2024 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou Laojiao Co., Ltd.
2024 Interim Report
【August 2024】
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section I Important Statements, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and senior management guarantee
that the information presented in this report is free of any false records, misleading statements or
material omissions, and shall individually and together be legally liable for truthfulness, accuracy and
completeness of its contents.
Liu Miao, responsible person for the Company, Xie Hong, responsible person for accounting work and
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.
All the directors attended the board meeting to deliberate this report by themselves.
Affected by risks, uncertainties and assumptions, the forward-looking statements concerning business
objectives and future plans made in this report based on the subjective assumptions and judgments of
the future policies and economic conditions may be significantly different from the actual results. Such
statements shall not be considered as virtual promises of the Company to investors, and the investors
and relevant persons shall maintain adequate risk awareness and shall understand the differences
between plans, forecasts and commitments.
In this report, the potential risks in the operation of the Company have been disclosed. Investors are
kindly reminded to pay attention to possible investment risks.
The Company has no interim dividend plan, either in the form of cash or stock.
This report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Contents
Section I Important Statements, Contents and Definitions......................................... 2
Section II Company Profile and Key Financial Results .............................................. 6
Section III Management Discussion and Analysis .................................................... 10
Section IV Corporate Governance ............................................................................ 37
Section V Environmental and Social Responsibility ................................................ 41
Section VI Significant Events ................................................................................... 49
Section VII Changes in Shares and Information about Shareholders....................... 56
Section VIII Preferred Shares ................................................................................... 64
Section IX Information about Bond .......................................................................... 65
Section X Financial Report ....................................................................................... 68
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Documents Available for Reference
1. Financial statements signed and stamped by the responsible person for the Company, the
responsible person for accounting work and the responsible person for the Company’s financial affairs
(Accounting Supervisor); and
2. The originals of all company documents and announcements that are disclosed to the public during
the reporting period.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
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.
Brewing Company Refer to Luzhou Laojiao Brewing Co., Ltd.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section II Company Profile and Key Financial Results
1. Corporate information
Stock abbreviation Luzhou Laojiao Stock code 000568
Stock exchange where
the shares of the Shenzhen Stock Exchange
Company are listed
Name of the Company 泸州老窖股份有限公司
in Chinese
Abbr. of the Company
name in Chinese (if 泸州老窖
any)
Name of the Company
Luzhou Laojiao Co., Ltd.
in English (if any)
Abbr. of the Company
name in English (if LZLJ
any)
Legal representative Liu Miao
2. Contact us
Representative for securities
Secretary of the board
affairs
Name Li Yong Wang Chuan
Luzhou Laojiao Command Center, Nanguang Road, Luzhou City,
Address
Sichuan Province, China
Tel. （0830）2398826 （0830）2398826
Fax （0830）2398864 （0830）2398864
E-mail dsb@lzlj.com dsb@lzlj.com
3. Other Information
3.1. Contact Information of the Company
Whether any change occurred to the registered address, office address and their zip codes, website
address, email address and other contact information of the Company in the reporting period.
Applicable N/A
No change occurred to the said information in the reporting period, which can be found in the 2023
Annual Report.
3.2. Information disclosure and place where the interim report is kept
Whether any change occurred to the information disclosure and place where the interim report is kept.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Applicable N/A
No change occurred to the website of the stock exchange, media and other websites designated by
the Company for information disclosure, as well as to the place where the disclosed documents are
kept in the reporting period. The said information can be found in the 2023 Annual Report.
3.3. Other information
Whether any change occurred to other information in the reporting period.
Applicable N/A
4. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data.
Yes No
H1 2024 H1 2023 Change
Operating revenues (CNY) 16,904,885,169.38 14,593,051,774.14 15.84%
Net profits attributable to
shareholders of the 8,027,538,165.31 7,090,426,787.07 13.22%
Company (CNY)
Net profits attributable to
shareholders of the
Company before non- 7,994,110,731.24 7,040,938,575.63 13.54%
recurring gains and losses
(CNY)
Net cash flows from
8,225,060,212.57 5,647,760,797.04 45.63%
operating activities (CNY)
Basic earnings per share
5.46 4.82 13.28%
(CNY/share)
Diluted earnings per share
5.46 4.82 13.28%
(CNY/share)
Weighted average ROE 17.61% 18.79% -1.18%
30 June 2024 31 December 2023 Change
Total assets (CNY) 70,239,197,050.01 63,294,455,201.60 10.97%
Net assets attributable to
shareholders of the 41,792,962,647.13 41,391,410,494.89 0.97%
Company (CNY)
5. Differences in accounting data under domestic and overseas
accounting standards
5.1. Differences in the net profits and net assets disclosed in the financial reports
prepared under the international and China accounting standards
Applicable N/A
No such differences for the reporting period.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
5.2. Differences in the net profits and net assets disclosed in the financial reports
prepared under the overseas and China accounting standards
Applicable N/A
No such differences for the reporting period.
6. Non-recurring gains and losses
Applicable N/A
Unit: CNY
Item Amount Note
Profit or loss from disposal of non-
current assets (including the write-off 1,058,795.10 See "Section X Note 5.48" for details.
portion of the impairment provision)
Government grants accounted for, in
the profit or loss for the current
period (except for the government
grants closely related to the business
of the Company and given in
18,852,624.09 See "Section X Note 5.44" for details.
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 See "Section X Note 5.45 and 5.46"
23,433,541.56
liabilities (exclusive of the effective for details.
portion of hedges that is related to
the Company's normal business
operations)
Other non-operating income and
See "Section X Note 5.49 and 5.50"
expenditure except above-mentioned 901,090.95
for details.
items
Less: Corporate income tax 10,740,409.33
Minority interests (after tax) 78,208.30
Total 33,427,434.07
Other items that meet the definition of non-recurring gain/loss:
Applicable N/A
No such cases for the reporting period.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
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.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section III Management Discussion and Analysis
1. Business scope in the reporting period
The Company operates within the baijiu subdivision industry which belongs to the liquor & wine,
beverage and refined tea production industry with specialized baijiu product design, production and
sales as its main business model. Its primary products include baijiu series such as "National Cellar
1573" and "Luzhou Laojiao", and its main comprehensive performance indicators rank high in the
baijiu industry.
In the face of profound market changes and diversified consumer demands, China's baijiu industry is
encountering new historic challenges. To navigate these challenges, baijiu producers must seek new
opportunities, implement innovative measures, and generate fresh demand, thereby ensuring the
long-term growth of the industry.
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Sel f-regulation of
Listed Companies—Industry-specific Information Disclosure.
The Company holds three food business licenses, and its production model is self-production. The
Company’s main business is the research and development, production and sales of baijiu series
such as "National Cellar 1573" and "Luzhou Laojiao".
During the reporting period, with a focus on the development theme of "proceeding with confidence,
overcoming challenges, innovating, and collaborating", the Company forged ahead and worked hard.
As a result, good results were achieved in various aspects. For H1 2024, operating revenue
amounted to CNY 16.905 billion, up 15.84% year on year; and the net profit attributable to the
shareholders of the listed company reached CNY 8.028 billion, up 13.22% year on year.
A. Main operations and results in the reporting period
a. Implementing marketing strategy and steadily enhancing market share and market competitiveness
The market expansion efforts yielded more results. The parallel progress of key projects such as
the "Highland Strategy", "East China Strategy" and "Northwest China Strategy" further activated the
market. The marketing model was updated. The consumer operation system was continuously
improved, with the targeted deployment of new models and modes across all regions and major cities
nationwide. Additionally, the market operation led to increasing traffic. Core business scenario
templates were constantly developed, scenario codes were widely promoted, and whole-chain digital
marketing through scanning codes was deepened, all contributing to the growth of consumer data
assets.
b. Elaborating brand culture and continuously recovering the value of Luzhou Laojiao as a famous
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
baijiu brand
The cultural connotations continued to deepen. The "Chinese Strong Aromatic Baijiu for 700
Years" exhibition officially opened, showcasing the rich heritage of strong aromatic baijiu through
authentic historical photos, documents and physical materials that span 700 years. Fruitful
achievements were made in cultural heritage protection, culminating in the successful recognition as
the "Origin of Chinese Strong Aromatic Baijiu". Cultural projects progressed smoothly. The Strong
Aromatic Baijiu Experience and Marketing Centre and other projects were advanced in an orderly
manner. Brand building continued to gain momentum. Characteristic cultural IP events such as
"Baijiu Seal-off Ceremony" and "Cellar Owner Festival" were carried out. Collaboration with popular
sports events such as the Australian Open and the International Table Tennis Federation World Cup
reached new heights. By carrying out a global cultural tour, the Company interpreted the spiritual
connotation of "letting the world taste the Chinese flavour". Luzhou Laojiao's brand was selected for
the 2024 "China's 500 Most Valuable Brands".
c. Focusing on allocating elements of scientific research with a new boom in innovation
Scientific activities were conducted in an orderly manner. Luzhou Laojiao successfully organised
the Technology and Talent Work Conference and activities such as the "Academicians' Lecture" and
"Technology Empowerment in Local Regions", further enhancing technological innovation in brand
marketing. Technology management was deepened continuously. In collaboration with Tsinghua
University, Sichuan University, and other universities, the Company advanced the management and
operation of scientific research platforms. Moreover, procedures for the initiation, modifications and
acceptance of scientific and technological projects were streamlined and then relevant projects were
launched. Scientific and technological innovation made fruitful achievements. In the first half of
2024, the Company participated in the formulation or revision of four national standards, two industry
standards and eight association standards. It applied for 56 patents and was granted 23 patents. In
addition, it submitted applications for 11 projects to governments at all levels and associations and
was recognised as one of the first batch of chain masters for iconic product manufacturing in Sichuan
Province.
d. Consolidating the basis for quality guarantees and continuously improving production quality and
efficiency
The capacity guarantee gained new momentum. The Company consistently improved the
utilisation rate of brewing resources and production efficiency. It continuously promoted the
construction of the Luzhou Laojiao Technical Upgrade Project of Intelligent Brewing and gradually
refined the leaven making MES system of the Huangyi Brewery Eco-Park, thereby accelerating the
production empowered by digitisation and intelligence. Quality control was constantly perfected.
The Company carried out external audits on quality, food safety, environmental and measurement
management systems, with a 100% pass rate. It participated in drafting and revising over 16
standards at all levels including national and industrial standards. Supply chain management was
precise and efficient. The Luzhou Laojiao Intelligent Packaging Centre has officially started
operations, establishing the industry's first "Lighthouse Factory" with the fastest filling speed, the
strictest quality testing, the highest level of automation, the highest degree of digitisation, and the
most independent technological innovations.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
e. Fulfilling social responsibilities and fostering a green ecosystem
Pairing assistance was carried out to promote rural revitalisation. The Company actively
promoted assistance projects, including rural infrastructure building, industrial assistance and
agricultural assistance projects. Social welfare was continuously advanced. The Company
continuously carried out donation projects for education such as "Little Schoolbag, Big Love", "Pillars
Project", "Luzhou Laojiao Scholarship", and "Luzhou Laojiao Teacher's Pointer". It was also
recognised as one of the Top Ten Public Welfare Enterprises in Sichuan Province. Green, low
carbon and sustainable development was promoted. Environmental protection procedures were
processed dynamically, achieving resource recovery and utilisation, while the Company's clean
production standards continued to improve. Both English and Chinese versions of the 2023 ESG
report have been prepared and published, demonstrating a commitment to fulfilling information
disclosure responsibilities.
B. Priorities in the second half of the year
a. Strengthening marketing and advancing digital marketing
The Company will continuously expand its market layout. It will comprehensively advance the
effective implementation of the "Hundred Cities Programme" and fully integrate internal resources.
Additionally, it will initiate a "Market Exploration Project" in base markets to further tap into existing
resources and expand new opportunities. The digital marketing strategy will be deepened. The
Company continued to foster digital marketing and enhance retail system development, thereby
driving the refined operation of whole-chain digital marketing through scanning codes.
b. Deepening cultural empowerment and implementing brand initiatives
Luzhou Laojiao's corporate culture in the new era will be streamlined and summarised. The
Company will advance the implementation of the project for establishing Luzhou Laojiao's corporate
culture system in this new era. Additionally, it will accelerate the development of Luzhou Laojiao's
knowledge system and enhance brand communication while ensuring the extension of premium
courses. Brand culture promotion activities were coordinated and advanced. The "Mobile
Museum" will be launched for a national tour to widely disseminate the core cultural assets of 700
years of strong aromatic baijiu. The "International Festival of Poetry & Liquor" will be organised as a
signature brand event to inspire cultural confidence among the public. Additionally, the Company will
leverage the Paris Olympics Games for sports marketing to continuously enhance the prominence
and value of the Luzhou Laojiao's brand.
c. Providing digital support to promote intelligent production
Raw grain planting will be guaranteed. The Company will continue to optimise the intelligent
recycling of organic sorghum and complete the acceptance inspection of the second phase of the
data monitoring platform for red sorghum demonstration sites. Achievement transformation will be
sped up. The Company will continue to leverage its advantages in platforms such as the National
Engineering and Technology Centre of Solid-State Brewing and the Sichuan Innovation Centre for
Solid-state Brewing Technologies and deepen the industry-university-research integration to
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
consistently strengthen the transformation and application of technological research achievements.
Intelligent brewing will be promoted. The Company will advance the construction of the second
phase of the leaven making MES system of the Huangyi Brewery Eco-Park, further optimising system
functions and expanding its coverage.
d. Unleashing talent efficiency and building two paradises
A talent team will be built. The Company will implement training programmes to empower
employees at different positions and different levels based on the "6+1" core competency model. The
promotion mechanism will be perfected. In accordance with the Company's talent development
plan and the new promotion system, talent reviews will continue. The incentive system will be
refined as well. The Company will adhere to the principles of positive incentives, benefit sharing, as
well as equal rights, responsibilities, and interests, further establishing a comprehensive medium- and
long-term incentive mechanism.
e. Accelerating digital and intelligent empowerment and strengthening coordinated management
A digital and intelligent empowerment platform will be set up. The Company will collaborate in
advancing the platform construction platform into the business development phase, continuing to
improve collaboration efficiency. It will build the "Luzhou Laojiao Employees", an intelligent labour
union platform to provide smart services for employees, ensuring effective support through digital and
intelligent linkage. Additionally, efforts will be made to strengthen the acceptance of the national-level
demonstration digital archive and update the knowledge management platform's course resources,
gradually improving the online knowledge-sharing system. Digital and intelligent talent cultiv ation
will be strengthened. The Company will nurture employees' overall digital and intelligent capabilities,
and introduce business cadres with relevant thoughts and technologies, thereby building a pluralistic
talent team across multiple industries.
Brand operation
The Company has always insisted on the strategy of "dual brands, three product series, and major
single products": The National Cellar 1573 series has been one of the three high-end baijiu products
in China; Luzhou Laojiao's brand rejuvenation plan saw remarkable results, and the product series
showed a good momentum of development; innovative products such as Health and Chinese-style
fruit baijiu continued to be cultivated, and have become the driving force for the Company's young,
fashionable, healthy and international development.
Main sales models:
Currently, the Company has two main sales models:
1. Traditional channel operation model: It is mainly authorized distribution of the offline distributors. The
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.
2. Emerging channel operation model: It is mainly online sales operations. The Company establishes
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
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
1. Main sales models
Unit: CNY
YoY YoY
Gross YoY change
change of change of
Operating revenue Cost of sales profit of operating
cost of gross profit
margin revenue
sales margin
By sales model
Traditional channel
operation model 16,107,925,666.93 1,757,681,281.88 89.09% 15.38% 17.29% -0.18%
Emerging channel
operation model 730,665,689.05 153,426,303.77 79.00% 32.83% -10.47% 10.15%
2. Distributors
Unit: Number
Number of Increased Decreased
YoY change of Reason for any
distributors at the number during number during
Region number of significant
end of the the reporting the reporting
distributors (%) change
reporting period period period
Domestic 1769 133 74 4.00
Overseas 92 5 17 -17.12
3. Main settlement method for distributors and distribution method
The Company's main settlement method for distributors is payment before delivery. The distribution
method is authorized distribution.
4. Top five distributors
Total sales to top five customers（CNY） 11,374,130,188.05
Total sales to top five customers as % of the total sales 67.28%
Total sales to related parties among top five customers as % of the total
0.00%
sales
The Company had no accounts receivable from the top five distributors at the end of the period.
5. Information on top five distributors
As % of the total
No. Customer Sales amount (CNY) sales for the
reporting period
1 Customer A 8,407,053,834.92 49.73%
2 Customer B 1,309,667,685.41 7.75%
3 Customer C 709,640,005.55 4.20%
4 Customer D 540,647,931.43 3.20%
5 Customer E 407,120,730.74 2.40%
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Total -- 11,374,130,188.05 67.28%
Store sales terminals accounted for more than 10%
□ Applicable N/A
Online direct sales
Applicable □N/A
For the main sales models of the Company, please refer to the contents under the heading “Distribution
models” in “1. Business scope in the reporting period” of Section III. For the sales of the Company's
main products, please refer to the contents under the heading "Business segment, products or
geographical segments contributing over 10% of the operating revenues or profits" in “3. Analysis of
main business” of Section III. The Company's main products are sold online. Its main cooperation
platforms include JD.com and Tmall.
Sales price of main products contributing over 10% of the total operating revenues for the current
period changed by more than 30% from the previous reporting period
□ Applicable N/A
Purchase model and purchase content
Unit: CNY
Purchase model Purchase content Amount of main purchase content
Organic raw grains are purchased
through cooperative model and
supplied by organic raw grain bases;
Raw materials 1,870,959,004.54
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 93,989,156.96
price bureau, and purchase through
bid invitation
Purchase through bid invitation Low-value consumables 31,909,484.51
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
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Main breakdown items of cost of sales
Unit: CNY
H1 2024 H1 2023
By business
Item As % of cost of As % of cost of YoY Change
segment Amount Amount
sales sales
Baijiu Raw materials 1,488,095,661.17 77.87% 1,411,571,489.11 84.52% 5.42%
Baijiu Labor costs 134,431,299.24 7.03% 117,395,758.18 7.03% 14.51%
Manufacturing
Baijiu 288,580,625.24 15.10% 141,044,031.51 8.45% 104.60%1
overhead
Note 1: The increase in manufacturing overhead is mainly because the construction in progress—the
intelligent packaging centre—was completed and gradually put into operation, among others.
Production volume and inventory
1. Production volume, sales volume and inventory of main products
YoY change YoY change
Production
Product Sales volume Inventory of production of sales YoY change Description of
volume
classification (ton) (ton) volume volume of inventory major changes
(ton)
(%) (%)
Mid- and high-
17,109.24 21,282.50 32,378.29 5.89% 25.71% -23.10%
end baijiu
The YoY decrease
of 43.30% in
inventory is mainly
Other baijiu 27,036.82 26,632.98 6,103.16 5.81% 0.56% -43.30% due to a lower
inventory base at
the beginning of
the period.
2. Inventory at the end of the reporting period
Unit: Ton
Finished baijiu Semi-finished baijiu (including base baijiu)
38,481.45 450,196.72
3. Capacity
Unit: Ton
Main products Design capacity Actual capacity Capacity in progress
Baijiu 170000 170000 80000
2. Analysis of core competitiveness
A. Geographical advantage
Luzhou City, where the Company is located, sits in the transitional area between the southern rim of the
Sichuan Basin and the Yunnan-Guizhou Plateau, featuring a warmer and more humid sub-tropical
climate compared to other areas at the same latitude, with a temperature above 0℃ throughout the
year. The unique climate and soil are agreeable to grow grains for baijiu brewing. The glutinous red
sorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.
The cellars in which the Company brews its baijiu are made of the local loessal clay characterized by
strong viscosity, rich minerals and excellent moisture retention. In addition, the abundant and quality
water in the region creates a unique geographical advantage for the production of the Company’s baijiu.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
B. Advantage of cellars and brewing technique
Aged cellars are the most essential condition for a strong aromatic baijiu maker to produce good quality
baijiu. The Cellars of National Treasure 1573, founded in 1573, was granted by the State Council as the
first Cultural Relic of National Importance in the industry under the Protection of the State in December
1996. 1,619 cellars of Luzhou Laojiao which have been continuously used for over 100 years, together
with its 16 ancient brewing workshops and three natural cellar holes, were all selected as the fourth
batch of Cultural Relics of National Importance under the Protection of the State in 2013. They are
unique resources that cannot be replicated. In both 2006 and 2012, Luzhou Laojiao Daqu Cellars were
twice selected into the preliminary list of China for World Heritage. In November 2018, Luzhou Laojiao
Cellars and Brewing Workshops were selected into China’s Industrial Heritage List. The time-honored
Traditional Brewing Technique of Luzhou Laojiao is a 24-generation inheritance and a classic brewing
technique for strong aromatic baijiu. This technique was selected as the first batch of National
Intangible Cultural Heritage in May 2006. The Cellars of National Treasure 1573 and the Traditional
Brewing Technique of Luzhou Laojiao together provide the most essential basis and assurance for the
quality of the product series of National Cellar 1573 and Luzhou Laojiao. Additionally, Huangyi Brewery
Eco-Park has moved into full production in late 2020. Upholding the cultural connotations of
“inheritance of ancient ways, pure-grain brewing, traditional techniques, and intelligent technologies”,
the Company carried out brewing technical renovation featuring automatic, intelligent and information
technology-based transformation. As such, it has established a baijiu brewery eco-park comprising
brewing workshops, leaven making workshops, and base baijiu storage cellars, along with energy and
sewage treatment facilities. This brewery eco-park brings with it new production capacities of 100,000
tons of quality pure-grain solid baijiu and 100,000 tons of leaven in addition to a new storage capacity of
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
1573 and revive the brand of Luzhou Laojiao have produced remarkable results, with significant
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
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Center of Solid-State Brewing, National Liquor Test Center, National Postdoctoral Workstation, etc,
which all support the innovation and upgrading of products with their strong technical force. In recent
years, the Company has put in a lot of efforts in researching Tequ production, brewing informatization &
automation. Relying on the technological innovation platforms such as the National Industrial Design
Center, and continuously deepening the cooperation with universities and scientific research institutes
including the Chinese Academy of Sciences and the Jiangnan University, the Company has undertaken
dozens of national- or provincial-level projects and has been granted hundreds of invention or utility
model patents. And remarkable results have been achieved with respect to improvement of the quality
of base Baijiu, as well as production efficiency improvement.
E. Talent advantage
The Company has 1 inheritor of national intangible cultural heritage, 4 masters of Chinese brewing, 2
masters of Chinese baijiu, 2 Chinese liquor connoisseurs, 1 master of Chinese baijiu technique, 13
senior professor engineers, 8 experts who receive special allowances from the State Council, 4 national
technicians, 2 national model workers, 4 national Labor Day Medal winners, 4 academic and
technologic leaders of Sichuan province, 1 expert with outstanding contribution in Sichuan province, 1
innovation leader of Tianfu, 1 excellent engineer of Tianfu, 1 skills leader of Tianfu, 3 craftsmen of
Tianfu, 5 craftsmen of Sichuan province, 1 technological elite of Tianfu, 2 young science and
technology talents of Tianfu, 4 technicians of Sichuan province, as well as hundreds of highly skilled
personnel including national baijiu judges, senior brewing technicians and brewing technicians. The
comprehensive and professional personnel system assures the sound development of the Company.
3. Analysis of main business
Overview
See contents under the heading “1. Business scope in the reporting period” above.
Year-on-year changes in key financial data
Unit：CNY
Reason for any
H1 2024 H1 2023 YoY Change
significant change
Operating revenues 16,904,885,169.38 14,593,051,774.14 15.84%
Cost of sales 1,932,074,493.16 1,700,263,105.68 13.63%
Selling and
1,630,293,023.67 1,463,196,830.61 11.42%
distribution expenses
General and
administrative 504,694,175.31 539,879,241.31 -6.52%
expenses
Finance expenses -124,274,752.55 -125,783,791.43
Corporate income
2,870,561,488.56 2,385,359,516.12 20.34%
tax
R&D investments 90,633,563.25 85,012,075.06 6.61%
Net cash flows from 8,225,060,212.57 5,647,760,797.04 45.63% Mainly due to the
18
2024 Interim Report of Luzhou Laojiao Co., Ltd.
operating activities increased cash
received from sale of
goods in the current
period
Mainly due to the
increased net cash
flows from the
purchase and
redemption of wealth
Net cash flows from
1,108,797,050.00 732,254,553.22 51.42% management
investing activities
products (collective
asset management
plans) from securities
firms in the current
period
Mainly due to the
receipt of less bank
Net cash flows from loan in the current
762,591,987.93 6,194,950,118.71 -87.69%
financing activities period compared to
the same period of
last year
Net increase in cash
10,102,021,240.69 12,582,529,016.13 -19.71%
and cash equivalents
Significant changes to the profit structure or sources of the Company in the reporting period
Applicable N/A
No such changes in the reporting period.
Breakdown of operating revenues
Unit：CNY
H1 2024 H1 2023
As % of As % of YoY Change
Amount operating Amount operating
revenues revenues
Total 16,904,885,169.38 100% 14,593,051,774.14 100% 15.84%
By business segment
Baijiu 16,838,591,355.98 99.61% 14,510,984,638.41 99.44% 16.04%
Other revenues 66,293,813.40 0.39% 82,067,135.73 0.56% -19.22%
By product
Mid- and high-
15,213,367,295.49 89.99% 12,990,085,081.50 89.02% 17.12%
end baijiu
Other baijiu 1,625,224,060.49 9.61% 1,520,899,556.91 10.42% 6.86%
Other revenues 66,293,813.40 0.40% 82,067,135.73 0.56% -19.22%
By geographical segment
Domestic 16,811,257,242.24 99.45% 14,516,179,307.86 99.47% 15.81%
Overseas 93,627,927.14 0.55% 76,872,466.28 0.53% 21.80%
Business segment, products or geographical segments contributing over 10% of the operating
revenues or profits
Applicable N/A
19
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Unit：CNY
YoY YoY
Gross YoY change
change of change of
Operating revenue Cost of sales profit of gross profit
operating cost of
margin margin
revenue sales
By business segment
Baijiu 16,838,591,355.98 1,911,107,585.65 88.65% 16.04% 14.44% 0.16%
By product
Mid- and high-
15,213,367,295.49 1,177,762,665.64 92.26% 17.12% 20.68% -0.23%
end baijiu
Other baijiu 1,625,224,060.49 733,344,920.01 54.88% 6.86% 5.66% 0.52%
By geographical segment
Domestic 16,811,257,242.24 1,918,659,642.15 88.59% 15.81% 13.66% 0.22%
Under the circumstances that the statistical standards for the Company’s main business data were
adjusted in the reporting period, the Company’s main business data in the current period is calculated
based on adjusted statistical standards at the end of the reporting period
Applicable N/A
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Sel f-regulation of
Listed Companies—Industry-specific Information Disclosure.
A. Breakdown of selling and distribution expenses
Unit：CNY
Selling and
Reason for any significant
distribution H1 2024 H1 2023 YoY Change
change
expenses
Increased advertising and
Advertising
771,086,934.79 585,741,219.56 31.64% promotional inputs in the
expenses
current period
Sales promotion
465,935,051.00 486,391,918.30 -4.21%
expenses
Warehousing
and logistics 81,048,424.07 95,488,340.44 -15.12%
expenses
Labor costs 212,055,575.40 210,781,737.74 0.60%
Other 100,167,038.41 84,793,614.57 18.13%
B. Breakdown of advertising expenses
Unit：CNY
Advertising Expenses
Online advertising (exclusive of TV advertising) 127,923,890.82
Offline advertising 159,231,959.64
20
2024 Interim Report of Luzhou Laojiao Co., Ltd.
TV advertising 215,309,906.78
Other (inclusive of branding ideas, exhibitions &
showcases, advertising materials, activity planning, 268,621,177.55
etc.)
4. Analysis of non-core business
Applicable N/A
5. Assets and liabilities
5.1. Significant change of asset items
Unit：CNY
30 June 2024 31 December 2023 Explanation
Change in
As % of total As % of total about any
Amount Amount percentage
assets assets material change
Cash and cash
36,100,758,789.69 51.40% 25,952,025,091.28 41.00% 10.40%
equivalents
Accounts
4,069,325.61 0.01% 17,461,378.98 0.03% -0.02%
receivable
Inventories 12,354,323,751.59 17.59% 11,622,043,947.46 18.36% -0.77%
Investment
44,397,290.42 0.06% 37,785,416.77 0.06% 0.00%
property
Long-term equity
2,727,584,618.05 3.88% 2,708,254,833.50 4.28% -0.40%
investments
Fixed assets 9,595,197,848.09 13.66% 8,613,223,465.46 13.61% 0.05%
Construction in
561,121,727.91 0.80% 1,718,468,880.53 2.72% -1.92%
progress
Right-of-use
32,187,976.28 0.05% 23,260,955.23 0.04% 0.01%
assets
Contract
2,341,708,292.72 3.33% 2,672,977,090.30 4.22% -0.89%
liabilities
Long-term loans 10,990,000,000.00 15.65% 10,000,300,000.00 15.80% -0.15%
Lease liabilities 28,420,897.97 0.04% 22,356,404.47 0.04% 0.00%
5.2. Main assets overseas
Applicable N/A
5.3. Assets and liabilities measured at fair value
Applicable □ N/A
Unit：CNY
21
2024 Interim Report of Luzhou Laojiao Co., Ltd.
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
1.Held-for-
trading
financial
assets 1,426,992,0 33,247,170. 660,000,000 2,120,238,5
697.84
(exclusive of 98.83 87 .00 71.86
derivative
financial
assets)
4.Investmen
ts in other 402,893,468 79,093,988. 335,372,892
equity .80 67 .95
instruments
6. Accounts -
5,938,171,0 4,088,985,5
receivables 1,849,185,4
07.93 16.61
financing 91.32
Subtotal of -
7,768,056,5 33,247,170. 79,093,988. 660,000,000 2,120,238,5 4,424,359,1
financial 0.00 1,849,185,4
75.56 87 67 .00 71.86 07.40
assets 91.32
-
7,768,056,5 33,247,170. 79,093,988. 660,000,000 2,120,238,5 4,424,359,1
Total 0.00 1,849,185,4
75.56 87 67 .00 71.86 07.40
91.32
Financial
9,763.87 -9,796.97 33.10 0.00
liability
Information about other changes
N/A
Whether measurement attribution of main assets changes significantly in the reporting period
Yes No
5.4. Restricted asset rights as of the end of this reporting period
Unit：CNY
Item Closing Balance Reason
Bank deposits 94,715,340.26 Accrued interest on term deposits
Other cash and cash equivalents 10,000,000.00 Bank guarantees
Other cash and cash equivalents 992,930.88 Security deposits at e-commerce platforms
Total 105,708,271.14
22
2024 Interim Report of Luzhou Laojiao Co., Ltd.
6. Investment
6.1. Total investment
Applicable N/A
Investment made in the Investment made in the same
YoY change
reporting period (CNY) period of last year (CNY)
921,132,282.20 686,415,706.04 34.19%1
Note 1: The 34.19% increase in the investment made in the reporting period compared with the same
period of last year is mainly due to the purchase of a larger amount of wealth management product
(collective asset management plan product) from securities firm in the current period.
6.2. Significant equity investment made in the reporting period
Applicable N/A
6.3. Significant ongoing non-equity investment in the reporting period
Applicable N/A
Unit: CNY
Accum
Accum Reason
ulated
ulated s for
actual
Whethe Amount actual not Date
Industr input
r it is a of input income meetin of
Investm y of the amount Project Project Disclosur
fixed in the Capital by the g the discl
Item ent investm by the progres ed e index (if
asset reportin source end of schedul osure
form ent end of s income any)
investm g the e and (if
project the
ent period reportin project any)
reportin
g ed
g
period income
period
Announc
ement
Luzhou
No. 2022-
Laojiao
24 on the
Technic
Implemen
al
tation of
Upgrad
Luzhou
e
108,11 896,97 Self- 13 Laojiao
Project Self-
Yes Baijiu 8,805.9 4,812.8 financin 25.00% 0.00 0.00 N/A July Technical
of built
9 0 g 2022 Upgrade
Intellige
Project of
nt
Intelligent
Brewin
Brewing
g
(Phase I)
(Phase
by
I)
Subsidiar
y on
23
2024 Interim Report of Luzhou Laojiao Co., Ltd.
http://ww
w.cninfo.c
om.cn/
108,11 896,97
Total -- -- -- 8,805.9 4,812.8 -- -- 0.00 0.00 -- -- --
9 0
6.4. Financial assets investment
6.4.1. Securities investment
Applicable □ N/A
Unit: CNY
Chang
Chang es in Profit
es in the and
Abbre Accou Beginn
Categ Initial fair cumul Amou loss Closin
viation nting ing Amou Accou
ory of Stock invest value ative nt of during g book Capital
of measu book nt of nting
securit code ment recogn fair purcha the balanc source
securit rement balanc sale item
ies cost ized in value se reporti e
ies model e
profit record ng
or loss ed into period
equity
Invest
Dome ments
Fair
stic 12,719 175,24 146,85 159,57 in
60121 value 4,710, Own
and GTJA ,156.7 1,715. 9,152. 0.00 0.00 8,309. other
1 measu 798.80 fund
foreign 6 34 57 33 equity
rement
stock instru
ments
Invest
Dome ments
Fair
stic 12,805 12,119 13,149 in
00224 1,030, value 78,177 Own
and SNC ,515.4 ,497.5 0.00 0.00 ,497.5 other
6 000.00 measu .75 fund
foreign 4 4 4 equity
rement
stock instru
ments
Invest
Dome ments
Fair
stic 51,120 96,733 24,917 76,037 in
LZBA value 3,905, Own
and 01983 ,000.0 ,837.6 ,780.2 0.00 0.00 ,780.2 other
NK measu 280.00 fund
foreign 0 9 9 9 equity
rement
stock instru
ments
Invest
Dome ments
Fair -
stic CTG 542,28 84,854 53,349 in
value 97,849 2,015, Own
and 01880 Duty- 5,380. ,489.6 0.00 0.00 ,395.1 other
measu ,300.1 648.45 fund
foreign Free 80 8 4 equity
rement 4
stock instru
ments
607,15 369,63 86,047 10,709 302,11
Total -- 0.00 0.00 0.00 -- --
4,537. 5,558. ,130.2 ,905.0 4,982.
24
2024 Interim Report of Luzhou Laojiao Co., Ltd.
56 15 6 0 30
6.4.2. Derivative investment
Applicable □ N/A
A. Derivatives investments for hedging purposes in the reporting period
Applicable □ N/A
Unit: CNY 10,000
Gain or loss Closing
Cumulative
on change Purchased amount
Initial fair value Sold in the
Type of Opening in fair value in the Closing as % of the
investment change current
derivative amount during the current amount Company’s
amount recorded in period
current period closing
equity
period equity
Forward
forex sale
and 0 0 -1.74 0 0 0 0 0.00%
settlement
contract
Total 0 0 -1.74 0 0 0 0 0.00%
Explanation
of significant
changes in
accounting
policies and
specific
financial In accordance with the relevant provisions and guidelines of the Accounting Standards for Business Enterprises No. 22 -
accounting Recognition and Measurement of Financial Instruments and the Accounting Standards for Business Enterprises No. 37 -
principles in Presentation of Financial Instruments issued by the Ministry of Finance, the Company took the relevant accounting measures
respect of for its business of derivative transactions to reflect the relevant items in the balance sheet and the income statement. The
the Company did not meet the applicable conditions of the Accounting Standards for Business Enterprises No. 24 - Hedge
Company's Accounting and did not yet apply hedge accounting.
hedges for
the reporting
period as
compared to
the prior
period
Actual
In accordance with the Accounting Standard for Business Enterprises No. 37 - Presentation of Financial Instruments, changes
gain/loss in
in fair value were included in the profit and loss for the current period, and a loss of CNY 17.4 thousand was valued at fair
the reporting
value during the holding period.
period
The forward foreign exchange settlement and sales business engaged in by the Company was based on specific business
Results of
operations and the Company's production and operation, hedging product price and exchange fluctuation risks, achieving
hedges
expected risk management goals, and playing a positive role in stabilizing production and operation.
Source of
derivatives
Own fund
investment
funds
25
2024 Interim Report of Luzhou Laojiao Co., Ltd.
The financial derivatives business conducted both domestically and internationally had a real business background. The
Company will strictly control the types and sizes of financial derivatives business, choose foreign exchange hedging products
with simple structures as much as possible, and do not engage in complex financial derivatives business beyond the actual
Risk needs of operation. The purpose is only to lock in risk exposure, and match with actual foreign exchange receipts and
analysis of disbursements. The Company will not engage in any form or substance of speculative transactions. The term of the
positions purchased foreign exchange hedging products should be as close to or equal to the term of the Company's foreign exchange
held in risk exposure as possible, and should not exceed the term of the foreign exchange risk exposure. The Company will only
derivatives engage in foreign exchange hedging transactions with financial institutions with corresponding business qualifications
during the approved by the State Administration of Foreign Exchange (SAFE) and the People's Bank of China. The Company will strictly
reporting control the size of foreign exchange forward contracts. In order to meet the needs of normal production and operation, it is
period and expected that the cumulative foreign exchange hedging business carried out by the Company and its holding subsidiaries will
explanation not exceed the equivalent of CNY 500 million. The above limit can be used in a rolling and circular manner. The Company will
of control pay close attention to changes in the international and domestic market condition, strengthen its research and analysis of
measures exchange rates, regularly review and adjust foreign exchange hedging plans in response to market and business changes,
(including and avoid exchange losses to the greatest extent possible. If there is a partial deviation between the actual business amount
but not and term and the expected income and expenditure plan due to changes in the business of transaction enterprises, it will not
limited to pose a substantial delivery risk to the hedging transaction. Transaction enterprises will strengthen the management of
market risk, accounts receivable, closely track customer payments, actively collect payments, reduce risks of customer default and
liquidity risk, contract breaching, and control the risks that the Company may face within an acceptable range. The Company has
credit risk, formulated the Foreign Exchange Hedging Business Management System, which clearly stipulates the management
operational organisation, approval authority, operation procedures, risk control, information disclosure, information confidentiality of the
risk, legal Company's foreign exchange hedging business, effectively regulating and controlling the behaviour and risks of foreign
risk, etc.) exchange hedging business. Transaction enterprises will regularly organise professional training for personnel involved in
financial derivatives business, enable them to fully understand the characteristics and risks of financial derivatives trading,
continuously strengthen the professional ethics education and professional literacy of relevant personnel, and improve their
business level.
