2021 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou Laojiao Co., Ltd.
2021 Interim Report
August 2021
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Section I Important Statements, Contents and Definitions
The Board of Directors, Board of Supervisors, as well as directors, supervisors and senior management
other than the following directors, supervisors and senior management that have expressed dissent
against this report guarantee that the information presented in this report is free of any false records,
misleading statements or material omissions, and shall individually and together be legally liable for
truthfulness, accuracy and completeness of its contents.
Liu Miao, responsible person for the Company, Xie Hong, responsible person for accounting work and
Yan Li, responsible person for the Company’s financial affairs (Accounting Supervisor) have warranted
that the financial statements in this report are true, accurate and complete.
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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2021 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 ............................................................................ 25
Section V Environmental and Social Responsibility ................................................ 27
Section VI Significant Events ................................................................................... 34
Section VII Changes in Shares and Information about Shareholders....................... 41
Section VIII Preferred Shares ................................................................................... 47
Section IX Information about Bond .......................................................................... 48
Section X Financial Report ....................................................................................... 52
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2021 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);
2. The originals of all company documents and announcements that are disclosed to the public during
the reporting period.
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2021 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.
Sales Company Refer to Sales Company of Luzhou Laojiao Co., Ltd.
Brewing Company Refer to Luzhou Laojiao Brewing Co., Ltd.
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2021 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
Changed stock
--
abbreviation (if any)
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
LZLJ
name in English (if any)
Legal representative Liu Miao
2. Contact us
Representative for securities
Secretary of the board
affairs
Name Wang Hongbo Wang Chuan
Luzhou Laojiao Marketing Network Command Center, Nanguang
Address
Road, Luzhou City, Sichuan Province, China
Tel. (0830)2398826 (0830)2398826
Fax (0830)2398864 (0830)2398864
E-mail dsb@lzlj.com dsb@lzlj.com
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
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 and email address 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 2020
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
Applicable √ N/A
No change occurred to the newspapers designated by the Company for information disclosure, the
website designated by the CSRC for disclosing the interim report and the place where the interim is kept
in the reporting period. The said information can be found in the 2020 Annual Report.
4. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data.
Yes √ No
H1 2021 H1 2020 Change
Operating revenues (CNY) 9,317,097,027.05 7,634,482,901.87 22.04%
Net profits attributable to shareholders
4,226,316,722.25 3,220,452,190.27 31.23%
of the Company (CNY)
Net profits attributable to shareholders
of the Company before non-recurring 4,208,650,132.88 3,233,951,849.05 30.14%
gains and losses (CNY)
Net cash flows from operating activities
2,738,237,039.90 728,815,422.24 275.71%
(CNY)
Basic earnings per share (CNY/share) 2.89 2.20 31.36%
Diluted earnings per share (CNY/share) 2.89 2.20 31.36%
Weighted average ROE 16.78% 15.32% 1.46%
30 June 2021 31 December 2020 Change
Total assets (CNY) 37,504,080,677.67 35,009,203,823.45 7.13%
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Net assets attributable to shareholders
24,307,106,220.71 23,074,858,552.59 5.34%
of the 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
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
5.3. Reasons for accounting data differences above
Applicable √ N/A
6. Non-recurring gains and losses
√ Applicable N/A
Unit: CNY
Item Amount Note
Gain or loss from disposal of non-current assets (including See "Section XI Note 5.42" for
180,849.31
the write-off portion of the impairment provision) details.
Government grants accounted for, in the profit or loss for the
current period (except for the government grants closely
See "Section XI Note 5.39" for
related to the business of the Company and given at a fixed 7,226,821.19
details.
amount or quantity in accordance with the national uniform
standards)
Other non-operating income and expenditure except See "Section XI Note 5.43,
17,427,895.75
above-mentioned items 5.44" for details.
Less: Corporate income tax 6,139,307.70
Minority interests (after tax) 1,029,669.18
Total 17,666,589.37 --
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the
definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Their Securities to the Public-Non-Recurring Gains and Losses, or classifies any non-recurring gain/loss
item mentioned in the said explanatory announcement as a recurring gain/loss item.
Applicable √ N/A
No such cases for the reporting period.
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2021 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, beverage and
refined tea manufacturing 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.
As the COVID-19 pandemic eases, the baijiu industry gradually returns to normal. In the future, the total
market volume will shrink, consumption will be upgraded, and the market share will continue to be
concentrated in the industry leaders. The industry competition will become the competition between
systems. The shortcomings in corporate supply chain and ecosystem chain must be addressed. The
era of joint operations of strategic product line mix and market has arrived.
The Company shall comply with the disclosure requirements of the Guidelines No. 14 of the Shenzhen
Stock Exchange on Industry Information Disclosure—Listed Companies Engaging in Business Related
to Food & Liquor and Wine Production.
For H1 2021, operating revenue amounted to CNY 9.317 billion, up 22.04% year on year; and the net
profit attributable to the shareholders of the listed company reached CNY 4.226 billion, up 31.23% year
on year. Holding 20 food business licenses, the Company is primarily engaged in the research and
development, production and sales of baijiu series such as "National Cellar 1573" and "Luzhou
Laojiao". Its core competitiveness lies in the geographical, cellars and brewing technique, brand, quality
and R&D, and talent advantages.
In recent years, the baijiu industry, mainly characterized by slower growth, centralized differentiation
and fiercer competition, is gradually having younger generation as its main consumer group. During the
reporting period, the Company closely focused on the development theme of “increasing efficiency by
lean management, and expanding the market by precise marketing”, and calmly coped with the adverse
effects of the constant fluctuation of the pandemic. The Company steadily and orderly advanced
various tasks, achieved sustainable and healthy growth in operating results, provided consumers with
high-quality products and services, and continued to meet people's needs for a better life.
The Company's production model is self-production. For the purchase of raw materials, it has the
cooperative model, the unified pricing model, and the bid invitation model. And for sales models, it has
the traditional channel operation model and the emerging channel operation model.
Brand operations
The Company thoroughly implemented the brand revival project, and focused on the strategy of "dual
brands, three product series, and major single products" with great clarity. National Cellar 1573
continued to lead the brand recognition. The market share, product profit, brand image and high-end
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
value continued to increase; the returning trend of Luzhou Laojiao brands’ value and consumer
confidence gradually took shape. The marketing management reform of the Touqu and Erqu series
achieved remarkable results; innovative product series continued to meet the diversified and segmented
market needs. The Company has managed to cover various product price zones. And it will continue to
rejuvenate and promote value return of the brand.
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
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 change of YoY change of
Gross profit YoY change of
Operating revenue Cost of sales operating gross profit
margin cost of sales
revenue margin
By sales model
Traditional channel
8,663,483,014.70 1,169,109,178.74 86.51% 19.03% -8.96% 4.15%
operation model
Emerging channel
531,759,619.22 117,339,362.75 77.93% 84.71% 52.90% 4.59%
operation model
2. Distributors
Unit: Number
Number of distributors Increased number Decreased number YoY change of
Reason for any
Region at the end of the during the reporting during the reporting number of
significant change
reporting period period period distributors (%)
Domestic 1,899 340 488 -11.05
Overseas 108 3 0 5
3. Main settlement method for distributors and distribution method
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
The Company's main settlement method for distributors is payment before delivery. The distribution
method is authorized distribution.
4. Main customers
Total sales to top five customers（CNY） 6,302,696,056
Total sales to top five customers as % of the total
67.65%
sales
Total sales to related parties among top five
customers as % of the total sales 0%
5. Information on top five customers
As % of the total sales for
No. Customer Sales amount (CNY)
the year
1 Customer A 4,747,209,850.52 50.95%
2 Customer B 771,559,092.03 8.28%
3 Customer C 456,988,131.13 4.91%
4 Customer D 241,439,592.44 2.59%
5 Customer E 85,499,389.88 0.92%
Total - 6,302,696,056.00 67.65%
Store sales terminals accounted for more than 10%
□ Applicable √ N/A
Online direct sales
√ Applicable □N/A
For the sales of the Company's main products, please refer to Section III "Business segment, products
or geographical segments contributing over 10% of the operating revenues or profits". The Company's
complete series of products are sold online. Its main cooperation platforms included 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; other raw
Raw materials 2,154,099,305.00
grains and packaging materials are purchased through bid
invitation
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Purchase based on the unified pricing of the Development
and Reform Commission of Luzhou and the price bureau, Fuels and energies 70,179,239.95
and purchase through bid invitation
Purchase through bid invitation Low-value consumables 26,671,543.91
The purchase of raw materials from cooperatives or farmers accounted for more than 30% of the total
purchase amount
□ Applicable √ N/A
The price of main raw materials purchased externally changed by more than 30% year-on-year
□ Applicable √ N/A
Main production model:
The Company's main production model is self-production.
Commissioned processing and production
□ Applicable √ N/A
Main breakdown items of cost of sales
Unit: CNY
H1 2021 H1 2020
By business
Item As % of cost of As % of cost of YoY Change
segment Amount Amount
sales sales
Baijiu Raw materials 1,118,577,468.66 86.95% 1,163,573,463.93 85.50% -3.87%
Baijiu Labor costs 69,632,827.38 5.41% 86,008,612.92 6.32% -19.04%
Manufacturing
Baijiu 98,238,245.45 7.64% 111,386,898.78 8.18% -11.80%
overhead
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)
(%) (%)
Production volume
and inventory
Mid- and increased
high-end 19,773.36 14,252.35 27,800.98 162.79 6.31 59.68 year-on-year
baijiu mainly due to the
Company's
adjustment of
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
production plans.
Inventory
decreased
year-on-year
Other baijiu 24,702.10 24,629.45 13,647.49 -29.93 -29.14 -39.49 mainly due to the
Company's
adjustment of
production plans.
2. Inventory at the end of the reporting period
Unit: Ton
Finished baijiu Semi-finished baijiu (including base liquor)
41,448.47 357,176.46
3. Capacity
Unit: Ton
Main products Design capacity Actual capacity Capacity in progress
Baijiu 170,000 170,000
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.
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
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
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.
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 Liquor” 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
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 liquor, as well as production efficiency improvement.
E. Talent advantage
The Company has built up the richness in its talent pool throughout the years. It has 1 inheritor of
national intangible cultural heritage, 2 masters of Chinese brewing, 2 masters of Chinese baijiu, 1 master
of Chinese baijiu technique, 2 Chinese liquor connoisseurs, 7 senior professor engineers, 7 experts who
receive special allowances from the State Council, 3 national technicians, 3 academic and technologic
leaders of Sichuan province, 1 excellent expert with special contribution of Sichuan province, 1craftsman
of Sichuan province, 1 technological elite 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.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
3. Analysis of main business
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 significant
H1 2021 H1 2020 YoY Change
change
Operating revenues 9,317,097,027.05 7,634,482,901.87 22.04%
Cost of sales 1,335,154,943.46 1,386,636,428.85 -3.71%
Selling and distribution
1,183,247,931.92 1,111,958,208.98 6.41%
expenses
General and
administrative 439,561,779.70 360,013,975.76 22.10%
expenses
Finance expenses -128,007,967.42 -108,274,836.69
Mainly due to the increased
gross profit as a result of the
Corporate income tax 1,346,062,434.86 1,034,276,363.11 30.15%
increased sales revenue in the
current period
R&D expenses 51,984,969.33 44,739,047.81 16.20%
Mainly due to the increased
Net cash flows from
2,738,237,039.90 728,815,422.24 275.71% cash received from sale of
operating activities
goods in the current period
Mainly due to the decreased
Net cash flows from cash paid for the technical
-732,184,328.54 -1,050,174,817.35
investing activities renovation project of brewing
in the current period
Mainly due to the issuance of
Net cash flows from
-48,460,474.66 1,499,441,368.05 -103.23% corporate bonds in the same
financing activities
period of last year
Net increase in cash
1,956,159,445.84 1,180,083,124.68 65.76%
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.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Breakdown of operating revenues
Unit：CNY
H1 2021 H1 2020
As % of operating As % of operating YoY Change
Amount Amount
revenues revenues
Total 9,317,097,027.05 100% 7,634,482,901.87 100% 22.04%
By business segment
Baijiu 9,195,242,633.92 98.69% 7,566,057,028.33 99.10% 21.53%
Other revenues 121,854,393.13 1.31% 68,425,873.54 0.90% 78.08%
By product
Mid- and high-end
8,218,296,465.61 88.21% 6,657,376,504.30 87.20% 23.45%
baijiu
Other baijiu 976,946,168.31 10.48% 908,680,524.03 11.90% 7.51%
Other revenues 121,854,393.13 1.31% 68,425,873.54 0.90% 78.08%
By geographical segment
Domestic 9,264,547,206.51 99.44% 7,605,771,011.08 99.62% 21.81%
Overseas 52,549,820.54 0.56% 28,711,890.79 0.38% 83.02%
Business segment, products or geographical segments contributing over 10% of the operating revenues
or profits
√ Applicable N/A
Unit：CNY
YoY change of YoY change of
Operating Gross profit YoY change of
Cost of sales operating gross profit
revenue margin cost of sales
revenue margin
By business segment
Baijiu 9,195,242,633.92 1,286,448,541.49 86.01% 21.53% -5.48% 4.00%
By product
Mid- and
8,218,296,465.61 772,628,560.86 90.60% 23.45% 1.55% 2.03%
high-end baijiu
Other baijiu 976,946,168.31 513,819,980.63 47.41% 7.51% -14.38% 13.45%
By geographical segment
Domestic 9,264,547,206.51 1,326,903,851.83 85.68% 22.92% -1.94% 3.63%
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
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
√ Applicable N/A
Unit：CNY
YoY change of YoY change of
Operating Gross profit YoY change of
Cost of sales operating gross profit
revenue margin cost of sales
revenue margin
By business segment
Baijiu 7,566,057,028.33 1,360,968,975.63 82.01% -4.49% -14.73% 2.16%
By product
Mid- and
6,657,376,504.30 760,843,863.58 88.57% 1.84% 1.53% 0.03%
high-end baijiu
Other baijiu 908,680,524.03 600,125,112.05 33.96% -34.37% -29.12% -4.89%
By geographical segment
Domestic 7,537,345,137.54 1,353,180,457.73 82.05% -4.00% -14.69% 2.25%
Reasons for changing the standards
In order to realize the return of "Luzhou Laojiao" brands’ value and promote the implementation of the
"competitive marketing" strategy, the Company implemented the operational integration of mid- and
high-end products. The Company has reclassified the products based on the sales price. The product
classification was changed to "mid- and high-end baijiu" and "other baijiu" from "high-, mid- and low-end
baijiu" in the previous reporting period.
Reason for any over 30% YoY movements in the data above
□ Applicable √N/A
The Company shall comply with the disclosure requirements of the Guidelines No. 14 of the Shenzhen
Stock Exchange on Industry Information Disclosure—Listed Companies Engaging in Business Related
to Food & Liquor and Wine Production.
A. Breakdown of selling and distribution expenses
Unit：CNY
Selling and distribution
H1 2021 H1 2020 YoY Change Reason for any significant change
expenses
Advertising expenses 407,510,592.52 537,365,225.18 -24.17%
Decreased product promotion
Sales promotion
482,468,677.16 314,638,554.04 53.34% activities due to the pandemic in the
expenses
same period of last year
Warehousing and
48,338,332.97 45,113,965.94 7.15%
logistics expenses
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Labor costs 183,923,965.82 158,943,220.57 15.72%
Other 61,006,363.45 55,897,243.25 9.14%
B. Breakdown of advertising expenses
Unit：CNY
Advertising Expenses
Online advertising (exclusive of TV advertising) 73,208,079.01
Offline advertising 129,669,890.93
TV advertising 124,076,423.55
Other (inclusive of branding ideas, exhibitions & showcases,
80,556,199.03
advertising materials, activity planning, 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 2021 31 December 2020
Change in Explanation about any material
As % of total As % of total
Amount Amount percentage change
assets assets
Cash and cash
13,611,381,648.55 36.29% 11,624,870,340.60 33.21% 3.08%
equivalents
Accounts
6,711,515.89 0.02% 1,507,852.43 0.00% 0.02%
receivable
Inventories 5,916,574,963.71 15.78% 4,695,663,431.25 13.41% 2.37%
Long-term equity
2,555,473,912.21 6.81% 2,477,667,171.27 7.08% -0.27%
investments
Fixed assets 7,880,413,111.37 21.01% 6,887,108,174.72 19.67% 1.34%
Construction in
1,290,824,691.35 3.44% 2,012,129,880.15 5.75% -2.31%
progress
Right-of-use assets 55,525,013.10 0.15% 0.15%
Contract liabilities 1,408,069,576.54 3.75% 1,678,837,166.94 4.80% -1.05%
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Lease liabilities 46,474,941.96 0.12% 0.12%
5.2. Main assets overseas
Applicable √ N/A
5.3. Assets and liabilities measured at fair value
√ Applicable □ N/A
Unit：CNY
Changes in
Changes in fair Provision
Opening cumulative fair Amount of Amount of Other
Item value through for Closing balance
balance value recorded purchase sale changes
profit or loss impairment
into equity
Financial asset
4. Investments in
other equity 347,160,399.42 10,125,066.47 252,722,626.89 357,285,465.89
instruments
Total 347,160,399.42 10,125,066.47 252,722,626.89 357,285,465.89
Financial liability 0.00 0.00
Information about other changes
Whether measurement attribution of main assets changes significantly in this year
Yes √ No
5.4. Restricted asset rights as of the end of this reporting period
Item Closing Balance Reason
Bank deposits (CNY) 85,627,139.90 Accrued interest on term deposits
Other cash and cash According to regulations of Tourism Bureau, the travel
1,400,000.00
equivalents (CNY) service deposit was deposited in a designated bank
Total 87,027,139.90
6. Investment
6.1. Total investment
√ Applicable N/A
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Investment made in the reporting Investment made in the same
YoY change
period (CNY) period of last year (CNY)
536,408,910.19 1,439,229,693.32 -62.73%1
Note 1: Mainly due to the completion of significant engineering and construction projects including the
technical renovation project of brewing.
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
Accumul
Accumulate Reasons
ated
Wheth d actual for not
Industr Amount actual
er it is input meeting Date of
y of the of input in Project income
Investment a fixed amount by Capital Project the disclos Disclosure index
Item invest the ed by the
form asset the end of source progress schedule ure (if (if any)
ment reporting income end of
invest the and any)
project period the
ment reporting projected
reporting
period income
period
Announcement
No. 2016-12 on
Subsidiary’s
Investment in the
Technical
Renovation
Project of
Technical
Fund-rais Brewing;
renovation 107,045, 7,829,456,8 28 April
Self-built Yes Baijiu ing+self-fi 100.00% 0.00 0.00 N/A Announcement
project of 469.67 96.25 2016
nancing No. 2020-17 on
brewing
Increasing the
Investment in the
Technical
Renovation
Project of
Brewing
（http://www.cni
21
2021 Interim Report of Luzhou Laojiao Co., Ltd.
nfo.com.cn/）
107,045, 7,829,456,8
Total -- -- -- -- -- 0.00 0.00 -- -- --
469.67 96.25
6.4. Financial assets investment
6.4.1. Securities investment
√ Applicable □ N/A
Unit: CNY
Changes
Changes
in the Profit
Accounti in fair
Category cumulati and loss
Abbreviat Initial ng Beginnin value Amount Closing
of Stock ve fair Amount during Accountin Capital
ion of investme measure g book recogniz of book
securitie code value of sale the g item source
securities nt cost ment balance ed in purchase balance
s recorded reporting
model profit or
into period
loss
equity
Investme
Domesti Fair nts in
c and 12,719,1 value 206,450, -4,593,0 189,138, 6,595,11 201,857, other Own
601211 GTJA 0.00 0.00
foreign 56.76 measure 757.39 28.83 571.80 8.32 728.56 equity fund
stock ment instrumen
ts
Investme
Domesti Fair nts in
c and 1,030,00 value 11,460,8 -203,262 10,227,5 62,542.2 11,257,5 other Own
002246 SNC 0.00 0.00
foreign 0.00 measure 58.15 .16 95.99 0 95.99 equity fund
stock ment instrumen
ts
Investme
Domesti Fair nts in
c and 51,120,0 value 95,561,8 14,921,3 59,363,1 110,483, other Own
01983 LZBANK 0.00 0.00
foreign 00.00 measure 25.55 57.46 83.01 183.01 equity fund
stock ment instrumen
ts
64,869,1 313,473, 10,125,0 258,729, 6,657,66 323,598,
Total -- 0.00 0.00 -- --
56.76 441.09 66.47 350.80 0.52 507.56
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
6.4.2. Derivative investment
□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 Registered Operating Operating
Total assets Net assets Net profit
name type scope capital revenue profit
Sales
Company of
Sales of 100,000,00 8,479,253,9 5,295,101,5 8,957,351,4 4,104,072 3,107,154,76
Luzhou Subsidiary
baijiu 0.00 03.89 12.25 30.08 ,345.34 0.49
Laojiao Co.,
Ltd.
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable √N/A
Notes for major holding companies and joint stock companies
9. Structured entities controlled by the Company
Applicable √ N/A
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
10. Risks facing the Company and countermeasures
A. The uncertainty of the pandemic: The COVID-19 pandemic has gradually eased, but there are still
different degrees of fluctuation, and there are still uncertainties in its impact (including the extent) on
domestic baijiu consumption. The Company will actively respond to the latest requirements for pandemic
prevention and control, strictly prevent and control the pandemic, and ensure the normal and orderly
production and operation of the Company.
B. Macroeconomic factors: In recent years, there are frequent frictions in international trade. The
macroeconomic environment remains difficult. If the total economic demand declines, it will affect the
residents' per capita disposable income and their willingness to consume, which will have a negative
impact on the baijiu industry. The Company will strengthen study of macroeconomic situations and
industrial trends, and make timely adjustments to operating strategies, so as to adapt to changes in the
external environment.
C. Policy risk: As the pandemic gradually eases and the economy recovers, mainstream countries are
expected to gradually withdraw the loose monetary policies, which may affect China's relevant policies.
In the short term, the baijiu consumption market may be affected. In response, the Company will keep a
close eye on economic policies at home and abroad, and make timely adjustments to its operating
strategies accordingly.
D. Risk of food safety: Given that food safety is a major concern of the society, the Company will further
practice the idea of "making the quality visible", enhance and extend the quality regulation system, and
build an intelligent, standardized and visible quality tracing system with higher level.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Section IV Corporate Governance
1. Annual and extraordinary general meeting convened during the
reporting period
1.1 General meeting convened during the reporting period
Investor Date of the Date of
Meeting Type Resolution of the meeting
participation ratio meeting disclosure
Announcement No.:
2021-27 of Luzhou Laojiao
The 2020 Annual Annual General Co., Ltd. on Resolutions of
61.16% 29 June 2021 30 June 2021
General Meeting Meeting the 2020 Annual General
Meeting
(http://www.cninfo.com.cn/)
1.2 Extraordinary general meetings 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
Xiong Pingting Director Elected 29 June 2021
Independent
Chen You’an Elected 29 June 2021
director
Sun Independent
Elected 29 June 2021
Dongsheng director
Independent
Lyu Xianpei Elected 29 June 2021
director
Chairman of the
Yang Ping Elected 29 June 2021
Supervisory
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Committee
Guo Shihua Supervisor Elected 29 June 2021
Li Lunyu Supervisor Elected 29 June 2021
Director and
Termination of employment upon Termination of employment upon
Jiang Yuhui deputy general 29 June 2021
the expiry of the office term the expiry of the office term
manager
Deputy general Termination of employment upon Termination of employment upon
Wu Qin 29 June 2021
manager the expiry of the office term the expiry of the office term
Independent Termination of employment upon Termination of employment upon
Du Kunlun 29 June 2021
director the expiry of the office term the expiry of the office term
Independent Termination of employment upon Termination of employment upon
Xu Guoxiang 29 June 2021
director the expiry of the office term the expiry of the office term
Independent Termination of employment upon Termination of employment upon
Tan Lili 29 June 2021
director the expiry of the office term the expiry of the office term
Termination of employment upon Termination of employment upon
Yang Benhong Supervisor 29 June 2021
the expiry of the office term the expiry of the office term
Termination of employment upon Termination of employment upon
Cao Cong Supervisor 29 June 2021
the expiry of the office term the expiry of the office term
3. Profit distribution and converting capital reserves into share capital
for the reporting period
Applicable √ N/A
No such cases in the reporting period.
4. Implementation of any equity incentive plan, employee stock
ownership plan or other incentive measures for employees
Applicable √ N/A
No such cases in the reporting period.
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2021 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
Name of
main Distribution
Number of Pollution Approved
Company pollutant Discharge of Emission Total Excessive
discharge discharge total
name and type discharge concentration emission discharge
outlet standard emission
particular outlet
pollutant
Luzhou Luohan
Direct
Laojiao COD 1 Brewery 27.190mg/L 50mg/L 5.5665t 25t/a No
discharge
Co., Ltd. Eco-Park
Luzhou Luohan
Ammonia Direct
Laojiao 1 Brewery 0.757mg/L 5mg/L 0.1530t 2.5t/a No
nitrogen discharge
Co., Ltd. Eco-Park
Luzhou Luohan
Total Direct
Laojiao 1 Brewery 8.372mg/L 15mg/L 1.7084t 7.5t/a No
nitrogen discharge
Co., Ltd. Eco-Park
Luzhou Total Luohan
Direct
Laojiao phosphoru 1 Brewery 0.223mg/L 0.5mg/L 0.0461t 0.25t/a No
discharge
Co., Ltd. s Eco-Park
Luzhou Luohan
Organized
Laojiao PM 2 Brewery 6.341mg/m3 20mg/m 0.6101t 3.9t/a No
discharge
Co., Ltd. Eco-Park
Luzhou Luohan
Sulfur Organized
Laojiao 2 Brewery 0.0737mg/m3 50mg/m 0.0067t 11.5t/a No
dioxide discharge
Co., Ltd. Eco-Park
Luzhou Luohan
Organized
Laojiao Oxynitride 2 Brewery 21.404mg/m3 150mg/m 2.0613t 45.4t/a No
discharge
Co., Ltd. Eco-Park
Luzhou Huangyi
Indirect
Laojiao COD 1 Brewery 38.490mg/L 400mg/L 8.9237t 400t/a No
discharge
Co., Ltd. Eco-Park
Luzhou Ammonia Indirect 1 Huangyi 0.365mg/L 30mg/L 0.0830t 30t/a No
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Laojiao nitrogen discharge Brewery
Co., Ltd. Eco-Park
Luzhou Huangyi
Total Indirect
Laojiao 1 Brewery 6.309mg/L 50mg/L 1.4672t 50t/a No
nitrogen discharge
Co., Ltd. Eco-Park
Luzhou Total Huangyi
Indirect
Laojiao phosphoru 1 Brewery 0.699mg/L 3mg/L 0.1614t 3t/a No
discharge
Co., Ltd. s Eco-Park
Luzhou Huangyi
Organized
Laojiao PM 3 Brewery 0.566mg/m3 5mg/m 0.3844t 4.43t/a No
discharge
Co., Ltd. Eco-Park
Luzhou Huangyi
Sulfur Organized
Laojiao 3 Brewery 0.230mg/m3 35mg/m 0.1661t 30.96t/a No
dioxide discharge
Co., Ltd. Eco-Park
Luzhou Huangyi
Organized
Laojiao Oxynitride 3 Brewery 16.629mg/m3 100mg/m 10.736t 88.47t/a No
discharge
Co., Ltd. Eco-Park
Information about construction and operation of anti-pollution installations
Waste water: Areas of the Company that produce wastewater are National Cellar Base, Xiaoshi Base,
Zaojiaoxiang Base, Anning Park, Luohan Brewery Eco-Park, and Huangyi Brewery Eco-Park. In
National Cellar Base, Xiaoshi Base, Zaojiaoxiang Base, and Anning 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,
which enables real-time networking operation of monitoring data with the Environmental Information
Center of Luzhou City. The Company's facilities for prevention and control of wastewater pollution are
under normal operations, ensuring up-to-standard discharge through general discharging outlets.
Waste gas: Areas of the Company that produce exhaust gas are National Cellar Base, Xiaoshi Base,
Zaojiaoxiang Base, Luohan Brewery Eco-Park, and Huangyi Brewery Eco-Park. In National Cellar Base,
Xiaoshi Base and Zaojiaoxiang Base, small natural gas boilers and direct-fired bottom boilers are used.
The boilers of Luohan Brewery Eco-Park (20t/h, 30t/h) and the boilers of Huangyi Brewery Eco-Park
(20t/h, 75t/h, 75t/h) are equipped with online monitors to automatically monitor exhaust gas, which
enables real-time networking operation of monitoring data with the Environmental Information Center of
Luzhou City. 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.
