Wuliangye Yibin Co., Ltd.
Annual Report 2023
Chairman of the Board: Zeng Congqin
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part I Important Notes, Table of Contents and Definitions
directors, supervisors and senior management of Wuliangye Yibin Co., Ltd. (hereinafter referred
to as the “Company”) hereby guarantee that the contents of this Report are true, accurate and
complete and free of any misrepresentations, misleading statements or material omissions, and
collectively and individually accept legal responsibility for such contents.
Financial Officer, and Liu Hongxu, head of the Company’s accounting department, hereby
guarantee that the financial statements carried in this Report are true, accurate and complete.
Eight of them were present at the meeting in person while Mr. Xiao Hao voted by way of
telecommunication for he was unable to be present due to work reasons.
in this Report shall not be considered as promises to investors for the reason of their uncertainty.
Investors are kindly advised to invest wisely. The Company has disclosed in this Report the
possible risks. And investors are reminded to exercise caution when making investment decisions.
per 10 shares to shareholders based on the total 3,881,608,005 shares held by them, with no bonus
issue from either profit or capital reserves.
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Table of Contents
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Documents Available for Reference
The following documents are available for shareholders at the relevant department of the
Company:
the Chief Financial Officer, and the head of the accounting department.
firm, as well as signed and stamped by the relevant certified public accountants.
China Securities Journal, Shanghai Securities News and Securities Times during the Reporting
Period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Definitions
Term refers to Definitions
The “Company”, “Wuliangye”,
refers to Wuliangye Yibin Co., Ltd.
“WLY”, or “we”
The State-owned Assets Supervision and
SASAC Yibin refers to Administration Commission of the People’s Government
of Yibin City
Yibin Development Group refers to Yibin Development Holding Group Co., Ltd.
Wuliangye Group refers to Sichuan Yibin Wuliangye Group Co., Ltd.
Wuliang NongXiang refers to Sichuan Wuliangye NongXiang Baijiu Co., Ltd.
Push Group refers to Sichuan Yibin Push Group Co., Ltd.
Global Group refers to Sichuan Yibin Global Group Co., Ltd.
Anji Logistic Group refers to Anji Logistic Group Co., Ltd. Sichuan
Wuliangye Group Finance refers to Sichuan Yibin Wuliangye Group Finance Co., Ltd.
Creart refers to Yibin Wuliangye Creart Co., Ltd.
Sichuan Wuliangye Cultural Tourism Development
Wuliangye Cultural Tourism refers to
Co., Ltd.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Wuliangye Stock code 000858
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 宜宾五粮液股份有限公司
Abbr. 五粮液
Company name in English (if
WULIANGYE YIBIN CO.,LTD.
any)
Abbr. (if any) WLY
Legal representative Zeng Congqin
Registered address 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China
Zip code 644007
Past changes of registered
N/A
address
Office address 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China
Zip code 644007
Company website http://www.wuliangye.com.cn
Email address 000858-wly@sohu.com
II Contact Information
Board Secretary Securities Representative
Name Zhang Xin Huang Hui
Office address
Yibin City, Sichuan Province, China Yibin City, Sichuan Province, China
Tel. （0831）3567000 （0831）3567000
Fax （0831）3555958 （0831）3555958
Email address 000858-wly@sohu.com 000858-wly@sohu.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report
The website of the Shenzhen Stock Exchange (www.szse.cn)
is disclosed
Media and website where this Report is China Securities Journal, Shanghai Securities News, Securities Times, and
disclosed http://www.cninfo.com.cn
Place where this Report is lodged The Company’s Board Office
IV Change to Company Registered Information
Unified social credit code 91511500MA62A0WM8P
Changes to the principal activities of the Company
No change during the Reporting Period
since its listing (if any)
Every change of controlling shareholder since
No change during the Reporting Period
incorporation (if any)
V Other Information
The independent auditor appointed by the Company:
Name of the independent auditor Sichuan Huaxin (Group) CPA (LLP)
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Office address 28/F, South Jinmaolidu, 18 Ximianqiao Street, Chengdu City, Sichuan Province, China
Accountants writing signatures Li Wulin, Ye Juan, and Luo Guiqiu
The independent sponsor appointed by the Company to exercise constant supervision over the Company in
the Reporting Period:
□ Applicable ? Not applicable
The independent financial advisor appointed by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable ? Not applicable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
? Yes □ No
Reason for retrospective restatement:
Change in accounting policy
Before Restated Restated Before Restated
Operating revenue (RMB) 83,272,067,317.19 73,968,640,704.54 73,968,640,704.54 12.58% 66,209,053,612.11 66,209,053,612.11
Net profit attributable to the listed
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before
exceptional gains and losses
(RMB)
Net cash generated from/used in
operating activities (RMB)
Basic earnings per share 6.023
(RMB/share)
Diluted earnings per share 6.023
(RMB/share)
Weighted average return on equity Down by 0.22 percent
(%) age point
Change of 31 December
Before Restated Restated Before Restated
Total assets (RMB) 165,432,981,684.75 152,714,727,880.22 152,811,927,251.18 8.26% 135,620,812,221.13 135,754,813,767.36
Equity attributable to the listed
company’s shareholders (RMB)
Note: This is primarily driven by the increased cash generated from operating activities. Firstly, due to consumption recovery in the year, the Company saw a
higher percentage of cash settlement with its customers and a higher amount of cash collected on due bank acceptance bills, resulting in a significant increase in cash
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
proceeds from sale of goods and rendering of services. Secondly, to cope with market changes in the same period of last year, the Company lowered the percentage of
cash settlement with its customers, leading to a lower base of cash proceeds from sale of goods and rendering of services.
Reason for change in accounting policy and correction of accounting errors:
On 30 November 2022, the Ministry of Finance issued Interpretation No. 16 for the Accounting Standards for Business Enterprises (C.K. [2022] No. 31,
hereinafter referred to as “Interpretation No. 16”, of which the “accounting treatment that deferred income tax related to assets and liabilities arising from a single
transaction is not exempt in initial recognition” was effective from 1 January 2023.
For a single transaction to which Interpretation No. 16 applies that occurred between the beginning of the earliest period presented in the financial statements to
which Interpretation No. 16 was first applied (i.e., 1 January 2022) and 1 January 2023, adjustments shall be made in accordance with Interpretation No. 16. For
taxable temporary differences and deductible temporary differences arising from lease liabilities and right-of-use assets recognised on 1 January 2022 as a result of a
single transaction to which Interpretation No. 16 applies, the cumulative effects shall be adjusted to retained earnings and other relevant financial statement items on
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years, or the latest independent auditor’s
report indicated that there was uncertainty about the continuity of the Company’s operations.
□ Yes ? No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative.
□ Yes ? No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.
□ Applicable ? Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 31,138,862,489.34 14,367,522,329.03 17,030,002,820.69 20,735,679,678.13
Net profit attributable to the
listed company’s 12,542,086,212.64 4,494,622,578.54 5,796,220,371.11 7,377,656,107.01
shareholders
Net profit attributable to the
listed company’s
shareholders before
exceptional gains and losses
Net cash generated
from/used in operating 9,535,617,536.41 1,794,201,349.89 11,058,926,288.67 19,353,734,733.26
activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially
from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
IX Exceptional Gains and Losses
? Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Gain or loss on disposal of non-current assets (inclusive
-50,550,226.30 2,282,237.38 -23,622,995.51
of impairment allowance write-offs)
Government grants recognised in profit or loss
(exclusive of those that are closely related to the
Company's normal business operations and given in
accordance with defined criteria and in compliance with
government policies, and have a continuing impact on
the Company's profit or loss)
Capital occupation charges on non-financial enterprises
that are recognized in profit or loss
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Reversed portions of impairment allowances for
receivables which are tested individually for 1,388,731.60
impairment
Non-operating income and expense other than the above -36,541,935.37 -62,917,173.08 -80,306,712.64
Less: Income tax effects 40,618,434.04 8,377,774.30 21,010,672.65
Non-controlling interests effects (net of tax) 16,118,943.29 3,927,171.59 11,985,497.85
Total 94,116,358.51 27,924,688.44 49,345,095.58 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
During the Reporting Period, China's Baijiu industry continued to grow amid intense competition. The
existing Baijiu producers were competing even more fiercely with each other, with increased market share
concentration, intensified brand competition, fierce price competition, and bigger business sizes based on regions
of production. The structural differentiation trend within the industry became more apparent, continuously
concentrating towards strong brands, top producers, and major regions of production. In 2023, China's Baijiu
producers above the designated size achieved sales revenue of RMB756.3 billion, up 9.7% year on year; and a
profit before tax of RMB232.8 billion, up 7.5% year on year, fully demonstrating the resilience of the Baijiu
industry.
II Principal Operations of the Company during the Reporting Period
(I) Overview
The Company is principally engaged in Baijiu production and sales. According to the Guidelines for the
Industry Classification of Listed Companies issued by the China Securities Regulatory Commission, the Baijiu
industry falls into the category of the "liquor & wine, beverage, and refined tea production industry" (C15). No
change occurred to the principal operations of the Company during the Reporting Period. "Wuliangye", the
primary product of the Company, is a classic strong-flavor Chinese Baijiu. Additionally, the Company has
developed, based on different production techniques and market needs, Wuliang NongXiang Baijiu products such
as Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, and Mianrou Jianzhuang with
complete categories and unique tastes to meet the diverse needs of different consumers in pursuit of a better life.
(II) Brand Operation
In 2023, the Company continued with scientific placements to meet the consumer needs arising in the new
era, continuously enhanced the Wuliangye brand's market presence, and fully committed itself to improving the
quality and effectiveness of the marketing efforts of the Wuliangye brand.
Firstly, the Company continued to boost its efforts in product development, with further strengthened
product strength. In line with the Company's "1+3" product matrix, new products such as Propitious Purple
Wuliangye were launched, completing the development and sales of 18 cultural Baijiu products including
Wanshou Tan and Panda-shaped liquor; continued to strengthen the market cultivation of Classic Wuliangye,
focusing on the Baijiu market above the unit price of RMB2,000, achieving dual drive with the eighth generation
Wuliangye and Classic Wuliangye.
Secondly, the Company kept bolstering brand-building efforts, further elevating the brand's strength.
It successfully hosted the second "Harmony Cultural Festival" and "Rose Wedding Ceremony", continuously
boosting brand heat and reputation It named sponsorships of CCTV's Spring Festival Gala and Mid-Autumn
Festival Gala and brought the brand exposure to over 11 billion interactions during the Spring Festival Gala. The
"Harmony Gifts" interactive campaign during the Mid-Autumn Festival Gala saw more than 5.8 billion interactive
engagements; further deepened cooperation with mainstream media such as People's Daily and Xinhua News
Agency, continued appearances at top-tier platforms like the Boao Forum for Asia, APEC, and the first "Golden
Panda" awards, effectively enhancing brand influence.
Thirdly, the Company continued to exert efforts in channel expansion, further solidifying the channel
strength. In terms of traditional channels, the Company added approximately 26,000 new core retail stores
throughout the year, with continuous improvement in retail sell-through. Besides, it initiated the "Three Stores,
One House" construction, with currently over 1,600 exclusive stores covering more than 300 cities nationwide.
Regarding emerging channels, it accelerated the layout on three major e-commerce platforms of Douyin,
Kuaishou, and WeChat video accounts, making the online benchmark effect more pronounced.
In 2023, Wuliang NongXiang firmly embraced the strategic direction of "innovation with integrity while
expanding territories". Centering on consumers, focusing on product sell-through, market segmentation and
hierarchy construction, and consumer cultivation as key tasks, it employed flexible and practical empowerment,
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
ensuring steady progress in all areas of work.
Firstly, product sell-through saw a significant increase. A concentrated effort was made to launch a major
campaign for product sell-through, with the daily average participants in the “crack a bottle, scan the code, and
win a prize” activities increasing by more than 70% year on year. A noticeable increase in strengthening and
enhancing distributors was observed, with segmented and hierarchical market creation achieving staged results.
The construction of terminals saw improvements in both quantity and quality, with continuous efforts from e-
commerce and KAs leading to ongoing improvements in the channel structure.
Secondly, consumer cultivation progressed steadily. Consumer cultivation was continuously pursued
through appreciation salons, Wuliangye cultural tours, fan meetings, and online platforms such as Xiaohongshu
and Douyin, all aimed at fully facilitating sell-through.
Thirdly, initial success was seen in cultural development. A proactive approach was adopted in integrating
into the "Harmonious Culture" system, making the brand images of Wuliang Chun (Spring) "Best of the Best,
Wuliang Chun (Spring)", Wuliang Chun (Rich Flavour) "Rich Flavour of China, Enjoy a Better Life", Wuliang
Tequ's craftsmanship culture, and Jianzhuang's "Century-old Jianzhuang, National Brand" more deeply ingrained
in people's hearts.
Finally, a noticeable improvement in market order was achieved. An enhancement in the brand structure
and an optimisation of the regional layout were pursued, along with marketing model reform, brand culture
development, and meticulous channel cultivation. These efforts led to products being sold at fair prices, the
purification of market order, and a further solidification of the market foundation.
(III) Major Sales Models of the Company
Distribution model: This includes the traditional channel operator model, KA marketplace, etc., mainly sold
offline.
Direct-to-consumer model: This includes the group purchase model, where products are sold directly to
groups of consumers, the exclusive store model for the retail end and consumer groups, and the online sales model,
where products are sold through e-commerce platforms such as Tmall and JD.
(IV) Distribution Model
? Applicable □ Not applicable
Categories
Unit: RMB
Gross YoY change in YoY change in
YoY change in
Item Operating revenue Cost of sales profit operating gross profit
cost of sales
margin revenue margin
By sales model
Liquor products 76,447,093,245.62 13,824,929,799.19 81.92% 13.15% 12.92% 0.04%
Of which: Distribution
model
Direct-to-
consumer model
By product category
Liquor products 76,447,093,245.62 13,824,929,799.19 81.92% 13.15% 12.92% 0.04%
Of which: Wuliangye-
branded Baijiu 62,804,076,723.47 8,389,167,091.67 86.64% 13.50% 12.84% 0.08%
products
Other
liquor products
Number of distributors of
Reason for change (more than
Region Wuliangye-branded Baijiu YoY change (number)
products
East China 747 56
N/A
South China 455 -13
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
West China 477 11
North China 354 3
Central China 537 24
Subtotal 2,570 81
Number of distributors of
Region Wuliang NongXiang YoY change (number)
products
China 814 159
Total 3,384 240
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiang
products.
A distribution model is mainly used, with a "payment before delivery" settlement method. In the Reporting
Period, the total sales revenue from the top five distributors reached RMB11.319 billion, accounting for 13.59%
of the total sales revenue.
? Applicable □ Not applicable
Number of exclusive stores Number of exclusive stores
Region at the beginning of the at the end of the Reporting Reason for change (more than 30%)
Reporting Period Period
East China 443 475
South China 292 285
West China 286 280
N/A
North China 237 244
Central China 372 378
Total 1,630 1,662
? Applicable □ Not applicable
Product category Platform
Wuliangye-branded Baijiu products:
The 8th-generation Wuliangye Tmall, JD, and WeChat
Other liquor products:
Wuliang Chun (Spring), Wuliang Chun (Rich Flavor),
Tmall, JD, and WeChat
Wuliang Tequ, and Jianzhuang
Indicate whether any of the major products that accounted for more than 10% of the total operating revenue
in the current period saw a 30% or greater change in its selling price compared to the prior reporting period.
□ Applicable ? Not applicable
(V) Purchase Model and Purchased Items
Unit: RMB
Purchase model Purchased items Amount
Market-based purchase Raw materials and auxiliary materials, etc. 9,692,068,001.76
Market-based purchase Packaging materials 2,226,043,954.86
Market-based purchase Energy 578,004,652.53
Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30% of
the total purchase amount.
□ Applicable ? Not applicable
Indicate whether the price of any of the major raw materials purchased externally changed by more than 30%
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
year-on-year.
□ Applicable ? Not applicable
(VI) Main Production Models
The Company's Baijiu products are all produced by itself.
Commissioned processing and production:
□ Applicable ? Not applicable
(VII) Production Volume and Inventory
Opening inventory
Production volume (ton) Sales volume (ton) Closing inventory (ton)
(ton)
Product
YoY
change
Wuliangye-
branded Baijiu 2,961 52.79% 40,135 18.77% 38,659 17.98% 4,437 49.85% (note 2)
products
Other liquor
products
Total 23,328 10.24% 184,100 42.35% 159,106 25.12% 48,322 107.14%
Note 1: The liquor referred to in the table above is all commercial liquor.
Note 2: Mainly because the Company’s primary products performed well in terms of sell-through, and the
Company actively stocked up for sales in the Spring Festival, leading to increases in the production volume and
the closing inventory.
Category Inventory (ton)
Finished liquor 48,322
Semi-finished liquor (including base liquor
in pottery jars)
Designed production Actual production capacity Production capacity in progress
Major product
capacity (’0,000 tons) (’0,000 tons) (’0,000 tons)
Liquor 17.5627 11.95928 6
Note: The liquor in the table above includes Baijiu and base fruit liquor.
III Core Competitiveness Analysis
The Company's unique five major competitive edges of the regions of production, ancient fermentation pit
clusters, quality, brands, and consumer base constitute its irreplicable core competitiveness. During the Reporting
Period, the Company's core competitiveness continued to strengthen.
The first is the geographical competitiveness. The Yibin region of production, where the Company is
situated, boasts a uniquely favourable natural ecological brewing environment of "water, soil, air, climate, and
biology". It has been recognised by United Nations Educational, Scientific and Cultural Organization (UNESCO)
and Food and Agricultural Organization (FAO) as "the most suitable region in the same latitude for producing
high-quality, pure distilled Baijiu", making it one of the world's top ten regions of production of spirits. In 2023, it
was awarded the title of "China's Wuliang NongXiang Core Region of Production".
The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pit
clusters of the Yuan and Ming dynasties, represented by Changfasheng and Lichuanyong, are the earliest and
largest cave-type ancient fermentation pits in China with uninterrupted production and have been in existence for
more than 656 years, which have scarcity value that is unrepeatable and non-reproducible. Four new microbial
species named after Wuliangye have been discovered in ancient fermentation pits from the Ming and Qing
dynasties, profoundly interpreting the richness, complexity, and uniqueness of the brewing microorganisms of
Wuliangye from a scientific perspective.
Quality represents the third competitive edge. Wuliangye possesses the unique "1366" traditional
production technique that has been identified as a national intangible cultural heritage. It boasts the most in the
industry with 12 individuals recognised as Chinese Baijiu Masters, Chinese Brewing Masters, and Chinese Baijiu
Technique Masters. A complete quality management model "from seed to liquor" has been established, which has
four times been awarded the highest honour in China's quality management field, the "National Quality Award".
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
The fourth is the brand strength. Wuliangye's brand culture has profound historical roots with a history of
over a thousand years, beginning in the Tang dynasty, emerging in the Song dynasty, refined in the Yuan dynasty,
becoming famous in the Ming dynasty, and establishing the brand name in the Qing dynasty. It possesses a unique
culture encapsulated by five-character mottoes, ancient fermentation pit culture, and a rich poetic and Baijiu
tradition. The advocacy of a harmonious culture of “harmonious common prosperity” continues to be prominently
displayed; the brand value has exceeded RMB400 billion, with the brand strength index receiving the highest
global AAA+ rating for two consecutive years, ranking first among Baijiu brands.
Finally, the consumer base. Strong-flavored Baijiu is the Baijiu category with the highest market share and
the largest consumer base. Being famous worldwide for its unique style of "lasting aroma, mellow, pleasant and
smooth taste, and harmonious, well-balanced and comprehensive flavors", Wuliangye has a wide and solid
consumer base. Notably, the industry's pioneering low-alcohol Baijiu possesses a unique competitive advantage in
cultivating a young consumer demographic.
IV Analysis of Principal Operations
During the Reporting Period, the Company adhered to the overall work principle of "focusing on stability,
seeking progress in stability, improving quality and efficiency, as well as making more contributions". It precisely
focused its efforts on four aspects: superior products, strong brands, advanced innovation and modern governance,
reaching a new level of development. In 2023, the Company achieved operating revenue of RMB83.272 billion,
up 12.58% year on year, and a net profit attributable to its shareholders of RMB30.211 billion, up 13.19% year on
year.
Firstly, the support from superior products has been further strengthened. The support for quality has
continuously improved, with the production volume of famous liquors reaching an all-time high; the fast growth
programme has been orderly advanced, with the first phase of the 100,000-ton ecological brewing project starting
production; two additional Chinese Brewing Masters have been added. The product mix has been continually
perfected, with the launch of the Propitious Purple Wuliangye; the development and sales of 18 cultural Baijiu
products have been completed; the Classic 50 has won the iF Design Award. Quality management has
continuously been enhanced, with the Company being the only one in the industry shortlisted for the Nomination
Award of the Fifth China Quality Award; it has won the "National Typical Cases of Quality Reform and
Innovation of Chief Quality Officers" and two gold awards at the 48th International Convention on Quality
Control Circles (ICQCC); optimisation has yielded the best Qu-preparation Production Technique knowledge map
and an expert analysis and judgment system, earning the title of "National Quality Benchmark".
Secondly, the pulling force of strong brands has been further solidified. Brand cultural promotion has
been continuously strengthened, with deep participation in CCTV's Year of the Rabbit Spring Festival Gala and
Mid-Autumn Festival Gala, bringing brand impressions to over 11 billion during the Spring Festival Gala and
over 5.8 billion engagements for "Harmony Gifts" during the Mid-Autumn Festival Gala, benefiting millions of
households with the joy of "Harmony Gifts". Further deep integration with high-end platforms such as APEC,
Boao Forum for Asia, and China International Import Expo (CIIE), along with successful collaboration with the
International Finance Forum, World Laureates Forum, Golden Panda Awards, and China International Consumer
Products Expo, has crafted a high-profile brand image. Brand cultural expression has been continuously innovated.
We successfully held cultural IP events such as the Harmony Cultural Festival, Happy China Festival, and Rose
Wedding Ceremony; launched "Wuliangye Harmony Global Tour", leading "Sichuan Liquor Global Tour";
sponsored high-quality programmes like CCTV's "Beauty in Harmony", Hunan TV's "Chinese Restaurant" and
"New Year’s Eve Gala"; won three national brand communication awards. The foundation of brand culture
continued to be solidified. The Company completed the conservation and restoration projects of the
"Changfasheng" and "Lichuanyong" ancient fermentation pit sites, launched the "Archaeological Wuliangye"
Phase II project, actively pushed for the declaration of Chinese Baijiu traditional workshops as World Cultural
Heritage, and was selected as a national excellent industrial heritage protection and utilisation demonstration case.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Besides, it won the first-class award in National Culture Outstanding Achievement, and was selected again for the
Hurun Most Successful Chinese Heritage Brands 2023.
Thirdly, the driving force behind innovative development has been further enhanced. Platform
construction has achieved significant success, with the National Enterprise Technology Centre maintaining the top
score in the National Development and Reform Commission's annual assessment within the industry, the National
Industrial Design Centre smoothly passing the Ministry of Industry and Information Technology of the People's
Republic of China's re-evaluation, and successfully establishing the industry's first Chinese Baijiu Industry
Cultural and Technological Innovation Centre. Technical breakthrough efforts have continued to intensify, as the
Company attained three provincial and ministerial-level science and technology first-class awards. It also
completed the "Analysis of Wuliangye's Baobaoqu Enzyme Spectrum and Enzyme-producing Microflora" and
two other achievements, all reaching an "international leading level". The talent team has been continuously
strengthened, with the establishment of the National High-Skilled Talent Training Base and the "Cao Hongying"
National Skills Master Studio. Specifically, we had three more State Council Special Allowance Experts, 12 more
national Baijiu judges, and five more provincial high-end talents (including Skilled Masters in Sichuan Province
and talents included in the Tianfu Qingcheng Programme).
Fourthly, the assurance of modern governance has been further solidified. The Company is committed
to integrating the leadership of the Party into corporate governance, winning the excellent model case for National
State-owned Enterprises Party Building Brand Construction and the Best Practice Case 2023 for Board of
Directors of Listed Companies. Efforts were made to enhance the Company's ESG management level, which
earned the Best Practice Case 2023 for ESG of Listed Companies, and was selected as an excellent model case for
carbon-peaking, carbon-neutral and green development by the National Development and Reform Commission in
model case for serving the Belt and Road Initiative by People's Daily, and an excellent model case of UN 2023
SDG Summit.
(1) Breakdown of Operating Revenue
Unit: RMB
As % of total As % of total Change
Operating revenue operating Operating revenue operating (%)
revenue (%) revenue (%)
Total 83,272,067,317.19 100% 73,968,640,704.54 100% 12.58%
By operating division
Manufacturing 83,272,067,317.19 100.00% 73,968,640,704.54 100.00% 12.58%
By product category
Liquor products 76,447,093,245.62 91.80% 67,562,646,631.24 91.34% 13.15%
Plastic products 3,186,751,790.54 3.83% 3,201,867,776.04 4.33% -0.47%
Printing 148,586,388.77 0.18% 138,273,774.15 0.19% 7.46%
Glass bottles 121,727,109.44 0.15% 119,011,295.97 0.16% 2.28%
Other 3,367,908,782.82 4.04% 2,946,841,227.14 3.98% 14.29%
By operating segment
Liquor products 76,447,093,245.62 91.80% 67,562,646,631.24 91.34% 13.15%
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Of which: East China 22,388,529,236.37 26.89% 18,985,619,872.12 25.67% 17.92%
South China 6,810,441,782.70 8.18% 7,481,640,730.11 10.11% -8.97%
West China 26,215,491,173.54 31.48% 21,538,460,675.15 29.12% 21.71%
North China 8,074,372,025.55 9.70% 8,414,668,164.38 11.38% -4.04%
Central China 12,958,259,027.46 15.56% 11,142,257,189.48 15.06% 16.30%
Non-liquor products 6,824,974,071.57 8.20% 6,405,994,073.30 8.66% 6.54%
By sales model
Liquor products 76,447,093,245.62 91.80% 67,562,646,631.24 91.34% 13.15%
Of which: Distribution model 45,985,002,791.57 55.22% 40,492,386,915.69 54.74% 13.56%
Direct-to-consumer
model
Non-liquor products 6,824,974,071.57 8.20% 6,405,994,073.30 8.66% 6.54%
(2) Operating Division, Product Category, Operating Segment or Sales Model Contributing over 10% of
Operating Revenue or Operating Profit
? Applicable □ Not applicable
Unit: RMB
YoY
Gross YoY change YoY change in
change in
Operating revenue Cost of sales profit in operating cost of sales
gross profit
margin revenue (%) (%)
margin (%)
By operating division
Manufacturing
(liquor production)
By product category
Liquor products 76,447,093,245.62 13,824,929,799.19 81.92% 13.15% 12.92% 0.04%
Of which:
Wuliangye-branded 62,804,076,723.47 8,389,167,091.67 86.64% 13.50% 12.84% 0.08%
Baijiu products
Other liquor
products
By operating segment
Liquor products 76,447,093,245.62 13,824,929,799.19 81.92% 13.15% 12.92% 0.04%
Of which: East
China
South China 6,810,441,782.70 993,558,777.69 85.41% -8.97% -11.83% 0.47%
West China 26,215,491,173.54 6,047,557,225.84 76.93% 21.71% 27.82% -1.10%
North China 8,074,372,025.55 1,147,821,771.10 85.78% -4.04% -2.82% -0.18%
Central China 12,958,259,027.46 2,295,397,807.81 82.29% 16.30% -4.08% 3.77%
By sales model
Liquor products 76,447,093,245.62 13,824,929,799.19 81.92% 13.15% 12.92% 0.04%
Of which:
Distribution model
Direct-to-
consumer model
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Data of principal operations for the prior period adjusted according to the changed methods of measurement
that occurred in the Reporting Period (if any):
□ Applicable ? Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
? Yes □ No
Operating division Item Unit 2023 2022 Change (%)
Sales volume Metric ton 159,106 127,161 25.12%
Liquor Production volume Metric ton 184,100 129,328 42.35% (note)
Inventory Metric ton 48,322 23,328 107.14% (note)
Any over 30% YoY movements in the data above and why:
? Applicable □ Not applicable
Note: Mainly because the Company’s primary products performed well in terms of sell-through, and the
Company actively stocked up for sales in the Spring Festival, leading to increases in the production volume and
the closing inventory.
(4) Execution Progress of Significant Signed Sales or Purchase Contracts in the Reporting Period
□ Applicable ? Not applicable
(5) Breakdown of Cost of Sales
Unit: RMB
Change in
Operating As % of total As % of total
Item percentag
division Cost of sales cost of sales Cost of sales cost of sales e
(%) (%)
Raw
materials
Manufacturi Labor cost 6,073,522,534.43 30.13% 5,705,800,119.67 31.39% -1.26%
ng Energy 1,110,881,004.71 5.51% 934,705,836.04 5.14% 0.37%
Production
cost
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
? Yes □ No
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in 2023.
As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, the
Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has
incorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’an
Plastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’an
Plastic.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable ? Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 11,318,834,108.05
Total sales to top five customers as % of total sales in the
Reporting Period (%)
Total sales to related parties among top five customers as % of 0.00%
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
total sales in the Reporting Period (%)
Top five customers:
As % of total sales in the
No. Customer Sales to the customer (RMB)
Reporting Period (%)
Total -- 11,318,834,108.05 13.59%
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 2,253,921,896.08
Total purchases from top five suppliers as % of total purchases
in the Reporting Period (%)
Total purchases from related parties among top five suppliers
as % of total purchases in the Reporting Period (%)
Top five suppliers:
As % of total purchases in the
No. Supplier Purchases (RMB)
Reporting Period (%)
Total -- 2,253,921,896.08 16.57%
Other information about major suppliers:
□ Applicable ? Not applicable
Unit: RMB
Main reason for any
significant change
Selling expense 7,796,298,418.13 6,844,237,013.17 13.91%
Administrative expense 3,319,445,339.77 3,068,119,268.45 8.19%
Finance costs -2,473,170,676.27 -2,026,351,047.92 N/A
Greater investments in R&D
R&D expense 321,845,165.28 235,783,645.79 36.50% projects such as production
techniques
The Company is subject to the disclosure requirements for the food and wine & liquor production industry in
Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(1) Breakdown of Selling Expense
Unit: RMB
Change Reason for
Item As % of selling As % of selling
Amount Amount (%) change
expense expense
Image promotion
expense
Sales promotion
expense
Warehousing and
logistics expense
Labor cost 735,243,412.93 9.43% 718,179,395.38 10.49% 2.38%
Other expenses 540,121,690.67 6.93% 519,536,560.04 7.59% 3.96%
Total 7,796,298,418.13 6,844,237,013.17 13.91%
(2) Advertising Expense
During 2023, the Company’s primary advertising means included TV, broadcasting, Internet, outdoor ads
and exhibitions. The expenses on online, offline and TV ads were RMB181 million, RMB678 million and
RMB575 million, respectively.
? Applicable □ Not applicable
Main
Specific Expected impact on
R&D Purpose Progress
objectives the Company
project
The establishment
of China's Baijiu
Microbial Strain
Resource Bank
effectively protects (1) Strains with distinct functional traits and
Through the
the diversity of clear traceability backgrounds have been
By establishing protection of
China's Baijiu explored and preserved. More than 400 types,
the China Baijiu Wuliangye's rare
brewing microbial over 1,000 strains, and above 20,000 backups
Microbial Strain brewing resources and
strains. It achieves of Wuliangye brewing microbial strains were
Bank, which the continuous
standardised collected, leading to the establishment of the
covers core improvement in the
Building collection, quality China Baijiu Microbial Strain Bank,
microbial strain rate of famous
and control, encompassing core types of Baijiu brewing
types for Baijiu liquors, strong
Industrial professional microbial strains. (2) Five new strains of
brewing, the germplasm resources
Applicatio preservation, Baijiu brewing functional microbes have been
project aims to and technical support
n of comprehensive discovered and effectively published. (3) A
become the are provided for the
China's traceability, and full-life-cycle evaluation and application
largest enterprise Company’s high-
Repository digital management technology system for strain resources have
microbial strain quality development.
of of important strains, been developed, enabling the industrial
bank in China's The safety and
Microbial ensuring deep application of these strains. (4) Sixteen
liquor industry, stability of the core
Strains for exploration and articles have been published, eight invention
providing a robust microbial community
Liquor efficient, patents awarded, and one software copyright
resource in Baijiu brewing are
controllable obtained, positioning the overall technical
foundation for the ensured, promoting
utilisation of core level at an internationally advanced level. (5)
industry's the high-quality
resources. This The "Baijiu Microbiological Research Branch
sustainable development of
fosters the of the China Centre of Industrial Culture
development. China's Baijiu
protection of Collection" title was bestowed upon the
industry.
microbial resource project.
diversity in the
Baijiu industry and
its sustainable
utilisation.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
The project will
expedite the ageing of
Research the new fermentation
The project is
on the pits and pit mud,
designed to
replication continuously increase
replicate the similar
of the pit The project aims the yield rate of
function of
mud (1) The new strain of yeast (code: LY-L-M-1; to screen famous liquor, and
naturally ageing pit
engineerin Chinese name: 空气丛梗孢酵母菌) has been functional help Wuliangye
mud with modern
g obtained. (2) The new strain of Clostridium microorganisms in safeguard its
biotechnology and
technology bacteria that produces various beneficial the pit mud and advantageous position
obtain man-made
with use them for man- as China's largest
ageing pit mud with Baijiu flavour components (code: WLY-B-L2;
modern made ageing of brewing base using
a similar flavour of Chinese name: 产香梭状芽孢杆菌) has been
biotechnol the pit mud and the pure-grain solid
naturally ageing pit obtained. (3) Several unique new strains of
ogy and its conduct a large- fermentation
mud and microbial Wuliangye brewing have been discovered
application scale production technique, keep in
flora during internationally, and progress has been made
in the and application alignment with the
brewing, thereby in engineering applications, with the overall
Wuliangye demonstration in development trend of
enabling man-made
high- technological level reaching an Wuliangye Baijiu the Baijiu industry,
pit mud to rapidly
quality and internationally advanced level. production meet people's
age and
fast workshops. increasing demand for
contributing to the
growth quality Baijiu, and
construction of the
programm consolidate
new plant.
e Wuliangye's status as
a leader in strong-
flavoured Baijiu.
The dissemination
The project is and application of the
designed to inherit project result will
the essence of the enable the bionic
traditional equipment to imitate
production flexible manual
technique and operation, achieve the
develop intelligent The project aims scientific analysis of
Developm
bionic brewing (1) The intelligent brewing key equipment to establish a the traditional
ent of
equipment by developed by the project has been expanded workshop-level brewing technique,
Wuliangye
focusing on the for application in the intelligent brewing platform for the and transform the
intelligent
core brewing experience- and skill-
brewing demonstration workshop of the first phase of transformation of
process of dominated production
production fast growth programme. (2) In 2023, six new technological
Wuliangye, thereby process toward a
line and patent applications were filed in the direction innovation
reducing labour human-machine
research of core equipment for intelligent brewing, achievements,
intensity during collaborative
on including three invention patents and three achieving scaled
production, production process.
supporting utility model patents. The total number of production
improving This will help inherit
production
production patent applications has exceeded 70. demonstration the traditional
technique
efficiency, and applications. production technique,
promoting the stabilize the
perfect integration traditional production
of the traditional technique operation,
production lower labour costs of
technique and brewing lines and
modern technology. boost the production
efficiency.
Particulars about R&D personnel:
Number of R&D personnel 2,576 2,574 0.08%
R&D personnel as % of total
employees
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Educational background of R&D personnel
Bachelor’s degree 916 915 0.11%
Master’s degree 172 171 0.58%
Doctoral degree 21 14 50.00%
Age structure of R&D personnel
Below 30 752 860 -12.56%
Over 40 733 727 0.83%
Particulars about R&D investments:
R&D investments (RMB) 321,845,165.28 235,783,645.79 36.50% (note)
R&D investments as % of operating
revenue
Capitalized R&D investments (RMB) 0.00 0.00 0.00%
Capitalized R&D investments as % of
total R&D investments
Note: Mainly due to greater investments in R&D projects such as production techniques.
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ? Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
Unit: RMB
Item 2023 2022 Change (%)
Subtotal of cash generated from
operating activities
Subtotal of cash used in operating
activities
Net cash generated from/used in
operating activities
Subtotal of cash generated from
investing activities
Subtotal of cash used in investing
activities
Net cash generated from/used in
-2,931,832,324.46 -1,716,454,550.53 N/A
investing activities
Subtotal of cash generated from
financing activities
Subtotal of cash used in financing
activities
Net cash generated from/used in
-16,300,234,578.09 -13,105,431,458.20 N/A
financing activities
Net increase in cash and cash 22,511,040,326.64 9,609,386,518.94 134.26% (note 4)
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
equivalents
Explanation of why any of the data above varies significantly on a year-on-year basis:
? Applicable □ Not applicable
Note 1: This is primarily driven by the increased cash generated from operating activities. Firstly, due to
consumption recovery in the year, the Company saw a higher percentage of cash settlement with its customers and
a higher amount of cash collected on due bank acceptance bills, resulting in a significant increase in cash proceeds
from sale of goods and rendering of services. Secondly, to cope with market changes in the same period of last
year, the Company lowered the percentage of cash settlement with its customers, leading to a lower base of cash
proceeds from sale of goods and rendering of services.
Note 2: This is primarily driven by a higher base of net proceeds from the disposal of fixed assets, intangible
assets and other long-term assets in the same period of last year.
Note 3: This is primarily because the Company accelerated the high quality and fast growth programme.
Major projects progressed well, including the “Liquor Packaging and Integrated Smart Storage-and-delivery
Project”, the “Baijiu Cellar Renovation Project”, and the “100,000-ton Ecological Brewery Project”, among others,
leading to the increased construction expenditures that were settled in the Reporting Period.
Note 4: This is primarily driven by the significantly increased net cash generated from operating activities,
and the increased financing costs as a result of increased construction investments and a higher amount of
dividend payout, in the Reporting Period.
Explanation of why the net cash generated from/used in operating activities varies significantly from the net
profit of the Reporting Period:
□ Applicable ? Not applicable
V Analysis of Non-Core Businesses
□ Applicable ? Not applicable
VI Analysis of Assets and Liabilities
Unit: RMB
Change in
for any
As % of total As % of percentage
Amount Amount significant
assets total assets (%)
change
Monetary assets 115,456,300,910.64 69.79% 92,358,426,975.79 60.44% 9.35%
Accounts
receivable
Inventories 17,387,841,712.87 10.51% 15,980,657,013.57 10.46% 0.05%
Long-term equity
investments
Fixed assets 5,189,917,302.17 3.14% 5,312,971,445.61 3.48% -0.34%
Construction in
progress
Right-of-use
assets
Contract liabilities 6,864,383,635.25 4.15% 12,379,125,542.70 8.10% -3.95%
Lease liabilities 115,722,608.68 0.07% 16,976,148.73 0.01% 0.06%
Indicate whether overseas assets account for a large proportion in total assets.
□ Applicable ? Not applicable
? Applicable □ Not applicable
Unit: RMB
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Gain/l
Purc
oss on Cumulat Impair
hase Sold
fair- ive fair- ment
d in in the
value value allowa
the curre
Item Opening amount change changes nce for Other changes Closing amount
curr nt
s in recogniz the
ent perio
the ed in current
peri d
current equity period
od
period
Financial assets
financial assets
(exclusive of derivative
financial assets)
assets
investments
Subtotal of financial
assets
Investment property
Productive living assets
Other
Total of the above 28,905,398,420.44 -14,817,747,854.65 14,087,650,565.79
Financial liabilities
Contents of other changes:
The Company classified the portion of bank acceptance bills received that were to be endorsed or discounted
as receivables financing, and other changes during the current period represented the net amount recognized and
utilized during the current period.
Indicate whether any significant change occurred to the measurement attributes of the major assets in the
Reporting Period.
