Wuliangye Yibin Co., Ltd.
Interim Report 2024
Chairman of the Board: Zeng Congqin
29 August 2024
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part I Important Notes, Table of Contents and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the
directors, supervisors and senior management of Wuliangye Yibin Co., Ltd. (hereinafter referred
to as the “Company”) hereby guarantee that the contents of this Report are true, accurate and
complete and free of any misrepresentations, misleading statements or material omissions, and
collectively and individually accept legal responsibility for such contents.
2. Zeng Congqin, the Company’s legal representative, Zhang Xin, the Company’s Chief
Financial Officer, and Liu Hongxu, head of the Company’s accounting department, hereby
guarantee that the financial statements carried in this Report are true, accurate and complete.
3. Eleven directors were supposed to attend the board meeting for the review of this Report.
Nine of them were present at the meeting in person while Mr. Jiang Wenge and Mr. Xie Zhihua
voted by way of telecommunication for they were unable to be present due to work reasons.
4. The Company has no interim dividend plan, either in the form of cash or bonus issue.
5. This Report has been prepared in Chinese and translated into English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 6
Part III Management Discussion and Analysis ............................................................................... 9
Part IV Corporate Governance ...................................................................................................... 22
Part V Environmental and Social Responsibility .......................................................................... 24
Part VI Significant Events ............................................................................................................... 28
Part VII Share Changes and Shareholder Information ............................................................... 33
Part VIII Preference Shares ............................................................................................................ 37
Part IX Bonds ................................................................................................................................... 37
Part X Financial Statements ........................................................................................................... 38
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Documents Available for Reference
The following documents are available for shareholders at the Company’s Board Office:
1. The financial statements that have been signed and stamped by the legal representative,
the Chief Financial Officer, and the head of the accounting department.
2. All the Company’s documents and announcements that were disclosed on China Securities
Journal, Shanghai Securities News and Securities Times during the Reporting Period.
3. The 2024 Interim Report of the Company.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Definitions
Term refers to Definitions
The “Company”, “Wuliangye”,
refers to Wuliangye Yibin Co., Ltd.
“WLY”, or “we”
Yibin Development Group refers to Yibin Development Holding Group Co., Ltd.
Wuliangye Group refers to Sichuan Yibin Wuliangye Group Co., Ltd.
Wuliang NongXiang Company refers to Sichuan Wuliangye NongXiang Baijiu Co., Ltd.
Push Group refers to Sichuan Yibin Push Group Co., Ltd.
Global Group refers to Sichuan Yibin Global Group Co., Ltd.
Anji Logistic Group refers to Anji Logistic Group Co., Ltd. Sichuan
Wuliangye Group Finance refers to Sichuan Yibin Wuliangye Group Finance Co., Ltd.
Creart refers to Yibin Wuliangye Creart Co., Ltd.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Wuliangye Stock code 000858
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 宜宾五粮液股份有限公司
Abbr. (if any) 五粮液
Company name in English (if
WULIANGYE YIBIN CO.,LTD.
any)
Abbr. (if any) WLY
Legal representative Zeng Congqin
II Contact Information
Board Secretary Securities Representative
Name Zhang Xin Huang Hui
150 Minjiang West Road, Cuiping 150 Minjiang West Road, Cuiping
Office address District, Yibin City, Sichuan Province, District, Yibin City, Sichuan Province,
China China
Tel. （0831）3567000 （0831）3567000
Fax （0831）3555958 （0831）3555958
Email address 000858-wly@sohu.com 000858-wly@sohu.com
III Other Information
1. Contact Information of the Company
Indicate whether any change occurred to the registered address, office address and their zip codes, website
address, email address and other contact information of the Company in the Reporting Period.
□ Applicable Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2023
Annual Report.
2. Media for Information Disclosure and Place where this Report Is Lodged
Indicate whether any change occurred to the information disclosure media and the place for lodging the
Company’s periodic reports in the Reporting Period.
□ Applicable Not applicable
The website of the stock exchange, the media and other website where the Company’s periodic reports
are disclosed, as well as the place for lodging such reports did not change in the Reporting Period. The said
information can be found in the 2023 Annual Report.
3. Other Information
Indicate whether any change occurred to other information in the Reporting Period.
□ Applicable Not applicable
IV Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
□ Yes No
H1 2024 H1 2023 Change (%)
Operating revenue (RMB) 50,648,026,578.65 45,506,384,818.37 11.30%
Net profit attributable to the listed
19,056,829,528.87 17,036,708,791.18 11.86%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 18,938,813,683.76 16,941,269,701.10 11.79%
exceptional gains and losses (RMB)
Net cash generated from/used in
13,427,928,655.63 11,329,818,886.30 18.52%
operating activities (RMB)
Basic earnings per share (RMB/share) 4.910 4.389 11.87%
Diluted earnings per share (RMB/share) 4.910 4.389 11.87%
Down by 0.49
Weighted average return on equity (%) 13.70% 14.19%
percentage point
30 June 2024 31 December 2023 Change (%)
Total assets (RMB) 185,984,511,884.61 165,432,981,684.75 12.42%
Equity attributable to the listed
130,487,961,186.03 129,558,241,040.51 0.72%
company’s shareholders (RMB)
V Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No difference for the Reporting Period.
VI Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance
-4,657,535.12
write-offs)
Government grants recognised in profit or loss (exclusive of those that are
closely related to the Company's normal business operations and given in
163,594,119.28
accordance with defined criteria and in compliance with government policies,
and have a continuing impact on the Company's profit or loss)
Capital occupation charges on non-financial enterprises that are recognized in
426,869.99
profit or loss
Non-operating income and expense other than the above 6,080,605.56
Less: Income tax effects 41,341,400.04
Non-controlling interests effects (net of tax) 6,086,814.56
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Total 118,015,845.11
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
No such cases for the Reporting Period.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part III Management Discussion and Analysis
I Principal Operations of the Company during the Reporting Period
The Company is principally engaged in Baijiu production and sales. According to the Guidelines for the
Industry Classification of Listed Companies issued by the China Securities Regulatory Commission, the Baijiu
industry falls into the category of the "liquor & wine, beverage, and refined tea production industry" (C15). No
change occurred to the principal operations of the Company during the Reporting Period. "Wuliangye", the
primary product of the Company, is a classic strong-flavour Chinese Baijiu, as well as a “Geographical
Indication of P.R. China” product. It is one of the first Chinese Geographical Indication products under the
protection of the European Union. Additionally, the Company has developed, based on different production
techniques and market needs, Wuliang NongXiang Baijiu products such as Wuliang Chun (Spring), Wuliang
Chun (Rich Flavour), Wuliang Tetouqu, and Mianrou Jianzhuang with complete categories and unique tastes to
meet the diverse needs of different consumers in pursuit of a better life.
The Company is subject to the disclosure requirements for the food and wine & liquor production industry
in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
1. Brand Operation
(1) Wuliangye-branded Baijiu Products
In the first half of 2024, the Company adhered to the general principle of “seeking progress in stability,
maintaining stability with progress, improving quality and efficiency, and making more contributions” and the
marketing principle of “boosting sell-through, stabilising prices, improving cost-effectiveness, and transforming
working styles”. As a result, it successfully achieved more than half of the annual targets for revenue and net
profit.
Firstly, the operation of three major products delivered new results. Specifically, the 8th-generation
Wuliangye saw steady increases in both price and sell-through. Since the Chinese New Year, Wuliangye-
branded Baijiu products have shown a stable, upward trend. For Wuliangye 1618 and Wuliangye (39% vol), a
combination of “banquet events + red pocket QR code + point of sale terminals ranking” drove increases in both
sell-through and banquet events.
Secondly, progress was made in channel development. The Company worked on market expansion by
focusing on the channel ecosystem and firmly supported its distributors in optimisation and enhancement. It
pushed ahead with the “Three Stores, One House” project, completed the 5th-generation storefront upgrade for
634 exclusive stores and the construction of 639 “Wuliang NongXiangA World of Harmony” comprehensive
stores. Also, it redoubled efforts at banquet events to seize business opportunities, serving nearly three million
consumers through these events.
Finally, brand promotion was carried forward to shape a new image. In terms of branding, the
Company has maintained high visibility through frequent hits. Specifically, the Company, once again, partnered
with China Central Television (“CCTV”) to exclusively sponsor the “Harmony Gifts” lucky draw during the
Spring Festival Gala. It also launched the “Happy Chinese New Year” marketing event. In May, the 3rd
Wuliangye Harmony Cultural Festival kicked off, highlighted by the 520 Wuliangye Rose Wedding Ceremony.
The Company also collaborated with Hunan TV to sponsor “Singer 2024”, a Chinese singing competition show,
sustaining a high-quality branding trend that ensured “daily buzz and monthly hits”.
(2) Wuliang NongXiang Baijiu products
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
In the first half of 2024, Wuliang NongXiang Company persevered in “innovation with integrity while
expanding territories, and making more contributions”. Focusing on key tasks such as product sell-through,
market segmentation and hierarchy construction, the revaluation of brand, brand culture promotion, and market
foundation consolidation, the Company made steady progress with hard work and determination.
Firstly, product sell-through saw rapid growth. Seizing opportunities during peak seasons such as the
Chinese New Year and the Dragon Boat Festival, the Company launched events such as “Get into the Festive
Spirit, Scan and Win More Prizes”, with the daily average participants in the “crack a bottle, scan the code, and
win a prize” activities increasing by more than 70% year on year.
Secondly, the channel structure continued to improve. The market segmentation and hierarchy
construction moved forward in an orderly manner, showing strong growth in key markets. Efforts to enhance
retail development resulted in greater quality and efficiency, while channel control was steadily strengthened. E-
commerce, key accounts (“KAs”), and exclusive channels developed in tandem, further reinforcing the market
foundation.
Thirdly, the rejuvenation of brand value has borne fruit. Guided by a market management system that
integrates monitoring, early warning, inspection, handling, and accountability, the Company launched the value
rejuvenation campaign for proprietary brands, leading to a steady rise in the prices of main products.
Finally, cultural promotion has become more targeted. The Company continued to develop its “Get into
the Festive Spirit” IP, hosting targeted brand events such as “A Date with Spring” for Wuliang Chun (Spring),
“Add a Touch of Fragrance to Every Moment” for Wuliang Chun (Rich Flavour). It also sponsored the “2024
China Cup International City Orienteering Tour Match” through the brand “Wuliang Tetouqu”, and rolled out
the event “A Tribute to Every Act of Perseverance” for the brand “Jianzhuang”. These events have steadily
boosted the brand image.
2. Major Sales Models of the Company
Distribution model: This includes the traditional channel operator model, KA marketplace, etc., mainly
sold offline.
Direct-to-consumer model: This includes the group purchase model, where products are sold directly to
groups of consumers, the exclusive store model for the retail end and consumer groups, and the online sales
model, where products are sold through e-commerce platforms such as Tmall and JD.
3. Distribution Model
Applicable □ Not applicable
(1) Operating Revenues, Costs of Sales and Gross Profit Margins of Different Sales Models and Product
Categories
Unit: RMB
YoY change in
Gross profit YoY change in YoY change in
Item Operating revenue Cost of sales gross profit
margin operating revenue cost of sales
margin
By sales model
Liquor products 47,110,718,721.26 8,203,080,533.11 82.59% 12.46% 12.63% -0.02%
Of which: Distribution
27,593,788,277.69 5,601,755,361.78 79.70% 13.51% 12.46% 0.19%
model
Direct-to-
19,516,930,443.57 2,601,325,171.33 86.67% 11.01% 12.98% -0.23%
consumer model
By product category
Liquor products 47,110,718,721.26 8,203,080,533.11 82.59% 12.46% 12.63% -0.02%
Of which: Wuliangye-
39,205,013,434.81 5,217,061,192.72 86.69% 11.45% 12.39% -0.11%
branded Baijiu
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
products
Other
7,905,705,286.45 2,986,019,340.39 62.23% 17.77% 13.04% 1.58%
liquor products
(2) Number of Distributors
Number of distributors of
Region Wuliangye-branded Baijiu YoY change (number) Reason for change (more than 30%)
products
East China 760 67
South China 445 7
West China 441 -7
N/A
North China 355 16
Central China 529 15
Subtotal 2,530 98
Number of distributors of
Region Wuliang NongXiang Baijiu YoY change (number) Reason for change (more than 30%)
products
Wuliang NongXiang Company promoted
intensive market development and implemented
China 950 268
a flat marketing system in markets where it had
no or a weak presence.
Total 3,480 366
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiang
Baijiu products.
(3) Main Settlement and Dealing Methods with Customers
A distribution model is mainly used, with a "payment before delivery" settlement method. In the Reporting
Period, the total sales revenue from the top five customers reached RMB10.698 billion, accounting for 21.12% of
the total sales revenue.
4. Retail Store Sales Accounting for More Than 10% of Total Sales
Applicable □ Not applicable
Number of exclusive stores
Number of exclusive stores at Reason for change (more than
Region at the beginning of the
the end of the Reporting Period 30%)
Reporting Period
East China 475 513
South China 285 299
West China 280 279
N/A
North China 244 255
Central China 378 403
Total 1662 1749
5. Online Direct-to-consumer Sales
Applicable □ Not applicable
Product category Platform
Wuliangye-branded Baijiu products:
The 8th-generation Wuliangye Tmall, JD, and WeChat
Other liquor products:
Wuliang Chun (Spring), Wuliang Chun (Rich Flavour),
Tmall, JD, and WeChat
Wuliang Tequ, and Jianzhuang
Indicate whether any of the major products that accounted for more than 10% of the total operating
revenue in the current period saw a 30% or greater change in its selling price compared to the prior reporting
period.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
□ Applicable Not applicable
6. Purchase Model and Purchased Items
Unit: RMB
Purchase model Purchased items Amount
Market-based purchase Raw materials and auxiliary materials, etc. 5,067,587,907.82
Market-based purchase Packaging materials 1,127,156,534.06
Market-based purchase Energy 348,266,345.32
Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30%
of the total purchase amount.
□ Applicable Not applicable
Indicate whether the price of any of the major raw materials purchased externally changed by more than 30%
year-on-year.
□ Applicable Not applicable
7. Main Production Models
The Company's Baijiu products are all produced by itself.
Commissioned processing and production:
□ Applicable Not applicable
8. Breakdown of Cost of Sales
Unit: RMB
H1 2024 H1 2023
Operating Change in
Item As % of total cost of As % of total cost of
division Cost of sales Cost of sales percentage
sales (%) sales (%)
Raw materials 6,367,500,886.67 55.53% 5,616,897,534.41 53.15% 2.38%
Labour cost 3,355,054,459.35 29.26% 3,368,194,710.33 31.87% -2.61%
Manufacturing
Energy 666,410,145.73 5.81% 644,974,323.73 6.10% -0.29%
Production
1,077,173,015.45 9.39% 937,893,776.30 8.87% 0.52%
cost
9. Production Volume and Inventory
(1) Production Volume, Sales Volume and Inventory of Major Products
Opening inventory (ton) Production volume (ton) Sales volume (ton) Closing inventory (ton)
Product
H1 2024 YoY change H1 2024 YoY change H1 2024 YoY change H1 2024 YoY change
Wuliangye-
branded Baijiu 4,437 49.85% (note 2) 22,910 10.74% 24,194 12.07% 3,153 52.91% (note 2)
products
Other liquor
43,885 115.47% (note 2) 47,860 -35.16% (note 3) 54,156 -23.86% 37,589 63.05% (note 2)
products
Total 48,322 107.14% 70,770 -25.12% 78,350 -15.50% 40,742 62.22%
Note 1: The liquor referred to in the table above is all commercial liquor.
Note 2: Mainly because the Company’s primary products performed well in terms of sell-through, and the
Company actively stocked up for sales in the Spring Festival, leading to a higher opening inventory base; and
due to a larger business size, the Company took the initiative to increase the stock of liquor products, resulting
in an increase in the closing inventory.
Note 3: Mainly because Wuliang NongXiang Company continued to concentrate more on medium to high
priced products, resulting in decreased production and sales volumes of low priced products.
(2) Finished Liquor and Semi-finished Liquor (Including Base Liquor)
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Category Inventory (ton)
Finished liquor 40,742
Semi-finished liquor (including base liquor in pottery jars) 180,940
(3) Designed, Actual and In-progress Production Capacity of Major Products by Production Entities
Actual production capacity in the
Designed production Production capacity in progress
Major product first half of the year (’0,000
capacity (’0,000 tons) (’0,000 tons)
tons)
Liquor 17.5627 7.8024 6
Note: The liquor in the table above includes Baijiu and base liquor.
II Core Competitiveness Analysis
The Company possesses five major competitive edges: the regions of production, ancient fermentation pit
clusters, high product quality, a strong brand presence, and a broad consumer base. During the Reporting Period,
the Company's core competitiveness continued to strengthen.
The first is the geographical competitiveness. The Yibin region of production, where the Company is
situated, boasts a uniquely favourable natural ecological distilling environment of "water, soil, air, climate, and
biology". It has been recognised by United Nations Educational, Scientific and Cultural Organization
(UNESCO) and Food and Agricultural Organization (FAO) as "the most suitable region in the same latitude for
producing high-quality, pure distilled Baijiu", making it one of the world's top ten regions of production of
spirits. In 2023, it was awarded the title of "China's Wuliang NongXiang Core Region of Production".
The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pit
clusters of the Yuan and Ming dynasties, represented by Changfasheng and Lichuanyong, are the earliest and
largest cave-type ancient fermentation pits in China with uninterrupted production. These clusters were certified
as a “National Industrial Heritage” of China in 2018 and have a scarcity value that is unrepeatable and non-
reproducible.
High product quality represents the third competitive edge. Wuliangye possesses the unique "1366"
traditional production technique that has been identified as a national intangible cultural heritage. It has as many
as 12 Chinese Baijiu Masters/Chinese Distilling Masters/Chinese Baijiu Technique Masters. Zhao Dong, the
Company’s General Technical Consultant, was selected as one of the sixth batch of representative bearers of
national intangible cultural heritages. A through-life quality management model "from seed to liquor" has been
established. In China, Wuliangye is the only Baijiu producer with four "National Quality Awards" and the only
Baijiu producer that was nominated for the 5th China Quality Awards. During the Reporting Period, in
collaboration with the research team led by Jiang Lei, an academician with the Chinese Academy of Sciences
(“CAS”), the Company uncovered the optimal range of alcohol by volume for Baijiu products in the
prestigious international journal Matter. This paper, the first of its kind, proved that Wuliangye of different
alcohol volumes and relevant series of products all fall within this optimal range. This paper has been the
highest-impact research paper in China's Baijiu industry to date. Additionally, the Company came first and
fourth at the 2nd China Baijiu NongXiang Liquor Body Design Competition.
The fourth is a strong brand presence. Wuliangye's brand culture has profound historical roots with a
history of over a thousand years, beginning in the Tang dynasty, emerging in the Song dynasty, refined in the
Yuan dynasty, becoming famous in the Ming dynasty, and establishing the brand name in the Qing dynasty. It
possesses a unique “Harmonious Culture”, an ancient fermentation pit culture, and a rich poetic and Baijiu
tradition. The advocacy of a harmonious culture of “harmonious common prosperity” continues to be
prominently displayed. During the Reporting Period, Wuliangye innovatively released the “Research Report on
Harmony” to further clarify the value connotation of its “Harmonious Culture”. Its brand value has maintained
double-digit growth for seven consecutive years, reaching RMB449.872 billion and ranking 15th on the list of
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
“2024 China's 500 Most Valuable Brands”. In terms of brand strength index, Wuliangye received the highest
global AAA+ rating again, ranking first among Baijiu brands. Additionally, it has been awarded the “Foreigners’
Most Favourite Chinese Brands” for three years in a row.
Finally, a broad consumer base. Strong-flavoured Baijiu is the Baijiu category with the highest market
share and the largest consumer base. Being famous worldwide for its unique style of "lasting aroma, mellow,
pleasant and smooth taste, and harmonious, well-balanced and comprehensive flavours", Wuliangye has a wide
and solid consumer base. Notably, the industry's pioneering low-alcohol Baijiu possesses a unique competitive
advantage in cultivating a young consumer demographic. During the Reporting Period, Wuliangye (39% vol)
experienced a strong consumer demand, while the popularity of Propitious Purple Wuliangye among specific
consumer groups continued to grow. Furthermore, the Year of the Loong Baijiu became a highly sought-after
product.
III Analysis of Principal Operations
Overview: please refer to the contents under the heading “I Principal Operations of the Company during
the Reporting Period” above.
1. Year-on-year Changes in Key Financial Data
Unit: RMB
Main
H1 2024 H1 2023 Change (%) reason for
change
Operating revenue 50,648,026,578.65 45,506,384,818.37 11.30%
Cost of sales 11,466,138,507.20 10,567,960,344.77 8.50%
Selling expense 5,366,342,173.42 4,320,445,619.61 24.21%
Administrative expense 1,738,561,638.52 1,756,898,762.85 -1.04%
Finance costs -1,400,855,109.46 -1,250,071,396.41 N/A
Income tax expense 6,563,541,257.72 5,879,733,314.24 11.63%
Research and development expense 159,760,941.28 135,677,515.04 17.75%
Net cash generated from/used in
13,427,928,655.63 11,329,818,886.30 18.52%
operating activities
Net cash generated from/used in
-1,069,383,823.78 -1,344,448,683.36 N/A
investing activities
Net cash generated from/used in
-157,849,148.32 -10,807,912,902.24 N/A Note
financing activities
Net increase in cash and cash
12,200,695,683.53 -822,542,699.30 N/A Note
equivalents
Note: Mainly because the Company’s 2023 final dividend plan was implemented in this July.
Indicate whether any significant change occurred to the profit structure or sources of the Company in the
Reporting Period.
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Breakdown of Operating Revenue
Unit: RMB
H1 2024 H1 2023
As % of total As % of Change (%)
Operating revenue operating Operating revenue total
revenue (%) operating
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
revenue (%)
Total 50,648,026,578.65 100% 45,506,384,818.37 100% 11.30%
By operating division
Manufacturing 50,648,026,578.65 100.00% 45,506,384,818.37 100.00% 11.30%
By product category
Liquor products 47,110,718,721.26 93.02% 41,891,531,380.50 92.06% 12.46%
Plastic products 1,981,033,159.97 3.91% 1,630,576,660.51 3.58% 21.49%
Printing 50,553,920.22 0.10% 74,747,681.17 0.16% -32.37% (note)
Glass bottles 48,683,476.63 0.10% 59,030,590.99 0.13% -17.53%
Others 1,457,037,300.57 2.88% 1,850,498,505.20 4.07% -21.26%
By operating segment
Liquor products 47,110,718,721.26 93.02% 41,891,531,380.50 92.06% 12.46%
Of which: East
13,552,135,672.17 26.76% 11,713,625,680.73 25.74% 15.70%
China
South China 3,496,256,070.40 6.90% 3,516,633,542.62 7.73% -0.58%
West China 16,758,820,769.19 33.09% 14,365,783,554.45 31.57% 16.66%
North China 4,841,310,361.21 9.56% 4,475,867,727.32 9.84% 8.16%
Central China 8,462,195,848.29 16.71% 7,819,620,875.38 17.18% 8.22%
Non-liquor
3,537,307,857.39 6.98% 3,614,853,437.87 7.94% -2.15%
products
Note: Mainly because the presswork was affected by the market environment and product iteration.
3. Operating Division, Product Category, or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
Applicable □ Not applicable
Unit: RMB
YoY change
Gross YoY change YoY change
in gross
Operating revenue Cost of sales profit in operating in cost of
profit
margin revenue (%) sales (%)
margin (%)
By operating division
Manufacturing
47,110,718,721.26 8,203,080,533.11 82.59% 12.46% 12.63% -0.02%
(liquor production)
By product category
Liquor products 47,110,718,721.26 8,203,080,533.11 82.59% 12.46% 12.63% -0.02%
Of which:
Wuliangye-branded 39,205,013,434.81 5,217,061,192.72 86.69% 11.45% 12.39% -0.11%
Baijiu products
Other liquor
7,905,705,286.45 2,986,019,340.39 62.23% 17.77% 13.04% 1.58%
products
By operating segment
Liquor products 47,110,718,721.26 8,203,080,533.11 82.59% 12.46% 12.63% -0.02%
Of which: East
13,552,135,672.17 2,059,657,459.06 84.80% 15.70% 14.63% 0.14%
China
South China 3,496,256,070.40 488,121,708.11 86.04% -0.58% 4.21% -0.64%
West China 16,758,820,769.19 3,728,672,761.25 77.75% 16.66% 14.75% 0.37%
North China 4,841,310,361.21 668,971,370.38 86.18% 8.16% 8.81% -0.08%
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Central
8,462,195,848.29 1,257,657,234.31 85.14% 8.22% 8.97% -0.10%
China
Data of principal operations for the prior period adjusted according to the changed methods of
measurement that occurred in the Reporting Period (if any):
□ Applicable Not applicable
The Company is subject to the disclosure requirements for the food and wine & liquor production industry
in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
4. Breakdown of Selling Expense
Unit: RMB
H1 2024 H1 2023
Reason for
Item As % of selling As % of selling Change (%)
Amount Amount change
expense expense
Image promotion
932,275,200.41 17.37% 759,134,414.08 17.57% 22.81%
expense
Sales promotion
3,440,601,772.58 64.11% 2,612,938,992.07 60.48% 31.68% Note
expense
Warehousing
and logistics 272,408,237.24 5.08% 268,515,233.60 6.21% 1.45%
expense
Labor cost 455,092,791.02 8.48% 459,063,335.23 10.63% -0.86%
Other expenses 265,964,172.17 4.96% 220,793,644.63 5.11% 20.46%
Total 5,366,342,173.42 4,320,445,619.61 24.21%
Note: The Company's sales promotion expense covered three major categories: channel development, team
development and customer development. In order to further boost the confidence of merchants, the Company
increased its marketing investment.
5. Advertising Expense
During the Reporting Period, the Company’s primary advertising means included TV, broadcasting, Internet,
outdoor ads and exhibitions. The expenses on online, offline and TV ads were RMB128 million, RMB548 million
and RMB256 million, respectively.
IV Analysis of Non-Core Businesses
□ Applicable Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2024 31 December 2023 Reason
Change in for any
Item As % of total As % of total percentag significa
Amount Amount e (%) nt
assets assets
change
Monetary
128,714,842,080.74 69.21% 115,456,300,910.64 69.79% -0.58%
assets
Accounts
84,118,689.50 0.05% 42,647,461.48 0.03% 0.02%
receivable
Inventories 16,847,018,906.97 9.06% 17,387,841,712.87 10.51% -1.45%
Long-term 2,028,290,932.39 1.09% 2,020,366,240.69 1.22% -0.13%
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
equity
investments
Fixed assets 5,144,267,933.32 2.77% 5,189,917,302.17 3.14% -0.37%
Construction
6,809,490,371.99 3.66% 5,623,356,422.20 3.40% 0.26%
in progress
Right-of-use
980,047,470.78 0.53% 126,810,315.49 0.08% 0.45%
assets
Contract
8,157,503,632.65 4.39% 6,864,383,635.25 4.15% 0.24%
liabilities
Lease
646,160,709.88 0.35% 115,722,608.68 0.07% 0.28%
liabilities
2. Major Assets Overseas
□ Applicable Not applicable
3. Assets and Liabilities Measured at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/l
Impair Purc
oss on Sold
Cumulativ ment hase
fair- in
e fair- allowa d in
value the
value nce for the
Item Opening amount change curr Other changes Closing amount
changes the curr
s in ent
recognized curren ent
the peri
in equity t peri
current od
period od
period
Financial assets
1. Held-for-trading
financial assets (exclusive
of derivative financial
assets)
2. Derivative financial
assets
3. Other debt investments
4. Other equity
investments
5. Other non-current
1,200,000.00 1,200,000.00
financial assets
6. Receivables financing 14,086,450,565.79 5,489,979,940.11 19,576,430,505.90
Subtotal of financial
14,087,650,565.79 5,489,979,940.11 19,577,630,505.90
assets
Investment property
Productive living assets
Other
Total of the above 14,087,650,565.79 5,489,979,940.11 19,577,630,505.90
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Financial liabilities
Contents of other changes:
The Company classified the portion of bank acceptance bills received that were to be endorsed or
discounted as receivables financing, and other changes during the current period represented the net amount
recognized and utilized during the current period.
Indicate whether any significant change occurred to the measurement attributes of the major assets in the
Reporting Period.
□ Yes No
4. Restricted Assets as at the Period-end
Unit: RMB
Item Closing carrying amount Reason for restriction
Security deposits for bank acceptance bills, other security deposits, and the balance
Monetary assets 234,648,885.56 in the securities trading account with the Yibin Business Department of Essence
Securities
Total 234,648,885.56
VI Investment Analysis
1. Total Investment Amount
□ Applicable Not applicable
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable Not applicable
3. Significant Ongoing Non-Equity Investments in the Reporting Period
□ Applicable Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
□ Applicable Not applicable
No such cases in the Reporting Period.
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable Not applicable
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
VIII Principal Subsidiaries and Joint Stock Companies
Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Relationship
Principal
Name with the Registered capital Total assets Equity
activities
Company
Yibin Wuliangye Liquor Sales Co., Sale of liquor,
Subsidiary 200,000,000.00 68,041,092,862.64 46,504,177,947.58
Ltd. etc.
Unit: RMB
Relationshi
Principal
Name p with the Operating revenue Operating profit Net profit
activities
Company
Yibin Wuliangye Liquor Sales Co., Sale of liquor,
Subsidiary 38,924,211,000.09 16,616,194,521.42 12,460,145,152.08
Ltd. etc.
Subsidiaries acquired or disposed of in the Reporting Period:
□ Applicable Not applicable
IX Structured Entities Controlled by the Company
□ Applicable Not applicable
X Risks Facing the Company and Countermeasures
Firstly, there may be uncertainties in the environment at home and abroad; secondly, valid demand may not
be recovering in an expected pace; and finally, competition in the industry, especially among the top players,
may be increasingly intense. In response, the Company will adhere to its strategic focus, implement the “135”
strategy in depth, and continue to strengthen its five major competitive edges. With ecological development as
the big picture, quality as the key, culture as the foundation, digital transformation as the driver and sound
corporate governance as the support, the Company will strive for sustainable, solid and high-quality
development.
XI Implementation of the Action Plan for "Dual Enhancement of Development Quality and
Investor Returns"
Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Development
Quality and Investor Returns”.
Yes □ No
In order to comprehensively implement the guiding principles of the Political Bureau meeting on
"activating the capital market and boosting investor confidence" and the State Council Executive Meeting on
"vigorously enhancing the quality and investment value of listed companies, adopting more effective measures,
focusing on stabilizing the market and confidence", the Company disclosed the Action Plan for "Dual
Enhancement of Development Quality and Investor Returns" (Announcement No.: 2024/No. 002) on 7 March
2024. The implementation of the action plan is as follows.
(I) Strengthen development and strive to accelerate the journey to become a world-leading
enterprise
Firstly, the Company has maintained steady and robust growth in operating performance. The
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Company adhered to the working principles of "seeking progress in stability, maintaining stability with progress,
improving quality and efficiency, and making more contributions", solidly carried out its work, and took
scientific actions, achieving new heights in corporate development. In the first half of 2024, the Company
achieved operating revenue of RMB50.648 billion, an increase of 11.30% year on year; and the net profit
attributable to its shareholders was RMB19.057 billion, an increase of 11.86% year on year. The Company
maintained steady growth in operating performance.
Secondly, the driving force for innovative development continued to strengthen. The Company further
promoted supply-side structural innovation with liquor body innovation and production technique innovation as
the core. It launched Wuliangye (45% vol) and Wuliangye (68% vol), as well as the full range of Classic
Wuliangye (10%, 20%, 30% and 50% vol), making every effort to create new growth drivers. In collaboration
with the research team led by Jiang Lei, an academician with the Chinese Academy of Sciences (“CAS”), the
Company uncovered the optimal range of alcohol by volume for Baijiu products in the prestigious international
journal Matter. This paper, the first of its kind, proved that Wuliangye of different alcohol volumes and relevant
series of products all fall within this optimal range. This paper has been the highest-impact research paper in
China's Baijiu industry to date, which is of great significance to build a scientific system for sensory evaluation
of Wuliangye Baijiu and even all the products in the Baijiu industry.
Thirdly, the Company had a stronger brand presence. The Company was, once again, in the spotlight
by sponsoring CCTV's 2024 Spring Festival Gala. Additionally, the Company was invited to participate in the
2024 New Year's Eve countdown celebrations in New York City's Times Square, capturing the attention of
hundreds of millions of people worldwide. Its brand value has maintained double-digit growth for seven
consecutive years, reaching RMB449.8 billion. In terms of brand strength index, Wuliangye received the
highest global AAA+ rating again, ranking first among Baijiu brands.
