Luzhou Laojiao Co., Ltd.
【April 2026】
Section I Important Statements, Contents and Definitions
The Board of Directors as well as directors and senior management guarantee that the information
presented in this report is free of any false records, misleading statements or material omissions, and
shall individually and together be legally liable for truthfulness, accuracy and completeness of its
contents.
Liu Miao, responsible person for the Company, Xie Hong, responsible person for accounting work and
Song Ying, responsible person for the Company’s financial affairs (Accounting Supervisor) have
warranted that the financial statements in this report are true, accurate and complete.
Other directors attended the board meeting to deliberate this report by themselves except the
following directors.
Position of directors who
Name of directors who did not Reason for not attending
did not attend the meeting Name of deputies
attend the meeting in person the meeting in person
in person
Liu Miao Chairman of the board Work Lin Feng
Chen You’an Non-executive director Work Li Guowang
Affected by risks, uncertainties and assumptions, the forward-looking statements concerning
business objectives and future plans made in this report based on the subjective assumptions and
judgments of the future policies and economic conditions may be significantly different from the actual
results. Such statements shall not be considered as virtual promises of the Company to investors,
and the investors and relevant persons shall maintain adequate risk awareness and shall understand
the differences between plans, forecasts and commitments.
In this report, the potential risks in the operation of the Company have been disclosed. Investors are
kindly reminded to pay attention to possible investment risks.
The profit distribution plan approved by the board of directors: based on 1,471,941,963 shares, a
cash dividend of CNY 44.17 (tax inclusive) will be distributed for every 10 existing shares held, 0
shares of bonus shares (tax inclusive), and reserves would not be converted into share capital.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Contents
Documents Available for Reference
responsible person for accounting work and the responsible person for the Company’s financial affairs
(Accounting Supervisor);
CPAs; and
the reporting period.
Definitions
Term Reference Definition
Company, the Company, Luzhou
Refer to Luzhou Laojiao Co., Ltd.
Laojiao
Laojiao Group Refer to Luzhou Laojiao Group Co., Ltd.
XingLu Group Refer to Luzhou XingLu Investment Group Co., Ltd.
State-owned Assets Supervision and Administration
SASAC of Luzhou Refer to
Commission of Luzhou
Huaxi Securities Refer to Huaxi Securities Co., Ltd.
Luzhou Bank Refer to Luzhou Bank Co., Ltd.
Sales Company Refer to Luzhou Laojiao Sales Co., Ltd.
Baijiu Production Company Refer to Luzhou Laojiao Baijiu Production Co., Ltd.
Golden Rudder Refer to Sichuan Golden Rudder Investment Co., Ltd.
Section II Company Profile and Key Financial Results
Stock abbreviation Luzhou Laojiao Stock code 000568
Stock exchange where
the shares of the Shenzhen Stock Exchange
Company are listed
Name of the Company
泸州老窖股份有限公司
in Chinese
Abbr. of the Company
泸州老窖
name in Chinese
Name of the Company
Luzhou Laojiao Co., Ltd.
in English (if any)
Abbr. of the Company
LZLJ
name in English (if any)
Legal representative Liu Miao
Registered address Guojiao Square, Luzhou City, Sichuan Province, China
Postal code 646000
The Company’s registered address has changed from 46 Guihua Street,
Past changes of
Luzhou City, Sichuan Province, China to Guojiao Square, Luzhou City,
registered address
Sichuan Province, China in 2000.
Luzhou Laojiao Command Center, 71 Nanguang Road, Luzhou City, Sichuan
Business address
Province, China
Postal code 646000
Company website www.lzlj.com
E-mail lzlj@lzlj.com
Representative for securities
Secretary of the board
affairs
Name Li Yong Wang Chuan
Luzhou Laojiao Command Center, 71 Nanguang Road, Luzhou
Address
City, Sichuan Province, China
Tel. (0830)2398826 (0830)2398826
Fax (0830)2398864 (0830)2398864
E-mail dsb@lzlj.com dsb@lzlj.com
Stock exchange website where this
China Securities Journal, Securities Times, Securities Daily
Report is disclosed
Media and website where this Report
http://www. cninfo.com.cn
is disclosed
Place where the annual report of the
Board office
Company is kept
Unified social credit code 91510500204706718H
Changes in main business activities
since the Company was listed (if None
any)
Before September 2009, the controlling shareholder was the
Changes of controlling shareholders SASAC of Luzhou. After the equity transfer in September 2009,
of the Company (if any) the controlling shareholder was changed to Laojiao Group, but the
actual controller is still the SASAC of Luzhou.
Accounting firm engaged by the Company
Name of the accounting
ShineWing Certified Public Accountants
firm
Business address of the 8/F, Tower A, Fuhua Building, 8 Chaoyangmen North Street, Dongcheng
accounting firm District, Beijing, China
Name of accountants for
Wang Xiaodong, and Ouyang Lihua
writing signature
Sponsors engaged by the Company to continuously perform its supervisory function during the
reporting period
? Applicable ? N/A
Financial adviser engaged by the Company to continuously perform its supervisory function during
the reporting period.
? Applicable ? N/A
Whether the Company performed a retroactive adjustment to or restatement of accounting data.
? Yes ? No
Operating revenues
(CNY)
Net profits
attributable to
shareholders of the
Company (CNY)
Net profits
attributable to
shareholders of the
Company before
non-recurring gains
and losses (CNY)
Net cash flows from
operating activities 7,123,218,677.88 19,181,768,363.65 -62.86% 10,648,364,935.46
(CNY)
Basic earnings per
share (CNY/share)
Diluted earnings per
share (CNY/share)
Weighted average
ROE
At the end of 2025 At the end of 2024 YoY Change At the end of 2023
Total assets (CNY) 64,794,994,851.27 68,334,595,564.58 -5.18% 63,294,455,201.60
Net assets
attributable to
shareholders of the
Company (CNY)
Whether the lower of the net profits before and after non-recurring gains and losses was negative for
the last three accounting years, and the latest auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern
? Yes ? No
Whether the lowest of the audited total profits before tax, net profits, and net profits before non-
recurring gains and losses for the reporting period was negative
? Yes ? No
accounting standards
prepared under the international and China accounting standards
? Applicable ? N/A
No such differences for the reporting period.
prepared under the overseas and China accounting standards
? Applicable ? N/A
No such differences for the reporting period.
Unit: CNY
Q1 Q2 Q3 Q4
Operating revenues 9,352,165,445.50 7,101,567,459.15 6,673,726,997.48 2,603,550,745.19
Net profits
attributable to
shareholders of the
Company
Net profits
attributable to
shareholders of the
Company before
non-recurring gains
and losses
Net cash flows from
operating activities
Whether there are any material differences between the financial indicators above or their summations
and those which have been disclosed in quarterly or semi-annual reports
? Yes ? No
? Applicable ? N/A
Unit: CNY
Item 2025 2024 2023 Note
Profit or loss from
disposal of non-
current assets
(including the write- -534,054.68 1,058,750.22 44,694,238.37
off portion of the
impairment
provision)
Government grants
accounted for, in the
profit or loss for the
current period
(except for the
government grants
closely related to the
business of the
Company and given 50,033,249.88 41,225,885.28 51,950,003.11
in accordance with
defined criteria and
in compliance with
government policies,
and have a
continuing impact on
the Company's profit
or loss)
Gain or loss on fair-
value changes in
financial assets and
liabilities held by a
non-financial
enterprise, as well as
on disposal of
financial assets and
liabilities (exclusive
of the effective
portion of hedges
that is related to the
Company's normal
business operations)
Reversed portions of
impairment
allowances for
receivables which 40,000,000.00 422,217.14
are tested
individually for
impairment
Other non-operating
income and
expenditure except -30,596,009.53 -1,550,111.21 -35,875,412.66
above-mentioned
items
Less: Corporate
income tax
Minority
interests (after tax)
Total 70,675,148.38 73,471,806.52 96,001,893.94 --
Other items that meet the definition of non-recurring gain/loss:
? Applicable ? N/A
No such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to
the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.
? Applicable ? N/A
No such cases for the reporting period.
Section III Management Discussion and Analysis
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
Holding three food business licenses, the Company operates within the baijiu subdivision industry
which belongs to the liquor & wine, beverage and refined tea production industry with specialized
baijiu product design, production and sales as its main business model. The Company’s primary
products are baijiu series such as "National Cellar 1573" and "Luzhou Laojiao", and its main
comprehensive performance indicators rank high in the baijiu industry. For the reporting period,
operating revenue amounted to CNY 25.731 billion; and the net profit attributable to the shareholders
of the listed company reached CNY 10.831 billion.
For the Company's brand operations, please refer to "4.1 Overview" under “4. Analysis of main
business” in this section. The Company’s main products are classified as follows:
Main product types Classification criteria Representative brand name
Tax-inclusive sales price ≥ National Cellar 1573, Luzhou Laojiao Tequ, and
Mid- and high-end baijiu
CNY 150 per bottle Century-old Luzhou Laojiao Jiaoling Baijiu
Tax-inclusive sales price < Luzhou Laojiao Touqu, Luzhou Laojiao · Hey
Other baijiu
CNY 150 per bottle Guys, and Luzhou Laojiao Erqu
Main sales models:
Currently, the Company has two main sales models:
Company establishes cooperative relationships with the distributors by product lines and regions. The
Company directly supplies goods to the distributors, and then distributors sell them to consumers and
terminal outlets.
cooperative relationships with e-commerce platforms, self-media and webcasters, and sells the goods
to consumers through flagship stores, specialty stores, live streaming rooms on online platforms and
other network terminals.
Distribution models:
? Applicable □N/A
Unit: CNY
Gross YoY change of YoY change of
YoY change of
Operating revenue Cost of sales profit operating gross profit
cost of sales
margin revenue margin
By sales model
Traditional channel
operation model
Emerging channel
operation model
Increased
Number of Decreased
number YoY change of
distributors at number during
Region during the number of Reason for any significant change
the end of the the reporting
reporting distributors (%)
reporting period period
period
Domestic 1695 209 215 -0.35
Overseas 93 19 11 9.41
The Company's main settlement method for distributors is payment before delivery. The distribution
method is authorized distribution.
The Company had no accounts receivable from the top five distributors at the end of the period. For
details, please refer to Section III 4.2.8. "Main customers and suppliers".
Store sales terminals accounted for more than 10%
□ Applicable ? N/A
Online direct sales
? Applicable □N/A
For the sales of the Company's main products, please refer to Section III 4.2.1. "Breakdown of
operating revenues". The Company's complete series of products are sold online. Its main cooperation
platforms include JD.com and Tmall.
Sales price of main products contributing over 10% of the total operating revenues for the current
period changed by more than 30% from the previous reporting period
□ Applicable ? N/A
Purchase model and purchase content
Unit: CNY
Purchase model Purchase content Amount of main purchase content
Organic raw grains are purchased
through cooperative model and
supplied by organic raw grain bases;
Raw materials 3,936,169,970.79
other raw grains and packaging
materials are purchased through bid
invitation
Purchase based on the unified
pricing of the National Development
and Reform Commission and the Fuels and energies 195,468,129.63
price bureau, and purchase through
bid invitation
Purchase through bid invitation Low-value consumables 55,627,862.64
The purchase of raw materials from cooperatives or farmers accounted for more than 30% of the total
purchase amount
□ Applicable ? N/A
The price of main raw materials purchased externally changed by more than 30% year-on-year
□ Applicable ? N/A
Main production model:
The Company's main production model is self-production.
Commissioned processing and production
□ Applicable ? N/A
Main breakdown items of cost of sales
For details, please refer to Section III 4.2.5. “Breakdown of cost of sales”.
Production volume and inventory
Product Production Sales volume Inventory YoY change YoY change YoY change Description of major
classification volume (ton) (ton) of production of sales of inventory changes
(ton) volume volume
(%) (%)
Mid- and
high-end 46,076.64 37,304.70 41,774.53 16.82% -13.23% 26.58%
baijiu
The inventory
increased by 39.91%
year on year, mainly
Other baijiu 52,917.48 48,784.62 14,488.74 -19.12% -19.72% 39.91% due to the increased
stock of Touqu and
Erqu products for the
year-end period
Unit: Ton
Finished baijiu Semi-finished baijiu (including base baijiu)
Unit: Ton
Main products Design capacity Actual capacity Capacity in progress
Baijiu 170,000 170,000 80,000
In 2025, the baijiu industry entered a new round of policy adjustment, consumption structure
transformation and intensifying competition. A host of contradictions have become prominent,
including expanding production capacity amid slowing demand, weakening consumption momentum
alongside falling prices, a shrinking number of distributors paired with rising inventory levels, and
price conflicts between traditional sales channels and e-commerce platforms. The industry is likely to
remain under pressure for a period of time. Nevertheless, opportunities will still outweigh challenges
for the baijiu industry in the medium to long term. High-quality development remains the overarching
theme of China’s economy, and the fundamentals sustaining long-term economic prosperity remain
unchanged. The current industry adjustment will allow outstanding enterprises with genuine strengths
in brand presence, channel layout, innovation capability and operational management to stand out.
A. Geographical advantage
Luzhou City, where the Company is located, sits in the transitional area between the southern rim of the
Sichuan Basin and the Yunnan-Guizhou Plateau, featuring a warmer and more humid sub-tropical
climate compared to other areas at the same latitude, with a temperature above 0℃ throughout the
year. The unique climate and soil are agreeable to grow grains for baijiu production. The glutinous red
sorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.
The cellars in which the Company produces its baijiu are made of the local loessal clay characterized
by strong viscosity, rich minerals and excellent moisture retention. In addition, the abundant and quality
water in the region creates a unique geographical advantage for the production of the Company’s baijiu.
B. Advantage of cellars and the baijiu production technique
Aged cellars are the most essential condition for a strong aromatic baijiu maker to produce good quality
baijiu. The Cellars of National Treasure 1573, founded in 1573, was granted by the State Council as the
first Cultural Relic of National Importance in the industry under the Protection of the State in December
with its 16 ancient baijiu production workshops and three natural cellar holes, were all selected as the
fourth batch of Cultural Relics of National Importance under the Protection of the State in 2013. They
are unique resources that cannot be replicated. In both 2006 and 2012, Luzhou Laojiao Daqu Cellars
were twice selected into the preliminary list of China for World Heritage. In November 2018, Luzhou
Laojiao Cellars and Baijiu Workshops were selected into China’s Industrial Heritage List. The time-
honored Traditional Baijiu Production Technique of Luzhou Laojiao is a 24-generation inheritance and a
classic production technique for strong aromatic baijiu. This technique was selected as the first batch of
National Intangible Cultural Heritage in May 2006. The Cellars of National Treasure 1573 and the
Traditional Baijiu Production Technique of Luzhou Laojiao together provide the most essential basis
and assurance for the quality of the product series of National Cellar 1573 and Luzhou Laojiao.
Additionally, Huangyi Baijiu Production Eco-Park has moved into full production in late 2020. Upholding
the cultural connotations of “inheritance of ancient ways, pure-grain based production, traditional
techniques, and intelligent technologies”, the Company carries out production technique renovation
featuring automatic, intelligent and information technology-based transformation. As such, it has
established a baijiu production eco-park comprising distillation workshops, leaven making workshops,
and base baijiu storage cellars, along with energy and sewage treatment facilities. This baijiu
production eco-park brings with it new production capacities of 100,000 tons of quality pure-grain solid
baijiu and 100,000 tons of leaven in addition to a new storage capacity of 380,000 tons of baijiu per
year, marking a substantial increase in the Company’s production capacity.
C. Brand advantage
Brand is a key business resource for baijiu producers. The Company’s reputation is greatly built on its
superiority in brand. National Cellar 1573, which is of a connoisseurship level, is a world-famous high-
end brand. Luzhou Laojiao Tequ, a classic brand for strong aromatic baijiu, was selected in 1952 by the
first national tasting competition judges as one of the four most famous baijiu brands in China. It is the
only strong aromatic baijiu brand that won the title of “National Famous Baijiu” for five consecutive times,
as well as the pioneer with regard to the “Tequ” variety of baijiu. In recent years, the Company has
successfully put in place a brand system of “dual brands, three product series, and major single
products” with great clarity and focus. The programs carried out to promote the brand of National Cellar
improvement in brand influence. The Company’s baijiu is increasingly known by consumers as a
national brand of strong aromatic baijiu and of authentic flavor.
D. Quality and R&D advantage
The Company is committed to producing high-quality baijiu, advocating a healthy lifestyle and “making
the quality visible”. The first “Organic Sorghum Planting Base” was established and the six-factor
management system (including organic, quality, safety, environment, measurement and energy) was
built and improved. The research platforms are established, including National Engineering Research
Center of Solid-State Distillation, National Baijiu Test Center, National Postdoctoral Workstation, etc.,
which all support the innovation and upgrading of products with their strong technical force. In recent
years, the Company has put in a lot of efforts in researching Tequ production, informatization and
intelligent transformation of production and packaging. Relying on the technological innovation
platforms such as the National Industrial Design Center, and continuously deepening the cooperation
with universities and scientific research institutes including the Chinese Academy of Sciences and the
Jiangnan University, the Company has undertaken dozens of national- or provincial-level projects and
has been granted hundreds of invention or utility model patents. And remarkable results have been
achieved with respect to improvement of the quality of base Baijiu, as well as production efficiency
improvement.
E. Talent advantage
The Company has 1 inheritor of national intangible cultural heritage, 4 masters of Chinese baijiu
distillation, 2 masters of Chinese baijiu, 2 Chinese liquor connoisseurs, 1 master of Chinese baijiu
technique, 18 senior professor engineers, 8 experts who receive special allowances from the State
Council, 4 national technicians, 3 national model workers, 5 national Labor Day Medal winners, 4
academic and technologic leaders of Sichuan province, 1 expert with outstanding contribution in
Sichuan province, 1 technology leader of Tianfu, 1 excellent engineer of Tianfu, 1 skills leader of Tianfu,
and technology talents of Tianfu, 4 technicians of Sichuan province, 7 model workers of Sichuan
province, as well as hundreds of highly skilled personnel including national baijiu judges, as well as
master technicians, senior technicians and technicians in baijiu production and tasting. The
comprehensive and professional personnel system assures the sound development of the Company.
final year of the Company’s 14th Five-Year Plan strategy. Closely centering on the annual development
theme of “Building Momentum for Breakthroughs, Advancing Stable Growth through Intensive
Cultivation; Seizing Opportunities to Drive Development through Reform and Innovation”, the Company
continued to strengthen its endogenous growth drivers and vigorously build long-term momentum to
navigate cycles and secure future success. Over the past year, the Company achieved the following
key results:
A. A steadily strengthened market foundation
The Company remained market-oriented and consumer-centric and advanced its marketing initiatives
on all fronts. Its brand strategy was effectively implemented. The Company firmly pursued its
strategy of “dual brands, three product series, and major single products”, with brand recognition and
brand value continuing to increase. National Cellar 1573 maintained its position in the high-end
segment, while the Luzhou Laojiao series achieved comprehensive coverage across the sub-
premium, mid-range, and mass-market price bands. Health care baijiu, innovative baijiu, new retail,
and overseas markets were cultivated with precision. The Company made further breakthroughs
in its nationwide market presence. Strategic initiatives such as the “Hundred Cities Program”, the
“East China Strategy”, and the “Double Hundred Project” were implemented in depth, with a
continued focus on breakthroughs in core regions and the expansion of the sales network into lower-
tier markets. As a result, channel control and market penetration were significantly enhanced. Digital
and intelligent marketing delivered remarkable results. Supported by the “Five Codes in One”
system and multidimensional scan-code data, the Company deeply advanced full-chain digital
management and refined operations, achieving a genuine transformation toward consumer-centric
digital and intelligent operations.
B. Brand leadership driving value growth
The Company firmly upheld the philosophy that “a brand of ten years depends on marketing, a brand
of one hundred years depends on quality, and a brand of one thousand years depends on culture” to
promote the continuous recovery of the value of Luzhou Laojiao as a famous baijiu brand. The
Company further enriched its cultural foundations. The Luzhou Laojiao Archive Documents 1771-
World Program, becoming the first documentary heritage project in the baijiu industry. The Company
also successfully held themed activities such as the “110th Anniversary of Chinese Strong Aromatic
Baijiu Going Global” while continuing to refine its corporate culture expression system. Brand
activities were vibrant and diverse. The Company continued to develop distinctive IP events such
as the “Baijiu Seal-off Ceremony”, the “International Festival of Poetry & Baijiu”, and the “Cellar
Owner Festival” while engaging with major sporting events including the ITTF World Cup, the
Australian Open, and the China Open. These initiatives further enhanced brand vitality. The
Company also advanced the integrated development of baijiu culture and tourism across
multiple scenarios. Cultural tourism projects such as the China Baijiu Museum and the new
Chunyang Cave Scenario continued to progress steadily. The Luzhou Laojiao Scenic Area was
selected as a National Tourism Technology Demonstration Park and was recognized as an
outstanding case in the 2025 Blue Book on the Integrated Development of Intangible Cultural
Heritage and Tourism issued by the China Intangible Cultural Heritage Safeguarding Association.
C. Craftsmanship supporting intelligent and digital transformation
The Company remained committed to craftsmanship and quality and continued to build a full-chain
quality assurance system covering raw grain, distillation, production, and the supply chain, earning
market trust through exceptional quality. Quality control continued to be refined. Guided by the
philosophy of “making the quality visible”, the Company improved its grid-based Chief Quality Officer
system and established a full-industry-chain, fully traceable, and full-lifecycle quality and safety
management system from field to table. The Company has passed organic certification for 18
consecutive years and established eight organic sorghum bases. Intelligent production helped
reduce costs and improve efficiency. The Huangyi Baijiu Production Eco-Park entered full
operation. Through the application of artificial intelligence, big data, and other technologies, the park
achieved significant improvements in baijiu yield and the acceptance rate of premium-grade baijiu
while continuously reducing water use and carbon emissions. The equipment management system,
baijiu production and leaven making MES systems were stably launched and put into operation, and
the levels of digital intelligence, informatization, and automated production in baijiu production
continued to rise steadily.
D. A fully formed innovation ecosystem
The Company actively developed an “innovative Luzhou Laojiao”, embedding innovative thinking
across all processes of corporate operations. A strong atmosphere of innovation took shape. The
successful hosting of the first “Chinese-Style Mixology Competition” brought the Company’s
innovative drinking model to nationwide attention. New consumption scenarios such as camping,
skiing, and music festivals were successfully developed, expanding the boundaries of baijiu
consumption in all dimensions. Scientific and technological innovation produced strong results.
The Company established the industry’s first science and technology museum and worked with
universities and research institutes to conduct research and application in key common technologies
and frontier technologies, forming a thriving integrated ecosystem of “industry, academia, research,
and application”. Cross-sector integration also generated strong momentum. The Company
actively launched cross-sector brand collaborations, engaging with fields such as sports, art, and
fashion, and it introduced derivative products including co-branded products with China’s national
teams. It also explored innovative cross-industry cooperation and established strategic partnerships
with leading enterprises, further deepening market penetration.
E. Multi-dimensional strengthening of headquarters capabilities
The Company comprehensively advanced scientific, standardized, and information-based
development, building a lean, efficient, strongly controlled, and value-creating headquarters. Orderly
coordination was achieved across the headquarters ecosystem. The marketing, production,
supply chain, and management systems worked together to create strong synergies, providing solid
organizational support for the Company to remain competitive in a complex environment. Guided by
the “one framework, five transformations, and five connected flows” approach, headquarters systems
strengthened cross-departmental process alignment and information sharing. Corporate
governance remained well-regulated and orderly. The Company received the highest A rating in
the Shenzhen Stock Exchange’s information disclosure assessment for the sixth consecutive year
and won the “Best Practice Case of the Board of Directors of Listed Companies” award from the
China Association for Public Companies. The Company advanced team renewal in both scale and
quality. Applying systematic thinking, the Company reshaped its talent ecosystem and empowered
its workforce through both institutional innovation and digital transformation, building a talent
ecosystem in which the leadership team is aligned, middle management is united, and employees are
fully engaged.
F. Harmonious, inclusive, and green development
Upholding the corporate philosophy of “Baijiu for the World, a Shared Future”, the Company
continued to shape itself as a responsible enterprise that dares to take responsibility and acts with
purpose. The Company actively fulfilled its social responsibilities. It implemented projects
covering rural infrastructure construction and industrial assistance to consolidate the achievements of
rural revitalization. It also carried out public welfare activities such as the “Little Schoolbag, Big Love”
initiative, benefiting nearly 10,000 teachers and students. The Company advanced green, safe, and
sustainable development. Guided by the safety philosophy of “Life First, Happiness for All”, the
Company achieved “zero workplace safety accidents”. It continued to promote low-carbon and clean
production, achieving significant cost reduction and efficiency gains in water, heat, and waste
management. The Company remained committed to jointly creating and sharing the benefits of
development. It formulated the 2024-2026 Shareholder Dividend Plan. Cumulative dividends since
its listing have reached CNY 60.56 billion, representing a high dividend payout ratio of 63.50% (after
the implementation of the 2025 final dividend distribution). The Company’s ESG ratings continued to
improve, and it was included in the “2024 China Alcoholic Drinks Industry ESG List”.
Unit: CNY
As % of As % of YoY Change
Amount operating Amount operating
revenues revenues
Total 25,731,010,647.32 100% 31,196,248,208.33 100% -17.52%
By business segment
Baijiu 25,605,542,053.21 99.51% 31,052,653,337.55 99.54% -17.54%
Other revenues 125,468,594.11 0.49% 143,594,870.78 0.46% -12.62%
By product
Mid- and high-
end baijiu
Other baijiu 2,637,587,357.62 10.25% 3,467,333,632.93 11.11% -23.93%
Other revenues 125,468,594.11 0.49% 143,594,870.78 0.46% -12.62%
By geographical segment
Domestic 25,534,165,136.80 99.23% 31,010,093,741.29 99.40% -17.66%
Overseas 196,845,510.52 0.77% 186,154,467.04 0.60% 5.74%
By sales model
Traditional 24,220,039,994.92 94.13% 29,573,326,673.25 94.80% -18.10%
channel
operation model
Emerging
channel 1,385,502,058.29 5.38% 1,479,326,664.30 4.74% -6.34%
operation model
Other revenues 125,468,594.11 0.49% 143,594,870.78 0.46% -12.62%
contributing over 10% of the operating revenues or profits
? Applicable ? N/A
Unit: CNY
YoY
Gross YoY change YoY change
change of
Operating revenue Cost of sales profit of cost of of gross
operating
margin sales profit margin
revenue
By business segment
Baijiu 25,605,542,053.21 3,397,409,112.74 86.73% -17.54% -11.63% -0.89%
By product
Mid- and high-
end baijiu
Other baijiu 2,637,587,357.62 1,317,009,724.41 50.07% -23.93% -17.50% -3.89%
By geographical segment
Domestic 25,534,165,136.80 3,412,604,641.73 86.64% -17.66% -11.65% -0.90%
By sales model
Traditional
channel
operation
model
Under the circumstances that the statistical standards for the Company’s main business data were
adjusted in the reporting period, the Company’s main business data in the current year is calculated
based on adjusted statistical standards at the end of the reporting period
? Applicable ? N/A
services
? Yes ? No
By business
Item Unit 2025 2024 YoY Change
segment
Sales volume Ton 86,089.32 103,761.06 -17.03%
Production
Baijiu Ton 98,994.12 104,868.66 -5.60%
volume
Inventory Ton 56,263.27 43,358.47 29.76%
Reason for any over 30% YoY movements in the data above
? Applicable ? N/A
? Applicable ? N/A
By business segment
Unit: CNY
By business As % of As % of
Item YoY Change
segment Amount cost of Amount cost of
sales sales
Baijiu Raw materials 2,667,985,376.23 78.53% 3,088,023,001.56 80.32% -13.60%
Baijiu Labor costs 278,927,288.16 8.21% 292,097,887.79 7.60% -4.51%
Manufacturing
Baijiu 450,496,448.35 13.26% 464,297,041.59 12.08% -2.97%
overhead
Note:
None.
reporting period
? Yes ? No
In August 2025, the Company invested in and established a wholly-owned subsidiary, namely Luzhou
Laojiao Cultural Tourism Development Co., Ltd.
? Applicable ? N/A
Sales to main customers of the Company
Total sales to top five customers（CNY） 19,222,822,763.18
Total sales to top five customers as % of the total
sales
Total sales to related parties among top five
customers as % of the total sales
Information on top five customers
As % of the total sales
No. Customer Sales amount (CNY)
for the year
Total -- 19,222,822,763.18 74.71%
Other information on main customers
? Applicable ? N/A
Main suppliers of the Company
Total purchases from top five suppliers（CNY） 1,454,050,675.99
Total purchases from top five suppliers as % of
the total purchases
Total purchases from related parties among top
five suppliers as % of the total purchases
Information on top five suppliers
As % of the total
No. Supplier Purchases (CNY)
purchases for the year
Total -- 1,454,050,675.99 34.73%
Other information on main suppliers
? Applicable ? N/A
Whether the Company’s trading revenue accounted for more than 10% of its total operating revenue
in the reporting period
? Applicable ? N/A
Unit: CNY
Reason for any
significant change
Selling and
distribution expenses
General and
administrative 962,421,600.80 1,100,779,964.56 -12.57%
expenses
Finance expenses -511,995,793.73 -488,521,059.32
R&D expenses 215,855,671.81 260,975,311.10 -17.29%
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
Unit: CNY
Selling and distribution
expenses
Advertising expenses 1,275,745,184.28 1,548,153,847.96 -17.60%
Sales promotion
expenses
Warehousing and
logistics expenses
Labor costs 323,502,036.15 387,418,851.76 -16.50%
Mainly due to the decreased
Other 216,038,397.22 330,499,713.77 -34.63%
conference and other expenses
Unit: CNY
Advertising Expenses
Online advertising (exclusive of TV advertising) 191,763,884.02
Offline advertising 201,775,642.12
TV advertising 430,685,900.55
Other (inclusive of branding ideas, exhibitions & showcases, advertising materials, activity
planning, etc.)
? Applicable ? N/A
Expected impact on
Major R&D projects Purpose Progress Specific objectives
the Company
Focusing on To develop an
The project aims to distillation waste intelligent equipment
realize the energy- (discarded grains) as system with
and resource-based the research subject, packaged technology
utilization of the project adopted for the resource- and Realize a large-scale
Thermochemical distillation waste with technologies such as energy-based resource- and
Energy- and thermochemical high-efficiency drying utilization of energy-based
Resource-based technology, and and thermochemical distillation waste, utilization of
Coupled Utilization develop a complete conversion of successfully build a distillation waste and
Technology of set of intelligent biomass to thermally demonstration base achieve both
Distillation Waste equipment systems decompose the for the project ecological and
for the resource- and discarded grains into industrialization, and economic benefits.
energy-based pyrolysis gas and achieve resource-
utilization of biochar. The and energy-based
distillation waste. pyrolysis gas is utilization of
reused as energy in distillation waste to
the distilling process, ensure the low-
while the biochar carbon, green
serves as an organic development of the
fertilizer for sorghum Chinese baijiu
cultivation. The industry.
project has
completed the
construction of a
energy- and
resource-based
coupled utilization
project and a
planting
demonstration base.
It has achieved a
resource utilization
rate of over 90% for
distillation waste and
a gas energy
recycling rate of over
technological gap in
thermochemical
treatment of
distillation waste
(discarded grains)
and promoting
breakthroughs in key
general technologies
for the efficient
conversion and safe
disposal of organic
solid waste under the
solid waste resource
utilization initiative.
The project is to The Company The Company has
implement national continuously strengthened the
standards for improved the close integration of
intellectual property intellectual property intellectual property
management, and management creation and
The Company has
achieve efficient system, and obtained protection with the
established a sound
management of the certification in the whole process of
intellectual property
Company in the Enterprise technological
management
creation, application intellectual property innovation, enhanced
High-value Patent system,
and protection of compliance the capability of the
Incubation Center strengthened the
intellectual property. management enterprise to create
Project of Luzhou creation and
An all-round layout of system— intellectual property
Laojiao protection of
intellectual property Requirements (GB/T and prevent potential
intellectual property,
is made around the 29490-2023) as well intellectual property
and enhanced the
core key as graded evaluation risks. The Company
core competitiveness
technologies of the under the has strengthened the
of the enterprise.
industrial chain to international analysis and
promote the creation standard Innovation application of patent
of high-quality management — information, laid out
patents and build a Tools and methods and explored
patent pool for core for intellectual intellectual property
technologies. property around core key
management — technologies, and
Guidance (ISO formed a series of
key distillation with technical,
technologies, the economic, and legal
Company fully value.
utilized patent
analysis tools to
conduct competitive
situation analysis
and layout analysis.
Patent risk warning
measures were
reinforced through
regular monitoring
and analysis of key
technical outcomes
in relevant branches.
The Company also
organized high-value
patent cultivation
training and mining
workshops,
comprehensively
enhancing R&D
personnel’s
awareness of
innovation, drafting
competence, and
protection
capabilities.
The project aims to The Company
carry out integrated carried out the
research on major breeding of new
new green and high- sorghum varieties
Through
efficiency varieties dedicated to baijiu
industrialization
dedicated to production and
demonstration, the
distillation and successfully The project is
project aims to fully
supporting developed one new expected to help
leverage the
technologies. It sorghum variety for ensure a high-quality
advantages of
seeks to establish a baijiu production. It and stable supply of
Selection and combining the
comprehensive established two high- sorghum for baijiu
Breeding of New varieties developed
integrated innovation quality sorghum seed production at the
Varieties for Baijiu under the project
demonstration base breeding bases in source, laying a
Production and with supporting
for new varieties and Hainan and Luzhou foundation for
Integrated technologies and
supporting and built one Luzhou Laojiao’s
Demonstration of promote the
technologies, comprehensive long-term quality
New Technologies development of a
develop core integrated innovation upgrading, cost
modern agricultural
demonstration plots demonstration base control, and
industry system that
jointly involving baijiu for major new coordinated industrial
integrates “variety
companies, seed sorghum varieties development.
breeding, seed
companies, research and technologies
multiplication, and
institutions, and new dedicated to baijiu
promotion”.
types of business production. Average
entities, and form a yield per unit
technology increased by 11.6%,
transformation and new sorghum
mechanism linking varieties for baijiu
new varieties, production were
supporting promoted for
technologies, cultivation on 72,000
demonstration, and mu of farmland in
promotion. Luzhou.
In research areas
such as distillation
process
intelligentization,
fermentation
mechanisms and
microbiology, as well
as flavor and health,
Sichuan Innovation
Center for Solid-state
Distillation
Technologies
continuously
advanced innovation,
R&D, and application
of key common
Luzhou Laojiao took
technologies and To gather innovative
the lead to jointly
cutting-edge leading resources in solid-
build the Sichuan
technologies across state distillation,
Innovation Center for
the industry chain. create an innovation
Solid-state
These efforts alliance in the solid- Successfully build a
Distillation
supported solid-state state distillation technological
Technologies with
Establishment of distillation technology sector, make innovation platform,
several universities,
Sichuan Innovation research, industry breakthroughs in thereby improving
institutes and other
Center for Solid-state exchanges, result core key the Company's
enterprises, aiming
Distillation transformation and technologies in the scientific and
to overcome a batch
Technologies talent training. It solid-state distillation technological
of core technological
organized and sector, and form a innovation
challenges in solid-
convened the 2025 science and capabilities and level.
state distillation and
Annual Work technology
facilitate the
Meeting of Sichuan innovation center
development of the
Innovation Center for with national
solid-state distillation
Solid-state influence.
sector.
Distillation
Technologies, to
discuss the industrial
technological
orientation and
development paths.
Focusing on key
common technical
challenges of the
industry, it released
the 2025 Application
Guidelines for
Alliance Open
Projects, with 12 new
projects approved
and initiated.
A Study on the By applying modern Luzhou Laojiao To build an intelligent Level up the
Optimization of Key technologies such as carried out industry- demonstration Company's intelligent
Intelligent Equipment intelligent sensing, university-research production line. production and
and the System image recognition, cooperation with promote the
Control for Baijiu spectral technology universities and transformation and
Production and bio-chips, the research institutes in upgrading of the
project aims to the field of intelligent traditional baijiu
develop core production, deeply production industry.
technologies for each analyzed traditional
link of production, production processes
including and fermentation
fermentation, principles,
vinasse-based innovatively applied
ingredient making, simulation
distillation of grains technology,
in vats and baijiu automation
selection, and build technology, online
intelligent production testing, industrial
lines with robots, big data
independent analysis, intelligent
optimization, decision-making and
production decision- other technologies to
making and the production
execution capabilities engineering
to comprehensively renovation project of
upgrade the solid- Luzhou Laojiao. The
state distillation Company has
technologies in the mastered core
baijiu industry. technologies such as
automated robot-
based steam
detection and vat
filling, graded baijiu
selection by quantity
and quality, and
intelligent cellar
management. It has
also independently
developed
supporting
equipment and
system integration
for baijiu distillation
processes including
sorghum
pretreatment,
proportioning and
material mixing,
created intelligent
decision-making
modules covering the
entire distillation
workflow, and
realized precise
control and
optimization of the
production process.
Construction of the The project aims to Luzhou Laojiao To establish a baijiu Master the core
Baijiu Production carry out collection of carried out industry- production microbial resources of baijiu
Microbial Resources baijiu production university-research strain bank of a production
and Data Platform microbial resources, cooperation with certain scale, which microorganisms and
rapid isolation, universities, and can achieve long- enhance the
authentication, based on the term safe Company's ability to
review and transfer analysis of the preservation of protect and utilize
of microbial metabolic strains and is baijiu production
resources in the mechanisms of the supplemented by microbial resources.
production process microbial flora in the special information
of baijiu and mud of the 400-year- technology to
development of old national treasure manage strain
excellent strains for fermentation pit, information.
industrial use, completed diversity
establish a baijiu analysis on 1,394
production microbial baijiu samples,
strain library and preserved 3,300
related enzymology microbial strains, and
library, and promote obtained flavor
the protection, compound data for
sharing and 315 strains and
sustainable utilization whole-genome
of baijiu production sequencing data for
microbial resources. 310 strains. The
Company screened
and obtained a
series of new
species and key
functional
microorganisms such
as the “Laojiao
Lactobacillus”,
“Laojiao
Syntrophococcus”,
and “Laojiao
Clostridium”, and
filed 24 applications
for invention patents
related to functional
strains, of which 15
have been granted.
Information about R&D personnel
Number of R&D
personnel
R&D personnel as % of
total employees
Educational backgrounds of R&D personnel
Bachelor’s degree 237 276 -14.13%
Master’s degree 193 149 29.53%
Doctoral degree
(including postdoctoral 50 50 0.00%
workstations)
Age structure of R&D personnel
Below 30 194 188 3.19%
Information about R&D investments
R&D investments
(CNY)
R&D investments as %
of operating revenues
Capitalized R&D
investments (CNY)
Capitalized R&D
investments as % of 1.95% 0.00% 1.95%
total R&D investments
Reason for any significant change in the composition of R&D personnel and the impact
? Applicable ? N/A
Reason for any significant YoY change in the percentage of the R&D investments in the operating
revenues
? Applicable ? N/A
Reason for any sharp variation in the percentage of the capitalized R&D investments and rationale
? Applicable ? N/A
Unit: CNY
Item 2025 2024 YoY Change
Subtotal of cash
inflows from operating 28,520,870,603.68 41,014,285,259.97 -30.46%
activities
Subtotal of cash
outflows from operating 21,397,651,925.80 21,832,516,896.32 -1.99%
activities
Net cash flows from
operating activities
Subtotal of cash
inflows from investing 2,296,764,566.58 2,277,579,273.71 0.84%
activities
Subtotal of cash
outflows from investing 4,032,762,969.97 3,660,085,206.26 10.18%
activities
Net cash flows from
-1,735,998,403.39 -1,382,505,932.55
investing activities
Subtotal of cash 408,166,310.93 2,000,079,496.11 -79.59%
inflows from financing
activities
Subtotal of cash
outflows from financing 12,228,285,214.29 12,328,932,533.79 -0.82%
activities
Net cash flows from
-11,820,118,903.36 -10,328,853,037.68
financing activities
Net increase in cash
-6,442,574,052.64 7,474,638,736.60 -186.19%
and cash equivalents
Explanation of why the data above varied significantly
? Applicable ? N/A
Net cash flows from operating activities decreased by 62.86%, mainly due to the decreased cash
received from sales of goods and discounted notes in the current period.
Explanation of main reasons leading to the material difference between net cash flows from operating
activities during the reporting period and net profit for the year
? Applicable ? N/A
This is mainly due to the advance collection of part of current-year revenue in the prior year as a
result of the accrual basis of accounting and the increased inventory in the current year.
? Applicable ? N/A
Unit: CNY
At the end of 2025 At the beginning of 2025 Reason for any
Change in
As % of total As % of total significant
Amount Amount percentage
assets assets change
Cash and cash
equivalents
Accounts
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 15,396,031,707.35 23.76% 13,392,794,475.96 19.60% 4.16%
Investment
property
Long-term equity
investments
Fixed assets 8,523,891,404.03 13.16% 9,131,776,915.51 13.36% -0.20%
Construction in
progress
Right-of-use
assets
Short-term loans 0.00% 0.00% 0.00%
Contract
liabilities
Mainly due to the
repayment of
loans, and the
reclassification of
Long-term loans 2,627,166,310.93 4.05% 6,279,900,000.00 9.19% -5.14% loans due within
one year as non-
current liabilities
due within one
year
Lease liabilities 15,693,190.61 0.02% 24,528,519.13 0.04% -0.02%
Whether overseas assets account for a larger proportion in total assets
? Applicable ? N/A
? Applicable □ N/A
Unit: CNY
Changes in
Changes in
cumulative
Opening fair value Provision for Amount of Amount of Other Closing
Item fair value
balance through impairment purchase sale changes balance
recorded
profit or loss
into equity
Financial asset
trading
financial
assets 1,694,282,2 7,777,112.4 2,100,000,0 2,217,287,4 1,584,771,9
(exclusive of 95.97 9 00.00 49.09 59.37
derivative
financial
assets)
ts in other 407,194,706 219,220,333 475,499,237
equity .55 .62 .90
instruments
receivable 335,452,481
financing .82
Subtotal of -
financial 335,452,481
assets .82
Total 335,452,481
.82
Financial
liability
Contents of other changes
None
Whether measurement attribution of main assets changes significantly in this year
? Yes ? No
Unit: CNY
Item Closing balance Reason
Cash and cash
equivalents
Cash and cash Under management in accordance with the management
equivalents measures for the use of special project funds
Cash and cash
equivalents
Cash and cash
equivalents
Cash and cash
equivalents
Cash and cash
equivalents
Total 416,472,736.55
? Applicable ? N/A
Investment made in the Investment made in the prior
YoY change
reporting period (CNY) year (CNY)
? Applicable ? N/A
? Applicable □ N/A
Unit: CNY
Accum
Accum Reason
ulated
ulated s for
actual
Whethe Amount actual not
Industr input
r it is a of input income meetin Date of Disclos
Investm y of the amount Project Project
fixed in the Capital by the g the disclos ure
Item ent investm by the progres ed
asset reportin source end of schedul ure (if index
form ent end of s income
investm g the e and any) (if any)
project the
ent period reportin project
reportin
g ed
g
period income
period
Announ
cement
on the
Implem
Luzhou entatio
Laojiao n of
Technic Luzhou
al Laojiao
Renova Technic
tion al
Project 996,05 2,073,4 Self- Renova
Self- July 13,
of Yes Baijiu 9,128.1 57,683. financin 56.00% 0.00 0.00 N/A tion
built 2022
Intellige 8 07 g Project
nt of
Baijiu Intellige
Product nt
ion Baijiu
(Phase Product
I) ion
(Phase
I) by
Subsidi
ary
Total -- -- -- 9,128.1 57,683. -- -- 0.00 0.00 -- -- --
? Applicable □ N/A
Unit: CNY
Categ Abbre Initial Accou Beginn Chang Chang Amou Amou Profit Closin Accou
Stock Capital
ory of viation invest nting ing es in es in nt of nt of and g book nting
code source
securit of ment measu book fair the purcha sale loss balanc item
ies securit cost rement balanc value cumul se during e
ies model e recogn ative the
ized in fair reporti
profit value ng
or loss record period
ed into
equity
Invest
Dome ments
Fair
stic 12,719 219,64 229,29 242,01 in
and GTHT ,156.7 0,994. 8,131. 7,288. other
foreign 6 03 57 33 equity
rement
stock instru
ments
Invest
Dome ments
Fair
stic 15,870 27,145 28,175 in
and SNC ,083.2 ,261.0 ,261.0 other
foreign 4 9 9 equity
rement
stock instru
ments
Invest
Dome ments
Fair
stic 51,120 78,356 33,927 85,047 in
LZBA value 5,207, Own
and 01983 ,000.0 ,318.9 ,773.2 ,773.2 other
NK measu 040.00 fund
foreign 0 9 7 7 equity
rement
stock instru
ments
Invest
Dome ments
Fair -
stic CTG 542,28 60,069 87,001 in
value 64,197 1,282, Own
and 01880 Duty- 5,380. ,399.6 ,004.5 other
measu ,690.7 673.77 fund
foreign Free 80 4 6 equity
rement 2
stock instru
ments
Total 4,537. -- 6,795. 0.00 3,475. 0.00 0.00 ,364.6 1,327. -- --
? Applicable ? N/A
No such cases in the reporting period
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
? Applicable ? N/A
Main subsidiaries and joint companies with an over 10% influence on the Company’s net profit
Unit: CNY
Company Company Business Registere Total Operating Operating
Net assets Net profit
name type scope d capital assets Revenue profit
Sales of
baijiu
series
Luzhou
such as
Laojiao 100,000,0 6,874,023, 2,465,752, 24,822,03 9,393,409, 6,927,511,
Subsidiary “National
Sales Co., 00.00 782.55 852.94 7,200.58 955.36 027.75
Cellar
Ltd.
“Luzhou
Laojiao”
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable ? N/A
Notes for major holding companies and joint stock companies
None
? Applicable ? N/A
A. According to data from the National Bureau of Statistics, in 2025, baijiu enterprises above the
designated size nationwide produced a total of 3.5490 million kiloliters of baijiu, representing a year-
on-year decrease of 12.10%. In recent years, the output of baijiu enterprises above the designated
size nationwide has continued to decline, and the baijiu industry is shifting from scale expansion to
deeper value creation.
B. Consumption logic is being reshaped. Against the macro backdrop of a transition between old and
new growth drivers in economic development, the driving paradigm and value anchors of baijiu
consumption are being redefined. Consumer demand is shifting from satisfying quantity-based needs
to pursuing quality, and the industry’s core focus is moving from “company-defined value” to
“consumer-defined value”. Going forward, the baijiu industry will place greater emphasis on both the
hard strength of product quality and the soft strength of services.
C. The consumption structure is changing. With the rise of younger consumer groups, the
consumption structure of the baijiu industry is undergoing subtle changes. Specifically, business and
managerial consumers remain the mainstay of baijiu consumption, while “youth-oriented consumption”
is gradually becoming a development trend in the baijiu industry. “Lower alcohol content, youth-
oriented consumption, and scenario-based consumption” will become important themes for baijiu
enterprises as they explore future development.
A. In October 2025, the Ministry of Industry and Information Technology included baijiu production in
the category of “time-honored classic industries” for the first time, placing it alongside industries such
as silk, tea, and porcelain. This has injected strong momentum into the industry. In the long run, fine
baijiu will always be an important part of a better life, and baijiu culture is also an important
component of Chinese civilization. With further policy support and resource allocation in the future,
the baijiu industry still has broad room for development.
B. In recent years, the digital transformation of the baijiu industry has moved from the initial stage of
building foundational systems into a critical phase of deep integration across the entire business
chain. As cutting-edge technologies such as artificial intelligence, blockchain, and the Internet of
Things are increasingly applied in practical scenarios within the baijiu industry, more breakthroughs
are expected in both intelligent upgrades on the production side and personalized services on the
consumer market side. These developments will drive higher-quality development of the baijiu
industry.