Changes in
market
prices or fair
value of
derivative
products
during the
reporting
period,
specific Forward foreign exchange settlement and sales products are featured by high market transparency and active transactions,
methods and transaction prices and settlement prices of that day can fully reflect the fair value of derivatives; the losses from changes
used and in fair value during the reporting period was CNY 17.4 thousand, determined based on the market price of the exchange at
relevant the end of the period.
assumption
and
parameter
settings
shall be
disclosed for
analysis of
fair value of
derivatives
Litigation
involved (if N/A
applicable)
Disclosure
date of the
announcem
13 June 2023
ent about
the board’s
consent for
26
2024 Interim Report of Luzhou Laojiao Co., Ltd.
the
derivative
investment
(if any)
B. Derivatives investments for speculative purposes in the reporting period
□Applicable N/A
No such cases in the reporting period
6.5. Use of funds raised
Applicable N/A
6.5.1. General use of funds raised
Applicable □ N/A
Unit：CNY 10,000
Total Accumul
Total Total
amount ated re- Purpose Amount
amount Accumul amount Total
of re- purpose and of funds
Total of raised ated of amount
Net purpose d funds direction raised
amount funds amount accumul of
Year Method proceed d funds raised of idle for
of funds used in of raised ated re- unused
s raised in as % of unused more
raised the funds purpose funds
the total funds than two
reportin used d funds raised
reportin funds raised years
g period raised
g period raised
Deposit
Public ed in
offering special
118,007.
2022 of 150,000 149,400 6,971.73 0 0 0.00% 39,536.2 account 0
27
corporat for
e bond raised
funds
118,007.
Total -- 150,000 149,400 6,971.73 0 0 0.00% 39,536.2 -- 0
27
Notes for general use of funds raised
The total amount of unused funds raised of the corporate bond “20 Laojiao 01” includes interest on some funds raised.
6.5.2. Fund raised for committed projects
Applicable □ N/A
Unit：CNY 10,000
Adjusted
Committe Whether Total Investme Investme Accumula Investme Date of Realized Whether Whether
27
2024 Interim Report of Luzhou Laojiao Co., Ltd.
d the amount nt total nt ted input nt the benefits the the
amount
investme project of funds amount in by the progress projects during expected feasibility
(1)
nt has been raised for the end of by the reach the the benefits of the
projects changed committe reporting the end of working reporting have project
and (including d period reporting reporting condition period been has
direction partial investme period (2) period (3) for their achieved changed
of over- change) nt ＝(2)/(1) intended significan
raised use tly
funds
Committed investment projects
Technical
Renovati
on 336,469. 30 June
No 6,971.73 Yes No
Project of 59 2021
Brewing
(Phase II)
Project of
Intelligent
Upgradin
g and
Building
17,595.9
of the No 0 N/A N/A No
7
Informati
on
Manage
ment
System
Project of
Acquiring
398,400 398,400 93.14% N/A
Sealing
Equipme
30 June
nt for the No 0 12,043.3 Yes No
2021
Cellar of
Huangyi
Brewing
Base
Project of
Acquiring
Accessor
y
Equipme
nt for 30 June
No 0 4,980.25 Yes No
Leaven 2021
Making
for
Huangyi
Brewing
Base
Subtotal
of
committe
371,089.
d -- 398,4001 398,400 6,971.73 -- -- N/A -- --
11
investme
nt
projects
Use of over-raised funds
28
2024 Interim Report of Luzhou Laojiao Co., Ltd.
None
371,089.
Total -- 398,400 398,400 6,971.73 -- -- N/A -- --
11
Explain
project by
project
the
situation
and
reason
for not
reaching
plan
progress
or
expected
benefits N/A
(including
reason
for
inputting
“N/A” for
“Whether
the
expected
benefits
have
been
achieved”
)
Significan
t changes
N/A
of project
feasibility
Amount,
purpose
and
progress N/A
of over-
raised
funds
Change
of
implemen
tation site
N/A
of
investme
nt
projects
Adjustme
nt of the
implemen
tation N/A
mode of
raised
funds
29
2024 Interim Report of Luzhou Laojiao Co., Ltd.
investme
nt
projects
Applicable
Situation On 14 May 2019, the Company held the First Extraordinary General Meeting of Shareholders of 2019, which considered and
of approved the Proposal on Requesting the Company’s General Meeting of Shareholders to Fully Authorize Chairman of the
advance Board or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond.
investme According to the Proposal, in the event of inconsistency between the payment of the raised funds and the progress of the proj ect
nt and implementation, the Company may make advance investments using other funds (including self-owned funds, bank project
replacem loans, etc.) according to the actual situation, and replace fund investment other than capital funds when the raised funds are in
ent place. As of 31 December 2023, 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
temporar N/A
y
suppleme
ntary
liquidity
Amount
and
reason
for N/A
surplus of
funds
raised
Purpose
and
The idle raised funds are deposited in the special account No. 9550880046723000135 for raised funds in the Chengdu Branch
whereabo
of China Guangfa Bank Co., Ltd., the special account No. 517517460013000000860 for raised funds in the Luzhou Branch of
uts of
Bank of Communications Co., Ltd., and the special account No. 631395395 for raised funds in the Chengdu Branch of China
unused
Minsheng Banking Corp., Ltd.
funds
raised
Problems
and other
situation
when
N/A
raised
funds are
used and
disclosed
Note 1: The subtotal of funds raised for committed projects was CNY 3,984 million, which was the
combined amount of CNY 4,000 million (CNY 2,500 million of corporate bonds issued in August 2019
plus CNY 1,500 million of corporate bonds issued in March 2020) minus the total issuance costs of
CNY 16 million.
Note 2: Because there are uncertainties in the approval and issue time for bond, in order to ensure
smooth progress of the projects and protect the interests of the Company’s shareholders, the
investment sequence and specific amounts of the corresponding raised funds should be determined
30
2024 Interim Report of Luzhou Laojiao Co., Ltd.
by the Chairman of the Board as authorized by the general meeting of shareholders or other persons
as authorized by the Board of Directors within the scope of the four raised funds investment projects
according to the actual needs, provided that the capital funds for each project is no less than 20% of
the total investment.
Note 3: As of 30 June 2024, 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.
6.5.3. Re-purposed funds raised
Applicable N/A
No such cases in the reporting period
7. Sale of major assets and equity interests
7.1. Sale of major assets
Applicable N/A
No such cases in the reporting period.
7.2. Sale of major equity interests
Applicable N/A
8. Analysis of major subsidiaries
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
Luzhou
baijiu
Laojiao 100,000,0 12,552,85 8,257,726, 16,146,21 7,709,621, 5,752,203,
Subsidiary series
Sales Co., 00.00 6,796.69 354.15 9,463.95 298.98 635.52
such as
Ltd.
“National
31
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Cellar
1573” and
“Luzhou
Laojiao”
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable N/A
Notes for major holding companies and joint stock companies
There were no major holding companies or joint stock companies during the reporting period of which
information shall be disclosed.
9. Structured entities controlled by the Company
Applicable N/A
10. Risks facing the Company and countermeasures
A. Macroeconomic risk: At present, the economy is in a sluggish recovery, with problems such as
insufficient effective demand, weak social expectations and low consumer confidence still persisting.
Additionally, the complexity, severity, and uncertainty of the external environment are increasing,
which may have an impact on the industry and enterprises. In this regard, the Company will face the
challenges, embrace them, and overcome them during this economic cycle. It will identify
opportunities, seize them, and make the most of them, aiming to establish a scientific, stable, healthy
and rapid development framework that promotes high-quality growth for Luzhou Laojiao.
B. Risk of aggravating industrial competition: In 2024, the baijiu industry has entered a structural
adjustment cycle, with the characteristics of the stagnant era becoming increasingly pronounced. The
trend of the industry concentrating on advantageous production areas, leading enterprises, and
strong brands is becoming more evident. In response, the Company will fully commit to expanding its
scale, continuously enhancing its development momentum, and seizing the three key highlands of
market, brand and quality. It will maintain confidence, take on responsibilities and resolutely make
breakthroughs in 2024.
11. Implementation of the action plan for "Dual Enhancement of
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
32
2024 Interim Report of Luzhou Laojiao Co., Ltd.
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 take 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 30.17%, and in the first half of 2024, operating revenue amounted to CNY 16.905 billion, up
15.84% year on year; the net profit attributable to the parent company reached CNY 8.028 billion, up
13.22% year on year; and various performance indicators reached a new historical high. Moving
forward, the Company will continue to implement the development theme of "proceeding with
confidence, overcoming challenges, innovating, and collaborating", and strive for a comprehensive
victory in the key battle of the 14th Five-Year Plan, with a focus on the overall working idea of "aiming at
one objective, focusing on three cores, and promoting six improvements".
B. Deeply promoting technological innovation and strengthening the transformation of scientific
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
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 Brewing, 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
Brewing 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 659.97 million, and the compound annual growth rate of
innovation R&D investment reached 24.69%. 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 authorisations for invention and utility model patents has maintained a rapid
growth. Up to now, the Company has been granted 554 patents, including 196 invention patents and
358 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 standardised 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 standardised the Company's management system. The Company has also clearly defined the
responsibilities and authorities of the Board of Directors, the Board of Supervisors, general 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
systematisation, standardisation, and digitalisation of corporate governance, synchronously enhanced
the information-based level in the Board of Directors, the Board of Supervisors and general 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
34
2024 Interim Report of Luzhou Laojiao Co., Ltd.
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 general 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 defence
line of insider trading
The Company takes standardised 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 centred
on major information internal reporting system, temporary and periodic report preparation procedure,
insider information management system, and other policy documents, and continuously promoted the
standardised 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. The Company held an online presentation of the 2023 annual results
on 9 May 2024. Mr. Liu Miao, chairman of the board, Mr. Liu Junhai, Mr. Chen You'an, Mr. Lyu Xianpei
and Mr. Li Guowang, non-executive directors, Ms. Xie Hong, CFO, and Mr. Li Yong, deputy general
manager and secretary of the board, attended the presentation and answered the questions of
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.
(The Company's investor relations website has been updated. Investors are welcome to visit
35
2024 Interim Report of Luzhou Laojiao Co., Ltd.
https://000568.iryi.com/).
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 realised for that year, and the profit to be distributed in cash
should not be less than 30% of the distributable profit realised for that year. Since its listing, the
Company has paid out a cumulative cash dividend amount of CNY 43.301 billion, 10.78 times the
amount of equity refinancing, with a dividend payout ratio of 60.93%, 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 the future, the Company will formulate reasonable
profit distribution policies while ensuring normal operation and long-term development, and effectively
allow investors to share the fruits of the Company's growth and development.
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.,
planned to increase its holdings in the Company through call auction trading within six months from 15
December 2023, with a proposed increase amount of no less than CNY 200 million, effectively
maintaining the stability of the capital market and boosting investor confidence. During the period of its
shareholding increase plan, Luzhou Laojiao Group Co., Ltd. increased its holdings in the Company by
1,140,200 shares in total through centralised bidding trading, accounting for 0.08% of the total share
capital of the Company, with a total amount of approximately CNY 200.9629 million. As such, the
implementation of the said shareholding increase plan has been completed.
Moving forward, the Company will focus on the development theme of "proceeding with confidence,
overcoming challenges, innovating, and collaborating", 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.
36
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section IV Corporate Governance
1. Annual and extraordinary general meeting of shareholders
convened during the reporting period
1.1 General meeting of shareholders convened during the reporting period
Investor Date of the Date of Resolution of the
Meeting Type
participation ratio meeting disclosure meeting
Announcement
No.: 2024-36 of
Luzhou Laojiao
Co., Ltd. on
The 2023 Annual Annual General
Resolutions of
General Meeting Meeting of 65.26% 27 June 2024 27 June 2024
the 2023 Annual
of Shareholders Shareholders
General Meeting
of Shareholders
(http://www.cninf
o.com.cn/)
1.2 Extraordinary general meetings of shareholders convened at the request of
preference shareholders with resumed voting rights
Applicable N/A
2. Changes in directors, supervisors, and senior management
Applicable □ N/A
Name Title Type Date Reason
Zhang Suyi Director Elected 27 June 2024
Non-executive
Li Liangchen Elected 27 June 2024
director
Xiong Bo Director Elected 27 June 2024
Zhou Lei Supervisor Elected 27 June 2024
Zhang Li Supervisor Elected 27 June 2024
Director and Deputy
Wang Hongbo Resignation 2 February 2024 Retirement
general manager
Resignation upon the
Non-executive
Liu Junhai expiry of period of 27 June 2024
director
service
Resignation upon the
Gong Zhengying Director expiry of period of 27 June 2024
service
Tang Shijun Supervisor Resignation upon the 27 June 2024
37
2024 Interim Report of Luzhou Laojiao Co., Ltd.
expiry of period of
service
Resignation upon the
Ou Fei Supervisor expiry of period of 27 June 2024
service
3. Profit distribution and converting capital reserves into share capital
for the reporting period
Applicable N/A
The Company has no interim dividend plan, either in the form of cash or stock.
4. Implementation of any equity incentive plan, employee stock
ownership plan or other incentive measures for employees
Applicable N/A
4.1. Equity incentives
A. On 21 February 2022, the Company disclosed the Announcement on the Completion of Registration
of Restricted Share Grant, completed the registration of the first grant of restricted shares. Upon the
registration of the grant, 6,862,600 restricted shares were granted to 437 objects, the grant price was
CNY 92.71 per share and the listing date was 22 February 2022.
B. On 25 July 2022, the Company held the 18th Meeting of the 10th Board of Directors and the Ninth
Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.
C. On 4 August 2022, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
D. On 2 September 2022, the Company held the 22nd Meeting of the 10th Board of Directors and the
13th Meeting of the 10th Board of Supervisors, at which the Proposal on the Repurchase and
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
38
2024 Interim Report of Luzhou Laojiao Co., Ltd.
incentive plan of the Company and the authorization of the First Extraordinary General Meeting of
Shareholders of 2021, the Board of Directors of the Company agreed to adjust the grant price and
repurchase price of the reserved restricted shares under the incentive plan from CNY 92.71 per share
to CNY 89.466 per share in view of the implementation of the Company's profit distribution plan for
2021. The independent directors consented to this matter.
E. On 3 September 2022, the Company disclosed the Announcement on the Repurchase and
Cancellation of Some Restricted Shares to Reduce Registered Capital and Notice to Creditors. By the
expiration of the declaring period, the Company had not received any declaration from the relevant
creditors for early payout of debts or provision of guarantee.
F. On 26 September 2022, the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares, 342,334 restricted shares
were granted to 46 objects, the grant price was CNY 89.466 per share and the listing date was 28
September 2022.
G. On 29 November 2022, the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Some Restricted Shares. The Company proposed to repurchase and
cancel a total of 62,310 restricted shares granted but not lifted from restricted sales. As at 29 November
2022, the Company completed the aforesaid repurchase and cancellation of restricted shares.
H. On 29 December 2022, the Company held the 26th Meeting of the 10th Board of Directors and the
15th 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.
I. On 13 January 2023, the Board of Supervisors of the Company issued the review opinion, i.e.,
Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
J. On 16 February 2023, the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares, 92,669 restricted shares were
granted to 17 objects, the grant price was CNY 89.466 per share and the listing date was 17 February
2023.
K. On 23 January 2024, the Company held the 38th Meeting of the 10th Board of Directors and the 20th
Meeting of the 10th Board of Supervisors, at which the Proposal on the Repurchase and 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. In accordance with the relevant provisions of
the incentive plan of the Company and the authorization of the First Extraordinary General Meeting of
Shareholders of 2021, the Board of Directors of the Company agreed to adjust the grant price and
39
2024 Interim Report of Luzhou Laojiao Co., Ltd.
repurchase price of the reserved restricted shares under the incentive plan from CNY 89.466 per share
to CNY 85.241 per share in view of the implementation of the Company's profit distribution plan for
2022. Meanwhile, as the unlocking conditions had been satisfied for the first unlocking period of the
2021 Restricted Share Incentive Plan, a total of 2,734,640 restricted shares held by 435 eligible
awardees were unlocked for public trading on 22 February 2024. On 24 January, the Company
disclosed the Announcement on the Repurchase and Cancellation of Some Restricted Shares to
Reduce Registered Capital and Notice to Creditors. By the expiration of the declaring period, the
Company had not received any declaration from the relevant creditors for early payout of debts or
provision of guarantee.
L. On 22 February 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 22 February 2024.
M. On 4 June 2024, the Proposal on the Repurchase and Cancellation of Some Restricted Shares was
approved at the 40th Meeting of the 10th Board of Directors and the 22nd Meeting of the Board of
Supervisors, respectively. On 5 June, the Company disclosed the Announcement on the Repurchase
and Cancellation of Some Restricted Shares to Reduce Registered Capital and Notice to Creditors. By
the expiration of the declaring period, the Company had not received any declaration from the relevant
creditors for early payout of debts or provision of guarantee.
4.2. Implementation of employee stock ownership plans
Applicable N/A
4.3. Other incentive measures for employees
Applicable N/A
40
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section V Environmental and Social Responsibility
1. Information about environment protection
Whether the listed company and its subsidiaries belong to heavy polluting industries prescribed by
the environmental protection department
Yes □ No
Policies and industry standards on environmental protection
In the process of production and operation, the Company strictly follow the laws, regulations and
industry standards related to environmental protection, such as the Environmental Protection Law of
the People's Republic of China, Law of the People's Republic of China on Environmental Impact
Assessment, Law of the People's Republic of China on Atmospheric Pollution Prevention and Control,
Law of the People's Republic of China on Water Pollution Prevention and Control, Administrative
Measures for the Legal Disclosure of Enterprise Environmental Information, Regulations on the
Administration of Environmental Protection of Construction Projects of the People's Republic of China,
Regulations on Administration of Pollutant Discharge Permits, Policies and Industry Standards on
Environmental Protection, Standard for Pollution Control on Hazardous Waste Storage, Standards for
the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry, Regulations on the
Prevention and Control of Environmental Pollution by Solid Waste in Sichuan Province, and
Regulations on Environmental Protection of Sichuan Province.
Environmental protection administrative permission
In the first half of 2024, the Company obtained six ecological and environmental administrative
permits, including a total of three permits for change and renewal of discharge permits and three
approval of environmental impact assessment reports.
Review and
Acquiring Valid
Name of permit Administrative permit No. issuance Permitted matter Remark
time term
authority
Permitted annual discharge
Discharge Permit Luzhou limits for wastewater: 480.5t/a
for Luzhou Municipal for chemical oxygen demand
2 February Re-
Laojiao Co., Ltd. 91510500204706718H004Q Ecology and 2024 5 years (COD), 36.1t/a for ammonia
application
(Huangyi Brewery Environment nitrogen, 62.5t/a for total
Eco-Park) Bureau nitrogen (TN), and 3.6t/a for
total phosphorus (TP).
Discharge Permit
Luzhou
for Luzhou
Municipal
Laojiao Co., Ltd. 6 January
91510500204706718H003Q Ecology and 5 years / Change
(National Cellar 2024
Environment
and Zaojiaoxiang
Bureau
Brewery Bases)
41
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Permitted annual discharge
limits for exhaust gas:
PM:1.1t/a, Nitrogen oxide:
Discharge Permit Luzhou 45.4t/a;
for Luzhou Municipal Permitted annual discharge
8 January
Laojiao Co., Ltd. 91510500204706718H001V Ecology and 5 years limits for wastewater: 23.183t/a Change
2024
(Luohan Brewery Environment for chemical oxygen demand
Eco-Park) Bureau (COD), 2.017t/a for ammonia
nitrogen, 5.796t/a for total
nitrogen (TN), and 0.232t/a for
total phosphorus (TP).
In the Luzhou Laojiao Huangyi
Brewery Eco-Park within
Reply to the Sichuan Luzhou Baijiu
Report of Sichuan Industrial Park, two new gas
Luzhou Baijiu boilers (220 t/h) with one in use
Industrial Park Luzhou and one as a backup and one
(Huangyi) on the Municipal back pressure turbine generator
10 January Newly
Environmental L.SH.H.J.H. [2024] No. 10 Ecology and 2024 / (21 MW) will be installed.
acquired
Impact of Environment Auxiliary facilities will be
Thermoelectric Bureau constructed, including the fuel
Cogeneration handling system, demineralised
Expansion Project water system, compressed air
(Phase I) system, water supply and
drainage system and fire
protection system.
Reply to the
Report of Luzhou In Sichuan Luzhou Baijiu
Laojiao Brewing Industrial Park, a production
Co., Ltd. on the line for the resource- and
Environmental Luzhou energy-based utilisation of
Impact of Municipal disposed grains will be built,
12 March Newly
Thermochemical L.SH.H.J.H. [2024] No. 33 Ecology and / processing distiller's 50,450.45
2024 acquired
Energy- and Environment tonnes of grains per year and
Resource-based Bureau producing 2,880 tonnes of
Coupled biochar per year and 15,192.68
Utilisation tonnes of grain residue per
Technology of year.
Brewing Waste
The project will be expanded in
phases. Phase I includes the
construction of two brewing
Reply to the workshops, nine semi-open
Report of Luzhou liquor rooms, a sorghum
Laojiao Brewing pretreatment area, a rice husk
Co., Ltd. on the Luzhou pretreatment area, a circulating
Environmental Municipal water station, a maintenance
18 April Newly
Impact of Luzhou L.SH.H.J.H. [2024] No. 35 Ecology and / workshop, and an air
2024 acquired
Laojiao Technical Environment compression station, adding a
Upgrade Project Bureau production capacity of 80,000
of Intelligent tonnes per year for strong
Brewing (Phase I aromatic base baijiu and a
& II) storage capacity of 104,000
tonnes for base baijiu. Phase II
involves the construction of 10
ceramic liquor rooms, adding a
42
2024 Interim Report of Luzhou Laojiao Co., Ltd.
storage capacity of 56,000
tonnes for base baijiu. Upon
completion of the project, the
entire plant will have an annual
production capacity of 205,000
tonnes of strong aromatic base
baijiu and a storage capacity of
540,000 tonnes for base baijiu.
Industry discharge standards and pollutants in producing and operating activities
Type of Name of
main main Number Distributi Emission
Discharg Pollution Approved Excessiv
Company pollutant pollutant of on of concentra Total
e discharge total e
name and and discharge discharge tion/inten emission
type standard emission discharge
particular particular outlet outlet sity
pollutant pollutant
Luzhou Water Luohan 19.651m
Direct
Laojiao COD 1 Brewery 50mg/L 4.0932t 23.183t/a No
pollutant discharge g/L
Co., Ltd. Eco-Park
Luzhou Luohan
Water Ammonia Direct 0.548mg/
Laojiao 1 Brewery 5mg/L 0.0984t 2.017t/a No
pollutant nitrogen discharge L
Co., Ltd. Eco-Park
Luzhou Water Luohan 8.256mg/
Total Direct
Laojiao 1 Brewery 15mg/L 1.6771t 5.796t/a No
pollutant nitrogen discharge L
Co., Ltd. Eco-Park
Luzhou Total Luohan
Water Direct 0.066mg/
Laojiao phosphor 1 Brewery 0.5mg/L 0.0142t 0.232t/a No
pollutant discharge L
Co., Ltd. us Eco-Park
Luzhou Air Organize Luohan 0.945mg/
Laojiao PM d 3 Brewery 20mg/m3 0.0664t 1.1t/a No
Co., Ltd. pollutant discharge Eco-Park m3
Luzhou Organize Luohan
Air Sulfur 0.567mg/
Laojiao d 3 Brewery 50mg/m3 0.0582t / t/a No
pollutant dioxide m3
Co., Ltd. discharge Eco-Park
Luzhou Organize Luohan
Air Oxynitrid 24.689m 150mg/m
Laojiao d 3 Brewery 2.318t 45.400t/a No
pollutant e g/m3 3
Co., Ltd. discharge Eco-Park
Luzhou Water Huangyi 32.798m
Indirect
Laojiao COD 1 Brewery 400mg/L 10.9524t 480.5t/a No
pollutant discharge g/L
Co., Ltd. Eco-Park
Luzhou Huangyi
Water Ammonia Indirect 1.206mg/
Laojiao 1 Brewery 30mg/L 0.3488t 36.1t/a No
pollutant nitrogen discharge L
Co., Ltd. Eco-Park
Luzhou Water Huangyi 18.538m
Total Indirect
Laojiao 1 Brewery 50mg/L 6.2667t 62.5t/a No
pollutant nitrogen discharge g/L
Co., Ltd. Eco-Park
Luzhou Total Huangyi
Water Indirect 0.849mg/
Laojiao phosphor 1 Brewery 3.0mg/L 0.288t 3.6t/a No
pollutant discharge L
Co., Ltd. us Eco-Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air 0.810mg/
Dust d 2 Luzhou 5mg/m3 0.2829t
Brewing pollutant m3
discharge Baijiu
Co., Ltd.
Industrial
Park
Energy 8.640t/a No
Center of
Luzhou
Organize Sichuan
Laojiao Air 1.003mg/
PM d 1 Luzhou 20mg/m3 0.0093t
Brewing pollutant m3
discharge Baijiu
Co., Ltd.
Industrial
Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air Sulfur 0.431mg/
d 2 Luzhou 35mg/m3 0.1687t
Brewing pollutant dioxide m3
discharge Baijiu
Co., Ltd.
Industrial 18.880t/a No
Park
Luzhou Energy
Organize
Laojiao Air Sulfur Center of 0.475mg/
d 1 50mg/m3 0.0047t
Brewing pollutant dioxide Sichuan m3
discharge
Co., Ltd. Luzhou
43
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Baijiu
Industrial
Park
Energy
Center of
Luzhou
Air Organize Sichuan 30.045m 100mg/m 10.25521
Laojiao Oxynitrid
d 2 Luzhou
Brewing pollutant e g/m3 3
t
discharge Baijiu
Co., Ltd.
Industrial
Park 136.080t/
Energy No
a
Center of
Luzhou
Air Organize Sichuan 51.790m 150mg/m
Laojiao Oxynitrid
d 1 Luzhou 0.2722t
Brewing pollutant e g/m3 3
discharge Baijiu
Co., Ltd.
Industrial
Park
Treatments of pollutants
A. Waste water: Areas of the Company that produce wastewater are National Cellar Brewery Base,
Zaojiaoxiang Brewery Base, Xiaoshi Brewery Base, Anning Technology Park, Luohan Brewery Eco-
Park, and Huangyi Brewery Eco-Park. In National Cellar Brewery Base, Zaojiaoxiang Brewery Base,
Xiaoshi Brewery Base, and Anning Technology Park, the high-concentration brewing wastewater is
temporarily collected in pools (or tanks), and is later transferred to the wastewater treatment station of
Huangyi Brewery Eco-Park by truck for treatment. The wastewater treatment stations of Luohan
Brewery Eco-Park and Huangyi Brewery Eco-Park are equipped with online monitors to automatically
monitor COD, ammonia nitrogen, total phosphorus, total nitrogen, pH value and flows, and transmit the
monitoring data to the supervision platform of the higher authority. The Company's facilities for
prevention and control of wastewater pollution are under normal operations, ensuring up-to-standard
discharge through general discharging outlets. Compared with last year, suspended matter discharge
was reduced by 7.80%, and Five-day BOD discharge by 5.89%.
B. Waste gas: Areas of the Company that produce exhaust gas are National Cellar Brewery Base,
Zaojiaoxiang Brewery Base, Xiaoshi Brewery Base, Luohan Brewery Eco-Park, and Huangyi Brewery
Eco-Park. In National Cellar Brewery Base, natural gas boilers are used, while in Xiaoshi Brewery Base
and Zaojiaoxiang Brewery Base, direct-fired bottom boilers are used. The natural gas boilers of Luohan
Brewery Eco-Park (20t/h, 30t/h) and the natural gas boilers of Huangyi Brewery Eco-Park (20t/h, 75t/h,
75t/h) are equipped with online monitors to automatically monitor exhaust gas, and transmit the
monitoring data to the supervision platform of the higher authority. Low NOx combustion technology is
adopted for the natural gas boilers. The Company's facilities for prevention and control of exhaust gas
pollution are under normal operations, ensuring up-to-standard emission of exhaust gas through outlets.
Compared with last year, PM discharge was reduced by 31.48%, and Nitrogen oxide discharge by
34.45%.
Emergency plan for environmental emergencies
In 2023, the Company renewed the Contingency Plan for Environmental Emergencies in Jiangyang
District of Luzhou Laojiao Co., Ltd. (2023), the Contingency Plan for Environmental Emergencies in
Longmatan District of Luzhou Laojiao Co., Ltd. (2023), and the corresponding Report on
Environmental Emergency Resource Investigation, Environmental Risk Assessment Report, Special
Contingency Plan and On-site Disposal Plan.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Input in environmental management and protection and the payment of environmental protection-
related taxes
During the Reporting Period, more than CNY 5.66 million was input in environmental governance and
protection, and CNY 70.9 thousand was paid in environmental protection tax as required.
Environmental self-monitoring plan
Odor 20
concentration Emission Standards (dimensionless)
for Odor Pollutants
Hydrogen sulfide 0.06 mg/m3
Unorganized monitoring (GB14554- 93)
Ammonia 1.5 mg/m3
points 1#-4# for the exhaust 1 time/half-
NMHC / / Manual 100%
gas emission outlets of year
Luohan Brewery Eco-Park Integrated Emission
Standards for Air
Particulate matters 1mg/m3
Pollutants
(GB16297-1996)
Ringelman
Exhaust gas emission outlets Emission Standards ≤1 Manual
emittance
DA022, DA021 (unused) and for Air Pollutants for 3 1
Nitrogen oxide 150mg/m 100%
DA020 of Luohan Brewery Boiler (GB13271- time/quarter
Eco-Park Particulate matters 2014) 20mg/m3 Automatic
Sulfur dioxide: 50mg/m3
/
Hydrogen sulfide
1.8kg/h
Exhaust gas emission outlet Emission Standards /
Ammonia 1 time/half-
DA019 of Luohan Brewery for Odor Pollutants 27kg/h Manual 100%
year
Eco-Park (GB14554- 93) 15000
Odor
(dimensionless)
concentration
/
Exhaust gas emission outlet
1
DA017 of Luohan Brewery NMHC / / Manual 100%
time/quarter
Eco-Park
Exhaust gas emission outlets Integrated Emission
DA001-DA016 (DA008 is not Standards for Air 1 time/half-
Particulate matters 120 mg/m3 Manual 100%
used) of Luohan Brewery Pollutants year
Eco-Park (GB16297-1996)
Flow /
PH value 6-9
Standards for the 1
COD Emission of Water 50 mg/L Automatic
Main outlet DW001 of the time/quarter
Ammonia nitrogen Pollutants in the 5 mg/L
wastewater treatment station 100%
TP Fermented Alcohol 0.5 mg/L
of Luohan Brewery Eco-Park
TN and Baijiu Industry 15 mg/L
(GB27931-2011)
Suspended solids 20 mg/L
Five-day BOD 20mg/L 1 time/month Manual
Chroma 20
Suspended solids Standards for the 20 mg/L 1 time/month
Emission of Water (1
Rainwater outlets DW002-
Pollutants in the time/quarter
DW006 of Luohan Brewery Manual 100%
COD Fermented Alcohol 50 mg/L in case of no
Eco-Park
and Baijiu Industry abnormalities
(GB2731-2011) monitored)
Emission Standard
Noise monitoring points 1-4# for Noise of Industrial Daytime: 60 dB
1
at the boundary of Luohan Boundary noise Enterprises at (A); nighttime: Manual 100%
time/quarter
Brewery Eco-Park Boundary (GB12348- 50 dB (A)
2008)
Circulating cooling water Flow / Automatic
outlet DW002 of the Energy PH value / 1
/ 100%
Center of Sichuan Luzhou COD / time/quarter Manual
Baijiu Industrial Park TP /
PH value Integrated 6-9
Total dissolved Wastewater /
solids (TDS) Discharge Standard
Wastewater outlet DW001 of Suspended solids 140mg/L
(GB8978-1996), 1
the Energy Center of Sichuan Manual 100%
Five-day BOD Level 3 and the 80mg/L time/quarter
Luzhou Baijiu Industrial Park
COD requirements for the 400mg/L
TN park's wastewater 50mg/L
Ammonia nitrogen treatment 30mg/L
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
TP 3mg/L
Ringelman Emission Standard
Boiler exhaust gas vents ≤1 Manual
emittance of Air Pollutants for
DA001-DA002 of the Energy Nitrogen oxide 100mg/m3 1
Thermal Power 100%
Center of Sichuan Luzhou time/quarter
Soot Plants (GB13223- 5mg/m3 Automatic
Baijiu Industrial Park
Sulfur dioxide: 2011) 35mg/m3
Ringelman
Boiler exhaust gas vent Emission Standards ≤1 Manual
emittance
DA003 of the Energy Center Nitrogen oxide for Air Pollutants for 150mg/m 3 1
100%
of Sichuan Luzhou Baijiu Boiler (GB13271- time/quarter
Industrial Park Particulate matters 2014) 20mg/m3 Automatic
Sulfur dioxide: 50mg/m3
Suspended solids Standards for the 50mg/L 1 time/month
Emission of Water (1
Rainwater outlets DW004-
Pollutants in the time/quarter
DW010 of Huangyi Brewery Manual 100%
COD Fermented Alcohol 100mg/L in case of no
Eco-Park
and Baijiu Industry abnormalities
(GB2731-2011) monitored)
Odor 20
concentration Emission Standards (dimensionless)
for Odor Pollutants
Hydrogen sulfide 0.06mg/m3
(GB14554-93)
Unorganized monitoring Ammonia 1.5mg/m3
1
points 1#-4# at the boundary NMHC / / Manual 100%
time/quarter
of Huangyi Brewery Eco-Park Integrated Emission
Standards for Air
Particulate matters 1mg/m3
Pollutants
(GB16297-1996)
2000
Odor
(dimensionless)
concentration
Emission Standards /
DA041 and DA042 of Huangyi 1 time/half-
for Odor Pollutants / Manual 100%
Brewery Eco-Park Ammonia year
(GB14554- 93) 4.9kg/h
/
Hydrogen sulfide
0.33kg/h
DA096-DA097 of Huangyi 1
NMHC / / Manual 100%
Brewery Eco-Park time/quarter
DA034-DA040, DA043-
DA070, DA076-DA086, Integrated Emission
DA088-DA095, DA098, and Standards for Air 1 time/half-
Particulate matters 120mg/m3 Manual 100%
DA099 (DA034 and DA035 Pollutants year
are not used) of Huangyi (GB16297-1996)
Brewery Eco-Park
Flow /
PH value 6-9
COD Standards for the 400mg/L 1
Emission of Water Automatic
Main outlet of the wastewater Ammonia nitrogen 30mg/L time/quarter
Pollutants in the
treatment station of Huangyi TP 3mg/L 100%
Fermented Alcohol
Brewery Eco-Park TN 50mg/L
and Baijiu Industry
Suspended solids (GB2731-2011) 140mg/L
1
Five-day BOD 80mg/L Manual
time/quarter
Chroma 80
Emission Standard
Noise monitoring points 1-4# for Noise of Industrial Daytime: 65 dB
1
at the boundary of Huangyi Boundary noise Enterprises at (A); nighttime: Manual 100%
time/quarter
Brewery Eco-Park Boundary (GB12348- 55 dB (A)
2008)
Emission Standards
Unorganized monitoring Odor
for Odor Pollutants 20 1 time/half-
points 1#-7# at Xiaoshi concentration Manual 100%
(GB14554- 93) year
Brewery Base
NMHC / /
Ringelman
Emission Standards ≤1
Boiler exhaust gas vents emittance
for Air Pollutants for 1 time/year
DA001-DA010 of Xiaoshi PM 20mg/m3 Manual 100%
Boiler (GB13271-
Brewery Base Sulfur dioxide: 2014) 50mg/m3
Nitrogen oxide 150mg/m3 1 time/month
Emission Standard
Noise monitoring points at the for Noise of Industrial
Daytime: 60 dB 1
boundary of Xiaoshi Brewery Boundary noise Enterprises at Manual 100%
(A) time/quarter
Base Boundary (GB12348-
2008)
Emission Standards
Unorganized monitoring Odor
for Odor Pollutants 20 1 time/half-
points of National Cellar and concentration Manual 100%
(GB14554- 93) year
Zaojiaoxiang Brewery Bases
NMHC / /
Boiler exhaust gas vents Ringelman Emission Standards ≤1
DA001-DA003 of National emittance for Air Pollutants for 1 time/year Manual 100%
Cellar and Zaojiaoxiang PM Boiler (GB13271- 20mg/m3
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Brewery Bases Sulfur dioxide: 2014) 50mg/m3
Nitrogen oxide 150mg/m3 1 time/month
Emission Standard
Noise monitoring points at the
for Noise of Industrial Daytime: 60 dB
boundary of National Cellar 1
Boundary noise Enterprises at (A) (70dB on Manual 100%
and Zaojiaoxiang Brewery time/quarter
Boundary (Class 4 the south side)
Bases
for street frontage)
Suspended solids Standards for the 20mg/L 1 time/month
Emission of Water (1
Rainwater outlet DW003 of
Pollutants in the time/quarter
National Cellar and Manual 100%
COD Fermented Alcohol 50mg/L in case of no
Zaojiaoxiang Brewery Bases
and Baijiu Industry abnormalities
(GB2731-2011) monitored)
Administrative penalties received in the reporting period due to environmental issues
The Company or Reason for Regulation Impact on the
Penalties Rectification
subsidiary penalties violated Company
N/A
Other information about environmental protection that should be disclosed
N/A
Measures taken to reduce carbon emissions during the reporting period and the results
Applicable N/A
The Company reduced CO2 emissions through resource recycling. It developed a WSR energy-
saving system for bran steamers, and achieved the pressure recovery and utilization of waste heat
steam through the exchange of waste heat steam of the bran steamer. During the Reporting Period,
the energy-saving system saved steam of approximately 8,940 tons and reduced carbon dioxide of
approximately 810 tons. The Company recycled the marsh gas generated from the wastewater
treatment process as boiler fuel, with more than 2.07 million cubic meters of marsh gas recycled
during the Reporting Period, and more than 3,260 tons of carbon dioxide emissions were reduced.
