of cash or stock.
ownership plan or other incentive measures for employees
? Applicable ? N/A
A. On 26 September 2021, relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were approved at the Seventh Meeting
of the 10th Board of Directors and the Third Meeting of the 10th Board of Supervisors of the Company,
respectively.
B. On 2 December 2021, the Company received the Approval of Luzhou State-owned Assets
Supervision and Administration Commission on the Implementation of the Second Phase of the Equity
Incentive Plan for Listed Companies by Luzhou Laojiao Co., Ltd. (L.G.Z.K.P. [2021] No. 62) from the
Luzhou State-owned Assets Supervision and Administration Commission, which approved in principle
to the implementation of the Restricted Share Incentive Plan by the Company.
C. On 24 December 2021, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees of the 2021 Restricted Share
Incentive Plan.
D. On 29 December 2021, the relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were approved at the First
Extraordinary General Meeting of Shareholders of 2021. Meanwhile, a self-inspection on the trading of
the Company's shares by insiders of the Incentive Plan and the proposed awardees was conducted,
and the Self-Inspection Report on the Trading of the Company's Shares by Insiders and Awardees in
the 2021 Restricted Share Incentive Plan was disclosed.
E. On 29 December 2021, the Company held the 12th Meeting of the 10th Board of Directors and the
Sixth Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant
of Restricted Shares to Awardees respectively. The independent directors consented to the relevant
matters.
F. On 21 February 2022, the Company disclosed the Announcement on the Completion of Registration
of Restricted Share Grant, completed the registration of the first grant of restricted shares. Upon the
registration of the grant, 6,862,600 restricted shares were granted to 437 objects, the grant price was
CNY 92.71 per share and the listing date was 22 February 2022.
G. On 25 July 2022, the Company held the 18th Meeting of the 10th Board of Directors and the Ninth
Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.
H. On 4 August 2022, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
I. On 2 September 2022, the Company held the 22nd Meeting of the 10th Board of Directors and the
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal on
the Adjustment of the Granted Price of Reserved Restricted Shares of 2021 Restricted Share Incentive
Plan were reviewed and approved respectively. In accordance with the relevant provisions of the
incentive plan of the Company and the authorization of the First Extraordinary General Meeting of
Shareholders of 2021, the Board of Directors of the Company agreed to adjust the grant price and
repurchase price of the reserved restricted shares under the incentive plan from CNY 92.71 per share
to CNY 89.466 per share in view of the implementation of the Company's profit distribution plan for
J. On 3 September 2022, the Company disclosed the Announcement on the Repurchase and
Cancellation of Some Restricted Shares to Reduce Registered Capital and Notice to Creditors. By the
expiration of the declaring period, the Company had not received any declaration from the relevant
creditors for early payout of debts or provision of guarantee.
K. On 26 September 2022, the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares, 342,334 restricted shares
were granted to 46 objects, the grant price was CNY 89.466 per share and the listing date was 28
September 2022.
L. On 29 November 2022, the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Some Restricted Shares. The Company proposed to repurchase and
cancel a total of 62,310 restricted shares granted but not lifted from restricted sales. As at 29 November
M. On 29 December 2022, the Company held the 26th Meeting of the 10th Board of Directors and the
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.
N. On 13 January 2023, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
O. On 16 February 2023, the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares, 92,669 restricted shares were
granted to 17 objects, the grant price was CNY 89.466 per share and the listing date was 17 February
? Applicable ? N/A
? Applicable ? N/A
Section V Environmental and Social Responsibility
Whether the listed company and its subsidiaries belong to heavy polluting industries prescribed by
the environmental protection department
? Yes □ No
Policies and industry standards on environmental protection
In the process of production and operation, the Company strictly follow the laws, regulations and
industry standards related to environmental protection, such as the Environmental Protection Law of
the People's Republic of China, Law of the People's Republic of China on Environmental Impact
Assessment, Law of the People's Republic of China on Atmospheric Pollution Prevention and Control,
Law of the People's Republic of China on Water Pollution Prevention and Control, Administrative
Measures for the Legal Disclosure of Enterprise Environmental Information, Regulations on the
Administration of Environmental Protection of Construction Projects of the People's Republic of China,
Regulations on Administration of Pollutant Discharge Permits, Policies and Industry Standards on
Environmental Protection, Standard for Pollution Control on Hazardous Waste Storage, Standards for
the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry, Regulations on the
Prevention and Control of Environmental Pollution by Solid Waste in Sichuan Province, and
Regulations on Environmental Protection of Sichuan Province.
Environmental protection administrative permission
In the first half of 2023, the Company obtained six ecological and environmental administrative
permits, including a total of three permits for change and renewal of discharge permits and three
approval of environmental impact assessment reports.
Review and
Name of Acquiring
Administrative permit No. issuance Valid term Permitted matter Remark
permit time
authority
Concentration limit on
Discharge
Luzhou fugitive emission of air
Permit for
Municipal pollutants: 2.0 mg/Nm 3 for
Luzhou Laojiao 17 April
Co., Ltd. 2023
Environment (NMHC) and 20
(Xiaoshi
Bureau dimensionless for odor
Brewery Base)
concentration.
Discharge Permitted annual discharge
Luzhou
Permit for limits for wastewater:
Municipal
Luzhou Laojiao 6 June 440.18t/a for chemical Re-
Co., Ltd. 2023 oxygen demand (COD), application
Environment
(Huangyi 33.01t/a for ammonia
Bureau
Brewery Eco- nitrogen, 55.02t/a for total
Park) nitrogen (TN), and 3.3t/a for
total phosphorus (TP).
Luzhou Laojiao Permitted annual organized
Brewing Co., Luzhou emission limits for air
Ltd. (Energy Municipal pollutants: 8.64t/a for
Center of 91510500204755181G002V Ecology and 5 years particulate matters, 18.88t/a Change
Sichuan Luzhou Environment for sulfur dioxide, and
Baijiu Industrial Bureau 136.08t/a for nitrogen
Park) oxides.
In the 19# and 20#
workshops in the south area
of Sichuan Luzhou Baijiu
Industrial Park, three 7,000-
bottle/h manual filling
Reply to the
production lines were
Report of
utilized and supported with
Luzhou Laojiao
new equipment such as
on the Luzhou
code-scanning devices for
Environmental Municipal
Impact of Phase L.SH.H.J.H. [2023] No. 21 Ecology and Permanent
I Construction Environment
products, and one 24,000-
Project of Bureau
bottle/h filling line was newly
Flexible
added for the production of
Intelligent Filling
a wide range of small-
Pilot Line
volume products. After the
project is completed and put
into production, a baijiu
filling capacity of 27,000
tons/year will be developed.
A 5,000-bottle/h filling line
Reply to the
was constructed in 18#
Report of
workshop in the south area
Luzhou Laojiao
of Sichuan Luzhou Baijiu
on the Luzhou
Industrial Park for the
Environmental Municipal
Impact of Phase L.SH.H.J.H. [2023] No. 19 Ecology and Permanent
II Construction Environment
gift-boxed products. After
Project of Bureau
the project is completed and
Flexible
put into production, a baijiu
Intelligent Filling
filling capacity of 9,600
Pilot Line
tons/year will be developed.
An 8,000-bottle/h of
Reply to the
conventional production and
Report of
packaging line for custom
Luzhou Laojiao
products, a 3,000-bottle/h of
Custom Liquor
production and packaging
Co., Ltd. on the
line for shaped-bottle
Environmental Luzhou
custom products, and a box
Impact of No. Municipal
Workshop Environment
products were constructed
Renovation Bureau
in 21# workshop in the
Project in the
south area of Sichuan
South Area of
Luzhou Baijiu Industrial
Huangyi
Park. After the project is
Brewery Eco-
completed and put into
Park
production, a baijiu filling
capacity of 7,000 tons/year
will be developed.
Industry discharge standards and pollutants in producing and operating activities
Type of Name of
main main Number Distributi Emission
Discharg Pollution Approved Excessiv
Company pollutant pollutant of on of concentra Total
e discharge total e
name and and discharge discharge tion/inten emission
type standard emission discharge
particular particular outlet outlet sity
pollutant pollutant
Luzhou Water Luohan 21.72mg/
Direct
Laojiao COD 1 Brewery 50mg/L 4.2256t 23.183t/a No
pollutant discharge L
Co., Ltd. Eco-Park
Luzhou Luohan
Water Ammonia Direct
Laojiao 1 Brewery 0.34mg/L 5mg/L 0.0385t 2.017t/a No
pollutant nitrogen discharge
Co., Ltd. Eco-Park
Luzhou Water Luohan
Total Direct
Laojiao 1 Brewery 5.72mg/L 15mg/L 1.1287t 5.796t/a No
pollutant nitrogen discharge
Co., Ltd. Eco-Park
Luzhou Total Luohan
Water Direct
Laojiao phosphor 1 Brewery 0.07mg/L 0.5mg/L 0.0116t 0.232t/a No
pollutant discharge
Co., Ltd. us Eco-Park
Luzhou Air Organize Luohan
Laojiao PM d 2 Brewery 0.95mg/L 20mg/m3 0.0640t 3.900t/a No
Co., Ltd. pollutant discharge Eco-Park
Luzhou Organize Luohan
Air Sulfur
Laojiao d 2 Brewery 0.62mg/L 50mg/m3 0.0474t 11.500t/a No
pollutant dioxide
Co., Ltd. discharge Eco-Park
Luzhou Organize Luohan
Air Oxynitrid 34.06mg/ 150mg/m
Laojiao d 2 Brewery 2.3940t 45.400t/a No
pollutant e L 3
Co., Ltd. discharge Eco-Park
Luzhou Water Huangyi 29.30mg/ 440.180t/
Indirect
Laojiao COD 1 Brewery 400mg/L 8.1865t No
pollutant discharge L a
Co., Ltd. Eco-Park
Luzhou Huangyi
Water Ammonia Indirect
Laojiao 1 Brewery 0.57mg/L 30mg/L 0.1662t 33.010t/a No
pollutant nitrogen discharge
Co., Ltd. Eco-Park
Luzhou Water Huangyi 16.94mg/
Total Indirect
Laojiao 1 Brewery 50mg/L 4.7322t 55.020t/a No
pollutant nitrogen discharge L
Co., Ltd. Eco-Park
Luzhou Total Huangyi
Water Indirect
Laojiao phosphor 1 Brewery 0.74mg/L 3.0mg/L 0.2080t 3.300t/a No
pollutant discharge
Co., Ltd. us Eco-Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air
Dust d 2 Luzhou 1.12mg/L 5mg/m3 0.4049t 5.640t/a No
Brewing pollutant discharge Baijiu
Co., Ltd.
Industrial
Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air
PM d 1 Luzhou 0 20mg/m3 0 3.000t/a No
Brewing pollutant discharge Baijiu
Co., Ltd.
Industrial
Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air Sulfur
d 2 Luzhou 0.49mg/L 35mg/m3 0.1578t 16.680t/a No
Brewing pollutant dioxide
discharge Baijiu
Co., Ltd.
Industrial
Park
Energy
Center of
Luzhou
Air Organize Sichuan
Laojiao Sulfur
d 1 Luzhou 0 50mg/m3 0 2.200t/a No
Brewing pollutant dioxide
discharge Baijiu
Co., Ltd.
Industrial
Park
Energy
Luzhou Center of
Organize
Laojiao Air Oxynitrid Sichuan 42.53mg/ 100mg/m
d 2 15.1651t 113.400/a No
Brewing pollutant e Luzhou L 3
discharge
Co., Ltd. Baijiu
Industrial
Park
Energy
Center of
Luzhou
Air Organize Sichuan 150mg/m 22.680
Laojiao Oxynitrid
d 1 Luzhou 0 0 /
Brewing pollutant e 3
t/a
discharge Baijiu
Co., Ltd.
Industrial
Park
Treatments of pollutants
A. Waste water: Areas of the Company that produce wastewater are National Cellar, Zaojiaoxiang
Brewery Base, Xiaoshi Brewery Base, Anning Technology Park, Luohan Brewery Eco-Park, and
Huangyi Brewery Eco-Park. In National Cellar, Zaojiaoxiang Brewery Base, Xiaoshi Brewery Base, and
Anning Technology Park, the high-concentration brewing wastewater is temporarily collected in pools
(or tanks), and is later transferred to the wastewater treatment station of Huangyi Brewery Eco-Park by
truck for treatment. The wastewater treatment stations of Luohan Brewery Eco-Park and Huangyi
Brewery Eco-Park are equipped with online monitors to automatically monitor COD, ammonia nitrogen,
total phosphorus, total nitrogen, pH value and flows, and transmit the monitoring data to the supervision
platform of the higher authority. The Company's facilities for prevention and control of wastewater
pollution are under normal operations, ensuring up-to-standard discharge through general discharging
outlets. Compared with last year, suspended matter discharge was reduced by 50.36%, and COD
discharge by 6.36%.
B. Waste gas: Areas of the Company that produce exhaust gas are National Cellar, Zaojiaoxiang
Brewery Base, Xiaoshi Brewery Base, Luohan Brewery Eco-Park, and Huangyi Brewery Eco-Park. In
National Cellar Brewery Base, natural gas boilers are used, while in Xiaoshi Brewery Base and
Zaojiaoxiang Brewery Base, direct-fired bottom boilers are used. The natural gas boilers of Luohan
Brewery Eco-Park (20t/h, 30t/h) and the natural gas boilers of Huangyi Brewery Eco-Park (20t/h, 75t/h,
monitoring data to the supervision platform of the higher authority. Low NOx combustion technology is
adopted for the natural gas boilers. The Company's facilities for prevention and control of exhaust gas
pollution are under normal operations, ensuring up-to-standard emission of exhaust gas through outlets.
Compared with last year, PM discharge was reduced by 24.96%, and sulphur dioxide discharge by
Emergency plan for environmental emergencies
In the first half of 2023, the Company organized the revision and issuance of the Contingency Plan for
Environmental Emergencies in Jiangyang District of Luzhou Laojiao Co., Ltd. (2023), the Contingency
Plan for Environmental Emergencies in Longmatan District of Luzhou Laojiao Co., Ltd. (2023), and
completed the corresponding Report on Environmental Emergency Resource Investigation,
Environmental Risk Assessment Report, Special Contingency Plan and On-site Disposal Plan.
Input in environmental management and protection and the payment of environmental protection-
related taxes
During the Reporting Period, more than CNY 4.9 million was input in environmental governance and
protection, and CNY 83.2 thousand was paid in environmental protection tax as required.
Environmental self-monitoring plan
Monitoring
Monitoring Implementation Monitoring Monitoring
Monitoring site Emission limit compliance rate
indicator standard frequency form
in H1 2023
Odor
Emission Standards 20 (dimensionless)
concentration
for Odor Pollutants
Hydrogen sulfide 0.06 mg/m3
Unorganized (GB14554- 93)
Ammonia 1.5 mg/m3
monitoring
points 1#-4# for Sichuan Emission
the exhaust gas Control Standard for
emission outlets NMHC Volatile Organic 2 mg/m3 1 time/half-year Manual 100%
of Luohan Compounds
Brewery Eco- (DB51/2377-2017)
Park Integrated Emission
Particulate Standards for Air
matters Pollutants (GB16297-
Exhaust gas Ringelman
≤1 Manual
emission outlets emittance
Emission Standards
DA022, DA021 Nitrogen oxide 150 mg/m3
for Air Pollutants for
(unused) and Particulate 1 time/quarter 100%
Boiler (GB13271- 20 mg/m3
DA020 of matters Automatic
Luohan Brewery
Eco-Park Sulfur dioxide: 50 mg/m3
Exhaust gas Hydrogen sulfide
/
emission outlet Emission Standards
/
DA019 of Ammonia for Odor Pollutants 1 time/half-year Manual 100%
Luohan Brewery (GB14554- 93)
Eco-Park Odor /
concentration 27 kg/h
Sulfur dioxide:
Integrated Emission 0.77 kg/h
Particulate Standards for Air 120 mg/m3
Exhaust gas matters Pollutants (GB16297- 3.5 kg/h
emission outlet 1996)
DA018 of Nitrogen oxide 1 time/quarter Manual 100%
Luohan Brewery
Sichuan Emission
Eco-Park
Control Standard for
Volatile organic 60 mg/m3
Volatile Organic
compounds 3.4 kg/h
Compounds
(DB51/2377-2017)
Exhaust gas Sichuan Emission
emission outlet Control Standard for
DA017 of NMHC Volatile Organic 1 time/quarter Manual 100%
Luohan Brewery Compounds
Eco-Park (DB51/2377-2017)
Exhaust gas
emission outlets Integrated Emission
DA001-DA016 Particulate Standards for Air
of Luohan matters Pollutants (GB16297-
Brewery Eco- 1996)
Park
Flow /
PH value 6-9
Main outlet COD 50 mg/L
Standards for the 1 time/quarter Automatic
DW001 of the Ammonia Emission of Water 5 mg/L
wastewater nitrogen Pollutants in the
treatment station 100%
TP Fermented Alcohol 0.5 mg/L
of Luohan
TN and Baijiu Industry 15 mg/L
Brewery Eco-
(GB27931-2011)
Park Suspended
solids
Five-day BOD 20mg/L
Chroma 20
Suspended Standards for the
Rainwater 20 mg/L 1 time/month (1
solids Emission of Water
outlets DW002- time/quarter in
Pollutants in the
DW006 of case of no Manual 100%
Fermented Alcohol
Luohan Brewery COD 50 mg/L abnormalities
and Baijiu Industry
Eco-Park monitored)
(GB2731-2011)
Noise monitoring Emission Standard Daytime: 60 dB (A);
Boundary noise 1 time/quarter Manual 100%
points 1-4# at for Noise of Industrial nighttime: 50 dB (A)
the boundary of Enterprises at
Luohan Brewery Boundary (GB12348-
Eco-Park 2008)
Circulating
cooling water
outlet DW002 of
the Energy PH value, COD,
/ / 1 time/quarter Manual 100%
Center of TP
Sichuan Luzhou
Baijiu Industrial
Park
PH value 6-9
Total dissolved
/
Wastewater solids (TDS)
outlet DW001 of Suspended
Integrated 140 mg/L
the Energy solids
Five-day BOD Wastewater 80 mg/L
Center of 1 time/quarter Manual 100%
Discharge Standard
Sichuan Luzhou COD 400 mg/L
(GB8978-1996)
Baijiu Industrial TN 50 mg/L
Park Ammonia
nitrogen
TP 3 mg/L
Boiler exhaust Ringelman
≤1 Manual
gas vents emittance
Emission Standard of 3
DA001-DA002 Nitrogen oxide 100 mg/m
Air Pollutants for
of the Energy Soot 5 mg/m3
Thermal Power 1 time/quarter 100%
Center of
Plants (GB13223- Automatic
Sichuan Luzhou
Sulfur dioxide: 2011) 35 mg/m3
Baijiu Industrial
Park
Boiler exhaust Ringelman
≤1 Manual
gas vent DA003 emittance
Emission Standards
of the Energy Nitrogen oxide 150 mg/m3
for Air Pollutants for 1 time/quarter
Center of Particulate 100%
Boiler (GB13271- 20 mg/m3
Sichuan Luzhou matters Automatic
Baijiu Industrial
Park Sulfur dioxide: 50 mg/m3
Rainwater Suspended Standards for the
outlets DW004- solids Emission of Water
time/quarter in
DW010 of Pollutants in the
case of no Manual 100%
Huangyi Fermented Alcohol
COD 100 mg/L abnormalities
Brewery Eco- and Baijiu Industry
monitored)
Park (GB2731-2011)
Odor
Emission Standards 20 (dimensionless)
concentration
for Odor Pollutants
Hydrogen sulfide 0.06 mg/m3
(GB14554-93)
Unorganized Ammonia 1.5 mg/m3
monitoring Sichuan Emission
points 1#-4# at Control Standard for
the boundary of NMHC Volatile Organic 2 mg/m3 1 time/quarter Manual 100%
Huangyi Compounds
Brewery Eco- (DB51/2377-2017)
Park Integrated Emission
Particulate Standards for Air
matters Pollutants (GB16297-
DA041 and Odor 2,000
DA042 of concentration Emission Standards (dimensionless)
Huangyi Ammonia for Odor Pollutants 4.9 kg/h 1 time/half-year Manual 100%
Brewery Eco- (GB14554- 93)
Park Hydrogen sulfide 0.33 kg/h
DA087, DA096-
Sichuan Emission
DA097 and
Control Standard for
DA072-DA075 60 mg/m3
NMHC Volatile Organic 1 time/quarter Manual 100%
of Huangyi 4.76 kg/h
Compounds
Brewery Eco-
(DB51/2377-2017)
Park
DA034-DA040,
DA043-DA070,
DA076-DA086,
Integrated Emission
DA088-DA095,
Particulate Standards for Air
DA098, and 120 mg/m3 1 time/half-year Manual 100%
matters Pollutants (GB16297-
DA099 of
Huangyi
Brewery Eco-
Park
Main outlet of Flow Standards for the / 1 time/quarter Automatic
the wastewater PH value Emission of Water 6-9
treatment station COD Pollutants in the 400 mg/L
of Huangyi Ammonia Fermented Alcohol
Brewery Eco- and Baijiu Industry 30 mg/L
nitrogen
Park TP (GB2731-2011) 3 mg/L
TN 50 mg/L
Suspended
solids
Five-day BOD 80 mg/L
Chroma 80
Noise monitoring
Emission Standard
points 1-4# at
for Noise of Industrial
the boundary of Daytime: 65 dB (A);
Boundary noise Enterprises at 1 time/quarter Manual 100%
Huangyi nighttime: 55 dB (A)
Boundary (GB12348-
Brewery Eco-
Park
Emission Standards
Odor
for Odor Pollutants 20
Unorganized concentration
(GB14554- 93)
monitoring
points 1#-7# at Sichuan Emission 1 time/half-year Manual 100%
Xiaoshi Brewery Control Standard for
NMHC Volatile Organic 2.0 mg/m
Base
Compounds
(DB51/2377-2017)
Boiler exhaust Ringelman
Emission Standards ≤1
gas vents emittance
for Air Pollutants for 1 time/year
DA001-DA010 Soot 20 mg/m3 Manual 100%
Boiler (GB13271-
of Xiaoshi Sulfur dioxide: 2014) 50 mg/m3
Brewery Base Nitrogen oxide 150 mg/m3 1 time/month
Noise monitoring Emission Standard
points at the for Noise of Industrial
boundary of Boundary noise Enterprises at Daytime: 60 dB (A) 1 time/quarter Manual 100%
Xiaoshi Brewery Boundary (GB12348-
Base 2008)
Emission Standards
Unorganized Odor
for Odor Pollutants 20
monitoring concentration
(GB14554- 93)
points of
National Cellar Sichuan Emission 1 time/half-year Manual 100%
Control Standard for
and
Zaojiaoxiang NMHC Volatile Organic 2.0 mg/m3
Compounds
Brewery Bases
(DB51/2377-2017)
Boiler exhaust Ringelman
≤1
gas vents emittance
Emission Standards 1 time/year
DA001-DA003 Soot 20 mg/m3
for Air Pollutants for
of National Sulfur dioxide: 50 mg/m3 Manual 100%
Boiler (GB13271-
Cellar and
Zaojiaoxiang Nitrogen oxide 150 mg/m3 1 time/month
Brewery Bases
Noise monitoring
points at the Emission Standard
boundary of for Noise of Industrial
National Cellar Boundary noise Enterprises at Daytime: 60 dB (A) 1 time/quarter Manual 100%
and Boundary (Class 4
Zaojiaoxiang for street frontage)
Brewery Bases
Rainwater outlet Suspended Standards for the
DW003 of solids Emission of Water
time/quarter in
National Cellar Pollutants in the
case of no Manual 100%
and Fermented Alcohol
COD 50 mg/L abnormalities
Zaojiaoxiang and Baijiu Industry
monitored)
Brewery Bases (GB2731-2011)
Administrative penalties received in the reporting period due to environmental issues
The Company or Reason for Impact on the
Regulation violated Penalties Rectification
subsidiary penalties Company
N/A
Other information about environmental protection that should be disclosed
N/A
Measures taken to reduce carbon emissions during the reporting period and the results
? Applicable ? N/A
The Company reduced CO2 emissions through resource recycling. It developed a WSR energy-
saving system for bran steamers, and achieved the pressure recovery and utilization of waste heat
steam through the exchange of waste heat steam of the bran steamer. During the Reporting Period,
the energy-saving system saved steam of approximately 7,995 tons and reduced carbon dioxide of
approximately 1,900 tons. The Company recycled the marsh gas generated from the wastewater
treatment process as boiler fuel, with more than 1.7 million cubic meters of marsh gas recycled during
the Reporting Period, and more than 25,000 tons of carbon dioxide emissions were reduced.
Other information about environment protection
N/A
The Company effectively enhanced its political and social responsibilities, thoroughly implemented
the arrangements and deployments by the Party committees at all levels for rural revitalization,
consolidated and expanded the results of poverty alleviation with high quality, and solidly promoted
comprehensive rural revitalization. In the first half of 2023, the Company went to Xiangtian Village,
Longshan Township, Gulin County, to carry out 2023 Chinese New Year greeting activities,
distributing cash and supplies to 467 poverty-stricken households, needy households and ordinary
farmers. It launched the 2022 Leaders in Rural Revitalization and Moral Awards as well as Advanced
Models to select excellent contributors and distribute incentives to them. In addition, the Company
launched public welfare activities such as the Public Service Action of the National Team and the
"Rural Revitalization" Public Welfare Project of Luzhou Laojiao as well as the distribution of chicks in
Chinese New Year greeting activities, distributing cash and supplies to 101 assisted households. CNY
Company continuously carried out the activity of "purchase instead of donation" by buying designated
supported agricultural products with CNY 1,011,200. The Company's village members stationed in
Guntang Village, Maiwa Township, Hongyuan County, were awarded the "Excellent Village Members
in Aba Prefecture", and Guntang Village under the paired assistance of the Company was awarded
the "Excellent Key Village of Rural Revitalization in Aba Prefecture".
Section VI Significant Events
related parties and acquirer, as well as the Company and other
commitment makers fulfilled in the reporting period or ongoing by the
end of this reporting period
? Applicable ? N/A?
No such cases in the reporting period.
its related parties for non-operating purposes
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
Are the interim financial statements audited?
□ Yes ? No
The interim financial statements are not audited.
regarding the "Non-standard audit opinion" for the reporting period
? Applicable ? N/A
audit opinion" of Last Year
? Applicable ? N/A
? Applicable ? N/A?
No such cases in the reporting period.
Material litigation and arbitration
? Applicable ? N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
The Company The Company
filed a lawsuit For the losses applied to
with ABC that the Hunan
Changsha Company Province
Yingxin cannot Higher
Branch over a recover People's Court
deposit through for
dispute, and criminal enforcement
the case has execution of the verdict.
been The second procedures, Hunan
completed in trial has been 40% shall be Province
Higher See Section
the first concluded, borne by ABC
People's Court 15 October VI “Other
instance of 14,942.5 No and the case Changsha
ruled that 2014 significant
Hunan is now at the Yingxin
Hunan events”
Province stage of Branch, 20%
Higher enforcement. shall be borne Changsha
People's Court by ABC Intermediate
and the final Changsha People’s Court
trial of the Hongxin should see to
Supreme Branch and the execution
People's the rest shall of the verdict.
Court. The be borne by Upon the
case is now at the Company enforcement,
the stage of itself. the banks
enforcement. have paid part
of the
compensation
s.
The banks
have paid part
of the
compensation
s. As there
ICBC
was a dispute
The Company Nanyang
over the
filed a lawsuit Zhongzhou
verdict, the
with ICBC Branch, ICBC
Company
Nanyang Nanyang
applied to
Zhongzhou Branch, and
Henan
Branch over a Sanya Rural
Province
deposit Commercial
Higher
dispute, and Bank Hongsha
People's Court
the case has Branch shall
for
been The second pay
enforcement
completed in trial has been compensation
of the verdict. See Section
the first concluded, s of CNY 75
Henan 10 January VI “Other
instance of 15,000 No and the case million, CNY
Province 2015 significant
Henan is now at the 7.5 million and
Higher events”
Province stage of CNY 6.105
People's Court
Higher enforcement. million
ruled that
People's Court respectively
Nanyang
and the final with the
Intermediate
trial of the relevant
People’s Court
Supreme interest to the
should see to
People's Company, and
the execution
Court. The the rest of the
of the verdict.
case is now at loss shall be
The case is
the stage of borne by the
now at the
enforcement. Company
stage of
itself.
enforcement
by Nanyang
Intermediate
People’s
Court.