Environmental impact assessment for construction project and other environmental protection
administrative permission
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
The Company’s new reconstruction and expansion projects are carried out in accordance with the
requirements of national environmental protection laws and environmental assessment laws. The
environmental assessment and approval procedures shall be completed before commencement of the
projects. After the projects are completed, the environmental protection inspection and acceptance shall
be carried out in accordance with the requirements of the environmental assessment. Construction
projects started in the first half of 2021 have gone through relevant approval procedures in accordance
with environmental protection requirements.
Emergency plan for environmental emergencies
The Company developed the Contingency Plan for Environmental Emergencies (Revision 2020), the
Environmental Risk Assessment Report and the Emergency Resources Survey Report, and reported to
the Environmental Emergency Service Center of Luzhou for filing. Institutions of the Company organized
training programs on the contingency plan for employees, and carried out drills of contingency plans,
which improved employees' capability to respond to environmental emergencies.
Environmental self-monitoring program
The Company developed the environmental self-monitoring plan and entrusted third-party agencies to
conduct environmental self-monitoring. The automatic online monitors for exhaust gas of Luohan
Brewery Eco-Park and Huangyi Brewery Eco-Park are connected to the Information Center of the
Bureau of Ecology and Environment of Luzhou; self-monitoring information are released on
"Environmental Credit China" and the "Platform of Sichuan Province for Management and Sharing of
Information about Pollution Source Monitoring" to facilitate supervision from all walks of life.
Administrative punishments received in the reporting period due to environmental issues
N/A
Other information about environmental protection that should be disclosed
N/A
Other information about environment protection
N/A
2. Social responsibility
2.1. Rural revitalization plan
A. Basic strategies
2021 is the first year of China's new journey of building a modern socialist country in an all-round way
and journey toward the second centenary goal. Under the guidance of the central, provincial and
municipal Party committees and governments, the Company adheres to the corporate philosophy of
"baijiu brewed with the universe, spirit generated by the world". It thoroughly implements the policy of
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
rural revitalization, and continues to provide assistance for two designated villages, namely Xiangtian
Village, Longshan Town, Gulin County, Luzhou City, and Guntang Village, Maiwa Township, Hongyuan
County, Aba Prefecture. With the "rural revitalization strategy" as its pillar and the development of "new
civilized villages" and "new villages with four favourable aspects" as its objectives, the Company
continuously consolidates poverty alleviation achievements and lays a solid foundation for the
revitalization of the two villages.
B. Overall objectives
The Company adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics
for a New Era, and fully implements the arrangement of the central and provincial Party committees as
well as provincial government regarding effectively connecting consolidation and expansion of poverty
alleviation achievements with rural revitalization. The Company shall improve areas of weakness,
consolidate the achievements, lay the foundation, promote the revitalization in accordance with the
requirements of work plan for assisting designated villages arranged by government agencies directly
managed by Sichuan provincial government and other relevant departments, and comprehensively
improve the work of assisting the two designated villages, help them get rid of poverty and promote their
revitalization and development.
C. Key tasks
In accordance with the overall requirements of "prosperous industry, liveable ecology, civilized rural style,
effective governance and well-off life" in rural revitalization and construction, the Company will adhere to
the principle of equal emphasis on "blood transfusion, haematopoiesis, and blood circulation"; continue
to consolidate poverty alleviation achievements; explore the path of sustainable development; centre on
promoting the revitalization of industries, talents, culture, ecology, and organization in the two villages;
focus on key points, improve areas of weakness, and strength weaknesses; continue to accelerate the
pace of agricultural modernization in the two villages, develop and expand rural industries, build
ecologically liveable and beautiful villages, flourish and develop rural culture, improve the modern rural
governance system, and guarantee and improve the well-being of rural people.
D. Guarantee measures
Adhering to the “four-in-one” assistance mechanism, the Company will establish a “four-in-one”
assistance mechanism where the leadership team takes overall responsibilities, the Company’s
assistance working group is responsible for promoting the assistance, each staff member takes
respective responsibilities, and staff members stationed in the villages are responsible for specific
assistance work. It will shift the focus of work from poverty alleviation to comprehensively promoting rural
revitalization and consolidation and expansion of poverty alleviation achievements, establishing and
improving dynamic monitoring on the prevention of return to poverty, follow-up support for relocation,
follow-up management and supervision of poverty alleviation project assets, and normalizing assistance
for low-income households in the villages. It will also formulate assistance plans and implement them
year by year, establish work accounts, and refine the plan to assign the tasks to departments, projects,
and individual persons, and implement them at all levels to ensure the orderly development of rural
revitalization.
2.2. Summary of rural revitalization
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
In the first half of 2021, the Company mainly made relevant preparations for the transition from poverty
alleviation to rural revitalization. Specifically, they are as follows:
A. The Company went to Xiangtian Village, Longshan Town, Gulin County, and Guntang Village, Maiwa
Township, Hongyuan County, Aba Prefecture to carry out New Year greeting activities. It visited a total
of 182 households, distributed cash and supplies, and supported Xiangtian Village to carry out activities
such as the summary meeting of poverty alleviation work in 2020 and ethics awards assessment.
B. The Company openly selected reserve candidates for cadres stationed in the village for poverty
alleviation, and reported them to superior departments according to the requirements of the provincial
and municipal organization departments. The rotation of cadres stationed in the village was completed
by the end of June. So far, three new cadres under rotation program have stationed in the village for
carrying out the work.
C. The Company's grassroots Party organizations have combined the theme of "I do practical things for
the masses" with publicity and education in rural revitalization, and carried out various activities.
D. The Company went to two villages to connect assistance in rural revitalization and inspected 2021
assistance projects.
2.3. Rural revitalization achievements
Awards (content and level)
National The Company won National Advanced Collective for Poverty Alleviation
Provincial 1. The Company won 2020 Outstanding Contribution Unit in the Fight
Against COVID-19 presented by Sichuan Charity Federation.
2. The Company won 2021 Outstanding Contribution Award for Social
Poverty Alleviation issued by Sichuan Province Foundation for Poverty
Alleviation.
3. Zhang Wenping, a poverty alleviation cadre, was rated as one of “Top
Ten Poverty Alleviation Figures in Sichuan State-owned Enterprises” by the
Provincial State-owned Assets Supervision and Administration Commission.
2.4. Follow-up rural revitalization plan
A. Strengthening connection with and guidance on villages designated for assistance
a. Guiding and urging the implementation of policies. The Company will participate in at least 2 joint
meetings held by the leading unit throughout the year; guide and urge Hongyuan County and Gulin
County to shift the focus of work from poverty alleviation to promoting comprehensive rural revitalization
and consolidating and expanding poverty alleviation achievements. By taking into account the
assistance needs raised by the two villages, the Company will ensure that the assistance work is carried
31
2021 Interim Report of Luzhou Laojiao Co., Ltd.
forward in an orderly and effective manner through joint research, clear division of labour, clarification of
responsibilities, and item by item implementation. Based on the Company's own advantages, it will make
innovation in assistance measures to help the two villages actively strive to create advanced
demonstration villages for the implementation of rural revitalization strategy.
b. Formulating assistance plans and implementing them year by year. The Company will carry out
in-depth investigations and studies in two villages designated for assistance. By taking into account the
“14th Five-Year Plan” and overall plan for rural revitalization in Gulin and Hongyuan counties, it will
develop a five-year assistance plan with clear goals and in line with the reality. It will develop annual
assistance plans in accordance with the master assistance plan, implement them year by year, establish
work accounts, assign the tasks to the departments, projects and individuals, and thoroughly implement
the plans level by level.
c. Adhering to the "four-in-one" assistance mechanism. The Company's Secretary of Party Committee
and Chairman of the Board of Directors should take the first responsibility, hold special meetings to
arrange and deploy assistance work at least 2 times a year; each member of the leadership team should
go to the county and the village for investigation and guidance no less than 6 times a year. The leader in
charge of the work should convene assistance working groups and related personnel every quarter to
study assistance for designated villages, and promote the implementation of assistance work at least 4
times a year.
d. Doing a good job in consumption related assistance. The Company will continue to carry out
"purchase instead of donation" project, and sell at least CNY 2 million of Hongyuan beef jerky series
products and yak milk powder on the online platform through Luzhou Laojiao Electronic Commerce Co.,
Ltd. every year. It will organize its cadres and employees to purchase at least CNY 200,000 of rice,
poultry, livestock, and vegetables from Xiangtian Village per year.
e. Carrying out the activities of "I do practical things for the masses". The Company will take assistance
for designated villages as an important form of carrying out the activities of "I do practical things for the
masses", each subordinate involved in the work should list the items under the activities of "I do practical
things for the masses", and make effort to solve the "urgent and difficult problems faced by the masses"
for the two villages, enhancing their sense of happiness and security.
B. Laying a solid foundation and continuing to promote rural revitalization
a. Improving production and living conditions. The Company will assist Guntang Village of Hongyuan
County in improving the infrastructure construction and plans to build a cultural activity square in the
village. It will assist the local government in promoting the development of transportation and industry in
the two villages, promote the revolution of rural toilets in Xiangtian Village, carry out the treatment of
domestic garbage and sewage, and improve the village's appearance.
b. Continuing to develop industry and collective economy. Based on the advantageous resources of
Hongyuan County and Gulin County, the Company will focus on follow-up cultivation of industries in a
sustainable manner, respect market laws and industrial development laws, and continue to carry out
32
2021 Interim Report of Luzhou Laojiao Co., Ltd.
assistance work to create a public welfare brand for villages in Chengdu; help the two villages cultivate
green and organic agricultural products with geographical indications; help them standardize and
establish village collective economic organizations; promote collective economic organizations to
formulate and improve their articles of association, and establish and improve legal person governance
mechanisms; make good use of village-level poverty alleviation assets; and ensure sustainable
effectiveness.
c. Adopting multiple measures to stabilize employment and increase income. The Company will make
good use of the employment information platform, dynamically understand the employment needs of the
masses in the two villages, organize and mobilize villagers to migrate for work, increase the training of
practical talents by inviting experts to give lectures and holding special meetings, and organize pre-job
training in a targeted manner to improve villagers’ job skills, help build rural factories and workshops,
encourage the development of farmyard economy such as handicraft workshops, family farms, provide
jobs for people who have been lifted out of poverty and those who are prone to poverty.
d. Strengthening grassroots Party organizations. The Company will cooperate with Party branches in the
two villages and select personnel familiar with rural work and Party affairs to set up a Party building
guidance office. The selected personnel should stay in the villages for 3 to 5 days each year to guide
Three Meetings and One Lecture, Party branch meeting, democratic assessment of Party members and
other systems, and cooperate with the local organization department to build a strong village Party
branch. The Company will guide migrant workers, college graduates, and demobilized soldiers to return
to their hometowns to start businesses, and help cultivate a group of foregoers in getting rich. It will
cultivate and develop Party activists, Party members and reserve cadres. It will draw lessons from the
successful experience and practices of poverty alleviation, guide the two villages to establish and
improve rural governance system led by the Party organization and combining autonomy, rule of law,
and rule of morality, and promote the modernization of rural governance system and governance
capabilities.
e. Advocating a new style of civilization. The Company will persist in improving the villagers' will and
wisdom, continue to carry out in-depth education on gratitude and forging ahead, widely publicize the
great achievements in poverty alleviation and the central and provincial Party committees' decisions and
deployments on comprehensively promoting rural revitalization through special meetings and farmers
night schools, at least 4 times a year, and guide the masses to listen to the Party, remember the Party's
favour, and follow the Party. It will organize village group cadres, masses and forgoers in getting rich to
make on the spot investigation and study in advanced areas in rural revitalization, once a year, to
broaden their horizons, change their concepts, and improve their quality. It will strengthen the moral
construction of villages designated for assistance and enrich the spiritual and cultural life of the villagers;
persist in carrying out the Bridge Project to help students in the two villages realize their dreams and
prevent the intergenerational transmission of poverty.
f. Carrying out paired-up assistance activities. Each member of the Company’s leadership team and
each grassroots Party organization will tie with and assist one household in poverty or prone to poverty,
set up a paired-up assistance account, carry out “point-to-point” and “one-to-one” paired-up assistance,
and endeavour to provide accurate assistance with obvious achievements.
33
2021 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.
34
2021 Interim Report of Luzhou Laojiao Co., Ltd.
5. Explanation of the board of directors and the supervisory committee
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 Execution of
Whether it forms Progress in Trial results and
Profile of litigation involved in judgment of Date of Disclosure
an estimate litigation impacts of litigation
(arbitration) the case (CNY’ litigation disclosure index
liability (arbitration) (arbitration)
0,000) (arbitration)
The Company filed a For the losses that The Company
lawsuit with ABC the Company applied to Hunan
Changsha Yingxin The second cannot recover Province Higher
Branch over a trial has been through criminal People's Court for
See Section
deposit dispute, and concluded, execution enforcement of
15 October VI “Other
the case has been 14,942.5 No and the case procedures, 40% the verdict. Hunan
2014 significant
completed in the first is now at the shall be borne by Province Higher
events”
instance of Hunan stage of ABC Changsha People's Court
Province Higher enforcement. Yingxin Branch, ruled that Hunan
People's Court and 20% shall be borne Changsha
the final trial of the by ABC Changsha Intermediate
35
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Supreme People's Hongxin Branch and People’s Court
Court. The case is the rest shall be should see to the
now at the stage of borne by the execution of the
enforcement. Company itself. verdict. Upon the
enforcement, the
banks have paid
part of the
compensations.
The Company filed a
lawsuit with ICBC
Nanyang Zhongzhou
The second trial is See Section
Branch over a The second The second trial is
in process and the 10 January VI “Other
deposit dispute, and 15,000 No trial is in in process and the
case is still 2015 significant
the case is now in process case is still pending.
pending. events”
the second trial by
the Supreme
People's Court.
Other litigation
Applicable √ N/A
9. Punishments and rectifications
Applicable √ N/A
No such cases in the reporting period.
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.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
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, or finance companies controlled
by the Company
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, finance company controlled by the Company or any
other related parties.
11.6. 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.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
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.
12.3. Entrust assets management
Applicable √ N/A
No such cases in the reporting period.
12.4. Significant contracts in the ordinary course of business
Applicable √ N/A
12.5. Other significant contracts
Applicable √ N/A
No such cases in the reporting period.
13. Other significant events
√ Applicable N/A
A. The Company’s three savings deposits of CNY 500 million, including ABC Changsha Yingxin Branch
and ICBC Nanyang Zhongzhou Branch are involved in contract disputes. Combined with the assets
preservation situation of the public security authorities and professional legal advice issued by lawyers,
the Company has made a provision of CNY 200 million for bad debts for the deposit of CNY 500 million
38
2021 Interim Report of Luzhou Laojiao Co., Ltd.
for contract disputes. In 2020, the Supreme People’s Court made a final judgment on the dispute arising
out of the deposit contract between the Company and ABC Changsha Yingxin Branch (cancelled during
the appeal after the first-instance judgment, with its rights and obligations assumed by ABC Changsha
Kaifu Branch). In respect of the losses that couldn’t be recovered through criminal procedures, ABC
Changsha Kaifu Branch should bear 40% of the compensation liability, ABC Changsha Hongxing
Branch 20%, and the remaining losses should be borne by the Company. The Company applied to
Hunan Province Higher People's Court for enforcement of the verdict. Hunan Province Higher People's
Court ruled that Hunan Changsha Intermediate People’s Court should see to the execution of the verdict.
Upon the enforcement by Hunan Changsha Intermediate People’s Court, ABC Changsha Kaifu Branch
and ABC Changsha Hongxing Branch paid part of the respective compensations as required by the civil
judgment. The Company received in July 2021 an amount of CNY 52,812,061.75 from Hunan Changsha
Intermediate People’s Court. Meanwhile, the civil lawsuit of the Company with ICBC Nanyang
Zhongzhou Branch over a deposit dispute is still in the second trial. As of the date of this Report, the
Company had recovered a total amount of CNY 267,767,200 for the three disputes.
See details in the Company’s announcements:
Date of announcement No. Catalogue Official website
15 October 2014 2014-35 Announcement of significant litigation http://www.cninfo.com.cn/
12 November 2014 2014-41 Announcement of significant
litigation progress
6 December 2014 2014-43 Announcement of significant
litigation progress part II
10 January 2015 2015-1 Announcement of significant events
4 February 2015 2015-4 Announcement of significant events
progress
25 March 2015 2015-11 Announcement of significant
litigation progress part III
18 April 2015 2015-20 Announcement of significant
litigation progress part IV
22 April 2015 2015-21 Announcement of significant events
progress part II
24 April 2015 2015-25 Announcement of significant
litigation progress part V
15 July 2015 2015-44 Announcement of significant
litigation progress part VI
22 July 2015 2015-45 Announcement of significant
litigation progress part VII
6 June 2018 2018-17 Announcement of significant
litigation progress part VIII
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
7 May 2019 2019-11 Announcement of significant
litigation progress part IX
17 May 2019 2019-13 Announcement of significant
litigation progress part X
24 March 2020 2020-6 Announcement of significant
litigation progress part XI
6 May 2020 2020-14 Announcement of significant
litigation progress part XII
7 November 2020 2020-34 Announcement of significant
litigation progress part XIII
6 July 2021 2021-30 Announcement of significant
litigation progress part XIV
B. Pursuant to the Accounting Standard No. 21 for Business Enterprises—Leases issued by the Ministry
of Finance, the Company has adopted the said new accounting standard since 1 January 2021. For the
affected financial statement line items and amounts, see “Section X, 5.37. Changes in significant
accounting policies and accounting estimates”.
14. Significant events of subsidiaries
√ Applicable □ N/A
The Company invested in the technical upgrade program of brewing and implemented the program with
the wholly-owned subsidiary, Brewing Company, as the entity. On 30 June 2020, the Proposal on
Increasing Investment in the Technical Upgrade Program of Brewing was approved by the 2019 Annual
General Meeting upon deliberation. According to the proposal, extra CNY 1,462,996,500 of funds would
be invested in the technical upgrade program of brewing. Upon this increase of funds, the total
investment in the technical upgrade program of brewing would reach CNY 8,877,276,500. For more
information, please refer to the following announcements: Announcement on Investing in the Technical
Upgrade Program of Brewing by the Subsidiary disclosed on 28 April 2016 with an Announcement No. of
2016-12; Announcement on Increasing Investment in the Technical Upgrade Program of Brewing
disclosed on 2 June 2020 with an Announcement No. of 2020-17 (http://www.cninfo.com.cn/). As of 30
June 2021, 100% of the project has been completed.
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2021 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 of Bonus on of
Number Proportion Other Subtotal Number Proportion
new shares shares capital
reserves
I. Restricted shares 445,921 0.03% 66,000 66,000 511,921 0.03%
1. Shares held by the state
2. Shares held by
state-owned corporations
3. Shares held by other
445,921 0.03% 66,000 66,000 511,921 0.03%
domestic investors
Of which: shares held by
domestic corporations
Shares held by domestic
445,921 0.03% 66,000 66,000 511,921 0.03%
individuals
4. Shares held by foreign
corporations
Of which: shares held by
foreign corporations
Shares held by foreign
individuals
1,464,306, 1,464,240,
II. Non-restricted shares 99.97% -66,000 -66,000 99.97%
555 555
1,464,306, 1,464,240,
1.CNY common shares 99.97% -66,000 -66,000 99.97%
555 555
2. Domestically listed foreign
shares
3. Overseas listed foreign
shares
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
4. Other
1,464,752, 1,464,752,
III. Total shares 100.00% 0 0 100.00%
476 476
Reasons for the change in shares
Applicable √ N/A
Approval of share changes
Applicable √ N/A
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
1.2 Changes in restricted shares
√ Applicable □ N/A
Unit：Share
Number of
Decrease in Increase in Number of
restricted
restricted restricted restricted
Name of shares held at Reason for Date of
shares during shares during shares held at
shareholder the beginning of restriction unlocking
the reporting the reporting the end of the
the reporting
period period reporting period
period
Locked-up
Yang Benhong 7,500 0 2,500 10,000 shares due to 2021.12.29
termination of
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
employment
Locked-up
shares due to
Jiang Yuhui 190,500 0 63,500 254,000 2021.12.29
termination of
employment
Total 198,000 0 66,000 264,000 -- --
2. Issuance and listing of securities
Applicable √ N/A
3. Total number of shareholders and their shareholdings
Unit：Share
Total number of preferred
Total number of common
shareholders with resumed voting
shareholders at the end of the 218,549 0
rights by the end of the reporting
reporting period
period (if any) (see Note 8)
Shareholdings of common shareholders with a shareholding percentage over 5% or the top 10 common shareholders
Total Pledged, marked or frozen shares
common Number of Number of
Increase/dec
Shareholdi shares held holding holding
Nature of rease during
Name of shareholder ng by the end restricted non-restricte Status of
shareholder the reporting Number of shares
percentage of the common d common shares
period
reporting shares shares
period
Luzhou Laojiao Group State-owned
26.02% 381,088,389 0 0 381,088,389
Co., Ltd. corporation
Luzhou XingLu
State-owned
Investment Group Co., 24.99% 365,971,142 0 0 365,971,142
corporation
Ltd.
Bank of China Co., Ltd.
–Baijiu index
classification securities Other 2.61% 38,169,467 8,332,482 0 38,169,467
investment fund by
China Merchants Fund
Bank of China Co., Ltd- Other 2.53% 37,000,115 9,300,115 0 37,000,115
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Blue Chip Selected
hybrid securities
investment fund by E
fund
China Securities
Finance Corporation Other 2.31% 33,842,059 0 0 33,842,059
limited
Hong Kong Securities
Foreign
Clearing Company 2.08% 30,404,272 -2,497,390 0 30,404,272
corporation
Limited
Industrial and
Commercial Bank of
China Co., Ltd.-Newly
Other 1.60% 23,499,891 8,421,980 0 23,499,891
growth hybrid securities
investment fund by
Invesco Great Wall
Central Huijin Asset State-owned
1.43% 20,937,500 0 0 20,937,500
Management Co., Ltd. corporation
Agricultural Bank of
China Co., Ltd. -
Consumption industry
Other 0.88% 12,868,345 -1,118,482 0 12,868,345
stock - based securities
investment fund by E
fund
China Life Insurance
Company
Ltd.-Tradition-General
Other 0.76% 11,061,841 - 0 11,061,841
Insurance
Product-005L-CT001Sh
en
Strategic investors or general
corporations become the top-ten
N/A
common shareholders due to placing 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. For details, please refer to the
announcement of the Company on 5 January 2016 - Announcement on the agreement of persons
Related parties or acting-in-concert
acting in concert signed by shareholders. The announcement number is 2016-1
(http://www.cninfo.com.cn/). The two companies signed the renewed agreement of persons acting in
concert on 27 May 2021. For details, please refer to the announcement of the Company on 27 May
2021 - Announcement on the renewed agreement of persons acting in concert signed by shareholders.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
The announcement number is 2021-18 (http://www.cninfo.com.cn/).
2. 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
N/A
entrusted with voting rights or waiving
voting rights
Special account for repurchased shares
among the top 10 shareholders (if any) N/A
(see note 11)
Shareholdings of the top 10 non-restricted common shareholders
Number of non-restricted common shares held by Type of shares
Name of shareholder
the end of the reporting period Type Number
Luzhou Laojiao Group Co., Ltd. 381,088,389 CNY common shares 381,088,389
Luzhou XingLu Investment Group Co.,
365,971,142 CNY common shares 365,971,142
Ltd.
Bank of China Co., Ltd. –Baijiu index
classification securities investment fund 38,169,467 CNY common shares 38,169,467
by China Merchants Fund
Bank of China Co., Ltd- Blue Chip
Selected hybrid securities investment 37,000,115 CNY common shares 37,000,115
fund by E fund
China Securities Finance Corporation
33,842,059 CNY common shares 33,842,059
limited
Hong Kong Securities Clearing
30,404,272 CNY common shares 30,404,272
Company Limited
Industrial and Commercial Bank of
China Co., Ltd.-Newly growth hybrid
23,499,891 CNY common shares 23,499,891
securities investment fund by Invesco
Great Wall
Central Huijin Asset Management Co.,
20,937,500 CNY common shares 20,937,500
Ltd.
Agricultural Bank of China Co., Ltd. -
Consumption industry stock - based 12,868,345 CNY common shares 12,868,345
securities investment fund by E fund
China Life Insurance Company
Ltd.-Tradition-General Insurance 11,061,841 CNY common shares 11,061,841
Product-005L-CT001Shen
The statement of association or See the table above
45
2021 Interim Report of Luzhou Laojiao Co., Ltd.
acting-in-concert between the top 10
shareholders of unrestricted common
shares and between the top 10
shareholders of common unrestricted
shares and top 10 common
shareholders
Top 10 common shareholders
participating in securities margin trading N/A
(if any) (see note 4)
Did any of the top 10 common shareholders or the top non-restricted common shareholders of the
Company conduct any promissory repurchase during the reporting period.
Yes √ No
The top 10 non-restricted common shareholders, the top10 common shareholders did not conduct any
promissory repurchase during the reporting period.
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 2020 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.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Section VIII Preferred Shares
Applicable √ N/A
No preferred stock in the Company during the reporting period.
47
2021 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
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
2019 phase,
Public interests
Offering of will be paid
Corporate by year
Bond of and the
Shenzhen
Luzhou 19 Lao 27 August 28 August 28 August 2,500,000, principal
112959.SZ 3.58% Stock
Laojiao Jiao 01 2019 2019 2024 000.00 will be
Exchange
Co., Ltd. repaid in
for lump sum
Qualified at maturity.
Investors The
(Phase I) interests
will be paid
once every
year and
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
the
interests
for the last
installment
will be paid
together
with the
principal.
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 17 March 17 March 17 March 1,500,000, at maturity.
149062.SZ 3.50% Stock
Laojiao Jiao 01 2020 2020 2025 000.00 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.
The bonds are applicable to eligible investors who have qualified securities
accounts with Shenzhen Branch of China Securities Depository and Clearing Co.,
Ltd., are permitted to engage in the subscription and transfer of corporate bonds in
accordance with the Management Measures for the Issue and Transaction
Appropriate arrangement of the
Management of Corporate Bonds, Management Measures for the Suitability of
investors (if any)
Securities and Futures Investors, Management Measures of Shenzhen Stock
Exchange for the Suitability of Securities Market Investors, and relevant laws and
regulations, and have the corresponding risk identification and bearing capacity
(excluding those prohibited by laws and regulations)
49
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Trading systems applicable Tradable by way of bidding, offering, inquiry and agreement
Risk of termination of listing and
trading (if any) and N/A
countermeasures
Overdue bonds
Applicable √ N/A
2.2. Triggering and execution of issuer or investor option clauses and investor
protection clauses
√ Applicable N/A
The term of “19 Lao Jiao 01” is five years with the issuer’s option for adjustment to the stated interest
rate and the investor’s option for sell back at the end of the 3rd year. The said clause was not triggered in
the reporting period.
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
In order to fully and effectively safeguard the interests of bondholders, the issuer has formulated a series
of work plans for the timely and full redemption of "19 Lao Jiao 01" and "20 Lao Jiao 01", including
assigning special departments and personnel to participate in the management, arranging debt
repayment funds, formulating management measures, hiring supervising banks and signing tripartite
supervision agreements with supervising banks and bond trustees, strengthening information disclosure,
and developed a set of safeguard measures to ensure the safe redemption of the bonds. During the
reporting period, the above status remained unchanged.
3. Debt instruments as a non-financial enterprise
Applicable √ N/A
No such cases in the reporting period.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
4. Convertible corporate bonds
Applicable √ N/A
No such cases in the reporting period.