Other information about environment protection
N/A
2. Social responsibility
The Company deeply implemented General Secretary Xi Jinping's important discourse on coordinated
regional development and fully executed the provincial government's development strategy of
"synchronising new industrialisation, informatisation, urbanisation, and agricultural modernisation, along
with urban-rural integration and the common prosperity of five zones". Following the principle of "what
the locality needs is what the enterprise can provide”, it formulated and launched a series of targeted,
beneficial, and forward-looking key projects in Hongyuan County and Gulin County, effectively
advancing supportive assistance and rural revitalisation efforts. In the first half of the year, the
Company invested a total of CNY 1.946 million.
First, the Company leveraged its strengths to support characteristic industries. It distributed
chicks to farmers, aiding the development of courtyard economies in Xiangtian Village, Gulin County. A
47
2024 Interim Report of Luzhou Laojiao Co., Ltd.
professional team was established to promote the construction of a demonstration base for industrial
assistance in Dongxin Town, Gulin County, facilitating the upgrade and growth of the kiwifruit industry
for sustained efficiency improvement. Second, capacity-building initiatives were carried out to
cultivate talent for increasing income. The Company implemented the youth training programme in
Hongyuan County, offering e-commerce training courses that align with modern trends. Several experts
from Chengdu were engaged to provide training and practical exercises in areas such as industrial
technology, animal husbandry, veterinarian services, rural water supply and e-commerce for
entrepreneurial youth in Hongyuan County. By delivering technology and sharing experiences, the
Company aimed to develop a team of industry leaders who are capable, committed, and rooted in the
county. Third, consumption assistance was advanced to benefit local residents' income growth.
The Company encouraged employees to participate in the "purchase instead of donation and creating
wealth through sales" activity by buying local speciality agricultural products such as Hongyuan yak
beef, yak milk powder, yak jerky, and Xiangtian Village highland rice. This effort has generated CNY
1.431 million in revenue for farmers, ensuring their ongoing and stable income growth. Fourth,
infrastructure shortcomings were addressed to improve the living environment. The Company
carried out a heating facility upgrade project to ensure safe heating security for 160 households in the
winter, focusing on resolving community issues and improving county-level public services. Fifth,
organisational collaboration was deepened to enhance the level of rural governance. The
Company dispatched five middle management personnel and party members to villages for paired
assistance, investing manpower and funds into rural governance. Activities such as moral awards and
recognition of exemplary models were organised. Regular visits and support were conducted for
households at risk of returning to poverty, households on the edge of poverty, and severely
disadvantaged households. The Company also implemented the "I do practical things for the public"
activity and addressed over 20 urgent problems for residents, including transportation, healthcare and
employment, thereby advancing harmony and stability. Sixth, traditional culture was advocated to
enhance spiritual civilisation construction. The Company supported the organisation of festival
activities and implemented projects to promote traditional culture. It engaged thousands of community
members in grand cultural festivals, preserving the community's spiritual essence and invigorating the
vitality of excellent traditional local culture.
In the second half of the year, the Company will execute more missions through more concrete
measures. It will align its strengths with county-level urgent needs, striving to develop a series of
projects that meet the requirements of the assisted areas while leveraging the Company's capabilities.
These projects will be influential, exemplary, and capable of driving growth, transforming the unique
resource endowments of the counties into significant momentum for regional revitalisation and income
generation for the community, thus promoting high-quality economic and social development in
Hongyuan County and Gulin County.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section VI Significant Events
1. Undertakings of the Company's actual controller, shareholders,
related parties and acquirer, as well as the Company and other
commitment makers fulfilled in the reporting period or ongoing by the
end of this reporting period
Applicable N/A
No such cases in the reporting period.
2. Occupation of the Company's fund by the controlling shareholder or
its related parties for non-operating purposes
Applicable N/A
No such cases in the reporting period.
3. Irregularities in the provision of guarantees
Applicable N/A
No such cases in the reporting period.
4. Engagement and disengagement of CPAs firm
Are the interim financial statements audited?
□ Yes No
The interim financial statements are not audited.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
5. Explanation of the board of directors and the board of supervisors
regarding the "Non-standard audit opinion" for the reporting period
Applicable N/A
6. Explanations of the board of directors regarding the "Non -standard
audit opinion" of Last Year
Applicable N/A
7. Bankruptcy and reorganization
Applicable N/A
No such cases in the reporting period.
8. Litigation
Material litigation and arbitration
Applicable N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
10,000) liability (arbitration) (arbitration)
The Company The Company
filed a lawsuit For the losses applied to
with ABC that the Hunan
Changsha Company Province
Yingxin cannot Higher
Branch over a recover People's Court
deposit through for
dispute, and criminal enforcement
the case has execution of the verdict.
been The second procedures, Hunan
completed in trial has been 40% shall be Province
Higher See Section
the first concluded, borne by ABC
People's Court 15 October VI “Other
instance of 14,942.5 No and the case Changsha
ruled that 2014 significant
Hunan is now at the Yingxin
Hunan events”
Province stage of Branch, 20%
Higher enforcement. shall be borne Changsha
People's Court by ABC Intermediate
and the final Changsha People’s Court
trial of the Hongxin should see to
Supreme Branch and the execution
People's the rest shall of the verdict.
Court. The be borne by Upon the
case is now at the Company enforcement,
the stage of itself. the banks
enforcement. have paid part
of the
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
compensation
s.
The banks
have paid part
of the
compensation
s. As there
ICBC
was a dispute
The Company Nanyang
over the
filed a lawsuit Zhongzhou
verdict, the
with ICBC Branch, ICBC
Company
Nanyang Nanyang
applied to
Zhongzhou Branch, and
Henan
Branch over a Sanya Rural
Province
deposit Commercial
Higher
dispute, and Bank Hongsha
People's Court
the case has Branch shall
for
been The second pay
enforcement
completed in trial has been compensation
of the verdict. See Section
the first concluded, s of CNY 75
Henan 10 January VI “Other
instance of 15,000 No and the case million, CNY
Province 2015 significant
Henan is now at the 7.5 million and
Higher events”
Province stage of CNY 6.105
People's Court
Higher enforcement. million
ruled that
People's Court respectively
Nanyang
and the final with the
Intermediate
trial of the relevant
People’s Court
Supreme interest to the
should see to
People's Company, and
the execution
Court. The the rest of the
of the verdict.
case is now at loss shall be
The case is
the stage of borne by the
now at the
enforcement. Company
stage of
itself.
enforcement
by Nanyang
Intermediate
People’s
Court.
Other litigation
Applicable N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
10,000) liability (arbitration) (arbitration)
Other
litigations that
do not meet
the standard No significant
602 No Pending Pending
of a material impact
litigation which
is required to
be disclosed
9. Punishments and rectifications
Applicable N/A
No such cases in the reporting period.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
10. Credit conditions of the Company as well as its controlling
shareholder and actual controller
Applicable N/A
11. Significant related party transactions
11.1. Related party transactions arising from routine operation
Applicable N/A
No such cases in the reporting period.
11.2. Related party transactions regarding purchase or sales of assets or equity
interests
Applicable N/A
No such cases in the reporting period.
11.3. Related party transitions arising from joint investments in external parties
Applicable N/A
No such cases in the reporting period.
11.4. Credits and liabilities with related parties
Applicable N/A
No such cases in the reporting period.
11.5. Transactions with related finance companies
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.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
11.6. Transactions between finance companies controlled by the Company and
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.
11.7. Other significant related party transactions
Applicable N/A
No such cases in the reporting period.
12. Significant contracts and their execution
12.1. Trusteeship, contracting and leasing
12.1.1. Trusteeship
Applicable N/A
No such cases in the reporting period.
12.1.2. Contracting
Applicable N/A
No such cases in the reporting period.
12.1.3. Leasing
Applicable N/A
No such cases in the reporting period.
12.2. Major guarantees
Applicable N/A
No such cases in the reporting period.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
12.3. Entrust assets management
Applicable N/A
Unit: CNY 10,000
Impairment
Fund source for Amount of Overdue allowances for
Type entrusted assets entrusted assets Undue balance outstanding the overdue
management management amount outstanding
amount
Wealth
management
product of Own funds 66,000 0 0 0
securities
company
Total 66,000 0 0 0
Particulars of high risk wealth management products with a significant single amount, low security,
poor liquidity or no principal protection
Applicable N/A
Expected inability to recover the principal of entrusted assets management or other circumstances
that may result in impairment
Applicable N/A
12.4. Other significant contracts
Applicable N/A
No such cases in the reporting period.
13. Other significant events
Applicable N/A
The Company disclosed in October 2014 and January 2015 respectively the contract disputes
involving three savings deposits of CNY 500 million in total with banks including ABC Changsha
Yingxin Branch and ICBC Nanyang Zhongzhou Branch. Upon criminal booty recovery, criminal and
civil enforcement, as of the date of this Report, the Company had recovered a total amount of CNY
373 million for the three disputes.
See details in the Company’s announcements:
Date of announcement No. Catalogue Official website
Announcement of significant http://www.cninfo.com.cn/
15 October 2014 2014-35
litigation
Announcement of significant
12 November 2014 2014-41
litigation progress
Announcement of significant
6 December 2014 2014-43
litigation progress part II
Announcement of significant
10 January 2015 2015-1
events
54
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Announcement of significant
4 February 2015 2015-4
events progress
Announcement of significant
25 March 2015 2015-11
litigation progress part III
Announcement of significant
18 April 2015 2015-20
litigation progress part IV
Announcement of significant
22 April 2015 2015-21
events progress part II
Announcement of significant
24 April 2015 2015-25
litigation progress part V
Announcement of significant
15 July 2015 2015-44
litigation progress part VI
Announcement of significant
22 July 2015 2015-45
litigation progress part VII
Announcement of significant
6 June 2018 2018-17
litigation progress part VIII
Announcement of significant
7 May 2019 2019-11
litigation progress part IX
Announcement of significant
17 May 2019 2019-13
litigation progress part X
Announcement of significant
24 March 2020 2020-6
litigation progress part XI
Announcement of significant
6 May 2020 2020-14
litigation progress part XII
Announcement of significant
7 November 2020 2020-34
litigation progress part XIII
Announcement of significant
6 July 2021 2021-30
litigation progress part XIV
Announcement of significant
15 December 2021 2021-57
litigation progress part XV
Announcement of significant
30 December 2021 2021-64
litigation progress part XVI
14. Significant events of subsidiaries
Applicable N/A
The Company invested in the technical upgrade program of intelligent brewing (Phase I) with the
wholly-owned subsidiary, Brewing Company, as the implementer. The total investment amount
approximated CNY 4,782.5090 million. For further information, see Announcement No. 2022-24 on
the Implementation of Luzhou Laojiao’s Technical Upgrade Program of Intelligent Brewing (Phase I)
by Subsidiary. The program is currently under construction.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section VII Changes in Shares and Information about
Shareholders
1. Changes in shares
1.1 Changes in shares
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. - -
7,468,58 4,846,93
Restricted 0.51% 2,621,65 2,621,65 0.33%
shares 9 9
0 0
1. Shares
held by the
state
2. Shares
held by
state-
owned
corporatio
ns
3. Shares
held by - -
7,468,58 4,846,93
other 0.51% 2,621,65 2,621,65 0.33%
domestic 9 9
investors
0 0
Of which:
shares
held by
domestic
corporatio
ns
Shares - -
held by 7,468,58 4,846,93
domestic 0.51% 2,621,65 2,621,65 0.33%
9 9
individuals 0 0
4. Shares
held by
foreign
corporatio
ns
Of which:
shares
held by
foreign
corporatio
ns
Shares
held by
foreign
individuals
II. Non- 1,464,51 2,621,65 2,621,65 1,467,14
restricted 99.49% 99.67%
shares 9,180 0 0 0,830
1.CNY
1,464,51 2,621,65 2,621,65 1,467,14
common 99.49% 99.67%
shares 9,180 0 0 0,830
2.
Domestical
ly listed
foreign
shares
3.
Overseas
listed
foreign
shares
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
4. Other
III. Total 1,471,98 1,471,98
shares 100.00% 0 0 100.00%
7,769 7,769
Reasons for the change in shares
Applicable N/A
1. According to the provisions of the 2021 Restricted Share Incentive Plan (Draft), the lifting of the
restriction conditions in the first lifting restriction period of the restricted share incentive scheme of the
Company has been achieved, and a total of 2,734,640 shares held by 435 incentive recipients have
met the conditions for lifting the sale restrictions, which were listed and traded on 22 February 2024.
2. Due to the lifting of the first lifting restriction period of the restricted share incentive scheme, a total
of 124,310 management lock-up shares were added.
3. Shen Caihong's 11,320 management lock-up shares were unlocked on 2 January 2024.
Approval of share changes
Applicable N/A
On 23 January 2024, the Proposal on the Achievement of Lifting the Restriction Conditions in the
First Restriction Period under the 2021 Restricted Share Incentive Plan was reviewed and approved
in the 38th meeting of the 10th Board of Directors and the 20th meeting of the 10th Board of
Supervisors of the Company. According to the provisions of the 2021 Restricted Share Incentive Plan
(Draft), the lifting of the restriction conditions in the first lifting restriction period of the restricted share
incentive plan of the Company has been achieved, and a total of 2,734,640 shares held by 435
incentive recipients have met the conditions for lifting the sale restrictions, which were listed and
traded on 22 February 2024.
Transfer of share ownership
Applicable N/A
Implementation progress of shares repurchases
□ Applicable N/A
Implementation progress of share buyback reduction through centralized bidding
□ Applicable N/A
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and the last
reporting period
Applicable N/A
Other contents that the Company considers it necessary or required by the securities regulatory
authorities to disclose
Applicable N/A
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
1.2 Changes in restricted shares
Applicable □ N/A
Unit：Share
Number of
Number of
restricted Decrease in Increase in
restricted
shares held at restricted restricted
Name of shares held at Reason for Date of
the beginning shares during shares during
shareholder the end of the restriction unlocking
of the the reporting the reporting
reporting
reporting period period
period
period
Shares lifted
from restricted
sales in the
2021
first restriction
Restricted 22 February
7,235,293 2,734,640 0 4,500,653 period under
Share 2024
the 2021
Incentive Plan
Restricted
Share
Incentive Plan
Management
lock-up
shares added Management
after the first lock-up
restriction shares added
Liu Miao 144,140 0 14,385 158,525
period under on 22
the 2021 February
Restricted 2024
Share
Incentive Plan
Management
lock-up
shares added Management
after the first lock-up
restriction shares added
Lin Feng 0 0 14,385 14,385
period under on 22
the 2021 February
Restricted 2024
Share
Incentive Plan
Management
lock-up
shares added Management
after the first lock-up
restriction shares added
Zhang Suyi 0 0 11,505 11,505
period under on 22
the 2021 February
Restricted 2024
Share
Incentive Plan
Management
Management
lock-up
lock-up
shares added
shares added
Xiong Pinting 0 0 9,420 9,420 after the first
on 22
restriction
February
period under
2024
the 2021
58
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Restricted
Share
Incentive Plan
11,320
Lifting
locked-up
restriction of
shares of
management
senior
lock-up
management
shares, and
were lifted
Management
from restricted
lock-up
sales on 2
Shen Caihong 89,156 11,320 11,505 89,341 shares added
January 2024,
after the first
and
restriction
Management
period under
lock-up
the 2021
shares added
Restricted
on 22
Share
February
Incentive Plan
2024
Management
lock-up
shares added Management
after the first lock-up
restriction shares added
Xie Hong 0 0 11,505 11,505
period under on 22
the 2021 February
Restricted 2024
Share
Incentive Plan
Management
lock-up
shares added Management
after the first lock-up
restriction shares added
He Cheng 0 0 11,505 11,505
period under on 22
the 2021 February
Restricted 2024
Share
Incentive Plan
Management
lock-up
shares added Management
after the first lock-up
restriction shares added
Li Yong 0 0 9,420 9,420
period under on 22
the 2021 February
Restricted 2024
Share
Incentive Plan
Off-office lock-
Off-office lock- up on 2
Wang Hongbo 0 0 30,680 30,680
up February
2024
Total 7,468,589 2,745,960 124,310 4,846,939 -- --
59
2024 Interim Report of Luzhou Laojiao Co., Ltd.
2. Issuance and listing of securities
Applicable N/A
3. Total number of shareholders and their shareholdings
Unit：Share
Total number of common Total number of preferred shareholders with
shareholders at the end of 147,587 resumed voting rights by the end of the 0
the reporting period reporting period (if any)(see Note 8)
Shareholdings of common shareholders with a shareholding percentage over 5% or the top 10 common shareholders (exclusive of shares
lent in refinancing)
Total Pledged, marked or frozen
common Increase/de Number of Number of shares
Shareholdin shares held crease holding holding non-
Name of Nature of
g by the end during the restricted restricted
shareholder shareholder Status of Number of
percentage of the reporting common common
shares shares
reporting period shares shares
period
Luzhou
Laojiao State-owned
Group Co., corporation 25.89% 381,088,389 0 0 381,088,389 N/A 0
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 2.98% 43,827,519 810,540 0 43,827,519 N/A 0
investment
fund by
China
Merchants
Fund
Hong Kong
Securities
Outbound
Clearing 2.90% 42,754,559 -4,736,702 0 42,754,559 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
China Co.,
Ltd.－Blue
chip
selected Other
hybrid 1.46% 21,470,000 0 0 21,470,000 N/A 0
securities
investment
fund by E
Fund
Industrial
and
Commercial
Bank of
China Co.,
Ltd.-Newly Other 0.92% 13,598,087 0 0 13,598,087 N/A 0
growth
hybrid
securities
investment
fund by
60
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Invesco
Great Wall
Central
Huijin Asset State-owned
Managemen corporation 0.92% 13,539,862 0 0 13,539,862 N/A 0
t Co., Ltd.
China Life
Insurance
Company
Limited-
Tradition-
common Other 0.73% 10,759,401 1,229,089 0 10,759,401 N/A 0
insurance
product-
005L－
CT001 Hu
Industrial
and
Commercial
Bank of
China Co.,
Ltd.- Huatai- Other 0.59% 8,630,935 - 0 8,630,935 N/A 0
Pinebridge
CSI 300
Exchange-
Traded
Fund
Strategic investors or
general corporations
become the top-ten
shareholders due to placing N/A
of new shares（if any）
（see note 3）
1. Luzhou Laojiao Group Co., Ltd. and Luzhou XingLu Investment Group Co., Ltd. are both holding state-
owned companies under the jurisdiction of SASAC of Luzhou. The two companies signed the agreement of
persons acting in concert on 31 December 2015 and the renewed agreement of persons acting in concert on
27 May 2021. For details, please refer to the announcement of the Company on 5 January 2016 -
Announcement on the Agreement of Persons Acting in Concert Signed by Shareholders (announcement
number 2016-1) and the announcement of the Company on 29 May 2021 - Announcement on the Renewed
Agreement of Persons Acting in Concert Signed by Shareholders (announcement number 2021-18). The two
companies signed the renewed agreement of persons acting in concert again on 23 May 2024. For details,
Related parties or acting-in-
concert please refer to the announcement of the Company on 23 May 2024 - Announcement on the Renewed
Agreement of Persons Acting in Concert Signed by Shareholders (announcement number 2024-22).
2. During the reporting period, Luzhou Laojiao Group Co., Ltd., through its wholly-owned subsidiary Sichuan
Jinduo Investment Co., Ltd., increased its holdings in the Company by 1,140,200 shares through call auction
trading, accounting for 0.08% of the total share capital of the Company. By the end of the reporting period,
Luzhou Laojiao Group Co., Ltd. and Sichuan Jinduo Investment Co., Ltd. collectively held 382,228,589
shares in the Company, representing 25.97% of the total share capital of the Company.
3. In addition, whether there is an association between the remaining shareholders or they belong to persons
acting in concert is unknown.
Explain if any of the
shareholders above was
involved in entrusting/being
entrusted with voting rights N/A
or waiving voting rights
Special account for
repurchased shares among
the top 10 shareholders (if N/A
any) (see note 11)
Shareholdings of the top 10 non-restricted shareholders (exclusive of shares lent in refinancing and locked-up shares of senior management)
Type of shares
Name of shareholder Number of non-restricted shares held in by the end of the reporting period
Type Number
CNY
Luzhou Laojiao Group Co.,
381,088,389 common 381,088,389
Ltd.
shares
CNY
Luzhou XingLu Investment
365,971,142 common 365,971,142
Group Co., Ltd.
shares
61
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Bank of China Co., Ltd. –
CNY
Baijiu index classification
43,827,519 common 43,827,519
securities investment fund
shares
by China Merchants Fund
CNY
Hong Kong Securities
42,754,559 common 42,754,559
Clearing Company Limited
shares
CNY
China Securities Finance
33,842,059 common 33,842,059
Corporation Limited
shares
Bank of China Co., Ltd.－
CNY
Blue chip selected hybrid common
securities investment fund 21,470,000 21,470,000
shares
by E Fund
Industrial and Commercial
Bank of China Co., Ltd.- CNY
Newly growth hybrid 13,598,087 common 13,598,087
securities investment fund shares
by Invesco Great Wall
CNY
Central Huijin Asset
13,539,862 common 13,539,862
Management Co., Ltd.
shares
China Life Insurance
CNY
Company Limited-Tradition-
common insurance product- 10,759,401 common 10,759,401
shares
005L－CT001 Hu
Industrial and Commercial
CNY
Bank of China Co., Ltd.-
8,630,935 common 8,630,935
Huatai-Pinebridge CSI 300
shares
Exchange-Traded Fund
The statement of association
or acting-in-concert between
the top 10 shareholders of
unrestricted shares and
between the top 10 See the table above
shareholders of unrestricted
shares and top 10
shareholders
Top 10 common
shareholders participating in
securities margin trading (if N/A
any) (see note 4)
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in
refinancing shares lending
Applicable □ N/A
Unit: Share
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing shares
lending
Shares in the common Shares lent in Shares in the common Shares lent in
account and credit refinancing and not yet account and credit refinancing and not yet
Full name account at the period- returned at the period- account at the period- returned at the period-
of begin begin end end
sharehold
er As % of As % of As % of As % of
Total Total Total Total
total share total share total share total share
shares shares shares shares
capital capital capital capital
Bank of
China Co.,
Ltd. –
Baijiu
43,016,97 43,827,51
index 2.92% 55,000 0.00% 2.98% 0 0.00%
9 9
classificati
on
securities
investmen
62
2024 Interim Report of Luzhou Laojiao Co., Ltd.
t fund by
China
Merchants
Fund
Changes in top 10 shareholders and top 10 unrestricted 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 top10 common shareholders did not conduct
any promissory repurchase during the reporting period.
4. Changes in shares held by directors, supervisors, and senior
management
Applicable N/A
No changes occurred to shares held by directors, supervisors and senior management in the
reporting period. See the 2023 Annual Report for more details.
5. Change of controlling shareholder or actual controller
Change of the controlling shareholder during the reporting period
Applicable N/A
No such cases in the reporting period.
Change of the actual controller during the reporting period
Applicable N/A
The actual controller of the Company has not changed during the reporting period.
63
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section VIII Preferred Shares
Applicable N/A
No preferred stock in the Company during the reporting period.
64
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section IX Information about Bond
Applicable N/A
1. Enterprise bonds
Applicable N/A
No such cases in the reporting period.
2. Corporate bonds
Applicable N/A
2.1. Basic information about the corporate bond
Unit：CNY 10,000
Way of
Bond Interest Place of
Name Abbr. Code Issue date Value date Due date redemptio
balance rate trading
n
In terms of
the bonds
of this
phase,
interests
will be paid
by year
2020 and the
Public principal
Offering of will be
Corporate repaid in
Bond of lump sum
Shenzhen
Luzhou 20 Lao 16 March 17 March 17 March at maturity.
149062.SZ 150,000 3.50% Stock
Laojiao Jiao 01 2020 2020 2025 The
Exchange
Co., Ltd. interests
for will be paid
Qualified once every
Investors year and
(Phase I) the
interests
for the last
installment
will be paid
together
with the
principal.
Appropriate arrangement of the The bonds are applicable to eligible investors who have qualified securities accounts with
investors (if any) Shenzhen Branch of China Securities Depository and Clearing Co., Ltd., are permitted to engage
65
2024 Interim Report of Luzhou Laojiao Co., Ltd.
in the subscription and transfer of corporate bonds in accordance with the Management Measures
for the Issue and Transaction Management of Corporate Bonds, Management Measures for the
Suitability of 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
N/A
(if any) and countermeasures
Overdue bonds
Applicable N/A
2.2. Triggering and execution of issuer or investor option clauses and investor
protection clauses
Applicable N/A
2.3. Changes in credit ratings in the reporting period
Applicable N/A
2.4. Execution and changes with respect to guarantees, repayment plans and
other repayment-ensuring measures in the reporting period, as well as the impact
on the interests of bond holders
Applicable N/A
3. Debt instruments as a non-financial enterprise
Applicable N/A
No such cases in the reporting period.
4. Convertible corporate bonds
Applicable N/A
No such cases in the reporting period.
66
2024 Interim Report of Luzhou Laojiao Co., Ltd.
5. Consolidated loss of the reporting period over 10% of net assets as
at the end of last year
Applicable N/A
6. The major accounting data and the financial indicators of the recent
2 years of the company as of the end of the reporting period
Unit：CNY 10,000
Item 30 June 2024 31 December 2023 Change
Current ratio 3.09 4.50 -31.33%1
Debt/asset ratio 40.28% 34.38% 5.90%
Quick ratio 2.35 3.31 -29.00%
H1 2024 H1 2023 Change
Net profits before non-
799,411.07 704,093.86 13.54%
recurring gains and losses
EBITDA/debt ratio 92.02% 80.25% 11.77%
Interest cover (times) 41.93 37.35 12.26%
EBITDA-to-interest cover
43.38 38.64 12.27%
(times)
Note: 1. At the end of this reporting period, there was a decrease of 31.33% compared to the end of
the previous year, which was mainly due to an increase in current liabilities resulting from the accrual
of dividends payable during this period.
67
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Section X Financial Report
1. Auditor’s report
Are these interim financial statements audited by an independent auditor?
□Yes No
The interim financial statements are not audited by an independent auditor.
2. Financial statements
Monetary unit for the financial statements and the notes thereto: CNY
Prepared by: Luzhou Laojiao Co., Ltd.
Consolidated balance sheet
As at 30 June 2024
Unit: CNY
Item Balance as at 30 June 2024 Balance as at 1 January 2024
Current assets:
Cash and cash equivalents 36,100,758,789.69 25,952,025,091.28
Settlement reserves
Lending funds
Held-for-trading financial assets 697.84 1,426,992,098.83
Derivative financial assets
Notes receivables
Accounts receivables 4,069,325.61 17,461,378.98
Accounts receivables financing 4,088,985,516.61 5,938,171,007.93
Prepayment 183,153,346.02 202,309,186.70
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 37,208,215.91 22,716,893.12
Including：Interests receivable
Dividends receivable 20,242,601.70
Buying back the sale of financial
assets
Inventories 12,354,323,751.59 11,622,043,947.46
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one
year
68
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Other current assets 129,399,856.83 176,684,731.97
Total current assets 52,897,899,500.10 45,358,404,336.27
Non-current assets:
Disbursement of loans and advances
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2,727,584,618.05 2,708,254,833.50
Investments in other equity
335,372,892.95 402,893,468.80
instruments
Other non-current financial assets
Investment property 44,397,290.42 37,785,416.77
Fixed assets 9,595,197,848.09 8,613,223,465.46
Construction in progress 561,121,727.91 1,718,468,880.53
Productive biological assets
Oil and gas assets
Use right assets 32,187,976.28 23,260,955.23
Intangible assets 3,377,465,875.79 3,397,873,791.08
Including: Data resource
Development expenses
Including: Data resource
Goodwill
Long-term deferred expenses 1,573,383.50 960,005.91
Deferred tax assets 262,128,182.93 674,429,617.92
Other non-current assets 404,267,753.99 358,900,430.13
Total non-current assets 17,341,297,549.91 17,936,050,865.33
Total assets 70,239,197,050.01 63,294,455,201.60
Current liabilities:
Short-term loans
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities 9,763.87
Derivative financial liabilities
Notes payable
Accounts payable 2,162,821,537.64 2,357,223,733.21
Advance from customer
Contract liabilities 2,341,708,292.72 2,672,977,090.30
Financial assets sold for repurchase
Deposits from customers and inter-
bank
Customer brokerage deposits
Securities underwriting brokerage
deposits
69
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Employee benefits payable 345,778,113.07 523,866,711.41
Taxes payable 1,618,870,727.39 2,939,627,533.00
Other payable 8,798,372,843.06 1,150,721,162.53
Including：Interests payable
Dividends payable 7,948,733,952.60 29,684,819.82
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
1,555,342,077.23 78,918,152.41
year
Other current liabilities 304,419,317.46 347,485,071.57
Total current liabilities 17,127,312,908.57 10,070,829,218.30
Non-current liabilities:
Insurance contract reserves
Long-term loans 10,990,000,000.00 10,000,300,000.00
Bonds payable 1,498,716,737.02
Including：Preferred shares
Perpetual bonds
Lease liabilities 28,420,897.97 22,356,404.47
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 24,919,853.01 27,772,083.74
Deferred tax liabilities 120,182,564.78 142,773,028.22
Other non-current liabilities
Total non-current liabilities 11,163,523,315.76 11,691,918,253.45
Total liabilities 28,290,836,224.33 21,762,747,471.75
Owners' equity
Share capital 1,471,987,769.00 1,471,987,769.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 5,285,589,296.33 5,185,481,523.22
Less: treasury stock 359,451,123.09 616,743,610.59
Other comprehensive income 28,478,148.43 63,130,469.51
Special reserves
Surplus reserves 1,471,987,769.00 1,471,987,769.00
General risk reserve
Undistributed profits 33,894,370,787.46 33,815,566,574.75
Total equity attributable to owners of
41,792,962,647.13 41,391,410,494.89
the parent company
Non-controlling interests 155,398,178.55 140,297,234.96
Total owners' equity 41,948,360,825.68 41,531,707,729.85
Total liabilities and owners' equity 70,239,197,050.01 63,294,455,201.60
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
70
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Person in charge of accounting department：Song Ying
Balance sheet of parent company
As at 30 June 2024
Unit: CNY
Item Balance as at 30 June 2024 Balance as at 1 January 2024
Current assets:
Cash and cash equivalents 31,885,803,718.52 24,271,855,815.25
Held-for-trading financial assets 1,426,992,098.83
Derivative financial assets
Notes receivables
Accounts receivables 54,257.28
Accounts receivables financing
Prepayment 9,840,835.64 6,360,210.40
Other receivables 16,191,194,315.32 14,844,650,322.98
Including：Interests receivable
Dividends receivable 20,242,601.70
Inventories 1,059,039.47 1,051,717.53
Including: Data resource
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 5,332,560.03 108,073,731.77
Total current assets 48,093,284,726.26 40,658,983,896.76
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 6,622,314,283.60 6,494,866,955.20
Investments in other equity
335,068,971.32 402,589,547.17
instruments
Other non-current financial assets
Investment property 44,397,290.42 37,785,416.77
Fixed assets 887,130,403.00 950,099,737.28
Construction in progress 76,386,125.08 57,369,565.37
Productive biological assets
Oil and gas assets
Use right assets 207,172.71 316,259.61
Intangible assets 720,597,218.65 781,194,544.01
Including: Data resource
Development expenses
Including: Data resource
71
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Goodwill
Long-term deferred expenses 581,198.33 820,758.81
Deferred tax assets 114,957,586.84 154,645,014.28
Other non-current assets 200,783,195.94 200,783,195.94
Total non-current assets 9,002,423,445.89 9,080,470,994.44
Total assets 57,095,708,172.15 49,739,454,891.20
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 11,654,993.00 19,666,554.15
Advance from customer
Contract liabilities 3,914,703.32 2,230,734.50
Employee benefits payable 133,307,812.70 163,823,844.30
Taxes payable 233,755,640.83 204,018,131.83
Other payables 15,244,780,060.80 1,960,371,090.55
Including：Interests payable
Dividends payable 7,948,733,952.60
Liabilities held for sale
Non-current liabilities due within one
1,546,588,577.68 74,018,942.63
year
Other current liabilities 508,911.43 289,995.48
Total current liabilities 17,174,510,699.76 2,424,419,293.44
Non-current liabilities:
Long-term loans 10,990,000,000.00 10,000,300,000.00
Bonds payable 1,498,716,737.02
Including：Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income
Deferred tax liabilities 55,552,318.41 72,592,887.99
Other non-current liabilities
Total non-current liabilities 11,045,552,318.41 11,571,609,625.01
Total liabilities 28,220,063,018.17 13,996,028,918.45
Owners' equity
Share capital 1,471,987,769.00 1,471,987,769.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 5,280,393,557.36 5,179,307,881.60
72
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Less: treasury stock 359,451,123.09 616,743,610.59
Other comprehensive income 25,603,515.78 60,513,567.32
Special reserves
Surplus reserves 1,471,987,769.00 1,471,987,769.00
Undistributed profits 20,985,123,665.93 28,176,372,596.42
Total owners' equity 28,875,645,153.98 35,743,425,972.75
Total liabilities and owners' equity 57,095,708,172.15 49,739,454,891.20
Consolidated income statement
Unit: CNY
Item H1 2024 H1 2023
1. Total operating revenue 16,904,885,169.38 14,593,051,774.14
Including: Operating revenue 16,904,885,169.38 14,593,051,774.14
Interest income
Earned premium
Fee and commission
income
2. Total operating costs 6,061,192,676.41 5,234,429,060.11
Including: Cost of sales 1,932,074,493.16 1,700,263,105.68
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 2,043,377,033.97 1,593,958,974.95
Selling and distribution
1,630,293,023.67 1,463,196,830.61
expenses
General and administrative
504,694,175.31 539,879,241.31
expenses
Research and
75,028,702.85 62,914,698.99
Development expenses
Financial expenses -124,274,752.55 -125,783,791.43
Including：Interest
266,707,454.54 261,543,693.36
expenses
Interest
391,537,705.76 384,116,432.10
income
Plus: Other income 21,379,290.54 23,395,940.16
Investment income ("-" for
15,422,563.74 85,024,194.55
losses)
73
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Including: income from
investment in associates and joint 14,536,085.02 70,278,286.49
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
33,256,967.84 32,781,678.42
values(“-“ for losses)
Credit impairment losses (“-”
1,109,313.81 130,161.94
for losses)
Impairment losses(“-“ for
losses)
Gains from disposal of
1,058,795.10 -477,479.38
assets("-" for losses)
3. Operating profits ("-" for losses) 10,915,919,424.00 9,499,477,209.72
Plus: non-operating income 8,564,749.87 14,479,518.98
Less: non-operating expenses 7,663,658.92 6,972,586.95
4. Total profits before tax ("-" for
10,916,820,514.95 9,506,984,141.75
total losses)
Less: income tax expenses 2,870,561,488.56 2,385,359,516.12
5. Net profit ("-" for net loss) 8,046,259,026.39 7,121,624,625.63
5.1 By operating continuity
5.1.1 Net profit from continuing
8,046,259,026.39 7,121,624,625.63
operation ("-" for losses)
5.1.2 Net profit from
discontinued operation ("-" for losses)
5.2 By ownership
1) Attributable to shareholders of
8,027,538,165.31 7,090,426,787.07
the parent company ("-" for losses)
2) Attributable to non-controlling
18,720,861.08 31,197,838.56
interests ("-" for losses)
6. Net of tax from other
-34,442,245.50 -218,514,527.93
comprehensive income
Net of tax from other
comprehensive income to the owner -34,652,321.08 -219,468,210.77
of the parent company
6.1 Other comprehensive
income cannot reclassified into the -50,739,026.64 -221,898,677.10
profit and loss:
1) Remeasure the variation of
net indebtedness or net asset of
defined benefit plans
2) Share in other
comprehensive income that cannot
-98,594.78 131,244.39
be classified into profit and loss
under equity method
3) Changes in fair value of
-50,640,431.86 -222,029,921.49
investments in other equity
74
2024 Interim Report of Luzhou Laojiao Co., Ltd.
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
6.2 Other comprehensive
income that will be reclassified into 16,086,705.56 2,430,466.33
the profit and loss
1) Share in other
comprehensive income that will be
15,828,975.10 1,266,710.82
classified into profit and loss under
equity method
2) Changes in fair value of
investments in other debt obligations
3) Other comprehensive
income arising from the
reclassification of financial assets
4) Allowance for credit
impairments in investments in other
debt obligations
5) Reserve for cash-flow
hedge
6) Balance arising from the
translation of foreign currency 257,730.46 1,163,755.51
financial statements
7) Others
Net of tax from other
comprehensive income to non- 210,075.58 953,682.84
controlling interests
7. Total comprehensive income 8,011,816,780.89 6,903,110,097.70
Total comprehensive income
attributable to owners of the parent 7,992,885,844.23 6,870,958,576.30
company
Total comprehensive income
attributable to non-controlling 18,930,936.66 32,151,521.40
interests
8. Earnings per share
(1) Basic earnings per share 5.46 4.82
(2) Diluted earnings per share 5.46 4.82
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 H1 2024 H1 2023
1. Operating revenue 5,698,158,853.96 4,014,540,328.02
Less: Cost of sales 4,408,209,268.20 3,042,254,948.12
Taxes and surcharges 36,744,352.82 37,573,415.96
Selling and distribution
expenses
General and administrative 432,679,079.77 461,675,917.45
75
2024 Interim Report of Luzhou Laojiao Co., Ltd.
expenses
Research and Development
18,486,265.53 26,515,628.81
expenses
Financial expenses -223,823,444.31 -227,960,702.16
Including：Interest
169,177,810.84 160,806,004.01
expenses
Interest income 393,493,177.13 389,316,203.47
Plus: Other income 7,114,640.09 15,751,969.90
Investment income ("-" for
3,222,104.81 69,703,790.61
losses)
Including: income from
investment in associates and joint 2,318,263.38 55,379,409.84
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
33,246,473.03 30,742,662.63
values(“-“ for losses)
Credit impairment losses (“-” for
326,812.56 930,108.70
losses)
Asset impairment losses (“-” for
losses)
Gains from disposal of assets("-
1,177,473.44 -651,767.48
" for losses)
2. Operating profits ("-" for losses) 1,070,950,835.88 790,957,884.20
Plus: non-operating income 5,240,384.69 11,214,036.19
Less: non-operating expenses 6,645,726.27 5,679,506.55
3. Total profits before tax ("-" for
1,069,545,494.30 796,492,413.84
total losses)
Less: income tax expenses 312,060,472.19 201,232,450.87
4. Net profit ("-" for net loss) 757,485,022.11 595,259,962.97
4.1 Net profit from continuing
757,485,022.11 595,259,962.97
operation ("-" for losses)
4.2 Net profit from discontinued
operation ("-" for losses)
5. Net of tax from other
-34,910,051.54 -220,631,966.28
comprehensive income
5.1 Other comprehensive
income cannot reclassified into the -50,739,026.64 -221,898,677.10
profit and loss:
1) Remeasure the variation of
net indebtedness or net asset of
defined benefit plans
2) Share in other
comprehensive income that cannot
-98,594.78 131,244.39
be classified into profit and loss
under equity method
3) Changes in fair value of
-50,640,431.86 -222,029,921.49
investments in other equity
76
2024 Interim Report of Luzhou Laojiao Co., Ltd.
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
5.2 Other comprehensive
income that will be reclassified into 15,828,975.10 1,266,710.82
the profit and loss
1) Share in other
comprehensive income that will be
15,828,975.10 1,266,710.82
classified into profit and loss under
equity method
2) Changes in fair value of
investments in other debt obligations
3) Other comprehensive
income arising from the
reclassification of financial assets
4) Allowance for credit
impairments in investments in other
debt obligations
5) Reserve for cash-flow
hedge
6) Balance arising from the
translation of foreign currency
financial statements
7) Others
6. Total comprehensive income 722,574,970.57 374,627,996.69
7. Earnings per share
(1) Basic earnings per share 0.50 0.39
(2) Diluted earnings per share 0.50 0.39
Consolidated statement of cash flows
Unit: CNY
Item H1 2024 H1 2023
1. Cash flows from operating
activities
Cash received from sale of goods
20,162,157,471.33 17,584,367,655.42
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,
77
2024 Interim Report of Luzhou Laojiao Co., Ltd.
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 1,262,805.77 268,904.22
Cash received from other
454,611,350.11 459,253,580.98
operating activities
Subtotal of cash inflows from
20,618,031,627.21 18,043,890,140.62
operating activities
Cash paid for goods purchased
2,513,884,361.19 3,091,976,431.75
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
834,143,117.90 742,681,965.47
employees
Cash paid for taxes and
7,651,967,240.46 7,376,131,406.36
surcharges
Cash paid for other operating
1,392,976,695.09 1,185,339,540.00
activities
Subtotal of cash outflows from
12,392,971,414.64 12,396,129,343.58
operating activities
Net cash flows from operating
8,225,060,212.57 5,647,760,797.04
activities
2. Cash flows from investing
activities
Cash received from disposal of
2,090,367,314.89 1,502,335,883.94
investments
Cash received from returns on
23,970,473.40 2,391,009.80
investments
Net cash received from disposal of
fixed assets, intangible assets and 10,363,496.03 6,151,397.95
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
2,124,701,284.32 1,510,878,291.69
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 344,186,871.61 578,623,738.47
other long-term assets
Cash paid for investments 671,700,000.00 200,000,000.00
78
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Net increase in pledge loans
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
17,362.71
activities
Subtotal of cash outflows from
1,015,904,234.32 778,623,738.47
investing activities
Net cash flows from investing
1,108,797,050.00 732,254,553.22
activities
3. Cash flows from financing
activities
Cash received from investors 79,496.11 10,373,040.14
Including: cash received by
subsidiaries from investments by 79,496.11 2,082,314.40
minority shareholders
Cash received from borrowings 2,000,000,000.00 6,350,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
2,000,079,496.11 6,360,373,040.14
financing activities
Cash paid for debt repayments 1,010,300,000.00 10,100,000.00
Cash paid for distribution of
dividends and profits or payment of 216,195,804.05 154,205,652.79
interest
Including: dividends and profits
paid to minority shareholders by 29,684,819.82
subsidiaries
Cash paid for other financing
10,991,704.13 1,117,268.64
activities
Subtotal of cash outflows from
1,237,487,508.18 165,422,921.43
financing activities
Net cash flows from financing
762,591,987.93 6,194,950,118.71
activities
4. Effect of fluctuation in exchange
5,571,990.19 7,563,547.16
rate on cash and cash equivalents
5. Net increase in cash and cash
10,102,021,240.69 12,582,529,016.13
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 25,893,029,277.86 17,729,006,591.87
period
6. Balance of cash and cash
equivalents at the end of the 35,995,050,518.55 30,311,535,608.00
period
Cash flow statements of parent company
Unit: CNY
Item H1 2024 H1 2023
1. Cash flows from operating
activities
Cash received from sale of goods
6,440,549,216.51 4,537,069,372.71
and rendering of services
Refunds of taxes and surcharges
Cash received from other
3,842,158,617.85 4,098,127,059.26
operating activities
79
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Subtotal of cash inflows from
10,282,707,834.36 8,635,196,431.97
operating activities
Cash paid for goods purchased
4,095,821,295.38 2,851,101,478.66
and services received
Cash paid to and on behalf of
256,233,333.40 238,227,114.39
employees
Cash paid for taxes and
457,806,064.04 634,932,605.73
surcharges
Cash paid for other operating
149,211,369.48 134,540,090.19
activities
Subtotal of cash outflows from
4,959,072,062.30 3,858,801,288.97
operating activities
Net cash flows from operating
5,323,635,772.06 4,776,395,143.00
activities
2. Cash flows from investing
activities
Cash received from disposal of
2,090,367,314.89 1,400,914,454.67
investments
Cash received from returns on
23,970,473.40 2,391,009.80
investments
Net cash received from disposal of
fixed assets, intangible assets and 10,363,496.03 271,899.30
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
2,124,701,284.32 1,403,577,363.77
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 19,773,238.28 52,057,717.59
other long-term assets
Cash paid for investments 660,000,000.00 220,000,000.00
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
679,773,238.28 272,057,717.59
investing activities
Net cash flows from investing
1,444,928,046.04 1,131,519,646.18
activities
3. Cash flows from financing
activities
Cash received from investors 8,290,725.74
Cash received from loans 2,000,000,000.00 6,350,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
2,000,000,000.00 6,358,290,725.74
financing activities
Cash paid for debt repayments 1,010,300,000.00 10,100,000.00
Cash paid for distribution of
dividends and profits or payment of 186,510,984.23 154,205,652.79
interest
Cash paid for other financing
1,848,915.81 76,680.00
activities
Subtotal of cash outflows from
1,198,659,900.04 164,382,332.79
financing activities
80
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Net cash flows from financing
801,340,099.96 6,193,908,392.95
activities
4. Effect of fluctuation in exchange
124,251.99 290,791.42
rate on cash and cash equivalents
5. Net increase in cash and cash
7,570,028,170.05 12,102,113,973.55
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 24,225,475,946.42 16,991,891,937.50
period
6. Balance of cash and cash
equivalents at the end of the 31,795,504,116.47 29,094,005,911.05
period
Consolidated statement of changes in owners' equity
For the six months ended 30 June 2024
Unit: CNY
H1 2024
Equity attributable to owners of the parent company
Other equity Othe Non- Tota
instruments Less r
Gen Undi cont l
Item Shar Capi ： Com Spe Surp rolli own
Pref Perp eral strib
e tal Trea preh cial lus Othe Subt ng ers'
erre etua risk uted
capi Othe rese sury ensi rese rese r otal inter equi
d l rese profi
tal r rve stoc ve rve rve ests ty
stoc bon rve t
k Inco
k d
me
33,8 41,3 41,5
1. Balance as 1,47 5,18 616, 63,1 1,47 140,
15,5 91,4 31,7
at 31 1,98 5,48 743, 30,4 1,98 297,
66,5 10,4 07,7
December of 7,76 1,52 610. 69.5 7,76 234.
74.7 94.8 29.8
last year 9.00 3.22 59 1 9.00 96
5 9 5
Plus:
adjustments
for changes in
accounting
policies
Adjus
tments for
correction of
accounting
errors in prior
year
Other
s
33,8 41,3 41,5
2. Balance as 1,47 5,18 616, 63,1 1,47 140,
15,5 91,4 31,7
at 1 January 1,98 5,48 743, 30,4 1,98 297,
66,5 10,4 07,7
of the current 7,76 1,52 610. 69.5 7,76 234.
74.7 94.8 29.8
year 9.00 3.22 59 1 9.00 96
5 9 5
3.Increases/d
- -
ecreases in 100, 78,8 401, 15,1 416,
257, 34,6
the current 107, 04,2 552, 00,9 653,
292, 52,3
period (“-” 773. 12.7 152. 43.5 095.
487. 21.0
for 11 1 24 9 83
50 8
decreases)
-
8,02 7,99 18,9 8,01
(1) Total 34,6
7,53 2,88 30,9 1,81
comprehensiv 52,3
8,16 5,84 36.6 6,78
e income 21.0
5.31 4.23 6 0.89
8
-
(2) Capital 100, 357, - 353,
257,
contributed or 107, 400, 3,82 570,
292,
reduced by 773. 260. 9,99 267.
487.
owners 11 61 3.07 54
50
410, - 644, 644,
Capital 79,6
989, 233, 092, 172,
contributions 04.2
045. 103, 493. 098.
by owners 8
60 448. 84 12
81
2024 Interim Report of Luzhou Laojiao Co., Ltd.
24
Capital
contributions
by other
equity
instruments
holders
Amounts of - - - -
share-based 310, 24,1 286, 977, 285,
payments 881, 89,0 692, 902. 714,
recognized in 272. 39.2 233. 65 330.
owners' equity 49 6 23 58
- -
4,88 4,88
Others
7,50 7,50
0.00 0.00
- - -
7,94 7,94 7,94
(3) Profit
8,73 8,73 8,73
distribution
3,95 3,95 3,95
2.60 2.60 2.60
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
- - -
Profit
7,94 7,94 7,94
distributed to
8,73 8,73 8,73
owners (or
3,95 3,95 3,95
shareholders)
2.60 2.60 2.60
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
33,8 41,7 41,9
4. Balance as 1,47 5,28 359, 28,4 1,47 155,
94,3 92,9 48,3
at 30 June of 1,98 5,58 451, 78,1 1,98 398,
70,7 62,6 60,8
the current 7,76 9,29 123. 48.4 7,76 178.
87.4 47.1 25.6
year 9.00 6.33 09 3 9.00 55
6 3 8
For the six months ended 30 June 2023
82
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Unit: CNY
H1 2023
Equity attributable to owners of the parent company
Other equity Othe Non- Tota
instruments Less r cont l
： Gen Undi
Item Shar Capi Com Spe Surp rolli own
Pref Perp eral strib
e tal Trea preh cial lus Othe Subt ng ers'
erre etua risk uted
capi Othe rese sury ensi rese rese r otal inter equi
d l rese profi
tal r rve stoc ve rve rve ests ty
stoc bon rve t
k Inco
k d
me
26,7 34,2 34,3
1. Balance as 1,47 4,80 639, 330, 1,47 120,
72,1 07,8 28,7
at 31 1,89 0,15 021, 751, 1,89 923,
December of 97,2 71,1 94,9
5,10 4,46 998. 245. 5,10 806.
last year 13.9 30.0 36.6
0.00 8.99 78 84 0.00 61
8 3 4
Plus:
adjustments
for changes in
accounting
policies
Adjus
tments for
correction of
accounting
errors in prior
year
Other
s
26,7 34,2 34,3
2. Balance as 1,47 4,80 639, 330, 1,47 120,
72,1 07,8 28,7
at 1 January 1,89 0,15 021, 751, 1,89 923,
of the current 97,2 71,1 94,9
5,10 4,46 998. 245. 5,10 806.
year 13.9 30.0 36.6
0.00 8.99 78 84 0.00 61
8 3 4
3.Increases/d - -
ecreases in 204, 887, 878, 36,6 915,
92,6 22,2 235,
the current 415, 494, 596, 55,0 252,
period (“-” 69.0 78,3 683,
619. 116. 929. 98.5 027.
for 0 88.1 863.
decreases) 85 25 31 1 82
9 98
-
7,09 6,87 32,1 6,90
(1) Total 219,
0,42 0,95 51,5 3,11
comprehensiv 468,
e income 6,78 8,57 21.4 0,09
210.
7.07 6.30 0 7.70
77
-
204, 226, 231,
(2) Capital 92,6 22,2 4,50
contributed or 415, 786, 290,
reduced by 69.0 78,3 3,57
619. 677. 254.
owners 0 88.1 7.11
85 04 15
9
Capital 92,6 8,19 8,29 2,08 2,08
contributions 69.0 8,05 0,72 2,31 2,31
by owners
0 5.74 4.74 4.40 4.40
Capital
contributions
by other
equity
instruments
holders
-
Amounts of 196, 226, 229,
share-based 30,5 2,42
217, 786, 207,
payments 69,1 1,26
recognized in 564. 677. 939.
owners' equity 12.9 2.71
11 04 75
3
Others
83
2024 Interim Report of Luzhou Laojiao Co., Ltd.
- - -
6,21 6,21 6,21
(3) Profit
distribution 9,14 9,14 9,14
8,32 8,32 8,32
4.03 4.03 4.03
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
- - -
Profit 6,21 6,21 6,21
distributed to
owners (or 9,14 9,14 9,14
shareholders) 8,32 8,32 8,32
4.03 4.03 4.03
Others
-
(4) Internal 16,2
16,2
carry-forward 15,6
of owners' 15,6
53.2
equity 53.2
1
1
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward -
of retained 16,2
16,2
earnings from 15,6
other 15,6
53.2
comprehensiv 53.2
e income 1
1
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
27,6 35,0 35,2
1,47 5,00 616, 95,0 1,47 157,
4. Balance as 59,6 86,4 44,0
at 30 June of 1,98 4,57 743, 67,3 1,89 578,
the current 91,3 68,0 46,9
7,76 0,08 610. 81.8 5,10 905.
year 30.2 59.3 64.4
9.00 8.84 59 6 0.00 12
3 4 6
Statement of changes in owners' equity of parent company
For the six months ended 30 June 2024
Unit: CNY
84
2024 Interim Report of Luzhou Laojiao Co., Ltd.
H1 2024
Other equity instruments Less Other
Capita ： Compr Specia Surplu Undist Total
Item Share Prefer Perpet l ehensi l s ribute owner
Treas Other
capital red ual Other reserv ve reserv reserv d s'
e ury Incom e e profit equity
stock bond stock e
1. Balance as
1,471, 5,179, 616,74 60,513 1,471, 28,176 35,743
at 31
987,76 307,88 3,610. ,567.3 987,76 ,372,5 ,425,9
December of
9.00 1.60 59 2 9.00 96.42 72.75
last year
Plus:
adjustments
for changes in
accounting
policies
Adjus
tments for
correction of
accounting
errors in prior
year
Other
s
2. Balance as
1,471, 5,179, 616,74 60,513 1,471, 28,176 35,743
at January 1
987,76 307,88 3,610. ,567.3 987,76 ,372,5 ,425,9
of the current
9.00 1.60 59 2 9.00 96.42 72.75
year
3.Increases/d
ecreases in - - - -
101,08
the current 257,29 34,910 7,191, 6,867,
5,675.
period (“-” 2,487. ,051.5 248,93 780,81
76
for 50 4 0.49 8.77
decreases)
-
(1) Other 757,48 722,57
34,910
comprehensiv 5,022. 4,970.
,051.5
e income 11 57
4
(2) Capital -
101,08 358,37
contributed or 257,29
5,675. 8,163.
reduced by 2,487.
76 26
owners 50
-
Capital 410,98 644,09
233,10
contributions 9,045. 2,493.
3,448.
by owners 60 84
24
Capital
contributions
by other equity
instruments
holders
Amounts of
- - -
share-based
309,90 24,189 285,71
payments
3,369. ,039.2 4,330.
recognized in
84 6 58
owners' equity
Others
- -
(3) Profit 7,948, 7,948,
distribution 733,95 733,95
2.60 2.60
Withdrawal of
surplus
reserves
Profit - -
distributed to 7,948, 7,948,
owners (or 733,95 733,95
shareholders) 2.60 2.60
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as
1,471, 5,280, 359,45 25,603 1,471, 20,985 28,875
at 30 June of
987,76 393,55 1,123. ,515.7 987,76 ,123,6 ,645,1
the current
9.00 7.36 09 8 9.00 65.93 53.98
year
For the six months ended 30 June 2023
Unit: CNY
H1 2023
Other equity instruments Less Other
Capita ： Compr Specia Surplu Undist Total
Item Share Prefer Perpet l ehensi l s ribute owner
Treas Other
capital red ual Other reserv ve reserv reserv d s'
e ury Incom e e profit equity
stock bond stock e
1. Balance as
1,471, 4,789, 639,02 328,54 1,471, 23,131 30,554
at 31
895,10 603,15 1,998. 2,995. 895,10 ,570,8 ,485,1
December of
0.00 1.65 78 36 0.00 01.94 50.17
last year
Plus:
adjustments
for changes in
accounting
policies
Adjus
tments for
correction of
accounting
errors in prior
year
Other
s
2. Balance as
1,471, 4,789, 639,02 328,54 1,471, 23,131 30,554
at January 1
895,10 603,15 1,998. 2,995. 895,10 ,570,8 ,485,1
of the current
0.00 1.65 78 36 0.00 01.94 50.17
year
3.Increases/d
ecreases in - - - -
206,83
the current 92,669 22,278 236,84 5,607, 5,615,
8,213.
period (“-” .00 ,388.1 7,619. 672,70 311,05
32
for 9 49 7.85 6.83
decreases)
-
(1) Other 595,25 374,62
220,63
comprehensiv 9,962. 7,996.
1,966.
e income 97 69
28
(2) Capital -
206,83 229,20
contributed or 92,669 22,278
8,213. 9,270.
reduced by .00 ,388.1
32 51
owners 9
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Capital
92,669 8,198, 8,290,
contributions
.00 055.74 724.74
by owners
Capital
contributions
by other equity
instruments
holders
Amounts of
-
share-based 198,64 229,20
30,569
payments 0,157. 9,270.
,112.9
recognized in 58 51
3
owners' equity
Others
- -
(3) Profit 6,219, 6,219,
distribution 148,32 148,32
4.03 4.03
Withdrawal of
surplus
reserves
Profit - -
distributed to 6,219, 6,219,
owners (or 148,32 148,32
shareholders) 4.03 4.03
Others
(4) Internal -
16,215
carry-forward 16,215
,653.2
of owners' ,653.2
1
equity 1
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained -
16,215
earnings from 16,215
,653.2
other ,653.2
1
comprehensiv 1
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as
1,471, 4,996, 616,74 91,695 1,471, 17,523 24,939
at 30 June of
987,76 441,36 3,610. ,375.8 895,10 ,898,0 ,174,0
the current
9.00 4.97 59 7 0.00 94.09 93.34
year
3. Company Profile
3.1 Company Overview
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 brewing workshops from the Ming and Qing dynasties. On 20
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
September 1993, Luzhou Laojiao brewery established a joint-stock limited company with fund-raising
exclusively from its operational assets. On 25 October 1993, the public offering of shares was approved
by Sichuan Provincial People's Government and CSRC with two documents of ChuanFuHan (1993)
No.673 and FaShenZi (1993) No.108. After the offering, the total share capital was 86,880,000 shares,
which were listed and traded in Shenzhen stock exchange on 9 May 1994.
As the end of 31 December 2004, the Company's total share capital reached 841,399,673 shares after
multiple rights issues, among which the controlling shareholder, State Assets Management Bureau of
Luzhou (later renamed as State-owned Assets Supervision and Administration Commission of Luzhou,
hereinafter referred to as "SASAC of Luzhou") held 585,280,800 shares of the Company, with a
shareholding ratio of 69.56%.
On 27 October 2005, the Company implemented the non-tradable share reform. After the
implementation, the total share capital remained unchanged, and the shareholding ratio of SASAC of
Luzhou decreased from 69.56% to 60.43%.
In November 2006, the Company implemented private placement, and the total share capital increased
from 841,399,673 shares to 871,399,673 shares. The shareholding ratio of SASAC of Luzhou
decreased from 60.43% to 58.35%.
As the end of 27 February 2007, SASAC of Luzhou sold 42,069,983 shares of the Company, and after
the sale, it still held 466,375,156 shares of the Company, with its shareholding ratio reduced to 53.52%.
On 19 May 2008, the Company increased 522,839,803 shares of capital stock resulting from capital
reserve and undistributed profits transferred to increase capital stock. After the implementation, the total
share capital reached 1,394,239,476 shares, among which, SASAC of Luzhou held 746,200,250 shares
of the Company, and the shareholding ratio was still 53.52%.
On 3 September 2009, the 300,000,000 shares and the 280,000,000 shares held by SASAC of Luzhou
were separately transferred to Luzhou Laojiao Group Co., Ltd. (hereinafter referred to as the "Laojiao
Group") and Luzhou XingLu Investment Group Co., Ltd. (hereinafter referred to as the "Xinglu Group").
After the transfer, Laojiao Group, Xinglu Group, and SASAC of Luzhou respectively held 300,000,000
shares, 280,000,000 shares and 166,200,250 shares. So far, Laojiao Group became the first majority
shareholder and SASAC of Luzhou was the actual controller.
From 6 June 2012 to 20 November 2013, the first and second phases of the Company's equity
incentive plan were exercised. After the exercise, the total share capital of the Company was changed
to 1,402,252,476 shares.
On 10 April 2014 and 18 July 2016, SASAC of Luzhou transferred 81,088,320 shares and 84,000,000
shares to Laojiao Group and Xinglu Group respectively. In addition, Laojiao Group has increased its
equity stake through the secondary market of 13,137,100 shares. So far, Laojiao Group, Xinglu Group
and SASAC of Luzhou held 394,225,489 shares, 365,971,142 shares and 1,111,930 shares
respectively, with the shareholding ratios of 28.11%, 26.10% and 0.08% respectively.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
On 23 August 2017, the Company issued CNY 62,500,000 ordinary shares (A shares) privately, raising
a total capital of CNY 3,000,000,000. After the additional issuance, the total capital stock of the
Company was changed to 1,464,752,476 shares. In addition, from 2017 to 2018, Laojiao Group
decreased 13,137,100 shares that were increased through the secondary market from April 2014 to
December 2015. After share reduction, Laojiao Group, Xinglu Group and SASAC of Luzhou held
381,088,389 shares, 365,971,142 shares and 1,111,930 shares respectively, with the shareholding
ratios of 26.02%, 24.99% and 0.08% respectively. From December 2023 to June 2024, Luzhou Laojiao
Group Co., Ltd., through its wholly-owned subsidiary Sichuan Jinduo Investment Co., Ltd., increased its
holdings in the Company by 1,140,200 shares through call auction trading, accounting for 0.08% of the
total share capital of the Company. Following that, Luzhou Laojiao Group Co., Ltd. and Sichuan Jinduo
Investment Co., Ltd. collectively held 382,228,589 shares in the Company, representing 25.97% of the
total share capital of the Company. Laojiao Group still was the first majority shareholder and SASAC of
Luzhou still was the actual controller.
In February 2022, the registration of 6,862,600 shares of the Restricted Share Incentive Plan granted
by the Company for the first time were completed; in September 2022, the Company granted 342,334
shares of the Restricted Share Incentive Plan for the second time; in September 2022, with seven
awardees no longer eligible, the Company decided to repurchase and retire the 62,310 restricted
shares of them which had been granted but not lifted from restricted sales; in December 2022, the
Company granted 92,669 shares of the Restricted Share Incentive Plan for the third time; so far, the
above grant and repurchase of the Restricted Share Incentive Plan had all been registered; In January
and June 2024, as four incentive recipients no longer met the incentive conditions, the Company
decided to repurchase and retire a total of 21,266 restricted shares which had been granted but not
lifted from restricted sales. As at 30 June, the cancellation registration has not yet been completed, and
the total shares of the Company were 1,471,987,769 shares. The grant and repurchase of the
Restricted Share Incentive Plan caused no changes in the controlling shareholders and the actual
controller of the Company.
3.2 Registered address of the Company, company type, and headquarter address
Registered address and headquarter address of the Company are located in Sichuan Luzhou Laojiao
Square and company type is other incorporated company (Listed).
3.3 Business nature of the Company and main business activity
Industry of the Company is the baijiu subdivision industry of the liquor and wine, beverage and refined
tea production industry.
The main activity are research and development, production and sales of “National Cellar
1573”,”Luzhou Laojiao” and other baijiu series.
The main products are: “National Cellar 1573 Series”, ”Century-old Luzhou Laojiao Jiaoling
Series” , ”Luzhou Laojiao Tequ”, ”Touqu”, ”Hey Guys” and other baijiu series.
3.4 The name of the controlling shareholder and the ultimate substantive controller
The controlling shareholder is Luzhou Laojiao Group Co., Ltd.; the ultimate substantive control is
SASAC of Luzhou.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
3.5 Approval and submission of the financial report and its date
The financial report is approved and submitted by the board of directors of the Company on 29 August
2024.
4. Basis of preparation of financial statements
4.1. Basis of preparation of financial statements
The Company has prepared its financial statements on a going concern basis, and the preparation is
based on actual transactions and events in compliance with Accounting Standards for Business
Enterprises and relevant guidance and explanation (the following called the ASBE) issued by Ministry of
Finance, and Rules on Company Information Disclosure and Preparation of Publicly Issued Securities
No.15- General Rules on Financial Reporting Rules (2023 Revision) issued by CSRC.
4.2. Going concern
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.
5. Significant accounting policies and accounting estimates
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Sel f-regulation of
Listed Companies—Industry-specific Information Disclosure.
5.1 The declaration about compliance with ASBE
The financial statements of the Company have been prepared in accordance with ASBE, and present
truly and completely, the financial position and the Company’s and results of operations, changes in
shareholders’ equity and cash flows. In addition, in all material respects, the financial statements of the
Company comply with disclosure requirements of the financial statements and their notes in
accordance with Rules on Company Information Disclosure and Preparation of Publicly Issued
Securities No.15- General Rules on Financial Reporting Rules revised by CSRC in 2023.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
5.2 Accounting period
The Company adopts the calendar year as its accounting year, i.e. from 1st January to 31st December.
5.3 Business Cycle
The Company’s business cycle is 12 months.
5.4 Functional currency
The Company has adopted China Yuan (CNY) as functional currency.
5.5 Methods for determining materiality standards and selection criteria
Applicable □ N/A
Item Materiality standard
Material receivables withdrawal of bad debt
provision separately accrued
Material bad debt provision recovered or
reversed in accounts receivables The carrying balance at the end of the Reporting
Significant write-off of accounts receivables 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 200 million and a total amount
Material construction in progress
accounted for the current period exceeding CNY
50 million
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
5.6 The accounting treatment of business combinations involving enterprises under
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-
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
term equity investments in individual financial statements. The capital reserve (stock premium or capital
premium) is adjusted according to the difference between the book value of net asset acquired through
combination and the book value of consideration paid for the combination (or total par value of shares
issued). If the capital reserve (stock premium or capital premium) is insufficient to offset, the retained
earnings shall be adjusted.
(2) Business combination not under common control
Assets paid, liabilities incurred or assumed and the equity securities issued as consideration for
combination shall be measured based on fair value on the acquisition date, the difference between fair
value and its book value shall be included in current profit and loss. The Company shall recognize the
difference of the combination costs in excess of the fair value of the net identifiable asset acquired from
the acquiree through combination as goodwill. After the review, if the combination costs are still in short
of the fair value of the net identifiable asset acquired from the acquiree through combination, include
the difference in the current profit and loss.
Fees, commissions, and other transaction expenses paid on issuance of equity securities as
combination consideration in the business combination shall be included in the initial measurement
amount of equity securities.
5.7 Criteria for judging control and preparation of consolidated financial statements
(1) Consolidated Financial Statement Scope
The scope of the Company’s consolidated financial statements is based on control, and all subsidiaries
controlled are included in the consolidation scope of the consolidated financial statements.
(2) Consolidation procedures
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared by the parent company with other relevant information. When preparing
consolidated financial statement, the Company considers the Group as an accounting entity, adopts
unified accounting policies, and applies the requirements of ASBE related to recognition, measurement
and presentation to reflect the Group’s financial position, operating results and cash flows.
All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the
same accounting policies and accounting periods as those of the Company. If the accounting policies or
accounting periods of a subsidiary are different from those of the Company, the financial statements of
the subsidiary, upon preparation of consolidated financial statements, shall be made necessary
adjustment based on its own accounting policies and accounting periods of the Company. For
subsidiaries acquired from the business combination not under common control, the financial
statements shall be adjusted on the basis of the fair value of identifiable net assets on the date of
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
purchase. For the subsidiary acquired from the business combination under common control, its assets
and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
controlling party) shall be adjusted on the basis of the book value in the consolidated statements of the
ultimate controlling party.
The portion of a subsidiary’s equity, the current net profit and loss of subsidiaries, and the current
comprehensive income attributable to non-controlling interests shall be separately presented as non-
controlling interests in consolidated balance sheet within owners' equity, below the net profit line item
and below the total comprehensive income line item in the consolidated income statement respectively.
When the amount of current loss attributable to non-controlling shareholders of a subsidiary exceeds
the balance of the non-controlling shareholders’ portion in the opening balance of owner's equity of the
subsidiary, the excess shall be allocated against the non-controlling interests.
Acquisition of subsidiaries or business
During the reporting period, if the Company acquires subsidiaries from the business combination under
common control, the opening balance in the consolidated balance sheet shall be adjusted. The income,
expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reporting
period shall be included in the consolidated income statement. The cash flows of the newly acquired
subsidiaries from the beginning to the end of the reporting period shall be included in the consolidated
statement of cash flows. At the same time, the relevant items of the comparative information shall be
adjusted as the combined entity existed since the control point of the ultimate controlling party.
If the Company can control the investee from the business combination under common control due to
additional investment or other reasons, the parties involved in the combine shall be deemed to adjust in
the current state when the ultimate controlling party starts to control them. For the equity investment
before obtaining control of the investee, the recognized relevant profit or loss and other comprehensive
income and other changes in net assets between the later of acquisition date of previous equity and the
date on which both the investor and the investee are under common control and the combination date
shall respectively write-down the beginning retained earnings or current profits and losses during the
period of comparative information.
During the reporting period, if the Company acquires subsidiaries from the business combination not
under common control, the opening balance in the consolidated balance sheet shall not be adjusted.
The income, expenses and profits of the newly acquired subsidiaries from the acquisition date to the
end of the reporting period shall be included in the consolidated income statement. The cash flows of
the newly acquired subsidiaries from the acquisition date to the end of the reporting period shall be
included in the consolidated statement of cash flows.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
When the Company becomes capable of exercising control over an investee not under common control
due to additional investment or other reasons, the Company shall re-measure the previously held equity
interests to its fair value on the acquisition date, and the difference shall be recognized as investment
income. When the previously held equity investment is accounted for under equity method, any other
comprehensive income previously recognized and other equity changes (excluding other
comprehensive, net profit and loss and profit distribution ) in relation to the acquiree’s equity changes
shall be transferred to profit and loss for the current period when acquisition took place, except for other
comprehensive income resulting from changes in net liabilities or net assets due to re-measurement of
defined benefit plan by investee.
Disposal of subsidiaries and business
General treatments
During the reporting period, if the Company disposes subsidiaries, the income, expenses and profits of
the newly disposed subsidiaries from the beginning to the disposal date shall be included in the
consolidated income statement. The cash flows from the beginning to the disposal date shall be
included in the consolidated statement of cash flows.
In case of loss of control over the investee due to partial disposal of the equity investment or other
reasons, the Company shall re-measure the remaining equity investment at its fair value at the date of
loss of control. The amount of the consideration obtained from the disposal of the equity and the fair
value of the remaining equity, minus the net asset shares calculated continuously from the acquisition
date based on the previous shareholding proportion and the goodwill, the difference shall be included in
the investment income of the period when the control is lost. Other comprehensive income related to
the former subsidiary’s equity investment of or other changes in owners' equity excluding net profit and
loss, other comprehensive income and profit distribution shall be transferred to investment income for
the current period when control is lost. Other comprehensive income resulting from changes in net
liabilities or net assets due to re-measurement of defined benefit plan by investee is excluded.
Disposal of subsidiaries by step
If the Company loses control of a subsidiary is through multiple transactions by steps, the terms,
conditions and economic impact of the disposal transaction shall be considered. When one or more of
the following conditions may indicate that multiple transactions should be treated as a package of
transactions for accounting treatment:
a.These arrangements were entered into at the same time or in contemplation of each other;
b.These arrangements work together to achieve an overall commercial effect;
c.The occurrence of one arrangement depends on the occurrence of at least one other arrangement;
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
d.One arrangement alone is not economically justified, but it is economically justified when considered
together with other arrangements
If the transactions of the disposal of the equity investment of the subsidiary until the loss of control
belong to a package transaction, the Company shall account for as a transaction; However, the
difference between each disposal consideration received and the corresponding proportion of the
subsidiary’s net assets before the loss of control shall be recognized as other comprehensive income in
the consolidated financial statements and transferred into the profit and loss of the current period when
the control is lost.
If the transactions from the disposal of the equity investment of the subsidiary to the loss of control are
not considered as a package transactions, the accounting treatment shall be conducted according to
the relevant policies on the partial disposal of the equity investment of the subsidiary where control is
retained before the loss of control. When the control is lost, the disposal shall be accounted for
according to the general treatment.
Purchase of non-controlling interests
The difference between the increase in the cost of long-term equity investment result from acquisition of
non-controlling shareholders and the share of net assets of the subsidiary calculated continuously from
the acquisition date or combination date based on newly shareholding proportion shall be adjusted to
equity (share) premium of capital reserves in the consolidated balance sheet. If the capital reserve is
insufficient, any excess shall be adjusted against retained earnings.
Partial disposals of equity investment in subsidiaries without loss of control
When the Company disposes of a portion of a long-term equity investment in a subsidiary without loss
of control, the difference between disposal consideration and net assets of the subsidiary calculated
continuously since the acquisition date or the combination date related to the disposal of long-term
equity investment shall be adjusted to equity (share) premium of capital reserves in the consolidated
balance sheet. If the capital reserve is insufficient, any excess shall be adjusted against retained
earnings.
5.8 Classification of joint venture arrangements and the accounting treatment
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
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
arrangement provides clear evidence that it meets any of the following requirements and complies with
applicable laws and regulations as a joint operation:
a. The legal form of the joint arrangement indicates that the parties that have joint control have rights to
the assets, and obligations for the liabilities, relating to the arrangement.
b. The terms of the joint arrangement specify that the parties that have joint control have the rights to
the assets, and the obligations for the liabilities, relating to the arrangement.
c. Other facts and circumstances indicate that the parties that have joint control have rights to the
assets, and the obligations for the liabilities, relating to the arrangement.
The parties that have joint control have rights to substantially all of the output of the arrangement, and
the arrangement depends on the parties that have joint control on a continuous basis for settling the
liabilities of the arrangement.
(2) Accounting by parties of a joint operator
A joint operator shall recognize the following items in relation to its interest in a joint operation, and
account for them in accordance with relevant accounting standards:
a. Its solely-held assets, and its share of any assets held jointly;
b. Its solely-assumed liabilities, and its share of any liabilities incurred jointly;
c. Its revenue from the sale of its share of the output arising from the joint operation;
d. Its share of the revenue from sale of the output by the joint operation; and
e. Its solely-incurred expenses and its share of any expenses incurred jointly.
The Company shall only recognize the portion of the profit and loss attributable to other participants in
the joint venture, resulting from investment or sale of assets to the joint venture by the Company
(excluding those assets constituting the business), prior to the sale of such assets to a third party. The
Company shall fully recognize impairment loss when there is any impairment loss of invested or sold
assets occurring in accordance with the ASBE No.8-Asset Impairment. The Company shall only
recognize the part of the profit and loss attributable to other participants in the joint venture before
selling the assets and other assets purchased from the joint venture (excluding those assets
constituting the business) to a third party. When the impairment loss of the purchased assets is in
accordance with the ASBE No.8-Asset Impairment, the Company shall recognize such losses
according to its share. When the Company does not have common control over the joint venture, if the
Company enjoys the assets related to the joint venture and assumes the liabilities related to the joint
venture, the accounting treatment shall be conducted according to the above principles. Otherwise, the
accounting treatment shall be conducted in accordance with the relevant accounting standards.