C. During the 14th Five-Year Plan period, the Company steadily advanced its supply chain operation
strategy and successfully completed its strategic transformation from a traditional baijiu enterprise to
a high-tech baijiu enterprise. The Company has developed strong advantages as a supply chain
leader. Looking ahead to the 15th Five-Year Plan period, the Company will unswervingly advance its
“ecosystem chain operation strategy”. Through forward-looking strategic planning, strong
technological empowerment, and efficient ecosystem collaboration, the Company will
comprehensively promote Luzhou Laojiao’s high-quality development to a new level.
A. Risk of a slower-than-expected recovery in consumption. At present and for some time to come,
the domestic and international environments are becoming more complex and uncertain, and the
consumer market faces multiple pressures, including contracting demand, supply shocks, and
weakening expectations. As a typical pro-cyclical industry, the baijiu industry is highly correlated with
consumer sentiment. If the recovery of the consumer market falls short of expectations, the industry
may remain in an adjustment period for an extended time.
B. Risk of intensified price competition. The supply-demand imbalances accumulated during the
period of rapid growth in the baijiu industry have continued to emerge, and market price inversion has
become widespread. If the supply-demand structure cannot be effectively improved, further price-
based competition may occur, affecting revenue and profit margins across the entire industry chain.
C. Risk arising from generational changes in consumers. Younger consumer groups have more
diversified preferences, and the industry faces challenges in scenario innovation, taste adaptation,
and cultural identification. If the baijiu industry cannot effectively reach young consumers and build
emotional connections through innovation in products, marketing, and consumption scenarios, it may
lead to weakened growth momentum and a diversion of market share.
Guided by the development approach of “staying focused on returning to the top three in the industry,
tackling key challenges through coordination, and pursuing steady, long-term progress”, the
Company formulated, after careful study, its strategic plan for the 15th Five-Year Plan period: the
“156” Strategy.
Firmly pursuing “1” development goal
The Company will remain firmly committed to the strategic goal of “returning to the top three in the
industry” and will follow through on this blueprint with consistency. It will strive to enter the first tier of
China’s baijiu industry across key areas including business scale, profitability, quality production
capacity, brand value, and digital and intelligent innovation.
Upholding “5” development philosophies
First, the Company will uphold a long-term philosophy and remain firmly consumer-centric. By
pursuing the corporate vision of “Luzhou Laojiao moves the world, and National Cellar 1573 brings
the taste of China to the world”, the Company aims to grow into a great enterprise capable of
navigating cycles and achieving steady, long-term development.
Second, the Company will uphold a quality philosophy and remain firmly committed to quality as its
belief. By practicing the baijiu production culture of “A lifetime devoted to one craft: Producing fine
baijiu”, the Company is committed to making the quality of Chinese baijiu visible and setting a quality
benchmark that leads the industry.
Third, the Company will uphold a value philosophy and remain firmly driven by value creation. The
Company is committed to building an internal and external ecosystem for value co-creation, delivering
outstanding returns to shareholders and partners externally, and providing a platform for employee
growth internally, thereby creating a virtuous cycle of value co-creation and shared outcomes.
Fourth, the Company will uphold an innovation philosophy and remain firmly committed to innovation
grounded in tradition. By carrying forward the corporate spirit of “daring to be the first, striving with joy,
respecting people and work, and pursuing innovation and excellence”, the Company will promote
innovation-driven development across its major systems and continuously strengthen its internal
growth momentum.
Fifth, the Company will uphold a philosophy of coexistence and remain firmly committed to the
mission of “producing happiness”. By practicing the corporate philosophy of “Baijiu for the World, a
Shared Future”, the Company will move forward with society, stay in harmony with the environment,
and coexist with humanity while continuing to build an ecosystem and platform for coexistence.
Building “6” excellent systems
First, the Company will focus on building an excellent system for market expansion and consumption
innovation. It will respond precisely to market demand, upgrade its marketing model, innovate
consumption scenarios, and optimize service experiences.
Second, the Company will focus on building an excellent system for cultural empowerment and brand
management. It will highlight the core role of culture, deepen cultural expression, enhance brand
value, and expand brand communication. It will also promote the deeper operation of “dual brands,
three product series, and major single products”, advance the integrated development of baijiu culture
and tourism, and build a “baijiu culture plus” industrial ecosystem. The goal is to establish Luzhou
Laojiao’s position as a cultural leader.
Third, the Company will focus on building an excellent system for quality production capacity and
supply assurance. It will uphold exceptional quality and organic standards, remain committed to pure-
grain solid-state distillation, maintain vintage storage, and strengthen its production system
underpinned by high-quality capacity. It will adhere to the principle of dynamic and balanced
production, build an efficient and agile supply assurance system, and become a leader in supply
assurance in the industry.
Fourth, the Company will focus on building an excellent system for digital and intelligent integration
and efficiency improvement. It will comprehensively develop new quality productive forces driven by
digital and intelligent technologies, continue to tackle key challenges in intelligent production
technologies, optimize its smart marketing platform, and strengthen its digital and intelligent
management hub. It will also unlock the value of data assets, promote the management of data
applications, and empower key business processes, thereby reducing costs while improving
efficiency across the value chain.
Fifth, the Company will focus on building an excellent system for organizational vitality and talent
development. It will build a battle-ready marketing force, cultivate a production team capable of
overcoming tough challenges, and develop an administrative team that creates value. The Company
will continue to deepen its nationwide talent deployment and professional talent development and
build an agile, value-creating organization with a sound structure, lean operations, and high efficiency.
Sixth, the Company will focus on building an excellent system for coordinated industrial development
and ecosystem co-development. It will focus on building a business ecosystem of mutual growth and
shared success, deepen co-creative and win-win partnerships, strengthen its leading role as the
“chain leader” in the industrial chain, fulfill its social responsibilities as a state-owned enterprise, and
build sound relationships with local communities, governments, and the public.
In 2025, the Company recorded operating revenue of CNY 25.731 billion, down 17.52% year on year,
and a net profit attributable to its shareholders of CNY 10.831 billion, down 19.61% year on year. This
was mainly because the baijiu industry as a whole entered a new round of adjustment characterized
by lower volume and higher quality, reflected in “contracting external demand, the pains of internal
adjustment, and increasingly intense competition”. Under the combined impact of these pressures,
baijiu enterprises saw weaker overall growth momentum and pressure on profitability. Going forward,
the Company will remain firmly focused on its “ecosystem chain operation strategy”. It will
concentrate on key areas and take targeted actions to ensure a strong start, laying a solid foundation
for high-quality development.
According to the 2026 Production and Operation Guidelines reviewed and approved by the Board of
Directors, the Company will steadfastly implement the “156” development strategy and further
advance the “ecosystem chain operation strategy”. Upholding the general principle of pursuing
progress while ensuring stability, the Company will unite its efforts, act with pragmatism and
determination, and make every effort to win the critical battle in the first year of the strategy. (The
business plan in 2026 is formulated by the Company according to the 15th five-year strategic plan
and based on its business capabilities. It does not represent the Company's profit forecast for 2026,
and is not a commitment by the Company. Whether it can be achieved depends on many factors
such as changes in market conditions and efforts of the operation team. There are great uncertainties.
Investors are kindly reminded to pay special attention). The main measures are as follows:
A. Maintaining the development pace of “pursuing progress, efficiency, and returns while
ensuring stability”
On the marketing front, the Company will pursue progress while maintaining stability. On the
basis of stabilizing market pricing and channel margins, the Company will make every effort to
stimulate actual consumer consumption, expand channel presence, and broaden market coverage. It
will advance channel penetration and refined digital and intelligent marketing operations in an orderly
manner to further strengthen its market fundamentals. The Company will also steadily advance its
international presence and explore marketing models tailored to local consumer preferences. On the
support front, the Company will pursue efficiency while maintaining stability. It will continue to
promote standardized management, lean processes, systematic institutional development, and digital
and intelligent operations. Through the development of platforms such as business-finance
integration, supply chain collaboration, and data middle platforms, the Company will enable more
efficient resource allocation and more precise decision-making and execution. On the production
front, the Company will pursue returns while maintaining stability. Driven by both traditional
capabilities and digital and intelligent technologies, the Company will continue to improve lean
production, data application capabilities, product quality assurance, and resource utilization efficiency,
further strengthening the quality foundation for high-quality development.
B. Advancing the three major initiatives of “brand enhancement, cultural empowerment, and
talent quality improvement”
For brand enhancement, the Company will focus on its “dual brands, three product series, and
major single products”, continuously optimize its product portfolio, and enhance product
distinctiveness. It will effectively integrate scarce resources in culture, art, sports, and other fields to
systematically communicate the brand values of “scarcity, premium quality, fashion, and health”,
thereby strengthening consumers’ value recognition. For culture empowerment, the Company will
center on its corporate culture framework of “Philosophy of Symbiosis” and promote the integration of
cultural concepts into management systems, business processes, and codes of conduct. Through
cultural training, role-model recognition, and the sharing of exemplary stories, the Company will help
employees internalize the culture and reflect it in their actions. For talent quality improvement, the
Company will respond to the needs of its international, digital and intelligent, and youth-oriented
transformation by accelerating the development of leading technical R&D talent, interdisciplinary
professionals, and innovative young talent. In doing so, it will build a talent system with a sound
structure, well-matched capabilities, and strong vitality.
C. Achieving three major breakthroughs in “project tackling, public relations empowerment,
and headquarters coordination”
The Company will focus on project tackling and continue to promote the smooth and orderly
implementation of major projects. It will continue to advance the integrated development of baijiu
culture with tourism, urban development with tourism, and culture with tourism, further create baijiu
consumption and experience scenarios, and steadily promote the construction of production-related
projects, injecting new momentum into quality assurance. The Company will deepen public
relations empowerment and continue to enhance brand awareness and influence. It will
systematically advance market public relations, public opinion management, and targeted
engagement with key communities. By strengthening multidimensional interaction with well-known
enterprises, think tanks, organizations, media outlets, and consumers, the Company will convert
public relations momentum into brand trust. The Company will strengthen headquarters
coordination and build a professional and refined service support system. By integrating internal and
external resources, it will continue to improve the service support capabilities of its headquarters.
communication, interview, etc. in the reporting period
? Applicable ? N/A
Main inquiry
Index to main
information
Date of visit Place of visit Way of visit Type of visitor Visitor inquiry
and materials
information
provided
Conference Industry
March 21, Center of Institutional trends and http://www.cni
Field survey Institution
Securities performance
Communicatio
Company n through an Institutional Company http://www.cni
April 29, 2025 Institution
Headquarters online investor performance nfo.com.cn/
platform
Communicatio Industry
Company n through an trends and http://www.cni
May 16, 2025 Other All investors
Headquarters online company nfo.com.cn/
platform performance
Institutional Industry
Company and individual trends and http://www.cni
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Headquarters investors and company nfo.com.cn/
media performance
Communicatio Industry
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platform performance
Communicatio Industry
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October 31, Company Communicatio Institution Institutional Industry http://www.cni
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platform performance
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media performance
valuation enhancement plan
Indicate whether the Company has developed market value management rules.
? Yes □ No
Indicate whether the Company has disclosed its valuation enhancement plan.
□ Yes ? No
In order to strengthen the Company's market value management, effectively promote the Company to
enhance investment value, enhance investor returns and safeguard investor interests, in accordance
with the Company Law of the People's Republic of China, the Securities Law of the People's Republic
of China, the Information Disclosure Management Measures for Listed Companies, the Listed
Company Regulatory Guideline No. 10 - Market Value Management and other applicable laws,
regulations, normative documents and the Company's Articles of Association, etc., the Market Value
Management Rules of Luzhou Laojiao Co., Ltd. have been formulated upon approval at the Sixth
Meeting of the11th Board of Directors.
Development Quality and Shareholder Returns"
Indicate whether the Company has disclosed its action plan for "Dual Enhancement of Development
Quality and Shareholder Returns".
? Yes □ No
In accordance with the guiding ideology of "further invigorating the capital market and boosting investor
confidence" proposed at the Political Bureau meeting of the CPC Central Committee and "vigorously
improving the quality and investment value of listed companies, taking more powerful and effective
measures, and focusing on stabilizing the market and confidence" proposed at the State Council
Executive Meeting, in order to safeguard the interests of all shareholders, boost investor confidence,
and promote the long-term healthy and sustainable development of the Company, Luzhou Laojiao Co.,
Ltd. (hereinafter referred to as "the Company") has formulated its action plan for "Dual Enhancement of
Development Quality and Shareholder Returns" in combination with the Company's development
strategy, business picture, and financial condition. The specific measures are as follows:
A. Strengthening confidence in strategic planning and aiming at the Company's development
goals
The Company has formulated the "136" strategic plan for the 14th Five-Year Plan based on the
development idea of "giving play to advantages, tackling areas of weaknesses, improving quality,
building strength, and seeking rejuvenation". Specifically, "1" refers to one development goal, namely,
firmly insisting on the goal of regaining the "Top 3" ranking among the Chinese baijiu industry; "3" refers
to three major development principles, namely, insisting on brand leadership and fully enhancing the
value of Chinese famous baijiu brands, insisting on taking quality as foundation and sparing no efforts
to build a core production area of world famous baijiu, and insisting on taking culture as the foundation
and striving to build a pilgrimage site for Chinese baijiu culture; "6" refers to "Six-in-One" Luzhou
Laojiao, namely, building a strong-brand Luzhou Laojiao, a quality Luzhou Laojiao, a cultural Luzhou
Laojiao, an innovative Luzhou Laojiao, a digital and intelligent Luzhou Laojiao, and a harmonious
Luzhou Laojiao. Since the 14th Five-Year Plan period, the Company has firmly implemented the "136"
development strategy, won key battles such as expanding production capacity, upgrading brands, and
strengthening teams, and has entered a stage of high-quality development. The National Cellar 1573
brand achieved comprehensive coverage in the domestic market and was fully expanding in overseas
markets; the Luzhou Laojiao brand built a strong basis in the granary market, and has gained a stable
and penetrating presence in the opportunity market, with much good news of the revival of famous
baijiu; the breakthrough project of expanding key sales areas has been deeply promoted, market
consumption has been further activated, and market share has been further increased. In terms of
digital marketing and brand building, channel development and public relations empowerment, online
expansion and offline integration, and overseas layout and domestic boosting, a clearer and more
effective path has been created with the characteristics of Luzhou Laojiao, which has made
contributions to the healthy and rapid development of the Company. During the 14th Five-Year Plan
period, the compound growth rate of the Company's net profit attributable to the parent company
reached 12.52%. Going forward, the Company will continue to steadfastly implement the principle of
"growing as fast as possible on the basis of healthy development", and resolutely "compete" for better
performance while benchmarking against outstanding enterprises in the industry and main competitors,
and move towards the established goals prudently and meticulously.
B. Deeply promoting technological innovation and strengthening the transformation of scientific
research achievements
In recent years, the Company has attached great importance to the development mode of innovation
leading progress, integrated innovation forces, gathered innovation resources, tackled the frontier and
common key technologies of the baijiu industry, and promoted the transfer and transformation of
achievements and industry sharing, thus promoting the transformation of the baijiu industry from
experience oriented to technological oriented. This has made important contributions to the
technological innovation, transformation and upgrading of the baijiu industry in China. First, the
Company has successfully established multiple major national-level technological innovation platforms,
including the National Engineering Research Centre of Solid-State Distillation, the National Industrial
Design Centre, and the National Postdoctoral Workstation. The Company has formed a comprehensive
technological innovation platform system with the National Engineering Research Centre of Solid-State
Distillation as the R&D core, covering basic R&D, talent cultivation, and engineering transformation in
multiple fields, and has built a highland for technological innovation in the entire industry. Second, the
Company has continuously increased investment in technological innovation, research and
development, and continuously enhanced its independent innovation capabilities. In the past five years,
the total R&D investment reached CNY 1,138.8705 million, and the compound annual growth rate of
innovation R&D investment reached 6.29%. Third, the Company has actively carried out collaborative
innovation between the Company, universities and research institutions, establishing cooperative
relationships with more than 30 universities and institutions such as Tsinghua University and Shanghai
Jiao Tong University. Through various forms including joint laboratory building, joint undertaking of
major projects, joint training of talents, and establishment of open projects, the Company has carried
out extensive technical exchange and cooperation, forming a good pattern of diversified cooperation,
innovative development, and mutual benefit between universities and the Company. Fourth, the
Company has attached great importance to the creation and protection of intellectual property rights,
and regarded intellectual property building as an important development strategy for the Company. The
number of applications and authorizations for invention and utility model patents has maintained a rapid
growth. Up to now, the Company has been granted 304 patents, including 93 invention patents and 211
utility models, both of which are at the forefront of the industry. In the future, the Company will continue
to leverage its advantages in scientific research platforms, talent, and publicity to comprehensively
consolidate Luzhou Laojiao's leading position in scientific research.
C. Highly valuing standardized operations and improving corporate governance level
The Company has continuously consolidated the foundation of corporate governance, improved the
corporate governance structure, actively studied laws and regulations and the latest regulatory policies,
and standardized the Company's management system. The Company has also clearly defined the
responsibilities and authorities of the Board of Directors, the Board of Supervisors, meetings of
shareholders and the management in decision-making, execution, and supervision, and regulated the
rights and obligations of the Company and shareholders. The Company has vigorously promoted the
systematization, standardization, and digitalization of corporate governance, synchronously enhanced
the information-based level in the Board of Directors, the Board of Supervisors and meetings of
shareholders, and incorporated the building of the integrated securities business platform into the
"digital and intelligent Luzhou Laojiao" system, to continuously improve the level of corporate
governance. In order to further improve the Company's risk management system and ensure that the
directors, supervisors, and senior management of the Company fully perform their duties within their
scope of responsibilities, the Company has actively promoted the purchase of liability insurances for
directors, supervisors, and senior management. Meanwhile, the Company has become the first listed
company in the industry to sign a liability insurance agreement for directors, supervisors, and senior
management which has been approved by a meeting of shareholders. In the future, the Company will
continue to promote information technology building to empower corporate governance, continuously
improve operational efficiency and scientific decision-making level.
D. Fulfilling the information disclosure obligation compliantly and strictly guarding the defense
line of insider trading
The Company takes standardized information disclosure as the bottom line, conducts information
disclosure with high standards, and effectively respects and safeguards the legitimate rights and
interests of investors. First, the Company has established and improved a management system
centered on major information internal reporting system, temporary and periodic report preparation
procedure, insider information management system, and other policy documents, and continuously
promoted the standardized and procedural business work, to ensure accurate and rigorous information
disclosure. Second, the Company has adhered to investor demand orientation, actively promoted
voluntary information disclosure, attached importance to the pertinence, readability, and effectiveness
of disclosure content, and continuously improved the transparency of information disclosure of the
Company. The Company has been awarded the highest A grade in the information disclosure
assessment of listed companies on the Shenzhen Stock Exchange for several consecutive years. In the
future, the Company will continuously improve the transparency of information disclosure and
continuously display information on the Company's operations at multiple levels, angles, and
dimensions.
E. Efficiently carrying out investor relations activities and conveying the Company's investment
value
The Company has actively adapted to the needs of investor research and carried out investor
relationship management through a combination of "inviting in" and "going out" models. It has actively
communicated with investors on industry hot topics, the Company's business picture, and development
strategies through the Shenzhen Stock Exchange investor interaction platform, establishment of
investor hotlines, improvement of investor relationship websites, hosting online collective reception
days, and on-site investor surveys. In doing so, the Company has conveyed its investment value and
safeguarded investors' right to know. At the same time, the Company has adhered to investor demand
orientation. Based on the continuous growth of overseas shareholders in recent years, the Company
has innovatively used overseas accounts such as Facebook, Twitter, and IG to simultaneously publish
the Company's performance promotion, shortened the disclosure time interval between Chinese and
English versions, and conducted overseas roadshows, to ensure the timeliness of information
acquisition for overseas investors. Going forward, the Company will continue to build a two-way
communication mechanism for a deep understanding and positive interaction with the capital market to
transmit the Company's value. (Investors are welcome to visit the Company's investor relations website
at https://000568.ir-online.cn/).
F. Improving shareholder returns and safeguarding the legitimate rights and interests of
shareholders
The Company adheres to the implementation of an active profit distribution policy, attaches importance
to reasonable returns to investors while considering the sustainable development of the Company, and
maintains the continuity and stability of profit distribution. The Company clearly stipulates in its Articles
of Association that the Company may distribute dividend in cash or stocks and the dividend should not
be less than 50% of the distributable profit realized for that year, and the profit to be distributed in cash
should not be less than 30% of the distributable profit realized for that year. Cumulative dividends since
its listing have reached CNY 60.56 billion, representing a high dividend payout ratio of 63.50% (after the
implementation of the 2025 final dividend distribution), ranking among the top among more than 5,000
listed companies in the Shanghai and Shenzhen stock markets. This has allowed all shareholders to
fully share the Company's development achievements and effectively maintained the Company's good
image in the capital market. In order to further improve the profit distribution policy, establish a
scientific, sustained and consistent shareholder return mechanism and enhance investment value, the
Company has formulated the 2024-2026 Shareholder Dividend Plan. The Company's annual cash
dividends shall account for no less than 65%, 70% and 75% of the net profit attributable to shareholders
of the listed company in 2024, 2025 and 2026, respectively, and shall not be less than CNY 8.5 billion.
In principle, cash dividends can be paid twice a year. Going forward, while safeguarding normal
business operations and long-term corporate development, the Company will adopt a sound profit
distribution policy to ensure investors duly share in the fruits of its growth.
G. Encouraging the controlling shareholder to actively increase its shareholdings to maintain
the stability of the capital market
Based on its recognition of the Company's long-term value and its firm belief in the Company's
development prospects, the controlling shareholder of the Company, Luzhou Laojiao Group Co., Ltd.,
increased its holdings in the Company by 1,140,200 shares in total with its own funds through call
auction trading during the period from December 15, 2023 to June 15, 2024, with a total amount of
approximately CNY 200.9629 million. In 2025, Laojiao Group increased its shareholdings in the
Company by 2,345,250 shares with special loans and its own funds through call auction trading,
representing a total amount of approximately CNY 299.9973 million.
Moving forward, the Company will focus on the development theme of “Boosting Confidence,
Maintaining Steady Pace, Forging ahead With Concerted Efforts, and Pursuing Breakthroughs”, actively
take responsibility, keep diligent, and make solid progress while striving for high-quality development.
The Company will also firmly establish a sense of return to shareholders, effectively implement the
"dual enhancement of development quality and shareholder returns" action plan, significantly enhance
investors' satisfaction, and actively contribute to stabilizing the capital market and investor confidence.
Section IV Governance, Environmental and Social Information
Since it was listed, in accordance with the Corporate Law, the Securities Law, The Listed Company
Governance Standards and other laws, administrative regulations and departmental rules and
normative documents, the Company has constantly perfected corporate governance structure,
standardized its operation, established the rules and system on the basis of the Company's articles of
association whose main framework is the rules of procedure of the shareholders' meeting, and rules
of procedure of the board of directors, which forms the management system of which the main
structure is the shareholders’ meeting, board of directors, and management. During the reporting
period, in accordance with the relevant arrangements of the China Securities Regulatory Commission
for the implementation of supporting rules under the newly revised Company Law, and in compliance
with the requirements set forth in the Implementation Plan for Deepening the Reform of the Board of
Supervisors of State-owned Enterprises issued by the State-owned Assets Supervision and
Administration Commission of the State Council (SASAC), the Company abolished the Board of
Supervisors in accordance with laws and regulations and completed the reform of the Board of
Supervisors.
Any incompliance with the applicable laws and administrative regulations, as well as regulations
related to the governance of listed companies issued by the CSRC
? Yes ? No
There is no incompliance with the applicable laws and administrative regulations, as well as
regulations related to the governance of listed companies issued by the CSRC.
businesses which are separated from the controlling shareholder and
the actual controller
The Company has an independent and complete production and operation system and independent
decision-making ability. There is no horizontal competition between the Company and the controlling
shareholders and its subsidiaries. The related party transactions arising from routine operation
between the Company and the controlling shareholder and its majority-owned subsidiaries are
resulted from the need of rational allocation of resources and do not affect the independence of the
Company. The Company has strictly fulfilled the relevant decision-making procedures and information
disclosure obligations, and implemented the system of non-executive directors' prior examination and
avoidance system of related directors (shareholders).
Asset integrity. There are clear ownership and independency of the Company's assets invested by
controlling shareholders. The Company has an independent and complete production, supply, sales
system and auxiliary production system and supporting facilities. The industrial property rights,
trademarks and non-patented technology and other intangible assets are owned by the Company.
There is no situation that the controlling shareholders occupy and transfer the assets of the company.
Business separation: The Company is totally independent in the operation, production and sales of
baijiu series of “National Cellar 1573” and “Luzhou Laojiao” . It has the ability to operate
independently in the market. The board of directors and the management can independently make
production and operation decisions within the corresponding authority.
The Company has established independent labor management, personnel management and salary
management. The Company has established a relatively complete labor management system and
post responsibility system. Meanwhile, the Company's senior management personnel all receive
salary in the Company, but not at the controlling shareholders.
Organization independence. The Company has independent production management organization
and system, independent office and production management place, and independent management
organization, functional organization and branch.
Financial independence. The Company has an independent financial and accounting department.
Independent accounting system and financial management are established. The Company separately
sets bank accountants, conducts external settlement and pays taxes according to law.
?Applicable ? N/A
Shares Shar Shares Other
Shares
held by the es decrea increa Reas
held by the
Incumb beginning incre sed se/ on for
end of the
Name Gender Age Title ent/ Period of service of the ased during decre share
reporting
Former reporting durin the ase chan
period
period g the reportin (shar ges
(share)
(share) report g e)
ing period
perio (share)
d
(shar
e)
Chairman
Liu June 30, 2015 to
Male 56 of the Current 288,087 288,087
Miao June 27, 2027
board
Director,
Lin June 30, 2015 to
Male 52 General Current 95,900 95,900
Feng June 27, 2027
manager
Director,
December 29,
Zhang Deputy
Male 54 Current 2015 to June 27, 76,700 76,700
Suyi general
manager
Director,
Xiong
Deputy June 29, 2021 to
Pingtin Female 50 Current 62,800 62,800
general June 27, 2027
g
manager
Non-
Chen June 29, 2021 to
Male 68 executive Current
You’an June 27, 2027
director
Non-
Lyu June 29, 2021 to
Male 62 executive Current
Xianpei June 27, 2027
director
Li Non-
June 29, 2022 to
Guowa Male 62 executive Current
June 27, 2027
ng director
Li Non-
June 27, 2024 to
Liangch Male 51 executive Current
June 27, 2027
en director
Non- December 24,
Yi Zhi Male 54 executive Current 2025 to June 27,
director 2027
Chen Non- December 24,
Guoxia Male 63 executive Current 2025 to June 27,
ng director 2027
Qian Resign June 30, 2015 to
Male 62 Director
Xu ation May 29, 2025
September 13,
Ying Resign 2016 to
Male 56 Director
Hanjie ation December 4,
Xiong June 27, 2024 to
Male 49 Director Current
Bo June 27, 2027
Tang Deputy December 24,
Donglia Male 48 general Current 2024 to June 27,
ng manager 2027
Shen Deputy June 30 , 2002
Caihon Male 60 general Current to June 27 , 180,481 180,481
g manager 2027
Xie March 6, 2015 to
Female 56 CFO Current 76,700 76,700
Hong June 27, 2027
Deputy
He June 30, 2015 to
Male 59 general Current 76,700 76,700
Cheng June 27, 2027
manager
Li Yong Male 49 Deputy Current September 20, 62,800 62,800
general 2021 to June 27,
manager, 2027
Secretary
of the
board
Zhao Deputy
August 2, 2024
Bingku Male 46 general Current 30,000 30,000
to June 27, 2027
n manager
Total -- -- -- -- -- -- 950,168 0 0 950,168 --
Whether any director or senior management resigned before the expiry of their periods of service
during the reporting period
? Yes □ No
During the reporting period, Mr. Qian Xu and Mr. Ying Hanjie resigned as directors for personal
reasons on May 29, 2025 and December 4, 2025 respectively.
Changes in directors and senior management
? Applicable □ N/A
Name Title Type Date Reason
Qian Xu Director Resignation May 29, 2025 Personal reasons
Ying Hanjie Director Resignation December 4, 2025 Personal reasons
Professional background, work experience and major duties of current directors and senior
management.
Mr. Liu Miao, male, born in 1969, MBA of Wright State University in the USA, Master of Chinese
Baijiu Distillation, professorate senior engineer, and senior marketing specialist. He used to serve as
planning minister, general manager of Sales Company, general manager assistant, and deputy
general manager of the Company. At present, he is secretary of the party committee and chairman of
the board in Laojiao Group, secretary of the party committee and chairman of the board in the
Company, as well as chairman of the board in Luzhou Sanrenxuan Liquor Industry Co., Ltd.
Mr. Lin Feng, male, born in 1973, Master degree, professorate senior economist, senior marketing
specialist. He was deputy general manager and general manager of Sales Company, director of
marketing, director of human resources, chief dispatcher, deputy general manager of the Company.
At present, he is deputy secretary of the party committee, director, and general manager of the
Company.
Mr. Zhang Suyi, male, born in 1971, PhD, professorate senior engineer, representative inheritor of
Sichuan Intangible Cultural Heritage. He was a worker, production team leader and assistant
superintendent at Distillation Workshop No. 6, vice director and director of Gouchu Center, and
deputy chief engineer of the Company, as well as deputy general manager, and director of the Baijiu
Body Design Centre of Baijiu Production Company. At present, he is director, deputy general
manager, and director of safety and environmental protection of the Company.
Ms. Xiong Pingting, female, born in 1975, holds a master's degree and the titles of Professorate
Human Resource Management Professional, and Political Mentor. Positions previously held by her
include Deputy Director and Director of the Office of Luzhou Laojiao Sales Co., Ltd., Deputy Director
of the Office of Jiangyang District People's Government of Luzhou (temporary), Deputy Director of the
Human Resources Department and Corporate Management Department of Luzhou Laojiao Co., Ltd.,
General Manager of the Brand Operation Department, Director of the Office (concurrently), Secretary
of the general Party branch, and Deputy General Manager of Luzhou Laojiao Sales Co., Ltd. At
present, she is member of the Party Committee, Director, Deputy General Manager, and Chairman of
the Labor Union of the Company.
Mr. Chen You'an, male, born in 1958, holds an Eng.D. degree in management science and
engineering and is a Senior Engineer. Currently, he is Independent Director of Hexie Health
Insurance Co., Ltd., CPIC Fund Management Co., Ltd., and Tech-bank Food Co., Ltd. He has served
as a non-executive director of the Company since June 2021.
Mr. Lyu Xianpei, male, born in 1964, holds a Ph.D. degree in accounting. Positions previously held by
him include Vice Dean at the School of Accounting and Director at the Auditing Department of
Southwestern University of Finance and Economics. Currently, he serves as Professor and Doctoral
Supervisor at Southwestern University of Finance and Economics, Chairman of Sichuan Society of
Education Audit, Director of Sichuan State-owned Assets Operation Puhui Financing Guarantee Co.,
Ltd., as well as Independent Director of Sichuan Teway Food Group Co., Ltd., and North Chemical
Industries Co., Ltd. He has served as a non-executive director of the Company since June 2021.
Mr. Li Guowang, male, born in 1963, holds a postgraduate degree and is a senior economist. He
once served as the Deputy Director of the Information Center of the Ministry of Commerce, Deputy
General Manager of Futures Brokerage Co., Ltd. under China Banking and Insurance Information
Technology Management Co., Ltd., General Manager of the Shanghai Securities Business
Department of China Banking and Insurance Information Technology Management Co., Ltd., Director
of the Strategic Development Department of the R&D Center of China Galaxy Securities Co., Ltd.,
General Manager of the R&D Center of Shanghai Securities Co., Ltd., Marketing Director of Galaxy
Asset Management Co., Ltd., Director of the Research Institute of Hwa Bao Securities Co., Ltd., Chief
Economist and Director of the Research Institute of Zhongshan Securities Co., Ltd., Chief Economist
of Shanghai Dalu Futures Co., Ltd., and Deputy Director of the Green Finance Committee of the
Jiangsu Financial Association. Currently, he is a member of the Association of Zhejiang Talent in
Shanghai. He has served as a non-executive director of the Company since June 2022.
Mr. Li Liangchen, male, born in 1974, MBA. He used to be senior partner of Shanghai AllBright
(Hangzhou) Law Offices, lawyer of Beijing Tianyuan (Hangzhou) Law Firm, and partner of Beijing
Zhong Lun (Hangzhou) Law Firm. Currently, he is partner of Beijing Dentons (Hangzhou) Law Firm,
as well as non-executive director of Zhuhai Zhumian Group Co., Ltd., Sijin Intelligent Forming
Machinery Co., Ltd., Ningbo FLK Technology Co., Ltd. (non-listed), and Sichuan Yingfa Ruineng
Technology Co., Ltd. (non-listed). He has served as a non-executive director of the Company since
June 2024.
Mr. Chen Guoxiang, male, born in 1963, holds a PhD in Science. He previously served as Vice Dean
of the School of Life Sciences at Nanjing Normal University, Deputy Director and Director of the
Science and Technology Department of Nanjing Normal University, Vice President of Nanjing Normal
University, Secretary of the Party Committee and President of Nanjing Sport Institute, and President
and Deputy Secretary of the Party Committee of Nanjing Normal University. Currently, he is a
Professor at Nanjing Normal University and Director of the Carbon Peak and Carbon Neutralization
Strategy Institute of Jiangsu Province. He has served as a non-executive director of the Company
since December 2025.
Mr. Yi Zhi, male, born in 1971, holds a PhD in Economics and is a postdoctoral fellow of the Institute
of Finance and Trade Economics under the Chinese Academy of Social Sciences. He graduated from
Zhejiang University and Shanghai University of Finance and Economics. He previously served as a
reporter and editor in the Special Topics Department and Deputy Director of the Research
Department of the Shanghai Securities News, and an Associate Professor at the School of Finance,
Zhejiang Gongshang University. Currently, he is a Professor and Doctoral Supervisor at the School of
Finance of Zhejiang University of Finance & Economics, a research fellow at the Institute for Public
Policy of Zhejiang University, and a non-executive director of UniTTEC Co., Ltd. He has served as a
non-executive director of the Company since December 2025.
Mr. Xiong Bo, male, born in 1976, Master of Public Administration. He used to be deputy chief and
chief of the Policy, Regulations and Talent Planning and Development Department of Luzhou
Municipal Human Resources Bureau, deputy chief of Secretary Department I of Luzhou Municipal
Government Office, deputy director of office and chief of the Procurement Department of Luzhou
Municipal Finance Bureau, director of Luzhou Financial Supervision and Inspection Bureau, as well
as member of the party committee and deputy director of the State-owned Assets Supervision and
Administration Commission of Luzhou. At present, he is party secretary and chairman of the board of
Luzhou State-owned Capital Management Service Co., Ltd., as well as full-time external director of
Laojiao Group, Luzhou Development Holding Group Co., Ltd., and Luzhou Development Group Co.,
Ltd. He has served as a director of the Company since June 2024.
Mr. Tang Dongliang, male, born in 1977, holds a postgraduate degree. He used to be the deputy head
of the People’s Government of Longmatan District, Luzhou City; a member of the standing committee
of the Communist Party of China of Jiangyang District, Luzhou City, and an executive vice mayor of
the people’s government of Jiangyang District; and the deputy secretary of the committee of the
Communist Party of China of Jiangyang District, Luzhou City, and the mayor of the people’s
government of Jiangyang District. He is now a deputy general manager of the Company.
Mr. Shen Caihong, Male, born in 1966, Master degree, professor-level senior engineer, one of the
first batch of representative inheritors of national intangible cultural heritage, one of the first batch of
“Master of Chinese Baijiu Distillation”, and one of the first batch of "Sichuan craftsmen". He was
manager of the Company’s leaven-making branch, manager of base baijiu company, general
manager assistant and director of production department. At present, he is deputy general manager,
chief engineer, director of national solid-state distillation engineering technology research center and
chairman of the board of Luzhou Pinchuang Technology Co., Ltd.
Ms. Xie Hong, female, born in 1969, Master degree, senior accountant, and professorate senior
economist. She was section chief of Treasury Section of the Finance Bureau, section chief of Non-tax
Revenue Collection Management Section, director of Luzhou Municipal Finance Treasury Payment
Center, chief accountant of Luzhou Finance Bureau. At present, she is a member of the party
committee and CFO of the Company.
Mr. He Cheng, male, born in 1966, Master of Management Economics of Nanyang Technological
University, senior engineer, expert who receives special allowances from the State Council, Master of
Chinese Baijiu, and Master of Chinese Baijiu Distillation. He was chief dispatcher of the Company,
general manager of Baijiu Production Company, as well as director of the business administration
department, director of the human resources department, director of the quality department, and
director of the dispatching center of the Company. At present, he is a member of the party committee,
deputy general manager, chief quality officer and director of food safety of the Company.
Mr. Li Yong, male, born in 1977, holds a postgraduate degree and is a distillation engineer. He once
worked in the education sector at the Party and government organizations at the township level as
well as departments at the county and municipal levels. Also, he used to be Director of the Group
Office of Luzhou Laojiao Group, Director of the General Manager’s Office of the Company, as well as
Deputy Secretary of the Party Committee, Secretary of the Discipline Inspection Committee, and
Deputy General Manager of Sales Company. Currently, he is Deputy General Manager, Secretary of
the Board, and member of the Discipline Inspection Committee of the Company, as well as Chairman
of the Board of Luzhou Laojiao Technology Innovation Co., Ltd.
Mr. Zhao Bingkun, male, born in 1979, holds a university degree and is Senior Professional Engineer
and Level 1 Baijiu Taster. He used to be head of office and deputy general manager of Baijiu
Production Company, deputy head (temporary) of the People's Government of Longmatan District,
Luzhou City, and general manager of the Packaging Materials Sourcing Centre of the Company. At
present, he is deputy general manager of the Company.
Whether the controlling shareholder or actual controller concurrently serves as the chairman of the
board or general manager of the Company
? Applicable ? N/A
Position in shareholder-holding companies
? Applicable ? N/A
Name of Position in Any
Beginning date Ending date of
Name shareholder- shareholder- remunerations
of term term
holding holding received from
companies companies shareholder-
holding
companies
Secretary of the
party committee,
Liu Miao Laojiao Group 11 March 2022 No
Chairman of the
board
Full-time external
Xiong Bo Laojiao Group July 5, 2023 No
director
Position in other companies
? Applicable ? N/A
Any
Name of other Position in other Beginning date Ending date of remunerations
Name
companies companies of term term received from
other companies
Luzhou
Sanrenxuan Chairman of the
Liu Miao No
Liquor Industry board
Co., Ltd.
Hexie Health
Insurance Co.,
Ltd., CPIC Fund
Non-executive
Chen You’an Management
director
Co., Ltd., and
Tech-bank Food
Co., Ltd.
Southwestern
University of
Lyu Xianpei Professor
Finance and
Economics
Sichuan Society
Lyu Xianpei of Education Chairman
Audit
Sichuan State-
owned Assets
Operation Puhui
Lyu Xianpei Director
Financing
Guarantee Co.,
Ltd.
Sichuan Teway
Food Group Co.,
Ltd., and North Non-executive
Lyu Xianpei
Chemical director
Industries Co.,
Ltd.
Association of
Li Guowang Zhejiang Talent Director
in Shanghai
Beijing Dentons
Li Liangchen (Hangzhou) Law Partner
Firm
Zhuhai Zhumian
Non-executive
Li Liangchen Group Co., Ltd.,
director
Sijin Intelligent
Forming
Machinery Co.,
Ltd., Ningbo FLK
Technology Co.,
Ltd. (non-listed),
and Sichuan
Yingfa Ruineng
Technology Co.,
Ltd. (non-listed)
Luzhou State-
Party secretary,
owned Capital
Xiong Bo chairman of the Yes
Management
board
Service Co., Ltd.
Luzhou
Development
Holding Group
Full-time external
Xiong Bo Co., Ltd., and
director
Luzhou
Development
Group Co., Ltd.
Nanjing Normal
Chen Guoxiang Professor
University
Carbon Peak
and Carbon
Neutralization
Chen Guoxiang Director
Strategy Institute
of Jiangsu
Province
School of
Finance of
Zhejiang
Yi Zhi Professor
University of
Finance &
Economics
Institute for
Public Policy of
Yi Zhi Research fellow
Zhejiang
University
UniTTEC Co., Non-executive
Yi Zhi
Ltd. director
Punishments imposed in the recent three years by the securities regulators on the incumbent
directors and senior management as well as those who left in the reporting period
? Applicable ? N/A
The following describes the decision-making procedures, grounds on which decisions are made and
actual remuneration payment of directors and senior management.
Decision-making procedures for directors and senior management: The remuneration of non-
executive directors and external directors shall be determined by the meeting of shareholders; and
the remuneration of directors and senior management who hold positions within the Company shall
be determined by relevant rules of SASAC of Luzhou and the Appraisal and Management Measures
for Remunerations of the Management reviewed and approved by the Company’s meeting of
shareholders.
Grounds on which decisions are made of directors and senior management: Calculate according to
the Appraisal and Management Measures for Remunerations of the Management.
Actual remuneration payment of directors and senior management: Details refer to “Remuneration of
directors and senior management during the reporting period”.
Remuneration of directors and senior management during the reporting period
Unit: CNY 10,000
Total before-
Remuneration
tax
Incumbent/ from related
Name Gender Age Title remuneration
Former parties of the
from the
Company
Company
Chairman of
Liu Miao Male 56 Current 118.43 No
the board
Director,
Lin Feng Male 52 General Current 117.41 No
manager
Director,
Deputy
Zhang Suyi Male 54 Current 93.93 No
general
manager
Director,
Deputy
Xiong Pingting Female 50 Current 93.3 No
general
manager
Non-executive
Chen You’an Male 68 Current 9.52 No
director
Non-executive
Lyu Xianpei Male 62 Current 9.52 No
director
Non-executive
Li Guowang Male 62 Current 9.52 No
director
Non-executive
Li Liangchen Male 51 Current 9.52 No
director
Non-executive
Yi Zhi Male 54 Current 0 No
director
Chen Non-executive
Male 63 Current 0 No
Guoxiang director
Qian Xu Male 62 Director Resignation 1.59 No
Ying Hanjie Male 56 Director Resignation 0 No
Xiong Bo Male 49 Director Current 0 Yes
Deputy
Tang
Male 48 general Current 65.12 No
Dongliang
manager
Deputy
Shen Caihong Male 60 Current 94.64 No
general
manager
Xie Hong Female 56 CFO Current 95.2 No
Deputy
He Cheng Male 59 general Current 93.99 No
manager
Deputy
general
Li Yong Male 49 manager, Current 93.21 No
Secretary of
the board
Deputy
Zhao Bingkun Male 46 general Current 92.74 No
manager
Total -- -- -- -- 997.64 --
Performance appraisal basis for the actual remuneration Applicable national policies and the Appraisal and
received by all directors and senior management at the Management Measures for Remunerations of the
end of the reporting period Management of Luzhou Laojiao Co., Ltd.
Performance appraisal for the actual remuneration
The appraisals were completed in accordance with
received by all directors and senior management at the
applicable rules.
end of the reporting period
Deferred payment arrangements for the actual
remuneration received by all directors and senior None
management at the end of the reporting period
Payment termination and recovery of the actual
remuneration received by all directors and senior None
management at the end of the reporting period
Other information
? Applicable ? N/A
Attendance of director in board meeting and meeting of shareholders
Attendance Attendance Attendance
Attendance Absence for
due in the Attendance by at meeting
through a Absence two
Director reporting on site telecommun of
proxy (times) consecutive
period (times) ication shareholder
(times) times
(times) (times) s (times)
Liu Miao 13 2 11 No 3
Lin Feng 13 0 11 2 No 3
Zhang Suyi 13 2 11 No 1
Xiong
Pingting
Chen
You’an
Lyu Xianpei 13 2 11 No 3
Li Guowang 13 1 11 1 No 3
Li
Liangchen
Qian Xu 4 1 3 No 0
Ying Hanjie 12 2 10 No 0
Xiong Bo 13 2 11 No 2
Chen
Guoxiang
Yi Zhi 1 1 No 1
Notes to absence for two consecutive times
Were there any objections on related issues of the Company from director
? Yes ? No
Directors have no objection on related issues of the Company during the reporting period.
Was there any advice from directors adopted by the Company?
? Yes ? No
Explanation about whether the advice of directors was adopted by the Company
The Company adopted the advice of non-executive directors in respect of external investments, rules
improvement, and internal control construction.
the reporting period
Substantial
Number of Details of
Convened opinion and Other
Committee Members meetings Topics objections
date recommen information
convened (if any)
dations
Satisfaction of Unlocking
Conditions for the First Approved,
Unlocking Period of the to be
Chen
The Reserved Restricted Shares submitted
You’an, Li
Remuneration January under the 2021 Restricted Share to the
Guowang, 3
and Appraisal 17, 2025 Incentive Plan Board of
and Ying
Committee 2. The Proposal on the Directors
Hanjie
Satisfaction of Unlocking for further
Conditions for the Second review
Unlocking Period of the 2021
Restricted Share Incentive Plan
Satisfaction of Unlocking
Conditions for the Second Approved,
Unlocking Period of the to be
Reserved Restricted Shares submitted
September under the 2021 Restricted Share to the
Repurchase and Retirement of for further
Certain Restricted Shares and review
the Adjustment of Repurchase
Price
Approved,
to be
submitted
The Proposal on Reviewing the
November to the
Remunerations of the
Management for 2024
Directors
for further
review
Li the Qualification of Mr. Yi Zhi as to be
Liangchen, Candidate for Non-Executive submitted
The
Lyu November Director to the
Nomination 1
Xianpei, 27, 2025 2. The Proposal on Reviewing Board of
Committee
and Xiong the Qualification of Mr. Chen Directors
Pingting Guoxiang as Candidate for Non- for further
Executive Director review
Report
Self-assessment Report
Approved,
to be
Lyu Assessment and Performance of
submitted
Xianpei, Supervisory Responsibilities of
The Audit April 14, to the
Chen 1 the Audit Committee of the
Committee 2025 Board of
You’an and Board of Directors on the
Directors
Qian Xu Performance of the Accounting
for further
Firm in 2024
review
Internal Audit
appointment of the Accounting
Firm
Approved,
to be
Lyu August 18, Interim Financial Report to the
Xianpei, 2025 2. The 2025 Interim Audit Work Board of
The Audit
Chen 2 Report Directors
Committee
You’an and for further
Li Guowang review
October
Q1-Q3 2025 to be
to the
Board of
Directors
for further
review
Approved,
to be
submitted
The 2024 Environmental, Social
April 14, to the
and Governance (ESG) Report
of Luzhou Laojiao Co., Ltd.
Directors
for further
review
Approved,
to be
submitted
The Proposal on the De-
May 23, to the
registration of Luzhou Laojiao
Electronic Commerce Co., Ltd.
Directors
for further
review
Approved,
to be
Liu Miao, submitted
The Strategy The Proposal on the Investment
Lin Feng, August 18, to the
and ESG 5 and Wealth Management with
and Zhang 2025 Board of
Committee Own Funds
Suyi Directors
for further
review
Approved,
to be
The Proposal on the Investment
submitted
in and Construction of the
September to the
Luzhou Laojiao Historical and
Cultural Industrial Park & China
Directors
Baijiu Museum (Sichuan) Project
for further
review
Approved,
to be
The Proposal on the De- submitted
December registration of Investee CTS to the
Development Co., Ltd. Directors
for further
review
Whether there were any risks to the Company identified by the Audit Committee when performing its
duties during the reporting period
? Yes ? No
The Audit Committee has no objection during the reporting period.