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 2021 31 December 2020 Change
Current ratio 247.72% 256.72% -9.00%
Debt/asset ratio 34.78% 33.78% 1.00%
Quick ratio 178.56% 195.15% -16.59%
H1 2021 H1 2020 Change
Net profits before
non-recurring gains and 420,865.01 323,395.18 30.14%
losses
Debt/EBITDA ratio 145.46% 111.71% 33.75%
Interest cover (times) 57.98 43.78 32.43%
EBITDA-to-interest cover
60.65 45.05 34.63%
(times)
51
2021 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 2021
Monetary Unit: CNY
Item Balance as at 30 June 2021 Balance as at 31 December 2020
Current assets:
Cash and cash equivalents 13,611,381,648.55 11,624,870,340.60
Settlement reserves
Lending funds
Held-for-trading financial assets
Derivative financial assets
Notes receivables
Accounts receivables 6,711,515.89 1,507,852.43
Accounts receivables financing 2,143,072,245.18 3,209,371,766.35
Prepayment 126,208,497.06 74,685,537.38
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 148,937,967.02 127,032,931.42
Including：Interests receivable
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Dividends receivable 36,941,917.50 1,407,900.00
Buying back the sale of financial
assets
Inventories 5,916,574,963.71 4,695,663,431.25
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 118,794,070.33 156,565,424.18
Total current assets 22,071,680,907.74 19,889,697,283.61
Non-current assets:
Disbursement of loans and
advances
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2,555,473,912.21 2,477,667,171.27
Investments in other equity
357,285,465.89 347,160,399.42
instruments
Other non-current financial assets
Investment property
Fixed assets 7,880,413,111.37 6,887,108,174.72
Construction in progress 1,290,824,691.35 2,012,129,880.15
Productive biological assets
Oil and gas assets
Use right assets 55,525,013.10
Intangible assets 2,630,461,298.22 2,657,118,025.37
Development expenses
Goodwill
Long-term deferred expenses 1,884,885.71 2,305,902.21
Deferred tax assets 648,575,066.22 725,210,660.84
Other non-current assets 11,956,325.86 10,806,325.86
Total non-current assets 15,432,399,769.93 15,119,506,539.84
Total assets 37,504,080,677.67 35,009,203,823.45
Current liabilities:
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Short-term loans
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 121,285,117.60
Accounts payable 2,372,271,735.03 2,604,289,199.77
Advance from customer
Contract liabilities 1,408,069,576.54 1,678,837,166.94
Financial assets sold for repurchase
Deposits from customers and
inter-bank
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee benefits payable 443,558,179.03 505,022,627.19
Taxes payable 835,352,598.25 2,046,027,211.13
Other payable 3,566,879,442.88 501,623,924.54
Including：Interests payable
Dividends payable 3,004,207,328.28
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
100,836,563.54 72,219,178.08
year
Other current liabilities 183,049,063.92 218,267,353.36
Total current liabilities 8,910,017,159.19 7,747,571,778.61
Non-current liabilities:
Insurance contract reserves
Long-term loans
Bonds payable 3,989,418,783.85 3,987,872,100.02
Including：Preferred shares
Perpetual bonds
Lease liabilities 46,474,941.96
54
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 34,538,157.14 29,739,000.00
Deferred tax liabilities 64,682,337.72 62,151,071.11
Other non-current liabilities
Total non-current liabilities 4,135,114,220.67 4,079,762,171.13
Total liabilities 13,045,131,379.86 11,827,333,949.74
Owners' equity
Share capital 1,464,752,476.00 1,464,752,476.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 3,722,777,063.13 3,722,777,063.13
Less: treasury stock
Other comprehensive income 196,201,599.18 186,063,325.03
Special reserves
Surplus reserves 1,464,752,476.00 1,464,752,476.00
General risk reserve
Undistributed profits 17,458,622,606.40 16,236,513,212.43
Total equity attributable to owners of
24,307,106,220.71 23,074,858,552.59
the parent company
Non-controlling interests 151,843,077.10 107,011,321.12
Total owners' equity 24,458,949,297.81 23,181,869,873.71
Total liabilities and owners' equity 37,504,080,677.67 35,009,203,823.45
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Yan Li
Balance sheet of parent company
As at 30 June 2021
Monetary Unit: CNY
Item Balance as at 30 June 2021 Balance as at 31 December 2020
Current assets:
Cash and cash equivalents 13,261,169,639.69 11,100,327,211.33
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Held-for-trading financial assets
Derivative financial assets
Notes receivables
Accounts receivables 732,303.55 3,927.50
Accounts receivables financing
Prepayment 3,196,006.89 1,431,698.57
Other receivables 9,348,970,969.57 7,052,749,694.83
Including：Interests receivable
Dividends receivable 36,941,917.50 1,407,900.00
Inventories 4,006,394.24 850,076.30
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 78,509.44
Total current assets 22,618,075,313.94 18,155,441,117.97
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 5,962,576,727.02 5,884,091,712.47
Investments in other equity
356,956,544.26 346,831,477.79
instruments
Other non-current financial assets
Investment property
Fixed assets 739,885,278.90 640,254,574.76
Construction in progress 395,522,642.60 550,932,404.00
Productive biological assets
Oil and gas assets
Use right assets 596,511.48
Intangible assets 677,384,385.92 684,010,106.13
Development expenses
Goodwill
Long-term deferred expenses 1,772,735.77 2,180,811.89
Deferred tax assets 92,425,486.57 89,484,552.65
56
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Other non-current assets 1,526,325.86 1,526,325.86
Total non-current assets 8,228,646,638.38 8,199,311,965.55
Total assets 30,846,721,952.32 26,354,753,083.52
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 73,801,792.24 80,663,835.54
Advance from customer
Contract liabilities 2,097,869.96 753,349.81
Employee benefits payable 159,720,010.34 168,254,646.38
Taxes payable 76,017,337.61 153,437,992.21
Other payables 7,714,236,210.92 699,733,563.56
Including：Interests payable
Dividends payable 3,004,207,328.28
Liabilities held for sale
Non-current liabilities due within one
90,453,180.82 72,219,178.08
year
Other current liabilities 272,723.09 116,457.13
Total current liabilities 8,116,599,124.98 1,175,179,022.71
Non-current liabilities:
Long-term loans
Bonds payable 3,989,418,783.85 3,987,872,100.02
Including：Preferred shares
Perpetual bonds
Lease liabilities 138,854.29
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 952,000.00 1,904,000.00
Deferred tax liabilities 64,682,337.72 62,151,071.11
Other non-current liabilities
Total non-current liabilities 4,055,191,975.86 4,051,927,171.13
57
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Total liabilities 12,171,791,100.84 5,227,106,193.84
Owners' equity
Share capital 1,464,752,476.00 1,464,752,476.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 3,706,816,950.12 3,706,816,950.12
Less: treasury stock
Other comprehensive income 196,669,790.26 185,441,302.55
Special reserves
Surplus reserves 1,464,752,476.00 1,464,752,476.00
Undistributed profits 11,841,939,159.10 14,305,883,685.01
Total owners' equity 18,674,930,851.48 21,127,646,889.68
Total liabilities and owners' equity 30,846,721,952.32 26,354,753,083.52
Consolidated income statement
Monetary Unit: CNY
Item H1 2021 H1 2020
1. Total operating revenue 9,317,097,027.05 7,634,482,901.87
Including: Operating revenue 9,317,097,027.05 7,634,482,901.87
Interest income
Earned premium
Fee and commission
income
2. Total operating costs 3,859,318,360.86 3,461,876,189.00
Including: Cost of sales 1,335,154,943.46 1,386,636,428.85
Interest expense
Handling charges and
commission expenses
Refunded premiums
Net payments for
insurance claims
Net provision for
58
2021 Interim Report of Luzhou Laojiao Co., Ltd.
insurance contracts
Bond insurance expense
Reinsurance Expenses
Taxes and surcharges 992,673,552.12 679,513,830.82
Selling and distribution
1,183,247,931.92 1,111,958,208.98
expenses
General and administrative
439,561,779.70 360,013,975.76
expenses
Research and
36,688,121.08 32,028,581.28
Development expenses
Financial expenses -128,007,967.42 -108,274,836.69
Including：Interest
75,787,443.01 66,532,174.99
expenses
Interest income 206,402,358.25 173,389,442.03
Plus: Other income 9,041,045.01 10,441,675.27
Investment income ("-" for
128,006,644.21 104,338,756.40
losses)
Including: income from
investment in associates and joint 121,343,983.69 94,958,932.04
ventures
Income from the
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Foreign exchange gains ("-" for
losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
values(“-“ for losses)
Credit impairment losses (“-”
-218,830.33 -401,066.70
for losses)
Impairment losses(“-“ for
losses)
Gains from disposal of
180,849.31 104,663.83
assets("-" for losses)
3. Operating profits ("-" for losses) 5,594,788,374.39 4,287,090,741.67
Plus: non-operating income 25,711,304.83 10,944,441.71
59
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Less: non-operating expenses 8,283,409.08 39,217,386.08
4. Total profits before tax ("-" for
5,612,216,270.14 4,258,817,797.30
total losses)
Less: income tax expenses 1,346,062,434.86 1,034,276,363.11
5. Net profit ("-" for net loss) 4,266,153,835.28 3,224,541,434.19
5.1 By operating continuity
5.1.1 Net profit from continuing
4,266,153,835.28 3,224,541,434.19
operation ("-" for losses)
5.1.2 Net profit from discontinued
operation ("-" for losses)
5.2 By ownership
1) Attributable to owners of the parent
4,226,316,722.25 3,220,452,190.27
company
2) Attributable to non-controlling
39,837,113.03 4,089,243.92
interests
6. Net of tax from other
9,246,453.08 -3,007,407.03
comprehensive income
Net of tax from other comprehensive
income to the owner of the parent 10,138,274.15 1,852,598.19
company
6.1 Other comprehensive income
cannot reclassified into the profit and 7,593,799.86 1,553,518.16
loss:
1) Remeasure the variation of net
indebtedness or net asset of defined
benefit plans
2) Share in other comprehensive
income that cannot be classified into
profit and loss under equity method
3) Changes in fair value of
investments in other equity 7,593,799.86 1,553,518.16
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
6.2 Other comprehensive income that
will be reclassified into the profit and 2,544,474.29 299,080.03
loss
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
1) Share in other comprehensive
income that will be classified into 3,634,687.85 6,242,935.68
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 -1,090,213.56 -5,943,855.65
statements
7) Others
Net of tax from other comprehensive
-891,821.07 -4,860,005.22
income to non-controlling interests
7. Total comprehensive income 4,275,400,288.36 3,221,534,027.16
Total comprehensive income
attributable to owners of the parent 4,236,454,996.40 3,222,304,788.46
company
Total comprehensive income
attributable to non-controlling 38,945,291.96 -770,761.30
interests
8. Earnings per share
(1) Basic earnings per share 2.89 2.20
(2) Diluted earnings per share 2.89 2.20
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Yan Li
Income statement of parent company
Monetary Unit: CNY
Item H1 2021 H1 2020
1. Operating revenue 2,677,491,673.30 1,502,921,693.39
Less: Cost of sales 1,928,926,973.89 1,040,786,248.30
61
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Taxes and surcharges 21,482,412.01 15,549,764.92
Selling and distribution
expenses
General and administrative
337,596,961.15 274,620,160.19
expenses
Research and Development
11,217,192.99 9,011,286.24
expenses
Financial expenses -174,298,477.59 -131,445,866.38
Including：Interest expenses 30,742,980.11 33,323,418.69
Interest income 205,130,761.41 164,861,694.13
Plus: Other income 4,047,195.83 6,812,036.02
Investment income ("-" for
111,792,244.20 104,338,756.40
losses)
Including: income from
investment in associates and joint 105,134,583.68 94,958,932.04
ventures
Income from the
derecognition of financial assets at
amortized cost (“-” for losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in
fair values(“-“ for losses)
Credit impairment losses (“-”
-228,556.69 -44,132.47
for losses)
Asset impairment losses (“-”
for losses)
Gains from disposal of
180,849.31 104,663.83
assets("-" for losses)
2. Operating profits ("-" for
668,358,343.50 405,611,423.90
losses)
Plus: non-operating income 16,653,311.55 8,883,565.15
Less: non-operating expenses 4,338,960.68 24,377,133.78
3. Total profits before tax ("-" for
680,672,694.37 390,117,855.27
total losses)
Less: income tax expenses 140,409,892.00 70,055,746.59
4. Net profit ("-" for net loss) 540,262,802.37 320,062,108.68
4.1 Net profit from continuing 540,262,802.37 320,062,108.68
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
operation ("-" for losses)
4.2 Net profit from discontinued
operation ("-" for losses)
5. Net of tax from other
11,228,487.71 7,796,453.84
comprehensive income
5.1 Other comprehensive income
cannot reclassified into the profit and 7,593,799.86 1,553,518.16
loss:
1) Remeasure the variation of net
indebtedness or net asset of defined
benefit plans
2) Share in other comprehensive
income that cannot be classified into
profit and loss under equity method
3) Changes in fair value of
investments in other equity 7,593,799.86 1,553,518.16
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
5.2 Other comprehensive income
that will be reclassified into the profit 3,634,687.85 6,242,935.68
and loss
1) Share in other comprehensive
income that will be classified into 3,634,687.85 6,242,935.68
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
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
6. Total comprehensive income 551,491,290.08 327,858,562.52
7. Earnings per share
(1) Basic earnings per share 0.37 0.22
(2) Diluted earnings per share 0.37 0.22
Consolidated statement of cash flows
Monetary Unit: CNY
Item H1 2021 H1 2020
1. Cash flows from operating
activities
Cash received from sale of goods
10,852,935,107.83 6,282,235,240.80
and rendering of services
Net increase in customer bank
deposits and placement from banks
and other financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received from original
insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interest,
handling charges and commissions
Net increase in placements from
other financial institutions
Net capital increase in repurchase
business
Net cash received from customer
brokerage deposits
Refunds of taxes and surcharges 743,477.96 3,846,942.76
Cash received from other operating
496,103,267.09 218,878,679.44
activities
64
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Subtotal of cash inflows from
11,349,781,852.88 6,504,960,863.00
operating activities
Cash paid for goods purchased and
2,612,739,333.51 1,510,115,362.00
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
609,928,620.07 433,219,103.00
employees
Cash paid for taxes and surcharges 4,320,563,608.28 2,718,765,468.22
Cash paid for other operating
1,068,313,251.12 1,114,045,507.54
activities
Subtotal of cash outflows from
8,611,544,812.98 5,776,145,440.76
operating activities
Net cash flows from operating
2,738,237,039.90 728,815,422.24
activities
2. Cash flows from investing
activities
Cash received from disposal of
investments
Cash received from returns on
1,412,900.00
investments
Net cash received from disposal of
fixed assets, intangible assets and 275,836.47 566,471.43
other long-term assets
Net cash received from disposal of
subsidiaries and other business
units
Cash received from other investing
activities
65
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Subtotal of cash inflows from
1,688,736.47 566,471.43
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 733,873,065.01 1,050,741,288.78
other long-term assets
Cash paid for investments
Net increase in pledge loans
Net cash paid to acquire
subsidiaries and other business
units
Cash paid for other investing
activities
Subtotal of cash outflows from
733,873,065.01 1,050,741,288.78
investing activities
Net cash flows from investing
-732,184,328.54 -1,050,174,817.35
activities
3. Cash flows from financing
activities
Cash received from investors 5,886,464.02 5,621,368.05
Including: cash received by
subsidiaries from investments by 5,886,464.02 5,621,368.05
minority shareholders
Cash received from borrowings 1,494,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
5,886,464.02 1,499,621,368.05
financing activities
Cash paid for debt repayments
Cash paid for distribution of
dividends and profits or payment of 52,502,625.00
interest
Including: dividends and profits paid
to minority shareholders by
subsidiaries
Cash paid for other financing
1,844,313.68 180,000.00
activities
Subtotal of cash outflows from
54,346,938.68 180,000.00
financing activities
66
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Net cash flows from financing
-48,460,474.66 1,499,441,368.05
activities
4. Effect of fluctuation in
exchange rate on cash and cash -1,432,790.86 2,001,151.74
equivalents
5. Net increase in cash and cash
1,956,159,445.84 1,180,083,124.68
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 11,568,195,062.81 9,752,266,526.78
period
6. Balance of cash and cash
equivalents at the end of the 13,524,354,508.65 10,932,349,651.46
period
Cash flow statements of parent company
Monetary Unit: CNY
Item H1 2021 H1 2020
1. Cash flows from operating
activities
Cash received from sale of goods
3,026,181,734.93 1,704,864,696.11
and rendering of services
Refunds of taxes and surcharges
Cash received from other operating
2,396,719,536.21 190,974,553.30
activities
Subtotal of cash inflows from
5,422,901,271.14 1,895,839,249.41
operating activities
Cash paid for goods purchased and
2,191,470,150.06 358,716,633.54
services received
Cash paid to and on behalf of
562,431,917.32 407,927,258.16
employees
Cash paid for taxes and surcharges 350,499,714.09 150,445,400.43
Cash paid for other operating
95,820,090.04 1,375,167,996.43
activities
Subtotal of cash outflows from
3,200,221,871.51 2,292,257,288.56
operating activities
Net cash flows from operating 2,222,679,399.63 -396,418,039.15
67
2021 Interim Report of Luzhou Laojiao Co., Ltd.
activities
2. Cash flows from investing
activities
Cash received from disposal of
investments
Cash received from returns on
1,407,900.00
investments
Net cash received from disposal of
fixed assets, intangible assets and 275,836.47 566,471.43
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
1,683,736.47 566,471.43
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 41,220,364.85 90,227,143.76
other long-term assets
Cash paid for investments
Net cash paid to acquire
subsidiaries and other business
units
Cash paid for other investing
activities
Subtotal of cash outflows from
41,220,364.85 90,227,143.76
investing activities
Net cash flows from investing
-39,536,628.38 -89,660,672.33
activities
3. Cash flows from financing
activities
Cash received from investors
Cash received from loans 1,494,000,000.00
Cash received from other financing
activities
Subtotal of cash inflows from
1,494,000,000.00
financing activities
Cash paid for debt repayments
68
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Cash paid for distribution of
dividends and profits or payment of 52,502,625.00
interest
Cash paid for other financing
149,580.00 180,000.00
activities
Subtotal of cash outflows from
52,652,205.00 180,000.00
financing activities
Net cash flows from financing
-52,652,205.00 1,493,820,000.00
activities
4. Effect of fluctuation in
exchange rate on cash and cash
equivalents
5. Net increase in cash and cash
2,130,490,566.25 1,007,741,288.52
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 11,045,051,933.54 8,872,692,385.79
period
6. Balance of cash and cash
equivalents at the end of the 13,175,542,499.79 9,880,433,674.31
period
Consolidated statement of changes in owners' equity
For the six months ended 30 June 2021
Monetary Unit: CNY
H1 2021
Equity attributable to owners of the parent company
Other equity
Other Non-c Total
instruments
Shar Capit Less：Comp Speci Surpl Gener Undis ontrol owne
Item
Pref Perp
e al Treas rehen al us al risk tribut Subto ling rs'
erre etua Other
capit Othe reser ury sive reser reser reser ed tal intere equit
d l sts y
al r ve stock Inco ve ve ve profit
stoc bon
me
k d
1. Balance as 1,46 16,23 23,07 23,18
3,722, 186,0 1,464, 107,0
at 31 4,75 6,513, 4,858, 1,869,
777,0 63,32 752,4 11,32
December of 2,47 212.4 552.5 873.7
63.13 5.03 76.00 1.12
last year 6.00 3 9 1
Plus:
adjustments
for changes in
69
2021 Interim Report of Luzhou Laojiao Co., Ltd.
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Business
combinations
under common
control
Others
2. Balance as 1,46 16,23 23,07 23,18
3,722, 186,0 1,464, 107,0
at 1 January 4,75 6,513, 4,858, 1,869,
777,0 63,32 752,4 11,32
of the current 2,47 212.4 552.5 873.7
63.13 5.03 76.00 1.12
year 6.00 3 9 1
3.Increases/d
ecreases in 10,13 1,222, 1,232, 44,83 1,277,
the current 8,274. 109,3 247,6 1,755. 079,4
period (“-” for 15 93.97 68.12 98 24.10
decreases)
(1) Total 10,13 4,226, 4,236, 38,94 4,275,
comprehensiv 8,274. 316,7 454,9 5,291. 400,2
e income 15 22.25 96.40 96 88.36
(2) Capital
5,886, 5,886,
contributed or
464.0 464.0
reduced by
2 2
owners
Capital 5,886, 5,886,
contributions 464.0 464.0
by owners 2 2
Capital
contributions
by other equity
instruments
holders
Amounts of
share-based
payments
recognized in
owners' equity
70
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Others
-3,004 -3,004 -3,004
(3) Profit
,207,3 ,207,3 ,207,3
distribution
28.28 28.28 28.28
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
Profit
-3,004 -3,004 -3,004
distributed to
,207,3 ,207,3 ,207,3
owners (or
28.28 28.28 28.28
shareholders)
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined benefit
plans
Carry-forward
of retained
earnings from
other
71
2021 Interim Report of Luzhou Laojiao Co., Ltd.
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as 1,46 17,45 24,30 24,45
3,722, 196,2 1,464, 151,8
at 30 June of 4,75 8,622, 7,106, 8,949,
777,0 01,59 752,4 43,07
the current 2,47 606.4 220.7 297.8
63.13 9.18 76.00 7.10
year 6.00 0 1 1
For the six months ended 30 June 2020
Monetary Unit: CNY
H1 2020
Equity attributable to owners of the parent company
Other equity
Other Non-c
instruments Total
Shar Capit Less：Comp Speci Surpl Gener Undis ontroll
Item owner
Pref Per ing
e al Treas rehen al us al risk tribut Subto
Other s'
erre petu intere
capit Othe reser ury sive reser reser reser ed tal
d al equity
al ve stock Inco ve ve ve profit sts
r
stoc bon
me
k d
1. Balance as 1,46 12,55 19,40
3,722, 194,8 1,464, 147,88 19,554
at 31 4,75 9,746, 6,845,
777,0 17,13 752,4 5,302. ,731,0
December of 2,47 579.9 725.6
63.13 0.57 76.00 49 28.10
last year 6.00 1 1
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
72
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Business
combinations
under
common
control
Others
2. Balance as 1,46 12,55 19,40
3,722, 194,8 1,464, 147,88 19,554
at 1 January 4,75 9,746, 6,845,
777,0 17,13 752,4 5,302. ,731,0
of the current 2,47 579.9 725.6
63.13 0.57 76.00 49 28.10
year 6.00 1 1
3.Increases/d
ecreases in
1,852, 891,4 893,3 892,57
the current -770,7
598.1 95,75 48,35 7,590.
period (“-” 61.30
9 3.43 1.62 32
for
decreases)
(1) Total 1,852, 3,220, 3,222, 3,221,
-770,7
comprehensiv 598.1 452,1 304,7 534,02
61.30
e income 9 90.27 88.46 7.16
(2) Capital
contributed or
reduced by
owners
Capital
contributions
by owners
Capital
contributions
by other
equity
instruments
holders
Amounts of
share-based
payments
recognized in
owners' equity
Others
-2,328 -2,328 -2,328,
(3) Profit
,956,4 ,956,4 956,43
distribution
36.84 36.84 6.84
73
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
Profit
-2,328 -2,328 -2,328,
distributed to
,956,4 ,956,4 956,43
owners (or
36.84 36.84 6.84
shareholders)
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as 1,46 13,45 20,30
3,722, 196,6 1,464, 147,11 20,447
at 30 June of 4,75 1,242, 0,194,
777,0 69,72 752,4 4,541. ,308,6
the current 2,47 333.3 077.2
63.13 8.76 76.00 19 18.42
year 6.00 4 3
Statement of changes in owners' equity of parent company
For the six months ended 30 June 2021
Monetary Unit: CNY
H1 2021
Other equity Other
Undis
instruments Less： Compr Surplu Total
Item Share Capital Special tribut
Prefer Perpe Treasur ehensi s Other owners'
capital reserve reserve ed
red tual Other y stock ve reserve equity
profit
stock bond Income
1. Balance as
1,464, 3,706,8 1,464,7 14,305
at 31 185,441 21,127,64
752,47 16,950. 52,476. ,883,6
December of ,302.55 6,889.68
6.00 12 00 85.01
last year
Plus:
adjustments for
changes in
accounting
policies
Adjustments for
correction of
accounting
errors in prior
year
Others
2. Balance as 1,464, 3,706,8 185,441 1,464,7 14,305 21,127,64
at January 1 752,47 16,950. ,302.55 52,476. ,883,6 6,889.68
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
of the current 6.00 12 00 85.01
year
3.Increases/de
creases in the -2,463
11,228, -2,452,71
current period ,944,5
487.71 6,038.20
(“-” for 25.91
decreases)
(1) Other 540,26
11,228, 551,491,2
comprehensive 2,802.
487.71 90.08
income 37
(2) Capital
contributed or
reduced by
owners
Capital
contributions
by owners
Capital
contributions
by other equity
instruments
holders
Amounts of
share-based
payments
recognized in
owners' equity
Others
-3,004
(3) Profit -3,004,20
,207,3
distribution 7,328.28
28.28
Withdrawal of
surplus
reserves
Profit
-3,004
distributed to -3,004,20
,207,3
owners (or 7,328.28
28.28
shareholders)
Others
(4) Internal
carry-forward
76
2021 Interim Report of Luzhou Laojiao Co., Ltd.
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
comprehensive
income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as
1,464, 3,706,8 1,464,7 11,841
at 30 June of 196,669 18,674,93
752,47 16,950. 52,476. ,939,1
the current ,790.26 0,851.48
6.00 12 00 59.10
year
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
For the six months ended 30 June 2020
Monetary Unit: CNY
H1 2020
Other equity Other
instruments Less： Compr Surplu
Share Capital Undistri Total
Item Treasu ehensi Special s
capita Prefe Perpe reserv buted Other owners'
ry ve reserve reserv
l rred tual Other e profit equity
stock Incom e
stock bond
e
1. Balance as
1,464, 3,706,8 192,33 1,464,7 11,892,6
at 31 18,721,34
752,4 16,950. 2,738.0 52,476. 94,057.5
December of 8,697.73
76.00 12 5 00 6
last year
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Others
2. Balance as
1,464, 3,706,8 192,33 1,464,7 11,892,6
at January 1 18,721,34
752,4 16,950. 2,738.0 52,476. 94,057.5
of the current 8,697.73
76.00 12 5 00 6
year
3.Increases/d
ecreases in
-2,008,8
the current 7,796,4 -2,001,097
94,328.1
period (“-” 53.84 ,874.32
6
for
decreases)
(1) Other
7,796,4 320,062, 327,858,5
comprehensiv
53.84 108.68 62.52
e income
(2) Capital
contributed or
reduced by
owners
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Capital
contributions
by owners
Capital
contributions
by other equity
instruments
holders
Amounts of
share-based
payments
recognized in
owners' equity
Others
-2,328,9
(3) Profit -2,328,956
56,436.8
distribution ,436.84
4
Withdrawal of
surplus
reserves
Profit
-2,328,9
distributed to -2,328,956
56,436.8
owners (or ,436.84
4
shareholders)
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
79
2021 Interim Report of Luzhou Laojiao Co., Ltd.
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
1,464, 3,706,8 200,12 1,464,7
at 30 June of 9,883,79 16,720,25
752,4 16,950. 9,191.8 52,476.
the current 9,729.40 0,823.41
76.00 12 9 00
year
3. Company Profile
3.1 Company Overview
Luzhou Laojiao Co., Ltd. (hereinafter referred to as "Company" or "the Company"), formerly known as
Luzhou Laojiao Brewery, was established in March 1950. On 20 September 1993, Luzhou Laojiao
brewery established a joint-stock limited company with fund-raising exclusively from its operational
assets. On 25 October 1993, the public offering of shares was approved by Sichuan Provincial People's
Government and CSRC with two documents of ChuanFuHan (1993) No.673 and FaShenZi (1993)
No.108. After the offering, the total share capital was 86,880,000 shares, which were listed and traded in
Shenzhen stock exchange on 9 May 1994.
As the end of 31 December 2004, the Company's total share capital reached 841,399,673 shares after
multiple rights issues, among which the controlling shareholder, State Assets Management Bureau of
Luzhou (later renamed as State-owned Assets Supervision and Administration Commission of Luzhou,
hereinafter referred to as "SASAC of Luzhou") held 585,280,800 shares of the Company, with a
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
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 81,088,300 shares and 84,000,000
shares to Laojiao Group and Xinglu Group respectively. In addition, Laojiao Group has increased its
equity stake through the secondary market of 13,137,100 shares. So far, Laojiao Group, Xinglu Group
and SASAC of Luzhou held 394,225,489 shares, 365,971,142 shares and 1,111,930 shares respectively,
with the shareholding ratios of 28.11%, 26.10% and 0.08% respectively.
On 23 August 2017, the Company issued CNY 62,500,000 ordinary shares (A shares) privately, raising
a total capital of CNY 3,000,000,000. After the additional issuance, the total capital stock of the
Company was changed to 1,464,752,476 shares. In addition, from 2017 to 2018, Laojiao Group
decreased 13,137,100 shares that were increased through the secondary market from April 2014 to
December 2015. After share reduction, Laojiao Group, Xinglu Group and SASAC of Luzhou held
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. Laojiao Group still was the first majority shareholder
and SASAC of Luzhou still was the actual controller.