□ Yes ? No
? Applicable □ Not applicable
Unit: RMB
Item Closing carrying amount Reason for restriction
Security deposits for bank acceptance bills, other security deposits, and the
Monetary assets 200,977,259.48 balance in the securities trading account with the Yibin Business Department of
Essence Securities
Total 200,977,259.48
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
VII Investment Analysis
□ Applicable ? Not applicable
□ Applicable ? Not applicable
□ Applicable ? Not applicable
(1) Securities Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Investments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
IX Principal Subsidiaries and Joint Stock Companies
? Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Relationsh
Principal
Name ip with the Registered capital Total assets Equity
activities
Company
Liquor-
Yibin Wuliangye Liquor Sales Co.,
Subsidiary related 200,000,000.00 53,671,050,000.91 34,044,032,795.50
Ltd.
operations
Unit: RMB
Relationsh
Principal
Name ip with the Operating revenue Operating profit Net profit
activities
Company
Liquor-
Yibin Wuliangye Liquor Sales Co.,
Subsidiary related 61,829,117,337.04 28,613,019,005.80 21,444,587,912.50
Ltd.
operations
Subsidiaries acquired or disposed of in the Reporting Period:
□ Applicable ? Not applicable
X Structured Entities Controlled by the Company
□ Applicable ? Not applicable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
XI Prospects
(I) Industry Landscape and Trends
Strong brands, top producers, and major regions of production are the greatest ballasts and stabilisers for the
high-quality development of the Baijiu industry. The future development of the Baijiu industry is highly certain,
with structural growth still being the main theme and tune. Industry differentiation and concentration will further
intensify.
Firstly, the development of the industry is supported by the continuous improvement of the
macroeconomy. China's economy is rebounding well, and the primary trend of long-term improvement remains
unchanged, with residents' consumption capacity and expectations continuing to improve. The Central
Government has designated 2024 as the "Year of Consumption Promotion", making "expanding domestic demand
and promoting consumption" a key point of the economic work for 2024. This will further stimulate the release of
residents' consumption potential, driving consumption from post-pandemic recovery to continuous expansion,
which bodes well for the sustained growth in Baijiu consumption demand.
Secondly, industrial policies continue to bolster the industry's development. In 2023, the Ministry of
Industry and Information Technology of the People's Republic of China and 11 other departments jointly issued
the Guidelines on Cultivating Traditional Advantageous Food Production Regions and Local Specialty Food
Industries, focused on forming new economic development drivers, encouraging high-quality Baijiu to
concentrate in quality production regions. The Ministry of Industry and Information Technology of the People's
Republic of China and two other departments jointly issued the Light Industry Steady Growth Work Plan, which
explicitly proposes further strengthening Baijiu and other specialty food industry clusters. CPC Sichuan Provincial
Committee, and the People's Government of Sichuan Province have explicitly proposed implementing a fast
growth programme to promote high quality and fast growth of the food and textiles industries, centered on Baijiu,
and to build a world-class premium Baijiu industry cluster. The Opinions on Supporting Yibin and Luzhou to
Form a Group to Build the Southern Sichuan Provincial Economic Sub-Centre were issued, clearly proposing the
implementation of a high-quality Baijiu "Mount Qomolangma Climbing" plan to further enhance the global
competitiveness of the high-quality Baijiu industry.
Thirdly, the aspiration for a better life leads the industry's development. Baijiu is an important carrier
for meeting people's aspirations for a better life. The cultural carrier characteristics and social attributes of Baijiu
will not change. The Baijiu industry continues to explore new opportunities and open new situations by deepening
supply-side structural reforms. As consumer demographics become younger and demand for quality increases, the
market's demand for Baijiu gradually shows diversity, individualisation, and health-conscious characteristics. As a
leading and advantageous company, we continuously push forward with innovations in liquor body, products, and
scenarios, precisely explore consumers' real demands, effectively tap into potential demands, vigorously cultivate
valid demands, and lead new demand creation with new supplies, which will effectively promote the sustained
high-quality development of the Baijiu industry.
(II) Development Strategies of the Company: Wuliangye will persist in taking quality, culture, integrity
and innovation as the foundation, and vigorously implement the 135 development strategy. It will promote the
three major programmes of quality brands, marketing innovation and high-quality & fast growth, making every
effort to build an ecological and quality-oriented Wuliangye with culture as the foundation, digital transformation
as the driver and sound corporate governance as the support. With a focus on enhancing the Wuliangye brand
value, continuous efforts will be made to strengthen brand quality, consumer cultivation, and channel profitability,
driving the price to quickly align with the reasonable return to brand value, and fully promoting the Company to
achieve qualitative enhancement and rational growth in quantity.
(III) Completion of the Business Plan for 2023
revenue in 2023.
year.
(IV) Development Goals for 2024
The Company's operation goal: The consolidation and enhancement of a stable development trend and a
continued double-digit growth in operating revenue.
for achieving the objectives and tasks outlined in the 14th Five-Year Plan. The Company will steadfastly adhere to
the guidance of Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, thoroughly
implement the key spirit and instructions of the 20th National Congress of the Communist Party of China and the
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
second plenary session of the 20th Central Committee, as well as General Secretary Xi Jinping's visit to Sichuan
and Yibin. The Company is committed to fully implementing the decisions and arrangements of the Provincial
Party Committee and Provincial Government, the Municipal Party Committee and Municipal Government,
following the general principle of "staying politically aware, driving development, improving people's livelihood,
ensuring safety, and delivering first-class performance". In accordance with the overall tone of "seeking progress
in stability, maintaining stability with progress, improving quality and efficiency, as well as making more
contributions", the Company insists on taking quality, culture, integrity and innovation as the foundation. It aims
to balance the immediate and long-term needs, high-quality development and high-level safety, as well as
effective improvement in quality with rational growth in quantity. The Company is dedicated to accelerating the
pace of high-quality development and striving to become a world-leading enterprise with superior products, strong
brands, advanced innovation and modern governance.
(V) Potential Risks
Firstly, there may be uncertainties in the environment at home and abroad; secondly, valid demand may not
be recovering in an expected pace; and finally, competition in the industry, especially among the top players, may
be increasingly intense.
XII Researches, Inquiries, Interviews, etc. Received during the Reporting Period
? Applicable □ Not applicable
Type of Main
Way of the discussions and Index to the
Date Place communicatio communi Communication party materials relevant
n cation provided by the information
party Company
Golden Eagle Fund,
Through an Hongkang Life Insurance,
platform International Fund
Management, etc.
One-on-one First Seafront, Huaxi
meeting Securities
E Fund, Huashang Fund,
Zhongtai Asset
Through an
Management, Tongben
Invest, Ping An Asset
platform
Management, Yinhua Fund,
etc.
Securities
China Universal, AEGON-
firm’s
INDUSTRIAL Fund, ICBC The Company’s
Credit Suisse Asset development
strategy cninfo.com.
Management, etc. strategies,
conference cn
production and
E Fund, CCB Principal operation status
One-on-one
meeting
Asset Management, etc.
Securities
Huatai Insurance, Kaifeng
firm’s
Invest, Nanjing Self-
operated, Xintai Life
strategy
Insurance, etc.
conference
Securities
HuaAn Fund, Guotai Asset
firm’s
Management, Tianhong
Fund, Ping An Asset
strategy
Management, etc.
conference
Securities Longrising, Perseverance
investment Fund, GF Asset
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
strategy Management, etc.
conference
Norges Bank, Capital
One-on-one
meeting
Coatue, etc.
One-on-one
meeting
Securities
China Merchants Fund,
firm’s
New China Asset
Management, Great Wall
strategy
Fund, etc.
conference
Franklin Templeton,
One-on-one
meeting
Asset Management, etc.
Securities
China Universal, Orient
firm’s
Securities Asset
Management, GF Fund
strategy
Management
conference
Securities
Goldman Sachs Gaohua,
firm’s
Hong CICC, HSBC Qianhai,
Kong Credit Suisse Founder
strategy
Securities, etc.
conference
Securities
Zhengfubang, Guotai Asset
firm’s
Management, Morgan
Stanley Huaxin, and other
strategy
institution investors
conference
Securities Maxwealth Fund,
firm’s FuanFund, China
strategy Management, Huatai Fund
conference Management, etc.
Institution
General Invesco Great Wall Fund
Meeting of Management, individual
individual
Shareholders shareholders, etc.
Securities
firm’s JPMorgan Chase, Huatai
strategy Securities, etc.
conference
Securities
firm’s
Guotai Asset Management,
China Post Securities, etc.
strategy
conference
Securities
firm’s Amundi BOC Wealth
strategy Western Leadbank, etc.
conference
Securities
firm’s
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
investment
strategy
conference
Securities
firm’s
Shenwan Hongyuan, CITIC
Securities, etc.
strategy
conference
One-on-one Zheshang Securities, CICC,
meeting etc.
Through an
platform
Securities
firm’s
strategy
conference
One-on-one CITIC Securities, CLSA,
meeting GF Securities, etc.
One-on-one Cederberg Capital Limitied,
meeting etc.
Securities
firm’s
Tianfeng Securities,
Founder Securities, etc.
strategy
conference
Guotai Junan Securities, E
One-on-one
meeting
Securities, etc.
Guotai Junan Securities,
etc.
XIII Implementation of the Action Plan for "Dual Enhancement of Development Quality and
Investor Returns"
Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Development Quality
and Investor Returns”.
? Yes □ No
In order to comprehensively implement the guiding principles of the Political Bureau meeting on "activating
the capital market and boosting investor confidence" and the State Council Executive Meeting on "vigorously
enhancing the quality and investment value of listed companies, adopting more effective measures, focusing on
stabilizing the market and confidence", Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company" or
"Wuliangye") disclosed the Action Plan for "Dual Enhancement of Development Quality and Investor Returns"
(Announcement No.: 2024/No. 002) on 7 March 2024. The implementation of the action plan is as follows.
(I) Strengthen development and strive to accelerate the journey to become a world-leading enterprise
Firstly, the Company has maintained steady and robust growth in operating performance. Maintaining
the strategic focus of "concentrating on the liquor industry and strengthening the principal operations", the
Company adhered to the working principles of "seeking progress in stability, maintaining stability with progress,
improving quality and efficiency, as well as making more contributions", solidly carried out its work, and takes
scientific actions, achieving new heights in corporate development. In 2023, the Company achieved operating
revenue of RMB83.272 billion, an increase of 12.58% year on year; and the net profit attributable to its
shareholders was RMB30.211 billion, an increase of 13.19% year on year. In the first quarter of 2024, the
Company achieved operating revenue of RMB34.833 billion, a year-on-year increase of 11.86%; the net profit
attributable to its shareholders was RMB14.045 billion, a year-on-year increase of 11.98%, maintaining steady
growth in operating performance.
Secondly, the driving force for innovative development continued to strengthen. In 2023, the Company
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
invested RMB322 million in research and development, a year-on-year increase of 36.50%, further consolidating
the foundation for innovative development of Wuliangye. Wuliangye has established seven national-level
innovation platforms, including the National Baijiu Product Quality Supervision and Inspection Centre, the
National-level Enterprise Technology Centre, the National-level Industrial Design Centre, and the Post-doctoral
Research Station, among others, with over 8% of research and development personnel holding doctoral degrees.
The Company continued to promote the construction of national-level innovation platforms, vigorously conducts
basic theoretical research with core microorganisms in Baijiu brewing, health factors, flavour substances, etc.,
promoted supply-side structural reforms with liquor body innovation and production technique innovation as the
core, and continuously achieved new breakthroughs and results in enterprise transformation and innovative
development.
Thirdly, the brand influence continued to rise. On 17 January 2024, Brand Finance, an internationally
renowned brand valuation agency, released the Brand Finance 2024 Global Brand Value 500 list. Wuliangye's
Brand Strength Index (BSI) scored 90.7 points, ranking first among Baijiu brands, and obtained the highest rating
of AAA for global Baijiu brands, with its brand value and global influence continuing to rise.
(II) Strengthen compliance and continuously improve corporate governance
Firstly, the information disclosure continued to be strengthened. The Company continued to strengthen
its learning of the Rules Governing the Listing of Shares and Guidelines on the Application of Self-Regulation
Rules for Listed Companies and other regulations on the supervision of listed companies, and to strengthen
information disclosure management. It has won the highest level (A) assessment of information disclosure from
the Shenzhen Stock Exchange for nine consecutive years. Since 2024, the Company has compiled and disclosed
Secondly, the governance system continued to be optimised. The Company continued to improve the level
of corporate governance and promote the stable operation of the governance structure. The Company currently has
nine directors, including four internal directors and five outside directors. Major agenda items are subject to pre-
review and pre-study by the Party Committee, continuously exerting the effectiveness of scientific decision-
making by the Board of Directors. since 2024, the Company has convened four Board meetings, deliberating on
Directors, and ensuring efficient and orderly management of the Company.
Thirdly, the supervision mechanism continued to be sound. Since 2024, the Company has continued to
promote the revision of the Articles of Association; independent directors attended one special meeting of
independent directors and four Meetings of the Board of Directors, while continuing to pay attention to the
Company's information disclosure work, objectively evaluating the timeliness and accuracy of information
disclosure, and independently and prudently expressing opinions to ensure the normative, compliant, and effective
operation of the Board of Directors; the Company's Supervisory Committee independently exercised its powers in
accordance with the law, comprehensively supervised the Company's lawful operations, financial status, related
transactions, external guarantees, and actively safeguarded the legitimate rights and interests of all shareholders,
the Company, and employees.
(III) Strengthen returns and continuously increase shareholder returns
The Company continued to uphold the core value of "creating returns for investors". While focusing on its
own development and improving performance, it actively shared the yield of development with all shareholders.
On 24 April 2024, the 4th Meeting of the 6th Board of Directors of the Company approved the profit distribution
plan for 2023: based on 3,881,608,005 shares, a cash dividend of RMB46.70 (tax inclusive) will be distributed to
all shareholders for every 10 shares; the cash dividend payout ratio is 60%, with a total cash dividend of
RMB18.127 billion, both the payout ratio and scale of dividends reached a new high since listing.
(IV) Strengthen confidence and major shareholders implement additional purchases of the Company's
shares
The Company's major shareholder, Sichuan Yibin Wuliangye Group Co., Ltd. (hereinafter referred to as
"Wuliangye Group"), initiated the implementation of additional purchases of the Company's shares on 14
December 2023, and has accumulated a total purchase amount of RMB180 million to date. Subsequently,
Wuliangye Group will continue to implement the additional purchase plan.
(V) Strengthen communication and continuously optimise investor relations management
The Company always adhered to the principles of "compliance, equality, proactivity, and honesty and
trustworthiness", continuously optimised investor relations management, and built various communication
platforms. The Company is scheduled to hold the "2023 Annual and 2024 First Quarter Performance Briefing" on
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
suggestions, improving the effectiveness and pertinence of questions, and actively ensuring the equal participation
of minority shareholders.
The Company will continue to implement relevant measures of the Action Plan for "Dual Enhancement of
Development Quality and Investor Returns”, strive to realise the concept of "investors first" through good
performance, standardised corporate governance, and active investment returns, effectively fulfil the
responsibilities and obligations of a listed company, enhance investor confidence, and achieve sustained high-
quality development of the Company.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part IV Corporate Governance
I Corporate Governance Overview
In 2023, focusing closely on the development goal of building a world-class enterprise with modern
governance, the Company continued to improve its corporate governance structure, optimize its mechanisms, as
well as accelerate the establishment of a well-organized, well-coordinated and well-balanced corporate
governance mechanism.
Firstly, the Company continuously optimised the governance system. During the Reporting Period, the
Company's governance system was further improved. The Company currently has nine directors, including four
internal directors and five outside directors. Major agenda items are subject to pre-review and pre-study by the
Party Committee, continuously exerting the effectiveness of scientific decision-making by the Board of Directors;
one General Meeting of Shareholders was held throughout the year, deliberating on nine agenda items;12
Meetings of the Board of Directors were held, deliberating on 46 agenda items, including matters related to profit
distribution and major engineering projects, actively implementing the functions of the Board of Directors, and
ensuring efficient and orderly management of the Company.
Secondly, the Company continuously improved the supervision mechanism. During the Reporting Period,
the Company completed the revision of regulations of "major issues, major appointments and dismissals, major
project investment, and use of large amount of funds", the Performance Appraisal and Remuneration Management
Methods for Deputy Senior Management, and continued to promote the revision of the Articles of Association and
Rules of Procedure for the Board of Directors; independent directors attended 12 Meetings of the Board of
Directors throughout the year and attended one General Meeting of Shareholders, while continuing to pay
attention to the Company's information disclosure work, objectively evaluating the timeliness and accuracy of
information disclosure, and independently and prudently expressing opinions to ensure the normative, compliant,
and effective operation of the Board of Directors.
Thirdly, the Company continuously improved internal control effectiveness. Based on the continuous
improvement of modern corporate regulations, the Company continuously improved the internal control system
and risk management mechanism, integrated and exerted the practical effectiveness of risk prevention and control
of multiple management institutions such as audit, finance, discipline inspection, and the Supervisory Committee,
and increased training and assessment efforts for the decision-making ability and risk prevention awareness of
senior management, ensuring the rational and smooth operation of the Company's governance mechanism.
Indicate whether there is any material incompliance with the applicable laws, regulations, or rules issued by
the CSRC governing the governance of listed companies.
□ Yes ? No
No such cases.
II Independence of the Company from its Controlling Shareholder and Actual Controller in
Assets, Personnel, Finance, Organizational Structure, Business, etc.
The Company is independent of its controlling shareholder in business, personnel, assets, organizational
structure, finance, etc. It has independent and complete systems of production and operation and is able to operate
on its own.
In terms of business, the Company has independent production and operation systems, production supporting
systems and related ancillary facilities. It is able to make decisions on its own with respect to operating activities.
In terms of personnel, the Company independently manages labor, human resources and salaries.
In terms of assets, the Company has ownership and control of its assets, and the controlling shareholder does
not occupy its assets or funds.
In terms of organizational structure, the principal management organs and systems for production and
operation of the Company are independent.
In terms of finance, the Company has an independent financial organ, independent accounting system and
financial management mechanism, and has its own bank account.
III Horizontal Competition
□ Applicable ? Not applicable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
IV Annual and Extraordinary General Meetings of Shareholders Convened during the
Reporting Period
Investor
Meeting Type Date of the meeting Disclosure date Resolutions
participation ratio
See the
Announcement on
The 2022 Annual Annual General Resolutions of the
General Meeting of Meeting of 72.79% 26 May 2023 27 May 2023 2022 Annual
Shareholders Shareholders General Meeting
of Shareholders
(2023/No. 017)
with Resumed Voting Rights
□ Applicable ? Not applicable
V Directors, Supervisors and Senior Management
Inc
rea
se Decr
in ease Other
Reas
Openin the in the incre
Closing on
g cur curre ase/d
Gend Employment Start of office End of shareho for
Name Age Office title shareho ren nt ecrea
er status term office term lding share
lding t perio se
(share) chan
(share) per d (shar
ges
iod (shar e)
(sh e)
are
)
Secretary of the 28 January
CPC Committee 2022
Zeng Currently
Male 55 Incumbent
Congqin Chairman of the ongoing
Board
Deputy Secretary
of the CPC 2022
Jiang Committee Currently
Male 57 Incumbent
Wenge Vice Chairman ongoing
of the Board and 27 May 2022
General Manager
Member of the 30 December
CPC Committee 2020
Currently
Zhang Yu Male 49 Incumbent
Vice Chairman ongoing
of the Board
Fema Currently
Xu Bo 56 Director Incumbent 27 May 2022
le ongoing
Deputy Secretary
of the CPC 2021 Currently
Xiao Hao Male 47 Incumbent
Committee ongoing
Director 27 May 2022
Xie Male 64 Independent Incumbent 27 May 2022 Currently
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Zhihua Director ongoing
Independent Currently
Wu Yue Male 57 Incumbent 27 May 2022
Director ongoing
Hou Independent Currently
Male 68 Incumbent 27 May 2022
Shuiping Director ongoing
Luo Independent Currently
Male 54 Incumbent 27 May 2022
Huawei Director ongoing
Member of the 22 February
CPC Committee 2022
Currently
Liu Ming Male 53 Chairman of the Incumbent 6,065 6,065
ongoing
Supervisory 27 May 2022
Committee
Zhang Employee Currently
Male 58 Incumbent 27 May 2022 12,730 12,730
Qing Supervisor ongoing
Wu Employee Currently
Male 54 Incumbent 27 May 2022 40,988 40,988
Guoping Supervisor ongoing
Member of the
Yang Fema 23 May 2022 Currently
Yunxia le ongoing
Chief Engineer 27 May 2022
Member of the 22 February
CPC Committee 2022
Currently
Jiang Jia Male 49 Incumbent 11,841 11,841
Deputy General 1 February ongoing
Manager 2024
Xie 2 February Currently
Male 55 Acting CFO Incumbent 2024
Zhiping ongoing
Deputy General Currently
Yue Song Male 51 Incumbent 27 May 2022 9,819 9,819
Manager ongoing
Deputy General Currently
Li Jian Male 49 Incumbent 27 May 2022
Manager ongoing
Member of the
CPC Committee 25 September Currently
Zhang Deputy General 2023 ongoing
Male 54 Incumbent
Xin Manager
Currently
Board Secretary 19 April 2024
ongoing
Member of the 22 February
September
CPC Committee 2022
Fema Director and 25
Jiang Lin 44 Former 27 May 2022 September
le Deputy General
Manager
Board Secretary 2022 2024
Zhang
Male 54 Supervisor Former 27 May 2022 2 June 2023
Xin
Jiang Jia Male 49 Chief Economist Former 27 May 2022
Member of the 26 October
Xie CPC Committee 2022 2 February
Male 55 Former 2024
Zhiping 4 November
CFO 2022
Fema 2 February
Liang Li 53 Director Former 27 May 2022
le 2024
Deputy General 2 February
Liu Yang Male 45 Former 27 May 2022
Manager 2024
Total -- -- -- -- -- -- 97,337 0 0 0 97,337 --
Indicate whether any director, supervisor or senior management resigned before the expiry of their office
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
terms during the Reporting Period.
□ Yes ? No
Changes of directors, supervisors and senior management:
? Applicable □ Not applicable
Type of
Name Office title Date Reason
change
Deputy General Manager Appointed 25 September 2023
Appointed by the Board of
Zhang Board Secretary Appointed 19 April 2024 Directors
Xin
Having resigned for a job
Supervisor Former 2 June 2023
change
Director and Deputy General Manager Former 25 September 2023
Having resigned for a job
Jiang Lin
Board Secretary Former 19 April 2024 change
Having resigned for a job
Liang Li Director Former 2 February 2024
change
Having resigned for a job
Liu Yang Deputy General Manager Former 2 February 2024
change
Having resigned for a job
Jiang Jia Chief Economist Former 2 February 2024
change
Xie Dismissed by the Board of
CFO Former 2 February 2024
Zhiping Directors
Professional backgrounds, main work experience and current positions in the Company of the incumbent
directors, supervisors and senior management:
(1) Mr. Zeng Congqin, a doctoral degree holder and professorate senior economist. He began to work in July
Economic Development Zone. He once served as a member of the Standing Committee of the Changning County
CPC Committee, Director of the Publicity Department, and Executive Deputy County Chief of Changning County,
Director of the Investment Service Bureau of Yibin Lingang Economic Development Zone, Secretary of the Party
Leadership Group and Director of the Yibin Municipal Development and Reform Commission and Director of the
Municipal Price Bureau, Director of the Municipal Bureau of Energy, Secretary of the Cuiping District CPC
Committee, and Secretary of the Party Working Committee of Lingang Economic Development Zone. At present,
he serves as the Secretary of the CPC Committee and the Chairman of the Board of the Company, as well as the
Secretary of the CPC Committee and the Chairman of the Board of Wuliangye Group.
(2) Mr. Jiang Wenge, a master's degree holder and professorate senior economist. He began to work in
August 1985 and successively served in Peng'an County and Shunqing District of Nanchong City, Sichuan, the
Sichuan Provincial Development and Reform Commission, and the Welfare-to-work Office of Sichuan Province.
He once served as the Deputy Head of Shunqing District Government, Deputy Director of the Employment and
Income Distribution Office, Deputy Director of the Division of Rural Economy, and Director of the Division of
Rural Economy of Sichuan Provincial Development and Reform Commission, and the Deputy Director and
Primary Investigator of the Welfare-to-work Office of Sichuan Province. He now serves as the Deputy Secretary
of the CPC Committee, Vice Chairman of the Board, and General Manager of the Company.
(3) Mr. Zhang Yu, a doctoral degree holder. He began to work in July 1997 and successively served in the
Chengdu Education Bureau, Qingyang District Government and Xindu District Committee. He once served as
Secretary of CPC Committee, Director, and Party Group Secretary of the District Education Bureau, a member of
the Party Group of the District Government, Deputy District Chief, a member of the Standing Committee of
District Committee and Director of the Organization Department of the District Government, Deputy Secretary of
the CPC Committee of Wuliangye Group from April to December 2020, and Deputy Secretary of the CPC
Committee of the Company from December 2020 to December 2021. Currently, he is a member of the CPC
Committee and Vice Chairman of the Board of the Company.
(4) Ms. Xu Bo, a bachelor's degree holder. She began to work in December 1983 and successively served in
the Electronic Education Company of the Yibin Education Bureau and the Yibin City Bureau of Audit. She once
served as the Deputy Head, Head, and Deputy Director of the Yibin City Bureau of Audit. She now serves as a
Director of the Company, as well as a Director and the General Manager of Yibin Development Group.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(5) Mr. Xiao Hao, a master's degree holder. He began to work in July 1998. He successively served in the
Organization Department of the CPC Committee of Yibin County, the Organization Department of the CPC
Committee of Yibin City, and the Office of the CPC Committee of Yibin City. He successively served as the
Deputy Director of Municipal CPC Committee Office, Director of the Standing Committee Office of the
Municipal CPC Committee, and Deputy Secretary-General of the Municipal CPC Committee. He served as the
Deputy Secretary of the CPC Committee of Wuliangye Group from December 2020 to December 2021. He has
been the Deputy Secretary of the CPC Committee of the Company since December 2021, and the Deputy
Secretary of the CPC Committee and a Director of Wuliangye Group since March 2022. He is now a Deputy
Secretary of the CPC Committee and a Director of the Company.
(6) Mr. Xie Zhihua, a doctoral degree holder, professor, certified public accountant, and Expert of the Special
Government Allowances of the State Council. He began to work in June 1976 and successively served in Xiangxi
Autonomous Prefecture Commercial School, Beijing Business School, and Beijing Technology and Business
University. He once served as the Deputy Director, Director, Director of the Academic Affairs Department, and
Vice President of the Accounting Faculty of Beijing Business School, and a member of the CPC Committee and
Vice President of Beijing Technology and Business University. He now serves as an Independent Director of the
Company, a Professor of Beijing Technology and Business University, and an Independent Director of China Non-
ferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., in addition to being an Outside Director
of Sinochem Energy Co., Ltd., Yunnan Hongta Bank Co., Ltd., and Bank of Jiaxing Co., Ltd.
(7) Mr. Wu Yue, a doctoral degree holder and professor. He now serves as the Professor at the School of Law
of Southwestern University of Finance and Economics, and concurrently serves as the Vice President of the
Business Law Research Association of the Sichuan Law Society, Executive Director of China Business Law
Research Association, Arbitrator of China International Economic and Trade Arbitration Commission, and
Arbitrator of Chengdu Arbitration Commission. He is also an Independent Director of the Company, Chengdu
Corpro Technology Co., Ltd., and Sichuan MIngxing Electric Power Co., Ltd., as well as an Outside Director of
Sichuan Dandan Pixian Bean Paste Group Co., Ltd.
(8) Mr. Hou Shuiping, a doctorate degree holder, researcher and an expert entitled to special allowances from
the State Council. He took the posts of Dean of the Sichuan Academy of Social Sciences and Deputy Director of
the Decision-making Advisory Committee (Provincial Science and Technology Advisory Group) of the CPC
Sichuan Provincial Committee and the People's Government of Sichuan Province. At present, he serves as a
researcher and post-doctoral co-supervisor at the Sichuan Academy of Social Sciences. He is also an Independent
Director of the Company, Sichuan Yahua Industrial Group Co., Ltd., and Sichuan Shudao Equipment &
Technology Co., Ltd.
(9) Mr. Luo Huawei, a doctorate degree holder, professor, certified public accountant, and legal practitioner.
At present, he serves as a doctoral supervisor at Sichuan Agricultural University, and a Director of the Accounting
Society of Sichuan. He is also an Independent Director of the Company, an Outside Director of Ya'an
Development Investment Co., Ltd., an Independent Director of Sichuan Yahua Industrial Group Co., Ltd., and an
Independent Director of D&O Home Collection Group Co., Ltd.
(10) Mr. Liu Ming, a bachelor's degree holder, senior engineer of liquor brewing, and China Liquor Brewing
Master, national-level specially-invited Baijiu appraisal committee member. He began to worked in Wuliangye
distillery in December 1986 and once served as the Deputy Director and Director of the workshop, and
concurrently served as the Deputy Secretary of the Party Branch, Secretary of the Party Branch, President of the
Branch Labor Union, Secretary of the Party General Branch, General Manager and Chairman of Yibin
Changjiangyuan Liquor Co., Ltd., Assistant to the General Manager and Director of the Production Management
Department of the Company. He served as the Chief Engineer of the Company from July 2021 to March 2022. He
has been a member of the CPC Committee of the Company since February 2022. Currently, he is a member of the
CPC Committee and the Chairman of the Supervisory Committee of the Company.
(11) Mr. Wu Guoping, a bachelor's degree holder, auditor and senior sourcer. He began to work in August
Audit. He was transferred to the Company and served as the Deputy Director of the Audit Affairs Department in
May 2015, Employee Supervisor of the Company in June 2015, and Deputy Director of the Audit Department in
July 2015. He now serves as an Employee Supervisor and the Deputy Director of the Audit and Supervision
Department of the Company, as well as a Supervisor of Wuliangye Group.
(12) Mr. Zhang Qing, a college degree holder and senior brewing engineer. He began to work at the
Wuliangye distillery in January 1983. He took the posts of Leader and Technician of the Brewing Team of the
Workshop, Assistant Workshop Director, Assistant Head of the Production Management Department, Head of the
Control Room, President of the Branch Labour Union, Workshop Director, President of the Labour Union,
Supervisor, General Manager, and Director of Yibin Changjiangyuan Liquor Co., Ltd., and Deputy Head of the
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Production Management Department of the Company. At present, he serves as Employee Supervisor and Head of
the Production Management Department of the Company.
(13) Ms. Yang Yunxia, a bachelor's degree holder and Senior Political Mentor. She began to work at the
Wuliangye distillery in July 1991. She once held offices at Workshop 508, Workshop 513, the Audit Supervision
and Legal Affairs Department, and the Organization Department of the CPC Committee. She was Deputy
Secretary to the CPC Branch of Workshop 506 in August 2003 and Secretary of the CPC Branch of Workshop 506
in December 2003. Ms. Yang Yunxia was an Employee Representative Supervisor of the Company between June
July 2015. She started serving as the Head of the Mass Work Department of the Company in July 2015
(concurrently, she was Deputy Secretary to the CPC Xingwen Committee between March 2016 and June 2018).
She took the posts of Member of the CPC Committee, President of the Labour Union, and Head of the Mass Work
Department of the Company in June 2018, and of Member of the CPC Committee, Chairman of the Supervisory
Committee, and Head of the Mass Work Department of the Group in December 2020. At present, she is a Member
of the CPC Committee, the Chief Engineer and Food Safety Director of the Company.
(14) Mr. Jiang Jia, a bachelor's degree holder and senior economist. He began to work in Wuliangye distillery
in July 1997 and once served as the Deputy General of the Sales Department, Deputy General of the Brand Affairs
Department of Brand Distributors, Deputy Director and Director of the Strategic Development Department, and
Chairman of Wuliangye Health Wine Company. He has served as a member of the CPC Committee and Chief
Economist of Wuliangye Group since April 2020. He used to be the Chief Economist of the Company. At present,
he is a member of the CPC Committee and Deputy General Manger of the Company.
(15) Mr. Xie Zhiping, a master's degree holder. He began to work in August 1991. He took posts at the Yibin
Municipal Finance Bureau and Yibin Municipal Bureau of Statistics. He was a Member of the CPC Group and
Deputy Director of Yibin Municipal Finance Bureau, Secretary to the CPC Group and Director of the Yibin
Municipal Bureau of Statistics, Secretary to the CPC Group and Director of Yibin Municipal Finance Bureau, a
Member of the CPC Committee and Chief Financial Officer of Wuliangye Yibin Co., Ltd. He became a Member
of the CPC Committee and Chief Financial Officer of Wuliangye Group in February 2022. Formerly the Chief
Financial Officer of the Company, he now serves as the Acting Chief Financial Officer of the Company.
(16) Mr. Yue Song, a bachelor's degree holder and senior brewing technician. He started to work in the
Wuliangye Distillery in December 1995. He once served as the Deputy Director of the Office, Deputy Director of
the Office of the Board of Directors, Secretary of the CPC Branch, as well as Secretary of the CPC Branch and
President of the Branch Labor Union of Workshop 505 and Workshop 523 of the Company, General Manager and
President of the Branch Labor Union of Sichuan Wuliangye Culture Tourism Co., Ltd., Secretary of the Party
General Branch and Chairman of Yibin Changjiangyuan Liquor Co., Ltd., and General Engineer of Wuliangye
Group. He is now a Deputy General Manager and the Safety Director of the Company.
(17) Mr. Li Jian, a doctoral degree holder. He began to work in October 1995 and once served in the Housing
and Urban-Rural Development Bureau of Changning County, Education and Sports Bureau of Yibin City, and
Shunan Culture & Tourism Group. He once served as a member of the CPC Committee and Deputy General
Manager of Shunan Culture & Tourism Group. He is now a Deputy General Manager and the Environmental
Protection Director of the Company.
(18) Mr. Zhang Xin, a master's degree holder. With his career starting in August 1991, he used to serve in the
Yibin Bureau of Finance, and the Yibin State-owned Assets Supervision and Administration Commission. He once
was a Head of Section, Deputy Head of the Corporate Section, Full-time Deputy Secretary of the CPC Committee
and Head of the Asset Management Section of the Yibin Bureau of Finance. Also, he used to be a member of the
CPC Committee and Deputy General Manager of Yibin Development Group, as well as the Secretary of the CPC
Branch and Chairman of the Board of Sichuan Sanjiang Huihai Finance Leasing Co., Ltd. Currently, he is a
member of the CPC Committee, a Deputy General Manager, the Board Secretary, and a director-designate of the
Company.
Offices held concurrently in shareholding entities:
? Applicable □ Not applicable
Shareholding Start of office End of office Paid by the entity
Name Office held in the entity
entity term term or not
Secretary of the CPC
Zeng Congqin Wuliangye Group Committee and No
Chairman of the Board
Yibin Director and General
Xu Bo Yes
Development Manager
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Group
Deputy Secretary of the
Xiao Hao Wuliangye Group CPC Committee and No
Director
Offices held concurrently in other entities:
? Applicable □ Not applicable
Start of End of
Office held in the Paid by the entity
Name Other entity office office
entity or not
term term
Beijing Technology and Business
Professor Yes
University
China Non-ferrous Metal Industry's
Independent
Foreign Engineering and Construction Yes
Xie Zhihua Director
Co., Ltd.
Sinochem Energy Co., Ltd., Yunnan
Hongta Bank Co., Ltd., and Bank of Outside Director Yes
Jiaxing Co., Ltd.
Southwestern University of Finance
Professor Yes
and Economics
Chengdu Corpro Technology Co., Ltd.,
Independent
Wu Yue and Sichuan MIngxing Electric Power Yes
Director
Co., Ltd.
Sichuan Dandan Pixian Bean Paste
Outside Director Yes
Group Co., Ltd.
Research Fellow
Sichuan Academy of Social Sciences and Postdoctoral Yes
Co-supervisor
Hou Shuiping
Sichuan Yahua Industrial Group Co.,
Independent
Ltd., and Sichuan Shudao Equipment & Yes
Director
Technology Co., Ltd.
Sichuan Agricultural University Professor Yes
Ya'an Development Investment Co.,
Outside Director Yes
Luo Huawei Ltd.
Sichuan Yahua Industrial Group Co.,
Independent
Ltd., and D&O Home Collection Group Yes
Director
Co., Ltd.
Punishments imposed in the recent three years by the securities regulator on the incumbent directors,
supervisors and senior management as well as those who resigned in the Reporting Period:
□ Applicable ? Not applicable
Decision-making procedure, determination basis and actual payments of remunerations for directors,
supervisors and senior management:
(1) Decision-making procedure
In accordance with the relevant rules of the higher organization and the Company, the remuneration plan for
the senior management of the Company is formulated, then submitted to the Remuneration and Appraisal
Committee under the Board of Directors for review, and then finalized by the Board of Directors.
(2) Basis for the determination of remunerations
In accordance with the relevant rules, the remunerations for directors, supervisors and senior management are
determined upon appraisal.
(3) Actual payments
Part of the base pay is given on a monthly basis, and part of the performance-related pay is given within the
year.
Remunerations of directors, supervisors and senior management during the Reporting Period
Unit: RMB'0,000
Total before-tax Paid by any related
Name Gender Age Office title Employment remunerations party or not
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
status from the
Company
Zeng Congqin Male 55 Chairman of the Board Incumbent 61.83 No
Vice Chairman of the
Jiang Wenge Male 57 Board and General Incumbent 61.83 No
Manager
Vice Chairman of the
Zhang Yu Male 49 Incumbent 55.52 No
Board
Xu Bo Female 56 Director Incumbent 0 Yes
Xiao Hao Male 47 Director Incumbent 55.52 No
Xie Zhihua Male 64 Independent Director Incumbent 10 No
Wu Yue Male 57 Independent Director Incumbent 10 No
Hou Shuiping Male 68 Independent Director Incumbent 10 No
Luo Huawei Male 54 Independent Director Incumbent 10 No
Chairman of the
Liu Ming Male 53 Incumbent 75.52 No
Supervisory Committee
Wu Guoping Male 54 Employee Supervisor Incumbent 68.66 No
Zhang Qing Male 58 Employee Supervisor Incumbent 87.92 No
Yang Yunxia Female 52 Chief Engineer Incumbent 55.52 No
Deputy General Manager Incumbent
Jiang Jia Male 49 55.52 No
Chief Economist Former
Acting CFO Incumbent
Xie Zhiping Male 55 55.52 No
CFO Former
Yue Song Male 51 Deputy General Manager Incumbent 55.64 No
Li Jian Male 49 Deputy General Manager Incumbent 55.52 No
Deputy General Manager
Incumbent 13.97 No
Zhang Xin Male 54 and Board Secretary
Supervisor Former 0 Yes
Director, Deputy General
Jiang Lin Female 44 Manager and Board Former 52.56 No
Secretary
Liang Li Female 53 Director Former 0 Yes
Liu Yang Male 45 Deputy General Manager Former 55.52 No
Total -- -- -- -- 906.57 --
Notes: 1. Remunerations of directors, supervisors and senior management are accounted for and disclosed on
an accrual basis.
RMB200,000 from the government of Yibin City to support the development of the baijiu talent team.
Company in September 2023 and has been receiving remuneration from the Company since October.
VI Activities of Directors during the Reporting Period
Meeting Date of the meeting Disclosure date Resolutions
The Proposal on the Implementation of the Tenure
System and Contractual Management of the
The First Meeting of the Sixth
Board of Directors in 2023
on the Title of Exclusive Partner of Interactive Prizes
of the CCTV 2023 Spring Festival Gala were
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
approved.
The Proposal on the Revisions of the Systems for
The Second Meeting of the Major Decisions, Appointment and Removal of
Sixth Board of Directors in 22 February 2023 N/A Important Personnel, Arrangement of Major Projects
approved.
The Third Meeting of the Sixth
Board of Directors in 2023
The Fourth Meeting of the
Sixth Board of Directors in 27 April 2023 29 April 2023 See Announcement 2023/No. 004
The Proposal on the Donation Agreement between
The Fifth Meeting of the Sixth the Company and the Education Development
Board of Directors in 2023 Foundation of South China University of Technology
in Guangdong Province was approved.