Number of in-service staff of the parent company at the
end of the reporting period
Number of in-service staff of main subsidiaries at the end
of the reporting period
Total number of in-service staff at the end of the reporting
period
Total number of staff with remuneration in the period 3,912
Number of retirees to whom the Company or its main
subsidiaries need to pay retirement pension
Functions
Function by category Number of staff
Production staff 1,315
Sales staff 893
R&D staff 963
Financial staff 100
Administrative staff 641
Total 3,912
Educational backgrounds
Educational background by category Number of staff
Senior high school and below 399
Junior college 667
Bachelor 2,122
Master 702
Doctor 22
Total 3,912
In 2025, the Company implemented the distribution policy of "sharing benefits, paying for losses,
classification and setting, and long-term policy effects", continuously strengthened the digital
assessment, linked individual performance with organizational performance, and highlighted the
distribution according to performance. The Company implemented the post rating wage system and
strengthened the performance management of all employees. According to the following principles:
Link individual performance with organizational performance: The increase of wages is linked to the
increase of the Company's operating performance and profit growth; Under the same caliber, the
proportion of increase in salaries shall not exceed the proportion of increase in performance and profit
growth.
Salary and its changes based on position, ability and performance: The salary of employee shall be
determined by position and the depth of their expertise. The salary shall be adjusted accordingly
when the position, ability and performance change.
Performance orientation, bonus and forfeit: Performance assessment is conducted according to the
actual contributions of employees, and the salary distribution is inclined to the employees with
excellent performance.
The principle of equal wage negotiation: Abide by the principles that both sides of labor and capital
agree in collective negotiation, so as to realize the unity of benefit and fairness.
In 2025, the Company continued to promote the improvement of talent capabilities and qualities,
optimize the targeted talent development program according to the career development stages of
employees, and achieve precise talent development in different levels and grades. At the same time,
targeted at different professional lines, the Company horizontally designed "Elite Program" training,
and strove to create a large number of elite employees who would be rooted in various fields.
Sail Program: The "Sail Program" training was conducted for new employees. The implemented
training involved four stages: general ability training, marketing practical training, business capability
enhancement training, and career planning. The purpose of this program is to enhance new
employees' understanding and recognition of the Company's core values, and familiarize them with
the Company's production and operation so that they can settle in well.
Dive Program: The “Dive Program” is designed for general employees. With the focus on introductory
courses such as corporate culture and what employees should know and be able to do, office skills,
professional ethics, etc., the purpose of this program is to strengthen what employees should know
and be able to do, enhance the accumulation of professional knowledge, improve employees’
competence, and improve work performance.
Speed Navigation Program: This program is aimed at grassroots backbones, focusing on improving
work efficiency, solving complex problems, communication reporting and horizontal collaboration, etc.
Adopting a model of online learning map plus offline empowerment, this program aims to consolidate
professional knowledge and skills, expand general qualities and capabilities, enhance professional
problem-solving capabilities, improve employees’ competence, and improve work performance.
Voyage Program: The “Voyage Program” training was conducted for key personnel with a systematic
design of three-year development plans and a focus on three themes, including “self-management”,
“work management” and “interpersonal management”. The purpose was to optimize employees’
knowledge structure, improve their professional capabilities, and enhance their strategic
understanding and abilities of work and team management.
Steering Program: The “Steering Program” training was conducted for middle-level management
personnel and department experts and focused on the development of all employees and newly
promoted middle-level management personnel in the form of online and offline trainings combined, as
well as “coming in” and “going out” combined. Through the learning of advanced management
concepts and practices, the training aimed to drive employees to broaden their mind, expand their
vision, strengthen their leadership skills and enhance their level of corporate management.
Elite Program: Targeting employees from different professional lines of the Company, the Company
focused on training programs for digital, human resources, administration, and other professional
lines. Model learning, external training, and introduction of teaching staff were employed to improve
the professional level of employees.
In addition, in terms of technical talent training, in combination with the relevant provincial and
municipal policies and the Company’s strategic needs of talent development, the Company
strengthens study on skilled worker development policies, fully promotes the “New Eight Grades of
Employees”, obtains qualification accreditation credentials for electricians and fitters, and
continuously carries out external and independent professional title evaluation, skill certification,
selection of outstanding employees, etc. Meanwhile, it continues to deepen the "Laojiao Skilled
Worker Action", a special task for reforming the building of the industrial workforce, and strengthen
the training, appraisal and incentives for industrial workers.
? Applicable ? N/A
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy, in
the reporting period.
? Applicable ? N/A
A. According to the 2024 Interim Dividend Plan approved at the First Extraordinary Meeting of
Shareholders in 2025, based on its total 1,471,951,503 shares, the Company distributed a cash
dividend of CNY 13.58 (tax inclusive) per 10 shares to all shareholders. The distribution plan was
implemented on January 24, 2025.
B. According to the 2024 Final Dividend Plan approved at the 2024 Annual Meeting of Shareholders,
based on its total 1,471,951,503 shares, the Company distributed a cash dividend of CNY 45.92 (tax
inclusive) per 10 shares to all shareholders. The distribution plan was implemented on August 8,
A special statement of the policy of cash dividends
Whether it meets the requirements of the articles Yes
of corporation or the resolution of a meeting of
shareholders:
Whether the standard and proportion of dividends
Yes
are clear:
Whether the relevant decision-making process and
Yes
systems are complete:
Whether non-executive directors perform their
Yes
duties and play their due role:
If the Company has no dividend plan, it should
disclose the specific reasons and the next steps it N/A
intends to take to enhance investor returns
Whether the minority shareholders have the
opportunity to fully express their opinions and
Yes
appeals and whether their legitimate rights and
interests have been adequately protected:
Whether the conditions and procedures are
compliant and transparent and whether the cash N/A
dividend policy is adjusted or changed:
The Company made a profit in the reporting period and the profit distributable to shareholders of the
Company was positive, but it did not put forward a preliminary plan for cash dividend distribution to
shareholders.
? Applicable ? N/A
Preliminary plan for profit distribution and converting capital reserves into share capital for the
reporting period
? Applicable ? N/A
Bonus shares for every 10 shares (share) 0
Dividends for every 10 shares (CNY) (tax included) 44.17
Total shares as the basis for the preliminary plan for profit
distribution (share)
Total cash dividends (CNY) (tax included) 6,501,567,650.57
Cash dividends in other forms (e.g. repurchase share) 0.00
Total cash dividends (CNY) (including other forms) 6,501,567,650.57
Distributable profit (CNY) 31,070,237,008.89
Percentage of cash dividends in the total distributed profit
(including other forms)
Information of the cash dividends
The development stage of the Company is mature and the Company has no major fund expenditure arrangement.
When the profit distribution is carried out, the proportion of cash dividends in this profit distribution should at least
reach 80%.
Details of preliminary plan for profit distribution and converting capital reserves into share capital
On January 30, 2026, based on its total existing share capital of 1,471,941,963 shares, the Company carried out the
cash dividend payout for 2025 would be CNY 8,500,464,836.32 (tax inclusive), accounting for approximately 78.48%
of the net profits attributable to shareholders of the Company in 2025.
ownership plan or other incentive measures for employees
? Applicable ? N/A
A. On September 26, 2021, relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were reviewed and approved at the
Seventh Meeting of the 10th Board of Directors and the Third Meeting of the 10th Board of Supervisors
of the Company, respectively.
B. On December 2, 2021, the Company received the Approval of Luzhou State-owned Assets
Supervision and Administration Commission on the Implementation of the Second Phase of the Equity
Incentive Plan for Listed Companies by Luzhou Laojiao Co., Ltd. (L.G.Z.K.P. [2021] No. 62) from the
Luzhou State-owned Assets Supervision and Administration Commission, which approved in principle
to the implementation of the Restricted Share Incentive Plan by the Company.
C. On December 24, 2021, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees of the 2021 Restricted Share
Incentive Plan.
D. On December 29, 2021, the relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co., Ltd. were reviewed and approved at the
First Extraordinary Meeting of Shareholders of 2021. Meanwhile, a self-inspection on the trading of the
Company's shares by insiders of the Incentive Plan and the proposed awardees was conducted, and
the Self-Inspection Report on the Trading of the Company's Shares by Insiders and Awardees in the
E. On December 29, 2021, the Company held the 12th Meeting of the 10th Board of Directors and the
Sixth Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant
of Restricted Shares to Awardees respectively. The independent directors consented to the relevant
matters.
F. On February 21, 2022, the Company disclosed the Announcement on the Completion of Registration
of Restricted Share Grant, completed the registration of the first grant of restricted shares. Upon the
registration of the grant, 6,862,600 restricted shares were granted to 437 objects, the grant price was
CNY 92.71 per share and the listing date was February 22, 2022.
G. On July 25, 2022, the Company held the 18th Meeting of the 10th Board of Directors and the Ninth
Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.
H. On August 5, 2022, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
I. On September 2, 2022, the Company held the 22nd Meeting of the 10th Board of Directors and the
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal on
the Adjustment of the Granted Price of Reserved Restricted Shares of 2021 Restricted Share Incentive
Plan were reviewed and approved respectively. In accordance with the relevant provisions of the
incentive plan of the Company and the authorization of the First Extraordinary Meeting of Shareholders
of 2021, the Board of Directors of the Company agreed to adjust the grant price and repurchase price of
the reserved restricted shares under the incentive plan from CNY 92.71 per share to CNY 89.466 per
share in view of the implementation of the Company's profit distribution plan for 2021. The independent
directors consented to this matter.
J. On September 3, 2022, the Company disclosed the Announcement on the Repurchase and
Retirement of Certain Restricted Shares to Reduce Registered Capital and Notice to Creditors. By the
expiration of the declaring period, the Company had not received any declaration from the relevant
creditors for early payout of debts or provision of guarantee.
K. On September 26, 2022, the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares, 342,334 restricted shares
were granted to 46 awardees, the grant price was CNY 89.466 per share and the listing date was
September 28, 2022.
L. On November 29, 2022, the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. The Company proposed to repurchase and
cancel a total of 62,310 restricted shares granted but not lifted from restricted sales. As at November 29,
M. On December 29, 2022, the Company held the 26th Meeting of the 10th Board of Directors and the
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.
N. On January 13, 2023, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
O. On February 16, 2023, the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares, 92,669 restricted shares were
granted to 17 awardees, the grant price was CNY 89.466 per share and the listing date was February
P. On January 23, 2024, the Company held the 38th Meeting of the 10th Board of Directors and the
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal on
the Satisfaction of Unlocking Conditions for the First Unlocking Period of the 2021 Restricted Share
Incentive Plan were reviewed and approved respectively. The Company's Board of Supervisors issued
a review opinion, and the law firm and the independent financial advisor issued a legal opinion and the
independent financial advisor’s report respectively.
Q. On February 22, 2024, the Company disclosed the Reminder Announcement on Unlocked Shares in
the First Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public Trading.
As such, the unlocked restricted shares in the first unlocking period of the 2021 Restricted Share
Incentive Plan were allowed for public trading on February 22, 2024.
R. On June 4, 2024, the Proposal on the Repurchase and Retirement of Certain Restricted Shares was
reviewed and approved at the 40th Meeting of the 10th Board of Directors and the 22nd Meeting of the
Board of Supervisors, respectively. On June 5, the Company disclosed the Announcement on the
Repurchase and Retirement of Certain Restricted Shares to Reduce Registered Capital and Notice to
Creditors. By the expiration of the declaring period, the Company had not received any declaration from
the relevant creditors for early payout of debts or provision of guarantee.
S. On August 14, 2024, the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at August 14, 2024, the Company
completed the repurchase and retirement of 21,266 restricted shares.
T. On September 23, 2024, the Company held the Fourth Meeting of the 11th Board of Directors and
the Third Meeting of the 11th Board of Supervisors, at which the Proposal on the Satisfaction of
Unlocking Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021
Restricted Share Incentive Plan and the Proposal on the Repurchase and Retirement of Certain
Restricted Shares and the Adjustment of Repurchase Price were reviewed and approved respectively.
The Company's Board of Supervisors issued a review opinion, and the law firm issued a legal opinion.
U. On September 28, 2024, the Company disclosed the Reminder Announcement on Unlocked Shares
in the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted Share
Incentive Plan Being Allowed for Public Trading. As such, the unlocked restricted shares in the first
unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan were
allowed for public trading on October 9, 2024.
V. On December 18, 2024, the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at December 18, 2024, the Company
completed the repurchase and retirement of 15,000 restricted shares.
W. On January 21, 2025, the Company held the Eighth Meeting of the 11th Board of Directors and the
Sixth Meeting of the 11th Board of Supervisors, at which the Proposal on the Satisfaction of Unlocking
Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted
Share Incentive Plan and the Proposal on the Satisfaction of Unlocking Conditions for the Second
Unlocking Period of the 2021 Restricted Share Incentive Plan were reviewed and approved respectively.
X. On February 14, 2025, the Company disclosed the Reminder Announcement on Unlocked Shares in
the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted Share
Incentive Plan Being Allowed for Public Trading. As such, the unlocked restricted shares in the first
unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan were
allowed for public trading on February 17, 2025.
Y. On February 21, 2025, the Company disclosed the Reminder Announcement on Unlocked Shares in
the Second Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public
Trading. As such, the unlocked restricted shares in the second unlocking period of the 2021 Restricted
Share Incentive Plan were allowed for public trading on February 24, 2025.
Z. On September 16, 2025, the Company held the 15th Meeting of the 11th Board of Directors, at which
the Proposal on the Satisfaction of Unlocking Conditions for the Second Unlocking Period of the
Reserved Restricted Shares under the 2021 Restricted Share Incentive Plan and the Proposal on the
Repurchase and Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price
were reviewed and approved. On September 17, the Company disclosed the Announcement on the
Repurchase and Retirement of Certain Restricted Shares to Reduce Registered Capital and Notice to
Creditors. By the expiration of the declaring period, the Company had not received any declaration from
the relevant creditors for early payout of debts or provision of guarantee.
AA. On September 26, 2025, the Company disclosed the Reminder Announcement on Unlocked
Shares in the Second Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted
Share Incentive Plan Being Allowed for Public Trading. As such, the unlocked restricted shares in the
second unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive
Plan were allowed for public trading on September 29, 2025.
BB. On November 22, 2025, the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at November 22, 2025, the Company
completed the repurchase and retirement of 9,540 restricted shares.
CC. On February 4, 2025, the Company held the 21st Meeting of the 11th Board of Directors, at which
the Proposal on the Satisfaction of Unlocking Conditions for the Second Unlocking Period of the
Reserved Restricted Shares under the 2021 Restricted Share Incentive Plan and the Proposal on the
Satisfaction of Unlocking Conditions for the Third Unlocking Period of the 2021 Restricted Share
Incentive Plan were reviewed and approved.
DD. On February 13, 2026, the Company disclosed the Reminder Announcement on Unlocked Shares
in the Third Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public
Trading. As such, the unlocked restricted shares in the third unlocking period of the 2021 Restricted
Share Incentive Plan were allowed for public trading on February 24, 2026.
Equity incentives for directors and senior management
? Applicable ? N/A
Unit: share
Exerci
se
price Restric
Stock Market Restric
Stock Exerci Exerci for Stock ted Restric
option price Grant ted
option sable sed exerci option shares Unlock ted
s held at the price shares
s share share sed s held held at ed shares
at the end of of the held at
grante option option share at the the shares grante
Office beginn the restrict the
Name d in s for s in option end of beginn in the d in
title ing of reporti ed end of
the the the s in the ing of reporti the
the ng shares the
reporti reporti reporti the reporti the ng reporti
reporti period (CNY/ reporti
ng ng ng reporti ng reporti period ng
ng (CNY / share) ng
period period period ng period ng period
period share) period
period period
(CNY /
share)
Chair
Liu man of
Miao the
board
Direct
or,
Lin Gener
Feng al
manag
er
Deput
y
Shen
genera
Caiho 46,020 23,010 92.71 23,010
l
ng
manag
er
Xie
CFO 46,020 23,010 92.71 23,010
Hong
Deput
y
He genera
Cheng l
manag
er
Direct
or,
Deput
Zhang y
Suyi genera
l
manag
er
Direct
or,
Deput
Xiong
y
Pingtin 37,680 18,840 92.71 18,840
genera
g
l
manag
er
Deput
y
genera
l
Li manag
Yong er,
Secret
ary of
the
board
Deput
y
Zhao
genera
Bingku 18,000 9,000 92.71 9,000
l
n
manag
er
Total -- 0 0 0 0 -- 0 -- 0 --
Appraisal mechanism and incentives for senior management
For details, please refer to the 2021 Restricted Share Incentive Plan (Draft) and Summary of Luzhou
Laojiao Co., Ltd., the Performance Appraisal Methods for the 2021 Restricted Share Incentive Plan of
Luzhou Laojiao Co., Ltd., and the Management Methods for the 2021 Restricted Share Incentive Plan
of Luzhou Laojiao Co., Ltd., which have been disclosed by the Company on www.cninfo.com.cn on
September 26, 2021.
? Applicable ? N/A
? Applicable ? N/A
during the reporting period
During the reporting period, in accordance with the Basic Rules for Internal Control of Enterprises,
relevant laws, administrative regulations, normative documents, and other regulatory requirements
concerning internal control, as well as the reality of the Company, the Company consistently improved
and optimized its internal control systems and established a well-developed system that covered the
corporate governance, administrative management, operations management, financial management,
human resources, production guarantee, and safety and environmental protection. Additionally, it
strengthened the implementation, supervision, inspection, feedback, and improvement of the internal
control systems in the operations management to ensure that each internal control system is
reasonable, complete, and effective, thereby promoting the sound, sustainable development of the
Company.
□ Yes ? No
reporting period
Problems Solution
Consolidation Consolidation Subsequent
Company name arising in Solutions taken implementation
plan progress solutions
consolidation progress
N/A
Anomalies found in the management and control of subsidiaries
□ Yes ? No
Disclosure date of the internal control
April 29, 2026
assessment report
Disclosure index of the internal control
assessment report
Ratio of the total assets of the
appraised entities to the consolidated 90.00%
total assets
Ratio of the operating revenues of the 90.00%
appraised entitles to the consolidated
operating revenue
Deficiencies identification standard
Type Financial report Non-financial report
Material deficiencies：（1）violate
Material deficiencies：（1）Correction national regulations and laws；（2）
of material errors in financial reports that The Company’s decision-making
have been announced (except procedures are unscientific；if there
retroactive adjustment of previous years is a decision-making misplay, it will
due to changes in policies or other result in significant deal failure; （3）
objective factors)；（2）Material The substantial loss of managerial or
Qualitative standard misstatement of current financial report technical staff；（4）Important
which was unrecognized but found by business lacks system control or
the auditor；（3） Corrupt transaction system failure, important economic
of senior management；（4）Audit business has internal control system
committee and internal audit department guidance, but with no effective
are not effective in the internal control operation；（5）material
supervision . deficiencies of internal control cannot
be rectified in time.
of total assets；Misstatement ≥ 5% of
total operating revenue；Misstatement
≥5% of owner's equity
profits≤Misstatement<5% of gross
profits；0.5% of total 1. Material deficiencies：loss≥5% of
assets≤Misstatement<1% of total net profits.
assets；3% of total operating 2. Significant deficiencies：3% of net
Quantitative standard
revenue≤Misstatement<5% of total profits≤ loss＜5% of net profits.
operating revenue；3% of owner's 3. General deficiencies：loss＜3% of
equity≤Misstatement<5% of owner's net profits
equity.
Misstatement<3% of gross profits；
Misstatement<0.5% of total assets；
Misstatement<3% of total operating
revenue；Misstatement<3% of owner's
equity.
Number of financial-report material
deficiencies
Number of non-financial-report material
deficiencies
Number of significant financial-report
related deficiencies
Number of significant Non-financial-
report related deficiencies
? Applicable ? N/A
Deliberation opinion section in the internal control audit report
Luzhou Laojiao Co., Ltd. maintained, in all material respects, effective internal control over financial reporting as of
December 31, 2025, based on the Basic Rules on Enterprise Internal Control and other applicable regulations.
Disclosure of internal control audit report Disclosed
Disclosure date of the internal control audit report April 29, 2026
Disclosure index of the internal control audit report
(http://www.cninfo.com.cn/)
Type of the audit’s opinion Standard unqualified opinion
Significant deficiencies found in the non-financial report No
The accounting firm issued the internal control audit report of non-standard opinions
? Yes ? No
Whether the internal control audit report issued by the accounting firm is consistent with the self-
assessment report issued by the board of directors.
? Yes ? No
Whether the Company was issued any modified opinion by the independent auditor on its internal
control for the reporting period or last year
? Yes ? No
Campaign on Listed Company Governance
None.
Whether the listed company or any of its major subsidiaries is included in the list of companies that
are required by law to disclose environmental information.
? Yes □ No
Number of companies included in the list of companies that are required by
law to disclose environmental information
Index to the report on required
No. Company
environmental information
https://tftb.sczwfw.gov.cn:8085/jmope
npub/jmopen_files/webapp/html5/qyh
jxxyfpl/index.html#/fillIn/now-
fill/year/ndbg
See the 2025 Environmental, Social and Governance (ESG) Report disclosed on the same day with
this Annual Report.
In 2025, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a
New Era, the Company upheld its corporate philosophy of “Baijiu for the World, a Shared Future”.
Following the principle of “what society needs is what the enterprise can provide”, the Company
focused on foundational assistance for Hongyuan County and targeted assistance for Guntang
Village in Hongyuan County, Xiangtian Village in Gulin County, and Hongdongqiao Village and
Baiyang Village in Xuyong County. It advanced assistance initiatives in a systematic manner, striving
to further strengthen the foundations, invigorate industries, and improve living conditions in the
assisted areas, thereby demonstrating the mission and responsibility of a state-owned enterprise in
the comprehensive advancement of rural revitalization.
In 2025, the Company adhered to a working mechanism featuring “Party Committee leadership, lead
responsibility by relevant departments, multi-party coordination, and dedicated implementation”. It
reinforced assistance responsibilities, carried out systematic planning and targeted measures, and
focused on key areas including industrial assistance, talent assistance, livelihood assistance,
organizational assistance, and cultural assistance. During the year, the Company invested a total of
CNY 13.3762 million in assistance funds and implemented various high-quality assistance projects,
effectively consolidating the achievements in poverty alleviation and injecting strong momentum into
rural revitalization.
A. Strengthen organizational leadership and reinforce assistance responsibilities
The Company has consistently regarded rural revitalization as an important political task,
incorporating it into annual key work for coordinated planning and implementation. Throughout the
year, the Company convened three Party Committee meetings and eight special work meetings to
communicate and study the guiding principles of higher-level authorities, review and approve the
refine seven categories of assistance into 19 specific measures. These efforts ensured that the
Company’s assistance work was highly aligned with the instructions of the CPC Sichuan Provincial
Committee and the People’s Government of Sichuan Province and closely matched the practical
needs of the assisted areas. Members of the Company’s leadership team made seven visits to the
frontline of assistance work, including Guntang Village in Hongyuan County and Hongdongqiao
Village in Xuyong County, to conduct research and provide guidance. They coordinated on site to
resolve four difficult issues and bottlenecks related to industrial development and infrastructure
construction. The Company selected six politically reliable and highly capable young employees to
serve full-time as resident village cadres. It fully implemented mechanisms for compensation, benefits,
care, and support, ensuring that these cadres could settle in, stay committed, and perform effectively,
and truly serve as the “vanguard” and “liaisons” for rural revitalization.
B. Deepen industry-based assistance and broaden income channels
The Company continued to regard industry-based assistance as the core means of enhancing the
self-sustaining development capacity of assisted areas. First, the Company strengthened project
support. It invested dedicated funds to support the construction of the Integrated Information Service
Center for the Live Livestock Trading Market in Hongyuan County and established a joint working
group composed of 17 outstanding mid-level managers and key business personnel to follow up
throughout the process. These efforts helped build a demonstration trading market with strong
practicality and a high level of digitalization. Second, the Company activated the courtyard economy.
It distributed more than 9,000 chicks to nearly 600 farming households in assisted villages such as
Xiangtian Village in Gulin County and Baiyang Village in Xuyong County and coordinated
cooperatives to purchase the poultry under unified arrangements. This helped increase average
household income by approximately CNY 1,700, turning “courtyard farming” into a “micro-factory” for
villagers to increase income and become better off. Third, the Company broadened sales channels. It
continued to carry out initiatives that “replace donations with purchases” and “create wealth through
sales”. During the year, the Company directly purchased CNY 1.2462 million worth of specialty
products from Hongyuan County, including yak jerky and yak milk powder. It also incorporated
Hongyuan organic yak milk into trade union activity rewards, purchasing a total of 2,000 units worth
CNY 130,000. These efforts helped create a positive development model featuring “corporate support,
collective income, and household income growth”. Fourth, the Company carried out matrix-style
assistance. Leveraging its professional strengths, the Company proactively undertook the testing and
inspection of Jinchuan Snow Pear Brandy. It organized seven national-level liquor tasters to conduct
sensory evaluation and completed testing of 31 physicochemical indicators for four samples, helping
move the deep processing of Jinchuan County’s specialty agricultural products from the laboratory
toward industrialization.
C. Strengthen talent development and stimulate endogenous momentum
The Company combined knowledge-based support with aspiration-building support and used talent
development as a key lever to continuously strengthen the endogenous development momentum of
assisted areas. First, the Company carried out skills training. It invested CNY 100,000 to hold the “E-
commerce Talent Training Program for Foundational Assistance at the Party School of the CPC
Hongyuan County Committee”. In response to the pain points in the development of Hongyuan
County’s specialty industries, the Company organized senior experts to provide full-chain instruction
to 40 trainees and implemented an entrepreneurship incentive program, helping 11 young people
from Tibetan areas start businesses and increase income. Second, the Company deepened
employment assistance. In partnership with three enterprises, including Hongyuan Yak Dairy
Company, the Company provided job opportunities for 19 unemployed young people. It also worked
with village Party branch committees and villagers’ committees to develop four categories of public-
interest positions related to environmental improvement and other work, helping more than 20
members of the poverty-alleviated workforce secure employment and effectively addressing
employment difficulties among key groups. Third, the Company advanced education assistance. It
continued to implement the “Pillars Project” student assistance program, providing financial support
during the year to help 29 disadvantaged college freshmen from Guntang Village and Xiangtian
Village pursue higher education. It also donated sports equipment, including basketballs and
badminton sets, to Maiwa Primary School in Hongyuan County, providing strong support for students
on the plateau to build physical fitness and grow in good health.
D. Strengthen livelihood support and deliver care with warmth
The Company has always regarded livelihood improvement as the starting point and ultimate goal of
its assistance work. First, the Company provided care and support. It invested CNY 180,000 to
donate blankets, wheat flour, edible oil, and other supplies to disadvantaged residents, helping
address their practical difficulties. Second, the Company implemented lighting projects. In response
to infrastructure shortcomings in assisted villages, it introduced dedicated funds to donate and install
Covering main roads and concentrated residential areas, the project effectively addressed the lack of
lighting for residents traveling at night and illuminated a “road to happiness” for rural revitalization.
Third, the Company strengthened the foundation for people’s livelihoods. It assisted in organizing
lectures and free clinics on the prevention and treatment of common diseases in plateau areas,
dynamic inspections of housing safety, water source protection awareness campaigns, and water
quality testing. These efforts continued to help improve the level of the “three guarantees” and
drinking water safety, and effectively enhanced the sense of gain, happiness, and security among
residents in the assisted areas. Fourth, the Company helped preserve a distinctive culture. It invested
CNY 35,000 to support assisted villages in holding festival activities and distinctive local cultural
activities, promoting the wider dissemination and orderly preservation of intangible cultural heritage
such as Baiwang playing and singing and Tibetan opera. These efforts enriched the cultural life of
local residents and improved the overall spirit of the villagers.
E. Innovate assistance mechanisms and deepen joint organizational development
First, the Company actively explored a long-term assistance model “combining public welfare funds
with rural revitalization”. In 2025, together with the China Foundation for Rural Development, it
established the “Luzhou Laojiao Rural Revitalization Public Welfare Fund”. Focusing on areas such
as rural industry assistance and the cultivation of rural artisans, the fund systematically carries out
public welfare projects and provides lasting momentum for rural revitalization. In 2025, the Company
completed a donation of CNY 5 million. Second, the Company deepened Party building partnerships
and co-development. It organized grassroots Party organizations of the Company to carry out paired
co-development activities with the Party branch of Guntang Village, donated supporting facilities such
as conference tables and chairs to help build a standardized Party member activity room, and
effectively strengthened the role of grassroots Party organizations as strong fighting fortresses and
the pioneering and exemplary role of Party members through discussions, film-based learning, and
visits to Party members in difficulty.
In 2026, the Company will continue to follow the guidance of General Secretary Xi Jinping’s important
expositions and instructions on work related to agriculture, rural areas and farmers and fully
implement the decisions and arrangements of the CPC Central Committee, the State Council, the
CPC Sichuan Provincial Committee, the People’s Government of Sichuan Province, the CPC Luzhou
Municipal Committee and the People’s Government of Luzhou Municipality on comprehensively
advancing rural revitalization. On the basis of systematically summarizing the effectiveness of
assistance work in 2025 and reviewing existing issues, the Company will also focus on the
development needs of the assisted areas, continue to consolidate and expand the achievements of
poverty alleviation, advance all aspects of rural revitalization with more practical measures and better
methods, and continue to contribute as a state-owned enterprise.
A. The Company will continue to deepen industry-based assistance. Focusing on distinctive
resources such as Hongyuan Maiwa yaks and guided by the park-based and standardized
development of agricultural and animal husbandry industries, the Company will strengthen the role of
the joint project working group and accelerate the implementation of the Integrated Information
Service Center for the Live Livestock Trading Market in Hongyuan County, helping drive the
transformation and upgrading of modern animal husbandry. The Company will also work to extend
the industrial chains and build the brands of specialty agricultural and livestock products in the
assisted areas, continue to deepen the initiatives of “replacing donations with purchases and creating
wealth through sales”, explore innovative mechanisms that organically integrate trade union activities
with consumption-based assistance, and further broaden sales channels.
B. The Company will continue to strengthen talent support. The Company will regard the cultivation of
local talent as an effective way to enhance the knowledge base and development quality of the
assisted areas. It will strengthen follow-up services for e-commerce training and strive to train a group
of rural e-commerce talent capable of promoting and selling local products for Hongyuan County. In
cooperation with professional institutions, the Company will carry out skills training in modern
agricultural technology, rural tourism management, business operation and management, and other
fields, promoting stable employment through capability improvement. It will further deepen
employment assistance pathways, including enterprise-to-enterprise cooperation and the provision of
village-level public-interest jobs, provide more job opportunities for unemployed people, and continue
to stimulate the endogenous momentum of the assisted areas.
C. The Company will continue to strengthen the foundation of people’s livelihoods. Focusing on the
urgent concerns and practical difficulties of local residents, the Company will help the assisted
villages continuously improve infrastructure conditions related to roads, drinking water, housing, and
other areas. It will work with local Party committees and governments to carry out dynamic monitoring
and targeted assistance to prevent people from falling back into poverty, and firmly safeguard the
bottom line of preventing a large-scale relapse into poverty. The Company will also further carry out
the practical initiative of “I do practical things for the public” and regularly conduct activities such as
student assistance, visits and care for people in need, free medical consultations, and volunteer
services, continuously improving people’s sense of gain, happiness, and security.
D. The Company will continually empower rural governance. The Company will deepen the
mechanism for Party building partnerships and co-development, support the assisted villages in
strengthening grassroots Party organizations, and improve the modernization of governance
capabilities. With the practice of Core Socialist Values as the guiding principle, the Company will
support mass cultural activities and initiatives to promote cultural and ethical advancement,
encourage the transformation of outdated customs and practices, and foster a civilized rural culture,
good family traditions, and simple, honest social customs.
Section V Significant Events
and acquirer, as well as the Company and other commitment makers fulfilled in
the reporting period or ongoing by the end of this reporting period
? Applicable ? N/A
Date of
Type of Term of
Commitment Promisor Details of commitment commitment Fulfillment
commitment commitment
making
Laojiao Group plans to
increase its holdings of
the Company's shares
through call auction
trading, using a special
loan for the shareholding
increase and own funds,
within 6 months from
March 14, 2025, with the
amount of increase not
Other Other less than CNY 150
Laojiao March 14, Having
commitment commitment million and not more than 6 months
Group 2025 expired
s s CNY 300 million. Laojiao
Group has promised not
to reduce its holdings of
the Company's shares
during the increase
period and the statutory
period, and will complete
the implementation of the
increase plan within the
above implementation
period.
Executed on
Yes
time or not
projects and the reporting period is still within the forecast period, the Company
shall explain whether the performance of the asset or project reaches the earnings
forecast and reasons
? Applicable ? N/A
? Applicable ? N/A
its related parties for non-operating purposes
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
standard audit opinion"
? Applicable ? N/A
any) regarding the "non-standard audit opinion" for the reporting period
? Applicable ? N/A
as well as correction of major accounting errors compared to the
financial report for the prior year
? Applicable ? N/A
No such cases in the reporting period.
compared to the financial report for the prior year
? Applicable □ N/A
In August 2025, the Company invested in and established a wholly-owned subsidiary, namely Luzhou
Laojiao Cultural Tourism Development Co., Ltd.
CPA firm at present
Name of the domestic CPA firm ShineWing Certified Public Accountants
The Company’s payment for the domestic CPA
firm (CNY 10,000)
Consecutive years of the audit service provided
by the domestic CPA firm
Names of the certified public accountants from
Wang Xiaodong, Ouyang Lihua
the domestic CPA firm
Consecutive years of the audit service provided Wang Xiaodong: 1 year
by the certified public accountants Ouyang Lihua: 2 years
Whether the CPA firm was changed in the current period
? Yes ? No
Engagement of any CPA firm for internal control audit, financial advisor or sponsor
? Applicable ? N/A
The Company appointed ShineWing Certified Public Accountants as the internal control auditor for
this year. The remuneration of audit in total paid by the Company was CNY 440 thousand.
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
The Company The second For the losses The Company
filed a lawsuit trial has been that the applied to October 15, http://www.cni
with ABC 14,942.5 No concluded, Company Hunan 2014 nfo.com.cn/
Changsha and the case cannot Province
Yingxin is now at the recover Higher
Branch over a stage of through People's Court
deposit enforcement. criminal for
dispute, and execution enforcement
the case has procedures, of the verdict.
been 40% shall be Hunan
completed in borne by ABC Province
the first Changsha Higher
instance of Yingxin People's Court
Hunan Branch, 20% ruled that
Province shall be borne Hunan
Higher by ABC Changsha
People's Court Changsha Intermediate
and the final Hongxin People’s Court
trial of the Branch and should see to
Supreme the rest shall the execution
People's be borne by of the verdict.
Court. The the Company Upon the
case is now at itself. enforcement,
the stage of the banks
enforcement. have paid part
of the
compensation
s.
? Applicable ? N/A
No such cases in the reporting period.
shareholder and actual controller
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
interests
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
The Company did not make deposits in, receive loans or credit from and was not involved in any
other finance business with any related finance company or any of its related parties.
related parties
? Applicable ? N/A
No related parties made deposits in, received loans or credit from or was involved in any other
finance business with any finance company controlled by the Company.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
Entrusted asset management during the reporting period
Unit: CNY 10,000
Entrusted asset
Overdue outstanding
Product type Risk characteristic management balance
amount
during the reporting period
Wealth management
R2 (medium-low risk) 140,000 0
product of securities firm
Wealth management
R2 (medium-low risk) 10,000 0
product of bank
Others R3 (medium risk) 10,000 0
Asset management entrusted by the Company as a single principal to financial institutions, or high-
risk entrusted asset management investments with low security or poor liquidity
? Applicable ? N/A
Unit: CNY 10,000
Name Actual
Type of
of Actual recover
entruste Fund Overvie
entruste gain/los y of
d Risk investm w and
d Product Start End s during gain/los
institutio charact Amount ent inquiry
institutio type date date the s during
n (or eristic directio index (if
n (or reportin the
individu n any)
individu g period reportin
al)
al) g period
The
Asset
product
manage
Guotai s did
R2 ment
Haitong Septem March not
Securiti (mediu product Debt
Securiti 1,000 ber 26, 26, mature
es m-low issued assets
es Co., 2025 2026 during
risk) by
Ltd. the
securiti
reportin
es firm
g
period,
and
there
was no
actual
amount
recover
ed.
The
product
s did
not
mature
Asset
during
manage
Guotai the
R2 ment
Haitong October April reportin
Securiti (mediu product Debt
Securiti 29,000 13, 13, g
es m-low issued assets
es Co., 2025 2026 period,
risk) by
Ltd. and
securiti
there
es firm
was no
actual
amount
recover
ed.
The
product
s did
not
mature
Asset
during
manage
Guotai the
R2 ment
Haitong Novem reportin
Securiti (mediu product May 10, Debt
Securiti 1,000 ber 10, g
es m-low issued 2026 assets
es Co., 2025 period,
risk) by
Ltd. and
securiti
there
es firm
was no
actual
amount
recover
ed.
The
product
s did
not
Asset mature
manage during
Guotai
R2 ment the
Haitong Novem
Securiti (mediu product May 18, Debt reportin
Securiti 19,000 ber 18,
es m-low issued 2026 assets g
es Co., 2025
risk) by period,
Ltd.
securiti and
es firm there
was no
actual
amount
recover
ed.
The
product
s did
not
mature
China Asset
during
CICC manage
the
Wealth R2 ment
Novem reportin
Manage Securiti (mediu product May 25, Debt
ment es m-low issued 2026 assets
Securiti risk) by
and
es Co., securiti
there
Ltd. es firm
was no
actual
amount
recover
ed.
Total 70,000 -- -- -- 0 -- --
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
? Applicable ? N/A
Unit：CNY 10,000
Total Accum Raised Total Total Accum Total Purpo Amou
Date Total amoun ulated funds amoun amoun ulated amoun se and nt of
of amoun Net t of amoun used t of re- t of re- t of directi funds
Metho
Year securit t of procee raised t of as % purpos accum purpos unuse on of raised
d
ies funds ds (1) funds raised of total ed ulated ed d unuse idle for
listing raised used funds raised funds re- funds funds d more
in the used funds raised purpos raised raised funds than
reporti (2) at the in the ed as % raised two
ng end of reporti funds of total years
period the ng raised funds
reporti period raised
ng
period
(3) =
(2) /
(1)
Deposi
Public
ted in
offerin
March special
g of 150,00 149,40 14,054 150,49 100.74 7,044.
corpor 0 0 .57 8.8 % 49
ate
raised
bond
funds
Total -- -- 0 0 0.00% -- 0
Notes for general use of funds raised:
The total amounts of used and unused funds raised of the corporate bond “20 Laojiao 01” included
interest on some funds raised.
? Applicable ? N/A
Unit：CNY 10,000
Date
Whet
of the Cumu Whet
Com her Accu Invest Whet
Total projec lative her
mitted the mulat ment Realiz her
amou Invest ts realiz the
invest projec Adjust ed progr ed the
nt of ment reach ed feasib
Date ment t has ed input ess benefi expec
Finan funds Invest amou the benefi ility of
of projec Projec been ment by the by the ts ted
cing raised nt in worki ts by the
securi ts and t chang total end of end of during benefi
projec for amou the ng the projec
ties directi nature ed the reporti the ts
t comm nt reporti condit end of t has
listing on of (inclu reporti ng reporti have
itted (1) ng ion for the chang
over- ding ng period ng been
invest period their reporti ed
raised partial period (3)＝ period achie
ment intend ng signifi
funds chang (2) (2)/(1) ved
ed period cantly
e)
use
Committed investment projects
Public ical
Offeri Reno Produ
ng of March vation ction June
Corpo 17, Projec and No 30, N/A N/A Yes No
rate 2020 t of constr 2021
Bond Baijiu uction
for Produ
Qualifi ction
ed (Phas
Invest e II)
ors
Projec
t of
Intelli
gent
Public
Upgra
Offeri
ding
ng of Opera
and
Corpo tion Dece
March Buildi
rate and 4,912. 24,74 mber
Bond mana 04 2.29 31,
for geme 2026
Inform
Qualifi nt
ation
ed
Mana
Invest
geme
ors
nt
Syste
m
Projec
t of
Acquir
ing
Public
Sealin
Offeri
g
ng of
Equip Produ
Corpo
March ment ction June
rate 12,04
Bond 3.3
for
of uction
Qualifi
Huan
ed
gyi
Invest
Baijiu
ors
Produ
ction
Base
Projec
t of
Acquir
ing
Acces
Public
sory
Offeri
Equip
ng of
ment Produ
Corpo
March for ction June
rate 4,980.
Bond 25
for
Makin uction
Qualifi
g for
ed
Huan
Invest
gyi
ors
Baijiu
Produ
ction
Base
Subtotal of committed investment -- -- -- -- --
projects
Use of over-raised funds
None
Total -- -- -- 0 0 -- --
Explain project
by project the
situation and
reason for not
reaching plan
progress or
expected
benefits
N/A
(including
reason for
inputting “N/A”
for “Whether
the expected
benefits have
been
achieved”)
Significant
changes of
N/A
project
feasibility
Amount,
purpose and
progress of N/A
over-raised
funds
Unauthorized
change of the
purpose of
raised funds or N/A
illegal
occupation of
raised funds
Change of
implementation
site of N/A
investment
projects
Adjustment of
the
implementation
mode of raised N/A
funds
investment
projects
Applicable
Situation of On May 14, 2019, the Company held the First Extraordinary Meeting of Shareholders of 2019, which considered and
advance approved the Proposal on Requesting the Company’s Meeting of Shareholders to Fully Authorize Chairman of the Board
investment and or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond.
replacement According to the Proposal, in the event of inconsistency between the payment of the raised funds and the progress of the
project implementation, the Company may make advance investments using other funds (including self-owned funds, bank
project loans, etc.) according to the actual situation, and replace fund investment other than capital funds when the raised
funds are in place. As of December 31, 2025, the Company had replaced advance investments of self-pooled funds of
CNY 653,444,758.68 using the raised funds.
Idle raised
funds used for
temporary N/A
supplementary
liquidity
Amount and
reason for
N/A
surplus of funds
raised
Purpose and
whereabouts of The idle raised funds are deposited in the Company’s special account No. 631395395 for raised funds in the Chengdu
unused funds Branch of China Minsheng Banking Corp., Ltd.
raised
Problems and
other situation
when raised N/A
funds are used
and disclosed
Note 1: The subtotal of funds raised for committed projects was CNY 3,984 million, which was the
combined amount of CNY 4,000 million (CNY 2,500 million of corporate bonds issued in August 2019
plus CNY 1,500 million of corporate bonds issued in March 2020) minus the total issuance costs of
CNY 16 million.
Note 2: Because there are uncertainties in the approval and issue time for bond, in order to ensure
smooth progress of the projects and protect the interests of the Company’s shareholders, the
investment sequence and specific amounts of the corresponding raised funds should be determined
by the Chairman of the Board as authorized by the meeting of shareholders or other persons as
authorized by the Board of Directors within the scope of the four raised funds investment projects
according to the actual needs, provided that the capital funds for each project is no less than 20% of
the total investment.
Note 3: As of December 31, 2025, the Project of Intelligent Upgrading and Building of the Information
Management System was in the process.
Note 4: These raised funds investment projects have helped further expand the Company’s
production and sales, and increase its comprehensive competitiveness. The economic benefits of
these projects cannot be measured separately.
? Applicable ? N/A
No such cases in the reporting period
raised
? Applicable ? N/A
ShineWing Certified Public Accountants has performed assurance on the Company’s special report
on the deposit and use of funds raised for 2025, and the assurance opinion is set out as follows:
“We have conducted our assurance in accordance with China Standards on Other Assurance
Engagements No. 3101 — Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information, to obtain reasonable assurance that the special report on the annual deposit
and use of funds raised is free from material misstatement. In the course of performing the assurance,
we have carried out necessary assurance procedures including inquiry, inspection and recalculation
as we deem appropriate. The procedures selected depend on our professional judgment.
We believe that our assurance provides a reasonable basis for our opinion. In our opinion, the
aforesaid special report on the annual deposit and use of funds raised of Luzhou Laojiao Co., Ltd.
has been prepared in accordance with the relevant provisions of the Shenzhen Stock Exchange, and
fairly reflects, in all material respects, the actual deposit and use of the Company’s funds raised
during 2025.”
? Applicable ? N/A
A. The Company disclosed in October 2014 and January 2015 respectively the contract disputes
involving three savings deposits of CNY 500 million in total with banks including ABC Changsha
Yingxin Branch and ICBC Nanyang Zhongzhou Branch. As of the end of the reporting period, the
deposit dispute case with ICBC Nanyang Zhongzhou Branch has been concluded, the deposit
dispute case with ABC Changsha Yingxin Branch is currently in the court enforcement process, and
the Company had recovered a total amount of CNY 408 million for the three disputes.
B. On January 30, 2026, the Company carried out the 2025 interim dividend payout of CNY 13.58
(tax inclusive) for every 10 existing shares held, totaling CNY 1,998,897,185.75 (tax inclusive).
? Applicable ? N/A
The Company invested in the Technical Renovation Project of Intelligent Baijiu Production (Phase I)
with the wholly-owned subsidiary, Baijiu Production Company, as the implementer. The total
investment amount approximated CNY 4,782.5090 million. For further information, see
Announcement No. 2022-24 on the Implementation of Luzhou Laojiao’s Technical Renovation Project
of Intelligent Baijiu Production (Phase I) by Subsidiary. The program is currently under construction.
Section VI Changes in Shares and Information about
Shareholders
Unit：Share
Before Changes in this period (＋，－) After
Capitalizati
Issuance
Bonus on of
Number Proportion of new Other Subtotal Number Proportion
shares capital
shares
reserves
I.
Restricted 4,649,959 0.32% -1,973,779 -1,973,779 2,676,180 0.18%
shares
Shares
held by the
state
Shares
held by
state-
owned
corporatio
ns
Shares
held by
other
domestic
investors
Of
which:
shares
held by
domestic
corporatio
ns
Share
s held by
domestic
individuals
Shares
held by
foreign
corporatio
ns
Of
which:
shares
held by
foreign
corporatio
ns
Share
s held by
foreign
individuals
II. Non-
restricted 99.68% 1,964,239 1,964,239 99.82%
shares
common 99.68% 1,964,239 1,964,239 99.82%
shares
Domestical
ly listed
foreign
shares
Overseas
listed
foreign
shares
III. Total 1,471,951, 1,471,941,
shares 503 963
Reasons for the change in shares
? Applicable ? N/A
A. According to the provisions of the 2021 Restricted Share Incentive Plan (Draft), 37,069 restricted
shares of 17 awardees that satisfied the unlocking conditions for the first unlocking period of the
reserved restricted shares under the 2021 Restricted Share Incentive Plan, 2,022,530 restricted
shares of 434 awardees that satisfied the unlocking conditions for the second unlocking period of the
unlocking conditions for the second unlocking period of the reserved restricted shares under the 2021
Restricted Share Incentive Plan were allowed for public trading on February 17, February 24, and
September 29, 2025, respectively.
B. On September 16, 2025, the Company held the 15th Meeting of the 11th Board of Directors, at
which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and the
Adjustment of Repurchase Price was reviewed and approved. As three awardees were no longer
eligible for the incentives, the Company decided to repurchase and retire a total of 9,540 restricted
shares that had been granted to the aforesaid awardees but remained in lockup.
C. During the reporting period, due to the unlocking of restricted shares under the restricted share
incentive plan, locked shares of the Company’s senior management increased by 196,260 shares.
Approval of share changes
? Applicable □ N/A
A. On January 21, 2025, the Company held the Eighth Meeting of the 11th Board of Directors and the
Sixth Meeting of the 11th Board of Supervisors, at which the Proposal on the Satisfaction of
Unlocking Conditions for the First Unlocking Period of the Reserved Restricted Shares under the
for the Second Unlocking Period of the 2021 Restricted Share Incentive Plan were approved. As such,
period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan, and
unlocking period of the 2021 Restricted Share Incentive Plan were allowed for public trading on
February 17 and 24, 2025, respectively.
B. On September 16, 2025, the Company held the 15th Meeting of the 11th Board of Directors, at
which the Proposal on the Satisfaction of Unlocking Conditions for the Second Unlocking Period of
the Reserved Restricted Shares under the 2021 Restricted Share Incentive Plan was reviewed and
approved. 100,900 restricted shares of 45 awardees that satisfied the unlocking conditions for the
second unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive
Plan were allowed for public trading on September 29, 2025.