3.2 Registered address of the Company, company type, and headquarter address
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
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 liquor and wine, beverage and refined tea
manufacturing 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” and ”Luzhou Laojiao 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.
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 26 August
2021.
3.6 Consolidated financial statement scope and their changes
(1) The 28 subsidiaries included in the consolidated financial statements for the current period are listed
as follows:
Name of subsidiary Abbreviation Shareholding proportion(%) Voting rights (%)
Direct Indirect
Luzhou Laojiao Brewing Co., Ltd. Brewing company 100.00 100.00
Luzhou Red Sorghum Modern Agricultural Development Co., 60.00 60.00
Red sorghum company
Ltd.
Sales Company of Luzhou Laojiao Co., Ltd. Sales company 100.00 100.00
Luzhou Laojiao New Retail Co., Ltd. New retail company 100.00 100.00
Luzhou Laojiao Nostalgic Liquor Marketing Co., Ltd. Nostalgic company 100.00 100.00
Luzhou Laojiao Custom Liquor Co., Ltd. Note 1 Custom liquor company 15.00 60.00
Luzhou Laojiao Selected Supply Chain Management Co., Ltd. Selected company 100.00 100.00
Guangxi Luzhou Laojiao Imported Liquor Industry Co., Ltd. Guangxi Imported Liquor 100.00 100.00
Industry
Luzhou Dingli Liquor Industry Co., Ltd. Dingli company 100.00 100.00
Luzhou Dingyi Liquor Industry Sales Co., Ltd. Dingyi company 100.00 100.00
Luzhou Dinghao Liquor Industry Sales Co., Ltd. Dinghao company 100.00 100.00
Luzhou Laojiao Import and Export trade Co., Ltd. Import and export 100.00 100.00
company
Luzhou Laojiao Boda Liquor Industry Marketing Co., Ltd. Boda marketing 75.00 75.00
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou Laojiao Bosheng Hengxiang Liquor Sales Co., Ltd. Bosheng Hengxiang 100.00 100.00
Luzhou Laojiao Fruit Wine industry Co., Ltd. Note 2 Fruit wine industry 41.00 60.00
Mingjiang Co., Ltd. Mingjiang company 54.00 54.00
Luzhou Pinchuang Technology Co., Ltd. Pinchuang company 100.00 100.00
Luzhou Laojiao Tourism Culture Co., Ltd. Tourism culture 100.00 100.00
Luzhou Laojiao International Development（Hong Kong）Co., Hong Kong company 55.00 55.00
Ltd.
Luzhou Laojiao Commercial Development (North America) North America company 100.00 100.00
Co., Ltd.
Luzhou Laojiao Electronic Commerce Co., Ltd. Electronic Commerce 90.00 90.00
Luzhou Laojiao Whitail Innovative Electronic Commerce Co., Whitail Electronic 100.00 100.00
Ltd. Commerce
Luzhou Laojiao Selected Electronic Commerce Co., Ltd. Selected Electronic 100.00 100.00
Commerce
Luzhou Laojiao Whitail Liquor Industry Co., Ltd. Note 3 Whitail liquor industry 35.00 60.00
Chengdu Tianfu Panda Whitail Liquor Industry Co., Ltd. Note Panda Whitail 60.00 60.00
3
Luzhou Baonuo Biotechnology Co., Ltd. Baonuo biotechnology 100.00 100.00
Luzhou Laojiao Health Liquor Industry Co., Ltd. Health Liquor Industry 100.00 100.00
Luzhou Laojiao Health Sales Co., Ltd. Health sales 100.00 100.00
Note 1: Although the Company holds less than 51% of the equity of Custom liquor company, among the five members of
the board of directors, the Company has sent three people. The Company has actual control over Custom liquor company,
so it is included in the scope of consolidation.
Note 2: Although the Company holds less than 51% of the equity of Fruit wine industry, among the five members of the
board of directors, the Company has sent three people, and the chairman of the board (legal representative) is the director
sent by the Company. The Company has actual control over Fruit wine industry, so it is included in the scope of
consolidation.
Note 3: Although the Company holds less than 51% of the equity of Whitail liquor industry and its subsidiaries, among the
five members of the board of directors, the Company has sent three people. The Company has actual control over Whitail
liquor industry and its subsidiaries, so it is included in the scope of consolidation.
Details of the subsidiaries incorporated into the consolidated financial statements show on “8.1. Interests
in subsidiaries”
(2) Subsidiaries that are newly incorporated into the scope of consolidation in this period
Name of subsidiary Reason
Luzhou Laojiao New Retail Co., Ltd. Incorporated through investment
(3) Liquidation and cancellation for subsidiaries in this period
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Name of subsidiary Reason
Luzhou Whitail Tongdao Uncle Constellation Wine Sales Co., Liquidation cancellation
Ltd.
Details of changes in the scope of consolidation show on “8. Changes in consolidated scope”.
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 (2014 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 of the Guidelines No. 14 of the Shenzhen
Stock Exchange on Industry Information Disclosure—Listed Companies Engaging in Business Related
to Food & Liquor and Wine Production.
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 2014.
5.2 Accounting period
The Company adopts the calendar year as its accounting year, i.e. from 1st January to 31st December.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
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 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-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.
5.6 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.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the
same accounting policies and accounting periods as those of the Company. If the accounting policies or
accounting periods of a subsidiary are different from those of the Company, the financial statements of
the subsidiary, upon preparation of consolidated financial statements, shall be made necessary
adjustment based on its own accounting policies and accounting periods of the Company. For
subsidiaries acquired from the business combination not under common control, the financial statements
shall be adjusted on the basis of the fair value of identifiable net assets on the date of purchase. For the
subsidiary acquired from the business combination under common control, its assets and liabilities
(including the goodwill formed by the acquisition of the subsidiary by the ultimate controlling party) shall
be adjusted on the basis of the book value in the consolidated statements of the ultimate controlling
party.
The portion of a subsidiary’s equity, the current net profit and loss of subsidiaries, and the current
comprehensive income attributable to non-controlling interests shall be separately presented as
non-controlling interests in consolidated balance sheet within owners' equity, below the net profit line
item and below the total comprehensive income line item in the consolidated income statement
respectively. When the amount of current loss attributable to non-controlling shareholders of a subsidiary
exceeds the balance of the non-controlling shareholders’ portion in the opening balance of owner's
equity of the subsidiary, the excess shall be allocated against the non-controlling interests.
Acquisition of subsidiaries or business
During the reporting period, if the Company acquires subsidiaries from the business combination under
common control, the opening balance in the consolidated balance sheet shall be adjusted. The income,
expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reporting
period shall be included in the consolidated income statement. The cash flows of the newly acquired
subsidiaries from the beginning to the end of the reporting period shall be included in the consolidated
statement of cash flows. At the same time, the relevant items of the comparative information shall be
adjusted as the combined entity existed since the control point of the ultimate controlling party.
If the Company can control the investee from the business combination under common control due to
additional investment or other reasons, the parties involved in the combine shall be deemed to adjust in
the current state when the ultimate controlling party starts to control them. For the equity investment
before obtaining control of the investee, the recognized relevant profit or loss and other comprehensive
income and other changes in net assets between the later of acquisition date of previous equity and the
date on which both the investor and the investee are under common control and the combination date
shall respectively write-down the beginning retained earnings or current profits and losses during the
period of comparative information.
During the reporting period, if the Company acquires subsidiaries from the business combination not
under common control, the opening balance in the consolidated balance sheet shall not be adjusted.
The income, expenses and profits of the newly acquired subsidiaries from the acquisition date to the end
of the reporting period shall be included in the consolidated income statement. The cash flows of the
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
newly acquired subsidiaries from the acquisition date to the end of the reporting period shall be included
in the consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee not under common control
due to additional investment or other reasons, the Company shall re-measure the previously held equity
interests to its fair value on the acquisition date, and the difference shall be recognized as investment
income. When the previously held equity investment is accounted for under equity method, any other
comprehensive income previously recognized and other equity changes (excluding other
comprehensive, net profit and loss and profit distribution ) in relation to the acquiree’s equity changes
shall be transferred to profit and loss for the current period when acquisition took place, except for other
comprehensive income resulting from changes in net liabilities or net assets due to re-measurement of
defined benefit plan by investee.
Disposal of subsidiaries and business
General treatments
During the reporting period, if the Company disposes subsidiaries, the income, expenses and profits of
the newly disposed subsidiaries from the beginning to the disposal date shall be included in the
consolidated income statement. The cash flows from the beginning to the disposal date shall be included
in the consolidated statement of cash flows.
In case of loss of control over the investee due to partial disposal of the equity investment or other
reasons, the Company shall re-measure the remaining equity investment at its fair value at the date of
loss of control. The amount of the consideration obtained from the disposal of the equity and the fair
value of the remaining equity, minus the net asset shares calculated continuously from the acquisition
date based on the previous shareholding proportion and the goodwill, the difference shall be included in
the investment income of the period when the control is lost. Other comprehensive income related to the
former subsidiary’s equity investment of or other changes in owners' equity excluding net profit and loss,
other comprehensive income and profit distribution shall be transferred to investment income for the
current period when control is lost. Other comprehensive income resulting from changes in net liabilities
or net assets due to re-measurement of defined benefit plan by investee is excluded.
Disposal of subsidiaries by step
If the Company loses control of a subsidiary is through multiple transactions by steps, the terms,
conditions and economic impact of the disposal transaction shall be considered. When one or more of
the following conditions may indicate that multiple transactions should be treated as a package of
transactions for accounting treatment:
a.These arrangements were entered into at the same time or in contemplation of each other;
b.These arrangements work together to achieve an overall commercial effect;
c.The occurrence of one arrangement depends on the occurrence of at least one other arrangement;
d.One arrangement alone is not economically justified, but it is economically justified when considered
together with other arrangements
87
2021 Interim Report of Luzhou Laojiao Co., Ltd.
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.
5.7 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
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
88
2021 Interim Report of Luzhou Laojiao Co., Ltd.
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 are 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.
5.8 Cash and cash equivalents
When preparing the cash flow statement, the Company recognizes cash on hand and deposits that can
be readily withdrawn on demand as cash. Cash equivalents are the Company’s short-term (due within 3
months from purchase date), highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value. Restricted bank deposits are not
recognized as cash and cash equivalents in the cash flow statement.
5.9 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.
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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.
5.10 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
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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
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.
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Trading financial liabilities (including derivatives classified as financial liabilities) are subsequently
measured at fair value, with changes in fair value recorded into current profits/losses, except for those
related to hedge accounting.
For those specified as financial liabilities measured at fair value with their changes included into current
profits/losses, changes in the fair value of such liabilities caused by changes in the Company’s own
credit risk should be included into other comprehensive income. In derecognition of such liabilities,
cumulative changes in their value caused by the Company’s own credit risk that have been recorded into
other comprehensive income should be transferred into retained earnings. Other changes in their fair
value should be recorded into current profits/losses. If treatment of the impact of the Company’s own
credit risk changes of such financial liabilities in the above manner causes or expands accounting
mismatch in profits/losses, the Company will include all gains or losses of such financial liabilities
(including the amount of the impact of the Company’s own credit risk changes) into current
profits/losses.
2) Other financial liabilities
Financial liabilities other than those formed from the transfer of financial assets not meeting
derecognition conditions or continuous involvement into transferred financial assets and those outside
financial guarantee contracts are classified as financial liabilities measured at amortized cost. Such
financial liabilities should be subsequently measured at amortized cost and the gains or losses from
derecognition or amortization should be included into current profits/losses.
(3) Recognition basis and measurement method of transfer of financial assets
If a financial asset meets any of the following conditions, it shall be derecognized: 1)The contractual right
for collecting the cash flow of the financial asset has been terminated; 2)The financial asset has been
transferred and almost all the risks and remunerations in respect of the ownership of the financial asset
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
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transferred financial asset shall be apportioned at the relative fair value between the derecognition and
underecognition part. The difference between the summation of the consideration received from the
transfer and the cumulative amount of fair value changes originally-recorded into other comprehensive
incomes that should be apportioned to the derecognition part and the apportioned aforementioned
carrying value shall be recorded into the current profits/losses.
For a financial asset sold with the right of recourse or with the transfer of the financial asset endorsement,
the Company shall decide whether almost all the risks and remunerations in respect of the ownership of
the financial asset should be transferred. If they are transferred, the financial asset shall be
derecognized; if they are retained, the financial asset shall not be derecognized; if they are neither
transferred nor retained, the Company will continue to decide whether the enterprise should retain
control over the asset and perform the accounting treatment according to the principles stated in
previous paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part of it) is relieved, the Company will
derecognize the financial liability (or the part of it). When the Company (borrower) signs an agreement
with a lender to replace an original financial liability in the form of bearing a new financial liability and the
contract terms for the new financial liability differ from those for the original in substance, the original
financial liability should be derecognized and the new one should be recognized. When the Company
makes substantial changes to the contract terms of an original financial liability (or a part of it), the
original financial liability should be derecognized and a new financial liability should be recognized
according to the amended contract terms.
When a financial liability (or a part of it) is derecognized, the Company will include the difference
between its carrying value and the consideration paid (including non-cash assets or liabilities borne that
are transferred out) into current profits/losses.
(5) Offsetting of financial assets and financial liabilities
When the Company has the legal right to offset recognized financial assets and financial liabilities and
may execute the legal right currently and simultaneously, the Company plans to settle or simultaneously
encash the financial assets in net amounts and pay off the financial liabilities, the financial assets and
the financial liabilities which are presented in the net amount after the mutual offset in the balance sheet.
Other than that, they shall be presented separately in the balance sheet without the mutual offset.
(6) Method of determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can receive for selling an asset or transferring a
liability in an orderly transaction on the measurement date. For an existing financial instrument in an
active market, the Company adopts the quotations in the active market to determine its fair value.
Quotations in the active market refer to prices that can be easily obtained from exchanges, brokers,
industrial associations and pricing service institutions and represent the actual prices in the market
transactions happening in a fair trade. For a non-existing financial instrument in an active market, the
Company adopts the valuation technique to determine its fair value. The valuation technique includes
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references to familiar situations and the prices used by the parties voluntarily participating in the recent
market transactions, as well as references to the present fair value of other financial instruments of the
same nature, discounted cash flow method and options pricing model. In the valuation, the Company
uses a valuation technique that is applicable in the current situation with sufficient data available and
other information support, chooses input values that are consistent with the asset or liability
characteristics considered by market players in related asset or liability transactions, and make
maximum effort to use related observable input values on a preferential basis. When it is unable or
unfeasible to obtain related observable input values, unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets after the
deduction of all liabilities. The Company’s issuance (including refinancing), repurchase, sale or
cancellation of equity instruments serve as the change treatment of equity. Transaction expenses
related to the equity transactions are deducted from the equity. The Company does not recognize
changes in the fair value of equity instruments.
Dividends from the Company’s equity instruments distributed during the validity (including the “interests”
from instruments classified as equity instruments) are treated as profit distribution.
(8) Impairment of financial instruments
Based on the expected credit loss, the Company treats financial assets measured at amortized cost and
debt instrument investment measured at fair value with its changes included into other comprehensive
income by impairment and recognizes the provision for loss.
Credit loss means the difference between all contract cash flow discounted at the original effective
interest rate to be received according to contracts and all contract cash flow expected to be received,
namely, the present value of all cash shortage. For a financial asset with credit impairment purchased by
or originated from the Company, it should be discounted by the effective interest rate after credit
adjustment to the financial asset.
For accounts receivable that do not contain significant financing components, the Company adopts
simplified measurement to measure loss provisions according to the amount equivalent to the expected
credit loss for the entire duration.
For a financial asset other than those using the above simplified measurement, the Company assesses
on each balance sheet date whether its credit risk has substantially increased since the initial recognition.
If it has not and is in the first stage, the Company will measure the loss provision at the amount
equivalent to the expected credit loss for the next 12 months and calculate the interest income according
to the book balance and the effective interest rate; if it has substantially increased since the initial
recognition without credit impairment and is in the second stage, the Company will measure the loss
provision at the amount equivalent to the expected credit loss for the entire duration and calculate the
interest income according to the book balance and the effective interest rate; if credit impairment has
occurred since the initial recognition and is in the third stage, the Company will measure the loss
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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.
5.11 Notes receivable
The method of determining the expected credit loss of notes receivables and accounting treatment
method:
Divide notes receivables into various portfolios according to common risk characteristics based on the
credit risk characteristics of acceptors and determine the accounting estimate policies of expected credit
loss:
Portfolio name Provision method
Bank acceptance bill The management evaluates that this type has low credit risk and its fixed bad
portfolio debt provision ratio is 0%.
Trade acceptance The provision for impairment is made according to the expected loss rate with
portfolio the same portfolio classification of accounts receivables
5.12 Accounts receivables
The method of determining the expected credit loss of accounts receivables and accounting treatment
method:
As for accounts receivables, regardless of whether there is a significant financing component, the
Company always measures the provision for loss based on the amount equivalent to the expected credit
loss over the entire life, and the resulting increase or reversal of provision for loss shall be included in the
current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment,
the Company shall make bad debt provision for the account receivable and recognize the expected
credit loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost, the Company shall divide the accounts receivables portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios.
Portfolio name Provision method
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Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control, the recovery of which are controllable with no risks. Thus, no bad debt provision was
made.
The Company combines the accounts receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging), and calculates the expected credit loss through the exposure at default
and expected credit loss rate over the entire life based on the current situation and prediction of future
economic situation consulting historical credit loss experience. The comparative table of the credit loss
rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
1-2 years 10
2-3 years 20
3-4 years 40
4-5 years 80
Over 5 years 100
5.13 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 5.10
Financial instruments.
5.14 Other receivables
The method of determining the expected credit loss of other receivables and accounting treatment
method:
As for other receivables, regardless of whether there is a significant financing component, the Company
always 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 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
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Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control, the recovery of which are controllable with no risks. Thus, no bad debt provision was
made.
The Company combines the other receivables classified as risk portfolio in accordance with similar credit
risk characteristics (aging), and calculates the expected credit loss through the exposure at default and
expected credit loss rate 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
5.15 Inventory
(1) Classification of inventory
Inventories are classified as: raw materials, goods in progress, semi-finished goods, stock commodities,
dispatched inventories, revolving materials (including packing materials and low-cost consumables).
(2) Measurement method of dispatched inventories
The standard cost is used for daily accounting of raw materials, and the difference of material cost
should be carried forward on a monthly basis to adjust the standard cost into the actual cost; The goods
in progress and semi-finished goods shall be accounted according to the actual cost, and the weighted
average method shall be used when they are received and delivered. The actual cost of the inventory at
the end of the month above shall be taken as the standard cost, and the delivery shall be priced
according to the standard cost. At the end of the month, the standard cost of the inventory at the end of
the month shall be adjusted into the actual cost through the cost-sharing difference.
(3) Basis to determine net realizable values of inventories and method of provision for stock
obsolescence
At the end of the period, inventory is measured according to the lower of cost and net realizable value.
The difference between inventory cost and net realizable value is higher than the provision for stock
obsolescence , which is recorded into current profit and loss. For inventories that are related to product
ranges produced and sold in the same district or used for the same or similar ultimate purpose and are
difficult to be measured separately from other inventories, the Company provides for stock obsolescence
as a whole. For inventories that have large quantities but low value, the Company provides for stock
obsolescence on a category basis.
The materials held for production shall be measured at cost if the net realizable value of the finished
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products is higher than the cost. If a decline in the value of materials shows that the net realizable value
of the finished products is lower than the cost, the materials shall be measured at the net realizable
value.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Amortization method of packing materials and low-cost consumables
5.16 Contract assets
The Company presents contract assets or contract liabilities on the balance sheet according to the
relationship between the fulfillment of its contract performance obligations and its customers’ payment.
Considerations that the Company has the right to collect for commodities transferred or services
provided to customers (and such right depends on other factors than time lapses) are presented as
contract assets. The Company presents the right possessed to collect consideration from customers
unconditionally (only depending on the passing of time) as accounts receivable. Refer to “The method of
determining the expected credit loss of accounts receivables and accounting treatment method” for the
detail on the Company’s method of determining the expected credit loss of contract assets and
accounting treatment method.
5.17 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.
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.
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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.
5.18 Assets held for sale
(1) Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
at balance sheet date subsequently, the impairment loss should be recognized if the book value is
higher than fair value less costs to sell at the amount of the difference of these two in profit and loss, the
provision for assets held for sale need to be recognized at the same time.
For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date,
they shall be measured as the lower of the initial measurement amount and the net amount after
deducting the selling expenses from the fair value under the assumption that it is not divided into
held-for-sale categories at the initial measurement. Except for the non-current assets or the disposal
groups obtained in the enterprise merger, the difference caused by the non-current assets or the
disposal groups taking the net amount after the fair value minus the selling expenses as the initial
measurement amount shall be recorded into the current profit and loss.
For the impairment of disposal group, it should write off goodwill if existing, and then write down the
related assets proportionally.
Depreciation or amortization should cease for the non-current asset held for sale. Interest and other
charges on liabilities in the disposal groups held for sale continue to be recognized.
(2) Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet date increases
after the fair value minus the selling expenses, the amount previously written down shall be reversed,
and the amount of the impairment loss recognized after being classified as the held-for-sale shall be
reversed, and the reversed amount shall be included in the current profit and loss. The impairment loss
recognized before the classification of the held-for-sale shall not be reversed.
If the net amount of the disposal groups held for sale on the subsequent balance sheet date increases
after the fair value deducting the selling expenses, the amount previously written down shall be reversed,
and the amount of the impairment loss recognized as non-current assets after being classified as the
held-for-sale shall be reversed, and the reversed amount shall be included in the current profit and loss.
The book value of the goodwill that has been written down and the impairment losses recognized before
the classification of the held-for-sale shall not be reversed.
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The subsequent reversed amount of the impairment loss recognized by the disposal groups held for sale
shall be increased in proportion to the book value of non-current assets except goodwill in the disposal
groups.
(3) The accounting treatment that does not continue to be classified as held-for-sale and the termination
of recognition
Non-current assets or disposal groups that are no longer divided into held-for-sale category or
non-current assets are removed from disposal groups held for sale because of no longer meeting the
condition of classification of held-for-sale, they are measured at lower of the following two: book value
before being classified as the held-for-sale considering depreciation, amortization or impairment that
should have been recognized under the assumption that it is not divided into held-for-sale categories;
and recoverable amount.
When terminating the recognition of the non-current assets held for sale or the disposal groups, the
unrecognized gains or losses shall be recorded into the current profit and loss.
5.19 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.
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：
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For the long-term equity investments obtained by cash paid, non-monetary assets paid or assumed
liabilities and the equity securities issued by the acquirer, on the merger date, the initial investment cost
of long-term equity investment shall be taken as the share of the owner's equity of the investee in the
book value of the final control party's consolidated financial statements. If the investee under business
combination under common control can be controlled due to additional investment or other reasons, the
initial investment cost of long-term equity investment shall be determined on the merger date according
to the share of the net assets of the investee in the book value of the final control party's consolidated
financial statements. The difference between the initial investment cost of the long-term equity
investment on the merger date and sum of the book value of the long-term equity investment before the
merger and the new consideration of acquiring shares on the merger date shall be recorded to adjust the
equity premium. If the equity premium is insufficient to be written down, the retained earnings shall be
written down.
Business combination not under common control：The Company takes the initial investment cost of
long-term equity investment as the merger cost determined on the purchase date. If the investee can be
controlled under business combination not under common control due to additional investment or other
reasons, the previous book value of the equity investment held plus the sum of the newly added
investment cost shall be taken as the initial investment cost calculated according to the cost method.
b. Long-term equity investment obtained by other means
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value as
the initial investment costs.
For the long-term equity investments acquired by the issue of equity securities, the initial investment cost
shall be the fair value of the equity securities issued.
For long-term equity investments obtained by non-monetary assets exchange, under the condition that
an exchange of non-monetary assets is of commerce nature and the fair value of assets exchanged can
be reliably measured, non-monetary assets traded in is initially stated at the fair value of the assets
traded out, unless there is conclusive evidence indicating that the fair value of the assets traded in is
more reliable; if the above conditions are not satisfied, initial investment costs of long-term equity
investments traded in shall be recognized at the book value of the assets traded out and the relevant
taxes and surcharges payable.
For long-term equity investments obtained by debt restructuring, the Company recognizes the fair value
of shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
a. Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
long-term equity investments accounted at the cost method, except cash dividends or profits declared
but not yet distributed which are included in the actual payments or the consideration actually paid for
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the investment, the cash dividends or profits declared by the investee shall be recognized as the
investment income irrespective of net profits realized by the investee before investment or after
investment.
b. Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee, the
equity method is adopted for accounting. For long-term equity investments measured at the equity
method, if the initial investment costs are higher than the investor’s attributable share of the fair value of
the investee’s identifiable net assets, no adjustment will be made to the initial costs of the long-term
equity investments; if the initial investment costs are lower than the investor’s attributable share of the
fair value of the investee’s identifiable net assets, the difference shall be recognized in current profit and
loss.
The Company shall, according to the shares of net profits and other comprehensive income realized by
the investee that shall be enjoyed or borne by the Company, recognize the profit and loss on the
investments and adjust the book value of the long-term equity investments. When recognizing the net
profits and losses and other comprehensive income of the investee that the Company shall enjoy or bear,
the Company shall make a recognition and calculation based on the net book profits and losses of the
investee after appropriate adjustments. However, where the Company is unable to obtain the relevant
information due to failure to reasonably determine the fair value of the investee’s identifiable assets,
minor difference between the investee’s identifiable assets and the book value thereof or other reasons,
the profits or losses on the investments shall be directly calculated and recognized based on the net
book profits and losses of the investee. The Company shall calculate the part distributed from cash
dividends or profits declared by the investee and correspondingly reduce the book value of the long-term
equity investments. When recognizing the income from investments in associates and joint ventures, the
Company shall write off the part of incomes from internal unrealized transactions between the Company
and associates and joint ventures which are attributable to the Company and recognize the profit and
loss on investments on such basis. Where the losses on internal transactions between the Company and
the investee are impairment of related assets, full amounts of such losses shall be recognized. Profit and
loss from internal unrealized transactions between the Company’s subsidiaries included into the
combination scope and associates and joint ventures shall be written off according to the above
principles and the profit and loss on investments thereafter shall be recognized on such basis.
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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.
5.20 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.
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.
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.
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(3) When the Company changes the use of investment property, the relevant investment property will be
transferred to other assets.
5.21. 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
Depreciation Estimated useful Estimated residual Annual depreciation
Category
method life (Year) value rate (%) rate (%)
Buildings and Straight-line
Constructions 10－45 5% 2.11%-9.50%
method
Straight-line
Special equipment 5－35 5% 2.71%-19.00%
method
Universal Straight-line
equipment 4－25 5% 3.80%-23.75%
method
Transportation Straight-line
equipment 6 5% 15.83%
method
Straight-line
Other equipment 4－16 5% 5.94%-23.75%
method
Except for fixed assets still in use after full depreciation, the Company depreciates all fixed assets and
calculates the depreciation in the straight-line depreciation method.
Based on the nature and use of fixed assets, the Company determines their service life and estimated
net salvage value and reviews their service life, estimated net salvage value and depreciation method at
the end of the year. Changes in the service life, estimated net salvage value and depreciation method of
the same type of assets are treated as changes in accounting estimation.
The Company’s newly-built brewing production lines, packaging production lines and warehousing
assets, and the houses and buildings, special and general equipment formed thereof are obviously
different from the existing same types of assets and have obviously longer estimated service life than the
same types of fixed assets. The maximum years of depreciation for different types of the newly-built
fixed assets are as follows: 45 years for houses and buildings; 35 years for special equipment and 25
years for general equipment.
During the year, some of the Company’s projects in progress reached the expected usable state and
were transferred into fixed assets.
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(3) Recognition standard, valuation method and depreciation method for fixed assets acquired
under financing lease
If the purchase price of a fixed asset exceeds the normal credit conditions and the payment is delayed,
which has a financing nature, the cost of the fixed asset shall be determined on the basis of the present
value of the purchase price. The difference between the actual price paid and the present value of the
purchase price, unless it should be capitalized, shall be recorded into the current profit and loss in the
credit period.
For fixed assets acquired under financing lease, at the inception of the lease, the Company shall
recognizes it at the lower of the fair value of the leased assets or the present value of the minimum lease
payments.