The Sixth Meeting of the Sixth
Board of Directors in 2023
The Seventh Meeting of the
Sixth Board of Directors in 24 August 2023 26 August 2023 See Announcement 2023/No. 022
The Eighth Meeting of the
Sixth Board of Directors in 25 September 2023 See Announcement 2023/No. 025
The Ninth Meeting of the Sixth
Board of Directors in 2023
The 10th Meeting of the Sixth 9 December
Board of Directors in 2023 2023
The 11th Meeting of the Sixth 19-20 December 20 December
See Announcement 2023/No. 031
Board of Directors in 2023 2023 2023
The 12th Meeting of the Sixth 30 December
Board of Directors in 2023 2023
Attendance of directors at board meetings and general meetings of shareholders
Board The director
Total number
meetings Board Board failed to attend
of board Board General
attended by meetings meetings two
meetings the meetings meetings of
Director way of attended the director consecutive
director was attended on shareholders
telecommuni through a failed to board
supposed to site attended
cation or proxy attend meetings or
attend
circulation not
Zeng
Congqin
Jiang Wenge 12 2 10 0 0 No 1
Zhang Yu 12 2 10 0 0 No 1
Liang Li 12 2 10 0 0 No 1
Xu Bo 12 2 10 0 0 No 1
Xiao Hao 12 2 10 0 0 No 1
Jiang Lin 8 2 6 0 0 No 1
Xie Zhihua 12 0 12 0 0 No 1
Wu Yue 12 2 10 0 0 No 1
Hou
Shuiping
Luo Huawei 12 1 11 0 0 No 1
Explanation of why any director failed to attend two consecutive board meetings:
Not applicable.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Indicate whether any director raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
Indicate whether any recommendation from directors was adopted by the Company.
? Yes □ No
Explanation on adoption/rejection of recommendations of directors:
During the Reporting Period, in strict compliance with the applicable laws, regulations and the Articles of
Association, the directors of the Company performed their duties diligently, providing professional opinion or
recommendations for business decisions of the Company. They have played their part in protecting the legitimate
rights and interests of the Company and its shareholders.
VII Activities of Special Committees under the Board of Directors during the Reporting
Period
Numbe
Important
r of Particular
opinion Other
meetin Date of s about
Committee Members Contents and work
gs meeting objections
suggestion done
conven (if any)
s
ed
Studying the spirit of the Third Plenary
Session of the 12th CPC Sichuan
Provincial Committee, and the Action
Plan for Deepening and Upgrading the
Reform of State-owned Enterprises
Zeng Congqin (2023-2025)
The Jiang Wenge The committee mainly studied the
Strategy Zhang Yu 2 Opinion on Supporting the High-
Committee Xiao Hao Quality Development of Wuliangye
Xie Zhihua Group issued by the CPC Yibin
Municipal People's Government, and
received briefings on the progress of
the Company’s high quality and fast
growth programme.
The Zeng Congqin
Review of the 2023 budgeting plan
Comprehen Jiang Wenge 20230421 None None None
Result: approved
sive Budget Jiang Lin
Manageme Review of the 2023 budget adjustment
Zeng Congqin
nt 20231023 plan None None None
Jiang Wenge
Committee Result: approved
Urging the audit of the 2022 annual
financial statements
Reviewing the summary financial
written review opinion
Reviewing the 2022 annual financial
Zeng Congqin
Luo Huawei
The Audit review opinion
Xu Bo 6
Committee Reviewing the Proposal on the Re-
Wu Yue
appointment of the CPA Firm for 2023,
Hou Shuiping
the Summary of the Audit on the
Financial Statements and Internal
Control of 2022, the Independent
Auditor’s Reports on the Financial
Statements and Internal Control of
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Assessment Report, the Deposit and
Use of Raised Funds in 2022, and the
First Quarterly Report 2023
Result: approved
Reviewing the Interim Report 2023
Result: approved
Reviewing the Third Quarterly Report
Result: approved
Zeng Congqin Reviewing the Proposal on
The Jiang Wenge Adjustments to Directors of the Sixth
Nomination Hou Shuiping 1 20230922 Board of Directors, and the Proposal on None None None
Committee Luo Huawei Adjustments to Senior Management
Wu Yue Result: approved
Reviewing the settlement of senior
management’s 2021 annual
remunerations, the settlement of tenure
incentives for 2019-2021, and the
The 20230118 None None None
prepayment of part of the 2022 annual
Remunerati Wu Yue
performance-based remunerations for
on and Liang Li 2
some senior management
Appraisal Luo Huawei
Result: approved
Committee
Reviewing the proposed 2023
remuneration payouts for senior
management
Result: approved
VIII Activities of the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in the
Reporting Period.
□ Yes ? No
The Supervisory Committee raised no objections with respect to matters of the Company.
IX Employees
Number of in-service employees of the Company as the parent
at the period-end 16,911
Number of in-service employees of major subsidiaries at the
period-end 8,207
Total number of in-service employees at the period-end 25,118
Total number of paid employees in the Reporting Period 25,118
Number of retirees to whom the Company as the parent and its
major subsidiaries need to pay retirement pensions 317
Employees by function
Function Number of employees
Production 18,725
Sales 1,181
Technical 4,030
Financial 195
Administrative 987
Total 25,118
Employees by educational background
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Educational background Number of employees
Junior college and beyond 7,090
High school to junior college (exclusive) 10,926
Middle school and below 7,102
Total 25,118
The remuneration policies implemented by the Company are the Trial Measures for the Management of Total
Wages of Municipal Supervised Enterprises in Yibin City (YGZW [2019] No. 205), and the Company's Interim
Provisions on Wage Management and the Trial Measures for the Management of Total Wages of Subsidiaries.
In 2023, trainings organized by the Company centered on the strategic objective of high quality development,
focused on the building of the talent team and strengthened the foundation of innovation and development. The
Company carried out hierarchical and classified trainings with rich contents and by flexible means, enhancing the
planning, pertinency and effectiveness of training.
In 2024, based on the new development stage, the Company will vigorously promote internal education. We
plan to conduct 618 sessions of training through on-the-job training, skills training, and study for the promotion of
professional titles. It is expected to train more than 85,000 persons, cultivating talents in innovative, compound,
and applied fields that meet the development needs of Wuliangye through comprehensive, multi-angle, and
advanced scientific paths.
? Applicable □ Not applicable
During 2023, the Company and its major majority-owned subsidiaries outsourced carriage, loading and
unloading, temporary work, etc., for which they paid RMB317 million in total.
X Profit Distributions in the Form of Cash and/or Shares
The formulation, implementation and amendments to the profit distribution policy, especially the cash
dividend policy, in the Reporting Period:
? Applicable □ Not applicable
According to the 2022 Final Dividend Plan approved at the 2022 Annual General Meeting of Shareholders,
the Company declared a cash dividend of RMB37.82 (tax inclusive) per 10 shares to shareholders based on the
total 3,881,608,005 shares held by them. The independent directors issued their opinion on the final dividend plan,
which was approved by the Board of Directors and then at the general meeting of shareholders. This final
dividend plan has been carried out.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting of shareholders
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
If the Company has no dividend plan, it should disclose the
specific reasons and the next steps it intends to take to enhance N/A
investor returns
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully Yes
protected
In case of adjusting or altering the cash dividend policy, the
conditions and procedures involved are in compliance with Yes
applicable regulations and transparent
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Indicate whether the Company fails to put forward a cash dividend plan despite the facts that the Company
has made profit in the Reporting Period and the profit of the Company as the parent distributable to shareholders
is positive.
□ Applicable ? Not applicable
Final dividend plan for the Reporting Period:
? Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 46.70
Share base (share) 3,881,608,005
Cash dividends (RMB) (tax inclusive) 18,127,109,383.35
Cash dividends in other forms (such as share repurchase)
(RMB)
Total cash dividends (including those in other forms) (RMB) 18,127,109,383.35
Distributable profit (RMB) 58,190,914,311.61
Total cash dividends (including those in other forms) as % of
the total profit to be distributed
Applicable cash dividend policy
Where the Company is at a mature stage of development and has any substantial spending plan, total cash dividends shall account for
at least 40% of the total profit to be distributed.
Final dividend plan in detail
As the 2023 final dividend plan, the Company intends to pay a cash dividend of RMB46.70 (tax inclusive) per 10 shares to
shareholders based on the total share capital at the record date for the dividend payout, with the total amount to be distributed
amounting to RMB18,127,109,383.35; and no bonus issue will be carried out, either from profit or capital reserves.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
? Applicable □ Not applicable
Not applicable.
Equity incentives received by directors and senior management:
□ Applicable ? Not applicable
Appraisal mechanism and incentives for senior management:
See “Part IV, V, 3. Remunerations of Directors, Supervisors and Senior Management” herein.
? Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
As % of the total
Scope of Number of Total number of shares
Change share capital of the Funding source
employees employees held under the plans
Company
Employees
covered by the 2,428 23,696,280 None 0.61% Self-pooled
plans
Shareholdings of directors, supervisors and senior management under employee stock ownership plans
during the Reporting Period:
In April 2018, the Company carried out an employee stock ownership plan through a private placement, and
certain in-service directors, supervisors and senior management participated in the employee stock ownership plan.
By the end of the Reporting Period, non-transaction transfers had been completed.
Change of the asset management agency during the Reporting Period:
□ Applicable ? Not applicable
Equity changes incurred by the disposal of shares by any holder, etc. during the Reporting Period:
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
□ Applicable ? Not applicable
Exercise of shareholder rights during the Reporting Period:
□ Applicable ? Not applicable
Other information about the employee stock ownership plans during the Reporting Period:
? Applicable □ Not applicable
As approved at the 12th Meeting of the Sixth Board of Directors in 2023, the duration of the employee stock
ownership plan has been agreed to be extended to 31 December 2026.
Changes to members of the management committees of employee stock ownership plans:
□ Applicable ? Not applicable
The financial impact of employee stock ownership plans on the Company and the relevant accounting
treatments during the Reporting Period:
□ Applicable ? Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable ? Not applicable
Other information: None.
□ Applicable ? Not applicable
XII Establishment and Implementation of Internal Controls during the Reporting Period
In 2023, in accordance with the applicable laws and regulations such as the Company Law of the People’s
Republic of China, the Basic Criteria of Enterprise Internal Control jointly promulgated by five ministries and
commissions including the China Securities Regulatory Commission, and the Guidelines on the Compliance of
the Operation of Listed Companies issued by the Shenzhen Stock Exchange, the Company continuously
established institutional norms for Party building, business operation, risk control and post-event supervision, and
continued to improve the internal control system. The Company improved the content related to Party building in
its Articles of Association. Major operational and management matters are subject to pre-study by the Party
Committee, and the Board of Directors or the management team makes decisions according to their respective
powers and prescribed procedures, fully exerting the leadership role of the Party Committee in setting directions,
overall planning, and ensuring implementation.
To further strengthen the establishment of the Company's internal control system and ensure the
comprehensiveness and applicability of the Company's internal control manual, each unit of the Company updated
relevant internal control measures in accordance with national regulations and business development needs. After
review, in 2023, the Company updated 23 internal control management regulations, abolished 2, and added 34
new ones. As per the relevant requirements, the Company conducts internal control self-assessment with full
participation every year. It set up steering groups for internal control self-assessment to guide a total of 57 units
including workshops, functional departments and subsidiaries to carry out internal control self-assessment work
and at the same time, set up groups for random inspection of internal control to conduct random inspection on the
construction and implementation of the Company's internal control system, focused on major business segments
such as procurement, sales, and production, evaluated the rationality of the design and the effectiveness of the
operation of the internal control system, so as to continuously optimized internal control. The evaluation results
showed that no material and significant deficiency was identified in the internal control system.
In the future, the Company will continue to strengthen internal control training, reinforce the awareness of
compliance in operation, enhance the risk prevention capability and effectively promote the steady
implementation of its strategies.
□ Yes ? No
XIII Management and Control of Subsidiaries during the Reporting Period
None.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
XIV Assessment Report or Independent Auditor’s Report on Internal Control
Date of full disclosure of the internal control assessment report 29 April 2024
Index of full disclosure of the internal control assessment report http://www.cninfo.com.cn
Ratio of the total assets of the organizations included in the assessment to
the Company's consolidated total assets
Ratio of the operating revenue of the organizations included in the
assessment to the Company's operating revenue in the consolidated 100.00%
financial statements
Deficiency identification criteria
Category Financial report Non-financial report
Company of the financial statement which have documents. (2) unscientific enterprise decision-
been published. (2) major misstatements found making procedure, such as wrong decision,
by the external auditor in current financial which causes failure of major transactions. (3)
statements which have not been identified. (3) loss of management personnel or technician of
corrupt practice of directors, supervisors, and important posts. (4) lack of institutional control
officers found by the external auditor. (4) or systematic failure of the institution for
ineffective supervision of internal control by the important businesses, and existing but ineffective
Company's internal audit department. (5) operation of institutional guidance for internal
material deficiencies previously found but were control of important economic business. (5)
not corrected within a reasonable period or were failure to correct material deficiencies within a
ineffectively corrected. reasonable period.
Qualitative criteria
and apply accounting policies in accordance reaching or exceeding the level of materiality but
with generally accepted accounting policies. (2) should be noticed by the Board of Directors and
failure to effectively control irregular (non- the management in nature. (2) individual events
repeating) or complicated transactions. (3) criticized by government departments, causing
failure to effectively control the anti-corrupt moderate negative influence on reputation of the
work. (4) ineffective internal control over the Company. (3) violation of internal rules and
financial report at the end of the period. regulations of the enterprise and causing losses.
material deficiencies and significant or system.
deficiencies are recognized as general 3. General deficiencies: deficiencies in internal
deficiencies. control other than material deficiencies and
significant deficiencies are general deficiencies.
amount >3% of total operating revenue;
misstatement amount >10% of net profit;
misstatement amount >3% of total assets.
operating revenue < misstatement amount ≤3% profit ≥5%.
of total operating revenue; 5% of net profit < 2. Significant deficiencies: 3%≤ proportion of
Quantitative criteria
misstatement amount ≤10% of net profit; 1% of loss to net profit <5%.
total assets < misstatement amount ≤3% of total 3. General deficiencies: proportion of loss to net
assets. profit <3%.
≤1% of total operating revenue; misstatement
amount ≤5% of net profit; misstatement amount
≤1% of total assets.
Number of material deficiencies
in financial reports
Number of material deficiencies
in non-financial reports
Number of significant
deficiencies in financial reports
Number of significant
deficiencies in non-financial 0
reports
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
? Applicable □ Not applicable
Opinion paragraph
Sichuan Huaxin (Group) CPA (LLP) is of the opinion that the Company maintained, in all material respects, effective internal
control over financial reporting as of 31 December 2023, based on the Basic Rules on Enterprise Internal Control and other
applicable regulations.
Report disclosed or not Disclosed
Disclosure date 29 April 2024
Index to the disclosed report http://www.cninfo.com.cn
Type of opinion Unmodified unqualified opinion
Material defects in internal control
N/A
not related to financial reporting
Indicate whether any modified opinion is expressed in the Independent Auditor’s Report on Internal Control.
□ Yes ? No
Indicate whether the Independent Auditor’s Report on Internal Control is consistent with the internal control
self-assessment report issued by the Company’s Board of Directors.
? Yes □ No
XV Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
Completed.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate whether the Company or any of its subsidiaries was identified as a major polluter by environmental
authorities.
? Yes □ No
The Company has identified 204 laws, regulations, rules, and standards on environmental protection, such as
the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China
on Promoting Clean Production, the Law of the People's Republic of China on Water Pollution Prevention and
Control, the Law of the People's Republic of China on Atmospheric Pollution Prevention and Control, the Law of
the People's Republic of China on the Prevention and Control of Solid Waste Pollution, the Discharge Standard of
Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry, the Technical Specifications for Brewing
Industry Wastewater Treatment, and the Discharge Standard of Water Pollutants in the Minjiang and Tuojiang
River Basis, formulated 16 policies on corporate environmental protection management, and developed the
relevant internal control standards Brewery Wastewater Discharge Standards, which are stricter than the statutory
requirements. And the Company ensures that all environmental protection concepts and requirements are
implemented into every aspect of daily production and operation activities.
The Company was granted the pollutant discharge license valid between November 2019 and November
and expansion projects of the Company all met the requirements of laws and regulations, such as the national
environmental protection law and the environmental impact assessment law, went through the environmental
impact assessment and approval process before commencement, and carried out environmental protection
acceptance after completion. Additionally, all pollution governance facilities ran stably, and pollutants were
discharged in compliance with standards, satisfying the requirement for total emission control.
N
u
m
be
Name r Approv
Type
of the Way of Total ed total Exce
of Major Distribution of Discharge Governing
Comp of di discharge dischar ssive
major pollut discharge concentration/inte discharge
any or discha sc (metric ge disch
pollut ants outlets nsity standards
subsid rge ha ton) (metric arge
ants
iary rg ton)
e
ou
tle
ts
COD 38.01mg/l 105.37 132 None
Amm Table 1 of the
onia Discharge
Discharge 1.58mg/l Standard of 1.77 9.9 None
nitrog
Water en Direct outlets at Water Pollutants
pollut Total discha 1 Wuliangye in the Minjiang
The ants nitrog rge Ecological 13.67mg/l and Tuojiang 30.61 49.5 None
Comp en Wetland River Basis
any Total (DB51/2311-
phosp 0.45mg/l 2016) 0.88 1.65 None
horus
Organ Natural gas Table 3 of the
Air Partic boilers (Phase I)
ized 0.32 mg/m? Emission 0.17 N/A None
pollut ulate 18 1#-9#
and Standard of Air
ants matter
interm Natural gas 0.31mg/m? Pollutants for 0.18 8.88 None
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
ittent boilers (Phase Coal-burning
discha II) 10#-15# Oil-burning
rge Natural gas Gas-fired Boiler
boilers (Phase 0.49mg/m? (GB13271- 0.06 3.54 None
III) 16#-18# 2014)
Hot water
boilers 1#-5#
Broken leaven
outlets 1#-20#
Grain Table 2 of the
processing Integrated
outlets Emission
Natural gas Pollutants
Natural gas
boilers (Phase I) 2.05mg/m? 1.38 N/A None
Organ Natural gas
ized 18 boilers (Phase 2.25 mg/m? 0.93 3.72 None
Air Sulfur and II) 10#-15#
pollut dioxid interm Natural gas
ants e ittent boilers (Phase 1.83mg/m? 0.37 1.47 None
discha III) 16#-18#
rge Hot water Table 3 of the
Not detected Emission 0.0004 0.15 None
boilers 1#-5#
Hot water
Not detected Pollutants for 0.0005 N/A None
boilers 6#-10#
Coal-burning
Natural gas
Oil-burning
boilers (Phase I) 76.91mg/m? 47.39 92.5 None
Gas-fired Boiler
(GB13271-
Organ Natural gas
ized 18 boilers (Phase 79.90mg/m? 33.49 50.3 None
Air and II) 10#-15#
Oxyni
pollut interm Natural gas
tride
ants ittent boilers (Phase 74.75mg/m? 11.26 20.1 None
discha III) 16#-18#
rge Hot water
boilers 1#-5#
Hot water
boilers 6#-10#
(1) The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone in
the Jiangbei industrial park, using biochemical treatment and Fenton treatment technology for wastewater
treatment, with a daily capacity of 10,000 tons. The advanced treated tailwater in compliance with the applicable
standards is discharged after being further purified by ecological wetlands. The system is functioning normally.
(2) At present, the Company has built 18 20t/h natural gas boilers in the Jiangbei industrial park and put them
into operation, which adopt the advanced low-NOx combustion technology from Germany. The system is
functioning normally. The leaven production line and the grain processing production line are equipped with bag-
type dust collectors, which are also functioning normally.
In December 2023, the Company formulated and issued the Contingency Plan on Unexpected Environmental
Events in Yibin City Wuliangye Industrial Park, Contingency Plan on Unexpected Environmental Events of
Wuliangye Yibin Co., Ltd., Contingency Plan on Unexpected Environmental Events of Wuliangye Yibin Co., Ltd.
(Special Plan for Baijiu Storage Tanks), and Contingency Plan on Unexpected Environmental Events of
Wuliangye Yibin Co., Ltd. (Special Plan for Wastewater). Concurrently, updates were made to the risk assessment
reports and environmental contingency resource survey reports for environmental emergencies.
In strict compliance with the Self-monitoring and Information Disclosure Measure for National Key
Monitoring Enterprises (Trial) (H.F. [2013] No. 81) and the emission permits, the Company discloses its self-
monitoring plans, annual reports and self-monitoring data to the public on the national pollutant source monitoring
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
information management and sharing platform. A total of 217,300 self-monitoring data were published from
January to December 2023.
The Company spent a total of approximately RMB250 million on environmental protection projects and
pollution control facilities and paid environmental protection tax of RMB567.7 thousand.
? Applicable □ Not applicable
The Company uses biogas generated from wastewater treatment to generate electricity with approximately
approximately 3,806 tons.
None.
In strict compliance with the Administrative Measures for the Legal Disclosure of Enterprise Environmental
Information (Order No. 24 of the Ministry of Ecology and Environment), the Company disclosed environmental
information through the Management System of Sichuan Province for the Legal Disclosure of Corporate
Environmental Information. In 2023, a total of five interim reports were disclosed, primarily involving changes in
ecological and environmental administrative permits.
(1) The Company conducted internal audits of the environmental management system and energy
management system. In accordance with the requirements of the management systems, a third-party organisation
was hired to conduct external supervisory audits of the Company's energy management system and environmental
management system, and certificates were obtained.
(2) The Company conducted internal checks on greenhouse gas emissions in 2023.
II Corporate Social Responsibility (CSR)
For details, please refer to the Environmental, Social and Governance Report 2023 disclosed by the
Company on 29 April 2024.
III Efforts in Poverty Alleviation and Rural Revitalization
fronts and a pivotal year for implementing the "14th Five-Year Plan". As a large state-owned enterprise, in
accordance with provincial and municipal arrangements, the Company supported and assisted Litang County in
Ganzi Prefecture and provided paired assistance to Yingxiong Village, Qingping Yi Ethnic Township, Pingshan
County, Yibin City. The Company's Party Committee resolutely fulfilled its political responsibilities, continuously
improved assistance mechanisms, specifically studied, researched, and deployed assistance work, and members of
the leadership team conducted several in-depth investigations and guidance visits to the assisted areas. Solid
progress was made in assistance matters, earning recognition as the "Best Practice Case in Rural Revitalisation"
by the Listed Companies Association and being selected as a case for the CCTV Global Social Responsibility
Rural Revitalisation Exhibition. The assisting officials were honoured as outstanding resident village work team
members in the province and outstanding individuals in ethnic unity in the city, contributing to the successful
establishment of "Civilised Demonstration Villages", "Six No" Safe Villages, advanced collective units in Party
building work, top ten villages in collective economic development, advanced collective units in educational work,
and advanced collective villages in rural revitalisation.
(I) Strengthened base construction and the effective development of featured industries
Firstly, the Company established a high-mountain specialty tea base. In Pingshan County, the Company,
based on the local industrial foundation and the development aspirations of the masses, donated funds for
industrial development and fully established a 200-mu "High-mountain Organic Tea Garden Demonstration Base".
In 2023, 350,000 tea seedlings were planted, forming a radiation belt for the high-mountain tea industry. Secondly,
the Company constructed highland fruit and vegetable bases. In Litang County, the Company fully stimulated the
industrial hematopoietic function of the assisted villages, strengthened the standardised operation and
management of Wuliangye Polar Fruit and Vegetable (Mushroom) Base, orderly advanced production and supply,
cooperated with the "Hema Fresh" platform to expand market sales channels, and the base's production drove
local employment for 25 people. The “Vegetable Basket” Vegetable Supply Base continued its project
improvement efforts in 2023, upgrading 25 facility vegetable greenhouses, enhancing water and fertilizer
integration facilities, constructing a 200-square-meter agricultural product sorting centre, and supporting
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
refrigeration equipment.
(II) Conducted consumption assistance for sustainable income increase among poverty-alleviated
masses
Firstly, the Company promoted internal sales. In 2023, the Company effectively organised events such as the
Spring Festival centralised procurement and agricultural special sales, contributing to a total sales revenue of over
RMB14.3 million for local products throughout the year. This directly boosted the collective economic income of
Hero Village in Pingshan County by over RMB1.9 million, with an economic net profit of nearly RMB200,000.
Additionally, Mayan Village in Litang County achieved sales revenue of over RMB2.6 million, with dividends for
the masses exceeding RMB210,000. Secondly, the Company helped to expand external markets. Adhering to
market orientation, leveraging the Company's brand advantages and channel strengths, through the external and
internal connection and online and offline combination, consumption assistance became an important "engine" for
rural revitalisation and common prosperity. At the Rural Revitalisation Technology and Skills Competition Trade
Show for Special Agricultural Products and Sichuan Goods E-commerce Festival, the Company promoted and
sold assisted products such as Litang County's mushrooms, honey from Pingshan County, and bamboo shoots. In
Litang County, the Company established the country's first organic Tibetan mushroom "Hema Village". The sales
revenue of Tibetan mushrooms in Hema MAX stores nationwide exceeded RMB1.7 million, both online and
offline.
(III) Strengthened organisational construction for solid rural governance
Firstly, the Company consolidated the Party branch pairing. Adhering to high-quality Party building leading
grassroots governance efficiency, the Company's Cultural and Tourism Company Party General Branch under the
Party Committee paired with the Naisha Village Party Branch in Mula Town, Litang County, for mutual
construction. A normalised Party building guidance group was stationed in the village, supporting primary-level
Party building, reserve force cultivation, and capacity enhancement. Efforts were made to jointly build
organisational positions, share Party member education, coordinate activity organisation, jointly serve the people,
and operate an efficient mechanism for scientific development and mutual benefits. Secondly, the Company
strengthened position construction. The Company's resident work team coordinated special funds of over RMB0.3
million for assistance, upgrading the Hero Village Party building position, improving its functions, and striving to
build a county-level Party building work demonstration site. The assisting officials strictly implemented the
regulations of "Three Sessions and One Class", democratic life meetings, and heart-to-heart talks, helping to
cultivate active Party members in assisted villages, develop young Party members, and reserve backup cadres,
further addressing the aging issue among rural Party members, laying a solid foundation for the "two committees"
to play their role as strongholds.
(IV) Concentrated on education and training for strengthening intellectual support
Firstly, the Company supported educational assistance. The Company continued to organise the "Wuliangye
Education Fund" educational aid activity, allocating RMB2 million to reward and support students and educators
in Yibin City, contributing to the local education sector's development with practical actions. Special educational
aid funds were distributed to 41 disadvantaged college students in Qingping Yi Autonomous Township, Pingshan
County and 20 in Litang County, supporting them in pursuing their dreams. A donation of RMB60,000 was made
to provide nearly 300 students at Qingping Yi Ethnic Starbase Primary School with compassionate student
assistance packages. Extensive efforts were made to mobilise social forces, organising caring activities at Starbase
School in Pingshan County and donating over 2,500 sets (pieces) of study and living materials worth
approximately RMB250,000. Secondly, the Company implemented rural talent training. Normalised activities
such as farmer and herder night schools and technical training were conducted more than 20 times, covering over
(V) Improved public services and enhanced management efficiency
Firstly, the Company improved facility construction. With over RMB9 million in fiscal appropriations and
company donations, efforts were made to widen, upgrade, and harden two village roads, and maintain and manage
basic supporting facilities such as water, electricity, networks, and pipelines in assisted villages, addressing local
infrastructure shortcomings. Secondly, the Company provided assistance to the needy. Resident officials actively
coordinated assistance, arranging subsidies for over 30 migrant workers, securing industrial development funds
for 25 impoverished households to develop industries such as farming and animal husbandry. Comfort packages
and condolences worth over RMB100,000 were distributed to elderly, disabled, and left-behind children. Over 20
disputes and practical issues were resolved for the people. Thirdly, the Company enhanced emergency response
capabilities. By establishing fire emergency firefighting teams, flood control emergency groups, and earthquake
relief emergency rescue teams in assisted villages, corresponding emergency plans were formulated. Regular
disaster prevention and mitigation drills were organised for villagers, and various emergency equipment and
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
materials, totaling 342 sets (pieces), were donated by the Company's basic militia team, further enhancing the
emergency response capabilities of assisted villages.
(VI) Promoted civilised rural customs and continuous progress in spiritual civilisation
Firstly, the Company supported ethnic cultural project construction. In 2023, the Company donated RMB1
million to support the construction of the "Wuliangye Torch Square" in Qingping Yi Autonomous Township,
enriching the cultural life of the masses, fostering an atmosphere of diligence and enterprising spirit, and
prospering rural culture. This aimed to cultivate a civilised village atmosphere, good family ethics, and simple
folk customs, striving to build a benchmark for Yi culture revitalisation. Secondly, the Company carried out
civilised rural activities. In the assisted areas, extensive campaigns promoting civilised rural customs were carried
out, actively promoting the selection of good deeds and morality, clean family ethics, civilised families, and
exemplary individuals, inheriting and promoting excellent traditional customs, curbing negative practices, and
rectifying vices such as pornography, gambling, and drugs, guiding the masses to create a happy life through hard
work. Last but not least, the Company facilitated civilization with its corporate culture. It encouraged villagers
from the assisted villages to go to Wuliangye. Additionally, Wuliangye capitalized on the cultivation methods of
the corporate culture to help the assisted villages refine and develop values and cultures that have a rich rustic
flavour and will inspire people to work hard. Moreover, rustic culture publicity platforms were established to
guide the abolishment of outmoded conventions and customs through healthy corporate culture.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part VI Significant Events
I Fulfillment of Undertakings
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
? Applicable □ Not applicable
Based on their confidence in the Company's prospects and recognition of its long-term investment value,
Yibin Development Holding Group Co., Ltd. and Sichuan Yibin Wuliangye Group Co., Ltd. have voluntarily
undertaken not to reduce their shareholdings in the Company in any way within one year from 24 August 2023,
and the undertakings are being honoured continuously.
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable ? Not applicable
II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its Related
Parties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees for External Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
IV Statement Made by the Board of Directors Regarding the Latest “Modified Opinion” of an
Independent Auditor on Financial Statements
□ Applicable ? Not applicable
V Statements Made by the Board of Directors, the Supervisory Committee and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable ? Not applicable
VI Changes to Accounting Policies and Estimates and Correction of Material Accounting
Errors Compared with Last Year
? Applicable □ Not applicable
For details, see “28. Changes to Significant Accounting Policies and Estimates” under “V Significant
Accounting Policies and Accounting Estimates” of “Part X”.
VII Changes to the Scope of Consolidated Financial Statements Compared with Last Year
? Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in 2023.
As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, the
Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has
incorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’an
Plastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’an
Plastic.
VIII Appointment and Dismissal of CPA Firm
Current CPA firm:
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Name of the domestic CPA firm Sichuan Huaxin (Group) CPA (LLP)
The Company’s payment to the domestic CPA firm
(RMB’0,000)
How many consecutive years the domestic CPA firm has
provided audit service for the Company
Names of the certified public accountants from the domestic
Li Wulin, Ye Juan, and Luo Guiqiu
CPA firm writing signatures on the independent auditor’s report
Li Wulin: 3 years
How many consecutive years the certified public accountants
Ye Juan: 4 years
have provided audit service for the Company
Luo Guiqiu: 3 years
Indicate whether the CPA firm was changed for the Reporting Period.
□ Yes ? No
CPA firm appointed for the audit of internal control, as well as financial advisor or sponsor appointed:
? Applicable □ Not applicable
The Company re-appointed Sichuan Huaxin (Group) CPA (LLP) as the independent auditor for internal
control of the Company in 2023, with a payment of RMB600,000.
IX Possibility of Delisting after the Disclosure of this Report
□ Applicable ? Not applicable
X Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XI Significant Legal Matters
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XII Penalties and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XIII Credit Standings of the Company as well as Its Controlling Shareholder and Actual
Controller
? Applicable □ Not applicable
The Company as well as its controlling shareholder and actual controller were in good credit standing during
the Reporting Period.
XIV Significant Related-Party Transactions
? Applicable □ Not applicable
See “5. Related-Party Transactions” under “XIII Related Parties and Related-Party Transactions” of Part X.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
? Applicable □ Not applicable
Making deposits:
Upper limit Amount incurred in the current
of daily Opening period
Related Relationsh Range of Closing balance
deposit balance Total amount Total amount
party ip interest rate (RMB’0,000)
(RMB’0,00 (RMB’0,000) deposited withdrawn
Wuliangye
Group Associate 4,790,000 0.42%～3.5% 3,504,433.17 2,190,976.19 1,665,455.61 4,029,953.75
Finance
Note: The amount incurred in the current period is presented on a net basis, which means such transactions
are eliminated as the same company withdrawing a deposit and making another deposit of a different kind, or
companies included in the consolidated financial statements making transfers via Wuliangye Group Finance.
Receiving loans:
The Company received no loans from Wuliangye Group Finance during the Reporting Period.
Receiving credit (inclusive of discounting) or other financial services:
Amount incurred
Related party Relationship Type of business Line (RMB’0,000)
(RMB’0,000)
Wuliangye Group
Associate Receiving credit 1,000,000 117,410.43
Finance
Note: On 19 April 2023, the Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (Wuliangye
Group Finance) signed a supplementary agreement to the Financial Service Agreement, agreeing to continue to
implement in 2023 “the Financial Service Agreement signed between the Company and Wuliangye Group Finance
on 2 April 2021”, i.e. the daily total balance of outstanding loans and unused credit with Wuliangye Group
Finance shall not exceed RMB10 billion in 2023.
The “amount incurred” in the Reporting Period includes the discounted bank acceptance bills of
RMB536.1401 million with Wuliangye Group Finance (undue bank acceptance bills as of 31 December 2023:
RMB69.75 million) and the bank acceptance bills of RMB637.9642 million issued by Wuliangye Group Finance
(undue bank acceptance bills as of 31 December 2023: RMB466.5011 million).
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XV Significant Contracts and Execution
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(1) Cash Entrusted for Wealth Management
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable ? Not applicable
No such cases in the Reporting Period.
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
□ Applicable ? Not applicable
No such cases in the Reporting Period.
XVII Significant Events of Subsidiaries
? Applicable □ Not applicable
In order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in 2023.
As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, the
Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has
incorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’an
Plastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’an
Plastic.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part VII Share Changes and Shareholder Information
I Share Changes
Unit: share
Before Increase/decrease in the current period (+/-) After
B
on
us
Bonus
iss
As % of issue As % of
Number of New ue Subt Number of
total from Other total
shares issue fro otal shares
shares capital shares
m
reserves
pr
ofi
t
I Restricted shares 82,098 0.00% 0 0 82,098 0.00%
state
owned corporations
domestic investors
Of which: Shares held
by domestic corporations
Shares held
by domestic individuals
overseas investors
Of which: Shares held
by overseas corporations
Shares held
by overseas individuals
II Unrestricted shares 3,881,525,907 100.00% 0 0 3,881,525,907 100.00%
ordinary shares
foreign shares
shares
III Total shares 3,881,608,005 100.00% 3,881,608,005 100.00%
Reasons for share changes:
□ Applicable ? Not applicable
Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
□ Applicable ? Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the latest
accounting period, respectively:
□ Applicable ? Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be
disclosed:
□ Applicable ? Not applicable
□ Applicable ? Not applicable
II Issuance and Listing of Securities
□ Applicable ? Not applicable
□ Applicable ? Not applicable
□ Applicable ? Not applicable
III Shareholders and Actual Controller
Unit: share
Number
of
Number of
ordinary
preference Number of preference
sharehold
shareholders shareholders with resumed
Number of ordinary ers at the
with resumed voting rights at the month-
shareholders at the 648,597 month- 568,852 0 0
voting rights end prior to the disclosure
period-end end prior
at the period- of this Report (if any) (see
to the
end (if any) note 8)
disclosure
(see note 8)
of this
Report
Shares in
Nature Sharehold Increase/decre Restri pledge, marked
Total shares
of ing ase in the cted Unrestricted or frozen
Name of shareholder held at the
sharehol percentag Reporting shares shares held
period-end Shar
der e Period held Status
es
State-
Yibin Development
owned
Holding Group Co., 34.43% 1,336,548,020 1,336,548,020
corporat
Ltd.
ion
State-
Sichuan Yibin
owned
Wuliangye Group Co., 20.40% 791,823,343 791,823,343
corporat
Ltd.
ion
Oversea
Hong Kong Securities
s
Clearing Company 4.51% 174,889,667 -52,677,563 174,889,667
corporat
Limited
ion
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
China Securities
Finance Corporation Other 2.38% 92,385,936 92,385,936
Limited
Bank of China Limited
－China Merchants
China Securities Baijiu
Other 1.47% 57,117,979 3,304,915 57,117,979
Index Classification
Securities Investment
Fund
State-
Central Huijin Asset owned
Management Co., Ltd. corporat
ion
Bank of China Limited
－E Fund Blue Chip
Selected Mixed Other 0.76% 29,380,000 -1,320,000 29,380,000
Securities Investment
Fund
China Life Insurance
Company Limited－
Traditional－General Other 0.61% 23,528,731 2,203,294 23,528,731
Insurance Product-
Industrial and
Commercial Bank of
China Limited－
Invesco Great Wall Other 0.47% 18,429,500 -3,803,600 18,429,500
Newly Growth Mixed
Securities Investment
Fund
Industrial and
Commercial Bank of
China Limited -Huatai
Bairui CSI 300 Traded Other 0.38% 14,612,209 6,648,608 14,612,209
Open-ended Index
Securities Investment
Fund
Strategic investor or general
corporation becoming a top-10
N/A
shareholder in a rights issue (if any)
(see note 3)
Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of Yibin
Related or acting-in-concert parties
Development Group. And the Company is not aware of any related or acting-in-concert parties
among the shareholders above
among the other public shareholders.
Shareholders above
entrusting/entrusted with or waiving N/A
voting rights
Repurchased share account (if any)
among the top 10 shareholders (see N/A
note 10)
Top 10 unrestricted shareholders
Unrestricted shares Shares by class
Name of shareholder
held at the period-end Class Shares
RMB-denominated ordinary
Yibin Development Holding Group Co., Ltd. 1,336,548,020 1,336,548,020
shares
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
RMB-denominated ordinary
Sichuan Yibin Wuliangye Group Co., Ltd. 791,823,343 791,823,343
shares
RMB-denominated ordinary
Hong Kong Securities Clearing Company Limited 174,889,667 174,889,667
shares
RMB-denominated ordinary
China Securities Finance Corporation Limited 92,385,936 92,385,936
shares
Bank of China Limited－China Merchants China
RMB-denominated ordinary
Securities Baijiu Index Classification Securities 57,117,979 57,117,979
shares
Investment Fund
RMB-denominated ordinary
Central Huijin Asset Management Co., Ltd. 39,325,400 39,325,400
shares
Bank of China Limited－E Fund Blue Chip Selected RMB-denominated ordinary
Mixed Securities Investment Fund shares
China Life Insurance Company Limited－Traditional RMB-denominated ordinary
－General Insurance Product-005L-CT001 Shanghai shares
Industrial and Commercial Bank of China Limited－
RMB-denominated ordinary
Invesco Great Wall Newly Growth Mixed Securities 18,429,500 18,429,500
shares
Investment Fund
Industrial and Commercial Bank of China Limited -
RMB-denominated ordinary
Huatai Bairui CSI 300 Traded Open-ended Index 14,612,209 14,612,209
shares
Securities Investment Fund
Related or acting-in-concert parties among top 10
Among the top 10 shareholders, Wuliangye Group is a wholly-owned
unrestricted public shareholders, as well as between
subsidiary of Yibin Development Group. And the Company is not aware of
top 10 unrestricted public shareholders and top 10
any related or acting-in-concert parties among the other public shareholders.
shareholders
Top 10 ordinary shareholders involved in securities
N/A
margin trading (if any) (see note 4)
Top 10 shareholders involved in refinancing shares lending:
□ Applicable ? Not applicable
Changes in top 10 shareholders compared with the prior period:
? Applicable □ Not applicable
Unit: share
Changes in top 10 shareholders compared with the end of the prior period
Newly Shares in the common
Shares lent in
added to or account and credit account
refinancing and not yet
exiting from plus shares lent in refinancing
returned at the period-
top 10 and not yet returned at the
Full name of shareholder end
shareholders period-end
in the As % of
Reporting Total As % of total
total share Total shares
Period shares share capital
capital
Industrial and Commercial Bank of China Limited -
Newly
Huatai Bairui CSI 300 Traded Open-ended Index 0 0.00% 14,612,209 0.38%
added
Securities Investment Fund
Agricultural Bank of China Limited－E Fund Consumer
Exiting 0 0.00% 13,400,365 0.35%
Sector Stock Investment Fund
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of
the Company conducted any promissory repurchase during the Reporting Period.