Finally, technological upgrade projects showed strong momentum. The Company continued to push
forward with major ongoing projects. Specifically, the Ecological Distillery Project (Phase I) gradually
commenced production, ensuring consistent output and high quality. The intelligent distilling demonstration
workshop is now up and running. Additionally, the Company has successfully installed an automated packaging
line.
(II) Strengthen compliance and continuously improve corporate governance
Firstly, the information disclosure continued to be strengthened. The Company continued to strengthen
its learning of the Stock Listing Rules and other applicable regulations, and strengthen information disclosure
management. It has won the highest level (A) assessment of information disclosure from the Shenzhen Stock
Exchange for nine consecutive years. Since 2024, the Company has compiled and disclosed 55 periodic reports
and current announcements, conveying relevant information on its production and operation in a timely manner
with increasing transparency.
Secondly, the governance system continued to be optimised. The Company currently has eleven
directors, including five internal directors and six outside directors. Major agenda items are subject to pre-
review and pre-study by the Party Committee, continuously exerting the effectiveness of scientific decision-
making by the Board of Directors. During the first half of 2024, the Company convened seven Board meetings,
deliberating on 24 proposals, including matters related to profit distribution, actively implementing the
functions of the Board of Directors, and ensuring efficient and orderly management of the Company.
Finally, the supervision mechanism continued to be sound. Since 2024, the independent directors
attended one special meeting of independent directors and seven Meetings of the Board of Directors, while
continuing to pay attention to the Company's information disclosure work, objectively evaluating the timeliness
and accuracy of information disclosure, and independently and prudently expressing opinions to ensure the
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
normative, compliant, and effective operation of the Board of Directors; the Company's Supervisory Committee
independently exercised its powers in accordance with the law, supervised the Company's lawful operations,
financial status, related transactions, external guarantees, and actively safeguarded the legitimate rights and
interests of all shareholders, the Company, and employees.
(III) Strengthen returns and continuously increase shareholder returns
The Company continued to uphold the core value of "creating returns for investors". While focusing on its
own development and improving performance, it actively shared the yield of development with all shareholders.
The Company’s total cash dividend amount for 2023 was RMB18.127 billion, representing a cash dividend
payout ratio of 60%. Both the dividend amount and the dividend payout ratio were the highest since the
Company went public, and the dividend payout was completed on 12 July 2024.
(IV) Strengthen confidence with the largest shareholder increasing its shareholding in the Company
Wuliangye Group initiated a plan to increase its shareholding in the Company on 14 December 2023, and
has cumulatively purchased 3,406,668 additional shares with an amount of RMB500.0016 million, accounting
for 0.09% of the Company’s total share capital. So far, the implementation of the shareholding increase plan has
been completed.
(V) Strengthen communication and continuously optimise investor relations management
The Company always adhered to the principles of "compliance, equality, proactivity, and honesty and
trustworthiness", continuously optimised investor relations management, and built various communication
platforms. During the Reporting Period, the Company held the "2023 Annual and 2024 First Quarterly Results
Briefing" and the "2023 Annual General Meeting of Shareholders", actively listening to investors' opinions and
suggestions, improving the effectiveness and pertinence of communication, and ensuring the equal participation
of minority shareholders. During the Reporting Period, the Company communicated with a total of more than
1,300 investors through the annual general meeting of shareholders, one-on-one meetings, securities firms’
investment conferences, conference calls and other forms.
The Company will continue to implement relevant measures of the Action Plan for "Dual Enhancement of
Development Quality and Investor Returns”, strive to realise the concept of "investors first" through good
performance, standardised corporate governance, and active investment returns, effectively fulfill the
responsibilities and obligations of a listed company, enhance investor confidence, and achieve sustained high-
quality development of the Company.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part IV Corporate Governance
I Annual and Extraordinary General Meetings of Shareholders Convened during the
Reporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
Investor
Meeting Type Date of the meeting Disclosure date Resolutions
participation ratio
See the
Announcement on
The 2023 Annual Annual General Resolutions of the
General Meeting of Meeting of 72.03% 28 June 2024 29 June 2024 2023 Annual
Shareholders Shareholders General Meeting of
Shareholders
(2024/No. 024)
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preference Shareholders
with Resumed Voting Rights
□ Applicable Not applicable
II Change of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Name Office title Type of change Date Reason
Elected at a general meeting of
Han Chengke Director Elected 28 June 2024
shareholders
Elected at a general meeting of
Zhang Xin Director Elected 28 June 2024
shareholders
Elected at a general meeting of
Li Shuai Supervisor Elected 28 June 2024
shareholders
Elected at a general meeting of
Zhu Yongliang Supervisor Elected 28 June 2024
shareholders
Board Secretary 19 April 2024
Appointed by the Board of
Zhang Xin Chief Financial Appointed
25 June 2024 Directors
Officer
Deputy General Appointed by the Board of
Appointed 2 February 2024
Manager Directors
Jiang Jia Dismissed by the Board of
Chief Economist Former 2 February 2024 Directors for the reason of job
change
Dismissed by the Board of
Jiang Lin Board Secretary Former 19 April 2024 Directors for the reason of job
change
Dismissed by the Board of
Chief Financial
Xie Zhiping Former 2 February 2024 Directors for the reason of job
Officer change
Dismissed by the Board of
Deputy General
Liu Yang Former 2 February 2024 Directors for the reason of job
Manager change
III Profit Distributions in the Form of Cash and/or Bonus Issue
□ Applicable Not applicable
The Company has no interim dividend plan, either in the form of cash or bonus issue.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
Applicable □ Not applicable
1. Equity Incentives
□ Applicable Not applicable
2. Employee Stock Ownership Plans
Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
Total number of As % of the total
Scope of Number of
shares held under Change share capital of the Funding source
employees employees
the plans Company
Employees
covered by the 2,428 23,696,280 None 0.61% Self-pooled
plans
Shareholdings of directors, supervisors and senior management under employee stock ownership plans
during the Reporting Period:
In April 2018, the Company carried out an employee stock ownership plan through a private placement,
and certain in-service directors, supervisors and senior management participated in the employee stock
ownership plan. By the end of the Reporting Period, non-transaction transfers had been completed.
Change of the asset management agency during the Reporting Period:
□ Applicable Not applicable
Equity changes incurred by the disposal of shares by any holder, etc. during the Reporting Period:
□ Applicable Not applicable
3. Exercise of Shareholder Rights during the Reporting Period
□ Applicable Not applicable
Other information about the employee stock ownership plans during the Reporting Period:
□ Applicable Not applicable
Changes to members of the management committees of employee stock ownership plans:
□ Applicable Not applicable
The financial impact of employee stock ownership plans on the Company and the relevant accounting
treatments during the Reporting Period:
□ Applicable Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable Not applicable
Other information: None.
4. Other Incentive Measures for Employees
□ Applicable Not applicable
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate whether the Company or any of its subsidiaries was identified as a major polluter by
environmental authorities.
Yes □ No
1. Policies and Industry Standards on Environmental Protection
The Company strictly complies with environmental protection laws, regulations, and relevant policies. In
line with the environmental management system, the Company has compiled a list of updates in accordance
with environmental laws, regulations, standards, and other requirements. In 2024, it identified and collected 186
relevant laws, regulations, and requirements. Meanwhile, taking into account its realities, the Company
formulated 17 policies on environmental protection, and developed the internal control standard—Distilling
Wastewater Discharge Standard, which is stricter than the national and Sichuan provincial requirements. And
the Company ensures that all environmental protection concepts and requirements are implemented into every
aspect of daily production and operation activities.
2. Administrative Licenses of Environmental Protection
The Company has adhered strictly to national administrative licence requirements for environmental
protection, completed environmental impact assessments, obtained discharge licenses for its projects as required,
and conducted environmental compliance self-inspections upon project completion. In January 2024, it renewed
its discharge licence, and the new discharge licence is valid until November 2024.
3. Industry Discharge Standards and Discharge of Pollutants in Production and Operation
Name Exc
Numb Approved
of the Type of Way Distribu Total essi
er of Discharge Governing total
Comp major Major of tion of discharge ve
discha concentration/ discharge discharge
any or pollutan pollutants discha discharg (metric disc
rge intensity standards (metric
subsid ts rge e outlets ton) harg
outlets ton)
iary e
Particulate
10.3 mg/m 20 mg/ m / N/A /
matter
Coal to
Sulfur
9 Gas 21.4 mg/ m 50 mg/ m / N/A /
dioxide
Phase I
Oxynitrid
100.7mg/ m 150 mg/ m 27 50.5 /
e
Particulate
2.9 mg/ m 20 mg/ m 0.1 4.8 /
matter
Coal to
Sulfur Organ
The Air 6 Gas 5.6 mg/ m 50 mg/ m 0.5 2 /
dioxide ized
Comp pollutan Phase II
Oxynitrid discha
any ts 99.6 mg/ m 150 mg/ m 19.4 27.4 /
e rge
Particulate
4.2 mg/ m 20 mg/ m 0.04 1.9 /
matter Coal to
Sulfur Gas
3 5.3 mg/ m 50 mg/ m 0.15 0.8 /
dioxide Phase
Oxynitrid III
95.7 mg/ m 150 mg/ m 6.72 10.96 /
e
Particulate Hot
10 / 20 mg/ m / N/A /
matter water
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Sulfur boilers
/ 50 mg/ m 0.0002 0.08 /
dioxide
Oxynitrid
105 mg/ m 150 mg/ m 0.1 0.89 /
e
COD 1 25.6mg/L 40 mg/L 44.8 72 /
Ammonia Wuliang
1 0.3 mg/L 3 mg/L 0.8 5.4 /
Water nitrogen Direct ye
pollutan Total discha Ecologi
1 7mg/L 15 mg/L 12.5 27 /
ts nitrogen rge cal
Total Wetland
phosphoru 1 0.1mg/L 0.5 mg/L 0.3 0.9 /
s
4. Treatments of Pollutants
The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone in the
Jiangbei industrial park, using biochemical treatment and Fenton treatment technology for wastewater treatment,
with a daily capacity of 10,000 tons. The advanced treated tailwater in compliance with the applicable standards is
discharged after being further purified by ecological wetlands. The system is functioning normally.
At present, the Company has built 18 20t/h natural gas boilers in the Jiangbei industrial park and put them
into operation, which adopts the advanced low-NOx combustion technology from Germany. The system is
functioning normally. The leaven production line and the grain processing production line are equipped with bag-
type dust collectors, and the wastewater treatment station is equipped with odour gas collection and treatment
facilities, which are all functioning normally.
5. Contingency Plan for Environmental Emergencies
The Company has formulated and issued the Contingency Plan on Unexpected Environmental Events in
Yibin City Wuliangye Industrial Park, Contingency Plan on Unexpected Environmental Events of Wuliangye
Yibin Co., Ltd., Contingency Plan on Unexpected Environmental Events of Wuliangye Yibin Co., Ltd. (Special
Plan for Baijiu Storage Tanks), and Contingency Plan on Unexpected Environmental Events of Wuliangye
Yibin Co., Ltd. (Special Plan for Wastewater). Concurrently, updates have been made to the risk assessment
reports and environmental contingency resource survey reports for environmental emergencies.
6. Spending on Environmental Protection and Payment of Environmental Protection Tax
Pollution control costs attributable to the H1 2024 period totalled RMB139.38 million and environmental
protection tax payments were RMB0.23 million.
7. Environmental Self-Monitoring Plan
The Company has developed a self-monitoring plan in line with the requirements of the discharge licence,
and completed self-monitoring strictly according to the prescribed monitoring frequency and the requirements
of monitoring projects. The results showed that the concentration and emission rate of air pollutants were within
the permissible limits; the concentration of air pollutants at the plant boundary met the limit requirements of
fugitive emission monitoring; the concentration of water pollutants discharged was within the permissible
discharge limit; and the noise levels at the plant boundary were within the permissible limits. Additionally, it
conducted rainwater outlet monitoring as required.
8. Administrative Penalties Imposed for Environmental Issues during the Reporting Period
None.
9. Other Environmental Information that should Be Disclosed
None.
10. Measures Taken to Reduce Carbon Emissions in the Reporting Period and the Results
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Applicable □ Not applicable
The existing biogas power generation facilities of the wastewater treatment stations generated
approximately 2.8 million kWh of electricity, reducing greenhouse gas emissions by approximately 600 tons.
And the biogas power generation facilities of the new centralised wastewater treatment plant are under
construction.
11. Other Environmental Information
The Company organised and conducted internal reviews and assessments of its energy management system
and environmental management system. In addition, a third-party organisation was hired to conduct external
reviews of the Company's energy management system and environmental management system. The Company
passed these reviews and received the relevant certificates. The Company entrusted a third-party organisation to
carry out reviews of its greenhouse gas emissions in 2023 and received the relevant review statement.
II Corporate Social Responsibility (CSR)
In the first half of 2024, the Company thoroughly studied and implemented General Secretary Xi Jinping's
important speeches and guiding principles on effectively connecting the consolidation and expansion of
achievements in poverty alleviation with rural revitalisation. In response to the provincial and municipal
decisions and arrangements for necessary and paired assistance, it focused on addressing the major weaknesses
and shortcomings that hinder the development of assisted areas such as Litang and Pingshan counties. By
prioritising industrial and project-based assistance, it revolved around key tasks of the year, driving all
initiatives forward with a strong sense of mission, responsibility, and urgency. The Company's assistance model
and achievements were highlighted in the Daily Report submitted by the General Office of the CPC Sichuan
Provincial Committee to the leaders of the CPC Sichuan Provincial Committee. Additionally, a special report
titled “Wuliangye Supports High-Quality Development of Litang County's Distinctive Agriculture and Animal
Husbandry” was circulated across the province by the United Front Work Department of the CPC Sichuan
Provincial Committee.
1. Paired Assistance to Litang County
Firstly, in terms of overall arrangements, the Company has established an assistance steering group headed
by the Secretary of the CPC Committee and Chairman of the Board. This group includes a task force to provide
necessary, paired assistance to four villages under four townships or towns in Litang County. Upon consultation
with Litang County, the Company developed a 2024 assistance plan that outlines eight key tasks of the year and
a funding plan of RMB46.4 million. It also completed the “One Enterprise, One Policy” necessary assistance
plan and executed the “Agreement on Guiding County-Enterprise Common Growth through Party Building”
with Litang County. According to this agreement, both parties will continue to deepen cooperation and
exchanges in collaborative Party building, the development of distinctive agricultural and cultural tourism
industries in the Tibetan Plateau, market expansion, education, and talent projects. The Company has
undertaken to invest, on an annual basis, at least RMB10 million to support Litang County from 2024 to 2027.
Secondly, regarding visits and exchanges, the Company has strictly implemented regular mechanisms for
county-enterprise interactions, including regular visits, special meetings, and surveys. Several trips, led by the
Company’s management, have been made to Litang County for field surveys. Leaders from the subsidiaries
joining the “Three-level Assistance” programme have visited the four townships or towns and four villages that
receive paired assistance from the Company. The trip aimed to explore the Sacred Genie Mountain and its
surrounding tourism resources, Cunge Township's rural collective industry-hot springs, the Wuliangye
mushroom base, and the Litang Logistics Industry Park. The Company held the Wuliangye-Litang County
“Three-level Assistance” Work Symposium, where key officials from the People's Government of Litang
County and the CPC Litang County Committee were invited to the Company to discuss industrial assistance
26
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
directions, project selection, and the establishment of assistance mechanisms. Ultimately, both sides reached a
consensus.
Finally, as to the progress of key projects, particularly centralised procurement, the Company proposes to
purchase agricultural and other distinctive products with a combined budget of RMB10 million from Litang
County in 2024. The procurement is expected to be fully completed by the Mid-Autumn Festival. In terms of
base upgrading, the Company proposes to invest RMB3 million in 2024 to upgrade the winter warm-type
mushroom sheds in the mushroom base. A preliminary renovation plan has been developed and will be
implemented upon confirmation by the county. Concerning grassroots infrastructure development, the Company
proposes to invest RMB2 million in supporting the construction of village-level Party building infrastructure in
Litang County's Mula Town, including the construction of Mayan Village's Party service centre and Naisha
Village's community activity centre. The Company aims to continuously improve grassroots governance
facilities. The construction plans and sites have been determined. With respect to support for talent cultivation,
the Company proposes to invest RMB0.4 million in 2024 in the “Wuliangye-Litang University Student
Cultivation Programme” to provide a job practice platform for “jobless university graduates who have returned
to their hometown”. The first batch of ten graduates has been recruited and assigned to grassroots positions in
assisted villages. The Company will also provide 20 outstanding, financially disadvantaged students with
RMB5,000 each in student grants. Additionally, it will implement the “Assist Disabled StudentsCaring Project”
by donating two school libraries worth a total of RMB0.12 million to Litang County. These libraries are
expected to contain over 4,000 books spanning categories such as history, astronomy, classic stories, guides, and
life knowledge.
2. Paired Assistance to Pingshan County
Firstly, regarding new assistance efforts, the Company has dispatched 11 staff members to the assisted
villages. All of them are CPC members, including five members of middle ranks or higher. They have reported
for duty by the end of July.
Finally, regarding the progress of key projects, particularly the development of industrial bases, the
Company replanted 70,000 tea seedlings on the 200-mu high-mountain selenium-rich organic tea base in
Yingxiong Village, Qingping Yi Ethnic Township, Pingshan County, to ensure proper planting density.
Additionally, the Company has completed the construction of sightseeing platforms and roads, and continued to
improve subsequent maintenance and operational support. In the 200-mu high-mountain edible bamboo shoot
base in Yingxiong Village, land levelling was completed, and 60,000 bamboo seedlings were planted. This
initiative has encouraged surrounding communities to plant over 210,000 bamboo seedlings. Concerning
assistance through product consumption, during the Chinese New Year, the Company made targeted and
centralised procurement of agricultural and distinctive products, such as honey, from Pingshan County,
amounting to RMB1.93 million. In terms of educational assistance, the Company implemented the “Assist
Disabled StudentsCaring Project” by donating libraries to three schools in Pingshan County, worth a total of
RMB0.18 million. These libraries are expected to contain over 6,000 books in categories such as history,
astronomy, classic stories, guides, and life knowledge. It also conducted a “Warm Winter Action” donation
event at Starbase School in Qingping Yi Ethnic Township in Pingshan County. At this event, daily supplies such
as down jackets, scarves, hats, gloves, and socks were donated to over 200 students, with a total value of over
RMB60 thousand. The Company also provided student grants of RMB2,000 each to 39 financially needed
families in Qingping Yi Ethnic Township in Pingshan County with university-bound students.
27
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part VI Significant Events
I Undertakings of the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and other Entities Fulfilled in the Reporting Period
or Ongoing at the Period-end
Applicable □ Not applicable
Based on their confidence in the Company's prospects and recognition of its long-term investment value,
Yibin Development Holding Group Co., Ltd. and Sichuan Yibin Wuliangye Group Co., Ltd. have voluntarily
undertaken not to reduce their shareholdings in the Company in any way within one year from 24 August 2023,
and the undertakings are being honoured continuously.
II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its
Related Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees for External Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Appointment and Dismissal of CPA Firm
Indicate whether the interim financial statements are audited.
□ Yes No
The interim financial statements are unaudited.
V Statements Made by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□ Applicable Not applicable
VI Statement Made by the Board of Directors Regarding the “Modified Opinion” of an
Independent Auditor on Financial Statements of Last Year
□ Applicable Not applicable
VII Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits and arbitrations:
□ Applicable Not applicable
No such cases in the Reporting Period.
Other legal matters:
Applicable □ Not applicable
28
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Index
Wheth Date
Amount Execu to
er any of
involved Result and tion of disclo
General information provis Progress discl
(RMB’0 impact judgm sed
ion is osur
,000) ent inform
made e
ation
The
Contract dispute between enforc
Yibin Wuliangye Xianlin The court has ement
Ecological Liquor Co., ordered the has
The first-instance judgment has
Ltd. and Chengdu 492.68 No enforcement not
taken effect.
Pomegranate Agricultural of an asset yet
Products Development auction. been
Co., Ltd. carrie
d out.
Contract dispute between
The
Sichuan Yibin Global
enforc
Group Shenzhou Glass
ement
Co., Ltd. (hereinafter In June 2023, the court ruled that Yuxiang fails
has
referred to as Yuxiang should compensate to fulfil the
574.14 No not
“Shenzhou”) and Yibin Shenzhou a total of RMB5.7414 judgment on
yet
Yuxiang Packaging million. time.
been
Materials Co., Ltd.
carrie
(hereinafter referred to as
d out.
“Yuxiang”)
In April 2023, the People's Court
of Cuiping District, Yibin City,
made the first-instance judgment,
requiring Xi'an Construction
Xi'an
Construction contract Engineering Group to compensate
Construction
dispute between the the Company for various losses The
Engineering
Company and Xi'an totalling RMB7.5327 million. enforc
Group is
Construction Engineering After offsetting the outstanding ement
2,162.33 No currently
Group Co., Ltd. project payments, Xi'an is
paying the
(hereinafter referred to as Construction Engineering Group under
Company the
“Xi'an Construction shall still pay the Company way.
outstanding
Engineering Group”) RMB1.7194 million. Both parties
payment.
appealed against the first-instance
judgment. The second-instance
court dismissed the appeal and
upheld the original judgment.
The
The “Phoenix Series” enforc
illustrations of the ement
Company's “Bainiao has
Chaofeng” brand are 100.00 No Pre-litigation mediation. None for now. not
suspected to have yet
infringed upon Li Linxin's been
copyright. carrie
d out.
Contract dispute between In October 2022, Yongbufenli The
Handan Yongbufenli filed a lawsuit with the judgm
Liquor Co., Ltd. Intermediate People's Court of The second- ent
(hereinafter referred to as 10,049.2 Handan against Yuexin Liquor, instance court has
No
“Yongbufenli”) and 8 requesting a) payment of session has not
Chengdu Yuexin Liquor RMB100.4928 million in been opened. yet
Co., Ltd. (hereinafter outstanding payments from the been
referred to as “Yuexin defendant, plus interest calculated made.
29
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Liquor”) at the Loan Prime Rate (“LPR”)
from 21 July 2020 to the date
when the payment is made in full;
and b) the defendant to bear all
litigation and appraisal fees. In
March 2023, the first-instance
judgment dismissed Yongbufenli's
claims. In April 2023,
Yongbufenli filed a second-
instance appeal with the Supreme
People's Court of Hebei, and the
case was reopened on 10 April
2024. The judgment has not yet
been made.
The hearing was held on 27 April The second
2023, with the defendant absent. public
Case of Handan The
On 11 May, a judgment was announcement
Yongbufenli Liquor Co., court
issued ordering the defendant to for
Ltd. suing Handan has
211.41 No pay the overdue payment. Due to enforcement
Yongbufenli Zaiyang issued
the inability to notify the has ended,
Liquor Co., Ltd. for a final
judgment defaulter, the and the court
overdue payment ruling.
enforcement notice was served by has issued a
public announcement. final ruling.
In January 2022, Yongbufenli
filed a lawsuit with the People's
Court of Linzhang County against
Baijiadi over a sales contract
dispute involving an amount of
RMB72.4635 million. The court
was requested to a) order the
Contract dispute between The
defendant to pay RMB72.4635
Handan Yongbufenli The case is judgm
million, along with the interest
Liquor Co., Ltd. currently ent
calculated at the LPR published
(hereinafter referred to as under a has
7,246.35 No by the National Interbank
“Yongbufenli”) and second- not
Funding Center from 16
Sichuan Baijiadi Liquor instance yet
September 2020 to the date when
Co., Ltd. (hereinafter hearing. been
the payment is made in full; and
referred to as “Baijiadi”) made.
b) order the defendant to bear all
litigation and appraisal fees. The
first-instance judgment dismissed
Yongbufenli's claims. In April
2024, Yongbufenli filed an appeal
with the Intermediate People's
Court of Handan.
IX Penalties and Rectifications
□ Applicable Not applicable
No such cases in the Reporting Period.
X Credit Standings of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable Not applicable
XI Significant Related-Party Transactions
1. Continuing Related-Party Transactions
Applicable □ Not applicable
30
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
See “5. Related-Party Transactions” under “XIII Related Parties and Related-Party Transactions” of Part X.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
Applicable □ Not applicable
Making deposits:
Amount incurred in the
Upper limit current period
of daily Opening Total Closing
Related Relationsh Range of
deposit balance Total amount amount balance
party ip interest rate
(RMB’0,00 (RMB’0,000) deposited withdrawn (RMB’0,000)
0) (RMB’0,000) (RMB’0,00
0)
Wuliangye
Group Associate 5,500,000 0.42%-3.5% 4,029,953.75 818,109.62 673,229.07 4,174,834.30
Finance
Note: The amount incurred in the current period is presented on a net basis, which means such transactions
are eliminated as the same company withdrawing a deposit and making another deposit of a different kind, or
companies included in the consolidated financial statements making transfers via Wuliangye Group Finance.
Receiving loans:
The Company received no loans from Wuliangye Group Finance during the Reporting Period.
Receiving credit (inclusive of discounting) or other financial services:
Amount incurred
Related party Relationship Type of business Line (RMB’0,000)
(RMB’0,000)
Wuliangye Group
Associate Receiving credit 1,000,000 1,935.53
Finance
Note: On 28 June 2024, the Company and Wuliangye Group Finance signed the Financial Service
Agreement, agreeing that the daily total balance of outstanding loans and unused credit with Wuliangye Group
Finance shall not exceed RMB10 billion in 2024.
The “amount incurred” in the Reporting Period includes the bank acceptance bills of RMB19.3553 million
issued by Wuliangye Group Finance (undue bank acceptance bills as of 30 June 2024: RMB19.3553 million).
6. Transactions between Finance Companies Controlled by the Company and Related Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
31
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
7. Other Significant Related-Party Transactions
□ Applicable Not applicable
No such cases in the Reporting Period.
XII Significant Contracts and Execution
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted for Wealth Management
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
□ Applicable Not applicable
No such cases in the Reporting Period.
XIV Significant Events of Subsidiaries
Applicable □ Not applicable
As approved at the Second Meeting of the Sixth Board of Directors of 2024 dated 19 April 2024, the
Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has
incorporated “Sichuan Yibin Plastic Packaging Products Co., Ltd.” (hereinafter referred to as “Plastic
Packaging Products”). Plastic Packaging Products has a registered capital of RMB50 million, and the Company
owns 100% of Plastic Packaging Products.
32
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Increase/decrease in the current
Before After
period (+/-)
B
on
us
Bonus
iss Su
As % of issue Ot As % of
Number of New ue bt Number of
total from he total
shares issue fro ot shares
shares capital r shares
m al
reserves
pr
ofi
t
I Restricted shares 82,098 0.00% 82,098 0.00%
1. Shares held by the
state
2. Shares held by state-
owned corporations
3. Shares held by other
82,098 0.00% 82,098 0.00%
domestic investors
Of which: Shares held by
domestic corporations
Shares held by
82,098 0.00% 82,098 0.00%
domestic individuals
4. Shares held by
overseas investors
Of which: Shares held by
overseas corporations
Shares held by
overseas individuals
II Unrestricted shares 3,881,525,907 100.00% 3,881,525,907 100.00%
1. RMB-denominated
3,881,525,907 100.00% 3,881,525,907 100.00%
ordinary shares
2. Domestically listed
foreign shares
3. Overseas listed
foreign shares
4. Others
III Total shares 3,881,608,005 100.00% 3,881,608,005 100.00%
Reasons for share changes:
□ Applicable Not applicable
Approval of share changes:
33
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
□ Applicable Not applicable
Transfer of share ownership:
□ Applicable Not applicable
Progress on any share repurchase:
□Applicable Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□Applicable Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the
latest accounting period, respectively:
□ Applicable Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be
disclosed:
□ Applicable Not applicable
2. Changes in Restricted Shares
□ Applicable Not applicable
II Issuance and Listing of Securities
□ Applicable Not applicable
III Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
Number of preference shareholders with
Number of ordinary shareholders at
605,118 resumed voting rights at the period-end 0
the period-end
(if any) (see note 8)
5% or greater ordinary shareholders or top 10 ordinary shareholders (exclusive of shares lent in refinancing)
Restri Shares in
Nature Shareho Increase/dec cted pledge,
Total ordinary Unrestricted marked or
of lding rease in the ordina
Name of shareholder shares held at ordinary shares frozen
shareh percenta Reporting ry
the period-end held
older ge Period shares Stat Shar
held us es
State-
Yibin Development owned
34.43% 1,336,548,020 1,336,548,020
Holding Group Co., Ltd. corpor
ation
State-
Sichuan Yibin Wuliangye owned
20.49% 795,230,011 3,406,668 795,230,011
Group Co., Ltd. corpor
ation
Overs
Hong Kong Securities
eas
Clearing Company 4.79% 185,881,215 10,991,548 185,881,215
corpor
Limited
ation
China Securities Finance
Other 2.38% 92,385,936 92,385,936
Corporation Limited
Bank of China Limited－
China Merchants China Other 1.33% 51,481,362 -5,636,617 51,481,362
Securities Baijiu Index
34
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Classification Securities
Investment Fund
State-
Central Huijin Asset owned
1.01% 39,325,400 39,325,400
Management Co., Ltd. corpor
ation
Bank of China Limited－
E Fund Blue Chip
Other 0.68% 26,400,000 -2,980,000 26,400,000
Selected Mixed Securities
Investment Fund
China Life Insurance
Company Limited－
Traditional－General Other 0.62% 23,951,250 422,519 23,951,250
Insurance Product-005L-
CT001 Shanghai
Industrial and
Commercial Bank of
China Limited -Huatai
Bairui CSI 300 Traded Other 0.59% 22,838,574 8,226,365 22,838,574
Open-ended Index
Securities Investment
Fund
Industrial and
Commercial Bank of
China Limited－Invesco
Other 0.46% 17,678,300 -751,200 17,678,300
Great Wall Newly Growth
Mixed Securities
Investment Fund
Strategic investor or general
corporation becoming a top-10
N/A
ordinary shareholder in a rights
issue (if any) (see note 3)
Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of Yibin
Related or acting-in-concert parties
Development Group. And the Company is not aware of any related or acting-in-concert
among the shareholders above
parties among the other public shareholders.
Shareholders above
entrusting/entrusted with or waiving N/A
voting rights
Repurchased share account (if any)
among the top 10 shareholders (see N/A
note 11)
Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and locked-up shares of senior management)
Unrestricted ordinary Shares by class
Name of shareholder shares held at the period-
end Class Shares
RMB-denominated
Yibin Development Holding Group Co., Ltd. 1,336,548,020 1,336,548,020
ordinary shares
RMB-denominated
Sichuan Yibin Wuliangye Group Co., Ltd. 795,230,011 795,230,011
ordinary shares
RMB-denominated
Hong Kong Securities Clearing Company Limited 185,881,215 185,881,215
ordinary shares
RMB-denominated
China Securities Finance Corporation Limited 92,385,936 92,385,936
ordinary shares
Bank of China Limited－China Merchants China
RMB-denominated
Securities Baijiu Index Classification Securities 51,481,362 51,481,362
ordinary shares
Investment Fund
35
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
RMB-denominated
Central Huijin Asset Management Co., Ltd. 39,325,400 39,325,400
ordinary shares
Bank of China Limited－E Fund Blue Chip Selected RMB-denominated
26,400,000 26,400,000
Mixed Securities Investment Fund ordinary shares
China Life Insurance Company Limited－Traditional RMB-denominated
23,951,250 23,951,250
－General Insurance Product-005L-CT001 Shanghai ordinary shares
Industrial and Commercial Bank of China Limited -
RMB-denominated
Huatai Bairui CSI 300 Traded Open-ended Index 22,838,574 22,838,574
ordinary shares
Securities Investment Fund
Industrial and Commercial Bank of China Limited－
RMB-denominated
Invesco Great Wall Newly Growth Mixed Securities 17,678,300 17,678,300
ordinary shares
Investment Fund
Related or acting-in-concert parties among top 10 Among the top 10 shareholders, Wuliangye Group is a wholly-owned
unrestricted ordinary shareholders, as well as between subsidiary of Yibin Development Group. And the Company is not aware
top 10 unrestricted ordinary shareholders and top 10 of any related or acting-in-concert parties among the other public
ordinary shareholders shareholders.
Top 10 ordinary shareholders involved in securities
N/A
margin trading (if any) (see note 4)
5% or greater shareholders, top 10 shareholders and top 10 unrestricted public shareholders involved in
refinancing shares lending:
□Applicable Not applicable
Changes in top 10 shareholders and top 10 unrestricted public shareholders due to refinancing shares
lending/return compared with the prior period:
□Applicable Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of
the Company conducted any promissory repurchase during the Reporting Period.