Other litigation
? Applicable ? N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
Other
litigations that
do not meet
the standard No significant
of a material impact
litigation which
is required to
be disclosed
? Applicable ? N/A
shareholder and actual controller
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
interests
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A?
The Company did not make deposits in, receive loans or credit from and was not involved in any
other finance business with any related finance company or any of its related parties.
related parties
? Applicable ? N/A?
No related parties made deposits in, received loans or credit from or was involved in any other
finance business with any finance company controlled by the Company.
? Applicable ? N/A?
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
Unit: CNY 10,000
Impairment
Fund source for Amount of Overdue allowances for
Type entrusted assets entrusted assets Undue balance outstanding the overdue
management management amount outstanding
amount
Wealth
management
product of Own funds 60,000 20,000 0 0
securities
company
Wealth
management
Own funds 30,000 0 0 0
product of trust
company
Others Own funds 20,000 0 0 0
Total 110,000 20,000 0 0
Particulars of high risk wealth management products with a significant single amount, low security,
poor liquidity or no principal protection
? Applicable ? N/A
Expected inability to recover the principal of entrusted assets management or other circumstances
that may result in impairment
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
The Company disclosed in October 2014 and January 2015 respectively the contract disputes
involving three savings deposits of CNY 500 million in total with banks including ABC Changsha
Yingxin Branch and ICBC Nanyang Zhongzhou Branch. Upon criminal booty recovery, criminal and
civil enforcement, as of the date of this Report, the Company had recovered a total amount of CNY
See details in the Company’s announcements:
Date of announcement No. Catalogue Official website
Announcement of significant http://www.cninfo.com.cn/
litigation
Announcement of significant
litigation progress
Announcement of significant
litigation progress part II
Announcement of significant
events
Announcement of significant
events progress
Announcement of significant
litigation progress part III
Announcement of significant
litigation progress part IV
Announcement of significant
events progress part II
Announcement of significant
litigation progress part V
Announcement of significant
litigation progress part VI
Announcement of significant
litigation progress part VII
Announcement of significant
litigation progress part VIII
Announcement of significant
litigation progress part IX
Announcement of significant
litigation progress part X
Announcement of significant
litigation progress part XI
Announcement of significant
litigation progress part XII
Announcement of significant
litigation progress part XIII
Announcement of significant
litigation progress part XIV
Announcement of significant
litigation progress part XV
Announcement of significant
litigation progress part XVI
? Applicable ? N/A
The Company invested in the technical upgrade program of intelligent brewing (Phase I) with the
wholly-owned subsidiary, Brewing Company, as the implementer. The total investment amount
approximated CNY 4,782.5090 million. For further information, see Announcement No. 2022-24 on
the Implementation of Luzhou Laojiao’s Technical Upgrade Program of Intelligent Brewing (Phase I)
by Subsidiary. The program is currently under construction.
Section VII Changes in Shares and Information about
Shareholders
Unit：Share
Before Changes in this period (＋，－) After
Issuanc Capitalizati
Proportio e of Bonus on of Proportio
Number Other Subtotal Number
n new shares capital n
shares reserves
I.
Restricted 7,390,545 0.50% 92,669 -14,625 78,044 7,468,589 0.51%
shares
held by the
state
held by
state-
owned
corporatio
ns
held by
other 7,390,545 0.50% 92,669 -14,625 78,044 7,468,589 0.51%
domestic
investors
Of which:
shares
held by
domestic
corporatio
ns
Shares
held by
domestic 7,390,545 0.50% 92,669 -14,625 78,044 7,468,589 0.51%
individuals
held by
foreign
corporatio
ns
Of which:
shares
held by
foreign
corporatio
ns
Shares
held by
foreign
individuals
II. Non-
restricted 1,464,504,555 99.50% 14,625 14,625 1,464,519,180 99.49%
shares
common 1,464,504,555 99.50% 14,625 14,625 1,464,519,180 99.49%
shares
Domestical
ly listed
foreign
shares
Overseas
listed
foreign
shares
III. Total
shares 1,471,895,100 100.00% 92,669 92,669 1,471,987,769 100.00%
Reasons for the change in shares
? Applicable ? N/A
The Company’s reserved restricted shares for 2021 Restricted Share Incentive Plan were listed on 17
February 2023 and 92,669 restricted shares were added.
Shen Caihong were lifted from restricted sales on 3 January 2023.
Approval of share changes
? Applicable ? N/A
On 29 December 2022, the Proposal on the Grant of Reserved Restricted Shares to Awardees was
deliberated and approved at the 26th Meeting of the 10th Board of Directors and the 15th Meeting of
the 10th Board of Supervisors, respectively. As such, it was decided to grant the restricted shares to
eligible awardees and the grant was completed and registered on 16 February 2023. A total of 92,669
restricted shares were granted to 17 awardees as registered, which were listed on 17 February 2023.
Transfer of share ownership
? Applicable ? N/A
Implementation progress of shares repurchases
□ Applicable ? N/A
Implementation progress of share buyback reduction through centralized bidding
□ Applicable ? N/A
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and the last
reporting period
? Applicable ? N/A
Other contents that the Company considers it necessary or required by the securities regulatory
authorities to disclose
? Applicable ? N/A
? Applicable □ N/A
Unit：Share
Number of Decrease in Increase in Number of
Name of Reason for Date of
restricted restricted restricted restricted
shareholder restriction unlocking
shares held at shares during shares during shares held at
the beginning the reporting the reporting the end of the
of the period period reporting
reporting period
period
For locked-up
shares of
senior
management,
shares are
unlocked and
become
Locked-up
transferable
shares of
on a yearly
senior
basis as
management,
legally
Shen Caihong 180,481 14,625 0 165,856 and shares
allowed. For
granted under
restricted
restricted
shares, see
share
Announcemen
incentive plan
t No. 2022-1
on the
Completion of
the Grant of
Restricted
Shares for the
unlocking
dates.
In accordance
with the
relevant
provisions
governing
lifting the
Restricted shares for
Share equity
the
Incentive Plan incentive
Company’s
Restricted
Share
Incentive Plan
Total 7,323,105 14,625 92,669 7,401,149 -- --
? Applicable □ N/A
Name of Offering Number Date of Index to
stock and Date of price (or Number Date of approved terminatio disclosed Date of
derivative offering interest offered listing for public n of informatio disclosure
securities rate) trading trading n
Stocks
CNY 17 Announce 16
Restricted
shares
are 2023 2023-3 on 2023
the
Completio
n of the
Grant of
Reserved
Restricted
Shares for
Restricted
Share
Incentive
Plan
disclosed
on
www.cninf
o.com.cn
Convertible corporate bonds, convertible corporate bonds with warrants, or corporate debt
Other derivative securities
Notes to the offering of securities during the reporting period
See “4. Implementation of any equity incentive plan, employee stock ownership plan or other
incentive measures for employees” in “Section IV Corporate Governance”.
Unit：Share
Total number of common Total number of preferred shareholders with
shareholders at the end of 94,905 resumed voting rights by the end of the 0
the reporting period reporting period (if any)(see Note 8)
Shareholdings of common shareholders with a shareholding percentage over 5% or the top 10 common shareholders
Total Pledged, marked or frozen
common Increase/de Number of Number of shares
Shareholdin shares held crease holding holding non-
Name of Nature of
g by the end during the restricted restricted
shareholder shareholder Status of Number of
percentage of the reporting common common
shares shares
reporting period shares shares
period
Luzhou
Laojiao State-owned
Group Co., corporation 25.89% 381,088,389 0 0 381,088,389
Ltd.
Luzhou
XingLu
State-owned
Investment 24.86% 365,971,142 0 0 365,971,142
corporation
Group Co.,
Ltd.
Hong Kong
Securities
Outbound
Clearing 3.76% 55,338,732 9,726,076 0 55,338,732
corporation
Company
Limited
Bank of
China Co.,
Ltd. – Baijiu
index
classification
securities Other 2.33% 34,242,713 -11,833,513 0 34,242,713
investment
fund by
China
Merchants
Fund
China
Securities
Finance Other 2.30% 33,842,059 0 0 33,842,059
Corporation
Limited
Bank of
China Co.,
Ltd.－Blue
chip
selected Other
hybrid 1.48% 21,800,000 -1,130,000 0 21,800,000
securities
investment
fund by E
Fund
Industrial
and
Commercial
Bank of
China Co.,
Ltd.-Newly
growth Other 1.01% 14,929,100 -2,744,677 0 14,929,100
hybrid
securities
investment
fund by
Invesco
Great Wall
Central
Huijin Asset State-owned
Managemen corporation 0.92% 13,539,862 0 0 13,539,862
t Co., Ltd.
China Life
Insurance
Company
Limited-
Tradition-
common Other 0.67% 9,879,080 1,285,066 0 9,879,080
insurance
product-
CT001 Hu
Agricultural
Bank of
China Co.,
Ltd. -
Consumptio
n industry
Other 0.64% 9,432,832 -1,140,461 0 9,432,832
stock -
based
securities
investment
fund by E
Fund
Strategic investors or
general corporations
become the top-ten
shareholders due to placing N/A
of new shares（if any）（see
note 3）
owned companies under the jurisdiction of SASAC of Luzhou. The two companies signed the agreement of
persons acting in concert on 31 December 2015. For details, please refer to the announcement of the
Company on 5 January 2016 - Announcement on the agreement of persons acting in concert signed by
Related parties or acting-in- shareholders. The announcement number is 2016-1 (http://www.cninfo.com.cn/). The two companies signed
concert the renewed agreement of persons acting in concert on 27 May 2021. For details, please refer to the
announcement of the Company on 29 May 2021 - Announcement on the renewed agreement of persons
acting in concert signed by shareholders. The announcement number is 2021-18 (http://www.cninfo.com.cn/).
acting in concert is unknown.
Explain if any of the
shareholders above was
involved in entrusting/being
entrusted with voting rights N/A
or waiving voting rights
Special account for
repurchased shares among N/A
the top 10 shareholders (if
any) (see note 11)
Shareholdings of the top 10 non-restricted shareholders
Type of shares
Name of shareholder Number of non-restricted shares held in by the end of the reporting period
Type Number
CNY
Luzhou Laojiao Group Co.,
Ltd.
shares
CNY
Luzhou XingLu Investment
Group Co., Ltd.
shares
CNY
Hong Kong Securities
Clearing Company Limited
shares
Bank of China Co., Ltd. –
CNY
Baijiu index classification
securities investment fund
shares
by China Merchants Fund
CNY
China Securities Finance
Corporation Limited
shares
Bank of China Co., Ltd.－
CNY
Blue chip selected hybrid common
securities investment fund 21,800,000 21,800,000
shares
by E Fund
Industrial and Commercial
Bank of China Co., Ltd.- CNY
Newly growth hybrid 14,929,100 common 14,929,100
securities investment fund shares
by Invesco Great Wall
CNY
Central Huijin Asset
Management Co., Ltd.
shares
China Life Insurance
Company Limited-Tradition- CNY
common insurance product-
shares
Agricultural Bank of China
Co., Ltd. - Consumption CNY
industry stock - based 9,432,832 common 9,432,832
securities investment fund shares
by E Fund
The statement of association
or acting-in-concert between
the top 10 shareholders of
unrestricted shares and
between the top 10 See the table above
shareholders of unrestricted
shares and top 10
shareholders
Top 10 common
shareholders participating in
securities margin trading (if N/A
any) (see note 4)
Did any of the top 10 common shareholders or the top non-restricted common shareholders of the
Company conduct any promissory repurchase during the reporting period.
? Yes ? No
The top 10 non-restricted common shareholders, the top10 common shareholders did not conduct
any promissory repurchase during the reporting period.
management
? Applicable □ N/A
Decrease
Increase in Restricted
in Opening Closing
shareholdi shares
Opening shareholdi Closing restricted restricted
Incumbent/ ng in the granted in
Name Office title shareholdi ng in the shareholdi shares shares
former current the current
ng (share) current ng (share) held held
period period
period (share) (share)
(share) (share)
(share)
Deputy
Shen
general Incumbent 195,575 0 15,094 180,481 0 0 0
Caihong
manager
Total -- -- 195,575 0 15,094 180,481 0 0 0
Change of the controlling shareholder during the reporting period
? Applicable ? N/A
No such cases in the reporting period.
Change of the actual controller during the reporting period
? Applicable ? N/A
The actual controller of the Company has not changed during the reporting period.
Section VIII Preferred Shares
? Applicable ? N/A
No preferred stock in the Company during the reporting period.
Section IX Information about Bond
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
Unit: CNY
Way of
Bond Interest Place of
Name Abbr. Code Issue date Value date Due date redemptio
balance rate trading
n
In terms of
the bonds
of this
phase,
interests
will be paid
by year
Public principal
Offering of will be
Corporate repaid in
Bond of lump sum
Shenzhen
Luzhou 20 Lao 16 March 17 March 17 March at maturity.
Laojiao Jiao 01 2020 2020 2025 The
Exchange
Co., Ltd. interests
for will be paid
Qualified once every
Investors year and
(Phase I) the
interests
for the last
installment
will be paid
together
with the
principal.
In terms of
Public of this
Offering of phase,
Corporate interests
Bond of will be paid
Luzhou 2 2 2 by year Shenzhen
Laojiao 148133.SZ December December December 150,000 2.85% and the Stock
Co., Ltd. 2022 2022 2025 principal Exchange
for will be
Profession repaid in
al lump sum
Investors at maturity.
(Phase I) The
interests
will be paid
once every
year and
the
interests
for the last
installment
will be paid
together
with the
principal.
The bonds are applicable to eligible investors who have qualified securities accounts with
Shenzhen Branch of China Securities Depository and Clearing Co., Ltd., are permitted to engage
in the subscription and transfer of corporate bonds in accordance with the Management Measures
Appropriate arrangement of the for the Issue and Transaction Management of Corporate Bonds, Management Measures for the
investors (if any) Suitability of Securities and Futures Investors, Management Measures of Shenzhen Stock
Exchange for the Suitability of Securities Mark et Investors, and relevant laws and regulations, and
have the corresponding risk identification and bearing capacity (excluding those prohibited by laws
and regulations)
Trading systems applicable Tradable by way of bidding, offering, inquiry and agreement
Risk of termination of listing and trading
N/A
(if any) and countermeasures
Overdue bonds
? Applicable ? N/A
protection clauses
? Applicable ? N/A
? Applicable ? N/A
other repayment-ensuring measures in the reporting period, as well as the impact
on the interests of bond holders
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
at the end of last year
? Applicable ? N/A
Unit：CNY 10,000
Item 30 June 2023 31 December 2022 Change
Current ratio 3.26 3.15 3.49%
Debt/asset ratio 42.72% 33.19% 9.53%
Quick ratio 2.45 2.20 11.36%
H1 2023 H1 2022 Change
Net profits before non-
recurring gains and losses
EBITDA/debt ratio 80.25% 190.37% -110.12%
Interest cover (times) 37.35 62.60 -40.34%
EBITDA-to-interest cover
(times)
Section X Financial Report
Are these interim financial statements audited by an independent auditor?
□Yes ? No
The interim financial statements are not audited by an independent auditor.
Monetary unit for the financial statements and the notes thereto: CNY
Prepared by: Luzhou Laojiao Co., Ltd.
Consolidated balance sheet
As at 30 June 2023
Monetary Unit: CNY
Item Balance as at 30 June 2023 Balance as at 1 January 2023
Current assets:
Cash and cash equivalents 30,344,475,538.13 17,757,528,211.25
Settlement reserves
Lending funds
Held-for-trading financial assets 200,056,716.13 1,073,466,780.37
Derivative financial assets
Notes receivables
Accounts receivables 14,720,743.59 5,939,420.78
Accounts receivables financing 2,765,330,012.77 4,583,352,503.37
Prepayment 182,055,446.82 114,257,506.26
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 31,543,283.03 23,396,533.98
Including：Interests receivable
Dividends receivable 15,482,200.48
Buying back the sale of financial
assets
Inventories 10,794,156,136.00 9,840,742,374.85
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 109,151,844.19 153,035,946.94
Total current assets 44,441,489,720.66 33,551,719,277.80
Non-current assets:
Disbursement of loans and advances
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2,721,676,735.14 2,667,500,553.17
Investments in other equity 445,414,722.85 1,136,736,978.11
instruments
Other non-current financial assets
Investment property 38,467,435.50 39,149,454.22
Fixed assets 8,616,388,591.11 8,856,258,598.78
Construction in progress 1,209,595,255.85 808,919,047.21
Productive biological assets
Oil and gas assets
Use right assets 29,616,062.33 39,952,525.63
Intangible assets 3,057,058,000.96 3,083,271,852.79
Development expenses
Goodwill
Long-term deferred expenses 449,989.24 710,010.92
Deferred tax assets 667,166,561.57 1,005,167,353.80
Other non-current assets 297,385,638.50 196,095,702.09
Total non-current assets 17,083,218,993.05 17,833,762,076.72
Total assets 61,524,708,713.71 51,385,481,354.52
Current liabilities:
Short-term loans
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 2,164,798,164.42 2,311,665,585.04
Advance from customer
Contract liabilities 1,933,610,554.94 2,566,374,718.76
Financial assets sold for repurchase
Deposits from customers and inter-
bank
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee benefits payable 512,496,183.96 675,034,885.31
Taxes payable 1,266,525,574.18 3,481,150,728.98
Other payable 7,411,558,110.90 1,202,409,278.49
Including：Interests payable
Dividends payable 6,235,743,174.61 16,594,850.58
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 251,369,372.14 333,627,225.47
Total current liabilities 13,620,689,882.11 10,652,141,888.68
Non-current liabilities:
Insurance contract reserves
Long-term loans 9,515,100,000.00 3,179,600,000.00
Bonds payable 2,996,918,980.27 2,996,099,571.86
Including：Preferred shares
Perpetual bonds
Lease liabilities 26,095,309.94 29,096,969.66
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 29,474,054.74 33,704,323.80
Deferred tax liabilities 92,383,522.19 166,043,663.88
Other non-current liabilities
Total non-current liabilities 12,659,971,867.14 6,404,544,529.20
Total liabilities 26,280,661,749.25 17,056,686,417.88
Owners' equity
Share capital 1,471,987,769.00 1,471,895,100.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 5,004,570,088.84 4,800,154,468.99
Less: treasury stock 616,743,610.59 639,021,998.78
Other comprehensive income 95,067,381.86 330,751,245.84
Special reserves
Surplus reserves 1,471,895,100.00 1,471,895,100.00
General risk reserve
Undistributed profits 27,659,691,330.23 26,772,197,213.98
Total equity attributable to owners of
the parent company
Non-controlling interests 157,578,905.12 120,923,806.61
Total owners' equity 35,244,046,964.46 34,328,794,936.64
Total liabilities and owners' equity 61,524,708,713.71 51,385,481,354.52
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Yan Li
Balance sheet of parent company
As at 30 June 2023
Monetary Unit: CNY
Item Balance as at 30 June 2023 Balance as at 1 January 2023
Current assets:
Cash and cash equivalents 29,113,981,970.11 17,009,231,873.64
Held-for-trading financial assets 200,056,716.13 974,505,894.18
Derivative financial assets
Notes receivables
Accounts receivables 268,133.64 47,500.00
Accounts receivables financing
Prepayment 31,417,459.45 2,141,256.01
Other receivables 14,222,162,555.22 12,042,401,844.84
Including：Interests receivable
Dividends receivable 15,482,200.48
Inventories 2,109,542.02 2,499,333.08
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 1,583,315.11 34,163.66
Total current assets 43,571,579,691.68 30,030,861,865.41
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 6,441,833,480.01 6,278,966,093.87
Investments in other equity
instruments
Other non-current financial assets
Investment property 38,467,435.50 39,149,454.22
Fixed assets 984,217,783.36 1,021,509,077.72
Construction in progress 53,342,460.87 49,136,390.14
Productive biological assets
Oil and gas assets
Use right assets 394,608.65 600,190.05
Intangible assets 605,083,818.49 617,211,243.56
Development expenses
Goodwill
Long-term deferred expenses 311,133.65 548,507.41
Deferred tax assets 165,886,388.87 147,351,049.81
Other non-current assets 26,051,835.42 14,808,459.12
Total non-current assets 8,760,699,746.04 9,305,713,522.38
Total assets 52,332,279,437.72 39,336,575,387.79
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 14,098,047.06 51,174,790.68
Advance from customer
Contract liabilities 2,369,943.95 1,510,508.26
Employee benefits payable 234,339,145.78 241,471,148.70
Taxes payable 205,614,877.02 381,259,266.93
Other payables 14,293,353,474.50 1,730,335,596.91
Including：Interests payable
Dividends payable 6,219,148,324.03
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 308,092.71 196,366.07
Total current liabilities 14,821,373,218.60 2,473,621,613.82
Non-current liabilities:
Long-term loans 9,515,100,000.00 3,179,600,000.00
Bonds payable 2,996,918,980.27 2,996,099,571.86
Including：Preferred shares
Perpetual bonds
Lease liabilities 205,664.46 203,920.20
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income
Deferred tax liabilities 59,507,481.05 132,565,131.74
Other non-current liabilities
Total non-current liabilities 12,571,732,125.78 6,308,468,623.80
Total liabilities 27,393,105,344.38 8,782,090,237.62
Owners' equity
Share capital 1,471,987,769.00 1,471,895,100.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 4,996,441,364.97 4,789,603,151.65
Less: treasury stock 616,743,610.59 639,021,998.78
Other comprehensive income 91,695,375.87 328,542,995.36
Special reserves
Surplus reserves 1,471,895,100.00 1,471,895,100.00
Undistributed profits 17,523,898,094.09 23,131,570,801.94
Total owners' equity 24,939,174,093.34 30,554,485,150.17
Total liabilities and owners' equity 52,332,279,437.72 39,336,575,387.79
Consolidated income statement
Monetary Unit: CNY
Item H1 2023 H1 2022
Including: Operating revenue 14,593,051,774.14 11,664,377,552.94
Interest income
Earned premium
Fee and commission
income
Including: Cost of sales 1,700,263,105.68 1,642,310,550.61
Interest expense
Handling charges and
commission expenses
Refunded premiums
Net payments for
insurance claims
Net provision for
insurance contracts
Bond insurance expense
Reinsurance Expenses
Taxes and surcharges 1,593,958,974.95 1,045,859,768.74
Selling and distribution
expenses
General and administrative
expenses
Research and Development
expenses
Financial expenses -125,783,791.43 -126,988,421.10
Including：Interest expenses 261,543,693.36 119,589,682.10
Interest income 384,116,432.10 237,072,806.72
Plus: Other income 23,395,940.16 10,744,728.17
Investment income ("-" for losses) 85,024,194.55 57,499,481.86
Including: income from
investment in associates and joint 70,278,286.49 37,796,914.64
ventures
Income from the
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Foreign exchange gains ("-"
for losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
values(“-“ for losses)
Credit impairment losses (“-”
for losses)
Impairment losses(“-“ for
losses)
Gains from disposal of
-477,479.38 19,789,402.07
assets("-" for losses)
Plus: non-operating income 14,479,518.98 11,135,733.33
Less: non-operating expenses 6,972,586.95 1,949,009.51
total losses) 9,506,984,141.75 7,374,678,778.61
Less: income tax expenses 2,385,359,516.12 1,800,020,542.39
operation ("-" for losses)
operation ("-" for losses)
parent company ("-" for losses)
interests ("-" for losses)
comprehensive income -218,514,527.93 -25,120,502.64
Net of tax from other comprehensive
income to the owner of the parent -219,468,210.77 -26,408,043.89
company
cannot reclassified into the profit and -221,898,677.10 -18,914,133.57
loss:
indebtedness or net asset of defined
benefit plans
income that cannot be classified into 131,244.39
profit and loss under equity method
investments in other equity -222,029,921.49 -18,914,133.57
instruments
company’s credit risks
that will be reclassified into the profit 2,430,466.33 -7,493,910.32
and loss
income that will be classified into 1,266,710.82 -9,066,533.27
profit and loss under equity method
investments in other debt obligations
arising from the reclassification of
financial assets
investments in other debt obligations
translation of foreign currency 1,163,755.51 1,572,622.95
financial statements
Net of tax from other comprehensive
income to non-controlling interests
Total comprehensive income
attributable to owners of the parent 6,870,958,576.30 5,505,518,296.55
company
Total comprehensive income
attributable to non-controlling 32,151,521.40 44,019,437.03
interests
(1) Basic earnings per share 4.82 3.76
(2) Diluted earnings per share 4.82 3.76
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Yan Li
Income statement of parent company
Monetary Unit: CNY
Item H1 2023 H1 2022
Less: Cost of sales 3,042,254,948.12 1,385,687,450.52
Taxes and surcharges 37,573,415.96 21,846,321.17
Selling and distribution expenses
General and administrative
expenses
Research and Development
expenses
Financial expenses -227,960,702.16 -213,866,445.14
Including：Interest expenses 160,806,004.01 22,117,787.32
Interest income 389,316,203.47 236,000,565.63
Plus: Other income 15,751,969.90 2,964,466.60
Investment income ("-" for
losses)
Including: income from
investment in associates and joint 55,379,409.84 25,579,283.02
ventures
Income from the
derecognition of financial assets at
amortized cost (“-” for losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
values(“-“ for losses)
Credit impairment losses (“-”
for losses)
Asset impairment losses (“-”
for losses)
Gains from disposal of assets("-"
-651,767.48 19,786,813.38
for losses)
Plus: non-operating income 11,214,036.19 5,439,905.79
Less: non-operating expenses 5,679,506.55 1,671,093.97
total losses) 796,492,413.84 465,111,097.07
Less: income tax expenses 201,232,450.87 85,788,728.92
operation ("-" for losses)
operation ("-" for losses)
comprehensive income -220,631,966.28 -27,980,666.84
cannot reclassified into the profit and -221,898,677.10 -18,914,133.57
loss:
indebtedness or net asset of defined
benefit plans
income that cannot be classified into
profit and loss under equity method
investments in other equity -222,029,921.49 -18,914,133.57
instruments
company’s credit risks
that will be reclassified into the profit 1,266,710.82 -9,066,533.27
and loss
income that will be classified into 1,266,710.82 -9,066,533.27
profit and loss under equity method
investments in other debt obligations
arising from the reclassification of
financial assets
investments in other debt obligations
translation of foreign currency
financial statements
(1) Basic earnings per share 0.39 0.24
(2) Diluted earnings per share 0.39 0.24
Consolidated statement of cash flows
Monetary Unit: CNY
Item H1 2023 H1 2022
activities
Cash received from sale of goods
and rendering of services
Net increase in customer bank
deposits and placement from banks
and other financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received from original
insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interest, handling
charges and commissions
Net increase in placements from
other financial institutions
Net capital increase in repurchase
business
Net cash received from customer
brokerage deposits
Refunds of taxes and surcharges 268,904.22 89,261,122.49
Cash received from other operating
activities
Subtotal of cash inflows from
operating activities 18,043,890,140.62 15,463,464,148.59
Cash paid for goods purchased and
services received
Net increase in loans and advances
to customers
Net increase in deposits in central
bank and other banks and financial
institutions
Cash paid for original insurance
contract claims
Net increase in lending funds
Cash paid for interests, handling
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges 7,376,131,406.36 5,713,535,332.59
Cash paid for other operating
activities
Subtotal of cash outflows from
operating activities 12,396,129,343.58 11,386,449,183.25
Net cash flows from operating
activities 5,647,760,797.04 4,077,014,965.34
activities
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and 6,151,397.95 47,943,500.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities 1,510,878,291.69 868,911,192.92
Cash paid to acquire and construct
fixed assets, intangible assets and 578,623,738.47 587,312,805.01
other long-term assets
Cash paid for investments 200,000,000.00 1,440,000,000.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities 778,623,738.47 2,027,312,805.01
Net cash flows from investing
activities 732,254,553.22 -1,158,401,612.09
activities
Cash received from investors 10,373,040.14 636,231,646.00
Including: cash received by
subsidiaries from investments by 2,082,314.40
minority shareholders
Cash received from borrowings 6,350,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 6,360,373,040.14 636,231,646.00
Cash paid for debt repayments 10,100,000.00
Cash paid for distribution of
dividends and profits or payment of 154,205,652.79 52,502,625.00
interest
Including: dividends and profits paid
to minority shareholders by
subsidiaries
Cash paid for other financing
activities
Subtotal of cash outflows from
financing activities 165,422,921.43 56,862,819.01
Net cash flows from financing
activities 6,194,950,118.71 579,368,826.99
rate on cash and cash equivalents 7,563,547.16 14,324,990.43
equivalents 12,582,529,016.13 3,512,307,170.67
Plus: balance of cash and cash
equivalents at the beginning of the 17,729,006,591.87 13,402,528,941.83
period
equivalents at the end of the 30,311,535,608.00 16,914,836,112.50
period
Cash flow statements of parent company
Monetary Unit: CNY
Item H1 2023 H1 2022
activities
Cash received from sale of goods
and rendering of services
Refunds of taxes and surcharges
Cash received from other operating
activities
Subtotal of cash inflows from
operating activities 8,635,196,431.97 6,093,833,623.87
Cash paid for goods purchased and
services received
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges 634,932,605.73 451,760,425.43
Cash paid for other operating
activities
Subtotal of cash outflows from
operating activities 3,858,801,288.97 2,808,716,657.98
Net cash flows from operating
activities 4,776,395,143.00 3,285,116,965.89
activities
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and 271,899.30 47,943,500.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities 1,403,577,363.77 868,870,566.08
Cash paid to acquire and construct
fixed assets, intangible assets and 52,057,717.59 53,052,249.25
other long-term assets
Cash paid for investments 220,000,000.00 1,440,000,000.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities 272,057,717.59 1,493,052,249.25
Net cash flows from investing
activities 1,131,519,646.18 -624,181,683.17
activities
Cash received from investors 8,290,725.74 636,231,646.00
Cash received from loans 6,350,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 6,358,290,725.74 636,231,646.00
Cash paid for debt repayments 10,100,000.00
Cash paid for distribution of
dividends and profits or payment of 154,205,652.79 52,502,625.00
interest
Cash paid for other financing
activities
Subtotal of cash outflows from
financing activities 164,382,332.79 52,763,767.60
Net cash flows from financing
activities 6,193,908,392.95 583,467,878.40
rate on cash and cash equivalents 290,791.42
equivalents 12,102,113,973.55 3,244,403,161.12
Plus: balance of cash and cash
equivalents at the beginning of the 16,991,891,937.50 12,938,983,758.82
period
equivalents at the end of the 29,094,005,911.05 16,183,386,919.94
period
Consolidated statement of changes in owners' equity
For the six months ended 30 June 2023
Monetary Unit: CNY
H1 2023
Equity attributable to owners of the parent company
Other equity Othe Non- Tota
instruments Less r cont l
： Gen Undi
Item Shar Capi Com Spe Surp rolli own
Pref Perp eral strib
e tal Trea preh cial lus Othe Subt ng ers'
erre etua risk uted
capi Othe rese sury ensi rese rese r otal inter equi
d l rese profi
tal r rve stoc ve rve rve ests ty
stoc bon rve t
k Inco
k d
me
at 31 1,89 0,15 021, 751, 1,89 923,
December of 97,2 71,1 94,9
last year 13.9 30.0 36.6
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Business
combinations
under
common
control
Others
at 1 January 1,89 0,15 021, 751, 1,89 923,
of the current 97,2 71,1 94,9
year 13.9 30.0 36.6
ecreases in 92,6 22,2 235,
the current 415, 494, 596, 55,0 252,
period (“-” 69.0 78,3 683,
for 0 88.1 863.