□ Yes ? No
No such cases in the Reporting Period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Nature of the controlling shareholder: controlled by a local state-owned organization
Type of the controlling shareholder: corporation
Legal
Name of the controlling representative/
Date of incorporation Organization code Principal activities
shareholder person-in-
charge
Capital and asset operations as
Yibin Development Holding
Han Chengke 4 August 1999 915115007118234259 authorized by the People’s
Group Co., Ltd.
Government of Yibin City
Interests held in other
domestically and overseas Yibin Development Group directly held 228,708,436 shares (or 17.57%) in Yibin Tianyuan Group
listed companies in the Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co., Ltd.
Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Nature of the actual controller: local state-owned assets management organization
Type of the actual controller: corporation
Legal representative/person- Date of
Name of the actual controller Organization code Principal activities
in-charge incorporation
The State-owned Assets Supervision
and Administration Commission of the Xiang Junge 24 February 2005 N/A N/A
People’s Government of Yibin City
Interests controlled in other SASAC Yibin indirectly held 228,708,436 shares (or 17.57%) in Yibin Tianyuan Group
domestically and overseas listed Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co.,
companies in the Reporting Period Ltd.
Change of the actual controller in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Illustration of the relationship between the actual controller and the Company:
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
largest shareholder and its acting-in-concert parties that are in pledge accounts for over 80% of their total
shareholdings in the Company.
□ Applicable ? Not applicable
? Applicable □ Not applicable
Legal
Name of corporate
representative/person- Date of incorporation Registered capital Principal activities
shareholder
in-charge
Investment and investment
Sichuan Yibin Wuliangye management, asset
Zeng Congqin 12 August 1998 RMB1,000,000,000
Group Co., Ltd. management, and business
management services
Reorganizer and Other Undertaking Makers
□ Applicable ? Not applicable
IV Share Repurchases in the Reporting Period
Progress on any share repurchase:
□ Applicable ? Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable ? Not applicable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□ Applicable ? Not applicable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing the independent auditor’s report 24 April 2024
Name of the independent auditor Sichuan Huaxin (Group) CPA (LLP)
Number of the independent auditor’s report Huaxin Audit (2024) No. 0009
Names of the certified public accountants Li Wulin, Ye Juan, and Luo Guiqiu
Independent Auditor’s Report
To the Shareholders of Wuliangye Yibin Co., Ltd.:
I Opinion
We have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to as the
“Company”), which comprise the consolidated and parent company (the Company as the parent exclusive of
subsidiaries) balance sheets as at 31 December 2023, the consolidated and parent company statements of income,
cash flows and changes in owners’ equity for the year then ended, as well as the notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated and parent company financial position of the Company at 31 December 2023, and the consolidated
and parent company operating results and cash flows for the year then ended, in conformity with China’s
Accounting Standards for Business Enterprises (CAS).
II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance with
the said Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
III Key Audit Matters
Key audit matters are matters that, based on our professional judgment, are deemed most important to the
audit of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. The key audit matters we identified in our audit are as follows:
Key audit matters Audit response
(I) Existence and integrity of monetary assets
Please refer to notes to With respect of monetary assets, we conducted the following audit
financial statements "V. Notes to procedures:
consolidated financial statements, 1. Understood, tested, and evaluated key internal controls related to the
As at 31 December 2023, the 2. Obtained list of bank accounts opened, and checked the books of the
balance of monetary assets of the Company against the bank account information and integrity of the bank
Company was RMB115,456.3009 accounts;
million, accounting for 69.79% of 3. Obtained the bank statement and bank reconciliation for confirmation
the total assets. The safety of of the bank accounts, and controlled the process of confirmation;
deposits and the accuracy and
integrity of balance have great
attention to the holders of certificate of time deposit and other information;
impact on the financial statements
due to the large amount of balance 5. Obtained credit report of the enterprise and checked whether the
of monetary assets and large monetary assets are under mortgage, charge or frozen;
number of bank accounts. 6. At the end of the period, the amount deposited with Sichuan Yibin
Therefore, we consider the Wuliangye Group Finance Co., Ltd. was RMB40,299.5375 million in total;
existence and integrity of monetary the deposit and loan business of Sichuan Yibin Wuliangye Group Finance Co.,
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
assets as a key audit matter. Ltd. was checked.
We believe that the above audit procedures can support the management
of the Company in their determination of the existence and integrity of
monetary assets.
(II) Recognition of operating revenue
Please refer to notes to With respect of operating revenue, we conducted the following audit
financial statement "V Notes to the procedures:
Consolidated Financial Statements, 1. Understood, tested, and evaluated key internal controls related to the
sales". 2. Selected samples to examine sales contracts and identify contractual
The Company recorded terms and conditions relating to the transfer of control of goods in order to
operating revenue of evaluate whether the time of recognition of operating revenue meets the
RMB83,272.0673 million during requirements of the CAS;
of the operating profit. And such as sales volumes, unit sales prices, gross margins and major customers
operating revenue is one of the key for the current period with the previous period to identify changes in key
performance indicators. Therefore, indicators and the reasonableness of the changes;
we consider the recognition of
operating revenue as a key audit
transactions of the principal operations recorded during the year and
matter.
examining supporting documentation such as sales contracts or orders, release
orders, delivery notes, customer sign-off records, sales invoices, etc. to
evaluate the authenticity and accuracy of operating revenue recognition;
samples of relevant supporting documentation (including dispatch notes or
customer acknowledgement of receipt) to assess whether operating revenue is
recognised in the appropriate accounting period; and
contract liabilities to perform correspondence procedures to verify the amount
of operating revenue for the period and the closing balance of contract
liabilities and verify the authenticity and accuracy of the amount of operating
revenue recognized by management.
We believe that the above audit procedures can support the management
of the Company in their determination of the recognition of operating revenue.
IV Other Information
The Company’s management is responsible for the other information. The other information comprises all
of the information included in the Company’s 2023 Annual Report other than the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
V Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair
view in accordance with CAS, and for designing, implementing and maintaining such internal control as the
management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern (if applicable) and using
the going concern basis of accounting unless the management either intends to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI Auditor’s Responsibilities for Audit of Financial Statements
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with CAS will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by CAS to draw users’ attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are responsible for
the direction, supervision and performance of the Company audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any noteworthy deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA (LLP) Chinese certified public accountant: Li Wulin
(engagement partner)
Chengdu ·China
Chinese certified public accountant: Ye Juan
Chinese certified public accountant: Luo Guiqiu
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
II Financial Statements
Monetary unit for the financial statements and the statements in the notes thereto unless otherwise stated:
RMB
Prepared by Wuliangye Yibin Co., Ltd.
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 115,456,300,910.64 92,358,426,975.79
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 119,918,307.60
Accounts receivable 42,647,461.48 35,686,942.32
Receivables financing 14,086,450,565.79 28,904,198,420.44
Prepayments 169,425,745.15 135,982,868.14
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 39,624,933.74 30,901,231.69
Of which: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 17,387,841,712.87 15,980,657,013.57
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets
Total current assets 147,182,291,329.67 137,565,771,759.55
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,020,366,240.69 1,986,387,524.78
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 5,189,917,302.17 5,312,971,445.61
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Construction in progress 5,623,356,422.20 3,773,155,983.95
Productive living assets
Oil and gas assets
Right-of-use assets 126,810,315.49 380,922,885.84
Intangible assets 2,056,870,639.03 518,517,835.31
Development costs
Goodwill 1,621,619.53 1,621,619.53
Long-term prepaid expense 163,120,023.86 158,586,327.06
Deferred income tax assets 2,242,610,567.82 2,140,289,194.58
Other non-current assets 824,817,224.29 972,502,674.97
Total non-current assets 18,250,690,355.08 15,246,155,491.63
Total assets 165,432,981,684.75 152,811,927,251.18
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 732,432,611.26 887,970,376.53
Accounts payable 8,864,206,997.09 7,246,802,709.58
Advances from customers 17,522,814.61 16,160,671.49
Contract liabilities 6,864,383,635.25 12,379,125,542.70
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial
institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 3,872,122,436.43 3,375,526,829.88
Taxes and levies payable 6,268,458,145.77 5,301,718,185.93
Other payables 5,385,776,903.69 4,631,434,915.43
Of which: Interest payable
Dividends payable 13,191,392.99
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 663,723,991.63 1,544,723,419.34
Total current liabilities 32,683,139,984.65 35,759,145,250.65
Non-current liabilities:
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Insurance contract reserve
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities 115,722,608.68 16,976,148.73
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 253,043,325.37 254,416,864.75
Deferred income tax liabilities 31,702,578.88 94,360,946.95
Other non-current liabilities
Total non-current liabilities 400,468,512.93 365,753,960.43
Total liabilities 33,083,608,497.58 36,124,899,211.08
Owners’ equity:
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which : Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 33,588,553,502.81 28,432,482,367.38
General reserve
Retained earnings 89,405,432,446.55 79,031,159,753.65
Total equity attributable to owners of the
Company as the parent
Non-controlling interests 2,791,132,146.66 2,659,130,827.92
Total owners’ equity 132,349,373,187.17 116,687,028,040.10
Total liabilities and owners’ equity 165,432,981,684.75 152,811,927,251.18
Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Liu Hongxu
Unit: RMB
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 60,323,450,012.71 51,104,448,387.06
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Receivables financing
Prepayments 3,380,448.33 33,048,447.08
Other receivables 6,485,949,705.92 8,462,631,304.66
Of which: Interest receivable
Dividends receivable 930,755,375.66 2,126,718,123.00
Inventories
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets
Total current assets 66,812,780,166.96 59,600,128,138.80
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 13,436,738,333.48 13,383,816,192.05
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 114,171,167.35 100,713,555.25
Construction in progress 112,398,471.31 115,870,542.48
Productive living assets
Oil and gas assets
Right-of-use assets 985,149.93 1,948,611.38
Intangible assets 39,378,847.31 38,664,783.59
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 11,183,406.83 1,375,528.61
Other non-current assets
Total non-current assets 13,716,055,376.21 13,643,589,213.36
Total assets 80,528,835,543.17 73,243,717,352.16
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 175,000.00 1,134,674.42
Advances from customers
Contract liabilities
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Employee benefits payable 9,870,448.65 4,106,534.36
Taxes and levies payable 86,642,875.45 277,283,965.88
Other payables 159,525,988.83 146,366,462.73
Of which: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 256,899,898.89 430,062,561.70
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 7,750,000.00 500,000.00
Deferred income tax liabilities 246,287.48 487,152.85
Other non-current liabilities
Total non-current liabilities 7,996,287.48 987,152.85
Total liabilities 264,896,186.37 431,049,714.55
Owners’ equity:
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 15,508,769,954.04 13,295,618,638.02
Retained earnings 58,190,914,311.61 52,952,793,908.44
Total owners’ equity 80,263,939,356.80 72,812,667,637.61
Total liabilities and owners’ equity 80,528,835,543.17 73,243,717,352.16
Unit: RMB
Item 2023 2022
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
I Total revenues 83,272,067,317.19 73,968,640,704.54
Of which: Operating revenue 83,272,067,317.19 73,968,640,704.54
Interest income
Insurance premium income
Fee and commission income
II Total costs and expenses 41,653,257,827.54 37,049,016,916.17
Of which: Cost of sales 20,157,143,952.21 18,178,425,659.64
Interest costs
Fee and commission costs
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 12,531,695,628.42 10,748,802,377.04
Selling expense 7,796,298,418.13 6,844,237,013.17
Administrative expense 3,319,445,339.77 3,068,119,268.45
R&D expense 321,845,165.28 235,783,645.79
Finance costs -2,473,170,676.27 -2,026,351,047.92
Of which: Interest expense 11,618,338.87 48,003,667.91
Interest income 2,487,953,643.33 2,075,700,630.12
Add: Other income 330,670,203.50 186,525,904.41
Return on investment (“－” for loss) 57,617,083.91 92,571,951.15
Of which: Share of profit or loss of joint ventures and
associates
Income from the derecognition of financial
assets at amortized cost
Exchange gain (“－” for loss)
Net gain on exposure hedges (“－” for loss)
Gain on changes in fair value (“－” for loss)
Credit impairment loss (“－” for loss) -772,191.29 -1,437,932.66
Asset impairment loss (“－” for loss) -3,932,827.97 -26,207,459.87
Asset disposal income (“－” for loss) 1,272,004.07 3,347,202.23
III Operating profit (“－” for loss) 42,003,663,761.87 37,174,423,453.63
Add: Non-operating income 45,351,676.69 38,885,270.86
Less: Non-operating expense 136,333,494.92 109,788,008.25
IV Gross profit (“－” for gross loss) 41,912,681,943.64 37,103,520,716.24
Less: Income tax expense 10,391,904,361.49 9,133,735,140.97
V Net profit (“－” for net loss) 31,520,777,582.15 27,969,785,575.27
(I) By operating continuity
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(II) By ownership
parent
VI Other comprehensive income, net of tax
Other comprehensive income, net of tax attributable to owners of
the Company as the parent
(I) Other comprehensive income that will not be reclassified to
profit or loss
schemes
profit or loss under the equity method
credit risk
(II) Other comprehensive income that will be reclassified to
profit or loss
profit or loss under the equity method
reclassification of financial assets
denominated financial statements
Other comprehensive income, net of tax attributable to non-
controlling interests
VII Total comprehensive income 31,520,777,582.15 27,969,785,575.27
Total comprehensive income attributable to owners of the
Company as the parent
Total comprehensive income attributable to non-controlling
interests
VIII Earnings per share:
(I) Basic earnings per share 7.783 6.876
(II) Diluted earnings per share 7.783 6.876
Where business combinations involving entities under common control occurred in the current period, the net
profit achieved by the acquirees before the combinations was RMB0.00, with the amount for last year being
RMB0.00.
Legal representative: Zeng Congqin Chief Financial Officer: Xie Zhiping Head of the accounting department: Liu Hongxu
Unit: RMB
Item 2023 2022
I Operating revenue
Less: Cost of sales
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Taxes and levies 5,525,662.89 370,416.70
Selling expense
Administrative expense 145,421,663.00 142,946,488.68
R&D expense 70,544,137.04 55,470,547.04
Finance costs -1,501,998,089.99 -1,320,194,889.62
Of which: Interest expense 40,603.37 68,515.70
Interest income 1,502,063,802.45 1,320,290,654.38
Add: Other income 4,133,599.46 20,873,010.56
Return on investment (“－” for loss) 21,190,098,296.84 18,799,779,256.49
Of which: Share of profit or loss of joint
ventures and associates
Income from the derecognition of
financial assets at amortized cost (“－” for loss)
Net gain on exposure hedges (“－” for loss)
Gain on changes in fair value (“－” for loss)
Credit impairment loss (“－” for loss) -1,503,446.05 -1,002,989.80
Asset impairment loss (“－” for loss)）
Asset disposal income (“－” for loss) -92,629.13
II Operating profit (“－” for loss) 22,473,142,448.18 19,941,056,714.45
Add: Non-operating income 88,980.74 413,500.00
Less: Non-operating expense 49,316,327.91 58,415,869.51
III Gross profit (“－” for gross loss) 22,423,915,101.01 19,883,054,344.94
Less: Income tax expense 292,401,940.85 265,219,502.86
IV Net profit (“－” for net loss) 22,131,513,160.16 19,617,834,842.08
(I) Net profit from continuing operations (“－” for
net loss)
(II) Net profit from discontinued operations (“－”
for net loss)
V Other comprehensive income, net of tax
(I) Other comprehensive income that will not be
reclassified to profit or loss
benefit schemes
reclassified to profit or loss under the equity method
investments
in own credit risk
(II) Other comprehensive income that will be
reclassified to profit or loss
reclassified to profit or loss under the equity method
investments
reclassification of financial assets
investments
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
foreign currency-denominated financial statements
VI Total comprehensive income 22,131,513,160.16 19,617,834,842.08
VII Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Unit: RMB
Item 2023 2022
I Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 105,349,992,178.96 81,770,582,903.92
Net increase in customer deposits and deposits from other
banks and financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, fees and commissions received
Net increase in loans from other banks and financial
institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 83,435,000.00 72,322,800.00
Cash generated from other operating activities 2,328,844,302.03 2,006,197,288.41
Subtotal of cash generated from operating activities 107,762,271,480.99 83,849,102,992.33
Payments for goods and services 21,310,361,287.23 19,397,297,581.75
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other banks
and financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial
institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 7,890,206,082.92 7,879,082,833.54
Taxes and levies paid 30,999,125,076.75 27,773,048,881.11
Cash used in other operating activities 5,820,099,125.86 4,368,537,434.45
Subtotal of cash used in operating activities 66,019,791,572.76 59,417,966,730.85
Net cash generated from/used in operating activities 41,742,479,908.23 24,431,136,261.48
II Cash flows from investing activities:
Proceeds from the disposal of investments
Return on investment 23,638,368.00 23,038,080.00
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Net proceeds from the disposal of fixed assets, intangible
assets and other long-term assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 25,404,357.88 69,705,342.99
Payments for the acquisition and construction of fixed
assets, intangible assets and other long-term assets
Payments for the acquisition of investments 5,625,000.00
Net increase in pledge loans
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 2,957,236,682.34 1,786,159,893.52
Net cash generated from/used in investing activities -2,931,832,324.46 -1,716,454,550.53
III Cash flows from financing activities:
Capital contributions received 22,618,764.59
Of which: Capital contributions received by subsidiaries
from non-controlling interests
Borrowings received
Cash generated from other financing activities
Subtotal of cash generated from financing activities 22,618,764.59
Repayment of borrowings
Interest and dividends paid 15,894,242,592.66 12,681,422,089.05
Of which: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities 428,610,750.02 424,009,369.15
Subtotal of cash used in financing activities 16,322,853,342.68 13,105,431,458.20
Net cash generated from/used in financing activities -16,300,234,578.09 -13,105,431,458.20
IV Effect of foreign exchange rate changes on cash and cash
equivalents
V Net increase in cash and cash equivalents 22,511,040,326.64 9,609,386,518.94
Add: Cash and cash equivalents, beginning of the period 90,584,643,897.66 80,975,257,378.72
VI Cash and cash equivalents, end of the period 113,095,684,224.30 90,584,643,897.66
Unit: RMB
Item 2023 2022
I Cash flows from operating activities:
Proceeds from sale of goods and rendering of services
Tax and levy rebates
Cash generated from other operating activities 2,102,357,381.43 1,463,712,176.86
Subtotal of cash generated from operating activities 2,102,357,381.43 1,463,712,176.86
Payments for goods and services
Cash paid to and for employees 149,842,839.64 151,676,699.98
Taxes and levies paid 492,671,245.45 46,538,112.01
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Cash used in other operating activities 98,632,120.82 264,037,436.73
Subtotal of cash used in operating activities 741,146,205.91 462,252,248.72
Net cash generated from/used in operating activities 1,361,211,175.52 1,001,459,928.14
II Cash flows from investing activities:
Proceeds from the disposal of investments
Return on investment 22,356,680,882.23 17,761,634,324.18
Net proceeds from the disposal of fixed assets, intangible
assets and other long-term assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 22,357,031,498.54 17,761,634,461.79
Payments for the acquisition and construction of fixed
assets, intangible assets and other long-term assets
Payments for the acquisition of investments 23,541,979.48 5,625,000.00
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 46,576,227.45 17,597,576.93
Net cash generated from/used in investing activities 22,310,455,271.09 17,744,036,884.86
III Cash flows from financing activities:
Capital contributions received
Borrowings received
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings
Interest and dividends paid 14,680,241,440.97 11,734,100,955.49
Cash used in other financing activities 1,979,700.00 1,979,700.00
Subtotal of cash used in financing activities 14,682,221,140.97 11,736,080,655.49
Net cash generated from/used in financing activities -14,682,221,140.97 -11,736,080,655.49
IV Effect of foreign exchange rate changes on cash and cash
equivalents
V Net increase in cash and cash equivalents 8,989,445,305.64 7,009,416,157.51
Add: Cash and cash equivalents, beginning of the period 49,975,638,860.17 42,966,222,702.66
VI Cash and cash equivalents, end of the period 58,965,084,165.81 49,975,638,860.17
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Equity attributable to owners of the Company as the parent
Other equity
instruments
Le
Pr Other Sp Ge
ss:
Item ef Per comp eci ner Non-controlling
Tre Total owners’ equity
er pet rehen fic al Ot interests
Share capital Capital reserves asu Surplus reserves Retained earnings Subtotal
en ual Ot sive res res her
ry
ce bo her inco erv erv
sha
sh nd me e e
res
ar s
es
I Balance as at
the end of the 3,881,608,005.00 2,682,647,086.15 28,432,198,524.98 79,028,605,172.04 114,025,058,788.17 2,659,130,827.92 116,684,189,616.09
prior year
Add:
Adjustments for
changes in 283,842.40 2,554,581.61 2,838,424.01 2,838,424.01
accounting
policies
Adjustments
for correction of
previous errors
Other
II Balance as at
the beginning of 3,881,608,005.00 2,682,647,086.15 28,432,482,367.38 79,031,159,753.65 114,027,897,212.18 2,659,130,827.92 116,687,028,040.10
the year
III Increase/
decrease in the
period (“-” for 5,156,071,135.43 10,374,272,692.90 15,530,343,828.33 132,001,318.74 15,662,345,147.07
decrease)
(I) Total
comprehensive 30,210,585,269.30 30,210,585,269.30 1,310,192,312.85 31,520,777,582.15
income
(II) Capital
increase and
reduction by 22,618,764.59 22,618,764.59
owners
share increase 22,618,764.59 22,618,764.59
by owners
increase by
holders of other
equity
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
instruments
payments
recognized in
owners’ equity
(III) Profit
distribution 5,156,071,135.43 -19,836,312,576.40 -14,680,241,440.97 -1,200,809,758.70 -15,881,051,199.67
to surplus 5,156,071,135.43 -5,156,071,135.43
reserves
to general
reserve
owners (or -14,680,241,440.97 -14,680,241,440.97 -1,200,809,758.70 -15,881,051,199.67
shareholders)
(IV) Transfers
within owners’
equity
capital (or share
capital) from
capital reserves
capital (or share
capital) from
surplus reserves
reserves used to
offset loss
defined benefit
schemes
transferred to
retained
earnings
comprehensive
income
transferred to
retained
earnings
(V) Specific
reserve
the period
period
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(VI) Other
IV Balance as at
the end of the 3,881,608,005.00 2,682,647,086.15 33,588,553,502.81 89,405,432,446.55 129,558,241,040.51 2,791,132,146.66 132,349,373,187.17
period
Unit: RMB
Equity attributable to owners of the Company as the parent
Other equity
Le Othe
instruments Sp Ge
ss: r O
Item Pre Per eci ner Non-controlling
O Tre comp t Total owners’ equity
fer pet fic al interests
Share capital t Capital reserves asu rehen Surplus reserves Retained earnings h Subtotal
enc ual res res
h ry sive e
e bo erv erv
e sha inco r
sha nd e e
r res me
res s
I Balance as at the
end of the prior year 3,881,608,005.00 2,682,647,086.15 23,866,103,395.72 68,638,139,859.37 99,068,498,346.24 2,323,385,298.63 101,391,883,644.87
Add: Adjustments for
changes in accounting 351,617.41 3,164,556.82 3,516,174.23 168,606.73 3,684,780.96
policies
Adjustments for
correction of previous
errors
Other
II Balance as at the
beginning of the year 3,881,608,005.00 2,682,647,086.15 23,866,455,013.13 68,641,304,416.19 99,072,014,520.47 2,323,553,905.36 101,395,568,425.83
III Increase/ decrease
in the period (“-” for 4,566,027,354.25 10,389,855,337.46 14,955,882,691.71 335,576,922.56 15,291,459,614.27
decrease)
(I) Total
comprehensive 26,689,983,647.20 26,689,983,647.20 1,279,801,928.07 27,969,785,575.27
income
(II) Capital increase
and reduction by -21,148,883.78 -21,148,883.78
owners
increase by owners
holders of other
equity instruments
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
payments recognized
in owners’ equity
(III) Profit
distribution 4,566,027,354.25 -16,300,128,309.74 -11,734,100,955.49 -923,076,121.73 -12,657,177,077.22
surplus reserves 4,566,027,354.25 -4,566,027,354.25
general reserve
owners (or -11,734,100,955.49 -11,734,100,955.49 -923,076,121.73 -12,657,177,077.22
shareholders)
(IV) Transfers within
owners’ equity
(or share capital)
from capital reserves
(or share capital)
from surplus reserves
used to offset loss
benefit schemes
transferred to retained
earnings
comprehensive
income transferred to
retained earnings
(V) Specific reserve
period
(VI) Other
IV Balance as at the
end of the period 3,881,608,005.00 2,682,647,086.15 28,432,482,367.38 79,031,159,753.65 114,027,897,212.18 2,659,130,827.92 116,687,028,040.10
Unit: RMB
Item
Share capital Other equity instruments Capital reserves Less: Other Spec Surplus reserves Retained earnings Othe Total owners’ equity
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Perpetu Treasur compre ific r
Preferenc
al Other y hensive reser
e shares
bonds shares income ve
I Balance as at the end of 13,295,638,080.20 52,952,968,888.03 72,812,862,059.38
the prior year 3,881,608,005.00 2,682,647,086.15
Add: Adjustments for -19,442.18 -174,979.59 -194,421.77
changes in accounting
policies
Adjustments for
correction of previous errors
Other
II Balance as at the
beginning of the year 3,881,608,005.00 2,682,647,086.15 13,295,618,638.02 52,952,793,908.44 72,812,667,637.61
III Increase/ decrease in the
period (“-” for decrease) 2,213,151,316.02 5,238,120,403.17 7,451,271,719.19
(I) Total comprehensive
income 22,131,513,160.16 22,131,513,160.16
(II) Capital increase and
reduction by owners
by owners
holders of other equity
instruments
recognized in owners’ equity
(III) Profit distribution 2,213,151,316.02 -16,893,392,756.99 -14,680,241,440.97
reserves 2,213,151,316.02 -2,213,151,316.02
shareholders) -14,680,241,440.97 -14,680,241,440.97
(IV) Transfers within
owners’ equity
share capital) from capital
reserves
share capital) from surplus
reserves
offset loss
benefit schemes transferred
to retained earnings
income transferred to
retained earnings
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(V) Specific reserve
(VI) Other
IV Balance as at the end of
the period 3,881,608,005.00 2,682,647,086.15 15,508,769,954.04 58,190,914,311.61 80,263,939,356.80
Unit: RMB
Other equity instruments
Less: Other Speci
Item Prefe Treasur compre fic
Share capital Perpetu Capital reserves Surplus reserves Retained earnings Other Total owners’ equity
rence y hensive reser
al Other
share shares income ve
bonds
s
I Balance as at the end of the
prior year 3,881,608,005.00 2,682,647,086.15 11,333,854,390.82 47,031,016,639.11 64,929,126,121.08
Add: Adjustments for changes in
accounting policies -19,237.01 -173,133.05 -192,370.06
Adjustments for correction
of previous errors
Other
II Balance as at the beginning of
the year 3,881,608,005.00 2,682,647,086.15 11,333,835,153.81 47,030,843,506.06 64,928,933,751.02
III Increase/ decrease in the
period (“-” for decrease) 1,961,783,484.21 5,921,950,402.38 7,883,733,886.59
(I) Total comprehensive income 19,617,834,842.08 19,617,834,842.08
(II) Capital increase and
reduction by owners
owners
other equity instruments
recognized in owners’ equity
(III) Profit distribution 1,961,783,484.21 -13,695,884,439.70 -11,734,100,955.49
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
reserves 1,961,783,484.21 -1,961,783,484.21
shareholders) -11,734,100,955.49 -11,734,100,955.49
(IV) Transfers within owners’
equity
capital) from capital reserves
capital) from surplus reserves
loss
schemes transferred to retained
earnings
transferred to retained earnings
(V) Specific reserve
(VI) Other
IV Balance as at the end of the
period 3,881,608,005.00 2,682,647,086.15 13,295,618,638.02 52,952,793,908.44 72,812,667,637.61
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
III Company Profile
Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company") is a company limited by shares
established by Sichuan Yibin Wuliangye Distillery through fund raising on 19 August 1997 with the approval of
Document CFH (1997) No. 295 issued by the People's Government of Sichuan Province. The Company is
principally engaged in the production and sales of "Wuliangye"-branded Baijiu products and other Baijiu series,
with a registered capital of RMB3,881.6080 million and registered address: 150 Minjiang West Road, Cuiping
District, Yibin City, Sichuan Province, China.
The Company issued 80 million common shares (in RMB) on-line by fixed price offering at Shenzhen Stock
Exchange on 27 April 1998. According to the resolution of the extraordinary general meeting of Shareholders in
September 1999, the Company, based on the total share capital of 320 million shares on 30 June 1999, transferred
capital reserve to increase share capital, increasing five shares for every ten shares and the total share capital after
the conversion was changed to 480 million shares. The Company placed 31.2 million common shares (in RMB) to
the original shareholders as approved by the Document ZH.J.G.S.Z. [2001] No. 6 issued by the China Securities
Regulatory Commission. The total share capital after the placement was 511.2 million shares. In August 2001, the
Company implemented the interim distribution plan 2001 and issued four bonus shares and increased three shares
for every ten shares by transferring capital reserve to share capital, with 357.84 million bonus shares and shares
transferred from capital reserve in total. The total share capital after the issuance and translation was 869.04
million shares. In April 2002, the Company implemented the distribution plan 2001 and issued one bonus shares,
increased two shares by transferring capital reserve to share capital, and distributed RMB0.25 (tax inclusive) in
cash for every ten shares, with 260.712 million bonus shares in total. The total share capital after the issuance and
translation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan 2002 and
increased two shares for every ten shares by transferring capital reserve to share capital for all shareholders,
increasing the share capital by 225.9504 million shares. The total share capital after the translation was
bonus shares and increased two shares by transferring capital reserve to share capital for every ten shares, with
million shares.
On 31 March 2006, the Company carried out the equity division reform and the shareholding structure after
the reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the total
share capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 million
shares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained
In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares and
distributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total.
The total share capital after the issuance and distribution was 3,795.96672 million shares. On 2 April 2008, shares
for state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and became
shares, taking up 43.93% of the total share capital.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye Yibin
Co., Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province
(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders of
Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the State
Council (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as Yibin
Development Holding Group Co., Ltd. in 2021) transferred 761,823,343 shares held by it in the Company to
Sichuan Yibin Wuliangye Group Co., Ltd. for free on 10 October 2012. After this free transfer of shares, Yibin
Development Holding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was
the first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07% shares
of the Company (i.e. 791,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.
(Y.G.Z.W. [2016] No. 32), the State-owned Assets Supervision and Administration Commission of the People’s
Government of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to Yibin
Development Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the change of
shares held by both parties in the Company, without changing the controlling shareholder and actual controller of
the Company.
According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting of
Shareholders 2015, the 19th meeting of the 5th Board of Directors, the 24th meeting of the 5th Board of Directors,
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
and annual general meeting of Shareholders 2016 of the Company and as approved by the License ZH.J.X.K.
[2017] No. 1910 issued by the China Securities Regulatory Commission, the Company issued 85,641,285 shares
by non-public offering by means of targeted issue on 12 April 2018. The total share capital after the issuance was
the total share capital, and 1,753.2366 million shares for other shareholders, taking up 45.17% of the total share
capital.
According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd. (Y.G.Z.W.
[2020] No. 157), issued by The State-owned Assets Supervision and Administration Commission of the People’s
Government of Yibin City, the transfer was approved in principle. On 24 August 2020, Yibin Development
Holding Group Co., Ltd. transferred 30,000,000 shares held by it in the Company to Sichuan Yibin Wuliangye
Group Co., Ltd. for free. After this transfer of shares, Yibin Development Holding Group Co., Ltd. still held 34.43%
shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of the Company;
Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343 shares), was
the second majority shareholder of the Company. This transfer of shares did not change the controlling
shareholder and actual controller of the Company.
The Company is engaged in the beverage production industry and its business scope is: Production and
operation of liquor products and relevant auxiliary products (bottle caps, trademarks, logos and packaging
products). Its primary products are "Wuliangye"-branded Baijiu products and other Baijiu series.
These financial statements have been reviewed and approved by General Meeting of Shareholders of the
Company on 24 April 2024, and will be submitted to the general meeting for review according to the Articles of
Association.
IV Preparation Basis for Financial Statements
The financial statements of the Company are prepared on the basis of going concern and the recognition and
measurement are made at actual transactions and matters in accordance with the Accounting Standards for
Business Enterprises-Basic Standards issued by the Ministry of Finance and the specific Accounting Standards
for Business Enterprise, Guidelines for Application of Accounting Standards for Business Enterprises,
Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafter referred
to as “Accounting Standards for Business Enterprise”), combining with the Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports
(2023 revision) issued by China Securities Regulatory Commission on this basis.
The Company has the ability of going concern for at least 12 months from the end of the Reporting Period,
and there is no major event affecting the ability of going concern.
V Significant Accounting Policies and Accounting Estimates
The Company is subject to the disclosure requirements for the food and wine & liquor production industry in
Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
Specific accounting policies and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimates formulated by
the Company according to the actual production and operation characteristics.
The Company states that the financial statements prepared comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company's financial position, operating
results, cash flows and other relevant information.
From 1 January to 31 December of each calendar year.
The Company’s operating cycle is 12 months.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
RMB is used as the bookkeeping base currency and reporting currency of the Company.
? Applicable □ Not applicable
Item Significance standard
Significant receivables withdrawal of bad The provision separately accrued amount accounts for over 10% of the total bad
debt provision separately accrued debt provision for various receivables and exceeds RMB40 million.
Significant bad debt provision recovered or The separately accrued recovery or reversal amount accounts for over 10% of the
reversed in accounts receivables total receivables and exceeds RMB40 million.
The separately accrued write-off amount accounts for over 10% of the total bad
Write-off of significant accounts receivable
debt provision for various receivables and exceeds RMB40 million.
The separately accrued investment budget for construction in progress exceeds
Significant construction in progress
RMB1 billion.
Significant externally purchased R&D Exceeds 10% of the total budget for existing R&D projects, with the amount of
projects externally purchased R&D projects exceeding RMB40 million.
Exceeds 10% of the total budget for existing R&D projects, with the capitalisation
Significant capitalised R&D projects
amount for the current period exceeding RMB40 million.
Significant prepayments, accounts payable, Accounts aged over 1 year account for over 10% of the corresponding items in the
and other accounts payable consolidated financial statements and exceed RMB1 billion.
Significant advances received and contract Accounts aged over 1 year account for over 10% of the corresponding items in the
liabilities consolidated financial statements and exceed RMB1 billion.
Individual investment cash flows account for over 10% of the total cash flows in
Significant investment projects
or out of investment activities, exceeding RMB10 billion.
Minority shareholders hold 5% or more equity, with total assets, net assets,
Significant non-wholly-owned subsidiary operating income, and net profit accounting for over 10% of the corresponding
items in the consolidated financial statements.
Significant joint ventures or associated The long-term equity investment amount accounts for over 1% of the total assets
enterprises in the consolidated financial statements.
control
(1) Business combination involving enterprises under the common control
The assets and liabilities acquired by the combining party through business combination involving
enterprises under the common control are measured at the share of owners' equity of the combined party in the
carrying value on consolidated financial statements of the final controlling party on the combination date. The
difference between the carrying value of the net assets obtained by the combining party and the carrying value of
consideration paid for the combination (or total par value of the shares issued) is adjusted against share premium
in the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall be
adjusted. All the direct costs incurred by the combining party for the business combination shall be included in
current profit/loss when incurred.
(2) Business combination involving enterprises not under the common control
In case of business combination involving enterprises not under the common control, the combination costs
shall be the fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on the
date of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the common control achieved through step-by-
step implementation of multiple transactions, related accounting treatment shall be carried out by distinguishing
individual financial statements from consolidated financial statements:
a) In the individual financial statements, the sum of carrying value of the equity investment held in the
acquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shall be taken as
the initial cost of such investment; where the equity held in the acquiree prior to the date of acquisition involves
other comprehensive income, the other comprehensive income related to such investment shall be transferred to
current return on investment.
b) In the consolidated financial statements, the equity held in the acquiree prior to the date of acquisition
shall be re-measured at the fair value of such equity on the date of acquisition, and the difference between its fair
value and its carrying value shall be included in the current return on investment; where the equity held in the
acquiree prior to the date of acquisition involves other comprehensive income, the other comprehensive income
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
related to such investment shall be transferred to current return on investment on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and other administrative
expenses incurred by the acquirer for the business combination shall be included in current profit/loss; the
transaction expenses for issuing equity securities or debt securities by the acquirer as consideration of the
combination shall be included in the initial recognition amount of the equity securities or debt securities.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the business
combination involving enterprises not under the common control shall be measured at the fair value on the date of
acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's net
identifiable assets obtained in the combination, the difference shall be recognized as goodwill. Where the
combination cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assets
obtained in the combination, the acquirer shall first recheck the fair values of the acquiree's identifiable assets,
liabilities and contingent liabilities obtained in the combination and the combination cost. Where the combination
cost is still less than the acquirer's interest in the fair value of the acquiree's net identifiable assets obtained in the
combination, the difference shall be included in the current profit/loss.
(1) Judgement criteria for control
Control means that an investor has the power over the invested company, gets variable return by
participating in related activities of the invested company and has the ability to influence the amount of the return
by its power over the invested company. The Company will judge whether these entities have been controlled by
the investee based on its comprehensive consideration of relevant facts and circumstances. Should any changes in
such facts and circumstances alter the elements defining control, a reassessment is promptly conducted. Relevant
facts and circumstances mainly include: a) the purpose of the investee's establishment; b) the investee's activities
and how decisions regarding them are made; c) whether the rights held by the investor currently enable it to
dominate the investee's activities; d) whether the investor receives variable returns from participating in the
investee's activities; e) whether the investor has the ability to use its power over the investee to affect the amount
of its returns; f) the relationship between the investor and other parties.
(2) Methods for preparing consolidated financial statements
The scope of consolidated financial statements is determined on the basis of control, including the Company
and the subsidiaries under its control.
The Company as the parent shall prepare the consolidated financial statements based on its financial
statements and those of its subsidiaries and according to other relevant information. The share of the subsidiaries
in current profit/loss attributable to non-controlling interests shall be presented in the consolidated income
statement as "net profit attributable to non-controlling interests" under the net profit. The share in current
comprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented in
the consolidated income statement as "total comprehensive income attributable to non-controlling interests" under
the total other comprehensive income.
For subsidiaries and businesses of the Company as the parent added by business combination involving
enterprises under the common control during the Reporting Period, the revenue, expenses, and profits of such
subsidiaries and businesses from the beginning to the end of the period of business combination shall be recorded
into the consolidated income statement. Cash flows of such subsidiaries and businesses from the beginning to the
end of the year of business combination shall be recorded into the consolidated cash flow statement, and relevant
items of the statements shall be adjusted through comparison of the statements, as if the reporting entity after the
combination had been existing from control of the final controlling party after the combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not under the common
control or other means, the revenue, expenses, and profits of such subsidiaries and businesses from the date of
acquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash flows of
such subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into the
consolidated cash flow statement.
When the Company as the parent disposes subsidiaries and businesses during the Reporting Period, the
revenue, expenses, and profits of such subsidiary and business from the beginning of the Reporting Period to the
date of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiary
and business from the beginning of the Reporting Period to the date of disposal shall be recorded into the
consolidated cash flow statement.