C. On September 16, 2025, the Company held the 15th Meeting of the 11th Board of Directors, at
which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and the
Adjustment of Repurchase Price was reviewed and approved. As three awardees were no longer
eligible for the incentives, the Company decided to repurchase and retire a total of 9,540 restricted
shares that had been granted to the aforesaid awardees but remained in lockup, which was
completed on November 22, 2025. Upon that, the total share capital of the Company decreased from
Transfer of share ownership
? Applicable ? N/A
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and the last
reporting period
? Applicable ? N/A
Other contents that the Company considers it necessary or required by the securities regulatory
authorities to disclose
? Applicable ? N/A
? Applicable □ N/A
Unit：Share
Name of Number of Increase in Decrease in Number of Reason for Date of
shareholder restricted restricted restricted restricted restriction unlocking
shares held at shares during shares during shares held at
the beginning the reporting the reporting the end of the
of the period period reporting
reporting period
period
In accordance
with the
Restricted
relevant
unlocking
Restricted the 2021
Share Restricted
the 2021
Incentive Plan Share
Restricted
Incentive Plan
Share
Incentive Plan
In accordance
with the
Restricted
relevant
Locked shares under
unlocking
shares of the 2021
senior Restricted
the 2021
management Share
Restricted
Incentive Plan
Share
Incentive Plan
Total 4,649,959 196,260 2,170,039 2,676,180 -- --
□ Applicable ? N/A
as the asset and liability structure
? Applicable □ N/A
During the reporting period, the total share capital of the Company decreased from 1,471,951,503
shares to 1,471,941,963 shares due to the repurchase and retirement of certain restricted shares.
□ Applicable ? N/A
Unit: Share
Total
Total number of
number of preferred
Total
common shareholder
number of
shareholder s with Total number of preferred
common
s at the prior resumed shareholders with resumed
shareholder
s at the end
before the by the end the reporting period (if any)
of the
disclosure of the (see Note 8)
reporting
date of the reporting
period
annual period (if
report any)(see
Note 8)
Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders (exclusive of shares lent in refinancing)
Total shares Increase/de Pledged, marked or frozen
Number of Number of
Shareholdin held by the crease shares
Name of Nature of holding holding non-
g end of the during the
shareholder shareholder restricted restricted Status of Number of
percentage reporting reporting
shares shares shares shares
period period
Luzhou
Laojiao State-owned
Group Co., corporation
Ltd.
Luzhou
XingLu
State-owned
Investment 24.86% 365,971,142 0 0 365,971,142 N/A 0
corporation
Group Co.,
Ltd.
Bank of
China Co.,
Ltd. – Baijiu
index
classification
securities Other 3.67% 53,997,775 3,162,006 0 53,997,775 N/A 0
investment
fund by
China
Merchants
Fund
Hong Kong
Securities
Outbound
Clearing 2.34% 34,514,375 -1,399,271 0 34,514,375 N/A 0
corporation
Company
Limited
China
Securities
Finance Other 2.30% 33,842,059 0 0 33,842,059 N/A 0
Corporation
Limited
Bank of Other 1.74% 25,552,600 3,302,600 0 25,552,600 N/A 0
China Co.,
Ltd.－Blue
chip
selected
hybrid
securities
investment
fund by E
Fund
China
Construction
Bank
Corporation
－Penghua
Other 1.34% 19,664,908 9,657,188 0 19,664,908 N/A 0
Wine &
Liquor
Exchange-
Traded
Fund
Guofeng
Xinghua
(Beijing)
Private
Equity Fund
Managemen
t Co., Ltd.－
Guofeng Other 1.28% 18,871,962 18,871,962 0 18,871,962 N/A 0
Xinghua
Honghuzhiy
uan Tranche
Securities
Investment
Fund No. 1
China Life
Insurance
Company
Limited –
Traditional –
Ordinary Other 1.15% 16,873,922 14,246,098 0 16,873,922 N/A 0
Insurance
Product –
CT001
(Shanghai)
Central
Huijin Asset State-owned
Managemen corporation
t Co., Ltd.
Strategic investors or
general corporations
become the top-ten
N/A
shareholders due to placing
of new shares (if any) (see
note 3)
Related parties or acting-in- 1. Luzhou Laojiao Group Co., Ltd. and Luzhou XingLu Investment Group Co., Ltd. are both state-owned
concert holding companies under the jurisdiction of SASAC of Luzhou. The two companies have signed the
agreement of persons acting in concert. For details, please refer to the announcement of the Company on
May 23, 2024 - Announcement on the Renewed Agreement of Persons Acting in Concert Signed by
Shareholders (Announcement No. 2024-22).
Ltd. and Golden Rudder collectively held 384,573,839 shares in the Company, representing 26.13% of the
total share capital of the Company.
acting in concert is unknown.
Explain if any of the
shareholders above was
involved in entrusting/being N/A
entrusted with voting rights
or waiving voting rights
Special account for
repurchased shares among
N/A
the top 10 shareholders (if
any) (see note 10)
Shareholdings of the top 10 non-restricted shareholders (exclusive of shares lent in refinancing and locked shares of senior management)
Type of shares
Name of shareholder Number of non-restricted shares held by the end of the reporting period
Type Number
CNY
Luzhou Laojiao Group Co.,
Ltd.
shares
CNY
Luzhou XingLu Investment
Group Co., Ltd.
shares
Bank of China Co., Ltd. –
CNY
Baijiu index classification
securities investment fund
shares
by China Merchants Fund
CNY
Hong Kong Securities
Clearing Company Limited
shares
CNY
China Securities Finance
Corporation Limited
shares
Bank of China Co., Ltd.－
CNY
Blue chip selected hybrid
securities investment fund
shares
by E Fund
China Construction Bank
CNY
Corporation－Penghua Wine
& Liquor Exchange-Traded
shares
Fund
Guofeng Xinghua (Beijing)
Private Equity Fund
Management Co., Ltd.－ CNY
Guofeng Xinghua 18,871,962 common 18,871,962
Honghuzhiyuan Tranche 3 shares
Private Securities
Investment Fund No. 1
China Life Insurance
CNY
Company Limited –
Traditional – Ordinary
shares
Insurance Product – 005L–
CT001 (Shanghai)
CNY
Central Huijin Asset
Management Co., Ltd.
shares
The statement of association
or acting-in-concert between
the top 10 shareholders of
unrestricted shares and
See the upper part of this table
between the top 10
shareholders of unrestricted
shares and top 10
shareholders
Top 10 common
shareholders participating in
None
securities margin trading (if
any) (see note 4)
refinancing shares lending
□ Applicable ? N/A
Changes in top 10 shareholders and top 10 non-restricted shareholders due to refinancing shares
lending/return compared with the prior period
□ Applicable ? N/A
Did any of the top 10 common shareholders or the top non-restricted common shareholders of the
Company conduct any promissory repurchase during the reporting period.
? Yes ? No
The top 10 non-restricted common shareholders, the top 10 common shareholders did not conduct
any promissory repurchase during the reporting period.
Nature of controlling shareholder：Local state-owned
Type of controlling shareholder：Corporation
Legal
Name of
representative/ Date of
controlling Credibility code Main business scope
Company establishment
shareholder
principal
General project: Social economy consulting
services; business management consulting;
financial consulting; business headquarters
management; import and export agency; trade
Luzhou Laojiao December 21, brokerage; crops planting services; trees planting
Liu Miao 91510500723203346U
Group Co., Ltd. 2000 operation; elder care services; tourism development
project planning and consulting; technical agency
services; engineering and technological research
and experimental development; display device
manufacturing; supply chain management services;
technical services, technical development, technical
consulting, technical communication, technical
transfer, and technical promotion; domestic freight
transport agency; equity fund-invested asset
management services; passenger ticket agent; and
business agency service. It shall also include
licensed projects (business activities can be carried
out legally and independently with business license
in addition to projects that must be approved by
law): Agency bookkeeping; career intermediary
activities; food production; food sales; and medical
services. (business activities that require approval in
accordance with laws can be carried out upon
approval of relevant authorities, and the specific
business projects shall be subject to the approval
document or license of relevant departments)
Shareholdings of
the controlling
accounting for 8.19% of the total issued shares.
shareholder in
other controlled
through its wholly-owned subsidiary, Golden Rudder, accounting for 30.59% of the total issued shares.
or non-controlled
listed companies
accounting for 18.13% of the total issued shares.
at home or
abroad during the
the total issued shares.
reporting period
Change of the controlling shareholder during the reporting period
□ Applicable ? N/A
No such cases in the reporting period
Nature of actual controller：Local State-owned Assets Supervision and Administration Commission
Type of actual controller：Corporation
Legal
Name of actual controller representative/Company Date of establishment Credibility code Main business scope
principal
State-owned assets
supervision and
SASAC of Luzhou Zhang Xuebin March 1, 2005 11510400771686813T
administration
department
Group (a majority-owned subsidiary of SASAC of Luzhou), holds 511,654,127 shares of Luzhou Xinglu Water
Share holdings of the
(Group) Co., Ltd. (02281.HK), accounting for 59.51% of the total issued shares. Luzhou Infrastructure
controlling shareholder in
Construction Investment Co., Ltd., a majority-owned subsidiary of XingLu Group, holds 62,709,563 shares of
other controlled or non-
Luzhou Xinglu Water (Group) Co., Ltd. (02281.HK), accounting for 7.29% of the total issued shares. Laojiao
controlled listed
Group, a majority-owned subsidiary under SASAC of Luzhou, holds 70,406,310 shares of Luzhou Xinglu Water
companies at home or
(Group) Co., Ltd. (02281.HK), accounting for 8.19% of the total issued shares.
abroad during the
reporting period.
(300219.SZ) through its majority-owned subsidiary, Golden Rudder, accounting for 30.59% of the total shares
issued.
jurisdiction of SASAC of Luzhou, holds 232,664,610 shares of Sichuan Lutianhua Company Limited
(000912.SZ), accounting for 14.84% of the total shares issued. Lutianhua Group Company Limited, a wholly-
owned subsidiary of Luzhou Industrial Investment Group Co., Ltd., holds 236,550,393 shares of Sichuan
Lutianhua Company Limited (000912.SZ), accounting for 15.09% of the total issued shares.
shares of Luzhou Bank (01983.HK), accounting for 14.37% of the total issued shares. Luzhou State-Owned
Assets Management Co., Ltd., a majority-owned subsidiary under SASAC of Luzhou, holds 173,568,000 shares
of Luzhou Bank (01983.HK), accounting for 6.39% of the total issued shares. Luzhou XingLu Asset Management
Co., Ltd., a majority-owned subsidiary of XingLu Group (a majority-owned subsidiary of SASAC of Luzhou),
holds 62,154,702 shares of Luzhou Bank (01983.HK), accounting for 2.29% of the total issued shares.
Change of the actual controller during the reporting period
□ Applicable ? N/A
The actual controller of the Company has not changed during the reporting period.
Ownership and control relations between the actual controller and the Company
State-owned Assets Supervision and
Administration Commission of Luzhou
Luzhou Development Holdings
Group Co., Ltd.
Luzhou Laojiao Luzhou XingLu Investment
Group Co., Ltd. Group Co., Ltd.
Sichuan Golden Rudder
Investment Co., Ltd.
Luzhou Laojiao
Co., Ltd.
The actual controller controls the Company through a trust or other ways of assets management
□ Applicable ? N/A
shareholder or the largest shareholder as well as its acting-in-concert parties
accounts for 80% of all shares of the company held by them
□ Applicable ? N/A
? Applicable □ N/A
Legal
Name of corporate Date of Registered capital
representative/Comp Main business scope
shareholder establishment (CNY)
any principal
Investment and asset
management; project
management
services; self-finance
real estate business
activities; investment
advisory services
and financial
advisory services
Luzhou XingLu
(excluding such
Investment Group Dai Zhiwei January 28, 2003 4,934,049,244
Co., Ltd. financial activities as
illegal capital raising
and collecting public
funds) (business
activities that require
approval in
accordance with laws
can be carried out
upon approval of
relevant authorities)
actual controller, restructuring party and other commitment entities.
□ Applicable ? N/A
period
Implementation progress of shares repurchases
□ Applicable ? N/A
Implementation progress of share buyback reduction through centralized bidding
□ Applicable ? N/A
□ Applicable ? N/A
No preferred stock in the Company during the reporting period.
Section VII Information about Bond
? Applicable ? N/A
? Applicable ? N/A
No such cases in the reporting period.
? Applicable ? N/A
Unit: CNY 10,000
Way of
Issue Value Bond Interest Place of
Name Abbr. Code Due date redempti
date date balance rate trading
on
In terms
of the
bonds of
this
phase,
interests
will be
paid by
year and
the
principal
Public repaid in
Offering lump
of sum at Shenzhe
Corporat 20 Lao 149062. maturity. n Stock
March March March 150,000 3.50%
e Bond Jiao 01 SZ The Exchang
for interests e
Qualified will be
Investors paid
(Phase I) once
every
year and
the
interests
for the
last
installme
nt will be
paid
together
with the
principal.
The bonds are applicable to eligible investors who have qualified securities
accounts with Shenzhen Branch of China Securities Depository and Clearing Co.,
Ltd., are permitted to engage in the subscription and transfer of corporate bonds
in accordance with the Management Measures for the Issue and Transaction
Appropriate arrangement of the
Management of Corporate Bonds, Management Measures for the Suitability of
investors (if any)
Securities and Futures Investors, Management Measures of Shenzhen Stock
Exchange for the Suitability of Securities Market Investors, and relevant laws and
regulations, and have the corresponding risk identification and bearing capacity
(excluding those prohibited by laws and regulations)
Trading systems applicable Tradable by way of bidding, offering, inquiry and agreement
Risk of termination of listing and
trading (if any) and None
countermeasures
Overdue bonds
□ Applicable ? N/A
protection clauses
□ Applicable ? N/A
Signature Contact person
Bond Intermediary Office address Contact number
accountant of intermediary
China World Office 2,
Offering of
International No. 1
Corporate Bond
Capital Jianguomenwai N/A Qi Qin (010)65051166
for Qualified
Corporation Avenue,
Investors (Phase
Limited. Chaoyang
I)
District, Beijing
Building 6,
Offering of China Chengxin No.2 Nanzhugan
Corporate Bond International hutong,
N/A Liang Ziqiu (027)87339288
for Qualified Credit Rating Chaoyangmenne
Investors (Phase Co., Ltd. i Avenue,
I) Dongcheng
District, Beijing
Indicate by tick mark whether above intermediaries changed in the reporting period
□Yes ? No
Unit: CNY 10,000
Bond Bond Total Stated Amount Actual Actual Unused Operation Rectificati Whether
code abbreviati amount purpose spent use of use of amount of special on of is
on raised raised account raised consisten
funds funds by for raised funds for t with the
(classifie purpose funds (if violation usage,
d by any) operation using
purpose, (if any) plan and
excluding other
temporar agreeme
y nts
replenish stipulated
ment of in the
working raising
capital) specificati
on
Used for Used for
the the
Technical Technical
Renovati Renovati
on on
Project of Project of
Baijiu Baijiu
The
Productio Productio
Company
n (Phase n (Phase
has set
II), the II), the
up a
Project of Project of
special
Intelligent Intelligent
account
Upgradin Upgradin
to deposit
g and g and
the funds
Building Building
raised
of the of the
and has
Informati Informati
signed a
on on
Used for fund
Manage Manage
the account
ment ment
constructi supervisi
Laojiao 150,000 the the 7,044.49 None Yes
Z 8 operation agreeme
of nt to
Acquiring Acquiring
physical clarify it.
Sealing Sealing
projects The
Equipme Equipme
special
nt for the nt for the
account
Cellar of Cellar of
for fund
Huangyi Huangyi
raising
Baijiu Baijiu
was
Productio Productio
operating
n Base, n Base,
normally
and the and the
during
Project of Project of
the
Acquiring Acquiring
reporting
Accessor Accessor
period.
y y
Equipme Equipme
nt for nt for
Leaven Leaven
Making Making
for for
Huangyi Huangyi
Baijiu Baijiu
Productio Productio
n Base n Base
The raised funds were used for construction project
? Applicable □ N/A
Whether the net
income of the
project during the
reporting period
has decreased
by more than
Whether there
were any major
with the project's net
changes in the
disclosure in the income and
Project progress project during the Project changes
Bond prospectus, or impact on the
Bond code and operational reporting period and procedure
abbreviation whether other issuer's solvency
benefits that may affect implementation
major adverse and investors'
the investment
changes that equity, and
and use plan of
may affect the countermeasures
the raised funds
project's
operating
efficiency have
occurred during
the reporting
period
See “16. Use of
Section V
The Company changed the usage of above funds raised from bonds during the reporting period.
□ Applicable ? N/A
□ Applicable ? N/A
repayment-ensuring measures in the reporting period, as well as the impact on the
interests of bond holders
□ Applicable ? N/A
□ Applicable ? N/A
No such cases in the reporting period.
□ Applicable ? N/A
No such cases in the reporting period.
the end of last year
□ Applicable ? N/A
□ Applicable ? N/A
reporting period
□ Yes ? No
Unit: CNY 10,000
Item December 31, 2025 December 31, 2024 Change
Current ratio 3.86 3.56 8.43%
Debt/asset ratio 23.00% 30.48% -7.48%
Quick ratio 2.53 2.6 -2.69%
Net profits before non-
recurring gains and losses
EBITDA/debt ratio 232.33% 201.87% 30.46%
Interest cover (times) 94.04 60.6 55.18%
EBITDA-to-interest cover
(times)
Section VIII Financial Report
Type of audit report Standard without reserved opinion
Signing date of auditor’s report April 27, 2026
Name of Audit ShineWing Certified Public Accountants
No. of auditor’s report XYZH/2026CDAA1B0421
Names of auditors Wang Xiaodong, Ouyang Lihua
Auditor’s Report
To the shareholders of Luzhou Laojiao Co., Ltd.:
Opinion
We have audited the financial statements of Luzhou Laojiao Co., Ltd. (hereinafter referred to as the
“Company”), which comprise the consolidated balance sheet and balance sheet as at December 31,
cash flow statement, consolidated statement of changes in owners' equity and statement of changes in
owners' equity for the year then ended; and notes to the financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance
with Accounting Standards for Business Enterprises and present fairly the financial position of the
company as at December 31, 2025 and its operating results and cash flow for the year then ended.
Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”) for Certified Public
Accountants. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the China Standards on Independence for Certified Public
Accountants and the independence requirements applicable to audits of financial statements of public
interest entities in the Code of Professional Ethics for Certified Public Accountants in China, and we
have fulfilled our independence and other ethical responsibilities. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in
the context of our audit of the consolidated financial statements as a whole and, in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Key audit matter Audit response
As of December 31, 2025, the cash We performed the following audit procedures in response to the existence and
and cash equivalent balance of completeness of cash and cash equivalents:
Luzhou Laojiao was CNY 1. Understood, tested, and evaluated internal controls related to monetary fund
significant balance and the large Laojiao’s accounting records to verify the completeness of bank accounts;
number of bank accounts, the 3. Obtained bank statements and bank reconciliation statements, conducted
security of deposits as well as the bank confirmations, and controlled the confirmation process;
accuracy and completeness of 4. Performed inventory count procedures on time deposits and reviewed details
balances have a material impact on such as the holder of the time deposits;
the financial statements. Therefore, 5. Obtained the enterprise credit report to examine whether there were any
we identified the existence and pledges, mortgages, or guarantees related to cash and cash equivalents;
completeness of cash and cash 6. Examined the accuracy and completeness of disclosures regarding cash and
equivalents as a key audit matter. cash equivalent balances and restrictions.
Please refer to Item 5.1 under “5.
Notes to the main items of the
consolidated financial statements” in
the notes to the financial statements.
Key audit matter Audit response
Luzhou Laojiao’s operating revenue We performed the following key audit procedures in relation to the recognition of
for 2025 amounted to CNY operating revenue:
main source of the Company’s effectiveness of internal controls over the sales and collection cycle;
operating profit and a key 2. Inspected a sample of sales contracts to identify rights and obligations,
performance indicator. Therefore, we evaluated the timing of performance obligations, and assessed whether
identified revenue recognition as a management’s judgments regarding the transfer of control complied with the
key audit matter. Please refer to Item Accounting Standards for Business Enterprises and the Company’s accounting
policies and accounting estimates” 3. Performed analytical review procedures, comparing current year sales
and Item 5.38 under “5. Notes to the volume, unit price, gross margin, and key customer metrics with prior-year data
main items of the consolidated to identify significant changes and assess their reasonableness;
financial statements” in the notes to 4. Performed substantive testing on a sample of recorded operating revenue
the financial statements. transactions for the year, inspecting supporting documents such as sales
contracts or orders, warehouse dispatch orders, delivery notes, customer
acknowledgments, sales invoices, and reconciliation statements to assess the
authenticity and accuracy of revenue recognition;
inspected relevant supporting documents (including delivery notes or
documents confirming customer receipt) to evaluate whether revenue was
recognized in the appropriate accounting period;
procedures with a sample of major distributors to confirm revenue amounts and
contract liability balances, validating the authenticity and accuracy of revenue
recognized by management;
Other information
The directors of the Company are responsible for the other information. The other information
comprises the information included in the annual report, but does not include the financial statements
and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of directors and those charged with governance for the financial statements
The directors of the Company are responsible for the preparation of the financial statements that give a
true and fair view in accordance with the disclosure requirements of Accounting Standards for Business
Enterprises, and designing, implementing and maintaining internal control that is necessary to ensure
the financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
ShineWing Certified Public Accountants Chinese CPA: Wang Xiaodong
(Engagement Partner)
Beijing, China Chinese CPA: Ouyang Lihua
April 27, 2026
Monetary unit for the financial statements and the notes thereto: CNY
Prepared by: Luzhou Laojiao Co., Ltd.
Consolidated balance sheet
As at December 31, 2025
Unit: CNY
Item Balance as at December 31, 2025 Balance as at January 1, 2025
Current assets:
Cash and cash equivalents 27,341,566,698.37 33,578,396,831.33
Settlement reserves
Lending funds
Held-for-trading financial assets 1,584,771,959.37 1,694,282,295.97
Derivative financial assets
Notes receivables
Accounts receivable 6,075,570.66 11,022,302.31
Accounts receivable financing 1,466,494,973.96 1,801,947,455.78
Prepayment 145,596,475.65 123,870,282.65
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 17,318,326.51 13,053,645.00
Including：Interests receivable
Dividends receivable
Buying back the sale of financial
assets
Inventories 15,396,031,707.35 13,392,794,475.96
Including：Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 430,459,910.63 241,081,908.89
Total current assets 46,388,315,622.50 50,856,449,197.89
Non-current assets:
Disbursement of loans and advances
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2,930,804,469.77 2,801,252,317.93
Investments in other equity
instruments
Other non-current financial assets
Investment property 47,892,751.08 50,246,694.16
Fixed assets 8,523,891,404.03 9,131,776,915.51
Construction in progress 2,064,766,283.24 807,233,988.90
Productive biological assets
Oil and gas assets
Use right assets 19,863,214.19 29,254,214.23
Intangible assets 3,414,065,535.11 3,417,898,796.19
Including：Data resources 2,856,611.80
Development expenses
Including：Data resources
Goodwill
Long-term deferred expenses 1,034,985.48 1,756,272.03
Deferred tax assets 264,019,980.93 424,185,093.04
Other non-current assets 664,841,367.04 407,347,368.15
Total non-current assets 18,406,679,228.77 17,478,146,366.69
Total assets 64,794,994,851.27 68,334,595,564.58
Current liabilities:
Short-term loans
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1,413,421,175.80 1,844,497,206.78
Advance from customer 2,014,696.36
Contract liabilities 3,367,443,727.83 3,978,131,528.88
Financial assets sold for repurchase
Deposits from customers and inter-
bank
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee benefits payable 481,722,380.36 553,580,768.99
Taxes payable 1,612,884,069.81 3,233,948,597.08
Other payable 615,753,466.88 873,595,429.08
Including：Interests payable
Dividends payable 28,163,719.84 29,668,290.20
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 436,920,270.99 516,729,820.48
Total current liabilities 12,004,359,001.08 14,277,111,968.03
Non-current liabilities:
Insurance contract reserves
Long-term loans 2,627,166,310.93 6,279,900,000.00
Bonds payable
Including：Preferred shares
Perpetual bonds
Lease liabilities 15,693,190.61 24,528,519.13
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 82,513,945.77 86,672,726.83
Deferred tax liabilities 171,180,022.42 158,375,714.88
Other non-current liabilities
Total non-current liabilities 2,896,553,469.73 6,549,476,960.84
Total liabilities 14,900,912,470.81 20,826,588,928.87
Owners' equity
Share capital 1,471,941,963.00 1,471,951,503.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 5,439,328,102.53 5,365,763,566.55
Less: treasury stock 159,634,274.47 345,699,443.89
Other comprehensive income 143,628,853.52 84,235,115.38
Special reserves
Surplus reserves 1,471,941,963.00 1,471,951,503.00
General risk reserve
Undistributed profits 41,413,087,028.16 39,340,298,309.42
Total equity attributable to owners of
the parent company
Non-controlling interests 113,788,744.72 119,506,082.25
Total owners' equity 49,894,082,380.46 47,508,006,635.71
Total liabilities and owners' equity 64,794,994,851.27 68,334,595,564.58
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Song Ying
Balance sheet of parent company
As at December 31, 2025
Unit: CNY
Item Balance as at December 31, 2025 Balance as at January 1, 2025
Current assets:
Cash and cash equivalents 25,751,391,606.26 26,651,132,665.66
Held-for-trading financial assets 1,484,071,959.37 1,694,282,295.97
Derivative financial assets
Notes receivables
Accounts receivable 20,408.90 14,701.83
Accounts receivable financing
Prepayment 11,492,777.54 12,888,111.51
Other receivables 12,687,994,073.65 14,619,833,493.32
Including：Interests receivable
Dividends receivable
Inventories 832,455.26 898,380.40
Including：Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 326,420,192.60 172,283,759.93
Total current assets 40,262,223,473.58 43,151,333,408.62
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 6,908,843,624.36 6,735,926,560.88
Investments in other equity
instruments
Other non-current financial assets
Investment property 47,892,751.08 50,246,694.16
Fixed assets 831,967,244.40 866,342,467.75
Construction in progress 348,549,010.10 174,069,734.13
Productive biological assets
Oil and gas assets
Use right assets 118,384.41
Intangible assets 828,722,903.00 770,645,637.66
Including：Data resources
Development expenses
Including：Data resources
Goodwill
Long-term deferred expenses 341,637.85
Deferred tax assets 93,739,377.83 124,327,561.74
Other non-current assets 576,424,111.73 215,109,132.46
Total non-current assets 10,111,334,338.77 9,344,018,595.96
Total assets 50,373,557,812.35 52,495,352,004.58
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 46,523,094.84 36,143,495.43
Advance from customer 925,929.49
Contract liabilities 960,049.10 3,354,639.36
Employee benefits payable 153,536,783.20 175,075,638.37
Taxes payable 6,628,201.64 94,520,857.23
Other payables 4,345,333,587.91 2,980,878,449.35
Including：Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 124,806.38 436,103.12
Total current liabilities 8,618,439,644.60 6,557,349,450.58
Non-current liabilities:
Long-term loans 2,219,000,000.00 6,279,900,000.00
Bonds payable
Including：Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 10,374,707.70 8,714,300.00
Deferred tax liabilities 94,405,983.06 82,430,689.59
Other non-current liabilities
Total non-current liabilities 2,323,780,690.76 6,371,044,989.59
Total liabilities 10,942,220,335.36 12,928,394,440.17
Owners' equity
Share capital 1,471,941,963.00 1,471,951,503.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 5,435,590,744.65 5,361,333,958.25
Less: treasury stock 159,634,274.47 345,699,443.89
Other comprehensive income 141,260,071.92 80,803,192.66
Special reserves
Surplus reserves 1,471,941,963.00 1,471,951,503.00
Undistributed profits 31,070,237,008.89 31,526,616,851.39
Total owners' equity 39,431,337,476.99 39,566,957,564.41
Total liabilities and owners' equity 50,373,557,812.35 52,495,352,004.58
Consolidated income statement
Unit: CNY
Item Year 2025 Year 2024
Including: Operating revenue 25,731,010,647.32 31,196,248,208.33
Interest income
Earned premium
Fee and commission
income
Including: Cost of sales 3,441,749,582.69 3,888,116,183.93
Interest expense
Handling charges and
commission expenses
Refunded premiums
Net payments for
insurance claims
Net provision for
insurance contracts
Bond insurance expense
Reinsurance Expenses
Taxes and surcharges 3,927,743,376.52 4,753,755,581.18
Selling and distribution
expenses
General and administrative
expenses
Research and
Development expenses
Financial expenses -511,995,793.73 -488,521,059.32
Including：Interest
expenses
Interest income 678,460,704.26 797,923,434.30
Plus: Other income 52,892,626.52 43,752,551.73
Investment income ("-" for
losses)
Including: income from
investment in associates and joint 156,406,734.29 106,578,492.71
ventures
Income from the
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Foreign exchange gains ("-"
for losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
values(“-“ for losses)
Credit impairment losses (“-”
for losses)
Impairment losses(“-“ for
losses)
Gains from disposal of
-534,054.68 1,058,750.22
assets("-" for losses)
Plus: non-operating income 26,849,236.20 24,229,862.26
Less: non-operating expenses 57,445,245.74 25,779,973.47
total losses)
Less: income tax expenses 3,794,025,056.16 4,707,520,248.15
operation ("-" for losses)
operation ("-" for losses)
parent company
interests
comprehensive income
Net of tax from other comprehensive
income to the owner of the parent 59,390,890.32 21,195,697.36
company
that cannot be reclassified into the 51,838,868.58 3,388,621.68
profit and loss:
indebtedness or net asset of defined
benefit plans
income that cannot be classified into 610,470.04 162,693.33
profit and loss under equity method
investments in other equity 51,228,398.54 3,225,928.35
instruments
company’s credit risks
that will be reclassified into the profit 7,552,021.74 17,807,075.68
and loss
income that will be classified into 8,615,162.86 16,992,055.15
profit and loss under equity method
investments in other debt obligations
arising from the reclassification of
financial assets
investments in other debt obligations
translation of foreign currency -1,063,141.12 815,020.53
financial statements
Net of tax from other comprehensive
-870,236.14 666,229.81
income to non-controlling interests
Total comprehensive income
attributable to owners of the parent 10,890,104,826.46 13,494,182,173.37
company
Total comprehensive income
attributable to non-controlling 28,326,507.89 25,458,324.69
interests
(1) Basic earnings per share 7.36 9.18
(2) Diluted earnings per share 7.36 9.18
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Song Ying
Income statement of parent company
Unit: CNY
Item Year 2025 Year 2024
Less: Cost of sales 8,283,201,155.62 8,454,312,608.86
Taxes and surcharges 67,960,017.50 74,473,268.61
Selling and distribution
expenses
General and administrative
expenses
Research and Development
expenses
Financial expenses -444,414,657.70 -458,345,168.33
Including：Interest expenses 156,013,095.03 304,323,204.07
Interest income 603,991,052.26 766,784,421.39
Plus: Other income 11,200,100.74 14,051,099.41
Investment income ("-" for
losses)
Including: income from
investment in associates and joint 153,034,503.91 74,877,362.33
ventures
Income from the
derecognition of financial assets at
amortized cost (“-” for losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
values(“-“ for losses)
Credit impairment losses (“-” for
losses)
Asset impairment losses (“-” for
losses)
Gains from disposal of assets("-"
for losses)
Plus: non-operating income 22,656,906.87 17,436,206.22
Less: non-operating expenses 40,159,532.84 20,162,234.74
total losses)
Less: income tax expenses 465,261,845.34 570,243,254.91
operation ("-" for losses)
operation ("-" for losses)
comprehensive income
that cannot be reclassified into the 51,838,868.58 3,388,621.68
profit and loss:
indebtedness or net asset of defined
benefit plans
income that cannot be classified into 610,470.04 162,693.33
profit and loss under equity method
investments in other equity 51,228,398.54 3,225,928.35
instruments
company’s credit risks
that will be reclassified into the profit 8,615,162.86 16,992,055.15
and loss
income that will be classified into 8,615,162.86 16,992,055.15
profit and loss under equity method
investments in other debt obligations
arising from the reclassification of
financial assets
investments in other debt obligations
translation of foreign currency
financial statements
(1) Basic earnings per share
(2) Diluted earnings per share
Consolidated statement of cash flows
Unit: CNY
Item Year 2025 Year 2024
activities
Cash received from sale of goods
and rendering of services
Net increase in customer bank
deposits and placement from banks
and other financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received from original
insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interest, handling
charges and commissions
Net increase in placements from
other financial institutions
Net capital increase in repurchase
business
Net cash received from customer
brokerage deposits
Refunds of taxes and surcharges 9,025,614.40 8,746,142.49
Cash received from other operating
activities
Subtotal of cash inflows from
operating activities
Cash paid for goods purchased and
services received
Net increase in loans and advances
to customers
Net increase in deposits in central
bank and other banks and financial
institutions
Cash paid for original insurance
contract claims
Net increase in lending funds
Cash paid for interests, handling
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges 12,094,908,635.30 12,329,320,329.48
Cash paid for other operating
activities
Subtotal of cash outflows from
operating activities
Net cash flows from operating
activities
activities
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and 1,978,040.76 11,432,852.36
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 1,932,762,969.97 1,188,370,866.64
other long-term assets
Cash paid for investments 2,100,000,000.00 2,471,700,000.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities
Net cash flows from investing
-1,735,998,403.39 -1,382,505,932.55
activities
activities
Cash received from investors 79,496.11
Including: cash received by
subsidiaries from investments by 79,496.11
minority shareholders
Cash received from borrowings 408,166,310.93 2,000,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities
Cash paid for debt repayments 3,220,200,000.00 4,025,200,000.00
Cash paid for distribution of
dividends and profits or payment of 8,998,017,228.32 8,283,493,371.53
interest
Including: dividends and profits paid 36,240,666.20 29,684,819.82
to minority shareholders by
subsidiaries
Cash paid for other financing
activities
Subtotal of cash outflows from
financing activities
Net cash flows from financing
-11,820,118,903.36 -10,328,853,037.68
activities
-9,675,423.77 4,229,343.18
rate on cash and cash equivalents
-6,442,574,052.64 7,474,638,736.60
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 33,367,668,014.46 25,893,029,277.86
period
equivalents at the end of the 26,925,093,961.82 33,367,668,014.46
period
Cash flow statements of parent company
Unit: CNY
Item Year 2025 Year 2024
activities
Cash received from sale of goods
and rendering of services
Refunds of taxes and surcharges
Cash received from other operating
activities
Subtotal of cash inflows from
operating activities
Cash paid for goods purchased and
services received
Cash paid to and on behalf of
employees
Cash paid for taxes and surcharges 1,005,272,592.54 1,111,830,751.18
Cash paid for other operating
activities
Subtotal of cash outflows from
operating activities
Net cash flows from operating
activities
activities
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and 115,575.89 10,363,496.03
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 652,780,256.66 212,817,179.55
other long-term assets
Cash paid for investments 2,012,000,000.00 2,460,000,000.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities
Net cash flows from investing
activities
activities
Cash received from investors
Cash received from loans 2,000,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities
Cash paid for debt repayments 3,220,200,000.00 4,025,200,000.00
Cash paid for distribution of
dividends and profits or payment of 8,961,426,685.20 8,253,808,551.71
interest
Cash paid for other financing
activities
Subtotal of cash outflows from
financing activities
Net cash flows from financing
-12,182,331,605.34 -10,282,261,962.52
activities
-592,809.45 327,855.29
rate on cash and cash equivalents
-1,107,479,798.63 2,251,123,349.69
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 26,476,599,296.11 24,225,475,946.42
period
equivalents at the end of the 25,369,119,497.48 26,476,599,296.11
period
Consolidated statement of changes in owners' equity
For the year ended December 31, 2025
Unit: CNY
Year 2025
Equity attributable to owners of the parent company Non- Total
Item
Shar Other equity Capit Less Othe Spec Surpl Gene Undi Othe Subt contr owne
e instruments al ： r ial us ral strib r otal ollin rs'
capit reser Trea Com reser reser risk uted g equit
al Prefe ve sury preh ve ve reser profit inter y
Perp stoc ensiv ve ests
rred Othe
etual k e
stoc r
bond Inco
k
me
Bala
nce 1,471 5,365 1,471 39,34 47,38 47,50
as at 345,6 84,23 119,5
,951, ,763, ,951, 0,298 8,500 8,006
Dece 99,44 5,115 06,08
mber 503.0 566.5 503.0 ,309. ,553. ,635.
last
year
Plus:
adjus
tment
s for
chan
ges
in
acco
untin
g
polici
es
Adjus
tment
s for
corre
ction
of
acco
untin
g
error
s in
prior
year
Other
s
Bala
nce
as at 1,471 5,365 1,471 39,34 47,38 47,50
Janu 345,6 84,23 119,5
,951, ,763, ,951, 0,298 8,500 8,006
ary 1 99,44 5,115 06,08
of 503.0 566.5 503.0 ,309. ,553. ,635.
the 0 5 0 42 46 71
curre
nt
year
reas
es/de
crea
ses
in - 2,072 2,391 - 2,386
the - 73,56 59,39 -
curre 9,540 4,535 3,738 9,540
nt 65,16 718.7 082.2 ,337. 744.7
.00 .98 .14 .00
perio 9.42 4 8 53 5
d (“-”
for
decr
ease
s)
(1)
Total 10,83 10,89 10,91
comp 59,39 28,32
rehen 0,890 6,507
sive ,936. ,826. ,334.
.32 .89
inco 14 46 35
me
(2) - 73,79 - 259,8 692,2 260,5
Capit 9,540 2,361 186,0 47,99 50.42 40,24
al
contri .00 .99 65,16 1.41 1.83
buted 9.42
or
reduc
ed by
owne
rs
Capit
al -
contri - - 168,9 168,9
butio 9,540 874,9 19,57 19,57
ns by 04,03
.00 13.40 6.96 6.96
owne 0.36
rs
Capit
al
contri
butio
ns by
other
equit
y
instru
ment
s
holde
rs
Amo
unts
of
share
base
d 74,66 90,92 91,62
paym 16,26 692,2
ents 7,275 8,414 0,664
recog .39 .45 .87
nized .06
in
owne
rs'
equit
y
Other
s
- - -
(3) -
Profit - 8,757 8,757 8,792
distri 9,540 ,922, ,931, ,668,
butio 6,095
.00 369.5 909.5 005.4
n .84
Withd
rawal
of -
surpl 9,540
us .00
.00
reser
ves
Withd
rawal
of
gener
al
risk
reser
ve
Profit
distri - - -
buted 8,757 8,757 8,792
to 34,73
,931, ,931, ,668,
owne 6,095
rs (or 909.5 909.5 005.4
share .84
holde
rs)
Other
s
(4)
Intern
al
carry- -
forwa 2,847
rd of 2,847
.82
owne .82
rs'
equit
y
Conv
ersio
n of
capit
al
reser
ves
into
paid-
in
capit
al
Conv
ersio
n of
surpl
us
reser
ves
into
paid-
in
capit
al
Surpl
us
reser
ves
offset
ting
losse
s
Carry
forwa
rd of
retain
ed
earni
ngs
from
chan
ges
in
defin
ed
benef
it
plans
Carry
forwa
rd of
retain
ed
earni -
ngs 2,847
from .82
.82
other
comp
rehen
sive
inco
me
Other
s
(5)
Speci
al
reser
ves
Withd
rawal
for
the
perio
d
Use
for
the
perio
d
(6) - - -
Other 227,8 227,8 227,8
s
Bala
nce
as at 1,471 5,439 1,471 41,41 49,78 49,89
Dece 159,6 143,6 113,7
,941, ,328, ,941, 3,087 0,293 4,082
mber 34,27 28,85 88,74
the 0 3 0 16 74 46
curre
nt
year
For the year ended December 31, 2024
Unit: CNY
Year 2024
Equity attributable to owners of the parent company
Other equity Othe Non-
instruments Less r Total
Gene contr
Item Shar Capit ： Com Spec Surpl Undi owne
ral ollin
e al Trea preh ial us strib Othe Subt rs'
Prefe risk g
capit Perp reser sury ensiv reser reser uted r otal equit
rred Othe reser inter
al etual ve stoc e ve ve profit y
stoc r ve ests
bond k Inco
k
me
Bala
nce 1,471 5,185 1,471 33,81 41,39 41,53
as at 616,7 63,13 140,2
,987, ,481, ,987, 5,566 1,410 1,707
Dece 43,61 0,469 97,23
mber 769.0 523.2 769.0 ,574. ,494. ,729.
last
year
Plus:
adjus
tment
s for
chan
ges
in
acco
untin
g
polici
es
Adjus
tment
s for
corre
ction
of
acco
untin
g
error
s in
prior
year
Other
s
Bala
nce
as at 1,471 5,185 1,471 33,81 41,39 41,53
Janu 616,7 63,13 140,2
,987, ,481, ,987, 5,566 1,410 1,707
ary 1 43,61 0,469 97,23
of 769.0 523.2 769.0 ,574. ,494. ,729.
the 0 2 0 75 89 85
curre
nt
year
reas
es/de
crea
ses
in - 5,524 5,997 - 5,976
the - 180,2 21,10 -
curre 36,26 82,04 4,645 36,26
nt 44,16 734.6 058.5 1,152 905.8
perio 6.70 7 7 .71 6
d (“-”
for
decr
ease
s)
(1)
Total 13,47 13,49 13,51
comp 21,19 25,45
rehen 5,697 8,324
sive ,476. ,173. ,498.
.36 .69
inco 01 37 06
me
(2)
Capit
al
- -
contri - 180,2 451,2 434,7
buted 271,0 16,58
or 36,26 82,04 89,94 08,75
reduc 6.00 3.33 4.03 6.84
ed by 6.70 .19
owne
rs
Capit
al - -
contri - 243,6 243,7
butio 36,26 51,74 31,34
ns by ,954. 13,96 4.28
owne 86 3.19
rs
Capit
al
contri
butio
ns by
other
equit
y
instru
ment
s
holde
rs
Amo 183,6 - 207,6 1,744 209,3
unts
of 07,99 24,03 38,20 ,033. 82,23
share 8.19 0,203 1.70 28 4.98
base .51
d
paym
ents
recog
nized
in
owne
rs'
equit
y
- -
Other 18,40 18,40
s 4,824 4,824
.75 .75
- - -
(3) -
Profit - 7,948 7,948 7,978
distri 36,26 ,345, ,382, ,050,
butio 8,290
n .21
Withd
rawal
of -
surpl 36,26
us 6.00
reser
ves
Withd
rawal
of
gener
al
risk
reser
ve
Profit
distri - - -
buted -
to 7,948 7,948 7,978
owne ,382, ,382, ,050,
rs (or 8,290
share .21
holde 3 3 4
rs)
Other
s
(4)
Intern
al
carry- -
forwa 91,05
rd of 91,05
owne 1.49
rs'
equit
y
Conv
ersio
n of
capit
al
reser
ves
into
paid-
in
capit
al
Conv
ersio
n of
surpl
us
reser
ves
into
paid-
in
capit
al
Surpl
us
reser
ves
offset
ting
losse
s
Carry
forwa
rd of
retain
ed
earni
ngs
from
chan
ges
in
defin
ed
benef
it
plans
Carry
forwa
rd of
retain
ed
earni -
ngs 91,05
from 1.49
other
comp
rehen
sive
inco
me
Other
s
(5)
Speci
al
reser
ves
Withd
rawal
for
the
perio
d
Use
for
the
perio
d
(6)
Other
s
Bala 345,6 84,23 119,5
nce ,951, ,763, ,951, 0,298 8,500 8,006
as at 503.0 566.5 503.0 ,309. ,553. ,635.
Dece 3.89 .38 2.25
mber 0 5 0 42 46 71
the
curre
nt
year
Statement of changes in owners' equity of parent company
For the year ended December 31, 2025
Unit: CNY
Year 2025
Other equity instruments Other
Less： Compr Specia Surplu
Item Capital Undistr Total
Share Preferr Perpet Treasu ehensi l s
reserv ibuted Other owners
capital ed ual Other ry ve reserv reserv
e profit ' equity
stock bond stock Incom e e
e
Balanc
e as at 1,471,9 5,361,3 345,69 1,471,9 31,526, 39,566,
Decem 51,503. 33,958. 9,443.8 51,503. 616,85 957,56
ber 31 192.66
of last
year
Plus:
adjust
ments
for
change
s in
accoun
ting
policies
Adjust
ments
for
correcti
on of
accoun
ting
errors
in prior
year
Others
Balanc
e as at 1,471,9 5,361,3 345,69 1,471,9 31,526, 39,566,
Januar 80,803,
y 1 of 51,503. 33,958. 9,443.8 51,503. 616,85 957,56
the 00 25 9 00 1.39 4.41
current
year
ases/d
ecreas
- - -
es in - -
the 74,256, 186,06 60,456, 456,37 135,62
current 9,540.0 9,540.0
period 0 0
(“-” for 2 0 2
decrea
ses)
(1)
Other 8,301,5 8,361,9
compre 45,374. 99,406.
hensive 031.44
income
(2)
Capital -
contrib - 260,54
uted or 9,540.0 0,241.8
reduce 612.41 5,169.4
d by 2
owners
Capital -
contrib - - 168,91
utions 9,540.0 874,91 9,576.9
by 4,030.3
owners 6
Capital
contrib
utions
by
other
equity
instrum
ents
holders
Amount
s of
share-
based -
payme 75,359, 91,620,
nts 16,261,
recogni 139.06
zed in
owners'
equity
Others
- -
(3) -
Profit 8,757,9 8,757,9
distribu 9,540.0
tion 0
Withdra
wal of -
surplus 9,540.0
reserve 0
s
Profit
distribu - -
ted to 8,757,9 8,757,9
owners
(or 31,909. 31,909.
shareh 58 58
olders)
Others
(4)
Internal
carry- -
forward 2,847.8
of 2
owners'
equity
Conver
sion of
capital
reserve
s into
paid-in
capital
Conver
sion of
surplus
reserve
s into
paid-in
capital
Surplus
reserve
s
offsetti
ng
losses
Carry-
forward
of
retaine
d
earning
s from
change
s in
defined
benefit
plans
Carry-
forward
of
retaine
d -
earning 2,847.8
s from 2
other
compre
hensive
income
Others
(5)
Special
reserve
s
Withdra
wal for
the
period
Use for
the
period
- -
(6)
Others 227,82 227,82
Balanc
e as at 1,471,9 5,435,5 159,63 141,26 1,471,9 31,070, 39,431,
Decem
ber 31 41,963. 90,744. 4,274.4 0,071.9 41,963. 237,00 337,47
of the 00 65 7 2 00 8.89 6.99
current
year
For the year ended December 31, 2024
Unit: CNY
Year 2024
Other equity instruments Other
Less： Compr Specia Surplu
Item Capital Undistr Total
Share Preferr Perpet Treasu ehensi l s
reserv ibuted Other owners
capital ed ual Other ry ve reserv reserv
e profit ' equity
stock bond stock Incom e e
e
Balanc
e as at 1,471,9 5,179,3 616,74 1,471,9 28,176, 35,743,
Decem 87,769. 07,881. 3,610.5 87,769. 372,59 425,97
ber 31 567.32
of last
year
Plus:
adjust
ments
for
change
s in
accoun
ting
policies
Adjust
ments
for
correcti
on of
accoun
ting
errors
in prior
year
Others
Balanc
e as at 1,471,9 5,179,3 616,74 1,471,9 28,176, 35,743,
Januar 60,513,
y 1 of 87,769. 07,881. 3,610.5 87,769. 372,59 425,97
the 00 60 9 00 6.42 2.75
current
year
ases/d
ecreas
es in - 182,02 - 3,350,2 3,823,5
the 271,04 20,289,
current 36,266. 6,076.6 36,266. 44,254. 31,591.
period 00 5 00 97 66
(“-” for 0
decrea
ses)
(1)
Other 11,298, 11,318,
compre 498,99 879,67
hensive 676.83
income
(2)
Capital -
contrib - 182,02 453,03
uted or 36,266. 6,076.6 3,977.3
reduce 4,166.7
d by 0
owners
Capital -
contrib - - 243,49
utions 36,266. 3,325,9 2,906.5
by 5,127.4
owners 4
Capital
contrib
utions
by
other
equity
instrum
ents
holders
Amount
s of
share-
based 185,35 - 209,54
payme
nts 2,031.5 24,189, 1,070.7
recogni 1 039.26 7
zed in
owners'
equity
Others
- -
(3) -
Profit 7,948,3 7,948,3
distribu 36,266.
tion 00
Withdra
wal of -
surplus 36,266.
reserve 00
s
Profit
distribu - -
ted to 7,948,3 7,948,3
owners
(or 82,058. 82,058.
shareh 83 83
olders)
Others
(4)
Internal
carry- -
forward 91,051.
of 49
owners'
equity
Conver
sion of
capital
reserve
s into
paid-in
capital
Conver
sion of
surplus
reserve
s into
paid-in
capital
Surplus
reserve
s
offsetti
ng
losses
Carry-
forward
of
retaine
d
earning
s from
change
s in
defined
benefit
plans
Carry-
forward
of
retaine
d -
earning 91,051.
s from 49
other
compre
hensive
income
Others
(5)
Special
reserve
s
Withdra
wal for
the
period
Use for
the
period
(6)
Others
Balanc
e as at 1,471,9 5,361,3 345,69 1,471,9 31,526, 39,566,
Decem 80,803,
ber 31 51,503. 33,958. 9,443.8 51,503. 616,85 957,56
of the 00 25 9 00 1.39 4.41
current
year
Luzhou Laojiao Co., Ltd. (hereinafter referred to as "Company" or "the Company"), formerly known as
Luzhou City Qu Liquor Factory and Luzhou Laojiao Distillery in Sichuan Province. It was established in
March 1950 on the basis of 36 baijiu workshops from the Ming and Qing dynasties. On September 20,
from its operational assets. On October 25, 1993, the public offering of shares was approved by
Sichuan Provincial People's Government and CSRC with two documents of ChuanFuHan (1993)
No.673 and FaShenZi (1993) No.108. After the offering, the total share capital was 86,880,000 shares,
which were listed and traded in Shenzhen stock exchange on May 9, 1994.