decreases) 85 25 31 1 82
(1) Total 219,
comprehensiv 468,
e income 6,78 8,57 21.4 0,09
(2) Capital 204, 226, 231,
contributed or 415, 786, 290,
reduced by 69.0 78,3 3,57
owners 0 88.1 7.11
Capital 92,6 8,19 8,29 2,08 2,08
contributions 69.0 8,05 0,72 2,31 2,31
by owners
Capital
contributions
by other
equity
instruments
holders
Amounts of 196, 226, 229,
share-based 30,5 2,42
payments 69,1 1,26
recognized in 564. 677. 939.
owners' equity 12.9 2.71
Others
- - -
(3) Profit
distribution 9,14 9,14 9,14
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
Profit - - -
distributed to 6,21 6,21 6,21
owners (or 9,14 9,14 9,14
shareholders)
Others
(4) Internal 16,2
carry-forward 15,6
of owners' 15,6
equity 53.2
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward -
of retained 16,2
earnings from 15,6
other 15,6
comprehensiv 53.2
e income 1
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
at 30 June of 1,98 4,57 743, 67,3 1,89 578,
the current 91,3 68,0 46,9
year 30.2 59.3 64.4
For the six months ended 30 June 2022
Monetary Unit: CNY
H1 2022
Equity attributable to owners of the parent company
Other equity Othe Non- Tota
instruments Less r cont l
： Gen Undi
Item Shar Capi Com Spe Surp rolli own
Pref Perp eral strib
e tal Trea preh cial lus Othe Subt ng ers'
erre etua risk uted
capi Othe rese sury ensi rese rese r otal inter equi
d l rese profi
tal r rve stoc ve rve rve ests ty
stoc bon rve t
k Inco
k d
me
at 31 4,75 5,35 527, 4,75 14,1
December of 60,2 47,0 61,1
last year 35.8 05.9 22.8
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Business
combinations
under
common
control
Others
at 1 January 4,75 5,35 527, 4,75 14,1
of the current 60,2 47,0 61,1
year 35.8 05.9 22.8
ecreases in 817, 613, 758, 942, 46,2 988,
the current 869, 969, 022, 377, 60,1 637,
period (“-” 2,60 08,0
for 0.00 43.8
decreases) 67 60 74 92 6 48
(1) Total 26,4
comprehensiv 08,0
e income 6,34 8,29 37.0 7,73
(2) Capital 817, 613, 210, 213,
contributed or 869, 969, 762, 003,
reduced by 2,60 0,70
owners 0.00 6.53
Capital 369, 231, 6,86 6,86
contributions
by owners 046. 646. 2,60 2,60
Capital
contributions
by other
equity
instruments
holders
Amounts of 188, 217, 219,
share-based 6,86 22,2 2,24
payments 2,60 62,2 0,70
recognized in 347. 222. 928.
owners' equity 0.00 74.4 6.53
Others
- - -
(3) Profit
distribution 3,91 3,91 3,91
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
- - -
Profit 4,77 4,77 4,77
distributed to
owners (or 3,91 3,91 3,91
shareholders) 9,30 9,30 9,30
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others 26.8 26.8 26.8
at 30 June of 1,61 3,22 969, 119, 4,75 274,
the current 82,8 24,2 98,5
year 96.6 44.8 05.3
Statement of changes in owners' equity of parent company
For the six months ended 30 June 2023
Monetary Unit: CNY
H1 2023
Other equity instruments Less Other
Capita ： Compr Specia Surplu Undist Total
Item Share Prefer Perpet l ehensi l s ribute owner
Treasu Other
capital red ual Other reserv ve reserv reserv d s'
e ry Incom e e profit equity
stock bond stock e
at 31
December of 895,10 603,15 1,998. 2,995. 895,10 ,570,8 ,485,1
last year 0.00 1.65 78 36 0.00 01.94 50.17
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Others
at January 1
of the current 895,10 603,15 1,998. 2,995. 895,10 ,570,8 ,485,1
year 0.00 1.65 78 36 0.00 01.94 50.17
ecreases in - - - -
the current 92,669 22,278 236,84 5,607, 5,615,
period (“-” 8,213.
.00 ,388.1 7,619. 672,70 311,05
for 32
decreases) 9 49 7.85 6.83
(1) Other 595,25 374,62
comprehensiv 9,962. 7,996.
e income 1,966.
(2) Capital 206,83 229,20
contributed or 92,669 22,278
reduced by 8,213. 9,270.
.00 ,388.1
owners 32 51
Capital 92,669 8,198, 8,290,
contributions 0.00
by owners .00 055.74 724.74
Capital
contributions
by other equity
instruments
holders
Amounts of -
share-based 198,64 229,20
payments 0,157. 9,270.
recognized in ,112.9
owners' equity 58 51
Others
- -
(3) Profit 6,219, 6,219,
distribution 148,32 148,32
Withdrawal of
surplus
reserves
Profit - -
distributed to 6,219, 6,219,
owners (or 148,32 148,32
shareholders)
Others
(4) Internal 16,215
carry-forward 16,215
of owners' ,653.2
,653.2
equity 1
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward - 16,215
of retained 16,215 ,653.2
earnings from
other ,653.2 1
comprehensiv 1
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
at 30 June of
the current 987,76 441,36 3,610. ,375.8 895,10 ,898,0 ,174,0
year 9.00 4.97 59 7 0.00 94.09 93.34
For the six months ended 30 June 2022
Monetary Unit: CNY
H1 2022
Other equity instruments Less Other
Capita ： Compr Specia Surplu Undist Total
Item Share Prefer Perpet l ehensi l s ribute owner
Treasu Other
capital red ual Other reserv ve reserv reserv d s'
e ry Incom e e profit equity
stock bond stock e
at 31
December of 752,47 666,10 2,013. 752,47 ,792,7 ,535,8
last year 6.00 8.27 86 6.00 75.01 49.14
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Others
at January 1
of the current 752,47 666,10 2,013. 752,47 ,792,7 ,535,8
year 6.00 8.27 86 6.00 75.01 49.14
ecreases in - - -
the current 6,862, 27,980 4,394, 4,209,
period (“-” 2,517. 9,371.
for 52 60
decreases) 4 8.39 9.31
(1) Other 379,32 351,34
comprehensiv 2,368. 1,701.
e income ,666.8
(2) Capital 819,95 613,96 212,84
contributed or 6,862,
reduced by 2,517. 9,371. 5,745.
owners 52 60 92
Capital 629,36 636,23 -
contributions 9,046. 1,646. 6,862,
by owners
Capital
contributions
by other equity
instruments
holders
Amounts of 6,862, 190,58 - 219,70
share-based
payments 600.00 3,471. 22,262 8,345.
recognized in 52 ,274.4 92
owners' equity
Others
- -
(3) Profit 4,773, 4,773,
distribution 919,30 919,30
Withdrawal of
surplus
reserves
Profit - -
distributed to 4,773, 4,773,
owners (or 919,30 919,30
shareholders)
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
at 30 June of
the current 615,07 618,62 9,371. 1,347. 752,47 ,195,8 ,803,9
year 6.00 5.79 60 02 6.00 36.62 89.83
Luzhou Laojiao Co., Ltd. (hereinafter referred to as "Company" or "the Company"), formerly known as
Luzhou Laojiao Brewery, was established in March 1950. On 20 September 1993, Luzhou Laojiao
brewery established a joint-stock limited company with fund-raising exclusively from its operational
assets. On 25 October 1993, the public offering of shares was approved by Sichuan Provincial People's
Government and CSRC with two documents of ChuanFuHan (1993) No.673 and FaShenZi (1993)
No.108. After the offering, the total share capital was 86,880,000 shares, which were listed and traded
in Shenzhen stock exchange on 9 May 1994.
As the end of 31 December 2004, the Company's total share capital reached 841,399,673 shares after
multiple rights issues, among which the controlling shareholder, State Assets Management Bureau of
Luzhou (later renamed as State-owned Assets Supervision and Administration Commission of Luzhou,
hereinafter referred to as "SASAC of Luzhou") held 585,280,800 shares of the Company, with a
shareholding ratio of 69.56%.
On 27 October 2005, the Company implemented the non-tradable share reform. After the
implementation, the total share capital remained unchanged, and the shareholding ratio of SASAC of
Luzhou decreased from 69.56% to 60.43%.
In November 2006, the Company implemented private placement, and the total share capital increased
from 841,399,673 shares to 871,399,673 shares. The shareholding ratio of SASAC of Luzhou
decreased from 60.43% to 58.35%.
As the end of 27 February 2007, SASAC of Luzhou sold 42,069,983 shares of the Company, and after
the sale, it still held 466,375,156 shares of the Company, with its shareholding ratio reduced to 53.52%.
On 19 May 2008, the Company increased 522,839,803 shares of capital stock resulting from capital
reserve and undistributed profits transferred to increase capital stock. After the implementation, the total
share capital reached 1,394,239,476 shares, among which, SASAC of Luzhou held 746,200,250 shares
of the Company, and the shareholding ratio was still 53.52%.
On 3 September 2009, the 300,000,000 shares and the 280,000,000 shares held by SASAC of Luzhou
were separately transferred to Luzhou Laojiao Group Co., Ltd. (hereinafter referred to as the "Laojiao
Group") and Luzhou XingLu Investment Group Co., Ltd. (hereinafter referred to as the "Xinglu Group").
After the transfer, Laojiao Group, Xinglu Group, and SASAC of Luzhou respectively held 300,000,000
shares, 280,000,000 shares and 166,200,250 shares. So far, Laojiao Group became the first majority
shareholder and SASAC of Luzhou was the actual controller.
From 6 June 2012 to 20 November 2013, the first and second phases of the Company's equity
incentive plan were exercised. After the exercise, the total share capital of the Company was changed
to 1,402,252,476 shares.
On 10 April 2014 and 18 July 2016, SASAC of Luzhou transferred 81,088,320 shares and 84,000,000
shares to Laojiao Group and Xinglu Group respectively. In addition, Laojiao Group has increased its
equity stake through the secondary market of 13,137,100 shares. So far, Laojiao Group, Xinglu Group
and SASAC of Luzhou held 394,225,489 shares, 365,971,142 shares and 1,111,930 shares
respectively, with the shareholding ratios of 28.11%, 26.10% and 0.08% respectively.
On 23 August 2017, the Company issued CNY 62,500,000 ordinary shares (A shares) privately, raising
a total capital of CNY 3,000,000,000. After the additional issuance, the total capital stock of the
Company was changed to 1,464,752,476 shares. In addition, from 2017 to 2018, Laojiao Group
decreased 13,137,100 shares that were increased through the secondary market from April 2014 to
December 2015. After share reduction, Laojiao Group, Xinglu Group and SASAC of Luzhou held
ratios of 26.02%, 24.99% and 0.08% respectively. Laojiao Group still was the first majority shareholder
and SASAC of Luzhou still was the actual controller.
In February 2022, the registration of 6,862,600 shares of the Restricted Share Incentive Plan granted
by the Company for the first time were completed; in September 2022, the Company granted 342,334
shares of the Restricted Share Incentive Plan for the second time; in September 2022, with seven
awardees no longer eligible, the Company decided to repurchase and retire the 62,310 restricted
shares of them which had been granted but not lifted from restricted sales; in December 2022, the
Company granted 92,669 shares of the Restricted Share Incentive Plan for the third time; so far, the
above grant and repurchase of the Restricted Share Incentive Plan had all been registered and the total
shares of the Company changed to 1,471,987,769 shares. The grant and repurchase of the Restricted
Share Incentive Plan this year caused no changes in the controlling shareholders and the actual
controller of the Company.
Registered address and headquarter address of the Company are located in Sichuan Luzhou Laojiao
Square and company type is other incorporated company (Listed).
Industry of the Company is the baijiu subdivision industry of the liquor and wine, beverage and refined
tea production industry.
The main activity are research and development, production and sales of “National Cellar
The main products are: “National Cellar 1573 Series”, ”Century-old Luzhou Laojiao Jiaoling
Series” , ”Luzhou Laojiao Tequ”, ”Touqu”, ”Hey Guys” and other baijiu series.
The financial report is approved and submitted by the board of directors of the Company on 28
August 2023.
controller
The controlling shareholder is Luzhou Laojiao Group Co., Ltd.; the ultimate substantive control is
SASAC of Luzhou.
(1) The 25 subsidiaries included in the consolidated financial statements for the current period
are listed as follows:
Shareholding proportion(%)
Name of subsidiary Abbreviation
Direct Indirect Voting rights (%)
Luzhou Laojiao Brewing Co., Ltd. Brewing Company 100.00 100.00
Luzhou Red Sorghum Modern Agricultural Development Red Sorghum
Co., Ltd. Company
Luzhou Laojiao Sales Co., Ltd. Sales Company 100.00 100.00
Luzhou Laojiao Nostalgic Liquor Marketing Co., Ltd. Nostalgic Company 100.00 100.00
Custom Liquor
Luzhou Laojiao Custom Liquor Co., Ltd. Note 1 15.00 60.00
Company
Luzhou Laojiao Selected Supply Chain Management Co.,
Selected Company 100.00 100.00
Ltd.
Guangxi Imported
Guangxi Luzhou Laojiao Imported Liquor Industry Co., Ltd. 100.00 100.00
Liquor Industry
Luzhou Dingli Liquor Industry Co., Ltd. Dingli Company 100.00 100.00
Luzhou Dingyi Liquor Industry Sales Co., Ltd. Note 2 Dingyi Company 100.00 100.00
New Liquor Industry
Luzhou Laojiao New Liquor Industry Co., Ltd. 100.00 100.00
Company
Luzhou Laojiao I & E Co., Ltd. I & E Company 100.00 100.00
Luzhou Laojiao Boda Liquor Industry Marketing Co., Ltd. Boda Marketing 75.00 75.00
Luzhou Laojiao Fruit Wine industry Co., Ltd. Note 3 Fruit Wine Industry 41.00 60.00
Mingjiang Co., Ltd. Mingjiang Company 54.00 54.00
Luzhou Laojiao International Trade (Hainan) Co., Ltd. Hainan Company 100.00 100.00
Luzhou Pinchuang Technology Co., Ltd. Pinchuang Company 100.00 100.00
Luzhou Laojiao International Development（Hong Kong）
Hong Kong Company 55.00 55.00
Co., Ltd.
Luzhou Laojiao Commercial Development (North America) North America
Co., Ltd. Company
Electronic Commerce
Luzhou Laojiao Electronic Commerce Co., Ltd. 90.00 90.00
Company
Luzhou Laojiao Whitail Liquor Industry Co., Ltd. Note 4 Whitail Liquor Industry 31.50 60.00
Luzhou Baonuo Biotechnology Co., Ltd. Baonuo Biotechnology 100.00 100.00
Luzhou Laojiao Health Liquor Industry Co., Ltd. Health Liquor Industry 100.00 100.00
Luzhou Laojiao Health Sales Co., Ltd. Health Sales 100.00 100.00
Luzhou Laojiao New Retail Co., Ltd. New Retail Company 40.00 100.00 100.00
Technology
Luzhou Laojiao Technology Innovation Co., Ltd. 40.00 100.00 100.00
Innovation Company
Note 1: Although the Company holds less than 51% of the equity of Custom Liquor Company, among the five
members of the board of directors, the Company has sent three people. The Company has actual control over Custom
Liquor Company, so it is included in the scope of consolidation.
Note 2: Luzhou Dingyi Liquor Industry Sales Co., Ltd. was renamed Luzhou Laojiao Chateau Qiankun Custom Liquor
Sales Co., Ltd. in July 2023.
Note 3: Although the Company holds less than 51% of the equity of Fruit Wine Industry, among the five members of
the board of directors, the Company has sent three people, and the chairman of the board (legal representative) is the
director sent by the Company. The Company has actual control over Fruit Wine Industry, so it is included in the scope
of consolidation.
Note 4: Although the Company holds less than 51% of the equity of Whitail Liquor Industry, among the seven
members of the board of directors, the Company has sent five people. The Company has actual control over Whitail
Liquor Industry and its subsidiaries, so it is included in the scope of consolidation.
Details of the subsidiaries incorporated into the consolidated financial statements show on “7.1.
Interests in subsidiaries”
(2) Subsidiaries that are newly incorporated into the scope of consolidation in this period
N/A
(3) Liquidation and cancellation for subsidiaries in this period
N/A
Details of changes in the scope of consolidation show on “6.5. Changes in consolidated scope for
other reasons”.
The Company has prepared its financial statements on a going concern basis, and the preparation is
based on actual transactions and events in compliance with Accounting Standards for Business
Enterprises and relevant guidance and explanation (the following called the ASBE) issued by Ministry of
Finance, and Rules on Company Information Disclosure and Preparation of Publicly Issued Securities
No.15- General Rules on Financial Reporting Rules (2014 Revision) issued by CSRC.
The Company’s business activities have adequate financial support. Based on the current information
obtained by the Company, comprehensively considering factors such as macro-policy risk, market
operation risk, current or long-term profitability, debt repayment ability of the Company, as well as its
resource of financial support, the Company believes that it is reasonable to prepare the financial
statements on a going concern basis and there are no events or situations resulting in significant
doubts over going concern for at least 12 months.
The disclosure requirements for related food and wine manufacturing business in the Self-regulatory
Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure
shall be observed by the Company.
The financial statements of the Company have been prepared in accordance with ASBE, and present
truly and completely, the financial position and the Company’s and results of operations, changes in
shareholders’ equity and cash flows. In addition, in all material respects, the financial statements of the
Company comply with disclosure requirements of the financial statements and their notes in
accordance with Rules on Company Information Disclosure and Preparation of Publicly Issued
Securities No.15- General Rules on Financial Reporting Rules revised by CSRC in 2014.
The Company adopts the calendar year as its accounting year, i.e. from 1st January to 31st December.
The Company’s business cycle is 12 months.
The Company has adopted China Yuan (CNY) as functional currency.
common control and business combinations not involving enterprises under
common control
(1) Business combination under common control
Assets and liabilities obtained by the Company from the combine through business combination under
common control shall be measured at the book value as stated in the consolidated financial statements
of ultimate controlling party at the combination date. The share of the book value of the merged party’s
owner’s equity in the consolidated financial statements is taken as the initial investment cost of long-
term equity investments in individual financial statements. The capital reserve (stock premium or capital
premium) is adjusted according to the difference between the book value of net asset acquired through
combination and the book value of consideration paid for the combination (or total par value of shares
issued). If the capital reserve (stock premium or capital premium) is insufficient to offset, the retained
earnings shall be adjusted.
(2) Business combination not under common control
Assets paid, liabilities incurred or assumed and the equity securities issued as consideration for
combination shall be measured based on fair value on the acquisition date, the difference between fair
value and its book value shall be included in current profit and loss. The Company shall recognize the
difference of the combination costs in excess of the fair value of the net identifiable asset acquired from
the acquiree through combination as goodwill. After the review, if the combination costs are still in short
of the fair value of the net identifiable asset acquired from the acquiree through combination, include
the difference in the current profit and loss.
Fees, commissions, and other transaction expenses paid on issuance of equity securities as
combination consideration in the business combination shall be included in the initial measurement
amount of equity securities.
(1) Consolidated Financial Statement Scope
The scope of the Company’s consolidated financial statements is based on control, and all subsidiaries
controlled are included in the consolidation scope of the consolidated financial statements.
(2) Consolidation procedures
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the parent company with other relevant information. When preparing
consolidated financial statement, the Company considers the Group as an accounting entity, adopts
unified accounting policies, and applies the requirements of ASBE related to recognition, measurement
and presentation to reflect the Group’s financial position, operating results and cash flows.
All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the
same accounting policies and accounting periods as those of the Company. If the accounting policies or
accounting periods of a subsidiary are different from those of the Company, the financial statements of
the subsidiary, upon preparation of consolidated financial statements, shall be made necessary
adjustment based on its own accounting policies and accounting periods of the Company. For
subsidiaries acquired from the business combination not under common control, the financial
statements shall be adjusted on the basis of the fair value of identifiable net assets on the date of
purchase. For the subsidiary acquired from the business combination under common control, its assets
and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
controlling party) shall be adjusted on the basis of the book value in the consolidated statements of the
ultimate controlling party.
The portion of a subsidiary’s equity, the current net profit and loss of subsidiaries, and the current
comprehensive income attributable to non-controlling interests shall be separately presented as non-
controlling interests in consolidated balance sheet within owners' equity, below the net profit line item
and below the total comprehensive income line item in the consolidated income statement respectively.
When the amount of current loss attributable to non-controlling shareholders of a subsidiary exceeds
the balance of the non-controlling shareholders’ portion in the opening balance of owner's equity of the
subsidiary, the excess shall be allocated against the non-controlling interests.
Acquisition of subsidiaries or business
During the reporting period, if the Company acquires subsidiaries from the business combination under
common control, the opening balance in the consolidated balance sheet shall be adjusted. The income,
expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reporting
period shall be included in the consolidated income statement. The cash flows of the newly acquired
subsidiaries from the beginning to the end of the reporting period shall be included in the consolidated
statement of cash flows. At the same time, the relevant items of the comparative information shall be
adjusted as the combined entity existed since the control point of the ultimate controlling party.
If the Company can control the investee from the business combination under common control due to
additional investment or other reasons, the parties involved in the combine shall be deemed to adjust in
the current state when the ultimate controlling party starts to control them. For the equity investment
before obtaining control of the investee, the recognized relevant profit or loss and other comprehensive
income and other changes in net assets between the later of acquisition date of previous equity and the
date on which both the investor and the investee are under common control and the combination date
shall respectively write-down the beginning retained earnings or current profits and losses during the
period of comparative information.
During the reporting period, if the Company acquires subsidiaries from the business combination not
under common control, the opening balance in the consolidated balance sheet shall not be adjusted.
The income, expenses and profits of the newly acquired subsidiaries from the acquisition date to the
end of the reporting period shall be included in the consolidated income statement. The cash flows of
the newly acquired subsidiaries from the acquisition date to the end of the reporting period shall be
included in the consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee not under common control
due to additional investment or other reasons, the Company shall re-measure the previously held equity
interests to its fair value on the acquisition date, and the difference shall be recognized as investment
income. When the previously held equity investment is accounted for under equity method, any other
comprehensive income previously recognized and other equity changes (excluding other
comprehensive, net profit and loss and profit distribution ) in relation to the acquiree’s equity changes
shall be transferred to profit and loss for the current period when acquisition took place, except for other
comprehensive income resulting from changes in net liabilities or net assets due to re-measurement of
defined benefit plan by investee.
Disposal of subsidiaries and business
General treatments
During the reporting period, if the Company disposes subsidiaries, the income, expenses and profits of
the newly disposed subsidiaries from the beginning to the disposal date shall be included in the
consolidated income statement. The cash flows from the beginning to the disposal date shall be
included in the consolidated statement of cash flows.
In case of loss of control over the investee due to partial disposal of the equity investment or other
reasons, the Company shall re-measure the remaining equity investment at its fair value at the date of
loss of control. The amount of the consideration obtained from the disposal of the equity and the fair
value of the remaining equity, minus the net asset shares calculated continuously from the acquisition
date based on the previous shareholding proportion and the goodwill, the difference shall be included in
the investment income of the period when the control is lost. Other comprehensive income related to
the former subsidiary’s equity investment of or other changes in owners' equity excluding net profit and
loss, other comprehensive income and profit distribution shall be transferred to investment income for
the current period when control is lost. Other comprehensive income resulting from changes in net
liabilities or net assets due to re-measurement of defined benefit plan by investee is excluded.
Disposal of subsidiaries by step
If the Company loses control of a subsidiary is through multiple transactions by steps, the terms,
conditions and economic impact of the disposal transaction shall be considered. When one or more of
the following conditions may indicate that multiple transactions should be treated as a package of
transactions for accounting treatment:
a.These arrangements were entered into at the same time or in contemplation of each other;
b.These arrangements work together to achieve an overall commercial effect;
c.The occurrence of one arrangement depends on the occurrence of at least one other arrangement;
d.One arrangement alone is not economically justified, but it is economically justified when considered
together with other arrangements
If the transactions of the disposal of the equity investment of the subsidiary until the loss of control
belong to a package transaction, the Company shall account for as a transaction; However, the
difference between each disposal consideration received and the corresponding proportion of the
subsidiary’s net assets before the loss of control shall be recognized as other comprehensive income in
the consolidated financial statements and transferred into the profit and loss of the current period when
the control is lost.
If the transactions from the disposal of the equity investment of the subsidiary to the loss of control are
not considered as a package transactions, the accounting treatment shall be conducted according to
the relevant policies on the partial disposal of the equity investment of the subsidiary where control is
retained before the loss of control. When the control is lost, the disposal shall be accounted for
according to the general treatment.
Purchase of non-controlling interests
The difference between the increase in the cost of long-term equity investment result from acquisition of
non-controlling shareholders and the share of net assets of the subsidiary calculated continuously from
the acquisition date or combination date based on newly shareholding proportion shall be adjusted to
equity (share) premium of capital reserves in the consolidated balance sheet. If the capital reserve is
insufficient, any excess shall be adjusted against retained earnings.
Partial disposals of equity investment in subsidiaries without loss of control
When the Company disposes of a portion of a long-term equity investment in a subsidiary without loss
of control, the difference between disposal consideration and net assets of the subsidiary calculated
continuously since the acquisition date or the combination date related to the disposal of long-term
equity investment shall be adjusted to equity (share) premium of capital reserves in the consolidated
balance sheet. If the capital reserve is insufficient, any excess shall be adjusted against retained
earnings.
method of common operation
(1) Classification of joint venture arrangements
A joint arrangement is classified as either a joint operation or a joint venture according to the structure,
legal form, agreed terms and other facts and conditions of a joint arrangement. A joint arrangement that
is structured through a separate vehicle is usually classified as a joint venture. However, when a joint
arrangement provides clear evidence that it meets any of the following requirements and complies with
applicable laws and regulations as a joint operation:
a. The legal form of the joint arrangement indicates that the parties that have joint control have rights to
the assets, and obligations for the liabilities, relating to the arrangement.
b. The terms of the joint arrangement specify that the parties that have joint control have the rights to
the assets, and the obligations for the liabilities, relating to the arrangement.
c. Other facts and circumstances indicate that the parties that have joint control have rights to the
assets, and the obligations for the liabilities, relating to the arrangement.