5.9 Cash and cash equivalents
When preparing the cash flow statement, the Company recognizes cash on hand and deposits that can
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
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.
5.10 Foreign currency transactions and translation of foreign currency statements
(1) Foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company, the amount in the
foreign currency shall be translated into the amount in CNY currency at the spot exchange rate of the
transaction date. For the monetary items of foreign currencies, the translation is done according to spot
rate of the balance sheet date. The exchange difference generated from the difference of spot rate of
the current balance sheet date and the time of initial recognition of a foreign currency or the previous
balance sheet date is charged to the profit or loss of the current period except that the exchange
difference generated from foreign currency borrowings relating to assets of which the acquisition or
production satisfies the capitalization conditions is capitalized.
Non-monetary items measured at fair value that is reflected in foreign currency at the end of the period,
the Company shall firstly translate the foreign currency into the amount in functional currency at the
spot exchange rate on the date when the fair value is determined, and then compare it with the original
functional currency amount. Difference between the translated functional currency amount and the
original functional currency amount is treated as profit or loss from changes in fair value (including
changes in exchange rate) and is recognized in current profit and loss. If there is a non-monetary item
of available-for-sale financial assets, the differences are recorded into other comprehensive income.
(2) Translation of foreign currency statements
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance
sheet date. Shareholders’ equity items, except for the item of "undistributed profits", are translated at
the spot exchange rates on the dates when the transactions occur. Revenue and expense items in the
income statement are translated at the spot exchange rates on the dates when the transactions occur
or at the exchange rate determined in a systematical and reasonable method and similar to the spot
exchange rate on the day when the transactions occur. Differences arising from the above translations
of foreign currency financial statements are separately listed under other comprehensive income in the
consolidated balance sheet. If the overseas business is partly disposed of, the foreign currency
financial statements exchange difference shall be calculated in proportion to the percentage of disposal
and transferred to gain or loss on disposal for the current period.
Foreign currency cash flow and cash flow of foreign subsidiaries shall be translated at approximate
exchange rate of spot rate on the date of cash flow.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
5.11 Financial Instruments
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 interests,
performs subsequent measurement of them at amortized cost, and includes the gains or losses from
derecognition, changes or impairment of them into current profits/losses.
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
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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
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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 has been transferred to the transferee; 3)The financial asset has been transferred, and although
the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset, it has abandoned its control over the asset.
If the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset and does not abandon its control over the asset, the involved financial
asset shall be recognized according to the level of continuous involvement of the transferred financial
asset and the relevant liabilities shall be recognized accordingly. The level of continuous involvement of
the transferred financial asset refers to the level of risk faced by the enterprise due to changes in the
value of the financial asset.
If the overall transfer of the financial asset meets the recognition conditions, the difference between the
carrying value of the transferred financial asset as well as the consideration received from the transfer
and the cumulative amount of fair value changes originally-recorded into other comprehensive incomes
shall be recorded into the current profits/losses.
If partial transfer of the financial asset meets the recognition conditions, the carrying value of the
transferred financial asset shall be apportioned at the relative fair value between the derecognition and
underecognition part. The difference between the summation of the consideration received from the
transfer and the cumulative amount of fair value changes originally-recorded into other comprehensive
incomes that should be apportioned to the derecognition part and the apportioned aforementioned
carrying value shall be recorded into the current profits/losses.
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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
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transactions happening in a fair trade. For a non-existing financial instrument in an active market, the
Company adopts the valuation technique to determine its fair value. The valuation technique includes
references to familiar situations and the prices used by the parties voluntarily participating in the recent
market transactions, as well as references to the present fair value of other financial instruments of the
same nature, discounted cash flow method and options pricing model. In the valuation, the Company
uses a valuation technique that is applicable in the current situation with sufficient data available and
other information support, chooses input values that are consistent with the asset or liability
characteristics considered by market players in related asset or liability transactions, and make
maximum effort to use related observable input values on a preferential basis. When it is unable or
unfeasible to obtain related observable input values, unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets after
the deduction of all liabilities. The Company’s issuance (including refinancing), repurchase, sale or
cancellation of equity instruments serve as the change treatment of equity. Transaction expenses
related to the equity transactions are deducted from the equity. The Company does not recognize
changes in the fair value of equity instruments.
Dividends from the Company’s equity instruments distributed during the validity (including the “interests”
from instruments classified as equity instruments) are treated as profit distribution.
(8) Impairment of financial instruments
Based on the expected credit loss, the Company treats financial assets measured at amortized cost
and debt instrument investment measured at fair value with its changes included into other
comprehensive income by impairment and recognizes the provision for loss.
Credit loss means the difference between all contract cash flow discounted at the original effective
interest rate to be received according to contracts and all contract cash flow expected to be received,
namely, the present value of all cash shortage. For a financial asset with credit impairment purchased
by or originated from the Company, it should be discounted by the effective interest rate after credit
adjustment to the financial asset.
For accounts receivable that do not contain significant financing components, the Company adopts
simplified measurement to measure loss provisions according to the amount equivalent to the expected
credit loss for the entire duration.
For a financial asset other than those using the above simplified measurement, the Company assesses
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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.
5.12 Notes 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:
Divide notes receivables into various portfolios according to common risk characteristics based on the
credit risk characteristics of acceptors and determine the accounting estimate policies of expected
credit loss：
Portfolio name Provision method
Bank acceptance bill The management evaluates that this type has low credit risk and its fixed bad
portfolio debt provision ratio is 0%.
Trade acceptance The provision for impairment is made according to the expected loss rate with
portfolio the same portfolio classification of accounts receivables
5.13 Accounts receivables
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 receivables, regardless of whether there is a significant financing component, the
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Company always measures the provision for loss based on the amount equivalent to the expected
credit loss over the entire life, and the resulting increase or reversal of provision for loss shall be
included in the current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment,
the Company shall make bad debt provision for the account receivable and recognize the expected
credit loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the accounts receivables portfolio according to credit
risk characteristics and measure the expected credit loss based on portfolios:
Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses within the
scope of consolidation, the recovery of which are 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 receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at
default and expected credit loss rate over the entire life based on the current situation and prediction of
future economic situation consulting historical credit loss experience. The comparative table of the
credit loss rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
1-2 years 10
2-3 years 20
3-4 years 40
4-5 years 80
Over 5 years 100
The ageing of accounts receivable is calculated from the month in which the amounts are actually
incurred.
5.14 Accounts receivables financing
The accounts receivables financing of the Company refer to the notes receivables measured at fair
value through other comprehensive income on the balance sheet date. For more details, see Note 5.11
Financial instruments.
5.15 Other receivables
Methods of determination and accounting treatment for expected credit losses of other receivables
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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 intercourse funds among the Company and businesses within the
scope of consolidation, the recovery of which are 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 other receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at
default and expected credit loss rate in the next 12 months or over the entire life based on the current
situation and prediction of future economic situation consulting historical credit loss experience. The
comparative table of the credit loss rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
1-2 years 10
2-3 years 20
3-4 years 40
4-5 years 80
Over 5 years 100
The ageing of other receivables is calculated from the month in which the amounts are actually
incurred.
5.16 Contract assets
The Company presents contract assets or contract liabilities on the balance sheet according to the
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relationship between the fulfillment of its contract performance obligations and its customers’ payment.
Considerations that the Company has the right to collect for commodities transferred or services
provided to customers (and such right depends on other factors than time lapses) are presented as
contract assets. The Company presents the right possessed to collect consideration from customers
unconditionally (only depending on the passing of time) as accounts receivable. Refer to “The method
of determining the expected credit loss of accounts receivables and accounting treatment method” for
the detail on the Company’s method of determining the expected credit loss of contract assets and
accounting treatment method.
5.17 Inventory
(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.
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(4) Inventory system
The Company adopts perpetual inventory system.
(5) Amortization method of packing materials and low-cost consumables
It is amortized in full at once.
5.18 Assets held for sale
(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 that the Company is unable to control, leading to the transactions
uncompleted with non-related party within one year, and the Company still commits to sale non-current
assets or disposal groups, it can continue to account for non-current assets or disposal groups as held-
for-sale: the buyer or any other party accidentally set sale extension condition. The Company has to
take action in time according to these conditions and the extension problem is expected to be solved
within one year; In rare cases, the Company has taken the necessary steps and re-satisfy the hold for
sale category condition within the first year for the new circumstances which caused it unable to
complete the sale of the non-current assets or disposal group within one year.
(2) Accounting treatment of non-current assets or disposal groups held for sale
a. Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
at balance sheet date subsequently, the impairment loss should be recognized if the book value is
higher than fair value less costs to sell at the amount of the difference of these two in profit and loss,
the provision for assets held for sale need to be recognized at the same time.
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For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date,
they shall be measured as the lower of the initial measurement amount and the net amount after
deducting the selling expenses from the fair value under the assumption that it is not divided into held-
for-sale categories at the initial measurement. Except for the non-current assets or the disposal groups
obtained in the enterprise merger, the difference caused by the non-current assets or the disposal
groups taking the net amount after the fair value minus the selling expenses as the initial measurement
amount shall be recorded into the current profit and loss.
For the impairment of disposal group, it should write off goodwill if existing, and then write down the
related assets proportionally.
Depreciation or amortization should cease for the non-current asset held for sale. Interest and other
charges on liabilities in the disposal groups held for sale continue to be recognized.
b. Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet date
increases after the fair value minus the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized after being classified as the held-for-sale
shall be reversed, and the reversed amount shall be included in the current profit and loss. The
impairment loss recognized before the classification of the held-for-sale shall not be reversed.
If the net amount of the disposal groups held for sale on the subsequent balance sheet date increases
after the fair value deducting the selling expenses, the amount previously written down shall be
reversed, and the amount of the impairment loss recognized as non-current assets after being
classified as the held-for-sale shall be reversed, and the reversed amount shall be included in the
current profit and loss. The book value of the goodwill that has been written down and the impairment
losses recognized before the classification of the held-for-sale shall not be reversed.
The subsequent reversed amount of the impairment loss recognized by the disposal groups held for
sale shall be increased in proportion to the book value of non-current assets except goodwill in the
disposal groups.
c. 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
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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.
5.19. Investments in debt obligations
N/A
5.20 Investments in other debt obligations
N/A
5.21 Long-term receivables
For more details, see Note 5.11 Financial instruments.
5.22 Long-term equity investment
(1) Judgment criteria of common control and significant influence
Common control on an agreement with other participants refers to the Company share control with
other participants on an arrangement according to relevant conventions, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.
This arrangement belongs to joint venture. Where the joint venture arrangement is made by a separate
entity and the Company is judged to have rights to the net assets of such a separate entity according to
the relevant conventions. Such a separate entity shall be regarded as a joint venture and accounted by
the equity method. If the Company is judged to be not entitled to the net assets of the separate entity
according to relevant conventions, the separate entity shall be regarded as a joint venture and the
Company shall recognize the items related to the shares of the joint venture and perform accounting
treatment in accordance with relevant accounting standards.
The term ‘significant influence’ refers to the power to participate in decision-making on the financial and
operating policies of the investee, but with no control or joint control over the formulation of these
policies. The Company judges that it has a significant impact on the invested entity through one or more
of the following situations and taking all the facts and circumstances into consideration:
a. Dispatch representatives to the board of directors or similar authorities of the investee.
b. To participate in the financial and business policy making process of the investee.
c. Significant transactions with the investee.
d. Dispatch management personnel to the investee.
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e. To provide key technical data to the investee.
(2) Determination of the initial investment cost
a. Long-term equity investment resulting from combination
Business combination under common control：
For the long-term equity investments obtained by cash paid, non-monetary assets paid or assumed
liabilities and the equity securities issued by the acquirer, on the merger date, the initial investment cost
of long-term equity investment shall be taken as the share of the owner's equity of the investee in the
book value of the final control party's consolidated financial statements. If the investee under business
combination under common control can be controlled due to additional investment or other reasons, the
initial investment cost of long-term equity investment shall be determined on the merger date according
to the share of the net assets of the investee in the book value of the final control party's consolidated
financial statements. The difference between the initial investment cost of the long-term equity
investment on the merger date and sum of the book value of the long-term equity investment before the
merger and the new consideration of acquiring shares on the merger date shall be recorded to adjust
the equity premium. If the equity premium is insufficient to be written down, the retained earnings shall
be written down.
Business combination not under common control：The Company takes the initial investment cost of
long-term equity investment as the merger cost determined on the purchase date. If the investee can be
controlled under business combination not under common control due to additional investment or other
reasons, the previous book value of the equity investment held plus the sum of the newly added
investment cost shall be taken as the initial investment cost calculated according to the cost method.
b. Long-term equity investment obtained by other means
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value as
the initial investment costs.
For the long-term equity investments acquired by the issue of equity securities, the initial investment
cost shall be the fair value of the equity securities issued.
For long-term equity investments obtained by non-monetary assets exchange, under the condition that
an exchange of non-monetary assets is of commerce nature and the fair value of assets exchanged
can be reliably measured, non-monetary assets traded in is initially stated at the fair value of the assets
traded out, unless there is conclusive evidence indicating that the fair value of the assets traded in is
more reliable; if the above conditions are not satisfied, initial investment costs of long-term equity
investments traded in shall be recognized at the book value of the assets traded out and the relevant
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taxes and surcharges payable.
For long-term equity investments obtained by debt restructuring, the Company recognizes the fair value
of shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
a. Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
long-term equity investments accounted at the cost method, except cash dividends or profits declared
but not yet distributed which are included in the actual payments or the consideration actually paid for
the investment, the cash dividends or profits declared by the investee shall be recognized as the
investment income irrespective of net profits realized by the investee before investment or after
investment.
b. Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee, the
equity method is adopted for accounting. For long-term equity investments measured at the equity
method, if the initial investment costs are higher than the investor’s attributable share of the fair value of
the investee’s identifiable net assets, no adjustment will be made to the initial costs of the long-term
equity investments; if the initial investment costs are lower than the investor’s attributable share of the
fair value of the investee’s identifiable net assets, the difference shall be recognized in current profit and
loss.
The Company shall, according to the shares of net profits and other comprehensive income realized by
the investee that shall be enjoyed or borne by the Company, recognize the profit and loss on the
investments and adjust the book value of the long-term equity investments. When recognizing the net
profits and losses and other comprehensive income of the investee that the Company shall enjoy or
bear, the Company shall make a recognition and calculation based on the net book profits and losses of
the investee after appropriate adjustments. However, where the Company is unable to obtain the
relevant information due to failure to reasonably determine the fair value of the investee’s identifiable
assets, minor difference between the investee’s identifiable assets and the book value thereof or other
reasons, the profits or losses on the investments shall be directly calculated and recognized based on
the net book profits and losses of the investee. The Company shall calculate the part distributed from
cash dividends or profits declared by the investee and correspondingly reduce the book value of the
long-term equity investments. When recognizing the income from investments in associates and joint
ventures, the Company shall write off the part of incomes from internal unrealized transactions between
the Company and associates and joint ventures which are attributable to the Company and recognize
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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.
5.23 Investment property
Measurement model of investment property
Cost model
Method of depreciation or amortization
Investment property is the property that is held to earn rent or capital appreciation or both and can be
measured and sold separately. The Company’s investment property includes land use right already rent,
land use right held for appreciation and then sold, and buildings already rent.
(1) Initial Recognition
When the Company can obtain the rental income or value-added income related to the investment
property and the cost of the investment property that can be measured reliably, the Company will
initially measure it according to the actual expenditure of purchase or construction:
The cost of the purchased investment property includes the purchase price and related taxes directly
attributable to the asset;
The cost of self-built investment property consists of the necessary expenses incurred before the asset
reaches the intended use condition;
The cost of the investment property obtained by other means shall be recognized in accordance with
relevant accounting standards.
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(2) Subsequent measurement
In general, the Company adopts the cost model to measure the follow-up expenditure of investment
property. The depreciation or amortization of investment property shall be carried out in accordance
with the accounting policies for the Company's fixed assets or intangible assets.
If there is solid evidence suggests that the investment property acquired can be measured at fair value
continuously and reliably, the Company can use fair value model for subsequent measurement. For the
investment property measured at fair value model, the Company does not provide depreciation or
amortization and adjusts its book value based on the fair value of investment property at the balance
sheet date. The difference between the fair value and book value is recorded into current profit or loss.
(3) When the Company changes the use of investment property, the relevant investment property will
be transferred to other assets.
5.24. Fixed 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 10－45 5% 9.50－2.11
method
Special Straight-line
5－35 5% 19.00－2.71
equipment
method
Universal Straight-line
4－25 5% 23.75－3.80
equipment
method
Transportation Straight-line
equipment 6 5% 15.83
method
Straight-line
Other equipment method 4－16 5% 23.75－5.94
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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.
5. 25. Construction in progress
(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
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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.
5. 26. Borrowing costs
(1) Scope of borrowing costs and its capitalization conditions
The Company’s borrowing costs capitalized during period of capitalization are relevant loan expenses
directly attributable to the assets eligible for capitalization, including interest thereon, amortization of
discounts or premiums, ancillary expenses and exchange differences incurred from foreign currency
loan, etc.
Borrowing costs are capitalized when the following three conditions are met simultaneously: ① the
asset expenditure has occurred, ② the borrowing costs have occurred, ③ the purchase and
construction activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed for
acquiring and constructing or producing assets eligible for capitalization, borrowing costs of special loan
actually incurred in the current period less the interest income of the loans unused and deposited in
bank or return on temporary investment should be recognized as the capitalization amount of borrowing
costs. As for general loans used for acquiring and constructing or producing assets eligible for
capitalization, the interest of general loans to be capitalized should be calculated by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements in excess of
special loans by the capitalization rate of used general loans. During the period of capitalization, the
capitalized amount of interest of each accounting period shall not exceed the current actual interest of
the relevant loans. Where there are discounts or premiums on loans, the amounts of interest for each
accounting period should be adjusted taking account of amortizable discount or premium amounts for
the period by effective interest method. Auxiliary expenses incurred from special loans before the
acquired or constructed assets eligible for capitalization reach the working condition for their intended
use or sale should be capitalized when they incur and charged to the costs of assets eligible for
capitalization; those incurred after the acquired or constructed assets eligible for capitalization reach the
working condition for their intended use or sale should be recognized as costs according to the
amounts incurred when they incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
For a special loan for the purchase and construction of fixed assets, the capitalization rate is the
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interest rate of the loan;
For more than one special loan for the acquisition and construction of fixed assets, the capitalization
rate is a weighted average interest rate of these loans.
(4) Capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months, the capitalization of
borrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
profit or loss for the current period, and the capitalization of borrowing costs continues when the
acquisition and construction or production activities of the asset resume.
(5) Capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets
eligible for capitalization have reached the working condition for their intended use or sale. Borrowing
costs incurred after the assets eligible for capitalization have reached the working condition for their
intended use or sale should be recognized as the current profit and loss when they incur. If parts of the
acquired and constructed or produced assets are completed separately but the assets cannot be used
or sold externally until overall completion, the capitalization of borrowing costs should cease at the time
of overall completion of the said assets.
5.27. Biological assets
N/A
5.28. Oil and gas assets
N/A
5. 29. Intangible 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.
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
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contract or agreement;
c. Expenses on the research phase of internally researched and developed intangible assets shall be
included in the current profit and loss when they incur; The expenditures incurred in the development
stage of the internal research and development projects shall be recognized as intangible assets when
the following conditions are met; otherwise, they shall be recorded into the current profit and loss when
they incur.
i. It is technically feasible to finish intangible assets for use or sale;
ii. It is intended to finish and use or sell the intangible assets;
iii. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets themselves or
the intangible assets will be used internally;
iv. It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
v. The expenditure attributable to the intangible asset during its development phase can be
measured reliably.
d. If payment of the purchase price of intangible assets can be deferred and exceeds normal credit
conditions, the purchase has the nature of finance in fact and cost of the intangible asset shall be
determined on the basis of present value of the purchase price. The difference between the amount
actually paid and the present value of the purchase price should be recorded into current profit or loss
other than those should be capitalized during the credit period.
Useful life and 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.
Impairment test
On the balance sheet date, intangible assets are valued at the lower of book value and recoverable
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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 amortisation 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.
a. It is technically feasible to finish intangible assets for use or sale;
b. It is intended to finish and use or sell the intangible assets;
c. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
d. It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
e. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
Development expenditures that have been recorded into profit and loss in previous periods are not
recognized as assets in subsequent periods. The capitalized expenditure in the development stage is
listed as development expenditure in the balance sheet, and it will be recorded into intangible assets
from the date when the project reaches its intended purpose.
5. 30. Long-term assets impairment
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
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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.
5. 31. Long-term deferred expenses
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.
5. 32. Contract liabilities
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.
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5. 33. Employee benefits
(1) Accounting treatment method of short-term benefits
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the
reporting period in which the employee provided relevant services, excluding the compensation for
employment termination. Accrued short term benefits will be recognized as liability during the
accounting period in which the employee is providing the relevant service to the Company. The liability
will be included in the current profit and loss or the relevant assets cost.
(2) Accounting treatment method of post-employment benefits
a. Defined contribution plan
The defined contribution plan of the Company includes payments of basic pension and unemployment
insurance calculated according to the local payment base and proportion. The amount shall be included
into the profit and loss or the relevant assets cost for the accounting period in which the employee
provides the service to the Company.
b. Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method, the
Company will record the benefit obligation generated by the defined benefit plan belonging to the period
during in which the employee provides the service into the current profit and loss or the relevant assets
cost.
The deficit or surplus resulting from the present value minus the fair value of the assets of a defined
benefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in the
defined benefit plan, the net assets of the defined benefit plan shall be measured at the lower of the
surplus and the upper limit of assets of the defined benefit plan.
All defined benefit plan obligations, including those expected to be paid within the twelve months
following the end of the annual reporting period in which the employee provides the service, are
discounted based on the market yield and high quality corporate bonds in an active market that match
the duration and currency of defined benefit plan obligations on the balance sheet date.
The service costs generated by the defined benefit plan and the net interest on net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or relevant assets cost;
Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan are
included in other comprehensive income and are not reversed to profit and loss in subsequent
accounting periods.
At the time of settlement of the defined benefit plan, the settlement gains or losses shall be recognized
according to the difference between the present value of the obligations of the defined benefit plan and
the settlement price determined on the settlement date.
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(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.
5. 34. Estimated liabilities
(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
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occurrence of various results within the range is same, the best estimate is determined according to the
mean of the middle value of the range, namely the mean value of the upper and lower limits.
Where there is no continuous range (or range) of required expenditures, or where there is a continuous
range but the possibility of various outcomes within the range is different, if the contingencies involve a
single item, the best estimate is determined according to the most likely amount; If the contingencies
involve more than one item, the best estimate is calculated and determined according to various
possible results and relevant probabilities.
Where all or part of the expenses required for the liquidation of the estimated liabilities of the Company
are expected to be compensated by a third party, the amount of compensation shall be recognized as
an asset when it is basically confirmed that it can be received, and the confirmed amount of
compensation shall not exceed the book value of the estimated liabilities.
5. 35. Share-based payment
(1) The type of share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-
based payment.
(2) The method of determining the fair value of equity instruments
For equity-settled share-based payment related with employees, the equity instrument is measured at
fair value. The cash-settled share-based payment shall be measured according to the fair value of the
liabilities calculated and determined on the basis of shares or other equity instruments undertaken by
the Company.
For the fair value of the stock option granted, the fair value is determined by using the stock option
pricing model, and the following factors are taken into account: the current price of the underlying
shares, the exercise price of the option, the risk-free interest rate within the period of the option, the
option life, and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercised
For the equity-settled share-based payment settled immediately after the grant, the fair value of the
equity instrument shall be included in the relevant costs or expenses on the grant date, and the capital
reserve shall be increased accordingly. Grant date means the date on which the share-payment
agreement is approved.
For the equity-settled share-based payment, in which the services during waiting period are completed
and the performance conditions are met, in return for services of employees, on each balance sheet
date during waiting period, the current obtained service shall be included in the relevant costs or
expenses and the capital reserves in accordance with the fair value of the equity instruments on the
grant date, based on best estimate of the number of vested equity instruments, and the subsequent
changes in fair value shall not be recognized. On each balance sheet date during waiting period, the
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Company makes the best estimate based on the latest available employee number change and other
subsequent information, and modifies the number of equity instruments for the estimated vesting. On
the vesting date, the final expected number of vesting instruments is the same as the actual number of
vesting instruments.
(4) Relevant accounting treatment of implement, modification and termination of share-based payment
plan
For equity-settled share-based payment, no adjustments will be made to the recognized costs and total
owners' equity after the vesting date. On the vesting date, the Company shall recognize the share
capital and the equity premium according to the exercise situation, and carry forward the capital reserve
recognized in the waiting period.
No matter how it modifies the terms and conditions of the granted equity instruments or it cancels the
granted equity instruments or its settlement, the equity instruments granted by the Company shall be
recognized at fair value on the grant date and it measures obtained the corresponding services, unless
it cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
5.36. Other financial instruments such as preferred shares and perpetual bonds
N/A
5. 37. Revenue
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: a. The customers obtain
and consume the economic profits while the Company performs the contract. b. The customers can
control the products under construction during the performance of the Company; c. The products
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produced during the performance of the Company cannot be replaced, and the Company has the right
to collect payment for the completed performance accumulated during the entire contract period.
Otherwise, the Company will identify revenue when the customers obtain control rights of the relevant
goods or services.
For the performance obligations performed within a certain period of time, the Company will apply the
input-output method to identify the appropriate performance progress based on the nature of the goods
and services. The input-output method is to identify the performance progress based on the value of the
goods that have been transferred to the customers to the customers. When the performance progress
cannot be reasonably identified and the Company's incurred costs are expected to be compensated,
the Company will identify the revenue according to the amount of the incurred costs until the
performance progress can be reasonably identified.
(2) The methods of revenue identification
The Company 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
5.38 Contract costs
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.
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If the costs incurred from contract performance fall outside the inventory or the scope of other
enterprise accounting standards and satisfy all of the following conditions, the Company will recognize
the costs for contract performance as assets: a) The costs are directly related to one existing contract
or contract that is expected to be obtained; b) The costs enrich the Company's resources for future
contract performance (including continual fulfillment); c) The costs are estimated to be recovered.
Assets recognized from costs incurred to obtain a contract and costs for contract performance
(hereinafter referred to as "assets related to contract costs") will be amortized based on the basis the
same with the income from commodities or services related to the assets, and will be recognized as
profit and loss of the current period. In case that the book value of assets related to contract costs is
higher than the difference of the two items below, the Company will set aside provisions for assets
impairment to deal with the extra part, and recognize that part as impairment losses: a) Estimated
residual consideration to be obtained from transfer of commodities or services related to the assets; b)
Estimated costs incurred from transfer of the relevant commodities or services.
5. 39. Government grants
Government grants are monetary assets and non-monetary assets acquired free of charge by the
Company from the government like fiscal subsidies.
(1) Judgment basis and accounting treatment method of government grants related to assets
Government grants related to assets are government grants that are acquired by the Company and
used for forming long-term assets through purchasing and constructing or other ways. If the
government documents do not clearly specify the target of the subsidy, the Company shall separately
explain judgment basis of classifying the government grants into the government grants related to
assets or income.
Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives
(the period of depreciation and amortization) of the relevant assets from the month of commence of
depreciation or amortization when the relevant assets reaching the intended use condition, and
included in the current profit or loss. However, government grants measured at the nominal amount
shall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income are government grants other than government grants related to
assets;
Accounting method:
a. If it is used to compensate the Company’s relevant expenses or losses in future periods, it should be
recognized as deferred income and included into the current profit and loss or written off of the related
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costs when the relevant expenses, losses are recognized.
b. If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly included
into the current profit and loss on acquisition or written off of the related costs.
c. Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for the
government grants and the Company can receive the grants.
d. Measurement of government grants
If a government grant is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government grant is a non-monetary asset, it shall be measured at its fair value; and if its
fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
5. 40. Deferred tax assets or deferred tax liabilities
The Company adopts the balance sheet liability method to account for income tax.
The Company recognizes deferred tax assets when the following conditions are met simultaneously:
i. Temporary differences are highly likely to be reversed in the foreseeable future;
ii. Taxable income that may be used to offset the deductible temporary difference is likely to be
obtained in the future and is limited to the amount of taxable income that is likely to be obtained.
On each balance sheet date, the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income, except for the income tax generated from the enterprise merger,
transactions or events directly recognized in the owner's equity.
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:
i. The enterprise has the legal right to settle the current income tax assets and current income tax
liabilities on a net basis;
ii. 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
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
liabilities on a net basis or to acquire assets and settle liabilities at the same time.
5. 41. Lease
(1) Accounting treatment with the Company as lessee
①Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as a
lessee for simplified treatment
On the beginning date of the lease term, the Company will recognise 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 recognise 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.
②Right-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.
③Lease 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
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
included in the underlying asset cost.
After the commencement of the lease term, the Company remeasures the lease liability and adjusts the
corresponding right-of-use asset, and if the carrying value of the right-of-use asset has been reduced to
zero but the lease liability is subject to further reduction, the difference is recorded in current profit or
loss: (1) When there is a change in the valuation of the purchase option, renewal option or termination
option, or actual exercise, the Company remeasures the lease liabilities at the present value of the
lease payments after the change and the revised discount rate; (2) When there is a change in the
actual fixed payment, the estimated payable of the residual value of the guarantee, the index or rate
used to confirm the lease payment, the Company calculated the present value based on the changed
lease payment amount and the original discount rate to remeasure the lease liabilities. However, where
changes in lease payments arise from changes in floating interest rates, a revised discount rate was
used to calculate the present value.
(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
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they are actually incurred.
5.42. Income tax expenses
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.
5. 43 Other significant accounting policies and accounting estimates
N/A
5. 44 Changes in significant accounting policies and accounting estimates
5.44.1. Changes in significant accounting policies
□Applicable N/A
5.44.2. Changes in significant accounting estimates
□Applicable N/A
5.44.3. Adjustments to Financial Statement Items at the Beginning of the Year of the First
Implementation of the New Accounting Standards Implemented since 2024
□Applicable N/A
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6. Taxes
6.1. Major tax types and rates
Tax type Tax base Tax rate
Value-added tax Taxable sales income 13 %, 9%, 6%
Urban maintenance and construction
Taxable turnover tax 7%
tax
Corporate income tax Taxable income 25%, 15%, 16.5%, 9%, 0%
Consumption tax (based on price) Baijiu tax price or ex-factory price 20%
Consumption tax (based on quantity) Quantity of baijiu CNY 1.00/kg
Education surcharge Taxable turnover tax 3%
Local education surcharge Taxable turnover tax 2%
Original value of the property*70%;
Property tax 1.2%, 12%
house rent
Land use tax Land area CNY 5-18.00/m2
Others According to national regulation
Tax payment subject using different corporate income tax rates, the corporate income tax rates are
as follows:
Company name Corporate income tax rate
Luzhou Pinchuang Technology Co., Ltd. 15%
Luzhou Laojiao International Development (Hong Kong)
16.5%
Co., Ltd.
Luzhou Laojiao Commercial Development (North
21%-40%
America) Co., Ltd.
Mingjiang Co., Ltd. 21%-40%
Luzhou Red Sorghum Modern Agricultural Development
Exempted from corporate income tax
Co., Ltd.
Guangxi Luzhou Laojiao Imported Liquor Industry Co.,
9%
Ltd.
Luzhou Laojiao International Trade (Hainan) Co., Ltd. 15%
6.2. Tax preferences
(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 are 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 holding subsidiary, Luzhou Pinchuang
Technology Co., Ltd., whose primary business income meet the requirements of scope and standard of
the Catalogue of Encouraged Industries in the Western Region, is paid at the rate of 15% for corporate
income tax.
(2) According to Article 27 of the Corporate Income Tax Law of the People's Republic of China and
Article 86, Item 1 of the Implementation Regulations of the Corporate Income Tax Law, companies are
exempted from enterprise income tax when they engage in agricultural, forestry, animal husbandry and
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fishery industries. The holding subsidiary of the Company, Luzhou Red Sorghum Modern Agricultural
Development Co., Ltd., is engaged in the cultivation and sale of organic sorghum and enjoys the
reduction of corporate income tax preferences.
(3) According to the Article 15, Item 1 of the Provisional Regulations on Value-Added Tax, agricultural
producers sell self-produced agricultural products exempt from value-added tax. The holding subsidiary
of the Company, Luzhou Red Sorghum Modern Agricultural Development Co., Ltd., is engaged in the
cultivation and sale of organic sorghum and enjoys the value-added tax exemption.
(4) According to the Article 3, Item 7 of the Notice on Revise of Interim Measures of Accelerating the
Development in Headquarters Economy of China-Malaysia Qinzhou Industrial Park, till 31 December
2025, the enterprises in the Qinzhou Industrial Park that enjoy 15% of tax rate of Western Development
with the half reduction in the tax period of preferential policies shall enjoy the local share of corporate
income tax exemption (namely 40% of corporate income tax was exempted, and the proportion
adjusted by the state shall be executed according to new proportion); Guangxi Luzhou Laojiao Imported
Liquor Industry Co., Ltd., the wholly-owned subsidiary of the Company, pays corporate income tax at
the rate of 9% according to the tax preference policies.
(5) According to Announcement on Preferential Corporate Income Tax Policies in Hainan Free Trade
Port (Cai Shui [2020] No. 31), the Company's wholly-owned subsidiary, Luzhou Laojiao International
Trade (Hainan) Co., Ltd., whose primary business income meet the requirements of scope and
standard of the Catalogue of Encouraged Industries in Hainan Free Trade Port, is paid at the rate of 15%
for corporate income tax.
7. Notes to the main items of the consolidated financial statements (All
currency unit is CNY, except other statements)
7.1. Cash and cash equivalents
Unit: CNY
Item Closing Balance Opening Balance
Cash 24,230.74 24,059.24
Bank deposit 36,035,910,173.93 25,916,630,894.83
Other cash and cash equivalents 64,824,385.02 35,370,137.21
Total 36,100,758,789.69 25,952,025,091.28
Including: Total deposit
106,131,260.43 93,987,202.68
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 closing balance of other monetary funds mainly consists of the remaining funds in
securities accounts of the Company in the amount of CNY 957,397.97, bank guarantee deposits of
CNY 10,000,000.00 for the subsidiary, Luzhou Laojiao Sales Co., Ltd., and the closing balance of
funds in self-owned accounts on third-party platforms for subsidiaries such as Luzhou Laojiao
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Electronic Commerce Co., Ltd. and Luzhou Laojiao Nostalgic Liquor Marketing Co., Ltd., in the
amount of CNY 53,866,987.05.
Note 3: There is no special benefit arrangement such as establishing a fund co-management account
with related parties in the current period.
Liquor and wine manufacturing companies shall disclose in detail whether there are special interest
arrangements such as establishing co-management accounts with related parties.
□Applicable N/A
7.2. Held-for-trading financial assets
Unit: CNY
Item Closing Balance Opening Balance
Financial assets measured at fair
value with their changes included into 697.84 1,426,992,098.83
current profits/losses
Including:
Wealth management products 1,426,992,098.83
Including:
Total 697.84 1,426,992,098.83
Other statements:
Note 1: The closing balance of held-for-trading financial assets decreased by CNY 1,426,991,400.99,
down 100.00% compared with the opening balance, which was mainly due to redemption of wealth
management products of collective asset management plan from securities-type companies in the
reporting period.
7.3. Accounts receivable
7.3.1. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
1
Within 1 year (including 1 year) 4,391,348.73 18,489,106.27
1-2 years 906.99
2-3 years 3,292.00 263,509.80
Over 3 years 260,217.80
Total 4,655,765.52 18,752,616.07
Note: 1. The closing book balance decreased by CNY 14,096,850.55, down 75.17% compared with
the opening book balance, which was mainly due to the impact of payment collection in overseas
baijiu sales.
2. There are no accounts receivable with significant single amount exceeding three years in age at
the end of the period.
7.3.2. Disclosure by withdrawal methods for bad debts
Unit: CNY
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
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
Account
s
receiva
ble
tested 372,217 372,217 100.00 372,217 372,217 100.00
7.99% 1.98%
for .14 .14 % .14 .14 %
impairm
ent
individu
ally
Inclu
ding:
Account
s
receiva
ble that
are not
individu
ally
material
but for
372,217 372,217 100.00 372,217 372,217 100.00
which a 7.99% 1.98%
.14 .14 % .14 .14 %
separat
e
provisio
n for
bad
debts
has
been
made
Account
s
receiva
ble
tested 4,283,5 214,222 4,069,3 18,380, 919,019 17,461,
92.01% 5.00% 98.02% 5.00%
for 48.38 .77 25.61 398.93 .95 378.98
impairm
ent by
the
portfolio
Inclu
ding:
Account
s
receiva
4,283,5 214,222 4,069,3 18,380, 919,019 17,461,
ble 92.01% 5.00% 98.02% 5.00%
48.38 .77 25.61 398.93 .95 378.98
tested
for
impairm
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
ent on
the
portfolio
with
charact
eristics
of credit
risk
4,655,7 100.00 586,439 4,069,3 18,752, 100.00 1,291,2 17,461,
Total 12.60% 6.89%
65.52 % .91 25.61 616.07 % 37.09 378.98
The category name of provision for bad debt by individual item: Provision for bad debt by individual
item
Unit: CNY
Opening Balance Closing Balance
Name Provision for Provision for
Book balance Book balance Proportion Reason
bad debt bad debt
The amount is
Beijing Secoo
not expected
Trading 372,217.14 372,217.14 372,217.14 372,217.14 100.00%
to be
Limited
recovered
Total 372,217.14 372,217.14 372,217.14 372,217.14
The category name of provision for bad debt by the portfolio: Provision for bad debt by the portfolio
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 4,283,548.38 214,222.77 5.00%
Including: within 1 year 4,282,641.39 214,132.07 5.00%
1-2 years 906.99 90.70 10.00%
Other portfolio
Total 4,283,548.38 214,222.77
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
7.3.3. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit: CNY
Changes in current period
Opening Closing
Type Reversal or
Balance Allowance Write-off Other Balance
recovery
Provision 372,217.14 372,217.14
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
allowance by
individual item
Provision
allowance by 919,019.95 -704,797.18 214,222.77
risk portfolio
Total 1,291,237.09 -704,797.18 586,439.911
Note: 1. There is no significant provision for bad debt in accounts receivable reversed or recovered in
the reporting period.