□ Yes No
No such cases in the Reporting Period.
IV Changes in Shareholdings of Directors, Supervisors and Senior Management
□Applicable Not applicable
No changes occurred to the shareholdings of the directors, supervisors and senior management in the
Reporting Period. See the 2023 Annual Report for more details.
V Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period:
□ Applicable Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable Not applicable
No such cases in the Reporting Period.
36
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□ Applicable Not applicable
37
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Part X Financial Statements
I Independent Auditor’s Report
Indicate whether the interim financial statements are audited.
□ Yes No
The interim financial statements are unaudited.
II Financial Statements
Monetary unit for the financial statements and the statements in the notes thereto unless otherwise stated:
RMB
1. Consolidated Balance Sheet
Prepared by Wuliangye Yibin Co., Ltd. 30 June 2024 Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 128,714,842,080.74 115,456,300,910.64
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 3,650,281.25
Accounts receivable 84,118,689.50 42,647,461.48
Receivables financing 19,576,430,505.90 14,086,450,565.79
Prepayments 160,861,414.58 169,425,745.15
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 51,547,943.32 39,624,933.74
Of which: Interest receivable
Dividends
receivable
Financial assets purchased under
resale agreements
Inventories 16,847,018,906.97 17,387,841,712.87
Of which: Data resources
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets
Total current assets 165,438,469,822.26 147,182,291,329.67
38
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,028,290,932.39 2,020,366,240.69
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 5,144,267,933.32 5,189,917,302.17
Construction in progress 6,809,490,371.99 5,623,356,422.20
Productive living assets
Oil and gas assets
Right-of-use assets 980,047,470.78 126,810,315.49
Intangible assets 2,646,157,958.12 2,056,870,639.03
Of which: Data resources
Development costs
Of which: Data resources
Goodwill 1,621,619.53 1,621,619.53
Long-term prepaid expense 149,194,939.46 163,120,023.86
Deferred income tax assets 2,493,692,024.42 2,242,610,567.82
Other non-current assets 292,078,812.34 824,817,224.29
Total non-current assets 20,546,042,062.35 18,250,690,355.08
Total assets 185,984,511,884.61 165,432,981,684.75
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 569,729,467.22 732,432,611.26
Accounts payable 8,951,591,862.82 8,864,206,997.09
Advances from customers 18,100,649.63 17,522,814.61
Contract liabilities 8,157,503,632.65 6,864,383,635.25
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial
institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
39
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Employee benefits payable 3,648,149,395.63 3,872,122,436.43
Taxes and surcharge payable 4,504,909,475.97 6,268,458,145.77
Other payables 23,954,160,106.68 5,385,776,903.69
Of which: Interest payable
Dividends payable 18,127,109,383.35
Fees and commissions payable
Reinsurance payables
Liabilities directly associated
with assets held for sale
Current portion of non-current
373,908,963.84 14,512,448.92
liabilities
Other current liabilities 624,081,189.42 663,723,991.63
Total current liabilities 50,802,134,743.86 32,683,139,984.65
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities 646,160,709.88 115,722,608.68
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 246,950,215.16 253,043,325.37
Deferred income tax liabilities 240,471,806.67 31,702,578.88
Other non-current liabilities
Total non-current liabilities 1,133,582,731.71 400,468,512.93
Total liabilities 51,935,717,475.57 33,083,608,497.58
Owners’ equity:
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which : Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 33,588,553,502.81 33,588,553,502.81
General reserve
Retained earnings 90,335,152,592.07 89,405,432,446.55
Total equity attributable to owners of the
130,487,961,186.03 129,558,241,040.51
Company as the parent
Non-controlling interests 3,560,833,223.01 2,791,132,146.66
40
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Total owners’ equity 134,048,794,409.04 132,349,373,187.17
Total liabilities and owners’ equity 185,984,511,884.61 165,432,981,684.75
Legal representative: Zeng Congqin Chief Financial Officer: Zhang Xin Head of the accounting department: Liu Hongxu
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 60,959,151,409.68 60,323,450,012.71
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayments 3,946,792.23 3,380,448.33
Other receivables 6,410,452,552.43 6,485,949,705.92
Of which: Interest receivable
Dividends receivable 650,667,449.43 930,755,375.66
Inventories
Of which: Data resources
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets
Total current assets 67,373,550,754.34 66,812,780,166.96
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 13,443,389,025.18 13,436,738,333.48
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 105,941,317.09 114,171,167.35
Construction in progress 112,398,471.31 112,398,471.31
Productive living assets
41
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Oil and gas assets
Right-of-use assets 9,102,156.14 985,149.93
Intangible assets 37,459,792.91 39,378,847.31
Of which: Data resources
Development costs
Of which: Data resources
Goodwill
Long-term prepaid expense
Deferred income tax assets 14,681,556.80 11,183,406.83
Other non-current assets
Total non-current assets 13,724,172,319.43 13,716,055,376.21
Total assets 81,097,723,073.77 80,528,835,543.17
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable
Accounts payable 175,000.00 175,000.00
Advances from customers
Contract liabilities
Employee benefits payable 9,151,590.18 9,870,448.65
Taxes and surcharge payable 84,444,965.08 86,642,875.45
Other payables 18,281,781,510.70 159,525,988.83
Of which: Interest payable
Dividends payable 18,127,109,383.35
Liabilities directly associated
with assets held for sale
Current portion of non-current
2,539,935.97 685,585.96
liabilities
Other current liabilities
Total current liabilities 18,378,093,001.93 256,899,898.89
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
42
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Perpetual bonds
Lease liabilities 6,796,944.74
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 7,750,000.00 7,750,000.00
Deferred income tax liabilities 2,275,539.04 246,287.48
Other non-current liabilities
Total non-current liabilities 16,822,483.78 7,996,287.48
Total liabilities 18,394,915,485.71 264,896,186.37
Owners’ equity:
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 15,508,769,954.04 15,508,769,954.04
Retained earnings 40,629,782,542.87 58,190,914,311.61
Total owners’ equity 62,702,807,588.06 80,263,939,356.80
Total liabilities and owners’ equity 81,097,723,073.77 80,528,835,543.17
3. Consolidated Income Statement
Unit: RMB
Item H1 2024 H1 2023
I Total revenues 50,648,026,578.65 45,506,384,818.37
Of which: Operating revenue 50,648,026,578.65 45,506,384,818.37
Interest income
Insurance premium income
Fee and commission income
II Total costs and expenses 24,499,814,494.48 22,026,681,871.19
Of which: Cost of sales 11,466,138,507.20 10,567,960,344.77
Interest costs
Fee and commission costs
Surrenders
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Net insurance claims paid
Net amount provided as reserve for insurance
obligations
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharge 7,169,866,343.52 6,495,771,025.33
Selling expense 5,366,342,173.42 4,320,445,619.61
Administrative expense 1,738,561,638.52 1,756,898,762.85
Research and development expense 159,760,941.28 135,677,515.04
Finance costs -1,400,855,109.46 -1,250,071,396.41
Of which: Interest expense 17,030,819.31 6,811,996.58
Interest income 1,423,837,619.29 1,259,323,479.12
Add: Other income 220,749,387.64 218,711,927.56
Investment income (“－” for loss) 21,877,331.70 20,626,708.35
Of which: Share of profit or loss of joint ventures
21,877,331.70 20,626,708.35
and associates
Income from the derecognition of
financial assets at amortized cost
Exchange gain (“－” for loss)
Net gain on exposure hedges (“－” for loss)
Gain on changes in fair value (“－” for loss)
Credit impairment losses (“－” for loss) -2,190,011.01 -3,713,694.44
Asset impairment losses (“－” for loss)
Gains on disposals of assets (“－” for losses) -3,917,579.22 237,968.66
III Operating profit (“－” for loss) 26,384,731,213.28 23,715,565,857.31
Add: Non-operating income 12,505,112.08 11,950,306.57
Less: Non-operating expense 7,164,462.42 55,248,945.45
IV Gross profit (“－” for gross loss) 26,390,071,862.94 23,672,267,218.43
Less: Income tax expense 6,563,541,257.72 5,879,733,314.24
V Net profit (“－” for net loss) 19,826,530,605.22 17,792,533,904.19
(I) By operating continuity
1. Net profit from continuing operations (“－” for net loss) 19,826,530,605.22 17,792,533,904.19
2. Net profit from discontinued operations (“－” for net
loss)
(II) By ownership
1. Net profit attributable to owners of the Company as the
19,056,829,528.87 17,036,708,791.18
parent (“－” for net loss)
2. Net profit attributable to non-controlling interests (“－”
769,701,076.35 755,825,113.01
for net loss)
VI Other comprehensive income, net of tax
Other comprehensive income, net of tax attributable to owners of
the Company as the parent
(I) Other comprehensive income that will not be reclassified to
profit or loss
1. Changes caused by remeasurements on defined benefit
schemes
44
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
2. Other comprehensive income that will not be reclassified to
profit or loss under the equity method
3. Changes in the fair value of other debt investments
4. Changes in the fair value arising from changes in own
credit risk
5. Other
(II) Other comprehensive income that will be reclassified to
profit or loss
1. Other comprehensive income that will be reclassified to
profit or loss under the equity method
2. Changes in the fair value of other debt investments
3. Other comprehensive income arising from the
reclassification of financial assets
4. Credit impairment allowances for other debt investments
5. Reserve for cash flow hedges
6. Differences arising from the translation of foreign currency-
denominated financial statements
7. Other
Other comprehensive income, net of tax attributable to non-
controlling interests
VII Total comprehensive income 19,826,530,605.22 17,792,533,904.19
Total comprehensive income attributable to owners of the
19,056,829,528.87 17,036,708,791.18
Company as the parent
Total comprehensive income attributable to non-controlling
769,701,076.35 755,825,113.01
interests
VIII Earnings per share:
(I) Basic earnings per share 4.910 4.389
(II) Diluted earnings per share 4.910 4.389
Where business combinations involving entities under common control occurred in the current period, the
net profit achieved by the acquirees before the combinations was RMB0.00, with the amount for the same
period of last year being RMB0.00.
Legal representative: Zeng Congqin Chief Financial Officer: Zhang Xin Head of the accounting department: Liu Hongxu
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
I Operating revenue
Less: Cost of sales
Taxes and surcharge 328,041.00 331,940.81
Selling expense
Administrative expense 83,757,026.19 77,330,772.58
Research and development expense 37,880,928.14 38,580,473.31
Finance costs -848,544,763.65 -733,373,985.00
Of which: Interest expense 349,686.50 16,584.06
Interest income 848,904,968.99 733,404,479.69
Add: Other income 2,346,572.38 3,212,099.46
Investment income (“－” for loss) 20,603,331.70 22,559,787.80
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Of which: Share of profit or loss of joint ventures
20,603,331.70 17,969,787.80
and associates
Income from the derecognition of
financial assets at amortized cost (“－” for loss)
Net gain on exposure hedges (“－” for loss)
Gain on changes in fair value (“－” for loss)
Credit impairment losses (“－” for loss) -5,811.93 -1,518,840.36
Asset impairment losses (“－” for loss)）
Gains on disposals of assets (“－” for loss) -92,629.13
II Operating profit (“－” for loss) 749,522,860.47 641,291,216.07
Add: Non-operating income 401,401.08 33,279.40
Less: Non-operating expense 900,000.00 4,377,295.50
III Gross profit (“－” for gross loss) 749,024,261.55 636,947,199.97
Less: Income tax expense 183,046,646.94 141,550,011.95
IV Net profit (“－” for net loss) 565,977,614.61 495,397,188.02
(I) Net profit from continuing operations (“－” for net
565,977,614.61 495,397,188.02
loss)
(II) Net profit from discontinued operations (“－” for net
loss)
V Other comprehensive income, net of tax
(I) Other comprehensive income that will not be
reclassified to profit or loss
1. Changes caused by remeasurements on defined
benefit schemes
2. Other comprehensive income that will not be
reclassified to profit or loss under the equity method
3. Changes in the fair value of other debt investments
4. Changes in the fair value arising from changes in
own credit risk
5. Other
(II) Other comprehensive income that will be reclassified
to profit or loss
1. Other comprehensive income that will be
reclassified to profit or loss under the equity method
2. Changes in the fair value of other debt investments
3. Other comprehensive income arising from the
reclassification of financial assets
4. Credit impairment allowances for other debt
investments
5. Reserve for cash flow hedges
6. Differences arising from the translation of foreign
currency-denominated financial statements
7. Other
VI Total comprehensive income 565,977,614.61 495,397,188.02
VII Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
46
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2024 H1 2023
I Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 49,648,363,358.43 43,051,685,416.56
Net increase in customer deposits and deposits from other
banks and financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, fees and commissions received
Net increase in loans from other banks and financial
institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 44,310,389.47 24,684,000.00
Cash generated from other operating activities 814,125,658.15 754,037,354.75
Subtotal of cash generated from operating activities 50,506,799,406.05 43,830,406,771.31
Payments for goods and services 7,486,715,895.21 7,505,024,442.31
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other banks
and financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 4,796,005,443.62 4,794,521,049.72
Taxes and surcharge paid 21,391,864,462.34 17,401,299,720.73
Cash used in other operating activities 3,404,284,949.25 2,799,742,672.25
Subtotal of cash used in operating activities 37,078,870,750.42 32,500,587,885.01
Net cash generated from/used in operating activities 13,427,928,655.63 11,329,818,886.30
II Cash flows from investing activities:
Proceeds from the disposal of investments
Investment income 13,952,640.00
Net proceeds from the disposal of fixed assets, intangible
3,976,302.92 594,829.45
assets and other long-term assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 17,928,942.92 594,829.45
Payments for the acquisition and construction of fixed assets, 1,087,312,766.70 1,345,043,512.81
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
intangible assets and other long-term assets
Payments for the acquisition of investments
Net increase in pledge loans
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 1,087,312,766.70 1,345,043,512.81
Net cash generated from/used in investing activities -1,069,383,823.78 -1,344,448,683.36
III Cash flows from financing activities:
Capital contributions received
Of which: Capital contributions received by subsidiaries
from non-controlling interests
Borrowings received
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings
Interest and dividends paid 10,606,030,081.23
Of which: Dividends paid by subsidiaries to non-controlling
17,601,392.99
interests
Cash used in other financing activities 157,849,148.32 201,882,821.01
Subtotal of cash used in financing activities 157,849,148.32 10,807,912,902.24
Net cash generated from/used in financing activities -157,849,148.32 -10,807,912,902.24
IV Effect of foreign exchange rate changes on cash and cash
equivalents
V Net increase in cash and cash equivalents 12,200,695,683.53 -822,542,699.30
Add: Cash and cash equivalents, beginning of the period 113,095,684,224.30 90,584,643,897.66
VI Cash and cash equivalents, end of the period 125,296,379,907.83 89,762,101,198.36
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
I Cash flows from operating activities:
Proceeds from sale of goods and rendering of services
Tax and levy rebates
Cash generated from other operating activities 933,235,725.86 1,797,517,178.90
Subtotal of cash generated from operating activities 933,235,725.86 1,797,517,178.90
Payments for goods and services
Cash paid to and for employees 88,701,721.91 116,579,383.93
Taxes and surcharge paid 187,456,637.30 351,172,696.63
Cash used in other operating activities 1,097,222,803.55 681,369,113.25
Subtotal of cash used in operating activities 1,373,381,162.76 1,149,121,193.81
Net cash generated from/used in operating activities -440,145,436.90 648,395,985.09
II Cash flows from investing activities:
Proceeds from the disposal of investments
48
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Investment income 294,040,566.23 1,213,162,199.85
Net proceeds from the disposal of fixed assets, intangible
3,857,701.37 350,616.31
assets and other long-term assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 297,898,267.60 1,213,512,816.16
Payments for the acquisition and construction of fixed assets,
1,320,554.12 12,506,369.28
intangible assets and other long-term assets
Payments for the acquisition of investments
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 1,320,554.12 12,506,369.28
Net cash generated from/used in investing activities 296,577,713.48 1,201,006,446.88
III Cash flows from financing activities:
Capital contributions received
Borrowings received
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings
Interest and dividends paid 10,588,428,688.24
Cash used in other financing activities 447,300.00
Subtotal of cash used in financing activities 10,588,875,988.24
Net cash generated from/used in financing activities -10,588,875,988.24
IV Effect of foreign exchange rate changes on cash and cash
equivalents
V Net increase in cash and cash equivalents -143,567,723.42 -8,739,473,556.27
Add: Cash and cash equivalents, beginning of the period 58,965,084,165.81 49,975,638,860.17
VI Cash and cash equivalents, end of the period 58,821,516,442.39 41,236,165,303.90
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
7. Consolidated Statements of Changes in Owners’ Equity
H1 2024 Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Other equity
Le
instruments Oth
ss:
Pe er
Tr
Item rp com Spe Gen
Pre ea Ot Non-controlling
preh cific eral interests Total owners’ equity
Share capital et Capital reserves Surplus reserves Retained earnings Subtotal
fere su he
ua Ot ensi rese rese
nce ry r
l her ve rve rve
sha sh
bo inco
res ar
nd me
es
s
I Balance as
at the end of 3,881,608,005.00 2,682,647,086.15 33,588,553,502.81 89,405,432,446.55 129,558,241,040.51 2,791,132,146.66 132,349,373,187.17
the prior year
Add:
Adjustments
for changes
in accounting
policies
Adjustments
for correction
of previous
errors
Other
II Balance as
at the
3,881,608,005.00 2,682,647,086.15 33,588,553,502.81 89,405,432,446.55 129,558,241,040.51 2,791,132,146.66 132,349,373,187.17
beginning of
the year
III Increase/
929,720,145.52 929,720,145.52 769,701,076.35 1,699,421,221.87
decrease in
50
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
the period (“-
” for
decrease)
(I) Total
comprehensi 19,056,829,528.87 19,056,829,528.87 769,701,076.35 19,826,530,605.22
ve income
(II) Capital
increase and
reduction by
owners
1. Ordinary
share
increase by
owners
2. Capital
increase by
holders of
other equity
instruments
3. Share-
based
payments
recognized in
owners’
equity
4. Other
(III) Profit
-18,127,109,383.35 -18,127,109,383.35 -18,127,109,383.35
distribution
1.
Appropriated
to surplus
reserves
2.
Appropriated
to general
reserve
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
3. Distributed
to owners (or -18,127,109,383.35 -18,127,109,383.35 -18,127,109,383.35
shareholders)
4. Other
(IV)
Transfers
within
owners’
equity
1. Increase in
capital (or
share capital)
from capital
reserves
2. Increase in
capital (or
share capital)
from surplus
reserves
3. Surplus
reserves used
to offset loss
4. Changes in
defined
benefit
schemes
transferred to
retained
earnings
5. Other
comprehensi
ve income
transferred to
retained
earnings
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
6. Other
(V) Specific
reserve
1. Increase in
the period
2. Used in
the period
(VI) Other
IV Balance
as at the end 3,881,608,005.00 2,682,647,086.15 33,588,553,502.81 90,335,152,592.07 130,487,961,186.03 3,560,833,223.01 134,048,794,409.04
of the period
H1 2023 Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity Ot
instruments her
Les
Pe co Sp
s:
Item rp mp eci Gene
Tre Non-controlling
Pref Total owners’ equity
et reh fic ral Ot interests
Share capital eren Capital reserves asur Surplus reserves Retained earnings Subtotal
ua Ot ens res reser her
ce y
l her ive erv ve
shar shar
bo inc e
es es
nd om
s e
I Balance as
at the end of
3,881,608,005.00 2,682,647,086.15 28,432,198,524.98 79,028,605,172.04 114,025,058,788.17 2,659,130,827.92 116,684,189,616.09
the prior
year
Add:
Adjustment
283,842.40 2,554,581.61 2,838,424.01 2,838,424.01
s for
changes in
53
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
accounting
policies
Adjustment
s for
correction
of previous
errors
Other
II Balance
as at the
3,881,608,005.00 2,682,647,086.15 28,432,482,367.38 79,031,159,753.65 114,027,897,212.18 2,659,130,827.92 116,687,028,040.10
beginning
of the year
III Increase/
decrease in
the period 2,356,467,350.21 2,356,467,350.21 751,415,113.01 3,107,882,463.22
(“-” for
decrease)
(I) Total
comprehens 17,036,708,791.18 17,036,708,791.18 755,825,113.01 17,792,533,904.19
ive income
(II) Capital
increase and
reduction
by owners
1. Ordinary
share
increase by
owners
2. Capital
increase by
holders of
other equity
instruments
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
3. Share-
based
payments
recognized
in owners’
equity
4. Other
(III) Profit
-14,680,241,440.97 -14,680,241,440.97 -4,410,000.00 -14,684,651,440.97
distribution
1.
Appropriate
d to surplus
reserves
2.
Appropriate
d to general
reserve
3.
Distributed
to owners
-14,680,241,440.97 -14,680,241,440.97 -4,410,000.00 -14,684,651,440.97
(or
shareholder
s)
4. Other
(IV)
Transfers
within
owners’
equity
1. Increase
in capital
(or share
capital)
from capital
reserves
2. Increase
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
in capital
(or share
capital)
from
surplus
reserves
3. Surplus
reserves
used to
offset loss
4. Changes
in defined
benefit
schemes
transferred
to retained
earnings
5. Other
comprehens
ive income
transferred
to retained
earnings
6. Other
(V) Specific
reserve
1. Increase
in the
period
2. Used in
the period
(VI) Other
IV Balance
as at the end
3,881,608,005.00 2,682,647,086.15 28,432,482,367.38 81,387,627,103.86 116,384,364,562.39 3,410,545,940.93 119,794,910,503.32
of the
period
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024 Unit: RMB
H1 2024
Other equity Other
Less:
instruments comp Speci
Item Treas
Prefer rehen fic Othe
Share capital Perpetu Capital reserves ury Surplus reserves Retained earnings Total owners’ equity
ence Ot sive reser r
al share
share her inco ve
bonds s
s me
I Balance as at the end of the prior year 3,881,608,005.00 2,682,647,086.15 15,508,769,954.04 58,190,914,311.61 80,263,939,356.80
Add: Adjustments for changes in
accounting policies
Adjustments for correction of
previous errors
Other
II Balance as at the beginning of the year 3,881,608,005.00 2,682,647,086.15 15,508,769,954.04 58,190,914,311.61 80,263,939,356.80
III Increase/ decrease in the period (“-”
-17,561,131,768.74 -17,561,131,768.74
for decrease)
(I) Total comprehensive income 565,977,614.61 565,977,614.61
(II) Capital increase and reduction by
owners
1. Ordinary share increase by owners
2. Capital increase by holders of other
equity instruments
3. Share-based payments recognized in
owners’ equity
4. Other
(III) Profit distribution -18,127,109,383.35 -18,127,109,383.35
1. Appropriated to surplus reserves
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
2. Distributed to owners (or shareholders) -18,127,109,383.35 -18,127,109,383.35
3. Other
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital)
from capital reserves
2. Increase in capital (or share capital)
from surplus reserves
3. Surplus reserves used to offset loss
4. Changes in defined benefit schemes
transferred to retained earnings
5. Other comprehensive income
transferred to retained earnings
6. Other
(V) Specific reserve
1. Increase in the period
2. Used in the period
(VI) Other
IV Balance as at the end of the period 3,881,608,005.00 2,682,647,086.15 15,508,769,954.04 40,629,782,542.87 62,702,807,588.06
H1 2023 Unit: RMB
H1 2023
Other equity Other
Less:
instruments comp Speci
Item Treas
Prefe Perpe rehen fic Ot
Share capital Capital reserves ury Surplus reserves Retained earnings Total owners’ equity
rence tual Ot sive reser her
share
share bond her inco ve
s
s s me
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
I Balance as at the end of the prior year 3,881,608,005.00 2,682,647,086.15 13,295,638,080.20 52,952,968,888.03 72,812,862,059.38
Add: Adjustments for changes in
-19,442.18 -174,979.59 -194,421.77
accounting policies
Adjustments for correction of
previous errors
Other
II Balance as at the beginning of the year 3,881,608,005.00 2,682,647,086.15 13,295,618,638.02 52,952,793,908.44 72,812,667,637.61
III Increase/ decrease in the period (“-”
-14,184,844,252.95 -14,184,844,252.95
for decrease)
(I) Total comprehensive income 495,397,188.02 495,397,188.02
(II) Capital increase and reduction by
owners
1. Ordinary share increase by owners
2. Capital increase by holders of other
equity instruments
3. Share-based payments recognized in
owners’ equity
4. Other
(III) Profit distribution -14,680,241,440.97 -14,680,241,440.97
1. Appropriated to surplus reserves
2. Distributed to owners (or shareholders) -14,680,241,440.97 -14,680,241,440.97
3. Other
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital)
from capital reserves
2. Increase in capital (or share capital)
from surplus reserves
3. Surplus reserves used to offset loss
4. Changes in defined benefit schemes
transferred to retained earnings
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
5. Other comprehensive income
transferred to retained earnings
6. Other
(V) Specific reserve
1. Increase in the period
2. Used in the period
(VI) Other
IV Balance as at the end of the period 3,881,608,005.00 2,682,647,086.15 13,295,618,638.02 38,767,949,655.49 58,627,823,384.66
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
III Company Profile
1. Company history
Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company") is a company limited by shares
established by Sichuan Yibin Wuliangye Distillery through fund raising on 19 August 1997 with the approval of
Document CFH (1997) No. 295 issued by the People's Government of Sichuan Province. The Company is
principally engaged in the production and sales of "Wuliangye"-branded Baijiu products and other Baijiu series,
with a registered capital of RMB3,881.6080 million and registered address: 150 Minjiang West Road, Cuiping
District, Yibin City, Sichuan Province, China.
The Company issued 80 million common shares (in RMB) on-line by fixed price offering at Shenzhen Stock
Exchange on 27 April 1998. According to the resolution of the extraordinary general meeting of Shareholders in
September 1999, the Company, based on the total share capital of 320 million shares on 30 June 1999, transferred
capital reserve to increase share capital, increasing five shares for every ten shares and the total share capital after
the conversion was changed to 480 million shares. The Company placed 31.2 million common shares (in RMB) to
the original shareholders as approved by Document ZH.J.G.S.Z. [2001] No. 6 issued by the China Securities
Regulatory Commission. The total share capital after the placement was 511.2 million shares. In August 2001, the
Company implemented the interim distribution plan 2001 and issued four bonus shares and increased three shares
for every ten shares by transferring capital reserve to share capital, with 357.84 million bonus shares and shares
transferred from capital reserve in total. The total share capital after the issuance and translation was 869.04
million shares. In April 2002, the Company implemented the distribution plan 2001 and issued one bonus shares,
increased two shares by transferring capital reserve to share capital, and distributed RMB0.25 (tax inclusive) in
cash for every ten shares, with 260.712 million bonus shares in total. The total share capital after the issuance and
translation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan 2002 and
increased two shares for every ten shares by transferring capital reserve to share capital for all shareholders,
increasing the share capital by 225.9504 million shares. The total share capital after the translation was
1,355.7024 million shares. In April 2004, the Company implemented the distribution plan 2003 and issued eight
bonus shares and increased two shares by transferring capital reserve to share capital for every ten shares, with
1,355.7024 million bonus shares in total. The total share capital after the issuance and translation was 2,711.4048
million shares.
On 31 March 2006, the Company carried out the equity division reform and the shareholding structure after
the reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the total
share capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 million
shares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained at
2,711.4048 million share.
In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares and
distributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total.
The total share capital after the issuance and distribution was 3,795.96672 million shares. On 2 April 2008, shares
for state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and became
2,128.3714 million shares, taking up 56.07% of the total share capital. Other shareholders held 1,667.5954 million
shares, taking up 43.93% of the total share capital.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye Yibin
Co., Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province
(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders of
Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the State
Council (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as Yibin
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Development Holding Group Co., Ltd. in 2021) transferred 761,823,343 shares held by it in the Company to
Sichuan Yibin Wuliangye Group Co., Ltd. for free on 10 October 2012. After this free transfer of shares, Yibin
Development Holding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was
the first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07% shares
of the Company (i.e. 791,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.
(Y.G.Z.W. [2016] No. 32), the State-owned Assets Supervision and Administration Commission of the People’s
Government of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to Yibin
Development Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the change of
shares held by both parties in the Company, without changing the controlling shareholder and actual controller of
the Company.
According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting of
Shareholders 2015, the 19th meeting of the 5th Board of Directors, the 24th meeting of the 5th Board of Directors,
and annual general meeting of Shareholders 2016 of the Company and as approved by the License ZH.J.X.K.
[2017] No. 1910 issued by the China Securities Regulatory Commission, the Company issued 85,641,285 shares
by non-public offering by means of targeted issue on 12 April 2018. The total share capital after the issuance was
3,881.608 million shares, including 2128.3714 million shares for state-owned legal person, taking up 54.83% of
the total share capital, and 1,753.2366 million shares for other shareholders, taking up 45.17% of the total share
capital.
According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd. (Y.G.Z.W.
[2020] No. 157), issued by The State-owned Assets Supervision and Administration Commission of the People’s
Government of Yibin City, the transfer was approved in principle. On 24 August 2020, Yibin Development
Holding Group Co., Ltd. transferred 30,000,000 shares held by it in the Company to Sichuan Yibin Wuliangye
Group Co., Ltd. for free. After this transfer of shares, Yibin Development Holding Group Co., Ltd. still held 34.43%
shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of the Company;
Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343 shares), was
the second majority shareholder of the Company. This transfer of shares did not change the controlling
shareholder and actual controller of the Company.
Sichuan Yibin Wuliangye Group Co., Ltd. has, during the period from 14 December 2023 to the close of
trading on 12 June 2024, cumulatively increased its shareholding in the Company by 3,406,668 shares (or 0.09%
of the Company's current total share capital of 3,881,608,005 shares) through the trading system of the Shenzhen
Stock Exchange by way of centralised bidding transactions with an amount of RMB500.0016 million. Upon
completion of the implementation of the shareholding increase plan, Yibin Development Holding Group Co., Ltd.
still holds a 34.43% interest in the Company (i.e. 1,336,548,020 shares), being the largest shareholder of the
Company; and Sichuan Yibin Wuliangye Group Co., Ltd. holds a 20.49% interest in the Company (i.e.
795,230,011 shares), being the second largest shareholder of the Company. Therefore, the controlling shareholder
and the actual controller of the Company have remained unchanged.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage production industry and its business scope is: Production and
operation of liquor products and relevant auxiliary products (bottle caps, trademarks, logos and packaging
products). Its primary products are "Wuliangye"-branded Baijiu products and other Baijiu series.
3. Approval of financial statements
These financial statements have been reviewed and approved by General Meeting of Shareholders of the
Company on 27 August 2024.
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IV Preparation Basis for Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of going concern and the recognition and
measurement are made at actual transactions and matters in accordance with the Accounting Standards for
Business Enterprises-Basic Standards issued by the Ministry of Finance and the specific Accounting Standards
for Business Enterprise, Guidelines for Application of Accounting Standards for Business Enterprises,
Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafter referred
to as “Accounting Standards for Business Enterprise”), combining with the Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports
(2023 revision) issued by China Securities Regulatory Commission on this basis.
2. Going concern
The Company has the ability of going concern for at least 12 months from the end of the Reporting Period,
and there is no major event affecting the ability of going concern.
V Significant Accounting Policies and Accounting Estimates
The Company is subject to the disclosure requirements for the food and wine & liquor production industry in
Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
Specific accounting policies and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimates formulated by
the Company according to the actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The Company states that the financial statements prepared comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company's financial position, operating
results, cash flows and other relevant information.
2. Accounting period
The accounting period of the Company is from 1 January to 31 December of each calendar year.
3. Operating cycle
The Company’s operating cycle is 12 months.
4. Bookkeeping base currency
RMB is used as the bookkeeping base currency and reporting currency of the Company.
5. Methods for determining materiality standards and selection criteria:
Applicable □ Not applicable
Item Significance standard
Significant receivables withdrawal of bad The provision separately accrued amount accounts for over 10% of the total bad
debt provision separately accrued debt provision for various receivables and exceeds RMB40 million.
Significant bad debt provision recovered or The separately accrued recovery or reversal amount accounts for over 10% of the
reversed in accounts receivables total receivables and exceeds RMB40 million.
The separately accrued write-off amount accounts for over 10% of the total bad
Write-off of significant accounts receivable
debt provision for various receivables and exceeds RMB40 million.