As at December 31, 2004, the Company's total share capital reached 841,399,673 shares after multiple
rights issues, among which the controlling shareholder, State Assets Management Bureau of Luzhou
(later renamed as State-owned Assets Supervision and Administration Commission of Luzhou,
hereinafter referred to as "SASAC of Luzhou") held 585,280,800 shares of the Company, with a
shareholding ratio of 69.56%.
On October 27, 2005, the Company implemented the non-tradable share reform. After the
implementation, the total share capital remained unchanged, and the shareholding ratio of SASAC of
Luzhou decreased from 69.56% to 60.43%.
In November 2006, the Company implemented private placement, and the total share capital increased
from 841,399,673 shares to 871,399,673 shares. The shareholding ratio of SASAC of Luzhou
decreased from 60.43% to 58.35%.
As at February 27, 2007, SASAC of Luzhou sold 42,069,983 shares of the Company, and after the sale,
it still held 466,375,156 shares of the Company, with its shareholding ratio reduced to 53.52%.
On May 19, 2008, the Company increased 522,839,803 shares of capital stock resulting from capital
reserve and undistributed profits transferred to increase capital stock. After the implementation, the total
share capital reached 1,394,239,476 shares, among which, SASAC of Luzhou held 746,200,250 shares
of the Company, and the shareholding ratio was still 53.52%.
On September 3, 2009, the 300,000,000 shares and the 280,000,000 shares held by SASAC of Luzhou
were separately transferred to Luzhou Laojiao Group Co., Ltd. (hereinafter referred to as the "Laojiao
Group") and Luzhou XingLu Investment Group Co., Ltd. (hereinafter referred to as the "XingLu Group").
After the transfer, Laojiao Group, XingLu Group, and SASAC of Luzhou respectively held 300,000,000
shares, 280,000,000 shares and 166,200,250 shares. So far, Laojiao Group became the first majority
shareholder and SASAC of Luzhou was the actual controller.
From June 6, 2012 to November 20, 2013, the first and second phases of the Company's equity
incentive plan were exercised. After the exercise, the total share capital of the Company was changed
to 1,402,252,476 shares.
On April 10, 2014 and July 18, 2016, SASAC of Luzhou transferred 81,088,320 shares and 84,000,000
shares to Laojiao Group and XingLu Group respectively. In addition, Laojiao Group has increased its
equity stake through the secondary market of 13,137,100 shares. So far, Laojiao Group, XingLu Group
and SASAC of Luzhou held 394,225,489 shares, 365,971,142 shares and 1,111,930 shares
respectively, with the shareholding ratios of 28.11%, 26.10% and 0.08% respectively.
On August 23, 2017, the Company issued CNY 62,500,000 ordinary shares (A shares) privately, raising
a total capital of CNY 3,000,000,000. After the additional issuance, the total capital stock of the
Company was changed to 1,464,752,476 shares. In addition, from 2017 to 2018, Laojiao Group
decreased 13,137,100 shares that were increased through the secondary market from April 2014 to
December 2015. After share reduction, Laojiao Group, XingLu Group and SASAC of Luzhou held
shareholding ratios of 26.02%, 24.99% and 0.08% respectively. Laojiao Group still was the first majority
shareholder and SASAC of Luzhou still was the actual controller.
In February 2022, the registration of 6,862,600 shares of the Restricted Share Incentive Plan granted
by the Company for the first time was completed; in September 2022, the Company granted 342,334
shares of the Restricted Share Incentive Plan for the second time; in September 2022, with seven
awardees no longer eligible, the Company decided to repurchase and retire the 62,310 restricted
shares of them that had been granted to the aforesaid awardees but remained in lockup; in December
From December 2023 to June 2024, Luzhou Laojiao Group Co., Ltd., through its wholly-owned
subsidiary Sichuan Golden Rudder Investment Co., Ltd., increased its holdings in the Company by
Company. Following that, Luzhou Laojiao Group Co., Ltd. and Sichuan Golden Rudder Investment Co.,
Ltd. collectively held 382,228,589 shares in the Company.
In January, June and September 2024, as five awardees were no longer eligible for the incentives, the
Company decided to repurchase and retire a total of 36,266 restricted shares that had been granted to
the aforesaid awardees but remained in lockup. As of December 31, 2024, the repurchase and
retirement of the said restricted shares had been completed, the total shares of the Company changed
to 1,471,951,503 shares.
From March to September 2025, Laojiao Group increased its holdings in the Company by 2,345,250
shares through call auction trading, representing 0.16% of the Company's total share capital. Upon that,
Laojiao Group held 383,433,639 shares in the Company.
In April and November 2025, as three awardees were no longer eligible for the incentives, the Company
decided to repurchase and retire a total of 9,540 restricted shares that had been granted to the
aforesaid awardees but remained in lockup. As of December 31, 2025, the repurchase and retirement
of the said restricted shares had been completed, and the grants and repurchases under the restricted
share incentive plan did not lead to change of the Company’s controlling shareholder or actual
controller.
As of December 31, 2025, the total number of shares of the Company was 1,471,941,963. Laojiao
Group, its wholly-owned subsidiary Sichuan Golden Rudder Investment Co., Ltd., and XingLu Group,
held 383,433,639 shares, 1,140,200 shares, and 365,971,142 shares in the Company, respectively,
representing shareholding percentages of 26.05%, 0.08%, and 24.86%, respectively; and Laojiao
Group held a total of 50.99% of the Company's voting rights.
Registered address and headquarter address of the Company are located in Sichuan Luzhou Laojiao
Square and company type is other incorporated company (Listed).
Industry of the Company is the baijiu subdivision industry of the liquor and wine, beverage and refined
tea production industry.
The principal operations are research and development, production and sales of “National Cellar
The main products are: “National Cellar 1573 Series”, ”Century-old Luzhou Laojiao Jiaoling
Series” , ”Luzhou Laojiao Tequ”, ”Touqu”, ”Hey Guys” and other baijiu series.
The controlling shareholder of the Company is Laojiao Group; and the ultimate substantive controller is
SASAC of Luzhou.
The financial statements have been approved for issue by the Board of Directors of the Company on
April 27, 2026. In accordance with the Company's Articles of Association, the financial statements will
be submitted to a meeting of shareholders for review.
The Company has prepared its financial statements on a going concern basis, and the preparation is
based on actual transactions and events in compliance with Accounting Standards for Business
Enterprises and relevant guidance and explanation (hereinafter referred to as the “ASBE”) issued by
Ministry of Finance, and Rules on Company Information Disclosure and Preparation of Publicly Issued
Securities No.15- General Rules on Financial Reporting Rules (2023 Revision) issued by CSRC.
The Company’s business activities have adequate financial support. Based on the current information
obtained by the Company, comprehensively considering factors such as macro-policy risk, market
operation risk, current or long-term profitability, debt repayment ability of the Company, as well as its
resource of financial support, the Company believes that it is reasonable to prepare the financial
statements on a going concern basis and there are no events or situations resulting in significant
doubts over going concern for at least 12 months.
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
The financial statements of the Company have been prepared in accordance with ASBE, and present
truly and completely, the financial position and the Company’s results of operations, changes in
shareholders’ equity and cash flows. In addition, in all material respects, the financial statements of the
Company comply with disclosure requirements of the financial statements and their notes in
accordance with Rules on Company Information Disclosure and Preparation of Publicly Issued
Securities No.15- General Rules on Financial Reporting Rules revised by CSRC in 2023.
The Company adopts the calendar year as its accounting year, i.e. from January 1 to December 31.
The Company’s business cycle is 12 months.
The Company has adopted China Yuan (CNY) as functional currency.
?Applicable □ N/A
Item Materiality standard
Material receivables withdrawal of bad debt
provision separately accrued
Material bad debt provision recovered or
reversed in accounts receivable The carrying balance at the end of the Reporting
Significant write-off of accounts receivable Period ≥ CNY 5 million
Significant prepayments aging over one year,
accounts payable, contract liabilities and other
payables
Single project under construction with a budget
exceeding CNY 150 million and a total amount
Material construction in progress
accounted for the current period exceeding CNY
The overseas operating entities' external revenue
accounts for ≥ 3% of the consolidated operating
Material overseas operating entity
revenue, and the total profit accounts for ≥ 0.5%
of the consolidated total profit
The revenue of non-wholly-owned subsidiaries
accounts for ≥ 3% of the consolidated operating
Material non-wholly-owned subsidiary
revenue, and the total profit accounts for ≥ 0.5%
of the consolidated total profit
The book value of long-term equity investments
in associated enterprises accounts for ≥ 3% of
Significant associated enterprise
the total assets in the consolidated financial
statements
common control and business combinations not involving enterprises under
common control
(1) Business combination under common control
Assets and liabilities obtained by the Company from the combine through business combination under
common control shall be measured at the book value as stated in the consolidated financial statements
of ultimate controlling party at the combination date. The share of the book value of the merged party’s
owner’s equity in the consolidated financial statements is taken as the initial investment cost of long-
term equity investments in individual financial statements. The capital reserve (stock premium or capital
premium) is adjusted according to the difference between the book value of net asset acquired through
combination and the book value of consideration paid for the combination (or total par value of shares
issued). If the capital reserve (stock premium or capital premium) is insufficient to offset, the retained
earnings shall be adjusted.
(2) Business combination not under common control
Assets paid, liabilities incurred or assumed and the equity securities issued as consideration for
combination shall be measured based on fair value on the acquisition date, the difference between fair
value and its book value shall be included in current profit and loss. The Company shall recognize the
difference of the combination costs in excess of the fair value of the net identifiable asset acquired from
the acquiree through combination as goodwill. After the review, if the combination costs are still short of
the fair value of the net identifiable asset acquired from the acquiree through combination, include the
difference in the current profit and loss.
Fees, commissions, and other transaction expenses paid on issuance of equity securities as
combination consideration in the business combination shall be included in the initial measurement
amount of equity securities.
(1) Consolidated Financial Statement Scope
The scope of the Company’s consolidated financial statements is based on control, and all subsidiaries
controlled are included in the consolidation scope of the consolidated financial statements.
(2) Consolidation procedures
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the parent company with other relevant information. When preparing
consolidated financial statements, the Company considers the whole Company as an accounting entity,
adopts unified accounting policies, and applies the requirements of ASBE related to recognition,
measurement and presentation to reflect the Company’s financial position, operating results and cash
flows.
All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the
same accounting policies and accounting periods as those of the Company. If the accounting policies or
accounting periods of a subsidiary are different from those of the Company, the financial statements of
the subsidiary, upon preparation of consolidated financial statements, shall be made necessary
adjustment based on its own accounting policies and accounting periods of the Company. For
subsidiaries acquired from the business combination not under common control, the financial
statements shall be adjusted on the basis of the fair value of identifiable net assets on the date of
purchase. For the subsidiary acquired from the business combination under common control, its assets
and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
controlling party) shall be adjusted on the basis of the book value in the consolidated statements of the
ultimate controlling party.
The portion of a subsidiary’s equity, the current net profit and loss of subsidiaries, and the current
comprehensive income attributable to non-controlling interests shall be separately presented as non-
controlling interests in consolidated balance sheet within owners' equity, below the net profit line item
and below the total comprehensive income line item in the consolidated income statement respectively.
When the amount of current loss attributable to non-controlling shareholders of a subsidiary exceeds
the balance of the non-controlling shareholders’ portion in the opening balance of owner's equity of the
subsidiary, the excess shall be allocated against the non-controlling interests.
① Acquisition of subsidiaries or business
During the reporting period, if the Company acquires subsidiaries from the business combination under
common control, the opening balance in the consolidated balance sheet shall be adjusted. The income,
expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reporting
period shall be included in the consolidated income statement. The cash flows of the newly acquired
subsidiaries from the beginning to the end of the reporting period shall be included in the consolidated
statement of cash flows. At the same time, the relevant items of the comparative information shall be
adjusted as the combined entity existed since the control point of the ultimate controlling party.
If the Company can control the investee from the business combination under common control due to
additional investment or other reasons, the parties involved in the combination shall be deemed to
adjust in the current state when the ultimate controlling party starts to control them. For the equity
investment before obtaining control of the investee, the recognized relevant profit or loss and other
comprehensive income and other changes in net assets between the later of acquisition date of
previous equity and the date on which both the investor and the investee are under common control
and the combination date shall respectively be written down the beginning retained earnings or current
profits and losses during the period of comparative information.
During the reporting period, if the Company acquires subsidiaries from the business combination not
under common control, the opening balance in the consolidated balance sheet shall not be adjusted.
The income, expenses and profits of the newly acquired subsidiaries from the acquisition date to the
end of the reporting period shall be included in the consolidated income statement. The cash flows of
the newly acquired subsidiaries from the acquisition date to the end of the reporting period shall be
included in the consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee not under common control
due to additional investment or other reasons, the Company shall re-measure the previously held equity
interests to its fair value on the acquisition date, and the difference shall be recognized as investment
income. When the previously held equity investment is accounted for under equity method, any other
comprehensive income previously recognized and other equity changes (excluding other
comprehensive, net profit and loss and profit distribution ) in relation to the acquiree’s equity changes
shall be transferred to profit and loss for the current period when acquisition took place, except for other
comprehensive income resulting from changes in net liabilities or net assets due to re-measurement of
defined benefit plan by investee.
② Disposal of subsidiaries and business
General treatments
During the reporting period, if the Company disposes subsidiaries, the income, expenses and profits of
the newly disposed subsidiaries from the beginning to the disposal date shall be included in the
consolidated income statement. The cash flows from the beginning to the disposal date shall be
included in the consolidated statement of cash flows.
In case of loss of control over the investee due to partial disposal of the equity investment or other
reasons, the Company shall re-measure the remaining equity investment at its fair value at the date of
loss of control. The amount of the consideration obtained from the disposal of the equity and the fair
value of the remaining equity, minus the net asset shares calculated continuously from the acquisition
date based on the previous shareholding proportion and the goodwill, the difference shall be included in
the investment income of the period when the control is lost. Other comprehensive income related to
the former subsidiary’s equity investment of or other changes in owners' equity excluding net profit and
loss, other comprehensive income and profit distribution shall be transferred to investment income for
the current period when control is lost. Other comprehensive income resulting from changes in net
liabilities or net assets due to re-measurement of defined benefit plan by investee is excluded.
Disposal of subsidiaries by step
If the Company loses control of a subsidiary through multiple transactions by steps, the terms,
conditions and economic impact of the disposal transaction shall be considered. When one or more of
the following conditions may indicate that multiple transactions should be treated as a package of
transactions for accounting treatment:
A. These arrangements were entered into at the same time or in contemplation of each other;
B. These arrangements work together to achieve an overall commercial effect;
C. The occurrence of one arrangement depends on the occurrence of at least one other arrangement;
D. One arrangement alone is not economically justified, but it is economically justified when considered
together with other arrangements
If the transactions of the disposal of the equity investment of the subsidiary until the loss of control
belong to a package transaction, the Company shall account for as a transaction; However, the
difference between each disposal consideration received and the corresponding proportion of the
subsidiary’s net assets before the loss of control shall be recognized as other comprehensive income in
the consolidated financial statements and transferred into the profit and loss of the current period when
the control is lost.
If the transactions from the disposal of the equity investment of the subsidiary to the loss of control are
not considered as a package transactions, the accounting treatment shall be conducted according to
the relevant policies on the partial disposal of the equity investment of the subsidiary where control is
retained before the loss of control. When the control is lost, the disposal shall be accounted for
according to the general treatment.
③ Purchase of non-controlling interests
The difference between the increase in the cost of long-term equity investment resulting from
acquisition of non-controlling shareholders and the share of net assets of the subsidiary calculated
continuously from the acquisition date or combination date based on newly acquired shareholding
proportion shall be adjusted to equity (share) premium of capital reserves in the consolidated balance
sheet. If the capital reserve is insufficient, any excess shall be adjusted against retained earnings.
④ Partial disposals of equity investment in subsidiaries without loss of control
When the Company disposes of a portion of a long-term equity investment in a subsidiary without loss
of control, the difference between disposal consideration and net assets of the subsidiary calculated
continuously since the acquisition date or the combination date related to the disposal of long-term
equity investment shall be adjusted to equity (share) premium of capital reserves in the consolidated
balance sheet. If the capital reserve is insufficient, any excess shall be adjusted against retained
earnings.
method of common operation
(1) Classification of joint venture arrangements
A joint arrangement is classified as either a joint operation or a joint venture according to the structure,
legal form, agreed terms and other facts and conditions of a joint arrangement. A joint arrangement that
is structured through a separate vehicle is usually classified as a joint venture. However, when a joint
arrangement provides clear evidence that it meets any of the following requirements and complies with
applicable laws and regulations as a joint operation:
① The legal form of the joint arrangement indicates that the parties that have joint control have rights to
the assets, and obligations for the liabilities, relating to the arrangement.
② The terms of the joint arrangement specify that the parties that have joint control have the rights to
the assets, and the obligations for the liabilities, relating to the arrangement.
③ Other facts and circumstances indicate that the parties that have joint control have rights to the
assets, and the obligations for the liabilities, relating to the arrangement. The parties that have joint
control have rights to substantially all of the output of the arrangement, and the arrangement depends
on the parties that have joint control on a continuous basis for settling the liabilities of the arrangement.
(2) Accounting by parties of a joint operator
A joint operator shall recognize the following items in relation to its interest in a joint operation, and
account for them in accordance with relevant accounting standards:
① Its solely-held assets, and its share of any assets held jointly;
② Its solely-assumed liabilities, and its share of any liabilities incurred jointly;
③ Its revenue from the sale of its share of the output arising from the joint operation;
④ Its share of the revenue from sale of the output by the joint operation; and
⑤ Its solely-incurred expenses and its share of any expenses incurred jointly.
The Company shall only recognize the portion of the profit and loss attributable to other participants in
the joint venture, resulting from investment or sale of assets to the joint venture by the Company
(excluding those assets constituting the business), prior to the sale of such assets to a third party. The
Company shall fully recognize impairment loss when there is any impairment loss of invested or sold
assets occurring in accordance with the ASBE No.8-Asset Impairment. The Company shall only
recognize the part of the profit and loss attributable to other participants in the joint venture before
selling the assets and other assets purchased from the joint venture (excluding those assets
constituting the business) to a third party. When the impairment loss of the purchased assets is in
accordance with the ASBE No.8-Asset Impairment, the Company shall recognize such losses
according to its share. When the Company does not have common control over the joint venture, if the
Company enjoys the assets related to the joint venture and assumes the liabilities related to the joint
venture, the accounting treatment shall be conducted according to the above principles. Otherwise, the
accounting treatment shall be conducted in accordance with the relevant accounting standards.
When preparing the cash flow statement, the Company recognizes cash on hand and deposits that can
be readily withdrawn on demand as cash. Cash equivalents are the Company’s short-term (due within 3
months from purchase date), highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value. Restricted bank deposits are not
recognized as cash and cash equivalents in the cash flow statement.
(1) Foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company, the amount in the
foreign currency shall be translated into the amount in CNY currency at the spot exchange rate of the
transaction date. For the monetary items of foreign currencies, the translation is done according to spot
rate of the balance sheet date. The exchange difference generated from the difference of spot rate of
the current balance sheet date and the time of initial recognition of a foreign currency or the previous
balance sheet date is charged to the profit or loss of the current period except that the exchange
difference generated from foreign currency borrowings relating to assets of which the acquisition or
production satisfies the capitalization conditions is capitalized.
Non-monetary items measured at fair value that is reflected in foreign currency at the end of the period,
the Company shall firstly translate the foreign currency into the amount in functional currency at the
spot exchange rate on the date when the fair value is determined, and then compare it with the original
functional currency amount. Difference between the translated functional currency amount and the
original functional currency amount is treated as profit or loss from changes in fair value (including
changes in exchange rate) and is recognized in current profit and loss. If there is a non-monetary item
of available-for-sale financial assets, the differences are recorded into other comprehensive income.
(2) Translation of foreign currency statements
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance
sheet date. Shareholders’ equity items, except for the item of "undistributed profits", are translated at
the spot exchange rates on the dates when the transactions occur. Revenue and expense items in the
income statement are translated at the spot exchange rates on the dates when the transactions occur
or at the exchange rate determined in a systematic and reasonable method and similar to the spot
exchange rate on the day when the transactions occur. Differences arising from the above translations
of foreign currency financial statements are separately listed under other comprehensive income in the
consolidated balance sheet. If the overseas business is partly disposed of, the foreign currency
financial statements exchange difference shall be calculated in proportion to the percentage of disposal
and transferred to gain or loss on disposal for the current period.
Foreign currency cash flow and cash flow of foreign subsidiaries shall be translated at approximate
exchange rate of spot rate on the date of cash flow.
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. When the Company becomes a party to a financial
instrument contract, the related financial asset or financial liability should be recognized.
(1) Classification, recognition and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristics
of financial assets, the Company classifies financial assets into: financial assets measured at amortized
cost; financial assets measured at fair value with their changes included into other comprehensive
income; and financial assets measured at fair value with their changes included into current
profits/losses.
At the initial recognition, financial assets are measured at fair value. For financial assets measured at
fair value with their changes included into current profits/losses, the expenses involved in the
transaction are directly recorded into current profits/losses; for other financial liabilities, the expenses
involved in the transaction are recorded into the initially recognized amount.
① Financial assets measured at amortized cost
The business model in which the Company manages financial assets measured at amortized cost aims
to receive contract cash flow. Furthermore, the characteristics of the contract cash flow of such financial
assets are consistent with basic borrowing and lending arrangements, which means that cash flow
generated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial assets, performs
subsequent measurement of them at amortized cost, and includes the gains or losses from
derecognition, changes or impairment of them into current profits/losses.
② Financial assets measured at fair value with their changes included into other comprehensive
income
The business model in which the Company manages such financial assets both aims to receive
contract cash flow and for the purpose of sale. Furthermore, the characteristics of the contract cash
flow of such financial assets are consistent with basic borrowing and lending arrangements. The
Company measure such financial assets at fair value and include their changes into other
comprehensive income, but record impairment losses or gains, exchange gains or losses and interest
income calculated in the effective interest method into current profits/losses.
At the initial recognition, the Company may specify non-trading equity instrument investment as a
financial asset measured at fair value with its changes included into other comprehensive income and
should recognize the dividend income according to regulations; the specification is irrevocable once
made. When the financial asset is derecognized, the cumulative gains or losses previously included into
other comprehensive income should be transferred into retained earnings.
③ Financial assets measured at fair value with their changes included into current profits/losses
For financial assets other than the above financial assets measured at amortized cost and financial
assets measured at fair value with their changes included into other comprehensive income, the
Company classifies them as financial assets measured at fair value with their changes included into
current profits/losses. In addition, at the initial recognition, the Company specifies partial financial
assets as financial assets measured at fair value with their changes included into current profits/losses,
in order to eliminate or substantially reduce accounting mismatch. For such financial assets, the
Company performs subsequent measurement using fair value and records changes in the fair value
into current profits/losses.
(2) Classification, recognition and measurement of financial liabilities
At their initial recognition, financial liabilities are divided into financial liabilities measured at fair value
with their changes included into current profits/losses and other financial liabilities. For financial
liabilities measured at fair value with their changes included into current profits/losses, the expenses
involved in the transaction are directly recorded into the current profits/losses. For other financial
liabilities, the expenses involved in the transaction are recorded into the initially recognized value.
① Financial liabilities measured at fair value with their changes included into current profits/losses
Financial liabilities measured at fair value with their changes included into current profits/losses include
trading financial liabilities (including derivatives classified as financial liabilities) and the financial
liabilities specified to be measured at fair value with their changes included into current profits/losses at
the initial recognition.
Trading financial liabilities (including derivatives classified as financial liabilities) are subsequently
measured at fair value, with changes in fair value recorded into current profits/losses, except for those
related to hedge accounting.
For those specified as financial liabilities measured at fair value with their changes included into current
profits/losses, changes in the fair value of such liabilities caused by changes in the Company’s own
credit risk should be included into other comprehensive income. In derecognition of such liabilities,
cumulative changes in their value caused by the Company’s own credit risk that have been recorded
into other comprehensive income should be transferred into retained earnings. Other changes in their
fair value should be recorded into current profits/losses. If treatment of the impact of the Company’s
own credit risk changes of such financial liabilities in the above manner causes or expands accounting
mismatch in profits/losses, the Company will include all gains or losses of such financial liabilities
(including the amount of the impact of the Company’s own credit risk changes) into current
profits/losses.
② Other financial liabilities
Financial liabilities other than those formed from the transfer of financial assets not meeting
derecognition conditions or continuous involvement into transferred financial assets and those outside
financial guarantee contracts are classified as financial liabilities measured at amortized cost. Such
financial liabilities should be subsequently measured at amortized cost and the gains or losses from
derecognition or amortization should be included into current profits/losses.
(3) Recognition basis and measurement method of transfer of financial assets
If a financial asset meets any of the following conditions, it shall be derecognized: 1)The contractual
right for collecting the cash flow of the financial asset has been terminated; 2)The financial asset has
been transferred and almost all the risks and remunerations in respect of the ownership of the financial
asset have been transferred to the transferee; 3)The financial asset has been transferred, and although
the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset, it has abandoned its control over the asset.
If the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset and does not abandon its control over the asset, the involved financial
asset shall be recognized according to the level of continuous involvement of the transferred financial
asset and the relevant liabilities shall be recognized accordingly. The level of continuous involvement of
the transferred financial asset refers to the level of risk faced by the enterprise due to changes in the
value of the financial asset.
If the overall transfer of the financial asset meets the recognition conditions, the difference between the
carrying value of the transferred financial asset as well as the consideration received from the transfer
and the cumulative amount of fair value changes originally-recorded into other comprehensive incomes
shall be recorded into the current profits/losses.
If partial transfer of the financial asset meets the recognition conditions, the carrying value of the
transferred financial asset shall be apportioned at the relative fair value between the derecognition and
underecognition part. The difference between the summation of the consideration received from the
transfer and the cumulative amount of fair value changes originally-recorded into other comprehensive
incomes that should be apportioned to the derecognition part and the apportioned aforementioned
carrying value shall be recorded into the current profits/losses.
For a financial asset sold with the right of recourse or with the transfer of the financial asset
endorsement, the Company shall decide whether almost all the risks and remunerations in respect of
the ownership of the financial asset should be transferred. If they are transferred, the financial asset
shall be derecognized; if they are retained, the financial asset shall not be derecognized; if they are
neither transferred nor retained, the Company will continue to decide whether the enterprise should
retain control over the asset and perform the accounting treatment according to the principles stated in
previous paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part of it) is relieved, the Company will
derecognize the financial liability (or the part of it). When the Company (borrower) signs an agreement
with a lender to replace an original financial liability in the form of bearing a new financial liability and
the contract terms for the new financial liability differ from those for the original in substance, the
original financial liability should be derecognized and the new one should be recognized. When the
Company makes substantial changes to the contract terms of an original financial liability (or a part of it),
the original financial liability should be derecognized and a new financial liability should be recognized
according to the amended contract terms.
When a financial liability (or a part of it) is derecognized, the Company will include the difference
between its carrying value and the consideration paid (including non-cash assets or liabilities borne that
are transferred out) into current profits/losses.
(5) Offsetting of financial assets and financial liabilities
When the Company has the legal right to offset recognized financial assets and financial liabilities and
may execute the legal right currently and simultaneously, the Company plans to settle or
simultaneously encash the financial assets in net amounts and pay off the financial liabilities, the
financial assets and the financial liabilities which are presented in the net amount after the mutual offset
in the balance sheet. Other than that, they shall be presented separately in the balance sheet without
the mutual offset.
(6) Method of determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can receive for selling an asset or transferring a
liability in an orderly transaction on the measurement date. For an existing financial instrument in an
active market, the Company adopts the quotations in the active market to determine its fair value.
Quotations in the active market refer to prices that can be easily obtained from exchanges, brokers,
industrial associations and pricing service institutions and represent the actual prices in the market
transactions happening in a fair trade. For a non-existing financial instrument in an active market, the
Company adopts the valuation technique to determine its fair value. The valuation technique includes
references to familiar situations and the prices used by the parties voluntarily participating in the recent
market transactions, as well as references to the present fair value of other financial instruments of the
same nature, discounted cash flow method and options pricing model. In the valuation, the Company
uses a valuation technique that is applicable in the current situation with sufficient data available and
other information support, chooses input values that are consistent with the asset or liability
characteristics considered by market players in related asset or liability transactions, and makes
maximum effort to use related observable input values on a preferential basis. When it is unable or
unfeasible to obtain related observable input values, unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets after
the deduction of all liabilities. The Company’s issuance (including refinancing), repurchase, sale or
cancellation of equity instruments serve as the change treatment of equity. Transaction expenses
related to the equity transactions are deducted from the equity. The Company does not recognize
changes in the fair value of equity instruments.
Dividends from the Company’s equity instruments distributed during the validity (including the “interests”
from instruments classified as equity instruments) are treated as profit distribution.
(8) Impairment of financial instruments
Based on the expected credit loss, the Company treats financial assets measured at amortized cost
and debt instrument investment measured at fair value with their changes included into other
comprehensive income by impairment and recognizes the provision for loss.
Credit loss means the difference between all contract cash flow discounted at the original effective
interest rate to be received according to contracts and all contract cash flow expected to be received,
namely, the present value of all cash shortage. For a financial asset with credit impairment purchased
by or originated from the Company, it should be discounted by the effective interest rate after credit
adjustment to the financial asset.
For accounts receivable that do not contain significant financing components, the Company adopts
simplified measurement to measure loss provisions according to the amount equivalent to the expected
credit loss for the entire duration.
For a financial asset other than those using the above simplified measurement, the Company assesses
on each balance sheet date whether its credit risk has substantially increased since the initial
recognition. If it has not and is in the first stage, the Company will measure the loss provision at the
amount equivalent to the expected credit loss for the next 12 months and calculate the interest income
according to the book balance and the effective interest rate; if it has substantially increased since the
initial recognition without credit impairment and is in the second stage, the Company will measure the
loss provision at the amount equivalent to the expected credit loss for the entire duration and calculate
the interest income according to the book balance and the effective interest rate; if credit impairment
has occurred since the initial recognition and is in the third stage, the Company will measure the loss
provision by the amount equivalent to the expected credit loss for the entire duration and calculate the
interest income according to the amortization cost and the effective interest rate. For financial
instruments with low credit risks on balance sheet dates, the Company assumes that their credit risks
have not substantially increased since the initial recognition.
The Company assesses expected credit losses of financial instruments based on individual and group
assessment. The Company considers the credit risk characteristics of different customers and
assesses the expected credit losses of accounts receivable and other receivables based on account
age portfolio. When assessing expected credit losses, the Company considers reasonable and well-
founded information on past matters, present conditions and forecast of future economic conditions.
When it no longer reasonably expects to recover all or part of the contract cash flow of financial assets,
the Company will directly write down the book balance of such financial assets.
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
Divide notes receivables into various portfolios according to common risk characteristics based on the
credit risk characteristics of acceptors and determine the accounting estimate policies of expected
credit loss
Portfolio name Provision method
Bank acceptance bill The management evaluates that this type has low credit risk and its fixed bad
portfolio debt provision ratio is 0%.
Trade acceptance The provision for impairment is made according to the expected loss rate with
portfolio the same portfolio classification of accounts receivable
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
As for accounts receivable, regardless of whether there is a significant financing component, the
Company always measures the provision for loss based on the amount equivalent to the expected
credit loss over the entire life, and the resulting increase or reversal of provision for loss shall be
included in the current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment,
the Company shall make bad debt provision for the account receivable and recognize the expected
credit loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the accounts receivable portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios:
Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercompany funds among the Company and businesses under
common control, the recovery of which is controllable with no risks. Thus, no bad debt provision was
made.
The aging calculation method of credit risk characteristic portfolio based on aging:
The Company combines the accounts receivable classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at
default and expected credit loss rate over the entire life based on the current situation and prediction of
future economic situation consulting historical credit loss experience. The comparative table of the
credit loss rate is as follows:
Ageing Expected loss provision rate %
Within 1 year 5
Over 5 years 100
The ageing of accounts receivable is calculated from the month in which the amounts are actually
incurred.
The accounts receivable financing of the Company refer to the notes receivables measured at fair value
through other comprehensive income on the balance sheet date. For more details, see Note 5.11
Financial instruments.
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
As for other receivables, regardless of whether there is a significant financing component, the Company
always calculates the expected credit loss through the exposure at default and expected credit loss rate
in the next 12 months or over the entire life based on the current situation and prediction of future
economic situation consulting historical credit loss experience, and the resulting increase or reversal of
provision for loss shall be included in the current profit or loss as gains or losses on impairment. The
accrual method is as follows:
(1) When there is objective evidence showing that the other receivable has incurred credit impairment,
the Company shall make bad debt provision for the other receivable and recognize the expected credit
loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the other receivables portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios.
Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercompany funds among the Company and businesses under
common control, the recovery of which is controllable with no risks. Thus, no bad debt provision was
made.
The Company combines the other receivables classified as risk portfolio in accordance with similar
credit risk characteristics, and calculates the expected credit loss through the exposure at default and
expected credit loss rate in the next 12 months or over the entire life based on the current situation and
prediction of future economic situation consulting historical credit loss experience.
The Company presents contract assets or contract liabilities on the balance sheet according to the
relationship between the fulfillment of its contract performance obligations and its customers’ payment.
Considerations that the Company has the right to collect for commodities transferred or services
provided to customers (and such right depends on other factors than time lapses) are presented as
contract assets. The Company presents the right possessed to collect consideration from customers
unconditionally (only depending on the passing of time) as accounts receivable. Refer to “The method
of determining the expected credit loss of accounts receivable and accounting treatment method” for
the detail on the Company’s method of determining the expected credit loss of contract assets and
accounting treatment method.
(1) Classification of inventory
Inventories are classified as: raw materials, goods in progress (including semi-finished goods), stock
commodities, and dispatched inventories.
(2) Measurement method of acquiring and dispatching inventories
The standard cost is used for daily accounting of raw materials, and the difference of material cost
should be carried forward on a monthly basis to adjust the standard cost into the actual cost; The goods
in progress (including semi-finished goods) shall be accounted according to the actual cost, and the
weighted average method shall be used when they are received and delivered. The actual cost of the
inventory at the end of the month above shall be taken as the standard cost, and the delivery shall be
priced according to the standard cost. At the end of the month, the standard cost of the inventory at the
end of the month shall be adjusted into the actual cost through the cost-sharing difference.
(3) Determining criteria and method of provision for stock obsolescence
At the end of the period, inventory is measured according to the lower of cost and net realizable value.
The difference between inventory cost and net realizable value is higher than the provision for stock
obsolescence, which is recorded into current profit and loss. For inventories that are related to product
ranges produced and sold in the same district or used for the same or similar ultimate purpose and are
difficult to be measured separately from other inventories, the Company provides for stock
obsolescence as a whole. For inventories that have large quantities but low value, the Company
provides for stock obsolescence on a category basis.
The materials held for production shall be measured at cost if the net realizable value of the finished
products is higher than the cost. If a decline in the value of materials shows that the net realizable value
of the finished products is lower than the cost, the materials shall be measured at the net realizable
value.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Packing materials and low-cost consumables are amortized in full at once.
(1) Determining criteria for non-current assets held for sale or disposal groups
The Company shall classify the non-current assets or disposal group meeting the following conditions
into the held-for-sale category: The assets (or disposal group) must be available for immediate sale in
its present condition subject only to terms that are usual and customary for sales of such assets (or
disposal groups); Its sale must be highly probable; The Company has already made a decision to
dispose the component and has a commitment from the purchaser, the transfer will be completed within
one year.
The non-current assets or disposal group acquired by the Company for resale shall be divided into the
held-for-sale category on the acquisition date if it meets the condition that "the sale is expected to be
completed within one year" and if it is likely to meet other conditions for the held-for-sale category within
a short period (usually three months).
Due to one of the following reasons which the Company is unable to control, leading to the transactions
not completed with non-related party within one year, and the Company still commits to selling non-
current assets or disposal groups, it can continue to account for non-current assets or disposal groups
as held-for-sale: the buyer or any other party accidentally sets sale extension conditions. The Company
has to take action in time according to these conditions and the extension problem is expected to be
solved within one year; In rare cases, the Company has taken the necessary steps and re-satisfies the
hold for sale category condition within the first year for the new circumstances which caused it unable to
complete the sale of the non-current assets or disposal group within one year.
(2) Accounting treatment of non-current assets or disposal groups held for sale
① Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
at balance sheet date subsequently, the impairment loss should be recognized if the book value is
higher than fair value less costs to sell by the amount of the difference between these two in profit and
loss, the provision for assets held for sale need to be recognized at the same time.
For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date,
they shall be measured as the lower of the initial measurement amount and the net amount after
deducting the selling expenses from the fair value under the assumption that it is not divided into held-
for-sale categories at the initial measurement. Except for the non-current assets or the disposal groups
obtained in the enterprise merger, the difference caused by the non-current assets or the disposal
groups taking the net amount after the fair value minus the selling expenses as the initial measurement
amount shall be recorded into the current profit and loss.
For the impairment of disposal group, it should write off goodwill if existing, and then write down the
related assets proportionally.
Depreciation or amortization should cease for the non-current asset held for sale. Interest and other
charges on liabilities in the disposal groups held for sale continue to be recognized.
② Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet date
increases after the fair value minus the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized after being classified as the held-for-sale
shall be reversed, and the reversed amount shall be included in the current profit and loss. The
impairment loss recognized before the classification of the held-for-sale shall not be reversed.
If the net amount of the disposal groups held for sale on the subsequent balance sheet date increases
after the fair value deducting the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized as non-current assets after being
classified as the held-for-sale shall be reversed, and the reversed amount shall be included in the
current profit and loss. The book value of the goodwill that has been written down and the impairment
losses recognized before the classification of the held-for-sale shall not be reversed.
The subsequent reversed amount of the impairment loss recognized by the disposal groups held for
sale shall be increased in proportion to the book value of non-current assets except goodwill in the
disposal groups.
③ Recognition criteria and presentation of discontinued operations
Non-current assets or disposal groups that are no longer divided into held-for-sale category or non-
current assets are removed from disposal groups held for sale because of no longer meeting the
condition of classification of held-for-sale, they are measured at lower of the following two: book value
before being classified as the held-for-sale considering depreciation, amortization or impairment that
should have been recognized under the assumption that it is not divided into held-for-sale categories;
and recoverable amount.
When terminating the recognition of the non-current assets held for sale or the disposal groups, the
unrecognized gains or losses shall be recorded into the current profit and loss.
(1) Judgment criteria of common control and significant influence
Common control on an agreement with other participants refers to the Company share control with
other participants on an arrangement according to relevant conventions, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.
This arrangement belongs to joint venture. Where the joint venture arrangement is made by a separate
entity and the Company is judged to have rights to the net assets of such a separate entity according to
the relevant conventions. Such a separate entity shall be regarded as a joint venture and accounted by
the equity method. If the Company is judged to be not entitled to the net assets of the separate entity
according to relevant conventions, the separate entity shall be regarded as a joint venture and the
Company shall recognize the items related to the shares of the joint venture and perform accounting
treatment in accordance with relevant accounting standards.
The term ‘significant influence’ refers to the power to participate in decision-making on the financial and
operating policies of the investee, but with no control or joint control over the formulation of these
policies. The Company judges that it has a significant impact on the invested entity through one or more
of the following situations and taking all the facts and circumstances into consideration:
① Dispatch representatives to the board of directors or similar authorities of the investee.
② To participate in the financial and business policy making process of the investee.
③ Significant transactions with the investee.
④ Dispatch management personnel to the investee.
⑤ To provide key technical data to the investee.
(2) Determination of the initial investment cost
① Long-term equity investment resulting from combination
Business combination under common control：For the long-term equity investments obtained by cash
paid, non-monetary assets paid or assumed liabilities and the equity securities issued by the acquirer,
on the merger date, the initial investment cost of long-term equity investment shall be taken as the
share of the owner's equity of the investee in the book value of the final control party's consolidated
financial statements. If the investee under business combination under common control can be
controlled due to additional investment or other reasons, the initial investment cost of long-term equity
investment shall be determined on the merger date according to the share of the net assets of the
investee in the book value of the final control party's consolidated financial statements. The difference
between the initial investment cost of the long-term equity investment on the merger date and sum of
the book value of the long-term equity investment before the merger and the new consideration of
acquiring shares on the merger date shall be recorded to adjust the equity premium. If the equity
premium is insufficient to be written down, the retained earnings shall be written down.
Business combination not under common control ： The Company takes the initial investment cost of
long-term equity investment as the merger cost determined on the purchase date. If the investee can be
controlled under business combination not under common control due to additional investment or other
reasons, the previous book value of the equity investment held plus the sum of the newly added
investment cost shall be taken as the initial investment cost calculated according to the cost method.
② Long-term equity investment obtained by other means
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value as
the initial investment costs.
For the long-term equity investments acquired by the issue of equity securities, the initial investment
cost shall be the fair value of the equity securities issued.
For long-term equity investments obtained by non-monetary assets exchange, under the condition that
an exchange of non-monetary assets is of commerce nature and the fair value of assets exchanged
can be reliably measured, non-monetary assets traded in is initially stated at the fair value of the assets
traded out, unless there is conclusive evidence indicating that the fair value of the assets traded in is
more reliable; if the above conditions are not satisfied, initial investment costs of long-term equity
investments traded in shall be recognized at the book value of the assets traded out and the relevant
taxes and surcharges payable.
For long-term equity investments obtained by debt restructuring, the Company recognizes the fair value
of shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
① Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
long-term equity investments accounted at the cost method, except cash dividends or profits declared
but not yet distributed which are included in the actual payments or the consideration actually paid for
the investment, the cash dividends or profits declared by the investee shall be recognized as the
investment income irrespective of net profits realized by the investee before investment or after
investment.
② Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee, the
equity method is adopted for accounting. For long-term equity investments measured at the equity
method, if the initial investment costs are higher than the investor’s attributable share of the fair value of
the investee’s identifiable net assets, no adjustment will be made to the initial costs of the long-term
equity investments; if the initial investment costs are lower than the investor’s attributable share of the
fair value of the investee’s identifiable net assets, the difference shall be recognized in current profit and
loss.
The Company shall, according to the shares of net profits and other comprehensive income realized by
the investee that shall be enjoyed or borne by the Company, recognize the profit and loss on the
investments and adjust the book value of the long-term equity investments. When recognizing the net
profits and losses and other comprehensive income of the investee that the Company shall enjoy or
bear, the Company shall make a recognition and calculation based on the net book profits and losses of
the investee after appropriate adjustments. However, where the Company is unable to obtain the
relevant information due to failure to reasonably determine the fair value of the investee’s identifiable
assets, minor difference between the investee’s identifiable assets and the book value thereof or other
reasons, the profits or losses on the investments shall be directly calculated and recognized based on
the net book profits and losses of the investee. The Company shall calculate the part distributed from
cash dividends or profits declared by the investee and correspondingly reduce the book value of the
long-term equity investments. When recognizing the income from investments in associates and joint
ventures, the Company shall write off the part of income from internal unrealized transactions between
the Company and associates and joint ventures which are attributable to the Company and recognize
the profit and loss on investments on such basis. Where the losses on internal transactions between
the Company and the investee are impairment of related assets, full amounts of such losses shall be
recognized. Profit and loss from internal unrealized transactions between the Company’s subsidiaries
included into the combination scope and associates and joint ventures shall be written off according to
the above principles and the profit and loss on investments thereafter shall be recognized on such basis.
When the share of net loss of the investee attributable to the Company is recognized, it is treated in the
following sequence: Firstly, write off the book value of the long-term equity investments; where the book
value of the long-term equity investments is insufficient to cover the loss, investment losses are
recognized to the extent that book value of long-term equity which form net investment in the investee
in other substances and the book value of long-term receivables shall be written off; after all the above
treatments, if the Company still assumes additional obligation according to investment contracts or
agreements, the obligation expected to be assumed should be recognized as provision and included
into the investment loss in the current period. If the investee is profitable in subsequent accounting
periods, the Company shall treat the loss in reverse order against that described above after deducting
unrecognized share of loss: i.e. write down the book value of the recognized provision, then restore the
book value of long-term interests which substantially form net investments in the investee, then restore
the book value of long-term investments, and recognize investment income at the same time.
Measurement model of investment property
Cost model
Method of depreciation or amortization
Investment property is the property that is held to earn rent or capital appreciation or both and can be
measured and sold separately. The Company’s investment property includes land use right for rent,
land use right held for appreciation and then sold, and buildings for rent.
(1) Initial Recognition
When the Company can obtain the rental income or value-added income related to the investment
property and the cost of the investment property that can be measured reliably, the Company will
initially measure it according to the actual expenditure of purchase or construction:
The cost of the purchased investment property includes the purchase price and related taxes directly
attributable to the asset;
The cost of self-built investment property consists of the necessary expenses incurred before the asset
reaches the intended use condition;
The cost of the investment property obtained by other means shall be recognized in accordance with
relevant accounting standards.
(2) Subsequent measurement
In general, the Company adopts the cost model to measure the follow-up expenditure of investment
property. The depreciation or amortization of investment property shall be carried out in accordance
with the accounting policies for the Company's fixed assets or intangible assets.
If there is solid evidence that suggests that the investment property acquired can be measured at fair
value continuously and reliably, the Company can use fair value model for subsequent measurement.
For the investment property measured at fair value model, the Company does not provide depreciation
or amortization and adjusts its book value based on the fair value of investment property at the balance
sheet date. The difference between the fair value and book value is recorded into current profit or loss.
(3) When the Company changes the use of investment property, the relevant investment property will
be transferred to other assets.
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing
services, renting or business management with useful life exceeding one accounting year. Fixed
assets are recognized when the following criteria are satisfied simultaneously: It is probable that the
economic benefits relating to the fixed assets will flow into the Company; the cost of the fixed assets
can be measured reliably.