In the consolidated financial statements, when the Company as the parent acquires the equity held by the
minority shareholders in the subsidiary, the difference between the long-term equity investment obtained by
acquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated from
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
the date of acquisition or combination according to the new increase in shareholding proportion shall be adjusted
against the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writing
down, the retained earnings shall be adjusted.
Joint arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture and owns its
relevant assets and bears its relevant liabilities.
The Company shall recognize the following items related to share of interests and treat them according to
relevant Accounting Standards for Business Enterprises:
(1) Recognize assets solely held by the Company, and those jointly owned assets according to the
Company's share;
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilities according to
the Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of joint operation;
(4) Recognize revenue from sales in the joint operation according to the Company's share;
(5) Recognize expenses solely incurred, and those incurred for joint operation according to the Company's
share.
Refer to the Note "long-term equity investment" for the accounting policy of the Company for investments
in joint venture.
Cash of the Company refers to cash on hand and deposits that can be used for payment at any time; cash
equivalents refer to the short-term (no more than three months since the date of acquisition) and highly liquid
investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk of
change in value.
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping base currency at the benchmark
exchange rate (which is generally refers to the middle rate of the current foreign exchange rate published by the
People's Bank of China, the same below) published by the People's Bank of China on the transaction date; at the
end of the period, foreign currency monetary items shall be translated at the ending spot exchange rate; non-
monetary items in foreign currency measured at historical cost shall be translated at the spot exchange rate
prevailing on the transaction date; monetary items in foreign currency and measured at the fair value shall be
translated at the spot exchange rate prevailing on the date of determining fair value. The difference arising from
translation shall be included in the construction cost of relevant fixed assets if in connection with acquisition and
construction of the fixed assets which has not yet reached its intended condition for use; shall be included in
administrative expenses if incurring during the preparation period and not in connection with acquisition and
construction of fixed assets; and shall be included in current finance costs if incurring during the production and
operation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balance sheet date; all
items of owners' equity, except for retained earnings, shall be translated at the spot exchange rate at the time of
incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rate on the date
of transaction. Differences arising from the translation of foreign currency-denominated financial statements shall
be separately presented under the owners' equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated at the spot
exchange rate on the date of incurrence of the cash flows.
Financial instruments refer to any contract that gives rise to a financial asset of a party and financial
liabilities or equity instruments of other parties.
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a party of the
financial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) The contractual
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
right to charge the cash flow of the financial assets is terminated; 2) The financial assets have been transferred and
the Company has transferred almost all risks and remuneration of the financial assets ownership to the transferee;
and 3) The financial assets have been transferred and the Company does neither transfer nor retain almost all risks
and remuneration of the financial assets ownership but gives up the control over the financial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (or part
thereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize the assets to
be received and the liabilities to be assumed on the trading day, or derecognize the assets sold on the trading day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets, the Company classified financial assets into the following categories: Financial assets
measured at the amortized cost, financial assets measured at fair value through other comprehensive income, and
financial assets measured at fair value through profit and loss of the current period.
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets at fair value
through profit or loss, relevant transaction expenses shall be directly included in current profit or loss; for other
categories of financial assets, relevant transaction expenses shall be included in the initial recognition amount. For
notes receivable and accounts receivable arising from sales of goods or provision of service which do not include
or consider the compositions of major assets, the Company shall take the consideration expected to be received as
the initial recognition amount.
a) Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtaining contractual cash
flow, and the characteristics of contractual cash flow of such financial assets are basically the same as basic
borrowing arrangement, namely the cash flow arising on a specific date, which are solely payments of principal
and interest on the principal amount outstanding. The Company subsequently measures such financial assets at
amortized costs by effective interest method. The gain or loss from their amortization, impairment and
derecognition shall be included in current profit or loss.
b) Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receiving contractual cash
flow as well as selling, and the characteristics of contractual cash flow of such financial assets are basically the
same as basic borrowing arrangement. Such financial assets shall be measured at fair value, with the changes
included in other comprehensive income, but the impairment loss, exchange gain or loss and interest income
calculated by effective interest method shall be included in current profit or loss. The accumulative gains or losses
which are previously included in other comprehensive income shall be transferred out from other comprehensive
income and included in current profit or loss upon derecognition.
c) Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instruments measured at
amortized cost and debt instruments at fair value through other comprehensive income as financial assets at fair
value through profit or loss. For eliminating or significantly reducing accounting mismatch upon initial
recognition, financial assets may be designated as financial assets at fair value through profit or loss. Such
financial assets shall be subsequently measured at fair value with all changes in fair value included in current
profit or loss. Only when the Company changes the business model of managing financial assets, shall relevant
financial assets being affected be reclassified.
d) Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financial assets at fair
value through other comprehensive income upon initial recognition. The Company includes relevant dividends
income in current profit or loss, with changes in fair value included in other comprehensive income. The
accumulative gains or losses which are previously included in other comprehensive income shall be transferred
from other comprehensive income to retained earnings instead of current profit or loss upon derecognition of such
financial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownership to the
transferee, the financial assets shall be derecognized; if the Company retains almost all risks and remuneration of
the financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financial assets
ownership but gives up the control over the financial assets, such financial assets shall be derecognized and the
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
rights or obligations arising or retained during the transfer shall be separately recognized as assets or liabilities; if
control over the financial assets is retained, relevant financial assets shall be continuously recognized according to
the extent of involving in the financial assets transferred and relevant liabilities shall be recognized accordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost and financial
liabilities at fair value through profit or loss upon initial recognition.
Any financial liability meeting any of the following conditions can be designated upon initial measurement
as the financial liabilities at fair value through profit or loss: a) This designation can eliminate or significantly
reduce accounting mismatch; b) According to the risk management or investment strategy of the Company as
stated in formal written document, the portfolio of financial liabilities or the portfolio of financial assets and
financial liabilities is managed and evaluated on the basis of fair value, and reported to the key management on
the basis of this inside the Company; c) This financial liability contains embedded derivative to be separately split.
The Company shall determine classification of the financial liabilities upon initial recognition. For financial
liabilities at fair value through profit or loss, relevant transaction expenses shall be directly included in current
profit or loss; relevant transaction expenses of financial liabilities measured at amortized cost shall be included in
the initial recognition amount.
a) Financial liabilities measured at amortized cost: The Company subsequently measures such financial
liabilities at amortized costs by effective interest method. The gain or loss from derecognition or amortization
shall be included in current profit/loss.
b) Financial liabilities at fair value through profit or loss: Including held-for-trading financial liabilities
(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value through
profit or loss upon initial recognition.
Held-for-trading financial liabilities (including derivative instruments belonging to financial liabilities) shall
be subsequently measured at fair value (except for those concerning hedge accounting) with changes in fair value
included in current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fair value
arising from change of the credit risk of the Company shall be included in other comprehensive income;
accumulative gain or loss previously included in other comprehensive income shall be transferred from other
comprehensive income to retained earnings. Other changes in fair value shall be included in current profit or loss.
If previous accounting treatment may cause or expand the accounting mismatch in profit or loss, all gains or
losses of such financial liabilities (including the amount affected by change in credit risk of the Company) shall be
included in current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilities shall be
presented as net amount after offset in the balance sheet: The Company has the legal right to offset the recognized
amount and may exercise such legal right currently; the Company plans to settle with net amount or realize the
financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation in the active
market. For financial instruments without active market, the fair value shall be determined by valuation technique.
The Company shall adopt the valuation technique which is applicable in current situation and supported by
sufficient available data and other information for valuation. The Company shall choose inputs which are
consistent with the characteristics of assets or liabilities considered by the market participant in the transaction of
relevant assets and liabilities, and give priority to relevant observable inputs. If it is impossible or impractical to
obtain relevant observable inputs, the Company may use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortized cost,
investments in debt instruments at fair value through other comprehensive income, contract asset, lease
receivables, loan commitment and financial guarantee contracts based on the expected credit loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contract cash flows discounted by the Company at
the original effective interest rate and receivable according to the contract and all expected cash flows received,
namely the present value of all cash shortage. Among which, the financial assets purchased or originated that have
suffered from credit impairment shall be discounted at the effective interest rate of the financial assets after credit
adjustment.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during the expected lifetime
of financial instruments due to defaults.
expected lifetime of the financial instrument is less than 12 months, the expected lifetime) after the balance sheet
date due to possible defaults of financial instruments and is an integral part of the lifetime expected credit loss.
On the balance sheet date, the Company measured the expected credit loss of financial instruments at
different stages, respectively. If the credit risk of a financial instrument has not increased significantly since the
initial recognition, the financial instrument is in Stage 1, and the Company measures the provisions for loss
according to the 12-month expected credit loss; if the credit risk of a financial instrument has increased
significantly but the credit impairment has not yet occurred since the initial recognition, the financial instrument is
in Stage 2, and the Company measures the provisions for loss according to the lifetime expected credit losses; if
the financial instrument has suffered credit impairment since the initial recognition, it is in Stage 3, and the
Company measures the provisions for loss according to the lifetime expected credit loss.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly since the initial recognition, and the Company measures the provisions
for loss according to the 12-month expected credit loss.
For financial instruments with low credit risk in Stage 1 and Stage 2, the Company shall calculate the
interest income according to the carrying amount and effective interest rate before deducting the provisions for
impairment. For financial instruments in Stage 3, the Company shall calculate the interest income according to the
amortized cost and effective interest rate of the carrying amount after withdrawing the provisions for impairment.
For notes receivable and accounts receivable, regardless of whether there is major financing, the Company
shall always consider all reasonable and sound information, including prospective information, to estimate
expected credit loss of the above accounts receivable individually or in combination and adopt the simplified
model of expected credit loss. The Company shall always measure the provisions for loss according to the lifetime
expected credit loss.
a) At the end of the Reporting Period, if there is objective evidence indicating that impairment has occurred
in an account receivable, impairment test shall be carried out separately on it, such as accounts receivable in
dispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is
likely to fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debt
provisions shall be made based on the balance between the present value of future cash flows and its carrying
value.
b) If there is no objective evidence indicating that impairment or the credit loss of a single financial asset
cannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups by
characteristics of credit risk. The expected credit loss shall be calculated based on the combinations. Basis for
determining the combinations is as below:
Item Determination Basis
Bank acceptance bill group Bank acceptance bills
Letter of credit group Letters of credit
Commercial acceptance bills group Commercial acceptance bills
Accounts receivable group Receivables from related parties
Accounts receivable group External customer
Other receivables group Receivables from and payables to related parties
Other receivables group Cash float, deposits and other receivables with low credit risk
Other receivables group Other amounts
For accounts receivable divided into risk groups, the Company, with reference to historical experience in
credit loss and based on current situation and forecast of future economic situation, shall prepare a comparison
table between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expected
credit losses. For other groups, the Company, with reference to historical experience in credit loss and based on
current situation and forecast of future economic situation, shall calculate the expected credit losses according to
the exposure at default and the 12-month or lifetime expected credit loss rate.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
For debt investment and other debt investments, the Company shall calculate the expected credit loss
according to the nature of investment, types of counterparty and risk exposure, exposure at default and the 12-
month or lifetime expected credit loss rate.
The Company shall include the provision or reversal for loss made or included in current profit or loss. For
investment in debts instruments at fair value through other comprehensive income, the Company shall adjust other
comprehensive income when the impairment loss or gain is included in current profit or loss; for financial assets
measured at amortized cost, the provision for loss shall offset the carrying value of such financial assets.
Under the contract between the Company and the customer, the Company shall be entitled to receive the
contract price for the goods transferred to the customer and for the related services provided, while at the same
time assuming the performance obligation to transfer the goods or services to the customer. When the customer
has actually paid the contract consideration or the enterprise has transferred goods or services to the customer
before such consideration is due and payable, the right to receive the consideration for the transferred goods or
services should be presented as a contract asset and recognized as an accounts receivable when the unconditional
right to receive is obtained; conversely, the Company's obligation to transfer goods or services to the customer for
the consideration received or receivable from the customer should be presented as a contract liability. Any
contract liability shall be recognised as revenue when the Company fulfils its obligation to transfer goods or
provide services to the customer. The Company presents contract asset and contract liability under the same
contract on a net basis.
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finished products,
goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing Baijiu are measured at actual cost and priced by
weighted average method when sent out; paper, printing ink, and auxiliary materials for producing printed matters
are measured at planned cost when purchased and sent out, with the difference between actual cost and planned
cost included in “materials cost difference”. The difference to be amortized by the materials sent out shall be
calculated by materials cost difference by category at the end of the month, so as to adjust cost of the materials
sent out into actual cost; goods in process, self-manufactured semi-finished products, and finished products are
measured at actual cost and priced by weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision of inventory falling
price reserves
On the balance sheet date, the inventories shall be measured at the lower of cost and net realizable value. If
cost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shall
be made and included in current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion, estimated
selling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidence obtained and
after taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheet
events. Materials held for use in the production of inventories are measured at cost if the net realizable value of
the finished products in which they will be incorporated is higher than their cost; decline in the price of materials
indicates that the cost of the finished products exceeds their net realizable value, the materials are measured at net
realizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on the
contract price. If the quantities held by the Company is higher than the quantities of inventories specified in sales
contracts, the net realizable value of the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory is lower than
the cost.
future.
the product.
the market price of the raw material is lower than the book cost.
change of market demands due to change of consumer preference.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
The Company shall usually determine the falling price reserves of inventories on an item-by-item basis. For
inventories in large amount and low unit price, provision for inventory falling price reserves may be made by
category of the inventories. For item of inventories relating to a product line that is produced and marketed in the
same geographical area, have the same or similar end uses or purposes, and cannot be practically measured
separately from other items, provision for inventory falling price reserves may be made on an aggregate basis.
The Company shall determine the net realizable value of inventories on the balance sheet date. When factors
causing written-down of the inventory value disappear, the amount written down shall be recovered and will be
reversed from the provided inventory falling price reserves. The amount reversed will be included in current profit
or loss.
(4) Inventory system of inventories
The perpetual inventory system is adopted.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet both of the following conditions as
assets held for sale: 1) Assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions; 2) sales are highly likely to occur, that is,
the Company has already made a resolution on a sale plan and obtained a certain purchase commitment, and the
sale is expected to be completed within one year.
Non-current assets or disposal groups specifically obtained by the Company for resale shall be classified by
the Company as held-for-sale on the acquisition date when they meet the stipulated conditions of “expected to be
sold within one year” on the acquisition date, and may well satisfy the category of held-for-sale within a short
time (which is usually three months).
If the transaction between non-related parties fails to be completed within one year due to one of the
following circumstances which is over the control of the Company, and the Company still promises to sell the
non-current assets or disposal groups, the Company should continue to classify the non-current assets or disposal
groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions that lead to extension of the
sale. The Company has already acted on these conditions in a timely manner and it is expected to be able to
successfully deal with the conditions that led to the extension of the sale within one year after the conditions were
set; 2) due to unusual circumstances, the non-current assets or disposal groups held-for-sale failed to be sold
within one year. In the first year, the Company has taken necessary measures for these new conditions and the
assets or disposal groups meet the conditions of held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
When the Company initially measures or remeasures non-current assets or disposal groups held for sale on
the balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs, the
carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down
will be recognized as asset impairment loss and included in current profit and loss, and provision for impairment
of assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall be measured
at the lower of net amount of initial measurement amount minus sales cost and that of fair value minus selling
expenses, assuming they were not classified as held-for-sale during initial measurement. Except for non-current
assets or disposal groups acquired from business combination, the difference arising from taking the net amount
of fair value minus sales cost as initial measurement amount of the non-current assets or disposal groups shall be
included in current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the carrying value
of goodwill of the disposal groups shall be offset first, and then the carrying value of various non-current assets in
the disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or
amortization. Interest and other expenses of liabilities in the disposal group held for sale shall still be recognized.
If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheet
date minus the sale costs increases, the previous written-down amount will be restored and reversed from the asset
impairment loss recognized after the assets are classified as held-for-sale. The reversed amount shall be included
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
in the current profit or loss. The asset impairment loss recognized before being classified as held-for-sale shall not
be reversed.
If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet date
minus the sale costs increases, the previous written-down amount will be restored and reversed from the asset
impairment loss recognized for non-current assets after the assets are classified as held-for-sale. The reversed
amount shall be included in the current profit or loss. The carrying value of goodwill which had been written
down and the asset impairment loss recognized before non-current assets being classified as held-for-sale shall not
be reversed.
For the recognized amount of asset impairment loss of the disposal groups held for sale which is reserved
subsequently, the carrying value shall be increased according to the proportion of carrying value of various non-
current assets (except for goodwill) in the disposal groups.
When a non-current assets or disposal group ceases to be classified as held-for-sale or a non-current asset is
removed from the disposal group held for sale due to failure in meeting the classification conditions for the
category of held-for-sale, it will be measured by one of the followings, whichever is lower: a) Amount after
adjusting the carrying value before being classified as held for sale according to the depreciation, amortization or
impairment that would have been recognized under the assumption that it was not classified as held for sale; b) the
recoverable amount.
The gain or loss not yet recognized shall be included in current profit or loss when recognizing the non-
current assets or disposal groups held for sale.
(1) Determination of initial investment cost
a) Long-term equity investment from business combination
enterprises under the common control, the share of the carrying value of the owners' equity of the combined party
in the ultimate controller's consolidated financial statements on the date of combination shall be taken as the initial
investment cost of the long-term equity investment. The share premium of the capital reserve shall be adjusted
with the difference between the initial investment cost of the long-term equity investment and the carrying value
of the consideration paid. If the share premium of the capital reserve is insufficient for writing down, the retained
earnings shall be adjusted.
enterprises not under the common control, initial investment cost of the investment shall be the fair value of the
assets paid, liabilities incurred or assumed and equity securities issued by the Company in exchange for control
over the acquiree on the date of acquisition. For long-term equity investment in subsidiaries acquired through
business combination involving enterprises not under the common control implemented by multiple transactions,
the initial investment cost shall be the sum of the carrying value of equity investment held by the Company in the
acquiree before the date of acquisition and the cost of new investment on the date of acquisition.
b) For long-term equity investment acquired by cash payment, the initial investment cost shall be the
purchase price actually paid. The initial investment cost includes fees, taxes and other necessary expenses directly
related to acquire the long-term equity investment.
c) For long-term equity investment acquired by issuing equity securities, the initial investment cost of long-
term equity investment obtained by issuing of equity securities shall be the fair value of issuing the equity
securities.
d) The initial investment cost of long-term equity investment obtained by the exchange of non-monetary
assets shall be the fair value of the assets surrendered and relevant taxes payable if the exchange of non-monetary
assets has commercial nature and the fair value of the assets received or surrendered may be reliably measured,
unless there is conclusive evidence providing that fair value of the assets received is more reliable. For exchange
of non-monetary assets not meeting the above conditions, the initial investment cost shall be the carrying value of
the assets surrendered and relevant taxes payable.
e) The initial investment cost of a long-term equity investment obtained by debt restructuring shall be
recognized at the fair value.
(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equity
investment calculated by cost method shall be priced at the initial investment cost. The cost of long-term equity
investment shall be adjusted when the investment is added or recovered. The cash dividends or profits declared to
be distributed by the invested company should be recognized as current return on investment.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
The long-term equity investment in associates and joint ventures is accounted by the equity method.
If the initial cost of long-term equity investment is greater than the fair value of identifiable net assets of the
invested company gained from the investment, the initial cost of long-term equity investment shall not be adjusted.
If the initial investment cost is smaller than the fair value of identifiable net assets of the invested company gained
from the investment, the difference shall be included in current profit or loss, and the cost of long-term equity
investments shall be adjusted.
After the Company obtains a long-term equity investment, it shall, in accordance with the share of the net
profits and other comprehensive income of the invested company to be enjoyed or shared, recognize the return on
investment and other comprehensive income respectively, and adjust the carrying value of the long-term equity
investment. The Company shall, in accordance with the share in the profits or cash dividends declared and
distributed by the invested company, decrease the carrying value of the long-term equity investment accordingly.
As for other changes in owners' equity except for the net profit and loss, other comprehensive income and
profit distribution of the invested company, the Company shall adjust the carrying value of the long-term equity
investment and include it into the owners' equity. When the share of the net profit or loss of the invested company
is recognized, the net profit of the invested company shall be adjusted and recognized according to the fair value
of the net identifiable assets of the invested company when the investment is made.
For the transactions between the Company and associates and joint ventures, the unrealized gains and losses
of the internal transactions shall be offset by the proportion attributable to the Company, and the return on
investment is recognized accordingly. Unrecorded internal transaction losses incurred between the Company and
the invested company shall be recognized in full if they fell under asset impairment loss.
The Company shall recognize the net losses of the invested company until the carrying value of the long-
term equity investment and other long-term rights and interests which substantially form the net investment made
to the invested company are reduced to zero, unless the Company has the obligation to undertake extra losses. If
the invested company realizes a net profit in the subsequent period, the Company shall restore the recognition of
its share in profits after its share in profits offsets the share in unrecognized losses.
If the accounting policy and accounting period adopted by the invested company are inconsistent with those
adopted by the Company, financial statements of the invested company shall be adjusted and return on investment
and other comprehensive income shall be recognized according to the accounting policy and accounting period of
the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the carrying value and the actual price at
which the investment is obtained shall be included in current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investment originally
included in other comprehensive income shall be accounted for on the same basis as the invested company's direct
disposal of the relevant assets or liabilities when disposed. The owners' equity recognized as a result of changes in
other owners' equity other than net profit or loss, other comprehensive income, and profit distribution of the
invested company is carried forward proportionally into current profit or loss, except for other comprehensive
income arising from changes due to remeasurement of net liabilities or net assets of the defined benefit plan.
In case of loss of common control or significant influence on the invested company due to disposal of part of
the equity investments, residual equity will be accounted by the recognition and measurement criterion for
financial instruments. The difference between the fair value on the date of losing common control or significant
influence and the carrying value shall be included in current profit or loss. Other comprehensive income
recognized due to accounting of the original equity investment by equity method shall be accounted for on the
same basis as the invested company’s direct disposal of the relevant assets or liabilities when stopping using
equity method. Owner’s equity recognized due to other changes in other owners’ equity other than the net profit
or loss, other comprehensive income and profit distribution of the invested company will all be carried forward
into current profit or loss when stop using equity method.
If the Company disposes of part of the equity investment and loses control over the invested company, and if
the remaining equity after disposal can implement joint control or exert significant influence on the invested
company, it shall be accounted for using the equity method when the individual financial statements are prepared,
and the equity shall be adjusted as if the remaining equity had been accounted for using the equity method since
acquired; if the remaining equity after disposal cannot implement joint control or exert significant influence on the
invested company, it shall be subject to accounting treatment in accordance with the relevant provisions of the
criteria for recognition and measurement of financial instruments. The difference between the fair value and the
carrying value on the date of losing control shall be included in the current profit or loss.
If the disposed equities are acquired by the business combination due to the reasons such as additional
investment, the remaining equities after the disposal shall be calculated based on the cost method or equity
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
method in preparing the individual financial statements, and other comprehensive income and other owners'
equity recognized because of the equity method adopted for the calculation of the equity investment held prior to
the date of acquisition are carried forward in proportion; if the remaining equities after the disposal shall be
changed to be accounted in accordance with the recognition and measurement criterion for financial instruments,
other comprehensive income and other owners' equity shall be carried forward in full.
(4) Determination basis of common control and significant influence on the invested company
Common control means common control over an arrangement according to relevant provisions, and the
decision-making for relevant activities of such arrangement needs unanimous agreement of all participants sharing
the control.
Significant influence means having the power to participate in decision-making of the financial and
operating policies of the invested company, but not the power to control or jointly control the formulation of these
policies together with other parties.
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services, renting or
operation and management and with service life of more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and other
expenditures incurred before and for making the fixed assets reach its intended condition for use directly
attributable to such assets.
Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and for
making the fixed assets reach its intended condition for use.
Book value of fixed assets invested by investors shall be the value recognized by the investors.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting the
recognition conditions for fixed assets, and shall be included in current profit or loss if not meeting the recognition
conditions for fixed assets.
(2) Depreciation method
Category Depreciation Method Depreciation Life Residual Rate Yearly Depreciation Rate
Tenements and Buildings Straight-line method 25-30 years 3%-5% 3.17-3.88%
General equipment Straight-line method 10-12 years 3%-5% 7.92-9.70%
Specialised equipment Straight-line method eight years 3%-5% 11.18-12.13%
Transport equipment Straight-line method six years 3%-5% 15.83-16.17%
Other equipment Straight-line method six years 3%-5% 15.83-16.17%
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line
method (the straight-line depreciation) from the second month after they reach their intended serviceable
condition.
(1) For construction in progress, book value of the fixed assets shall be the necessary expenditures incurred
before the assets reach its intended condition for use.
(2) Standard and timing for transferring construction in progress to fixed assets
From the date when the construction in progress reaches the predetermined usable state, based on factors
such as the project budget, cost, or actual cost, it is transferred to fixed assets based on the estimated value and
depreciated according to the Company's fixed asset depreciation policy. Adjustment shall be made to the
originally and provisionally estimated value based on the actual cost after the completion settlement is handled,
but depreciation already provided shall not be adjusted.
(1) Recognition principles of borrowing costs:
Interest of borrowings, and amortization of discount or premium attributable to the acquisition and
construction or production of fixed assets, investment properties and inventories meeting the conditions of
capitalization period and capitalization amount should be capitalized and included in the cost of such assets; other
interest of borrowings, and amortization of discounts or premiums shall be included in expenses in current period.
The exchange differences incurred from special foreign currency borrowings for acquisition and construction or
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
production of fixed assets and investment properties shall be capitalized and included in the cost of such assets if
it is within the capitalization period. Auxiliary expenses for special borrowings, if incurred before the fixed assets
acquired or constructed reach the intended condition for use, shall be capitalized at the time of occurrence; other
auxiliary expenses shall be recognized as expenses in current period and included in current profit or loss.
(2) Capitalization period of borrowing costs:
a) Commencement of capitalization: Capitalization of borrowing interest, amortization of discount or
premium, and exchange differences shall be commenced when all the following conditions are met.
already begun.
b) Suspension of capitalisation: Where the acquisition and construction of a fixed asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall
be suspended and the borrowing costs shall be recognized as current expenses until recommencement of the
acquisition and construction of the asset.
c) Termination of capitalization: When the fixed assets acquired and constructed reach the intended
condition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be the amount of
interest expenses actually incurred in the current period less the interest income of the borrowings unused and
deposited in bank or the amount of return on investment from temporary investment. Interest of general
borrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements of
the excess of accumulated asset disbursements over the special borrowings by the capitalization rate of used
general borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.
(1) Service life and the basis for its determination, estimation, amortisation methods or review procedures
Externally acquired intangible assets shall be measured at the actual cost when acquired and averagely
amortized during the expected service life since the month when the intangible assets is acquired; book value of
the self-developed intangible assets shall be the sum of the expenditures during the research and development
stage of internal research and development projects of the Company which are eligible for capitalization and the
expenditures incurred before reaching the intended condition for use, and be averagely amortized over the
expected service life since the month in which the intangible asset is ready for use.
Service life of intangible assets shall be analyzed and determined when acquired. Intangible assets with
limited service life shall be amortized over period during which they may bring economic interests; if the period
during which the intangible assets may bring economic benefit to the enterprise is unforeseeable, such intangible
assets shall be considered as intangible assets with uncertain service life and shall not be amortized.
Impairment test: At the end of each year, the Company shall recheck the service life and amortization
method of the intangible assets. Intangible assets with uncertain service life shall be subject to impairment test
every year whether there is any indication of impairment.
(2) Scope of R&D expenditures and related accounting treatment
The scope of R&D expenditures includes staff salaries for R&D personnel, direct input costs, depreciation
and amortisation expenses, and other expenses.
The expenditures of the Company’s internal research and development projects are divided into research
phase expenditures and development phase expenditures.
Research phase expenditures shall be included in current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets only when meeting
all of the following conditions, otherwise shall be included in current profit or loss when incurred:
a) It is technically feasible to complete this intangible assets so that it can be used or sold.
b) The Company has the intention to complete the intangible assets and use or sell them.
c) The way in which intangible assets generate economic benefits, including the ability to prove that the
products produced using the intangible assets exist in the market or the intangible assets themselves exist in the
market, and the intangible assets will be used internally, can prove their usefulness; sufficient technical, financial
resources and other resources support to complete the development of the intangible asset and the ability to use or
sell the intangible asset; the expenditure attributable to the development phase of the intangible asset can be
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
reliably measured.
For the long-term equity investments, investment properties, fixed assets, construction in progress,
intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, an
impairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less than its
carrying value according to the test, provision for impairment will be made at the difference and included in
impairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting the
disposal expenses and the present value of estimated future cash flow of the asset. The provision for impairment
of assets is calculated and made on an individual basis. If it is difficult for the Company to estimate the
recoverable amount of the individual asset, the recoverable amount of an asset group, to which the said asset
belongs, shall be determined. Asset group is the smallest asset group that can independently generate cash inflows.
For goodwill, impairment test shall be conducted at least at the end of each year. Impairment test shall be
carried out in combination with the relevant asset group or combination of asset group.
The carrying value of goodwill caused by business combination is amortized to relevant asset groups with a
reasonable method from the date of acquisition when the Company carries out impairment test on goodwill; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When
the carrying value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall be
evenly amortized according to the proportion of the fair value of each assets group or combination of assets
groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value
cannot be reliably measured, it should be amortized according to the proportion of the carrying value of each asset
group or combination of assets groups in the total carrying value of assets groups or combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groups containing
goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the
Company shall first conduct an impairment test on the assets groups or combinations of assets groups not
containing goodwill, calculate the recoverable amount and compare it with relevant carrying value to recognize
the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or
combinations of assets groups containing goodwill, and compare the carrying value of these assets groups or
combinations of assets groups (including the carrying value of the goodwill apportioned thereto) with the
recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups
is lower than the carrying value thereof, the Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.
Long-term prepaid expense is recorded according to the actual amount incurred and amortized over the
benefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expense
item cannot benefit a later accounting period, the amortized value of the item that has not been amortized shall be
transferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement of fixed
assets under operating lease shall be amortized averagely within the benefit period.
(1) Accounting treatment of short-term remuneration
Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within 12
months after the end of the year in which the employee provided relevant services.
During the accounting period when employees serve the Company, the actual short-term remuneration is
recognized as liabilities and included in current profit or loss or costs of relevant assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by the enterprise after
retirement from or termination of the labor relation with the enterprise in exchange for the service provided by the
employee. Post-employment benefits are divided into two types: Defined contribution plans and defined benefit
plans.
a) Defined contribution plan: Contribution which shall be made by the Company separately on the balance
sheet date in exchange for the service provided by the employee during the accounting period shall be recognized
as payroll liabilities and included in current profit or loss or relevant asset cost.
b) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method, the
benefit obligations arising from the defined benefit plan shall be attributable to the period in which the employee
provides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement of
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
the net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income and
shall not be reversed to profit or loss in subsequent accounting periods.
(3) Accounting treatment of dismissal benefits
Dismissal benefits refer to the compensation paid to the employee by the enterprise for termination of the
labor contract with the employee prior to expiration, or encouraging the employee to accept downsizing
voluntarily.
If the enterprise provides dismissal benefits, payroll liabilities arising from dismissal benefits shall be
recognized and included in current profit or loss on the earlier date of:
a) The date when the enterprise could not unilaterally withdraw the dismissal benefits which offered by the
plan or layoff proposal due to termination of the labor relation.
b) The date when the enterprise recognizes the cost or expense related to the reorganization related to
payment of the dismissal benefits.
(4) Accounting treatment of the other long-term employee welfare
Other long-term employee benefits refer to all payrolls except for short-term remuneration, post-
employment benefits, and dismissal benefits, including long-term paid absences, long-term disability benefits,
long-term profit sharing plan, etc.
The other long-term employee benefits provided by the enterprise shall be recognized and measured as net
liability or net asset of other long-term employee benefits according to relevant provisions of the defined benefit
plan, except for those meetings the conditions of defined contribution plan.
(1) Recognition criteria for provisions
When obligations related to contingencies meet the following conditions, the Company shall recognize them
as provisions:
a) The obligation is the current obligation assumed by the Company.
b) The performance of this obligation may result in the outflow of economic benefits.
c) The amount of this obligation can be reliably measured.
(2) Measurement method of provisions
Considering the risks, uncertainties, and time value of money related to contingencies, the provisions shall
be initially measured at the best estimate of the required expenditure for the performance of current obligation. If
the time value of money is significant, the best estimate shall be determined after discounting relevant future cash
outflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjust the
carrying value to reflect current best estimate.
(1) Recognition principles of revenues
Revenue is the total inflow of economic benefits arising from the Company's ordinary activities that would
result in an increase in shareholders' equity and are unrelated to capital contributions by shareholders.
The Company recognizes revenue when it has fulfilled its performance obligations under the contract, that is,
when the customer obtains control of the relevant goods. Obtaining control over related goods means being able to
dominate the use of the goods and obtain almost all economic benefits from them.
If the contract contains two or more performance obligations, the Company will allocate the transaction
price to each individual performance obligation according to the relative proportion of the individual selling price
of the goods or services promised under each individual performance obligation on the contract commencement
date, and measure the revenue according to the transaction price allocated to each individual performance
obligation.
Transaction price is the amount of consideration that the Company is expected to be received due to the
transfer of goods or services to customers, excluding the amount collected on behalf of third parties. In
determining the transaction price of a contract, if variable consideration exists, the Company will determine the
best estimate of the variable consideration based on the expected or most likely amount and include in the
transaction price in an amount not exceeding the amount that the accumulated recognized revenue will most likely
not be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financing
component in the contract, the Company will determine the transaction price according to the amount payable by
the customer in cash when obtaining the control right of the goods. The difference between the transaction price
and the contract consideration will be amortized by the effective interest rate method during the contract period. If
the interval between the transfer of control right and the payment price by the customer does not exceed one year,
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
the Company will not consider the financing component.
Performance obligations are fulfilled within a certain period if any of the following conditions is met;
otherwise, performance obligations are fulfilled at a certain point in time:
a) The customer acquires and consumes the economic benefits of the Company's performance at the same
time as the Company's performance;
b) The customer controls the goods under construction during the performance of the Company;
c) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect money for the accumulated performance that has been completed so far
during the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenue according
to the performance progress within that period, except that the performance progress cannot be reasonably
determined. The Company determines the performance progress of the services provided according to the input
method (or output method). When the performance progress cannot be reasonably determined, if the costs
incurred by the Company are expected to be compensated, the revenue shall be recognized according to the
amount of costs incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods. When judging whether the customer has acquired
control of goods or services, the Company will consider the following indications:
a) The Company has a present right to receive payment for the goods or services, i.e. the customer has a
present obligation to pay for the goods;
b) The Company has transferred legal ownership of the goods to the customer, i.e. the customer has legal
ownership of the goods;
c) The Company has physically transferred the goods to the customer, i.e. the customer has taken physical
possession of the goods;
d) The Company has transferred to the customer the principal risks and rewards of ownership of the goods,
i.e., the customer has acquired the principal risks and rewards of ownership of the good;
e) The customer has accepted the goods.
(2) Recognition methods of revenues
a) Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goods to the
buyer according to the contract, and recognizes revenue after the buyer signs for it;
b) Recognition methods of revenues for direct sales model
Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyer and
receives payment or acquires the right to receive payment;
On-line sales; Revenue is recognized when the Company receives the payment transferred from the e-
commerce platform from the consumer.
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by the Company and
used for acquisition or construction or for formation of long-term assets in other ways, including the financial
allocation for purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assets
and others.
The specific standard of the Company for classifying the government subsidies as asset-related subsidies:
government subsidies obtained by the Company and used for acquisition or construction or for formation of long-
term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Company classifies
the government subsidies as asset-related subsidies or income-related subsidies were as follows: Whether the
subsidies are used for acquisition or construction or for formation of long-term assets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Government subsidies, when
actually received, shall be recognized as deferred income and transferred equally to current profit or loss based on
the expected service life of the long-term assets when the long-term assets are available for use.
The asset-related government subsidies are recognized as deferred income, and included in current profit or
loss by stages based on the service life of the assets acquired and constructed. If the related asset is sold,
transferred, scrapped or damaged before the end of the service life, the deferred income balance not yet distributed
shall be transferred to the profits and losses of the period in which the assets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidies
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Income-related government subsidies refer to all the government subsidies other than asset-related
government subsidies.
The specific standard of the Company for classifying the government subsidies as income-related subsidies:
All the government subsidies other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Government subsidies,
when actually received, shall be included in current profit or loss if used to compensate the relevant expenses or
losses of the Company in the subsequent period; included in current profit or loss directly when acquired if used
to compensate relevant expenses or losses incurred by the Company.
Income-related government subsidies used to compensate the relevant expenses or losses of the Company in
the subsequent period shall be recognized as deferred income when acquired; included in current profit or loss in
the period in which relevant expenses are recognized; those used to compensate relevant expenses or losses
incurred by the Company, shall be directly included in profit or loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be included in other incomes
or used to offset relevant costs and expenses according to the substance of the economic business. The
government subsidies irrelevant to the daily activities of the Company shall be included in non-operating revenue.
The deferred income tax assets and deferred income tax liabilities are calculated and recognized according
to the difference (temporary difference) between the tax base and carrying value of the assets and liabilities.
Deductible losses that can be carried forward to the subsequent year to offset taxable income according to the tax
law shall be considered as temporary difference, and corresponding deferred income tax assets shall be recognized.
For temporary differences related to the initial recognition of goodwill, corresponding deferred income tax
liabilities shall not be recognized. For the temporary differences related to the initial recognition of the assets or
liabilities incurred in the transaction not for business combination that will not affect the accounting profits and
taxable income (or deductible losses), corresponding deferred income tax assets and deferred income tax liabilities
shall not be recognized. The deferred income tax assets and deferred income tax liabilities are measured on the
balance sheet date according to the applicable tax rate in the period of expected recovery of relevant assets or
liquidation of relevant liabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which the Company may
obtain for deducting deductible temporary differences, deductible losses and tax deduction. Deferred income tax
assets and deferred income tax liabilities arising from temporary differences related to the investment in
subsidiaries and associates shall be recognized. If the time of reversal of temporary differences can be controlled
by the Company and the temporary differences are likely to not be reversed in the foreseeable future, deferred
income tax assets and liabilities shall not be recognized.
From the effectiveness date of a contract, the Company assesses whether the contract is a lease or includes
any lease. If a party to the contract transfers the right allowing the control over the use of one or more assets that
have been identified within a certain period, in exchange for a consideration, such contract is a lease or includes a
lease.
(1) Accounting treatment of the Company as the lessee
On the commencement date of the lease term, except for short-term leases and leases of low-value assets
being adopted simplified treatment, the Company recognises right-of-use assets or lease liabilities for the lease.
Right-of-use assets shall be initially measured at costs, including: a) The initial measurement amount of the
lease liabilities; b) the lease payment paid on or before the commencement date of the lease term. If there is a
lease incentive, the amount related to the lease incentive taken should be deducted; c) the initial direct cost
incurred by the lessee; d) the estimated cost that the Company will use to pull down and remove the leasehold
property, and restore the site of the leasehold property or restore the leasehold property to the state agreed in the
lease clauses (excluding the costs incurred by inventories for production).
The lease liabilities shall be initially measured at the present value of the unpaid lease payment from the
commencement date of the lease term. When calculating the present value of lease payments, the Company uses
the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,
the Company’s incremental lending rate is used as the rate of discount.
After the commencement date of the lease term, the Company subsequently measures the right-of-use assets
at cost model, and the right-of-use assets are subject to depreciation by using the straight-line method. Meanwhile,
the interest expenses of the lease liabilities in each period of the lease term are calculated, and shall be included in
the profit or loss for the current period, unless otherwise stipulated to be included in underlying asset costs.
Variable lease payments that are not covered in the measurement of the lease liabilities are included in current
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
profit or loss when actually incurred, unless otherwise stipulated to be included in underlying asset costs.
For short-term leases within 12 months and leases of low-value assets, the Company chooses not to
recognise right-of-use assets and lease liabilities. The relevant lease expenditures are included in relevant asset
cost or the profit or loss for the current period in the straight-line method in each period of the lease term.