The parties that have joint control have rights to substantially all of the output of the arrangement, and
the arrangement depends on the parties that have joint control on a continuous basis for settling the
liabilities of the arrangement.
(2) Accounting by parties of a joint operator
A joint operator shall recognize the following items in relation to its interest in a joint operation, and
account for them in accordance with relevant accounting standards:
a. Its solely-held assets, and its share of any assets held jointly;
b. Its solely-assumed liabilities, and its share of any liabilities incurred jointly;
c. Its revenue from the sale of its share of the output arising from the joint operation;
d. Its share of the revenue from sale of the output by the joint operation; and
e. Its solely-incurred expenses and its share of any expenses incurred jointly.
The Company shall only recognize the portion of the profit and loss attributable to other participants in
the joint venture, resulting from investment or sale of assets to the joint venture by the Company
(excluding those assets constituting the business), prior to the sale of such assets to a third party. The
Company shall fully recognize impairment loss when there is any impairment loss of invested or sold
assets occurring in accordance with the ASBE No.8-Asset Impairment. The Company shall only
recognize the part of the profit and loss attributable to other participants in the joint venture before
selling the assets and other assets purchased from the joint venture (excluding those assets
constituting the business) to a third party. When the impairment loss of the purchased assets is in
accordance with the ASBE No.8-Asset Impairment, the Company shall recognize such losses
according to its share. When the Company does not have common control over the joint venture, if the
Company enjoys the assets related to the joint venture and assumes the liabilities related to the joint
venture, the accounting treatment shall be conducted according to the above principles. Otherwise, the
accounting treatment shall be conducted in accordance with the relevant accounting standards.
When preparing the cash flow statement, the Company recognizes cash on hand and deposits that can
be readily withdrawn on demand as cash. Cash equivalents are the Company’s short-term (due within 3
months from purchase date), highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value. Restricted bank deposits are not
recognized as cash and cash equivalents in the cash flow statement.
(1) Foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company, the amount in the
foreign currency shall be translated into the amount in CNY currency at the spot exchange rate of the
transaction date. For the monetary items of foreign currencies, the translation is done according to spot
rate of the balance sheet date. The exchange difference generated from the difference of spot rate of
the current balance sheet date and the time of initial recognition of a foreign currency or the previous
balance sheet date is charged to the profit or loss of the current period except that the exchange
difference generated from foreign currency borrowings relating to assets of which the acquisition or
production satisfies the capitalization conditions is capitalized.
Non-monetary items measured at fair value that is reflected in foreign currency at the end of the period,
the Company shall firstly translate the foreign currency into the amount in functional currency at the
spot exchange rate on the date when the fair value is determined, and then compare it with the original
functional currency amount. Difference between the translated functional currency amount and the
original functional currency amount is treated as profit or loss from changes in fair value (including
changes in exchange rate) and is recognized in current profit and loss. If there is a non-monetary item
of available-for-sale financial assets, the differences are recorded into other comprehensive income.
(2) Translation of foreign currency statements
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance
sheet date. Shareholders’ equity items, except for the item of "undistributed profits", are translated at
the spot exchange rates on the dates when the transactions occur. Revenue and expense items in the
income statement are translated at the spot exchange rates on the dates when the transactions occur
or at the exchange rate determined in a systematical and reasonable method and similar to the spot
exchange rate on the day when the transactions occur. Differences arising from the above translations
of foreign currency financial statements are separately listed under other comprehensive income in the
consolidated balance sheet. If the overseas business is partly disposed of, the foreign currency
financial statements exchange difference shall be calculated in proportion to the percentage of disposal
and transferred to gain or loss on disposal for the current period.
Foreign currency cash flow and cash flow of foreign subsidiaries shall be translated at approximate
exchange rate of spot rate on the date of cash flow.
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. When the Company becomes a party to a financial
instrument contract, the related financial asset or financial liability should be recognized.
(1) Classification, recognition and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristics
of financial assets, the Company classifies financial assets into: financial assets measured at amortized
cost; financial assets measured at fair value with their changes included into other comprehensive
income; and financial assets measured at fair value with their changes included into current
profits/losses.
At the initial recognition, financial assets are measured at fair value. For financial assets measured at
fair value with their changes included into current profits/losses, the expenses involved in the
transaction are directly recorded into current profits/losses; for other financial liabilities, the expenses
involved in the transaction are recorded into the initially recognized amount.
The business model in which the Company manages financial assets measured at amortized cost aims
to receive contract cash flow. Furthermore, the characteristics of the contract cash flow of such financial
assets are consistent with basic borrowing and lending arrangements, which means that cash flow
generated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial interests,
performs subsequent measurement of them at amortized cost, and includes the gains or losses from
derecognition, changes or impairment of them into current profits/losses.
The business model in which the Company manages such financial assets both aims to receive
contract cash flow and for the purpose of sale. Furthermore, the characteristics of the contract cash
flow of such financial assets are consistent with basic borrowing and lending arrangements. The
Company measure such financial assets at fair value and include their changes into other
comprehensive income, but record impairment losses or gains, exchange gains or losses and interest
income calculated in the effective interest method into current profits/losses.
At the initial recognition, the Company may specify non-trading equity instrument investment as a
financial asset measured at fair value with its changes included into other comprehensive income and
should recognize the dividend income according to regulations; the specification is irrevocable once
made. When the financial asset is derecognized, the cumulative gains or losses previously included into
other comprehensive income should be transferred into retained earnings.
For financial assets other than the above financial assets measured at amortized cost and financial
assets measured at fair value with their changes included into other comprehensive income, the
Company classifies them as financial assets measured at fair value with their changes included into
current profits/losses. In addition, at the initial recognition, the Company specifies partial financial
assets as financial assets measured at fair value with their changes included into current profits/losses,
in order to eliminate or substantially reduce accounting mismatch. For such financial assets, the
Company performs subsequent measurement using fair value and records changes in the fair value
into current profits/losses.
(2) Classification, recognition and measurement of financial liabilities
At their initial recognition, financial liabilities are divided into financial liabilities measured at fair value
with their changes included into current profits/losses and other financial liabilities. For financial
liabilities measured at fair value with their changes included into current profits/losses, the expenses
involved in the transaction are directly recorded into the current profits/losses. For other financial
liabilities, the expenses involved in the transaction are recorded into the initially recognized value.
Financial liabilities measured at fair value with their changes included into current profits/losses include
trading financial liabilities (including derivatives classified as financial liabilities) and the financial
liabilities specified to be measured at fair value with their changes included into current profits/losses at
the initial recognition.
Trading financial liabilities (including derivatives classified as financial liabilities) are subsequently
measured at fair value, with changes in fair value recorded into current profits/losses, except for those
related to hedge accounting.
For those specified as financial liabilities measured at fair value with their changes included into current
profits/losses, changes in the fair value of such liabilities caused by changes in the Company’s own
credit risk should be included into other comprehensive income. In derecognition of such liabilities,
cumulative changes in their value caused by the Company’s own credit risk that have been recorded
into other comprehensive income should be transferred into retained earnings. Other changes in their
fair value should be recorded into current profits/losses. If treatment of the impact of the Company’s
own credit risk changes of such financial liabilities in the above manner causes or expands accounting
mismatch in profits/losses, the Company will include all gains or losses of such financial liabilities
(including the amount of the impact of the Company’s own credit risk changes) into current
profits/losses.
Financial liabilities other than those formed from the transfer of financial assets not meeting
derecognition conditions or continuous involvement into transferred financial assets and those outside
financial guarantee contracts are classified as financial liabilities measured at amortized cost. Such
financial liabilities should be subsequently measured at amortized cost and the gains or losses from
derecognition or amortization should be included into current profits/losses.
(3) Recognition basis and measurement method of transfer of financial assets
If a financial asset meets any of the following conditions, it shall be derecognized: 1)The contractual
right for collecting the cash flow of the financial asset has been terminated; 2)The financial asset has
been transferred and almost all the risks and remunerations in respect of the ownership of the financial
asset has been transferred to the transferee; 3)The financial asset has been transferred, and although
the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset, it has abandoned its control over the asset.
If the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset and does not abandon its control over the asset, the involved financial
asset shall be recognized according to the level of continuous involvement of the transferred financial
asset and the relevant liabilities shall be recognized accordingly. The level of continuous involvement of
the transferred financial asset refers to the level of risk faced by the enterprise due to changes in the
value of the financial asset.
If the overall transfer of the financial asset meets the recognition conditions, the difference between the
carrying value of the transferred financial asset as well as the consideration received from the transfer
and the cumulative amount of fair value changes originally-recorded into other comprehensive incomes
shall be recorded into the current profits/losses.
If partial transfer of the financial asset meets the recognition conditions, the carrying value of the
transferred financial asset shall be apportioned at the relative fair value between the derecognition and
underecognition part. The difference between the summation of the consideration received from the
transfer and the cumulative amount of fair value changes originally-recorded into other comprehensive
incomes that should be apportioned to the derecognition part and the apportioned aforementioned
carrying value shall be recorded into the current profits/losses.
For a financial asset sold with the right of recourse or with the transfer of the financial asset
endorsement, the Company shall decide whether almost all the risks and remunerations in respect of
the ownership of the financial asset should be transferred. If they are transferred, the financial asset
shall be derecognized; if they are retained, the financial asset shall not be derecognized; if they are
neither transferred nor retained, the Company will continue to decide whether the enterprise should
retain control over the asset and perform the accounting treatment according to the principles stated in
previous paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part of it) is relieved, the Company will
derecognize the financial liability (or the part of it). When the Company (borrower) signs an agreement
with a lender to replace an original financial liability in the form of bearing a new financial liability and
the contract terms for the new financial liability differ from those for the original in substance, the
original financial liability should be derecognized and the new one should be recognized. When the
Company makes substantial changes to the contract terms of an original financial liability (or a part of it),
the original financial liability should be derecognized and a new financial liability should be recognized
according to the amended contract terms.
When a financial liability (or a part of it) is derecognized, the Company will include the difference
between its carrying value and the consideration paid (including non-cash assets or liabilities borne that
are transferred out) into current profits/losses.
(5) Offsetting of financial assets and financial liabilities
When the Company has the legal right to offset recognized financial assets and financial liabilities and
may execute the legal right currently and simultaneously, the Company plans to settle or
simultaneously encash the financial assets in net amounts and pay off the financial liabilities, the
financial assets and the financial liabilities which are presented in the net amount after the mutual offset
in the balance sheet. Other than that, they shall be presented separately in the balance sheet without
the mutual offset.
(6) Method of determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can receive for selling an asset or transferring a
liability in an orderly transaction on the measurement date. For an existing financial instrument in an
active market, the Company adopts the quotations in the active market to determine its fair value.
Quotations in the active market refer to prices that can be easily obtained from exchanges, brokers,
industrial associations and pricing service institutions and represent the actual prices in the market
transactions happening in a fair trade. For a non-existing financial instrument in an active market, the
Company adopts the valuation technique to determine its fair value. The valuation technique includes
references to familiar situations and the prices used by the parties voluntarily participating in the recent
market transactions, as well as references to the present fair value of other financial instruments of the
same nature, discounted cash flow method and options pricing model. In the valuation, the Company
uses a valuation technique that is applicable in the current situation with sufficient data available and
other information support, chooses input values that are consistent with the asset or liability
characteristics considered by market players in related asset or liability transactions, and make
maximum effort to use related observable input values on a preferential basis. When it is unable or
unfeasible to obtain related observable input values, unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets after
the deduction of all liabilities. The Company’s issuance (including refinancing), repurchase, sale or
cancellation of equity instruments serve as the change treatment of equity. Transaction expenses
related to the equity transactions are deducted from the equity. The Company does not recognize
changes in the fair value of equity instruments.
Dividends from the Company’s equity instruments distributed during the validity (including the “interests”
from instruments classified as equity instruments) are treated as profit distribution.
(8) Impairment of financial instruments
Based on the expected credit loss, the Company treats financial assets measured at amortized cost
and debt instrument investment measured at fair value with its changes included into other
comprehensive income by impairment and recognizes the provision for loss.
Credit loss means the difference between all contract cash flow discounted at the original effective
interest rate to be received according to contracts and all contract cash flow expected to be received,
namely, the present value of all cash shortage. For a financial asset with credit impairment purchased
by or originated from the Company, it should be discounted by the effective interest rate after credit
adjustment to the financial asset.
For accounts receivable that do not contain significant financing components, the Company adopts
simplified measurement to measure loss provisions according to the amount equivalent to the expected
credit loss for the entire duration.
For a financial asset other than those using the above simplified measurement, the Company assesses
on each balance sheet date whether its credit risk has substantially increased since the initial
recognition. If it has not and is in the first stage, the Company will measure the loss provision at the
amount equivalent to the expected credit loss for the next 12 months and calculate the interest income
according to the book balance and the effective interest rate; if it has substantially increased since the
initial recognition without credit impairment and is in the second stage, the Company will measure the
loss provision at the amount equivalent to the expected credit loss for the entire duration and calculate
the interest income according to the book balance and the effective interest rate; if credit impairment
has occurred since the initial recognition and is in the third stage, the Company will measure the loss
provision by the amount equivalent to the expected credit loss for the entire duration and calculate the
interest income according to the amortization cost and the effective interest rate. For financial
instruments with low credit risks on balance sheet dates, the Company assumes that their credit risks
have not substantially increased since the initial recognition.
The Company assesses expected credit losses of financial instruments based on individual and group
assessment. The Company considers the credit risk characteristics of different customers and
assesses the expected credit losses of accounts receivable and other receivables based on account
age portfolio. When assessing expected credit losses, the Company considers reasonable and well-
founded information on past matters, present conditions and forecast of future economic conditions.
When it no longer reasonably expects to recover all or part of the contract cash flow of financial assets,
the Company will directly write down the book balance of such financial assets.
The method of determining the expected credit loss of notes receivables and accounting treatment
method:
Divide notes receivables into various portfolios according to common risk characteristics based on the
credit risk characteristics of acceptors and determine the accounting estimate policies of expected
credit loss：
Portfolio name Provision method
Bank acceptance bill The management evaluates that this type has low credit risk and its fixed bad
portfolio debt provision ratio is 0%.
Trade acceptance The provision for impairment is made according to the expected loss rate with
portfolio the same portfolio classification of accounts receivables
The method of determining the expected credit loss of accounts receivables and accounting treatment
method:
As for accounts receivables, regardless of whether there is a significant financing component, the
Company always measures the provision for loss based on the amount equivalent to the expected
credit loss over the entire life, and the resulting increase or reversal of provision for loss shall be
included in the current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment,
the Company shall make bad debt provision for the account receivable and recognize the expected
credit loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the accounts receivables portfolio according to credit
risk characteristics and measure the expected credit loss based on portfolios:
Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control, the recovery of which are controllable with no risks. Thus, no bad debt provision was
made.
The Company combines the accounts receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at
default and expected credit loss rate over the entire life based on the current situation and prediction of
future economic situation consulting historical credit loss experience. The comparative table of the
credit loss rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
Over 5 years 100
The accounts receivables financing of the Company refer to the notes receivables measured at fair
value through other comprehensive income on the balance sheet date. For more details, see Note 5.10
Financial instruments.
The method of determining the expected credit loss of other receivables and accounting treatment
method:
As for other receivables, regardless of whether there is a significant financing component, the Company
always calculates the expected credit loss through the exposure at default and expected credit loss rate
in the next 12 months or over the entire life based on the current situation and prediction of future
economic situation consulting historical credit loss experience, and the resulting increase or reversal of
provision for loss shall be included in the current profit or loss as gains or losses on impairment. The
accrual method is as follows:
(1) When there is objective evidence showing that the other receivable has incurred credit impairment,
the Company shall make bad debt provision for the other receivable and recognize the expected credit
loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the other receivables portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios.
Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control, the recovery of which are controllable with no risks. Thus, no bad debt provision was
made.
The Company combines the other receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at
default and expected credit loss rate in the next 12 months or over the entire life based on the current
situation and prediction of future economic situation consulting historical credit loss experience. The
comparative table of the credit loss rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
Over 5 years 100
(1) Classification of inventory
Inventories are classified as: raw materials, goods in progress (including semi-finished goods), stock
commodities, and dispatched inventories.
(2) Measurement method of dispatched inventories
The standard cost is used for daily accounting of raw materials, and the difference of material cost
should be carried forward on a monthly basis to adjust the standard cost into the actual cost; The goods
in progress (including semi-finished goods) shall be accounted according to the actual cost, and the
weighted average method shall be used when they are received and delivered. The actual cost of the
inventory at the end of the month above shall be taken as the standard cost, and the delivery shall be
priced according to the standard cost. At the end of the month, the standard cost of the inventory at the
end of the month shall be adjusted into the actual cost through the cost-sharing difference.
(3) Basis to determine net realizable values of inventories and method of provision for stock
obsolescence
At the end of the period, inventory is measured according to the lower of cost and net realizable value.
The difference between inventory cost and net realizable value is higher than the provision for stock
obsolescence , which is recorded into current profit and loss. For inventories that are related to product
ranges produced and sold in the same district or used for the same or similar ultimate purpose and are
difficult to be measured separately from other inventories, the Company provides for stock
obsolescence as a whole. For inventories that have large quantities but low value, the Company
provides for stock obsolescence on a category basis.
The materials held for production shall be measured at cost if the net realizable value of the finished
products is higher than the cost. If a decline in the value of materials shows that the net realizable value
of the finished products is lower than the cost, the materials shall be measured at the net realizable
value.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Amortization method of packing materials and low-cost consumables
It is amortized in full at once.
The Company presents contract assets or contract liabilities on the balance sheet according to the
relationship between the fulfillment of its contract performance obligations and its customers’ payment.
Considerations that the Company has the right to collect for commodities transferred or services
provided to customers (and such right depends on other factors than time lapses) are presented as
contract assets. The Company presents the right possessed to collect consideration from customers
unconditionally (only depending on the passing of time) as accounts receivable. Refer to “The method
of determining the expected credit loss of accounts receivables and accounting treatment method” for
the detail on the Company’s method of determining the expected credit loss of contract assets and
accounting treatment method.
Contract costs comprise incremental costs incurred as the Company obtains a contract, and costs for
contract performance. Incremental costs incurred as the Company obtains a contract refer to those
costs which will not incur without entering into a contract (such as sales commission). If it is expected
that the costs are recoverable, the Company will recognize the costs incurred to obtain a contract as
one form of assets. In case that the term of asset amortization is shorter than one year or one normal
operating cycle, the costs will be recognized as profit and loss of the current period after occurrence.
If the costs incurred from contract performance fall outside the inventory or the scope of other
enterprise accounting standards and satisfy all of the following conditions, the Company will recognize
the costs for contract performance as assets: a) The costs are directly related to one existing contract
or contract that is expected to be obtained; b) The costs enrich the Company's resources for future
contract performance (including continual fulfillment); c) The costs are estimated to be recovered.
Assets recognized from costs incurred to obtain a contract and costs for contract performance
(hereinafter referred to as "assets related to contract costs") will be amortized based on the basis the
same with the income from commodities or services related to the assets, and will be recognized as
profit and loss of the current period. In case that the book value of assets related to contract costs is
higher than the difference of the two items below, the Company will set aside provisions for assets
impairment to deal with the extra part, and recognize that part as impairment losses: a) Estimated
residual consideration to be obtained from transfer of commodities or services related to the assets; b)
Estimated costs incurred from transfer of the relevant commodities or services.
(1) Classification of non-current assets held for sale or disposal groups
The Company shall classify the non-current assets or disposal group meeting the following conditions
into the held-for-sale category: The assets (or disposal group) must be available for immediate sale in
its present condition subject only to terms that are usual and customary for sales of such assets (or
disposal groups); Its sale must be highly probable.; The Company has already made a decision to
dispose the component and has a commitment from the purchaser, the transfer will be completed within
one year.
The non-current assets or disposal group acquired by the Company for resale shall be divided into the
held-for-sale category on the acquisition date if it meets the condition that "the sale is expected to be
completed within one year" and if it is likely to meet other conditions for the held-for-sale category within
a short period (usually three months).
Due to one of the following reasons that the Company is unable to control, leading to the transactions
uncompleted with non-related party within one year, and the Company still commits to sale non-current
assets or disposal groups, it can continue to account for non-current assets or disposal groups as held-
for-sale: the buyer or any other party accidentally set sale extension condition. The Company has to
take action in time according to these conditions and the extension problem is expected to be solved
within one year; In rare cases, the Company has taken the necessary steps and re-satisfy the hold for
sale category condition within the first year for the new circumstances which caused it unable to
complete the sale of the non-current assets or disposal group within one year.
(2) Measurement of non-current assets or disposal groups held for sale
a. Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
at balance sheet date subsequently, the impairment loss should be recognized if the book value is
higher than fair value less costs to sell at the amount of the difference of these two in profit and loss,
the provision for assets held for sale need to be recognized at the same time.
For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date,
they shall be measured as the lower of the initial measurement amount and the net amount after
deducting the selling expenses from the fair value under the assumption that it is not divided into held-
for-sale categories at the initial measurement. Except for the non-current assets or the disposal groups
obtained in the enterprise merger, the difference caused by the non-current assets or the disposal
groups taking the net amount after the fair value minus the selling expenses as the initial measurement
amount shall be recorded into the current profit and loss.
For the impairment of disposal group, it should write off goodwill if existing, and then write down the
related assets proportionally.
Depreciation or amortization should cease for the non-current asset held for sale. Interest and other
charges on liabilities in the disposal groups held for sale continue to be recognized.
b. Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet date
increases after the fair value minus the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized after being classified as the held-for-sale
shall be reversed, and the reversed amount shall be included in the current profit and loss. The
impairment loss recognized before the classification of the held-for-sale shall not be reversed.
If the net amount of the disposal groups held for sale on the subsequent balance sheet date increases
after the fair value deducting the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized as non-current assets after being
classified as the held-for-sale shall be reversed, and the reversed amount shall be included in the
current profit and loss. The book value of the goodwill that has been written down and the impairment
losses recognized before the classification of the held-for-sale shall not be reversed.
The subsequent reversed amount of the impairment loss recognized by the disposal groups held for
sale shall be increased in proportion to the book value of non-current assets except goodwill in the
disposal groups.
c. The accounting treatment that does not continue to be classified as held-for-sale and the termination
of recognition
Non-current assets or disposal groups that are no longer divided into held-for-sale category or non-
current assets are removed from disposal groups held for sale because of no longer meeting the
condition of classification of held-for-sale, they are measured at lower of the following two: book value
before being classified as the held-for-sale considering depreciation, amortization or impairment that
should have been recognized under the assumption that it is not divided into held-for-sale categories;
and recoverable amount.
When terminating the recognition of the non-current assets held for sale or the disposal groups, the
unrecognized gains or losses shall be recorded into the current profit and loss.
N/A
N/A
For more details, see Note 5.10 Financial instruments.
(1) Judgment criteria of common control and significant influence
Common control on an agreement with other participants refers to the Company share control with
other participants on an arrangement according to relevant conventions, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.
This arrangement belongs to joint venture. Where the joint venture arrangement is made by a separate
entity and the Company is judged to have rights to the net assets of such a separate entity according to
the relevant conventions. Such a separate entity shall be regarded as a joint venture and accounted by
the equity method. If the Company is judged to be not entitled to the net assets of the separate entity
according to relevant conventions, the separate entity shall be regarded as a joint venture and the
Company shall recognize the items related to the shares of the joint venture and perform accounting
treatment in accordance with relevant accounting standards.
The term ‘significant influence’ refers to the power to participate in decision-making on the financial and
operating policies of the investee, but with no control or joint control over the formulation of these
policies. The Company judges that it has a significant impact on the invested entity through one or more
of the following situations and taking all the facts and circumstances into consideration:
a. Dispatch representatives to the board of directors or similar authorities of the investee.
b. To participate in the financial and business policy making process of the investee.
c. Significant transactions with the investee.
d. Dispatch management personnel to the investee.
e. To provide key technical data to the investee.
(2) Determination of the initial investment cost
a. Long-term equity investment resulting from combination
Business combination under common control：
For the long-term equity investments obtained by cash paid, non-monetary assets paid or assumed
liabilities and the equity securities issued by the acquirer, on the merger date, the initial investment cost
of long-term equity investment shall be taken as the share of the owner's equity of the investee in the
book value of the final control party's consolidated financial statements. If the investee under business
combination under common control can be controlled due to additional investment or other reasons, the
initial investment cost of long-term equity investment shall be determined on the merger date according
to the share of the net assets of the investee in the book value of the final control party's consolidated
financial statements. The difference between the initial investment cost of the long-term equity
investment on the merger date and sum of the book value of the long-term equity investment before the
merger and the new consideration of acquiring shares on the merger date shall be recorded to adjust
the equity premium. If the equity premium is insufficient to be written down, the retained earnings shall
be written down.
Business combination not under common control：The Company takes the initial investment cost of
long-term equity investment as the merger cost determined on the purchase date. If the investee can be
controlled under business combination not under common control due to additional investment or other
reasons, the previous book value of the equity investment held plus the sum of the newly added
investment cost shall be taken as the initial investment cost calculated according to the cost method.
b. Long-term equity investment obtained by other means
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value as
the initial investment costs.
For the long-term equity investments acquired by the issue of equity securities, the initial investment
cost shall be the fair value of the equity securities issued.
For long-term equity investments obtained by non-monetary assets exchange, under the condition that
an exchange of non-monetary assets is of commerce nature and the fair value of assets exchanged
can be reliably measured, non-monetary assets traded in is initially stated at the fair value of the assets
traded out, unless there is conclusive evidence indicating that the fair value of the assets traded in is
more reliable; if the above conditions are not satisfied, initial investment costs of long-term equity
investments traded in shall be recognized at the book value of the assets traded out and the relevant
taxes and surcharges payable.
For long-term equity investments obtained by debt restructuring, the Company recognizes the fair value
of shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
a. Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
long-term equity investments accounted at the cost method, except cash dividends or profits declared
but not yet distributed which are included in the actual payments or the consideration actually paid for
the investment, the cash dividends or profits declared by the investee shall be recognized as the
investment income irrespective of net profits realized by the investee before investment or after
investment.
b. Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee, the
equity method is adopted for accounting. For long-term equity investments measured at the equity
method, if the initial investment costs are higher than the investor’s attributable share of the fair value of
the investee’s identifiable net assets, no adjustment will be made to the initial costs of the long-term
equity investments; if the initial investment costs are lower than the investor’s attributable share of the
fair value of the investee’s identifiable net assets, the difference shall be recognized in current profit and
loss.
The Company shall, according to the shares of net profits and other comprehensive income realized by
the investee that shall be enjoyed or borne by the Company, recognize the profit and loss on the
investments and adjust the book value of the long-term equity investments. When recognizing the net
profits and losses and other comprehensive income of the investee that the Company shall enjoy or
bear, the Company shall make a recognition and calculation based on the net book profits and losses of
the investee after appropriate adjustments. However, where the Company is unable to obtain the
relevant information due to failure to reasonably determine the fair value of the investee’s identifiable
assets, minor difference between the investee’s identifiable assets and the book value thereof or other
reasons, the profits or losses on the investments shall be directly calculated and recognized based on
the net book profits and losses of the investee. The Company shall calculate the part distributed from
cash dividends or profits declared by the investee and correspondingly reduce the book value of the
long-term equity investments. When recognizing the income from investments in associates and joint
ventures, the Company shall write off the part of incomes from internal unrealized transactions between
the Company and associates and joint ventures which are attributable to the Company and recognize
the profit and loss on investments on such basis. Where the losses on internal transactions between
the Company and the investee are impairment of related assets, full amounts of such losses shall be
recognized. Profit and loss from internal unrealized transactions between the Company’s subsidiaries
included into the combination scope and associates and joint ventures shall be written off according to
the above principles and the profit and loss on investments thereafter shall be recognized on such basis.
When the share of net loss of the investee attributable to the Company is recognized, it is treated in the
following sequence: Firstly, write off the book value of the long-term equity investments; where the book
value of the long-term equity investments is insufficient to cover the loss, investment losses are
recognized to the extent that book value of long-term equity which form net investment in the investee
in other substances and the book value of long-term receivables shall be written off; after all the above
treatments, if the Company still assumes additional obligation according to investment contracts or
agreements, the obligation expected to be assumed should be recognized as provision and included
into the investment loss in the current period. If the investee is profitable in subsequent accounting
periods, the Company shall treat the loss in reverse order against that described above after deducting
unrecognized share of loss: i.e. write down the book value of the recognized provision, then restore the
book value of long-term interests which substantially form net investments in the investee, then restore
the book value of long-term investments, and recognize investment income at the same time.