Fixed assets acquired under financing lease is adapted the same depreciation method as the one used
on other fixed assets owned by the Company. If there is reasonable assurance that the Company will
obtain the ownership of the leased assets when the lease term expires, the leased assets should be
depreciated over its useful life; if there is no reasonable assurance that the Company will obtain the
ownership of the leased assets when the lease term expires, the leased assets should be depreciated
over the shorter of the lease term or the useful life of the leased assets.
5. 22. 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
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. 23. 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
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loan, etc.
Borrowing costs are capitalized when the following three conditions are met simultaneously: ① the asset
expenditure has occurred, ② the borrowing costs have occurred, ③ the purchase and construction
activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed for
acquiring and constructing or producing assets eligible for capitalization, borrowing costs of special loan
actually incurred in the current period less the interest income of the loans unused and deposited in bank
or return on temporary investment should be recognized as the capitalization amount of borrowing costs.
As for general loans used for acquiring and constructing or producing assets eligible for capitalization,
the interest of general loans to be capitalized should be calculated by multiplying the weighted average
of asset disbursements of the part of accumulated asset disbursements in excess of special loans by the
capitalization rate of used general loans. During the period of capitalization, the capitalized amount of
interest of each accounting period shall not exceed the current actual interest of the relevant loans.
Where there are discounts or premiums on loans, the amounts of interest for each accounting period
should be adjusted taking account of amortizable discount or premium amounts for the period by
effective interest method. Auxiliary expenses incurred from special loans before the acquired or
constructed assets eligible for capitalization reach the working condition for their intended use or sale
should be capitalized when they incur and charged to the costs of assets eligible for capitalization; those
incurred after the acquired or constructed assets eligible for capitalization reach the working condition for
their intended use or sale should be recognized as costs according to the amounts incurred when they
incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
For a special loan for the purchase and construction of fixed assets, the capitalization rate is the interest
rate of the loan;
For more than one special loan for the acquisition and construction of fixed assets, the capitalization rate
is a weighted average interest rate of these loans.
(4) Capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months, the capitalization of
borrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
profit or loss for the current period, and the capitalization of borrowing costs continues when the
acquisition and construction or production activities of the asset resume.
(5) Capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets
eligible for capitalization have reached the working condition for their intended use or sale. Borrowing
costs incurred after the assets eligible for capitalization have reached the working condition for their
intended use or sale should be recognized as the current profit and loss when they incur. If parts of the
acquired and constructed or produced assets are completed separately but the assets cannot be used or
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sold externally until overall completion, the capitalization of borrowing costs should cease at the time of
overall completion of the said assets.
5. 24. Right-of-use assets
Refer to Note 42 for the detail.
5. 25. Intangible assets
(1) Measurement method, useful life, impairment test
a. Costs of intangible assets purchased include purchase price, related tax and expenses and other
expenditure that can be distributed to the asset directly to reach its expected use.
b. Intangible assets invested by investors shall be valued at the value agreed upon in the investment
contract or agreement;
c. Expenses on the research phase of internally researched and developed intangible assets shall be
included in the current profit and loss when they incur; The expenditures incurred in the development
stage of the internal research and development projects shall be recognized as intangible assets when
the following conditions are met; otherwise, they shall be recorded into the current profit and loss when
they incur.
i. It is technically feasible to finish intangible assets for use or sale;
ii. It is intended to finish and use or sell the intangible assets;
iii. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the
intangible assets will be used internally;
iv. It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources.
v. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
d. If payment of the purchase price of intangible assets can be deferred and exceeds normal credit
conditions, the purchase has the nature of finance in fact and cost of the intangible asset shall be
determined on the basis of present value of the purchase price. The difference between the amount
actually paid and the present value of the purchase price should be recorded into current profit or loss
other than those should be capitalized during the credit period.
Useful life and amortization method
For intangible assets with limited useful life, amortization shall be carried out according to the
straight-line method within the period that brings economic benefits to the enterprise. At the end of each
period, the useful life and amortization method of intangible assets with limited service life shall be
reviewed. If there are differences with the original estimates, corresponding adjustments shall be made.
Intangible assets whose useful life is uncertain shall be regarded as intangible assets if it is impossible to
foresee the term in which intangible assets bring economic benefits to the enterprise. Intangible assets
with uncertain useful life shall not be amortized during the holding period, and the life of intangible assets
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shall be reviewed at the end of each period. If it is still uncertain after the review at the end of the period,
the impairment test shall continue during each accounting period. At the end of each period, the useful
life of intangible assets with uncertain service life shall be reviewed.
Impairment test
On the balance sheet date, intangible assets are valued at the lower of book value and recoverable
amount.
(2) Internal research and development expenditure accounting policy
The expenditures incurred in the development stage of the internal research and development projects
shall be recognized as intangible assets when the following conditions are met; otherwise, they shall be
recorded into the current profit and loss when they occur.
a. It is technically feasible to finish intangible assets for use or sale;
b. It is intended to finish and use or sell the intangible assets;
c. The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
d. It is able to finish the development of the intangible assets, and able to use or sell the intangible assets,
with the support of sufficient technologies, financial resources and other resources.
e. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
Development expenditures that have been recorded into profit and loss in previous periods are not
recognized as assets in subsequent periods. The capitalized expenditure in the development stage is
listed as development expenditure in the balance sheet, and it will be recorded into intangible assets
from the date when the project reaches its intended purpose.
5. 26. 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
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
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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. 27. 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. 28 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.
5. 29. 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
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The defined contribution plan of the Company includes payments of basic pension and unemployment
insurance calculated according to the local payment base and proportion. The amount shall be included
into the profit and loss or the relevant assets cost for the accounting period in which the employee
provides the service to the Company.
b. Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method, the
Company will record the benefit obligation generated by the defined benefit plan belonging to the period
during in which the employee provides the service into the current profit and loss or the relevant assets
cost.
The deficit or surplus resulting from the present value minus the fair value of the assets of a defined
benefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in the
defined benefit plan, the net assets of the defined benefit plan shall be measured at the lower of the
surplus and the upper limit of assets of the defined benefit plan.
All defined benefit plan obligations, including those expected to be paid within the twelve months
following the end of the annual reporting period in which the employee provides the service, are
discounted based on the market yield and high quality corporate bonds in an active market that match
the duration and currency of defined benefit plan obligations on the balance sheet date.
The service costs generated by the defined benefit plan and the net interest on net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or relevant assets cost;
Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan are
included in other comprehensive income and are not reversed to profit and loss in subsequent
accounting periods.
At the time of settlement of the defined benefit plan, the settlement gains or losses shall be recognized
according to the difference between the present value of the obligations of the defined benefit plan and
the settlement price determined on the settlement date.
(3) Accounting treatment method of termination benefits
Employee benefits liabilities shall be recognized and included into profit or loss for the current period on
the earlier date of the two following circumstances:
a. When the Company is not able to withdraw the benefits from termination of employment or resignation
persuasion unilaterally;
b. When the Company recognizes costs and fees relevant to reforming the termination benefits payment.
As for the termination benefits that cannot be fully paid within 12 months after the end of the annual
report period, the Company shall choose an appropriate discount rate and record it into current profit and
loss based on it.
(4) Accounting treatment method of other long-term employee benefits
Other long-term employee benefits are all employee benefits other than short-term benefits,
post-employment benefits and termination benefits.
Other long-term employee benefits provided by the Company to the employee that meet the conditions
of the defined contribution plan shall be treated in accordance with the same principles of the defined
contribution plan; If the conditions for defined benefits are met, net liabilities or net assets of other
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long-term employee benefits shall be recognized and measured in accordance with the relevant
principles of the defined benefits plan.
5. 30 Lease liabilities
Refer to the Note 42 for details.
5. 31. 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
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. 32. 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
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For equity-settled share-based payment related with employees, the equity instrument is measured at
fair value. The cash-settled share-based payment shall be measured according to the fair value of the
liabilities calculated and determined on the basis of shares or other equity instruments undertaken by the
Company.
For the fair value of the stock option granted, the fair value is determined by using the stock option
pricing model, and the following factors are taken into account: the current price of the underlying shares,
the exercise price of the option, the risk-free interest rate within the period of the option, the option life,
and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercised
For the equity-settled share-based payment settled immediately after the grant, the fair value of the
equity instrument shall be included in the relevant costs or expenses on the grant date, and the capital
reserve shall be increased accordingly. Grant date means the date on which the share-payment
agreement is approved.
For the equity-settled share-based payment, in which the services during waiting period are completed
and the performance conditions are met, in return for services of employees, on each balance sheet
date during waiting period, the current obtained service shall be included in the relevant costs or
expenses and the capital reserves in accordance with the fair value of the equity instruments on the
grant date, based on best estimate of the number of vested equity instruments, and the subsequent
changes in fair value shall not be recognized. On each balance sheet date during waiting period, the
Company makes the best estimate based on the latest available employee number change and other
subsequent information, and modifies the number of equity instruments for the estimated vesting. On the
vesting date, the final expected number of vesting instruments is the same as the actual number of
vesting instruments.
(4) Relevant accounting treatment of implement, modification and termination of share-based payment
plan
For equity-settled share-based payment, no adjustments will be made to the recognized costs and total
owners' equity after the vesting date. On the vesting date, the Company shall recognize the share capital
and the equity premium according to the exercise situation, and carry forward the capital reserve
recognized in the waiting period.
No matter how it modifies the terms and conditions of the granted equity instruments or it cancels the
granted equity instruments or its settlement, the equity instruments granted by the Company shall be
recognized at fair value on the grant date and it measures obtained the corresponding services, unless it
cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
5. 33. Revenue
Accounting policies for recognition and measurement of revenue
(1) Basic principles of revenue identification
The Company recognizes revenue when it has fulfilled the performance obligations under the contract,
that is, when the customers obtain the control of relevant goods or services, at the transaction price
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allocated to the performance obligations.
Performance obligations refer to the Company's promise that it will transfer clearly distinguishable goods
or services to customers under the contract.
Obtaining control of related goods refers to that customers can control the use of the goods and obtain
almost all the economic benefits from the goods.
The Company will evaluate the contract on the contract start date, identify each individual performance
obligation contained in the contract, and judge whether each individual performance obligation will be
performed within a certain period of time or at a certain point in time. If one of the following conditions is
met, and the performance obligation are performed within a certain period of time, the Company will
identify revenue within a period of time according to the performance progress: a. The customers obtain
and consume the economic profits while the Company performs the contract. b. The customers can
control the products under construction during the performance of the Company; c. The products
produced during the performance of the Company cannot be replaced, and the Company has the right to
collect payment for the completed performance accumulated during the entire contract period.
Otherwise, the Company will identify revenue when the customers obtain control rights of the relevant
goods or services.
For the performance obligations performed within a certain period of time, the Company will apply the
input-output method to identify the appropriate performance progress based on the nature of the goods
and services. The input-output method is to identify the performance progress based on the value of the
goods that have been transferred to the customers to the customers. When the performance progress
cannot be reasonably identified and the Company's incurred costs are expected to be compensated, the
Company will identify the revenue according to the amount of the incurred costs until the performance
progress can be reasonably identified.
(2) The methods of revenue identification
The Company mainly sells alcoholic products, which is a performance obligation performed at a certain
point in time. The revenue identification of domestic products must meet the following requirements: a.
The Company has delivered the products to the purchasers according to the contract and the
purchasers have signed and confirmed the receipts. b. The amount of sales revenue has been identified.
c. The payment has been received; the receipt of the document of title has been obtained and the
relevant economic benefits are likely to flow in. d. The product-related costs can be reliably calculated.
The following requirements must be met to confirm the revenue of export products: a. The Company has
declared the products in accordance with the contract, obtained the bills of lading, received the payment
or obtained the receipt of payment and related economic benefits that are likely to flow in. b. The main
risks and rewards of the product ownership have been transferred. c. The legal ownership of the goods
has been transferred.
Differences in accounting policies for the recognition of revenue caused by different business models for
the same type of business
5. 34. 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
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Government grants related to assets are government grants that are acquired by the Company and used
for forming long-term assets through purchasing and constructing or other ways. If the government
documents do not clearly specify the target of the subsidy, the Company shall separately explain
judgment basis of classifying the government grants into the government grants related to assets or
income.
Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives (the
period of depreciation and amortization) of the relevant assets from the month of commence of
depreciation or amortization when the relevant assets reaching the intended use condition, and included
in the current profit or loss. However, government grants measured at the nominal amount shall be
directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income are government grants other than government grants related to
assets;
Accounting method:
a. If it is used to compensate the Company’s relevant expenses or losses in future periods, it should be
recognized as deferred income and included into the current profit and loss or written off of the related
costs when the relevant expenses, losses are recognized.
b. If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly included
into the current profit and loss on acquisition or written off of the related costs.
c. Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for the
government grants and the Company can receive the grants.
d. Measurement of government grants
If a government grant is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government grant is a non-monetary asset, it shall be measured at its fair value; and if its
fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
5. 35. 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.
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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. 36. Lease
(1) Accounting treatment of operating lease
a. As the lessee
Under the new lease standards, except for short-term leases and low-value asset leases, the lessees
will no longer distinguish between finance leases and operating leases. All leases are subject to the
same accounting treatment, and the right-of-use assets and lease liabilities must be recognized for all
leases. For the right-of-use assets, if the lessee can reasonably determine that it will obtain the
ownership of the leased assets at the expiration of the lease term, the depreciation shall be accrued
within the remaining service life of the leased assets. If it cannot reasonably determine that it will obtain
the ownership of the leased assets at the expiration of the lease term, it shall depreciate the leased
assets over the lease term or the remaining service life, whichever is shorter. At the same time, the
lessee shall determine whether the right-of-use asset is impaired, and account for the identified
impairment loss. For short-term leases and low-value asset leases, the lessee may choose not to
recognize the right-of-use asset, and include the relevant lease payments into relevant asset cost or
current profit or loss according to the straight-line method or other systematically reasonable methods
during each period of the lease.
b. As the lessor
The rents arising from leasing assets shall be recorded into rent revenue using straight line method in
each period of the lease term including rent-free period. Initial direct expenses incurred are recorded into
current expense. If the amount is large, it shall be capitalized and recorded into current income in
installment in the period of lease term according to the same recognition base of rent revenue. When the
lessee bears the leasehold expenses which shall be borne by the Company, the expenses shall be
deducted from total rents and the residual rent is amortized in each period of the lease term.
(2) Accounting treatment of finance lease
a. As the lessee, it recognizes the lower of fair value of lease asset and minimum lease payment at the
beginning day of the lease as the initial value of the asset leased in and the minimum lease payment as
long-term payable, the difference as unrealized finance expense. Unrealized finance expense is
amortized in the period during the lease term and recognized as current finance expenses using actual
effective rate method.
b. As the lessor, it recognizes the difference between the total of minimum lease amount received and
residual amount not guaranteed and the present value of that as unrealized finance income. It
recognizes unrealized finance income as rent revenue in the period of lease term when the Company
receives rent. The initial direct expense related to the lease transaction shall be recorded in the initial
recognition of finance lease receivable and be deducted from recognized income in the period of lease
term.
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5. 37 Changes in significant accounting policies and accounting estimates
5.37.1. Changes in significant accounting policies
√Applicable N/A
Content and reason of changes Approval procedures Note
On 7 December 2018, the
Ministry of Finance issued the
revised Accounting Standards for
Business Enterprises No. 21 -- According to the Company's
Leases" (CK[2018]No.35) existing leased assets, if a lease
(hereinafter referred to as the meets the criteria for short-term
"New Lease Standards"). leases, the lease payment shall
According to the requirements of continue to be included in the
the Ministry of Finance, expenses according to the
companies that are listed both current model; for a lease with a
domestically and abroad and lease term of more than one year,
companies that are listed abroad it is required to recognize the
and prepare financial statements right-of-use assets and lease
under the Accounting Standards Approved on the Meeting of the liabilities and accrue
for Business Enterprises shall Board of Directors depreciation. At the same time, in
implement the New Lease accordance with the regulations
Standards from 1 January 2019; on the transition from old to new
other companies that implement standards, the Company does not
the Accounting Standards for have any lease that needs to be
Business Enterprises shall adjusted retrospectively. This
implement the New Lease change in accounting policies
Standards from 1 January 2021. does not affect the Company's
Due to the above-mentioned shareholders' equity, net profit
revision of accounting standards, and other related financial
the Company shall make indicators in 2020.
corresponding adjustments to the
lease accounting policy
previously adopted.
There was no other change in significant accounting policies in the reporting period other than the above
changes.
5.37.2. Changes in significant accounting estimates
Applicable √ N/A
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5.37.3. Adjustments to the financial statements at the beginning of the execution year of any new
standard governing leases from 2021
√Applicable N/A
Whether items of balance sheets at the beginning of the year need to be adjusted
√ Yes □ No
Consolidated balance sheet
Monetary Unit: CNY
Item 31 December 2020 1 January 2021 Adjusted
Current assets:
Cash and cash equivalents 11,624,870,340.60 11,624,870,340.60
Settlement reserves
Lending funds
Trading financial assets
Derivative financial assets
Notes receivables
Accounts receivables 1,507,852.43 1,507,852.43
Accounts receivables
3,209,371,766.35 3,209,371,766.35
financing
Prepayment 74,685,537.38 74,685,537.38
Premiums receivable
Reinsurance accounts
receivable
Reinsurance contract
reserve
Other receivables 127,032,931.42 127,032,931.42
Including：Interests
receivable
Dividends
1,407,900.00 1,407,900.00
receivable
Buying back the sale of
financial assets
Inventories 4,695,663,431.25 4,695,663,431.25
Contract assets
Assets held for sale
Non-current assets due
within one year
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Other current assets 156,565,424.18 156,565,424.18
Total current assets 19,889,697,283.61 19,889,697,283.61
Non-current assets:
Disbursement of loans and
advances
Investment in debt
obligations
Investment in other debt
obligations
Long-term receivables
Long-term equity
2,477,667,171.27 2,477,667,171.27
investments
Other equity instrument
347,160,399.42 347,160,399.42
investment
Other non-current financial
assets
Investment property
Fixed assets 6,887,108,174.72 6,887,108,174.72
Construction in progress 2,012,129,880.15 2,012,129,880.15
Productive biological
assets
Oil and gas assets
Right-to-use assets 50,201,409.36 50,201,409.36
Intangible assets 2,657,118,025.37 2,657,118,025.37
Development expenses
Goodwill
Long-term deferred
2,305,902.21 2,305,902.21
expenses
Deferred tax assets 725,210,660.84
Other non-current assets 10,806,325.86 10,806,325.86
Total non-current assets 15,119,506,539.84 15,169,707,949.20 50,201,409.36
Total assets 35,009,203,823.45 35,059,405,232.81 50,201,409.36
Current liabilities:
Short-term loans
Borrowings from the
central bank
Loans from other banks
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Trading financial liabilities
Derivative financial
liabilities
Notes payable 121,285,117.60 121,285,117.60
Accounts payable 2,604,289,199.77 2,604,289,199.77
Advance from customer
Contract liabilities 1,678,837,166.94 1,678,837,166.94
Financial assets sold for
repurchase
Customers deposits and
deposits from banks and
other financial institutions
Customer brokerage
deposits
Securities underwriting
brokerage deposits
Employee benefits payable 505,022,627.19 505,022,627.19
Taxes payable 2,046,027,211.13 2,046,027,211.13
Other payable 501,623,924.54 501,623,924.54
Including：Interests
payable
Dividends
payable
Handling charges and
commissions payable
Reinsurance accounts
payable
Liabilities held for sale
Non-current liabilities due
72,219,178.08 82,207,133.16 9,987,955.08
within one year
Other current liabilities 218,267,353.36 218,267,353.36
Total current liabilities 7,747,571,778.61 7,757,559,733.69 9,987,955.08
Non-current liabilities:
Insurance contract
reserves
Long-term loans
Bonds payable 3,987,872,100.02 3,987,872,100.02
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Including: Preferred
shares
Perpetual bonds
Lease liabilities 40,213,454.28 40,213,454.28
Long-term payables
Long-term payroll
payables
Accrued liabilities
Deferred income 29,739,000.00 29,739,000.00
Deferred tax liabilities 62,151,071.11
Other non-current liabilities
Total non-current liabilities 4,079,762,171.13 4,119,975,625.41 40,213,454.28
Total liabilities 11,827,333,949.74 11,877,535,359.10 50,201,409.36
Owners' equity:
Share capital 1,464,752,476.00 1,464,752,476.00
Other equity instruments
Including: Preferred
shares
Perpetual bonds
Capital reserves 3,722,777,063.13 3,722,777,063.13
Less: Treasury stock
Other comprehensive
186,063,325.03 186,063,325.03
income
Special reserves
Surplus reserves 1,464,752,476.00 1,464,752,476.00
General risk reserve
Undistributed profits 16,236,513,212.43 16,236,513,212.43
Total equity attributable to
owners of the parent 23,074,858,552.59 23,074,858,552.59
company
Non-controlling interests 107,011,321.12 107,011,321.12
Total owners' equity 23,181,869,873.71 23,181,869,873.71
Total liabilities and owners'
35,009,203,823.45 35,059,405,232.81 50,201,409.36
equity
Statement for adjustment
In accordance with the requirements of Accounting Standards for Business Enterprises No.21-Lease
issued by the Ministry of Finance, the Company starts to implement it since 1 January 2021. For details
on specific items and amounts affected, please refer to above statement.
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Balance sheet of parent company
Monetary Unit: CNY
Item 31 December 2020 1 January 2021 Adjusted
Current assets:
Cash and cash equivalents 11,100,327,211.33 11,100,327,211.33
Trading financial assets
Derivative financial assets
Notes receivables
Accounts receivables 3,927.50 3,927.50
Accounts receivables
financing
Prepayment 1,431,698.57 1,431,698.57
Other receivables 7,052,749,694.83 7,052,749,694.83
Including: Interests
receivable
Dividends
1,407,900.00 1,407,900.00
receivable
Inventories 850,076.30 850,076.30
Contract assets
Assets held for sale
Non-current assets due
within one year
Other current assets 78,509.44 78,509.44
Total current assets 18,155,441,117.97 18,155,441,117.97
Non-current assets:
Investment in debt
obligations
Investment in other debt
obligations
Long-term receivables
Long-term equity
5,884,091,712.47 5,884,091,712.47
investments
Other equity instrument
346,831,477.79 346,831,477.79
investment
Other non-current financial
assets
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Investment property
Fixed assets 640,254,574.76 640,254,574.76
Construction in progress 550,932,404.00 550,932,404.00
Productive biological
assets
Oil and gas assets
Right-to-use assets 730,727.38 730,727.38
Intangible assets 684,010,106.13 684,010,106.13
Development expenses
Goodwill
Long-term deferred
2,180,811.89 2,180,811.89
expenses
Deferred tax assets 89,484,552.65 89,484,552.65
Other non-current assets 1,526,325.86 1,526,325.86
Total non-current assets 8,199,311,965.55 8,200,042,692.93 730,727.38
Total assets 26,354,753,083.52 26,355,483,810.90 730,727.38
Current liabilities:
Short-term loans
Trading financial liabilities
Derivative financial
liabilities
Notes payables
Accounts payable 80,663,835.54 80,663,835.54
Advance from customer
Contract liabilities 753,349.81 753,349.81
Employee benefits payable 168,254,646.38 168,254,646.38
Taxes payable 153,437,992.21 153,437,992.21
Other payables 699,733,563.56 699,733,563.56
Including：Interests
payable
Dividends
payable
Liabilities held for sale
Non-current liabilities due
72,219,178.08 72,613,678.08 394,500.00
within one year
Other current liabilities 116,457.13 116,457.13
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Total current liabilities 1,175,179,022.71 1,175,573,522.71 394,500.00
Non-current liabilities:
Long-term loans
Bonds payable 3,987,872,100.02 3,987,872,100.02
Including: Preferred
shares
Perpetual
bonds
Lease liabilities 336,227.38 336,227.38
Long-term payables
Long-term payroll
payables
Accrued liabilities
Deferred income 1,904,000.00 1,904,000.00
Deferred tax liabilities 62,151,071.11 62,151,071.11
Other non-current liabilities
Total non-current liabilities 4,051,927,171.13 4,052,263,398.51 336,227.38
Total liabilities 5,227,106,193.84 5,227,836,921.22 730,727.38
Owners' equity
Share capital 1,464,752,476.00 1,464,752,476.00
Other equity instruments
Including: Preferred
shares
Perpetual bonds
Capital reserves 3,706,816,950.12 3,706,816,950.12
Less: Treasury stock
Other comprehensive
185,441,302.55 185,441,302.55
income
Special reserves
Surplus reserves 1,464,752,476.00 1,464,752,476.00
Undistributed profits 14,305,883,685.01 14,305,883,685.01
Total owners' equity 21,127,646,889.68 21,127,646,889.68
Total liabilities and owners'
26,354,753,083.52 26,355,483,810.90 730,727.38
equity
Statement for adjustment
In accordance with the requirements of Accounting Standards for Business Enterprises No.21-Lease
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issued by the Ministry of Finance, the Company starts to implement it since 1 January 2021. For details
on specific items and amounts affected, please refer to above statement.
5.37.4. Retrospective restatement of previous comparative data due to the execution of any new
standard governing lease from 2021
Applicable √ N/A
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
2
Land use tax Land area CNY 5-18.00/m
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 America)
21%-40%
Co., Ltd.
Mingjiang Co., Ltd. 21%-40%
Luzhou Red Sorghum Modern Agricultural Development
Exempted from corporate income tax
Co., Ltd.
Guangxi Luzhou Laojiao Imported Liquor Industry Co., Ltd. 9%
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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
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.
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
Monetary Unit: CNY
Item Closing Balance Opening Balance
Cash 26,690.29 26,978.10
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Bank deposit 13,550,514,925.33 11,616,532,676.06
Other cash and cash equivalents 60,840,032.93 8,310,686.44
Total 13,611,381,648.55 11,624,870,340.60
Including: Total deposit outbound 77,396,751.36 68,247,418.50
Total amount with restriction to
87,027,139.90 56,675,277.79
use due to mortgage, pledge or freeze
Other statements:
Note1: The deposit outbound is the balance of cash and cash equivalents of the foreign holding
subsidiary of the Company.
Note 2: The closing balance of other cash and cash equivalents is the travel service deposit of CNY
1,400,000.00 deposited by the Company's wholly-owned subsidiary, Luzhou Laojiao Tourism Culture
Co., Ltd., in the designated bank according to the regulations of the tourism bureau, and balance of CNY
59,440,032.93 deposited by the Company's holding subsidiary, Luzhou Laojiao Electronic Commerce
Co., Ltd. on the third-party e-commerce platform.
Note 3: CNY 1,400,000.00 of the total amount of funds with limited use rights due to mortgage, pledge or
freezing is the travel service deposit with limited use rights in other cash and cash equivalents; CNY
85,627,139.90 is the fixed deposit interest accrued on the accrual basis.
Note 4: There is no special benefit arrangement such as establishing a fund co-management account
with related parties in the current period.
Liquor and wine manufacturing companies shall disclose in detail whether there are special interest
arrangements such as establishing co-management accounts with related parties.
□ Applicable √ N/A
7.2. Accounts receivable
7.2.1. Classification of accounts receivable
Monetary Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proportio Proportio value
Amount Amount Amount Amount
on on n n
Including:
Accounts
receivable tested 7,064,78 100.00 353,273. 6,711,51 1,587,22 79,372.6 1,507,852.
5.00% 100.00% 5.00%
for impairment by 9.79 % 90 5.89 5.12 9 43
the portfolio
Including:
Accounts 7,064,78 100.00 353,273. 5.00% 6,711,51 1,587,22 100.00% 79,372.6 5.00% 1,507,852.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
receivable tested 9.79 % 90 5.89 5.12 9 43
for impairment on
the portfolio with
characteristics of
credit risk
7,064,78 100.00 353,273. 6,711,51 1,587,22 79,372.6 1,507,852.
Total 5.00% 100.00% 5.00%
9.79 % 90 5.89 5.12 9 43
Accounts receivable tested for impairment on the portfolio:
Monetary Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 7,064,789.79 353,273.90 5.00%
Other portfolio
Total 7,064,789.79 353,273.90 --
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable
□ Applicable √ N/A
Disclosure by aging
Monetary Unit: CNY
Aging Closing balance
Within 1 year (including 1 year) 7,064,561.20
2-3 years 228.59
Total 7,064,789.79
The Company shall comply with the disclosure requirements of the Guidelines No. 14 of the Shenzhen
Stock Exchange on Industry Information Disclosure—Listed Companies Engaging in Business Related
to Food & Liquor and Wine Production.
7.2.2. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening
Type Reversal or Closing Balance
Balance Allowance Write-off Other
recovery
Provision
allowance by 79,372.69 273,901.21 353,273.90
risk portfolio
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Total 79,372.69 273,901.21 353,273.90
Note: There is no significant provision in accounts receivable reversed or recovered in the reporting
period.