(2) Depreciation of fixed assets
Estimated Annual
Depreciation Estimated useful
Category residual value depreciation rate
method life (Year)
rate (%) (%)
Buildings and Straight-line
Constructions
method
Special Straight-line
equipment 5－35 5% 19.00%－2.71%
method
Universal Straight-line
equipment
method
Transportation Straight-line
equipment 6 5% 15.83%
method
Straight-line
Other equipment 4－16 5% 23.75%－5.94%
method
Except for fixed assets still in use after full depreciation, the Company depreciates all fixed assets and
calculates the depreciation in the straight-line depreciation method.
Based on the nature and use of fixed assets, the Company determines their service life and estimated
net salvage value and reviews their service life, estimated net salvage value and depreciation method
at the end of the year. Changes in the service life, estimated net salvage value and depreciation
method of the same type of assets are treated as changes in accounting estimation.
(3) Impairment test method and impairment provision accrued method of fixed assets
At the end of the period, the fixed assets shall be measured at the lower of the book value and the
recoverable amount. If the recoverable amount of fixed assets is lower than the book value due to a
continuous decline in the market value, or technological obsolescence, damage, or long-term idleness,
a provision for impairment of the fixed assets shall be made for the difference between the recoverable
amount and the book value of individual fixed assets. If the recoverable amount of the individual asset
is difficult to estimate, the Company will determine the recoverable amount of the asset group based on
the asset group to which the asset belongs. The impairment losses on fixed assets must not be
reversed in subsequent accounting periods once recognized.
For fixed assets for which depreciation provision has been made, the depreciation rate and depreciation
amount shall be remeasured according to the book value of the fixed assets (the original price of fixed
assets minus accumulated depreciation and provision for impairment), and the remaining service life.
On the balance sheet date, the fixed assets shall be measured at the lower of the book value and the
recoverable amount.
(1) Construction in progress refers to various construction and installation works carried out for the
construction or repair of fixed assets, including the actual expenditure incurred in new construction,
reconstruction and expansion, and the net value of fixed assets transferred from the reconstruction and
expansion projects.
(2) Construction in progress is accounted on an individual project basis with actual cost valuation
method. The borrowing costs incurred before the projects reach the intended use condition shall be
included in the project cost. The fixed assets shall be carried forward in the month when the project is
qualified for acceptance and delivery for use. For those that have reached the intended use condition
but have not yet completed the final account, from the date of reaching the intended use condition,
according to the project budget, construction cost or the actual cost of the project, the cost transferred
to the fixed assets shall be determined according to the estimated value, and the depreciation shall be
recognized; After the completion of the final account, the original provisional value shall be adjusted
according to the actual cost, but the amount of depreciation accrued shall not be adjusted.
(3) The loan interest and related expenses incurred during the construction period shall be capitalized
into the cost of the construction in Progress.
(4) On the balance sheet date, the construction in progress is recognized at the lower of book value and
recoverable amount.
(1) Scope of borrowing costs and its capitalization conditions
The Company’s borrowing costs capitalized during period of capitalization are relevant loan expenses
directly attributable to the assets eligible for capitalization, including interest thereon, amortization of
discounts or premiums, ancillary expenses and exchange differences incurred from foreign currency
loan, etc.
Borrowing costs are capitalized when the following three conditions are met simultaneously: ① the
asset expenditure has occurred, ② the borrowing costs have occurred, ③ the purchase and
construction activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed for
acquiring and constructing or producing assets eligible for capitalization, borrowing costs of special loan
actually incurred in the current period less the interest income of the loans unused and deposited in
bank or return on temporary investment should be recognized as the capitalization amount of borrowing
costs. As for general loans used for acquiring and constructing or producing assets eligible for
capitalization, the interest of general loans to be capitalized should be calculated by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements in excess of
special loans by the capitalization rate of used general loans. During the period of capitalization, the
capitalized amount of interest of each accounting period shall not exceed the current actual interest of
the relevant loans. Where there are discounts or premiums on loans, the amounts of interest for each
accounting period should be adjusted taking account of amortizable discount or premium amounts for
the period by effective interest method. Auxiliary expenses incurred from special loans before the
acquired or constructed assets eligible for capitalization reach the working condition for their intended
use or sale should be capitalized when they incur and charged to the costs of assets eligible for
capitalization; those incurred after the acquired or constructed assets eligible for capitalization reach the
working condition for their intended use or sale should be recognized as costs according to the
amounts incurred when they incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
① For a special loan for the purchase and construction of fixed assets, the capitalization rate is the
interest rate of the loan;
② For more than one special loan for the acquisition and construction of fixed assets, the capitalization
rate is a weighted average interest rate of these loans.
(4) Suspension of capitalization of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months, the capitalization of
borrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
profit or loss for the current period, and the capitalization of borrowing costs continues when the
acquisition and construction or production activities of the asset resume.
(5) Cessation of capitalization of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets
eligible for capitalization have reached the working condition for their intended use or sale. Borrowing
costs incurred after the assets eligible for capitalization have reached the working condition for their
intended use or sale should be recognized as the current profit and loss when they incur. If parts of the
acquired and constructed or produced assets are completed separately but the assets cannot be used
or sold externally until overall completion, the capitalization of borrowing costs should cease at the time
of overall completion of the said assets.
(1) Useful life and the basis for its determination, estimation, amortization methodology or
review procedures
Intangible assets refer to identifiable non-monetary assets that are owned or controlled by the Company
without a physical form. The Company’s intangible assets consist of land use rights, software,
trademark use rights, patent rights and data resources.
① Measurement method
A. Costs of intangible assets purchased include purchase price, related tax and expenses and other
expenditure that can be distributed to the asset directly to reach its expected use.
B. Intangible assets invested by investors shall be valued at the value agreed upon in the investment
contract or agreement;
C. Expenses on the research phase of internally researched and developed intangible assets shall be
included in the current profit and loss when they incur; The expenditures incurred in the development
stage of the internal research and development projects shall be recognized as intangible assets when
the following conditions are met; otherwise, they shall be recorded into the current profit and loss when
they incur.
a. It is technically feasible to finish intangible assets for use or sale;
b. It is intended to finish and use or sell the intangible assets;
c. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
d. It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
e. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
D. If payment of the purchase price of intangible assets can be deferred and exceeds normal credit
conditions, the purchase has the nature of finance in fact and cost of the intangible asset shall be
determined on the basis of present value of the purchase price. The difference between the amount
actually paid and the present value of the purchase price should be recorded into current profit or loss
other than the differences that should be capitalized during the credit period.
② Useful life and the basis for its determination, estimation, amortization methodology or review
procedures
For intangible assets with limited useful life, amortization shall be carried out according to the straight-
line method within the period that brings economic benefits to the enterprise. At the end of each period,
the useful life and amortization method of intangible assets with limited service life shall be reviewed. If
there are differences with the original estimates, corresponding adjustments shall be made.
Intangible assets whose useful life is uncertain shall be regarded as intangible assets if it is impossible
to foresee the term in which intangible assets bring economic benefits to the enterprise. Intangible
assets with uncertain useful life shall not be amortized during the holding period, and the life of
intangible assets shall be reviewed at the end of each period. If it is still uncertain after the review at the
end of the period, the impairment test shall continue during each accounting period. At the end of each
period, the useful life of intangible assets with uncertain service life shall be reviewed.
③ Impairment test
On the balance sheet date, intangible assets are valued at the lower of book value and recoverable
amount.
(2) The scope of research and development expenditure collection and the related accounting
treatment
The R&D expenditure of the Company mainly include the materials consumed in the implementation of
R&D activities, salaries of R&D department employees, depreciation and amortization of assets such as
equipment and software used in research and development, R&D testing, R&D technical service fees,
and licensing fees.
The expenditures incurred in the development stage of the research and development projects shall be
recognized as intangible assets when the following conditions are met; otherwise, they shall be
recorded into the current profit and loss when they occur.
① It is technically feasible to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
④ It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
⑤ The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
Development expenditures that have been recorded into profit and loss in previous periods are not
recognized as assets in subsequent periods. The capitalized expenditure in the development stage is
listed as development expenditure in the balance sheet, and it will be recorded into intangible assets
from the date when the project reaches its intended purpose.
On the balance sheet date, the Company makes a judgment on whether there are signs of possible
impairment of long-term assets. If there are impairment indicators of non-current assets, the Company
estimates the recoverable amount based on individual asset. If recoverable amount of individual asset
is difficult to be estimated, the Company should recognize the recoverable amount of the asset group
which the individual asset belongs to.
The recoverable amount is the higher of fair values less costs of disposal and the present values of the
future cash flows expected to be derived from the asset.
If the measurement result of recoverable amount shows that recoverable amount of the non-current
assets is less than its book value, the book value shall be written down to the recoverable amount, and
the amount written down shall be recognized as the impairment loss of assets, recorded into the current
profit and loss, and the corresponding impairment provision of assets shall be made at the same time.
Once impairment loss stated above is recognized, reversal is not allowed in the subsequent accounting
periods.
After the recognition of the impairment loss, the depreciation or amortization expense of the impairment
asset shall be adjusted accordingly in the future period so as to systematically apportion the adjusted
book value of the asset (deducting the expected net salvage value) within the remaining service life of
the asset.
The Company should perform impairment test for goodwill and intangible assets with indefinite life at
least at each year end, no matter whether there is impairment indicator.
Goodwill shall be combined with its related asset group or asset group portfolio so as to perform an
impairment test. When the Company performs an impairment test on relevant asset group or asset
group portfolio including goodwill, if there are signs of impairment, the Company shall firstly perform an
impairment test on asset group or asset group portfolio excluding goodwill and calculate the
recoverable amount, and compare with the related book value, recognize the corresponding impairment
loss. Then, the Company performs an impairment test on relevant asset group or asset group portfolio
including goodwill, and compares the book value of the relevant asset groups or asset group portfolio
(including proportional book value of goodwill) with its recoverable amount. If the recoverable amount of
relevant asset group or asset group portfolio is less than its book value, the Company shall recognize
impairment loss of goodwill.
Long-term deferred expenses shall be initially measured according to the actual costs incurred. It is
amortized using the straight-line method over the beneficial period. If it cannot benefit the following
accounting period, the amortized value of the item that has not been amortized will be transferred to the
current profit and loss.
The recognition method of contract liabilities: The Company presents contract assets or contract
liabilities on the balance sheet according to the relationship between the fulfillment of its contract
performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of
transferring commodities or providing services to customers, as the Company has received or should
receive customers’ considerations, are presented as contract liabilities.
(1) Accounting treatment method of short-term benefits
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the
reporting period in which the employee provided relevant services, excluding the compensation for
employment termination. Accrued short term benefits will be recognized as liability during the
accounting period in which the employee is providing the relevant service to the Company. The liability
will be included in the current profit and loss or the relevant assets cost.
(2) Accounting treatment method of post-employment benefits
① Defined contribution plan
The defined contribution plan of the Company includes payments of basic pension and unemployment
insurance calculated according to the local payment base and proportion. The amount shall be included
into the profit and loss or the relevant assets cost for the accounting period in which the employee
provides the service to the Company.
② Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method, the
Company will record the benefit obligation generated by the defined benefit plan belonging to the period
during which the employee provides the service into the current profit and loss or the relevant assets
cost.
The deficit or surplus resulting from the present value minus the fair value of the assets of a defined
benefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in the
defined benefit plan, the net assets of the defined benefit plan shall be measured at the lower of the
surplus and the upper limit of assets of the defined benefit plan.
All defined benefit plan obligations, including those expected to be paid within the twelve months
following the end of the annual reporting period in which the employee provides the service, are
discounted based on the market yield and high quality corporate bonds in an active market that match
the duration and currency of defined benefit plan obligations on the balance sheet date.
The service costs generated by the defined benefit plan and the net interest on net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or relevant assets cost;
Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan are
included in other comprehensive income and are not reversed to profit and loss in subsequent
accounting periods.
At the time of settlement of the defined benefit plan, the settlement gains or losses shall be recognized
according to the difference between the present value of the obligations of the defined benefit plan and
the settlement price determined on the settlement date.
(3) Accounting treatment method of termination benefits
Employee benefits liabilities shall be recognized and included into profit or loss for the current period on
the earlier date of the two following circumstances: a. When the Company is not able to withdraw the
benefits from termination of employment or resignation persuasion unilaterally; b. When the Company
recognizes costs and fees relevant to reforming the termination benefits payment. As for the termination
benefits that cannot be fully paid within 12 months after the end of the annual report period, the
Company shall choose an appropriate discount rate and record it into current profit and loss based on it.
(4) Accounting treatment method of other long-term employee benefits
Other long-term employee benefits are all employee benefits other than short-term benefits, post-
employment benefits and termination benefits.
Other long-term employee benefits provided by the Company to the employee that meet the conditions
of the defined contribution plan shall be treated in accordance with the same principles of the defined
contribution plan; If the conditions for defined benefits are met, net liabilities or net assets of other long-
term employee benefits shall be recognized and measured in accordance with the relevant principles of
the defined benefits plan.
(1) Recognition criteria of estimated liabilities
If the contingent obligations meet the following conditions simultaneously, the Company shall recognize
it as an estimated liability:
This obligation is the Company's current obligation; the performance of this obligation is highly likely to
result in an outflow of economic benefits from the Company; The amount of the obligation can be
measured reliably.
(2) Measurement method of estimated liabilities
The Company's estimated liabilities are initially measured in terms of the best estimate of the
expenditure of fulfilling the relevant current obligations.
For determining the best estimate, the Company takes various factors into account such as the risk,
uncertainty and time value of money related to contingencies. If the time value of money has a
significant impact, the best estimate is determined by discounting the relevant future cash outflows.
The best estimate is processed as follows:
Where there is a continuous range (or range) of required expenditures and the probability of the
occurrence of various results within the range is the same, the best estimate is determined according to
the mean of the middle value of the range, namely the mean value of the upper and lower limits.
Where there is no continuous range (or range) of required expenditures, or where there is a continuous
range but the possibility of various outcomes within the range is different, if the contingencies involve a
single item, the best estimate is determined according to the most likely amount; If the contingencies
involve more than one item, the best estimate is calculated and determined according to various
possible results and relevant probabilities.
Where all or part of the expenses required for the liquidation of the estimated liabilities of the Company
are expected to be compensated by a third party, the amount of compensation shall be recognized as
an asset when it is basically confirmed that it can be received, and the confirmed amount of
compensation shall not exceed the book value of the estimated liabilities.
(1) The type of share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-
based payment.
(2) The method of determining the fair value of equity instruments
For equity-settled share-based payment related to employees, the equity instrument is measured at fair
value. The cash-settled share-based payment shall be measured according to the fair value of the
liabilities calculated and determined on the basis of shares or other equity instruments undertaken by
the Company.
For the fair value of the stock option granted, the fair value is determined by using the stock option
pricing model, and the following factors are taken into account: the current price of the underlying
shares, the exercise price of the option, the risk-free interest rate within the period of the option, the
option life, and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercised
For the equity-settled share-based payment settled immediately after the grant, the fair value of the
equity instrument shall be included in the relevant costs or expenses on the grant date, and the capital
reserve shall be increased accordingly. Grant date means the date on which the share-payment
agreement is approved.
For the equity-settled share-based payment, in which the services during waiting period are completed
and the performance conditions are met, in return for services of employees, on each balance sheet
date during waiting period, the current obtained service shall be included in the relevant costs or
expenses and the capital reserves in accordance with the fair value of the equity instruments on the
grant date, based on best estimate of the number of vested equity instruments, and the subsequent
changes in fair value shall not be recognized. On each balance sheet date during waiting period, the
Company makes the best estimate based on the latest available employee number change and other
subsequent information, and modifies the number of equity instruments for the estimated vesting. On
the vesting date, the final expected number of vesting instruments is the same as the actual number of
vesting instruments.
(4) Relevant accounting treatment of implementation, modification and termination of share-based
payment plan
For equity-settled share-based payment, no adjustments will be made to the recognized costs and total
owners' equity after the vesting date. On the vesting date, the Company shall recognize the share
capital and the equity premium according to the exercise situation, and carry forward the capital reserve
recognized in the waiting period.
No matter how it modifies the terms and conditions of the granted equity instruments or it cancels the
granted equity instruments or its settlement, the equity instruments granted by the Company shall be
recognized at fair value on the grant date and it measures the corresponding services obtained, unless
it cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
Accounting policies for recognition and measurement of revenue disclosed by type of business
(1) Basic principles of revenue identification
The Company recognizes revenue when it has fulfilled the performance obligations under the contract,
that is, when the customers obtain the control of relevant goods or services, at the transaction price
allocated to the performance obligations.
Performance obligations refer to the Company's promise that it will transfer clearly distinguishable
goods or services to customers under the contract.
Obtaining control of related goods refers to that customers can control the use of the goods and obtain
almost all the economic benefits from the goods.
The Company will evaluate the contract on the contract start date, identify each individual performance
obligation contained in the contract, and judge whether each individual performance obligation will be
performed within a certain period of time or at a certain point in time. If one of the following conditions is
met, and the performance obligation is performed within a certain period of time, the Company will
identify revenue within a period of time according to the performance progress: 1) The customers obtain
and consume the economic profits while the Company performs the contract. 2) The customers can
control the products under construction during the performance of the Company; 3) The products
produced during the performance of the Company cannot be replaced, and the Company has the right
to collect payment for the completed performance accumulated during the entire contract period.
Otherwise, the Company will identify revenue when the customers obtain control rights of the relevant
goods or services.
For the performance obligations performed within a certain period of time, the Company will apply the
input-output method to identify the appropriate performance progress based on the nature of the goods
and services. The input-output method is to identify the performance progress based on the value of the
goods that have been transferred to the customers. When the performance progress cannot be
reasonably identified and the Company's incurred costs are expected to be compensated, the Company
will identify the revenue according to the amount of the incurred costs until the performance progress
can be reasonably identified.
(2) The methods of revenue identification
The Company primarily sells baijiu, which involve performance obligations fulfilled at a certain point in
time. For the recognition of the revenue of domestic products, the following conditions must be met:
The Company has delivered the products to the customer as per the contract, and the customer has
accepted the goods; payment has been received or a receipt voucher has been obtained, and the
relevant economic benefits are likely to flow in; and control of the goods has transferred to the customer.
The following requirements must be met to recognise the revenue of export products: The Company
has declared the products according to the contract, obtained the bill of lading, received the payment or
obtained the receipt voucher, and relevant economic benefits are likely to flow in, and control of the
goods has transferred to the customer. The following requirements must be met to recognise the
revenue of sales through third-party platforms or company-owned websites: The sales platform is
responsible for delivering the goods to the customer, or the Company entrusts a logistics company to
deliver the goods to the customer, and revenue is recognised upon receipt of the platform settlement
statement or upon delivery of the goods.
Different business models for the same type of business involve different revenue recognition and
measurement methods
N/A
Contract costs comprise incremental costs incurred as the Company obtains a contract, and costs for
contract performance. Incremental costs incurred as the Company obtains a contract refer to those
costs which will not incur without entering into a contract (such as sales commission). If it is expected
that the costs are recoverable, the Company will recognize the costs incurred to obtain a contract as
one form of assets. In case that the term of asset amortization is shorter than one year or one normal
operating cycle, the costs will be recognized as profit and loss of the current period after occurrence.
If the costs incurred from contract performance fall outside the inventory or the scope of other
enterprise accounting standards and satisfy all of the following conditions, the Company will recognize
the costs for contract performance as assets: a) The costs are directly related to one existing contract
or contract that is expected to be obtained; b) The costs enrich the Company's resources for future
contract performance (including continual fulfillment); c) The costs are estimated to be recovered.
Assets recognized from costs incurred to obtain a contract and costs for contract performance
(hereinafter referred to as "assets related to contract costs") will be amortized based on the same basis
as the income from commodities or services related to the assets, and will be recognized as profit and
loss of the current period. In case that the book value of assets related to contract costs is higher than
the difference of the two items below, the Company will set aside provisions for assets impairment to
deal with the extra part, and recognize that part as impairment losses: a) Estimated residual
consideration to be obtained from transfer of commodities or services related to the assets; b)
Estimated costs incurred from transfer of the relevant commodities or services.
Government grants are monetary assets and non-monetary assets acquired free of charge by the
Company from the government like fiscal subsidies.
(1) Judgment basis and accounting treatment method of government grants related to assets
Government grants related to assets are government grants that are acquired by the Company and
used for forming long-term assets through purchasing and constructing or other ways. If the
government documents do not clearly specify the target of the subsidy, the Company shall separately
explain judgment basis of classifying the government grants into the government grants related to
assets or income.
Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives
(the period of depreciation and amortization) of the relevant assets from the month of commencement
of depreciation or amortization when the relevant assets have reached the intended use condition, and
included in the current profit or loss. However, government grants measured at the nominal amount
shall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income are government grants other than government grants related to
assets;
Accounting method:
① If it is used to compensate the Company’s relevant expenses or losses in future periods, it should be
recognized as deferred income and included into the current profit and loss or written off against the
related costs when the relevant expenses, losses are recognized.
② If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly
included into the current profit and loss on acquisition or written off of the related costs.
③ Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for the
government grants and the Company can receive the grants.
④ Measurement of government grants
If a government grant is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government grant is a non-monetary asset, it shall be measured at its fair value; and if its
fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
The Company adopts the balance sheet liability method to account for income tax.
The Company recognizes deferred tax assets when the following conditions are met simultaneously:
(1) Temporary differences are highly likely to be reversed in the foreseeable future;
(2) Taxable income that may be used to offset the deductible temporary difference is likely to be
obtained in the future and is limited to the amount of taxable income that is likely to be obtained.
On each balance sheet date, the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income, except for the income tax generated from the enterprise merger,
transactions or events directly recognized in the owner's equity.
Basis for deferred income tax assets and deferred income tax liabilities presented as a net amount after
offset:
When the following conditions are simultaneously met, deferred income tax assets and deferred income
tax liabilities are presented as a net amount after offset:
(1) The enterprise has the legal right to settle the current income tax assets and current income tax
liabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities were related to the income tax levied
by the same tax administration department on the same taxpayer or different taxpayers, but during the
period when each significant deferred income tax assets and liabilities would be reversed in the future,
the involved taxpayer intended to settle the current income tax assets and liabilities on a net basis or to
acquire assets and settle liabilities at the same time.
(1) Accounting treatment with the Company as lessee
① Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as
a lessee for simplified treatment
On the commencement date of the lease term, the Company will recognize the lease with a lease term
not exceeding 12 months and exclude the purchase option as a short-term lease. Leases with a value
below CNY 40,000 when a single leased asset is a brand-new asset are identified as low-value asset
leases. If the Company sublets or expects to sublet the leased assets, the original lease shall not be
deemed as a low-value asset lease.
The Company records the payments of short-term and low-value asset leases incurred during each
period of the lease term in the relevant asset costs or the profit or loss for the current period by the
straight-line method.
The Company will recognize right-of-use assets and lease liabilities on the inception date of the lease
term, excluding the above short-term and low-value asset leases.
② Right-of-use assets
Right-of-use assets are initially measured at costs, including: A. The initial measurement amount of
lease liabilities; B. If there is a lease incentive for the lease payment paid on or before the start date of
the lease term, the relevant amount of the lease incentive already enjoyed shall be deducted; C. Initial
direct expenses incurred by the Company; D. The expected cost to be borne by the Company in order
to dismantle and remove the assets leased, restore original state of the place where the assets leased
are in, or restore the assets leased to the state stipulated in the lease terms.
③ Lease liabilities
The Company initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term. When calculating the present value of lease
payments, the Company uses the interest rate implicit in lease as the rate of discount. If the interest
rate implicit in lease cannot be determined, the Company’s incremental lending rate is used as the rate
of discount.
After the commencement of the lease term, the Company uses the cost model for subsequent
measurement of right-of-use assets, depreciates right-of-use assets on a straight-line basis, calculates
the interest expense on the lease liability within the lease term and includes it in the current profit or
loss, unless such interest charge is stipulated to be included in the underlying asset cost. Variable lease
payments that are not included in the measurement of the lease obligation should be included in the
current profit or loss when they are actually incurred, unless such payments are stipulated to be
included in the underlying asset cost.
After the commencement of the lease term, the Company remeasures the lease liability and adjusts the
corresponding right-of-use asset, and if the carrying value of the right-of-use asset has been reduced to
zero but the lease liability is subject to further reduction, the difference is recorded in current profit or
loss: (1) When there is a change in the valuation of the purchase option, renewal option or termination
option, or actual exercise, the Company remeasures the lease liabilities at the present value of the
lease payments after the change and the revised discount rate; (2) When there is a change in the
actual fixed payment, the estimated residual value of the guarantee payable, the index or rate used to
confirm the lease payment, the Company calculates the present value based on the changed lease
payment amount and the original discount rate to remeasure the lease liabilities. However, where
changes in lease payments arise from changes in floating interest rates, a revised discount rate was
used to calculate the present value.
(2) Accounting treatment with the Company as lessor
① Lease classification
The Company classifies leases into finance leases and operating leases at the inception of leases. A
finance lease refers to a lease where almost all the risks and rewards, related to the ownership of the
leased asset, are substantially transferred, regardless of whether the ownership is eventually
transferred or not. All leases other than finance leases are classified as operating leases.
② Operating leases
The Company recognizes the lease payments receivable of the operating lease as rental earnings in
each period within the lease term on a straight-line basis or according to other systematic and
reasonable methods. The initial direct costs related to the operating lease are capitalized, amortized
within the lease term on the same basis as the recognition of rental earnings, and included in profit or
loss for the current period. The received variable lease payments related to the operating lease that are
not included in the lease payments receivable are included in profit or loss for the current period when
they are actually incurred.
③ Finance leases
On the commencement date of the lease term, the Company recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. In the initial measurement
of finance lease receivables, the sum of the unsecured residual value and the present value of the
lease payments receivable not yet received on the commencement date of the lease term discounted at
the interest rate implicit in lease is the entry value of the finance lease receivables. The Company
calculates and recognizes the interest income in each period within the lease term at a fixed interest
rate implicit in the lease. The received variable lease payments that are not included in the
measurement of the net investment in the lease are included in profit or loss for the current period when
they are actually incurred.
The Company adopts the balance sheet liability method to account for income tax.
The Company recognizes deferred tax assets when the following conditions are met simultaneously:
in the future and is limited to the amount of taxable income that is likely to be obtained.
On each balance sheet date, the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income, except for the income tax generated from the enterprise merger,
transactions or events directly recognized in the owner's equity.
? Applicable □ N/A
Unit: CNY
Statement line item
Content and reasons for accounting policy changes Amount affected
significantly affected
On July 8, 2025, the Ministry of Finance issued implementation
Q&As on the accounting treatment of standard warrant trading.
The Q&As specify that, under the standard on the recognition and
measurement of financial instruments, where an enterprise
frequently enters into contracts for the purchase and sale of
standard warrants on a futures exchange to earn price differences,
without taking delivery of the physical commodities corresponding
to such standard warrants, this usually indicates that the
enterprise has a practice of reselling the underlying subject matter
of the contracts within a short period after receiving it in order to
obtain profits from short-term fluctuations. The enterprise shall
treat the contracts for the purchase and sale of standard warrants
it has entered into as financial instruments and account for them in The implementation of this
accordance with the standard on the recognition and requirement had no
measurement of financial instruments. Where an enterprise material impact on the
obtains standard warrants under the aforesaid contracts and Company’s financial
resells them within a short period, it shall not recognize sales position or operating
revenue, but shall recognize the difference between the results.
consideration received and the carrying amount of the standard
warrants sold in investment income. Where an enterprise holds
standard warrants that have not yet been sold at the end of the
period, such standard warrants shall be presented as other current
assets.
According to the requirements of the Notice on Strictly
Implementing the Accounting Standards for Business Enterprises
and Effectively Preparing 2025 Annual Reports (C.K. [2025] No.
as a result of implementing the aforesaid requirements on
standard warrants, it shall adjust the information for the
comparable periods in the financial statements.
On December 5, 2025, the Ministry of Finance issued
Interpretation No. 19 of the Accounting Standards for Business
Enterprises, which further regulates and clarifies the accounting
The implementation of this
treatment of indemnification assets in business combinations not
requirement had no
under common control, the treatment of capital reserve upon
material impact on the
disposal of a subsidiary consolidated under common control, the
Company’s financial
conditions for derecognition of financial liabilities in electronic
position or operating
payment systems, the assessment and disclosure requirements
results.
for contractual cash flows of financial assets, and the disclosures
on the fair value of designated equity instruments. The
interpretation came into effect on January 1, 2026.
□ Applicable ? N/A
Implementation of the New Accounting Standards Implemented since 2025
□ Applicable ? N/A
Tax type Tax base Tax rate
Value-added tax Taxable sales income 13 %, 9%, 6%
Urban maintenance and construction
Taxable turnover tax 7%, 5%
tax
Corporate income tax Taxable income 25%, 15%, 16.5%, 9%, 0%
Consumption tax (based on price) Baijiu tax price or ex-factory price 20%
Consumption tax (based on quantity) Quantity of baijiu CNY 1.00/kg
Education surcharge Taxable turnover tax 3%
Local education surcharge Taxable turnover tax 2%
Original value of the property*70%;
Property tax 1.2%, 12%
house rent
Land use tax Land area CNY 1.2-20/m2
Others According to national regulation
Tax payment subject using different corporate income tax rates, the corporate income tax rates are
as follows:
Company name Corporate income tax rate
Luzhou Red Sorghum Modern Agricultural Development
Exempted from corporate income tax
Co., Ltd.
Guangxi Luzhou Laojiao Imported Liquor Industry Co.,
Ltd.
Luzhou Laojiao International Trade (Hainan) Co., Ltd. 15%
Luzhou Pinchuang Technology Co., Ltd. 15%
Luzhou Laojiao International Development (Hong Kong)
Co., Ltd.
Luzhou Laojiao Commercial Development (North
America) Co., Ltd.
Mingjiang Co., Ltd. 21%-40%
(1) According to Announcement of the Ministry of Finance, State Taxation Administration and National
Development and Reform Commission on Continuing the Corporate Income Tax Policies Concerning
the Western Development Strategy (No. 23 in 2020, Ministry of Finance), from 1 January 2021 to 31
December 2030, companies located in the western region whose primary business is listed in the
Catalogue of Encouraged Industries in the Western Region, and the primary business income
accounting for over 60% of the total enterprise income. These companies shall be subject to the
corporate income tax at a reduced rate of 15%. The Company's majority-owned subsidiary, Luzhou
Pinchuang Technology Co., Ltd., whose primary business income meets the requirements of scope and
standard of the Catalogue of Encouraged Industries in the Western Region, is subject to the rate of
(2) According to Article 27 of the Corporate Income Tax Law of the People's Republic of China and
Article 86, Item 1 of the Implementation Regulations of the Corporate Income Tax Law, companies are
exempted from enterprise income tax when they engage in agricultural, forestry, animal husbandry and
fishery industries. The majority-owned subsidiary of the Company, Luzhou Red Sorghum Modern
Agricultural Development Co., Ltd., is engaged in the cultivation and sale of organic sorghum and
enjoys the reduction of corporate income tax preferences.
(3) According to the Article 15, Item 1 of the Provisional Regulations on Value-Added Tax, agricultural
producers sell self-produced agricultural products exempt from value-added tax. The majority-owned
subsidiary of the Company, Luzhou Red Sorghum Modern Agricultural Development Co., Ltd., is
engaged in the cultivation and sale of organic sorghum and enjoys the value-added tax exemption.
(4) According to the Article 3, Item 7 of the Notice on Revision of Interim Measures of Accelerating the
Development in Headquarters Economy of China-Malaysia Qinzhou Industrial Park, till 31 December
with the half reduction in the tax period of preferential policies shall enjoy the local share of corporate
income tax exemption (namely 40% of corporate income tax was exempted, and the proportion
adjusted by the state shall be executed according to new proportion); Guangxi Luzhou Laojiao Imported
Liquor Industry Co., Ltd., the wholly-owned subsidiary of the Company, pays corporate income tax at
the rate of 9% according to the tax preference policies.
(5) According to Announcement on Preferential Corporate Income Tax Policies in Hainan Free Trade
Port (Cai Shui [2020] No. 31), the Company's wholly-owned subsidiary, Luzhou Laojiao International
Trade (Hainan) Co., Ltd., whose primary business income meets the requirements of scope and
standard of the Catalogue of Encouraged Industries in Hainan Free Trade Port, is paid at the rate of
currency units are CNY, except other specific statements)
Unit: CNY
Item Closing Balance Opening Balance
Cash 27,640.75
Bank deposit 27,299,090,094.73 33,506,712,545.24
Other cash and cash equivalents 42,476,603.64 71,656,645.34
Total 27,341,566,698.37 33,578,396,831.33
Including: Total deposit 97,912,284.27 104,980,028.96
outbound
Other statements:
Note 1: The deposit outbound is the balance of cash and cash equivalents of the foreign holding
subsidiary of the Company.
Note 2: The balance of other cash and cash equivalents mainly consists of balances of funds in self-
owned accounts on third-party platforms for subsidiaries in the amount of CNY 17,357,789.39,
guarantee deposits of CNY 10,023,572.23, balances of funds in the co-management bank account for
special government funds of CNY 10,000,053.87, balances in securities accounts of CNY
of CNY 10,000.00.
Of which: The co-management bank account for special government funds was established during
the current year by a subsidiary, Luzhou Laojiao Baijiu Production Co., Ltd. (the “Baijiu Production
Company”), together with the Jiangyang District Economy and Information Technology Bureau of
Luzhou City (the “supervisor”), for the purpose of special government funds. This account is managed
in accordance with the measures for the administration of special funds for the project and will be
released upon acceptance of the project.
Note 3: There is no special benefit arrangement such as establishing a fund co-management account
with related parties other than those mentioned above in the current period.
Liquor and wine manufacturing companies shall disclose in detail whether there are special interest
arrangements such as establishing co-management accounts with related parties.
□Applicable ? N/A
Unit: CNY
Item Closing Balance Opening Balance
Financial assets measured at fair
value with their changes included into 1,584,771,959.37 1,694,282,295.97
current profits/losses
Including:
Wealth management products 1,584,771,959.37 1,694,282,295.97
Including:
Total 1,584,771,959.37 1,694,282,295.97
Other statements:
Note: The held-for-trading financial assets held at the end of the year are wealth management
products purchased by the Company.
Unit: CNY
Closing Balance Opening Balance
Type Provision for bad Book Provision for bad Book
Book balance Book balance
debt value debt value
Proporti Proporti Proporti Proporti
Amount Amount Amount Amount
on on on on
Includin
g:
Includin
g:
Total 0.00
If adopting the general mode of expected credit loss to withdraw provision for bad debt of notes
receivable
□Applicable ? N/A
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 5,454,635.77 11,602,423.49
Total 6,447,598.75 11,602,423.49
Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Includin
g:
Account
s
receiva
ble
tested 6,447,5 100.00 372,028 6,075,5 11,602, 100.00 580,121 11,022,
for 98.75 % .09 70.66 423.49 % .18 302.31
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
ble 6,447,5 100.00 372,028 6,075,5 11,602, 100.00 580,121 11,022,
tested 98.75 % .09 70.66 423.49 % .18 302.31
for
impairm
ent on
the
portfolio
with
charact
eristics
of credit
risk
Total 5.77% 5.00%
Accounts receivable tested for impairment by the portfolio: CNY 372,028.09
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 6,447,598.75 372,028.09 5.77%
Including: within 1 year 5,454,635.77 272,731.79 5.00%
Other portfolio
Total 6,447,598.75 372,028.09
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.
If adopting the general mode of expected credit loss to withdraw provision for bad debt of accounts
receivable
□Applicable ? N/A
Allowance of provision for bad debt:
Unit: CNY
Changes in current period
Opening Closing
Type Reversal or
Balance Allowance Write-off Other Balance
recovery
Accounts
receivable
with a single
provision for
expected
credit loss
Accounts
receivable
with expected 580,121.18 208,093.09 372,028.09
credit loss by
portfolio
Total 580,121.18 208,093.09 372,028.09
Unit: CNY
Proportion to Closing balance
Closing balance total closing of provision for
Closing balance Closing balance
of accounts balance of bad debt
Company name of accounts of contract
receivable and accounts provision of
receivable assets
contract assets receivable and accounts
contract assets receivable and
impairment
allowance of
contract assets
Sazerac
Company, Inc
Beijing User
Growth Network
Technology Co.,
Ltd.
Hangzhou
Youzan 723,493.32 723,493.32 11.22% 36,174.67
Technology Inc.
Hangzhou
Alimama
Software Service
Co., Ltd.
Jiangsu JD Xuke
Information
Technology Co.,
Ltd.
Total 6,037,847.47 6,037,847.47 93.65% 350,820.53
Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
bad debt bad debt
Total 0.00
Unit: CNY
Item Closing Balance Opening Balance
Bank acceptance bill 1,466,494,973.96 1,801,947,455.78
Total 1,466,494,973.96 1,801,947,455.78
Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Incl
uding:
Provisio 1,466,4 100.00 1,466,4 1,801,9 100.00 1,801,9
n 94,973. % 94,973. 47,455. % 47,455.
allowan 96 961 78 78
ce by
portfolio
Incl
uding:
Bank 1,466,4 1,466,4 1,801,9 1,801,9
accepta 94,973. 94,973. 47,455. 47,455.
nce bill % %
Total 94,973. 94,973. 47,455. 47,455.
% %
Note: 1 The notes receivable under accounts receivable financing comprise bank acceptance, and
the Company believes that the bank acceptance it holds does not pose significant credit risks. It does
not anticipate significant losses due to defaults by banks or other drawers, therefore, no provision for
credit impairment losses has been recognized.
Provision allowance by portfolio: CNY 0
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 1,466,494,973.96
Total 1,466,494,973.96
Notes to the determination basis for the portfolio:
As bank acceptance has low credit risks, no bad debt provision is made.
by the Company but have not expired at the end of the period
Unit: CNY
Item Derecognized at period-end Not derecognized at period-end
Bank acceptance bill1 2,249,475,448.63
Total 2,249,475,448.63
Note: 1 Due to the fact that the acceptor of bank acceptance is a commercial bank, which is of high
credit level, the likelihood of default at the maturity of bank acceptance is low. Therefore, the
Company derecognizes bank acceptance that has been endorsed or discounted.
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Notes receivable 1,801,947,455.78 12,606,935,530.61 12,942,388,012.43 1,466,494,973.96
Total 1,801,947,455.78 12,606,935,530.61 12,942,388,012.43 1,466,494,973.96
Note: Accounts receivable financing represents bank acceptance, with a short remaining maturity.
The book value closely aligns with the fair value; hence, the book value is used as its fair value.
Unit: CNY
Item Closing Balance Opening Balance
Other receivables 17,318,326.51 13,053,645.00
Total 17,318,326.51 13,053,645.00
Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds 7,185,388.51 10,388,747.89
Petty cash 290,697.61 243,853.22
Saving deposits involving contract
disputes 1
Total 98,827,731.77 134,731,854.28
Note: 1 The saving deposits involving contract disputes are three deposits amounting to CNY
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
contract disputes and have thus been transferred into “other receivables”. In 2025, CNY
account as at the end of the year was CNY 91,351,645.65.
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 5,790,939.50 9,264,632.85
Over 3 years 92,522,310.87 125,321,113.23
Over 5 years 92,509,083.26 125,284,233.23
Total 98,827,731.77 134,731,854.28
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
saving deposits of CNY 91,351,645.65, which are yet to be recovered due to contractual disputes.
? Applicable □ N/A
Unit: CNY
Closing balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Provisio
n for
bad 91,351, 80,000, 11,351, 124,099 120,000 4,099,2
debt by 645.65 000.00 645.65 ,253.17 ,000.00 53.17
individu
al item
Incl
uding:
Other
receiva
bles
that are
individu
ally
material
and for
which a 91,351, 80,000, 11,351, 124,099 120,000 4,099,2
separat 645.65 000.00 645.65 ,253.17 ,000.00 53.17
e
provisio
n for
bad
debts
has
been
made
Provisio
n for
bad 7,476,0 1,509,4 5,966,6 10,632, 1,678,2 8,954,3
debt by 86.12 05.26 80.86 601.11 09.28 91.83
the
portfolio
Incl
uding:
Other
receiva
bles
tested
for
impairm
ent on 7,476,0 1,509,4 5,966,6 10,632, 1,678,2 8,954,3
the 86.12 05.26 80.86 601.11 09.28 91.83
portfolio
with
charact
eristics
of credit
risk
Total 82.48% 90.31%
Provision for bad debt by individual item: CNY 80,000,000.00
Unit: CNY
Opening Balance Closing Balance
Name Provision for Provision for
Book balance Book balance Proportion Reason
bad debt bad debt
Saving
deposits Provision
involving 91,351,645.65 80,000,000.00 87.57% based on
contract legal opinion
disputes
Total 124,099,253.1 120,000,000.0 91,351,645.65 80,000,000.00
Provision for bad debt by the portfolio: CNY 1,509,405.26
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 7,476,086.12 1,509,405.26 20.19%
Including: within 1 year 5,790,939.50 289,546.99 5.00%
Over 5 years 1,157,437.61 1,157,437.61 100.00%
Other portfolio
Total 7,476,086.12 1,509,405.26
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.
Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit: CNY
First stage Second stage Third stage
Provision for bad Expected loss in the
Expected credit loss Expected loss in the Total
debt duration (credit
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of January
Balance of January
period
Provision of the
current period
Reversal of the
current period
Balance of
December 31, 2025
The basis for the division of each stage and the withdrawal proportion of bad debt provision
The basis for the division of each stage and the withdrawal proportion of bad debt provision: The
basis for division is that other receivables with single bad debt provision represent credit impairment
losses incurred since initial recognition (Stage 3), while the remaining portion is categorized based on
expected credit risk. Withdrawal proportions of bad debt provision are 20.19% for Stage 1 and
Changes of book balance with a significant change of loss provision in the current period
□Applicable ? N/A
Allowance of provision for bad debt:
Unit: CNY
Changes in current period
Opening Closing
Type Reversal or Write-off or
Balance Allowance Other Balance
recovery verification
Bad debt
provision for 121,678,209.2
other 8
receivables
Total 120,907.12 40,289,711.14 81,509,405.26
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: CNY
Determination basis
for and
Amount recovered or reasonableness of
Company Name Reversal reason Recovery method
transferred-back the previous
withdrawal proportion
of bad debt provision
At the end of each
year, the litigation
attorney assesses
The actual recovery the ultimate expected
Three deposits with of CNY recoverable amount
Changsha Yingxin 32,747,607.52 of based on the latest
Sub-branch of saving deposits recovery tracking
Agricultural Bank of involving contract status and issues a
Cash recovery of
China and Nanyang 40,000,000.00 disputes in 2025 and special legal opinion.
CNY 32,747,607.52
Zhongzhou Sub- the estimated bad Based on this, the
branch of Industrial debt provision as at Company’s
and Commercial year- end based on management
Bank of China the latest estimates the
circumstances corresponding
amount of bad debt
provision at each
year-end.
Total 40,000,000.00
Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Saving deposits
Amount in
involving 91,351,645.65 Over 5 years 92.44% 80,000,000.00
dispute
contract disputes
Ye Cui Petty cash 140,000.00 Within 1 year 0.14% 7,000.00
TOWNE
CENTRE
OFFICES- Margin 131,445.34 1-2 years 0.13% 13,144.53
PIPROPERTIES
NO 111 LLC
Liu Yuanyuan Petty cash 113,738.00 Within 1 year 0.12% 5,686.90
Sichuan Electric
Power
Corporation Margin 50,000.00 Over 5 years 0.05% 50,000.00
Luzhou Electric
Power Bureau
Total 91,786,828.99 92.88% 80,075,831.43
Unit: CNY
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 132,742,078.70 91.17% 115,124,824.62 92.95%
Over 3 years 4,120,840.93 2.83% 3,820,520.70 3.08%
Total 145,596,475.65 123,870,282.65
Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There was no significant prepayment whose aging is longer than 1 year.
Proportion to the total closing balance of
Company Name Closing Balance Aging
prepayment
Within 1
Shanghai Merlot Advertising Co., Ltd. 82,467,023.97 56.64%
year
Within 1
Luzhou Western Gas Co., Ltd. 12,010,808.11 8.25%
year
Luzhou Power Supply Company of
Within 1
State Grid Sichuan Electric Power 9,134,365.36 6.27%
Company year
Within 1
Luzhou Laojiao Group Co., Ltd. 8,778,438.12 6.03%
year
Yalu River Valley (Jilin) Liquor Co., Ltd. 4,580,005.13 1-2 years 3.15%
Total
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
Unit: CNY
Closing Balance Opening Balance
Provision for Provision for
Category stock stock
Book Balance Book Value Book Balance Book Value
obsolescence obsolescence
or impairment or impairment
provision of provision of
contract contract
performance performance
costs costs
Raw materials
Goods in 11,922,577,25 11,922,577,25 10,739,545,76 10,739,545,76
progress 4.611 4.61 4.82 4.82
Finished 3,282,202,880 3,282,202,880 2,505,218,578 2,505,218,578
goods .262 .26 .73 .73
Goods in
transit
Total
Note: 1 The increase in the closing balance of goods in progress was mainly due to the Company’s
promotion of high-quality production capacity reserve and quality improvement plan, which increased
the strategic reserve of high-quality base liquor.
second half of 2025, in light of market conditions.
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
There was no capitalized borrowing expense in the closing balance of inventories.
Unit: CNY
Item Closing Balance Opening Balance
VAT to be deducted 344,545,347.47 217,415,843.41
Corporate income tax 81,820,156.01 20,441,701.15
Other taxes 4,094,407.15 3,224,364.33
Total 430,459,910.63 241,081,908.89
Other statements:
The value-added tax expected to be deducted in the next fiscal year and corporate income tax and
other taxes are disclosed in other current assets.
Unit: CNY
Reason
Gains Losses Accumulat Accumulat for
recorded recorded ive gains ive losses assigning
Dividend
in other in other recorded recorded to
income
comprehe comprehe in other in other measure
Closing Opening recognize
Item nsive nsive comprehe comprehe in fair
Balance Balance d in
income in income in nsive nsive value of
current
the the income at income at which
year
current current the end of the end of changes
period period the period the period included
other
comprehe
nsive
income
Financial
assets
assigned
to
measure
in fair
value of
which
changes
included
other
comprehe
nsive
income:
Including:
Guotai
Haitong
Securities
Co., Ltd.
According
(formerly
to the
known as
mode of
“Guotai 242,017,2 219,640,9 22,376,29 229,298,1 5,064,108.
managing
Junan 88.33 94.03 4.30 31.57 71 assets by
Securities
managem
Co., Ltd.
ent layer
and
renamed
in April
According
China
to the
Tourism
mode of
Group 87,001,00 60,069,39 26,931,60 64,197,69 1,282,673.
managing
Duty Free 4.56 9.64 4.92 0.72 77 assets by
Corporatio
managem
n Limited
ent layer
According
to the
Luzhou mode of
Bank Co., managing
Ltd. 3.27 8.99 28 3.27 00 assets by
managem
ent layer
Guotai According
Junan to the
Investmen mode of
t managing
Managem 4.24 4.24 assets by
ent Co., managem
Ltd. ent layer
According
to the
North
mode of
Chemical 28,175,26 15,870,08 12,305,17 27,145,26
Industries 1.09 3.24 7.85 1.09 assets by
Co., Ltd.
managem
ent layer
According
to the
Guojiu Big
Data Co.,
Ltd.
assets by
managem
ent layer
Sichuan
China
Baijiu
Golden
Triangle According
Brand to the
Operation mode of
Developm managing
ent Co., 63 63 37 00 assets by
Ltd. and managem
other ent layer
equity
instrument
investmen
ts
Total
Categories of non-trading equity instrument investment in the current period:
Unit: CNY
Reason for
Amount of assigning to Reason of
other measure at other
Recognized comprehensiv fair value and comprehensiv
Accumulative Accumulative
Item dividends e income changes e income
gains losses
income transferred to recorded into transferred to
retained other retained
earnings comprehensiv earnings
e income
According to
Guotai the mode of
Haitong 229,298,131.5 managing
Securities 7 assets by
Co., Ltd. management
layer
China According to
Tourism the mode of
Group Duty managing
Free assets by
Corporation management
Limited layer
According to
the mode of
Luzhou Bank managing
Co., Ltd. assets by
management
layer
According to
Guotai Junan the mode of
Investment managing
Management assets by
Co., Ltd. management
layer
According to
North the mode of
Chemical managing
Industries Co., assets by
Ltd. management
layer
According to
Guojiu Big
Data Co., Ltd.
managing
assets by
management
layer
Sichuan
China Baijiu
Golden
According to
Triangle
the mode of
Brand
managing
Operation 3,000,000.00 5,752,926.37
assets by
Development
management
Co., Ltd. and
layer
other equity
instrument
investments
Total 14,616,364.68 71,150,832.31
Unit: CNY
Changes in current period
Openi Gain Adjust Closin
Openi ng or ments Closin g
ng Balan Cash g Balan
loss of
Invest Balan ce of Other divide Provis Balan ce of
recog other
ee ce provisi Increa Decre chang d or ion for ce provisi
nized compr Other
(book on for se ase es in profit impair (book on for
under ehens
value) impair equity declar ment value) impair
equity ive
ment ed ment
metho incom
d e
Huaxi
Securi 2,614, 2,567, 152,8 9,225, 34,10 2,742, 2,567,
ties 807,0 098.8 19,54 632.9 3,893. 748,3 098.8
Co., 32.57 0 9.79 0 00 22.26 0
Ltd.