Measurement model of investment property
Cost model
Method of depreciation or amortization
Investment property is the property that is held to earn rent or capital appreciation or both and can be
measured and sold separately. The Company’s investment property includes land use right already rent,
land use right held for appreciation and then sold, and buildings already rent.
(1) Initial Recognition
When the Company can obtain the rental income or value-added income related to the investment
property and the cost of the investment property that can be measured reliably, the Company will
initially measure it according to the actual expenditure of purchase or construction:
The cost of the purchased investment property includes the purchase price and related taxes directly
attributable to the asset;
The cost of self-built investment property consists of the necessary expenses incurred before the asset
reaches the intended use condition;
The cost of the investment property obtained by other means shall be recognized in accordance with
relevant accounting standards.
(2) Subsequent measurement
In general, the Company adopts the cost model to measure the follow-up expenditure of investment
property. The depreciation or amortization of investment property shall be carried out in accordance
with the accounting policies for the Company's fixed assets or intangible assets.
If there is solid evidence suggests that the investment property acquired can be measured at fair value
continuously and reliably, the Company can use fair value model for subsequent measurement. For the
investment property measured at fair value model, the Company does not provide depreciation or
amortization and adjusts its book value based on the fair value of investment property at the balance
sheet date. The difference between the fair value and book value is recorded into current profit or loss.
(3) When the Company changes the use of investment property, the relevant investment property will
be transferred to other assets.
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing
services, renting or business management with useful life exceeding one accounting year. Fixed
assets are recognized when the following criteria are satisfied simultaneously: It is probable that the
economic benefits relating to the fixed assets will flow into the Company; the cost of the fixed assets
can be measured reliably.
(2) Depreciation of fixed assets
Estimated Annual
Depreciation Estimated useful
Category residual value depreciation rate
method life (Year)
rate (%) (%)
Buildings and Straight-line
Constructions
method
Special Straight-line
equipment
method
Universal Straight-line
equipment 4-25 5% 23.75%－3.80%
method
Transportation Straight-line
equipment 6 5% 15.83%
method
Straight-line 4-16 5% 23.75%－5.94%
Other equipment method
Except for fixed assets still in use after full depreciation, the Company depreciates all fixed assets and
calculates the depreciation in the straight-line depreciation method.
Based on the nature and use of fixed assets, the Company determines their service life and
estimated net salvage value and reviews their service life, estimated net salvage value and
depreciation method at the end of the year. Changes in the service life, estimated net salvage value
and depreciation method of the same type of assets are treated as changes in accounting estimation.
(3) Recognition standard, valuation method and depreciation method for fixed assets acquired
under financing lease
A finance lease refers to a lease where almost all the risks and rewards, related to the ownership of
the leased asset, are substantially transferred, regardless of whether the ownership is eventually
transferred or not. The policy for the accrual of the depreciation of the leasehold property for the fixed
assets acquired under the finance lease was consistent with that adopted for the Company's fixed
assets. If there is reasonable assurance that the Company will obtain the ownership of the leased
assets when the lease term expires, the leased assets should be depreciated over its useful life; if
there is no reasonable assurance that the Company will obtain the ownership of the leased assets
when the lease term expires, the leased assets should be depreciated over the shorter of the lease
term or the useful life of the leased assets.
(4) Impairment test method and impairment provision accrued method of fixed assets
At the end of the period, the fixed assets shall be measured at the lower of the book value and the
recoverable amount. If the recoverable amount of fixed assets is lower than the book value due to a
continuous decline in the market value, or technological obsolescence, damage, or long-term idleness,
a provision for impairment of the fixed assets shall be made for the difference between the recoverable
amount and the book value of individual fixed assets. If the recoverable amount of the individual asset
is difficult to estimate, the Company will determine the recoverable amount of the asset group based on
the asset group to which the asset belongs. The impairment losses on fixed assets must not be
reversed in subsequent accounting periods once recognized.
For fixed assets for which depreciation provision has been made, the depreciation rate and depreciation
amount shall be remeasured according to the book value of the fixed assets (the original price of fixed
assets minus accumulated depreciation and provision for impairment), and the remaining service life.
On the balance sheet date, the fixed assets shall be measured at the lower of the book value and the
recoverable amount.
(1) Construction in progress refers to various construction and installation works carried out for the
construction or repair of fixed assets, including the actual expenditure incurred in new construction,
reconstruction and expansion, and the net value of fixed assets transferred from the reconstruction and
expansion projects.
(2) Construction in progress is accounted on an individual project basis with actual cost valuation
method. The borrowing costs incurred before the projects reach the intended use condition shall be
included in the project cost. The fixed assets shall be carried forward in the month when the project is
qualified for acceptance and delivery for use. For those that have reached the intended use condition
but have not yet completed the final account, from the date of reaching the intended use condition,
according to the project budget, construction cost or the actual cost of the project, the cost transferred
to the fixed assets shall be determined according to the estimated value, and the depreciation shall be
recognized; After the completion of the final account, the original provisional value shall be adjusted
according to the actual cost, but the amount of depreciation accrued shall not be adjusted.
(3) The loan interest and related expenses incurred during the construction period shall be capitalized
into the cost of the construction in Progress.
(4) On the balance sheet date, the construction in progress is recognized at the lower of book value and
recoverable amount.
(1) Scope of borrowing costs and its capitalization conditions
The Company’s borrowing costs capitalized during period of capitalization are relevant loan expenses
directly attributable to the assets eligible for capitalization, including interest thereon, amortization of
discounts or premiums, ancillary expenses and exchange differences incurred from foreign currency
loan, etc.
Borrowing costs are capitalized when the following three conditions are met simultaneously: ① the
asset expenditure has occurred, ② the borrowing costs have occurred, ③ the purchase and
construction activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed for
acquiring and constructing or producing assets eligible for capitalization, borrowing costs of special loan
actually incurred in the current period less the interest income of the loans unused and deposited in
bank or return on temporary investment should be recognized as the capitalization amount of borrowing
costs. As for general loans used for acquiring and constructing or producing assets eligible for
capitalization, the interest of general loans to be capitalized should be calculated by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements in excess of
special loans by the capitalization rate of used general loans. During the period of capitalization, the
capitalized amount of interest of each accounting period shall not exceed the current actual interest of
the relevant loans. Where there are discounts or premiums on loans, the amounts of interest for each
accounting period should be adjusted taking account of amortizable discount or premium amounts for
the period by effective interest method. Auxiliary expenses incurred from special loans before the
acquired or constructed assets eligible for capitalization reach the working condition for their intended
use or sale should be capitalized when they incur and charged to the costs of assets eligible for
capitalization; those incurred after the acquired or constructed assets eligible for capitalization reach the
working condition for their intended use or sale should be recognized as costs according to the
amounts incurred when they incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
For a special loan for the purchase and construction of fixed assets, the capitalization rate is the
interest rate of the loan;
For more than one special loan for the acquisition and construction of fixed assets, the capitalization
rate is a weighted average interest rate of these loans.
(4) Capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months, the capitalization of
borrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
profit or loss for the current period, and the capitalization of borrowing costs continues when the
acquisition and construction or production activities of the asset resume.
(5) Capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets
eligible for capitalization have reached the working condition for their intended use or sale. Borrowing
costs incurred after the assets eligible for capitalization have reached the working condition for their
intended use or sale should be recognized as the current profit and loss when they incur. If parts of the
acquired and constructed or produced assets are completed separately but the assets cannot be used
or sold externally until overall completion, the capitalization of borrowing costs should cease at the time
of overall completion of the said assets.
N/A
N/A
Refer to Note 5.42 Lease for the detail.
(1) Measurement method, useful life, impairment test
Intangible assets refer to identifiable non-monetary assets that are owned or controlled by the Company
without a physical form.
Measurement method
a. Costs of intangible assets purchased include purchase price, related tax and expenses and other
expenditure that can be distributed to the asset directly to reach its expected use.
b. Intangible assets invested by investors shall be valued at the value agreed upon in the investment
contract or agreement;
c. Expenses on the research phase of internally researched and developed intangible assets shall be
included in the current profit and loss when they incur; The expenditures incurred in the development
stage of the internal research and development projects shall be recognized as intangible assets when
the following conditions are met; otherwise, they shall be recorded into the current profit and loss when
they incur.
i. It is technically feasible to finish intangible assets for use or sale;
ii. It is intended to finish and use or sell the intangible assets;
iii. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets themselves or
the intangible assets will be used internally;
iv. It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
v. The expenditure attributable to the intangible asset during its development phase can be
measured reliably.
d. If payment of the purchase price of intangible assets can be deferred and exceeds normal credit
conditions, the purchase has the nature of finance in fact and cost of the intangible asset shall be
determined on the basis of present value of the purchase price. The difference between the amount
actually paid and the present value of the purchase price should be recorded into current profit or loss
other than those should be capitalized during the credit period.
Useful life and amortization method
For intangible assets with limited useful life, amortization shall be carried out according to the straight-
line method within the period that brings economic benefits to the enterprise. At the end of each period,
the useful life and amortization method of intangible assets with limited service life shall be reviewed. If
there are differences with the original estimates, corresponding adjustments shall be made.
Intangible assets whose useful life is uncertain shall be regarded as intangible assets if it is impossible
to foresee the term in which intangible assets bring economic benefits to the enterprise. Intangible
assets with uncertain useful life shall not be amortized during the holding period, and the life of
intangible assets shall be reviewed at the end of each period. If it is still uncertain after the review at the
end of the period, the impairment test shall continue during each accounting period. At the end of each
period, the useful life of intangible assets with uncertain service life shall be reviewed.
Impairment test
On the balance sheet date, intangible assets are valued at the lower of book value and recoverable
amount.
(2) Internal research and development expenditure accounting policy
The expenditures incurred in the development stage of the internal research and development projects
shall be recognized as intangible assets when the following conditions are met; otherwise, they shall be
recorded into the current profit and loss when they occur.
a. It is technically feasible to finish intangible assets for use or sale;
b. It is intended to finish and use or sell the intangible assets;
c. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
d. It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
e. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
Development expenditures that have been recorded into profit and loss in previous periods are not
recognized as assets in subsequent periods. The capitalized expenditure in the development stage is
listed as development expenditure in the balance sheet, and it will be recorded into intangible assets
from the date when the project reaches its intended purpose.
On the balance sheet date, the Company makes a judgment on whether there are signs of possible
impairment of long-term assets. If there are impairment indicators of non-current assets, the Company
estimates the recoverable amount based on individual asset. If recoverable amount of individual asset
is difficult to be estimated, the Company should recognize the recoverable amount of the asset group
which the individual asset belongs to.
The recoverable amount is the higher of fair values less costs of disposal and the present values of the
future cash flows expected to be derived from the asset.
If the measurement result of recoverable amount shows that recoverable amount of the non-current
assets is less than its book value, the book value shall be written down to the recoverable amount, and
the amount written down shall be recognized as the impairment loss of assets, recorded into the current
profit and loss, and the corresponding impairment provision of assets shall be made at the same time.
Once impairment loss stated above is recognized, reversal is not allowed in the subsequent accounting
periods.
After the recognition of the impairment loss, the depreciation or amortization expense of the impairment
asset shall be adjusted accordingly in the future period so as to systematically apportion the adjusted
book value of the asset (deducting the expected net salvage value) within the remaining service life of
the asset.
The Company should perform impairment test for goodwill and intangible assets with indefinite life at
least at each year end, no matter whether there is impairment indicator.
Goodwill shall be combined with its related asset group or asset group portfolio so as to perform an
impairment test. When the Company performs an impairment test on relevant asset group or asset
group portfolio including goodwill, if there are signs of impairment, the Company shall firstly perform an
impairment test on asset group or asset group portfolio excluding goodwill and calculate the
recoverable amount, and compare with the related book value, recognize the corresponding impairment
loss. Then, the Company performs an impairment test on relevant asset group or asset group portfolio
including goodwill, and compares the book value of the relevant asset groups or asset group portfolio
(including proportional book value of goodwill) with its recoverable amount. If the recoverable amount of
relevant asset group or asset group portfolio is less than its book value, the Company shall recognize
impairment loss of goodwill.
Long-term deferred expenses shall be initially measured according to the actual costs incurred. It is
amortized using the straight-line method over the beneficial period. If it cannot benefit the following
accounting period, the amortized value of the item that has not been amortized will be transferred to the
current profit and loss.
The recognition method of contract liabilities: The Company presents contract assets or contract
liabilities on the balance sheet according to the relationship between the fulfillment of its contract
performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of
transferring commodities or providing services to customers, as the Company has received or should
receive customers’ considerations, are presented as contract liabilities.
(1) Accounting treatment method of short-term benefits
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the
reporting period in which the employee provided relevant services, excluding the compensation for
employment termination. Accrued short term benefits will be recognized as liability during the
accounting period in which the employee is providing the relevant service to the Company. The liability
will be included in the current profit and loss or the relevant assets cost.
(2) Accounting treatment method of post-employment benefits
a. Defined contribution plan
The defined contribution plan of the Company includes payments of basic pension and unemployment
insurance calculated according to the local payment base and proportion. The amount shall be included
into the profit and loss or the relevant assets cost for the accounting period in which the employee
provides the service to the Company.
b. Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method, the
Company will record the benefit obligation generated by the defined benefit plan belonging to the period
during in which the employee provides the service into the current profit and loss or the relevant assets
cost.
The deficit or surplus resulting from the present value minus the fair value of the assets of a defined
benefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in the
defined benefit plan, the net assets of the defined benefit plan shall be measured at the lower of the
surplus and the upper limit of assets of the defined benefit plan.
All defined benefit plan obligations, including those expected to be paid within the twelve months
following the end of the annual reporting period in which the employee provides the service, are
discounted based on the market yield and high quality corporate bonds in an active market that match
the duration and currency of defined benefit plan obligations on the balance sheet date.
The service costs generated by the defined benefit plan and the net interest on net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or relevant assets cost;
Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan are
included in other comprehensive income and are not reversed to profit and loss in subsequent
accounting periods.
At the time of settlement of the defined benefit plan, the settlement gains or losses shall be recognized
according to the difference between the present value of the obligations of the defined benefit plan and
the settlement price determined on the settlement date.
(3) Accounting treatment method of termination benefits
Employee benefits liabilities shall be recognized and included into profit or loss for the current period on
the earlier date of the two following circumstances:
a. When the Company is not able to withdraw the benefits from termination of employment or
resignation persuasion unilaterally;
b. When the Company recognizes costs and fees relevant to reforming the termination benefits
payment.
As for the termination benefits that cannot be fully paid within 12 months after the end of the annual
report period, the Company shall choose an appropriate discount rate and record it into current profit
and loss based on it.
(4) Accounting treatment method of other long-term employee benefits
Other long-term employee benefits are all employee benefits other than short-term benefits, post-
employment benefits and termination benefits.
Other long-term employee benefits provided by the Company to the employee that meet the conditions
of the defined contribution plan shall be treated in accordance with the same principles of the defined
contribution plan; If the conditions for defined benefits are met, net liabilities or net assets of other long-
term employee benefits shall be recognized and measured in accordance with the relevant principles of
the defined benefits plan.
Refer to the Note 5.42 Lease for details.
(1) Recognition criteria of estimated liabilities
If the contingent obligations meet the following conditions simultaneously, the Company shall recognize
it as an estimated liability:
This obligation is the Company's current obligation; the performance of this obligation is highly likely to
result in an outflow of economic benefits from the Company; The amount of the obligation can be
measured reliably.
(2) Measurement method of estimated liabilities
The Company's estimated liabilities are initially measured in terms of the best estimate of the
expenditure of fulfilling the relevant current obligations.
For determining the best estimate, the Company takes various factors into account such as the risk,
uncertainty and time value of money related to contingencies. If the time value of money has a
significant impact, the best estimate is determined by discounting the relevant future cash outflows.
The best estimate is processed as follows:
Where there is a continuous range (or range) of required expenditures and the probability of the
occurrence of various results within the range is same, the best estimate is determined according to the
mean of the middle value of the range, namely the mean value of the upper and lower limits.
Where there is no continuous range (or range) of required expenditures, or where there is a continuous
range but the possibility of various outcomes within the range is different, if the contingencies involve a
single item, the best estimate is determined according to the most likely amount; If the contingencies
involve more than one item, the best estimate is calculated and determined according to various
possible results and relevant probabilities.
Where all or part of the expenses required for the liquidation of the estimated liabilities of the Company
are expected to be compensated by a third party, the amount of compensation shall be recognized as
an asset when it is basically confirmed that it can be received, and the confirmed amount of
compensation shall not exceed the book value of the estimated liabilities.
(1) The type of share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-
based payment.
(2) The method of determining the fair value of equity instruments
For equity-settled share-based payment related with employees, the equity instrument is measured at
fair value. The cash-settled share-based payment shall be measured according to the fair value of the
liabilities calculated and determined on the basis of shares or other equity instruments undertaken by
the Company.
For the fair value of the stock option granted, the fair value is determined by using the stock option
pricing model, and the following factors are taken into account: the current price of the underlying
shares, the exercise price of the option, the risk-free interest rate within the period of the option, the
option life, and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercised
For the equity-settled share-based payment settled immediately after the grant, the fair value of the
equity instrument shall be included in the relevant costs or expenses on the grant date, and the capital
reserve shall be increased accordingly. Grant date means the date on which the share-payment
agreement is approved.
For the equity-settled share-based payment, in which the services during waiting period are completed
and the performance conditions are met, in return for services of employees, on each balance sheet
date during waiting period, the current obtained service shall be included in the relevant costs or
expenses and the capital reserves in accordance with the fair value of the equity instruments on the
grant date, based on best estimate of the number of vested equity instruments, and the subsequent
changes in fair value shall not be recognized. On each balance sheet date during waiting period, the
Company makes the best estimate based on the latest available employee number change and other
subsequent information, and modifies the number of equity instruments for the estimated vesting. On
the vesting date, the final expected number of vesting instruments is the same as the actual number of
vesting instruments.
(4) Relevant accounting treatment of implement, modification and termination of share-based payment
plan
For equity-settled share-based payment, no adjustments will be made to the recognized costs and total
owners' equity after the vesting date. On the vesting date, the Company shall recognize the share
capital and the equity premium according to the exercise situation, and carry forward the capital reserve
recognized in the waiting period.
No matter how it modifies the terms and conditions of the granted equity instruments or it cancels the
granted equity instruments or its settlement, the equity instruments granted by the Company shall be
recognized at fair value on the grant date and it measures obtained the corresponding services, unless
it cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
N/A
Accounting policies for recognition and measurement of revenue
(1) Basic principles of revenue identification
The Company recognizes revenue when it has fulfilled the performance obligations under the contract,
that is, when the customers obtain the control of relevant goods or services, at the transaction price
allocated to the performance obligations.
Performance obligations refer to the Company's promise that it will transfer clearly distinguishable
goods or services to customers under the contract.
Obtaining control of related goods refers to that customers can control the use of the goods and obtain
almost all the economic benefits from the goods.
The Company will evaluate the contract on the contract start date, identify each individual performance
obligation contained in the contract, and judge whether each individual performance obligation will be
performed within a certain period of time or at a certain point in time. If one of the following conditions is
met, and the performance obligation are performed within a certain period of time, the Company will
identify revenue within a period of time according to the performance progress: a. The customers obtain
and consume the economic profits while the Company performs the contract. b. The customers can
control the products under construction during the performance of the Company; c. The products
produced during the performance of the Company cannot be replaced, and the Company has the right
to collect payment for the completed performance accumulated during the entire contract period.
Otherwise, the Company will identify revenue when the customers obtain control rights of the relevant
goods or services.
For the performance obligations performed within a certain period of time, the Company will apply the
input-output method to identify the appropriate performance progress based on the nature of the goods
and services. The input-output method is to identify the performance progress based on the value of the
goods that have been transferred to the customers to the customers. When the performance progress
cannot be reasonably identified and the Company's incurred costs are expected to be compensated,
the Company will identify the revenue according to the amount of the incurred costs until the
performance progress can be reasonably identified.
(2) The methods of revenue identification
The Company mainly sells alcoholic products, which is a performance obligation performed at a certain
point in time. The revenue identification of domestic products must meet the following requirements: a.
The Company has delivered the products to the purchasers according to the contract and the
purchasers have signed and confirmed the receipts. b. The amount of sales revenue has been
identified. c. The payment has been received; the receipt of the document of title has been obtained
and the relevant economic benefits are likely to flow in. d. The product-related costs can be reliably
calculated. The following requirements must be met to confirm the revenue of export products: a. The
Company has declared the products in accordance with the contract, obtained the bills of lading,
received the payment or obtained the receipt of payment and related economic benefits that are likely
to flow in. b. The main risks and rewards of the product ownership have been transferred. c. The legal
ownership of the goods has been transferred.
Government grants are monetary assets and non-monetary assets acquired free of charge by the
Company from the government like fiscal subsidies.
(1) Judgment basis and accounting treatment method of government grants related to assets
Government grants related to assets are government grants that are acquired by the Company and
used for forming long-term assets through purchasing and constructing or other ways. If the
government documents do not clearly specify the target of the subsidy, the Company shall separately
explain judgment basis of classifying the government grants into the government grants related to
assets or income.
Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives
(the period of depreciation and amortization) of the relevant assets from the month of commence of
depreciation or amortization when the relevant assets reaching the intended use condition, and
included in the current profit or loss. However, government grants measured at the nominal amount
shall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income are government grants other than government grants related to
assets;
Accounting method:
a. If it is used to compensate the Company’s relevant expenses or losses in future periods, it should be
recognized as deferred income and included into the current profit and loss or written off of the related
costs when the relevant expenses, losses are recognized.
b. If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly included
into the current profit and loss on acquisition or written off of the related costs.
c. Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for the
government grants and the Company can receive the grants.
d. Measurement of government grants
If a government grant is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government grant is a non-monetary asset, it shall be measured at its fair value; and if its
fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
The Company adopts the balance sheet liability method to account for income tax.
The Company recognizes deferred tax assets when the following conditions are met simultaneously:
i. Temporary differences are highly likely to be reversed in the foreseeable future;
ii. Taxable income that may be used to offset the deductible temporary difference is likely to be
obtained in the future and is limited to the amount of taxable income that is likely to be obtained.
On each balance sheet date, the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income, except for the income tax generated from the enterprise merger,
transactions or events directly recognized in the owner's equity.
(1) Lease
From the effectiveness date of a contract, the Company assessed whether the contract was a lease or
includes any lease. If a party to the contract transferred the right allowing the control over the use of
one or more assets that had been identified within a certain period, in exchange for a consideration,
such contract was a lease or includes a lease.
(1) Accounting treatment with the Company as lessee
On the commencement date of the lease term, the Company recognizes the right-of-use assets and
lease liabilities for the lease, unless it is a simplified short-term lease or a low-value asset lease.
Right-of-use assets are initially measured at costs, including: A. The initial measurement amount of
lease liabilities; B. If there is a lease incentive for the lease payment paid on or before the start date of
the lease term, the relevant amount of the lease incentive already enjoyed shall be deducted; C. Initial
direct expenses incurred by the Company; D. The expected cost to be borne by the Company in order
to dismantle and remove the assets leased, restore original state of the place where the assets leased
are in, or restore the assets leased to the state stipulated in the lease terms.
The Company initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term. When calculating the present value of lease
payments, the Company uses the interest rate implicit in lease as the rate of discount. If the interest
rate implicit in lease cannot be determined, the Company’s incremental lending rate is used as the rate
of discount.
After the commencement of the lease term, the Company uses the cost model for subsequent
measurement of right-of-use assets, depreciates right-of-use assets on a straight-line basis, calculates
the interest expense on the lease liability within the lease term and includes it in the current profit or
loss, unless such interest charge is stipulated to be included in the underlying asset cost. Variable lease
payments that are not included in the measurement of the lease obligation should be included in the
current profit or loss when they are actually incurred, unless such payments are stipulated to be
included in the underlying asset cost.
After the commencement of the lease term, the Company remeasures the lease liability and adjusts the
corresponding right-of-use asset, and if the carrying value of the right-of-use asset has been reduced to
zero but the lease liability is subject to further reduction, the difference is recorded in current profit or
loss: (1) When there is a change in the valuation of the purchase option, renewal option or termination
option, or actual exercise, the Company remeasures the lease liabilities at the present value of the
lease payments after the change and the revised discount rate; (2) When there is a change in the
actual fixed payment, the estimated payable of the residual value of the guarantee, the index or rate
used to confirm the lease payment, the Company calculated the present value based on the changed
lease payment amount and the original discount rate to remeasure the lease liabilities. However, where
changes in lease payments arise from changes in floating interest rates, a revised discount rate was
used to calculate the present value.
The Company does not recognize the right-of-use assets and lease liabilities for short-term leases and
leases of low-value assets, which are included in the profit or loss for the current period or the cost of
relevant assets on a straight-line basis during each period of the lease term.
(2) Accounting treatment with the Company as lessor
① Lease classification
The Company classifies leases into finance leases and operating leases at the inception of leases. A
finance lease refers to a lease where almost all the risks and rewards, related to the ownership of the
leased asset, are substantially transferred, regardless of whether the ownership is eventually
transferred or not. All leases other than finance leases are classified as operating leases.
② Accounting treatment of finance leases
On the commencement date of the lease term, the Company recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. In the initial measurement
of finance lease receivables, the sum of the unsecured residual value and the present value of the
lease payments receivable not yet received on the commencement date of the lease term discounted at
the interest rate implicit in lease is the entry value of the finance lease receivables. The Company
calculates and recognizes the interest income in each period within the lease term at a fixed interest
rate implicit in the lease. The received variable lease payments that are not included in the
measurement of the net investment in the lease are included in profit or loss for the current period when
they are actually incurred.
③ Accounting treatment of operating leases
The Company recognizes the lease payments receivable of the operating lease as rental earnings in
each period within the lease term on a straight-line basis or according to other systematic and
reasonable methods. The initial direct costs related to the operating lease are capitalized, amortized
within the lease term on the same basis as the recognition of rental earnings, and included in profit or
loss for the current period. The received variable lease payments related to the operating lease that are
not included in the lease payments receivable are included in profit or loss for the current period when
they are actually incurred.
The Company adopts the balance sheet liability method to account for income tax.
The Company recognizes deferred tax assets when the following conditions are met simultaneously:
in the future and is limited to the amount of taxable income that is likely to be obtained.
On each balance sheet date, the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and
loss as income tax expense or income, except for the income tax generated from the enterprise
merger, transactions or events directly recognized in the owner's equity.
□Applicable ? N/A
□Applicable ? N/A
Implementation of the New Accounting Standards Implemented since 2023
□Applicable ? N/A
N/A
Tax type Tax base Tax rate
Value-added tax Taxable sales income 13 %, 9%, 6%
Urban maintenance and construction
Taxable turnover tax 7%
tax
Corporate income tax Taxable income 25%, 15%, 16.5%, 9%, 0%
Consumption tax (based on price) Baijiu tax price or ex-factory price 20%
Consumption tax (based on quantity) Quantity of baijiu CNY 1.00/kg
Education surcharge Taxable turnover tax 3%
Local education surcharge Taxable turnover tax 2%
Original value of the property*70%;
Property tax 1.2%, 12%
house rent
Land use tax Land area CNY 5-18.00/m2
Others According to national regulation
Tax payment subject using different corporate income tax rates, the corporate income tax rates are as
follows:
Company name Corporate income tax rate
Luzhou Pinchuang Technology Co., Ltd. 15%
Luzhou Laojiao International Development (Hong Kong)
Co., Ltd.
Luzhou Laojiao Commercial Development (North
America) Co., Ltd.
Mingjiang Co., Ltd. 21%-40%
Luzhou Red Sorghum Modern Agricultural Development
Exempted from corporate income tax
Co., Ltd.
Guangxi Luzhou Laojiao Imported Liquor Industry Co.,
Ltd.
Luzhou Laojiao International Trade (Hainan) Co., Ltd. 15%
(1) According to Announcement of the Ministry of Finance, State Taxation Administration and
National Development and Reform Commission on Continuing the Corporate Income Tax Policies
Concerning the Western Development Strategy (No. 23 in 2020, Ministry of Finance), the Company's
wholly-owned subsidiary, Luzhou Pinchuang Technology Co., Ltd., whose primary business income
meet the requirements of scope and standard of the Catalogue of Encouraged Industries in the
Western Region, is paid at the rate of 15% for corporate income tax.