(2) Accounting treatment of the Company as the lessor
a) Classification of lease
The Company classifies leases into finance leases and operating leases at the inception of leases. A finance
lease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, are
substantially transferred, regardless of whether the ownership is eventually transferred or not. An operating lease
refers to all leases other than finance leases.
b) Accounting treatment of financial lease
On the commencement date of the lease term, the Company recognises the finance lease receivables for the
finance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance lease
receivables, the sum of the unsecured residual value and the present value of the lease payments receivable not yet
received on the commencement date of the lease term discounted at the interest rate implicit in lease is the book
value of the finance lease receivables. The Company calculates and recognises the interest income in each period
within the lease term at a fixed interest rate implicit in the lease. The received variable lease payments that are not
included in the measurement of the net investment in the lease are included in profit or loss for the current period
when they are actually incurred.
c) Accounting treatment of operating lease
The Company recognises the lease payments receivable of the operating lease as rental earning in each
period within the lease term on a straight-line basis or according to other systematic and reasonable methods. The
initial direct costs related to the operating lease are capitalised, amortised within the lease term on the same basis
as the recognition of rental earning, and included in profit or loss for the current period. The received variable
lease payments related to the operating lease that are not included in the lease payments receivable are included in
profit or loss for the current period when they are actually incurred.
(1) Changes to Significant Accounting Policies
? Applicable □ Not applicable
Change and reason
Concerning the adoption of Interpretation No. 16 for the Accounting Standards for Business Enterprises, on 30 November
and liabilities arising from a single transaction is not exempt in initial recognition” was effective from 1 January 2023.
For a single transaction to which Interpretation No. 16 applies that occurred between the beginning of the earliest period
presented in the financial statements to which Interpretation No. 16 was first applied (i.e., 1 January 2022) and 1 January 2023,
adjustments shall be made in accordance with Interpretation No. 16. For taxable temporary differences and deductible temporary
differences arising from lease liabilities and right-of-use assets recognised on 1 January 2022 as a result of a single transaction to
which Interpretation No. 16 applies, the cumulative effects shall be adjusted to retained earnings and other relevant financial
statement items on 1 January 2022 in accordance with Interpretation No. 16 and Accounting Standard No. 18 for Business
Enterprises—Income Tax.
The effects of the above-mentioned regulations on the consolidated financial statements are as follows:
Unit: RMB
Item 31 December 2022/2022 (before) Amount of effect
(restated)
Deferred income tax assets 2,043,089,823.62 2,140,289,194.58 97,199,370.96
Deferred income tax liabilities 94,360,946.95 94,360,946.95
Retained earnings 79,028,605,172.04 79,031,159,753.65 2,554,581.61
Surplus reserves 28,432,198,524.98 28,432,482,367.38 283,842.40
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Non-controlling interests 2,659,130,827.92 2,659,130,827.92
Income tax expense 9,132,888,784.02 9,133,735,140.97 846,356.95
Net profit/loss attributable to non-
controlling interests
The effects of the above-mentioned regulations on the financial statements of the Company as the parent are
as follows:
Item 31 December 2022/2022 (before) Amount of effect
(restated)
Deferred income tax assets 1,082,797.53 1,375,528.61 292,731.08
Deferred income tax liabilities 487,152.85 487,152.85
Retained earnings 52,952,968,888.03 52,952,793,908.44 -174,979.59
Surplus reserves 13,295,638,080.20 13,295,618,638.02 -19,442.18
Income tax expense 265,217,451.15 265,219,502.86 2,051.71
(2) Changes to Significant Accounting Estimates
□ Applicable ? Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First
Implementation of any New Accounting Standard or Standard Interpretation Implemented
since 2023
? Applicable □ Not applicable
Adjustments:
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2022 1 January 2023 Amount of adjustment
Current assets:
Monetary assets 92,358,426,975.79 92,358,426,975.79
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 119,918,307.60 119,918,307.60
Accounts receivable 35,686,942.32 35,686,942.32
Receivables financing 28,904,198,420.44 28,904,198,420.44
Prepayments 135,982,868.14 135,982,868.14
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 30,901,231.69 30,901,231.69
Of which: Interest receivable
Dividends receivable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Financial assets purchased under resale
agreements
Inventories 15,980,657,013.57 15,980,657,013.57
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets
Total current assets 137,565,771,759.55 137,565,771,759.55
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 1,986,387,524.78 1,986,387,524.78
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 5,312,971,445.61 5,312,971,445.61
Construction in progress 3,773,155,983.95 3,773,155,983.95
Productive living assets
Oil and gas assets
Right-of-use assets 380,922,885.84 380,922,885.84
Intangible assets 518,517,835.31 518,517,835.31
Development costs
Goodwill 1,621,619.53 1,621,619.53
Long-term prepaid expense 158,586,327.06 158,586,327.06
Deferred income tax assets 2,043,089,823.62 2,140,289,194.58 97,199,370.96
Other non-current assets 972,502,674.97 972,502,674.97
Total non-current assets 15,148,956,120.67 15,246,155,491.63 97,199,370.96
Total assets 152,714,727,880.22 152,811,927,251.18 97,199,370.96
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Loans from other banks and financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 887,970,376.53 887,970,376.53
Accounts payable 7,246,802,709.58 7,246,802,709.58
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Advances from customers 16,160,671.49 16,160,671.49
Contract liabilities 12,379,125,542.70 12,379,125,542.70
Financial assets sold under repurchase
agreements
Customer deposits and deposits from
other banks and financial institutions
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 3,375,526,829.88 3,375,526,829.88
Taxes and levies payable 5,301,718,185.93 5,301,718,185.93
Other payables 4,631,434,915.43 4,631,434,915.43
Of which: Interest payable
Dividends payable 13,191,392.99 13,191,392.99
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with assets
held for sale
Current portion of non-current liabilities 375,682,599.77 375,682,599.77
Other current liabilities 1,544,723,419.34 1,544,723,419.34
Total current liabilities 35,759,145,250.65 35,759,145,250.65
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities 16,976,148.73 16,976,148.73
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 254,416,864.75 254,416,864.75
Deferred income tax liabilities 94,360,946.95 94,360,946.95
Other non-current liabilities
Total non-current liabilities 271,393,013.48 365,753,960.43 94,360,946.95
Total liabilities 36,030,538,264.13 36,124,899,211.08 94,360,946.95
Owners’ equity:
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which : Preference shares
Perpetual bonds
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 28,432,198,524.98 28,432,482,367.38 283,842.40
General reserve
Retained earnings 79,028,605,172.04 79,031,159,753.65 2,554,581.61
Total equity attributable to owners of the
Company as the parent
Non-controlling interests 2,659,130,827.92 2,659,130,827.92
Total owners’ equity 116,684,189,616.09 116,687,028,040.10 2,838,424.01
Total liabilities and owners’ equity 152,714,727,880.22 152,811,927,251.18 97,199,370.96
Balance Sheet of the Company as the parent
Unit: RMB
Item 31 December 2022 1 January 2023 Amount of adjustment
Current assets:
Monetary assets 51,104,448,387.06 51,104,448,387.06
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayments 33,048,447.08 33,048,447.08
Other receivables 8,462,631,304.66 8,462,631,304.66
Of which: Interest receivable
Dividends receivable 2,126,718,123.00 2,126,718,123.00
Inventories
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets
Total current assets 59,600,128,138.80 59,600,128,138.80
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 13,383,816,192.05 13,383,816,192.05
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Investment property
Fixed assets 100,713,555.25 100,713,555.25
Construction in progress 115,870,542.48 115,870,542.48
Productive living assets
Oil and gas assets
Right-of-use assets 1,948,611.38 1,948,611.38
Intangible assets 38,664,783.59 38,664,783.59
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 1,082,797.53 1,375,528.61 292,731.08
Other non-current assets
Total non-current assets 13,643,296,482.28 13,643,589,213.36 292,731.08
Total assets 73,243,424,621.08 73,243,717,352.16 292,731.08
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1,134,674.42 1,134,674.42
Advances from customers
Contract liabilities
Employee benefits payable 4,106,534.36 4,106,534.36
Taxes and levies payable 277,283,965.88 277,283,965.88
Other payables 146,366,462.73 146,366,462.73
Of which: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 430,062,561.70 430,062,561.70
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 500,000.00 500,000.00
Deferred income tax liabilities 487,152.85 487,152.85
Other non-current liabilities
Total non-current liabilities 500,000.00 987,152.85 487,152.85
Total liabilities 430,562,561.70 431,049,714.55 487,152.85
Owners’ equity:
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 13,295,638,080.20 13,295,618,638.02 -19,442.18
Retained earnings 52,952,968,888.03 52,952,793,908.44 -174,979.59
Total owners’ equity 72,812,862,059.38 72,812,667,637.61 -194,421.77
Total liabilities and owners’ equity 73,243,424,621.08 73,243,717,352.16 292,731.08
Consolidated Income Statement
Unit: RMB
Amount of
Item 2022 (before) 2022 (restated)
adjustment
I Total revenues 73,968,640,704.54 73,968,640,704.54
Of which: Operating revenue 73,968,640,704.54 73,968,640,704.54
Interest income
Insurance premium income
Fee and commission income
II Total costs and expenses 37,049,016,916.17 37,049,016,916.17
Of which: Cost of sales 18,178,425,659.64 18,178,425,659.64
Interest costs
Fee and commission costs
Surrenders
Net insurance claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Reinsurance premium expense
Taxes and levies 10,748,802,377.04 10,748,802,377.04
Selling expense 6,844,237,013.17 6,844,237,013.17
Administrative expense 3,068,119,268.45 3,068,119,268.45
R&D expense 235,783,645.79 235,783,645.79
Finance costs -2,026,351,047.92 -2,026,351,047.92
Of which: Interest expense 48,003,667.91 48,003,667.91
Interest income 2,075,700,630.12 2,075,700,630.12
Add: Other income 186,525,904.41 186,525,904.41
Return on investment (“－” for loss) 92,571,951.15 92,571,951.15
Of which: Share of profit or loss of joint
ventures and associates
Income from the derecognition of
financial assets at amortized cost
Exchange gain (“－” for loss)
Net gain on exposure hedges (“－” for
loss)
Gain on changes in fair value (“－” for
loss)
Credit impairment loss (“－” for loss) -1,437,932.66 -1,437,932.66
Asset impairment loss (“－” for loss) -26,207,459.87 -26,207,459.87
Asset disposal income (“－” for loss) 3,347,202.23 3,347,202.23
III Operating profit (“－” for loss) 37,174,423,453.63 37,174,423,453.63
Add: Non-operating income 38,885,270.86 38,885,270.86
Less: Non-operating expense 109,788,008.25 109,788,008.25
IV Gross profit (“－” for gross loss) 37,103,520,716.24 37,103,520,716.24
Less: Income tax expense 9,132,888,784.02 9,133,735,140.97 846,356.95
V Net profit (“－” for net loss) 27,970,631,932.22 27,969,785,575.27 -846,356.95
(I) By operating continuity
for net loss)
(“－” for net loss)
(II) By ownership
Company as the parent
interests
VI Other comprehensive income, net of tax
Other comprehensive income, net of tax
attributable to owners of the Company as the parent
(I) Other comprehensive income that will not
be reclassified to profit or loss
on defined benefit schemes
will not be reclassified to profit or loss under the
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
equity method
debt investments
changes in own credit risk
(II) Other comprehensive income that will be
reclassified to profit or loss
will be reclassified to profit or loss under the equity
method
debt investments
from the reclassification of financial assets
other debt investments
translation of foreign currency-denominated
financial statements
Other comprehensive income, net of tax
attributable to non-controlling interests
VII Total comprehensive income 27,970,631,932.22 27,969,785,575.27 -846,356.95
Total comprehensive income attributable to
owners of the Company as the parent
Total comprehensive income attributable to
non-controlling interests
VIII Earnings per share：
(I) Basic earnings per share 6.876 6.876
(II) Diluted earnings per share 6.876 6.876
Income Statement of the Company as the parent
Unit: RMB
Amount of
Item 31 December 2022 1 January 2023
adjustment
I Operating revenue
Less: Cost of sales
Taxes and levies 370,416.70 370,416.70
Selling expense
Administrative expense 142,946,488.68 142,946,488.68
R&D expense 55,470,547.04 55,470,547.04
Finance costs -1,320,194,889.62 -1,320,194,889.62
Of which: Interest expense 68,515.70 68,515.70
Interest income 1,320,290,654.38 1,320,290,654.38
Add: Other income 20,873,010.56 20,873,010.56
Return on investment (“－” for loss) 18,799,779,256.49 18,799,779,256.49
Of which: Share of profit or loss of joint
ventures and associates
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Income from the derecognition of
financial assets at amortized cost (“－” for loss)
Net gain on exposure hedges (“－” for loss)
Gain on changes in fair value (“－” for loss)
Credit impairment loss (“－” for loss) -1,002,989.80 -1,002,989.80
Asset impairment loss (“－” for loss)）
Asset disposal income (“－” for loss)
II Operating profit (“－” for loss) 19,941,056,714.45 19,941,056,714.45
Add: Non-operating income 413,500.00 413,500.00
Less: Non-operating expense 58,415,869.51 58,415,869.51
III Gross profit (“－” for gross loss) 19,883,054,344.94 19,883,054,344.94
Less: Income tax expense 265,217,451.15 265,219,502.86 2,051.71
IV Net profit (“－” for net loss) 19,617,836,893.79 19,617,834,842.08 -2,051.71
(I) Net profit from continuing operations (“－” for
net loss)
(II) Net profit from discontinued operations (“－”
for net loss)
V Other comprehensive income, net of tax
(I) Other comprehensive income that will not be
reclassified to profit or loss
defined benefit schemes
not be reclassified to profit or loss under the equity
method
investments
changes in own credit risk
(II) Other comprehensive income that will be
reclassified to profit or loss
reclassified to profit or loss under the equity method
investments
from the reclassification of financial assets
debt investments
of foreign currency-denominated financial statements
VI Total comprehensive income 19,617,836,893.79 19,617,834,842.08 -2,051.71
VII Earnings per share：
(I) Basic earnings per share
(II) Diluted earnings per share
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
VI Taxes
Tax Item Tax Basis Tax Rate
VAT Taxable sales revenue
tax)
Consumption tax Taxable price or ex-factory price 10%, 20%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 25%
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Note on disclosure of taxpayer applying different corporate income tax rates:
Name of taxpayer Income tax rate
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 15%
Sichuan Yibin Plastic Packaging Materials Company Limited 15%
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. 15%
Yibin Xinxing Packaging Co., Ltd. 20%
Sichuan Jiebeike Environmental Technology Co., Ltd. 20%
Sichuan Jinwuxin Technology Co., Ltd. 20%
(1) Value added tax (VAT)
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate of
social welfare enterprise "F.Q.ZH.Z. No. 51004121049" issued by the Department of Civil Affairs of Sichuan
Province. The Company, conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VAT
Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the State
Administration of Taxation (C.SH. [2016] No. 52), enjoys the drawback policy of value-added tax. Recoverable
value-added tax of each month = Number of disabled person employed by the taxpayer in current month x
quadruple of the minimum wage of current month. The amount of value-added tax refunded in 2023 was
RMB83,435,000.00.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials Company
Limited, and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to the
Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Corporate
Income Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of the
Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission)
has been filed with the Local Taxation Bureau of Yibin for preferential corporate income tax and pays the
corporate income tax at 15%.
Yibin Xinxing Packaging Co., Ltd., Sichuan Jiebeike Environmental Technology Co., Ltd., and Sichuan
Jinwuxin Technology Co., Ltd., comply with the provisions of the Announcement of the State Taxation
Administration and the Ministry of Finance on Further Supporting Small and Micro Enterprises and Individual
Industrial and Commercial Businesses through Relevant Tax and Fee Policies (Announcement No. 12 of 2023 of
the Ministry of Finance and the State Taxation Administration). They are eligible for a 25% reduction in the
calculation of taxable income for small and micro-profit enterprises, and they are subject to a 20% enterprise
income tax rate, continuing until 31 December 2027.
VII Notes to the Consolidated Financial Statements
Unit: RMB
Item Closing balance Opening balance
Cash on hand 42,156.81 19,772.01
Bank deposits 74,892,248,621.63 57,099,833,261.29
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Other monetary assets 264,472,639.86 214,242,264.36
Deposits in Wuliangye Group Finance 40,299,537,492.34 35,044,331,678.13
Total 115,456,300,910.64 92,358,426,975.79
Of which: total overseas funds
A liquor/wine production enterprise should disclose in detail whether there is any special interest
arrangement where the Company and any of its stakeholders have a joint account for funds, etc.
□ Applicable ? Not applicable
(1) Notes receivable presented by category
Unit: RMB
Item Closing balance Opening balance
Letters of credit 119,918,307.60
Total 119,918,307.60
(2) Notes receivable by method of establishing allowance for doubtful account
Unit: RMB
Closing balance Opening balance
Allowance Allowance
Gross
for doubtful Gross amount for doubtful
amount
account account
Allo
As Carr
Allow wanc
Category % of ying
ance e Carrying amount
the A amo As % of
as % Am as %
Am total m unt the total
of the Amount oun of
ount gros ou gross
gross t the
s nt amount
amoun gross
amo
t amo
unt
unt
Notes receivable for
which allowances for
doubtful accounts are
established on an
individual basis
Notes receivable for
which allowances for
doubtful accounts are 119,918,307.60 100.00% 119,918,307.60
established on a
grouping basis
Of which:
Letters of credit 119,918,307.60 100.00% 119,918,307.60
Total 119,918,307.60 100.00% 119,918,307.60
Allowances for doubtful notes receivable established using the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
The Company had no allowances for doubtful accounts established, recovered or reversed in the current
period.
(4) Notes receivable in pledge at the end of the current period
The Company had no notes receivable pledged by the Company at the end of the period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(5) Notes receivable endorsed or discounted by the Company at the end of the current period and not
expired yet on the balance sheet date
The Company had no notes receivable endorsed or discounted by the Company at the end of the period and
not expired yet on the balance sheet date.
(6) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
(1) Accounts receivable presented by category
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year (inclusive) 42,890,430.03 35,188,964.20
More than 3 years 6,233,545.71 8,148,052.25
More than 5 years 5,760,358.10 6,763,204.11
Total 49,434,094.62 43,622,634.09
The Company had no accounts receivable with significant individual amounts aged over three years at the end
of the period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(2) Accounts receivable by method of establishing allowance for doubtful account
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross amount Gross amount
account account
Category Carrying Carrying
As % of Allowanc As % of Allowance
the total e as % of amount the total as % of the amount
Amount Amount Amount Amount
gross the gross gross gross
amount amount amount amount
Accounts receivable
for which allowances
for doubtful accounts 3,477,979.92 7.04% 3,477,979.92 100.00% 5,174,866.86 11.86% 5,174,866.86 100.00%
are established on an
individual basis
Of which:
Of which: External
customers
Accounts receivable
for which allowances
for doubtful accounts 45,956,114.70 92.96% 3,308,653.22 7.20% 42,647,461.48 38,447,767.23 88.14% 2,760,824.91 7.18% 35,686,942.32
are established on a
grouping basis
Of which:
Of which: External
customers
Related
parties
Total 49,434,094.62 100.00% 6,786,633.14 13.73% 42,647,461.48 43,622,634.09 100.00% 7,935,691.77 18.19% 35,686,942.32
Accounts receivable for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
Opening balance Closing balance
Entity Allowance for Allowance for doubtful Allowance
Gross amount Gross amount Reason for allowance
doubtful account account as % of the
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
gross amount
Expected to be
Qu Liang 1,411,528.44 1,411,528.44 1,411,528.44 1,411,528.44 100.00%
unrecoverable
Beijing Junhui Tianhong Trading Expected to be
Co., Ltd. unrecoverable
Expected to be
Nanxi Daliangxin Food Co., Ltd. 389,729.12 389,729.12 389,729.12 389,729.12 100.00%
unrecoverable
Sichuan Debo Daily Commodity Expected to be
Co., Ltd. unrecoverable
Expected to be
Gushi County Yingjun Liquor 207,600.00 207,600.00 207,600.00 207,600.00 100.00%
unrecoverable
Wang Xiubing 872,596.00 872,596.00
Ningxiahong Zhongning
Wolfberry Products Co., Ltd.
Hunan Liuyanghe Liquor
Industry Co., Ltd.
Total 5,174,866.86 5,174,866.86 3,477,979.92 3,477,979.92
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Accounts receivable for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance
Allowance for
Gross amount as % of the
doubtful account
gross amount
Accounts receivable for which allowances for doubtful
accounts are established based on the external customer 27,090,348.48 3,308,653.22 12.21%
group
Accounts receivable for which allowances for doubtful
accounts are established based on the related party 18,865,766.22
group
Total 45,956,114.70 3,308,653.22
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
Changes in the current period
Opening
Category Recovered or Othe Closing balance
balance Established Written off
reversed rs
Accounts receivable for
which allowances for
doubtful accounts are 5,174,866.86 1,388,731.60 308,155.34 3,477,979.92
established on an individual
basis
Accounts receivable for
which allowances for
doubtful accounts are 2,760,824.91 547,828.31 3,308,653.22
established based on the
external customer group
Total 7,935,691.77 547,828.31 1,388,731.60 308,155.34 6,786,633.14
The Company had no significant recovered or reversed allowances for doubtful accounts in the current
period.
(4) Accounts receivable actually written off in the current period
Unit: RMB
Item Amount written off
Accounts receivable actually written off 308,155.34
Total 308,155.34
(5) Top five entities with respect to accounts receivable and contract assets
Unit: RMB
As % of the
Closi Closing balance
closing
ng Closing balance of allowances
balance of
balan of accounts for doubtful
Closing balance of total
Entity ce of receivable and accounts and
accounts receivable accounts
contra contract assets impairment
receivable
ct combined allowances for
and contract
assets contract assets
assets
Sichuan Putian Packaging Co., Ltd. 11,034,316.71 11,034,316.71 22.32%
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Chengdu Huayu Glass Manufacturing
Co., Ltd.
Hebei Kun Yun Plastic Packaging
Technology Co., Ltd.
Yibin Liya Fiber Industry Co., Ltd. 2,641,212.86 2,641,212.86 5.34%
Beijing TongRenTang Health
Pharmaceutical (Ningxia) Co., Ltd.
Total 23,039,007.00 23,039,007.00 46.60% 270,497.52
(1) Receivables financing presented by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bills 14,086,450,565.79 28,904,198,420.44
Total 14,086,450,565.79 28,904,198,420.44
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(2) Receivables financing by method of establishing allowance for doubtful account
Unit: RMB
Closing balance Opening balance
Allowance
Allowance for
Gross amount Gross amount for doubtful
doubtful account
account
Allow Allow
Category
ance Carrying amount ance Carrying amount
As % of As % of
as % as %
the total the total Am
Amount Amount of the Amount of the
gross gross ount
gross gross
amount amount
amou amou
nt nt
Receivables financing for
which allowances for
doubtful accounts are
established on an individual
basis
Receivables financing for
which allowances for
doubtful accounts are 14,086,450,565.79 100.00% 14,086,450,565.79 28,904,198,420.44 100.00% 28,904,198,420.44
established on a grouping
basis
Of which:
Of which: Bank
acceptance bills
Total 14,086,450,565.79 100.00% 14,086,450,565.79 28,904,198,420.44 100.00% 28,904,198,420.44
The Company had no receivables financing for which allowances for doubtful accounts are established on an individual basis as at the end of the current period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Receivables financing for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance for doubtful Allowance as % of the gross
Gross amount
account amount
Bank acceptance bills 14,086,450,565.79
Total 14,086,450,565.79
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
The Company had no allowances for doubtful accounts established, recovered or reversed in the current
period.
(4) Receivables financing in pledge at the end of the current period
The Company had no receivables financing in pledge at the end of the current period.
(5) Receivables financing endorsed or discounted by the Company at the end of the period and not expired
yet on the balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not yet derecognized at the end
Item
period of the period
Bank acceptance bills 1,546,869,677.66
Total 1,546,869,677.66
(6) Receivables financing actually written off at the end of the period
The Company had no receivables financing actually written off at the end of the period.
Unit: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 39,624,933.74 30,901,231.69
Total 39,624,933.74 30,901,231.69
(1) Other receivables
Unit: RMB
Nature Closing gross amount Opening gross amount
Cash float 2,277,566.82 4,232,009.46
Current account 1,510,890.62 2,980,205.78
Security deposits 38,602,390.27 26,975,912.31
Other advance money for others or
temporary payment
Total 49,510,627.71 39,282,387.96
Unit: RMB
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Aging Closing gross amount Opening gross amount
Within 1 year (inclusive) 31,302,289.55 17,581,713.35
More than 3 years 12,353,276.08 13,318,026.68
More than 5 years 8,514,914.00 3,145,135.12
Total 49,510,627.71 39,282,387.96
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
? Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross amount Gross amount
account account
Category Carrying Carrying
As % of Allowance As % of Allowance
the total as % of the amount the total as % of amount
Amount Amount Amount Amount
gross gross gross the gross
amount amount amount amount
Other receivables for
which allowances for
doubtful accounts are 1,838.85 0.00% 1,838.85 100.00% 1,838.85 0.00% 1,838.85 100.00%
established on an
individual basis
Of which:
Of which: External
customers
Other receivables for
which allowances for
doubtful accounts are 49,508,788.86 100.00% 9,883,855.12 19.96% 39,624,933.74 39,280,549.11 100.00% 8,379,317.42 21.33% 30,901,231.69
established on a
grouping basis
Of which:
Of which: External
customers
Related parties 1,041,720.48 2.10% 1,041,720.48 1,410,453.70 3.59% 1,410,453.70
Total 49,510,627.71 100.00% 9,885,693.97 19.97% 39,624,933.74 39,282,387.96 100.00% 8,381,156.27 21.34% 30,901,231.69
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Other receivables for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
Opening balance Closing balance
Allowanc Allowanc Allowance
Item e for Gross e for as % of Reason for
Gross amount
doubtful amount doubtful the gross allowance
account account amount
Other receivables for which
Expected to be
allowances for doubtful accounts are 1,838.85 1,838.85 1,838.85 1,838.85 100.00%
unrecoverable
established on an individual basis
Total 1,838.85 1,838.85 1,838.85 1,838.85
Other receivables for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance as %
Allowance for
Gross amount of the gross
doubtful account
amount
Other receivables for which allowances for doubtful accounts
are established based on the external customer group
Other receivables for which allowances for doubtful accounts
are established based on the related party group
Total 49,508,788.86 9,883,855.12
Allowances for doubtful accounts established using the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for doubtful Lifetime expected credit Lifetime expected credit
accounts loss (without credit loss (with credit
loss
impairment) impairment)
Balance as at 1 January 2023 8,379,317.42 1,838.85 8,381,156.27
Balance as at 1 January 2023
was in the current period
- Transferred to Stage 2
- Transferred to Stage 3 -108,556.88 108,556.88
- Transferred back to Stage 2
- Transferred back to Stage 1
Established in the current
period
Reversed in the current period
Charged off in the current
period
Written off in the current
period
Other changes
Balance as at 31 December
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
Allowances for doubtful accounts in the current period:
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Changes in the current period
Opening Charged off
Category Recovered Othe Closing balance
balance Established or written
or reversed rs
off
Other receivables for which
allowances for doubtful
accounts are established on an
individual basis
Other receivables for which
allowances for doubtful
accounts are established based 8,379,317.42 1,613,094.58 108,556.88 9,883,855.12
on the credit risk characteristic
group
Total 8,381,156.27 1,613,094.58 108,556.88 9,885,693.97
Unit: RMB
Item Amount written off
Other receivables actually written off 108,556.88
Total 108,556.88
Unit: RMB
As % of
the
closing Closing balance of
Nature of
Entity Closing balance Aging balance of allowances for
account
total other doubtful accounts
receivable
s
Security Within
Jiang'an County People's Government 10,000,000.00 20.20% 300,000.00
deposit 1year
Security Within
Yibin Zhongqi Natural Gas Co., Ltd. 8,000,000.00 16.16% 240,000.00
deposit 1year
Yibin Cuiping District Housing and Urban- Security Over 5
Rural Development Bureau deposit years
Sichuan Chengdu Railway International Security Within
Business Travel Group Co., Ltd. deposit 1year
Advance
Chongqing Xibolesi Building Engineering Over 5
money for 1,671,340.32 3.38% 1,337,072.26
Co., Ltd. years
others
Total 26,725,671.32 53.98% 5,938,702.19
(1) Prepayments presented by aging
Unit: RMB
Closing balance Opening balance
Aging As % of total As % of total
Amount Amount
prepayments prepayments
Within 1 year 143,838,589.00 84.90% 71,127,726.38 52.31%
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
More than 3 years 7,896,945.50 4.66% 38,388,974.68 28.23%
Total 169,425,745.15 135,982,868.14
The Company had no prepayments with significant amounts aged over three years at the end of the period.
(2) Top five entities with respect to prepayments
Unit: RMB
As % of the closing balance of total
Entity Closing balance
prepayments
Chenmaofa (Xiamen) Supply Chain Co., Ltd. 34,431,719.83 20.32%
Yibin PetroChina Kunlun Guoding Gas Co., Ltd. 27,750,000.00 16.38%
Zhejiang Xiechen Supply Chain Management Co., Ltd. 11,186,000.00 6.60%
Sichuan Huashan Yungu Digital Technology Co., Ltd. 6,350,408.95 3.75%
Wuming Tea Industry Holding Co., Ltd. 6,016,608.60 3.55%
Total 85,734,737.38 50.60%
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(1) Classification of inventory
Unit: RMB
Closing balance Opening balance
Inventory valuation Inventory valuation
Item allowances or allowances or
Gross amount impairment allowances Carrying amount Gross amount impairment allowances Carrying amount
for contract for contract
performance costs performance costs
Raw materials 535,367,248.85 5,839,586.09 529,527,662.76 707,788,815.54 5,923,783.20 701,865,032.34
Goods in process 1,263,271,738.43 1,263,271,738.43 1,198,799,326.25 1,198,799,326.25
Inventory of goods 3,786,765,952.30 30,118,427.27 3,756,647,525.03 2,498,986,318.92 30,602,282.53 2,468,384,036.39
Turnover materials 2,771,487.81 436,409.41 2,335,078.40 3,026,557.39 436,409.41 2,590,147.98
Goods issued 231,804,401.04 917,805.65 230,886,595.39 105,088,512.68 1,956,236.12 103,132,276.56
Homemade semi-
finished products
Packing materials 15,916,796.10 15,916,796.10 15,916,796.10 15,916,796.10
Manufacturing
consignment 29,963,859.21 29,963,859.21 86,136,817.83 86,136,817.83
materials
Goods in transit 34,544,229.31 34,544,229.31 31,839,562.96 31,839,562.96
Total 17,441,221,123.40 53,379,410.53 17,387,841,712.87 16,035,642,906.94 54,985,893.37 15,980,657,013.57
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
The Company is subject to the disclosure requirements for the food and wine & liquor production industry in
Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
(2) Classification of merchandise on hand
Unit: RMB
Closing balance Opening balance
Item Valuation Valuation
Gross amount Carrying amount Gross amount Carrying amount
allowances allowances
Liquor 2,960,244,729.82 2,960,244,729.82 1,937,262,431.76 1,937,262,431.76
Plastic
products
Printing 45,863,262.76 15,689,954.97 30,173,307.79 38,532,766.99 15,558,180.76 22,974,586.23
Glass
bottles
Others 40,546,669.72 4,266,403.60 36,280,266.12 55,414,043.79 689,966.21 54,724,077.58
Total 3,786,765,952.30 30,118,427.27 3,756,647,525.03 2,498,986,318.92 30,602,282.53 2,468,384,036.39
(3) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB
Increase in the current Decrease in the current
period period
Item Opening balance Closing balance
Reversed or
Established Others Others
charged off
Raw materials 5,923,783.20 84,197.11 5,839,586.09
Inventory of goods 30,602,282.53 3,932,827.97 4,416,683.23 30,118,427.27
Turnover materials 436,409.41 436,409.41
Packing materials 15,916,796.10 15,916,796.10
Goods issued 1,956,236.12 1,038,430.47 917,805.65
Semi-finished
products
Total 54,985,893.37 3,932,827.97 5,539,310.81 53,379,410.53
(4) Note on closing balance of inventory containing the capitalized amount of borrowing costs
None
(5) Notes of the amount of contract performance costs amortized for the current period
None
Unit: RMB
Open Increase/decrease in the current period
ing Adjus Closi
balan Inc Im ng
tment Oth
Opening ce of rea Dec Return on pai balan
to er Closing balance
balance se reas investment Declared rm
impa other equi Ot ce of
Investee in e in recognized cash ent (carrying
(carrying irme impai
compr ty her amount)
amount) nt inv inve using the dividends all rment
ehensi cha s
allo est stm equity or profit ow allow
ve nge
wanc me ent method an ance
incom s
e nt ce
e
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
I Joint ventures
II Associates
Oriental Outlook 26,129,137.9 1,232,799.
Media Co., Ltd. 2 42
Sichuan Yibin
Wuliangye Group 1,958,180,619.90
Finance Co., Ltd.
Beijing
Zhongjiuhuicui
Education and 105,070.15 10,751,658.65
Technology Co.,
Ltd.
Yibin Jiamei
Intelligent 19,473,470.8 4,598,553.
Packaging Co., 4 96
Ltd.
Sub-total 2,020,366,240.69
Total 2,020,366,240.69
Other information:
(1) The Company invested in Oriental Outlook Media Co., Ltd., an associate of the Company, for
implementing the strategy of entering the media industry. The Company contributed RMB17.15 million in April
Worldbest Co., Ltd. and Shanghai Tiancheng Chuangye Development Co., Ltd.
(2) As reviewed and approved by the 22th meeting of the 4th Board of Directors of the Company on 24
October 2012, the Company, Wuliangye Group and six of its subsidiaries, and ABC International Holdings
Limited jointly invested and established Sichuan Yibin Wuliangye Group Finance Co., Ltd. (Wuliangye Group
Finance). Its registered capital is RMB2 billion, among which the Company contributed RMB720 million, taking
up 36% of the registered capital.
On 23 May 2020, the 74th meeting of the 5th Board of Directors of the Company considered and approved
the capital increase of the Company to Wuliangye Group Finance based on the net asset value per share of
Wuliangye Group Finance evaluated at RMB1.3817 per share as consideration for the capital increase of
RMB734,693,877.55, of which: RMB531,731,835.82 was credited to registered capital and RMB202,962,041.73
was credited to capital reserve. In this capital increase, the related party Sichuan Yibin Wuliangye Group Co., Ltd.
increased its capital at the same price, and the remaining shareholders of Wuliangye Group Finance did not
participate in this capital increase. After the completion of this capital increase, the registered capital of
Wuliangye Group Finance increased from RMB2 billion to RMB3,085,619,164.80, and the shareholding ratio of
the Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the Company, and
Shenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and established Yibin Jiamei Intelligent
Packaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co., Ltd. include research and
development, platemaking, printing, production and sales of packaging products. Its registered capital is RMB20
million, among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB9.8 million, taking
up 49% of the registered capital.
(4) As reviewed and approved by the 85th meeting of the 5th Board of Directors of the Company on 5
February 2021, the Company, Beijing Zhongjiuhuicui Exhibition Co., Ltd. Sichuan Wine and Tea Investment
Group Co., Ltd., Sichuan Science and Engineering Asset Management Co., Ltd., Sichuan Jingwei Education
Management Group Co., Ltd., and Yibin Vocational & Technical College Asset Operation and Management Co.,
Ltd. jointly invested and established Beijing Zhongjiuhuicui Education and Technology Co., Ltd. Its registered
capital is RMB54 million, among which the Company contributed RMB11.25 million, taking up 20.83% of the
registered capital.
Unit: RMB
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Item Closing balance Opening balance
Sichuan Chinese Liquor Jinshanjiao Brand Operation and Development
Co., Ltd.
Total 1,200,000.00 1,200,000.00
Unit: RMB
Item Closing balance Opening balance
Fixed assets 5,188,163,140.11 5,311,203,941.09
Disposal of fixed assets 1,754,162.06 1,767,504.52
Total 5,189,917,302.17 5,312,971,445.61
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(1) Information on fixed assets
Unit: RMB
Buildings and
Item Specialised equipment General equipment Transport equipment Other equipment Total
constructions
I Gross amount:
current period
(1) Acquisition 12,045,005.57 55,926,361.28 100,231,074.64 6,951,913.82 42,692,747.83 217,847,103.14
(2) Transferred
from construction in 24,203,133.18 57,483,311.68 67,970,978.96 15,895,155.66 165,552,579.48
progress
(3) Increase from
business combination
current period
(1) Disposed or
scrapped
(2) Others
II Accumulated
depreciation
current period
(1) Provisions 244,074,245.33 60,741,497.61 84,171,844.05 17,806,001.41 34,502,171.45 441,295,759.85
current period
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(1) Disposed or
scrapped
III Impairment
allowances
current period
(1) Provisions
current period
(1) Disposed or
scrapped
IV Carrying amount
amount
amount
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(2) Fixed assets that are temporarily idle
The Company has no major fixed assets that are temporarily idle.
(3) Fixed assets leased out under operating leases
Unit: RMB
Item Closing carrying amount
Buildings and constructions 198,083,469.54
(4) Fixed assets without certificate of title
Unit: RMB
Item Carrying amount Reason for not obtaining certificate of title
The certificate of title has not been obtained due to historical reasons, to
Buildings and
constructions
the certificate of title gradually.
Other information:
According to the Interim Regulation on Real Estate Registration of Sichuan Province 2016, the property
ownership certificate and the land use certificate are integrated into the real estate ownership certificate. The
Company is sorting out relevant assets and handling with the certificate of title of relevant assets.
(5) Impairment tests of fixed assets
There were no further impairments of fixed assets at the end of the current period.
(6) Disposal of fixed assets
Unit: RMB
Item Closing balance Opening balance
Equipment 1,754,162.06 1,767,504.52
Total 1,754,162.06 1,767,504.52
Unit: RMB
Item Closing balance Opening balance
Construction in progress 5,620,810,349.02 3,770,609,910.77
Engineering materials 2,546,073.18 2,546,073.18
Total 5,623,356,422.20 3,773,155,983.95
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Project Impairment Impairment
Gross amount Carrying amount Gross amount Carrying amount
allowance allowance
Construction in progress 5,623,210,354.57 2,400,005.55 5,620,810,349.02 3,773,009,916.32 2,400,005.55 3,770,609,910.77
Total 5,623,210,354.57 2,400,005.55 5,620,810,349.02 3,773,009,916.32 2,400,005.55 3,770,609,910.77
(2) Changes in important construction in progress in the current period
Unit: RMB
Intere
st
Cum Of capit
ulativ which: alizat
Transferred Other Cumulative
e Capitali ion
to fixed decreases project
Increase in the Project capit zed rate Funding
Project Budget Opening balance assets in the in the Closing balance investment
current period progress alize interest for source
current current as % of the
d in the the
period period budget
intere current curre
st period nt
perio
d
Owned
Liquor Packaging and Integrated Smart 40.00%
Storage-and-delivery Project (note 1)
funds
Owned
and raised
Baijiu Cellar Renovation Project 1,726,166,000.00 803,231,249.04 114,495,175.79 917,726,424.83 53.17% 98.00%
funds and
subsidies
Qu-making Workshop Expansion Owned
Project funds
(Phase I) funds
(Phase II) funds
Owned
Wuliangye Gateway Area Project 5,027,737,600.00 43,780,484.44 43,780,484.44 0.87% 3.00%
funds
New centralised wastewater treatment Owned
plant funds
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Total 25,177,673,100.00 1,928,535,601.88 1,512,452,305.60 3,440,987,907.48
Note 1: The total budget investment in liquor packaging and integrated smart storage-and-delivery project is RMB8,596,655,000, among which the investment
in construction is RMB6,787,568,000, with RMB1,809,087,000 of initial working capital. The project has two phases. The progress of the first phase is 88%, and the
second phase will begin at the right time according to the production and operations of the Company. The total progress of the two phases of the project is 40%.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(3) Impairment tests of construction in progress
There were no further impairments of construction in progress at the end of the current period.