The separately accrued investment budget for construction in progress exceeds
Significant construction in progress
RMB1 billion.
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Exceeds 10% of the total budget for existing research and development projects,
Significant externally purchased research and
with the amount of externally purchased research and development projects
development projects
exceeding RMB40 million.
Significant capitalised research and Exceeds 10% of the total budget for existing research and development projects,
development projects with the capitalisation amount for the current period exceeding RMB40 million.
Significant prepayments, accounts payable, Accounts aged over 1 year account for over 10% of the corresponding items in the
and other accounts payable consolidated financial statements and exceed RMB1 billion.
Significant advances received and contract Accounts aged over 1 year account for over 10% of the corresponding items in the
liabilities consolidated financial statements and exceed RMB1 billion.
Individual investment cash flows account for over 10% of the total cash flows in
Significant investment projects
or out of investment activities, exceeding RMB10 billion.
Minority shareholders hold 5% or more equity, with total assets, net assets,
Significant non-wholly-owned subsidiary operating income, and net profit accounting for over 10% of the corresponding
items in the consolidated financial statements.
Significant joint ventures or associated The long-term equity investment amount accounts for over 1% of the total assets
enterprises in the consolidated financial statements.
6. Accounting methods for business combinations involving enterprises under and not under the common
control
(1) Business combination involving enterprises under the common control
The assets and liabilities acquired by the combining party through business combination involving
enterprises under the common control are measured at the share of owners' equity of the combined party in the
carrying value on consolidated financial statements of the final controlling party on the combination date. The
difference between the carrying value of the net assets obtained by the combining party and the carrying value of
consideration paid for the combination (or total par value of the shares issued) is adjusted against share premium
in the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall be
adjusted. All the direct costs incurred by the combining party for the business combination shall be included in
current profit/loss when incurred.
(2) Business combination involving enterprises not under the common control
In case of business combination involving enterprises not under the common control, the combination costs
shall be the fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on the
date of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the common control achieved through step-by-
step implementation of multiple transactions, related accounting treatment shall be carried out by distinguishing
individual financial statements from consolidated financial statements:
a) In the individual financial statements, the sum of carrying value of the equity investment held in the
acquiree prior to the date of acquisition and the cost of the new investment on the date of acquisition shall be
taken as the initial cost of such investment; where the equity held in the acquiree prior to the date of acquisition
involves other comprehensive income, the other comprehensive income related to such investment shall be
transferred to current investment income.
b) In the consolidated financial statements, the equity held in the acquiree prior to the date of acquisition
shall be re-measured at the fair value of such equity on the date of acquisition, and the difference between its fair
value and its carrying value shall be included in the current investment income; where the equity held in the
acquiree prior to the date of acquisition involves other comprehensive income, the other comprehensive income
related to such investment shall be transferred to current investment income on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and other administrative
expenses incurred by the acquirer for the business combination shall be included in current profit/loss; the
transaction expenses for issuing equity securities or debt securities by the acquirer as consideration of the
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combination shall be included in the initial recognition amount of the equity securities or debt securities.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the business
combination involving enterprises not under the common control shall be measured at the fair value on the date of
acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's net
identifiable assets obtained in the combination, the difference shall be recognized as goodwill. Where the
combination cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assets
obtained in the combination, the acquirer shall first recheck the fair values of the acquiree's identifiable assets,
liabilities and contingent liabilities obtained in the combination and the combination cost. Where the combination
cost is still less than the acquirer's interest in the fair value of the acquiree's net identifiable assets obtained in the
combination, the difference shall be included in the current profit/loss.
7. Judgement criteria for control and methods for preparing consolidated financial statements
(1) Judgement criteria for control
Control means that an investor has the power over the invested company, gets variable return by
participating in related activities of the invested company and has the ability to influence the amount of the return
by its power over the invested company. The Company will judge whether these entities have been controlled by
the investee based on its comprehensive consideration of relevant facts and circumstances. Should any changes in
such facts and circumstances alter the elements defining control, a reassessment is promptly conducted. Relevant
facts and circumstances mainly include: a) the purpose of the investee's establishment; b) the investee's activities
and how decisions regarding them are made; c) whether the rights held by the investor currently enable it to
dominate the investee's activities; d) whether the investor receives variable returns from participating in the
investee's activities; e) whether the investor has the ability to use its power over the investee to affect the amount
of its returns; f) the relationship between the investor and other parties.
(2) Methods for preparing consolidated financial statements
The scope of consolidated financial statements is determined on the basis of control, including the Company
and the subsidiaries under its control.
The Company as the parent shall prepare the consolidated financial statements based on its financial
statements and those of its subsidiaries and according to other relevant information. The share of the subsidiaries
in current profit/loss attributable to non-controlling interests shall be presented in the consolidated income
statement as "net profit attributable to non-controlling interests" under the net profit. The share in current
comprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented in
the consolidated income statement as "total comprehensive income attributable to non-controlling interests" under
the total other comprehensive income.
For subsidiaries and businesses of the Company as the parent added by business combination involving
enterprises under the common control during the Reporting Period, the revenue, expenses, and profits of such
subsidiaries and businesses from the beginning to the end of the period of business combination shall be recorded
into the consolidated income statement. Cash flows of such subsidiaries and businesses from the beginning to the
end of the year of business combination shall be recorded into the consolidated cash flow statement, and relevant
items of the statements shall be adjusted through comparison of the statements, as if the reporting entity after the
combination had been existing from control of the final controlling party after the combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not under the common
control or other means, the revenue, expenses, and profits of such subsidiaries and businesses from the date of
acquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash flows of
such subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into the
consolidated cash flow statement.
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When the Company as the parent disposes subsidiaries and businesses during the Reporting Period, the
revenue, expenses, and profits of such subsidiary and business from the beginning of the Reporting Period to the
date of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiary
and business from the beginning of the Reporting Period to the date of disposal shall be recorded into the
consolidated cash flow statement.
In the consolidated financial statements, when the Company as the parent acquires the equity held by the
minority shareholders in the subsidiary, the difference between the long-term equity investment obtained by
acquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated from
the date of acquisition or combination according to the new increase in shareholding proportion shall be adjusted
against the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writing
down, the retained earnings shall be adjusted.
8. Classification of joint arrangements and accounting methods for joint operations
Joint arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture and owns its
relevant assets and bears its relevant liabilities.
The Company shall recognize the following items related to share of interests and treat them according to
relevant Accounting Standards for Business Enterprises:
(1) Recognize assets solely held by the Company, and those jointly owned assets according to the
Company's share;
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilities according to
the Company's share;
(3) Recognize revenue from sales of the share that the Company enjoys in the output of joint operation;
(4) Recognize revenue from sales in the joint operation according to the Company's share;
(5) Recognize expenses solely incurred, and those incurred for joint operation according to the Company's
share.
Refer to the Note "long-term equity investment" for the accounting policy of the Company for investments
in joint venture.
9. Recognition criteria of cash and cash equivalents
Cash of the Company refers to cash on hand and deposits that can be used for payment at any time; cash
equivalents refer to the short-term (no more than three months since the date of acquisition) and highly liquid
investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk of
change in value.
10. Foreign currency transaction and foreign currency statement translation
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping base currency at the benchmark
exchange rate (which is generally refers to the middle rate of the current foreign exchange rate published by the
People's Bank of China, the same below) published by the People's Bank of China on the transaction date; at the
end of the period, foreign currency monetary items shall be translated at the ending spot exchange rate; non-
monetary items in foreign currency measured at historical cost shall be translated at the spot exchange rate
prevailing on the transaction date; monetary items in foreign currency and measured at the fair value shall be
translated at the spot exchange rate prevailing on the date of determining fair value. The difference arising from
translation shall be included in the construction cost of relevant fixed assets if in connection with acquisition and
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construction of the fixed assets which has not yet reached its intended condition for use; shall be included in
administrative expenses if incurring during the preparation period and not in connection with acquisition and
construction of fixed assets; and shall be included in current finance costs if incurring during the production and
operation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balance sheet date; all
items of owners' equity, except for retained earnings, shall be translated at the spot exchange rate at the time of
incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rate on the date
of transaction. Differences arising from the translation of foreign currency-denominated financial statements shall
be separately presented under the owners' equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated at the spot
exchange rate on the date of incurrence of the cash flows.
11. Financial instruments
Financial instruments refer to any contract that gives rise to a financial asset of a party and financial
liabilities or equity instruments of other parties.
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a party of the
financial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) The contractual
right to charge the cash flow of the financial assets is terminated; 2) The financial assets have been transferred and
the Company has transferred almost all risks and remuneration of the financial assets ownership to the transferee;
and 3) The financial assets have been transferred and the Company does neither transfer nor retain almost all risks
and remuneration of the financial assets ownership but gives up the control over the financial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (or part
thereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize the assets to
be received and the liabilities to be assumed on the trading day, or derecognize the assets sold on the trading day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets, the Company classified financial assets into the following categories: Financial assets
measured at the amortized cost, financial assets measured at fair value through other comprehensive income, and
financial assets measured at fair value through profit and loss of the current period.
1) Initial measurement of financial assets
Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets at fair value
through profit or loss, relevant transaction expenses shall be directly included in current profit or loss; for other
categories of financial assets, relevant transaction expenses shall be included in the initial recognition amount. For
notes receivable and accounts receivable arising from sales of goods or provision of service which do not include
or consider the compositions of major assets, the Company shall take the consideration expected to be received as
the initial recognition amount.
2) Subsequent measurement of financial assets
a) Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtaining contractual cash
flow, and the characteristics of contractual cash flow of such financial assets are basically the same as basic
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borrowing arrangement, namely the cash flow arising on a specific date, which are solely payments of principal
and interest on the principal amount outstanding. The Company subsequently measures such financial assets at
amortized costs by effective interest method. The gain or loss from their amortization, impairment and
derecognition shall be included in current profit or loss.
b) Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receiving contractual cash
flow as well as selling, and the characteristics of contractual cash flow of such financial assets are basically the
same as basic borrowing arrangement. Such financial assets shall be measured at fair value, with the changes
included in other comprehensive income, but the impairment loss, exchange gain or loss and interest income
calculated by effective interest method shall be included in current profit or loss. The accumulative gains or losses
which are previously included in other comprehensive income shall be transferred out from other comprehensive
income and included in current profit or loss upon derecognition.
c) Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instruments measured at
amortized cost and debt instruments at fair value through other comprehensive income as financial assets at fair
value through profit or loss. For eliminating or significantly reducing accounting mismatch upon initial
recognition, financial assets may be designated as financial assets at fair value through profit or loss. Such
financial assets shall be subsequently measured at fair value with all changes in fair value included in current
profit or loss. Only when the Company changes the business model of managing financial assets, shall relevant
financial assets being affected be reclassified.
d) Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financial assets at fair
value through other comprehensive income upon initial recognition. The Company includes relevant dividends
income in current profit or loss, with changes in fair value included in other comprehensive income. The
accumulative gains or losses which are previously included in other comprehensive income shall be transferred
from other comprehensive income to retained earnings instead of current profit or loss upon derecognition of such
financial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownership to the
transferee, the financial assets shall be derecognized; if the Company retains almost all risks and remuneration of
the financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financial assets
ownership but gives up the control over the financial assets, such financial assets shall be derecognized and the
rights or obligations arising or retained during the transfer shall be separately recognized as assets or liabilities; if
control over the financial assets is retained, relevant financial assets shall be continuously recognized according to
the extent of involving in the financial assets transferred and relevant liabilities shall be recognized accordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost and financial
liabilities at fair value through profit or loss upon initial recognition.
1) Initial measurement of financial liabilities
Any financial liability meeting any of the following conditions can be designated upon initial measurement
as the financial liabilities at fair value through profit or loss: a) This designation can eliminate or significantly
reduce accounting mismatch; b) According to the risk management or investment strategy of the Company as
stated in formal written document, the portfolio of financial liabilities or the portfolio of financial assets and
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financial liabilities is managed and evaluated on the basis of fair value, and reported to the key management on
the basis of this inside the Company; c) This financial liability contains embedded derivative to be separately split.
The Company shall determine classification of the financial liabilities upon initial recognition. For financial
liabilities at fair value through profit or loss, relevant transaction expenses shall be directly included in current
profit or loss; relevant transaction expenses of financial liabilities measured at amortized cost shall be included in
the initial recognition amount.
2) Subsequent measurement of financial liabilities
a) Financial liabilities measured at amortized cost: The Company subsequently measures such financial
liabilities at amortized costs by effective interest method. The gain or loss from derecognition or amortization
shall be included in current profit/loss.
b) Financial liabilities at fair value through profit or loss: Including held-for-trading financial liabilities
(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value through
profit or loss upon initial recognition.
Held-for-trading financial liabilities (including derivative instruments belonging to financial liabilities) shall
be subsequently measured at fair value (except for those concerning hedge accounting) with changes in fair value
included in current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fair value
arising from change of the credit risk of the Company shall be included in other comprehensive income;
accumulative gain or loss previously included in other comprehensive income shall be transferred from other
comprehensive income to retained earnings. Other changes in fair value shall be included in current profit or loss.
If previous accounting treatment may cause or expand the accounting mismatch in profit or loss, all gains or
losses of such financial liabilities (including the amount affected by change in credit risk of the Company) shall be
included in current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilities shall be
presented as net amount after offset in the balance sheet: The Company has the legal right to offset the recognized
amount and may exercise such legal right currently; the Company plans to settle with net amount or realize the
financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation in the active
market. For financial instruments without active market, the fair value shall be determined by valuation technique.
The Company shall adopt the valuation technique which is applicable in current situation and supported by
sufficient available data and other information for valuation. The Company shall choose inputs which are
consistent with the characteristics of assets or liabilities considered by the market participant in the transaction of
relevant assets and liabilities, and give priority to relevant observable inputs. If it is impossible or impractical to
obtain relevant observable inputs, the Company may use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortized cost,
investments in debt instruments at fair value through other comprehensive income, contract asset, lease
receivables, loan commitment and financial guarantee contracts based on the expected credit loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contract cash flows discounted by the Company at
the original effective interest rate and receivable according to the contract and all expected cash flows received,
namely the present value of all cash shortage. Among which, the financial assets purchased or originated that have
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suffered from credit impairment shall be discounted at the effective interest rate of the financial assets after credit
adjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during the expected lifetime
of financial instruments due to defaults.
12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (if the
expected lifetime of the financial instrument is less than 12 months, the expected lifetime) after the balance sheet
date due to possible defaults of financial instruments and is an integral part of the lifetime expected credit loss.
On the balance sheet date, the Company measured the expected credit loss of financial instruments at
different stages, respectively. If the credit risk of a financial instrument has not increased significantly since the
initial recognition, the financial instrument is in Stage 1, and the Company measures the provisions for loss
according to the 12-month expected credit loss; if the credit risk of a financial instrument has increased
significantly but the credit impairment has not yet occurred since the initial recognition, the financial instrument is
in Stage 2, and the Company measures the provisions for loss according to the lifetime expected credit losses; if
the financial instrument has suffered credit impairment since the initial recognition, it is in Stage 3, and the
Company measures the provisions for loss according to the lifetime expected credit loss.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly since the initial recognition, and the Company measures the provisions
for loss according to the 12-month expected credit loss.
For financial instruments with low credit risk in Stage 1 and Stage 2, the Company shall calculate the
interest income according to the carrying amount and effective interest rate before deducting the provisions for
impairment. For financial instruments in Stage 3, the Company shall calculate the interest income according to the
amortized cost and effective interest rate of the carrying amount after withdrawing the provisions for impairment.
For notes receivable and accounts receivable, regardless of whether there is major financing, the Company
shall always consider all reasonable and sound information, including prospective information, to estimate
expected credit loss of the above accounts receivable individually or in combination and adopt the simplified
model of expected credit loss. The Company shall always measure the provisions for loss according to the lifetime
expected credit loss.
1) Accounts receivable
a) At the end of the Reporting Period, if there is objective evidence indicating that impairment has occurred
in an account receivable, impairment test shall be carried out separately on it, such as accounts receivable in
dispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is
likely to fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debt
provisions shall be made based on the balance between the present value of future cash flows and its carrying
value.
b) If there is no objective evidence indicating that impairment or the credit loss of a single financial asset
cannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups by
characteristics of credit risk. The expected credit loss shall be calculated based on the combinations. Basis for
determining the combinations is as below:
Item Determination Basis
Bank acceptance bill group Bank acceptance bills
Letter of credit group Letters of credit
Commercial acceptance bills group Commercial acceptance bills
Accounts receivable group Receivables from related parties
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Accounts receivable group External customer
Other receivables group Receivables from and payables to related parties
Other receivables group Cash float, deposits and other receivables with low credit risk
Other receivables group Other amounts
For accounts receivable divided into risk groups, the Company, with reference to historical experience in
credit loss and based on current situation and forecast of future economic situation, shall prepare a comparison
table between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expected
credit losses. For other groups, the Company, with reference to historical experience in credit loss and based on
current situation and forecast of future economic situation, shall calculate the expected credit losses according to
the exposure at default and the 12-month or lifetime expected credit loss rate.
2) Debt investments and other debt investments
For debt investment and other debt investments, the Company shall calculate the expected credit loss
according to the nature of investment, types of counterparty and risk exposure, exposure at default and the 12-
month or lifetime expected credit loss rate.
The Company shall include the provision or reversal for loss made or included in current profit or loss. For
investment in debts instruments at fair value through other comprehensive income, the Company shall adjust other
comprehensive income when the impairment loss or gain is included in current profit or loss; for financial assets
measured at amortized cost, the provision for loss shall offset the carrying value of such financial assets.
12. Contract assets and contract liabilities
Under the contract between the Company and the customer, the Company shall be entitled to receive the
contract price for the goods transferred to the customer and for the related services provided, while at the same
time assuming the performance obligation to transfer the goods or services to the customer. When the customer
has actually paid the contract consideration or the enterprise has transferred goods or services to the customer
before such consideration is due and payable, the right to receive the consideration for the transferred goods or
services should be presented as a contract asset and recognized as an accounts receivable when the unconditional
right to receive is obtained; conversely, the Company's obligation to transfer goods or services to the customer for
the consideration received or receivable from the customer should be presented as a contract liability. Any
contract liability shall be recognised as revenue when the Company fulfils its obligation to transfer goods or
provide services to the customer. The Company presents contract asset and contract liability under the same
contract on a net basis.
13. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, packing materials, self-manufactured semi-finished products,
goods in process, inventory of goods, turnover materials, etc.
(2) Valuation method of inventory
Grains, raw coal and auxiliary materials for producing Baijiu are measured at actual cost and priced by
weighted average method when sent out; paper, printing ink, and auxiliary materials for producing printed matters
are measured at planned cost when purchased and sent out, with the difference between actual cost and planned
cost included in “materials cost difference”. The difference to be amortized by the materials sent out shall be
calculated by materials cost difference by category at the end of the month, so as to adjust cost of the materials
sent out into actual cost; goods in process, self-manufactured semi-finished products, and finished products are
measured at actual cost and priced by weighted average method when sent out.
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(3) Determination basis of net realizable value of inventory and methods for provision of inventory falling
price reserves
On the balance sheet date, the inventories shall be measured at the lower of cost and net realizable value. If
cost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shall
be made and included in current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion, estimated
selling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidence obtained and
after taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheet
events. Materials held for use in the production of inventories are measured at cost if the net realizable value of
the finished products in which they will be incorporated is higher than their cost; decline in the price of materials
indicates that the cost of the finished products exceeds their net realizable value, the materials are measured at net
realizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on the
contract price. If the quantities held by the Company is higher than the quantities of inventories specified in sales
contracts, the net realizable value of the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory is lower than
the cost.
1) Market price of the inventory declines continuously and there is no hope of rising in the foreseeable
future.
2) The cost of products produced by the Company with such raw materials is higher than the selling price of
the product.
3) The raw material inventory no longer satisfies the needs of new products due to upgrade of products, and
the market price of the raw material is lower than the book cost.
4) The market price declines gradually due to obsolete goods or service provided by the Company, or
change of market demands due to change of consumer preference.
5) Other circumstances which are sufficient to prove substantial impairment of the inventory.
The Company shall usually determine the falling price reserves of inventories on an item-by-item basis. For
inventories in large amount and low unit price, provision for inventory falling price reserves may be made by
category of the inventories. For item of inventories relating to a product line that is produced and marketed in the
same geographical area, have the same or similar end uses or purposes, and cannot be practically measured
separately from other items, provision for inventory falling price reserves may be made on an aggregate basis.
The Company shall determine the net realizable value of inventories on the balance sheet date. When factors
causing written-down of the inventory value disappear, the amount written down shall be recovered and will be
reversed from the provided inventory falling price reserves. The amount reversed will be included in current profit
or loss.
(4) Inventory system of inventories
The perpetual inventory system is adopted.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
14. Assets held for sale
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups that meet both of the following conditions as
assets held for sale: 1) Assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions; 2) sales are highly likely to occur, that is,
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the Company has already made a resolution on a sale plan and obtained a certain purchase commitment, and the
sale is expected to be completed within one year.
Non-current assets or disposal groups specifically obtained by the Company for resale shall be classified by
the Company as held-for-sale on the acquisition date when they meet the stipulated conditions of “expected to be
sold within one year” on the acquisition date, and may well satisfy the category of held-for-sale within a short
time (which is usually three months).
If the transaction between non-related parties fails to be completed within one year due to one of the
following circumstances which is over the control of the Company, and the Company still promises to sell the
non-current assets or disposal groups, the Company should continue to classify the non-current assets or disposal
groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions that lead to extension of the
sale. The Company has already acted on these conditions in a timely manner and it is expected to be able to
successfully deal with the conditions that led to the extension of the sale within one year after the conditions were
set; 2) due to unusual circumstances, the non-current assets or disposal groups held-for-sale failed to be sold
within one year. In the first year, the Company has taken necessary measures for these new conditions and the
assets or disposal groups meet the conditions of being held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When the Company initially measures or remeasures non-current assets or disposal groups held for sale on
the balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs, the
carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down
will be recognized as asset impairment loss and included in current profit and loss, and provision for impairment
of assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall be measured
at the lower of net amount of initial measurement amount minus sales cost and that of fair value minus selling
expenses, assuming they were not classified as held-for-sale during initial measurement. Except for non-current
assets or disposal groups acquired from business combination, the difference arising from taking the net amount
of fair value minus sales cost as initial measurement amount of the non-current assets or disposal groups shall be
included in current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the carrying value
of goodwill of the disposal groups shall be offset first, and then the carrying value of various non-current assets in
the disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or
amortization. Interest and other expenses of liabilities in the disposal group held for sale shall still be recognized.
2) Accounting treatment for reversal of asset impairment loss
If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheet
date minus the sale costs increases, the previous written-down amount will be restored and reversed from the asset
impairment loss recognized after the assets are classified as held-for-sale. The reversed amount shall be included
in the current profit or loss. The asset impairment loss recognized before being classified as held-for-sale shall not
be reversed.
If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet date
minus the sale costs increases, the previous written-down amount will be restored and reversed from the asset
impairment loss recognized for non-current assets after the assets are classified as held-for-sale. The reversed
amount shall be included in the current profit or loss. The carrying value of goodwill which had been written
down and the asset impairment loss recognized before non-current assets being classified as held-for-sale shall not
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be reversed.
For the recognized amount of asset impairment loss of the disposal groups held for sale which is reserved
subsequently, the carrying value shall be increased according to the proportion of carrying value of various non-
current assets (except for goodwill) in the disposal groups.
3) Accounting treatment for assets no longer classified as held-for-sale and derecognition
When a non-current assets or disposal group ceases to be classified as held-for-sale or a non-current asset is
removed from the disposal group held for sale due to failure in meeting the classification conditions for the
category of held-for-sale, it will be measured by one of the followings, whichever is lower: a) Amount after
adjusting the carrying value before being classified as held for sale according to the depreciation, amortization or
impairment that would have been recognized under the assumption that it was not classified as held for sale; b) the
recoverable amount.
The gain or loss not yet recognized shall be included in current profit or loss when recognizing the non-
current assets or disposal groups held for sale.
15. Long-term equity investments
(1) Determination of initial investment cost
a) Long-term equity investment from business combination
1) For the long-term equity investment in subsidiaries acquired through business combination involving
enterprises under the common control, the share of the carrying value of the owners' equity of the combined party
in the ultimate controller's consolidated financial statements on the date of combination shall be taken as the initial
investment cost of the long-term equity investment. The share premium of the capital reserve shall be adjusted
with the difference between the initial investment cost of the long-term equity investment and the carrying value
of the consideration paid. If the share premium of the capital reserve is insufficient for writing down, the retained
earnings shall be adjusted.
2) For long-term equity investments in subsidiaries acquired through business combinations involving
enterprises not under the common control, initial investment cost of the investment shall be the fair value of the
assets paid, liabilities incurred or assumed and equity securities issued by the Company in exchange for control
over the acquiree on the date of acquisition. For long-term equity investment in subsidiaries acquired through
business combination involving enterprises not under the common control implemented by multiple transactions,
the initial investment cost shall be the sum of the carrying value of equity investment held by the Company in the
acquiree before the date of acquisition and the cost of new investment on the date of acquisition.
b) For long-term equity investment acquired by cash payment, the initial investment cost shall be the
purchase price actually paid. The initial investment cost includes fees, taxes and other necessary expenses directly
related to acquire the long-term equity investment.
c) For long-term equity investment acquired by issuing equity securities, the initial investment cost of long-
term equity investment obtained by issuing of equity securities shall be the fair value of issuing the equity
securities.
d) The initial investment cost of long-term equity investment obtained by the exchange of non-monetary
assets shall be the fair value of the assets surrendered and relevant taxes payable if the exchange of non-monetary
assets has commercial nature and the fair value of the assets received or surrendered may be reliably measured,
unless there is conclusive evidence providing that fair value of the assets received is more reliable. For exchange
of non-monetary assets not meeting the above conditions, the initial investment cost shall be the carrying value of
the assets surrendered and relevant taxes payable.
e) The initial investment cost of a long-term equity investment obtained by debt restructuring shall be
recognized at the fair value.
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(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equity
investment calculated by cost method shall be priced at the initial investment cost. The cost of long-term equity
investment shall be adjusted when the investment is added or recovered. The cash dividends or profits declared to
be distributed by the invested company should be recognized as current investment income.
The long-term equity investment in associates and joint ventures is accounted by the equity method.
If the initial cost of long-term equity investment is greater than the fair value of identifiable net assets of the
invested company gained from the investment, the initial cost of long-term equity investment shall not be adjusted.
If the initial investment cost is smaller than the fair value of identifiable net assets of the invested company gained
from the investment, the difference shall be included in current profit or loss, and the cost of long-term equity
investments shall be adjusted.
After the Company obtains a long-term equity investment, it shall, in accordance with the share of the net
profits and other comprehensive income of the invested company to be enjoyed or shared, recognize the
investment income and other comprehensive income respectively, and adjust the carrying value of the long-term
equity investment. The Company shall, in accordance with the share in the profits or cash dividends declared and
distributed by the invested company, decrease the carrying value of the long-term equity investment accordingly.
As for other changes in owners' equity except for the net profit and loss, other comprehensive income and
profit distribution of the invested company, the Company shall adjust the carrying value of the long-term equity
investment and include it into the owners' equity. When the share of the net profit or loss of the invested company
is recognized, the net profit of the invested company shall be adjusted and recognized according to the fair value
of the net identifiable assets of the invested company when the investment is made.
For the transactions between the Company and associates and joint ventures, the unrealized gains and losses
of the internal transactions shall be offset by the proportion attributable to the Company, and the investment
income is recognized accordingly. Unrecorded internal transaction losses incurred between the Company and the
invested company shall be recognized in full if they fell under asset impairment losses.
The Company shall recognize the net losses of the invested company until the carrying value of the long-
term equity investment and other long-term rights and interests which substantially form the net investment made
to the invested company are reduced to zero, unless the Company has the obligation to undertake extra losses. If
the invested company realizes a net profit in the subsequent period, the Company shall restore the recognition of
its share in profits after its share in profits offsets the share in unrecognized losses.
If the accounting policy and accounting period adopted by the invested company are inconsistent with those
adopted by the Company, financial statements of the invested company shall be adjusted and investment income
and other comprehensive income shall be recognized according to the accounting policy and accounting period of
the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the carrying value and the actual price at
which the investment is obtained shall be included in current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investment originally
included in other comprehensive income shall be accounted for on the same basis as the invested company's direct
disposal of the relevant assets or liabilities when disposed. The owners' equity recognized as a result of changes in
other owners' equity other than net profit or loss, other comprehensive income, and profit distribution of the
invested company is carried forward proportionally into current profit or loss, except for other comprehensive
income arising from changes due to remeasurement of net liabilities or net assets of the defined benefit plan.
In case of loss of common control or significant influence on the invested company due to disposal of part of
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the equity investments, residual equity will be accounted by the recognition and measurement criterion for
financial instruments. The difference between the fair value on the date of losing common control or significant
influence and the carrying value shall be included in current profit or loss. Other comprehensive income
recognized due to accounting of the original equity investment by equity method shall be accounted for on the
same basis as the invested company’s direct disposal of the relevant assets or liabilities when stopping using
equity method. Owner’s equity recognized due to other changes in other owners’ equity other than the net profit
or loss, other comprehensive income and profit distribution of the invested company will all be carried forward
into current profit or loss when stop using equity method.
If the Company disposes of part of the equity investment and loses control over the invested company, and if
the remaining equity after disposal can implement joint control or exert significant influence on the invested
company, it shall be accounted for using the equity method when the individual financial statements are prepared,
and the equity shall be adjusted as if the remaining equity had been accounted for using the equity method since
acquired; if the remaining equity after disposal cannot implement joint control or exert significant influence on the
invested company, it shall be subject to accounting treatment in accordance with the relevant provisions of the
criteria for recognition and measurement of financial instruments. The difference between the fair value and the
carrying value on the date of losing control shall be included in the current profit or loss.
If the disposed equities are acquired by the business combination due to the reasons such as additional
investment, the remaining equities after the disposal shall be calculated based on the cost method or equity
method in preparing the individual financial statements, and other comprehensive income and other owners'
equity recognized because of the equity method adopted for the calculation of the equity investment held prior to
the date of acquisition are carried forward in proportion; if the remaining equities after the disposal shall be
changed to be accounted in accordance with the recognition and measurement criterion for financial instruments,
other comprehensive income and other owners' equity shall be carried forward in full.
(4) Determination basis of common control and significant influence on the invested company
Common control means common control over an arrangement according to relevant provisions, and the
decision-making for relevant activities of such arrangement needs unanimous agreement of all participants sharing
the control.
Significant influence means having the power to participate in decision-making of the financial and
operating policies of the invested company, but not the power to control or jointly control the formulation of these
policies together with other parties.
16. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets which are held for producing goods, providing services, renting or
operation and management and with service life of more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and other
expenditures incurred before and for making the fixed assets reach its intended condition for use directly
attributable to such assets.
Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and for
making the fixed assets reach its intended condition for use.
Book value of fixed assets invested by investors shall be the value recognized by the investors.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting the
recognition conditions for fixed assets, and shall be included in current profit or loss if not meeting the
recognition conditions for fixed assets.
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(2) Depreciation method
Category Depreciation Method Depreciation Life Residual Rate Yearly Depreciation Rate
Tenements and Buildings Straight-line method 25-30 years 3%-5% 3.17-3.88%
General equipment Straight-line method 10-12 years 3%-5% 7.92-9.70%
Specialised equipment Straight-line method eight years 3%-5% 11.18-12.13%
Transport equipment Straight-line method six years 3%-5% 15.83-16.17%
Other equipment Straight-line method six years 3%-5% 15.83-16.17%
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line
method (the straight-line depreciation) from the second month after they reach their intended serviceable
condition.
17. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessary expenditures incurred
before the assets reach its intended condition for use.
(2) Standard and timing for transferring construction in progress to fixed assets
From the date when the construction in progress reaches the predetermined usable state, based on factors
such as the project budget, cost, or actual cost, it is transferred to fixed assets based on the estimated value and
depreciated according to the Company's fixed asset depreciation policy. Adjustment shall be made to the
originally and provisionally estimated value based on the actual cost after the completion settlement is handled,
but depreciation already provided shall not be adjusted.
18. Borrowing costs
(1) Recognition principles of borrowing costs:
Interest of borrowings, and amortization of discount or premium attributable to the acquisition and
construction or production of fixed assets, investment properties and inventories meeting the conditions of
capitalization period and capitalization amount should be capitalized and included in the cost of such assets; other
interest of borrowings, and amortization of discounts or premiums shall be included in expenses in current period.