Of which significant provision for bad debt reversed or recovered in the reporting period:
There is no significant provision for bad debt in accounts receivable reversed or recovered in the
reporting period.
7.3.4. Top five entities with the largest balances of accounts receivable and contract assets
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
China Duty Free
2,217,390.08 2,217,390.08 47.63% 110,869.50
International LTD
Park Street
607,288.53 607,288.53 13.04% 30,364.43
Imports, LLC
BAIWAN WINES
582,446.47 582,446.47 12.51% 29,122.32
INC.
Beijing Secoo
372,217.14 372,217.14 7.99% 372,217.14
Trading Limited
Hangzhou
Youzan 346,108.52 346,108.52 7.44% 17,305.43
Technology Inc.
Total 4,125,450.74 4,125,450.74 88.61% 559,878.82
7.4. Accounts receivable financing
7.4.1. Accounts receivable financing listed by category
Unit: CNY
Item Closing Balance Opening Balance
Bank acceptance bill 4,088,985,516.611 5,938,171,007.93
Total 4,088,985,516.61 5,938,171,007.93
Notes: 1. The closing balance of accounts receivables financing decreased by CNY 1,849,185,491.32
or 31.14% compared with the opening balance, which was mainly due to the impact of bill
endorsement and discount, as well as remittance of bills for collection at maturity.
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7.4.2. Disclosure by withdrawal methods for bad debts
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
Including:
Provisio
n 4,088,9 4,088,9 5,938,1 5,938,1
100.00 100.00
allowan 85,516. 85,516. 71,007. 71,007.
% %
ce by 61 611 93 93
portfolio
Including:
Bank 4,088,9 4,088,9 5,938,1 5,938,1
100.00 100.00
accepta 85,516. 85,516. 71,007. 71,007.
% %
nce bill 61 61 93 93
4,088,9 4,088,9 5,938,1 5,938,1
100.00 100.00
Total 85,516. 85,516. 71,007. 71,007.
% %
61 61 93 93
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 recognised.
The category name of provision for bad debt by the portfolio: Provision for bad debt by the portfolio
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 4,088,985,516.61
Other portfolio
Total 4,088,985,516.61
7.4.3. Accounts receivable financing that have been endorsed to other parties or discounted
by the Company but have not expired at the end of the period
Unit: CNY
Item Derecognition at period-end Not derecognition at period-end
Bank acceptance bill 9,713,195,633.95
Total 9,713,195,633.951
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 derecognises bank acceptance that has been endorsed or discounted.
7.4.4. Other statements
①There was no accounts receivable financing pledge at the end of the period.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
②There are no accounts receivable financing actually written off during the reporting period.
③There are no accounts receivable financing transferred to accounts receivable due to the non-
performance of the agreements by the issuers.
7.5. Other receivables
Unit: CNY
Item Closing Balance Opening Balance
Dividend receivable 20,242,601.70
Other receivables 16,965,614.211 22,716,893.12
Total 37,208,215.91 22,716,893.12
Note: 1. Other receivables above-mentioned refer to other receivables after deducted interest
receivable and dividend receivable. 2. The closing balance of other receivables increased by CNY
14,491,322.79 or 63.79% compared with the opening balance, which was mainly due to the impact of
invested companies declaring dividend distributions.
7.5.1. Dividend receivable
7.5.1.1. Classification of dividend receivable
Unit: CNY
Item (investee) Closing Balance Opening Balance
Guotai Junan Securities Co., Ltd. 4,710,798.80
Huaxi Securities Co., Ltd. 13,641,557.20
North Chemical Industries Co., Ltd. 78,177.75
China Tourism Group Duty Free
1,812,067.95
Corporation Limited
Total 20,242,601.70
7.5.1.2. Allowance of provision for bad debt
□Applicable N/A
7.5.2. Dividend receivable
7.5.2.1. Other receivables disclosed by nature
Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds 10,998,731.39 17,537,144.37
Petty cash 796,823.67 214,206.23
Saving deposits involving contract
127,364,873.50 127,564,873.50
disputes 1
Total 139,160,428.56 145,316,224.10
Note 1: The saving deposits involving contract disputes are three deposits amounting to CNY
500,000,000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and Nanyang
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement in
contract disputes and have thus been transferred into “other receivables”. The closing balance of this
account as at the date of the statement was CNY 127,364,873.50.
7.5.2.2. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 9,867,206.30 15,696,066.07
1-2 years 131,034.15 38,347.61
2-3 years 26,880.00 293,480.00
1
Over 3 years 129,135,308.11 129,288,330.42
3-4 years 141,500.00 11,500.00
4-5 years 12,800.00 22,800.00
Over 5 years 128,981,008.11 129,254,030.42
Total 139,160,428.56 145,316,224.10
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
savings deposit of CNY 127,364,873.50, which are yet to be recovered due to contractual disputes.
7.5.2.3. Disclosure by withdrawal methods for bad debts
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 127,414 120,050 7,364,8 127,614 120,050 7,564,8
91.56% 94.22% 87.82% 94.07%
debt by ,873.50 ,000.00 73.50 ,873.50 ,000.00 73.50
individu
al item
Including:
Other
receiva
bles
that are
individu
ally
material 127,364 120,000 7,364,8 127,564 120,000 7,564,8
91.52% 94.22% 87.78% 94.07%
and for ,873.50 ,000.00 73.50 ,873.50 ,000.00 73.50
which a
separat
e
provisio
n for
bad
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
debts
has
been
made
Other
receiva
bles
that are
not
individu
ally
material
but for
50,000. 50,000. 100.00 50,000. 50,000. 100.00
which a 0.04% 0.03%
00 00 % 00 00 %
separat
e
provisio
n for
bad
debts
has
been
made
Provisio
n for
bad 11,745, 2,144,8 9,600,7 17,701, 2,549,3 15,152,
8.44% 18.26% 12.18% 14.40%
debt by 555.06 14.35 40.71 350.60 30.98 019.62
the
portfolio
Including:
Other
receiva
bles
tested
for
impairm
ent on 11,745, 2,144,8 9,600,7 17,701, 2,549,3 15,152,
8.44% 18.26% 12.18% 14.40%
the 555.06 14.35 40.71 350.60 30.98 019.62
portfolio
with
charact
eristics
of credit
risk
139,160 100.00 122,194 16,965, 145,316 100.00 122,599 22,716,
Total 87.81% 84.37%
,428.56 % ,814.35 614.21 ,224.10 % ,330.98 893.12
The category name of provision for bad debt by individual item: Provision for bad debt by individual
item
Unit: CNY
Opening Balance Closing Balance
Name Provision for Provision for
Book balance Book balance Proportion Reason
bad debt bad debt
Saving Provision
127,564,873.5 120,000,000.0 127,364,873.5 120,000,000.0
deposits 94.22% based on
0 0 0 0
involving legal opinion
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
contract
disputes
The amount is
Beijing Secoo
not expected
Trading 50,000.00 50,000.00 50,000.00 50,000.00 100.00%
to be
Limited
recovered
127,614,873.5 120,050,000.0 127,414,873.5 120,050,000.0
Total
0 0 0 0
The category name of provision for bad debt by the portfolio: Provision for bad debt by the portfolio
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 11,745,555.06 2,144,814.35 18.26%
Including: within 1 year 9,867,206.30 493,360.32 5.00%
1-2 years 131,034.15 13,103.42 10.00%
2-3 years 26,880.00 5,376.00 20.00%
3-4 years 141,500.00 56,600.00 40.00%
4-5 years 12,800.00 10,240.00 80.00%
Over 5 years 1,566,134.61 1,566,134.61 100.00%
Other portfolio
Total 11,745,555.06 2,144,814.35
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 1 January
2,549,330.98 120,050,000.00 122,599,330.98
2024
Balance of 1 January
2024 in the current
period
Allowance of the
-404,516.63 -404,516.63
current period
Balance of 30 June
2,144,814.35 120,050,000.00 122,194,814.35
2024
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
categorised based on aging portfolio. Withdrawal proportions of bad debt provision are18.26% for
Stage 1 and 94.22% for Stage 3, totalling 87.81%.
Changes of book balance with significant amount changed of loss provision in the current period
□Applicable N/A
140
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.5.2.4. Provision and recovery for bad and doubtful debt in the current period
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
Other
receivables
120,050,000.0 120,050,000.0
tested for
0 0
impairment
individually
Other
receivables
tested for 2,549,330.98 -404,516.63 2,144,814.35
impairment by
the portfolio
122,599,330.9 122,194,814.3
Total -404,516.63
8 5
Note: No bad debt provision recovered or reversed with significant amount in the current period.
7.5.2.5. Top five entities with the largest balances of the other receivables
Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Agricultural Bank
of China
Changsha
Yingxin Sub-
branch, Industrial Saving deposits
and Commercial involving 127,364,873.50 Over 5 years 91.52% 120,000,000.00
Bank of China contract disputes
Nanyang
Zhongzhou Sub-
branch and
another bank
Jingdong
Technology
Information Security deposit 405,000.00 Within 1 year 0.29% 20,250.00
Technology Co.,
Ltd.
Luzhou Aopulan
Security deposit 300,000.00 Over 5 years 0.22% 300,000.00
Beer Co., Ltd.
Petty cash of
Chen Weirong 296,442.10 Within 1 year 0.21% 14,822.11
employees
Luzhou Laojiao
Innovation
Industry Security deposit 267,996.88 Within 1 year 0.19% 13,399.84
Holdings Co.,
Ltd.
141
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Total 128,634,312.48 92.43% 120,348,471.95
7.5.2.6. Presentation in other receivables due to the centralized management of funds
Other statements:
No presentation in other receivables due to the centralized management of funds in the current period.
7.6. Prepayment
7.6.1. Aging analysis
Unit: CNY
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 175,451,123.36 95.79% 196,801,356.07 97.28%
1-2 years 3,190,069.21 1.74% 1,685,909.93 0.83%
2-3 years 697,432.75 0.38% 2,987,977.50 1.48%
Over 3 years 3,814,720.70 2.09% 833,943.20 0.41%
Total 183,153,346.02 202,309,186.70
Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There is no significant prepayment whose aging is longer than 1 year.
7.6.2. Top five entities with the largest balances of prepayment
Proportion to the total closing
Company Name Closing Balance
balance of prepayment
Shanghai Merlot Advertising Co., Ltd. 60,827,431.68 33.21%
Luzhou Western Gas Co., Ltd. 18,546,713.66 10.13%
China Travel Service Headquarters (Shanghai) 12,527,082.99 6.84%
Co., Ltd.
Luzhou Power Supply Company of State Grid 8,799,623.42 4.80%
Sichuan Electric Power Company
China Railway Chengdu Group Co., Ltd. 5,286,311.50 2.89%
Total 105,987,163.25 57.87%
7.7. Inventories
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
7.7.1. Categories of Inventories
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
142
2024 Interim Report of Luzhou Laojiao Co., Ltd.
provision of provision of
contract contract
performance performance
costs costs
112,835,009.7 112,835,009.7
Raw materials 71,952,265.35 71,952,265.35
7 7
Goods in 10,054,176,28 10,054,176,28 9,169,963,972 9,169,963,972
progress 0.96 0.96 .73 .73
Finished 2,215,459,969 2,215,459,969 2,316,583,144 2,316,583,144
goods .63 .63 .62 .62
Goods in
12,735,235.65 12,735,235.65 22,661,820.34 22,661,820.34
transit
12,354,323,75 12,354,323,75 11,622,043,94 11,622,043,94
Total
1.59 1.59 7.46 7.46
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.
7.7.2. Notes to the closing balance of inventories including capitalized borrowing expense
There was no capitalized borrowing expense in the closing balance of inventories.
7.8. Other current assets
Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 113,042,818.38 164,220,376.30
Corporate income tax 7,261,243.46 8,733,293.33
Other taxes 9,095,794.99 3,731,062.34
Total 129,399,856.83 176,684,731.97
Other statements:
The value-added tax expected to be deducted in the following fiscal period and corporate income tax
and other taxes are disclosed in other current assets.
7.9. Other equity instrument investment
Unit: CNY
Reason
for
Accumulat Accumulat assigning
Gains Losses
ive gains ive losses to
recorded recorded
recorded recorded Dividend measure
in other in other
in other in other income in fair
comprehe comprehe
Opening comprehe comprehe recognize Closing value of
Item nsive nsive
Balance nsive nsive d in Balance which
income in income in
income in income in current changes
the the
the the year included
current current
current current other
period period
period period comprehe
nsive
income
Financial According
assets to the
assigned mode of
143
2024 Interim Report of Luzhou Laojiao Co., Ltd.
to managing
measure assets by
in fair managem
value of ent layer
which
changes
included
other
comprehe
nsive
income:
Including:
According
China
to the
Tourism
mode of
Group 84,854,48 31,505,09 97,849,30 2,015,648. 53,349,39
managing
Duty Free 9.68 4.54 0.14 45 5.14
assets by
Corporatio
managem
n Limited
ent layer
According
to the
Guotai
mode of
Junan 175,241,7 15,663,40 146,859,1 4,710,798. 159,578,3
managing
Securities 15.34 6.01 52.57 80 09.33
assets by
Co., Ltd.
managem
ent layer
According
to the
Luzhou mode of
96,733,83 20,696,05 24,917,78 3,905,280. 76,037,78
Bank Co., managing
7.69 7.40 0.29 00 0.29
Ltd. assets by
managem
ent layer
Guotai According
Junan to the
Investmen mode of
22,611,83 22,611,83
t managing
4.24 4.24
Managem assets by
ent Co., managem
Ltd. ent layer
According
to the
North
mode of
Chemical 12,805,51 343,982.1 12,119,49 13,149,49
78,177.75 managing
Industries 5.44 0 7.54 7.54
assets by
Co., Ltd.
managem
ent layer
According
to the
Guojiu Big mode of
8,799,784. 1,200,215. 8,799,784.
Data Co., managing
78 22 78
Ltd. assets by
managem
ent layer
Sichuan
China
Baijiu
Golden According
Triangle to the
Brand mode of
1,846,291. 5,752,926. 1,846,291.
Operation managing
63 37 63
Developm assets by
ent Co., managem
Ltd. and ent layer
other
equity
instrument
144
2024 Interim Report of Luzhou Laojiao Co., Ltd.
investmen
ts
402,893,4 343,982.1 67,864,55 183,896,4 104,802,4 10,709,90 335,372,8
Total
68.80 0 7.95 30.40 41.73 5.00 92.95
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
China According to
Tourism the mode of
Group Duty managing
2,015,648.45 97,849,300.14
Free assets by
Corporation management
Limited layer
According to
the mode of
Guotai Junan
146,859,152.5 managing
Securities 4,710,798.80
7 assets by
Co., Ltd.
management
layer
According to
the mode of
Luzhou Bank managing
3,905,280.00 24,917,780.29
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
78,177.75 12,119,497.54
Industries Co., assets by
Ltd. management
layer
According to
the mode of
Guojiu Big managing
1,200,215.22
Data Co., Ltd. assets by
management
layer
Sichuan
China Baijiu
Golden
According to
Triangle
the mode of
Brand
managing
Operation 5,752,926.37
assets by
Development
management
Co., Ltd. and
layer
other equity
instrument
investments
145
2024 Interim Report of Luzhou Laojiao Co., Ltd.
183,896,430.4 104,802,441.7
Total 10,709,905.00
0 3
7.10. Long-term equity investments
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
1. Joint Ventures
2. Associate
Huaxi
Securi 2,535, 2,567, 4,109, 15,73 13,64 2,541, 2,567,
ties 630,3 098.8 114.6 0,380. 1,557. 828,3 098.8
Co., 72.30 0 2 32 20 10.04 0
Ltd.
Luzho
u
Laojia
o
Postd
octora
l 38,33 - 37,33
Works 9,051. 999,3 9,677.
tation 51 73.92 59
Techn
ology
Innov
ation
Co.,
Ltd.
Sichu
an
Devel
opme
5,897, 5,900,
nt 2,657.
980.8 638.5
Liquor 73
5 8
Invest
ment
Co.,
Ltd.
Sichu
an
Tongn
iang
Baijiu
Indust
ry
8,340, - 8,306,
Techn
392.9 34,05 336.7
ology
0 6.17 3
Resea
rch
Institu
te
Co.,
Ltd.
Note
146
2024 Interim Report of Luzhou Laojiao Co., Ltd.
CTS
Luzho
u
Laojia
o
Cultur
120,0 2,430, 122,4
al
47,03 140.7 77,17
Touris
5.94 8 6.72
m
Devel
opme
nt
Co.,
Ltd.
Sichu
an
Tianfu
Grana
11,70 11,73
ry 32,47
0,000. 2,478.
Liquor 8.39
00 39
Indust
ry
Co.,
Ltd.
2,708, 2,567, 11,70 5,540, 15,73 13,64 2,727, 2,567,
Subtot
254,8 098.8 0,000. 961.4 0,380. 1,557. 584,6 098.8
al
33.50 0 00 3 32 20 18.05 0
2,708, 2,567, 11,70 5,540, 15,73 13,64 2,727, 2,567,
Total 254,8 098.8 0,000. 961.4 0,380. 1,557. 584,6 098.8
33.50 0 00 3 32 20 18.05 0
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
7.11. Investment property
7.11.1. Investment property with cost measurement model
Applicable □ N/A
Unit: CNY
Buildings and Construction in
Item Land use right Total
constructions progress
I. Original cost:
1.Opening balance 47,321,613.93 9,566,480.21 56,888,094.14
2.Increase in current
16,144,408.07 1,600,293.75 17,744,701.82
period
(1) External
purchase
(2) Transfer from
inventories/fixed
16,144,408.07 1,600,293.75 17,744,701.82
assets/construction
in progress
(3) Increase from
business
combination
147
2024 Interim Report of Luzhou Laojiao Co., Ltd.
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance 63,466,022.00 11,166,773.96 74,632,795.96
II. Accumulated
depreciation and
amortization
1.Opening Balance 15,788,024.62 3,314,652.75 19,102,677.37
2.Increase in current
10,190,158.58 942,669.59 11,132,828.17
period
(1) Provision or
331,448.96 350,569.76 682,018.72
amortization
(2) Transfer from
inventories/fixed
assets/construction 9,858,709.62 592,099.83 10,450,809.45
in progress/intangible
assets
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance 25,978,183.20 4,257,322.34 30,235,505.54
III. Provision for
impairment
1.Opening Balance
2.Increase in current
period
(1) Provision
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance
IV. Book Value
1.Closing Book Value 37,487,838.80 6,909,451.62 44,397,290.42
2.Opening Book
31,533,589.31 6,251,827.46 37,785,416.77
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
7.11.2. Investment property without certification of right
Unit: CNY
Reason for not having the
Item Book value
certification of right
Buildings of the Company 13,980,921.89 In procedure
Total 13,980,921.89
148
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.12. Fixed assets
Unit: CNY
Item Closing Balance Opening Balance
1
Fixed assets 9,584,887,115.48 8,613,187,271.67
Disposal of fixed assets 10,310,732.61 36,193.79
Total 9,595,197,848.09 8,613,223,465.46
Note 1: The fixed assets listed above refer to the fixed assets deducted those disposed.
7.12.1. Details of fixed assets
Unit: CNY
Buildings and Specialized General Transportation Other
Item Total
constructions equipment equipment equipment equipment
I. Original
cost:
1.Opening 7,601,544,871 1,249,997,326 1,223,925,013 1,652,688,060 11,774,922,66
46,767,392.95
balance .04 .78 .96 .94 5.67
2.Increase in 750,804,722.9 198,702,015.2 334,524,985.6 1,333,772,957
40,763,045.20 8,978,187.96
current period 4 2 8 .00
(1) External
939,541.77 3,012,369.15 958,584.07 4,910,494.99
purchase
(2) Transfer
from 749,386,149.6 201,831,800.5 313,410,391.3 1,304,251,680
30,639,612.23 8,983,726.88
construction in 5 0 1 .57
progress
(3) Increase
from business
combination
(4) Changes
of exchange 3,590.13 3,590.13
rates
(5) Adjustment
for completion 1,418,573.29 -4,069,327.05 7,107,473.69 -5,538.92 20,156,010.30 24,607,191.31
settlement
3.Decrease in 165,564,921.0
84,021,200.68 19,439,930.27 23,149,496.44 17,881,376.62 21,072,917.05
current period 6
(1) Disposal 130,908,093.6
49,364,373.26 19,439,930.27 23,149,496.44 17,881,376.62 21,072,917.05
or retirement 4
(2) Transfer to
intangible 18,512,419.35 18,512,419.35
assets
(3) Transfer to
investment 16,144,408.07 16,144,408.07
property
4.Closing 8,268,328,393 1,429,259,411 1,241,538,562 1,966,140,129 12,943,130,70
37,864,204.29
Balance .30 .73 .72 .57 1.61
II.
Accumulated
depreciation
1.Opening 1,157,287,207 606,617,382.1 541,324,309.8 820,676,355.7 3,161,112,453
35,207,198.35
Balance .89 0 1 8 .93
2.Increase in 134,612,681.1 336,901,818.7
81,925,342.77 73,312,714.29 1,979,945.09 45,071,135.52
current period 1 8
134,612,681.1 336,899,433.6
(1) Provision 81,925,342.77 73,310,329.19 1,979,945.09 45,071,135.52
1 8
(2) Changes
2,385.10 2,385.10
of exchange
149
2024 Interim Report of Luzhou Laojiao Co., Ltd.
rates
3.Decrease in 139,770,686.5
69,391,873.23 17,051,714.62 19,345,232.04 16,106,774.63 17,875,092.06
current period 8
(1) Disposal 114,035,168.5
43,656,355.23 17,051,714.62 19,345,232.04 16,106,774.63 17,875,092.06
or retirement 8
(2) Transfer to
intangible 15,876,808.38 15,876,808.38
assets
(3) Transfer to
investment 9,858,709.62 9,858,709.62
property
4.Closing 1,222,508,015 671,491,010.2 595,291,792.0 847,872,399.2 3,358,243,586
21,080,368.81
Balance .77 5 6 4 .13
III. Provision
for impairment
1.Opening
622,940.07 622,940.07
Balance
2.Increase in
current period
(1) Provision
3.Decrease in
622,940.07 622,940.07
current period
(1) Disposal
622,940.07 622,940.07
or retirement
4.Closing
Balance
IV. Book Value
1.Closing 7,045,820,377 757,768,401.4 646,246,770.6 1,118,267,730 9,584,887,115
16,783,835.48
Book Value .53 8 6 .33 .48
2.Opening 6,443,634,723 643,379,944.6 682,600,704.1 832,011,705.1 8,613,187,271
11,560,194.60
Book Value .08 8 5 6 .67
7.12.2. Fixed assets leased out through operating lease
Unit: CNY
Item Closing book value
Buildings and constructions 21,360,483.92
Total 21,360,483.92
7.12.3. Fixed assets without certification of right
Unit: CNY
Reason for not having the
Item Book value
certification of right
The property ownership certificate
has not been processed yet for the
Buildings of the Company 19,317,091.70 historical reasons, and it plans to be
processed after gradually improving
procedures.
Buildings of the Company 218,888,350.96 In procedure
Buildings of the subsidiary-brewing
4,929,308,324.63 In procedure
company
Total 5,167,513,767.29
7.12.4. Disposal of fixed assets
Unit: CNY
150
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Item Closing Balance Opening Balance
Disposal and retirement of assets 10,310,732.61 36,193.79
Total 10,310,732.61 36,193.79
7.13. Construction in progress
Unit: CNY
Item Closing Balance Opening Balance
1
Construction in progress 561,121,727.91 1,718,468,880.53
Total 561,121,727.91 1,718,468,880.53
Note: 1. The term "construction in progress" in the above table refers to construction in progress
minus construction materials.
7.13.1. Details of the construction in progress
Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Technical
renovation of
Luzhou
1,132,704,191 1,132,704,191
Laojiao 7,114,416.08 7,114,416.08
.02 .02
Intelligent
packaging
center
Technical
renovation
project of
325,958,629.4 325,958,629.4 217,839,823.4 217,839,823.4
Luzhou
8 8 9 9
Laojiao
intelligent
brewing (I)
Technical
renovation of
Luzhou
141,773,898.9 141,773,898.9
Laojiao 104,956.18 104,956.18
7 7
Intelligent
packaging
center (II)
Project of
Luzhou
Laojiao's
Flexible 77,754,003.94 77,754,003.94 92,773,969.99 92,773,969.99
Intelligent
Filling Pilot
Line
Construction
Project of
Luzhou
3,792,600.08 3,792,600.08 1,194,002.45 1,194,002.45
Laojiao's
Strong Aroma
Baijiu
151
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Experience
Marketing
Centre
Technical
Reform
Project of
0.00 0.00 574,755.15 574,755.15
Luzhou
Laojiao's
Brewing Base
146,397,122.1 146,397,122.1 131,608,239.4 131,608,239.4
Other projects
5 5 6 6
561,121,727.9 561,121,727.9 1,718,468,880 1,718,468,880
Total
11 1 .53 .53
Notes: 1. At the end of the period, there was a decrease of CNY 1,157,347,152.62 or 67.35%, which
was mainly due to the completion and carry-forward of engineering projects.
7.13.2. Significant changes in construction in progress
Unit: CNY
Propo
rtion
Includi
of Accu
ng: Capita
Increa accu mulati
Openi Transf Closin Capita lizatio
se in Other mulati Progr ve Sourc
Budge ng er into g lized n rate
Item curren decre ve ess capital e of
t Balan fixed Balan intere for the
t ases projec (%) ized funds
ce assets ce st for period
period t input intere
the (%)
in st
period
budge
t
Techn
ical
renov
ation
projec
t of
4,782, 217,8 108,1 325,9
Luzho 19.06 25.00
509,0 39,82 18,80 58,62 Other
u % %
00.00 3.49 5.99 9.48
Laojia
o
intellig
ent
brewi
ng (I)
4,782, 217,8 108,1 325,9
Total 509,0 39,82 18,80 58,62
00.00 3.49 5.99 9.48
7.13.3. Impairment test of construction in progress
□Applicable N/A
152
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.14. Right-of-use assets
7.14.1. Details of right-of-use assets
Unit: CNY
Item Land use right Buildings and constructions Total
I. Original cost
1. Opening Balance 30,788,322.41 10,375,681.84 41,164,004.25
2. Increase in current
13,601,068.01 13,601,068.01
period
(1) Increase in leases 13,463,558.45 13,463,558.45
(2) Changes of exchange
137,509.56 137,509.56
rates
3. Decrease in current
period
(1) Lease expiration
(2) Adjustment for change
of lease term
4. Closing Balance 30,788,322.41 23,976,749.85 54,765,072.26
II. Accumulated
amortization
1. Opening Balance 10,273,916.78 7,629,132.24 17,903,049.02
2. Increase in current
1,712,319.46 2,961,727.50 4,674,046.96
period
(1) Provision 1,712,319.46 2,869,296.44 4,581,615.90
(2) Changes of exchange
92,431.06 92,431.06
rates
3. Decrease in current
period
(1) Disposal
(2) Lease expiration
(3) Adjustment for change
of lease term
4. Closing Balance 11,986,236.24 10,590,859.74 22,577,095.98
III. Provision for impairment
1. Opening Balance
2. Increase in current
period
(1) Provision
3. Decrease in current
period
(1) Disposal
4. Closing Balance
IV. Book Value
1. Closing Book Value 18,802,086.17 13,385,890.11 32,187,976.28
2. Opening Book Value 20,514,405.63 2,746,549.60 23,260,955.23
7.14.2. Impairment test of right-of-use assets
□Applicable N/A
153
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.15. Intangible assets
7.15.1. Details of intangible assets
Unit: CNY
No-patent
Computer Trademark
Item Land use right Patent right right Total
software right
technology
I. Original cost
1. Opening 3,654,960,826 3,748,480,479
1,700,050.44 89,700,887.41 2,118,716.09
Balance .00 .94
2. Increase in
21,457,756.22 20,694,749.62 1,419.45 42,153,925.29
current period
(1) Acquired
(2) Internal
developed
(3) Business
combination
(4)
Transferred
from 2,945,336.87 20,694,749.62 23,640,086.49
construction in
progress
(5) Changes
of exchange 1,419.45 1,419.45
rates
(6)
Transferred
18,512,419.35 18,512,419.35
from fixed
assets
3. Decrease in
1,811,172.75 1,811,172.75
current period
(1) Disposal 210,879.00 210,879.00
(2)
Transferred to
1,600,293.75 1,600,293.75
investment
property
4. Closing 3,674,607,409 110,395,637.0 3,788,823,232
1,700,050.44 2,120,135.54
Balance .47 3 .48
II.
Accumulated
amortization
1. Opening 309,168,468.6 350,606,688.8
960,614.13 38,581,851.65 1,895,754.45
Balance 3 6
2. Increase in
57,021,203.11 65,002.52 4,466,990.95 450.08 61,553,646.66
current period
(1) Provision 41,144,394.73 65,002.52 4,466,990.95 450.08 45,676,838.28
(2)
Transferred
15,876,808.38 15,876,808.38
from fixed
assets
3. Decrease in
802,978.83 802,978.83
current period
(1) Disposal 210,879.00 210,879.00
(2)
Transferred to
592,099.83 592,099.83
investment
property
4. Closing 365,386,692.9 411,357,356.6
1,025,616.65 43,048,842.60 1,896,204.53
Balance 1 9
III. Provision
154
2024 Interim Report of Luzhou Laojiao Co., Ltd.
for impairment
1. Opening
Balance
2. Increase in
current period
(1) Provision
3. Decrease in
current period
(1) Disposal
4. Closing
Balance
IV. Book Value
1. Closing 3,309,220,716 3,377,465,875
674,433.79 67,346,794.43 223,931.01
Book Value .56 .79
2. Opening 3,345,792,357 3,397,873,791
739,436.31 51,119,035.76 222,961.64
Book Value .37 .08
There is no proportion of intangible assets formed by internal development to the balance of
intangible assets at the period-end.
7.15.2. Land use right without certification of right
There was no land use right without certification of right at the period-end.
7.15.3. Impairment test of intangible assets
□Applicable N/A
7.16. Long-term deferred expense
Unit: CNY
Item Opening Balance Increase Amortization Other decrease Closing Balance
Improvement
expense of
960,005.91 907,521.97 297,838.99 -3,694.611 1,573,383.50
rented fixed
assets
Total 960,005.91 907,521.97 297,838.99 -3,694.61 1,573,383.50
Note: 1 Other decrease was generated from changes of exchange rates.
7.17. Deferred tax assets/ deferred tax liabilities
7.17.1. Deferred tax assets before offset
Unit: CNY
Closing Balance Opening Balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
125,341,495.27 31,205,093.75 127,079,101.68 31,572,482.83
impairment
Unrealized profits
from internal 318,838,272.52 79,709,568.13 1,533,438,058.70 383,359,514.67
transactions
155
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Impact from salary 289,324,799.75 71,711,129.14 466,715,045.27 115,258,381.83
Impact from deferred
24,919,853.01 6,229,963.25 27,772,083.74 6,943,020.94
earnings
Impact from fixed
877,478.18 144,783.90 889,943.60 233,853.09
assets depreciation
Recognition costs of
restricted shares for
171,011,503.381 41,947,773.20 460,239,659.25 112,958,934.99
equity incentive in
the vesting period
Impact from fair
value changes of
other equity 122,227,638.21 30,556,909.56 90,722,543.67 22,680,635.92
instrument
investment
Impact of income tax
from initial
2,583,092.87 622,962.00 8,994,376.39 1,422,793.65
recognition of lease
liabilities
Total 1,055,124,133.19 262,128,182.932 2,715,850,812.30 674,429,617.92
Note: 1. Deductible temporary differences of CNY 171,011,503.38 of costs and expenses recognized
during the vesting period of restricted shares for share incentives represent the estimated future pre-
tax deductible amounts based on the Company's share price less the grant price at the end of the
period.
2. The closing balance of deferred tax assets decreased by CNY 412,301,434.99 or 61.13%
compared with the opening, which was mainly due to the impact of a decrease in unrealised profits
from intra-company transactions and the reversal of restricted share lifting.
7.17.2. Deferred tax liabilities before offset
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
183,896,430.40 45,974,107.57 219,911,911.71 54,977,977.92
instrument
investment
Fair value changes
of held-for-trading 26,992,098.76 6,748,024.69
financial assets
Impact from the
policy of one-time
300,801,728.07 73,669,756.77 330,643,563.72 80,965,673.53
pre-tax deduction of
fixed assets
Impact of income tax
from initial
2,159,815.66 538,700.44 345,267.49 81,352.08
recognition of right-
of-use assets
Total 486,857,974.13 120,182,564.78 577,892,841.68 142,773,028.22
156
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.17.3. Details of unrecognized deferred tax assets
Unit: CNY
Item Closing Balance Opening Balance
Deductible losses 345,583,347.56 253,464,624.61
Credit impairment losses and asset
6,857.79 1,505.26
impairment provision
Impact from employee benefits
10,648,126.41 13,557,753.92
payable
Total 356,238,331.76 267,023,883.79
7.17.4. Deductible losses from unrecognized deferred tax assets will due on the following
years
Unit: CNY
Year Closing Amount Opening Amount Notes
The 1st year 14,491,365.44 14,491,365.44
The 2nd year 15,884,395.00 15,884,395.00
The 3rd year 8,417,566.87 8,417,566.87
The 4th year 42,092,277.59 33,125,772.28
The 5th year 264,697,742.66 181,545,525.02
Total 345,583,347.56 253,464,624.61
7.18. Other non-current assets
Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepayment
for long-term
assets such
404,267,753.9 404,267,753.9 358,900,430.1 358,900,430.1
as
9 9 3 3
engineering
equipment
and land
404,267,753.9 404,267,753.9 358,900,430.1 358,900,430.1
Total
9 9 3 3
7.19. Assets with restricted ownership or use rights
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 94,715,34 94,715,34 deposit 48,222,88 48,222,88 deposit
deposit deposit
equivalent 0.26 0.26 interest on 2.52 2.52 interest on
interest interest
s an accrual an accrual
basis basis
157
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Bank cash Bank cash
deposits deposits
Cash and
for L/G for L/G
cash 10,992,93 10,992,93 10,772,93 10,772,93
Margin and E- Margin and E-
equivalent 0.88 0.88 0.90 0.90
commerce commerce
s
platform platform
margin margin
105,708,2 105,708,2 58,995,81 58,995,81
Total
71.14 71.14 3.42 3.42
7.20. Held-for-trading financial liabilities
Unit: CNY
Item Closing Balance Opening Balance
Held-for-trading financial liabilities 9,763.87
Including:
Foreign exchange forward
9,763.87
transaction
Including:
Total 9,763.87
7.21. Accounts payable
7.21.1. Presentation of accounts payable
Unit: CNY
Category Closing Balance Opening Balance
Materials and service expense 852,178,492.50 862,772,419.35
Engineering equipment expense 1,310,643,045.14 1,494,451,313.86
Total 2,162,821,537.64 2,357,223,733.21
7.21.2. Significant accounts payable whose aging is longer than 1 year
Unit: CNY
Reason for not payment or carrying
Category Closing Balance
forward
China Construction First Group Project payment within the contract
385,213,559.89
Corporation Limited settlement period
Luzhou Branch of Zhongqi
Project payment within the contract
Construction Group Huamao Co., 21,826,780.23
settlement period
Ltd.