7.2.3. Top five entities with the largest balances of accounts receivable
Monetary Unit: CNY
Proportion to total closing Closing balance of provision
Company name Closing Balance
balance of accounts receivable for bad debt
China Duty Free
3,684,965.70 52.16% 184,248.29
International LTD
Vang Kei Hong Trading
776,955.49 11.00% 38,847.77
Co.,Ltd
Online Banking
Online(Beijing)Technolo 427,765.35 6.05% 21,388.27
gy Co.,Ltd.
Alipay.com Co.,Ltd 386,051.91 5.46% 19,302.60
Beijing Gaohuitong
Commercial 328,806.22 4.65% 16,440.31
Management Co., Ltd.
Total 5,604,544.67 79.32%
7.3. Accounts receivable financing
Monetary Unit: CNY
Item Closing Balance Opening Balance
Bank acceptance bill 2,143,072,245.18 3,209,371,766.35
1
Total 2,143,072,245.18 3,209,371,766.35
Note: 1. The closing balance decreased CNY 1,066,299,521.17 compared with opening balance, with an
decrease by 33.22%, mainly due to bill discounting and maturity of bills during the reporting period. 2.
The business mode to manage notes receivable aims to collect contract cash flow as well as to sell the
financial assets, and thus the notes receivable is presented as accounts receivable financing; due to the
short term of notes receivable less than 1 year, and the sales time, sales price and sale proportion
cannot be estimated reliably, the face value is regarded as the fair value of accounts receivable financing
by the Company. 3. There was no allowance of provision for bad debt at the end of the reporting period.
Changes in accounts receivable financing in the reporting period and fair value:
Applicable √ N/A
Please refer to the relevant information of disclosure of impairment provision of other accounts
receivable if adopting the general mode of expected credit loss to withdraw impairment provision of
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
accounts receivable financing.
Applicable √ N/A
Other statements:
(1) There is CNY 2,613,947,742.53 as follows of accounts receivable financing that have been endorsed
to other parties by the Company but have not expired on the balance sheet date:
Item Derecognition at period-end Not derecognition at period-end
Bank acceptance bill 2,613,947,742.53
Subtotal 2,613,947,742.53
Note: The acceptor of the bank acceptance bill is a commercial bank. The probability of not being paid
due is very low, and the possibility of being recourse is very low, so the confirmation has been
terminated.
(2) There are no accounts receivable financing transferred to accounts receivable due to the
non-performance of the agreements by the issuers.
(3) There are no accounts receivable financing actually written off during the reporting period.
7.4. Prepayment
7.4.1. Aging analysis
Monetary Unit: CNY
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 110,553,828.71 87.60% 72,436,550.81 96.99%
1-2 years 14,615,217.47 11.58% 2,042,638.57 2.73%
2-3 years 906,671.00 0.72% 206,348.00 0.28%
Over 3 years 132,779.88 0.10%
1
Total 126,208,497.06 -- 74,685,537.38 --
Note: 1. The closing balance increased by CNY 51,522,959.68 compared with opening balance, with a
increase by 68.99%, mainly due to the increase of prepayments to suppliers.
Reason for failure to timely settle the significant prepayment whose aging is longer than 1 year:
7.4.2. Top five entities with the largest balances of prepayment
Company Name Closing Balance Proportion to the total closing
balance of prepayment
Shanghai Merlot Advertising Co., Ltd. 64,632,296.79 51.21%
Luzhou Western Gas Co., Ltd. 8,050,769.30 6.38%
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou Power Supply Company of State Grid 7,891,283.05 6.25%
Sichuan Electric Power Company
Shanghai Endeavor Culture Development Co., 2,140,903.20 1.70%
Ltd.
Beijing Tencent Culture Media Co., Ltd. 2,000,000.00 1.58%
Subtotal 84,715,252.34 67.12%
7.5 Other receivables
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividend receivable 36,941,917.50 1,407,900.00
Other receivables 111,996,049.52 125,625,031.42
Total 148,937,967.02 127,032,931.42
7.5.1. Dividend receivable
7.5.1.1. Classification of dividend receivable
Monetary Unit: CNY
Item Closing Balance Opening Balance
North Chemical Industries Co., Ltd. 62,542.20
Guotai Junan Securities Co., Ltd. 6,595,118.32 1,407,900.00
Huaxi Securities Co., Ltd. 30,284,256.98
Total 36,941,917.50 1,407,900.00
7.5.2. Other receivables
7.5.2.1. Other receivables disclosed by nature
Monetary Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds 30,490,693.87 44,472,270.26
Petty cash 1,321,153.01 1,023,683.10
Saving deposits involving contract
285,044,911.68 285,044,911.68
disputes
Total 316,856,758.56 330,540,865.04
130
2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.5.2.2. Allowance of provision for bad debt
Monetary Unit: CNY
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Provision for bad debt Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
4,915,833.62 200,000,000.00 204,915,833.62
2021
Balance of 1 January
2021 in the current —— —— —— ——
period
Reversal of the current
55,124.58 55,124.58
period
Balance of 30 June
4,860,709.04 200,000,000.00 204,860,709.04
2021
Changes of book balance with significant amount changed of loss provision in the current period
Applicable √ N/A
Disclosure by aging
Monetary Unit: CNY
Aging Book balance
Within 1 year (including 1 year) 19,363,911.24
1-2 years 4,555,552.32
2-3 years 5,201,156.39
Over 3 years 287,736,138.61
3-4 years 420,000.00
4-5 years 210,000.00
Over 5 years 287,106,138.61
Total 316,856,758.56
7.5.2.3. Provision and recovery for bad and doubtful other receivables in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening
Type Reversal or Closing Balance
Balance Allowance Write-off Other
recovery
131
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Other
receivables
tested for
200,000,000.00 200,000,000.00
impairment
individually
Note1
Other
receivables
tested for 4,915,833.62 55,124.58 4,860,709.04
impairment by
the portfolio
Total 204,915,833.62 55,124.58 204,860,709.04
Note 1: In the 2014 Annual Report, the Company disclosed the information about 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. 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 30 June 2021, of the deposits involved in contract disputes, the amount
that was not recovered was CNY 285,044,911.68. Related attorneys of W&H Law Firm Chengdu
produced the Legal Opinions on the Allowance of Provision for Bad Debt of Luzhou Laojiao Co., Ltd. for
Abnormal Deposits in Three Places Including Changsha and Nanyang on 10 March 2021. According to
the opinions, “Whereas during the period from the issue of previous legal opinions till this production of
legal opinions on the allowance proportion of provision for bad debt, there is no matter that occurred and
affected or changed the provision for bad debt, and thus the judgment on the allowance of provision for
bad debt at CNY 200 million shall remain”. Refer to Note 12.2. for details.
Note 2: There is no provision for bad debt with significant amount in other receivables reversed or
recovered.
7.5.2.4. Top five entities with the largest balances of the other receivables
Monetary Unit: CNY
Provisioning
Proportion in total
Company Name Nature Closing Balance Aging amount at period
receivables
end
Agricultural Bank
of China Changsha
Yingxin
Sub-branch,
Saving deposits
Industrial and
involving contract 285,044,911.68 Over 5 years 89.96% 200,000,000.00
Commercial Bank
disputes
of China Nanyang
Zhongzhou
Sub-branch and
another bank
132
2021 Interim Report of Luzhou Laojiao Co., Ltd.
CTS Luzhou
Laojiao Cultural
Tourism Security deposit 3,590,728.58 1-2 years 1.13% 359,072.86
Development Co.,
Ltd.
Housing and
Urban-Rural
Development
Security deposit 3,052,930.23 2-3 years 0.96% 610,586.05
Bureau of
Longmatan
District, Luzhou
Zhejiang Tmall
Security deposit,
Technology 2,806,954.10 Within 1 year 0.89% 140,347.71
etc.
Co.,Ltd.
Beijing Jingdong
Century
Security deposit,
Information 2,566,740.15 Within 1 year 0.81% 128,337.01
etc.
Technology Co.,
Ltd.
Total -- 297,062,264.74 -- 93.75% 201,238,343.63
7.6 Inventories
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
7.6.1. Categories of Inventories
Monetary Unit: CNY
Closing Balance Opening Balance
Provision for Provision for
stock stock
obsolescence or obsolescence or
Category impairment impairment
Book Balance Book Value Book Balance Book Value
provision of provision of
contract contract
performance performance
costs costs
Raw materials 51,969,274.14 51,969,274.14 92,033,654.20 92,033,654.20
Goods in 4,523,240,082.3 4,523,240,082.3 3,578,553,746.9 3,578,553,746.9
progress 9 9 8 8
133
2021 Interim Report of Luzhou Laojiao Co., Ltd.
1,244,587,623.2 1,244,587,623.2
Finished goods 997,109,606.41 997,109,606.41
9 9
Revolving
20,085,278.92 20,085,278.92 79,396.01 79,396.01
materials
Goods in transit 76,692,704.97 76,692,704.97 27,887,027.65 27,887,027.65
5,916,574,963.7 5,916,574,963.7 4,695,663,431.2 4,695,663,431.2
Total
1 1 5 5
The Company shall comply with the disclosure requirements of the Guidelines No. 14 of the Shenzhen
Stock Exchange on Industry Information Disclosure—Listed Companies Engaging in Business Related
to Food & Liquor and Wine Production.
7.7. Other current assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 92,262,906.57 67,752,538.61
Corporate income tax 19,973,945.99 83,493,943.79
Other taxes 6,557,217.77 5,318,941.78
Total 118,794,070.33 156,565,424.18
Other statements:
The value-added tax expected to be deducted in the next fiscal year and corporate income tax and other
taxes are disclosed in other current assets.
7.8. Long-term equity investments
Monetary Unit: CNY
Changes in current period Closing
Gain or Adjustm Balance
Opening Closing
loss ents of Cash Provision of
Balance Other Balance
Investee Decreas recogniz other divided for provision
(book Increase changes Other (book
e ed under compreh or profit impairme for
value) in equity value)
equity ensive declared nt impairme
method income nt
1. Joint Ventures
2. Associate
Huaxi
Securitie 2,383,55 101,879, 3,634,68 30,284,2 2,458,78 2,567,09
s Co., 0,372.50 949.05 7.85 56.98 0,752.42 8.80
Ltd.
Sichuan 6,854,47 -985,886 5,868,58
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Develop 1.67 .58 5.09
ment
Wine
Investme
nt Co.,
Ltd.
Sichuan
Tongnian
g Baijiu
Industry
Technolo
8,009,89 -3,523.5 8,006,37
gy
8.80 3 5.27
Researc
h
Institute
Co., Ltd.
Note
CTS
Luzhou
Laojiao
Cultural 79,252,4 3,565,77 82,818,1
Tourism 28.30 1.13 99.43
Develop
ment
Co., Ltd.
2,477,66 104,456, 3,634,68 30,284,2 2,555,47 2,567,09
Subtotal
7,171.27 310.07 7.85 56.98 3,912.21 8.80
2,477,66 104,456, 3,634,68 30,284,2 2,555,47 2,567,09
Total
7,171.27 310.07 7.85 56.98 3,912.21 8.80
7.9. Other equity instrument investment
Monetary Unit: CNY
Item Closing Balance Opening Balance
Financial assets designated to be
measured at fair value through other
comprehensive income
Including:
North Chemical Industries Co.,Ltd. 11,257,595.99 11,460,858.15
Luzhou Bank Co., Ltd. 110,483,183.01 95,561,825.55
Guotai Junan Securities Co., Ltd. 201,857,728.56 206,450,757.39
135
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Guotai Junan Investment Management
22,611,834.24 22,611,834.24
Co., Ltd.
Guojiu Big Data Co., Ltd. 10,000,000.00 10,000,000.00
Sichuan China Baijiu Golden Triangle
Brand Operation Development Co.,
1,075,124.09 1,075,124.09
Ltd. and other equity instrument
investments
Total 357,285,465.89 347,160,399.42
Categories of non-trading equity instrument investment in the current period:
Monetary Unit: CNY
Reason for
assigning to
Amount of other Reason of other
measure at fair
comprehensive comprehensive
Recognized value and
Accumulative Accumulative income income
Item dividends changes
gains losses transferred to transferred to
income recorded into
retained retained
other
earnings earnings
comprehensive
income
According to the
mode of
North Chemical
managing
Industries 62,542.20 10,227,595.99
assets by
Co.,Ltd.
management
layer
According to the
mode of
Luzhou Bank managing
59,363,183.01
Co., Ltd. assets by
management
layer
According to the
mode of
Guotai Junan
managing
Securities Co., 6,595,118.32 189,138,571.80
assets by
Ltd.
management
layer
Guotai Junan According to the
Investment mode of
Management managing
Co., Ltd. assets by
136
2021 Interim Report of Luzhou Laojiao Co., Ltd.
management
layer
According to the
mode of
Guojiu Big Data managing
Co., Ltd. assets by
management
layer
According to the
Shenzhen mode of
Xingangfeng managing
2,354,000.00
Development assets by
Co., Ltd. management
layer
According to the
mode of
Sichuan
managing
Deyang Jintai 2,000,000.00
assets by
Hotel
management
layer
According to the
mode of
Hainan Huitong
managing
International 1,000,000.00
assets by
Trust Company
management
layer
Sichuan China
Baijiu Golden
According to the
Triangle Brand
mode of
Operation
managing
Development 5,000.00 652,723.91
assets by
Co., Ltd. and
management
other equity
layer
instrument
investments
Subtotal 6,662,660.52 258,729,350.80 6,006,723.91
7.10. Fixed assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
137
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Fixed assets 7,879,118,840.44 6,885,609,781.96
Disposal of fixed assets 1,294,270.93 1,498,392.76
Total 7,880,413,111.37 6,887,108,174.72
7.10.1. Details of fixed assets
Monetary Unit: CNY
Buildings and Specialized General Transportation Other
Item Total
constructions equipment equipment equipment equipment
I. Original cost:
1. Opening 5,628,180,885.8 1,370,445,216.9 8,676,001,033.1
929,535,931.84 706,384,001.37 41,454,997.24
balance 4 0 9
2. Increase in 1,233,236,699.6
901,615,718.69 140,546,156.79 72,233,649.97 3,376,185.33 115,464,988.91
current period 9
(1) External
16,122,705.16 4,205,246.18 86,725.66 20,414,677.00
purchase
(2) Transfer
from 1,212,822,269.7
882,076,239.93 93,657,503.52 52,071,653.30 33,900.24 184,982,972.71
construction in 0
progress
(3) Increase
from business
combination
(4) Adjustment
19,539,478.76 30,765,948.11 15,956,997.50 3,342,285.09 -69,604,709.46 0.00
to categories
(5) Changes of
-247.01 -247.01
exchange rates
3. Decrease in
4,992,370.26 5,393,635.52 143,957.89 168,998.96 10,698,962.63
current period
(1) Disposal or
24,937.33 24,937.33
retirement
(2) Transfer of
reconstruction
and extension to 4,967,432.93 5,393,635.52 143,957.89 73,480.08 10,578,506.42
construction in
progress
(3) Transfer to
intangible 95,518.88 95,518.88
assets
138
2021 Interim Report of Luzhou Laojiao Co., Ltd.
4. Closing 6,524,804,234.2 1,064,688,453.1 1,485,741,206.8 9,898,538,770.2
778,473,693.45 44,831,182.57
Balance 7 1 5 5
II. Accumulated
depreciation
1. Opening 1,789,768,311.1
607,512,483.39 256,818,697.20 249,527,593.90 27,657,360.07 648,252,176.60
Balance 6
2. Increase in
102,494,304.07 59,470,449.55 34,747,350.31 1,539,066.16 30,778,972.19 229,030,142.28
current period
(1) Provision 100,870,858.87 61,000,251.27 35,650,410.27 1,500,257.32 30,008,429.18 229,030,206.91
(2) Transfer
from intangible
assets
(3) Adjustment
1,623,445.20 -1,529,801.72 -902,995.33 38,808.84 770,543.01
to categories
(4) Changes of
-64.63 -64.63
exchange rates
3. Decrease in
833.55 630.15 1,463.70
current period
(1) Disposal or
833.55 833.55
retirement
(2) Transfer of
reconstruction
and extension to
construction in
progress
(3) Transfer to
intangible 630.15 630.15
assets
4. Closing 2,018,796,989.7
710,005,953.91 316,289,146.75 284,274,944.21 29,196,426.23 679,030,518.64
Balance 4
III. Provision for
impairment
1. Opening
622,940.07 622,940.07
Balance
2. Increase in
current period
(1) Provision
3. Decrease in
139
2021 Interim Report of Luzhou Laojiao Co., Ltd.
current period
(1) Disposal or
retirement
4. Closing
622,940.07 622,940.07
Balance
IV. Book Value
1. Closing Book 5,814,175,340.2 7,879,118,840.4
748,399,306.36 494,198,749.24 15,634,756.34 806,710,688.21
Value 9 4
2. Opening 5,020,045,462.3 6,885,609,781.9
672,717,234.64 456,856,407.47 13,797,637.17 722,193,040.30
Book Value 8 6
7.10.2. Fixed assets leased out through operating lease
Monetary Unit: CNY
Item Closing book value
Buildings and constructions 177,917,182.50
7.10.3. Fixed assets without certification of right
Monetary Unit: CNY
Reason for not having the certification
Item Book value
of right
The property ownership certificate has
not been processed yet for the
Buildings of parent company 26,555,420.84 historical reasons, and it plans to be
processed after gradually improving
procedures.
Buildings of brewing company 3,540,794,347.55 In procedure
Subtotal 3,567,349,768.39
7.10.4. Disposal of fixed assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
Disposal and retirement of assets 1,294,270.93 1,498,392.76
Total 1,294,270.93 1,498,392.76
140
2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.11. Construction in progress
Monetary Unit: CNY
Item Closing Balance Opening Balance
Construction in progress 1,290,824,691.35 2,012,129,880.15
Total 1,290,824,691.35 2,012,129,880.15
7.11.1. Details of the construction in progress
Monetary Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Technical
renovation
project of 0.00 0.00 968,634,809.01 968,634,809.01
brewing of
Luzhou Laojiao
Improvement
and technical
renovation
project of 481,159,228.78 481,159,228.78 242,719,982.63 242,719,982.63
Luzhou Laojiao
production
supporting
Marketing
network
command
center office
0.00 0.00 5,473,631.57 5,473,631.57
area
reconstruction
and expansion
project
New model
application
project of
intelligent 16,862,599.30 16,862,599.30 16,862,599.30 16,862,599.30
production
workshop of
solid state baijiu
Technical 226,573,247.52 226,573,247.52 206,167,904.88 206,167,904.88
141
2021 Interim Report of Luzhou Laojiao Co., Ltd.
renovation of
Luzhou Laojiao
Intelligent
packaging
center
Guojiao Culture
Park Qiankun
Wine Castle 309,888,048.18 309,888,048.18 305,548,667.25 305,548,667.25
Cultural Tourism
project
Other projects 256,341,567.57 256,341,567.57 266,722,285.51 266,722,285.51
1,290,824,691.3 1,290,824,691.3 2,012,129,880.1 2,012,129,880.1
Total 1
5 5 5 5
Note: 1.The closing balance decreased CNY 721,305,188.8 compared with the opening balance, with a
decrease by 35.85%, because of the gradual transfer of the technical renovation project of brewing to
fixed assets.
7.11.2. Significant changes in construction in progress
Monetary Unit: CNY
Proporti Includin
Capitali
on of Accumu g:
Increas Transfer zation
Openin Other accumul lative Capitali
e in into Closing Progres rate for Source
Item Budget g decreas ative capitaliz zed
current fixed Balance s (%) the of funds
Balance es project ed interest
period assets period
input in interest for the
(%)
budget period
Technic
al
renovati
Capital
on
8,877,2 1,073,7 raised
project 968,634 107,045 1,943,6 100.00 109,424 22,310,
76,500. 36,655. 0.00 93.84% 3.67% and
of ,809.01 ,469.67 23.00 % ,753.82 774.20
00 68 self-rais
brewing
ed
of
Luzhou
Laojiao
Improve
ment
888,544 242,719 238,439 481,159
and 54.15% 80.00% Other
,100.00 ,982.63 ,246.15 ,228.78
technica
l
142
2021 Interim Report of Luzhou Laojiao Co., Ltd.
renovati
on
project
of
Luzhou
Laojiao
producti
on
supporti
ng
Marketi
ng
network
comma
nd
center
office 271,500 5,473,6 4,857,5 10,117, 213,551 100.00
0.00 98.66% Other
area ,000.00 31.57 45.96 626.43 .10 %
reconstr
uction
and
expansi
on
project
New
model
applicati
on
project
of
intellige
245,100 16,862, 16,862,
nt 95.98% 99.00% Other
,000.00 599.30 599.30
producti
on
worksho
p of
solid
state
baijiu
Technic
1,577,9
al 206,167 20,405, 226,573
13,400. 14.36% 20.00% Other
renovati ,904.88 342.64 ,247.52
00
on of
143
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou
Laojiao
Intellige
nt
packagi
ng
center
Guojiao
Culture
Park
Qiankun
337,885 305,548 4,339,3 309,888
Wine 91.71% 95.00% Other
,813.44 ,667.25 80.93 ,048.18
Castle
Cultural
Tourism
project
12,198, 1,745,4 1,083,8 1,034,4
375,086 2,157,1 109,424 22,310,
Total 219,813 07,594. 54,282. 83,123. -- -- 3.67% --
,985.35 74.10 ,753.82 774.20
.44 64 11 78
7.12. Right-of-use assets
Monetary Unit: CNY
Buildings and
Item Specialized equipment Land use right Total
constructions
1. Opening balance 17,520,623.03 32,680,786.33 50,201,409.36
2. Increase in current
19,505,876.84 19,505,876.84
period
(1) Lease in 19,505,876.84 19,505,876.84
4. Closing Balance 37,026,499.87 32,680,786.33 69,707,286.20
2. Increase in current
12,364,816.75 1,817,456.35 14,182,273.10
period
(1) Provision 12,364,816.75 1,817,456.35 14,182,273.10
4. Closing Balance 24,661,683.12 30,863,329.98 55,525,013.10
1. Closing Book Value 24,661,683.12 30,863,329.98 55,525,013.10
2. Opening Book Value 17,520,623.03 32,680,786.33 50,201,409.36
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.13. Intangible assets
7.13.1. Details of intangible assets
Monetary Unit: CNY
No-patent right Computer
Item Land use right Patent right Trademark right Total
technology software
I. Original cost
1. Opening 2,743,432,254.3 2,795,089,466.0
1,700,050.44 48,066,415.14 1,890,746.08
Balance 4 0
2. Increase in
770,063.00 4,650,675.59 5,420,738.59
current period
(1) Acquired
(2) Internal
developed
(3) Business
combination
(4) Transferred
from
770,063.00 4,555,156.71 5,325,219.71
construction in
progress
(5) Transferred
from fixed 95,518.88 95,518.88
assets
3. Decrease in
current period
(1) Disposal
4. Closing 2,744,202,317.3 2,800,510,204.5
1,700,050.44 52,717,090.73 1,890,746.08
Balance 4 9
II. Accumulated
amortization
1. Opening
110,708,419.78 570,599.00 24,977,019.46 1,715,402.39 137,971,440.63
Balance
2. Increase in
30,451,338.86 65,002.52 1,518,000.60 43,123.76 32,077,465.74
current period
(1) Provision 30,451,338.86 65,002.52 1,517,370.45 43,123.76 32,076,835.59
(2) Transferred
630.15 630.15
from fixed
145
2021 Interim Report of Luzhou Laojiao Co., Ltd.
assets
3. Decrease in
current period
(1) Disposal
4. Closing
141,159,758.64 635,601.52 26,495,020.06 1,758,526.15 170,048,906.37
Balance
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 2,603,042,558.7 2,630,461,298.2
1,064,448.92 26,222,070.67 132,219.93
Value 0 2
2. Opening 2,632,723,834.5 2,657,118,025.3
1,129,451.44 23,089,395.68 175,343.69
Book Value 6 7
The proportion of intangible assets formed by internal development to the balance of intangible assets at
the period-end
7.14. Long-term deferred expense
Monetary Unit: CNY
Item Opening Balance Increase Amortization Other decrease Closing Balance
Improvement
expense of rented 2,305,902.21 421,016.50 1,884,885.71
fixed assets
Total 2,305,902.21 421,016.50 1,884,885.71
146
2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.15. Deferred tax assets/ deferred tax liabilities
7.15.1. Deferred tax assets before offset
Monetary Unit: CNY
Closing Balance Opening Balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
207,428,708.96 51,857,177.24 208,184,340.96 52,032,763.16
impairment
Unrealized profits from
1,896,397,153.41 474,099,288.35 2,210,592,352.66 552,648,088.16
internal transactions
Deductible losses 12,668,914.76 3,167,228.69 11,342,715.00 2,835,678.76
Impact from salary 436,074,344.40 109,018,586.10 441,020,431.90 108,714,676.83
Impact from deferred
34,538,157.16 8,634,539.29 29,739,000.00 7,434,750.00
earnings
Impact from fixed
1,554,602.41 296,565.57 260,745.17 43,022.95
assets depreciation
Impact from fair value
changes of other
6,006,723.91 1,501,680.98 6,006,723.91 1,501,680.98
equity instrument
investment
Total 2,594,668,605.01 648,575,066.22 2,907,146,309.60 725,210,660.84
7.15.2. Deferred tax liabilities before offset
Monetary Unit: CNY
Closing Balance Opening Balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Fair value changes of
other equity instrument 258,729,350.80 64,682,337.72 248,604,284.33 62,151,071.11
investment
Total 258,729,350.80 64,682,337.72 248,604,284.33 62,151,071.11
7.15.3. Details of unrecognized deferred tax assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
147
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Deductible losses 48,678,162.31 123,969,302.33
Impact from employee benefits payable 141,256.03 74,816.40
Total 48,819,418.34 124,044,118.73
7.14.4. Deductible losses from unrecognized deferred tax assets will due on the following years
Monetary Unit: CNY
Year Closing Amount Opening Amount Notes
2021
2022
2023 535,737.90 535,737.90
2024 14,123,815.19 11,691,604.41
2025 34,018,609.22 111,741,960.02
Total 48,678,162.31 123,969,302.33 --
7.16. Other non-current assets
Monetary Unit: CNY
Closing Balance Opening Balance
Item Book Provision for Book Provision for
Book value Book value
balance impairment balance impairment
11,956,325. 11,956,325. 10,806,325. 10,806,325.
Prepaid equipment and land expense
86 86 86 86
11,956,325. 11,956,325. 10,806,325. 10,806,325.
Total
86 86 86 86
7.17. Notes payable
Monetary Unit: CNY
Category Closing Balance Opening Balance
Bank acceptance bill 121,285,117.60
Total 121,285,117.60
7.18. Accounts payable
7.18.1. Presentation of accounts payable
Monetary Unit: CNY
148
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Category Closing Balance Opening Balance
Materials and service expense 828,250,278.80 845,025,160.84
Engineering equipment expense 1,544,021,456.23 1,759,264,038.93
Total 2,372,271,735.03 2,604,289,199.77
7.19. Contract liabilities
Monetary Unit: CNY
Category Closing Balance Opening Balance
Within 1 year 1,341,672,929.97 1,637,685,488.79
1-2 years 28,212,798.27 15,504,524.56
2-3 years 13,478,445.81 14,385,601.53
Over 3 years 24,705,402.49 11,261,552.06
Total 1,408,069,576.54 1,678,837,166.94
7.20. Employee benefits payable
7.20.1. Employee benefits payable shown as follows
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Short-term benefits 439,256,934.36 511,483,240.19 578,570,673.70 372,169,500.85
2. Post-employment
benefits- defined 65,756,721.30 52,216,441.83 46,593,456.48 71,379,706.65
contribution plans
3. Termination benefits 8,971.53 8,971.53
Total 505,022,627.19 563,699,682.02 625,164,130.18 443,558,179.03
7.20.2. Short-term employee benefits payable shown as follows
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Wages, bonuses,
362,289,928.18 434,459,302.51 503,652,589.77 293,096,640.92
allowances and grants
2. Employees’ welfare 20,127,264.71 20,127,264.71
3. Social insurance 15,250,336.23 18,040,425.15 17,137,395.46 16,153,365.92
149
2021 Interim Report of Luzhou Laojiao Co., Ltd.
premiums
Including: Medical
11,428,828.49 16,723,227.55 16,160,482.07 11,991,573.97
insurance premium
Work-related injury
2,035,870.30 1,273,759.60 838,350.64 2,471,279.26
insurance
Maternity insurance
1,784,957.44 43,438.00 138,562.75 1,689,832.69
premium
Other insurance
680.00 680.00
premium
4. Housing funds 4,504,648.59 30,277,378.73 27,543,569.23 7,238,458.09
5. Labor union
expenditures and
57,212,021.36 8,578,869.09 10,109,854.53 55,681,035.92
employee education
funds
Total 439,256,934.36 511,483,240.19 578,570,673.70 372,169,500.85
7.20.3. Defined contribution plan shown as follows
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Basic endowment
44,864,948.21 33,661,808.17 27,802,544.80 50,724,211.58
insurance premium
2. Unemployment
7,388,102.26 1,279,631.34 1,037,899.11 7,629,834.49
insurance premium
3. Enterprise annuity 13,503,670.83 17,275,002.32 17,753,012.57 13,025,660.58
Total 65,756,721.30 52,216,441.83 46,593,456.48 71,379,706.65
7.21. Taxes payable
Monetary Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 154,944,939.24 244,763,614.30
Consumption tax 100,167,740.18 1,059,445,349.23
Enterprise income tax 541,671,856.30 606,140,406.79
Individual income tax 5,090,656.46 5,265,751.31
Urban maintenance and construction
17,562,506.29 72,389,068.64
tax
150
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Education surcharge 7,526,901.33 31,023,067.68
Local education surcharge 5,017,934.15 20,682,045.08
Property tax 279,763.75 337,763.14
Stamp duty 2,619,648.35 5,351,912.65
Land use tax 437,619.64 616,030.55
Others 33,032.56 12,201.76
1
Total 835,352,598.25 2,046,027,211.13
Note: 1.The closing balance decreased CNY 1,210,674,612.88 compared with the opening balance, with
a decrease by 59.17%, mainly due to actual payment of tax at the end of last year during the reporting
period.