The exchange differences incurred from special foreign currency borrowings for acquisition and construction or
production of fixed assets and investment properties shall be capitalized and included in the cost of such assets if
it is within the capitalization period. Auxiliary expenses for special borrowings, if incurred before the fixed assets
acquired or constructed reach the intended condition for use, shall be capitalized at the time of occurrence; other
auxiliary expenses shall be recognized as expenses in current period and included in current profit or loss.
(2) Capitalization period of borrowing costs:
a) Commencement of capitalization: Capitalization of borrowing interest, amortization of discount or
premium, and exchange differences shall be commenced when all the following conditions are met.
1) Asset expenditure has already occurred.
2) Borrowing costs have already occurred.
3) Acquisition and construction activities necessary to bring the assets to the intended condition for use have
already begun.
b) Suspension of capitalisation: Where the acquisition and construction of a fixed asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall
be suspended and the borrowing costs shall be recognized as current expenses until recommencement of the
acquisition and construction of the asset.
c) Termination of capitalization: When the fixed assets acquired and constructed reach the intended
condition for use, capitalization of the borrowing costs shall be terminated.
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(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be the amount of
interest expenses actually incurred in the current period less the interest income of the borrowings unused and
deposited in bank or the amount of investment income from temporary investment. Interest of general borrowings
to be capitalized should be calculated by multiplying the weighted average of asset disbursements of the excess of
accumulated asset disbursements over the special borrowings by the capitalization rate of used general borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.
19. Intangible assets
(1) Service life and the basis for its determination, estimation, amortisation methods or review procedures
Externally acquired intangible assets shall be measured at the actual cost when acquired and averagely
amortized during the expected service life since the month when the intangible assets is acquired; book value of
the self-developed intangible assets shall be the sum of the expenditures during the research and development
stage of internal research and development projects of the Company which are eligible for capitalization and the
expenditures incurred before reaching the intended condition for use, and be averagely amortized over the
expected service life since the month in which the intangible asset is ready for use.
Service life of intangible assets shall be analyzed and determined when acquired. Intangible assets with
limited service life shall be amortized over period during which they may bring economic interests; if the period
during which the intangible assets may bring economic benefit to the enterprise is unforeseeable, such intangible
assets shall be considered as intangible assets with uncertain service life and shall not be amortized.
Impairment test: At the end of each year, the Company shall recheck the service life and amortization
method of the intangible assets. Intangible assets with uncertain service life shall be subject to impairment test
every year whether there is any indication of impairment.
(2) Scope of research and development expenditures and related accounting treatment
The scope of research and development expenditures includes staff salaries for research and development
personnel, direct input costs, depreciation and amortisation expenses, and other expenses.
The expenditures of the Company’s internal research and development projects are divided into research
phase expenditures and development phase expenditures.
Research phase expenditures shall be included in current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets only when meeting
all of the following conditions, otherwise shall be included in current profit or loss when incurred:
a) It is technically feasible to complete this intangible assets so that it can be used or sold.
b) The Company has the intention to complete the intangible assets and use or sell them.
c) The way in which intangible assets generate economic benefits, including the ability to prove that the
products produced using the intangible assets exist in the market or the intangible assets themselves exist in the
market, and the intangible assets will be used internally, can prove their usefulness; sufficient technical, financial
resources and other resources support to complete the development of the intangible asset and the ability to use or
sell the intangible asset; the expenditure attributable to the development phase of the intangible asset can be
reliably measured.
20. Long-term asset impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress,
intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, an
impairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less than its
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carrying value according to the test, provision for impairment will be made at the difference and included in
impairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting the
disposal expenses and the present value of estimated future cash flow of the asset. The provision for impairment
of assets is calculated and made on an individual basis. If it is difficult for the Company to estimate the
recoverable amount of the individual asset, the recoverable amount of an asset group, to which the said asset
belongs, shall be determined. Asset group is the smallest asset group that can independently generate cash inflows.
For goodwill, impairment test shall be conducted at least at the end of each year. Impairment test shall be
carried out in combination with the relevant asset group or combination of asset group.
The carrying value of goodwill caused by business combination is amortized to relevant asset groups with a
reasonable method from the date of acquisition when the Company carries out impairment test on goodwill; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When
the carrying value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall be
evenly amortized according to the proportion of the fair value of each assets group or combination of assets
groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value
cannot be reliably measured, it should be amortized according to the proportion of the carrying value of each asset
group or combination of assets groups in the total carrying value of assets groups or combinations of assets groups.
When making an impairment test on the relevant assets groups or combination of assets groups containing
goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the
Company shall first conduct an impairment test on the assets groups or combinations of assets groups not
containing goodwill, calculate the recoverable amount and compare it with relevant carrying value to recognize
the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or
combinations of assets groups containing goodwill, and compare the carrying value of these assets groups or
combinations of assets groups (including the carrying value of the goodwill apportioned thereto) with the
recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups
is lower than the carrying value thereof, the Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.
21. Long-term prepaid expense
Long-term prepaid expense is recorded according to the actual amount incurred and amortized over the
benefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expense
item cannot benefit a later accounting period, the amortized value of the item that has not been amortized shall be
transferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement of fixed
assets under operating lease shall be amortized averagely within the benefit period.
22. Employee benefits
(1) Accounting treatment of short-term remuneration
Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within 12
months after the end of the year in which the employee provided relevant services.
During the accounting period when employees serve the Company, the actual short-term remuneration is
recognized as liabilities and included in current profit or loss or costs of relevant assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by the enterprise after
retirement from or termination of the labour relation with the enterprise in exchange for the service provided by
the employee. Post-employment benefits are divided into two types: Defined contribution plans and defined
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
benefit plans.
a) Defined contribution plan: Contribution which shall be made by the Company separately on the balance
sheet date in exchange for the service provided by the employee during the accounting period shall be recognized
as payroll liabilities and included in current profit or loss or relevant asset cost.
b) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method, the
benefit obligations arising from the defined benefit plan shall be attributable to the period in which the employee
provides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement of
the net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income and
shall not be reversed to profit or loss in subsequent accounting periods.
(3) Accounting treatment of dismissal benefits
Dismissal benefits refer to the compensation paid to the employee by the enterprise for termination of the
labour contract with the employee prior to expiration, or encouraging the employee to accept downsizing
voluntarily.
If the enterprise provides dismissal benefits, payroll liabilities arising from dismissal benefits shall be
recognized and included in current profit or loss on the earlier date of:
a) The date when the enterprise could not unilaterally withdraw the dismissal benefits which offered by the
plan or layoff proposal due to termination of the labour relation.
b) The date when the enterprise recognizes the cost or expense related to the reorganization related to
payment of the dismissal benefits.
(4) Accounting treatment of the other long-term employee welfare
Other long-term employee benefits refer to all payrolls except for short-term remuneration, post-
employment benefits, and dismissal benefits, including long-term paid absences, long-term disability benefits,
long-term profit sharing plan, etc.
The other long-term employee benefits provided by the enterprise shall be recognized and measured as net
liability or net asset of other long-term employee benefits according to relevant provisions of the defined benefit
plan, except for those meetings the conditions of defined contribution plan.
23. Provisions
(1) Recognition criteria for provisions
When obligations related to contingencies meet the following conditions, the Company shall recognize them
as provisions:
a) The obligation is the current obligation assumed by the Company.
b) The performance of this obligation may result in the outflow of economic benefits.
c) The amount of this obligation can be reliably measured.
(2) Measurement method of provisions
Considering the risks, uncertainties, and time value of money related to contingencies, the provisions shall
be initially measured at the best estimate of the required expenditure for the performance of current obligation. If
the time value of money is significant, the best estimate shall be determined after discounting relevant future cash
outflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjust the
carrying value to reflect current best estimate.
24. Revenue
(1) Recognition principles of revenues
Revenue is the total inflow of economic benefits arising from the Company's ordinary activities that would
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
result in an increase in shareholders' equity and are unrelated to capital contributions by shareholders.
The Company recognizes revenue when it has fulfilled its performance obligations under the contract, that is,
when the customer obtains control of the relevant goods. Obtaining control over related goods means being able to
dominate the use of the goods and obtain almost all economic benefits from them.
If the contract contains two or more performance obligations, the Company will allocate the transaction
price to each individual performance obligation according to the relative proportion of the individual selling price
of the goods or services promised under each individual performance obligation on the contract commencement
date, and measure the revenue according to the transaction price allocated to each individual performance
obligation.
Transaction price is the amount of consideration that the Company is expected to be received due to the
transfer of goods or services to customers, excluding the amount collected on behalf of third parties. In
determining the transaction price of a contract, if variable consideration exists, the Company will determine the
best estimate of the variable consideration based on the expected or most likely amount and include in the
transaction price in an amount not exceeding the amount that the accumulated recognized revenue will most likely
not be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financing
component in the contract, the Company will determine the transaction price according to the amount payable by
the customer in cash when obtaining the control right of the goods. The difference between the transaction price
and the contract consideration will be amortized by the effective interest rate method during the contract period. If
the interval between the transfer of control right and the payment price by the customer does not exceed one year,
the Company will not consider the financing component.
Performance obligations are fulfilled within a certain period if any of the following conditions is met;
otherwise, performance obligations are fulfilled at a certain point in time:
a) The customer acquires and consumes the economic benefits of the Company's performance at the same
time as the Company's performance;
b) The customer controls the goods under construction during the performance of the Company;
c) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect money for the accumulated performance that has been completed so far
during the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenue according
to the performance progress within that period, except that the performance progress cannot be reasonably
determined. The Company determines the performance progress of the services provided according to the input
method (or output method). When the performance progress cannot be reasonably determined, if the costs
incurred by the Company are expected to be compensated, the revenue shall be recognized according to the
amount of costs incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods. When judging whether the customer has acquired
control of goods or services, the Company will consider the following indications:
a) The Company has a present right to receive payment for the goods or services, i.e. the customer has a
present obligation to pay for the goods;
b) The Company has transferred legal ownership of the goods to the customer, i.e. the customer has legal
ownership of the goods;
c) The Company has physically transferred the goods to the customer, i.e. the customer has taken physical
possession of the goods;
d) The Company has transferred to the customer the principal risks and rewards of ownership of the goods,
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i.e., the customer has acquired the principal risks and rewards of ownership of the good;
e) The customer has accepted the goods.
(2) Recognition methods of revenues
a) Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goods to the
buyer according to the contract, and recognizes revenue after the buyer signs for it;
b) Recognition methods of revenues for direct sales model
Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyer and
receives payment or acquires the right to receive payment;
On-line sales; Revenue is recognized when the Company receives the payment transferred from the e-
commerce platform from the consumer.
25. Government subsidy
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by the Company and
used for acquisition or construction or for formation of long-term assets in other ways, including the financial
allocation for purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assets
and others.
The specific standard of the Company for classifying the government subsidies as asset-related subsidies:
government subsidies obtained by the Company and used for acquisition or construction or for formation of long-
term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Company classifies
the government subsidies as asset-related subsidies or income-related subsidies were as follows: Whether the
subsidies are used for acquisition or construction or for formation of long-term assets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Government subsidies, when
actually received, shall be recognized as deferred income and transferred equally to current profit or loss based on
the expected service life of the long-term assets when the long-term assets are available for use.
The asset-related government subsidies are recognized as deferred income, and included in current profit or
loss by stages based on the service life of the assets acquired and constructed. If the related asset is sold,
transferred, scrapped or damaged before the end of the service life, the deferred income balance not yet distributed
shall be transferred to the profits and losses of the period in which the assets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidies
Income-related government subsidies refer to all the government subsidies other than asset-related
government subsidies.
The specific standard of the Company for classifying the government subsidies as income-related subsidies:
All the government subsidies other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Government subsidies,
when actually received, shall be included in current profit or loss if used to compensate the relevant expenses or
losses of the Company in the subsequent period; included in current profit or loss directly when acquired if used
to compensate relevant expenses or losses incurred by the Company.
Income-related government subsidies used to compensate the relevant expenses or losses of the Company in
the subsequent period shall be recognized as deferred income when acquired; included in current profit or loss in
the period in which relevant expenses are recognized; those used to compensate relevant expenses or losses
incurred by the Company, shall be directly included in profit or loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be included in other incomes
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
or used to offset relevant costs and expenses according to the substance of the economic business. The
government subsidies irrelevant to the daily activities of the Company shall be included in non-operating revenue.
26. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognized according
to the difference (temporary difference) between the tax base and carrying value of the assets and liabilities.
Deductible losses that can be carried forward to the subsequent year to offset taxable income according to the tax
law shall be considered as temporary difference, and corresponding deferred income tax assets shall be recognized.
For temporary differences related to the initial recognition of goodwill, corresponding deferred income tax
liabilities shall not be recognized. For the temporary differences related to the initial recognition of the assets or
liabilities incurred in the transaction not for business combination that will not affect the accounting profits and
taxable income (or deductible losses), corresponding deferred income tax assets and deferred income tax liabilities
shall not be recognized. The deferred income tax assets and deferred income tax liabilities are measured on the
balance sheet date according to the applicable tax rate in the period of expected recovery of relevant assets or
liquidation of relevant liabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which the Company may
obtain for deducting deductible temporary differences, deductible losses and tax deduction. Deferred income tax
assets and deferred income tax liabilities arising from temporary differences related to the investment in
subsidiaries and associates shall be recognized. If the time of reversal of temporary differences can be controlled
by the Company and the temporary differences are likely to not be reversed in the foreseeable future, deferred
income tax assets and liabilities shall not be recognized.
27. Leases
From the effectiveness date of a contract, the Company assesses whether the contract is a lease or includes
any lease. If a party to the contract transfers the right allowing the control over the use of one or more assets that
have been identified within a certain period, in exchange for a consideration, such contract is a lease or includes a
lease.
(1) Accounting treatment of the Company as the lessee
On the commencement date of the lease term, except for short-term leases and leases of low-value assets
being adopted simplified treatment, the Company recognises right-of-use assets or lease liabilities for the lease.
Right-of-use assets shall be initially measured at costs, including: a) The initial measurement amount of the
lease liabilities; b) the lease payment paid on or before the commencement date of the lease term. If there is a
lease incentive, the amount related to the lease incentive taken should be deducted; c) the initial direct cost
incurred by the lessee; d) the estimated cost that the Company will use to pull down and remove the leasehold
property, and restore the site of the leasehold property or restore the leasehold property to the state agreed in the
lease clauses (excluding the costs incurred by inventories for production).
The lease liabilities shall be initially measured at the present value of the unpaid lease payment from the
commencement date of the lease term. When calculating the present value of lease payments, the Company uses
the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,
the Company’s incremental lending rate is used as the rate of discount.
After the commencement date of the lease term, the Company subsequently measures the right-of-use assets
at cost model, and the right-of-use assets are subject to depreciation by using the straight-line method. Meanwhile,
the interest expenses of the lease liabilities in each period of the lease term are calculated, and shall be included in
the profit or loss for the current period, unless otherwise stipulated to be included in underlying asset costs.
Variable lease payments that are not covered in the measurement of the lease liabilities are included in current
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
profit or loss when actually incurred, unless otherwise stipulated to be included in underlying asset costs.
For short-term leases within 12 months and leases of low-value assets, the Company chooses not to
recognise right-of-use assets and lease liabilities. The relevant lease expenditures are included in relevant asset
cost or the profit or loss for the current period in the straight-line method in each period of the lease term.
(2) Accounting treatment of leases with the Company as the lessor
a) Classification of lease
The Company classifies leases into finance leases and operating leases at the inception of leases. A finance
lease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, are
substantially transferred, regardless of whether the ownership is eventually transferred or not. An operating lease
refers to all leases other than finance leases.
b) Accounting treatment of financial lease
On the commencement date of the lease term, the Company recognises the finance lease receivables for the
finance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance lease
receivables, the sum of the unsecured residual value and the present value of the lease payments receivable not yet
received on the commencement date of the lease term discounted at the interest rate implicit in lease is the book
value of the finance lease receivables. The Company calculates and recognises the interest income in each period
within the lease term at a fixed interest rate implicit in the lease. The received variable lease payments that are not
included in the measurement of the net investment in the lease are included in profit or loss for the current period
when they are actually incurred.
c) Accounting treatment of operating lease
The Company recognises the lease payments receivable of the operating lease as rental earning in each
period within the lease term on a straight-line basis or according to other systematic and reasonable methods. The
initial direct costs related to the operating lease are capitalised, amortised within the lease term on the same basis
as the recognition of rental earning, and included in profit or loss for the current period. The received variable
lease payments related to the operating lease that are not included in the lease payments receivable are included in
profit or loss for the current period when they are actually incurred.
28. Changes to Significant Accounting Policies and Estimates
(1) Changes to Significant Accounting Policies
□ Applicable Not applicable
(2) Changes to Significant Accounting Estimates
□ Applicable Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First
Implementation of any New Accounting Standard Implemented since 2024
□ Applicable Not applicable
VI Taxes
1. Main taxes and tax rates
Tax Item Tax Basis Tax Rate
13% (paid after offsetting input
VAT Taxable sales revenue
tax)
Consumption tax Taxable price or ex-factory price 10%, 20%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 25%
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Note on disclosure of taxpayer applying different corporate income tax rates:
Name of taxpayer Income tax rate
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 15%
Sichuan Yibin Plastic Packaging Materials Company Limited 15%
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. 15%
Yibin Xinxing Packaging Co., Ltd. 20%
Sichuan Jiebeike Environmental Technology Co., Ltd. 20%
Sichuan Jinwuxin Technology Co., Ltd. 20%
2. Tax preference
(1) Value added tax (VAT)
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate of
social welfare enterprise "F.Q.ZH.Z. No. 51004121049" issued by the Department of Civil Affairs of Sichuan
Province. The Company, conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VAT
Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the State
Administration of Taxation (C.SH. [2016] No. 52), enjoys the drawback policy of value-added tax. Recoverable
value-added tax of each month = Number of disabled person employed by the taxpayer in current month x
quadruple of the minimum wage of current month. The amount of value-added tax refunded in the first half of
2024 was RMB36,539,560.00.
According to the Circular on Improving the Comprehensive Resource Utilisation VAT Policy (Circular No.
No. 40 of 2021 of the Ministry of Finance and the State Administration of Taxation), Sichuan Yibin Wuliangye
Environmental Protection Industry Co., Ltd. enjoys the 70% drawback policy of value-added tax for providing
comprehensive utilisation of resources for wastewater treatment. The amount of value-added tax refunded in the
first half of 2024 was RMB7,770,829.47.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials Company
Limited, and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to the
Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Corporate
Income Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of the
Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission)
has been filed with the Local Taxation Bureau of Yibin for preferential corporate income tax and pays the
corporate income tax at 15%.
Yibin Xinxing Packaging Co., Ltd., Sichuan Jiebeike Environmental Technology Co., Ltd., and Sichuan
Jinwuxin Technology Co., Ltd., comply with the provisions of the Announcement of the State Taxation
Administration and the Ministry of Finance on Further Supporting Small and Micro Enterprises and Individual
Industrial and Commercial Businesses through Relevant Tax and Fee Policies (Announcement No. 12 of 2023 of
the Ministry of Finance and the State Taxation Administration). They are eligible for a 25% reduction in the
calculation of taxable income for small and micro-profit enterprises, and they are subject to a 20% enterprise
income tax rate, continuing until 31 December 2027.
VII Notes to the Consolidated Financial Statements
1. Monetary assets
Unit: RMB
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Item Closing balance Opening balance
Cash on hand 4,855.27 42,156.81
Bank deposits 86,642,061,525.06 74,892,248,621.63
Other monetary assets 324,432,721.19 264,472,639.86
Deposits in Wuliangye Group Finance 41,748,342,979.22 40,299,537,492.34
Total 128,714,842,080.74 115,456,300,910.64
A liquor/wine production enterprise should disclose in detail whether there is any special interest
arrangement where the Company and any of its stakeholders have a joint account for funds, etc.
□ Applicable Not applicable
2. Notes receivable
(1) Notes receivable presented by category
Unit: RMB
Item Closing balance Opening balance
Letters of credit 3,650,281.25
Total 3,650,281.25
(2) Notes receivable by method of establishing allowance for doubtful account
Unit: RMB
Closing balance Opening balance
Allowance for Allowance for doubtful
Gross amount Gross amount
doubtful account account
As %
Category Carrying
As % of Allowanc of the
Am Carrying amount Allowance
the total e as % of Amo total Amou amount
Amount oun as % of the
gross the gross unt gross nt
t gross amount
amount amount amoun
t
Notes
receivable
for which
allowances
for doubtful
accounts
are
established
on an
individual
basis
Of
which:
Notes
receivable
for which
allowances
for doubtful
3,650,281.25 100.00% 3,650,281.25
accounts
are
established
on a
grouping
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
basis
Of
which:
Letters of
3,650,281.25 100.00% 3,650,281.25
credit
Total 3,650,281.25 100.00% 3,650,281.25
Allowances for doubtful notes receivable established using the general model of expected credit loss:
□ Applicable Not applicable
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
The Company had no allowances for doubtful accounts established, recovered or reversed in the current
period.
Significant recovered or reversed allowances for doubtful accounts in the current period:
□ Applicable Not applicable
(4) Notes receivable in pledge at the end of the current period
The Company had no notes receivable pledged by the Company as at the end of the period.
(5) Notes receivable endorsed or discounted by the Company at the end of the current period and not
expired yet on the balance sheet date
The Company had no notes receivable endorsed or discounted by the Company at the end of the period and
not expired yet on the balance sheet date.
(6) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
3. Accounts receivable
(1) Accounts receivable presented by category
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year (inclusive) 85,589,786.23 42,890,430.03
1 to 2 years 918,696.09 31,487.08
2 to 3 years 7,721.68 278,631.80
More than 3 years 5,808,416.56 6,233,545.71
3 to 4 years 278,697.80 66.00
4 to 5 years 280,471.24 473,121.61
More than 5 years 5,249,247.52 5,760,358.10
Total 92,324,620.56 49,434,094.62
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(2) Accounts receivable by method of establishing allowance for doubtful account
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross amount Gross amount
account account
Category Carrying Carrying
Allowance Allowance
As % of the amount As % of the amount
as % of the as % of the
Amount total gross Amount Amount total gross Amount
gross gross
amount amount
amount amount
Accounts
receivable
for which
allowances
for doubtful
3,477,979.92 3.77% 3,477,979.92 100.00% 3,477,979.92 7.04% 3,477,979.92 100.00%
accounts are
established
on an
individual
basis
Of which:
External
3,477,979.92 3.77% 3,477,979.92 100.00% 3,477,979.92 7.04% 3,477,979.92 100.00%
customers
Accounts
receivable
for which
allowances
for doubtful
88,846,640.64 96.23% 4,727,951.14 5.32% 84,118,689.50 45,956,114.70 92.96% 3,308,653.22 7.20% 42,647,461.48
accounts are
established
on a
grouping
basis
Of which:
External
63,695,534.79 68.99% 4,727,951.14 7.42% 58,967,583.65 27,090,348.48 54.80% 3,308,653.22 12.21% 23,781,695.26
customers
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Related
25,151,105.85 27.24% 25,151,105.85 18,865,766.22 38.16% 18,865,766.22
parties
Total 92,324,620.56 100.00% 8,205,931.06 8.89% 84,118,689.50 49,434,094.62 100.00% 6,786,633.14 13.73% 42,647,461.48
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Accounts receivable for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
Opening balance Closing balance
Entity Allowance for Allowance for Allowance
Reason for
Gross amount doubtful Gross amount doubtful as % of the
allowance
account account gross amount
Expected to be
Qu Liang 1,411,528.44 1,411,528.44 1,411,528.44 1,411,528.44 100.00%
unrecoverable
Beijing Junhui
Expected to be
Tianhong Trading 1,174,891.71 1,174,891.71 1,174,891.71 1,174,891.71 100.00%
unrecoverable
Co., Ltd.
Nanxi Daliangxin Expected to be
389,729.12 389,729.12 389,729.12 389,729.12 100.00%
Food Co., Ltd. unrecoverable
Sichuan Debo
Expected to be
Daily Commodity 294,230.65 294,230.65 294,230.65 294,230.65 100.00%
unrecoverable
Co., Ltd.
Gushi County Expected to be
207,600.00 207,600.00 207,600.00 207,600.00 100.00%
Yingjun Liquor unrecoverable
Total 3,477,979.92 3,477,979.92 3,477,979.92 3,477,979.92
Accounts receivable for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance for doubtful Allowance as % of the
Gross amount
account gross amount
Accounts receivable for which allowances
for doubtful accounts are established based 63,695,534.79 4,727,951.14 7.42%
on the external customer group
Accounts receivable for which allowances
for doubtful accounts are established based 25,151,105.85
on the related party group
Total 88,846,640.64 4,727,951.14
Allowances for doubtful accounts established using the general model of expected credit loss:
□ Applicable Not applicable
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
Changes in the current period
Opening Recover Ot
Category Closing balance
balance Established ed or Written off he
reversed rs
Accounts receivable for which
allowances for doubtful accounts
3,477,979.92 3,477,979.92
are established on an individual
basis
Accounts receivable for which
allowances for doubtful accounts
3,308,653.22 1,477,823.13 58,525.21 4,727,951.14
are established based on the
external customer group
Total 6,786,633.14 1,477,823.13 58,525.21 8,205,931.06
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Significant recovered or reversed allowances for doubtful accounts in the current period: The Company
had no significant recovered or reversed allowances for doubtful accounts in the current period.
(4) Accounts receivable actually written off in the current period
Unit: RMB
Item Amount written off
Accounts receivable actually written off 58,525.21
Significant accounts receivable written off: The Company had no significant accounts receivable written
off in the current period.
(5) Top five entities with respect to accounts receivable and contract assets
Unit: RMB
Closing balance of
As % of the
Closing Closing balance of allowances for
Closing balance closing balance
balance of accounts receivable doubtful accounts
Entity of accounts of total accounts
contract and contract assets and impairment
receivable receivable and
assets combined allowances for
contract assets
contract assets
Sichuan Kuanzhai Printing
39,761,659.90 39,761,659.90 43.07% 1,988,083.00
Co., Ltd.
Sichuan Putian Packaging
11,523,877.83 11,523,877.83 12.48%
Co., Ltd.
Chengdu Huayu Glass
6,482,321.07 6,482,321.07 7.02%
Manufacturing Co., Ltd.
Sichuan Tuopai Trading Co.,
4,174,392.78 4,174,392.78 4.52% 208,719.64
Ltd.
Chengdu PUTH Medical
2,537,100.00 2,537,100.00 2.75%
Technology Co., Ltd.
Total 64,479,351.58 64,479,351.58 69.84% 2,196,802.64
4. Receivables financing
(1) Receivables financing presented by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bills 19,576,430,505.90 14,086,450,565.79
Total 19,576,430,505.90 14,086,450,565.79
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
(2) Receivables financing by method of establishing allowance for doubtful account
Unit: RMB
Closing balance Opening balance
Allowance for Allowance for
Gross amount Gross amount
doubtful account doubtful account
Category Allowan Allowan
As % of Carrying amount As % of Carrying amount
ce as % ce as %
the total Amou the total
Amount of the Amount Amount of the
gross nt gross
gross gross
amount amount
amount amount
Receivables financing
for which allowances
for doubtful accounts
are established on an
individual basis
Of which:
Receivables financing
for which allowances
for doubtful accounts 19,576,430,505.90 100.00% 19,576,430,505.90 14,086,450,565.79 100.00% 14,086,450,565.79
are established on a
grouping basis
Of which:
Bank acceptance bills 19,576,430,505.90 100.00% 19,576,430,505.90 14,086,450,565.79 100.00% 14,086,450,565.79
Total 19,576,430,505.90 100.00% 19,576,430,505.90 14,086,450,565.79 100.00% 14,086,450,565.79
The Company had no receivables financing for which allowances for doubtful accounts are established on an individual basis as at the end of the current period.
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Receivables financing for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance for doubtful Allowance as % of the gross
Gross amount
account amount
Bank acceptance bills 19,576,430,505.90
Total 19,576,430,505.90
(3) Allowances for doubtful accounts established, recovered or reversed in the current period
The Company had no allowances for doubtful accounts established, recovered or reversed in the current
period.
(4) Receivables financing in pledge at the end of the current period
The Company had no receivables financing in pledge as at the end of the current period.
(5) Receivables financing endorsed or discounted by the Company at the end of the period and not
expired yet on the balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not yet derecognized at the end
Item
period of the period
Bank acceptance bills 1,987,564,924.54
Total 1,987,564,924.54
(6) Receivables financing actually written off at the end of the period
The Company had no receivables financing actually written off as at the end of the period.
5. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 51,547,943.32 39,624,933.74
Total 51,547,943.32 39,624,933.74
(1) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature Closing gross amount Opening gross amount
Cash float 12,240,682.52 2,277,566.82
Current account 1,567,659.40 1,510,890.62
Security deposits 37,256,195.33 38,602,390.27
Other advance money for others or
11,078,629.36 7,119,780.00
temporary payment
Total 62,143,166.61 49,510,627.71
2) Other receivables presented by aging
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year (inclusive) 41,652,300.09 31,302,289.55
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1 to 2 years 7,338,841.03 4,460,593.08
2 to 3 years 1,250,482.00 1,394,469.00
More than 3 years 11,901,543.49 12,353,276.08
3 to 4 years 1,054,607.12 1,069,474.75
4 to 5 years 1,089,285.45 2,768,887.33
More than 5 years 9,757,650.92 8,514,914.00
Total 62,143,166.61 49,510,627.71
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3) Other receivables by method of establishing allowance for doubtful account
Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Allowance for doubtful
Gross amount Allowance for doubtful account Gross amount
account
Category Carrying Carrying
Allowance Allowance
As % of the amount As % of the amount
as % of the as % of the
Amount total gross Amount Amount total gross Amount
gross gross
amount amount
amount amount
Other
receivables
for which
allowances
for doubtful
1,838.85 0.00% 1,838.85 100.00% 1,838.85 0.00% 1,838.85 100.00%
accounts are
established
on an
individual
basis
Of which:
External
1,838.85 0.00% 1,838.85 100.00% 1,838.85 0.00% 1,838.85 100.00%
customers
Other
receivables
for which
allowances
for doubtful
62,141,327.76 100.00% 10,593,384.44 17.05% 51,547,943.32 49,508,788.86 100.00% 9,883,855.12 19.96% 39,624,933.74
accounts are
established
on a
grouping
basis
Of which:
External 61,150,212.91 98.40% 10,593,384.44 17.32% 50,556,828.47 48,467,068.38 97.89% 9,883,855.12 20.39% 38,583,213.26
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customers
Related
991,114.85 1.59% 991,114.85 1,041,720.48 2.10% 1,041,720.48
parties
Total 62,143,166.61 100.00% 10,595,223.29 17.05% 51,547,943.32 49,510,627.71 100.00% 9,885,693.97 19.97% 39,624,933.74
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Other receivables for which allowances for doubtful accounts are established on an individual basis:
Unit: RMB
Opening balance Closing balance
Item Allowance for Allowance for Allowance
Reason for
Gross amount doubtful Gross amount doubtful as % of the
allowance
account account gross amount
Other receivables
for which
allowances for
Expected to be
doubtful accounts 1,838.85 1,838.85 1,838.85 1,838.85 100.00%
unrecoverable
are established on
an individual
basis
Total 1,838.85 1,838.85 1,838.85 1,838.85
Other receivables for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance for doubtful Allowance as % of
Gross amount
account the gross amount
Other receivables for which allowances for
doubtful accounts are established based on the 61,150,212.91 10,593,384.44 17.32%
external customer group
Other receivables for which allowances for
doubtful accounts are established based on the 991,114.85
related party group
Total 62,141,327.76 10,593,384.44
Allowances for doubtful accounts established using the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for doubtful 12-month Lifetime expected Lifetime expected credit Total
accounts expected credit credit loss (without loss (with credit
loss credit impairment) impairment)
Balance as at 1 January 2024 9,883,855.12 1,838.85 9,885,693.97
Balance as at 1 January 2024
was in the current period
- Transferred to Stage 2
- Transferred to Stage 3 -2,658.56 2,658.56 0.00
- Transferred back to Stage 2
- Transferred back to Stage 1
Established in the current period 712,187.88 712,187.88
Reversed in the current period
Charged off in the current period
Written off in the current period 2,658.56 2,658.56
Other changes
Balance as at 30 June 2024 10,593,384.44 1,838.85 10,595,223.29
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable Not applicable
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4) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
Changes in the current period
Category Opening balance Recover Charged off Closing balance
Established ed or or written Others
reversed off
Other receivables for which
allowances for doubtful
1,838.85 1,838.85
accounts are established on
an individual basis
Other receivables for which
allowances for doubtful
accounts are established 9,883,855.12 712,187.88 2,658.56 10,593,384.44
based on the credit risk
characteristic group
Total 9,885,693.97 712,187.88 2,658.56 10,595,223.29
5) Other receivables actually written off in the current period
Unit: RMB
Item Amount written off
Other receivables actually written off 2,658.56
Significant other receivables written off:
The Company had no significant other receivables written off in the current period.