Luzho
u
Laojia
o
Postd
octora
l 36,68 36,81
Works 1,718. 3,478.
tation 60.45
Techn
ology
Innov
ation
Co.,
Ltd.
Sichu
an
Devel
opme 5,878, 5,920,
nt 42,54
Liquor 3.97
Invest 3 0
ment
Co.,
Ltd.
CTS
Luzho
u
Laojia
o
Cultur 123,1 1,854, - 124,7
al
Touris
m 9.13 9 26.01 6.91
Devel
opme
nt
Co.,
Ltd.
Sichu
an
Tianfu
Grana 12,50 12,42
ry 849,1 927,9
Liquor 22.06 79.16
Indust 27 17
ry
Co.,
Ltd.
Sichu
an
Tongn
iang
Baijiu
Indust
ry 8,272, - 8,161,
Techn 966.9 111,3 633.9
ology 3 32.95 8
Resea
rch
Institu
te
Co.,
Ltd.
Subtot
al
Total 252,3 098.8 86,21 632.9 227,8 1,872. 804,4 098.8
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□ Applicable ? N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□ Applicable ? N/A
? Applicable □ N/A
Unit: CNY
Buildings and Construction in
Item Land use right Total
constructions progress
I. Original cost
period
(1) External
purchase
(2) Transfer from
inventories/fixed
assets/construction
in progress
(3) Increase from
business
combination
current period
(1) Disposal
(2) Other transfer out
II. Accumulated
depreciation and
amortization
period
(1) Provision or
amortization
current period
(1) Disposal
(2) Other transfer out
III. Provision for
impairment
period
(1) Provision
current period
(1) Disposal
(2) Other transfer out
IV. Book Value
Value
Value
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□ Applicable ? N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□ Applicable ? N/A
Unit: CNY
Reason for not having the
Item Book value
certification of right
Buildings of the Company 13,535,162.31 In procedure
Unit: CNY
Item Closing Balance Opening Balance
Fixed assets 8,523,544,338.21 9,131,607,204.08
Disposal of fixed assets 347,065.82 169,711.43
Total 8,523,891,404.03 9,131,776,915.51
Unit: CNY
Buildings and Specialized General Transportation Other
Item Total
constructions equipment equipment equipment equipment
I. Original
cost:
balance .77 .44 .68 .58 3.16
current period
(1) External
purchase
(2) Transfer
from
construction in
progress
(3) Increase
from business
combination
(4)
Adjustment for
completion
settlement
(5) Changes
of exchange -12,066.66 -12,066.66
rates
(6) Other 49,560.20 29,770.01 79,330.21
current period
(1) Disposal
or retirement
(2) Transfer to
construction in 2,484,206.08 130,884.06 169,917.02 2,785,007.16
progress
(3)
Adjustment for
completion
settlement
(4) Other 2,859,741.98 2,859,741.98
Balance .13 .71 .89 .94 6.38
II.
Accumulated
depreciation
Balance .03 8 4 2 .08
current period 8 7 9 7
(1) Provision 4,206,029.25 99,626,884.58
(2) Changes
of exchange -105,719.93 -105,719.93
rates
current period
(1) Disposal
or retirement
(2) Transfer of
renovation
and
expansion to
construction in
progress
Balance .63 7 0 1 .17
III. Provision
for impairment
Balance
current period
(1) Provision
current period
(1) Disposal
or retirement
Balance
IV. Book
Value
Book Value .50 4 9 3 .21
Book Value .74 6 4 .46 .08
Unit: CNY
Item Closing book value
Buildings and constructions 32,174,267.42
Equipment 3,691,820.86
Total 35,866,088.28
Unit: CNY
Reason for not having the
Item Book value
certification of right
Buildings of the Company 21,843,834.88 The property ownership certificate
has not been processed yet for the
historical reasons, and it plans to be
processed after gradually improving
procedures.
Buildings of the Company 17,635,482.17 In procedure
Buildings of the subsidiary-Baijiu
Production Company
Total 4,344,732,932.75
Other statements:
Unit: CNY
Item Closing Balance Opening Balance
Disposal and retirement of assets 347,065.82 169,711.43
Total 347,065.82 169,711.43
Unit: CNY
Item Closing Balance Opening Balance
Construction in progress 2,064,766,283.24 807,233,988.90
Total 2,064,766,283.24 807,233,988.90
Unit: CNY
Closing Balance Opening Balance
Provision Provisio
Item for n for
Book balance Book value Book balance Book value
impairme impairm
nt ent
Technical
renovation of
Luzhou
Laojiao 38,517,842.44 38,517,842.44 6,367,929.36 6,367,929.36
Intelligent
packaging
center
Luzhou
Laojiao
Technical
Renovation
Project of
Intelligent
Baijiu
Production (I)
Project of
Luzhou
Laojiao's
Flexible 62,641,666.13 62,641,666.13 60,955,418.59 60,955,418.59
Intelligent
Filling Pilot
Line
Construction
Project of 78,823,440.76 78,823,440.76 22,407,884.55 22,407,884.55
Luzhou
Laojiao's
Strong Aroma
Baijiu
Experience
Marketing
Centre
The
expansion
and
renovation
project of the
office area of
Luzhou 79,087,098.28 79,087,098.28 22,751,740.43 22,751,740.43
Laojiao
Marketing
Network
Command
Center-Staff
Home
Luzhou
Laojiao
Historical and
Cultural
Industry Park
and National
Baijiu
Museum
Other projects 182,641,516.28 182,641,516.28 90,880,386.62 90,880,386.62
Total 2,064,766,283.24 2,064,766,283.24 807,233,988.90 807,233,988.90
Unit: CNY
Prop
Inclu
ortio
ding: Capit
n of Accu
Incre Capit alizat
Tran accu mula
ase Othe alize ion
Ope sfer Closi mula tive
in r Prog d rate
Bud ning into ng tive capit
Item curre decr ress inter for Source of funds
get Bala fixed Bala proje alize
nt ease (%) est the
nce asse nce ct d
perio s for perio
ts input inter
d the d
in est
perio (%)
budg
d
et
Luzh
ou
Laoji
ao
Tech
nical
Ren Other
ovati
on
Proj
ect
of
Intell
igent
Baiji
u
Prod
uctio
n
(Pha
se I)
Luzh
ou
Laoji
ao
Histo
rical
and
Cult
ural
Indu Other
stry
Park
and
Nati
onal
Baiji
u
Mus
eum
Con
struc
tion
Proj
ect
of
Luzh
ou
Laoji
ao's
Stro
ng Other
Aro
ma
Baiji
u
Expe
rienc
e
Mark
eting
Cent
re
Total
Note: 1 Other decreases were attributable to the transfer of land with title certificates acquired during
the current year to intangible assets for presentation.
□ Applicable ? N/A
Unit: CNY
Item Land use right Buildings and constructions Total
I. Original cost
-310,574.81 -310,574.81
period
(1) Increase in leases 318,656.02 318,656.02
(2) Changes of exchange
-629,230.83 -629,230.83
rates
period
(1) Lease expiration 3,763,213.00 3,763,213.00
(2) Adjustment for change
of lease term
II. Accumulated
amortization
period
(1) Provision 3,424,638.92 5,682,731.25 9,107,370.17
(2) Changes of exchange
-413,364.38 -413,364.38
rates
period
(1) Disposal
(2) Lease expiration 3,674,788.70 3,674,788.70
(3) Adjustment for change
of lease term
III. Provision for impairment
period
(1) Provision
period
(1) Disposal
IV. Book Value
□ Applicable ? N/A
Unit: CNY
No-patent
Land use Computer Trademark Data
Item Patent right right Total
right software right resources
technology
I. Original
cost
Balance 01.61 4 7.79 9 15.93
in current
period 66 33 1 0.70
(1) Acquired
(2)
Internally
developed 1 1
(3)
Business
combination
(4)
Transferred
from
construction 22 2 84
in progress
in current 9,060.67 9,060.67
period
(1) Disposal 9,060.67 9,060.67
Balance 21.27 4 0.45 9 1 25.96
II.
Accumulate
d
amortization
Balance 0.33 8 62 1 9.74
in current 130,005.04 900.12
period 56 54 1 5.17
(1) 90,114,895. 12,828,468. 1,428,305.9 104,502,57
Provision 56 54 1 5.17
in current 1,504.06 1,504.06
period
(1) Disposal
(2) Other 1,504.06 1,504.06
Balance 5.89 2 10 3 1 0.85
III.
Provision
for
impairment
Balance
in current
period
(1)
Provision
in current
period
(1) Disposal
Balance
IV. Book
Value
Book Value 05.38 35 0 35.11
Book Value 81.28 17 96.19
The proportion of intangible assets formed by internal development to the balance of intangible
assets at the period-end was 0.08%.
? Applicable □ N/A
Unit: CNY
Data resources
Purchased data Self-developed data
intangible assets
Item resources intangible resources intangible Total
acquired through
assets assets
other means
I. Original cost
period
Internal developed 4,284,917.71 4,284,917.71
current period
II. Accumulated
amortization
period
current period
III. Provision for
impairment
period
current period
IV. Book Value
Value
Value
Note: The data resources recognized as intangible assets by the Company during the current year
primarily consisted of data resources such as those used for digital marketing. Based on the
estimated effective period during which these data assets supported the Company’s marketing efforts,
their useful life was determined to be three years, and they were amortized using the straight-line
method.
There was no land use right without certification of right at the period-end.
Increase in current Decrease in current
period period
Op
eni Tra Closi Date of
nsfe Specific basis R&D progress
ng ng commenceme
Item Internal Ot Recognized rred for as at the end of
Bal Balan nt of
development he as intangible to capitalization the period
an ce capitalization
ce costs r assets profi
t or
loss
Details in
Data
Note 7.15.
resou 4,284,917.71 4,284,917.71 January 2025 Normal
Intangible
rces
assets
Total 4,284,917.71 4,284,917.71
Unit: CNY
Item Opening Balance Increase Amortization Other decrease Closing Balance
Improvement
expense of
rented fixed
assets
Total 1,756,272.03 687,684.71 33,601.84 1,034,985.48
Note: 1 Other decrease was generated from changes of exchange rates.
Unit: CNY
Closing Balance Opening Balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
impairment
Unrealized profits
from internal 310,370,130.36 77,592,532.59 742,790,841.94 185,697,710.49
transactions
Impact from salary 425,943,121.57 104,988,703.13 493,996,524.17 121,948,421.27
Impact from deferred
earnings
Impact from fixed
assets depreciation
Recognition costs of
restricted shares for
equity incentive in
the vesting period
Impact from fair
value changes of
other equity 88,576,028.89 22,144,007.22 115,507,633.77 28,876,908.44
instrument
investment
Impact of income tax
from fair value
changes of held-for- 19,338,314.36 4,834,578.59 17,238,148.79 4,309,537.19
trading financial
assets
Impact of income tax
from initial
recognition of lease
liabilities
Total 1,063,386,526.77 264,019,980.93 1,706,092,646.18 424,185,093.04
Unit: CNY
Closing Balance Opening Balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Fair value changes
of other equity
instrument
investment
Fair value changes
of held-for-trading 4,110,273.60 1,027,568.40 11,520,444.76 2,880,111.17
financial assets
Impact from the
policy of one-time
pre-tax deduction of
fixed assets
Impact of income tax
from initial
recognition of right-
of-use assets
Total 694,257,068.32 171,180,022.42 643,326,393.08 158,375,714.88
Unit: CNY
Item Closing Balance Opening Balance
Deductible losses 395,438,064.93 272,750,289.72
Asset impairment provision 2,008.37 2,156.34
Employee benefits payable 15,500,688.36 15,915,368.47
Total 410,940,761.66 288,667,814.53
years
Unit: CNY
Year Closing Amount Opening Amount Notes
Total 395,438,064.93 272,750,289.72
Unit: CNY
Closing Balance Opening Balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Prepayment
for
engineering 148,103,387.74 148,103,387.74 235,101,375.05 235,101,375.05
and
equipment
Prepayment
for long-term 516,737,979.30 1 172,245,993.10 172,245,993.10
assets
Total 664,841,367.04 664,841,367.04 407,347,368.15 407,347,368.15
Note: 1 The prepayment for long-term assets was the corresponding advance payment for the
progress of the Chengdu Innovation and Development Center Building customized and constructed
by the Company.
Unit: CNY
Period-end Period-beginning
Item Book Book Type of Status of Book Book Type of Status of
balance value restriction restriction balance value restriction restriction
Provision Provision
Cash and for fixed for fixed
Fixed Fixed
cash 393,834,6 393,834,6 deposit 181,100,9 181,100,9 deposit
deposit deposit
equivalent 14.88 14.88 interest on 55.95 55.95 interest on
interest interest
s an accrual an accrual
basis
basis
Co- Administer
Cash and 10,000,05 10,000,05 managem ed in
cash ent accordanc
equivalent account, e with the
s with measures
restriction for the
s on administra
payments tion of
special
fund for
projects
Cash and
Bank cash Bank cash
cash 10,023,57 10,023,57 10,000,00 10,000,00
Margin deposits Margin deposits
equivalent 2.23 2.23 0.00 0.00
for L/G for L/G
s
Cash and E- E-
cash 1,404,495. 1,404,495. commerce 1,627,857. 1,627,857. commerce
Margin Margin
equivalent 57 57 platform 48 48 platform
s margin margin
Cash and
Frozen Frozen
cash 1,200,000. 1,200,000. Litigation 18,000,00 18,000,00 Litigation
fund by fund by
equivalent 00 00 freeze 3.44 3.44 freeze
the court the court
s
Cash and Other Other
cash business business
equivalent - related - related
s freeze freeze
Total
Unit: CNY
Item Closing Balance Opening Balance
Engineering equipment expense 742,420,293.37 854,220,902.47
Materials and service expense 671,000,882.43 990,276,304.31
Total 1,413,421,175.80 1,844,497,206.78
Unit: CNY
Reason for non-payment or carrying
Item Closing Balance
forward
China Construction First Group Project payment within the contract
Corporation Limited settlement period
China Second Metallurgy Group Co., Project payment within the contract
Ltd. settlement period
Luzhou Branch of Zhongqi
Project payment within the contract
Construction Group Huamao Co., 21,826,780.23
settlement period
Ltd.
China Fifth Metallurgy Group Co., Project payment within the contract
Ltd. settlement period
Total 489,147,717.59
enterprises (SMEs)
Whether the Company is a large enterprise
□ Yes ? No
Unit: CNY
Item Closing Balance Opening Balance
Dividend payable 28,163,719.84 29,668,290.20
Other payables 587,589,747.04 843,927,138.88
Total 615,753,466.88 873,595,429.08
Unit: CNY
Item Closing Balance Opening Balance
Dividend payable to minority
shareholders of the Company’s 28,163,719.841 29,668,290.20
subsidiary
Total 28,163,719.84 29,668,290.20
Note: 1 The closing balance refers to the dividends distributed but not yet paid to minority
shareholders of the Company’s subsidiary Boda Marketing Company.
Unit: CNY
Item Closing Balance Opening Balance
Security deposit 383,977,398.34 447,066,962.39
Intercompany funds 22,227,075.32 28,522,739.40
Repurchase obligations of restricted
shares
Others 21,750,998.91 22,637,993.20
Total 587,589,747.04 843,927,138.88
Unit: CNY
Reason for not payment or carrying
Item Closing Balance
forward
Within the contract performance
Security deposits from suppliers 26,029,046.77
period
Within the contract performance
Security deposits from dealers 41,255,039.16
period
Total 67,284,085.93
Unit: CNY
Item Closing Balance Opening Balance
Advance rent receipts 2,014,696.36
Total 2,014,696.36
Unit: CNY
Item Closing Balance Opening Balance
Within 1 year 3,312,289,242.35 3,960,810,214.93
Over 3 years 3,757,820.81 3,845,860.89
Total 3,367,443,727.83 3,978,131,528.88
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
The total amount of the top five companies in contract liabilities was CNY 1,793,089,854.36,
accounting for 53.25%.
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
benefits
benefits- defined 29,543,709.32 169,156,488.94 177,192,274.18 21,507,924.08
contribution plans
benefits
Total 553,580,768.99 1,259,179,581.20 1,331,037,969.83 481,722,380.36
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
allowances and 474,157,091.74 868,723,096.60 927,714,697.61 415,165,490.73
grants
welfare
premiums
Including:
Medical insurance 4,102,608.47 81,503,970.06 82,811,147.07 2,795,431.46
premium
Work-related injury
insurance
expenditures and
employee education
funds
Total 524,037,059.67 1,088,864,428.51 1,152,687,031.90 460,214,456.28
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
insurance premium
insurance premium
Total 29,543,709.32 169,156,488.94 177,192,274.18 21,507,924.08
Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 276,075,582.62 712,774,935.04
Consumption tax 735,986,504.12 1,446,813,372.13
Enterprise income tax 464,627,315.26 798,281,280.17
Individual income tax 9,944,022.89 11,091,390.13
Urban maintenance and construction
tax
Education surcharge 30,116,997.43 63,919,687.59
Local education surcharge 20,186,006.39 43,486,324.21
Stamp duty 5,209,309.95 9,583,849.31
Land use tax 437,618.74
Others 344,885.79 401,983.65
Total 1,612,884,069.81 3,233,948,597.08
Unit: CNY
Item Closing Balance Opening Balance
Long-term loans due within one year 4,060,900,000.00 1,720,200,000.00
Bonds payable due within one year 1,499,788,498.36
Lease liabilities due within one year 9,584,667.93 9,688,349.02
Interest of long-term loans due within 3,714,545.12 5,383,276.22
one year
Interest of bonds payable due within
one year
Total 4,074,199,213.05 3,276,628,616.74
Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 436,920,270.99 516,729,820.48
Total 436,920,270.99 516,729,820.48
Unit: CNY
Item Closing Balance Opening Balance
Credit loans 6,688,066,310.93 8,000,100,000.00
Less: Long-term loans due within one
-4,060,900,000.00 -1,720,200,000.00
year
Total 2,627,166,310.93 6,279,900,000.00
Other statements, including interest rate range:
Note: The interest rate level of the Company’s long-term loans at the end of the period was loan
prime rate (LPR) - corresponding basic points (BP) for 1-year/5-year and above loan terms.
Unit: CNY
Item Closing Balance Opening Balance
Lease payment 28,581,944.08 38,789,939.06
Less: unrecognized financing cost -3,304,085.54 -4,573,070.91
Less: lease liabilities due within one
-9,584,667.93 -9,688,349.02
year
Total 15,693,190.61 24,528,519.13
Unit: CNY
Increase in Decrease in
Item Opening Balance Closing Balance Reason
current period current period
Reception of
Government
grants
allocation
Total 86,672,726.83 22,315,000.00 26,473,781.06 82,513,945.77 --
Other statements:
Details:
Other income Related to
Opening Increase in Closing
Item in current assets/
Balance current period Balance
period income
Technological transformation
Related to
project of Luzhou Laojiao 58,625,350.00 8,517,000.00 13,162,636.40 53,979,713.60
assets
Intelligent Packing Center
Digital upgrade project of
supply chain management for Related to
Luzhou Laojiao Intelligent assets
Packing Center
Cogeneration Expansion Related to
Project (I) assets
Improvement and technical
Related to
renovation project of Luzhou 5,518,863.65 1,892,181.84 3,626,681.81
assets
Laojiao production supporting
Boiler reconstruction project
Related to
of Luohan Baijiu Production 3,792,857.15 1,264,285.68 2,528,571.47
assets
Base of Luzhou Laojiao
Distillation wastewater Related to
treatment project assets
Construction project of liquor
room of Luzhou Laojiao baijiu Related to
production technical assets
renovation
New mode application project
Related to
of digital workshop for solid 1,941,868.84 1,553,495.04 388,373.80
assets
state baijiu production
Luzhou Laojiao automatic
Related to
baijiu production line 436,630.03 349,304.04 87,325.99
assets
technical renovation project
Total 86,672,726.83 22,315,000.00 26,473,781.06 82,513,945.77
Unit: CNY
Increases/decreases in the current period (+, -)
Opening Conversion Closing
Balance Issuance of Bonus of reserve Balance
Others Subtotal
new shares shares fund into
shares
Total
number of -9,540.00 -9,540.001
shares
Note: 1. In 2025, among the awardees of the Company’s 2021 Restricted Share Incentive Plan (Draft),
three of them no longer met the incentive conditions due to job transfer, resignation or other reasons.
According to the relevant provisions of the incentive plan, a total of 9,540 restricted shares that have
been granted to the above-mentioned awardees but have not yet been released from restrictions will
be repurchased and retired by the Company.
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Share premium
(capital premium)
Other capital
reserves
Total 5,365,763,566.55 394,780,148.62 321,215,612.64 5,439,328,102.53
Other statements, including increase/decrease and reasons thereof:
Note 1: The capital premium increased this year because some restricted shares granted have been
released from restrictions upon maturity.
Note 2: The increase in other capital reserves for the current period was the costs and expenses
attributable to the parent company to be recognized in the current period for the issuance of restricted
shares.
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Perform the
repurchase
obligations under the
equity incentive
Total 345,699,443.89 186,065,169.42 159,634,274.47
Other statements, including notes to increase and decrease during the reporting period and the
reasons for changes:
Note: The treasury shares reduced by CNY 186,065,169.42 for the current period due to the
repurchase and cancellation of restricted shares and the expiration and lifting of restrictions on some
granted restricted shares.
Unit: CNY
Current Period
Less:
Less:
Previously
Previously
recognize Amount
Amount in recognize Amount
d in other attributabl
Opening current d in other attributabl Closing
Item comprehe Less: e to non-
Balance period comprehe e to Balance
nsive Income controlling
before nsive parent
income tax sharehold
income income company
transferre ers after
tax transferre after tax
d to tax
d to profit
retained
and loss
earnings
I. Other
comprehe
nsive
income
that will 100,246,1 51,838,86 51,841,71 152,087,8
-2,847.82
not be 34.07 8.58 6.40 50.47
reclassifie
d into
profit and
loss
Other
comprehe 178,179.7 610,470.0 613,317.8 791,497.5
-2,847.82
nsive 0 4 6 6
income
that will
not be
reclassifie
d into
profit and
loss under
equity
method
Fair value
changes
of other
equity
instrument 54.37 8.54 8.54 52.91
investmen
t
II. Other
comprehe
nsive
income - - -
that will be 16,011,01 870,236.1 8,458,996.
reclassifie 60 74
d into
profit and
loss
Including:
Other
comprehe
nsive
income - -
that will be 8,615,162. 8,615,162.
reclassifie 86 86
d into 6.19 3.33
profit and
loss under
equity
method
Difference
from
conversio
n of - - -
financial 1,933,377. 1,063,141. 870,236.1
statement 50 38
s in
foreign
currency
Total -2,847.82 870,236.1
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Statutory surplus
reserves
Total 1,471,951,503.00 9,540.00 1,471,941,963.00
Statements of surplus reserves, including notes to increase and decrease during the reporting period
and the reasons for changes:
Note: The provision ratio of the Company’s statutory surplus reserves has always remained at 100%
of the share capital. Therefore, it has been adjusted accordingly with the reduction of share
repurchase this year.
Unit: CNY
Item Current Period Previous Period
Undistributed profit before
adjustment at the end of the last year
Undistributed profit after adjustment
at the beginning of year
Plus: Net profit attributable to owners
of the parent company for the current 10,830,713,936.14 13,472,986,476.01
period
Less: Provision of statutory surplus
-9,540.00 -36,266.00
reserves
Ordinary share dividends
payable
Other transfer in -2,847.82 91,051.49
Undistributed profits at the end of the
period
Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 25,457,964,458.18 3,321,343,200.85 30,742,480,590.43 3,719,472,050.52
Other business 273,046,189.14 120,406,381.84 453,767,617.90 168,644,133.41
Total 25,731,010,647.32 3,441,749,582.69 31,196,248,208.33 3,888,116,183.93
Whether the lowest of the Company’s total profit, net profit, net profit after deduction of non-recurring
gains and losses for the reporting period through audit is negative
□Yes ? No
Details:
Unit: CNY
Baijiu sales Total
Contract category
Operating revenue Cost of sales Operating revenue Cost of sales
Commodity type
Including:
Medium and high
grade baijiu
Other baijiu 2,637,587,357.62 1,317,009,724.41 2,637,587,357.62 1,317,009,724.41
Other revenue 125,468,594.11 44,340,469.95 125,468,594.11 44,340,469.95
By operating
segment
Including:
Domestic 25,534,165,136.80 3,412,604,641.73 25,534,165,136.80 3,412,604,641.73
Outbound 196,845,510.52 29,144,940.96 196,845,510.52 29,144,940.96
Market or customer
type
Including:
Contract type
Including:
Recognize revenue
at point in time
Recognize revenue
by time period
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 25,731,010,647.32 3,441,749,582.69 25,731,010,647.32 3,441,749,582.69
Other statements
Note 1: The classification standard for Medium and high grade baijiu of the Company is any product
with a selling price including VAT of CNY 150 or more per bottle. Representative product categories
include National Cellar 1573, Luzhou Laojiao Tequ and Century-old Luzhou Laojiao Jiaoling Baijiu.
“Other baijiu” is defined as any product with a selling price including VAT of less than CNY 150 per
bottle.
Note 2: The Company's main business is the production and sale of baijiu. Revenue is recognized at
the point when the Company transfers control of the relevant goods to the customer and fulfills its
performance obligations.
Information in relation to the transaction price apportioned to the residual contract performance
obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was CNY 3,367,443,727.83 at the period-end, among which
CNY 3,367,443,727.83 was expected to be recognized in 2026.
Unit: CNY
Item Current Period Previous Period
Consumption tax 3,104,586,232.09 3,758,818,690.82
Urban maintenance and construction
tax
Educational surcharge 173,304,352.28 214,918,037.88
Property tax 76,320,532.63 77,927,281.84
Land use tax 27,858,248.28 34,031,578.65
Stamp duty 29,635,602.22 31,293,251.08
Local education surcharge 115,536,234.80 143,278,691.91
Others 197,752.11 176,791.63
Total 3,927,743,376.52 4,753,755,581.18
Unit: CNY
Item Current Period Previous Period
Employee compensation 461,004,477.14 477,879,760.77
Depreciation and amortization 111,584,289.01 106,444,738.22
Share-based payment expense 44,069,367.51 100,696,953.42
Service expense and others 345,763,467.14 415,758,512.15
Total 962,421,600.80 1,100,779,964.56
Unit: CNY
Item Current Period Previous Period
Advertising promotion expense 1,275,745,184.28 1,548,153,847.96
Promotion expense 1,281,434,004.00 1,109,741,814.61
Employee compensation 323,502,036.15 387,418,851.76
Storage and logistics costs 140,429,747.50 162,568,387.89
Share-based payment expense 18,588,708.87 48,618,883.85
Others 197,449,688.35 281,880,829.92
Total 3,237,149,369.15 3,538,382,615.99
Unit: CNY
Item Current Period Previous Period
Comprehensive research and
development expenses
Total 215,855,671.81 260,975,311.10
Unit: CNY
Item Current Period Previous Period
Interest expenses 156,570,325.031 304,312,417.15
Less: Interest income -678,460,704.26 -797,923,434.30
Losses from currency exchange 4,817,776.90 -3,165,346.43
Handling charges 4,143,657.95 7,119,485.05
Amortization of unrecognized
financing costs
Total -511,995,793.73 -488,521,059.32
Note: 1 The interest expenses decreased by 48.55% year- on- year, mainly due to the gradual
maturity and repayment of the Company’s loans from financial institutions and bonds, which resulted
in a reduction in the scale of interest- bearing debt.
Unit: CNY
Source Current Period Previous Period
Government grants 50,072,435.13 41,225,885.28
Other refund (Individual income tax
handling fee refund)
Total 52,892,626.52 43,752,551.73
Unit: CNY
Source Current Period Previous Period
Held-for-trading financial assets 7,777,112.49 27,528,769.00
Held-for-trading financial liabilities 9,870.60
Total 7,777,112.49 27,538,639.60
Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under the equity 156,406,734.29 106,578,492.71
method
Investment income from disposal of
long-term equity investments
Investment income gained during the
period of holding held-for-trading 25,160,965.67 46,953,767.52
financial assets
Investment income from disposal of
held-for-trading financial assets
Dividend income gained during the
period of holding other equity 14,616,364.68 14,976,454.55
instrument investment
Income from derecognition of
financial assets measured at fair
-73,082,640.841 -158,251,822.92
value with changes recorded in other
comprehensive income
Investment losses from foreign
-14,339.62
exchange forward transaction
Total 125,932,324.35 -9,892,859.80
Note: 1 The Company presented the discounting expenses of derecognized bank acceptance bills
under this account.
Other statements:
Including: investment income from long-term equity investments under the equity method:
Item Current Period Previous Period
Huaxi Securities Co., Ltd. 152,819,549.79 75,663,468.99
Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co., Ltd.
Sichuan Development Liquor Investment Co., Ltd. 42,543.97 -19,699.92
Item Current Period Previous Period
Sichuan Tongniang Baijiu Industry Technology Research
-111,332.95 -67,425.97
Institute Co., Ltd.
CTS Luzhou Laojiao Cultural Tourism Development Co.,
Ltd.
Sichuan Tianfu Granary Liquor Industry Co., Ltd. 1,010,473.35 2,610,876.57
Total 156,406,734.29 106,578,492.71
Including: dividend income gained during the period of holding other equity instrument investment:
Item Current Period Previous Period
North Chemical Industries Co., Ltd. 62,542.20 78,177.75
Guotai Haitong Securities Co., Ltd. 5,064,108.71 6,477,348.35
Luzhou Sanrenxuan Liquor Industry Co., Ltd. 3,000,000.00 2,500,000.00
Luzhou Bank Co., Ltd. 5,207,040.00 3,905,280.00
China Tourism Group Duty Free Corporation Limited 1,282,673.77 2,015,648.45
Total 14,616,364.68 14,976,454.55
Unit: CNY
Item Current Period Previous Period
Bad debt loss of accounts receivable 208,093.09 711,115.91
Bad debt loss of other receivables 40,168,804.02 921,121.70
Total 40,376,897.11 1,632,237.61
Unit: CNY
Source Current Period Previous Period
Gains from disposal of fixed assets -520,993.44 1,058,750.22
Gains from disposal of intangible
assets
Gains from disposal of investment
property
Gains from disposal of use right
-13,061.24
assets
Total -534,054.68 1,058,750.22
Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Gains from retirement of
non-current assets
Compensation for default 21,076,933.97 19,994,603.60 21,076,933.97
Others 4,908,551.40 4,235,258.66 4,908,551.40
Total 26,849,236.20 24,229,862.26 26,849,236.20
Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Donation 36,710,000.00 11,979,052.40 36,710,000.00
Losses from damage
retirement of non-current 290,137.91 13,325,050.92 290,137.91
assets
Others 20,445,107.83 475,870.15 20,445,107.83
Total 57,445,245.74 25,779,973.47 57,445,245.74
Unit: CNY
Item Current Period Previous Period
Current period income tax 3,638,133,812.29 4,442,748,346.01
Deferred income tax 155,891,243.87 264,771,902.14
Total 3,794,025,056.16 4,707,520,248.15
Unit: CNY
Item Current Period
Total profit 14,653,935,736.33
Income tax expenses determined by statutory/applicable
tax rate
Impact from subsidiaries’ different tax rates 1,845,604.23
Impact from adjustment for impact from income tax
expense in previous period
Impact from non-taxable income -39,774,608.81
Impact from non-deductible costs, expenses and losses 21,435,765.26
Impact from deductible temporary difference or losses
due to unrecognized deferred tax asset in current period
Income tax impact of expected pre-tax deductible
amounts of restricted shares in future periods that are 19,830,876.79
less than the recognized cost and expenses
Deduction impact of research and development costs -13,957,562.31
Income tax expense 3,794,025,056.16
Details in Note 7.35. Other comprehensive income.
Cash received from other operating activities
Unit: CNY
Item Current Period Previous Period
Recovery of saving deposits
involving contract disputes
Government grants 49,195,033.95 103,303,033.55
Interest income from bank deposit 477,245,652.50 667,147,733.48
Others 175,380,553.37 195,416,669.46
Total 734,568,847.34 969,333,056.82
Cash paid for other operating activities
Unit: CNY
Item Current Period Previous Period
Cash paid for expenses 2,441,195,520.64 2,204,134,745.45
Restricted court frozen funds paid 44,089.72 18,000,003.44
Cash paid to E-commerce platform
as security deposit
Total 2,441,260,130.36 2,226,114,728.68
Cash received from significant investing activities
Unit: CNY
Item Current Period Previous Period
Recovering the principal invested in
held-for-trading financial assets
Total 2,200,000,000.00 2,160,000,000.00
Cash paid for other investing activities
Unit: CNY
Item Current Period Previous Period
Loss on forward exchange settlement 14,339.62
Total 14,339.62
Cash paid for significant investing activities
Unit: CNY
Item Current Period Previous Period
Cash paid for purchasing long-term
assets
Cash paid for purchasing held-for-
trading financial assets
Total 4,032,762,969.97 3,648,370,866.64
Cash paid for other financing activities
Unit: CNY
Item Current Period Previous Period
Refund of minority shareholders’
investments when a subsidiary was 9,074,676.53
deregistered
Cash paid for repurchase of
restricted shares
Net losses from put-back of bonds
Cash paid for rent of right-of-use
assets
Total 10,067,985.97 20,239,162.26
Changes in liabilities arising from financing activities
? Applicable □ N/A
Unit: CNY
Increase in current period Decrease in current period
Opening Closing
Item Non-cash Non-cash
Balance Cash change Cash change Balance
change change
Long-term
loans
(including
long-term 16,308,215.15
loans due .22 3 .25 .05
within one
year)
Bonds
payable
(including
bonds 11,143,008.50
payable due .50 .00
within one
year)
Lease
liabilities
(including
lease liabilities
due within one
year)
Other
payables
(Repurchase 345,699,443.8 185,360,249.2 159,634,274.4
obligations of 9 8 7
restricted
shares)
Total 27,875,279.87
.76 3 .22 8 .06
Unit: CNY
Item Current Period Previous Period
flow from operating activities:
Net profit 10,859,910,680.17 13,497,778,570.89
Plus: Provision for asset impairment -40,376,897.11 -1,632,237.61
Depreciation of fixed asset, oil and
gas assets and productive biological 679,729,252.35 680,834,155.15
assets
Depreciation of right-of-use assets 8,694,005.79 9,694,652.62
Amortization of intangible assets 104,502,575.17 92,110,427.08
Amortization of long-term deferred
expense
Losses from disposal of fixed assets,
intangible assets and other long-term 534,054.68 -1,058,750.22
assets (Gains use “-”)
Losses from retirement of fixed
-573,612.92 13,325,050.92
assets (Gains use “-”)
Losses from change in fair value
-7,777,112.49 -27,538,639.60
(Gains use “-”)
Financial expenses (Gains use “-”) 162,321,252.58 302,282,889.93
Losses on investments (Gains use “-
-199,014,965.19 -148,358,963.12
”)
Decrease in deferred income tax
assets (Increase uses “-”)
Increase in deferred income tax
liabilities (Decrease uses “-”)
Decrease in inventories (Increase
-2,003,237,231.39 -1,770,750,528.50
use “-”)
Decrease in operating receivables
(Increase use “-”)
Increase in operating payables
-2,897,634,374.76 2,100,518,847.25
(Decrease use “-”)
Others
Net cash flows from operating
activities
activities not involving cash:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets under financing lease
equivalents:
Closing balance of cash 26,925,093,961.821 33,367,668,014.46
Less: Opening balance of cash 33,367,668,014.46 25,893,029,277.86
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net change in cash and cash
-6,442,574,052.64 7,474,638,736.60
equivalents
Note: 1 The amount of direct payment for goods and long-term assets (not involving cash flows) by
the endorsement of bank acceptances receivable in the current and previous periods was CNY
from sales of goods or rendering of services", "cash paid for goods and services" and "cash paid for
the purchase of fixed assets, intangible assets and other long-term assets" of the cash flow budget.
Unit: CNY
Item Opening Balance Closing Balance
Including: Cash on hand 27,640.75
Unrestricted bank deposit 26,905,255,479.85 33,325,611,589.29
Other unrestricted cash and
cash equivalents
equivalents
Unit: CNY
Item Current Period Previous Period Reason
Provision for fixed deposit
Bank deposit 393,834,614.88 181,100,955.95
interest on an accrual basis
Co-management account,
managed in accordance
Other monetary funds 10,000,053.87 with the measures for the
administration of special
funds for projects
Restricted bank cash
Other monetary funds 10,023,572.23 10,000,000.00
deposits for L/G
Restricted cash deposit in
Other monetary funds 1,404,495.57 1,627,857.48
E-commerce platforms
Other monetary funds 1,200,000.00 18,000,003.44 Frozen funds by the court
Other business-related
Other monetary funds 10,000.00
frozen funds
Total 416,472,736.55 210,728,816.87
Unit: CNY
Closing Balance in Foreign
Item Exchange Rate Closing Balance in CNY
Currency
Cash at Bank and on Hand 438,428,302.65
Including: USD 61,701,162.64 7.0288 433,685,131.97
EUR
HKD 5,251,401.30 0.90322 4,743,170.68
Accounts Receivable 2,620,596.97
Including: USD
EUR
HKD 2,901,393.87 0.90322 2,620,596.97
Other Receivables 1,339,851.46
Including: USD 18,697.65 7.0288 131,422.04
HKD 1,337,912.60 0.90322 1,208,429.42
Accounts Payable 14,123,208.46
Including: USD 12,811.29 7.0288 90,048.00
HKD 15,536,813.25 0.90322 14,033,160.46
Other Payables 4,081,671.12
Including: USD 5,500.00 7.0288 38,658.40
HKD 4,476,221.43 0.90322 4,043,012.72
Prepayments 999,035.73
Including: USD 5,323.66 7.0288 37,418.94
HKD 1,064,654.00 0.90322 961,616.79
Non-current liabilities due
within one year
Including: USD 71,615.20 7.0288 503,368.92
HKD 4,118,111.03 0.90322 3,719,560.24
Lease liabilities 4,394,092.53
Including: USD 6,217.01 7.0288 43,698.12
HKD 4,816,539.06 0.90322 4,350,394.41
Long-term Loans
Including: USD
EUR
HKD
entity, shall disclose its main foreign business place, bookkeeping standard currency and
selection basis, and shall also disclose the reason for the change of the bookkeeping
standard currency
? Applicable □ N/A
Bookkeeping
Company Operation site Choosing Reason
currency
Luzhou Laojiao International Development Currency in the
Hong Kong, China HKD
(Hong Kong) Co., Ltd. registration place
Luzhou Laojiao Commercial Development Currency in the
USA USD
(North America) Co., Ltd. registration place
Currency in the
Mingjiang Co., Ltd. USA USD
registration place
? Applicable □ N/A
Variable lease payments that are not covered in the measurement of the lease liabilities
□ Applicable ? N/A
Simplified short-term lease or lease expense for low-value assets
? Applicable □ N/A
The Company uses a simplified approach for short-term leases, where the right-of-use assets and
lease liabilities are not recognized. Short-term leases accounted for as expenses in the current period
are listed below:
Item Current Period Previous Period
Item Current Period Previous Period
Short-term lease expenses recognized as current profit or loss
in the current period using the simplified approach
Total cash outflows related to leases 16,935,929.26 16,408,823.53
Note: The leased assets of the Company include the buildings and constructions and the land use
right involved in operation. The leasing period of land use right is normally 15-30 years and the lease
contract of land use right generally includes the renewal option clause.
Circumstances involving sale and leaseback transactions
None.
Operating leases with the Company as lessor
? Applicable □ N/A
Unit: CNY
Of which: income related to variable
Item Rental income lease payments not included in lease
receipts
Income from rental of buildings,
equipment, etc.
Total 12,365,562.02
Finance leases with the Company as lessor
□ Applicable ? N/A
Undiscounted lease receipts for each of the next five years
□ Applicable ? N/A
Reconciliation of undiscounted lease receipts to net lease investments
manufacturer or dealer
□ Applicable ? N/A
None.
Unit: CNY
Item Current Period Previous Period
Material consumption 13,559,369.99 41,829,620.38
Research and development and
technical services
Share payment expense 5,499,198.18 12,843,885.44
Other indirect costs 150,085,240.49 135,937,130.65
Total 220,140,589.52 260,975,311.10
Of which: Expensed research and
development expenditure
Capitalized research and
development expenditure
There is no business combination not under common control during current period.
There is no business combination under common control during current period.
The basic information of the transaction, the basis of the transaction constitutes the reverse purchase,
whether the assets and liabilities retained by the listed company constitute the business and its basis,
the determination of the merger cost, and the adjustment of the equity amount and its calculation
according to the equity transaction:
There is no reverse purchase during current period.
Whether there is a situation of losing control after disposing the investment in the subsidiary only
once
□ Yes ? No
Whether there is a situation of disposing the investment in the subsidiary through several transactions
step by step and losing control during the period
□ Yes ? No
Explain other reasons for changing consolidated scope (such as establishing a new subsidiary,
liquidating a subsidiary) and its related situation:
In August 2025, the Company invested and incorporated a wholly-owned subsidiary, Luzhou Laojiao
Cultural Tourism Development Co., Ltd.
None.
Unit: CNY
Major Shareholding Proportion
Name of Registered Place of Nature of Acquisition
business
Subsidiaries capital registration business Direct Indirect method
location
Luzhou
Laojiao Baijiu
Baijiu Luzhou Luzhou manufactur 100.00% Investment
Production 6.00 e and sale
Co., Ltd.
Luzhou Red
Business
Sorghum Agricultural
combination
Modern 10,000,000. product
Luzhou Luzhou 60.00% under
Agricultural 00 planting and
common
Developme sale
control
nt Co., Ltd.
Luzhou
Laojiao 100,000,00
Luzhou Luzhou Baijiu sale 100.00% Investment
Sales Co., 0.00
Ltd.
Luzhou
Laojiao
Nostalgic 5,000,000.0
Luzhou Luzhou Baijiu sale 100.00% Investment
Liquor 0
Marketing
Co., Ltd.
Luzhou
Laojiao
Selected
Supply Luzhou Luzhou Baijiu sale 100.00% Investment
Chain 00
Manageme
nt Co., Ltd.
Guangxi
Luzhou
Laojiao Red wine
Imported Qinzhou Qinzhou production 100.00% Investment
Liquor 00 and sale
Industry
Co., Ltd.
Luzhou
Dingli
Liquor Luzhou Luzhou Baijiu sale 100.00% Investment
Industry 0
Co., Ltd.
Luzhou
Laojiao
Qiankun
Cheteau 5,000,000.0
Luzhou Luzhou Baijiu sale 100.00% Investment
Custom 0
Liquor
Sales Co.,
Ltd.2
Luzhou
Laojiao
New Liquor Luzhou Luzhou Baijiu sale 100.00% Investment
Industry 0
Co., Ltd.
Luzhou Liquor
Laojiao I & Luzhou Luzhou import and 100.00% Investment
E Co., Ltd. 0 export trade
Luzhou
Laojiao
Boda Liquor 120,000,00
Luzhou Luzhou Baijiu sale 75.00% Investment
Industry 0.00
Marketing
Co., Ltd.
Luzhou
Laojiao
Fruit Wine Luzhou Luzhou 41.00% Investment
Industry
Co., Ltd.
Mingjiang
Co., Ltd. America America Baijiu sale 54.00% Investment
(USD) 0
Luzhou
Laojiao
Internationa 20,000,000. Food import
Hainan Hainan 100.00% Investment
l Trade 00 and export
(Hainan)
Co., Ltd.
Luzhou Technology
Pinchuang 50,000,000. developmen
Luzhou Luzhou 100.00% Investment
Technology 00 t and
Co., Ltd. service
Luzhou
Laojiao
Internationa
l
Developme
nt (Hong
Kong) Co.,
Ltd. (HKD)
Luzhou
Laojiao
Commercial
Business
Developme
nt (North
t
America)
Co., Ltd.
(USD)
Luzhou
Laojiao
Electronic Luzhou Luzhou Liquor sale 90.00% Investment
Commerce 00
Co., Ltd.
Luzhou
Business
Laojiao Health care
combination
Health 10,000,000. liquor
Luzhou Luzhou 100.00% under
Liquor 00 manufactur
common
Industry e and sale
control
Co., Ltd.
Luzhou
Business
Laojiao
combination
Health 5,000,000.0 Health care
Luzhou Luzhou 100.00% under
Liquor 0 liquor sale
common
Sales Co.,
control
Ltd.
Luzhou
Laojiao 50,000,000.
Luzhou Luzhou Baijiu sale 40.00% 60.00% Investment
New Retail 00
Co., Ltd.
Technology
Luzhou 500,000,00
Chengdu Chengdu developmen 40.00% 60.00% Investment
Laojiao 0.00 t and
Technology service
Innovation
Co., Ltd.
Luzhou
Laojiao
Cultural 30,000,000. Cultural
Luzhou Luzhou 40.00% 60.00% Investment
Tourism 00 tourism
Developme
nt Co., Ltd.
Statement for the fact that the proportion of share-holding is different from the proportion of voting
rights:
Note: Although the Company holds less than 51% of the equity in Luzhou Laojiao Fruit Wine Industry
Co., Ltd., of the five members of the board of directors of the company, three members are appointed
by the Company, which represents a majority, and the Company exercises substantive control over
the company. Therefore, it is included in the scope of consolidation.
Unit: CNY
Gains and losses
Proportion of share Dividends paid to
attributable to non- Closing balance of
holdings of non- non-controlling
Name of subsidiary Controlling non-controlling
Controlling shareholders during
shareholders during shareholders interest
shareholders current period
current period
Luzhou Laojiao Boda
Liquor Industry 25.00% 28,163,719.84 28,163,719.84 61,843,872.29
Marketing Co., Ltd.
Unit: CNY
Closing Balance Opening Balance
Name Non- Non-
of Non- Curre Non- Curre
Curre curren Total Curre curren Total
subsid curren Total nt curren Total nt
nt t liabiliti nt t liabiliti
iary t assets liabiliti t assets liabiliti
assets liabiliti es assets liabiliti es
assets es assets es
es es
Luzho
u
Laojia
o
Boda
Liquor
Indust
ry
Marke
ting
Co.,
Ltd.
Unit: CNY
Current Period Previous Period
Name of Total Total
subsidiary Operating comprehe Operating Operating comprehe Operating
Net profit Net profit
revenue nsive cash flow revenue nsive cash flow
income income
Luzhou
Laojiao
Boda
Liquor
Industry
Marketing
Co., Ltd.
Other statements:
Company
None.
scope of consolidated financial statements
None.
Other statements:
the company still controls the subsidiary
None.
equity attributable to the company as the parent
None.
Name of joint Major Shareholding proportion
Place of Business Accounting
venture/associ business
registration nature Direct Indirect Method
ates location
Important joint
ventures:
none
Important
associates:
Huaxi
Chengdu, Chengdu,
Securities Securities 10.39% Equity method
Sichuan Sichuan
Co., Ltd.