7.22. Other payables
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividends payable 3,004,207,328.28
Other payables 562,672,114.60 501,623,924.54
Total 3,566,879,442.88 501,623,924.54
7.22.1. Dividends payable
Monetary Unit: CNY
Item Closing Balance Opening Balance
Ordinary share dividends 3,004,207,328.28
Total 3,004,207,328.28
7.22.2. Other payables
7.22.2.1. Categories by nature
Monetary Unit: CNY
Item Closing Balance Opening Balance
Security deposit 533,289,161.33 485,228,527.19
Intercourse funds 1,649,186.15 8,599,977.98
Others 27,733,767.12 7,795,419.37
Total 562,672,114.60 501,623,924.54
151
2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.23. Non-current liabilities due within one year
Monetary Unit: CNY
Item Closing Balance Opening Balance
Bonds payable due within one year 89,991,780.82 72,219,178.08
Lease liabilities due within one year 10,844,782.72 9,987,955.08
Total 100,836,563.54 82,207,133.16
7.24. Other current liabilities
Monetary Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 183,049,063.92 218,267,353.36
Total 183,049,063.92 218,267,353.36
7.25. Bonds payable
7.25.1. Bonds payable
Monetary Unit: CNY
Item Closing Balance Opening Balance
Corporate bonds in 2019 (Phase I) 2,493,771,587.79 2,492,799,107.31
Corporate bonds in 2020 (Phase I) 1,495,647,196.06 1,495,072,992.71
Total 3,989,418,783.85 3,987,872,100.02
7.25.2. Increase/decrease of bonds payable (excluding other financial instrument classified as
financial liabilities such as preferred shares and perpetual bonds)
Monetary Unit: CNY
Amortiza
Withdra
Issued in tion of Repaym
wal of
Bond Par Issuing Issuing Opening the premium ent in the Closing
Duration interest
name value date amount Balance current and reporting Balance
by par
period depreciat period
value
ion
Corporat
27
e bonds 2,500,00 2,490,00 2,492,79 133,882, 972,480. 2,493,77
August 3+2
in 2019 0,000.00 0,000.00 9,107.31 191.78 48 1,587.79
2019
(Phase I)
Corporat 1,500,00 16 5 1,494,00 1,495,07 67,458,9 574,203. 1,495,64
152
2021 Interim Report of Luzhou Laojiao Co., Ltd.
e bonds 0,000.00 March 0,000.00 2,992.71 04.11 35 7,196.06
in 2020 2020
(Phase I)
3,984,00 3,987,87 201,341, 1,546,68 3,989,41
Total -- -- --
0,000.00 2,100.02 095.89 3.83 8,783.85
7.26. Lease liabilities
Monetary Unit: CNY
Item Closing Balance Opening Balance
Long-term lease liabilities 46,474,941.96 40,213,454.28
Total 46,474,941.96 40,213,454.28
7.27. Deferred income
Monetary Unit: CNY
Increase in current Decrease in
Item Opening Balance Closing Balance Reason
period current period
Reception of
Government grants 29,739,000.00 7,515,000.00 2,715,842.86 34,538,157.14
financial allocation
Total 29,739,000.00 7,515,000.00 2,715,842.86 34,538,157.14 --
Details:
Monetary Unit: CNY
Non-operati Other Cost
Increase in Related to
Opening ng income income in reduction in Other Closing
Liability Item current assets/
Balance in current current current changes Balance
period income
period period period
Demonstrati
on and
application
project of
1,904,000.0 Related to
intelligent 952,000.00 952,000.00
0 assets
production
line for baijiu
brewing and
qu-making
New mode
application
3,465,000.0 1,665,000.0 4,873,300.0 Related to
project of 256,700.00
0 0 0 assets
digital
workshop
153
2021 Interim Report of Luzhou Laojiao Co., Ltd.
for solid
state baijiu
production
Constructio
n project of
spirit room
of Luzhou 7,000,000.0 6,650,000.0 Related to
350,000.00
Laojiao 0 0 assets
brewing
technical
renovation
Luzhou
Laojiao
automatic
wine
Related to
production 500,000.00 25,000.00 475,000.00
assets
line
technical
renovation
project
Brewing
wastewater 10,000,000. 9,500,000.0 Related to
500,000.00
treatment 00 0 assets
project
Constructio
n project of
pottery jars
room of
3,870,000.0 3,870,000.0 Related to
Luzhou
0 0 assets
Laojiao
brewing
technical
renovation
Boiler
reconstructi
on project of
Luohan 3,000,000.0 5,850,000.0 8,217,857.1 Related to
632,142.86
Brewing 0 0 4 assets
Base of
Luzhou
Laojiao
Total 29,739,000. 7,515,000.0 2,715,842.8 34,538,157.
154
2021 Interim Report of Luzhou Laojiao Co., Ltd.
00 0 6 14
7.28. Share capital
Monetary Unit: CNY
Increases/decreases in the current period (+, -)
Conversion of
Opening Closing
Issuance of reserves
Balance Bonds share Others Subtotal Balance
new shares funds into
shares
Total number 1,464,752,47 1,464,752,47
of shares 6.00 6.00
7.29. Capital reserves
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Share premium (capital
3,542,967,507.48 3,542,967,507.48
premium)
Other capital reserves 179,809,555.65 179,809,555.65
Total 3,722,777,063.13 3,722,777,063.13
7.30. Other comprehensive income
Monetary Unit: CNY
Current Period
Less:
Previousl
Less:
y Amount
Previously
Amount recognize attribute
recognized Amount
in current d in other to
Opening in other Less: attribute Closing
Item period compreh non-contr
Balance comprehens Income to parent Balance
before ensive olling
ive income tax company
income income sharehold
transferred after tax
tax transferre ers after
to profit and
d to tax
loss
retained
earnings
I. Other comprehensive income 181,898,17 7,593,79 7,593,79 189,491
that will not be reclassified into 0.29 9.86 9.86 ,970.15
155
2021 Interim Report of Luzhou Laojiao Co., Ltd.
profit and loss
Fair value changes of other 181,898,17 7,593,79 7,593,79 189,491
equity instrument investment 0.29 9.86 9.86 ,970.15
II. Other comprehensive
4,165,154. 1,652,65 2,544,47 -891,821. 6,709,6
income that will be reclassified
74 3.22 4.29 07 29.03
into profit and loss
Including: Other
comprehensive income that will 3,193,937. 3,634,68 3,634,68 6,828,6
be reclassified into profit and 48 7.85 7.85 25.33
loss under equity method
Difference from conversion of
-1,982,03 -1,090,21 -891,821. -118,99
financial statements in foreign 971,217.26
4.63 3.56 07 6.30
currency
186,063,32 9,246,45 10,138,2 -891,821. 196,201
Total
5.03 3.08 74.15 07 ,599.18
7.31. Surplus reserves
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Statutory surplus
1,464,752,476.00 1,464,752,476.00
reserves
Total 1,464,752,476.00 1,464,752,476.00
7.32. Undistributed profits
Monetary Unit: CNY
Item Current Period Previous Period
Undistributed profit before adjustment at the
16,236,513,212.43 12,559,746,579.91
end of the last year
Undistributed profit after adjustment at the
16,236,513,212.43 12,559,746,579.91
beginning of year
Plus: Net profit attributable to owners of the
4,226,316,722.25 3,220,452,190.27
parent company for the current period
Ordinary share dividends payable 3,004,207,328.28 2,328,956,436.84
Undistributed profits at the end of the period 17,458,622,606.40 13,451,242,333.34
156
2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.33. Operating revenue and cost of sales
Monetary Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 9,195,242,633.92 1,286,448,541.49 7,566,057,028.33 1,360,968,975.63
Other business 121,854,393.13 48,706,401.97 68,425,873.54 25,667,453.22
Total 9,317,097,027.05 1,335,154,943.46 7,634,482,901.87 1,386,636,428.85
Details:
Monetary Unit: CNY
Contract category Segment 1 Segment 2 Baijiu sales Total
Commodity type 9,195,242,633.92 9,195,242,633.92
Including:
Medium and high
8,218,296,465.61 8,218,296,465.61
grade baijiu
Other baijiu 976,946,168.31 976,946,168.31
By operating segment 9,195,242,633.92 9,195,242,633.92
Including:
Domestic 9,145,951,100.30 9,145,951,100.30
Outbound 49,291,533.62 49,291,533.62
Including:
Contract type 9,195,242,633.92 9,195,242,633.92
Including:
Commodity sales
9,195,242,633.92 9,195,242,633.92
contract
Including:
Including:
Including:
Total 9,195,242,633.92 9,195,242,633.92
7.34. Business taxes and surcharges
Monetary Unit: CNY
Item Current Period Previous Period
Consumption tax 768,511,169.55 509,573,103.20
157
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Urban maintenance and construction
113,588,226.81 84,391,437.23
tax
Educational surcharge 48,680,668.64 36,066,318.42
Property tax 8,536,994.15 6,080,276.41
Land use tax 15,056,103.68 14,387,112.79
Stamp duty 5,789,652.51 5,152,513.60
Local education surcharge 32,453,779.09 23,815,732.65
Others 56,957.69 47,336.52
Total 992,673,552.12 679,513,830.82
Other note:
Note: The current period increased CNY 313,159,721.30 compared with previous period with an
increase by 46.09%, mainly due to increase in consumption tax.
7.35. Selling and distribution expenses
Monetary Unit: CNY
Item Current Period Previous Period
Advertising promotion expense 407,510,592.52 537,365,225.18
Promotion expense 482,468,677.16 314,638,554.04
Storage and logistics costs 48,338,332.97 45,113,965.94
Employee compensation 183,923,965.82 158,943,220.57
Others 61,006,363.45 55,897,243.25
Total 1,183,247,931.92 1,111,958,208.98
7.36. General and administrative expenses
Monetary Unit: CNY
Item Current Period Previous Period
Employee compensation 258,646,895.05 202,689,320.65
Depreciation and amortization 46,232,227.29 51,721,598.92
Management fee and service expense 24,286,900.46 23,647,099.54
Others 110,395,756.90 81,955,956.65
Total 439,561,779.70 360,013,975.76
7.37. Research and development expenses
Monetary Unit: CNY
158
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Item Current Period Previous Period
Comprehensive research and
36,688,121.08 32,028,581.28
development expenses
Total 36,688,121.08 32,028,581.28
7.38. Financial expenses
Monetary Unit: CNY
Item Current Period Previous Period
Interest expenses 75,787,443.01 66,532,174.99
Less: Interest income 206,402,358.25 173,389,442.03
Losses from currency exchange 1,433,551.74 -1,530,667.65
Handling charges 365,454.45 113,098.00
Unacknowledged financial charges 807,941.63
Total -128,007,967.42 -108,274,836.69
7.39. Other income
Monetary Unit: CNY
Item Current Period Previous Period
Government grants 7,226,821.19 9,570,078.30
Individual income tax commission
1,814,223.82 871,596.97
refund
Total 9,041,045.01 10,441,675.27
7.40. Investment income
Monetary Unit: CNY
Item Current Period Previous Period
Investment income from long-term equity
121,343,983.69 94,958,932.04
investments under the equity method
Dividend income gained during the period
of holding other equity instrument 6,662,660.52 9,379,824.36
investment
Total 128,006,644.21 104,338,756.40
7.41. Credit impairment loss
Monetary Unit: CNY
159
2021 Interim Report of Luzhou Laojiao Co., Ltd.
Item Current Period Previous Period
Bad debt loss of other receivables 55,124.50 -1,055,457.65
Bad debt loss of accounts receivable -273,954.83 654,390.95
Total -218,830.33 -401,066.70
7.42. Gains from disposal of assets
Monetary Unit: CNY
Item Current Period Previous Period
Gains from disposal of non-current
180,849.31 104,663.83
assets
Including: Gains from disposal of fixed
180,849.31 104,663.83
assets
7.43. Non-operating income
Monetary Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Compensation for default 1,190,640.00 1,019,231.18 1,190,640.00
Others 24,520,664.83 9,925,210.53 24,520,664.83
Total 25,711,304.83 10,944,441.71 25,711,304.83
Other statements:
Note: The current period increased CNY 14,766,863.12 compared with previous period with an increase
by 134.93%, mainly due to increase in other compensation income.
7.44. Non-operating costs
Monetary Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Donation 4,045,600.00 24,034,863.69 4,045,600.00
Others 4,237,809.08 15,182,522.39 4,237,809.08
Total 8,283,409.08 39,217,386.08 8,283,409.08
Other statements:
Note: The current period decreased CNY 30,933,977.00 compared with previous period with a decrease
by 78.88%, mainly due to a YoY decline in donation.
160
2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.45. Income tax expense
7.45.1. Statement of income tax expense
Monetary Unit: CNY
Item Current Period Previous Period
Current period income tax 1,269,426,840.24 849,516,324.48
Deferred income tax 76,635,594.62 184,760,038.63
1
Total 1,346,062,434.86 1,034,276,363.11
Note: 1. The current period increased CNY 311,786,071.75 compared with previous period with an
increase by 30.15%, mainly due to the increase in profits with the increase in sales revenue of high-end
baijiu.
7.45.2. Adjustment for accounting profit and income tax expense
Monetary Unit: CNY
Item Current Period
Total profit 5,612,216,270.14
Income tax expenses determined by statutory/applicable
1,403,054,067.54
tax rate
Impact from subsidiaries’ different tax rates 2,806,902.18
Impact from adjust for impact from income tax expense in
-7,135,667.68
previous period
Impact from non-taxable income -32,001,661.05
Impact from non-deductible costs, expenses and losses 1,307,628.13
Impact from deductable losses of unrecognized deferred
-24,312,041.64
income tax at the beginning of the reporting period
Impact from deductible temporary difference or losses due
14,784,495.73
to unrecognized deferred tax asset in current period
Impact from research and development expense deduction -12,441,288.35
Income tax expense 1,346,062,434.86
7.46. Other comprehensive income
Details in Note 5.30. Other comprehensive income.
161
2021 Interim Report of Luzhou Laojiao Co., Ltd.
7.47. Notes to the statement of cash flow
7.47.1. Cash received from other operation activities
Monetary Unit: CNY
Item Current Period Previous Period
Government grants 11,642,998.38 9,941,675.27
Interest income from bank deposit 174,050,502.18 146,071,271.36
Others 310,409,766.53 62,865,732.81
Total 496,103,267.09 218,878,679.44
7.47.2. Cash paid for other operating activities
Monetary Unit: CNY
Item Current Period Previous Period
Cash paid for expenses 1,068,313,251.12 1,114,045,507.54
Total 1,068,313,251.12 1,114,045,507.54
7.47.3. Cash paid for other financing activities
Monetary Unit: CNY
Item Current Period Previous Period
Cash paid for renting houses,
1,844,313.68
equipment etc.
Rating and registration fee for
180,000.00
corporate bonds in 2020 (Phase I)
Total 1,844,313.68 180,000.00
7.48. Supplementary information to statement of cash flow
7.48.1. Supplementary information to statement of cash flow
Monetary Unit: CNY
Item Current Period Previous Period
1. Reconciliation of net profit to cash flow
-- --
from operating activities:
Net profit 4,266,153,835.28 3,224,541,434.19
Plus: Provision for asset impairment 218,830.33 401,066.70
Depreciation of fixed asset, oil and gas 229,030,142.28 117,157,264.80
162
2021 Interim Report of Luzhou Laojiao Co., Ltd.
assets and productive biological assets
Depreciation of right-of-use assets
Amortization of intangible assets 32,077,465.74 10,313,976.80
Amortization of long-term deferred
421,016.50 250,314.19
expense
Losses from disposal of fixed assets,
intangible assets and other long-term -180,849.31 -104,663.83
assets (Gains use “-”)
Losses from retirement of fixed assets
(Gains use “-”)
Losses from change in fair value (Gains
use “-”)
Financial expenses (Gains use “-”) -128,007,967.42 -108,274,836.69
Losses on investments (Gains use “-”) -128,006,644.21 -104,338,756.40
Decrease in deferred income tax assets
76,635,594.62 184,760,038.63
(Increase uses “-”)
Increase in deferred income tax liabilities
517,839.41
(Decrease uses “-”)
Decrease in inventories (Increase use
-1,220,911,532.46 164,180,911.74
“-”)
Decrease in operating receivables
1,047,344,251.88 -507,042,866.12
(Increase use “-”)
Increase in operating payables
-1,436,537,103.33 -2,253,546,301.18
(Decrease use “-”)
Others
Net cash flows from operating activities 2,738,237,039.90 728,815,422.24
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 13,524,354,508.65 10,932,349,651.46
Less: Opening balance of cash 11,568,195,062.81 9,752,266,526.78
Plus: Closing balance of cash
163
2021 Interim Report of Luzhou Laojiao Co., Ltd.
equivalents
Less: Opening balance of cash
equivalents
Net change in cash and cash equivalents 1,956,159,445.84 1,180,083,124.68
7.48.2. Composition of cash and cash equivalent
Monetary Unit: CNY
Item Opening Balance Closing Balance
1. Cash 13,524,354,508.65 11,568,195,062.81
Including: Cash on hand 26,690.29 26,978.10
Unrestricted bank deposit 13,463,487,785.43 11,561,257,398.27
Other unrestricted cash and
60,840,032.93 6,910,686.44
cash equivalents
3. Closing balance of cash and cash
13,524,354,508.65 11,568,195,062.81
equivalents
Including: Cash and cash equivalent with
restriction to use of parent company and 87,027,139.90 56,675,277.79
subsidiaries
Other statements:
Note: The difference between the closing balance of cash and cash equivalents and cash at bank and on
hand is CNY 87,027,139.90, of which, CNY 1,400,000.00 is a travel service deposit with limited use
rights in other cash and cash equivalents and CNY 85,627,139.90 is provision for fixed deposit interest
on an accrual basis.
7.49. Assets with restricted ownership or use rights
Monetary Unit: CNY
Item Closing book balance Reason for restriction
provision for fixed deposit interest on
Bank deposits 85,627,139.90
an accrual basis
According to the regulations of tourism
Other cash and cash equivalents 1,400,000.00 bureau, travel service deposit is
deposited in a designated bank.
Total 87,027,139.90 --
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7.50. Foreign currency transactions
7.50.1. Foreign currency transactions
Monetary Unit: CNY
Closing Balance in Foreign
Item Exchange Rate Closing Balance in CNY
Currency
Cash at Bank and on Hand -- --
Including: USD 36,639,771.08 6.4601 236,696,585.15
EUR
HKD 7,393,783.31 0.8321 6,152,367.09
Accounts Receivable -- --
Including: USD 32,612.35 6.4601 210,679.04
EUR
HKD 5,616,023.35 0.8321 4,673,093.03
GBP 87,304.00 8.9410 780,585.06
Long-term Loans -- --
Including: USD
EUR
HKD
Other Receivables
Including: USD 45.12 6.4601 291.48
HKD 2,076,380.93 0.8321 1,727,756.57
AUD
Accounts Payable
Including: USD 222,488.26 6.4601 1,437,296.41
HKD 2,307,339.48 0.8321 1,919,937.18
Other Payables
Including: USD 30,000.00 6.4601 193,803.00
HKD 26,419,841.95 0.8321 21,983,950.49
7.50.2. 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
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Bookkeeping
Company Operation site Choosing Reason
currency
Luzhou Laojiao International Development Currency in the
Hong Kong, China HKD
(Hong Kong) Co., Ltd. registration place
Luzhou Laojiao Commercial Development Currency in the
USA USD
(North America) Co., Ltd. registration place
Mingjiang Co., Ltd. Currency in the
USA USD
registration place
7.51. Government grants
7.51.1. Details of government grants
Monetary Unit: CNY
Amount included in profit or
Item Amount Presentation
loss of the current period
Related to assets 34,538,157.14 Deferred income 2,715,842.86
Related to income 4,510,978.33 Other income 4,510,978.33
Total 39,049,135.47 7,226,821.19
8. Interests in other entities
8.1. Interests in subsidiaries
8.1.1. Group composition
Name of Major business Place of Nature of Shareholding Proportion Acquisition
Subsidiaries location registration business Direct Indirect method
Luzhou Laojiao Baijiu
Brewing Co., Luzhou Luzhou manufacture 100.00% Investment
Ltd. and sales
Luzhou Red
Sorghum Business
Agricultural
Modern combination
Luzhou Luzhou product planting 60.00%
Agricultural under common
and sales
Development control
Co., Ltd.
Sales Company
Luzhou Luzhou Baijiu sales 100.00% Investment
of Luzhou
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Laojiao Co., Ltd.
Luzhou Laojiao
New Retail Co., Chengdu Chengdu Baijiu sales 100.00% Investment
Ltd.
Luzhou Laojiao
Nostalgic Liquor
Luzhou Luzhou Baijiu sales 100.00% Investment
Marketing Co.,
Ltd.
Luzhou Laojiao
Custom Liquor Luzhou Luzhou Baijiu sales 15.00% Investment
Co., Ltd. Note
Luzhou Laojiao
Selected Supply
Chain Luzhou Luzhou Baijiu sales 100.00% Investment
Management
Co., Ltd.
Guangxi Luzhou
Laojiao Red wine
Imported Liquor Qinzhou Qinzhou production and 100.00% Investment
Industry Co., sales
Ltd.
Luzhou Dingli
Liquor Industry Luzhou Luzhou Baijiu sales 100.00% Investment
Co., Ltd.
Luzhou Dingyi
Liquor Industry Luzhou Luzhou Baijiu sales 100.00% Investment
Sales Co., Ltd.
Luzhou Dinghao
Liquor Industry Luzhou Luzhou Baijiu sales 100.00% Investment
Sales Co., Ltd.
Luzhou Laojiao
Import and Liquor import
Luzhou Luzhou 100.00% Investment
Export Trade and export trade
Co., Ltd.
Luzhou Laojiao
Boda Liquor
Industry Luzhou Luzhou Baijiu sales 75.00% Investment
Marketing Co.,
Ltd.
Luzhou Laojiao
Luzhou Luzhou Baijiu sales 100.00% Investment
Bosheng
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Hengxiang
Liquor Sales
Co., Ltd.
Luzhou Laojiao
Fruit Wine
Luzhou Luzhou Fruit liquor sales 41.00% Investment
Industry Co.,
Ltd. Note
Mingjiang Co.,
America America Baijiu sales 54.00% Investment
Ltd.
Luzhou
Technology
Pinchuang
Luzhou Luzhou development 100.00% Investment
Technology Co.,
and service
Ltd.
Luzhou Laojiao
Baijiu sales,
Tourism Culture Luzhou Luzhou 100.00% Investment
tourism
Co., Ltd.
Luzhou Laojiao
International
Development Hong Kong Hong Kong Liquor sales 55.00% Investment
(Hong Kong)
Co., Ltd.
Luzhou Laojiao
Commercial
Business
Development America America 100.00% Investment
development
(North America)
Co., Ltd.
Luzhou Laojiao
Electronic
Luzhou Luzhou Liquor sales 90.00% Investment
Commerce Co.,
Ltd.
Luzhou Laojiao
Whitail
Innovated
Luzhou Luzhou Liquor sales 100.00% Investment
Electronic
Commerce Co.,
Ltd.
Luzhou Laojiao
Selected
Electronic Luzhou Luzhou Liquor sales 100.00% Investment
Commerce Co.,
Ltd.
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Luzhou Laojiao
Whitail Liquor
Luzhou Luzhou Liquor sales 35.00% Investment
Industry Co.,
Ltd. Note
Chengdu Tianfu
Panda Whitail
Chengdu Chengdu Liquor sales 60.00% Investment
Liquor Industry
Co., Ltd. Note
Luzhou Baonuo Fermented
Biotechnology Luzhou Luzhou product 100.00% Investment
Co., Ltd. manufacture
Luzhou Laojiao Health care Business
Health Liquor liquor combination
Luzhou Luzhou 100.00%
Industry manufacture under common
Co.,Ltd. and sales control
Luzhou Laojiao Business
Health Sales Health care combination
Luzhou Luzhou 100.00%
Co., Ltd. liquor sales under common
control
Statement for that the proportion of share-holding is different from the proportion of voting rights:
As the Note 3.6, the Company holds less than 51% shares of Luzhou Laojiao Custom Liquor Co., Ltd.,
Luzhou Laojiao Fruit Liquor Industry Co., Ltd., and Luzhou Laojiao Whitail Liquor Industry Co., Ltd. but in
these companies’ board, among the five members, the Company has sent three persons, which is in the
majority. The Company has substantial control over these companies, so they are included in the
consolidation scope.
8.1.2. Important non-wholly-owned subsidiaries
Monetary Unit: CNY
Gains and losses
Proportion of share Dividends paid to
attributable to Closing balance of
holdings of non-controlling
Name of subsidiary non-Controlling non-controlling
non-Controlling shareholders during
shareholders during shareholders interest
shareholders current period
current period
Luzhou Laojiao Boda
Liquor Industry 25.00% 13,863,532.37 83,495,883.22
Marketing Co., Ltd.
8.1.3. Major financial information of important non-wholly-owned subsidiaries
Monetary Unit: CNY
Name of Closing Balance Opening Balance
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subsidia Non-cur Non-cur
Non-cur Current Total Non-cur Total
ry Current Total rent Current Total Current rent
rent liabilitie liabilitie rent liabilitie
assets assets liabilitie assets assets liabilities liabilitie
assets s s assets s
s s
Luzhou
Laojiao
Boda
Liquor 533,486 2,784,6 536,271 202,287 202,287 767,387 3,501,1 770,888 492,359 492,359
Industry ,869.06 60.08 ,529.14 ,996.27 ,996.27 ,583.35 99.33 ,782.68 ,379.30 ,379.30
Marketi
ng Co.,
Ltd.
Monetary Unit: CNY
Current Period Previous Period
Name of Total Total
Operating Operating Operating Operating
subsidiary Net profit comprehens Net profit comprehens
revenue cash flow revenue cash flow
ive income ive income
Luzhou
Laojiao
Boda Liquor 474,516,972 55,454,129. 55,454,129. 3,903,880.9 681,478,570 -33,912,343 -33,912,343 4,354,456.3
Industry .67 49 49 2 .36 .36 .36 4
Marketing
Co., Ltd.
8.2. Interests in joint ventures and associates
8.2.1. Important joint ventures and associates
Name of joint Shareholding proportion
Major business Place of Accounting
venture/associat Business nature
location registration Direct Indirect Method
es
Important joint
ventures: none
Important
associates:
Huaxi Securities Chengdu, Chengdu,
Securities 10.39% Equity method
Co., Ltd. Sichuan Sichuan
The basis of holding less than 20% of the voting rights in other entities but having significant influence or
holding 20% or more than 20% of the voting rights in other entities but having insignificant influence:
The Company has sent directors to the board of Huaxi Securities and has the corresponding substantive
decision-making power, so the Company still has significant influence on Huaxi Securities.