6) Top five entities with respect to other receivables
Unit: RMB
As % of the
Closing balance
closing
Nature of of allowances
Entity Closing balance Aging balance of
account for doubtful
total other
accounts
receivables
Jiang'an County Finance Bureau’s escrow Security
10,000,000.00 Within 1year 16.09% 300,000.00
funds fiscal account deposit
Security
Yibin Zhongqi Natural Gas Co., Ltd. 8,010,000.00 Within 1year 12.89% 240,300.00
deposit
Yibin Cuiping District Housing and Urban- Security
5,000,000.00 Over 5 years 8.05% 4,000,000.00
Rural Development Bureau deposit
Other Within
China Mobile Communications Group
suspense 3,239,457.40 1year; 1-2 5.21% 119,652.15
Sichuan Co., Ltd. Yibin Branch
payments years
Sichuan Chengdu Railway International Security
2,054,331.00 1-2 years 3.31% 205,433.10
Business Travel Group Co., Ltd. deposit
Total 28,303,788.40 45.55% 4,865,385.25
6. Prepayments
(1) Prepayments presented by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount As % of total Amount As % of total
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prepayments prepayments
Within 1 year 137,652,593.47 85.57% 143,838,589.00 84.90%
1 to 2 years 5,848,367.08 3.64% 6,079,402.92 3.59%
2 to 3 years 3,251,500.91 2.02% 11,610,807.73 6.85%
More than 3 years 14,108,953.12 8.77% 7,896,945.50 4.66%
Total 160,861,414.58 169,425,745.15
(2) Top five entities with respect to prepayments
Unit: RMB
As % of the closing balance of total
Entity Closing balance
prepayments
Yibin PetroChina Kunlun Guoding Gas Co., Ltd. 32,910,000.00 20.46%
PetroChina Company Limited Southwest Chemical
22,182,897.59 13.79%
Sales Branch
Hand Enterprise Solutions Co., Ltd. 10,948,113.21 6.81%
Xiamen Yijianxing Industrial Co., Ltd. 8,221,213.22 5.11%
Zhejiang Pengyuan Supply Chain Management Co.,
6,255,070.00 3.89%
Ltd.
Total 80,517,294.02 50.05%
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7. Inventory
Indicate whether the Company is subject to the information disclosure requirements for the real estate sector.
No.
(1) Classification of inventory
Unit: RMB
Closing balance Opening balance
Inventory valuation Inventory valuation
Item allowances or allowances or
Gross amount impairment allowances Carrying amount Gross amount impairment allowances Carrying amount
for contract for contract
performance costs performance costs
Raw materials 426,733,176.19 5,826,978.57 420,906,197.62 535,367,248.85 5,839,586.09 529,527,662.76
Goods in process 1,223,454,330.06 1,223,454,330.06 1,263,271,738.43 1,263,271,738.43
Inventory of goods 2,963,938,353.12 29,415,124.10 2,934,523,229.02 3,786,765,952.30 30,118,427.27 3,756,647,525.03
Turnover materials 2,006,080.96 436,409.41 1,569,671.55 2,771,487.81 436,409.41 2,335,078.40
Goods issued 25,817,968.86 917,805.65 24,900,163.21 231,804,401.04 917,805.65 230,886,595.39
Homemade semi-
12,159,061,969.59 150,386.01 12,158,911,583.58 11,540,815,410.35 150,386.01 11,540,665,024.34
finished products
Packing materials 15,916,796.10 15,916,796.10 15,916,796.10 15,916,796.10
Manufacturing
consignment 29,198,763.87 29,198,763.87 29,963,859.21 29,963,859.21
materials
Goods in transit 53,554,968.06 53,554,968.06 34,544,229.31 34,544,229.31
Total 16,899,682,406.81 52,663,499.84 16,847,018,906.97 17,441,221,123.40 53,379,410.53 17,387,841,712.87
The Company is subject to the disclosure requirements for the food and wine & liquor production industry in Guidelines No. 3 of the Shenzhen Stock Exchange
for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.
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(2) Classification of merchandise on hand
Unit: RMB
Closing balance Opening balance
Item
Gross amount Valuation allowances Carrying amount Gross amount Valuation allowances Carrying amount
Liquor 2,485,950,572.78 2,485,950,572.78 2,960,244,729.82 2,960,244,729.82
Plastic
327,934,312.34 1,883,172.95 326,051,139.39 597,271,784.75 1,883,172.95 595,388,611.80
products
Printing 26,381,681.58 15,689,954.97 10,691,726.61 45,863,262.76 15,689,954.97 30,173,307.79
Glass
94,916,019.87 7,575,592.58 87,340,427.29 142,839,505.25 8,278,895.75 134,560,609.50
bottles
Others 28,755,766.55 4,266,403.60 24,489,362.95 40,546,669.72 4,266,403.60 36,280,266.12
Total 2,963,938,353.12 29,415,124.10 2,934,523,229.02 3,786,765,952.30 30,118,427.27 3,756,647,525.03
(3) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB
Increase in the current period Decrease in the current period
Opening
Item Reversed or Closing balance
balance Established Others Others
charged off
Raw materials 5,839,586.09 12,607.52 5,826,978.57
Inventory of
30,118,427.27 703,303.17 29,415,124.10
goods
Turnover
436,409.41 436,409.41
materials
Packing
15,916,796.10 15,916,796.10
materials
Goods issued 917,805.65 917,805.65
Semi-finished
150,386.01 150,386.01
products
Total 53,379,410.53 715,910.69 52,663,499.84
(4) Note on closing balance of inventory containing the capitalized amount of borrowing costs
None
(5) Notes of the amount of contract performance costs amortized for the current period
None
8. Long-term equity investments
Unit: RMB
Increase/decrease in the current period
Open Adjust
ing Inc Im
ment
balan rea Dec pai
Investment to Closing balance
Opening balance ce of se reas rm
Investee income other Other Declared cash Ot (carrying
(carrying amount) impai in e in ent
recognized compr equity dividends or her amount)
rment inv inve all
using the ehensi changes profit s
allow est stm ow
equity method ve
ance me ent an
incom
nt ce
e
I Joint ventures
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II Associates
Oriental
Outlook
27,361,937.34 -5,519,829.33 21,842,108.01
Media Co.,
Ltd.
Sichuan
Yibin
Wuliangye
1,958,180,619.90 26,114,874.16 13,952,640.00 1,970,342,854.06
Group
Finance
Co., Ltd.
Beijing
Zhongjiuh
uicui
Education 10,751,658.65 8,286.87 10,759,945.52
and
Technolog
y Co., Ltd.
Yibin
Jiamei
Intelligent 24,072,024.80 1,274,000.00 25,346,024.80
Packaging
Co., Ltd.
Sub-total 2,020,366,240.69 21,877,331.70 13,952,640.00 2,028,290,932.39
Total 2,020,366,240.69 21,877,331.70 13,952,640.00 2,028,290,932.39
Other information:
(1) The Company invested in Oriental Outlook Media Co., Ltd., an associate of the Company, for
implementing the strategy of entering the media industry. The Company contributed RMB17.15 million in April
2005, acquiring 49% of the equity of Oriental Outlook Media Co., Ltd. held by China Worldbest Group, Shanghai
Worldbest Co., Ltd. and Shanghai Tiancheng Chuangye Development Co., Ltd.
(2) As reviewed and approved by the 22th meeting of the 4th Board of Directors of the Company on 24
October 2012, the Company, Wuliangye Group and six of its subsidiaries, and ABC International Holdings
Limited jointly invested and established Sichuan Yibin Wuliangye Group Finance Co., Ltd. (Wuliangye Group
Finance). Its registered capital is RMB2 billion, among which the Company contributed RMB720 million, taking
up 36% of the registered capital.
On 23 May 2020, the 74th meeting of the 5th Board of Directors of the Company considered and approved
the capital increase of the Company to Wuliangye Group Finance based on the net asset value per share of
Wuliangye Group Finance evaluated at RMB1.3817 per share as consideration for the capital increase of
RMB734,693,877.55, of which: RMB531,731,835.82 was credited to registered capital and RMB202,962,041.73
was credited to capital reserve. In this capital increase, the related party Sichuan Yibin Wuliangye Group Co., Ltd.
increased its capital at the same price, and the remaining shareholders of Wuliangye Group Finance did not
participate in this capital increase. After the completion of this capital increase, the registered capital of
Wuliangye Group Finance increased from RMB2 billion to RMB3,085,619,164.80, and the shareholding ratio of
the Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the Company, and
Shenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and established Yibin Jiamei Intelligent
Packaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co., Ltd. include research and
development, platemaking, printing, production and sales of packaging products. Its registered capital is RMB20
million, among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB9.8 million, taking
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
up 49% of the registered capital.
(4) As reviewed and approved by the 85th meeting of the 5th Board of Directors of the Company on 5
February 2021, the Company, Beijing Zhongjiuhuicui Exhibition Co., Ltd. Sichuan Wine and Tea Investment
Group Co., Ltd., Sichuan Science and Engineering Asset Management Co., Ltd., Sichuan Jingwei Education
Management Group Co., Ltd., and Yibin Vocational & Technical College Asset Operation and Management Co.,
Ltd. jointly invested and established Beijing Zhongjiuhuicui Education and Technology Co., Ltd. Its registered
capital is RMB54 million, among which the Company contributed RMB11.25 million, taking up 20.83% of the
registered capital.
9. Other non-current financial assets
Unit: RMB
Item Closing balance Opening balance
Sichuan Chinese Liquor Jinshanjiao Brand Operation
1,200,000.00 1,200,000.00
and Development Co., Ltd.
Total 1,200,000.00 1,200,000.00
10. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 5,140,968,426.24 5,188,163,140.11
Disposal of fixed assets 3,299,507.08 1,754,162.06
Total 5,144,267,933.32 5,189,917,302.17
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(1) Information on fixed assets
Unit: RMB
Buildings and Specialised
Item General equipment Transport equipment Other equipment Total
constructions equipment
I Gross amount:
1. Opening balance 8,614,499,374.03 3,164,665,585.49 1,851,502,601.18 158,020,886.43 713,178,799.71 14,501,867,246.84
2. Increases in the current
4,763,971.48 33,943,386.65 118,526,631.93 4,994,179.33 33,681,155.52 195,909,324.91
period
(1) Acquisition 1,322,871.30 33,818,444.41 93,128,293.87 4,994,179.33 33,590,424.00 166,854,212.91
(2) Transferred from
3,441,100.18 124,942.24 25,398,338.06 90,731.52 29,055,112.00
construction in progress
(3) Increase from business
combination
3. Decreases in the current
3,623,619.75 70,126,166.70 35,760,694.41 4,270,578.68 4,796,286.53 118,577,346.07
period
(1) Disposed or scrapped 3,623,619.75 70,126,166.70 35,760,694.41 4,270,578.68 4,796,286.53 118,577,346.07
4. Closing balance 8,615,639,725.76 3,128,482,805.44 1,934,268,538.70 158,744,487.08 742,063,668.70 14,579,199,225.68
II Accumulated depreciation
1. Opening balance 4,539,071,966.05 2,824,994,994.72 1,252,007,853.00 97,287,161.70 573,593,089.72 9,286,955,065.19
2. Increases in the current
128,128,406.57 28,553,328.42 48,221,148.34 8,743,141.82 16,036,084.48 229,682,109.63
period
(1) Provisions 128,128,406.57 28,553,328.42 48,221,148.34 8,743,141.82 16,036,084.48 229,682,109.63
3. Decreases in the current
2,401,401.70 62,170,896.41 29,425,346.62 4,078,744.09 4,311,580.05 102,387,968.87
period
(1) Disposed or scrapped 2,401,401.70 62,170,896.41 29,425,346.62 4,078,744.09 4,311,580.05 102,387,968.87
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4. Closing balance 4,664,798,970.92 2,791,377,426.73 1,270,803,654.72 101,951,559.43 585,317,594.15 9,414,249,205.95
III Impairment allowances
1. Opening balance 15,412,584.75 9,953,302.88 911,614.26 471,539.65 26,749,041.54
2. Increases in the current
period
(1) Provisions
3. Decreases in the current
2,767,448.05 2,767,448.05
period
(1) Disposed or scrapped 2,767,448.05 2,767,448.05
4. Closing balance 15,412,584.75 7,185,854.83 911,614.26 471,539.65 23,981,593.49
IV Carrying amount
1. Closing carrying amount 3,935,428,170.09 329,919,523.88 662,553,269.72 56,792,927.65 156,274,534.90 5,140,968,426.24
2. Opening carrying amount 4,060,014,823.23 329,717,287.89 598,583,133.92 60,733,724.73 139,114,170.34 5,188,163,140.11
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(2) Fixed assets that are temporarily idle
The Company has no major fixed assets that are temporarily idle.
(3) Fixed assets leased out under operating leases
Unit: RMB
Item Closing carrying amount
Buildings and constructions 96,823,526.37
Equipment 5,374,272.51
Total 102,197,798.88
(4) Fixed assets without certificate of title
Unit: RMB
Item Carrying amount Reason for not obtaining certificate of title
The certificate of title has not been obtained due to historical reasons, to which
Buildings and
780,425,693.07 the Company has attached great importance and planned to obtain the
constructions
certificate of title gradually.
Other information: According to the Interim Regulation on Real Estate Registration of Sichuan Province
2016, the property ownership certificate and the land use certificate are integrated into the real estate ownership
certificate. The Company is sorting out relevant assets and handling with the certificate of title of relevant assets.
(5) Impairment tests of fixed assets
There were no further impairments of fixed assets as at the end of the current period.
(6) Disposal of fixed assets
Unit: RMB
Item Closing balance Opening balance
Equipment 3,299,507.08 1,754,162.06
Total 3,299,507.08 1,754,162.06
11. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 6,806,944,298.81 5,620,810,349.02
Engineering materials 2,546,073.18 2,546,073.18
Total 6,809,490,371.99 5,623,356,422.20
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Project
Gross amount Impairment allowance Carrying amount Gross amount Impairment allowance Carrying amount
Construction in progress 6,809,344,304.36 2,400,005.55 6,806,944,298.81 5,623,210,354.57 2,400,005.55 5,620,810,349.02
Total 6,809,344,304.36 2,400,005.55 6,806,944,298.81 5,623,210,354.57 2,400,005.55 5,620,810,349.02
(2) Changes in important construction in progress in the current period
Unit: RMB
Of Interes
Transfe Cumulat
which: t
rred to ive Cumul
Other Capitali capital
fixed project Project ative
Increase in the decreases in zed ization Funding
Project Budget Opening balance assets Closing balance investme progres capitali
current period the current interest rate source
in the nt as % s zed
period in the for the
current of the interest
current current
period budget
period period
Liquor Packaging and
Integrated Smart Storage- Owned and
8,596,655,000.00 1,340,216,266.83 93,227,366.17 1,433,443,633.00 16.67% 40.00%
and-delivery Project raised funds
(note 1)
Owned
funds,
Baijiu Cellar Renovation
1,726,166,000.00 917,726,424.83 42,505,440.07 960,231,864.90 55.63% 98.00% subsidies
Project
and raised
funds
Qu-making Workshop Owned
2,358,117,500.00 495,755,748.44 158,137,469.03 653,893,217.47 27.73% 75.00%
Expansion Project funds
100,000-ton Ecological
Owned
Distillery Project (Phase 1,407,954,000.00 324,339,479.36 159,816,635.46 484,156,114.82 34.39% 85.00%
funds
I)
100,000-ton Ecological
Owned
Distillery Project (Phase 4,861,043,000.00 305,210,714.63 212,384,527.13 376,139.76 517,219,102.00 10.65% 30.00%
funds
II)
Wuliangye Gateway Area Owned
5,027,737,600.00 43,780,484.44 57,524,315.57 101,304,800.01 2.01% 5.00%
Project funds
Wuliangye 501 Ancient
Fermentation Pits- Owned
1,613,991,000.00 3,076,226.43 108,561,272.51 111,637,498.94 6.92% 9.00%
Chinese Baijiu Cultural funds
Sanctuary Project
107
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
New centralised
Owned
wastewater treatment 1,200,000,000.00 13,958,788.95 120,068,678.29 134,027,467.24 11.17% 24.98%
funds
plant
Total 26,791,664,100.00 3,444,064,133.91 952,225,704.23 376,139.76 4,395,913,698.38
Note 1: The total budget investment in liquor packaging and integrated smart storage-and-delivery project is RMB8,596,655,000, among which the investment
in construction is RMB6,787,568,000, with RMB1,809,087,000 of initial working capital. The project has two phases. The progress of the first phase is 88%, and the
second phase will begin at the right time according to the production and operations of the Company. The total progress of the two phases of the project is 40%.
108
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
(3) Impairment allowances established for construction in progress for the current period
There were no additional impairments of construction in progress as at the end of the current period.
(4) Impairment tests of construction in progress
□ Applicable Not applicable
(5) Engineering materials
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairmen
Gross amount Gross amount Carrying amount
allowance amount t allowance
Engineering
2,546,073.18 2,546,073.18 2,546,073.18 2,546,073.18
materials
Total 2,546,073.18 2,546,073.18 2,546,073.18 2,546,073.18
12. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Buildings and Specialised Transport
Item Land use right Total
constructions equipment equipment
I Gross amount
1. Opening balance 263,446,011.50 366,174.21 1,407,132.27 281,179,086.24 546,398,404.22
2. Increases in the
219,153,644.22 2,149,156.25 847,706,504.22 1,069,009,304.69
current period
(1) Operating
219,153,644.22 2,149,156.25 847,706,504.22 1,069,009,304.69
leases
3. Decreases in the
32,423,382.52 32,423,382.52
current period
(1) Expiry or
32,423,382.52 32,423,382.52
termination of leases
4. Closing balance 450,176,273.20 2,515,330.46 1,407,132.27 1,128,885,590.46 1,582,984,326.39
II Accumulated
depreciation
1. Opening balance 137,113,083.18 325,488.19 970,431.12 281,179,086.24 419,588,088.73
2. Increases in the
72,900,828.18 339,179.92 62,385.90 141,284,417.40 214,586,811.40
current period
(1) Provisions 72,900,828.18 339,179.92 62,385.90 141,284,417.40 214,586,811.40
3. Decreases in the
31,238,044.52 31,238,044.52
current period
(1) Disposal
(2) Expiry or
31,238,044.52 31,238,044.52
termination of leases
4. Closing balance 178,775,866.84 664,668.11 1,032,817.02 422,463,503.64 602,936,855.61
III Impairment
allowances
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
1. Opening balance
2. Increases in the
current period
(1) Provisions
3. Decreases in the
current period
(1) Disposal
4. Closing balance
IV Carrying amount
1. Closing carrying
271,400,406.36 1,850,662.35 374,315.25 706,422,086.82 980,047,470.78
amount
2. Opening carrying
126,332,928.32 40,686.02 436,701.15 126,810,315.49
amount
(2) Impairment tests of right-of-use assets
There were no impairments of right-of-use assets as at the end of the current period.
13. Intangible assets
(1) Intangible assets
Unit: RMB
Non-
Paten patent Technology use
Item Land use right Software system Copyright Total
ts technol right
ogy
I Gross amount
1. Opening balance 2,026,041,189.87 397,882,359.20 10,391,942.73 8,066,037.47 2,442,381,529.27
2. Increases in the
614,250,575.20 49,385,582.03 663,636,157.23
current period
(1) Acquisition 614,250,575.20 49,385,582.03 663,636,157.23
(2) Internal
research and
development
(3) Increase from
business combination
3. Decreases in the
4,474,612.57 4,474,612.57
current period
(1) Disposal 4,474,612.57 4,474,612.57
4. Closing balance 2,640,291,765.07 442,793,328.66 10,391,942.73 8,066,037.47 3,101,543,073.93
II Accumulated
amortization
1. Opening balance 179,504,424.15 189,470,419.56 10,352,084.37 6,183,962.16 385,510,890.24
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
2. Increases in the
36,687,330.33 36,851,224.79 3,679.26 806,603.76 74,348,838.14
current period
(1) Provisions 36,687,330.33 36,851,224.79 3,679.26 806,603.76 74,348,838.14
3. Decreases in the
4,474,612.57 4,474,612.57
current period
(1) Disposal 4,474,612.57 4,474,612.57
4. Closing balance 216,191,754.48 221,847,031.78 10,355,763.63 6,990,565.92 455,385,115.81
III Impairment
allowances
1. Opening balance
2. Increases in the
current period
(1) Provisions
3. Decreases in the
current period
(1) Disposal
4. Closing balance
IV Carrying amount
1. Closing carrying
2,424,100,010.59 220,946,296.88 36,179.10 1,075,471.55 2,646,157,958.12
amount
2. Opening carrying
1,846,536,765.72 208,411,939.64 39,858.36 1,882,075.31 2,056,870,639.03
amount
Intangible assets created by internal research and development of the Company accounted for 0.00% of its
total intangible assets as at the end of the current period.
(2) Land use right failed to accomplish certification of property
Unit: RMB
Reason for failing to accomplish certification of
Item Carrying amount
property
Land of the Wuliangye Gateway Area Certification of property has not yet started for the
1,258,876,888.48
Project construction planning is still being optimized.
(3) Impairment tests of intangible assets
□ Applicable Not applicable
14. Goodwill
(1) Gross amounts of goodwill
Unit: RMB
Increase in the current Decrease in the
period current period
Opening Closing
Investee or item generating goodwill Generated due to
balance Dispo balance
business
sal
combination
111
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Sichuan Yibin Global Group Shenzhou
37,535.96 37,535.96
Glass Co., Ltd.
Sichuan Yibin Global Gelasi Glass
18,005.18 18,005.18
Manufacturing Co., Ltd.
Sichuan Yibin Plastic Packaging Materials
666,461.77 666,461.77
Company Limited
Sichuan Yibin Push Group 3D Co., Ltd. 899,616.62 899,616.62
Total 1,621,619.53 1,621,619.53
15. Long-term prepaid expense
Unit: RMB
Increase in the Amortization in
Item Opening balance Other decreases Closing balance
current period the current period
Moulds 136,844,410.41 21,085,088.53 31,666,256.69 126,263,242.25
Overhaul expenses
19,961,882.39 346,541.39 4,552,266.69 15,756,157.09
of kilns
Others 6,313,731.06 2,883,736.64 2,021,927.58 7,175,540.12
Total 163,120,023.86 24,315,366.56 38,240,450.96 149,194,939.46
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Asset impairment allowances 97,125,009.20 19,159,900.44 97,497,278.56 19,252,967.78
Unrealized profit of internal
1,052,883,699.72 263,220,924.93 1,188,281,924.48 297,070,481.12
transactions
Employee benefits payable 3,492,489,038.76 873,122,259.69 3,490,817,759.43 872,704,439.86
Lease liabilities (inclusive of
1,020,069,673.72 251,485,867.60 130,235,057.60 32,558,764.42
the current portion)
Accrued expenses, etc. 4,346,812,287.04 1,086,703,071.76 4,084,095,658.56 1,021,023,914.64
Total 10,009,379,708.44 2,493,692,024.42 8,990,927,678.63 2,242,610,567.82
(2) Deferred income tax liabilities which have not been offset
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Right-of-use assets 980,047,470.78 240,471,806.67 126,810,315.49 31,702,578.88
Total 980,047,470.78 240,471,806.67 126,810,315.49 31,702,578.88
(3) Details about deferred income tax assets which have not been recognized
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 1,227,844.03 2,210,106.17
Deductible losses 281,021,754.69 238,826,934.43
112
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Total 282,249,598.72 241,037,040.60
(4) Deductible losses of deferred income tax assets which have not been recognized will become due in the
following years
Unit: RMB
Year Closing amount Opening amount Remarks
2024 33,348,604.27 37,175,954.09
2025 26,085,821.45 26,822,159.35
2026 0.00 0.00
2027 30,804,853.32 31,108,726.70
2028 143,720,094.29 143,720,094.29
2029 47,062,381.36
Total 281,021,754.69 238,826,934.43
17. Other non-current assets
Unit: RMB
Closing balance Opening balance
Impa
Impai
Item irme
rment
Gross amount Carrying amount Gross amount nt Carrying amount
allow
allow
ance
ance
Advances of progress
payment for information 173,185,173.27 173,185,173.27 197,884,442.32 197,884,442.32
system construction
Prepayments for land bids 47,308,599.07 47,308,599.07 617,111,764.28 617,111,764.28
Prepayments for equipment 71,585,040.00 71,585,040.00 9,821,017.69 9,821,017.69
Total 292,078,812.34 292,078,812.34 824,817,224.29 824,817,224.29
18. Assets with restricted ownership or rights-of-use
Unit: RMB
At the end of the current period At the beginning of the current period
Type Type
Item of of
Gross amount Carrying amount Restriction Gross amount Carrying amount Restriction
restric restric
tion tion
Security deposits Security deposits
for bank for bank
acceptance bills, acceptance bills,
other security other security
Secur deposits, and the Secur deposits, and the
Monetary ity balance in the ity balance in the
234,648,885.56 234,648,885.56 200,977,259.48 200,977,259.48
assets depos securities trading depos securities trading
it, etc. account with the it, etc. account with the
Yibin Business Yibin Business
Department of Department of
Essence Essence
Securities Securities
Total 234,648,885.56 234,648,885.56 200,977,259.48 200,977,259.48
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
19. Notes payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance notes 569,729,467.22 732,432,611.26
Total 569,729,467.22 732,432,611.26
There were no notes payable which became mature but were unpaid as at the end of the current period.
20. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Accounts payable 8,951,591,862.82 8,864,206,997.09
Total 8,951,591,862.82 8,864,206,997.09
(2) Significant accounts payable that are over one year or overdue
There were no significant accounts payable that were over 1 year or overdue as at the end of the current
period.
21. Other payables
Unit: RMB
Item Closing balance Opening balance
Dividends payable 18,127,109,383.35
Other payables 5,827,050,723.33 5,385,776,903.69
Total 23,954,160,106.68 5,385,776,903.69
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Dividends payable to ordinary
18,127,109,383.35
shareholders
Total 18,127,109,383.35
(2) Other payables
1) Presentation of other payables by nature
Unit: RMB
Item Closing balance Opening balance
Image publicity expense and sales
3,988,265,969.58 3,641,584,720.31
promotional expense
Security deposits 1,027,541,795.46 961,975,482.82
Frozen funds 271,011,242.15 272,831,242.15
Collecting payment on behalf of others 182,101,820.43 116,936,716.76
Claims from safeguarding rights 26,908,452.67 32,741,432.38
Others 331,221,443.04 359,707,309.27
Total 5,827,050,723.33 5,385,776,903.69
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
2) Significant other payables that are over one year or overdue
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Frozen funds 262,797,339.21
Total 262,797,339.21
22. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
Item Closing balance Opening balance
Advances from customers 18,100,649.63 17,522,814.61
Total 18,100,649.63 17,522,814.61
(2) Significant advances from customers that are over 1 year or overdue
There were no significant advances from customers that were over 1 year or overdue in the current
period.
23. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances from customers 8,157,503,632.65 6,864,383,635.25
Total 8,157,503,632.65 6,864,383,635.25
Significant contract liabilities that are over 1 year: There were no significant contract liabilities that were
over 1 year as at the end of the current period.
The Company is subject to the disclosure requirements for the food and wine & liquor production industry
in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-
specific Information Disclosure.
Presented by aging:
Unit: RMB
Aging Gross amount
Within 1 year 7,984,591,321.20
1 to 2 years 28,369,223.49
2 to 3 years 27,764,821.41
More than 3 years 116,778,266.55
Total 8,157,503,632.65
24. Employee benefits payable
(1) Presentation of employee benefits payable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I Short-term remuneration 3,872,108,376.77 4,019,496,112.28 4,243,469,153.08 3,648,135,335.97
II Post-employment benefits -
14,059.66 567,078,852.79 567,078,852.79 14,059.66
defined contribution plans
Total 3,872,122,436.43 4,586,574,965.07 4,810,548,005.87 3,648,149,395.63
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
(2) Presentation of short-term remuneration
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
1. Salaries, bonuses, allowances
3,810,778,669.49 3,418,286,296.10 3,603,873,179.09 3,625,191,786.50
and subsidies
2. Employee benefits 59,940,612.71 59,940,612.71
3. Social insurance charges 154,678.65 184,611,321.60 184,611,321.60 154,678.65
Including: Medical insurance
154,486.34 172,542,133.11 172,542,133.11 154,486.34
premium
Industrial injury
107.45 11,839,439.03 11,839,439.03 107.45
insurance premium
Birth insurance
84.86 229,749.46 229,749.46 84.86
premium
4. Housing provident fund 36,668,368.00 281,459,796.07 318,128,164.07
5. Labour union expenditure and
24,506,660.63 75,198,085.80 76,915,875.61 22,788,870.82
personnel educational fund
Total 3,872,108,376.77 4,019,496,112.28 4,243,469,153.08 3,648,135,335.97
(3) Presentation of defined contribution plans
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
1. Basic pension
14,059.66 375,472,359.13 375,472,359.13 14,059.66
insurance
2. Unemployment
14,112,505.35 14,112,505.35
insurance premium
3. Corporate pension
177,493,988.31 177,493,988.31
contribution
Total 14,059.66 567,078,852.79 567,078,852.79 14,059.66
25. Taxes and surcharge payable
Unit: RMB
Item Closing balance Opening balance
VAT 1,317,938,207.67 1,287,318,757.45
Consumption tax 1,144,873,056.77 1,576,918,931.41
Corporate income tax 1,672,676,981.15 2,936,171,629.30
Individual income tax 20,856,744.85 57,956,239.44
Urban maintenance and construction tax 176,760,344.31 207,087,550.24
Education surcharge 76,064,249.89 89,319,297.77
Local education surcharge 50,714,678.73 59,551,377.32
Deed tax 37,629,000.00 44,169,896.88
Stamp duty 6,318,725.81 8,857,961.71
Land use tax 669,153.14 669,153.14
Property tax 408,071.37 425,171.77
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Environmental protection tax 262.28 12,179.34
Total 4,504,909,475.97 6,268,458,145.77
26. Current portion of non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Current portion of lease liabilities 373,908,963.84 14,512,448.92
Total 373,908,963.84 14,512,448.92
27. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 624,081,189.42 663,723,991.63
Total 624,081,189.42 663,723,991.63
28. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 646,160,709.88 115,722,608.68
Total 646,160,709.88 115,722,608.68
29. Deferred income
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance Cause
current period current period
Government grants 253,043,325.37 239,700.00 6,332,810.21 246,950,215.16
Total 253,043,325.37 239,700.00 6,332,810.21 246,950,215.16
30. Share capital
Unit: RMB
Increase/decrease in the current period (+/-)
Opening balance Bonus Bonus issue Closing balance
New issue issue from from capital Others Subtotal
profit reserves
Total shares 3,881,608,005.00 3,881,608,005.00
31. Capital reserves
Unit: RMB
Increase in the Decrease in the current
Item Opening balance Closing balance
current period period
Capital premium (share
2,682,523,702.98 2,682,523,702.98
premium)
Other capital reserves 123,383.17 123,383.17
Total 2,682,647,086.15 2,682,647,086.15
32. Surplus reserves
Unit: RMB
117
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Statutory surplus
33,588,553,502.81 33,588,553,502.81
reserves
Total 33,588,553,502.81 33,588,553,502.81
33. Retained earnings
Unit: RMB
Item H1 2024 H1 2023
Retained earnings at the end of the prior period
89,405,432,446.55 79,028,605,172.04
before adjustment
Total retained earnings at the beginning of the
period before adjustment (“+” for increase, “-” for 2,554,581.61
decrease)
Retained earnings at the beginning of the period
89,405,432,446.55 79,031,159,753.65
after adjustment
Plus: Net profit attributable to owners of the
19,056,829,528.87 17,036,708,791.18
Company as the parent in the current period
Less: Dividends payable to ordinary shareholders 18,127,109,383.35 14,680,241,440.97
Retained earnings at the end of the period 90,335,152,592.07 81,387,627,103.86
Adjustments to the retained earnings at the beginning of the period:
1) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to the retroactive
adjustment according to the Accounting Standards for Business Enterprises and relevant new provisions.
2) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes in
accounting policies.
3) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to correction of major
accounting errors.
4) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes in the
combination scope arising from the same control.
5) The retained earnings at the beginning of the period are adjusted by RMB0.00 in total due to other
adjustments.
34. Operating revenue and cost of sales
Unit: RMB
H1 2024 H1 2023
Item
Revenue Costs Revenue Costs
Principal operations 50,383,472,503.12 11,273,317,113.18 45,156,459,899.92 10,308,637,784.27
Other operations 264,554,075.53 192,821,394.02 349,924,918.45 259,322,560.50
Total 50,648,026,578.65 11,466,138,507.20 45,506,384,818.37 10,567,960,344.77
Breakdown of operating revenue and cost of sales:
Unit: RMB
Liquor products
Type of contract
Operating revenue Cost of sales
By operating segment
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
East China 13,552,135,672.17 2,059,657,459.06
South China 3,496,256,070.40 488,121,708.11
West China 16,758,820,769.19 3,728,672,761.25
North China 4,841,310,361.21 668,971,370.38
Central China 8,462,195,848.29 1,257,657,234.31
By sales channel
Online 2,839,694,298.74 370,942,307.09
Offline 44,271,024,422.52 7,832,138,226.02
Total 47,110,718,721.26 8,203,080,533.11
Information related to performance obligations:
The amount of revenue corresponding to performance obligations that have been contracted but not yet
performed or not completed at the end of the Reporting Period was RMB8,157,503,632.65.
35. Tax and surcharges
Unit: RMB
Item H1 2024 H1 2023
Consumption tax 5,687,106,649.35 5,192,856,587.27
Urban maintenance and construction tax 803,552,169.25 706,212,574.90
Education surcharge 344,701,516.76 303,125,551.67
Tax on natural resources 109,522.00 31,524.50
Property tax 23,205,815.59 23,143,856.12
Land use tax 41,156,166.30 31,595,916.16
Vehicle and vessel usage tax 47,254.77 52,097.99
Stamp duty 39,863,996.75 36,370,189.99
Local education surcharge 229,801,011.22 202,085,660.05
Environmental protection tax 322,241.53 297,066.68
Total 7,169,866,343.52 6,495,771,025.33
36. Administrative expenses
Unit: RMB
Item H1 2024 H1 2023
Comprehensive expenses of the Company
(including travel, office, expenses of the Board of
741,401,679.01 758,888,165.15
Directors, employee remuneration, labour
insurance, labour protection appliances, etc.)
Rents 19,137,530.26 8,267,174.44
Trademark and logo royalties 583,929,526.70 523,076,192.92
Comprehensive service fee 1,049,929.49 47,192,255.79
Others 393,042,973.06 419,474,974.55
Total 1,738,561,638.52 1,756,898,762.85
37. Selling expenses
Unit: RMB
Item H1 2024 H1 2023
Image publicity expense 932,275,200.41 759,134,414.08
Sales promotional expense 3,440,601,772.58 2,612,938,992.07
119
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Storage and logistics expenses 272,408,237.24 268,515,233.60
Expenses of labour 455,092,791.02 459,063,335.23
Other expenses 265,964,172.17 220,793,644.63
Total 5,366,342,173.42 4,320,445,619.61
38. Research and development expense
Unit: RMB
Item H1 2024 H1 2023
Comprehensive expenses (including
travel, office, payroll, labour insurance, 103,573,828.45 91,323,366.51
labour protection appliances, etc.)
Material expenses 19,708,709.93 17,295,271.11
Product design fees 5,713,011.34 4,148,060.23
Depreciation and amortization expenses 8,987,010.37 7,520,452.33
Others 21,778,381.19 15,390,364.86
Total 159,760,941.28 135,677,515.04
39. Finance costs
Unit: RMB
Item H1 2024 H1 2023
Interest costs 17,030,819.31 6,811,996.58
Less: Interest income 1,423,837,619.29 1,259,323,479.12
Exchange loss 8,853.74 137,000.43
Less: Exchange gains 168,365.72 265,109.71
Service charge of financial institutions 1,334,764.34 803,023.55
Others 4,776,438.16 1,765,171.86
Total -1,400,855,109.46 -1,250,071,396.41
40. Other income
Unit: RMB
Sources of other income H1 2024 H1 2023
Government subsidies 166,637,116.01 185,029,071.91
Tax rebates 44,310,389.47 24,684,000.00
Tax preferences 9,801,882.16 8,998,855.65
Total 220,749,387.64 218,711,927.56
41. Investment income
Unit: RMB
Item H1 2024 H1 2023
Return on long-term equity investments
21,877,331.70 20,626,708.35
measured using the equity method
Total 21,877,331.70 20,626,708.35
42. Credit impairment losses
Unit: RMB
Item H1 2024 H1 2023
Loss on uncollectible accounts
-1,477,823.13 -1,889,602.14
receivable
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Loss on uncollectible other receivables -712,187.88 -1,824,092.30
Total -2,190,011.01 -3,713,694.44
43. Gains on disposals of assets
Unit: RMB
Source of gains on disposals of assets H1 2024 H1 2023
Disposal of non-current assets -3,917,579.22 237,968.66
Total -3,917,579.22 237,968.66
44. Non-operating income
Unit: RMB
Amounts included in current
Item H1 2024 H1 2023
exceptional profit or loss
Penalty income 4,296,135.48 4,249,193.13 4,296,135.48
Gains from scrap of non-current assets 138,044.69 81,404.56 138,044.69
Others 8,070,931.91 7,619,708.88 8,070,931.91
Total 12,505,112.08 11,950,306.57 12,505,112.08
45. Non-operating expense
Unit: RMB
Amounts included in current
Item H1 2024 H1 2023
exceptional profit or loss
Donations 906,300.00 4,450,100.00 906,300.00
Penalty expenditure 410,453.12 400,029.17 410,453.12
Loss on scrap of non-current assets 878,000.59 46,819,840.81 878,000.59
Exceptional loss 192,564.22 495,599.84 192,564.22
Others 4,777,144.49 3,083,375.63 4,777,144.49
Total 7,164,462.42 55,248,945.45 7,164,462.42
46. Income tax expense
(1) List of income tax expense
Unit: RMB
Item H1 2024 H1 2023
Current income tax expense 6,640,486,565.75 5,406,739,476.25
Deferred income tax expense -76,945,308.03 472,993,837.99
Total 6,563,541,257.72 5,879,733,314.24
(2) Reconciliation from accounting profit to income tax expense
Unit: RMB
Item H1 2024
Gross profit 26,390,071,862.94
Income tax expense based on the statutory/applicable tax rates 6,597,517,965.74
Effects of different tax rates of subsidiaries -85,397,061.26
Effects of adjustments to income tax of the prior period 52,675,689.69
Effects of non-taxable revenue -5,469,332.93
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Effects of non-deductible costs, expenses and losses 409,296.01
Effects of the utilization of deductible losses on which deferred income tax
-1,216,890.29
assets were unrecognized in the prior period
Effects of deductible temporary differences or losses on which deferred
11,520,029.80
income tax assets are unrecognized in the current period
Effects of the over-deduction in the calculation of the taxable amount in
-6,498,439.04
relation to research and development expense
Income tax expense 6,563,541,257.72
47. Cash flow statement items
(1) Cash generated from/used in operating activities
Cash generated from other operating activities:
Unit: RMB
Item H1 2024 H1 2023
Interest income 397,946,827.05 350,049,501.12
Security deposits and government grants
416,178,831.10 403,987,853.63
received
Total 814,125,658.15 754,037,354.75
Cash used in other operating activities:
Unit: RMB
Item H1 2024 H1 2023
Expenses relating to selling 1,682,097,066.99 1,255,864,296.21
Trademark and logo royalties 460,920,003.79 442,155,116.39
Security deposits paid, payments for current
1,261,267,878.47 1,101,723,259.65
transactions, and other out-of-pocket expenses
Total 3,404,284,949.25 2,799,742,672.25
(2) Cash generated from/used in financing activities
Cash used in other financing activities:
Unit: RMB
Item H1 2024 H1 2023
Payment for the lease liabilities 157,849,148.32 201,882,821.01
Total 157,849,148.32 201,882,821.01
Changes in liabilities as a result of financing activities:
□ Applicable Not applicable
48. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information H1 2024 H1 2023
1. Reconciliation of net profit to net cash generated from/used in
operating activities:
Net profit 19,826,530,605.22 17,792,533,904.19
Add: Asset impairment allowances 1,412,916.55 937,272.04
Depreciation of fixed assets, depletion of oil and gas 229,682,109.63 215,850,385.03
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assets, and depreciation of productive living assets
Depreciation of right-of-use assets 214,586,811.40 187,720,696.56
Amortization of intangible assets 74,348,838.14 35,263,937.14
Amortization of long-term prepaid expense 38,240,450.96 37,841,942.84
Loss on the disposal of fixed assets, intangible assets and
3,917,579.22 -237,968.66
other long-term assets (“-” for gain)
Loss on the retirement of fixed assets (“-” for gain) 739,955.90 46,738,436.25
Loss on changes in fair value (“-” for gain)
Finance costs (“-” for income) 17,030,819.31 6,811,996.58
Loss on investment (“-” for income) -21,877,331.70 -20,626,708.35
Decrease in deferred income tax assets (“-” for increase) -251,081,456.60 328,617,545.23
Increase in deferred income tax liabilities (“-” for
208,769,227.79 -44,345,601.14
decrease)
Decrease in inventories (“-” for increase) 541,538,716.59 -114,834,365.08
Decrease in operating receivables (“-” for increase) -6,566,479,747.87 2,433,772,661.79
Increase in operating payables (“-” for decrease) -889,430,838.91 -9,576,225,248.12
Others
Net cash generated from/used in operating activities 13,427,928,655.63 11,329,818,886.30
2. Significant investing and financing activities that involve no
cash proceeds or payments:
Conversion of debt to capital
Current portion of convertible corporate bonds
Fixed assets under finance leases
3. Net changes in cash and cash equivalents:
Closing balance of cash 125,296,379,907.83 89,762,101,198.36
Less: Opening balance of cash 113,095,684,224.30 90,584,643,897.66
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 12,200,695,683.53 -822,542,699.30
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I Cash 125,296,379,907.83 113,095,684,224.30
Of which: Cash on hand 4,855.27 42,156.81
Bank deposits that can be readily
125,204,874,285.18 113,032,146,687.11
drawn on demand
Other monetary assets that can be
91,500,767.38 63,495,380.38
readily drawn on demand
II Cash equivalents
III Cash and cash equivalents, end of the
125,296,379,907.83 113,095,684,224.30
period
(3) Monetary assets that do not belong to cash and cash equivalents
Unit: RMB
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Reason for not belong to cash and
Item H1 2024 H1 2023
cash equivalents
Security deposits for bank
234,648,885.56 304,672,444.89 Restricted use
acceptance bills, etc.
Accrued interest on term
3,185,530,219.10 2,490,524,342.90 Accrued interest
deposits
Total 3,420,179,104.66 2,795,196,787.79
49. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Monetary assets
Of which: USD 2,700,964.13 7.11052 19,205,255.79
EUR
HKD
Accounts receivable
Of which: USD
EUR
HKD
Long-term borrowings
Of which: USD
EUR
HKD
(2) Overseas business entities (for substantial overseas business entities, the following information shall
be disclosed: principal place of business, functional currency and basis for the choice, change of
functional currency and reasons)
□ Applicable Not applicable
50. Leases
(1) The Company as the lessee
Applicable □ Not applicable
Variable lease payments not included in lease liabilities:
Applicable □ Not applicable
Unit: RMB
Item H1 2024
Variable lease payments not included in lease liabilities 73,943,265.46
Expenses on short-term leases or leases of low-value assets:
Applicable □ Not applicable
Unit: RMB
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Item H1 2024
Expenses on short-term leases or leases of low-value assets 29,478,761.63
(2) The Company as the lessor
Operating leases with the Company as the lessor:
Applicable □ Not applicable
Unit: RMB
Of which: Income related to variable lease payments not
Item Lease income
included in lease receipts
Income from operating leases 16,075,015.49
Total 16,075,015.49
Finance leases with the Company as the lessor:
□ Applicable Not applicable
Yearly undiscounted lease receipts in the coming five years:
□ Applicable Not applicable
VIII Research and Development Expenditures
Unit: RMB
Item H1 2024 H1 2023
Comprehensive expenses (including travel, office, payroll, labour insurance,
103,573,828.45 91,323,366.51
labour protection appliances, etc.)
Material expenses 19,708,709.93 17,295,271.11
Product design fees 5,713,011.34 4,148,060.23
Depreciation and amortization expenses 8,987,010.37 7,520,452.33
Others 21,778,381.19 15,390,364.86
Total 159,760,941.28 135,677,515.04
Of which: expensed research and development expenditures 159,760,941.28 135,677,515.04
1. Significant outsourced research and development projects
The Company had no significant outsourced research and development projects.
IX Changes to the Scope of the Consolidated Financial Statements
1. Business combinations involving entities not under common control
(1) Business combinations involving entities not under common control in the current period
There were no business combinations involving entities not under common control in the Reporting Period.
2. Business combinations involving entities under common control
(1) Business combinations involving entities under common control in the current period
There were no business combinations involving entities under common control in the Reporting Period.
3. Counter purchase
There was no subsidiary acquired by counter purchase during the Reporting Period.
4. Disposal of subsidiary
Indicate whether there was any transaction or event during the current period in which control of a
subsidiary ceased.
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□ Yes No
Indicate whether there was any step-by-step disposal of the investment in a subsidiary through multiple
transactions and control of the subsidiary ceased during the current period.
□ Yes No
5. Changes in the consolidation scope for other reasons
As approved at the Second Meeting of the Sixth Board of Directors of 2024 dated 19 April 2024, the
Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has
incorporated “Sichuan Yibin Plastic Packaging Products Co., Ltd.” (“Plastic Packaging Products”). Plastic
Packaging Products has a registered capital of RMB50 million, and the Company owns 100% of Plastic
Packaging Products.
X Interests in Other Entities
1. Interests in subsidiaries
(1) Compositions of the Group
Unit: RMB
Princi The Company’s
pal interest
Place of Nature How the
Registered place
Subsidiary registrat of subsidiary
capital of
ion business Direct Indirect was obtained
busine
ss
Sichuan Yibin Wuliangye Distillery Manufa
85,000,000.00 Yibin Yibin 99.00% 0.99% Incorporated
Co., Ltd. cturing
Yibin Wuliangye Liquor Sales Co., Commer
200,000,000.00 Yibin Yibin 95.00% Incorporated
Ltd. cial
Yibin Wuliang Tequ and Touqu Commer
20,000,000.00 Yibin Yibin 95.00% Incorporated
Brand Marketing Co., Ltd. cial
Yibin Wuliangchun Brand Commer
20,000,000.00 Yibin Yibin 95.00% Incorporated
Marketing Co., Ltd cial
Yibin Wuliangye Series Liquor Commer
20,000,000.00 Yibin Yibin 95.00% Incorporated
Brand Marketing Co., Ltd. cial
Sichuan Yibin Wuliangye Supply Commer
30,000,000.00 Yibin Yibin 99.00% 0.95% Incorporated
and Marketing Co., Ltd. cial
Manufa 100.00
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00 Yibin Yibin Incorporated
cturing %
Sichuan Yibin Wuliangye
Manufa
Environmental Protection Industry 537,000,000.00 Yibin Yibin 51.00% Incorporated
cturing
Co., Ltd.
Business
combination
involving
Sichuan Jinwuxin Technology Co., Commer
14,000,000.00 Yibin Yibin 51.00% entities not
Ltd. cial
under
common
control
Sichuan Jiebeike Environmental Enginee
10,000,000.00 Yibin Yibin 26.01% Incorporated
Technology Co., Ltd. ring
Yibin Changjiangyuan Liquor Co., Manufa 100.00
20,000,000.00 Yibin Yibin Incorporated
Ltd. cturing %
Yibin Changjiangyuan Trade Co., Commer 100.00
19,800,000.00 Yibin Yibin Incorporated
Ltd. cial %
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Yibin Changjiangyuan Distillery Manufa 100.00
18,900,000.00 Yibin Yibin Incorporated
Co., Ltd. cturing %
Yibin Wuliangye Organic Agricult 100.00
10,000,000.00 Yibin Yibin Incorporated
Agriculture Development Co., Ltd. ural %
Yibin Wuliangye Xianlin Manufa
3,000,000.00 Yibin Yibin 90.00% Incorporated
Ecological Liquor Co., Ltd. cturing
Yibin Xianlin Liquor Marketing Commer
3,000,000.00 Yibin Yibin 90.00% Incorporated
Co., Ltd. cial
Sichuan Yibin Wuliangye Jingmei Manufa
14,000,000.00 Yibin Yibin 97.00% 1.53% Incorporated
Printing Co., Ltd. cturing
Commer
Yibin Xinxing Packaging Co., Ltd. 5,000,000.00 Yibin Yibin 98.53% Incorporated
cial
Business
combination
involving
Sichuan Yibin Plastic Packaging Manufa 100.00
150,000,000.00 Yibin Yibin entities not
Materials Company Limited cturing %
under
common
control
Sichuan Yibin Jiang’an Plastic New Manufa 100.00
50,000,000.00 Yibin Yibin Incorporated
Materials Company Limited cturing %
Sichuan Yibin Plastic Packaging Manufa 100.00
50,000,000.00 Yibin Yibin Incorporated
Products Co., Ltd. cturing %
Business
combination
involving
Sichuan Yibin Global Group Manufa 100.00
100,000,000.00 Yibin Yibin entities not
Shenzhou Glass Co., Ltd. cturing %
under
common
control
Business
combination
involving
Sichuan Yibin Global Gelasi Glass Manufa 100.00
200,000,000.00 Yibin Yibin entities not
Manufacturing Co., Ltd. cturing %
under
common
control
Business
combination
involving
Sichuan Yibin Push Group 3D Co., Manufa 100.00
22,133,300.00 Yibin Yibin entities not
Ltd. cturing %
under
common
control
Guangdong Plastic Packaging Fosha Manufa 100.00
49,000,000.00 Foshan Incorporated
Materials Company Limited n cturing %
Sichuan Yibin Wuliangye Investm
50,000,000.00 Yibin Yibin 95.00% Incorporated
Investment (Consulting) Co., Ltd. ent
Wuliangye Dashijie (Beijing) Trade Beijin Commer
20,000,000.00 Beijing 95.00% Incorporated
Co., Ltd. g cial
Handan Yongbufenli Liquor Co., Handa Manufa
500,000,000.00 Handan 51.00% Incorporated
Ltd. n cturing
Linzhang Desheng Liquor Trade Handa Commer
1,000,000.00 Handan 51.00% Incorporated
Co., Ltd. n cial
Handa Commer
Handan Yongbufenli Sales Co., Ltd. 5,000,000.00 Handan 51.00% Incorporated
n cial
Wuguchun Jiu Ye Co., Henan. 373,280,762.00 Huaibi Huaibin Manufa 51.03% Business
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
China n cturing combination
involving
entities not
under
common
control
Huaibi Commer
Huaibin Tenglong Trade Co., Ltd. 5,000,000.00 Huaibin 51.03% Incorporated
n cial
Wuguchun Jiu Ye Sales Co., Henan. Huaibi Commer
10,000,000.00 Huaibin 51.03% Incorporated
China n cial
Sichuan Wuliangye Culture
50,000,000.00 Yibin Yibin Tourism 80.00% Incorporated
Tourism Development Co., Ltd.
Sichuan Wuliangye Tourist Agency
1,000,000.00 Yibin Yibin Tourism 80.00% Incorporated
Co., Ltd.
Commer
Yibin Wuliangye Creart Co., Ltd. 100,000,000.00 Yibin Yibin 45.00% Incorporated
cial
Sichuan Wuliangye NongXiang Commer
100,000,000.00 Yibin Yibin 95.00% Incorporated
Baijiu Co., Ltd. cial
Sichuan Wuliangye New Retail Cheng Chengd Commer
100,000,000.00 90.00% Incorporated
Management Co., Ltd. du u cial
Note on the difference between shareholding proportion and proportion of voting rights in
subsidiary:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing Sparkle
Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,
Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "Creart
Company"), of which the registered capital is RMB100 million. The Company contributes RMB45 million, taking
up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. and
the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through
mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
The basis of controlling the invested company even if holding half or less than half voting rights and
not controlling the invested company even if holding more than half voting rights:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing Sparkle
Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,
Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "Creart
Company"), of which the registered capital is RMB100 million. The Company contributes RMB45 million, taking
up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. and
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through
mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Declared
Net profit or loss
Non- dividends for non-
attributable to non- Closing balance of non-
Subsidiary controlling controlling
controlling interests controlling interests
interests interests in the
in the current period
current period
Yibin Wuliangye Liquor Sales Co.,
5.00% 623,007,257.60 2,339,739,933.25
Ltd.
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(3) Key financial information of important non-wholly-owned subsidiaries
Unit: RMB
Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
64,483,211,627.69 3,557,881,234.95 68,041,092,862.64 21,432,661,136.14 104,253,778.92 21,536,914,915.06
Opening balance
Yibin Wuliangye Liquor Sales Co.,
Ltd.
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
50,607,865,351.64 3,063,184,649.27 53,671,050,000.91 19,615,941,084.61 11,076,120.80 19,627,017,205.41
Unit: RMB
H1 2024
Subsidiary
Net cash generated from/used in operating
Operating revenue Net profit Total comprehensive income
activities
38,924,211,000.09 12,460,145,152.08 12,460,145,152.08 9,335,517,505.07
H1 2023
Yibin Wuliangye Liquor Sales Co.,
Ltd. Net cash generated from/used in operating
Operating revenue Net profit Total comprehensive income
activities
34,753,003,408.33 12,087,869,194.03 12,087,869,194.03 7,643,096,296.42
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2. Interests in joint ventures or associates
(1) Important joint ventures or associates
The Company’s Accounting
Principal Place of interest (%) treatment of
Nature of
Joint venture or associate place of registratio investment in the
business Indire
business n Direct joint venture or
ct associate
Sichuan Yibin Wuliangye Group Finance
Yibin Yibin Finance 40.56% Equity method
Co., Ltd.
(2) Key financial information of important associates
Unit: RMB
Closing balance/H1 2024 Opening balance/H1 2023
Sichuan Yibin Wuliangye Group Finance Sichuan Yibin Wuliangye Group Finance
Co., Ltd. Co., Ltd.
Current assets 36,865,397,768.88 11,767,876,781.26
Non-current assets 16,824,958,310.26 41,146,331,998.09
Total assets 53,690,356,079.14 52,914,208,779.35
Current liabilities 48,829,642,034.40 48,080,869,222.79
Non-current liabilities 2,866,771.42 5,478,067.66
Total liabilities 48,832,508,805.82 48,086,347,290.45
Non-controlling interests
Equity attributable to the shareholders of
4,857,847,273.32 4,827,861,488.90
the Company as the parent
Share of net assets in proportion to the
1,970,342,854.06 1,958,180,619.90
Company’s interest
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Carrying amount of equity investments
1,970,342,854.06 1,958,180,619.90
in associates
Fair value of equity investments in
associates with quoted prices on the open
market
Operating revenue 199,580,727.31 204,373,885.44
Net profit 64,385,784.42 59,833,900.69
Net profit of discontinued operations
Other comprehensive income
Total comprehensive income 64,385,784.42 59,833,900.69
Dividends received from the associates
13,952,640.00 23,638,368.00
in the current period
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(3) Aggregate financial information of unimportant joint ventures and associates
Unit: RMB
Closing balance/H1 2024 Opening balance/H1 2023
Joint ventures:
Aggregate amount in proportion to the
Company’s interests
Associates:
Total carrying amount of investments 57,948,078.33 62,185,620.79
Aggregate amount in proportion to the
Company’s interests
--Net profit -4,237,542.46 -3,641,921.77
--Total comprehensive income -4,237,542.46 -3,641,921.77
3. Interests in structured entities not included in the consolidated financial statements
There were no structured entities that were not included in the consolidated financial statements in the
Reporting Period.
XI Government Grants
1. Government grants recognised at the end of the Reporting Period at the amount receivable
□ Applicable Not applicable
Reasons for not receiving the projected amount of government grants at the projected time:
□ Applicable Not applicable
2. Liability items involving government grants
Applicable □ Not applicable
Unit: RMB
Amount
recorder in Amount Other
New grant
non- transferred to changes Related to
Accounting in the
Opening balance operating other income in in the Closing balance assets/inco
item current
income in the current current me
period
the current period period
period
Deferred Related to
251,827,069.86 239,700.00 6,307,810.19 245,758,959.67
income assets
Deferred Related to
1,216,255.51 25,000.02 1,191,255.49
income income
Total 253,043,325.37 239,700.00 6,332,810.21 246,950,215.16
3. Government grants through profit or loss
Applicable □ Not applicable
Unit: RMB
Accounting item H1 2024 H1 2023
Other income 166,637,116.01 185,029,071.91
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
XII Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Unit: RMB
Closing fair value
Item Fair value Fair value
Fair value measurement
measurement at measurement at Total
at level III
level I level II
I Consistent fair value
-- -- -- --
measurement
Receivables financing 19,576,430,505.90 19,576,430,505.90
Other non-current financial assets 1,200,000.00 1,200,000.00
Total assets measured at fair value
19,577,630,505.90 19,577,630,505.90
on an ongoing basis
II Fair value measurement on a
-- -- -- --
non-ongoing basis
2. Basis for determining the market value of fair value measurement at level I on an ongoing and non-
ongoing bases
□ Applicable Not applicable
3. For fair value measurement at level II on an ongoing and non-ongoing bases, qualitative and
quantitative information on the valuation techniques used and significant parameters
□ Applicable Not applicable
4. For fair value measurement at level III on an ongoing and non-ongoing bases, qualitative and
quantitative information on the valuation techniques used and significant parameters
Receivables financing: Due to the short term of notes receivable held by the Company, and the selling time,
selling price and selling proportion cannot be estimated reliably, the Company measures the notes receivable
according to the par value as a reasonable estimate of fair value.
Other non-current financial assets: Since the Company holds other non-current financial assets that are not
traded in an active market, and its equity interest in the invested company is low and has no significant influence,
it is not realistic and feasible to value the equity in the invested company using the income approach or market
approach, and there is no recent introduction of external investors to the invested company or transfer of equity
among shareholders that can be used as a reference basis for determining fair value. In addition, the Company has
not found any significant changes in the internal and external environment of the invested company since the
beginning of the year from the analysis of the relevant information available, therefore, it is a "limited
circumstances" in which the carrying cost can be used as the best estimate of the fair value, and therefore the fair
value is based on the cost at the end of the year.
5. For fair value measurement at level III on an ongoing basis, reconciliation information between
beginning and ending carrying values and sensitivity analysis of unobservable parameters
□ Applicable Not applicable
6. For fair value measurement items on a continuous basis, if there is a conversion between different
levels in the current period, the reasons for the conversion and the policy for determining the conversion
time point
□ Applicable Not applicable
133
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
7. Changes in valuation techniques occurring in the current period and reasons for changes
□ Applicable Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable Not applicable
XIII Related Parties and Related-Party Transactions
1. Information on the parent company of the Company
The parent
Place of The parent
Nature of company’s voting
Name of the parent company registratio Registered capital company’s interest
business right percentage in
n in the Company
the Company
Yibin Development Holding
Yibin Investment RMB5 billion 34.43% 34.43%
Group Co., Ltd.
Information on the parent company of the Company:
Yibin Development Holding Group Co., Ltd. is a wholly state-owned company funded and established by the
People’s Government of Yibin City. Legal representative of the company is Han Chengke and its registered
capital is RMB5 billion. Its business scope includes the state-owned property right (including state-owned shares),
state-owned assets and state investments as authorized by the People's Government of Yibin City. The company,
as an investor, conducts capital management and assets management by holding, shareholding, investment and
receiving assignment, transfer, auction, and lease within the limits of authority.
Main functions of Yibin Development Holding Group Co., Ltd. include: First, holding state-owned equity
and exercising shareholder’s rights in municipal-level enterprise on behalf of the People’s Government of Yibin
City; second, raising funds for key construction projects as an investment and financing platform of the People’s
Government of Yibin City, and investing in such projects by shareholding and holding; third, promoting the
preserve and increase the value of state-owned assets and economic development of the city by capital
management and assets management.
Yibin Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds 100%
of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,131,778,031.00 shares of the
Company directly or indirectly, taking up 54.92% of the total share capital of the Company.
The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin
City is the ultimate controller of the Company.
2. Subsidiaries of the Company
Refer to the Note "X Interests in Other Entities" for information about subsidiaries of the Company.
3. Joint ventures and associates of the Company
Refer to the Note "X Interests in Other Entities" for information about important joint ventures and
associates of the Company.
Other joint ventures or associates that were involved in related-party transactions with the Company in the
current period, or that were involved in related-party transactions with the Company in prior periods with
balances lasting into the current period:
Name of joint venture or associate Relationship with the Company
Sichuan Yibin Wuliangye Group Finance Co., Ltd. Associate
Yibin Jiamei Intelligent Packaging Co., Ltd. Associate
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
4. Other related parties
Names of other related parties Relationship between other related parties and the Company
The legal representative of the Company concurrently serves as
the Secretary of the CPC Committee and Chairman of the
Board of Wuliangye Group, and some directors and officers of
Sichuan Yibin Wuliangye Group Co., Ltd.
the Company concurrently hold positions in Wuliangye Group.
Wuliangye Group directly holds a 20.40% interest in the
Company.
Anji Logistic Group Co., Ltd. Sichuan Subsidiary of Wuliangye Group
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. Subsidiary of Anji Logistic Group
Yibin Wuliangye Group I&E Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Push Group Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Push Mold Co., Ltd. Subsidiary of Push Group
Sacred Mountain Molin Group Co., Ltd. Si Chuan Subsidiary of Wuliangye Group
Sichuan Wuliangye Products Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Global Group Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Global Huaxin Commercial Development Co.,
Subsidiary of Global Group
Ltd.
WuLiangYe Group Health Liquor Co., Ltd. Yibin. Sichuan Subsidiary of Wuliangye Group
Yibin Global Photoelectric Energy Conservation Technology
Subsidiary of Global Group
Co., Ltd.
Chengdu PUTH Medical Technology Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push Building Materials Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Push Auto Parts Co., Ltd. Subsidiary of Push Group
Push Information & Automation (Chengdu) Co., Ltd. Subsidiary of Push Group
Sichuan Yibin Wuliangye Group Ecological Distillery and
Subsidiary of Wuliangye Group
Marketing Co., Ltd.
Sichuan Yibin Push Intelligent Technology Co., Ltd. Subsidiary of Push Group
Chengdu Huayu Glass Manufacturing Co., Ltd. Subsidiary of Global Group
Yibin Push Linko Technology Co., Ltd. Subsidiary of Push Group
Sichuan Putian Packaging Co., Ltd. Subsidiary of Push Group
Sacred Mountain White Magnolia Industrial Co., Ltd., Sichuan Subsidiary of Sacred Mountain Molin Group
Yibin Push Assets Management Co., Ltd. Subsidiary of Push Group
Sichuan Andaxin Logistics Co., Ltd. Subsidiary of Anji Logistic Group
Sichuan Yibin Global Environmental Technology Co., Ltd. Subsidiary of Global Group
Wuming Tea Industry Holding Co., Ltd. Subsidiary of Wuliangye Tea Industry Development Fund
Sichuan Linhu Tea Industry Co., Ltd. Subsidiary of Chuanhong Tea Group
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Yibin Licai Group Co., Ltd. Subsidiary of Wuliangye Group
Yibin Wucai Packaging Co., Ltd. Subsidiary of Licai Group
Yibin Huanyu Trading Co., Ltd. Subsidiary of Health Liquor Group
Sichuan Nongwu E-commerce Co., Ltd. Subsidiary of Chuanhong Tea Group
Sichuan Global Insulator Co., Ltd. Subsidiary of Global Group
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Sichuan Chuanhong Tea Group Co., Ltd. Subsidiary of Wuliangye Tea Industry Development Fund
Sichuan Yibin Push International Co., Ltd. Subsidiary of Push Group
Zhejiang Pukai New Material Co., Ltd. Subsidiary of Push Group
Yibin Airport Aviation Service Co., Ltd. Subsidiary of Sanjiang Investment and Construction Group
Yibin Grace Fiber Industry Co., Ltd. Subsidiary of Grace Group
Yibin City Commercial Bank Co., Ltd. Wuliangye Group holds a 19.99% interest.
Sichuan Yibin Push Drive Co., Ltd. Subsidiary of Push Group
Yibin Shunan Cultural Tourism and Creative Product
Subsidiary of Shunan Cultural Tourism Investment Group
Development Co., Ltd.