(4) Engineering materials
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Engineering
materials
Total 2,546,073.18 2,546,073.18 2,546,073.18 2,546,073.18
(1) Right-of-use assets
Unit: RMB
Buildings and Specialised Transport
Item Other equipment Land use right Total
constructions equipment equipment
I Gross amount
current period
(1) Operating leases 147,869,518.09 220,402.19 148,089,920.28
current period
(1) Expiry or
termination of leases
II Accumulated
depreciation
current period
(1) Provisions 103,113,322.85 122,058.04 124,771.80 2,389,227.79 286,062,876.81 391,812,257.29
current period
(1) Disposal
(2) Expiry or
termination of leases
III Impairment
allowances
current period
(1) Provisions
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
current period
(1) Disposal
IV Carrying amount
amount
amount
(2) Impairment tests of right-of-use assets
There were no impairments of right-of-use assets at the end of the current period.
(1) Intangible assets
Unit: RMB
Non-
pate
Paten nt Technology use
Item Land use right Software system Copyright Total
ts tech right
nolo
gy
I Gross amount
period
(1) Acquisition 1,538,491,812.48 110,112,522.48 1,648,604,334.96
(2) Internal research and
development
(3) Increase from business
combination
period
(1) Disposal 427,876.28 2,674,547.11 3,102,423.39
II Accumulated amortization
period
(1) Provisions 44,950,234.03 63,256,579.12 7,358.52 1,613,207.52 109,827,379.19
period
(1) Disposal 106,969.07 2,571,302.27 2,678,271.34
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
III Impairment allowances
period
(1) Provisions
period
(1) Disposal
IV Carrying amount
The increase in intangible assets during the current period was primarily driven by the increased land use
rights for the new Wuliangye Gateway Area Project, with a gross amount of RMB1,305 million.
There were no intangible assets created by internal research and development of the Company at the end of
the current period.
(2) Land use right failed to accomplish certification of property
Unit: RMB
Reason for failing to accomplish certification of
Item Carrying amount
property
Land of the Wuliangye Gateway Area Certification of property has not yet started for the
Project construction planning is still being optimized.
(3) Impairment tests of intangible assets
There were no impairments of intangible assets at the end of the current period.
(1) Gross amounts of goodwill
Unit: RMB
Decrease in
Increase in the
the current
current period
period
Investee or item generating goodwill Opening balance Generated Closing balance
due to
Dispo
business
sal
combinati
on
Sichuan Yibin Global Group Shenzhou Glass Co.,
Ltd.
Sichuan Yibin Global Gelasi Glass Manufacturing
Co., Ltd.
Sichuan Yibin Plastic Packaging Materials Company
Limited
Sichuan Yibin Push Group 3D Co., Ltd. 899,616.62 899,616.62
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Total 1,621,619.53 1,621,619.53
Unit: RMB
Increase in the Amortization in
Item Opening balance Other decreases Closing balance
current period the current period
Molds 135,614,953.60 65,312,393.95 64,082,937.14 136,844,410.41
Overhaul expenses
of kilns
Others 3,129,294.22 4,381,835.03 1,197,398.19 6,313,731.06
Total 158,586,327.06 79,688,963.56 75,155,266.76 163,120,023.86
Other notes: Long-term prepaid expense include the molds of Sichuan Yibin Plastic Packaging Materials
Company Limited, a subsidiary of the Company, and the overhaul expenses of kilns of Sichuan Yibin Global
Gelasi Glass Manufacturing Co., Ltd., which will be amortized in three years and four years, respectively.
(1) Deferred income tax assets which have not been offset
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Asset impairment allowances 97,497,278.56 19,252,967.78 97,653,716.96 24,413,429.24
Unrealized profit of internal
transactions
Employee benefits payable 3,490,817,759.43 872,704,439.86 3,102,191,751.36 775,547,937.84
Lease liabilities (inclusive of
the current portion) 130,235,057.60 32,558,764.42 392,658,748.50
Accrued expenses, etc. 4,084,095,658.56 1,021,023,914.64 3,833,924,325.92 958,481,081.48
Total 8,990,927,678.63 2,242,610,567.82 8,565,018,042.98 2,140,289,194.58
(2) Deferred income tax liabilities which have not been offset
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Right-of-use assets 126,810,315.49 31,702,578.88 380,922,885.84 94,360,946.95
Total 126,810,315.49 31,702,578.88 380,922,885.84 94,360,946.95
(3) Details about deferred income tax assets which have not been recognized
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 2,210,106.17 3,304,671.54
Deductible losses 238,826,934.43 177,260,671.19
Total 241,037,040.60 180,565,342.73
Notes: Due to the uncertainty of whether sufficient taxable income will be obtained in the future, deductible
temporary differences and deductible losses of deferred income tax assets are not recognized.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(4) Deductible losses of deferred income tax assets which have not been recognized will become due in the
following years
Unit: RMB
Year Closing amount Opening amount Remarks
Total 238,826,934.43 177,260,671.19
Unit: RMB
Closing balance Opening balance
Impair
Item Impairme
Carrying ment Carrying
Gross amount nt Gross amount
amount allowa amount
allowance
nce
Advances of progress
payment for information 197,884,442.32 197,884,442.32 246,955,204.05 246,955,204.05
system construction
Prepayments for land bids 617,111,764.28 617,111,764.28 725,547,470.92 725,547,470.92
Prepayments for equipment 9,821,017.69 9,821,017.69
Total 824,817,224.29 824,817,224.29 972,502,674.97 972,502,674.97
Other information:
The prepayments for land bids mainly included the prepayments to the Yibin Natural Resources and
Planning Bureau and the Yibin Public Resources Trading Centre for the transfer of land for the Wuliangye 501
Ancient Fermentation Pits-Chinese Baijiu Cultural Sanctuary Project.
Unit: RMB
At the end of the current period At the beginning of the current period
Ty
Typ pe
e of of
Item
Gross amount Carrying amount restr Restriction Gross amount Carrying amount res Restriction
ictio tric
n tio
n
Security
deposits for Security deposits
bank Se for bank acceptance
Sec acceptance cur bills, other security
urit bills, other ity deposits, and the
Monetary y security de balance in the
assets dep deposits, and pos securities trading
osit, the balance in it, account with the
etc. the securities etc Yibin Business
trading . Department of
account with Essence Securities
the Yibin
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Business
Department
of Essence
Securities
In
Receivables ple In pledge for bank
financing dg acceptance bills
e
Total 200,977,259.48 200,977,259.48 309,554,353.23 309,554,353.23
Unit: RMB
Category Closing balance Opening balance
Bank acceptance notes 732,432,611.26 886,789,180.37
Letters of credit 1,181,196.16
Total 732,432,611.26 887,970,376.53
There were no notes payable which became mature but were unpaid at the end of the current period.
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Accounts payable 8,864,206,997.09 7,246,802,709.58
Total 8,864,206,997.09 7,246,802,709.58
(2) Significant accounts payable that are over one year or overdue
There were no significant accounts payable that were over 1 year or overdue at the end of the current
period.
Unit: RMB
Item Closing balance Opening balance
Interest payable
Dividends payable 13,191,392.99
Other payables 5,385,776,903.69 4,618,243,522.44
Total 5,385,776,903.69 4,631,434,915.43
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Dividends payable by subsidiaries to
non-controlling shareholders
Total 13,191,392.99
(2) Other payables
Unit: RMB
Item Closing balance Opening balance
Image publicity expense and sales
promotional expense
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Security deposits 961,975,482.82 1,059,053,791.82
Frozen funds 272,831,242.15 254,603,170.35
Collecting payment on behalf of others 116,936,716.76 79,272,558.15
Claims from safeguarding rights 32,741,432.38 31,207,782.63
Others 359,707,309.27 219,733,672.92
Total 5,385,776,903.69 4,618,243,522.44
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Frozen funds 248,322,766.21
Total 248,322,766.21
(1) Presentation of advances from customers
Unit: RMB
Item Closing balance Opening balance
Advances from customers 17,522,814.61 16,160,671.49
Total 17,522,814.61 16,160,671.49
There were no significant advances from customers that were over 1 year or overdue at the end of the
current period.
Unit: RMB
Item Closing balance Opening balance
Advances from customers 6,864,383,635.25 12,379,125,542.70
Total 6,864,383,635.25 12,379,125,542.70
There were no significant contract liabilities that were over 1 year at the end of the current period.
The Company is subject to the disclosure requirements for the food and wine & liquor production industry in
Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
Presented by aging:
Unit: RMB
Aging Gross amount
Within 1 year 6,632,891,591.37
More than 3 years 142,847,990.35
Total 6,864,383,635.25
Top five entities with respect to contract liabilities at the end of the current period:
The aggregate amount of the contract liabilities of the top five entities stood at RMB1,631,958,406.45 at the
end of the current period, accounting for 23.77% of the total contract liabilities at the end of the current period.
(1) Presentation of employee benefits payable
Unit: RMB
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
I Short-term
remuneration
II Post-employment
benefits - defined 155,938.84 1,174,426,080.45 1,174,567,959.63 14,059.66
contribution plans
III Dismissal benefits 1,000,000.00 1,000,000.00
Total 3,375,526,829.88 8,426,574,412.85 7,929,978,806.30 3,872,122,436.43
(2) Presentation of short-term remuneration
Unit: RMB
Increase in the current Decrease in the
Item Opening balance Closing balance
period current period
and subsidies
Including: Medical insurance
premium
Industrial injury
insurance premium
Birth insurance
premium
personnel educational fund
Total 3,374,370,891.04 7,252,148,332.40 6,754,410,846.67 3,872,108,376.77
(3) Presentation of defined contribution plans
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
insurance
insurance premium
contribution
Total 155,938.84 1,174,426,080.45 1,174,567,959.63 14,059.66
Unit: RMB
Item Closing balance Opening balance
VAT 1,287,318,757.45 1,081,836,866.14
Consumption tax 1,576,918,931.41 921,407,756.36
Corporate income tax 2,936,171,629.30 3,017,389,769.33
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Individual income tax 57,956,239.44 26,308,217.47
Urban maintenance and construction tax 207,087,550.24 143,754,429.94
Education surcharge 89,319,297.77 62,118,360.81
Local education surcharge 59,551,377.32 41,417,432.28
Deed tax 44,169,896.88
Stamp duty 8,857,961.71 6,357,506.98
Land use tax 669,153.14 669,153.14
Property tax 425,171.77 441,068.14
Environmental protection tax 12,179.34 17,625.34
Total 6,268,458,145.77 5,301,718,185.93
Other information: The taxes and levies of the Company depend on the amount verified and imposed by the
tax authorities.
Unit: RMB
Item Closing balance Opening balance
Current portion of lease liabilities 14,512,448.92 375,682,599.77
Total 14,512,448.92 375,682,599.77
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 663,723,991.63 1,544,723,419.34
Total 663,723,991.63 1,544,723,419.34
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 115,722,608.68 16,976,148.73
Total 115,722,608.68 16,976,148.73
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance Cause
current period current period
Government grants 254,416,864.75 10,383,695.10 11,757,234.48 253,043,325.37
Total 254,416,864.75 10,383,695.10 11,757,234.48 253,043,325.37 --
Unit: RMB
Increase/decrease in the current period (+/-)
Bonus
Opening balance Bonus issue Closing balance
issue
New issue from capital Others Subtotal
from
reserves
profit
Total
shares
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Decrease in
Increase in the
Item Opening balance the current Closing balance
current period
period
Capital premium (share premium) 2,682,523,702.98 2,682,523,702.98
Other capital reserves 123,383.17 123,383.17
Total 2,682,647,086.15 2,682,647,086.15
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Statutory surplus
reserves
Total 28,432,482,367.38 5,156,071,135.43 33,588,553,502.81
Unit: RMB
Item 2023 2022
Retained earnings at the end of the prior period
before adjustment
Total retained earnings at the beginning of the
period before adjustment (“+” for increase, “-” for 2,554,581.61 3,164,556.82
decrease)
Retained earnings at the beginning of the period
after adjustment
Plus: Net profit attributable to owners of the
Company as the parent in the current period
Less: Appropriation to statutory surplus reserves 5,156,071,135.43 4,566,027,354.25
Dividends payable to ordinary shareholders 14,680,241,440.97 11,734,100,955.49
Retained earnings at the end of the period 89,405,432,446.55 79,031,159,753.65
Adjustments to the retained earnings at the beginning of the period:
retroactive adjustment according to the Accounting Standards for Business Enterprises and relevant new
provisions.
accounting policies.
accounting errors.
combination scope arising from the same control.
adjustments.
Unit: RMB
Item 2023 2022
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Revenue Costs Revenue Costs
Principal operations 82,695,377,235.30 19,748,584,265.47 73,363,741,120.87 17,732,568,111.41
Other operations 576,690,081.89 408,559,686.74 604,899,583.67 445,857,548.23
Total 83,272,067,317.19 20,157,143,952.21 73,968,640,704.54 18,178,425,659.64
Whether the lower of net profit before or after exceptional gains and losses is negative
□ Yes ? No
Breakdown of operating revenue and cost of sales of liquor products in the current period:
Unit: RMB
Liquor products
Type of contract
Operating revenue Cost of sales
By operating segment
East China 22,388,529,236.37 3,340,594,216.75
South China 6,810,441,782.70 993,558,777.69
West China 26,215,491,173.54 6,047,557,225.84
North China 8,074,372,025.55 1,147,821,771.10
Central China 12,958,259,027.46 2,295,397,807.81
By sales channel
Online 4,165,629,988.73 539,414,059.41
Offline 72,281,463,256.89 13,285,515,739.78
Total 76,447,093,245.62 13,824,929,799.19
Information related to performance obligations:
Revenue is recognized at the point when the Company completes its contractual performance obligations
when the customer obtains control of the goods to which it belongs in the contractual agreement.
Information related to the transaction price apportioned to the remaining performance obligation:
The amount of revenue corresponding to performance obligations that have been contracted but not yet
performed or not completed at the end of the Reporting Period was RMB6,864,383,635.25.
Unit: RMB
Item 2023 2022
Consumption tax 10,073,003,802.01 8,653,332,472.22
Urban maintenance and construction tax 1,321,451,792.67 1,132,484,875.40
Education surcharge 560,138,465.48 486,699,510.87
Tax on natural resources 79,839.10 92,594.00
Property tax 45,963,481.48 47,802,066.72
Land use tax 78,671,329.71 48,955,268.10
Vehicle and vessel usage tax 87,935.59 105,993.23
Stamp duty 65,275,884.86 54,296,957.03
Local education surcharge 386,193,282.49 324,466,433.74
Environmental protection tax 829,815.03 566,205.73
Total 12,531,695,628.42 10,748,802,377.04
Unit: RMB
Item 2023 2022
Comprehensive expenses of the Company (including travel, office, 1,439,311,083.54 1,302,358,844.82
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
expenses of the Board of Directors, employee remuneration, labor
insurance, labor protection appliances, etc.)
Rents 12,276,646.11 12,138,843.91
Trademark and logo royalties 966,368,193.34 863,873,404.43
Comprehensive service fee 86,669,431.21 78,322,182.60
Others 814,819,985.57 811,425,992.69
Total 3,319,445,339.77 3,068,119,268.45
Unit: RMB
Item 2023 2022
Image publicity expense 1,433,975,889.27 1,240,440,205.34
Sales promotional expense 4,540,282,674.32 3,889,326,216.67
Storage and logistics expenses 546,674,750.94 476,754,635.74
Expenses of labor 735,243,412.93 718,179,395.38
Other expenses 540,121,690.67 519,536,560.04
Total 7,796,298,418.13 6,844,237,013.17
Unit: RMB
Item 2023 2022
Comprehensive expenses (including travel, office, payroll, labor insurance,
labor protection appliances, etc.)
Material expenses 40,610,966.53 24,305,191.52
Product design fees 11,372,974.54 14,835,860.22
Depreciation and amortization expenses 21,051,089.93 15,940,284.31
Technical service expenses 16,761,748.34 3,774,509.39
Others 33,180,747.33 17,192,821.47
Total 321,845,165.28 235,783,645.79
Unit: RMB
Item 2023 2022
Interest costs 11,618,338.87 48,003,667.91
Less: Interest income 2,487,953,643.33 2,075,700,630.12
Exchange loss 162,763.33 394,735.15
Less: Exchange gains 867,465.32 509,873.32
Service charge of financial institutions 2,314,624.32 1,903,782.68
Others 1,554,705.86 -442,730.22
Total -2,473,170,676.27 -2,026,351,047.92
Unit: RMB
Sources of other income 2023 2022
Government subsidies 236,257,100.25 100,421,839.81
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Tax rebates 83,435,000.00 72,322,800.00
Tax preferences 10,978,103.25 13,781,264.60
Total 330,670,203.50 186,525,904.41
Unit: RMB
Item 2023 2022
Return on long-term equity investments
measured using the equity method
Total 57,617,083.91 92,571,951.15
Unit: RMB
Item 2023 2022
Loss on uncollectible accounts
receivable
Loss on uncollectible other receivables -1,613,094.58 -1,722,230.36
Total -772,191.29 -1,437,932.66
Unit: RMB
Item 2023 2022
Inventory valuation loss and impairment loss on
-3,932,827.97 -5,552,799.12
contract performance costs
Impairment loss on fixed assets -20,654,660.75
Total -3,932,827.97 -26,207,459.87
Unit: RMB
Source of asset disposal income 2023 2022
Disposal of non-current assets 1,272,004.07 3,347,202.23
Total 1,272,004.07 3,347,202.23
Unit: RMB
Amounts included in current
Item 2023 2022
exceptional profit or loss
Penalty income 16,128,158.86 7,902,851.31 16,128,158.86
Gains from scrap of non-
current assets
Others 29,000,303.43 26,066,282.98 29,000,303.43
Total 45,351,676.69 38,885,270.86 45,351,676.69
Unit: RMB
Amounts included in current
Item 2023 2022
exceptional profit or loss
Donations 49,212,109.00 57,541,747.10 49,212,109.00
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Penalty expenditure 958,262.48 578,945.52 958,262.48
Sponsorship expenditure 1,000,000.00
Loss on scrap of non-current
assets
Exceptional loss 783,415.71 198,610.78 783,415.71
Others 33,334,262.96 44,487,603.43 33,334,262.96
Total 136,333,494.92 109,788,008.25 136,333,494.92
Other information: The donations mainly consisted of RMB27.41 million to Sichuan Wuliangye Charity
Foundation and RMB20 million for Sichuan University Education Foundation.
(1) List of income tax expense
Unit: RMB
Item 2023 2022
Current income tax expense 10,556,884,102.80 9,492,020,759.10
Deferred income tax expense -164,979,741.31 -358,285,618.13
Total 10,391,904,361.49 9,133,735,140.97
(2) Reconciliation from accounting profit to income tax expense
Unit: RMB
Item 2023
Gross profit 41,912,681,943.64
Income tax expense based on the statutory/applicable tax rates 10,478,170,485.91
Effects of different tax rates of subsidiaries -110,497,338.45
Effects of adjustments to income tax of the prior period 28,847,896.35
Effects of non-taxable revenue -14,404,270.98
Effects of non-deductible costs, expenses and losses 25,066,594.26
Effects of the utilization of deductible losses on which deferred
-669,965.33
income tax assets were unrecognized in the prior period
Effects of deductible temporary differences or losses on which
deferred income tax assets are unrecognized in the current 35,656,382.23
period
Effects of the utilization of temporary differences on which
deferred income tax assets were unrecognized in the prior
period
Effects of the over-deduction in the calculation of the taxable
-20,349,586.03
amount in relation to wages for the disabled employees
Effects of the 10% preferential income tax rate for stream
revenue
Effects of the over-deduction in the calculation of the taxable
-30,349,343.98
amount in relation to R&D expense
Effects of the one-time deduction of fixed assets 433,507.51
Income tax expense 10,391,904,361.49
(1) Cash generated from/used in operating activities
Cash generated from other operating activities:
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Item 2023 2022
Interest income 1,909,564,581.37 1,547,650,473.84
Security deposits and government grants
received
Total 2,328,844,302.03 2,006,197,288.41
Cash used in other operating activities:
Unit: RMB
Item 2023 2022
Expenses relating to selling 3,632,952,007.86 2,284,853,859.19
Comprehensive service fee 86,669,431.21 78,322,182.60
Trademark and logo royalties 966,368,193.34 863,873,404.43
Security deposits paid, payments for current transactions,
and other out-of-pocket expenses
Total 5,820,099,125.86 4,368,537,434.45
(2) Cash generated from/used in investing activities
Cash used in significant investing activities:
Unit: RMB
Item 2023 2022
Wuliangye Gateway Area Project 627,150,000.00 639,693,000.00
Wuliangye 501 Ancient Fermentation Pits-Chinese Baijiu
Cultural Sanctuary Project
Liquor Packaging and Integrated Smart Storage-and-delivery
Project
Qu-making Workshop Expansion Project 402,629,618.92 11,270,239.88
Total 2,304,352,625.78 1,088,457,268.59
(3) Cash generated from/used in financing activities
Cash used in other financing activities:
Unit: RMB
Item 2023 2022
Payment for the lease liabilities 428,610,750.02 402,860,485.37
Payments to non-controlling shareholders of subsidiaries for distribution of
residual assets in the liquidation and de-registration of subsidiaries
Total 428,610,750.02 424,009,369.15
Changes in liabilities as a result of financing activities:
□ Applicable ? Not applicable
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information 2023 2022
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
operating activities
Net profit 31,520,777,582.15 27,969,785,575.27
Add: Asset impairment allowances -1,251,003.77 20,844,584.71
Depreciation of fixed assets, depletion of oil and gas assets, and
depreciation of productive living assets
Depreciation of right-of-use assets 391,812,257.29 388,275,480.31
Amortization of intangible assets 73,861,098.14 63,957,908.47
Amortization of long-term prepaid expense 75,155,266.76 72,008,715.93
Loss on the disposal of fixed assets, intangible assets and other
-1,272,004.07 -3,347,202.23
long-term assets (“-” for gain)
Loss on the retirement of fixed assets (“-” for gain) 51,822,230.37 1,064,964.85
Loss on changes in fair value (“-” for gain)
Finance costs (“-” for income) 10,991,017.91 47,867,401.72
Loss on investment (“-” for income) -57,617,083.91 -92,571,951.15
Decrease in deferred income tax assets (“-” for increase) -102,321,373.24 -322,329,799.81
Increase in deferred income tax liabilities (“-” for decrease) -62,658,368.07 -35,955,818.32
Decrease in inventories (“-” for increase) -1,405,578,216.46 -1,964,349,766.62
Decrease in operating receivables (“-” for increase) 14,309,794,523.00 -3,969,465,671.49
Increase in operating payables (“-” for decrease) -3,502,331,777.72 1,814,403,391.23
Others
Net cash generated from/used in operating activities 41,742,479,908.23 24,431,136,261.48
proceeds or payments
Conversion of debt to capital
Current portion of convertible corporate bonds
Fixed assets under finance leases
Closing balance of cash 113,095,684,224.30 90,584,643,897.66
Less: Opening balance of cash 90,584,643,897.66 80,975,257,378.72
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 22,511,040,326.64 9,609,386,518.94
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I Cash 113,095,684,224.30 90,584,643,897.66
Of which: Cash on hand 42,156.81 19,772.01
Bank deposits that can be readily drawn
on demand
Other monetary assets that can be readily
drawn on demand
III Cash and cash equivalents, end of the period 113,095,684,224.30 90,584,643,897.66
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(3) Monetary assets that do not belong to cash and cash equivalents
Unit: RMB
Reason for not belong to cash and
Item 2023 2022
cash equivalents
Security deposits for bank
acceptance bills, etc.
Accrued interest on term
deposits
Total 2,360,616,686.34 1,773,783,078.13
(1) Foreign currency monetary items
Unit: RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Monetary assets
Of which: USD 137,664.39 7.0827 975,035.58
EUR
HKD
Accounts receivable
Of which: USD
EUR
HKD
Long-term borrowings
Of which: USD
EUR
HKD
(2) Overseas business entities (for substantial overseas business entities, the following information shall be
disclosed: principal place of business, functional currency and basis for the choice, change of functional
currency and reasons)
□ Applicable ? Not applicable
(1) The Company as the lessee
? Applicable □ Not applicable
Variable lease payments not included in lease liabilities:
? Applicable □ Not applicable
Unit: RMB
Item 2023
Variable lease payments not included in lease liabilities 216,068,216.19
Expenses on short-term leases or leases of low-value assets:
? Applicable □ Not applicable
Unit: RMB
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Item 2023
Expenses on short-term leases or leases of low-value assets 30,398,754.21
(2) The Company as the lessor
Operating leases with the Company as the lessor:
? Applicable □ Not applicable
Unit: RMB
Of which: Income related to variable lease payments not
Item Lease income
included in lease receipts
Income from operating leases 4,228,797.39
Total 4,228,797.39
Finance leases with the Company as the lessor:
□ Applicable ? Not applicable
Yearly undiscounted lease receipts in the coming five years:
□ Applicable ? Not applicable
Reconciliation from undiscounted lease receipts to net return on leases:
(3) Recognition of gains and losses on sales under finance leases as a producer or distributor
□ Applicable ? Not applicable
VIII R&D Expenditures
Unit: RMB
Item 2023 2022
Comprehensive expenses (including travel, office, payroll, labor insurance,
labor protection appliances, etc.)
Material expenses 40,610,966.53 24,305,191.52
Product design fees 11,372,974.54 14,835,860.22
Depreciation and amortization expenses 21,051,089.93 15,940,284.31
Technical service expenses 16,761,748.34 3,774,509.39
Others 33,180,747.33 17,192,821.47
Total 321,845,165.28 235,783,645.79
Of which: expensed R&D expenditures 321,845,165.28 235,783,645.79
The Company had no significant outsourced R&D projects.
IX Changes to the Scope of the Consolidated Financial Statements
(1) Business combinations involving entities not under common control in the current period
There were no business combinations involving entities not under common control in the Reporting Period.
(1) Business combinations involving entities under common control in the current period
There were no business combinations involving entities under common control in the Reporting Period.
There was no subsidiary acquired by counter purchase during the Reporting Period.
There was no disposal of subsidiaries during the Reporting Period.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Changes in the consolidation scope for other reasons (incorporation or liquidation of subsidiary, etc.):
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. The Company’s subsidiary Huaibin Wubin Consultation Service Co., Ltd. has been de-registered in
As approved at the Eighth Meeting of the Sixth Board of Directors of 2023 dated 28 September 2023, the
Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has
incorporated “Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd.” (hereinafter referred to as “Jiang’an
Plastic”). Jiang’an Plastic has a registered capital of RMB50 million, and the Company owns 100% of Jiang’an
Plastic.
X Interests in Other Entities
(1) Compositions of the Group
Unit: RMB
Princi The Company’s
pal interest
Place of Nature How the
Registered place
Subsidiary registrat of subsidiary
capital of
ion business Direct Indirect was obtained
busine
ss
Sichuan Yibin Wuliangye Distillery Manufa
Co., Ltd. cturing
Yibin Wuliangye Liquor Sales Co., Commer
Ltd. cial
Yibin Wuliang Tequ and Touqu Brand Commer
Marketing Co., Ltd. cial
Yibin Wuliangchun Brand Marketing Commer
Co., Ltd cial
Yibin Wuliangye Series Liquor Brand Commer
Marketing Co., Ltd. cial
Sichuan Yibin Wuliangye Supply and Commer
Marketing Co., Ltd. cial
Manufa 100.00
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000 Yibin Yibin Incorporated
cturing %
Sichuan Yibin Wuliangye
Manufa
Environmental Protection Industry 537,000,000 Yibin Yibin 51.00% Incorporated
cturing
Co., Ltd.
Business
combination
involving
Sichuan Jinwuxin Technology Co., Commer
Ltd. cial
under
common
control
Sichuan Jiebeike Environmental Enginee
Technology Co., Ltd. ring
Yibin Changjiangyuan Liquor Co., Manufa 100.00
Ltd. cturing %
Commer 100.00
Yibin Changjiangyuan Trade Co., Ltd. 19,800,000 Yibin Yibin Incorporated
cial %
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Yibin Changjiangyuan Brewery Co., Manufa 100.00
Ltd. cturing %
Yibin Wuliangye Organic Agriculture Agricult 100.00
Development Co., Ltd. ural %
Yibin Wuliangye Xianlin Ecological Manufa
Liquor Co., Ltd. cturing
Yibin Xianlin Liquor Marketing Co., Commer
Ltd. cial
Sichuan Yibin Wuliangye Jingmei Manufa
Printing Co., Ltd. cturing
Commer
Yibin Xinxing Packaging Co., Ltd. 5,000,000 Yibin Yibin 98.53% Incorporated
cial
Business
combination
involving
Sichuan Yibin Plastic Packaging Manufa 100.00
Materials Company Limited cturing %
under
common
control
Sichuan Yibin Plastic New Materials Manufa 100.00
Company Limited cturing %
Business
combination
involving
Sichuan Yibin Global Group Manufa 100.00
Shenzhou Glass Co., Ltd. cturing %
under
common
control
Business
combination
involving
Sichuan Yibin Global Gelasi Glass Manufa 100.00
Manufacturing Co., Ltd. cturing %
under
common
control
Business
combination
involving
Sichuan Yibin Push Group 3D Co., Manufa 100.00
Ltd. cturing %
under
common
control
Guangdong Plastic Packaging Fosha Manufa 100.00
Materials Company Limited n cturing %
Sichuan Yibin Wuliangye Investment Investm
(Consulting) Co., Ltd. ent
Wuliangye Dashijie (Beijing) Trade Beijin Commer
Co., Ltd. g cial
Handa Manufa
Handan Yongbufenli Liquor Co., Ltd. 500,000,000 Handan 51.00% Incorporated
n cturing
Linzhang Desheng Liquor Trade Co., Handa Commer
Ltd. n cial
Handa Commer
Handan Yongbufenli Sales Co., Ltd. 5,000,000 Handan 51.00% Incorporated
n cial
Business
Huaibi Manufa
Wuguchun Jiu Ye Co., Henan. China 373,280,762 Huaibin 51.03% combination
n cturing
involving
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
entities not
under
common
control
Huaibi Commer
Huaibin Tenglong Trade Co., Ltd. 5,000,000 Huaibin 51.03% Incorporated
n cial
Wuguchun Jiu Ye Sales Co., Henan. Huaibi Commer
China n cial
Sichuan Wuliangye Culture Tourism
Development Co., Ltd.
Sichuan Wuliangye Tourist Agency
Co., Ltd.
Commer
Yibin Wuliangye Creart Co., Ltd. 100,000,000 Yibin Yibin 45.00% Incorporated
cial
Sichuan Wuliangye NongXiang Baijiu Commer
Co., Ltd. cial
Sichuan Wuliangye New Retail Cheng Chengd Commer
Management Co., Ltd. du u cial
Note on the difference between shareholding proportion and proportion of voting rights in subsidiary:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing Sparkle
Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,
Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "Creart
Company"), of which the registered capital is RMB100 million. The Company contributes RMB45 million, taking
up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. and
the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through
mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
The basis of controlling the invested company even if holding half or less than half voting rights and not
controlling the invested company even if holding more than half voting rights:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing Sparkle
Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,
Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "Creart
Company"), of which the registered capital is RMB100 million. The Company contributes RMB45 million, taking
up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. and
the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through
mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Net profit or loss Declared dividends
Non- Closing balance of
attributable to non- for non-controlling
Subsidiary controllin non-controlling
controlling interests in the interests in the
g interests interests
current period current period
Yibin Wuliangye Liquor Sales Co.,
Ltd.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(3) Key financial information of important non-wholly-owned subsidiaries
Unit: RMB
Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Yibin Wuliangye Liquor Sales Co., Opening balance
Ltd. Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Unit: RMB
Subsidiary Net cash generated from/used in
Operating revenue Net profit Total comprehensive income
operating activities
Yibin Wuliangye Liquor Sales Co.,
Net cash generated from/used in
Ltd. Operating revenue Net profit Total comprehensive income
operating activities
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Company
(1) Changes in the Company’s interests in its subsidiaries
There were no transactions in which the interest in a subsidiary changes and the subsidiary is still controlled
by the Company during the Reporting Period.
(1) Important joint ventures or associates
The Company’s Accounting
interest (%) treatment of
Place of
Principal place Nature of investment
Joint venture or associate registratio
of business business in the joint
n Direct Indirect venture or
associate
Sichuan Yibin Wuliangye Group Equity
Yibin Yibin Finance 40.56%
Finance Co., Ltd. method
(2) Key financial information of important associates
Unit: RMB
Closing balance/2023 Opening balance/2022
Sichuan Yibin Wuliangye Group Finance Sichuan Yibin Wuliangye Group Finance
Co., Ltd. Co., Ltd.
Current assets 11,767,876,781.26 10,716,370,139.80
Non-current assets 41,146,331,998.09 33,512,182,650.82
Total assets 52,914,208,779.35 44,228,552,790.62
Current liabilities 48,080,869,222.79 39,453,741,415.00
Non-current liabilities 5,478,067.66 16,087,688.44
Total liabilities 48,086,347,290.45 39,469,829,103.44
Non-controlling interests
Equity attributable to the shareholders of
the Company as the parent
Share of net assets in proportion to the
Company’s interest
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Carrying amount of equity investments
in associates
Fair value of equity investments in
associates with quoted prices on the open
market
Operating revenue 408,060,943.58 478,928,872.79
Net profit 127,417,801.72 215,835,825.86
Net profit of discontinued operations
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Other comprehensive income
Total comprehensive income 127,417,801.72 215,835,825.86
Dividends received from the associates
in the current period
(3) Aggregate financial information of unimportant joint ventures and associates
Unit: RMB
Closing balance/2023 Opening balance/2022
Joint ventures:
Aggregate amount in proportion to the
Company’s interests
Associates:
Total carrying amount of investments 62,185,620.79 56,249,197.26
Aggregate amount in proportion to the
Company’s interests
--Net profit 5,936,423.53 5,028,940.18
--Total comprehensive income 5,936,423.53 5,028,940.18
There were no structured entities that were not included in the consolidated financial statements in the
Reporting Period.
XI Government Grants
□ Applicable ? Not applicable
Reasons for not receiving the projected amount of government grants at the projected time:
□ Applicable ? Not applicable
? Applicable □ Not applicable
Unit: RMB
Amount Other
recorder Amount chang
New grant in in non- transferred to es in Related to
Accounting
Opening balance the current operating other income the Closing balance assets/incom
item
period income in in the current curren e
the current period t
period period
Deferred Related to
income assets
Deferred Related to
income income
Total 254,416,864.75 10,383,695.10 11,757,234.48 253,043,325.37
? Applicable □ Not applicable
Unit: RMB
Accounting item 2023 2022
Other income 236,257,100.25 100,421,839.81
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
XII Disclosure of Fair Value
Unit: RMB
Closing fair value
Item Fair value Fair value
Fair value measurement at
measurement at level measurement at level Total
level III
I II
I Consistent fair value
-- -- -- --
measurement
Receivables financing 14,086,450,565.79 14,086,450,565.79
Other non-current
financial assets
Total assets measured
at fair value on an 14,087,650,565.79 14,087,650,565.79
ongoing basis
II Fair value
measurement on a non- -- -- -- --
ongoing basis
ongoing bases
Not applicable
information on the valuation techniques used and significant parameters
Not applicable
quantitative information on the valuation techniques used and significant parameters
Receivables financing: Due to the short term of notes receivable held by the Company, and the selling time,
selling price and selling proportion cannot be estimated reliably, the Company measures the notes receivable
according to the par value as a reasonable estimate of fair value.
Other non-current financial assets: Since the Company holds other non-current financial assets that are not
traded in an active market, and its equity interest in the invested company is low and has no significant influence,
it is not realistic and feasible to value the equity in the invested company using the income approach or market
approach, and there is no recent introduction of external investors to the invested company or transfer of equity
among shareholders that can be used as a reference basis for determining fair value. In addition, the Company has
not found any significant changes in the internal and external environment of the invested company since the
beginning of the year from the analysis of the relevant information available, therefore, it is a "limited
circumstances" in which the carrying cost can be used as the best estimate of the fair value, and therefore the fair
value is based on the cost at the end of the year.
beginning and ending carrying values and sensitivity analysis of unobservable parameters
Not applicable
in the current period, the reasons for the conversion and the policy for determining the conversion time
point
Not applicable
Not applicable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Not applicable
XIII Related Parties and Related-Party Transactions
The parent
Place of The parent
Nature of company’s voting
Name of the parent company registratio Registered capital company’s interest
business right percentage in
n in the Company
the Company
Yibin Development Holding
Yibin Investment RMB5 billion 34.43% 34.43%
Group Co., Ltd.
Information on the parent company of the Company:
Yibin Development Holding Group Co., Ltd. is a wholly state-owned company funded and established by the
People’s Government of Yibin City. Legal representative of the company is Han Chengke and its registered
capital is RMB5 billion. Its business scope includes the state-owned property right (including state-owned shares),
state-owned assets and state investments as authorized by the People's Government of Yibin City. The company,
as an investor, conducts capital management and assets management by holding, shareholding, investment and
receiving assignment, transfer, auction, and lease within the limits of authority.
Main functions of Yibin Development Holding Group Co., Ltd. include: First, holding state-owned equity
and exercising shareholder’s rights in municipal-level enterprise on behalf of the People’s Government of Yibin
City; second, raising funds for key construction projects as an investment and financing platform of the People’s
Government of Yibin City, and investing in such projects by shareholding and holding; third, promoting the
preserve and increase the value of state-owned assets and economic development of the city by capital
management and assets management.
Yibin Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds 100%
of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,128,371,363.00 shares of the
Company directly or indirectly, taking up 54.83% of the total share capital of the Company.
The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin
City is the ultimate controller of the Company.
Refer to the Note "X Interests in Other Entities" for information about subsidiaries of the Company.
Refer to the Note "X Interests in Other Entities" for information about important joint ventures and associates
of the Company.
Other joint ventures or associates that were involved in related-party transactions with the Company in the
current period, or that were involved in related-party transactions with the Company in prior periods with balances
lasting into the current period:
Name of joint venture or associate Relationship with the Company
Sichuan Yibin Wuliangye Group Finance Co., Ltd. Associate
Yibin Jiamei Intelligent Packaging Co., Ltd. Associate
Names of other related parties Relationship between other related parties and the Company
The legal representative of the Company concurrently serves as
the Secretary of the CPC Committee and Chairman of the
Board of Wuliangye Group, and some directors and officers of
Sichuan Yibin Wuliangye Group Co., Ltd.
the Company concurrently hold positions in Wuliangye Group.
Wuliangye Group directly holds a 20.40% interest in the
Company.
Anji Logistic Group Co., Ltd. Sichuan Subsidiary of Wuliangye Group
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. Subsidiary of Anji Logistic Group
Yibin Wuliangye Group I&E Co., Ltd. Subsidiary of Wuliangye Group
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Sichuan Yibin Push Group Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Push Mold Co., Ltd. Subsidiary of Push Group
Sacred Mountain Molin Group Co., Ltd. Si Chuan Subsidiary of Wuliangye Group
Sichuan Wuliangye Products Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Global Group Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Global Huaxin Commercial Development Co.,
Subsidiary of Global Group
Ltd.
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan Subsidiary of Wuliangye Group
Yibin Global Photoelectric Energy Conservation Technology
Subsidiary of Global Group
Co., Ltd.
Chengdu PUTH Medical Technology Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push Building Materials Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push Auto Parts Co., Ltd. Subsidiary of Push Group
Push Information & Automation (Chengdu) Co., Ltd. Subsidiary of Push Group
Yibin An Shi Ji International Logistics Co., Ltd. Subsidiary of Anji Logistic Group
Yibin An Shi Ji Auto Service Co., Ltd. Subsidiary of Anji Logistic Group
Sichuan Yibin Wuliangye Group Ecological Brewery and
Subsidiary of Wuliangye Group
Marketing Co., Ltd.