(2) According to Article 27 of the Corporate Income Tax Law of the People's Republic of China and
Article 86, Item 1 of the Implementation Regulations of the Corporate Income Tax Law, companies are
exempted from enterprise income tax when they engage in agricultural, forestry, animal husbandry and
fishery industries. The holding subsidiary of the Company, Luzhou Red Sorghum Modern Agricultural
Development Co., Ltd., is engaged in the cultivation and sale of organic sorghum and enjoys the
reduction of corporate income tax preferences.
(3) According to the Article 15, Item 1 of the Provisional Regulations on Value-Added Tax, agricultural
producers sell self-produced agricultural products exempt from value-added tax. The holding subsidiary
of the Company, Luzhou Red Sorghum Modern Agricultural Development Co., Ltd., is engaged in the
cultivation and sale of organic sorghum and enjoys the value-added tax exemption.
(4) According to the Article 3, Item 7 of the Notice on Revise of Interim Measures of Accelerating the
Development in Headquarters Economy of China-Malaysia Qinzhou Industrial Park, till 31 December
Development with the half reduction in the tax period of preferential policies shall enjoy the local
share of corporate income tax exemption (namely 40% of corporate income tax was exempted, and
the proportion adjusted by the state shall be executed according to new proportion); Guangxi Luzhou
Laojiao Imported Liquor Industry Co., Ltd., the wholly-owned subsidiary of the Company, pays
corporate income tax at the rate of 9% according to the tax preference policies.
(5) According to Announcement on Preferential Corporate Income Tax Policies in Hainan Free Trade
Port (Cai Shui [2020] No. 31), the Company's wholly-owned subsidiary, Luzhou Laojiao International
Trade (Hainan) Co., Ltd., whose primary business income meet the requirements of scope and
standard of the Catalogue of Encouraged Industries in Hainan Free Trade Port, is paid at the rate of
currency unit is CNY, except other statements)
Monetary Unit: CNY
Item Closing Balance Opening Balance
Cash 34,319.35 28,711.93
Bank deposit 30,324,182,733.78 17,729,643,050.90
Other cash and cash equivalents 20,258,485.00 27,856,448.42
Total 30,344,475,538.13 17,757,528,211.25
Including: Total deposit outbound 81,637,756.42 68,948,954.39
Total amount with
restriction to use due to mortgage, 32,939,930.13 28,521,619.38
pledge or freeze
Other statements:
Note 1: The deposit outbound is the balance of cash and cash equivalents of the foreign holding
subsidiary of the Company.
Note 2: The closing balance of other cash and cash equivalents is the balance of CNY 10,258,485.00
deposited by the subsidiary, Luzhou Laojiao Electronic Commerce Co., Ltd., Luzhou Laojiao Selected
Supply Chain Management Co., Ltd. and Luzhou Laojiao Nostalgic Liquor Marketing Co., Ltd. on the
third-party e-commerce platform, and guaranty letter deposit of CNY 10,000,000.00 by the subsidiary,
Luzhou Laojiao Sales Co., Ltd., in the bank.
Note 3: The closing balance increased by CNY 12,586,947,326.88, up 70.88% compared with the
beginning of the period, which was mainly due to the combined effect of net positive cash flows from
operating activities and the acquisition of bank borrowings in the current period.
Note 4: There is no special benefit arrangement such as establishing a fund co-management account
with related parties in the current period.
Liquor and wine manufacturing companies shall disclose in detail whether there are special interest
arrangements such as establishing co-management accounts with related parties.
□Applicable ? N/A
Monetary Unit: CNY
Item Closing Balance Opening Balance
Financial assets measured at fair
value with their changes included into 200,056,716.13 1,073,466,780.37
current profits/losses
Including:
Wealth management products
measured at fair value with their
changes included into current
profits/losses
Including:
Total 200,056,716.13 1,073,466,780.37
Other statements:
Note 1: The closing balance is the Company’s wealth management products of the collective asset
management plan purchased from securities-type companies which are measured at fair value based
on the amount calculated on the basis of the net value of relevant asset units published on the official
website of the asset manager.
Note 2: The closing balance decreased by CNY 873,410,064.24, down 81.36% compared with the
beginning of the period, which was mainly due to the redemption of wealth management products of
the collective asset management plan from securities-type companies in the current period.
Monetary Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Includin
g:
Account
s
receiva
ble
tested 15,537, 100.00 816,382 14,720, 6,265,8 100.00 326,470 5,939,4
for 126.37 % .78 743.59 90.81 % .03 20.78
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
ble
tested 5.25% 5.21%
for 126.37 % .78 743.591 90.81 % .03 20.78
impairm
ent on
the
portfolio
with
charact
eristics
of credit
risk
Total 5.25% 5.21%
Note: 1. The closing book value increased by CNY 8,781,322.81, up 147.85% compared with the
opening book value, which was mainly due to the sales of overseas business.
Accounts receivable tested for impairment on the portfolio:
Monetary Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 15,537,126.37 816,382.78 5.25%
Other portfolio
Total 15,537,126.37 816,382.78
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable
□Applicable ? N/A
Disclosure by aging
Monetary Unit: CNY
Aging Closing balance
Within 1 year (including 1 year) 15,273,616.57
Total 15,537,126.37
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening Closing
Type Reversal or
Balance Allowance Write-off Other Balance
recovery
Provision
allowance by 326,470.03 489,912.75 816,382.781
risk portfolio
Total 326,470.03 489,912.75 816,382.78
Note: There is no significant provision in accounts receivable reversed or recovered in the reporting
period.
Monetary Unit: CNY
Proportion to total closing
Closing balance of
Company name Closing Balance balance of accounts
provision for bad debt
receivable
China Duty Free
International LTD
Sazerac Distiller LLC 1,226,993.73 7.90% 61,349.69
BAIWAN WINES INC. 720,621.23 4.64% 36,031.06
Tai Fung Castelmor. Ltd 361,259.42 2.33% 18,062.97
Beijing Secoo Trading
Limited
Total 15,158,837.96 97.58%
Monetary Unit: CNY
Item Closing Balance Opening Balance
Bank acceptance bill 2,765,330,012.771 4,583,352,503.37
Total 2,765,330,012.77 4,583,352,503.37
Note: 1. The business mode to manage notes receivable aims to collect contract cash flow as well as
to sell the financial assets, and thus the notes receivable is presented as accounts receivable
financing; since the timing and price of bills discounted may not be reliably estimated due to the short
maturity of the bills all being less than one year and the endorsement of the negotiable bills being
valued at book value, the face value is regarded as the fair value of accounts receivable financing by
the Company.
opening balance, which was mainly due to the impact of bill discount and remittance of bills for
collection at maturity.
Changes in accounts receivable financing in the reporting period and fair value:
□Applicable ? N/A
Please refer to the relevant information of disclosure of impairment provision of other accounts
receivable if adopting the general mode of expected credit loss to withdraw impairment provision of
accounts receivable financing.
□Applicable ? N/A
Other statements:
(1) There was no accounts receivable financing pledge at the end of the period.
(2) There is CNY 11,948,776,869.96 as follows of accounts receivable financing that have been
endorsed to other parties by the Company but have not expired at the end of the period:
Item Derecognition at period-end Not derecognition at period-end
Bank acceptance bill 11,948,776,869.96
Subtotal 11,948,776,869.96
Note: The acceptor of the bank acceptance bill is a commercial bank. The probability of not being paid
due is very low, and the possibility of being recourse is very low, so the confirmation has been
terminated.
(3) There are no accounts receivable financing transferred to accounts receivable due to the non-
performance of the agreements by the issuers.
(4) There are no accounts receivable financing actually written off during the reporting period.
Monetary Unit: CNY
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 176,583,433.39 97.00% 108,917,843.70 95.33%
Over 3 years 128,485.061 0.07% 165,065.55 0.14%
Total 182,055,446.82 114,257,506.26
Note: 1. The Closing balance increased by CNY 67,797,940.56, up 59.34% compared with the
opening balance, which was mainly due to the increase in prepayments for suppliers.
Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There is no significant prepayment whose aging is longer than 1 year.
Proportion to the total closing
Company Name Closing Balance
balance of prepayment
Shanghai Merlot Advertising Co., Ltd. 62,911,313.05 34.56%
Sichuan Branch of Taiping Pension Co.,Ltd. 22,085,460.00 12.13%
Luzhou Western Gas Co., Ltd. 18,236,095.48 10.02%
Luzhou Power Supply Company of State Grid
Sichuan Electric Power Company
Beijing Jingshi Satellite Media Co., Ltd. 5,885,135.14 3.23%
Subtotal 116,102,746.14 63.78%
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividend receivable 15,482,200.48
Other receivables 16,061,082.55 23,396,533.98
Total 31,543,283.03 23,396,533.98
Monetary Unit: CNY
Item (investee) Closing Balance Opening Balance
Guotai Junan Securities Co., Ltd. 6,241,808.41
Huaxi Securities Co., Ltd. 8,184,934.32
North Chemical Industries Co., Ltd. 78,177.75
China Tourism Group Duty Free
Corporation Limited
Total 15,482,200.48
□Applicable ? N/A
Other statements:
There was no allowance of provision for bad debt at the end of the reporting period.
Monetary Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds and others 10,522,277.29 18,516,591.35
Petty cash 698,041.59 326,785.39
Saving deposits involving contract
disputes 1
Total 139,937,347.60 147,892,873.72
Note 1: The saving deposits involving contract disputes are three deposits amounting to CNY
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
contract disputes and have thus been transferred into “other receivables”.
Monetary Unit: CNY
First stage Second stage Third stage
Provision for bad Expected loss in the
Expected credit loss Expected loss in the Total
debt duration (credit
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of 1 January
Balance of 1 January
period
Recovery 620,074.69 620,074.69
Balance of 30 June
Changes of book balance with significant amount changed of loss provision in the current period
□Applicable ? N/A
Disclosure by aging
Monetary Unit: CNY
Aging Closing balance
Within 1 year (including 1 year) 7,268,179.00
Over 3 years 132,177,857.84
Over 5 years 132,054,057.84
Total 139,937,347.60
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Type Opening Balance Reversal or Closing Balance
Allowance Write-off Other
recovery
Other
receivables
tested for 120,000,000.00 120,000,000.00
impairment
individually
Other
receivables
tested for 4,496,339.74 620,074.69 3,876,265.05
impairment by
the portfolio
Total 124,496,339.74 620,074.69 123,876,265.05
Of which, bad debt provision recovered or reversed with significant amount:
No changes with significant amount of loss provision in the current period.
Monetary Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Agricultural Bank
of China
Changsha
Yingxin Sub-
branch, Industrial Saving deposits
and Commercial involving 128,717,028.72 Over 5 years 91.98% 120,000,000.00
Bank of China contract disputes
Nanyang
Zhongzhou Sub-
branch and
another bank
Longmatan
Power Supply
Bureau of Security deposit 1,520,000.00 Over 5 years 1.09% 1,520,000.00
Luzhou Power
Bureau
Online Banking Security deposit 300,000.00 2-3 years, 4-5 0.21% 120,000.00
(Beijing) years
Technology Co.,
Ltd.
Luzhou Aopulan
Security deposit 300,000.00 Over 5 years 0.21% 300,000.00
Beer Co., Ltd.
Beijing Jingdong
Century Trading Security deposit 100,000.00 Over 5 years 0.07% 100,000.00
Co.,Ltd.
Total 130,937,028.72 93.56% 122,040,000.00
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
Monetary Unit: CNY
Closing Balance Opening Balance
Pro
visi
on
for
Provi stoc
sion k
for obs
stock oles
obsol cen
escen ce
ce or or
Category impair imp
Book Balance ment Book Value Book Balance airm Book Value
provis ent
ion of prov
contr isio
act n of
perfor cont
manc ract
e perf
costs orm
anc
e
cost
s
Raw
materials
Goods in
progress
Finished
goods
Goods in
transit
Total 10,794,156,136.00 10,794,156,136.00 9,840,742,374.85 9,840,742,374.85
Note: 1. The closing balance of inventories included no capitalized amount of borrowing expenses.
the period.
Monetary Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 96,411,696.20 139,165,221.10
Corporate income tax 7,333,423.79 9,447,204.77
Other taxes 5,406,724.20 4,423,521.07
Total 109,151,844.19 153,035,946.94
Other statements:
The value-added tax expected to be deducted in the subsequent accounting period and corporate
income tax and other taxes are disclosed in other current assets.
Monetary Unit: CNY
Changes in current period
Closin
Openin Gain Adjust Closin g
g or loss ments Cash g Balanc
Investe Balanc recogn of Other divided Provisi Balanc e of
e e Increa Decrea ized other chang or on for e provisi
Other
(book se se under compr es in profit impair (book on for
value) equity ehensi equity declar ment value) impair
metho ve ed ment
d income
Huaxi
Securit 2,497, 54,493 2,545,
ies 540,59 ,747.5 247,36
Co., 955.21 934.32 098.80
Ltd.
Luzho
u
Laojiao
Postdo
ctoral
Workst 40,185 - 39,686
ation ,894.7 499,83 ,064.5
Techno 7 0.20 7
logy
Innova
tion
Co.,
Ltd.
Sichua
n
Develo
pment
Wine
Invest 654.24 39 813.63
ment
Co.,
Ltd.
Sichua
n
Tongni 8,086, 6,025. 8,092,
ang
Baijiu
Industr
y
Techno
logy
Resear
ch
Institut
e Co.,
Ltd.
Note
CTS
Luzho
u
Laojiao
Cultura 115,79 122,75
l 6,958,
Touris 058.33
m 20 53
Develo
pment
Co.,
Ltd.
Subtot 1,397, 8,184, 2,567,
al 955.21 934.32 098.80
Total 500,55 ,161.0 676,73
Monetary Unit: CNY
Item Closing Balance Opening Balance
Financial assets designated to be
measured at fair value through other
comprehensive income
Including:
China Tourism Group Duty Free
Corporation Limited
Guotai Junan Securities Co., Ltd. 164,760,188.01 160,049,389.21
Luzhou Bank Co., Ltd. 112,018,357.27 120,158,392.72
Guotai Junan Investment
Management Co., Ltd.
North Chemical Industries Co.,Ltd. 14,791,230.29 14,931,950.24
Guojiu Big Data Co., Ltd. 10,000,000.00 10,000,000.00
Sichuan China Baijiu Golden Triangle
Brand Operation Development Co.,
Ltd. and other equity instrument
investments
Total 445,414,722.85 1,136,736,978.11
Note: 1. The closing balance decreased by CNY 691,322,255.26, down 60.82% compared with the
opening balance, which was mainly due to the partial disposal of H shares of China Tourism Group
Duty Free Corporation Limited held in the current period.
Categories of non-trading equity instrument investment in the current period:
Monetary Unit: CNY
Item Recognized Accumulative Accumulative Amount of Reason for Reason of
dividends gains losses other assigning other
income comprehensiv to measure comprehensiv
e income at fair value e income
transferred to and transferred to
retained changes retained
earnings recorded earnings
into other
comprehen
sive income
According
China Tourism to the mode
Group Duty of
Partial
Free 977,280.00 31,811,873.87 16,215,653.21 managing
Corporation disposal
assets by
Limited manageme
nt layer
According
to the mode
Guotai Junan of
Securities 6,241,808.41 152,041,031.25 managing
Co., Ltd. assets by
manageme
nt layer
According
to the mode
of
Luzhou Bank
Co., Ltd.
assets by
manageme
nt layer
According
to the mode
Guotai Junan of
Investment
managing
Management
Co., Ltd. assets by
manageme
nt layer
According
to the mode
North of
Chemical
Industries
Co.,Ltd. assets by
manageme
nt layer
According
to the mode
of
Guojiu Big
managing
Data Co., Ltd.
assets by
manageme
nt layer
According
to the mode
Shenzhen of
Xingangfeng
Development
Co., Ltd. assets by
manageme
nt layer
Sichuan 2,000,000.00 According
Deyang Jintai to the mode
Hotel of
managing
assets by
manageme
nt layer
According
Hainan to the mode
Huitong of
International 1,000,000.00 managing
Trust assets by
Company manageme
nt layer
Sichuan
China Baijiu
According
Golden
Triangle to the mode
Brand of
Operation 398,926.37 managing
Development assets by
Co., Ltd. and manageme
other equity
nt layer
instrument
investments
Subtotal 7,297,266.16 226,700,618.81 37,564,800.24 16,215,653.21
?Applicable □ N/A
Monetary Unit: CNY
Buildings and Construction in
Item Land use right Total
constructions progress
I. Original cost:
period
(1) External
purchase
(2) Transfer from
inventories/fixed
assets/construction
in progress
(3) Increase from
business
combination
current period
(1) Disposal
(2) Other transfer out
II. Accumulated
depreciation and
amortization
period
(1) Provision or
amortization
current period
(1) Disposal
(2) Other transfer out
III. Provision for
impairment
period
(1) Provision
current period
(1) Disposal
(2) Other transfer out
IV. Book Value
Value
□Applicable ? Not applicable
Monetary Unit: CNY
Reason for not having the
Item Book value
certification of right
Buildings of the Company 31,865,038.27 In procedure
Monetary Unit: CNY
Item Closing Balance Opening Balance
Fixed assets 8,599,184,607.11 8,853,348,204.83
Disposal of fixed assets 17,203,984.00 2,910,393.95
Total 8,616,388,591.11 8,856,258,598.78
Monetary Unit: CNY
Buildings and Specialized General Transportation Other
Item Total
constructions equipment equipment equipment equipment
I. Original
cost:
balance .95 .25 .63 .93 9.80
current period
(1) External
purchase
(2) Transfer
from
construction in
progress
(3) Increase
from business
combination
(4) Adjustment
for completion -2,072,651.45 1,018,810.23 1,266,947.89 -622,075.28 -408,968.61
settlement
(5) Changes
of exchange 30,214.07 30,214.07
rates
current period
(1) Disposal
or retirement
Balance .93 .86 .46 .16 1.34
II.
Accumulated
depreciation
Balance 8 5 7 0 .90
current period 2 7
(1) Provision 68,724,090.30 63,140,194.01 1,501,935.38 33,608,050.98
(2) Changes
of exchange 22,725.78 22,725.78
rates
current period
(1) Disposal
or retirement
Balance .50 5 2 1 .16
III. Provision
for impairment
Balance
current period
(1) Provision
current period
(1) Disposal
or retirement
Balance
IV. Book Value
Book Value 12,724,950.75
.36 1 4 5 .11
Book Value
.70 0 6 3 .83
Monetary Unit: CNY
Item Closing book value
Buildings and constructions 22,719,987.17
Equipment 13,027,819.00
Monetary Unit: CNY
Reason for not having the
Item Book value
certification of right
The property ownership certificate
has not been processed yet for the
Buildings of the Company 23,174,737.57 historical reasons, and it plans to be
processed after gradually improving
procedures.
Buildings of the Company 229,630,310.67 In procedure
Buildings of the subsidiary-brewing
company
Buildings of the subsidiary- Guangxi
Imported Liquor Industry
Subtotal 4,665,806,263.30
Monetary Unit: CNY
Item Closing Balance Opening Balance
Disposal and retirement of assets 17,203,984.00 2,910,393.95
Total 17,203,984.00 2,910,393.95
Monetary Unit: CNY
Item Closing Balance Opening Balance
Construction in progress 1,209,595,255.85 808,919,047.21
Total 1,209,595,255.85 808,919,047.21
Monetary Unit: CNY
Closing Balance Opening Balance
Provisi Provisi
Item on for on for
Book balance Book value Book balance Book value
impair impair
ment ment
Technical
renovation of 900,179,496.39 900,179,496.39 638,798,849.16 638,798,849.16
Luzhou
Laojiao
Intelligent
packaging
center
Technical
renovation
project of
Luzhou 22,477,396.18 22,477,396.18 12,284,062.35 12,284,062.35
Laojiao
intelligent
brewing (I)
Other projects 286,938,363.28 286,938,363.28 157,836,135.70 157,836,135.70
Total 1,209,595,255.85 1,209,595,255.85 808,919,047.21 808,919,047.21
Note: 1. The closing balance increased by CNY 400,676,208.64, up 49.53% compared with the
opening balance, which was mainly due to the increase in input in the technical renovation of Luzhou
Laojiao Intelligent packaging center in the current period.
Monetary Unit: CNY
Propo
rtion
Includi
of Accu
ng: Capita
Increa accu mulati
Openi Transf Closin Capita lizatio
se in Other mulati Progr ve Sourc
Budge ng er into g lized n rate
Item curren decre ve ess capital e of
t Balan fixed Balan intere for the
t ases projec (%) ized funds
ce assets ce st for period
period t input intere
the (%)
in st
period
budge
t
Techni
cal
renov
ation
of
Luzho
u 507,4 606,2 51.66 60.00 150,7
Laojia 80.08 27.42 % % 69.29
o
Intellig
ent
packa
ging
center
Techni
cal
renov
ation
projec 4,782, 12,28 10,19 22,47
t of 509,0 4,062. 3,333. 7,396. 1.00% Other
%
Luzho 00.00 35 83 18
u
Laojia
o
intellig
ent
brewi
ng (I)
Total 685,0 82,91 87,68 56,89
Monetary Unit: CNY
Item Land use right Buildings and constructions Total
I. Original cost
period
(1) Lease in 320,211.86 320,211.86
(2) Changes of exchange
rates
period
(1) Adjustment for change
of lease term
II. Accumulated
amortization
period
(1) Provision 1,817,456.35 4,153,704.36 5,971,160.71
(2) Changes of exchange
rates
period
(1) Disposal
(1) Adjustment for change
of lease term
III. Provision for impairment
period
(1) Provision
period
(1) Disposal
IV. Book Value
Monetary Unit: CNY
No-patent
Computer Trademark
Item Land use right Patent right right Total
software right
technology
I. Original cost
Balance .29 .27
current period
(1) Acquired 1,540,088.66 1,540,088.66
(2) Internal
developed
(3) Business
combination
(4)
Transferred
from 12,579,993.97 12,579,993.97
construction in
progress
(5) Adjustment
for completion
settlement
current period
(1) Disposal 1,984,960.84 1,984,960.84
(2) Other 247,433.63 247,433.63
Balance .45 .43
II.
Accumulated
amortization
Balance 1 8
current period
(1) Provision 36,286,981.77 65,002.52 2,838,932.03 19,984.81 39,210,901.13
current period
(1) Disposal 1,109,361.14 1,109,361.14
Balance 4 7
III. Provision
for impairment
Balance
current period
(1) Provision
current period
(1) Disposal
Balance
IV. Book Value
Book Value .11 .96
Book Value .58 .79
There is no proportion of intangible assets formed by internal development to the balance of
intangible assets at the period-end.
Monetary Unit: CNY
Item Opening Balance Increase Amortization Other decrease Closing Balance
Improvement
expense of
rented fixed
assets
Total 710,010.92 262,861.76 -2,840.081 449,989.24
Note: 1 Other decrease was generated from changes of exchange rates.
Monetary Unit: CNY
Closing Balance Opening Balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
impairment
Unrealized profits
from internal 1,487,258,579.16 371,814,644.79 2,839,779,249.07 709,944,812.27
transactions
Deductible losses 9,102,050.75 2,275,512.69 9,551,262.70 2,312,572.68
Impact from salary 497,857,634.85 122,138,335.07 630,936,117.63 155,191,186.34
Impact from deferred
earnings
Impact from fixed
assets depreciation
Recognition costs of
restricted shares for
equity incentive in
the vesting period
Impact from fair
value changes of
other equity 54,989,996.72 13,747,499.18 5,752,926.37 1,438,231.59
instrument
investment
Impact of income tax
from fair value
changes of held-for- 26,533,219.63 6,633,304.92
trading financial
assets
Lease liabilities 4,855,478.17 927,586.79
Total 2,690,834,517.10 667,166,561.572 4,042,373,330.50 1,005,167,353.80
Note: 1. Deductible temporary differences of CNY 477,842,964.45 of costs and expenses recognized
during the vesting period of restricted shares for share incentives represent the estimated future pre-
tax deductible amounts based on the Company's share price less the grant price at the end of the
period.
balance, which was mainly due to decline in unrealized profits of internal transactions.
Monetary Unit: CNY
Closing Balance Opening Balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Fair value changes
of other equity
instrument
investment
Fair value changes
of held-for-trading 56,716.13 14,179.04
financial assets
Impact from the
policy of one-time
pre-tax deduction of
fixed assets
Right-of-use assets 3,559,187.35 637,792.86
Total 373,037,065.73 92,383,522.191 667,640,314.75 166,043,663.88
Note: 1. The closing balance decreased by CNY 73,660,141.69, down 44.36% compared with the
opening balance, which was mainly due to the decline in fair value of equity investments.
Monetary Unit: CNY
Item Closing Balance Opening Balance
Deductible losses 158,312,771.24 72,503,754.75
Credit impairment losses and Asset
impairment losses
Impact from employee benefits
payable
Recognition costs of restricted
shares for equity incentive in the 9,725,391.12
lock-up period
Total 168,131,271.73 74,873,148.89
years
Monetary Unit: CNY
Year Closing Amount Opening Amount Notes
The 1st year 6,496,423.50 6,496,423.50
The 2nd year 14,491,365.44 14,491,365.44
The 3rd year 21,641,111.94 21,651,366.58
The 4th year 11,572,224.60 11,572,224.60
The 5th year 104,111,645.76 18,292,374.63
Total 158,312,771.24 72,503,754.75
Monetary Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepaid
equipment 278,333,803.0 278,333,803.0 196,095,702.0 196,095,702.0
and land 8 8 9 9
expense
Cultural relics
assets
Total
Note: 1. The closing balance increased by CNY 101,289,936.41, up 51.65% compared with the
opening balance, which was mainly due to the increase in prepayments for equipment to suppliers
and lands in the current period.
Monetary Unit: CNY
Category Closing Balance Opening Balance
Materials and service expense 879,280,312.67 1,042,394,395.05
Engineering equipment expense 1,285,517,851.75 1,269,271,189.99
Total 2,164,798,164.42 2,311,665,585.04
Monetary Unit: CNY
Reason for not payment or carrying
Category Closing Balance
forward
China Construction First Group
Corporation Limited
Total 323,441,430.59
Monetary Unit: CNY
Category Closing Balance Opening Balance
Within 1 year 1,904,776,798.39 2,540,635,630.98
Over 3 years 13,654,484.63 13,884,666.89
Total 1,933,610,554.94 2,566,374,718.76
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
benefits
benefits- defined 19,413,782.04 75,165,629.22 69,740,897.39 24,838,513.87
contribution plans
benefits
Total 675,034,885.31 587,902,008.60 750,440,709.95 512,496,183.96
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
allowances and 611,845,393.45 425,110,167.32 604,710,266.01 432,245,294.76
grants
welfare
premiums
Including: Medical
insurance premium
Work-related injury
insurance
expenditures and
employee education
funds
Total 655,612,131.74 512,694,515.63 680,657,948.81 487,648,698.56
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
insurance premium
insurance premium
Total 19,413,782.04 75,165,629.22 69,740,897.39 24,838,513.87
Monetary Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 150,481,155.11 502,641,326.22
Consumption tax 74,507,439.63 1,386,271,621.60
Enterprise income tax 1,002,960,198.35 1,345,243,541.07
Individual income tax 5,129,262.42 10,295,445.63
Urban maintenance and construction
tax
Education surcharge 6,502,982.95 56,445,651.96
Local education surcharge 4,443,544.51 37,733,654.17
Stamp duty 6,487,529.28 9,937,931.91
Land use tax 437,618.74 437,618.74
Others 350,923.67 302,715.24
Total 1,266,525,574.18 3,481,150,728.98
Other statements:
The closing balance decreased by CNY 2,214,625,154.80, down 63.62% compared with the opening
balance, mainly due to the taxes of the end of last year put into the treasury in the current period.
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividend payable 6,235,743,174.61 16,594,850.58
Other payables 1,175,814,936.29 1,185,814,427.91
Total 7,411,558,110.90 1,202,409,278.49
Monetary Unit: CNY
Item Closing Balance Opening Balance
Ordinary share dividends 6,205,174,061.68 16,594,850.58
Dividend of restricted shares 30,569,112.93
Total 6,235,743,174.61 16,594,850.58
Monetary Unit: CNY
Item Closing Balance Opening Balance
Security deposit 537,787,761.78 527,881,969.37
Intercourse funds 10,271,629.19 10,226,769.10
Repurchase obligations of restricted
shares
Others 11,011,934.73 8,683,690.66
Total 1,175,814,936.29 1,185,814,427.91
Other statements:
Other payables whose aging are longer than 1 year are mainly security deposits collected from
dealers.