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8.2.2. Major financial information of important associates
Monetary Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Current assets 72,355,730,695.14 68,518,467,092.86
Non-current assets 11,948,969,027.36 8,710,176,937.94
Total assets 84,304,699,722.50 77,228,644,030.80
Current liabilities 44,962,108,035.50 42,599,988,723.12
Non-current liabilities 17,343,812,111.89 13,261,547,139.00
Total liabilities 62,305,920,147.39 55,861,535,862.12
Non-controlling shareholder interest 3,375,163.08 45,423,771.61
Shareholder interest attributable to
21,995,404,412.03 21,321,684,397.07
parent company
Share of net assets calculated based
2,286,107,180.37 2,216,083,636.60
on shareholding proportion
--Others 167,466,735.90 167,466,735.90
Book value of equity investments in
2,458,780,752.42 2,383,550,372.50
associate companies
Fair value of equity investments in
associate companies that have public 2,627,363,916.72 3,404,932,677.12
quote
Operating revenue 2,507,607,439.97 2,093,322,666.77
Net profit 980,557,738.54 923,922,741.39
Other comprehensive income 34,982,558.76 10,391,172.52
Total comprehensive income 1,015,540,297.31 934,313,913.91
8.2.3. Financial information summarized of unimportant joint ventures and associate companies
Monetary Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Joint ventures: -- --
Total following items calculated on the
-- --
basis of shareholding proportion
Associate companies: -- --
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Total book value of investments 96,693,159.79 94,116,798.77
Total following items calculated on the
-- --
basis of shareholding proportion
--Net profit 5,372,490.27 -1,036,640.79
-- Total comprehensive income 5,372,490.27 -1,036,640.79
9. Risks related to financial instruments
Business activities of a company usually face various financial risks, mainly credit risk, liquidity risk and
market risk. The Company's overall risk management plan addresses the unpredictability of financial
markets and seeks to reduce potential adverse effects on the Company's financial performance.
9.1. 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.
9.2. 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,
and in recent years there has been no external borrowing to supplement the working capital of daily
operating activities. The liquidity risk is extremely small.
9.3. Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate
due to changes in market prices, including foreign exchange risk, interest rate risk and other price risks.
9.3.1. Foreign exchange risk
The Company's main business is located in the mainland of China, and main business is settled in CNY.
Only three subsidiaries, Hong Kong company, North America Company and Mingjiang company, settle
in HKD in Hong Kong and USD in the United States respectively. The proportion and impact of their
income and profit scale are negligible, and the foreign exchange risk is minimal.
9.3.2. Rate risk
The Company's operating capital is sufficient and in recent years there has been no external borrowing,
so interest rate risk is minimal.
9.3.3. 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
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
faced by the Company mainly come from available-for-sale financial assets measured at fair value.
10. Fair value disclosure
10.1. Closing fair value of assets and liabilities measured at fair value
Monetary Unit: CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
1. Continuous
measurement at fair -- -- -- --
value
1.3 Other equity
323,598,507.56 33,686,958.33 357,285,465.89
instrument investment
Accounts receivable
2,143,072,245.18 2,143,072,245.18
financing
2. Discontinuous
measurement at fair -- -- -- --
value
10.2. 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 RMB exchange rate disclosed on the
same day by China Foreign Exchange Trade System.
10.3. Valuation technique adopted and nature and amount determination of
important parameters for continuously and discontinuously within Level 3 of the fair
value hierarchy
Accounts receivable financing: Due to the short term of notes receivable less than 1 year, and the sales
time, sales price and sale proportion cannot be estimated reliably, the Company shall measure the fair
value by regarding the face value as the reasonable estimation.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Other equity instrument investment: Due to no significant changes in business environment, business
condition and financial situation of invested companies, the Company shall measure the fair value
according to the lower one between investment cost and the share of net assets enjoyed by invested
companies on the base date as the reasonable estimation.
11. Related parties and related party transactions
11.1. The parent company of the Company
Shareholding Voting rights
Parent company Registration place Business nature Registered capital proportion by the proportion by the
parent company parent company
Luzhou Laojiao Investment and
Luzhou, Sichuan 2,798,818,800.00 26.02% 51.01%
Group Co., Ltd. asset management
Statements for situation of parent company:
The nature of parent company: Limited liability company (wholly state-owned);
Registration place: Ai Rentang Square, China Baijiu Golden Triangle Liquor Industry Park, Luzhou,
Sichuan Province; Business Scope: Investment and asset management; investment in liquor, food,
finance, trade, logistics, education, medical and health, cultural tourism, Internet industry; holding
company services; social economic consulting, business management consulting; enterprise
management services; supply chain management services; import and export business and trade
agency; food production, sales (including online); planting and sales of crops (including online). (The
Company cannot start business activities until projects subject to approval according to law are
approved by relevant departments.)
The final control party of the Company is SASAC of Luzhou.
11.2. Subsidiaries of the Company
For details please see Note 8.1. Interests in subsidiaries
11.3. Joint ventures and associates of the Company
For details please see Note 8.2. Interests in joint ventures and associates.
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.
11.4. Other related party of the Company
Name of Other Related Party Relationship with the Company
Sichuan Development Wine Investment Co., Ltd. Joint venture
CTS Luzhou Laojiao Cultural Tourism Development Co., Joint venture
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Ltd.
Luzhou Jiachuang Wine Supply Chain Management Co.,
The same parent company
Ltd.
Luzhou Jiaxin Holding Group Co., Ltd. The same parent company
Sichuan Kangrun Group Construction and Installation
The same parent company
Engineering Co., Ltd.
Luzhou Laojiao Zhitong Trading Co., Ltd. The same parent company
Luzhou Laojiao Commercial College of Luzhou The same parent company
Luzhou COSCO Lianzhong Logistics Co., Ltd. The same parent company
Sichuan Kangrun Group Real Estate Development Co., Ltd. The same parent company
Sichuan Kangrun Investment Group Co., Ltd. The same parent company
Sichuan Lianzhong Supply Chain Service Co., Ltd. The same parent company
New Shottes Brook Private Company The same parent company
Luzhou Sanrenxuan Liquor Industry Co., Ltd. Joint venture of parent company
Luzhou Communication Investment Group Auto Service
Subsidiary of the second largest shareholder
Co., 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
Sichuan Meiheshan Village Winery Industry Co.,Ltd. Minority shareholder of the subsidiary Fruit Wine Industry
Other subsidiaries of Luzhou XingLu Investment Group
Other subsidiary of the second largest shareholder
Co., Ltd.
Other subsidiaries of Luzhou Laojiao Group Co., Ltd. Other subsidiary of parent company
Other statements:
On 27 May 2021, Laojiao Group and XingLu Investment Group, the second biggest shareholder,
renewed the concerted action agreement that 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. The agreement is valid as of 1 June 2021 and ends on 31 May 2024.
During the effective period of this agreement, before any party submits proposals involving the major
issues of the Company's business development to the shareholders meeting or exercise the voting rights
at the shareholders meeting and the board of directors, the internal coordination for relevant proposals
and voting events shall be conducted by persons acting in concert. If there are different opinions, it will
be subject to Laojiao Group’s opinion. In view of this, the Company will disclose the transactions with
XingLu Investment Group and its controlling enterprises as other related parties of the Company.
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11.5. Related transactions
11.5.1. Related transactions of purchase and sales of goods / rendering and receipt of services
Table of purchase of goods / receipt of services
Monetary Unit: CNY
Whether over
Name of Related Amount in Approved trading Amount in previous
Transaction approved trading
Party current period amount period
amount
Receipt of
services:
Luzhou XingLu
Property
Investment Group
management 5,310,943.19 1,573,495.21
Co., Ltd. and its
fee ,etc.
other subsidiaries
Training,
accommodation,
storage,
Laojiao Group and
transportation
its other 13,826,965.44 31,544,140.62
services,
subsidiaries
property
management fee,
etc.
CTS Luzhou
Laojiao Cultural
Travel agency
Tourism 3,404,282.00
service fee, etc.
Development Co.,
Ltd.
Purchase of
goods:
Housing
Laojiao Group and
construction fee ,
its other 189,886,890.41
land expense,
subsidiaries
etc.
Laojiao Group and
Raw materials,
its other 19,883,752.63 10,884,402.85
water, power, etc.
subsidiaries
Luzhou XingLu
Investment Group
Water, gas, etc. 6,203,699.11 4,215,676.77
Co., Ltd. and its
other subsidiaries
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Purchase and
Luzhou XingLu
construction of
Investment Group
fixed assets 1,071,420.60
Co., Ltd. and its
(pipeline
other subsidiaries
relocation, etc.)
Sichuan
Meiheshan Village
Wine 674,271.50
Winery Industry
Co.,Ltd.
Total 50,375,334.47 238,104,605.86
Table of sales of goods and rendering of service
Monetary Unit: CNY
Name of Related Party Transaction Amount in current period Amount in previous period
Sales of goods:
Laojiao Group and its
Wine, water, power, etc. 6,578,271.51 1,016,556.74
subsidiaries
Luzhou Sanrenxuan Liquor
Wine 15,278,637.12
Industry Co., Ltd.
CTS Luzhou Laojiao Cultural
Tourism Development Co., Wine 53,519,643.03
Ltd.
Rendering of service:
Laojiao Group and its
Rendering of service 1,095,440.00
subsidiaries
Total 76,471,991.66 1,016,556.74
11.5.2. Related party leasing
The Company as lessee:
Monetary Unit: CNY
Leasing fee recognized Leasing fee recognized
Name of lessor Type of leased asset
during current period during previous period
Laojiao Group and its
House lease 1,430,038.43 1,589,785.01
subsidiaries
Total 1,430,038.43 1,589,785.01
11.5.3. Key management compensation
Monetary Unit: CNY
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Item Amount in current period Amount in previous period
Key management 3,770,000.24 3,359,999.88
11.6. Receivables and payables of related parties
11.6.1. Receivables
Monetary Unit: CNY
Closing Balance Opening Balance
Item Related party Provision for bad Provision for bad
Book value Book value
debt debt
Luzhou COSCO
Accounts
Lianzhong 3,780.00
receivable
Logistics Co., Ltd.
CTS Luzhou
Laojiao Cultural
Prepayment Tourism 57,211.78
Development Co.,
Ltd.
Luzhou Public
Prepayment Transport Group 15,123.28
Co., Ltd.
Luzhou China
Prepayment Resources Xinglu 185,000.00
Gas Co., Ltd.
Luzhou XingLu
Prepayment Water (Group) Co., 279,333.75 42,883.70
Ltd.
Sichuan
Meiheshan Village
Prepayment 2,996,264.97 885,834.00
Winery Industry
Co.,Ltd.
Sichuan Kangrun
Other receivables Investment Group 10,000.00 10,000.00
Co., Ltd.
CTS Luzhou
Laojiao Cultural
Other receivables Tourism 3,590,728.58 349,958.05 3,268,472.46 163,423.62
Development Co.,
Ltd.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Sichuan
Development Wine
Other receivables 102,670.32 5,133.52
Investment Co.,
Ltd.
11.6.2. Payables
Monetary Unit: CNY
Item Related party Closing Balance Opening Balance
Guangzhou Zhongying
Accounts payable Gongyuan Energy Saving 355,312.88
Technology Co Ltd
Sichuan Lianzhong Supply
Accounts payable 135,001.58
Chain Service Co., Ltd.
Contractual liabilities (tax Luzhou Sanrenxuan Liquor
161,562.88
inclusive) Industry Co., Ltd.
Contractual liabilities (tax Sichuan Lianzhong Supply
150,721.78 35,798.45
inclusive) Chain Service Co., Ltd.
CTS Luzhou Laojiao Cultural
Contractual liabilities (tax
Tourism Development Co., 7,887,586.46 4,704,408.00
inclusive)
Ltd.
Luzhou Jiachuang Wine
Contractual liabilities (tax
Supply Chain Management 4,065,243.22
inclusive)
Co., Ltd.
Luzhou Jiachuang Wine
Other payables Supply Chain Management 1,500,000.00 1,500,000.00
Co., Ltd.
Luzhou Sanrenxuan Liquor
Other payables 150,000.00
Industry Co., Ltd.
Sichuan Lianzhong Supply
Other payables 1,684,148.00 2,384,148.00
Chain Service Co., Ltd.
Luzhou XingLu Property
Other payables 100,000.00
Management Co., Ltd.
Sichuan Kangrun Group
Other payables Construction and Installation 34,175.78 34,175.78
Engineering Co., Ltd.
Luzhou COSCO Lianzhong
Other payables 200,200.00 200,200.00
Logistics Co., Ltd.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
12. Commitments and contingencies
12.1. Contingencies
12.1.1. 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, among them:
The criminal case with saving deposits involving contract disputes in Agricultural Bank of China
Changsha Yingxin Sub-branch with amount of CNY 150 million was concluded, and the amount involved
in the case was ultimately determined to be CNY 149.425 million, which was executed by criminal case.
The Company applied to Hunan Province Higher People's Court for enforcement of the verdict. Hunan
Province Higher People's Court has filed the case and ruled that Hunan Changsha Intermediate
People’s Court should see to the execution of the verdict. As of 30 June 2021, CNY 20.3353 million was
recovered.
The Company has filed a lawsuit with Sichuan Higher People's Court about the saving deposits involving
contract disputes in Industrial and Commercial Bank of China Ltd. Nanyang Zhongzhou Sub-branch with
amount of 150 million. Sichuan Higher People's Court ruled that the case should be transferred to the
Henan Higher People's Court. Henan Higher People's Court considered that due to the involvement of
criminal cases, its trial should be based on the results of criminal case, and judged to suspend in 2015.
Now the case has been settled, and the case of civil action is reopened, which is under trial of Henan
Higher People's Court.
Another deposit in the Notice of Significant Events No. 2015-1 has been recovered a total of CNY
194.6198 million as of the period-end, and the residual amount is recovering actively.
The Company has recovered the abovementioned saving deposits involving contract disputes with CNY
214.9551 million, and the relevant progress will be announced subsequently.
Except for the above matters, the Company has no other significant contingencies that need to be
disclosed as the end of 30 June 2021.
13. Post balance sheet event
13.1. Significant non-adjustment matters
(1) According to the Company's Announcement on the Resolutions of the 26th Meeting of the 9th Board of
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Directors, in order to strengthen the linkage of shareholder resources and promote the sales of the
Company’s products, the Company has agreed that it will acquire 5% equity of Luzhou Sanrenxuan
Liquor Industry Co., Ltd. (hereinafter referred to as "Sanrenxuan Company") held by Beijing Longyu
Yixiang Sales Co., Ltd. with its own funds of CNY 542,400. Luzhou Laojiao Group Co., Ltd., the
Company's controlling shareholder, is a shareholder of Sanrenxuan Company and holds 30% of its
shares. Therefore, this equity acquisition constitutes a related transaction.
(2) According to the 14th announcement on the Company’s major litigation progress issued on 6 July
2021, upon compulsory enforcement by Changsha Intermediate People’s Court, both Changsha Kaifu
Sub-branch and Changsha Hongxing Sub-branch of Agricultural Bank of China have partially fulfilled the
liability for compensation determined by the civil judgment (paid partial compensation to Changsha
Intermediate People's Court), and the Company has received CNY 52,812,061.75 of execution payment
from Changsha Intermediate People's Court in early July 2021. The dispute over the savings deposit
contract between the Company and Nanyang Zhongzhou Sub-branch of Industrial and Commercial
Bank of China is still in the second instance of civil litigation. The Company has recovered a total of CNY
267,767,200 in dispute under three savings contracts.
13.2. Profit distribution
Monetary Unit: CNY
Profits or dividends planned to distribute 3,004,207,328.28
Reviewed and approved profits or dividends declared to 1
3,004,207,328.28
distribute
Note: 1. According to the resolutions of the annual shareholders' meeting, the Company distributed a
cash dividend of CNY 20.51 (tax inclusive) per 10 shares to all shareholders, which has been
implemented on 20 August 2021.
13.3. Statement for other post balance sheet events
(1) According to Announcement on the Resolutions of the 2 nd Meeting of the 10th Board of Directors of
Luzhou Laojiao Co., Ltd., "Proposal on Implementing Donations to Support Flood Prevention and
Disaster Relief in Henan Province" has been approved upon deliberation. The Company has decided to
donate CNY 30 million of cash to Henan Province Charity Association to support Henan Province's flood
prevention and disaster relief, post-disaster reconstruction, and local pandemic prevention and control in
the disaster area.
(2) On 29 January 2021, the 24th Meeting of the 9th Board of Directors of the Company reviewed and
approved the proposal on the cancellation of subsidiaries Chengdu Tianfu Panda Whitail Liquor Industry
Co., Ltd. According to business development circumstances, the Company decided to cancel the above
subsidiary, which will not have a significant impact on the Company's financial status and operating
results. The Company received the notice of approval of cancellation registration on 14 July 2021.
The Company has no other post balance sheet events that need to be disclosed as of 30 June 2021.
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14. Other important information
14.1. 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.
14.2. Segment information
14.2.1. If the Company has no reporting segment or cannot disclose total assets and total
liabilities of reporting segments, the reason should be disclosed.
Except for the business on wine sales, the Company does not operate other businesses that have a
significant impact on operation results. In addition, the Company operates mainly in one area, revenue
mainly from China and main assets also located in China, so the Company does not need to disclose
segment data.
14.3. Other significant events that can affect investors’ decision
(1) Saving deposits involving contract disputes
As stated in Note 12.2, three saving deposits involved contract disputes in Agricultural Bank of China
Changsha Yingxin Sub-branch, Industrial and Commercial Bank of China Nanyang Zhongzhou
Sub-branch and another bank, with a total amount of CNY 500 million. At present, the investigation of
related cases and the preservation of assets have been under way. The Company has initiated a civil
procedure to recover the loss from the responsible unit.
Based on the amount of assets preserved by the public security organization at present and professional
legal opinions issued by Beijing Weiheng (Chengdu) Law Firm on 10 March 2021, the Company has
made provision for bad debts on savings deposits involving contract disputes of CNY 200 million.
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Except for the above matter, the Company has no other significant events that can affect investors’
decision that need to be disclosed as of 30 June 2021.
15. Notes to the main Items of the financial statemen ts of parent
company (all currency unit is CNY, except other statements)
15.1. Accounts receivable
15.1.1. Analysis by categories
Monetary Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proportio Proportio value
Amount Amount Amount Amount
on on n n
Including:
Accounts
receivables tested 733,128. 100.00 732,303.
825.10 11.00% 3,927.50 100.00% 3,927.50
for impairment by 65 % 55
the portfolio
Including:
Accounts
receivables tested
for impairment on 733,128. 100.00 732,303.
825.10 11.00% 3,927.50 100.00% 3,927.50
the portfolio with 65 % 55
characteristics of
credit risk
733,128. 100.00 732,303.
Total 825.10 11.00% 3,927.50 100.00% 3,927.50
65 % 55
Accounts receivables tested for impairment by the portfolio:
Monetary Unit: CNY
Closing Balance
Item
Book balance Provision for bad debt Proportion
Risk portfolio 733,128.65 825.10 0.11%
Other portfolios
Total 733,128.65 825.10 --
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable.
Applicable √ N/A
Disclosure by aging
Monetary Unit: CNY
Aging Book balance
Within 1 year (including 1 year) 733,128.65
Total 733,128.65
15.1.2. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening
Type Reversal or Closing Balance
Balance Allowance Write-off Other
recovery
Accounts
receivables
tested for 825.10 825.10
impairment by
the portfolio
Total 825.10 825.10
15.1. 3. Top five entities with the largest balances of accounts receivable
Monetary Unit: CNY
Proportion to total closing
Closing Balance of provision
Company Name Closing Balance balance of accounts
for bad debt
receivable
Luzhou Pinchuang
709,970.93 96.84%
Technology Co., Ltd.
Luo Daichuan 20,305.32 1.57% 574.65
Chen Maolin 3,809.00 0.52% 190.45
Luzhou Laojiao Nostalgic
3,494.28 0.48%
Liquor Marketing Co., Ltd.
Sales Company of Luzhou
3,161.44 0.43%
Laojiao Co., Ltd.
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Total 740,740.97 99.84%
15.2. Other receivables
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividends receivable 36,941,917.50 1,407,900.00
Other receivables 9,312,029,052.07 7,051,341,794.83
Total 9,348,970,969.57 7,052,749,694.83
15.2.1. Interest receivable
15.2.1.1. Classification of interest receivable
Monetary Unit: CNY
Item Closing Balance Opening Balance
North Chemical Industries Co., Ltd 62,542.20
Guotai Junan Securities Co., Ltd. 6,595,118.32 1,407,900.00
Huaxi Securities Co., Ltd. 30,284,256.98
Total 36,941,917.50 1,407,900.00
15.2.2. Other receivables
15.2.2.1. Other receivables disclosed by nature
Monetary Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds of subsidiaries
9,219,801,499.66 6,957,047,554.34
receivable
Intercourse funds and others 7,646,238.43 9,599,994.92
Petty cash 507,942.93 393,142.93
Saving deposits involving contract
285,044,911.68 285,044,911.68
disputes
Total 9,513,000,592.70 7,252,085,603.87
15.2.2.2. Provision for bad and doubtful other receivables in the current period
Monetary Unit: CNY
Provision for bad debt First stage Second stage Third stage Total
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Expected credit Expected loss in the Expected loss in the
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
743,809.04 200,000,000.00 200,743,809.04
2021
Balance of 1 January
2021 in the current —— —— —— ——
period
Allowance of the
227,731.59 227,731.59
current period
Balance of 31
971,540.63 200,000,000.00 200,971,540.63
December 2020
Changes of carrying amount with significant amount changed of loss provision in the current period
Applicable √ N/A
Disclosure by aging
Monetary Unit: CNY
Aging Book balance
Within 1 year (including 1 year) 9,222,183,194.93
1-2 years 3,649,428.93
2-3 years 2,044,430.23
Over 3 years 285,123,538.61
Over 5 years 285,123,538.61
Total 9,513,000,592.70
15.2.2.3. Provision and recovery for bad and doubtful other receivables in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening
Type Reversal or Closing Balance
Balance Allowance Write-off Other
recovery
Other
receivables
tested for
200,000,000.00 200,000,000.00
impairment
individually
Note 1
Other 743,809.04 227,731.59 971,540.63
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
receivables
tested for
impairment by
the portfolio
Total 200,743,809.04 227,731.59 200,971,540.63
15.2.2.4. Top five entities with the largest balances of the other receivables
Monetary Unit: CNY
Provisioning
Proportion in total
Company Name Nature Closing Balance Aging amount at period
receivables
end
Luzhou Laojiao Internal
8,805,071,030.02 Within 1 year 92.56%
Brewing Co., Ltd. transactions
Agricultural Bank of
China Changsha
Yingxin Sub-branch,
Industrial and Saving deposits
Commercial Bank of involving contract 285,044,911.68 Over 5 years 3.00% 200,000,000.00
China Nanyang disputes
Zhongzhou
Sub-branch and
another bank.
Luzhou Laojiao
Internal
Electronic 167,247,557.78 Within 1 year 1.76%
transactions
Commerce Co., Ltd.
Luzhou Laojiao
Internal
Import and Export 149,824,476.65 Within 1 year 1.57%
transactions
Trade Co., Ltd.
Guangxi Luzhou
Laojiao Imported Internal
46,137,248.79 Within 1 year 0.48%
Liquor Industry Co., transactions
Ltd.
Total -- 9,453,325,224.92 -- 99.37% 200,000,000.00
15.3. Long-term equity investments
Monetary Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Investment in 3,413,960,128.1 3,413,960,128.1 3,413,960,128.1 3,413,960,128.1
subsidiary 1 1 1 1
Investment in
2,551,183,697.7 2,548,616,598.9 2,472,698,683.1 2,470,131,584.3
associates and 2,567,098.80 2,567,098.80
1 1 6 6
joint venture
5,965,143,825.8 5,962,576,727.0 5,886,658,811.2 5,884,091,712.4
Total 2,567,098.80 2,567,098.80
2 2 7 7
15.3.1. Investment in subsidiary
Monetary Unit: CNY
Changes in current period Closing
Opening Closing
balance of
Investee Balance Provision for Balance
Increase Decrease Other provision for
(book value) impairment (book value)
impairment
Luzhou
Pinchuang 57,649,100.0
57,649,100.00
Technology 0
Co., Ltd.
Sales
Company of
103,162,447. 103,162,447.0
Luzhou
09 9
Laojiao Co.,
Ltd.
Luzhou
Laojiao 3,172,109,99 3,172,109,991
Brewing Co., 1.25 .25
Ltd.
Luzhou
Laojiao
International
5,433,789.77 5,433,789.77
Development
(Hong Kong)
Co., Ltd.
Luzhou
Laojiao
51,604,800.0
Electronic 51,604,800.00
0
Commerce
Co., Ltd.
Luzhou 20,000,000.0
20,000,000.00
Baonuo 0
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Biotechnology
Co., Ltd.
Luzhou
Laojiao
Tourism 4,000,000.00 4,000,000.00
Culture Co.,
Ltd.
Luzhou
Laojiao Health 1
0.00 0.00
Liquor Industry
Co., Ltd. Note
3,413,960,12 3,413,960,128
Total
8.11 .11
Note: 1. The Company obtained 100% of equity in Health Liquor Industry by the business combination
under the same control. The net assets of Health Liquor Industry were negative on the M&A date, and
the book cost of long-term equity investment was limited to 0 by the Company.
15.3.2. Investment in associate and joint venture
Monetary Unit: CNY
Changes in current period Closing
Gain or Adjustm Balance
Opening Closing
loss ents of Cash Provision of
Balance Changes Balance
Investee Decreas recogniz other divided for provision
(book Increase in other Other (book
e ed under compreh or profit impairme for
value) equity value)
equity ensive declared nt impairme
method income nt
1. Joint Venture
2. Associate
Huaxi
Securitie 2,383,55 101,879, 3,634,68 30,284,2 2,458,78 2,567,09
s Co., 0,372.50 949.05 7.85 56.98 0,752.42 8.80
Ltd.
Sichuan
Develop
ment
6,854,47 -985,886 5,868,58
Wine
1.67 .58 5.09
Investme
nt Co.,
Ltd.
CTS 79,726,7 4,240,52 83,967,2
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Luzhou 40.19 1.21 61.40
Laojiao
Cultural
Tourism
Develop
ment
Co., Ltd.
2,470,13 105,134, 3,634,68 30,284,2 2,548,61 2,567,09
Subtotal
1,584.36 583.68 7.85 56.98 6,598.91 8.80
2,470,13 105,134, 3,634,68 30,284,2 2,548,61 2,567,09
Total
1,584.36 583.68 7.85 56.98 6,598.91 8.80
15.4. Operating revenue and cost of sales
Monetary Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 2,646,531,785.60 1,928,435,115.76 1,486,572,539.81 1,040,786,248.30
Other business 30,959,887.70 491,858.13 16,349,153.58
Total 2,677,491,673.30 1,928,926,973.89 1,502,921,693.39 1,040,786,248.30
15.5. Investment income
Monetary Unit: CNY
Item Current Period Previous Period
Investment income from long-term equity
105,134,583.68 94,958,932.04
investments under equity method
Dividends income gained during the
period of holding other equity instrument 6,657,660.52 9,379,824.36
investment
Total 111,792,244.20 104,338,756.40
16. Supplementary information
16.1. Detailed statement of non-recurring gains and losses in the current period (+
for gain, - for loss)
√ Applicable N/A
Monetary Unit: CNY
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2021 Interim Report of Luzhou Laojiao Co., Ltd.
Item Amount Note
Gain or loss from disposal of non-current
assets (including the write-off portion of 180,849.31 See "Note 5.42" for details.
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 7,226,821.19 See "Note 5.39" for details.
Company and given at a fixed amount or
quantity in accordance with the national
uniform standards)
Other non-operating income and
expenditure except above-mentioned 17,427,895.75 See "Note 5.43, 5.44" for details.
items
Less: Corporate income tax 6,139,307.70
Minority interests (after tax) 1,029,669.18
Total 17,666,589.37 --
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the
definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public-Non-Recurring Gains and Losses, or classifies any non-recurring gain/loss
item mentioned in the said explanatory announcement as a recurring gain/loss item.
Applicable √ N/A
16.2. Return on equity and earnings per share
EPS (CNY/Share)
Profit during reporting period Weighted average ROE
Basic EPS Diluted EPS
Net profits attributable to
ordinary shareholders of the 16.78% 2.89 2.89
Company
Net profits attributable to
ordinary shareholders of the
16.71% 2.87 2.87
Company before non-recurring
gains and losses
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