New Trend International Logis-Tech Equipment payment within the
38,511,260.00
Co., Ltd. contract settlement period
Shanghai Defeng Advertising Advertising payment within the
40,000,000.00
Communication Co., Ltd. contract settlement period
Total 485,551,600.12
7.22. Other payables
Unit: CNY
158
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Item Closing Balance Opening Balance
Dividend payable 7,948,733,952.60 29,684,819.82
Other payables 849,638,890.46 1,121,036,342.71
Total 8,798,372,843.06 1,150,721,162.53
7.22.1. Dividend payable
Unit: CNY
Item Closing Balance Opening Balance
Ordinary share dividends 7,924,544,913.34 29,684,819.82
Restricted share dividends 24,189,039.26
Total 7,948,733,952.60 29,684,819.82
7.22.2. Other payables
7.22.2.1. Categories by nature
Unit: CNY
Item Closing Balance Opening Balance
Security deposit 464,078,875.23 471,170,274.78
Intercourse funds 23,826,881.13 26,994,900.06
Repurchase obligations of restricted
357,638,387.98 616,743,610.59
shares
Others 4,094,746.12 6,127,557.28
Total 849,638,890.46 1,121,036,342.71
7.22.2.2. Significant other payables whose aging are longer than 1 year
Unit: CNY
Reason for not payment or carrying
Item Closing Balance
forward
Within the contract performance
Security deposits from suppliers 47,781,056.00
period
Within the contract performance
Security deposits from dealers 10,000,000.00
period
Total 57,781,056.00
7.23. Contract liabilities
Unit: CNY
Category Closing Balance Opening Balance
Within 1 year 2,314,919,334.28 2,648,369,042.14
1-2 years 11,060,497.44 11,257,914.75
2-3 years 3,373,131.37 1,537,289.68
Over 3 years 12,355,329.63 11,812,843.73
Total 2,341,708,292.72 2,672,977,090.30
Significant contract liabilities whose aging are longer than 1 year
159
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Unit: CNY
Reason for not payment or carrying
Item Closing Balance
forward
Advances from customers for goods 8,698,271.48 Within the contract settlement period
Total 8,698,271.48
7.24. Employee benefits payable
7.24.1. Employee benefits payable shown as follows
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Short-term
495,138,782.21 562,044,018.27 748,698,928.37 308,483,872.11
benefits
2. Post-employment
benefits- defined 28,718,957.67 88,167,247.76 79,600,936.00 37,285,269.43
contribution plans
3. Termination
8,971.53 474,590.00 474,590.00 8,971.53
benefits
Total 523,866,711.41 650,685,856.03 828,774,454.37 345,778,113.07
7.24.2. Short-term employee benefits payable shown as follows
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Wages, bonuses,
allowances and 441,221,793.71 461,997,422.38 646,474,886.48 256,744,329.61
grants
2. Employees’
6,078,762.75 6,078,762.75
welfare
3. Social insurance
10,323,076.28 41,296,776.99 45,685,497.68 5,934,355.59
premiums
Medical and
maternity insurance 8,947,557.56 39,590,735.72 44,409,103.91 4,129,189.37
premium
Work-related injury
1,375,518.72 1,706,041.27 1,276,393.77 1,805,166.22
insurance
4. Housing funds 5,572,651.95 40,765,989.52 38,118,506.33 8,220,135.14
5. Labor union
expenditures and
38,021,260.27 11,905,066.63 12,341,275.13 37,585,051.77
employee education
funds
Total 495,138,782.21 562,044,018.27 748,698,928.37 308,483,872.11
7.24.3. Defined contribution plan shown as follows
Unit: CNY
160
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Basic endowment
21,964,091.48 53,722,810.29 48,881,810.93 26,805,090.84
insurance premium
2. Unemployment
331,799.76 2,016,934.29 1,842,468.99 506,265.06
insurance premium
3. Enterprise annuity 6,423,066.43 32,427,503.18 28,876,656.08 9,973,913.53
Total 28,718,957.67 88,167,247.76 79,600,936.00 37,285,269.43
Other statements
The closing balance of employee benefits payable decreased by CNY 178,088,598.34 or 34.00%
compared with the opening balance, which was mainly due to the impact of the payment of
performance-based bonuses from the previous year during the current period.
7.25. Taxes payable
Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 381,740,808.96 462,528,000.24
Consumption tax 315,320,760.71 1,255,405,887.03
Enterprise income tax 828,042,348.31 998,666,442.52
Individual income tax 4,289,988.18 7,810,885.88
Urban maintenance and construction
47,741,709.28 119,493,139.70
tax
Education surcharge 20,563,701.74 51,286,192.79
Local education surcharge 13,817,168.23 34,299,228.87
Stamp duty 6,554,854.24 9,347,536.01
Land use tax 437,618.74 437,618.74
Others 361,769.00 352,601.22
Total 1,618,870,727.39 2,939,627,533.00
Other statements
The closing balance of taxes payable decreased by CNY 1,320,756,805.61 or 44.93% compared with
the opening balance, which was mainly due to the payment of taxes payable from the previous year
during the current period.
7.26. Non-current liabilities due within one year
Unit: CNY
Item Closing Balance Opening Balance
Long-term loans due within one year 25,000,000.00 25,000,000.00
Lease liabilities due within one year 8,933,959.38 5,114,015.89
Interest of long-term loans due within
7,028,936.39 7,379,478.99
one year
Interest of bonds payable due within
1,514,379,181.46 41,424,657.53
one year
Total 1,555,342,077.23 78,918,152.41
Other statements:
161
2024 Interim Report of Luzhou Laojiao Co., Ltd.
The closing balance of non-current liabilities due within one year increased by CNY 1,476,423,924.82
or 1870.83% compared with the opening balance, which was mainly due to the upcoming maturity of
the "2020 Laojiao 01" corporate bond within one year.
7.27. Other current liabilities
Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 304,419,317.46 347,485,071.57
Total 304,419,317.46 347,485,071.57
7.28. Long-term loans
7.28.1. Long-term loans
Unit: CNY
Item Closing Balance Opening Balance
Credit loans 11,015,000,000.00 10,025,300,000.00
Less: Long-term loans due within one
-25,000,000.00 -25,000,000.00
year
Total 10,990,000,000.00 10,000,300,000.00
Note to the category of long-term loans:
Other statements, including interest rate range:
Loan prime rate (LPR) - corresponding basic points (BP) for 1-year/5-year and above loan terms.
7.29. Bonds payable
7.29.1. Bonds payable
Unit: CNY
Item Closing Balance Opening Balance
Corporate bonds in 2020 (Phase I) 1,498,716,737.02
Total 1,498,716,737.02
7.29.2. Increase/decrease of bonds payable (excluding other financial instrument classified as
financial liabilities such as preferred shares and perpetual bonds)
Unit: CNY
Amor
Repa
Issue Withd tizatio
ymen
d in rawal n of
Issuin Open t in Closi
Coup Issuin the of premi Recla Defa
Bond Par Durat g ing the ng
on g curre intere um ssific ult or
name value ion amou Balan report Balan
rate date nt st by and ation not
nt ce ing ce
perio par depre
perio
d value ciatio
d
n
Corp 1,500 3.50 16 5 1,494 1,498 26,17 559,7 1,499 0.00 Not
162
2024 Interim Report of Luzhou Laojiao Co., Ltd.
orate ,000, % Marc years ,000, ,716, 8,082 04.72 ,276,
bond 000.0 h 000.0 737.0 .19 441.7
s in 0 2020 0 2 4
2020
(Phas
e I)
1,494 1,498 1,499
26,17
,000, ,716, 559,7 ,276,
Total 8,082 0.001
000.0 737.0 04.72 441.7
.19
0 2 4
Notes: 1. The closing balance of bonds payable decreased by CNY 1,498,716,737.02 or 100%
compared with the opening balance, which was mainly due to the upcoming maturity of the "2020
Laojiao 01" corporate bond within one year.
7.30. Lease liabilities
Unit: CNY
Item Closing Balance Opening Balance
Lease payment 42,242,907.33 32,472,149.33
Less: unrecognized financing cost -4,888,049.98 -5,001,728.97
Lease liabilities due within one year -8,933,959.38 -5,114,015.89
Total 28,420,897.97 22,356,404.47
7.31. Deferred income
Unit: CNY
Increase in Decrease in
Item Opening Balance Closing Balance Reason
current period current period
Reception of
Government
27,772,083.74 2,560,000.00 5,412,230.73 24,919,853.01 financial
grants
allocation
Total 27,772,083.74 2,560,000.00 5,412,230.73 24,919,853.01
Other statements:
Details:
Non-
operatin Cost
Other Relate
Increase in g reductio Other
Opening income in Closing d to
Item current income n in decreas
Balance current Balance assets/
period in current e
period income
current period
period
New mode
application
project of
Relate
digital
3,495,363.94 776,747.56 2,718,616.38 d to
workshop for
assets
solid state
baijiu
production
Construction
project of
Relate
liquor room 1,342,857.1
6,042,857.20 4,700,000.06 d to
of Luzhou 4
assets
Laojiao
brewing
163
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Non-
operatin Cost
Other Relate
Increase in g reductio Other
Opening income in Closing d to
Item current income n in decreas
Balance current Balance assets/
period in current e
period income
current period
period
technical
renovation
Luzhou
Laojiao
automatic
Relate
baijiu
785,934.06 174,652.02 611,282.04 d to
production
assets
line technical
renovation
project
Boiler
reconstructio
n project of
Relate
Luohan
5,057,142.86 632,142.86 4,425,000.00 d to
Brewing
assets
Base of
Luzhou
Laojiao
Brewing
Relate
wastewater 1,714,285.7
7,714,285.68 5,999,999.96 d to
treatment 2
assets
project
Improvement
and technical
renovation
Relate
project of 2,560,000.0
4,676,500.00 771,545.43 6,464,954.57 d to
Luzhou 0
assets
Laojiao
production
supporting
27,772,083.7 2,560,000.0 5,412,230.7 24,919,853.0
Total 4 0 3 1
7.32. Share capital
Unit: CNY
Increases/decreases in the current period (+, -)
Opening Conversion Closing
Issuance of Bonds of reserves
Balance Others Subtotal Balance
new shares share funds into
shares
Total
1,471,987,7 1,471,987,7
number of
69.00 69.00
shares
7.33. Capital reserves
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Share premium
4,205,307,212.40 410,989,045.60 4,616,296,258.00
(capital premium)
164
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Other capital
980,174,310.82 100,107,773.11 410,989,045.60 669,293,038.33
reserves
Total 5,185,481,523.22 511,096,818.71 410,989,045.60 5,285,589,296.33
Other statements, including increase/decrease and reasons thereof:
The increase of capital premium during the current period was attributed to the share premium
payment transferred back from the capital reserve-other capital reserve from the first lifting of
restricted shares.
7.34. Treasury shares
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Perform the
repurchase
616,743,610.59 257,292,487.50 359,451,123.09
obligations under the
equity incentive
Total 616,743,610.59 257,292,487.50 359,451,123.09
Other statements, including notes to increase and decrease during the reporting period and the
reasons for changes:
The closing balance of treasury shares decreased by CNY 257,292,487.50 or 41.72% compared with
the opening balance, which was mainly due to the impact of the reversal of restricted share lifting
during the period.
7.35. Other comprehensive income
Unit: CNY
Current Period
Less:
Less:
Previously
Previously
recognize Amount
Amount in recognize
d in other Amount attribute to
Opening current d in other Closing
Item comprehe Less: attribute to non-
Balance period comprehe Balance
nsive Income parent controlling
before nsive
income tax company sharehold
income income
transferre after tax ers after
tax transferre
d to tax
d to profit
retained
and loss
earnings
I. Other
comprehe
nsive
income
- -
that will 96,948,56 46,209,53
50,739,02 50,739,02
not be 3.88 7.24
6.64 6.64
reclassifie
d into
profit and
loss
Other 106,537.8 - - 7,943.08
165
2024 Interim Report of Luzhou Laojiao Co., Ltd.
comprehe 6 98,594.78 98,594.78
nsive
income
that will
not be
reclassifie
d into
profit and
loss under
equity
method
Fair
value
changes
- -
of other 96,842,02 46,201,59
50,640,43 50,640,43
equity 6.02 4.16
1.86 1.86
instrument
investmen
t
II. Other
comprehe
nsive
income - -
16,296,78 16,086,70 210,075.5
that will be 33,818,09 17,731,38
1.14 5.56 8
reclassifie 4.37 8.81
d into
profit and
loss
Including:
Other
comprehe
nsive
income
- -
that will be 15,828,97 15,828,97
36,784,19 20,955,21
reclassifie 5.10 5.10
1.34 6.24
d into
profit and
loss under
equity
method
Differ
ence from
conversio
n of
2,966,096. 467,806.0 257,730.4 210,075.5 3,223,827.
financial
97 4 6 8 43
statement
s in
foreign
currency
- -
63,130,46 210,075.5 28,478,14
Total 34,442,24 34,652,32
9.51 8 8.43
5.50 1.08
Other statements, including the adjustment of the effective gain/loss on cash flow hedges to the initial
recognized amount:
166
2024 Interim Report of Luzhou Laojiao Co., Ltd.
The closing balance of other comprehensive income decreased by CNY 34,652,321.08 or 54.89%
compared with the opening balance, which was mainly due to the impact of a decline in the fair value
of equity investments during the period.
7.36. Surplus reserves
Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Statutory surplus
1,471,987,769.00 1,471,987,769.00
reserves
Total 1,471,987,769.00 1,471,987,769.00
7.37. Undistributed profits
Unit: CNY
Item Current Period Previous Period
Undistributed profit before
33,815,566,574.75 26,772,197,213.98
adjustment at the end of the last year
Undistributed profit after adjustment
33,815,566,574.75 26,772,197,213.98
at the beginning of year
Plus: Net profit attributable to owners
of the parent company for the current 8,027,538,165.31 7,090,426,787.07
period
Ordinary share dividends payable 7,948,733,952.60 6,219,148,324.03
Plus: Other transfer in 16,215,653.21
Undistributed profits at the end of the
33,894,370,787.46 27,659,691,330.23
period
7.38. Operating revenue and cost of sales
Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 16,638,234,607.68 1,829,724,587.15 14,369,036,994.33 1,591,479,349.36
Other business 266,650,561.70 102,349,906.01 224,014,779.81 108,783,756.32
Total 16,904,885,169.38 1,932,074,493.16 14,593,051,774.14 1,700,263,105.68
Details:
Unit: CNY
Segment 1: Baijiu sales Total
Contract category
Operating revenue Cost of sales Operating revenue Cost of sales
Commodity type
Including:
Medium and high
15,213,367,295.49 1,177,762,665.64 15,213,367,295.49 1,177,762,665.64
grade baijiu
167
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Other baijiu 1,625,224,060.49 733,344,920.01 1,625,224,060.49 733,344,920.01
By operating
segment
Including:
Domestic 16,744,963,428.84 1,897,692,734.64 16,744,963,428.84 1,897,692,734.64
Outbound 93,627,927.14 13,414,851.01 93,627,927.14 13,414,851.01
Market or customer
type
Including:
Contract type
Including:
Commodity sales
16,838,591,355.98 1,911,107,585.65 16,838,591,355.98 1,911,107,585.65
contract
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 16,838,591,355.98 1,911,107,585.65 16,838,591,355.98 1,911,107,585.65
Other statements
The Company's main business is the production and sale of baijiu. Revenue is recognised at the point
when the Company transfers control of the relevant goods to the customer and fulfils 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 2,333,010,021.24 at the period-end, among which
CNY 2,333,010,021.24 was expected to be recognized in 2024, CNY XXX in XXX and CNY XXX in
XXX.
7.39. Business taxes and surcharges
Unit: CNY
Item Current Period Previous Period
Consumption tax 1,569,134,676.20 1,203,032,837.64
Urban maintenance and construction
234,395,139.08 187,840,939.62
tax
Educational surcharge 101,935,040.80 80,502,780.15
Property tax 38,124,428.64 39,107,945.82
Land use tax 16,728,210.45 17,656,012.34
Stamp duty 14,952,384.57 12,043,066.53
Local education surcharge 67,956,693.84 53,668,728.47
Others 150,460.39 106,664.38
Total 2,043,377,033.97 1,593,958,974.95
168
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.40. General and administrative expenses
Unit: CNY
Item Current Period Previous Period
Employee compensation 245,671,985.85 234,498,550.74
Depreciation and amortization 55,441,149.62 56,042,880.60
Management fee and service
30,508,690.11 27,605,235.72
expense
Others 173,072,349.73 221,732,574.25
Total 504,694,175.31 539,879,241.31
7.41. Selling and distribution expenses
Unit: CNY
Item Current Period Previous Period
Advertising promotion expense 771,086,934.79 585,741,219.56
Promotion expense 465,935,051.00 486,391,918.30
Employee compensation 212,055,575.40 210,781,737.74
Storage and logistics costs 81,048,424.07 95,488,340.44
Others 100,167,038.41 84,793,614.57
Total 1,630,293,023.67 1,463,196,830.61
7.42. Research and development expenses
Unit: CNY
Item Current Period Previous Period
Comprehensive research and
75,028,702.85 62,914,698.99
development expenses
Total 75,028,702.85 62,914,698.99
7.43. Financial expenses
Unit: CNY
Item Current Period Previous Period
Interest expenses 266,707,454.54 261,543,693.36
Less: Interest income 391,537,705.76 384,116,432.10
Losses from currency exchange -1,947,832.81 -5,091,874.65
Handling charges 1,979,786.54 1,233,960.31
Amortization of unrecognized
523,544.94 646,861.65
financing costs
Total -124,274,752.55 -125,783,791.43
7.44. Other income
Unit: CNY
Item Current Period Previous Period
Government grants 18,852,624.09 21,166,337.88
Other refund 2,526,666.45 2,229,602.28
Total 21,379,290.54 23,395,940.16
169
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.45. Gain on changes in fair value
Unit: CNY
Item Current Period Previous Period
Held-for-trading financial assets 33,247,170.87 32,781,678.42
Held-for-trading financial liabilities 9,796.97
Total 33,256,967.84 32,781,678.42
7.46. Investment income
Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under the equity 14,536,085.02 70,278,286.49
method
Investment income gained during the
period of holding held-for-trading 20,065,193.40 2,391,009.80
financial assets
Investment income from disposal of
-29,871,256.97 5,057,632.10
held-for-trading financial assets
Dividend income gained during the
period of holding other equity 10,709,905.00 7,297,266.16
instrument investment
Investment losses from foreign
-17,362.71
exchange forward transaction
Total 15,422,563.74 85,024,194.55
Other statements:
Note 1: There is no major restriction on the repatriation of the Company's investment income.
Note 2: The investment income for the current period decreased by CNY 69,601,630.81 or 81.86%
compared with the same period in the previous year, which was mainly due to the impact of a decline
in the profitability of the invested unit, Huaxi Securities Co., Ltd.
Including: investment income from long-term equity investments under the equity method:
Item Current Period Previous Period
Huaxi Securities Co., Ltd. 4,109,114.62 54,493,747.57
Luzhou Laojiao Postdoctoral Workstation Technology Innovation
-499,830.20
Co., Ltd. -999,373.92
Sichuan Development Liquor Investment Co., Ltd. 2,657.73 5,159.39
Sichuan Tongniang Baijiu Industry Technology Research
-34,056.17 6,025.99
Institute Co., Ltd.
CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. 11,068,257.58 16,273,183.74
Sichuan Tianfu Granary Liquor Industry Co., Ltd. 389,485.18
Total 14,536,085.02 70,278,286.49
Including: dividend income gained during the period of holding other equity instrument investment:
Item Current Period Previous Period
North Chemical Industries Co., Ltd. 78,177.75 78,177.75
170
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Guotai Junan Securities Co., Ltd. 4,710,798.80 6,241,808.41
Luzhou Bank Co., Ltd. 3,905,280.00
China Tourism Group Duty Free Corporation Limited 2,015,648.45 977,280.00
Total 10,709,905.00 7,297,266.16
7.47. Credit impairment loss
Unit: CNY
Item Current Period Previous Period
Bad debt loss of accounts receivable 704,797.18 -489,912.75
Bad debt loss of other receivables 404,516.63 620,074.69
Total 1,109,313.81 130,161.94
7.48. Gains from disposal of assets
Unit: CNY
Item Current Period Previous Period
Gains from disposal of non-current
1,058,795.10 -477,479.38
assets
Including: Gains from disposal of
1,058,795.10 223,832.22
fixed assets
Gains from disposal of intangible
-875,599.70
assets
Gains from disposal of use right
174,288.10
assets
Total 1,058,795.10 -477,479.38
7.49. Non-operating income
Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Compensation for default 7,708,473.69 2,393,459.62 7,708,473.69
Gains from damage
retirement of non-current
assets
Others 856,276.18 12,086,059.36 856,276.18
Total 8,564,749.87 14,479,518.98 8,564,749.87
7.50. Non-operating costs
Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Donation 3,617,355.00 4,171,120.00 3,617,355.00
Losses from damage
retirement of non-current 3,177,543.69 1,164,068.35 3,177,543.69
assets
Others 868,760.23 1,637,398.60 868,760.23
171
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Total 7,663,658.92 6,972,586.95 7,663,658.92
7.51. Income tax expense
7.51.1. Statement of income tax expense
Unit: CNY
Item Current Period Previous Period
Current period income tax 2,463,970,373.02 2,041,614,849.97
Deferred income tax 406,591,115.54 343,744,666.15
Total 2,870,561,488.56 2,385,359,516.12
7.51.2. Adjustment for accounting profit and income tax expense
Unit: CNY
Item Current Period
Total profit 10,916,820,514.95
Income tax expenses determined by statutory/applicable
2,729,205,128.74
tax rate
Impact from subsidiaries’ different tax rates -119,188.46
Impact from adjust for impact from income tax expense in
88,560,931.51
previous period
Impact from non-taxable income -12,313,396.55
Impact from non-deductible costs, expenses and losses 1,888,330.89
Impact from deductible temporary difference or losses
17,188,300.70
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 53,837,666.14
less than the recognized cost and expenses
Deduction impact of research and development costs -7,686,284.41
Income tax expense 2,870,561,488.56
Other statements
Note: The income tax rate details are provided in Note 6. Taxes.
7.52. Other comprehensive income
Details in Note 7.35. Other comprehensive income.
7.53. Notes to the statement of cash flow
7.53.1. Cash related to operating activities
Cash received from other operating activities
Unit: CNY
Item Current Period Previous Period
Recovery of saving deposits
200,000.00 332,468.26
involving contract disputes
172
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Government grants 16,005,375.97 16,936,068.82
Interest income from bank deposit 335,265,300.54 385,402,604.30
Others 103,140,673.60 56,582,439.60
Total 454,611,350.11 459,253,580.98
Cash paid for other operating activities
Unit: CNY
Item Current Period Previous Period
Cash paid for expenses 1,392,511,609.29 1,185,339,540.00
Cash paid to E-commerce platform
465,085.80
as security deposit
Total 1,392,976,695.09 1,185,339,540.00
7.53.2. Cash related to investing activities
Cash received from significant investing activities
Unit: CNY
Item Current Period Previous Period
Recovering the principal invested in
2,060,000,000.00 1,100,000,000.00
held-for-trading financial assets
Total 2,060,000,000.00 1,100,000,000.00
Cash paid for other investing activities
Unit: CNY
Item Current Period Previous Period
Loss on forward exchange settlement 17,362.71
Total 17,362.71
Cash paid for significant investing activities
Unit: CNY
Item Current Period Previous Period
Cash paid for purchasing long-term
344,186,871.61 578,623,738.47
assets
Cash paid for purchasing held-for-
660,000,000.00 200,000,000.00
trading financial assets
Total 1,004,186,871.61 778,623,738.47
7.53.3. Cash related to financing activities
Cash paid for other financing activities
Unit: CNY
Item Current Period Previous Period
Cash paid for rent of right-of-use
4,291,469.02 1,117,175.97
assets
Cancellation of residual net assets
enjoyed by minority shareholders by 4,887,500.00
subsidiaries
Cash paid for repurchasing restricted
1,812,735.11
shares
Registration fee for equity incentive
92.67
stocks
173
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Total 10,991,704.13 1,117,268.64
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
10,032,679,47 2,000,000,000 1,017,679,478 11,022,028,93
long-term 7,028,936.39
8.99 .00 .99 6.39
loans due
within one
year)
Bonds
payable
(including
1,540,141,394 1,514,379,181
bonds 26,737,786.91 52,500,000.00
.55 .46
payable due
within one
year)
Lease
liabilities
(including
27,470,420.36 14,246,628.95 4,291,469.02 70,722.94 37,354,857.35
lease liabilities
due within one
year)
Other
payables
(Repurchase 616,743,610.5 257,292,487.5 357,638,387.9
1,812,735.11
obligations of 9 0 8
restricted
shares)
12,217,034,90 2,000,000,000 1,076,283,683 257,363,210.4 12,931,401,36
Total 48,013,352.25
4.49 .00 .12 4 3.18
7.54. Supplementary information to statement of cash flow
7.54.1. Supplementary information to statement of cash flow
Unit: CNY
Item Current Period Previous Period
1. Reconciliation of net profit to cash
flow from operating activities:
Net profit 8,046,259,026.39 7,121,624,625.63
Plus: Provision for asset impairment -1,109,313.81 -130,161.94
Depreciation of fixed asset, oil and
gas assets and productive biological 336,899,433.68 291,902,202.19
assets
Depreciation of right-of-use assets 4,581,615.90 5,971,160.71
Amortization of intangible assets 45,676,838.28 39,210,901.13
Amortization of long-term deferred 297,838.99 262,861.76
174
2024 Interim Report of Luzhou Laojiao Co., Ltd.
expense
Losses from disposal of fixed assets,
intangible assets and other long-term -1,058,795.10 477,479.38
assets (Gains use “-”)
Losses from retirement of fixed
assets (Gains use “-”)
Losses from change in fair value
-33,256,967.84 -32,781,678.42
(Gains use “-”)
Financial expenses (Gains use “-”) -124,274,752.55 -125,783,791.43
Losses on investments (Gains use “-
-15,422,563.74 -85,024,194.55
”)
Decrease in deferred income tax
420,177,708.63 350,308,835.48
assets (Increase uses “-”)
Increase in deferred income tax
-13,586,593.09 -6,554,217.73
liabilities (Decrease uses “-”)
Decrease in inventories (Increase
-732,279,804.13 -953,413,761.15
use “-”)
Decrease in operating receivables
1,934,769,539.42 1,792,662,781.41
(Increase use “-”)
Increase in operating payables
-1,642,612,998.46 -2,750,972,245.43
(Decrease use “-”)
Others
Net cash flows from operating
8,225,060,212.57 5,647,760,797.04
activities
2. Significant investing and financing
activities not involving cash:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets under financing lease
3.Net change in cash and cash
equivalents:
Closing balance of cash 35,995,050,518.55 30,311,535,608.00
Less: Opening balance of cash 25,893,029,277.86 17,729,006,591.87
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net change in cash and cash
10,102,021,240.69 12,582,529,016.13
equivalents
7.54.2. Composition of cash and cash equivalent
Unit: CNY
Item Opening Balance Closing Balance
1. Cash 35,995,050,518.55 25,893,029,277.86
Including: Cash on hand 24,230.74 24,059.24
Unrestricted bank deposit 35,941,194,833.67 25,868,408,012.31
Other unrestricted cash
53,831,454.14 24,597,206.31
and cash equivalents
3. Closing balance of cash and cash
35,995,050,518.55 25,893,029,277.86
equivalents
175
2024 Interim Report of Luzhou Laojiao Co., Ltd.
7.54.3. Monetary funds not classified as cash and cash equivalents
Unit: CNY
Item Current Period Previous Period Reason
Other monetary funds 10,000,000.00 10,000,000.00 Bank cash deposits for L/G
Provision for fixed deposit
Bank deposit 94,715,340.26 21,982,447.95
interest on an accrual basis
Bank deposit 957,482.18 Frozen fund by the court
Restricted cash deposit in
Other monetary funds 992,930.88
E-commerce platforms
Total 105,708,271.14 32,939,930.13
7.55. Notes to items of the statements of changes in owners' equity
Notes to the name of “Other” of closing balance at the end of the previous year adjusted and the
amount adjusted:
N/A
7.56. Foreign currency transactions
7.56.1. Foreign currency transactions
Unit: CNY
Closing Balance in Foreign
Item Exchange Rate Closing Balance in CNY
Currency
Cash at Bank and on Hand 328,017,727.44
Including: USD 45,673,494.25 7.1268 325,505,858.82
EUR 328.05 7.6617 2,513.42
HKD 2,747,269.70 0.91268 2,507,378.11
GBP 39.94 9.0430 361.18
AUD 339.12 4.7650 1,615.91
Accounts Receivable 3,324,013.13
Including: USD 12,241.72 7.1268 87,244.29
EUR
HKD 3,546,444.36 0.91268 3,236,768.84
Long-term Loans
Including: USD
EUR
HKD
Other Receivables 161,678.92
Including: HKD 177,147.43 0.91268 161,678.92
Accounts Payable 556,441.94
Including: USD 7,655.50 7.1268 54,559.22
HKD 549,899.99 0.91268 501,882.72
Other Payables 10,977,566.24
Including: HKD 12,027,836.96 0.91268 10,977,566.24
Non-current liabilities due
4,060,570.25
within one year
Including: USD 65,549.25 7.1268 467,156.39
176
2024 Interim Report of Luzhou Laojiao Co., Ltd.
HKD 3,937,124.86 0.91268 3,593,413.86
Lease liabilities 7,031,357.55
Including: USD 111,964.84 7.1268 797,951.02
HKD 6,829,783.20 0.91268 6,233,406.53
7.56.2. Description of the foreign business entity, including the important foreign business
entity, shall disclose its main foreign business place, bookkeeping standard currency and
selection basis, and shall also disclose the reason for the change of the bookkeeping
standard currency
Applicable □ N/A
Bookkeeping
Company Operation site Choosing Reason
currency
Luzhou Laojiao International Development Currency in the registration
Hong Kong, China HKD
(Hong Kong) Co., Ltd. place
Luzhou Laojiao Commercial Development Currency in the registration
USA USD
(North America) Co., Ltd. place
Currency in the registration
Mingjiang Co., Ltd. USA USD
place
7.57. Lease
7.57.1. The Company as lessee
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 recognised. Short-term leases accounted for as expenses in the current period
are listed below:
Item H1 2024 H1 2023
Short-term lease expenses recognised as current profit or loss in the
4,675,941.94 4,541,156.32
current period using the simplified approach
Total cash outflows related to leases 8,967,410.96 5,658,332.29
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
N/A
7.57.2. The Company as lessor
Operating leases with the Company as lessor
Applicable □ N/A
Unit: CNY
177
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Of which: income related to variable
Item Rental income lease payments not included in lease
receipts
Income from rental of buildings,
4,992,164.05
equipment, etc.
Total 4,992,164.05
Finance leases with the Company as lessor
□Applicable N/A
Undiscounted lease receipts for each of the next five years
□Applicable N/A
7.57.3. Recognition of gain or loss on sales under finance leases with the company as a
manufacturer or dealer
□Applicable N/A
7.58. Others
N/A
8. Research and Development Expenditure
Unit: CNY
Item Current Period Previous Period
Material consumption 17,183,933.44 10,105,796.74
Research and development and
11,932,469.05 11,490,697.53
technical services
Share payment expense 6,131,957.28 8,193,497.76
Other indirect costs 39,780,343.08 33,124,706.96
Total 75,028,702.85 62,914,698.99
Of which: Expensed research and
75,028,702.85 62,914,698.99
development expenditure
9. Changes in consolidated scope
9.1. Business combination not under common control
9.1.1. Business combination not under common control during current period
There is no business combination not under common control during current period.
9.2. Business combination under common control
9.2.1. Business combination under common control during current period
There is no business combination under common control during current period.
178
2024 Interim Report of Luzhou Laojiao Co., Ltd.
9.3. Reverse purchase
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.
9.4. Disposing subsidiaries
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
9.5. Consolidated scope changes due to other reasons
Explain other reasons for changing consolidated scope (such as establishing a new subsidiary,
liquidating a subsidiary) and its related situation:
No
9.6. Other
No
10. Interests in other entities
10.1. Interests in subsidiaries
10.1.1. Group composition
Unit: CNY
Major Shareholding Proportion
Name of Registered Place of Nature of Acquisition
business
Subsidiaries capital registration business Direct Indirect method
location
Luzhou
Baijiu
Laojiao 310,500,00
Luzhou Luzhou manufactur 100.00% Investment
Brewing 0.00
e and sales
Co., Ltd.
Luzhou Red
Business
Sorghum Agricultural
combination
Modern 10,000,000. product
Luzhou Luzhou 60.00% under
Agricultural 00 planting and
common
Developme sales
control
nt Co., Ltd.
Luzhou
Laojiao 100,000,00
Luzhou Luzhou Baijiu sales 100.00% Investment
Sales Co., 0.00
Ltd.
179
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou
Laojiao
Nostalgic 5,000,000.0
Luzhou Luzhou Baijiu sales 100.00% Investment
Liquor 0
Marketing
Co., Ltd.
Luzhou
Laojiao
Selected
10,000,000.
Supply Luzhou Luzhou Baijiu sales 100.00% Investment
00
Chain
Manageme
nt Co., Ltd.
Guangxi
Luzhou
Laojiao Red wine
10,000,000.
Imported Qinzhou Qinzhou production 100.00% Investment
00
Liquor and sales
Industry
Co., Ltd.
Luzhou
Dingli
5,000,000.0
Liquor Luzhou Luzhou Baijiu sales 100.00% Investment
0
Industry
Co., Ltd.
Luzhou
Laojiao
Qiankun
Cheteau 5,000,000.0
Luzhou Luzhou Baijiu sales 100.00% Investment
Custom 0
Liquor
Sales Co.,
Ltd.2
Luzhou
Laojiao
5,000,000.0
New Liquor Luzhou Luzhou Baijiu sales 100.00% Investment
0
Industry
Co., Ltd.
Luzhou Liquor
3,000,000.0
Laojiao I & Luzhou Luzhou import and 100.00% Investment
0
E Co., Ltd. export trade
Luzhou
Laojiao
Boda Liquor 120,000,00
Luzhou Luzhou Baijiu sales 75.00% Investment
Industry 0.00
Marketing
Co., Ltd.
Luzhou
Laojiao
50,000,000. Fruit wine
Fruit Wine Luzhou Luzhou 41.00% Investment
00 sales
Industry
Co., Ltd.
Mingjiang
6,000,000.0
Co., Ltd. America America Baijiu sales 54.00% Investment
0
(USD)
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
10,000.00 Hong Kong Hong Kong Liquor sales 55.00% Investment
Laojiao
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Internationa
l
Developme
nt (Hong
Kong) Co.,
Ltd. (HKD)
Luzhou
Laojiao
Commercial
Business
Developme
500,000.00 America America developmen 100.00% Investment
nt (North
t
America)
Co., Ltd.
(USD)
Luzhou
Laojiao
60,000,000.
Electronic Luzhou Luzhou Liquor sales 90.00% Investment
00
Commerce
Co., Ltd.
Luzhou
Laojiao
Whitail 10,000,000.
Luzhou Luzhou Liquor sales 35.00% Investment
Liquor 00
Industry
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 sales
control
Co., Ltd.
Luzhou Business
Laojiao combination
5,000,000.0 Health care
Health Luzhou Luzhou 100.00% under
0 liquor sales
Sales Co., common
Ltd. control
Luzhou
Laojiao 50,000,000.
Luzhou Luzhou Baijiu sales 40.00% 60.00% Investment
New Retail 00
Co., Ltd.
Luzhou
Technology
Laojiao
500,000,00 developmen
Technology Chengdu Chengdu 40.00% 60.00% Investment
0.00 t and
Innovation
service
Co., Ltd.
10.1.2. Important non-wholly-owned subsidiaries
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% 22,346,879.34 84,190,751.63
Marketing Co., Ltd.
10.1.3. Major financial information of important non-wholly-owned subsidiaries
Unit: CNY
Name Closing Balance Opening Balance
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of Non- Non-
subsid Non- Curre Non- Curre
Curre curren Total Curre curren Total
iary curren Total nt curren Total nt
nt t liabiliti nt t liabiliti
t assets liabiliti t assets liabiliti
assets liabiliti es assets liabiliti es
assets es assets es
es es
Luzho
u
Laojia
o
Boda
487,2 487,2 150,4 150,4 569,3 569,3 322,0 322,0
Liquor
11,86 11,86 48,86 48,86 77,54 77,54 02,05 02,05
Indust
7.70 7.70 1.19 1.19 4.62 4.62 5.47 5.47
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
644,192,6 89,387,51 89,387,51 1,123,016. 175,125,5 23,848,57 23,848,57 22,046,02
Liquor
36.94 7.36 7.36 74 21.07 6.35 6.35 3.55
Industry
Marketing
Co., Ltd.
10.1.4. Significant restrictions on using the assets and liquidating the liabilities of the
Company
N/A
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10.1.5. Financial support or other supports provided to structural entities incorporated into the
scope of consolidated financial statements
N/A
10.2. The transaction of the company with its owner's equity share changing but
the company still controls the subsidiary
10.2.1. Note to the owner's equity share changed in subsidiary
N/A
10.2.2. The transaction’s influence on the equity of non-controlling interests and the owner's
equity attributable to the company as the parent
N/A
10.3. Interests in joint ventures and associates
10.3.1. Important joint ventures and associates
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.
Notes to holding proportion in joint venture or associated enterprise different from voting proportion:
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.
10.3.2. Major financial information of important associates
Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Huaxi Securities Co., Ltd. Huaxi Securities Co., Ltd.
Current assets 77,603,293,812.01 80,257,215,749.71
Non-current assets 6,587,840,741.53 8,633,260,818.24
Total assets 84,191,134,553.54 88,890,476,567.95
Current liabilities 42,438,842,428.27 47,013,859,718.97
Non-current liabilities 18,882,548,369.66 19,074,441,893.35
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Total liabilities 61,321,390,797.93 66,088,301,612.32
Non-controlling shareholder interest 15,704,631.42 17,277,841.64
Shareholder interest attributable to
22,854,039,124.19 22,784,897,113.99
parent company
Share of net assets calculated based
2,376,166,376.21 2,363,882,349.03
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
2,541,828,310.04 2,535,630,372.30
associate companies
Fair value of equity investments in
associate companies that have public 1,797,957,238.96 2,117,169,677.44
quote
Operating revenue 1,413,115,470.65 2,021,251,360.10
Net profit 37,975,534.90 522,815,192.43
Net profit from discontinued
operation
Other comprehensive income 160,843,265.08 22,891,885.56
Total comprehensive income 198,818,799.98 545,707,077.99
Dividends from associate companies
0.00 0.00
this year
10.3.3. Financial information summarized of unimportant joint ventures and associate
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 185,756,308.01 172,624,461.20
Total following items calculated on
the basis of shareholding proportion
--Net profit -4,006,494.78 2,204,555.93
-- Total comprehensive income -4,006,494.78 2,204,555.93
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co., Ltd., Sichuan Development Liquor Investment Co., Ltd., Sichuan Tongniang Baijiu
Industry Technology Research Institute Co., Ltd., Sichuan Tianfu Granary Liquor Industry Co., Ltd.
and CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd.
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10.3.4. Notes to the significant restrictions on the ability of joint ventures or associate
companies to transfer funds to the Company
None
10.3.5. The excess loss of joint ventures or associate companies
None
10.3.6. The unrecognized commitment related to investment to joint ventures
None
10.3.7. Contingent liabilities related to investment to joint ventures or associate companies
None
11. Government grants
11.1. Government grants recognized at the end of the reporting period at the
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
11.2. Liability items involving government grants
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 27,772,083. 2,560,000.0 5,412,230.7 24,919,853. Related to
income 74 0 3 01 assets
27,772,083. 2,560,000.0 5,412,230.7 24,919,853.