Monetary Unit: CNY
Item Closing Balance Opening Balance
Long-term loans due within one year 24,800,000.00 20,400,000.00
Lease liabilities due within one year 9,311,083.99 14,530,370.36
Interest of long-term loans due within
one year
Interest of bonds payable due within
one year
Total 80,331,921.57 81,879,466.63
Monetary Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 251,369,372.14 333,627,225.47
Total 251,369,372.14 333,627,225.47
Monetary Unit: CNY
Item Closing Balance Opening Balance
Credit loans 9,539,900,000.00 3,200,000,000.00
Less: Long-term loans due within one
-24,800,000.00 -20,400,000.00
year
Total 9,515,100,000.00 3,179,600,000.00
Monetary Unit: CNY
Item Closing Balance Opening Balance
Corporate bonds in 2020 (Phase I) 1,498,077,519.80 1,497,461,348.61
Corporate bonds in 2022 (Phase I) 1,498,841,460.47 1,498,638,223.25
Total 2,996,918,980.27 2,996,099,571.86
financial liabilities such as preferred shares and perpetual bonds)
Monetary Unit: CNY
Bond Par Issuing Duratio Issuing Openin Issued Withdr Amorti Repayme Closing
name value date n amoun g in the awal of zation nt in the Balance
t Balanc current interes of reporting
e period t by premiu period
par m and
value deprec
iation
Corpor
ate
bonds 1,500, 16 1,494, 1,497, 25,890
in 000,00 March 5 000,00 461,34 ,410.9
(Phase 2020
I)
Corpor
ate 2
bonds 1,500, 1,498, 1,498, 21,199
Decem 203,23 1,498,841,460
in 000,00 3 800,00 638,22 ,315.0
(Phase 2022
I)
Total 800,00 099,57 ,726.0
Monetary Unit: CNY
Item Closing Balance Opening Balance
Lease payment 39,764,571.57 48,776,000.46
Less: unrecognized financing cost -4,358,177.64 -5,148,660.44
Lease liabilities due within one year -9,311,083.99 -14,530,370.36
Total 26,095,309.94 29,096,969.66
Monetary Unit: CNY
Increase in Decrease in
Item Opening Balance Closing Balance Reason
current period current period
Reception of
Government
grants
allocation
Total 33,704,323.80 364,559.08 4,594,828.14 29,474,054.74
Details:
Monetary Unit: CNY
Non-
Other Cost
Increase operating Related to
Liability Opening income in reduction Other Closing
in current income in assets/
Item Balance current in current changes Balance
period current income
period period
period
New
mode
applicatio
n project
of digital
workshop
for solid
state
baijiu
production
Constructi
on project
of cellar of
Luzhou 4,550,000. 700,000.0 3,850,000. Related to
Laojiao 00 0 00 assets
brewing
technical
renovation
Luzhou
Laojiao
automatic
wine
production
line
technical
renovation
project
Boiler
reconstruc
tion
project of
Luohan
Brewing
Base of
Luzhou
Laojiao
Brewing
wastewate
r
treatment
project
Improvem
ent and
technical
renovation
project of
Luzhou
Laojiao
production
supporting
Total
Monetary Unit: CNY
Increases/decreases in the current period (+, -)
Issuance Conversion
Opening Balance of Bonds of reserves Closing Balance
Others Subtotal
new share funds into
shares shares
Total
number of
shares
Note: 1. In February 2023, the registration of 92,669 shares of the Restricted Share Incentive Plan
granted by the Company for the third time was completed. So far, the total number of shares of the
Company changed to 1,471,987,769 shares.
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Share premium
(capital premium)
Other capital
reserves
Total 4,800,154,468.99 204,415,619.85 5,004,570,088.84
Note: 1. The increase of capital premium of the period is the premium payment received for the grant
of restricted shares.
be recognized in the period for the issuance of restricted shares.
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Perform the
repurchase
obligations under the
equity incentive
Total 639,021,998.78 8,290,724.74 30,569,112.93 616,743,610.59
Other statements, including notes to increase and decrease during the reporting period and the
reasons for changes:
The Company recognized restricted shares repurchase obligations in the current period, raising the
treasury stock by CNY 8,290,724.74; and the treasury stock was down by CNY 30,569,112.93 due to
the expected cash dividend of unlockable restricted shares.
Monetary Unit: CNY
Current Period
Less:
Less:
Previously
Previously
recognize Amount
Amount in recognize
d in other Amount attribute to
Opening current d in other Closing
Item comprehe Less: attribute to non-
Balance period comprehe Balance
nsive Income parent controlling
before nsive
income tax company sharehold
income income
transferre after tax ers after
tax transferre
d to tax
d to profit
retained
and loss
earnings
I. Other 366,978,5 - 16,215,65 - 128,864,2
comprehe 41.23 221,898,6 3.21 238,114,3 10.92
nsive 77.10 30.31
income
that will
not be
reclassifie
d into
profit and
loss
Other
comprehe
nsive
income
that will
not be 131,244.3 131,244.3 131,244.3
reclassifie 9 9 9
d into
profit and
loss under
equity
method
Fair value
changes
of other - -
equity 222,029,9 238,245,5
instrument 41.23 3.21 66.53
investmen
t
II. Other
comprehe
nsive
income - -
that will be 36,227,29 33,796,82
reclassifie 17 33 4
d into
profit and
loss
Including:
Other
comprehe
nsive
income - -
that will be 1,266,710. 1,266,710.
reclassifie 82 82
d into 0.65 9.83
profit and
loss under
equity
method
Difference
from
conversio
n of 2,557,445. 2,117,438. 1,163,755. 953,682.8 3,721,200.
financial
statement 26 35 51 4 77
s in
foreign
currency
- -
Total 218,514,5 235,683,8
Other statements, including the adjustment of the effective gain/loss on cash flow hedges to the initial
recognized amount:
Note: The closing balance decreased by CNY 235,683,863.98, down 71.26% compared with the
opening balance, which was mainly due to the decline in fair value of equity investments.
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Statutory surplus
reserves
Total 1,471,895,100.00 1,471,895,100.00
Monetary Unit: CNY
Item Current Period Previous Period
Undistributed profit before
adjustment at the end of the last year
Undistributed profit after adjustment
at the beginning of year
Plus: Net profit attributable to owners
of the parent company for the current 7,090,426,787.07 5,531,926,340.44
period
Ordinary share dividends payable 6,219,148,324.03 4,773,919,306.54
Plus: Other transfer in 16,215,653.21 15,626.84
Undistributed profits at the end of the
period
Note: 1. Other transfers were the disposal of other equity instrument investments in the current period,
which was due to the impact of transfers to retained earnings of relevant changes in fair value.
Monetary Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 14,369,036,994.33 1,591,479,349.36 11,549,327,272.44 1,595,591,564.86
Other business 224,014,779.81 108,783,756.32 115,050,280.50 46,718,985.75
Total 14,593,051,774.14 1,700,263,105.68 11,664,377,552.94 1,642,310,550.61
Details:
Monetary Unit: CNY
Contract category Liquor sales Total
Commodity type
Including:
Medium and high
grade liquor
Other liquor 1,520,899,556.91 1,520,899,556.91
By operating
segment
Including:
Domestic 14,434,112,172.13 14,434,112,172.13
Outbound 76,872,466.28 76,872,466.28
Market or customer
type
Including:
Contract type
Including:
Commodity sales
contract
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 14,510,984,638.41 14,510,984,638.41
Information on performance obligation:
N/A
Other statements
N/A
Monetary Unit: CNY
Item Current Period Previous Period
Consumption tax 1,203,032,837.64 759,217,972.85
Urban maintenance and construction
tax
Educational surcharge 80,502,780.15 56,558,689.68
Property tax 39,107,945.82 34,169,290.28
Land use tax 17,656,012.34 17,874,337.59
Stamp duty 12,043,066.53 8,264,059.53
Local education surcharge 53,668,728.47 37,706,254.75
Others 106,664.38 92,783.65
Total 1,593,958,974.95 1,045,859,768.74
Other statements:
Note: The current period increased by CNY 548,099,206.21, up 52.41% compared with the previous
period, which was mainly due to the increase in consumption tax for the current period.
Monetary Unit: CNY
Item Current Period Previous Period
Advertising promotion expense 585,741,219.56 691,914,456.49
Promotion expense 486,391,918.30 142,494,942.50
Employee compensation 210,781,737.74 204,443,388.51
Storage and logistics costs 95,488,340.44 63,874,054.36
Others 84,793,614.57 111,135,142.80
Total 1,463,196,830.61 1,213,861,984.66
Monetary Unit: CNY
Item Current Period Previous Period
Employee compensation 234,498,550.74 260,100,920.11
Depreciation and amortization 56,042,880.60 55,428,718.37
Management fee and service
expense
Others 221,732,574.25 211,913,289.15
Total 539,879,241.31 542,666,754.49
Monetary Unit: CNY
Item Current Period Previous Period
Comprehensive research and
development expenses
Total 62,914,698.99 74,487,055.16
Monetary Unit: CNY
Item Current Period Previous Period
Interest expenses 261,543,693.36 119,589,682.10
Less: Interest income 384,116,432.10 237,072,806.72
Losses from currency exchange -5,091,874.65 -10,795,717.36
Handling charges 1,233,960.31 913,004.25
Amortization of unrecognized
financing costs
Total -125,783,791.43 -126,988,421.10
Monetary Unit: CNY
Item Current Period Previous Period
Government grants 21,166,337.88 9,141,196.38
Other refund 2,229,602.28 1,603,531.79
Total 23,395,940.161 10,744,728.17
Note: 1. The current period increased by CNY 12,651,211.99, up 117.74% compared with previous
period, which was mainly due to the increase in government grants received in the current period.
Monetary Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under the equity 70,278,286.49 37,796,914.64
method
Investment income gained during the
period of holding held-for-trading 2,391,009.80 6,795,921.96
financial assets
Investment income from disposal of
held-for-trading financial assets
Dividend income gained during the
period of holding other equity 7,297,266.16 8,078,717.94
instrument investment
Total 85,024,194.55 57,499,481.86
Other statements:
Note: 1. There is no major restriction on the repatriation of the Company's investment income.
which was mainly due to the increase in profitability of the investee Huaxi Securities Co., Ltd.
Monetary Unit: CNY
Item Current Period Previous Period
Held-for-trading financial assets 32,781,678.421 5,862,846.29
Total 32,781,678.42 5,862,846.29
Note: 1. The current period increased by CNY 26,918,832.13 compared with previous period, which
was mainly due to the increase in fair value of held-for-trading financial assets in the current period.
Monetary Unit: CNY
Item Current Period Previous Period
Bad debt loss of other receivables 620,074.69 -581,432.64
Bad debt loss of accounts receivable -489,912.75 -2,831.34
Total 130,161.94 -584,263.98
Monetary Unit: CNY
Item Current Period Previous Period
Gains from disposal of non-current
-477,479.38 19,789,402.07
assets
Including: Gains from disposal of 223,832.22 2,588.69
fixed assets
Gains from disposal of intangible
-875,599.70 19,786,813.38
assets
Gains from disposal of use right
assets
Total -477,479.381 19,789,402.07
Note: 1. The current period decreased by CNY 20,266,881.45, down 102.41% compared with
previous period, which was mainly due to the decrease in gains from disposal of intangible assets in
the current period.
Monetary Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Compensation for default 2,393,459.62 3,384,765.95 2,393,459.62
Others 12,086,059.36 7,750,967.38 12,086,059.36
Total 14,479,518.98 11,135,733.33 14,479,518.98
Other statements:
Note: The current period increased by CNY 3,343,785.65, up 30.03% compared with previous period,
which was mainly due to receiving income from anti-counterfeiting claims.
Monetary Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Donation 4,171,120.00 1,500,000.00 4,171,120.00
Losses from damage
retirement of non-current 1,164,068.35 70,762.97 1,164,068.35
assets
Others 1,637,398.60 378,246.54 1,637,398.60
Total 6,972,586.95 1,949,009.51 6,972,586.95
Monetary Unit: CNY
Item Current Period Previous Period
Current period income tax 2,041,614,849.971 1,366,370,466.01
Deferred income tax 343,744,666.15 433,650,076.38
Total 2,385,359,516.12 1,800,020,542.39
Note: 1. The current period increased CNY 585,338,973.73 compared with previous period with an
increase by 32.52%, mainly due to the increase in profits with the increase in sales revenue of baijiu.
Monetary Unit: CNY
Item Current Period
Total profit 9,506,984,141.75
Income tax expenses determined by statutory/applicable
tax rate
Impact from subsidiaries’ different tax rates -250,901.57
Impact from adjust for impact from income tax expense in
-1,041,798.80
previous period
Impact from non-taxable income -19,393,285.57
Impact from non-deductible costs, expenses and losses 2,138,983.12
Impact from deductible loss of unrecognized deferred
-2,261,434.67
income tax assets in prior period
Impact from deductible temporary difference or losses
due to unrecognized deferred tax asset in current period
Income tax impact of expected pre-tax deductible
amounts of restricted shares in future periods that are 18,617,925.26
less than the recognized cost and expenses
Deduction of research and development costs -5,757,694.79
Income tax expense 2,385,359,516.12
Details in Note 7.33. Other comprehensive income.
Monetary Unit: CNY
Item Current Period Previous Period
Recovery of saving deposits
involving contract disputes
Government grants 16,936,068.82 5,906,207.21
Interest income from bank deposit 385,402,604.30 210,646,002.01
Others 56,582,439.60 69,159,079.77
Total 459,253,580.98 287,930,011.44
Monetary Unit: CNY
Item Current Period Previous Period
Cash paid for expenses 1,185,339,540.00 1,351,327,137.51
Total 1,185,339,540.00 1,351,327,137.51
Monetary Unit: CNY
Item Current Period Previous Period
Cash paid for rent of right-of-use
assets
Registration fee for equity incentive
stocks
Total 1,117,268.64 4,360,194.01
Monetary Unit: CNY
Item Current Period Previous Period
flow from operating activities:
Net profit 7,121,624,625.63 5,574,658,236.22
Plus: Provision for asset impairment -130,161.94 584,263.98
Depreciation of fixed asset, oil and
gas assets and productive biological 291,902,202.19 261,325,836.44
assets
Depreciation of right-of-use assets 5,971,160.71 7,440,461.35
Amortization of intangible assets 39,210,901.13 33,148,347.68
Amortization of long-term deferred
expense
Losses from disposal of fixed assets,
intangible assets and other long-term 477,479.38 -19,789,402.07
assets (Gains use “-”)
Losses from retirement of fixed
assets (Gains use “-”)
Losses from change in fair value
-32,781,678.42 -5,862,846.29
(Gains use “-”)
Financial expenses (Gains use “-”) -125,783,791.43 -126,988,421.10
Losses on investments (Gains use “-
-85,024,194.55 -57,499,481.86
”)
Decrease in deferred income tax
assets (Increase uses “-”)
Increase in deferred income tax
-6,554,217.73
liabilities (Decrease uses “-”)
Decrease in inventories (Increase
-953,413,761.15 -1,435,707,467.48
use “-”)
Decrease in operating receivables
(Increase use “-”)
Increase in operating payables
-2,750,972,245.43 -3,767,830,450.56
(Decrease use “-”)
Others
Net cash flows from operating
activities
activities not involving cash:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets under financing lease
equivalents:
Closing balance of cash 30,311,535,608.00 16,914,836,112.50
Less: Opening balance of cash 17,729,006,591.87 13,402,528,941.83
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net change in cash and cash
equivalents
Monetary Unit: CNY
Item Opening Balance Closing Balance
Including: Cash on hand 34,319.35 28,711.93
Unrestricted bank deposit 30,301,242,803.65 17,711,121,431.52
Other unrestricted cash and
cash equivalents
equivalents
Including: Cash and cash equivalent
with restriction to use of parent 32,939,930.131 28,521,619.38
company and subsidiaries
Note: 1. The cash and cash equivalent with restriction to use are CNY 32,939,930.13, of which, CNY
interest on an accrual basis and CNY 957,482.18 is the frozen fund by the court.
Monetary Unit: CNY
Item Closing book balance Reason for restriction
Provision for fixed deposit interest on
Cash and cash equivalents 21,982,447.95
an accrual basis
Cash and cash equivalents 10,000,000.00 Bank cash deposits for L/G
Cash and cash equivalents 957,482.18 Frozen fund by the court 1
Total 32,939,930.13
Note: 1. According to the civil ruling issued by People's Court of Dongchangfu District, Liaocheng City,
Shandong Province, a total of CNY 957,482.18 bank deposits of Boda Marketing Company, a
subsidiary of the Company, were frozen in accordance with laws for the case of contractual dispute.
On 4 August 2023, People's Court of Dongchangfu District, Liaocheng City, Shandong Province made
a ruling of first instance and rejected the claims of the plaintiff Liaocheng Shunkang Import and Export
Co., Ltd. The frozen fund has been released in August.
Monetary Unit: CNY
Closing Balance in Foreign
Item Exchange Rate Closing Balance in CNY
Currency
Cash at Bank and on Hand
Including: USD 33,841,630.75 7.2258 244,532,855.47
EUR 11,706.91 7.8771 92,216.50
HKD 2,121,252.23 0.9220 1,955,794.56
GBP 39.89 9.1432 364.72
AUD 2,367.12 4.7992 11,360.28
Accounts Receivable
Including: USD 191,311.93 7.2258 1,382,381.75
EUR
HKD 14,083,424.85 0.9220 12,984,917.71
Long-term Loans
Including: USD
EUR
HKD
Other Receivables
Including: HKD 31,660.81 0.9220 29,191.27
Accounts Payable
Including: USD 273,541.40 7.2258 1,976,555.45
HKD 707,457.29 0.9220 652,275.62
Other Payables
Including: HKD 17,821,977.82 0.9220 16,431,863.55
Non-current liabilities due
within one year
Including: USD 61,439.22 7.2258 443,947.54
HKD 2,891,683.10 0.9220 2,666,131.82
Lease liabilities
Including: USD 177,499.09 7.2258 1,282,572.96
HKD
entity, shall disclose its main foreign business place, bookkeeping standard currency and
selection basis, and shall also disclose the reason for the change of the bookkeeping
standard currency
? Applicable □ N/A
Bookkeeping
Company Operation site Choosing Reason
currency
Luzhou Laojiao International Development Currency in the registration
Hong Kong, China HKD
(Hong Kong) Co., Ltd. place
Luzhou Laojiao Commercial Development Currency in the registration
USA USD
(North America) Co., Ltd. place
Currency in the registration
Mingjiang Co., Ltd. USA USD
place
Monetary Unit: CNY
Amount included in profit or
Item Amount Presentation
loss of the current period
Related to assets 29,474,054.74 Deferred income 4,594,828.14
Related to income 16,571,509.74 Other income 16,571,509.74
Total 46,045,564.48 21,166,337.88
□Applicable ? N/A
Other statements:
There is no business combination not under common control during current period.
Other statements:
There is no business combination under common control during current period.
The basic information of the transaction, the basis of the transaction constitutes the reverse purchase,
whether the assets and liabilities retained by the listed company constitute the business and its basis,
the determination of the merger cost, and the adjustment of the equity amount and its calculation
according to the equity transaction:
There is no reverse purchase during current period.
Whether there is a situation of losing control after disposing the investment in the subsidiary only
once
□ Yes ?No
Whether there is a situation of disposing the investment in the subsidiary through several transactions
step by step and losing control during the period
□ Yes ?No
Explain other reasons for changing consolidated scope (such as establishing a new subsidiary,
liquidating a subsidiary) and its related situation:
There are no consolidated scope changes due to other reasons during current period.
Major Shareholding Proportion
Name of Place of Nature of Acquisition
business
Subsidiaries registration business Direct Indirect method
location
Luzhou
Baijiu
Laojiao
Luzhou Luzhou manufacture 100.00% Investment
Brewing Co.,
and sales
Ltd.
Luzhou Red
Business
Sorghum Agricultural
combination
Modern product
Luzhou Luzhou 60.00% under
Agricultural planting and
common
Development sales
control
Co., Ltd.
Luzhou
Laojiao Sales Luzhou Luzhou Baijiu sales 100.00% Investment
Co., Ltd.
Luzhou
Laojiao
Nostalgic
Luzhou Luzhou Baijiu sales 100.00% Investment
Liquor
Marketing
Co., Ltd.
Luzhou
Laojiao
Custom Luzhou Luzhou Baijiu sales 15.00% Investment
Liquor Co.,
Ltd. Note
Luzhou
Laojiao
Selected
Luzhou Luzhou Baijiu sales 100.00% Investment
Supply Chain
Management
Co., Ltd.
Guangxi
Luzhou
Laojiao Red wine
Imported Qinzhou Qinzhou production 100.00% Investment
Liquor and sales
Industry Co.,
Ltd.
Luzhou Dingli
Liquor
Luzhou Luzhou Baijiu sales 100.00% Investment
Industry Co.,
Ltd.
Luzhou Dingyi
Liquor
Luzhou Luzhou Baijiu sales 100.00% Investment
Industry Sales
Co., Ltd.
Luzhou
Laojiao New Luzhou Luzhou Baijiu sales 100.00% Investment
Liquor
Industry Co.,
Ltd.
Luzhou Wine import
Laojiao I & E Luzhou Luzhou and export 100.00% Investment
Co., Ltd. trade
Luzhou
Laojiao Boda
Liquor
Luzhou Luzhou Baijiu sales 75.00% Investment
Industry
Marketing
Co., Ltd.
Luzhou
Laojiao Fruit Fruit wine
Luzhou Luzhou 41.00% Investment
Wine Industry sales
Co., Ltd. Note
Mingjiang Co.,
America America Baijiu sales 54.00% Investment
Ltd.
Luzhou
Laojiao
International Food import
Hainan Hainan 100.00% Investment
Trade and export
(Hainan) Co.,
Ltd.
Luzhou
Technology
Pinchuang
Luzhou Luzhou development 100.00% Investment
Technology
and service
Co., Ltd.
Luzhou
Laojiao
International
Hong Kong Hong Kong Wine sales 55.00% Investment
Development
(Hong Kong)
Co., Ltd.
Luzhou
Laojiao
Commercial
Business
Development America America 55.00% Investment
development
(North
America) Co.,
Ltd.
Luzhou
Laojiao
Electronic Luzhou Luzhou Wine sales 90.00% Investment
Commerce
Co., Ltd.
Luzhou
Laojiao
Whitail Liquor Luzhou Luzhou Wine sales 31.50% Investment
Industry Co.,
Ltd. Note
Luzhou
Fermented
Baonuo
Luzhou Luzhou product 100.00% Investment
Biotechnology
manufacture
Co., Ltd.
Luzhou Business
Health care
Laojiao Health combination
wine
Liquor Luzhou Luzhou 100.00% under
manufacture
Industry common
and sales
Co.,Ltd. control
Luzhou Health care Business
Laojiao Health Luzhou Luzhou 100.00% combination
wine sales
Sales Co., under
Ltd. common
control
Luzhou
Laojiao New
Luzhou Luzhou Baijiu sales 40.00% 100.00% Investment
Retail Co.,
Ltd.
Luzhou
Laojiao Technology
Technology Chengdu Chengdu development 40.00% 100.00% Investment
Innovation and service
Co., Ltd.
Statement for that the proportion of share-holding is different from the proportion of voting rights:
Note: As the Note 3.6, the Company holds less than 51% shares of Luzhou Laojiao Custom Liquor
Co., Ltd., Luzhou Laojiao Fruit Liquor Industry Co., Ltd., and Luzhou Laojiao Whitail Liquor Industry
Co., Ltd. but in these companies’ board members, two thirds or more are dispatched by the Company.
The Company has substantial control over these companies, so they are included in the consolidation
scope.
Monetary Unit: CNY
Gains and losses
Proportion of share Dividends paid to
attributable to non- Closing balance of
holdings of non- non-controlling
Name of subsidiary Controlling non-controlling
Controlling shareholders during
shareholders during shareholders interest
shareholders current period
current period
Luzhou Laojiao Boda
Liquor Industry 25.00% 5,962,144.09 67,806,016.38
Marketing Co., Ltd.
Monetary Unit: CNY
Closing Balance Opening Balance
Name Non- Non-
of Non- Curre Non- Curre
Curre curren Total Curre curren Total
subsid curren Total nt curren Total nt
nt t liabiliti nt t liabiliti
iary t assets liabiliti t assets liabiliti
assets liabiliti es assets liabiliti es
assets es assets es
es es
Luzho
u
Laojia
o
Boda
Liquor
Indust
ry
Marke
ting
Co.,
Ltd.
Monetary Unit: CNY
Current Period Previous Period
Name of
subsidiary Operating Total Operating Operating Total Operating
Net profit Net profit
revenue comprehe cash flow revenue comprehe cash flow
nsive nsive
income income
Luzhou
Laojiao
Boda -
Liquor 4,572,218.
Industry 59
Marketing
Co., Ltd.
No such cases for the reporting period.
scope of consolidated financial statements
There is no structural entity incorporated into the scope of consolidated financial statements in the
reporting period.
Name of joint Major Shareholding proportion
Place of Business Accounting
venture/associ business
registration nature Direct Indirect Method
ates location
Important joint
ventures:
none
Important
associates:
Huaxi
Chengdu, Chengdu, Equity
Securities Securities 10.39%
Co., Ltd.
Sichuan Sichuan method1
Note: 1. The Company has the substantive decision-making power, so the Company still has
significant influence on Huaxi Securities.
Monetary Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Current assets 91,527,562,209.66 89,547,378,203.44
Non-current assets 5,780,617,417.09 8,199,779,781.47
Total assets 97,308,179,626.75 97,747,157,984.91
Current liabilities 55,374,217,751.79 54,767,331,978.36
Non-current liabilities 19,026,581,515.10 20,539,402,724.68
Total liabilities 74,400,799,266.89 75,306,734,703.04
Non-controlling shareholder interest 20,333,266.99 22,000,726.84
Shareholder interest attributable to
parent company
Share of net assets calculated based
on shareholding proportion
Adjusted
--Goodwill
--Unrealized profits of internal
transactions
--Others 167,466,735.90 167,466,735.90
Book value of equity investments in
associate companies
Fair value of equity investments in
associate companies that have public 2,267,226,806.64 2,054,418,514.32
quote
Operating revenue 2,021,251,360.10 1,749,801,559.42
Net profit 522,815,192.43 290,468,284.96
Net profit from discontinued
operation
Other comprehensive income 22,891,885.56 -77,784,068.34
Total comprehensive income 545,707,077.99 212,684,216.62
Dividends from associate companies
this year
companies
Monetary Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Joint ventures:
Total following items calculated on
the basis of shareholding proportion
Associate companies:
Total book value of investments 176,429,374.63 169,959,961.12
Total following items calculated on
the basis of shareholding proportion
--Net profit 2,204,555.93 -11,746,550.86
-- Total comprehensive income 2,204,555.93 -11,746,550.86
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co., Ltd., Sichuan Development Wine Investment Co., Ltd., Sichuan Tongniang Baijiu
Industry Technology Research Institute Co., Ltd. and CTS Luzhou Laojiao Cultural Tourism
Development Co., Ltd.
companies to transfer funds to the Company
None
Other statements
None
None
None
Statement for that the proportion of shareholdings or shares in common operation is different from the
proportion of voting rights:
None
Financial Statements
Statement for the structured entity excluded in the scope of consolidated financial statements:
None
The Company's primary financial instruments include monetary capital, trading financial assets,
accounts receivable, receivables financing, receivables other than tax refundable, other equity
instruments, bills payable, accounts payable, other payables, lease liabilities, some other current
liabilities and loans. A detailed description of each financial instrument is set out in Note V and notes to
the Consolidated Financial Statement.
Risks related to these financial instruments, and risk management policies the Company has adopted
to reduce these risks are described as follows. The Company management manages and monitors the
risk exposure to ensure the above risks are controlled in a limited scope.
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk variable
rarely changes in isolation, and the correlation between variables will have a significant effect on the
final impact amount of the change of a risk variable, the following content is based on the assumption
that the change of each variable is independent.
Risk management objective: The Company strikes an appropriate balance between risk and return, and
strives to minimize the negative impact of risk on the Company's operating performance and maximize
the interests of shareholders and other equity investors.
Risk management policy: The Board of Directors shall be responsible for planning and establishing a
risk management framework, formulating risk management policies and related guidelines, and
supervising the implementation of risk management measures. The Risk Management Committee shall
carry out risk management through close collaboration (including the identification, evaluation and
avoidance of relevant risks) with other business units of the Company in accordance with the policies
approved by the Board of Directors. The internal audit department shall conduct regular audits on risk
management controls and procedures and report the results to the Audit Committee.