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or
more voting rights but does not have a significant impact:
The Company has the substantive decision-making power, so the Company still has significant
influence on Huaxi Securities.
Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Current assets 96,509,002,038.54 93,869,804,524.81
Non-current assets 8,934,253,870.69 6,470,872,129.58
Total assets 105,443,255,909.23 100,340,676,654.39
Current liabilities 58,119,608,404.73 55,278,203,069.28
Non-current liabilities 22,531,896,382.85 21,499,772,518.55
Total liabilities 80,651,504,787.58 76,777,975,587.83
Non-controlling shareholder interest 14,102,701.14 16,018,731.95
Shareholder interest attributable to
parent company
Share of net assets calculated based
on shareholding proportion
Adjusted
--Goodwill
--Unrealized profits of internal
transactions
--Others 167,466,735.90 167,466,735.90
Book value of equity investments in
associate companies
Fair value of equity investments in
associate companies that have public 2,531,873,016.32 2,267,226,806.64
quote
Operating revenue 4,615,484,528.69 3,919,594,533.79
Net profit 1,468,412,144.79 726,724,518.60
Net profit from discontinued
operation
Other comprehensive income 88,781,426.46 165,051,592.33
Total comprehensive income 1,557,193,571.25 893,035,220.62
Dividends from associate companies
this year
companies
Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Joint ventures:
Total following items calculated on
the basis of shareholding proportion
Associate companies:
Total book value of investments 188,056,147.51 186,445,285.36
Total following items calculated on
the basis of shareholding proportion
--Net profit 2,766,667.32 2,120,824.16
--Total comprehensive income 2,766,667.32 2,120,824.16
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co., Ltd., Sichuan Development Liquor Investment Co., Ltd., CTS Luzhou Laojiao Cultural
Tourism Development Co., Ltd., Sichuan Tongniang Baijiu Industry Technology Research Institute Co.,
Ltd. and Sichuan Tianfu Granary Liquor Industry Co., Ltd.
companies to transfer funds to the Company
None.
None.
None.
None.
amount receivable
□ Applicable ? N/A
Reasons for failing to receive government grants in the estimated amount at the estimated point in
time
□ Applicable ? N/A
? Applicable □ N/A
Unit: CNY
Non- Other
Increase in operating Related to
Opening income in Other Closing
Item current income in assets/
Balance current changes Balance
period current income
period period
Deferred 86,672,726. 22,315,000. 26,473,781. 82,513,945. Related to
income 83 00 06 77 assets
Total
? Applicable □ N/A
Unit: CNY
Item Amount in current period Amount in previous period
Other income 50,072,435.13 41,225,885.28
Non-operating revenue
Total 50,072,435.13 41,225,885.28
Other statements:
The Company's primary financial instruments include monetary capital, trading financial assets,
accounts receivable, receivables financing, receivables other than tax refundable, other equity
instruments, accounts payable, other payables, lease liabilities, some other current liabilities and loans.
A detailed description of each financial instrument is set out in Note 7. Notes to the main items of the
consolidated financial statements.
Risks related to these financial instruments, and risk management policies the Company has adopted
to reduce these risks are described as follows. The Company management manages and monitors the
risk exposure to ensure the above risks are controlled in a limited scope.
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk variable
rarely changes in isolation, and the correlation between variables will have a significant effect on the
final impact amount of the change of a risk variable, the following content is based on the assumption
that the change of each variable is independent.
Risk management objective: The Company strikes an appropriate balance between risk and return, and
strives to minimize the negative impact of risk on the Company's operating performance and maximize
the interests of shareholders and other equity investors.
Risk management policy: The Board of Directors shall be responsible for planning and establishing a
risk management framework, formulating risk management policies and related guidelines, and
supervising the implementation of risk management measures. The Risk Management Committee shall
carry out risk management through close collaboration (including the identification, evaluation and
avoidance of relevant risks) with other business units of the Company in accordance with the policies
approved by the Board of Directors. The internal audit department shall conduct regular audits on risk
management controls and procedures and report the results to the Audit Committee.
The Company has formulated risk management policies to identify and analyze the risks it faces,
clarifying specific risks and covering many aspects such as credit risk, liquidity risk and market risk
management. On a regular basis, the Company evaluates the specific market environment and various
changes in the Company's business operations to determine whether any risk management policy and
system should be updated. The Company diversifies the risks to financial instruments through
appropriately diversified investments and business portfolios, and reduces the risk of concentration in
any single industry, specific geographic area or specific counterparty by formulating appropriate risk
management policies.
Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations,
causing financial losses to the other party. The Company only trades with recognized, reputable, and
large third parties. In accordance with the Company's policy, the terms of sale with customers are
based on transactions of payment before delivery, with only a small amount of credit transactions, and
credit review for all customers who require credit to trade. In addition, the Company continuously
monitors and controls the balance of the receivables to ensure that the Company does not face
significant bad debt risks. In addition, the Company makes full provision for expected credit losses at
each balance sheet date based on the collection of receivables. Therefore, the Company's
management believes that the Company's credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of working
capital is low.
The Company's risk exposures are spread across multiple contract parties and customers in multiple
geographies, with customers in the commerce industry in addition to the alcohol distribution industry
(the main industry). No systemic risk has been identified in the relevant industries. Therefore, the
Company has no significant credit concentration risk. As at December 31, 2025, the balance of the top
five customers of the Company's accounts receivable amounted to CNY 6.0378 million, accounting for
Liquidity risk refers to the risk unable to obtain sufficient funds in time to meet business development
needs or to repay debts due and other payment obligations. The Company has sufficient working
capital. The liquidity risk is extremely small. The Company's objective is to use a variety of financing
instruments such as bank clearing, bank loans and issuing corporate bonds to maintain a balance
between financing sustainability and flexibility. As at December 31, 2025, the Company has been able
to meet its own continuing operation requirements through the use of cash flow from operations.
The analysis of the financial liabilities held by the Company based on the maturity period of the
undiscounted remaining contractual obligations is as follows:
Closing Balance
Item Contract amount
Book value Within 1 year 1-2 years 2-3 years Over 3 years
not discounted
Accounts
payable
Other payable 587,589,747.04 587,589,747.04 587,589,747.04
Non-current
liabilities due 4,074,199,213.05 4,074,199,213.05 4,074,199,213.05
within one year
Long-term
loans
Lease
liabilities
Total 8,718,069,637.43 8,718,447,028.62 6,075,210,135.89 2,224,679,181.80 5,069,000.00 413,488,710.93
(1) Foreign exchange risk
The foreign exchange risk refers to the risk of loss due to exchange rate changes. Apart from the three
subsidiaries of the Company which make purchases and sales in USD and HKD, the other major
business activities are denominated and settled in CNY. The Company closely monitors the impact of
exchange rate fluctuations on its foreign exchange risk, and actively tracks the scale of foreign currency
transactions, as well as foreign currency assets and liabilities, to minimize exposure to exchange rate
risks. In order to hedge risks in the foreign exchange market, prevent adverse effects from significant
fluctuations in exchange rates, control financial expenses and reduce exchange rate risks in overseas
operations, the Company's subsidiary, Luzhou Laojiao International Development (Hong Kong) Co.,
Ltd., has engaged in forward foreign exchange contract transactions. As at December 31, 2025, the
Company's assets and liabilities are mainly in CNY balance. At present, the Company's management
considers the impact of changes in foreign exchange risk on the Company's financial statements to be
less.
(2) Rate risk
The Company's interest rate risk mainly arises from the long-term loans from banks. Financial liabilities
based on the floating interest rate will cause the cash flow interest rate risk to the Company, and
financial liabilities based on the fixed interest rate the fair value interest rate risk. The Company will
determine the corresponding proportion between the contracts with fixed interest rate and those with
floating interest rate in combination with current market condition.
(3) Other price risks
Other price risk refers to the risk of fluctuation caused by market price changes other than foreign
exchange risk and interest rate risk, whether these changes are caused by factors related to a single
financial instrument or its issuer or all similar financial instruments traded in the market. Other price
risks faced by the Company mainly come from held-for-trading financial assets and investments in other
equity instruments measured at fair value.
? Applicable □ N/A
Unit: CNY
Amount of
Nature of transferred Basis for
Transfer method transferred financial Derecognized or not
financial assets derecognition
assets
Outstanding bank
Almost all its risks
Endorsement of acceptance bills in
notes accounts receivable
been transferred
financing
Outstanding bank
Almost all its risks
acceptance bills in
Discount of notes 2,024,406,085.76 Yes and rewards have
accounts receivable
been transferred
financing
Total 2,249,475,448.63
? Applicable □ N/A
Unit: CNY
Method of financial assets Amount of derecognized Gains or losses related to
Item
transfer financial assets derecognition
Outstanding bank
acceptance bills in
Endorsement of notes 225,069,362.87
accounts receivable
financing
Outstanding bank
acceptance bills in
Discount of notes 2,024,406,085.76 -9,216,740.71
accounts receivable
financing
Total 2,249,475,448.63 -9,216,740.71
□ Applicable ? N/A
Other statement
Unit: CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
measurement at fair -- -- -- --
value
financial assets
assets measured at
fair value with their
changes included
into current
profits/losses
management 1,584,771,959.37 1,584,771,959.37
products
other equity 442,241,327.25 33,257,910.65 475,499,237.90
instruments
receivable financing
Total assets
continuously
measured at fair
value
measurement at fair -- -- -- --
value
discontinuously within Level 1 of the fair value hierarchy
The listed companies in mainland China determine the fair value of other equity instrument investment
according to the closing price on the last trading day of Shenzhen Stock Exchange or Shanghai Stock
Exchange at the period-end. The companies listed in Hong Kong determine the fair value of other
equity instrument investment according to the closing price of Hong Kong Dollar on the last trading day
of Hong Kong Stock Exchange at the period-end and the median price of CNY exchange rate disclosed
on the same day by China Foreign Exchange Trade System.
important parameters for either continuously or discontinuously within Level 2 of
the fair value hierarchy
None.
important parameters for either continuously and discontinuously within Level 3 of
the fair value hierarchy
Trading financial assets are wealth management products of the collective asset management plan and
are measured at fair value based on the amount calculated on the basis of the net unit value of the
underlying assets as published on the official website of the asset manager.
Accounts receivable financing: As the timing and price of bills discounted may not be reliably estimated
due to the short maturity of the bills all being less than one year and the endorsement of the negotiable
bills being valued at book value, the Company measures the bills receivable at their book value as a
reasonable estimate of fair value.
Other equity instrument investment: Due to no significant changes in business environment, business
condition and financial situation of invested companies, the Company shall measure the fair value
according to the lower one between investment cost and the share of net assets enjoyed by invested
companies on the base date as the reasonable estimation.
beginning carrying value and the ending carrying value and sensitivity analysis on
unobservable parameters
None.
conversion happens if conversion happens among continuous fair value
measurement items at different level
None.
changes
None.
None.
Shareholding Voting rights
Registration Registered
Parent company Business nature proportion by the proportion by the
place capital
parent company parent company
Investment and
Luzhou Laojiao
Luzhou, Sichuan asset 2,798,818,800 26.05% 50.99%
Group Co., Ltd.
management
Statements for situation of parent company:
Note: The reason for the inconsistency between the shareholding proportion and voting rights
proportion by the controlling shareholder is that: ① On May 23, 2024, Laojiao Group and XingLu
Investment Group, the second biggest shareholder, renewed the concerted action agreement again
which is valid as of June 1, 2024 and ends on May 31, 2027. The agreement: when the parties
dealing with the Company’s business development and make decisions by shareholders meeting and
board of directors according to the company law and other relevant laws and regulations and the
articles of association, the parties should adopt the consistent actions. During the effective period of
this agreement, before any party submits proposals involving the major issues of the Company's
business development to the shareholders meeting or exercise the voting rights at the shareholders
meeting and the board of directors, the internal coordination for relevant proposals and voting events
shall be conducted by persons acting in concert. If there are different opinions, it will be subject to
Laojiao Group’s opinion. ② From March 2025 to September 2025, Laojiao Group increased its
holdings of the Company’s shares by 2,345,250 shares via centralized bidding transactions. For
details please see Note 3. Company Profile.
The nature of the controlling shareholder: Limited liability company (state-owned); Registration place:
Innovation and Entrepreneurship Center, Liquor Industry Park, Huangyi Town, Jiangyang District,
Luzhou City, Sichuan Province; Business Scope: General project: Social economy consulting services;
business management consulting; financial consulting; business headquarters management; import
and export agency; trade brokerage; crops planting services; trees planting operation; elder care
services; tourism development project planning and consulting; technical agency services;
engineering and technological research and experimental development; display device manufacturing;
supply chain management services; technical services, technical development, technical consulting,
technical communication, technical transfer, and technical promotion; domestic freight transport
agency; equity fund-invested asset management services, passenger ticket agent and business
agency service. It shall also include licensed projects (business activities can be carried out legally
and independently with business license in addition to projects that must be approved by law):
Agency bookkeeping; career intermediary activities; food production; food sales; medical services.
(business activities that require approval in accordance with laws can be carried out upon approval of
relevant authorities, and the specific business projects shall be subject to the approval document or
license of relevant departments)
The final control party of the Company is SASAC of Luzhou.
Other statements:
(1) Registered capital of the controlling shareholder and its changes (Unit: CNY 10,000)
Increase in Decrease in
Controlling shareholder Opening balance Closing balance
current period current period
Luzhou Laojiao Group Co., Ltd. 279,881.88 279,881.88
(2) Shares or equity interests held by the controlling shareholder and the changes therein
Shareholding amount Shareholding proportion (%)
Shareholding Shareholding at
Controlling shareholder
Closing balance Opening balance at the end of the beginning of
the year the year
Luzhou Laojiao Group Co., Ltd. 383,433,639.00 381,088,389.00 26.05 25.89
For details please see Note 10.1. Interests in subsidiaries.
For details please see Note 10.3. Interests in joint ventures and associates.
Name of Other Related Party Relationship with the Company
Luzhou XingLu Investment Group Co., Ltd. The second largest shareholder
Luzhou Airport (Group) Co., Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Water (Group) Co., Ltd. Subsidiary of the second largest shareholder
Luzhou Public Transport Group Co., Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Property Management Co., Ltd. Subsidiary of the second largest shareholder
CTS Luzhou Laojiao Cultural Tourism Development Co.,
Associate
Ltd.
Sichuan Tianfu Granary Liquor Industry Co., Ltd. Associate
Sichuan Development Liquor Investment Co., Ltd. Associate
Luzhou Sanrenxuan Liquor Industry Co., Ltd. Associate of the controlling shareholder
Sichuan Jianxing Park Operation Management Co., Ltd. Associate of the controlling shareholder
Luzhou COSCO Shipping Logistics Co., Ltd. Associate of the controlling shareholder
Sichuan Landstar Supply Chain Technology Co., Ltd. Associate of the controlling shareholder
Shijiazhuang Chengtong Lianzhong Storage and
Associate of the controlling shareholder
Transportation Co., Ltd.
Sichuan Sidu Chishui Red Culture Development Co., Ltd. Associate of the controlling shareholder
Sichuan Geyuan Equity Investment Fund Management
Associate of the controlling shareholder
Co., Ltd.
Luzhou Bank Co., Ltd. Associate of the controlling shareholder
Luzhou Rural Commercial Bank Co., Ltd. Associate of the controlling shareholder
Sichuan Lianzhong Supply Chain Service Co., Ltd. Other subsidiary of the controlling shareholder
Sichuan Kangrun Group Construction and Installation
Other subsidiary of the controlling shareholder
Engineering Co., Ltd.
Shenzhen Mingxincheng Lighting Technology Co., Ltd. Other subsidiary of the controlling shareholder
Luzhou Yuanhai Lianzhong Supply Chain Co., Ltd. Other subsidiary of the controlling shareholder
APTCC Other subsidiary of the controlling shareholder
Luzhou Laojiao Innovation Industry Holdings Co., Ltd. Other subsidiary of the controlling shareholder
Luzhou Jiachuang Liquor Supply Chain Management
Other subsidiary of the controlling shareholder
Co., Ltd.
Luzhou Laojiao Property Service Co., Ltd. Other subsidiary of the controlling shareholder
Luzhou Huguo Condiment Co., Ltd. Other subsidiary of the controlling shareholder
SC Global Wine Corporation Limited Other related party
Sichuan Not Single Cultural and Creative Development
Other related party
Co., Ltd.
Minority shareholder of the subsidiary Custom Liquor
Sichuan Baijiu Production Art E-business Co., Ltd.
Company
Minority shareholder of the subsidiary Custom Liquor
Luzhou Yucheng Trading Co., Ltd.
Company
Minority shareholder of the subsidiary Custom Liquor
Luzhou 2013 Liquor Marketing Co., Ltd.
Company
Sichuan Meihe Winery Industry Co., Ltd. Minority shareholder of the subsidiary Fruit Wine Industry
services
Table of purchase of goods / receipt of services
Unit: CNY
Whether over
Name of Related Amount in Approved trading Amount in
Transaction approved trading
Party current period amount previous period
amount
Receipt of
services:
Training,
accommodation,
Laojiao Group warehousing,
and its loading and
subsidiaries, joint unloading, 106,530,297.66 94,637,427.08
ventures and transportation
associates services and
property costs,
etc.
Luzhou XingLu
Investment Property service,
Group Co., Ltd. advertising 23,292,479.69 29,091,328.49
and its service, etc.
subsidiaries
CTS Luzhou
Laojiao Cultural Conference fees,
Tourism travel service 8,914,614.84 10,275,324.41
Development fee, etc.
Co., Ltd.
Subtotal of
receipt of 138,737,392.19 134,004,079.98
services
Purchase of
goods:
Laojiao Group
and its other Raw materials,
subsidiaries, joint water, power, 270,080,317.97 322,867,238.48
ventures and etc.
associates
Luzhou XingLu
Investment
Group Co., Ltd. Gas, water 13,469,653.07 14,699,091.83
and its
subsidiaries
Subtotal of
purchase of 283,549,971.04 337,566,330.31
goods:
Total 422,287,363.23 471,570,410.29
Table of sales of goods and rendering of service
Unit: CNY
Name of Related Party Transaction Amount in current period Amount in previous period
CTS Luzhou Laojiao Liquor, etc. 54,877,667.51 102,225,092.84
Cultural Tourism
Development Co., Ltd.
Laojiao Group and its
Liquor, etc. 56,601,495.35 36,151,086.06
subsidiaries
Luzhou Sanrenxuan Liquor
Liquor 38,543,325.61 37,943,774.39
Industry Co., Ltd.
Sichuan Tianfu Granary
Liquor 5,021,889.15 9,273,012.30
Liquor Industry Co., Ltd.
SC Global Wine
Liquor 625,965.08 697,150.36
Corporation Limited
Sichuan Jianxing Park
Operation Management Liquor 96,535.62 76,496.28
Co., Ltd.
Sichuan Sidu Chishui Red
Culture Development Co., Liquor 38,000.00 7,764.66
Ltd.
Sichuan Geyuan Equity
Investment Fund Liquor 356.22 1,150.32
Management Co., Ltd.
Sichuan Not Single
Cultural and Creative Liquor 6,326.76
Development Co., Ltd.
Total 155,805,234.54 186,381,853.97
The Company as lessor:
Unit: CNY
Leasing income recognized Leasing income recognized
Name of lessee Type of leased asset
during current period during previous period
Laojiao Group and its House and equipment
subsidiaries lease
The Company as lessee:
Unit: CNY
Rental expenses
of short-term Variable lease
lease with payments not
Income expense
simplified included in the Increased use
Type Paid rent of lease liabilities
treatment and measurement of right assets
undertaken
Name low-value asset lease liabilities (if
of
of lease (if applicable)
lessor assets applicable)
leased Amoun Amoun Amoun Amoun Amoun
Amoun Amoun Amoun Amoun Amoun
t in t in t in t in t in
t in t in t in t in t in
previo previo previo previo previo
current current current current current
us us us us us
period period period period period
period period period period period
Laojiao
Group
House 3,499, 3,364, 3,499, 3,364,
and its
lease 540.44 818.53 540.44 818.53
subsidi
aries
Unit: CNY
Item Amount in current period Amount in previous period
Key management compensation 9,976,525.501 13,449,854.68
Note: 1 In accordance with the requirements of the new Company Law and the Implementation Plan
for Deepening the Reform of the Board of Supervisors of State-owned Enterprises, the Company
completed the reform of its Board of Supervisors during the reporting period. As a result, the
statistical scope of key management compensation in this reporting period has changed, and the
compensation of supervisors is not included.
The Company has daily fund deposit business with its related parties, Luzhou Bank Co., Ltd. and
Luzhou Rural Commercial Bank Co., Ltd. As of December 31, 2025, the bank deposit balances of the
Company in Luzhou Bank Co., Ltd. and Luzhou Rural Commercial Bank Co., Ltd. were CNY
deposits in Luzhou Bank Co., Ltd. and Luzhou Rural Commercial Bank Co., Ltd. were CNY6.2776
million and CNY 21.5250 million respectively. This year and last year, the Company did not conduct
loan business with the above two banks.
Unit: CNY
Closing Balance Opening Balance
Item Related party Provision for bad Provision for bad
Book value Book value
debt debt
Luzhou Laojiao
Prepayment 8,778,438.12 9,180,164.89
Group Co., Ltd.
Luzhou XingLu
Prepayment Water (Group) 27,682.34 691,263.37
Co., Ltd.
Luzhou Public
Prepayment Transport Group 161,232.86
Co., Ltd.
Luzhou China
Resources
Prepayment 107,402.91
Xinglu Gas Co.,
Ltd.
Sichuan Meihe
Prepayment Winery Industry 2,961,479.50 2,961,479.50
Co., Ltd.
Other Luzhou Airport
receivables (Group) Co., Ltd.
Unit: CNY
Item Related party Closing Balance Opening Balance
Sichuan Lianzhong Supply
Accounts payable 17,764,335.79 3,302,166.70
Chain Service Co., Ltd.
Sichuan Kangrun Group
Construction and
Accounts payable 7,870.20 3,738.20
Installation Engineering
Co., Ltd.
Luzhou Xinglu Property
Accounts payable 342,099.50
Management Co., Ltd.
CTS Luzhou Laojiao
Contractual liabilities (tax
Cultural Tourism 165,261.04 30,406,394.92
inclusive)
Development Co., Ltd.
Contractual liabilities (tax
APTCC 709,197.67 709,197.66
inclusive)
Contractual liabilities (tax Luzhou Sanrenxuan Liquor
inclusive) Industry Co., Ltd.
Sichuan Jianxing Park
Contractual liabilities (tax
Operation Management 945,027.90 1,374,481.80
inclusive)
Co., Ltd.
Contractual liabilities (tax Sichuan Lianzhong Supply
inclusive) Chain Service Co., Ltd.
Contractual liabilities (tax Luzhou Laojiao Innovation
inclusive) Industry Holdings Co., Ltd.
Shijiazhuang Chengtong
Contractual liabilities (tax
Lianzhong Storage and 768.78 768.78
inclusive)
Transportation Co., Ltd.
Contractual liabilities (tax Luzhou Huguo Condiment
inclusive) Co., Ltd.
Sichuan Sidu Chishui Red
Contractual liabilities (tax
Culture Development Co., 38,000.00
inclusive)
Ltd.
Contractual liabilities (tax Sichuan Tianfu Granary
inclusive) Liquor Industry Co., Ltd.
Luzhou Xinglu Property
Other payables 154,920.20 154,920.20
Management Co., Ltd.
Sichuan Kangrun Group
Construction and
Other payables 70,000.00 70,000.00
Installation Engineering
Co., Ltd.
Other payables APTCC 150,000.00 150,000.00
Luzhou Laojiao Group Co.,
Other payables 5,000.00
Ltd.
CTS Luzhou Laojiao
Other payables Cultural Tourism 300,000.00 1,355,000.00
Development Co., Ltd.
Sichuan Jianxing Park
Other payables Operation Management 95,000.00 100,000.00
Co., Ltd.
Luzhou Laojiao Innovation
Other payables 200,000.00 206,000.00
Industry Holdings Co., Ltd.
Sichuan Development
Other payables 4,494,000.00 4,494,000.00
Liquor Investment Co., Ltd.
Sichuan Lianzhong Supply
Other payables 31,895,827.74 47,074,343.00
Chain Service Co., Ltd.
Luzhou Yuanhai Lianzhong
Other payables 50,000.00 50,000.00
Supply Chain Co., Ltd.
Luzhou Laojiao Property
Other payables 159,475.66 30,020.58
Service Co., Ltd.
Luzhou Sanrenxuan Liquor
Other payables 300,000.00 300,000.00
Industry Co., Ltd.
Sichuan Tianfu Granary
Other payables 100,000.00 100,000.00
Liquor Industry Co., Ltd.
None.
? Applicable □ N/A
Unit: CNY
Type of Granted in the Current Exercised in the Unlocked in the Current Invalid in the Current
granting Period Current Period Period Period
object Number Amount Number Amount Number Amount Number Amount
Total 2,160,499 9,540
Outstanding stock options or other equity instruments at the end of the reporting period
□ Applicable ? N/A
Other statements:
Note 1: At the 12th Meeting of the 10th Board of Directors of the Company held on December 29,
was agreed to grant 6,928,600 restricted shares to 441 awardees for the first time at CNY 92.71 per
share with December 29, 2021 as the grant date.
At the 18th Meeting of the 10th Board of Directors and the 9th Meeting of the 10th Board of
Supervisors of the Company held on July 25, 2022, the Proposal on the Grant of Reserved Portion of
Restricted Shares to Awardees was reviewed and approved and it was agreed to grant 342,334
restricted shares to 46 awardees at CNY 89.466 per share with July 25, 2022 as the grant date.
At the 26th Meeting of the 10th Board of Directors and the 15th Meeting of the 10th Board of
Supervisors of the Company held on December 29, 2022, the Proposal on the Grant of Reserved
Portion of Restricted Shares to Awardees was reviewed and approved and it was agreed to grant
According to the incentive plan, its validity period lasts from the date of registration for the grant of
restricted shares until all restricted shares are lifted from restricted sales or repurchased and retired,
for a maximum of 60 months. The lifting restriction period of the restricted shares shall be 24 months
from the date of completion of registration. The restricted shares will be lifted from restricted sales in
three batches after 24 months from the date of completion of registration, in the proportion of 40.00%,
In February 2025, the Company announced that 434 awardees met the lifting conditions in the
second lifting restriction period under the 2021 Restricted Share Incentive Plan of the Company. The
number of restricted shares that can be lifted from restricted sales was 2,022,530, accounting for
In February 2025, the Company announced that 17 awardees met the lifting conditions in the first
lifting restriction period under the 2021 Restricted Share Incentive Plan Reserved Portion of the
Company. The number of restricted shares that can be lifted from restricted sales was 37,069,
accounting for 0.0025% of the current total share capital of the Company.
In September 2025, 45 awardees met the lifting conditions in the second lifting restriction period
under the 2021 Restricted Share Incentive Plan Reserved Portion of the Company. The number of
restricted shares that can be lifted from restricted sales was 100,900, accounting for 0.0069% of the
current total share capital of the Company.
Note 2: In 2025, as three awardees no longer met the incentive conditions, the Company
repurchased and canceled a total of 9,540 restricted shares that had been granted but not yet
released from restrictions for these incentive recipients. As at the end of 2025, the Company had
completed the repurchase and cancellation of the above-mentioned shares.
? Applicable □ N/A
Unit: CNY
Method of determining the fair value of equity instruments The closing price of restricted stocks on the grant date
on the grant date deducts the grant price thereof
Important parameters of fair value of equity instruments
The closing price of restricted stocks on the grant date
on the grant date
The Company's management considered factors such as
Basis to determine number of equity instrument that can changes in the number of eligible employees for the latest
be exercised exercisable options and the level of performance
achievement to make the best estimate.
Reason for remarkable difference between the estimate
N/A
of the current period and that of previous period
Total amount of equity-settled share-based payments
included into capital reserves
Total costs of recognizing equity-settled share-based
payments in the current period
□ Applicable ? N/A
? Applicable □ N/A
Unit: CNY
Expenses for equity-settled share- Expenses for cash-settled share-
Type of granting object
based payments based payments
Production staff 7,202,251.25
Sales staff 18,588,708.87
Administrative staff 44,069,367.51
R&D staff 5,499,198.18
Total 75,359,525.81
None.
Significant commitments at the balance sheet date
None.
On October 15, 2014 and January 10, 2015, the Company disclosed three saving deposits involving
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch, Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank, with a total amount
of CNY 500 million. The public security organization has investigated, and the investigation of related
cases and the preservation of assets are under way. The Company has initiated a civil procedure to
recover the loss from the responsible unit. In 2025, the Company recovered CNY 32.7476 million of
saving deposits involving contract disputes. As of the period-end, the Company has recovered the
above-mentioned saving deposits involving contract disputes with CNY 408.6483 million.
Civil Ruling of the Jiangyang District People’s Court of Luzhou City, Sichuan Province (2025) Chuan
Engineering Bureau (Group) Co., Ltd., Luzhou Laojiao Baijiu Production Co., Ltd., and the third party
Sichuan Zhonghuan Yineng Environmental Protection Engineering Co., Ltd., concerning a dispute
over the right of subrogation of a creditor. On July 21, 2025, the applicant, Duan Pinghui, applied to
the Jiangyang District People’s Court of Luzhou City for asset preservation in litigation, requesting the
freezing of bank deposits of the respondents, China Construction First Engineering Bureau (Group)
Co., Ltd. and Luzhou Laojiao Baijiu Production Co., Ltd., in the amount of CNY 1,200,000.00, or the
seizure, impoundment or freezing of other property of corresponding value.
As of December 31, 2025, the Company was also involved in several lawsuits arising from daily
operations with relatively small amounts in dispute. However, the Company believes that any
liabilities arising from these minor lawsuits will not have a material adverse impact on the Company’s
financial position or operating results.
Except for the above matters, the Company has no other significant contingencies that need to be
disclosed as of the end of the reporting year.
to disclose
There was no significant contingency in the Company to disclose.
None.
Dividends to be distributed for every 10 existing shares
held (CNY)
Upon the resolution of the Board of Directors, the 2025
profit distribution plan was approved: Based on the
current 1,471,941,963 shares, a cash dividend of CNY
existing shares held, representing a total cash dividend
Profit distribution plan
amount of CNY 6,501,567,650.57 (tax included). Where
any change occurs to the Company's total share capital
before the implementation of the distribution plan,
relevant adjustments shall be made with the same total
distribution amount.1
Note: 1 The Company has reviewed and approved the interim profit distribution plan for 2025 at the
CNY 13.58 (tax included) for every 10 existing shares held to all shareholders, totaling CNY
the meeting of shareholders, the total cumulative cash dividend of the Company in 2025 will be CNY
shareholders of the listed company in 2025.
There are no important sales returns after balance sheet date.
Restricted Share Incentive Plan
At the 21st Meeting of the 11th Board of Directors held on February 4, 2026, the Proposal on the
Achievement of Lifting the Restriction Conditions in the Third Restriction Period under the 2021
Restricted Share Incentive Plan was reviewed and approved. In accordance with the 2021 Restricted
Share Incentive Plan (Draft), the restriction conditions in the third restriction period under the 2021
Restricted Share Incentive Plan have been achieved. The Company agreed to proceed with the
restriction lifting procedures for 421 incentive recipients who met the conditions. Restricted shares
eligible for release from restricted sale amounted to 1,962,814 shares, representing 0.1333% of the
current total share capital of the Company. This proposal was considered and approved by the
Remuneration and Appraisal Committee of the Board of Directors of the Company. The date of listing
for the restricted shares eligible for release from restricted sale was February 24, 2026.
Restricted Share Incentive Plan Reserved Portion
At the 21st Meeting of the 11th Board of Directors held on February 4, 2026, the Proposal on the
Achievement of Lifting the Restriction Conditions in the Second Restriction Period under the 2021
Restricted Share Incentive Plan Reserved Portion was reviewed and approved. In accordance with
the 2021 Restricted Share Incentive Plan (Draft), the restriction conditions in the second restriction
period under the 2021 Restricted Share Incentive Plan Reserved Portion have been achieved. The
Company agreed to proceed with the restriction lifting procedures for 17 awardees who met the
conditions. Restricted shares eligible for release from restricted sale amounted to 27,800 shares,
representing 0.0019% of the current total share capital of the Company. This proposal was
considered and approved by the Remuneration and Appraisal Committee of the Board of Directors of
the Company. The date of listing for the restricted shares eligible for release from restricted sale was
February 24, 2026.
The Company carried out the enterprise annuity payment work normally during the reporting period.
The enterprise annuity funds are paid by both the Company and employees. The Company's
contribution shall not exceed 8% of the Company's total salary in the previous year as stipulated by
the state, and the individual contribution shall be withheld by the Company according to 1% of total
salary of the employee in the previous year.
Except for the business on baijiu sales, the Company does not operate other businesses that have a
significant impact on operation results. In addition, the Company operates mainly from China and
main assets also located in China, so the Company does not need to disclose segment data.
Saving deposits involving contract disputes
As stated in Note 16.2, three saving deposits involved contract disputes in Agricultural Bank of China
Changsha Yingxin Sub-branch, Industrial and Commercial Bank of China Nanyang Zhongzhou Sub-
branch and another bank, with a total amount of CNY 500 million. At present, the investigation of
related cases and the preservation of assets have been under way. The Company has initiated a civil
procedure to recover the loss from the responsible unit.
Taking into account the current amount of assets preserved by the public security authorities and the
contents of the professional legal opinion issued by Sichuan Ding Zheng Law Firm on December 8,
cumulatively recovered CNY 409 million. At the same time, it is expected that further recoveries of up
to approximately CNY 10 million may be achieved in the future. The estimated actual loss arising from
the irregular deposits in the three aforementioned places is approximately CNY 80 million. Thus, it is
suggested that the total amount of bad debt provision for the irregular deposits in the three
aforementioned places was CNY 80 million”, the Company has made a bad debt provision of CNY 80
million for saving deposits involving contract disputes as of the end of the period, and the amount of
the bad debt provision may be adjusted in the future based on the litigation process and recovery.
company (all currency units are CNY, except other specific statements)
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 7,840.91 15,421.83
Total 22,240.94 15,421.83
Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Includin
g:
Account
s
receiva 22,240. 100.00 1,832.0 20,408. 15,421. 100.00 14,701.
ble 94 % 4 90 83 % 83
tested
for
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
ble
tested
for
impairm
ent on 8.24% 720.00 4.67%
the 94 % 4 90 83 % 83
portfolio
with
charact
eristics
of credit
risk
Total 8.24% 720.00 4.67%
Provision for bad debt by the portfolio: CNY 1,832.04
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 22,240.94 1,832.04 8.24%
Including: within 1 year 7,840.91 392.04 5.00%
Other portfolio
Total 22,240.94 1,832.04
Notes to the determination basis for the portfolio:
If adopting the general mode of expected credit loss to withdraw provision for bad debt of accounts
receivable
□ Applicable ? N/A
Allowance of provision for bad debt:
Unit: CNY
Changes in current period
Opening Closing
Type Reversal or
Balance Allowance Write-off Other Balance
recovery
Accounts
receivable
with a single
provision for
expected
credit loss
Accounts
receivable
with expected 720.00 1,112.04 1,832.04
credit loss by
portfolio
Total 720.00 1,112.04 1,832.04
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
There is no significant provision in accounts receivable reversed or recovered in the reporting period.
Notes to write-off of accounts receivable:
There were no accounts receivable written-off in the current period.
Unit: CNY
Closing balance
of provision for
Proportion to
bad debt
Closing balance total closing
Closing balance Closing balance provision of
of accounts balance of
Company name of accounts of contract accounts
receivable and accounts
receivable assets receivable and
contract assets receivable and
impairment
contract assets
allowance of
contract assets
Wang Huiying 14,400.03 14,400.03 64.75% 1,440.00
China Railway
Group Co., Ltd.
Total 22,240.94 22,240.94 100.00% 1,832.04
Unit: CNY
Item Closing Balance Opening Balance
Other receivables 12,687,994,073.65 14,619,833,493.32
Total 12,687,994,073.65 14,619,833,493.32
Unit: CNY
Nature Closing book balance Opening book balance
Internal intercourse funds 12,674,256,978.12 14,612,828,324.02
Intercourse funds and others 2,600,905.95 3,139,064.91
Saving deposits involving contract
disputes 1
Total 12,768,209,529.72 14,740,066,642.10
Note: 1 The saving deposits involving contract disputes are three deposits amounting to CNY
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
contract disputes and have thus been transferred into “other receivables”. In 2025, CNY
account as at the end of the year was CNY 91,351,645.65.
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 12,676,568,788.72 14,615,795,158.37
Over 3 years 91,431,325.651 124,178,933.17
Over 5 years 91,424,445.65 124,172,053.17
Total 12,768,209,529.72 14,740,066,642.10
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
saving deposits of CNY 91,351,645.65, which are yet to be recovered due to contract disputes.
Unit: CNY
Closing balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Provisio
n for
bad 91,351, 80,000, 11,351, 124,099 120,000 4,099,2
debt by 645.65 000.00 645.65 ,253.17 ,000.00 53.17
individu
al item
Inclu
ding:
Other
receiva
bles
that are
individu
ally
material
and for
which a 91,351, 80,000, 11,351, 124,099 120,000 4,099,2
separat 645.65 000.00 645.65 ,253.17 ,000.00 53.17
e
provisio
n for
bad
debts
has
been
made
Provisio 12,676, 99.28% 215,456 0.00% 12,676, 14,615, 99.16% 233,148 0.00% 14,615,
n for 857,884 .07 642,428 967,388 .78 734,240
bad .07 .00 .93 .15
debt by
the
portfolio
Inclu
ding:
Other
receiva
bles
tested
for
impairm 12,676, 12,676, 14,615, 14,615,
ent on 215,456 233,148
the .07 .78
portfolio .07 .00 .93 .15
with
charact
eristics
of credit
risk
Total 209,529 0.63% 994,073 066,642 0.82% 833,493
% 456.07 % ,148.78
.72 .65 .10 .32
Provision for bad debt by individual item: CNY 80,000,000.00
Unit: CNY
Opening Balance Closing Balance
Name Provision for Provision for Proporti
Book balance Book balance Reason
bad debt bad debt on
Saving
deposits Provision
involving 124,099,253.17 120,000,000.00 91,351,645.65 80,000,000.00 87.57% based on
contract legal opinion
disputes
Total 124,099,253.17 120,000,000.00 91,351,645.65 80,000,000.00
Provision for bad debt by the portfolio: CNY 215,456.07
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 2,600,905.95 215,456.07 8.28%
Including: within 1 year 2,311,810.60 115,590.53 5.00%
Over 5 years 72,800.00 72,800.00 100.00%
Other portfolio 12,674,256,978.12
Total 12,676,857,884.07 215,456.07
Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit: CNY
Provision for bad First stage Second stage Third stage Total
debt Expected loss in the
Expected credit loss Expected loss in the
duration (credit
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of January
Balance of January
period
Allowance of the
current period
Reversal of the
current period
Balance of
December 31, 2025
The basis for the division of each stage and the withdrawal proportion of bad debt provision
The basis for the division of each stage and the withdrawal proportion of bad debt provision: The
basis for division is that other receivables with single bad debt provision represent credit impairment
losses incurred since initial recognition (Stage 3), while the remaining portion is categorized based on
expected credit risk. Withdrawal proportions of bad debt provision are 0.002% for Stage 1 and
Changes of book balance with a significant change of loss provision in the current period
□ Applicable ? N/A
Allowance of provision for bad debt:
Unit: CNY
Changes in current period
Opening Closing
Type Reversal or Write-off or
Balance Allowance Other Balance
recovery verification
Bad debt
provision for
other
receivables
Total 120,233,148.78 53,267.71 40,070,960.42 80,215,456.07
Notes to write-off of other receivables:
There were no other receivables written-off in the current period.
Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Luzhou Laojiao
Internal
Baijiu Production 12,000,861,912.81 Within 1 year 93.99%
transactions
Co., Ltd.
Luzhou Laojiao
Internal
New Retail Co., 350,185,016.73 Within 1 year 2.74%
transactions
Ltd.
Luzhou Laojiao
Import and Internal
Export Trade transactions
Co., Ltd.
Saving deposits Saving deposits
involving involving 91,351,645.65 Over 5 years 0.72% 80,000,000.00
contract disputes contract disputes
Guangxi Luzhou
Laojiao Imported Internal
Liquor Industry transactions
Co., Ltd.
Total 12,751,601,820.88 99.87% 80,000,000.00
Unit: CNY
Other statements:
There were no other receivables presented due to the centralized management of funds in the current
period.
Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 3,997,837,147 3,997,837,147 3,952,848,501 3,952,848,501
subsidiary .01 .01 .33 .33
Investment in
associates 2,913,573,576 2,911,006,477 2,785,645,158 2,783,078,059
and joint .15 .35 .35 .55
venture
Total 2,567,098.80 2,567,098.80
.16 .36 .68 .88
Unit: CNY
Opening Changes in current period Closing
Opening balance of Closing balance of
Balance provision Provision Balance provision
Investee for
(book for Increase Decrease Other (book for
value) impairmen impairmen value) impairmen
t t t
Luzhou
Laojiao 337,977,8 16,298,06 354,275,9
Sales Co., 95.51 5.66 61.17
Ltd.
Luzhou
Laojiao
Baijiu
Productio
n Co., Ltd.
Luzhou
Laojiao
Health 11,441,32 700,169.4 12,141,49
Liquor 0.72 3 0.15
Industry
Co., Ltd.
Luzhou
Laojiao
Electronic
Commerc
e Co., Ltd.
Luzhou
Pinchuang 101,624,4 2,355,649. 103,980,1
Technolog 59.30 75 09.05
y Co., Ltd.
Luzhou
Laojiao
Internation
al 14,741,36 858,689.4 15,600,05
Developm 2.82 3 2.25
ent (Hong
Kong)
Co., Ltd.
Luzhou
Laojiao
New
Retail Co.,
Ltd.
Luzhou
Laojiao
Cultural
Tourism
Developm
ent Co.,
Ltd.
Total
Note: 1 The long-term equity investment increased by CNY 12,000,000.00 because the Company
invested in and incorporated Luzhou Laojiao Cultural Tourism Development Co., Ltd. this year.
where the parent company (the settlement enterprise) is an investor in the recipient subsidiary (the
service enterprise) and is recognized as a long-term equity investment in the subsidiary (the recipient
service enterprise) based on the fair value of the equity instruments at the date of grant, and the
capital reserve (other capital reserves) is recognized at the same time.
Unit: CNY
Invest Openi Openi Changes in current period Closin Closin
ee ng ng Gain Adjust g g
Balan Balan or ments Balan Balan
Cash
ce ce of loss of ce ce of
Other divide Provis
(book provisi recog other (book provisi
Increa Decre chang d or ion for
value) on for nized compr Other value) on for
se ase es in profit impair
impair under ehens impair
equity declar ment
ment equity ive ment
ed
metho incom
d e
Huaxi
Securi 2,614, 2,567, 152,8 9,225, 34,10 2,742, 2,567,
ties 807,0 098.8 19,54 632.9 3,893. 748,3 098.8
Co., 32.57 0 9.79 0 00 22.26 0
Ltd.
Luzho
u
Laojia
o
Postd
octora
l 36,68 36,81
Works 1,718. 3,478.
tation 60.45
Techn
ology
Innov
ation
Co.,
Ltd.
Sichu
an
Devel
opme 5,878, 5,920,
nt 42,54
Liquor 3.97
Invest 3 0
ment
Co.,
Ltd.
CTS
Luzho
u
Laojia
o
Cultur 125,7 - 125,5
al 40,64
Touris 9.70
m 7.95 26.01 1.64
Devel
opme
nt
Co.,
Ltd.
Subtot
al
Total 078,0 098.8 34,50 632.9 227,8 3,893. 006,4 098.8
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□ Applicable ? N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□ Applicable ? N/A
Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 10,447,780,093.36 8,280,349,241.83 11,068,191,164.35 8,451,791,359.73
Other business 20,846,249.20 2,851,913.79 22,778,534.03 2,521,249.13
Total 10,468,626,342.56 8,283,201,155.62 11,090,969,698.38 8,454,312,608.86
Details:
Unit: CNY
Baijiu sales Total
Contract category
Operating revenue Cost of sales Operating revenue Cost of sales
Commodity type
Including:
Medium and high
grade baijiu
Other baijiu 68,573,203.33 33,495,963.26 68,573,203.33 33,495,963.26
Other revenue 20,846,249.20 2,851,913.79 20,846,249.20 2,851,913.79
By operating
segment
Including:
Domestic 10,468,626,342.56 8,283,201,155.62 10,468,626,342.56 8,283,201,155.62
Outbound
Market or customer
type
Including:
Contract type
Including:
Recognize revenue
at point in time
Recognize revenue
by time period
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 10,468,626,342.56 8,283,201,155.62 10,468,626,342.56 8,283,201,155.62
Other statements
Note: The Company's main business is the production and sale of baijiu. Revenue is recognized at
the point when the Company transfers control of the relevant goods to the customer and fulfills its
performance obligations.
Information in relation to the transaction price apportioned to the residual contract performance
obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was CNY 960,049.10 at the period-end, among which CNY
Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under cost 6,940,181,729.27 9,761,010,919.08
method
Investment income from long-term
equity investments under equity 153,034,503.91 74,877,362.33
method
Investment income gained during the
period of holding held-for-trading 25,160,965.67 46,953,767.52
financial assets
Investment income from disposal of
held-for-trading financial assets
Dividends income gained during the
period of holding other equity 14,616,364.68 14,976,454.55
instrument investment
Income from derecognition of
financial assets measured at fair
-24,263,159.29 -21,417,110.91
value with changes recorded in other
comprehensive income 1
Total 7,111,561,304.79 9,846,935,832.26
Note: 1. The Company presented the discounting expenses of derecognized bank acceptance bills
under this account.
There is no major restriction on the repatriation of the Company's investment income.
Including: Investment income from long-term equity investments under the cost method
Item Current Period Previous Period
Luzhou Laojiao Sales Co., Ltd. 6,892,374,112.24 9,761,010,919.08
Luzhou Laojiao New Retail Co., Ltd. 39,774,713.03
Luzhou Laojiao International Development (Hong Kong) Co., Ltd. 8,032,904.00
Total 6,940,181,729.27 9,761,010,919.08
Including: investment income from long-term equity investments under the equity method
Item Current Period Previous Period
Huaxi Securities Co., Ltd. 152,819,549.79 75,663,468.99
Luzhou Laojiao Postdoctoral Workstation Technology Innovation
Co., Ltd.
Sichuan Development Liquor Investment Co., Ltd. 42,543.97 -19,699.92
CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. 40,649.70 890,926.67
Item Current Period Previous Period
Total 153,034,503.91 74,877,362.33
for gain, - for loss)
? Applicable □ N/A
Unit: CNY
Item Amount Note
Gains or losses on disposal non-
-534,054.68
current assets
Government grants recognized in
profit or loss (exclusive of those that
are closely related to the Company's
normal business operations and
given in accordance with defined 50,033,249.88
criteria and in compliance with
government policies, and have a
continuing impact on the Company's
profit or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by
a non-financial enterprise, as well as
on disposal of financial assets and
liabilities (exclusive of the effective
portion of hedges that is related to
the Company's normal business
operations)
Reverse of bad debt provision of
accounts receivable individually 40,000,000.00
conducting impairment test
Other non-operating income and
expenditure except above-mentioned -30,596,009.53
items
Less: Corporate income tax 23,034,464.44
Minority interests (after tax) 962,551.56
Total 70,675,148.38 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable ? N/A
No such cases for the reporting period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities
to the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.
□ Applicable ? N/A
Profit during reporting EPS (CNY/Share)
Weighted average ROE
period Basic EPS Diluted EPS
Net profits attributable to 22.66% 7.36 7.36
common shareholders of
the Company
Net profits attributable to
common shareholders of
the Company before non-
recurring gains and losses
accounting standards
international and Chinese accounting standards
□ Applicable ? N/A
overseas and Chinese accounting standards
□ Applicable ? N/A
overseas accounting standards; for any adjustment made to the difference existing in the data
audited by the foreign auditing agent, such foreign auditing agent’s name shall be clearly
stated
None.
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