Total
74 0 3 01
11.3. Government grants recognized as current profit or loss
Applicable □ N/A
Unit: CNY
Item Amount in current period Amount in previous period
Other income 18,852,624.09 21,166,337.88
Non-operating revenue
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Total 18,852,624.09 21,166,337.88
Other statements:
The detailed list of liability items related to government grants can be found in Note 7.31.2.
The specific details of government grants included in current profit or loss are provided in Note 7.44.
12. Risks related to financial instruments
12.1. Various types of risks arising from financial instruments
The Company's primary financial instruments include monetary capital, trading financial assets,
accounts receivable, receivables financing, receivables other than tax refundable, other equity
instruments, held-for-trading financial liabilities, bills payable, accounts payable, other payables, lease
liabilities, some other current liabilities and loans. A detailed description of each financial instrument is
set out in Note V and notes to the Consolidated Financial Statement.
Risks related to these financial instruments, and risk management policies the Company has adopted
to reduce these risks are described as follows. The Company management manages and monitors the
risk exposure to ensure the above risks are controlled in a limited scope.
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk variable
rarely changes in isolation, and the correlation between variables will have a significant effect on the
final impact amount of the change of a risk variable, the following content is based on the assumption
that the change of each variable is independent.
Risk management objective: The Company strikes an appropriate balance between risk and return, and
strives to minimize the negative impact of risk on the Company's operating performance and maximize
the interests of shareholders and other equity investors.
Risk management policy: The Board of Directors shall be responsible for planning and establishing a
risk management framework, formulating risk management policies and related guidelines, and
supervising the implementation of risk management measures. The Risk Management Committee shall
carry out risk management through close collaboration (including the identification, evaluation and
avoidance of relevant risks) with other business units of the Company in accordance with the policies
approved by the Board of Directors. The internal audit department shall conduct regular audits on risk
management controls and procedures and report the results to the Audit Committee.
The Company has formulated risk management policies to identify and analyze the risks it faces,
clarifying specific risks and covering many aspects such as credit risk, liquidity risk and market risk
management. On a regular basis, the Company evaluates the specific marketing environment and
various changes in the Company's business operations to determine whether any risk management
policy and system should be updated. The Company diversifies the risks to financial instruments
through appropriately diversified investments and business portfolios, and reduces the risk of
concentration in any single industry, specific geographic area or specific counterparty by formulating
appropriate risk management policies.
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12.1.1. Credit risk
Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations,
causing financial losses to the other party. The Company only trades with recognized, reputable, and
large third parties. In accordance with the Company's policy, the terms of sale with customers are
based on transactions of payment before delivery, with only a small amount of credit transactions, and
credit review for all customers who require credit to trade. In addition, the Company continuously
monitors and controls the balance of the receivables to ensure that the Company does not face
significant bad debt risks. In addition, the Company makes full provision for expected credit losses at
each balance sheet date based on the collection of receivables. Therefore, the Company's
management believes that the Company's credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of working
capital is low.
The Company's risk exposures are spread across multiple contract parties and customers in multiple
geographies, with customers in the commerce industry in addition to the alcohol distribution industry
(the main industry). No systemic risk has been identified in the relevant industries. Therefore, the
Company has no significant credit concentration risk. As at 30 June 2024, the balance of the top five
customers of the Company's accounts receivable amounted to CNY 4,125,500, accounting for 88.61%
of the balance of the Company's accounts receivable.
12.1.2. Liquidity risk
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 30 June 2024, 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
Account
2,162,821,537.6 2,162,821,537.6 2,162,821,537.6
s
4 4 4
payable
Other
849,638,890.46 849,638,890.46 849,638,890.46
payable
Non-
current
liabilities
1,555,342,077.2 1,555,342,077.2 1,555,342,077.2
due
3 3 3
within
one
year
Long- 10,990,000,000. 10,990,000,000. 8,260,500,000.0 1,509,500,000.0 1,220,000,000.0
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
term 00 00 0 0 0
loans
Lease
28,420,897.97 31,516,780.78 9,691,153.91 7,456,393.91 14,369,232.96
liabilities
15,586,223,403. 15,589,319,286. 4,567,802,505.3 8,270,191,153.9 1,516,956,393.9 1,234,369,232.9
Total 30 11 3 1 1 6
12.1.3. Market risk
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 minimise 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, Hong Kong Company, has engaged in forward foreign exchange
contract transactions. As at 30 June 2024, 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.
13. Fair value disclosure
13.1. Closing fair value of assets and liabilities measured at fair value
Unit: CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
1. Continuous
measurement at fair -- -- -- --
value
1.1 Held-for-trading
697.84 697.84
financial assets
1.1.1 Financial
697.84 697.84
assets measured at
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
fair value with their
changes included
into current
profits/losses
1.1.1.4 Forward
697.84 697.84
exchange
1.3 Investments in
other equity 302,114,982.30 33,257,910.65 335,372,892.95
instruments
1.6 Accounts
4,088,985,516.61 4,088,985,516.61
receivable financing
Total assets
continuously
302,114,982.30 4,122,244,125.10 4,424,359,107.40
measured at fair
value
2. Discontinuous
measurement at fair -- -- -- --
value
13.2. Determination basis of the market value of items measured continuously and
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.
13.3. Valuation technique adopted and nature and amount determination of
important parameters for continuously and discontinuously within Level 2 of the fair
value hierarchy
None
13.4. Valuation technique adopted and nature and amount determination of
important parameters for continuously and discontinuously within Level 3 of the fair
value hierarchy
Trading financial assets: The fair value is measured based on market quotations for similar types of
instruments.
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
189
2024 Interim Report of Luzhou Laojiao Co., Ltd.
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.
13.5. Continuous fair value measurement items at level 3, adjustment between the
beginning carrying value and the ending carrying value and sensitivity analysis on
unobservable parameters
None
13.6. Explain the reason for conversion and the policy governing when the
conversion happens if conversion happens among continuous fair value
measurement items at different level
None
13.7. Changes in valuation techniques in the reporting period and reasons for the
changes
None
13.8. Fair value of financial assets and liabilities not measured at fair value
None
14. Related parties and related party transactions
14.1. The parent company of the Company
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 2,798,818,800.0
Luzhou, Sichuan asset 25.97% 50.83%
Group Co., Ltd. 0
management
Statements for situation of parent company:
The reason for the inconsistency between the shareholding proportion and voting rights proportion by
the parent company is that on 23 May 2024, Laojiao Group and XingLu Investment Group renewed
again the concerted action agreement which is valid as of 1 June 2024 and ends on 31 May 2027.
The agreement: when the parties in deal 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
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
different opinions, it will be subject to Laojiao Group’s opinion.
The nature of parent company: Limited liability company (state-owned); Registration place: Ai
Rentang Square, China Baijiu Golden Triangle Liquor Industry Park, Luzhou, Sichuan Province;
Business Scope: General project: Social economy consulting services; business management
consulting; financial consulting; business headquarters management; import and export agency; trade
brokerage; crops planting services; trees planting operation; elder care services; tourism
development project planning and consulting; technical agency services; engineering and
technological research and experimental development; display device manufacturing; supply chain
management services; technical services, technical development, technical consulting, technical
communication, technical transfer, and technical promotion; domestic freight transport agency; 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.
14.2. Subsidiaries of the Company
For details please see Note 10.1. Interests in subsidiaries.
14.3. Joint ventures and associates of the Company
For details please see Note 10.3. Interests in joint ventures and associates.
Other statements
There are no other joint ventures or associates that have related party transactions with the Company
in the current period or in the previous period and result in balance.
14.4. Other related party of the Company
Name of Other Related Party Relationship with the Company
Luzhou Jiachuang Liquor Supply Chain Management
The same parent company
Co., Ltd.
Sichuan Lianzhong Supply Chain Service Co., Ltd. The same parent company
Guangzhou Zhongying Gongyuan Energy Saving
Sub-subsidiary of parent company
Technology Co., Ltd.
Luzhou Yuanhai Lianzhong Supply Chain Co., Ltd. Sub-subsidiary of parent company
Luzhou Sanrenxuan Liquor Industry Co., Ltd. Joint venture of parent company
CTS Luzhou Laojiao Cultural Tourism Development Co.,
Joint venture
Ltd.
Luzhou XingLu Water (Group) Co., Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Property Management Co., Ltd. Subsidiary of the second largest shareholder
Luzhou Public Transport Group Co., Ltd. Subsidiary of the second largest shareholder
Sichuan Meihe Winery Industry Co., Ltd. Minority shareholder of the subsidiary Fruit Wine Industry
Other subsidiaries of Luzhou Laojiao Group Co., Ltd. Other subsidiary of parent company
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Other subsidiaries of Luzhou XingLu Investment Group
Other subsidiary of the second largest shareholder
Co., Ltd.
14.5. Related transactions
14.5.1. Related transactions of purchase and sales of goods / rendering and receipt of
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:
Luzhou XingLu
Investment Property service,
Group Co., Ltd. advertising 12,009,761.14 13,051,954.87
and its other service, etc.
subsidiaries
Training,
accommodation,
Laojiao Group warehousing,
and its other transportation 28,060,346.21 24,310,894.35
subsidiaries services and
property costs,
etc.
CTS Luzhou
Laojiao Cultural Conference fees,
Tourism travel service 756,487.33 4,694,551.04
Development fee, etc.
Co., Ltd.
Purchase of
goods:
Laojiao Group Raw materials,
and its other water, power, 173,569,090.18 92,192,358.30
subsidiaries etc.
Luzhou XingLu
Investment
Group Co., Ltd. Gas, water 8,014,683.80 7,936,512.69
and its other
subsidiaries
Total 222,410,368.66 142,186,271.25
Table of sales of goods and rendering of service
Unit: CNY
Name of Related Party Transaction Amount in current period Amount in previous period
Sales of goods:
Laojiao Group and its
Liquor, etc. 6,239,724.87 25,081,222.00
subsidiaries
CTS Luzhou Laojiao
Cultural Tourism Liquor 44,376,913.68 36,413,711.34
Development Co., Ltd.
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou Sanrenxuan Liquor
Liquor 5,106,000.00 1,572,136.80
Industry Co., Ltd.
Sichuan Tianfu Granary
Liquor 1,532,509.47
Liquor Industry Co., Ltd.
Total 57,255,148.02 63,067,070.14
14.5.2. Related party leasing
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 lease 2,644,640.00 1,070,040.00
subsidiaries
Total 2,644,640.00 1,070,040.00
The Company as lessee:
Unit: CNY
Rental expenses Variable lease
of short-term payments not
Income expense
lease simplified included in the Increased use
Paid rent of lease liabilities
treated and low- measurement of right assets
Type undertaken
Name value asset lease lease liabilities (if
of (if applicable) applicable)
of
assets
lessor Amoun Amoun Amoun Amoun Amoun
leased 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 1,751, 446,32
and its
lease 897.99 8.00
subsidi
aries
14.5.3. Key management compensation
Unit: CNY
Item Amount in current period Amount in previous period
Key management compensation 3,494,377.65 3,760,964.30
14.5.4. Other related transactions
N/A
14.6. Receivables and payables of related parties
14.6.1. Receivables
Unit: CNY
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
Closing Balance Opening Balance
Item Related party Provision for bad Provision for bad
Book value Book value
debt debt
Sichuan Meihe
Prepayment Winery Industry 2,961,479.50 2,961,479.50
Co.,Ltd.
CTS Luzhou
Laojiao Cultural
Prepayment Tourism 128,736.00 518,886.00
Development
Co., Ltd.
Luzhou XingLu
Prepayment Water (Group) 808,408.73 705,446.15
Co., Ltd.
Luzhou Laojiao
Prepayment 4,087,461.73 3,522,751.07
Group Co., Ltd.
Luzhou Public
Prepayment Transport Group 126,001.64
Co., Ltd.
CTS Luzhou
Laojiao Cultural
Other
Tourism 90,204.10 4,510.21
receivables
Development
Co., Ltd.
Luzhou Laojiao
Innovation
Other
Industry 267,996.88 13,399.84
receivables
Holdings Co.,
Ltd.
14.6.2. Payables
Unit: CNY
Item Related party Closing Balance Opening Balance
Luzhou Yuanhai Lianzhong
Accounts payable 139,654.07 109,200.00
Supply Chain Co., Ltd.
Sichuan Lianzhong Supply
Accounts payable 12,690,605.12 10,583,919.37
Chain Service Co., Ltd.
Luzhou Public Transport
Accounts payable 259,164.61
Group Co., Ltd.
Luzhou Laojiao Group Co.,
Accounts payable 495,394.00
Ltd.
Luzhou Laojiao Property
Accounts payable 1,966.54
Service Co., Ltd.
Shenzhen Mingxincheng
Accounts payable Lighting Technology Co., 24,380.65
Ltd.
Contractual liabilities (tax Sichuan Lianzhong Supply
87,877.90 2,508.09
inclusive) Chain Service Co., Ltd.
CTS Luzhou Laojiao
Contractual liabilities (tax
Cultural Tourism 72,051,807.56 13,933,613.22
inclusive)
Development Co., Ltd.
Contractual liabilities (tax
APTCC 1,309,287.97
inclusive)
Contractual liabilities (tax Sichuan Tianfu Granary 1,367,490.53
194
2024 Interim Report of Luzhou Laojiao Co., Ltd.
inclusive) Liquor Industry Co., Ltd.
Contractual liabilities (tax Luzhou Laojiao Innovation
14,463,000.00
inclusive) Industry Holdings Co., Ltd.
Contractual liabilities (tax Luzhou Sanrenxuan Liquor
2,553,000.00
inclusive) Industry Co., Ltd.
Luzhou Jiachuang Liquor
Contractual liabilities (tax
Supply Chain Management 2,135.99
inclusive)
Co., Ltd.
Sichuan Development
Other payables 4,494,000.00 4,494,000.00
Liquor Investment Co., Ltd.
Luzhou Sanrenxuan Liquor
Other payables 300,000.00 150,000.00
Industry Co., Ltd.
Sichuan Lianzhong Supply
Other payables 46,081,420.50 37,911,448.00
Chain Service Co., Ltd.
Luzhou Yuanhai Lianzhong
Other payables 50,000.00 50,000.00
Supply Chain Co., Ltd.
CTS Luzhou Laojiao
Other payables Cultural Tourism 1,350,000.00 1,050,000.00
Development Co., Ltd.
Luzhou Xinglu Property
Other payables 154,920.20 154,920.20
Management Co., Ltd.
Luzhou Laojiao Property
Other payables 30,020.58
Service Co., Ltd.
Luzhou Lingang
Other payables 100,000.00
Investment Group Co., Ltd.
Other payables APTCC 150,000.00
Sichuan Tianfu Granary
Other payables 100,000.00
Liquor Indusry Co., Ltd.
14.7. Commitments of the related parties
None
15. Stock payment
15.1. The overall situation of share-based payments
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
410,989,0
N/A 2,734,640
45.60
410,989,0
Total 2,734,640
45.60
Outstanding stock options or other equity instruments at the end of the reporting period
□Applicable N/A
Other statements
195
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Note 1: At the 12th Meeting of the 10th Board of Directors of the Company held on 29 December 2021,
the Proposal on the Grant of Restricted Shares to Awardees was reviewed and approved and it was
agreed to grant 6,928,600 restricted shares to 441 incentive targets for the first time at CNY 92.71 per
share with 29 December 2021 as the grant date.
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%, 30%,
30.00%, respectively, for each lifting.
In February 2024, the Company announced that 435 incentive targets met the lifting conditions in the
first 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 2,734,640, accounting for 0.19%
of the current total share capital of the Company.
Note 2: In January and June 2024, as four incentive recipients no longer met the incentive conditions,
the Company decided to repurchase and retire a total of 21,266 restricted shares which had been
granted but not lifted from restricted sales. As at 30 June 2024, the cancellation registration has not yet
been completed. The number and amount of shares that have expired for this period were both zero.
15.2. Equity-settled share-based payments
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 deducted 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
1,562,584,407.19
included into capital reserves
Total costs of recognizing equity-settled share-based
101,085,675.76
payments in the current period
15.3. Cash-settled share-based payments
□ Applicable N/A
196
2024 Interim Report of Luzhou Laojiao Co., Ltd.
15.4. Share-based payment expenses in the current period
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 12,450,858.25
Sales staff 26,607,030.96
Administrative staff 55,895,829.27
R&D staff 6,131,957.28
Total 101,085,675.76
15.5. Modification and termination of share-based payments
None
16. Commitments and contingencies
16.1. Commitments
Significant commitments at the balance sheet date
None
16.2. Contingencies
16.2.1. Significant contingencies at the balance sheet date
On 15 October 2014 and 10 January 2015, the Company disclosed three saving deposits involving
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch, Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank, with a total amount of
CNY 500 million. The public security organization has investigated, and the investigation of related
cases and the preservation of assets are under way. The Company has initiated a civil procedure to
recover the loss from the responsible unit. As of the period-end, the Company has recovered the
abovementioned saving deposits involving contract disputes with CNY 372,635,100.
Except for the above matters, the Company has no other significant contingencies that need to be
disclosed as the end of 30 June 2024.
16.2.2. Explanation shall be given even if there is no significant contingency for the Company
to disclose
There was no significant contingency in the Company to disclose.
197
2024 Interim Report of Luzhou Laojiao Co., Ltd.
17. Post balance sheet event
17.1. Profit distribution
Dividends to be distributed for every 10 existing shares
54.000780
held (CNY)
Amount to be distributed for every 10 existing shares held
54.000780
after consideration and approval (CNY)
Based on the current 1,471,987,769 shares, a cash
dividend of CNY 54.00 (tax included) will be distributed
for every 10 existing shares held, representing a total
cash dividend amount of CNY 7,948,733,952.60 (tax
included). Where any change occurs to the Company's
Profit distribution plan
total share capital before the implementation of the
distribution plan, relevant adjustments shall be made with
the same total distribution amount. In 2023, 0 shares of
bonus shares (tax inclusive), and capital reserves would
not be converted into share capital.1
Note: 1 On 14 August 2024, the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Some Restricted Shares (announcement number 2024-41). This
repurchase resulted in a decrease of the total share capital by 21,266 shares from the time the
distribution plan was disclosed until its implementation due to the repurchase and cancellation of
restricted stocks. The equity distribution was adjusted based on the total share capital as at the
registration date, 22 August, maintaining the principle of a constant total distribution amount. The
Company's total share capital decreased from 1,471,987,769 shares to 1,471,966,503 shares, with
the distribution ratio adjusted from CNY 54.00 (tax-inclusive) per ten shares to CNY 54.000780 (tax-
inclusive) per 10 shares. This plan was implemented on 23 August 2024.
17.2. Sales return
There are no important sales returning after balance sheet date.
17.3. Statement for other post balance sheet events
Luzhou Laojiao Whitail Liquor Industry Co., Ltd. completed its tax and business deregistration on 27
June 2024. As at 30 June 2024, the liquidation of residual property had not yet been completed. As at
29 August 2024, the liquidation of the residual property was completed.
18. Other important information
18.1. Annuity plan
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.
198
2024 Interim Report of Luzhou Laojiao Co., Ltd.
18.2. Segment information
18.2.1 Recognition basis and accounting policies of reportable segment
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.
18.3. Other significant events that can affect investors’ decision
18.3.1 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 Beijing Weiheng (Chengdu) Law Firm on 5 March
2023 that “given that since the issuance of the previous legal opinion, a few recovery has been
achieved through the criminal and civil execution, totaling CNY 373 million. At the same time, it is
suggested that the total amount of bad debt provision for the three aforementioned places remain CNY
120 million”, the Company has made a bad debt provision of CNY 120 million for savings deposit
involved in contractual disputes as of the end of the period, and the amount of the bad debt provision
may be adjusted in the future based on the litigation process and recovery.
19. Notes to the main Items of the financial statements of parent
company (all currency unit is CNY, except other statements)
19.1. Accounts receivable
19.1.1. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 54,647.01 0.00
Total 54,647.01 0.00
19.1.2. Disclosure by withdrawal methods for bad debts
Unit: CNY
Type Closing Balance Opening Balance
199
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Provision for bad Provision for bad
Book balance Book balance
debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Inclu
ding:
Account
s
receiva
ble that
are not
individu
ally
material
but for
which a
separat
e
provisio
n for
bad
debts
has
been
made
Account
s
receiva
ble
tested 54,647. 100.00 54,257.
389.73 0.71%
for 01 % 28
impairm
ent by
the
portfolio
Inclu
ding:
Account
s
receiva
ble
tested
for
impairm
54,647. 100.00 54,257.
ent on 389.73 0.71%
01 % 28
the
portfolio
with
charact
eristics
of credit
risk
54,647. 100.00 54,257.
Total 389.73 0.71% 0.00
01 % 28
200
2024 Interim Report of Luzhou Laojiao Co., Ltd.
The category name of provision for bad debt by the portfolio: Provision for bad debt by the portfolio
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 7,794.51 389.73 5.00%
Including: within 1 year 7,794.51 389.73 5.00%
Other portfolio1 46,852.50
Total 54,647.01 389.73
Note: 1 Other portfolios represent inter-subsidiary funds within the scope of consolidation in respect
of receivables, which are deemed risk-free and thus no bad debt provision is made.
Notes to the determination basis for the portfolio:
Receivables of the same age exhibit 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
19.1.3. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit: CNY
Changes in current period
Opening Closing
Type Reversal or
Balance Allowance Write-off Other Balance
recovery
Provision
allowance by
individual item
Provision
allowance by 389.73 389.73
risk portfolio
Total 389.73 389.73
There is no significant provision in accounts receivable reversed or recovered in the reporting period.
19.1.4. Accounts receivable written-off in the current period
There is no accounts receivable written-off in the current period.
19.1.5. Top five entities with the largest balances of accounts receivable and contract assets
Unit: CNY
Closing balance Proportion to Closing balance
Closing balance Closing balance
of accounts total closing of provision for
Company name of accounts of contract
receivable and balance of bad debt
receivable assets
contract assets accounts provision of
201
2024 Interim Report of Luzhou Laojiao Co., Ltd.
receivable and accounts
contract assets receivable and
impairment
allowance of
contract assets
Luzhou Laojiao
New Retail Co., 33,741.90 33,741.90 61.75%
Ltd.
Luzhou Red
Sorghum
Modern
8,740.40 8,740.40 15.99%
Agricultural
Development
Co., Ltd.
Luzhou Laojiao
4,370.20 4,370.20 8.00%
Brewing Co., Ltd.
Wang Huiying 7,794.51 7,794.51 14.26% 389.73
Total 54,647.01 54,647.01 100.00% 389.73
19.2. Other receivables
Unit: CNY
Item Closing Balance Opening Balance
Dividend receivable 20,242,601.70
Other receivables 16,170,951,713.621 14,844,650,322.98
Total 16,191,194,315.32 14,844,650,322.98
Note: 1 Other receivables in the above table are other receivables minus interest receivable and
dividend receivable.
19.2.1. Dividend receivable
19.2.1.1. Classification of dividend receivable
Unit: CNY
Item (investee) Closing Balance Opening Balance
Guotai Junan Securities Co., Ltd. 4,710,798.80
Huaxi Securities Co., Ltd. 13,641,557.20
North Chemical Industries Co., Ltd. 78,177.75
China Tourism Group Duty Free
1,812,067.95
Corporation Limited
Total 20,242,601.70
19.2.2. Other receivables
19.2.2.1. Other receivables disclosed by nature
Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds of subsidiaries in
16,161,384,872.70 14,828,601,798.89
the consolidation scope
202
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Intercourse funds and others 2,395,638.32 9,004,523.78
Saving deposits involving contract
127,364,873.50 127,564,873.50
disputes 1
Total 16,291,145,384.52 14,965,171,196.17
Note: 1. The saving deposits involving contract disputes refer to three deposits amounting to CNY
500,000,000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and Nanyang
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement in
contract disputes and have thus been transferred into “other receivables”. As of 31 December 2023,
the closing balance of that fund was CNY 127,364,873.50.
19.2.2.2. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 16,163,644,691.37 14,837,508,542.67
1-2 years 44,639.65
2-3 years 6,880.00 13,480.00
1
Over 3 years 127,449,173.50 127,649,173.50
3-4 years 11,500.00 11,500.00
4-5 years 12,800.00 22,800.00
Over 5 years 127,424,873.50 127,614,873.50
Total 16,291,145,384.52 14,965,171,196.17
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
savings deposit of CNY 127,364,873.50, which are yet to be recovered due to contractual disputes.
19.2.2.3. Disclosure by withdrawal methods for bad debts
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 127,364 120,000 7,364,8 127,564 120,000 7,564,8
0.78% 94.22% 0.85% 94.07%
debt by ,873.50 ,000.00 73.50 ,873.50 ,000.00 73.50
individu
al item
Inclu
ding:
Other
receiva
bles 127,364 120,000 7,364,8 127,564 120,000 7,564,8
0.78% 94.22% 0.85% 94.07%
that are ,873.50 ,000.00 73.50 ,873.50 ,000.00 73.50
individu
ally
203
2024 Interim Report of Luzhou Laojiao Co., Ltd.
material
and for
which a
separat
e
provisio
n for
bad
debts
has
been
made
Other
receiva
bles
that are
not
individu
ally
material
but for
which a
separat
e
provisio
n for
bad
debts
has
been
made
Provisio
n for
16,163, 16,163, 14,837, 14,837,
bad 193,670 520,873
780,511 99.22% 0.00% 586,840 606,322 99.15% 0.00% 085,449
debt by .90 .19
.02 .12 .67 .48
the
portfolio
Inclu
ding:
Other
receiva
bles
tested
for
impairm
16,163, 16,163, 14,837, 14,837,
ent on 193,670 520,873
780,511 99.22% 0.00% 586,840 606,322 99.15% 0.00% 085,449
the .90 .19
.02 .12 .67 .48
portfolio
with
charact
eristics
of credit
risk
16,291, 16,170, 14,965, 14,844,
100.00 120,193 100.00 120,520
Total 145,384 0.74% 951,713 171,196 0.81% 650,322
% ,670.90 % ,873.19
.52 .62 .17 .98
204
2024 Interim Report of Luzhou Laojiao Co., Ltd.
The category name of provision for bad debt by individual item: Provision for bad debt by individual
item
Unit: CNY
Opening Balance Closing Balance
Name Provision for Provision for
Book balance Book balance Proportion Reason
bad debt bad debt
Saving
deposits Provision
127,564,873.5 120,000,000.0 127,364,873.5 120,000,000.0
involving 94.22% based on
0 0 0 0
contract legal opinion
disputes
127,564,873.5 120,000,000.0 127,364,873.5 120,000,000.0
Total
0 0 0 0
The category name of provision for bad debt by the portfolio: Provision for bad debt by the portfolio
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 2,395,638.32 193,670.90 8.08%
Including: within 1 year 2,259,818.67 112,990.93 5.00%
1-2 years 44,639.65 4,463.97 10.00%
2-3 years 6,880.00 1,376.00 20.00%
3-4 years 11,500.00 4,600.00 40.00%
4-5 years 12,800.00 10,240.00 80.00%
Over 5 years 60,000.00 60,000.00 100.00%
Other portfolio 1 16,161,384,872.70
Total 16,163,780,511.02 193,670.90
Note: 1 Other portfolios represent inter-subsidiary funds within the scope of consolidation in respect
of receivables, which are deemed risk-free and thus no bad debt provision is made.
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 1 January
520,873.19 120,000,000.00 120,520,873.19
2024
Balance of 1 January
2024 in the current
period
Allowance of the
-327,202.29 -327,202.29
current period
Balance of 30 June
193,670.90 120,000,000.00 120,193,670.90
2024
The basis for the division of each stage and the withdrawal proportion of bad debt provision
205
2024 Interim Report of Luzhou Laojiao Co., Ltd.
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
categorised based on aging portfolio. Withdrawal proportions of bad debt provision are 0.00% for
Stage 1 and 94.22% for Stage 3, totalling 0.74%.
Changes of book balance with significant amount changed of loss provision in the current period
□Applicable N/A
19.2.2.4. Provision and recovery for bad and doubtful debt in the current period
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
Other
receivables
120,000,000.0 120,000,000.0
tested for
0 0
impairment
individually
Other
receivables
tested for 520,873.19 -327,202.29 193,670.90
impairment by
the portfolio
120,520,873.1 120,193,670.9
Total -327,202.29
9 0
There is no significant provision in other receivables reversed or recovered in the reporting period.
19.2.2.5. Other receivables written-off in the current period
Notes to verification of accounts receivable:
There is no other receivables written-off in the current period.
19.2.2.6. Top five entities with the largest balances of the other receivables
Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Luzhou Laojiao Internal 15,564,242,862.
Within 1 year 95.54%
Brewing Co., Ltd. transactions 12
Luzhou Laojiao
Electronic Internal
272,153,394.00 Within 1 year 1.67%
Commerce Co., transactions
Ltd.
Luzhou Laojiao
Import and Internal
187,123,987.29 Within 1 year 1.15%
Export Trade transactions
Co., Ltd.
206
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Agricultural Bank
of China
Changsha
Yingxin Sub-
branch, Industrial Saving deposits
and Commercial involving 127,364,873.50 Over 5 years 0.78% 120,000,000.00
Bank of China contract disputes
Nanyang
Zhongzhou Sub-
branch and
another bank
Luzhou Laojiao
Internal
New Retail Co., 72,028,776.88 Within 1 year 0.44%
transactions
Ltd.
16,222,913,893.
Total 99.58% 120,000,000.00
79
19.2.2.7. Presentation in other receivables due to the centralized management of funds
Other statements:
There were no other receivables presented in due to the centralized management of funds in the
current period.
19.3. Long-term equity investments
Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 3,913,219,691 3,913,219,691 3,790,179,449 3,790,179,449
subsidiary .16 .16 .26 .26
Investment in
associates 2,711,661,691 2,709,094,592 2,707,254,604 2,704,687,505
2,567,098.80 2,567,098.80
and joint .24 .44 .74 .94
venture
6,624,881,382 6,622,314,283 6,497,434,054 6,494,866,955
Total 2,567,098.80 2,567,098.80
.40 .60 .00 .20
19.3.1. Investment in subsidiary
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
Pinchuang 94,025,22 3,970,724. 97,995,95
Technolog 9.15 40 3.55
y Co., Ltd.
Luzhou 293,787,6 24,361,30 318,148,9
Laojiao 35.54 4.02 39.56
207
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Sales Co.,
Ltd.
Luzhou
Laojiao 3,291,776, 76,085,44 14,954,27 3,382,816,
Brewing 616.90 3.86 6.36 337.12
Co., Ltd.
Luzhou
Laojiao
Internation
al 12,730,83 1,054,555. 13,785,38
Developm 2.19 80 7.99
ent (Hong
Kong)
Co., Ltd.
Luzhou
Laojiao
60,971,61 166,571.4 61,138,18
Electronic
1.79 4 3.23
Commerc
e Co., Ltd.
Luzhou
Laojiao
27,115,91 1,571,145. 28,687,06
New
5.71 16 0.87
Retail Co.,
Ltd.
Luzhou
Laojiao
Health 9,771,607. 876,220.8 10,647,82
Liquor 98 6 8.84
Industry
Co., Ltd.
3,790,179, 76,085,44 46,954,79 3,913,219,
Total
449.26 3.861 8.042 691.16
Note: 1 Additional investment for the current period represents the capital injection in kind, such as
properties and buildings, as well as land, to Luzhou Laojiao Brewing Co., Ltd.
2. Other increases in the current period are due to the Company's restricted share incentive business,
where the parent company (the settlement enterprise) is an investor in the recipient subsidiary (the
service enterprise) and is recognised 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 recognised at the same time.
19.3.2. Investment in associate and joint venture
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
208
2024 Interim Report of Luzhou Laojiao Co., Ltd.
1. Joint Ventures
2. Associate
Huaxi
Securi 2,535, 2,567, 4,109, 15,73 13,64 2,541, 2,567,
ties 630,3 098.8 114.6 0,380. 1,557. 828,3 098.8
Co., 72.30 0 2 32 20 10.04 0
Ltd.
Luzho
u
Laojia
o
Postd
octora
l 38,33 - 37,33
Works 9,051. 999,3 9,677.
tation 51 73.92 59
Techn
ology
Innov
ation
Co.,
Ltd.
Sichu
an
Devel
opme
5,897, 5,900,
nt 2,657.
980.8 638.5
Liquor 73
5 8
Invest
ment
Co.,
Ltd.
CTS
Luzho
u
Laojia
o
Cultur
124,8 - 124,0
al
20,10 794,1 25,96
Touris
1.28 35.05 6.23
m
Devel
opme
nt
Co.,
Ltd.
2,704, 2,567, 2,318, 15,73 13,64 2,709, 2,567,
Subtot
687,5 098.8 263.3 0,380. 1,557. 094,5 098.8
al
05.94 0 8 32 20 92.44 0
2,704, 2,567, 2,318, 15,73 13,64 2,709, 2,567,
Total 687,5 098.8 263.3 0,380. 1,557. 094,5 098.8
05.94 0 8 32 20 92.44 0
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
209
2024 Interim Report of Luzhou Laojiao Co., Ltd.
□Applicable N/A
19.4. Operating revenue and cost of sales
Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 5,685,739,150.15 4,407,296,167.84 3,999,775,395.42 3,041,281,547.34
Other business 12,419,703.81 913,100.36 14,764,932.60 973,400.78
Total 5,698,158,853.96 4,408,209,268.20 4,014,540,328.02 3,042,254,948.12
Details:
Unit: CNY
Segment 1: Baijiu sales Total
Contract category
Operating revenue Cost of sales Operating revenue Cost of sales
Business type
Including:
Medium and high
5,637,340,790.34 4,384,023,716.06 5,637,340,790.34 4,384,023,716.06
grade baijiu
Other baijiu 48,398,359.81 23,272,451.78 48,398,359.81 23,272,451.78
By operating
segment
Including:
Domestic 5,685,739,150.15 4,407,296,167.84 5,685,739,150.15 4,407,296,167.84
Outbound
Market or customer
type
Including:
Contract type
Including:
Commodity sales
5,685,739,150.15 4,407,296,167.84 5,685,739,150.15 4,407,296,167.84
contract
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 5,685,739,150.15 4,407,296,167.84 5,685,739,150.15 4,407,296,167.84
Information on performance obligation:
No
Other statements
The Company's main business is the production and sale of baijiu. Revenue is recognised at the point
when the Company transfers control of the relevant goods to the customer and fulfils its performance
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2024 Interim Report of Luzhou Laojiao Co., Ltd.
obligations.
19.5. Investment income
Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under equity 2,318,263.38 55,379,409.84
method
Investment income gained during the
period of holding held-for-trading 20,065,193.40 2,391,009.80
financial assets
Investment income from disposal of
-29,871,256.97 4,636,104.81
held-for-trading financial assets
Dividends income gained during the
period of holding other equity 10,709,905.00 7,297,266.16
instrument investment
Total 3,222,104.81 69,703,790.61
19.6. Other
Note: There is no major restriction on the repatriation of the Company's investment income.
Including: investment income from long-term equity investments under the equity method:
Item Current Period Previous Period
Huaxi Securities Co.,Ltd. 4,109,114.62 54,493,747.57
Luzhou Laojiao Postdoctoral Workstation Technology Innovation
-999,373.92 -499,830.20
Co., Ltd.
Sichuan Development Liquor Investment Co., Ltd. 2,657.73 5,159.39
CTS Luzhou Laojiao Cultural Tourism Development Co., Ltd. -794,135.05 1,380,333.08
Total 2,318,263.38 55,379,409.84
Including: dividend income gained during the period of holding other equity instrument investment:
Item Current Period Previous Period
North Chemical Industries Co., Ltd. 78,177.75 78,177.75
Guotai Junan Securities Co., Ltd. 4,710,798.80 6,241,808.41
Luzhou Bank Co., Ltd. 3,905,280.00
China Tourism Group Duty Free Corporation Limited 2,015,648.45 977,280.00
Total 10,709,905.00 7,297,266.16
20. Supplementary information
20.1. Detailed statement of non-recurring gains and losses in the current period (+
for gain, - for loss)
Applicable □ N/A
Unit: CNY
211
2024 Interim Report of Luzhou Laojiao Co., Ltd.
Item Amount Note
Gains or losses on disposal non-
1,058,795.10 For details please see Note 7.48
current assets
Government grants recognised in
profit or loss (exclusive of those that
are closely related to the Company's
normal business operations and
given in accordance with defined 18,852,624.09 For details please see Note 7.44
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 For details please see Note 7.45 and
23,433,541.56
liabilities (exclusive of the effective Note 7.46
portion of hedges that is related to
the Company's normal business
operations)
Other non-operating income and
For details please see Note 7.49 and
expenditure except above-mentioned 901,090.95
Note 7.50
items
Less: Corporate income tax 10,740,409.33
Minority interests (after
78,208.30
tax)
Total 33,427,434.07 --
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
20.2. Return on equity and earnings per share
Profit during reporting EPS (CNY/Share)
Weighted average ROE
period Basic EPS Diluted EPS
Net profits attributable to
common shareholders of 17.61% 5.46 5.46
the Company
Net profits attributable to
common shareholders of
17.53% 5.43 5.43
the Company before non-
recurring gains and losses
212
2024 Interim Report of Luzhou Laojiao Co., Ltd.
20.3. Differences between accounting data under domestic and overseas
accounting standards
20.3.1. Differences of net profit and net assets disclosed in financial reports prepared under
international and Chinese accounting standards
□ Applicable N/A
20.3.2. Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
□ Applicable N/A
20.3.3. Explain reasons for the differences between accounting data under domestic and
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
20.4. Other
N/A
213