The Company has formulated risk management policies to identify and analyze the risks it faces,
clarifying specific risks and covering many aspects such as credit risk, liquidity risk and market risk
management. On a regular basis, the Company evaluates the specific marketing environment and
various changes in the Company's business operations to determine whether any risk management
policy and system should be updated. The Company diversifies the risks to financial instruments
through appropriately diversified investments and business portfolios, and reduces the risk of
concentration in any single industry, specific geographic area or specific counterparty by formulating
appropriate risk management policies.
Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations,
causing financial losses to the other party. The Company only trades with recognized, reputable, and
large third parties. In accordance with the Company's policy, the terms of sale with customers are
based on transactions of payment before delivery, with only a small amount of credit transactions, and
credit review for all customers who require credit to trade. In addition, the Company continuously
monitors and controls the balance of the receivables to ensure that the Company does not face
significant bad debt risks. In addition, the Company makes full provision for expected credit losses at
each balance sheet date based on the collection of receivables. Therefore, the Company's
management believes that the Company's credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of working
capital is low.
The Company's risk exposures are spread across multiple contract parties and customers in multiple
geographies, with customers in the commerce industry in addition to the alcohol distribution industry
(the main industry). No systemic risk has been identified in the relevant industries. Therefore, the
Company has no significant credit concentration risk. As at 30 June 2023, the balance of the top five
customers of the Company's accounts receivable amounted to CNY 15,158,800, accounting for 97.58%
of the balance of the Company's accounts receivable.
Liquidity risk refers to the risk unable to obtain sufficient funds in time to meet business development
needs or to repay debts due and other payment obligations. The Company has sufficient working
capital. The liquidity risk is extremely small. The Company's objective is to use a variety of financing
instruments such as bank clearing and bank loans to maintain a balance between financing
sustainability and flexibility. As at 30 June 2023, the Company has been able to meet its own continuing
operation requirements through the use of cash flow from operations.
The analysis of the financial liabilities held by the Company based on the maturity period of the
undiscounted remaining contractual obligations is as follows:
Closing Balance
Item Contract
Book value amount not Within 1 year 1-2 years 2-3 years Over 3 years
discounted
Notes
payable
Accounts
payable
Other
payable
Non-
current
liabilities
due
within
one year
Other
current 251,369,372.14 251,369,372.14 251,369,372.14
liabilities
Long-
term 9,515,100,000.00 9,515,100,000.00 24,800,000.00 8,260,300,000.00 1,230,000,000.00
loans
Bonds
payable
Lease
liabilities
Subtotal 16,210,428,684.63 16,217,867,882.00 3,672,314,394.42 1,530,497,572.62 9,765,495,257.74 1,249,560,657.22
The foreign exchange risk refers to the risk of loss due to exchange rate changes. Apart from the three
subsidiaries of the Company which make purchases and sales in USD and HKD, the other major
business activities are denominated and settled in CNY. The Company closely monitors the impact of
exchange rate movements on the Company's foreign exchange risk. As at 30 June 2023, the
Company's assets and liabilities are mainly in CNY balance. The Company's management considers
the impact of changes in foreign exchange risk on the Company's financial statements to be minimal.
The Company's interest rate risk mainly arises from the borrowings. Financial liabilities based on the
floating interest rate will cause the cash flow interest rate risk to the Company, and financial liabilities
based on the fixed interest rate the fair value interest rate risk. The Company will determine the
corresponding proportion between the contracts with fixed interest rate and those with floating interest
rate in combination with current market condition.
Other price risk refers to the risk of fluctuation caused by market price changes other than foreign
exchange risk and interest rate risk, whether these changes are caused by factors related to a single
financial instrument or its issuer or all similar financial instruments traded in the market. Other price
risks faced by the Company mainly come from investments in other equity instruments measured at
fair value.
Monetary Unit: CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
measurement at fair -- -- -- --
value
financial assets
assets measured at
fair value with their
changes included
into current
profits/losses
management 200,056,716.13 200,056,716.13
products
other equity 410,956,596.98 34,458,125.87 445,414,722.85
instruments
receivable financing
Total assets
continuously
measured at fair
value
measurement at fair -- -- -- --
value
discontinuously within Level 1 of the fair value hierarchy
The listed companies in mainland China determine the fair value of other equity instrument investment
according to the closing price on the last trading day of Shenzhen Stock Exchange or Shanghai Stock
Exchange at the period-end. The companies listed in Hong Kong determine the fair value of other
equity instrument investment according to the closing price of Hong Kong Dollar on the last trading day
of Hong Kong Stock Exchange at the period-end and the median price of CNY exchange rate disclosed
on the same day by China Foreign Exchange Trade System.
important parameters for continuously and discontinuously within Level 2 of the fair
value hierarchy
None
important parameters for continuously and discontinuously within Level 3 of the fair
value hierarchy
Trading financial assets are wealth management products of the collective asset management plan and
are measured at fair value based on the amount calculated on the basis of the net unit value of the
underlying assets as published on the official website of the asset manager.
Accounts receivable financing: As the timing and price of bills discounted may not be reliably estimated
due to the short maturity of the bills all being less than one year and the endorsement of the negotiable
bills being valued at book value, the Company measures the bills receivable at their book value as a
reasonable estimate of fair value.
Other equity instrument investment: Due to no significant changes in business environment, business
condition and financial situation of invested companies, the Company shall measure the fair value
according to the lower one between investment cost and the share of net assets enjoyed by invested
companies on the base date as the reasonable estimation.
beginning carrying value and the ending carrying value and sensitivity analysis on
unobservable parameters
None
conversion happens if conversion happens among continuous fair value
measurement items at different level
None
changes
None
None
Shareholding Voting rights
Registration
Parent company Business nature Registered capital proportion by proportion by the
place
the parent parent company
company
Investment and
Luzhou Laojiao
Luzhou, Sichuan asset 2,798,818,800.00 25.89% 50.75%
Group Co., Ltd.
management
Statements for situation of parent company:
Note: The reason for the inconsistency between the shareholding proportion and voting rights
proportion by the parent company is that on 27 May 2021, Laojiao Group and XingLu Investment
Group, the second biggest shareholder, renewed the concerted action agreement which is valid as of
business development and make decisions by shareholders meeting and board of directors according
to the company law and other relevant laws and regulations and the articles of association, the
parties should adopt the consistent actions. During the effective period of this agreement, before any
party submits proposals involving the major issues of the Company's business development to the
shareholders meeting or exercise the voting rights at the shareholders meeting and the board of
directors, the internal coordination for relevant proposals and voting events shall be conducted by
persons acting in concert. If there are different opinions, it will be subject to Laojiao Group’s opinion.
The nature of parent company: Limited liability company (state-owned); Registration place: Ai
Rentang Square, China Baijiu Golden Triangle Liquor Industry Park, Luzhou, Sichuan Province;
Business Scope: General project: Social economy consulting services; business management
consulting; financial consulting; business headquarters management; import and export agency; trade
brokerage; crops planting services; trees planting operation; elder care services; tourism
development project planning and consulting; technical agency services; engineering and
technological research and experimental development; display device manufacturing; supply chain
management services; technical services, technical development, technical consulting, technical
communication, technical transfer, and technical promotion; domestic freight transport agency; and
equity fund-invested asset management services. It shall also include licensed projects (business
activities can be carried out legally and independently with business license in addition to projects
that must be approved by law): Agency bookkeeping; career intermediary activities; food production;
food sales; medical services, passenger ticket agent and business agency service. (business
activities that require approval in accordance with laws can be carried out upon approval of relevant
authorities, and the specific business projects shall be subject to the approval document or license of
relevant departments)
The final control party of the Company is SASAC of Luzhou.
For details please see Note 9.1. Interests in subsidiaries.
For details please see Note 9.3. Interests in joint ventures and associates.
Name of Other Related Party Relationship with the Company
Luzhou Jiachuang Wine Supply Chain Management Co.,
The same parent company
Ltd.
Luzhou Laojiao Zhitong Trading Co., Ltd. The same parent company
Sichuan Hongxin Financing Guarantee Co., Ltd. The same parent company
Sichuan Lianzhong Supply Chain Service Co., Ltd. The same parent company
New Shottes Brook Private Company The same parent company
Guangzhou Zhongying Gongyuan Energy Saving
Sub-subsidiary of parent company
Technology Co., Ltd.
Sichuan Yukun Logistics Co., Ltd. Sub-subsidiary of parent company
Sichuan Kangrun Group Construction and Installation
Sub-subsidiary of parent company
Engineering Co., Ltd.
Luzhou Qingxigu Scenic Area Management Co., Ltd. Sub-subsidiary of parent company
Luzhou Yuanhai Lianzhong Supply Chain Co., Ltd. Sub-subsidiary of parent company
Luzhou Sanrenxuan Liquor Industry Co., Ltd. Joint venture of parent company
CTS Luzhou Laojiao Cultural Tourism Development Co.,
Joint venture
Ltd.
Luzhou XingLu Water (Group) Co., Ltd. Subsidiary of the second largest shareholder
Luzhou China Resources Xinglu Gas Co., Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Property Management Co., Ltd. Subsidiary of the second largest shareholder
Sichuan Meihe Winery Industry Co.,Ltd. Minority shareholder of the subsidiary Fruit Wine Industry
Luzhou Public Transport Group Co., Ltd. Subsidiary of the second largest shareholder
Other subsidiaries of Luzhou XingLu Investment Group
Other subsidiary of the second largest shareholder
Co., Ltd.
Other subsidiaries of Luzhou Laojiao Group Co., Ltd. Other subsidiary of parent company
Other statements:
Note: As the Note 10.1, the Company will disclose the transactions with XingLu Investment Group
and its controlling enterprises as other related parties of the Company.
services
Table of purchase of goods / receipt of services
Monetary Unit: CNY
Whether over
Name of Related Amount in Approved trading Amount in
Transaction approved trading
Party current period amount previous period
amount
Receipt of
services:
Luzhou XingLu
Investment Property service,
Group Co., Ltd. advertising 13,051,954.87 11,777,837.70
and its other service, etc.
subsidiaries
Training,
accommodation,
Laojiao Group
warehousing,
and its other 24,310,894.35 10,038,101.46
transportation
subsidiaries
services and
property costs,
etc.
CTS Luzhou
Laojiao Cultural Conference fees,
Tourism travel service 4,694,551.04 43,818.00
Development fee, etc.
Co., Ltd.
Purchase of
goods:
Laojiao Group Raw materials,
and its other water, power, 92,192,358.30 15,407,103.04
subsidiaries etc.
Luzhou XingLu
Investment
Group Co., Ltd. Gas, water 7,936,512.69 6,281,248.54
and its other
subsidiaries
Total 142,186,271.25 43,548,108.74
Table of sales of goods and rendering of service
Monetary Unit: CNY
Name of Related Party Transaction Amount in current period Amount in previous period
Sales of goods:
Laojiao Group and its
Wine, water, power, etc. 25,081,222.00 52,806.72
subsidiaries
Luzhou Sanrenxuan Liquor
Wine 1,572,136.80 32,528,587.08
Industry Co., Ltd.
CTS Luzhou Laojiao
Cultural Tourism Wine 36,413,711.34 30,708,670.79
Development Co., Ltd.
Total 63,067,070.14 63,290,064.59
The Company as lessor:
Monetary Unit: CNY
Leasing income recognized Leasing income recognized
Name of lessee Type of leased asset
during current period during previous period
Laojiao Group and its
House lease 1,070,040.00 1,111,300.02
subsidiaries
Total 1,070,040.00 1,111,300.02
The Company as lessee:
Monetary Unit: CNY
Rental expenses Variable lease
of short-term payments not
Income expense
lease simplified included in the Increased use
Paid rent of lease liabilities
Type treated and low- measurement of right assets
undertaken
Name value asset lease lease liabilities (if
of
of (if applicable) applicable)
lessor assets Amoun Amoun Amoun Amoun Amoun
Amoun Amoun Amoun Amoun Amoun
leased t in t in t in t in t in
t in t in t in t in t in
previo previo previo previo previo
current current current current current
us us us us us
period period period period period
period period period period period
Laojiao House 446,32
Group lease 8.00
and its
subsidi
aries
Total
Monetary Unit: CNY
Item Amount in current period Amount in previous period
Key management 3,760,964.30 3,813,084.72
Monetary Unit: CNY
Closing Balance Opening Balance
Item Related party Provision for bad Provision for bad
Book value Book value
debt debt
CTS Luzhou
Laojiao Cultural
Accounts
Tourism 14,000.00 700.00
receivable
Development
Co., Ltd.
CTS Luzhou
Laojiao Cultural
Prepayment Tourism 2,379.50 2,379.50
Development
Co., Ltd.
Luzhou Laojiao
Prepayment 3,528,831.55
Group Co., Ltd.
Luzhou China
Resources
Prepayment 31,289.09
Xinglu Gas Co.,
Ltd.
Luzhou XingLu
Prepayment Water (Group) 807,625.52
Co., Ltd.
Luzhou Public
Prepayment Transport Group 258,393.78
Co., Ltd.
Sichuan Meihe
Prepayment Winery Industry 2,961,479.50 2,961,479.50
Co.,Ltd.
CTS Luzhou
Laojiao Cultural
Other
Tourism 70,025.33 3,501.27 5,111,743.43 780,587.17
receivables
Development
Co., Ltd.
Other Luzhou Laojiao
receivables Group Co., Ltd.
Monetary Unit: CNY
Item Related party Closing Balance Opening Balance
Sichuan Lianzhong Supply
Accounts payable 16,498,808.48 6,993,503.13
Chain Service Co., Ltd.
Luzhou Public Transport
Accounts payable 469,479.45
Group Co., Ltd.
CTS Luzhou Laojiao
Accounts payable Cultural Tourism 168,775.00
Development Co., Ltd.
Contractual liabilities (tax Luzhou Sanrenxuan Liquor
inclusive) Industry Co., Ltd.
Contractual liabilities (tax Sichuan Lianzhong Supply
inclusive) Chain Service Co., Ltd.
Luzhou Jiachuang Wine
Contractual liabilities (tax
Supply Chain Management 5,109,850.00 4,525,508.00
inclusive)
Co., Ltd.
CTS Luzhou Laojiao
Contractual liabilities (tax
Cultural Tourism 4,295,273.48 6,070,341.82
inclusive)
Development Co., Ltd.
Luzhou Laojiao Qingxigu
Contractual liabilities (tax
Cultural Tourism 3,861,920.00
inclusive)
Investment Co., Ltd.
Contractual liabilities (tax Sichuan Zhitong Data
inclusive) Information Co., Ltd.
Contractual liabilities (tax Yuanquan Cultural Tourism
inclusive) Co., Ltd.
Luzhou Jiachuang Wine
Other payables Supply Chain Management 360,000.00
Co., Ltd.
Luzhou Sanrenxuan Liquor
Other payables 150,000.00 150,000.00
Industry Co., Ltd.
Sichuan Lianzhong Supply
Other payables 36,790,948.00 17,633,148.00
Chain Service Co., Ltd.
Luzhou Laojiao Group Co.,
Other payables 80,000.00
Ltd.
Guangzhou Zhongying
Other payables Gongyuan Energy Saving 140,444.35
Technology Co., Ltd.
CTS Luzhou Laojiao
Other payables Cultural Tourism 1,050,000.00 750,000.00
Development Co., Ltd.
Luzhou Xinglu Property
Other payables 154,920.20
Management Co., Ltd.
None
? Applicable □ N/A
Monetary Unit: CNY
Total equity instruments granted by the Company in the
reporting period
Total equity instruments exercised by the Company in the
reporting period
Total equity instruments of the Company expired in the
reporting period
Scope of the exercise price of outstanding stock options
of the Company at the end of the reporting period and N/A
remaining contract term
Scope of the exercise price of other outstanding equity
instruments of the Company at the end of the reporting N/A
period and remaining contract term
Other statements
The Company granted 92,669 shares of the Restricted Share Incentive Plan for the third time in
December 2022 and completed the registration in February 2023.
? Applicable □ N/A
Monetary Unit: CNY
Method of determining the fair value of equity instruments The closing price of restricted stocks on the grant date
on the grant date deducted the grant price thereof
Basis to determine number of equity instrument that can Making the best estimate based on the latest number of
be exercised persons who can exercise rights
Reason for remarkable difference between the estimate
of the current period and that of previous period N/A
Total amount of equity-settled share-based payments
included into capital reserves
Total costs of recognizing equity-settled share-based
payments in the current period
□ Applicable ? N/A
None
Significant commitments at the balance sheet date
None
On 15 October 2014 and 10 January 2015, the Company disclosed three saving deposits involving
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch, Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank, with a total amount of
CNY 500 million. The public security organization has investigated, and the investigation of related
cases and the preservation of assets are under way. The Company has initiated a civil procedure to
recover the loss from the responsible unit. As of the period-end, the Company has recovered the
abovementioned saving deposits involving contract disputes with CNY 371,283,000.
Except for the above matters, the Company has no other significant contingencies that need to be
disclosed as the end of 30 June 2023.
to disclose
There was no significant contingency in the Company to disclose.
In accordance with resolutions of shareholders’ meeting,
a cash dividend of CNY 42.25 (tax inclusive) will be
Profit distribution plan
distributed for every 10 existing shares held, which has
been carried out on 28 August 2023.
There are no important sales returning after balance sheet date.
None
The Company carried out the enterprise annuity payment work normally during the reporting period.
The enterprise annuity funds are paid by both the Company and employees. The Company's
contribution shall not exceed 8% of the Company's total salary in the previous year as stipulated by the
state, and the individual contribution shall be withheld by the Company according to 1% of total salary
of the employee in the previous year.
Except for the business on wine sales, the Company does not operate other businesses that have a
significant impact on operation results. In addition, the Company operates mainly from China and
main assets also located in China, so the Company does not need to disclose segment data.
Saving deposits involving contract disputes: As stated in Note 12.2, three saving deposits involved
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch, Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank, with a total amount of
CNY 500 million. At present, the investigation of related cases and the preservation of assets have
been under way. The Company has initiated a civil procedure to recover the loss from the responsible
unit.
Taking into account the current amount of assets preserved by the public security authorities and the
contents of the professional legal opinion issued by Beijing Weiheng (Chengdu) Law Firm on 24
February 2023 that “given that since the issuance of the previous legal opinion, a few recovery has
been achieved through the criminal and civil execution, totalling CNY 371 million. At the same time, it
is suggested that the total amount of bad debt provision for the three aforementioned places remain
CNY 120 million”, the Company has made a bad debt provision of CNY 120 million for savings
deposit involved in contractual disputes as of the end of the period, and the amount of the bad debt
provision may be adjusted in the future based on the litigation process and recovery.
Except for the above matters, the Company has no other significant events that can affect investors’
decision that need to be disclosed as of 30 June 2023.
company (all currency unit is CNY, except other statements)
Monetary Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Type Book balance Book balance
debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Includin
g:
Account
s
receiva
bles
tested 271,333 100.00 3,200.0 268,133 50,000. 100.00 2,500.0 47,500.
for .64 % 0 .64 00 % 0 00
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
bles
tested
for
impairm
ent on 1.18% 5.00%
the .64 % 0 .64 00 % 0 00
portfolio
with
charact
eristics
of credit
risk
Total 1.18% 5.00%
.64 % 0 .64 00 % 0 00
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable.
? Applicable □N/A
Accounts receivables tested for impairment by the portfolio:
Closing Balance
Item
Book balance Provision for bad debt Proportion
Risk portfolio 64,000.08 3,200.00 5.00%
Other
portfolios
Total 271,333.64 3,200.00 1.18%
Disclosure by aging
Monetary Unit: CNY
Aging Book balance
Within 1 year (including 1 year) 271,333.64
Total 271,333.64
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening Closing
Type Reversal or
Balance Allowance Write-off Other Balance
recovery
Accounts
receivables
tested for 2,500.00 700.00 3,200.00
impairment by
the portfolio
Total 2,500.00 700.00 3,200.001
Note: 1. There is no accounts receivable reversed or recovered with significant amount during the
reporting period.
Monetary Unit: CNY
Proportion to total closing
Closing Balance of
Company Name Closing Balance balance of accounts
provision for bad debt
receivable
Luzhou Laojiao Custom
Liquor Co., Ltd.
CTS Luzhou Laojiao
Cultural Tourism 14,000.00 5.16% 700.00
Development Co., Ltd.
One-time sporadic
customers
Total 271,333.64 100.00%
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividends receivable 15,482,200.48
Other receivables 14,206,680,354.74 12,042,401,844.84
Total 14,222,162,555.22 12,042,401,844.84
Monetary Unit: CNY
Item Closing Balance Opening Balance
Guotai Junan Securities Co., Ltd. 6,241,808.41
Huaxi Securities Co., Ltd. 8,184,934.32
North Chemical Industries Co.,Ltd. 78,177.75
China Tourism Group Duty Free
Corporation Limited
Total 15,482,200.48
Monetary Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds of subsidiaries
receivable
Intercourse funds and others 3,074,745.95 11,257,616.61
Saving deposits involving contract
disputes
Total 14,326,898,274.63 12,163,550,573.43
Note: 1. The saving deposits involving contract disputes refer to three deposits amounting to CNY
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
contract disputes and have thus been transferred into “other receivables”. As of 30 June 2023, the
closing balance of that fund was CNY 128,717,028.72.
Monetary Unit: CNY
First stage Second stage Third stage
Provision for bad Expected loss in the
Expected credit loss Expected loss in the Total
debt duration (credit
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of 1 January
Balance of 1 January
period
Recovery 930,808.70 930,808.70
Balance of 30 June
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable ? N/A
Disclosure by aging
Monetary Unit: CNY
Aging Closing balance
Within 1 year (including 1 year) 14,198,050,594.15
Over 3 years 128,789,828.72
Over 5 years 128,767,028.72
Total 14,326,898,274.63
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Type Opening Balance Allowanc Reversal or Closing Balance
Write-off Other
e recovery
Other
receivables
tested for 120,000,000.00 120,000,000.00
impairment
individually
Other
receivables
tested for 1,148,728.59 930,808.70 217,919.89
impairment by
the portfolio
Total 121,148,728.59 930,808.70 120,217,919.89
Monetary Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Luzhou Laojiao Internal
Brewing Co., Ltd. transactions
Luzhou Dingyi
Internal
Liquor Industry 541,438,112.66 Within 1 year 3.78%
transactions
Sales Co., Ltd.
Luzhou Laojiao
Electronic Internal
Commerce Co., transactions
Ltd.
Agricultural Bank
of China
Changsha
Yingxin Sub-
branch, Industrial Saving deposits
and Commercial involving 128,717,028.72 Over 5 years 0.90% 120,000,000.00
Bank of China contract disputes
Nanyang
Zhongzhou Sub-
branch and
another bank.
Luzhou Laojiao Internal
Import and transactions
Export Trade
Co., Ltd.
Total 14,259,313,600.38 99.53% 120,000,000.00
Monetary Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 3,725,838,104 3,725,838,104 3,611,563,148 3,611,563,148
subsidiary .37 .37 .96 .96
Investment in
associates 2,718,562,474 2,715,995,375 2,669,970,043 2,667,402,944
and joint .44 .64 .71 .91
venture
Total 2,567,098.80 2,567,098.80
.81 .01 .67 .87
Monetary Unit: CNY
Opening Changes in current period Closing Closing
Balance Provision Balance balance of
Investee
(book Increase Decrease for Other (book provision for
value) impairment value) impairment
Luzhou
Pinchuang 76,953,725. 9,309,400.9 86,263,126.
Technology 32 8 30
Co., Ltd.
Luzhou
Laojiao 205,765,05 46,077,237. 251,842,29
Sales Co., 5.56 40 2.96
Ltd.
Luzhou
Laojiao 3,234,179,2 30,451,978. 3,264,631,2
Brewing 28.31 18 06.49
Co., Ltd.
Luzhou
Laojiao
Internationa
l 9,023,636.9 1,926,237.7 10,949,874.
Developme 6 8 74
nt (Hong
Kong) Co.,
Ltd.
Luzhou
Laojiao
Electronic 535,408.14
Commerce 34 48
Co., Ltd.
Luzhou
Baonuo 20,000,000. 20,000,000.
Biotechnolo 00 00
gy Co., Ltd.
Luzhou 5,693,115.4 2,344,366.2 8,037,481.7
Laojiao 7 5 2
Health
Liquor
Industry
Co., Ltd.
Note
Luzhou
Laojiao 20,000,000. 3,630,326.6 23,630,326.
New Retail 00 8 68
Co., Ltd.
Total
Note: 1. The other increase in the current period is due to the Company's restricted share incentive
business, where the parent company (the settlement enterprise) is an investor in the recipient
subsidiary (the service enterprise) and is recognized as a long-term equity investment in the
subsidiary (the recipient service enterprise) based on the fair value of the equity instruments at the
date of grant, and the capital reserve (other capital reserves) is recognized at the same time.
Monetary Unit: CNY
Changes in current period
Closin
Openin Gain Adjust Closin g
g or loss ments Cash g Balanc
Investe Balanc recogn of Chang divided Provisi Balanc e of
e e Increa Decrea ized other es in or on for e provisi
Other
(book se se under compr other profit impair (book on for
value) equity ehensi equity declar ment value) impair
metho ve ed ment
d income
Huaxi
Securit 2,497, 54,493 2,545,
ies 540,59 ,747.5 247,36
Co., 955.21 934.32 098.80
Ltd.
Luzho
u
Laojiao
Postdo
ctoral
Workst 40,185 - 39,686
ation ,894.7 499,83 ,064.5
Techno 7 0.20 7
logy
Innova
tion
Co.,
Ltd.
Sichua
n
Develo
pment
Wine
Invest 654.24 39 813.63
ment
Co.,
Ltd.
CTS 123,78 1,380, 125,16
Luzho 6,803. 333.08 7,136.
u 85 93
Laojiao
Cultura
l
Touris
m
Develo
pment
Co.,
Ltd.
Subtot 1,397, 8,184, 2,567,
al 955.21 934.32 098.80
Total 402,94 ,409.8 995,37
Monetary Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 3,999,775,395.42 3,041,281,547.34 2,054,885,320.69 1,385,149,822.80
Other business 14,764,932.60 973,400.78 12,163,668.37 537,627.72
Total 4,014,540,328.02 3,042,254,948.12 2,067,048,989.06 1,385,687,450.52
Details:
Monetary Unit: CNY
Contract category Liquor sales Total
Commodity type
Including:
Medium and high
grade liquor
Other liquor 9,098,015.12 9,098,015.12
By operating
segment
Including:
Domestic 3,999,775,395.42 3,999,775,395.42
Outbound
Market or customer
type
Including:
Contract type
Including:
Commodity sales
contract
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 3,999,775,395.42 3,999,775,395.42
Information on performance obligation:
None
Other statements:
None
Monetary Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under cost 7,530,591.92
method
Investment income from long-term
equity investments under equity 55,379,409.841 25,579,283.02
method
Investment income gained during the
period of holding held-for-trading 2,391,009.80 6,795,921.96
financial assets
Investment income from disposal of
held-for-trading financial assets
Dividends income gained during the
period of holding other equity 7,297,266.16 8,078,717.94
instrument investment
Total 69,703,790.61 52,812,442.16
Note: 1. There is no major restriction on the repatriation of the Company's investment income.
for gain, - for loss)
? Applicable □ N/A
Monetary Unit: CNY
Item Amount Note
Gains or losses on disposal non-
current assets (including the write-off -477,479.38 For details please see Note 7.46
portion of the impairment provision)
Government grants included into
current profits and losses (other than
government grants closely related to For details please see Note 7.42 and
enterprise business and granted by Note 7.47
quota or quantity according to
national unified standard)
Gain or loss on fair-value changes on For details please see Note 7.43 and
held-for-trading financial assets and 37,839,310.52
Note 7.44
liabilities & income from disposal of
held-for-trading financial assets and
liabilities and available-for-sale
financial assets (exclusive of the
effective portion of hedges that arise
in the Company’s ordinary course of
business)
Other non-operating income and For details please see Note 7.47 and
costs other than above items Note 7.48
Less: Impact from income tax 16,427,670.44
Impact from non-controlling
shareholders’ equity
Total 49,488,211.44 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable ? N/A
No such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities
to the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.
□ Applicable ? N/A
Profit during reporting EPS (CNY/Share)
Weighted average ROE
period Basic EPS Diluted EPS
Net profits attributable to
common shareholders of 18.79% 4.82 4.82
the Company
Net profits attributable to
common shareholders of
the Company before non-
recurring gains and losses
accounting standards
international and Chinese accounting standards
□ Applicable ? N/A
overseas and Chinese accounting standards
□ Applicable ? N/A
overseas accounting standards; for any adjustment made to the difference existing in the data
audited by the foreign auditing agent, such foreign auditing agent’s name shall be clearly
stated
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