Sichuan Yibin Push Intelligent Technology Co., Ltd. Subsidiary of Push Group
Chengdu Huayu Glass Manufacturing Co., Ltd. Subsidiary of Global Group
Yibin Push Linko Technology Co., Ltd. Subsidiary of Push Group
Sichuan Putian Packaging Co., Ltd. Subsidiary of Push Group
Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan Subsidiary of Sacred Mountain Molin Group
Yibin Push Assets Management Co., Ltd. Subsidiary of Push Group
Sichuan Andaxin Logistics Co., Ltd. Subsidiary of Anji Logistic Group
Sichuan Yibin Global Environmental Technology Co., Ltd. Subsidiary of Global Group
Wuming Tea Industry Holding Co., Ltd. Subsidiary of Wuliangye Tea Industry Development Fund
Sichuan Linhu Tea Industry Co., Ltd. Subsidiary of Chuanhong Tea Group
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. Subsidiary of Wuliangye Group
Yibin Wucai Packaging Co., Ltd. Subsidiary of Licai Group
Sichuan Wuliangye Baojianjiu Sales Co., Ltd. Subsidiary of Health Liquor Group
Sichuan Nongwu E-commerce Co., Ltd. Subsidiary of Chuanhong Tea Group
Sichuan Global Insulator Co., Ltd. Subsidiary of Global Group
Sichuan Shuzhan New Materials Co., Ltd. Subsidiary of Sacred Mountain Molin Group
Yibin Jichi Automobile Sales Service Co., Ltd. Subsidiary of Anji Logistic Group
Yibin Chuanhong Tea Group Co., Ltd. Subsidiary of Wuliangye Tea Industry Development Fund
Sichuan Yibin Push International Co., Ltd. Subsidiary of Push Group
Yibin Tianyuan Goods&Materials Industry Group Co., Ltd. Subsidiary of Tianyuan Group
Zhejiang Pukai New Material Co., Ltd. Subsidiary of Push Group
Yibin Airport Aviation Service Co., Ltd. Subsidiary of Sanjiang Investment and Construction Group
Yibin Grace Fiber Industry Co., Ltd. Subsidiary of Grace Group
Yibin Hiest Fibre Limited Corporation Subsidiary of Grace Group
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Yibin City Commercial Bank Co., Ltd. Wuliangye Group holds a 19.99% interest.
Sichuan Yibin Push Drive Co., Ltd. Subsidiary of Push Group
Yibin Airport Group Co., Ltd. Subsidiary of Sanjiang Investment and Construction Group
Yibin Shunan Cultural Tourism and Creative Product
Subsidiary of Shunan Cultural Tourism Investment Group
Development Co., Ltd.
Yibin Construction Investment Group Jinpaiyuan Supply Chain Subsidiary of Yibin Urban and Traffic Construction Investment
Management Co., Ltd. Group
Chengdu Anjiu Supply Chain Co., Ltd. Subsidiary of Anji Logistic Group
Sichuan United Liquor Investment Management Co., Ltd. Subsidiary of Anji Logistic Group
Yibin Xinjinxiu Garden Landscaping Co., Ltd. Subsidiary of Grace Group
Yibin Shunan Mingkun Supply Chain Service Co., Ltd. Subsidiary of Shunan Cultural Tourism Investment Group
Yibin Sanjiang Huiyuanhe Agricultural Investment
Subsidiary of Sanjiang Investment and Construction Group
Development Co., Ltd.
Yibin Sanjiang Xingcheng Supply Chain Co., Ltd. Subsidiary of Sanjiang Investment and Construction Group
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering of
services
Purchases of goods/receipt of services:
Unit: RMB
Over the
Approve approve
d d
Related party Content of transaction 2023 transacti transacti 2022
on on
amount amount
or not
Sichuan Yibin Global Huaxin Raw materials, glass
Commercial Development Co., Ltd. bottles, etc.
Sacred Mountain Molin Group Co.,
PPE, etc. 335,758,450.45 342,638,288.79
Ltd. Si Chuan
Sacred Mountain White Magnolia
PPE, etc. 86,640,642.77 16,261,166.33
Industrial Co., Ltd., Sichuan
Anti-counterfeit labels
Sichuan Yibin Push Group Co., Ltd. 83,205,248.58 74,657,518.94
etc.
Sichuan Wuliangye Products Co.,
Raw materials, etc. 73,672,782.98 74,547,521.47
Ltd.
Chengdu PUTH Medical
Raw materials, etc. 66,301,152.60 70,910,604.02
Technology Co., Ltd.
Wuming Tea Industry Holding Co.,
Tea, etc. 123,641,087.35 54,932,985.64
Ltd.
Yibin Chuanhong Tea Group Co.,
Tea 61,008,968.67 29,638,828.00
Ltd.
Sichuan Yibin Push Mold Co., Ltd. Raw materials, etc. 51,994,509.33 64,080,623.14
WuLiangYe Group Health Liquor
Health liquor 105,592,684.05
Co., Ltd. Yibin. Sichuan
Sichuan Putian Packaging Co., Ltd. Raw materials, etc. 31,306,590.02 13,561,665.00
Sichuan Yibin Push Drive Co., Ltd. Raw materials, etc. 15,120,732.04 17,523,314.19
Chengdu Huayu Glass
Glass bottles, etc. 15,641,165.60 21,780,109.59
Manufacturing Co., Ltd.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Sichuan Yibin Wuliang
Medicines, etc. 13,113,106.65 14,620,065.38
Pharmaceutical Co., Ltd.
Sichuan Wuliangye Baojianjiu Sales
Health liquor 13,207,079.46
Co., Ltd.
Yibin Hiest Fibre Limited
Raw materials 12,521,830.89
Corporation
Sichuan Yibin Push Building
Raw materials 9,207,131.18 5,487,962.63
Materials Co., Ltd.
Sichuan Yibin Global
Raw materials 9,451,781.36
Environmental Technology Co., Ltd.
Sichuan Yibin Push Auto Parts Co.,
Raw materials, etc. 6,461,694.76 2,006,480.60
Ltd.
Yibin Global Photoelectric Energy
Raw materials, etc. 20,965.18 12,271,638.57
Conservation Technology Co., Ltd.
Other miscellaneous purchases of
goods from related parties
Total purchases of goods from
related parties
Freight and
Anji Logistic Group Co., Ltd. miscellaneous
Sichuan charges, service
charges, etc.
Sichuan Andaxin Logistics Co., Ltd. External labour costs 181,926,238.47 77,361,088.22
Yi Bin Jia Mei Smartpackaging Co., External processing
Ltd. expenses
Freight and
Sichuan Yibin Wuliangye Group miscellaneous
Anji Logistic Co., Ltd. charges, shuttle
service charges, etc.
Chengdu PUTH Medical External processing
Technology Co., Ltd. expenses
Image promotion
Yibin Airport Group Co., Ltd. 16,426,886.78
expenses
Sichuan Yibin Push Intelligent
Repair expenses, etc. 13,983,192.08 9,875,552.57
Technology Co., Ltd.
Sichuan Yibin Push Mold Co., Ltd. Repair expenses, etc. 11,956,562.90
External processing
Yibin Wucai Packaging Co., Ltd. 11,448,519.86 3,064,274.15
expenses
Freight and
miscellaneous
Yibin An Shi Ji Auto Service Co.,
charges, repair 7,436,793.63 5,718,811.96
Ltd.
charges, vehicle costs,
etc.
WuLiangYe Group Health Liquor Marketing support
Co., Ltd. Yibin. Sichuan expenses
Other miscellaneous receipts of 16,334,682.82 7,552,474.39
services from related parties
Total receipts of services from
related parties
Note 1: The Company and Sichuan Yibin Global Huaxin Commercial Development Co., Ltd. entered into the
Purchase and Sales Agreement and Agreement, according to which the Company procures raw materials, cartons,
glass bottles, etc. from Huaxin. The pricing principle is market quotations, and the specific purchases and sales
demand may be determined according to the orders by the two parties. The Agreement is valid from 1 January
Note 2: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the Labor
Protection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according to
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
which the Company procures labor protection appliances, packing bags, and festival food from Sacred Mountain
Molin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 3: The Company and Chengdu PUTH Medical Technology Co., Ltd. entered into Procurement Contract.
The Company procures films, bags, boxes, accessories, etc. from PUTH Medical. According to the bid agreement,
the Company will place an order with Chengdu Push Medical Plastics Packaging Co., Ltd. with the bid result.
Specific information on the name, quantity, amount, etc. of accessories can be seen in the procurement orders
signed by both parties. The price of goods is the factory price in lump sum, including the factory price of materials,
packing expenses, transportation loss charges, transportation expenses, and various testing fees of the material,
various risks, profits, taxes, and other expenses. The Agreement is valid for three year since the bid opening day.
Note 4: On 11 December 2020, the Company and Sichuan Yibin Push Mold Co., Ltd. entered into the Supply
Agreement. The Company procures molds, spare parts, systems, R&D restructuring and maintenance projects,
injection products and raw material, value-added services and so on from Sichuan Yibin Push Mold Co., Ltd. The
agreement products are paid at market price, and the specific purchases and sales demand may be determined
according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 5: On 5 March 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the Related-
Party Transaction Framework Agreement. The Company procures equipment and anti-counterfeit labels from
Push Group. Refer to corresponding purchases and sales contract for details on sales of goods, unit, quantity, and
amount. The product price is the factory price in lump sum, including the factory price of materials, packing
expenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate adjusted by the
country) and other expenses. If delivery is requested, extra expenses such as the freight charge, insurance expense
and delivery expense are needed based on the factory price. The Agreement is valid from 5 March 2021 to 31
December 2023.
Note 6: The Company and Wuming Tea Industry Holding Co., Ltd. entered into the Agreement, according to
which the Company procures tea leaves and peripheral products of tea, tea-related prepackaged foods and tea for
heatstroke prevention and cooling, papers products, and marketing products from Wuming Tea Industry Holding
Co., Ltd. The pricing principle is based on the value and cost, oriented by market competition, taking the historical
price for reference and the costs, profits, taxes and dues, quality, delivery date, order quantity, after-sales service,
logistics, packaging, payment terms into full consideration. The specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 7: The Company and Anji Logistic Group Co., Ltd. Sichuan entered into the Agreement on 1 January
stevedoring. The pricing principle is price fairness, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Sale of goods/rendering of services:
Unit: RMB
Content of
Related party 2023 2022
transaction
Liquor products,
Yibin Wuliangye Group I&E Co., Ltd. 1,004,222,636.50 890,325,314.77
etc.
Yibin Shunan Cultural Tourism and Creative Product Liquor products,
Development Co., Ltd. etc.
Liquor products,
Wuming Tea Industry Holding Co., Ltd. 385,159,074.92 88,605,502.59
etc.
Yibin Construction Investment Group Jinpaiyuan Supply
Liquor products 300,887,362.93
Chain Management Co., Ltd.
Bottle caps,
Sichuan Putian Packaging Co., Ltd. packaging boxes, 150,137,380.27 147,098,873.26
etc.
Sichuan Yibin Wuliangye Group Ecological Brewery and
Liquor products 119,551,045.09 3,233,235.08
Marketing Co., Ltd.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Sichuan Global Insulator Co., Ltd. Glass bottles, etc. 49,013,139.34 85,983,531.87
Chengdu PUTH Medical Technology Co., Ltd. Raw materials, etc. 41,063,618.50 37,044,899.55
Yibin Airport Aviation Service Co., Ltd. Liquor products 34,746,079.60 5,094,330.99
Sichuan Yibin Global Group Co., Ltd. Liquor products 31,880,741.60
Chengdu Anjiu Supply Chain Co., Ltd. Raw materials, etc. 30,791,328.97
Liquor products,
Sichuan United Liquor Investment Management Co., Ltd. 28,903,393.24
etc.
Sichuan Nongwu E-commerce Co., Ltd. Liquor products 25,314,289.31 41,097,469.02
Zhejiang Pukai New Material Co., Ltd. Slices 8,449,819.82 9,609,175.58
Chengdu Huayu Glass Manufacturing Co., Ltd. Cartons, etc. 19,145,337.80 6,311,751.24
Sichuan Yibin Push Building Materials Co., Ltd. Raw materials, etc. 17,701,766.60 5,730,155.65
Packaging boxes,
Yibin Chuanhong Tea Group Co., Ltd. 8,902,368.69
etc.
Yibin Sanjiang Xingcheng Supply Chain Co., Ltd. Raw materials, etc. 12,527,086.94
Liquor products,
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 12,129,216.84 17,820,858.43
etc.
Sichuan Yibin Push Drive Co., Ltd. Slices, etc. 11,016,970.23 10,870,632.10
Liquor products,
Sichuan Wuliangye Products Co., Ltd. 9,988,988.06 340,207,564.08
and raw materials
Packaging boxes,
Sichuan Linhu Tea Industry Co., Ltd. 7,140,322.95 2,708,303.80
etc.
Cartons, arts &
Yibin Grace Fiber Industry Co., Ltd. 5,374,624.42 4,139,121.41
crafts, etc.
Sichuan Shuzhan New Materials Co., Ltd. Cartons, etc. 3,182,147.56 5,456,605.98
Liquor products,
Yibin An Shi Ji International Logistics Co., Ltd. 1,913,358.12 96,358,269.24
etc.
Glass bottles, raw
Sichuan Yibin Global Group Co., Ltd. 401,633.64 59,487,606.48
materials, etc.
Yibin Global Photoelectric Energy Conservation
Raw materials, etc. 106,620.22 50,054,556.67
Technology Co., Ltd.
Yibin Tianyuan Goods&Materials Industry Group Co., 23,198,309.63
Raw materials, etc.
Ltd.
Other miscellaneous sales to related parties 29,854,861.07 29,535,772.80
Total 2,792,204,967.81 1,959,971,840.22
Note 1: On 1 January 2021, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered into the Export
Commodities Purchase and Sales Agreement. According to the Agreement, Wuliangye Group I&E shall give the
Company prior written notice of specific requirements for specification, model, packaging, anti-counterfeit label,
quantity, and delivery term of the Wuliangye series products according to the demands of the international market,
and prepay 60% of the purchase price to the Company. The Company shall organize the production and supply
Wuliangye series liquor products in a timely manner according to the export demands of Wuliangye Group I&E.
Due to some factors such as the change of the exchange rate, the price that the Company charges for the agreed
products supplying to Wuliangye Group I&E is floating price. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 2: On 22 December 2020, the Company and Sichuan Putian Packaging Co., Ltd. entered into the
Framework Contract. Sichuan Putian Packaging Co., Ltd. procures bulk chemical materials, packaging products
and other materials from the Company for production and operation. Refer to corresponding purchases and sales
contract for details on sales of goods, unit, quantity, and amount. The product price is the factory price in lump
sum, including the factory price of materials, packing expenses, and various testing fees of the material, various
risks, profits, taxes (utilizing the tax rate adjusted by the country) and other expenses. If delivery is requested,
extra expenses such as the freight charge, insurance expense and delivery expense are needed based on the factory
price. The Agreement is valid from 1 January 2021 to 31 December 2023.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Note 3: On 1 January 2021, the Company and Sichuan Yibin Global Group Co., Ltd. entered into the
Agreement. Sichuan Yibin Global Group Co., Ltd. procures glass bottles and so on from the Company. The
pricing principle is as it is agreed in the contract, and the specific purchases and sales demand may be determined
according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 4: The Company and Chengdu PUTH Medical Technology Co., Ltd. entered into the Framework
Contract and Related-Party Transaction Framework Agreement. PUTH Medical procures bulk chemical materials,
packaging products and other materials from the Company for production and operation. Please refer to
corresponding purchases and sales contract for details on sales of goods, unit, quantity, and amount. The product
price is the factory price in lump sum, including the factory price of materials, packing expenses, and various
testing fees of the material, various risks, profits, taxes (utilizing the tax rate adjusted by the country) and other
expenses. If delivery is requested, extra expenses such as the freight charge, insurance expense and delivery
expense are needed based on the factory price. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 5: The Company and Sichuan Nongwu E-commerce Co., Ltd. entered into the Agreement. Sichuan
Nongwu E-commerce Co., Ltd. procures Wuliang Nongxiang wine from the Company, and the specific purchases
and sales demand may be determined according to the orders by the two parties. The Agreement is valid from 1
January 2021 to 31 December 2023.
Note 6: On 1 September 2020, the Company and Sichuan Yibin Wuliangye Group Ecological Brewery and
Marketing Co., Ltd. entered into the Base Wine Purchase Agreement. According to the market demand, Sichuan
Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. put forward specific requirements for the
quantities, delivery date and so on of the agreed products in advance. Then, the Company supplies the agreed
products to it based on its demand for production and operation. For each actual supply of the agreed products, the
actual settle quantity should be the quantity determined by both parties, and the price of the agreed products shall
strictly obey the market price with the delivery after payment. The Agreement is valid from 1 January 2021 to 31
December 2023.
(2) Leases between the Company and related parties
The Company as the lessor:
Unit: RMB
Lease income Lease income
Lessee Type of the leased asset recognized in the recognized in the
current period prior period
Buildings and
Other miscellaneous leases constructions, and 1,651,136.85 1,325,206.16
warehouses
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
The Company as the lessee:
Unit: RMB
Lease expense on short-term leases
Type of and leases of low-value assets Variable lease payments not included
Lease payments Interest expense on lease liabilities Addition of right-of-use assets
the accounted with a simplified in lease liabilities (if applicable)
Lessor
leased approach (if applicable)
asset
Anji Logistic Group Wareho
Co., Ltd. Sichuan uses
Buildin
gs and
Sichuan Yibin Push
constru 6,715,238.08 6,715,238.08 227,351.66 446,482.91
Group Co., Ltd.
ctions
(note 3)
Buildin
Sichuan Yibin gs and
Wuliangye Group constru 1,384,512.67 1,522,182.20 29,255,400.00 29,255,400.00 547,140.04 1,533,162.69
Co., Ltd. ctions
(note 2)
Sichuan Yibin
Land
Wuliangye Group 296,608,546.40 296,608,546.40 5,547,229.32 15,544,110.07
(note 1)
Co., Ltd.
Yibin Global
Photoelectric Energy Wareho
Conservation uses
Technology Co., Ltd.
Yibin Push Linko Wareho
Technology Co., Ltd. uses
Yibin Push Assets
Wareho
Management Co., 3,288,644.91 4,128,446.44 2,431,920.00 3,735,473.53 66,040.85 146,943.35 4,718,715.17
uses
Ltd.
Wareho
Other miscellaneous
uses, 10,475,421.86 6,037,485.74 40,906.52 11,134,403.14 14,508,988.36 -205,422.47 734,849.67 1,579,889.04 8,470,998.97
leases
etc.
Notes to the leases between the Company and related parties:
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into three Land Lease Agreements, according to which
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Wuliangye Group leased five plots of lands (Wujiaba Land Parcel, Zongchang Land Parcel, Ziyan Land Parcel I, Fuzao Land Parcel, and Zhuchangqu Land Parcel)
with an area of 2,315,349.08 square meters, Guifei Land Parcel, Old Summer Palace Land Parcel I and II, Nanxi Land Parcel I, II, and III, Zhuchangqu Land Parcel
with an area of 725,587.75 square meters, and 1,000 mu of land (an area of 666,670.00 square meters) in the north side of Hongba Road owned by it to the Company.
The annual rents are RMB185,227,900, RMB5,804,700and RMB53,333,600, respectively, totaling RMB296,608,500. The lease term is from 1 January 2021 to 31
December 2023.
Land price criterion:
The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. is formulated with reference to the land lease criterion of previous
years and in accordance with the Reply of Yibin Land Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of the Land Lease
Criterion (YGTH [2010] No. 53, 12 March 2010), which states that "the rent of RMB50 to RMB110 per square meter per year for the industrial land in this area is
consistent with prevailing land price of Yibin". The Company and Wuliangye Group determine the rent of leased land as RMB80 per square meter per year through
mutual agreement.
Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the Operation and Management Areas Lease
Agreement, according to which Wuliangye Group leases part of the operation and management areas (including the office building, multi-function pavilion, etc.)
owned by it to the Company. The leased area is 27,121.32 square meters, with the annual rent of RMB29,255,400. The lease term is from 1 January 2021 to 31
December 2023.
Note 3: On 1 January 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the Operation and Management Areas Lease Agreement,
according to which Push Group leases its office building located at No. 150, West Minjiang Road, Yibin and all office equipment in the office building to the
Company. The leased area is 6,536.70 square meters, with the annual rent of RMB7.051 million. The lease term is from 1 January 2021 to 31 December 2023.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(3) Guarantees between the Company and related parties
There were no guarantees between the Company and related parties during the Reporting Period.
(4) Loans between the Company and related parties
There were no loans between the Company and related parties during the Reporting Period.
(5) Asset transfers and debt restructuring involving related parties
There were no asset transfers or debt restructuring involving related parties during the Reporting Period.
(6) Remuneration of key management
Unit: RMB’0,000
Item 2023 2022
Remuneration of key management 906.57 1,304.21
(7) Other related-party transactions
a) Procurement of equipment, etc.
Unit: RMB
Related party Content of transaction 2023 2022
Trademark and logo royalties
Sichuan Yibin Wuliangye Group Co., Ltd. 966,221,702.16 862,086,498.68
(note 1)
Comprehensive service fee
Sichuan Yibin Wuliangye Group Co., Ltd. 85,342,094.79 77,670,062.58
(note 2)
Procurement of transportation
Yibin An Shi Ji Auto Service Co., Ltd. 15,450,000.00
equipment
Yibin Jichi Automobile Sales Service Co., Procurement of transportation
Ltd. equipment
Push Information & Automation (Chengdu) Procurement of equipment
Co., Ltd. and software systems
Sichuan Yibin Push Intelligent Technology
Procurement of equipment 8,713,995.95 6,570,295.36
Co., Ltd.
Sichuan Yibin Global Environmental
Construction in progress 8,350,148.66
Technology Co., Ltd.
Other miscellaneous purchases of equipment, 11,744,027.48 5,419,526.71
etc.
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the
Trademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses to the Company the
nonexclusive right of use of one factory emblem, the nonexclusive right of use of seven trademarks, exclusive
right of use of 182 trademarks, and unpaid exclusive right of use of eight trademarks. The royalty shall be paid by
the following means: a) The royalty of "factory emblem" shall be paid at 1.27% of the annual sales revenue from
all liquor products using the factory emblem; b) no royalty shall be paid for trademark of liquor products of which
the annual sales revenue is less than 50 tons, and royalty of trademark of liquor products sold by 50 tons
(inclusive) or more shall be calculated by the total sales volume. Royalties of trademark shall be paid by the
following means: Trademark royalty of products with selling price at RMB30,000 per ton and above shall be
RMB1,500 per ton; and that of products with selling price at RMB12,000 per ton and above but below
RMB30,000 per ton shall be RMB1,400 per ton; that of products with selling price below RMB12,000 shall be
RMB1,300 per ton. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the
Comprehensive Service Agreement, according to which the latter shall provide the agreed service to the Company
by the quantity agreed by both parties from time to time. Both parties measure the services at the actual cost, and
the rate of increase of the unit cost price compared with the previous year shall be no more than the inflation index
of previous year plus 5% or the growth factor of consumer price index of Sichuan Province, whichever is lower.
The increase shall not be subject to the above limit when the service scope is expanded, and the service shall still
be measured at the actual cost of provision of the service. The Agreement is valid from 1 January 2021 to 31
December 2023.
b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co., Ltd.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
On 19 April 2023, the Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (hereinafter referred
to as "Wuliangye Group Finance") entered into a supplementary agreement to the Financial Service Agreement.
As such, both parties agreed to continue to implement in 2023 “the Financial Service Agreement signed between
the Company and Wuliangye Group Finance on 2 April 2021”, i.e. the daily balance of loans and credit lines from
Wuliangye Group Finance in 2023 was no more than RMB10 billion.
The total deposits of the Company with Wuliangye Group Finance was RMB40,299,537,492.34 at the end of
the period; Sichuan Yibin Wuliangye Group Co., Ltd. issued the Commitment Letter to the Company, assuring
that relevant deposits and loans of the Company with Wuliangye Group Finance are safe; the current interest
income is RMB969,194,731.11 in total; Wuliangye Group Finance discounted bank acceptance bills of
RMB536,140,080.00 for the Company during the current period (undue bank acceptance notes as at 31 December
for the Company during the current period (undue bank acceptance notes as at 31 December 2023:
RMB466,501,053.92).
c) Related-party transactions with Yibin City Commercial Bank Co., Ltd.
The total deposits of the Company with Yibin City Commercial Bank Co., Ltd. was RMB11,491,609,251.08
at the end of the period; the current interest income is RMB161,719,529.79 in total; Yibin City Commercial Bank
Co., Ltd. issued bank acceptance bills of RMB338,210,000.00 for the Company during the current period (undue
bank acceptance bills as at 31 December 2023: RMB138,820,000.00).
(1) Amounts due from related parties
Unit: RMB
Closing balance Opening balance
Allow Allow
ance ance
Item Related party for for
Gross amount doubtf Gross amount doubtf
ul ul
accou accou
nt nt
Account
Sichuan Putian Packaging Co., Ltd. 11,034,316.71 9,704,093.72
receivable
Account Chengdu Huayu Glass Manufacturing Co.,
receivable Ltd.
Account
Yibin Grace Fiber Industry Co., Ltd. 2,641,212.86 1,667,887.25
receivable
Account
Other miscellaneous accounts receivable 1,236,709.66 2,100,942.42
receivable
Sacred Mountain White Magnolia Industrial
Prepayment 3,398,230.09 18,900,000.00
Co., Ltd., Sichuan
Prepayment Wuming Tea Industry Holding Co., Ltd. 6,016,608.60 7,245.00
Yibin Xinjinxiu Garden Landscaping Co.,
Prepayment 4,380,147.38
Ltd.
Prepayment Other miscellaneous prepayments 821,470.76 1,251,623.86
Sichuan Yibin Wuliangye Group Finance Co.,
Monetary assets 606,922,650.12 666,921,754.74
Ltd.
Monetary assets Yibin City Commercial Bank Co., Ltd. 118,345,047.42 10,804,085.47
Other
Other miscellaneous other receivables 1,037,121.60 1,403,354.82
receivables
The amounts related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. and Yibin City Commercial Bank
Co., Ltd. in this table represented the interest on time deposits accrued on an accrual basis, and the closing
balances were presented in monetary assets.
(2) Amounts due to related parties
Unit: RMB
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Closing gross
Item Related party Opening gross amount
amount
Account Sichuan Yibin Global Huaxin Commercial Development
payable Co., Ltd.
Account
Sichuan Yibin Push Intelligent Technology Co., Ltd. 3,161.00 1,026,904.56
payable
Account
Yibin Push Assets Management Co., Ltd. 3,096,000.00 313,182.65
payable
Account
Sichuan Putian Packaging Co., Ltd. 1,350,604.28 37,096.80
payable
Account
Anji Logistic Group Co., Ltd. Sichuan 135,225,553.79
payable
Account
Sacred Mountain Molin Group Co., Ltd. Si Chuan 224,885,409.87
payable
Account Sichuan Yibin Global Environmental Technology Co.,
payable Ltd.
Account
Sichuan Wuliangye Products Co., Ltd. 3,727,072.00
payable
Account
Sichuan Yibin Push International Co., Ltd. 1,433,373.36
payable
Account
Other miscellaneous accounts payable 2,208,577.81 1,698,245.81
payable
Advance
from Other miscellaneous advances from customers 17,142.71 17,142.89
customer
Contract
Yibin Wuliangye Group I&E Co., Ltd. 199,518,341.92 445,542,725.66
liability
Contract Sichuan Yibin Wuliangye Group Ecological Brewery and
liability Marketing Co., Ltd.
Contract
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 2,295.87 1,536,665.16
liability
Contract
Sacred Mountain Molin Group Co., Ltd. Si Chuan 1,023,041.91 1,020,748.11
liability
Contract
Sichuan Nongwu E-commerce Co., Ltd. 1,130,074.52 453,537.40
liability
Contract
Sichuan Wuliangye Products Co., Ltd. 35,457,682.68 59,426,283.57
liability
Contract
Yibin Airport Aviation Service Co., Ltd. 133,805.31 33,329,766.37
liability
Contract
Yibin Shunan Mingkun Supply Chain Service Co., Ltd. 26,548,672.57
liability
Contract Yibin Construction Investment Group Jinpaiyuan Supply
liability Chain Management Co., Ltd.
Contract
Other miscellaneous contract liabilities 5,384,980.44 2,773,772.32
liability
Note
Anji Logistic Group Co., Ltd. Sichuan 5,757,438.64
payable
Note
Chengdu Huayu Glass Manufacturing Co., Ltd. 6,300,559.87
payable
Note Sichuan Yibin Global Huaxin Commercial Development
payable Co., Ltd.
Note
Other miscellaneous notes payable 148,734.18
payable
Other
Yibin Chuanhong Tea Group Co., Ltd. 25,842.53 3,206,818.98
payable
Other
Sichuan Yibin Push Intelligent Technology Co., Ltd. 2,105,565.41 2,356,447.86
payable
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Other
Anji Logistic Group Co., Ltd. Sichuan 216,589,647.24 1,615,588.00
payable
Other
Wuming Tea Industry Holding Co., Ltd. 57,242,321.41 20,000.00
payable
Other
Sacred Mountain Molin Group Co., Ltd. Si Chuan 127,972.50 1,315,988.00
payable
Other
Push Information & Automation (Chengdu) Co., Ltd. 1,480,720.39 1,313,400.40
payable
Other Yibin Sanjiang Huiyuanhe Agricultural Investment
payable Development Co., Ltd.
Other
Other miscellaneous other payables 5,305,779.21 3,980,824.48
payable
XIV Undertakings and Contingencies
The Company had no significant undertakings which need to be disclosed during the Reporting Period.
The Company had no significant contingencies which needed to be disclosed during the Reporting Period.
XV Post-Balance Sheet Date Events
The Company had no important non-adjustment matters which need to be disclosed.
As resolved by the 4th Meeting in 2024 of the 6th Board of Directors of the Company held on 24 April 2024,
the final dividend plan for 2023 is: a cash dividend of RMB46.70 (tax inclusive) per 10 shares should be
distributed to shareholders, with no bonus issue from capital reserves. This plan shall be subject to the approval of
a general meeting of shareholders.
The Company has no other post-balance sheet date events which need to be disclosed.
XVI Other Significant Matters
The Company obtained the reply of the State-owned Assets Supervision and Administration Commission of
the People’s Government of Yibin City on the Plan of Establishing the Corporate Annuity Plan of the Company
(YGZW [2018] No. 221) on 14 September 2018, and had filed with the Department of Human Resources and
Social Security of Sichuan Province on 30 October 2018.
Participants of the corporate annuity plan of the Company include: (1) Employees who have entered into
labor contracts with the Company; (2) employees who participate in the basic old-age insurance system for
enterprise employees according to the law and perform the obligation of payment; and (3) employees who are on
duty and registered (excluding the probation period) will participate the corporate pension plan on a voluntary
basis.
Expenses for the corporate annuities shall be shared by the Company and the employees. Contribution by an
employee shall be 3% of the contribution base of such employee, and the monthly contribution base of the
employee shall be the average wage in the previous year. Total amount of contribution by the Company shall be 5%
of the total annual wage paid by the Company, which shall be distributed to individual accounts of the employees
at 3% of the contribution base of the employees, while the remaining 2% shall be distributed to the corporate
account as incentives for rewarding personnel who make significant contributions to the Company and for
redistribution to employees of the Company.
The Company has no other businesses than liquor products which have significant impact on the operating
result. The Company has no segment information that needs to be disclosed since revenue of the Company is
mainly generated within China and the assets are also located within China.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
XVII Notes to Major Line Items in the Financial Statements of the Company as the Parent
Unit: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable 930,755,375.66 2,126,718,123.00
Other receivables 5,555,194,330.26 6,335,913,181.66
Total 6,485,949,705.92 8,462,631,304.66
(1) Dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Dividends receivable from subsidiaries 930,755,375.66 2,126,718,123.00
Total 930,755,375.66 2,126,718,123.00
(2) Other receivables
Unit: RMB
Nature Closing gross amount Opening gross amount
Current account 5,553,988,496.97 6,333,318,770.49
Security deposits 199,301.29 5,000,000.00
Cash float 5,000,000.00 101,301.29
Other advance money for others or
temporary payment
Total 5,559,204,666.43 6,338,420,071.78
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year (inclusive) 421,132,709.48 4,118,461,478.12
More than 3 years 1,996,671,626.98 1,855,535,256.00
More than 5 years 1,743,649,901.18 1,626,726,105.83
Total 5,559,204,666.43 6,338,420,071.78
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
? Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross amount Gross amount
account account
Category Allowan Allowan
As % of Carrying amount As % of Carrying amount
ce as % ce as %
the total the total
Amount Amount of the Amount Amount of the
gross gross
gross gross
amount amount
amount amount
Of which:
Other
receivables
for which
allowances
for doubtful
accounts are
established
on a
grouping
basis
Of which:
Of which:
External 5,219,730.82 0.09% 4,010,336.17 76.83% 1,209,394.65 5,104,862.65 0.08% 2,506,890.12 49.11% 2,597,972.53
customers
Related
parties
Total 5,559,204,666.43 100.00% 4,010,336.17 0.07% 5,555,194,330.26 6,338,420,071.78 100.00% 2,506,890.12 0.04% 6,335,913,181.66
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Other receivables for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance for doubtful Allowance as % of
Gross amount
account the gross amount
Other receivables for which allowances for
doubtful accounts are established based on the 5,219,730.82 4,010,336.17 76.83%
external customer group
Other receivables for which allowances for
doubtful accounts are established based on the 5,553,984,935.61
related party group
Total 5,559,204,666.43 4,010,336.17
Allowances for doubtful accounts established using the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for doubtful 12-month Lifetime expected credit Lifetime expected credit Total
accounts expected credit loss (without credit loss (with credit
loss impairment) impairment)
Balance as at 1 January 2023 2,506,890.12 2,506,890.12
Balance as at 1 January 2023
was in the current period
Established in the current
period
Balance as at 31 December
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable ? Not applicable
Allowances for doubtful accounts in the current period:
Unit: RMB
Changes in the current period
Opening Charged off
Category Recovered Othe Closing balance
balance Established or written
or reversed rs
off
Other receivables for which
allowances for doubtful
accounts are established based 2,506,890.12 1,503,446.05 4,010,336.17
on the credit risk characteristic
group
Total 2,506,890.12 1,503,446.05 4,010,336.17
There were no other receivables actually written off in the current period.
Unit: RMB
Nature of As % of the Closing balance
Entity Closing balance Aging
account closing balance of allowances
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
of total other for doubtful
receivables accounts
Sichuan Yibin Wuliangye Current
Distillery Co., Ltd. account
Yibin Jiangjiu Liquor Co., Current 1-5 years; over 5
Ltd. account years
Sichuan Yibin Wuliangye
Current Within 3 years; over 5
Environmental Protection 174,909,203.40 3.15%
account years
Industry Co., Ltd.
Yibin Wuliangye Xianlin
Current
Ecological Liquor Co., 129,206,278.05 Over 5 years 2.32%
account
Ltd.
Housing and Urban-Rural
Development Bureau of Security
Cuiping District, Yibin deposit
City
Total 5,558,984,935.61 100.00% 4,000,000.00
Unit: RMB
Closing balance Opening balance
Impairm Impair
Item ent ment
Gross amount Carrying amount Gross amount Carrying amount
allowan allowa
ces nces
Investments in
subsidiaries
Investments in
associates and 1,996,294,215.89 1,996,294,215.89 1,966,914,053.94 1,966,914,053.94
joint ventures
Total 13,436,738,333.48 13,436,738,333.48 13,383,816,192.05 13,383,816,192.05
(1) Investments in subsidiaries
Unit: RMB
Increase/decrease in the current period
Closi
Opening
De Im ng
balance
cre pai balan
of
Opening balance ase rm Closing balance ce of
Investee impairm Ot
(carrying amount) Increase in in ent (carrying amount) impai
ent her
investment inv all rment
allowan s
est ow allow
ce
me anc ance
nt e
Sichuan Yibin Wuliangye Distillery
Co., Ltd.
Yibin Wuliangye Liquor Sales Co.,
Ltd.
Sichuan Yibin Wuliangye Supply and
Marketing Co., Ltd.
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00 50,000,000.00
Sichuan Yibin Wuliangye
Environmental Protection Industry 18,870,000.00 23,541,979.48 42,411,979.48
Co., Ltd.
Yibin Changjiangyuan Liquor Co.,
Ltd.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Yibin Wuliangye Xianlin Ecological
Liquor Co., Ltd.
Sichuan Yibin Wuliangye Jingmei
Printing Co., Ltd.
Sichuan Yibin Plastic Packaging
Materials Company Limited
Sichuan Yibin Global Group
Shenzhou Glass Co., Ltd.
Sichuan Yibin Global Gelasi Glass
Manufacturing Co., Ltd.
Sichuan Yibin Push Group 3D Co.,
Ltd.
Sichuan Yibin Wuliangye Investment
(Consulting) Co., Ltd.
Wuliangye Dashijie (Beijing) Trade
Co., Ltd.
Handan Yongbufenli Liquor Co., Ltd. 255,000,000.00 255,000,000.00
Wuguchun Jiu Ye Co., Henan. China 255,143,449.52 255,143,449.52
Sichuan Wuliangye Culture Tourism
Development Co., Ltd.
Yibin Wuliangye Creart Co., Ltd. 45,000,000.00 45,000,000.00
Sichuan Wuliangye NongXiang Baijiu
Co., Ltd.
Sichuan Wuliangye New Retail
Management Co., Ltd.
Total 11,416,902,138.11 23,541,979.48 11,440,444,117.59
(2) Investment in associates and joint ventures
Unit: RMB
Increase/decrease in the current period Clo
sing
Open Adju bala
Ot
ing
De stme Im nce
her
Opening balan
Incr cre nt to pai of
Return on eq Closing balance
balance ease ase other rm
ce of investment uit Declared cash Ot imp
Investee in in com ent (carrying
(carrying impai air
recognized y dividends or her amount)
amount) rment inve inv preh all men
using the equity ch profit s
allow stm est ensiv ow t
method an
ance ent me e an allo
ge
nt inco ce wan
s
me ce
I Joint ventures
II Associates
Oriental
Outlook
Media Co.,
Ltd.
Sichuan Yibin
Wuliangye
Group 1,930,138,327.52 51,680,660.38 23,638,368.00 1,958,180,619.90
Finance Co.,
Ltd.
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
Beijing
Zhongjiuhui
cui
Education 10,646,588.50 105,070.15 10,751,658.65
and
Technology
Co., Ltd.
Sub-total 1,966,914,053.94 53,018,529.95 23,638,368.00 1,996,294,215.89
Total 1,966,914,053.94 53,018,529.95 23,638,368.00 1,996,294,215.89
Unit: RMB
Item 2023 2022
Return on long-term equity investments
measured using the cost method
Return on long-term equity investments
measured using the equity method
Total 21,190,098,296.84 18,799,779,256.49
XVIII Supplementary Information
? Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance
-50,550,226.30
write-offs)
Government grants recognised in profit or loss (exclusive of those that are closely
related to the Company's normal business operations and given in accordance with
defined criteria and in compliance with government policies, and have a continuing
impact on the Company's profit or loss)
Capital occupation charges on non-financial enterprises that are recognized in profit
or loss
Reversed portions of impairment allowances for receivables which are tested
individually for impairment
Non-operating income and expense other than the above -36,541,935.37
Less: Income tax effects 40,618,434.04
Non-controlling interests effects (net of tax) 16,118,943.29
Total 94,116,358.51 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
Profit in the Reporting Period Weighted average ROE EPS
Annual Report 2023 of Wuliangye Yibin Co., Ltd.
(%) Basic EPS (RMB/share) Diluted EPS (RMB/share)
Net profit attributable to the
Company’s ordinary shareholders
Net profit attributable to the
Company’s ordinary shareholders 24.98% 7.759 7.759
before exceptional gains and losses
International Financial Reporting Standards (IFRS) and foreign accounting standards
(1) Net profit and equity under CAS and IFRS
□ Applicable ? Not applicable
(2) Net profit and equity under CAS and foreign accounting standards
□ Applicable ? Not applicable
(3) Accounting data differences under CAS and IFRS and foreign accounting standards. Where any
reconciliation is made to the data audited by an overseas independent auditor, the name of the overseas
independent auditor shall be provided.
None.
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