Yibin Construction Investment Group Jinpaiyuan Supply Chain Subsidiary of Yibin Urban and Traffic Construction Investment
Management Co., Ltd. Group
Sichuan United Liquor Investment Management Co., Ltd. Subsidiary of Anji Logistic Group
Yibin Xinjinxiu Garden Landscaping Co., Ltd. Subsidiary of Grace Group
Yibin Shunan Mingkun Supply Chain Service Co., Ltd. Subsidiary of Shunan Cultural Tourism Investment Group
Yibin Sanjiang Huiyuanhe Agricultural Investment
Subsidiary of Sanjiang Investment and Construction Group
Development Co., Ltd.
Yibin Wuliangye Ecological Distillery Co., Ltd. Subsidiary of Wuliangye Group
Sichuan Huansheng Pharmacy Co., Ltd. Subsidiary of Wuliang Pharmaceutical
Chengdu Branch of Anji Logistic Group Co., Ltd. Sichuan Subsidiary of Anji Logistic Group
Yibin Shunanzhuhai Scenic Area Management Co., Ltd. Subsidiary of Shunan Cultural Tourism Investment Group
5. Related-party transactions
(1) Related-party transactions involving purchase and sale of goods, as well as receipt and rendering of
services
Purchases of goods/receipt of services:
Unit: RMB
Over
the
Appro
appro
ved
ved
Content of transa
Related party H1 2024 transa H1 2023
transaction ction
ction
amoun
amou
t
nt or
not
Sacred Mountain Molin Group Co., Ltd. Si Packaging
240,466,851.82 207,001,476.34
Chuan materials, etc.
Wuming Tea Industry Holding Co., Ltd. PPE, etc. 175,441,681.54 2,337,444.26
Sichuan Yibin Global Huaxin Commercial Raw materials,
123,235,167.33 202,532,443.60
Development Co., Ltd. glass bottles, etc.
Raw materials,
Sichuan Wuliangye Products Co., Ltd. 79,167,460.88 25,917,444.71
etc.
Sacred Mountain White Magnolia Industrial
PPE, etc. 53,283,746.48 45,870,444.38
Co., Ltd., Sichuan
Yibin Wuliangye Ecological Distillery Co., Liquor products,
51,418,327.21
Ltd. etc.
Anti-counterfeit
Sichuan Yibin Push International Co., Ltd. 46,423,262.87
labels etc.
136
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Raw materials,
Sichuan Putian Packaging Co., Ltd. 37,246,303.40 7,421,727.40
etc.
Chengdu PUTH Medical Technology Co., Raw materials,
20,854,338.99 37,461,741.54
Ltd. etc.
Yibin Sanjiang Huiyuanhe Agricultural Raw materials,
19,953,657.42
Investment Development Co., Ltd. etc.
Sichuan Huansheng Pharmacy Co., Ltd. Medicines, etc. 12,757,753.98 29,400.00
Sichuan Yibin Push Mold Co., Ltd. Moulds, etc. 11,690,265.49 11,769,911.50
Sichuan Yibin Push Drive Co., Ltd. Boxes, etc. 11,543,968.28 8,747,674.70
Push Information & Automation (Chengdu) Packaging
10,567,769.92 783,927.47
Co., Ltd. materials
Yibin Xinjinxiu Garden Landscaping Co., Raw materials,
8,388,440.05
Ltd. etc.
Yi Bin Jia Mei Smartpackaging Co., Ltd. Raw materials 7,565,560.54 1,260,840.54
Chengdu Huayu Glass Manufacturing Co.,
Glass bottles, etc. 7,366,799.00 12,423,336.45
Ltd.
Bottle caps,
Sichuan Yibin Push Mold Co., Ltd. comprehensive 5,269,999.98 9,509,372.10
materials, etc.
Sichuan Yibin Push Building Materials Co., Packaging
3,220,159.28 5,376,221.73
Ltd. materials
Raw materials,
Sichuan Yibin Push Auto Parts Co., Ltd. 1,312,316.53 5,718,676.00
etc.
WuLiangYe Group Health Liquor Co., Ltd.
Health liquor 105,592,684.05
Yibin. Sichuan
Sichuan Chuanhong Tea Group Co., Ltd. Tea 12,684.00 24,683,627.25
Yibin Huanyu Trading Co., Ltd. Health liquor 13,207,079.46
Sichuan Yibin Wuliang Pharmaceutical Co.,
Medicines, etc. 11,491,021.86
Ltd.
Sichuan Yibin Global Environmental
Glass bottles 9,393.89 8,561,271.74
Technology Co., Ltd.
Other miscellaneous purchases of goods
8,229,723.51 4,493,622.56
from related parties
Total purchases of goods from related parties 935,425,632.39 752,191,389.64
Freight and
miscellaneous
Anji Logistic Group Co., Ltd. Sichuan 353,515,103.36 302,263,739.29
charges, service
charges, etc.
External labour
Sichuan Andaxin Logistics Co., Ltd. 87,112,742.55 75,645,109.14
costs
External
Yibin Wucai Packaging Co., Ltd. processing 35,673,826.80 1,030,482.77
expenses
Freight and
miscellaneous
Sichuan Yibin Wuliangye Group Anji
charges, shuttle 23,464,521.31 27,513,681.27
Logistic Co., Ltd.
service charges,
etc.
External
Chengdu PUTH Medical Technology Co.,
processing 12,019,189.03 4,086,461.50
Ltd.
expenses, etc.
Marketing support
Sichuan Nongwu E-commerce Co., Ltd. 9,888,822.08
expenses
Sichuan Wuliangye Products Co., Ltd. Repair expenses, 8,617,973.65 14,132,830.19
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
and marketing
support expenses
Marketing support
Wuming Tea Industry Holding Co., Ltd. 7,635,079.10 3,131,998.67
expenses, etc.
External
Yi Bin Jia Mei Smartpackaging Co., Ltd. processing 4,124,506.03 64,128,580.14
expenses
Sichuan Yibin Push Intelligent Technology Repair expenses,
2,346,546.16 6,404,316.39
Co., Ltd. etc.
Promotion
Sichuan Chuanhong Tea Group Co., Ltd. 1,550,864.06 8,461,698.11
expenses, etc.
Other miscellaneous receipts of services from
19,648,796.02 11,105,868.03
related parties
Total receipts of services from related parties 565,597,970.15 517,904,765.50
Sale of goods/rendering of services:
Unit: RMB
Content of
Related party H1 2024 H1 2023
transaction
Liquor products,
Yibin Wuliangye Group I&E Co., Ltd. 419,701,184.60 367,008,796.93
etc.
Bottle caps, slices,
Sichuan Putian Packaging Co., Ltd. 87,079,604.00 69,286,660.73
etc.
Liquor products,
Sichuan Nongwu E-commerce Co., Ltd. 77,782,379.87 1,172,103.55
etc.
Yibin Shunan Mingkun Supply Chain Service Liquor products,
26,548,495.48 0.00
Co., Ltd. etc.
Chengdu PUTH Medical Technology Co., Ltd. Raw materials, etc. 18,603,435.51 28,507,995.29
Liquor products,
Wuming Tea Industry Holding Co., Ltd. 14,293,380.59 179,228,782.31
etc.
Chengdu Huayu Glass Manufacturing Co., Ltd. Cartons, etc. 9,161,960.72 5,117,674.19
Yi Bin Jia Mei Smartpackaging Co., Ltd. Paper products, etc. 7,915,329.61 1,214,711.36
Liquor products,
Sichuan Wuliangye Products Co., Ltd. 7,541,166.60 5,145,132.71
etc.
Packaging boxes,
Sichuan Linhu Tea Industry Co., Ltd. 6,064,031.62 3,244,174.16
etc.
Packaging boxes,
Sichuan Chuanhong Tea Group Co., Ltd. 5,071,810.47 3,479,588.87
etc.
Sichuan Yibin Push Drive Co., Ltd. Slices, etc. 4,194,872.53 5,578,997.82
Yibin Airport Aviation Service Co., Ltd. Liquor products 2,539,000.00 31,526,159.28
Yibin Shunan Cultural Tourism and Creative Liquor products,
764,890.39 442,477,857.70
Product Development Co., Ltd. etc.
Sichuan United Liquor Investment Management
Liquor products 83,920.33 14,108,849.55
Co., Ltd.
Yibin Construction Investment Group Jinpaiyuan
Liquor products 300,887,362.93
Supply Chain Management Co., Ltd.
Sichuan Yibin Wuliangye Group Ecological
Liquor products 111,469,944.62
Distillery and Marketing Co., Ltd.
Sichuan Global Insulator Co., Ltd. Glass bottles, etc. 40,284,110.80
Liquor products,
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 11,654,946.03
etc.
Zhejiang Pukai New Material Co., Ltd. Slices 8,449,819.82
Other miscellaneous sales to related parties 19,430,227.41 28,802,056.93
138
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Total 706,775,689.73 1,658,645,725.58
(2) Leases between the Company and related parties
The Company as the lessor:
Unit: RMB
Type of the Lease income recognized in Lease income recognized in
Lessee
leased asset H1 2024 H1 2023
Chengdu Branch of Anji Logistic Group Buildings and
1,637,781.60
Co., Ltd. Sichuan constructions
Buildings and
constructions,
Other miscellaneous leases 2,605,181.56 377,880.88
and warehouses,
etc.
139
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
The Company as the lessee:
Unit: RMB
Lease expense on short-term leases
and leases of low-value assets Variable lease payments not included
Lease payments Interest expense on lease liabilities Addition of right-of-use assets
Type of accounted with a simplified in lease liabilities (if applicable)
Lessor the leased approach (if applicable)
asset
H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023
Yibin
Push
Linko Warehous
306,778.03 4,074,347.44 3,154,914.94 2,422,072.41 10,283.63 7,990,918.52
Technolo es
gy Co.,
Ltd.
Anji
Logistic
Warehous
Group 2,026,088.80 47,836,197.32 59,220,761.70 12,579,302.60 6,728,926.64 702,814.36
es
Co., Ltd.
Sichuan
Sichuan
Yibin
Global
Buildings
Huaxin
and
Commerc 2,057,142.84 1,714,285.70 31,473.87 77,364.07
constructi
ial
ons
Develop
ment Co.,
Ltd.
Sichuan
Buildings
Yibin
and
Global 1,667,388.67 762,616.78 157,995.92 6,743.29 18,018,268.24
constructi
Group
ons
Co., Ltd.
Sichuan Operatio
Yibin n and
289,980.00 1,094,532.67 13,258,064.75 14,627,700.00 1,517,481.49 398,996.11 93,202,000.80
Wuliangy manage
e Group ment
140
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Co., Ltd. areas
(note 2)
Sichuan
Buildings
Yibin
and
Licai 1,363,000.00 2,948,126.00 1,551,764.00 131,626.38 26,679,866.39
constructi
Group
ons
Co., Ltd.
Sichuan
Yibin
Land
Wuliangy 123,261,527.65 148,304,273.22 11,867,786.67 4,045,258.53 847,706,504.22
(note 1)
e Group
Co., Ltd.
Yibin
Push Buildings
Assets and
1,820,005.74 1,468,639.17 1,215,960.00 1,823,940.00 3,512.90 43,326.59
Manage constructi
ment Co., ons
Ltd.
Sichuan
Buildings
Yibin
and
Push 4,612,887.62 1,255,268.57 197,104.08 113,675.82 26,280,543.35
constructi
Group
ons
Co., Ltd.
Other
miscellan Warehous
13,691,636.07 553,877.44 1,266,909.13 8,255,317.47 40,411.63 265,621.71 2,539,615.86
eous es, etc.
leases
Total 17,677,482.90 1,648,410.11 53,730,550.50 66,792,441.81 163,893,019.67 183,472,328.38 14,660,490.93 4,950,986.12 1,014,426,798.86 7,990,918.52
Notes to the leases between the Company and related parties:
Note 1: On 22 January 2024, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into a Land Lease Agreement, according to which Wuliangye
Group leased Wujiaba Land Parcel, Zongchang Land Parcel, Ziyan Land Parcel I, Fuzao Land Parcel, Zhuchangqu Land Parcel, Guifei Land Parcel, Yuanmingyuan
Land Parcel I and II, Nanxi Land Parcel I, II, and III, and 1,000 mu of land in the north side of Hongba Road, totalling 3,697,845.83 square meters, to the Company.
The annual rent is RMB295,827,666.4, and the lease term is from 1 January 2024 to 31 December 2026.
Land price criterion: The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. is formulated with reference to the land lease
criterion of previous years and in accordance with the Reply of Yibin Land Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of
the Land Lease Criterion (YGTH [2010] No. 53, 12 March 2010), which states that "the rent of RMB50 to RMB110 per square meter per year for the industrial land
141
Interim Report 2024 of Wuliangye Yibin Co., Ltd.
in this area is consistent with prevailing land price of Yibin". The Company and Wuliangye Group determine the rent of leased land as RMB80 per square meter per
year through mutual agreement.
Note 2: On 22 January 2024, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the Operation and Management Areas Lease Agreement,
according to which Wuliangye Group leases part of the operation and management areas (including the office building, multi-function pavilion, etc.) owned by it to
the Company. The leased area is 27,121.32 square meters, with the annual rent of RMB29.2552 million. The lease term is from 1 January 2024 to 31 December 2026.
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
(3) Guarantees between the Company and related parties
There were no guarantees between the Company and related parties during the Reporting Period.
(4) Loans between the Company and related parties
There were no loans between the Company and related parties during the Reporting Period.
(5) Asset transfers and debt restructuring involving related parties
There were no asset transfers or debt restructuring involving related parties during the Reporting Period.
(6) Other related-party transactions
a) Procurement of equipment, etc.
Unit: RMB
Related party Content of transaction H1 2024 H1 2023
Trademark and logo royalties
Sichuan Yibin Wuliangye Group Co., Ltd. 583,579,159.03 523,042,335.92
(note)
Sichuan Yibin Wuliangye Group Co., Ltd. Comprehensive service fee 46,845,485.49
Other miscellaneous purchases of equipment, etc. 10,895,250.97 5,965,216.58
Total 594,474,410.00 575,853,037.99
Note: On 31 December 2023, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the
Trademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses to the Company the
nonexclusive right of use of one factory emblem, the nonexclusive right of use of 19 trademarks, exclusive right
of use of 202 trademarks, and unpaid exclusive right of use of 22 trademarks. The royalty shall be paid by the
following means: 1) The royalty of "factory emblem" shall be paid at 1.27% of the annual sales revenue from all
liquor products using the factory emblem; 2) no royalty shall be paid for trademark of liquor products of which
the annual sales revenue is less than 50 tons, and royalty of trademark of liquor products sold by 50 tons
(inclusive) or more shall be calculated by the total sales volume. Royalties of trademark shall be paid by the
following means: Trademark royalty of products with selling price at RMB30,000 per ton and above shall be
RMB1,500 per ton; and that of products with selling price at RMB12,000 per ton and above but below
RMB30,000 per ton shall be RMB1,400 per ton; that of products with selling price below RMB12,000 shall be
RMB1,300 per ton. The Agreement is valid from 1 January 2024 to 31 December 2026.
b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co., Ltd.: On 28 June 2024, the
Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (hereinafter referred to as "Wuliangye Group
Finance") entered into the Financial Service Agreement. According to the Agreement, the daily balances of the
Company’s deposits in as well as loans and credit lines from Wuliangye Group Finance in 2024 shall be no more
than RMB55 billion and RMB10 billion, respectively.
The total deposits of the Company with Wuliangye Group Finance was RMB41,748,342,979.22 at the end of
the period; Sichuan Yibin Wuliangye Group Co., Ltd. issued the Commitment Letter to the Company, assuring
that relevant deposits and loans of the Company with Wuliangye Group Finance are safe; the current interest
income is RMB556,299,642.15 in total; and Wuliangye Group Finance issued bank acceptance bills of
RMB19,355,289.75 for the Company during the current period (undue bank acceptance bills as at 30 June 2024:
RMB19,355,289.75).
c) Related-party transactions with Yibin City Commercial Bank Co., Ltd.: The total deposits of the Company
with Yibin City Commercial Bank Co., Ltd. was RMB12,908,978,373.80 at the end of the period; the current
interest income is RMB159,152,209.70 in total; Yibin City Commercial Bank Co., Ltd. issued bank acceptance
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
bills of RMB188,335,650.00 for the Company during the current period (undue bank acceptance bills as at 30
June 2024: RMB188,335,650.00).
6. Amounts due from and to related parties
(1) Amounts due from related parties
Unit: RMB
Closing balance Opening balance
Allow Allow
ance ance
Item Related party for for
Gross amount doubtf Gross amount doubtf
ul ul
accou accoun
nt t
Account receivable Sichuan Putian Packaging Co., Ltd. 11,523,877.83 11,034,316.71
Chengdu Huayu Glass Manufacturing
Account receivable 6,482,321.07 3,953,526.99
Co., Ltd.
Chengdu PUTH Medical Technology
Account receivable 2,537,100.00
Co., Ltd.
Account receivable Yibin Grace Fiber Industry Co., Ltd. 2,215,549.57 2,641,212.86
Other miscellaneous accounts
Account receivable 2,392,257.38 1,236,709.66
receivable
Sacred Mountain White Magnolia
Prepayment 3,398,230.09 3,398,230.09
Industrial Co., Ltd., Sichuan
Prepayment Wuming Tea Industry Holding Co., Ltd. 6,016,608.60
Yibin Xinjinxiu Garden Landscaping
Prepayment 4,380,147.38
Co., Ltd.
Prepayment Other miscellaneous prepayments 850,127.77 821,470.76
Sichuan Yibin Wuliangye Group
Monetary assets 1,090,649,408.05 606,922,650.12
Finance Co., Ltd.
Monetary assets Yibin City Commercial Bank Co., Ltd. 243,851,435.64 118,345,047.42
Other receivables Other miscellaneous other receivables 991,114.85 1,037,121.60
The amounts related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. and Yibin City Commercial
Bank Co., Ltd. in this table represented the interest on time deposits accrued on an accrual basis, and the closing
balances were presented in monetary assets.
(2) Amounts due to related parties
Unit: RMB
Item Related party Closing gross amount Opening gross amount
Yibin Construction Investment Group Jinpaiyuan
Contract liability 36,106,483.50 44,602,126.69
Supply Chain Management Co., Ltd.
Contract liability Sichuan Wuliangye Products Co., Ltd. 30,505,492.41 35,457,682.68
Sichuan Yibin Wuliangye Group Ecological
Contract liability 11,699,334.09 1,732,228.75
Distillery and Marketing Co., Ltd.
Contract liability Yibin Wuliangye Group I&E Co., Ltd. 3,191,942.80 199,518,341.92
Contract liability Wuming Tea Industry Holding Co., Ltd. 1,814,235.12 620,639.12
Contract liability Sichuan Nongwu E-commerce Co., Ltd. 1,536,907.60 1,130,074.52
Contract liability Anji Logistic Group Co., Ltd. Sichuan 1,408,823.45 50,286.24
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Contract liability Sacred Mountain Molin Group Co., Ltd. Si Chuan 1,307,000.30 1,023,041.91
Contract liability Sichuan Yibin Push Building Materials Co., Ltd. 1,266,198.00 927,779.69
Yibin Shunan Mingkun Supply Chain Service Co.,
Contract liability 500,400.00 26,548,672.57
Ltd.
Contract liability Other miscellaneous contract liabilities 4,820,980.85 3,922,376.57
Other payable Wuming Tea Industry Holding Co., Ltd. 2,312,536.00 57,242,321.41
Yibin Sanjiang Huiyuanhe Agricultural Investment
Other payable 1,883,607.50 1,883,607.50
Development Co., Ltd.
Sichuan Yibin Push Intelligent Technology Co.,
Other payable 1,712,809.49 2,105,565.41
Ltd.
Yibin Shunanzhuhai Scenic Area Management Co.,
Other payable 1,500,000.00
Ltd.
Push Information & Automation (Chengdu) Co.,
Other payable 1,496,620.39 1,480,720.39
Ltd.
Other payable Anji Logistic Group Co., Ltd. Sichuan 751,113.09 216,589,647.24
Other payable Other miscellaneous other payables 6,660,038.58 5,459,594.24
Dividend payable Yibin Development Holding Group Co., Ltd. 6,241,679,253.40
Dividend payable Sichuan Yibin Wuliangye Group Co., Ltd. 3,713,724,151.37
Note payable Anji Logistic Group Co., Ltd. Sichuan 10,518,942.06 5,757,438.64
Note payable Yi Bin Jia Mei Smartpackaging Co., Ltd. 9,850,000.00
Sichuan Yibin Global Huaxin Commercial
Note payable 7,934,890.71 14,607,310.45
Development Co., Ltd.
Note payable Yibin Wucai Packaging Co., Ltd. 7,000,000.00
Yibin Global Photoelectric Energy Conservation
Note payable 2,286,618.47
Technology Co., Ltd.
Note payable Wuming Tea Industry Holding Co., Ltd. 1,638,944.60
Yibin Sanjiang Huiyuanhe Agricultural Investment
Note payable 1,320,000.00
Development Co., Ltd.
Note payable Chengdu Huayu Glass Manufacturing Co., Ltd. 6,300,559.87
Note payable Other miscellaneous notes payable 1,339,025.29 148,734.18
Sichuan Yibin Global Huaxin Commercial
Account payable 12,710,171.71 12,485,412.92
Development Co., Ltd.
Account payable Sichuan Yibin Wuliangye Group Co., Ltd. 6,998,669.23
Account payable Chengdu Huayu Glass Manufacturing Co., Ltd. 5,809,711.88 359,504.22
Sichuan Yibin Global Environmental Technology
Account payable 3,774,267.20 3,825,469.04
Co., Ltd.
Account payable Sichuan Yibin Push Drive Co., Ltd. 1,256,917.98
Account payable Sichuan Yibin Push International Co., Ltd. 108,505.76 1,433,373.36
Account payable Anji Logistic Group Co., Ltd. Sichuan 93,288.05 135,225,553.79
Account payable Sichuan Putian Packaging Co., Ltd. 37,096.80 1,350,604.28
Account payable Sacred Mountain Molin Group Co., Ltd. Si Chuan 224,885,409.87
Account payable Sichuan Wuliangye Products Co., Ltd. 3,727,072.00
Account payable Yibin Push Assets Management Co., Ltd. 3,096,000.00
Account payable Other miscellaneous accounts payable 309,191.50 1,852,234.59
Advance from
Other miscellaneous advances from customers 17,142.71
customer
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XIV Undertakings and Contingencies
1. Significant undertakings
The Company had no significant undertakings which need to be disclosed during the Reporting Period.
2. Contingencies
(1) Contract dispute between Handan Yongbufenli Liquor Co., Ltd. (hereinafter referred to as
“Yongbufenli”) and Chengdu Yuexin Liquor Co., Ltd. (hereinafter referred to as “Yuexin Liquor”): In October
2022, Yongbufenli filed a lawsuit with the Intermediate People's Court of Handan against Yuexin Liquor,
requesting a) payment of RMB100.4928 million in outstanding payments from the defendant, plus interest
calculated at the Loan Prime Rate (“LPR”) from 21 July 2020 to the date when the payment is made in full; and
b) the defendant to bear all litigation and appraisal fees. In March 2023, the first-instance judgment dismissed
Yongbufenli's claims. In April 2023, Yongbufenli filed a second-instance appeal with the Supreme People's
Court of Hebei, and the case was reopened on 10 April 2024. The judgment has not yet been made.
(2) Contract dispute between Handan Yongbufenli Liquor Co., Ltd. (hereinafter referred to as
“Yongbufenli”) and Sichuan Baijiadi Liquor Co., Ltd. (hereinafter referred to as “Baijiadi”): In January 2022,
Yongbufenli filed a lawsuit with the People's Court of Linzhang County against Baijiadi over a sales contract
dispute involving an amount of RMB72.4635 million. The court was requested to a) order the defendant to pay
RMB72.4635 million, along with the interest calculated at the LPR published by the National Interbank
Funding Center from 16 September 2020 to the date when the payment is made in full; and b) order the
defendant to bear all litigation and appraisal fees. On 22 July 2023, the People's Court of Linzhang County held
a hearing on the case, and on 26 March 2024, the People's Court of Linzhang County dismissed Yongbufenli's
claims in a judgment. In April 2024, Yongbufenli filed an appeal for a second trial with the Intermediate
People's Court of Handan. The second trial was held on 12 June 2024 and the judgment has not yet been made.
(3) Construction contract dispute between the Company and Xi'an Construction Engineering Group Co.,
Ltd. (hereinafter referred to as “Xi'an Construction Engineering Group”), with an involved amount of
RMB21.6233 million: In April 2023, the People's Court of Cuiping District, Yibin City, made the first-instance
judgment, requiring Xi'an Construction Engineering Group to compensate the Company for various losses
totalling RMB7.5327 million. After offsetting the outstanding project payments, Xi'an Construction Engineering
Group shall still pay the Company RMB1.7194 million. Both parties appealed against the first-instance
judgment. The second-instance court dismissed the appeal and upheld the original judgment.
XV Post-Balance Sheet Date Events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.
2. Profit distribution
The Company has no interim dividend plan, either in the form of cash or bonus issue.
3. Note on other post-balance sheet date events
The Company has no other post-balance sheet date events which need to be disclosed.
XVI Other Significant Matters
1. Annuity plan
The Company obtained the reply of the State-owned Assets Supervision and Administration Commission of
the People’s Government of Yibin City on the Plan of Establishing the Corporate Annuity Plan of the Company
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(YGZW [2018] No. 221) on 14 September 2018, and had filed with the Department of Human Resources and
Social Security of Sichuan Province on 30 October 2018. On 21 August 2023, the Yibin Human Resources and
Social Security Bureau agreed to the Company's revised Corporate Annuity Plan for filing and implementation.
Participants of the corporate annuity plan of the Company include: (1) Employees who have entered into
labour contracts with the Company; (2) employees who participate in the basic old-age insurance system for
enterprise employees according to the law and perform the obligation of payment; and (3) employees who are on
duty and registered (excluding the probation period) will participate the corporate pension plan on a voluntary
basis.
Expenses for the corporate annuities shall be shared by the Company and the employees. Contribution by an
employee shall be 4% of the contribution base of such employee, and the monthly contribution base of the
employee shall be the average wage in the previous year. Total amount of contribution by the Company shall be 8%
of the total annual wage paid by the Company, which shall be distributed to individual accounts of the employees
at 7% of the contribution base of the employees, while the remaining 1% shall be distributed to the corporate
account as incentives for rewarding personnel who make significant contributions to the Company and for
redistribution to employees of the Company.
2. Segment information
The Company has no other businesses than liquor products which have significant impact on the operating
result. The Company has no segment information that needs to be disclosed since revenue of the Company is
mainly generated within China and the assets are also located within China.
XVII Notes to Major Line Items in the Financial Statements of the Company as the Parent
1. Other receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 650,667,449.43 930,755,375.66
Other receivables 5,759,785,103.00 5,555,194,330.26
Total 6,410,452,552.43 6,485,949,705.92
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Dividends receivable from subsidiaries 650,667,449.43 930,755,375.66
Total 650,667,449.43 930,755,375.66
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature Closing gross amount Opening gross amount
Current account 5,758,406,567.51 5,553,988,496.97
Security deposits 5,000,000.00 5,000,000.00
Cash float 389,072.65 199,301.29
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Other advance money for others or
5,610.94 16,868.17
temporary payment
Total 5,763,801,251.10 5,559,204,666.43
2) Other receivables presented by aging
Unit: RMB
Aging Closing gross amount Opening gross amount
Within 1 year (inclusive) 302,500,707.61 421,132,709.48
1 to 2 years 1,238,711,498.85 2,927,461,223.86
2 to 3 years 2,117,840,016.92 213,939,106.11
More than 3 years 2,104,749,027.72 1,996,671,626.98
3 to 4 years 182,818,067.62 150,484,231.55
4 to 5 years 150,341,735.80 102,537,494.25
More than 5 years 1,771,589,224.30 1,743,649,901.18
Total 5,763,801,251.10 5,559,204,666.43
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3) Other receivables by method of establishing allowance for doubtful account
Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross amount Gross amount
account account
Category
As % of Allowanc Carrying amount As % of Allowanc Carrying amount
the total e as % of the total e as % of
Amount Amount Amount Amount
gross the gross gross the gross
amount amount amount amount
Other
receivables
for which
allowances
for doubtful
accounts are
established
on an
individual
basis
Of which:
Other
receivables
for which
allowances
for doubtful 5,763,801,251.10 100.00% 4,016,148.10 0.07% 5,759,785,103.00 5,559,204,666.43 100.00% 4,010,336.17 0.07% 5,555,194,330.26
accounts are
established
on a grouping
basis
Of which:
Of which:
External 5,394,683.59 0.09% 4,016,148.10 74.45% 1,378,535.49 5,219,730.82 0.09% 4,010,336.17 76.83% 1,209,394.65
customers
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Related
5,758,406,567.51 99.91% 5,758,406,567.51 5,553,984,935.61 99.91% 5,553,984,935.61
parties
Total 5,763,801,251.10 4,016,148.10 0.07% 5,759,785,103.00 5,559,204,666.43 100.00% 4,010,336.17 0.07% 5,555,194,330.26
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Interim Report 2024 of Wuliangye Yibin Co., Ltd.
Other receivables for which allowances for doubtful accounts are established on a grouping basis:
Unit: RMB
Closing balance
Item Allowance
Allowance for doubtful
Gross amount as % of the
account
gross amount
Other receivables for which allowances for
doubtful accounts are established based on the 5,394,683.59 4,016,148.10 74.45%
external customer group
Other receivables for which allowances for
doubtful accounts are established based on the 5,758,406,567.51
related party group
Total 5,763,801,251.10 4,016,148.10
Allowances for doubtful accounts established using the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for doubtful 12-month Lifetime expected credit Lifetime expected credit Total
accounts expected credit loss (without credit loss (with credit
loss impairment) impairment)
Balance as at 1 January 2024 4,010,336.17 4,010,336.17
Balance as at 1 January 2024
was in the current period
- Transferred to Stage 2
- Transferred to Stage 3
- Transferred back to Stage 2
- Transferred back to Stage 1
Established in the current
5,811.93 5,811.93
period
Reversed in the current period
Charged off in the current
period
Written off in the current
period
Other changes
Balance as at 30 June 2024 4,016,148.10 4,016,148.10
Gross amounts with significant changes in loss allowances in the current period:
□ Applicable Not applicable
4) Allowances for doubtful accounts established, recovered or reversed in the current period
Allowances for doubtful accounts in the current period:
Unit: RMB
Changes in the current period
Opening Charge Closing
Category Recover
balance Establishe d off or Other balance
ed or
d written s
reversed
off
Other receivables for which allowances for
doubtful accounts are established on an
individual basis
Other receivables for which allowances for 4,010,336.17 5,811.93 4,016,148.10
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doubtful accounts are established based on the
credit risk characteristic group
Total 4,010,336.17 5,811.93 4,016,148.10
5) Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
6) Top five entities with respect to other receivables
Unit: RMB
As % of
the Closing
Nature closing balance of
Entity of Closing balance Aging balance of allowances for
account total other doubtful
receivable accounts
s
Sichuan Yibin Wuliangye Distillery Current Within 1year; 1-3
3,211,833,714.52 55.72%
Co., Ltd. account years
Current 1-5 years; over 5
Yibin Jiangjiu Liquor Co., Ltd. 2,244,835,760.28 38.95%
account years
Sichuan Yibin Wuliangye
Current Within 4 years; over 5
Environmental Protection Industry 172,530,814.66 2.99%
account years
Co., Ltd.
Yibin Wuliangye Xianlin Ecological Current
129,206,278.05 Over 5 years 2.24%
Liquor Co., Ltd. account
Housing and Urban-Rural
Security
Development Bureau of Cuiping 5,000,000.00 Over 5 years 0.09% 4,000,000.00
deposit
District, Yibin City
Total 5,763,406,567.51 99.99% 4,000,000.00
2. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Imp Imp
airm airm
Item ent ent
Gross amount Carrying amount Gross amount Carrying amount
allo allo
wan wan
ces ces
Investments in
11,440,444,117.59 11,440,444,117.59 11,440,444,117.59 11,440,444,117.59
subsidiaries
Investments in
associates and joint 2,002,944,907.59 2,002,944,907.59 1,996,294,215.89 1,996,294,215.89
ventures
Total 13,443,389,025.18 13,443,389,025.18 13,436,738,333.48 13,436,738,333.48
(1) Investments in subsidiaries
Unit: RMB
Openi Increase/decrease in Closi
ng the current period ng
balanc In De Im balan
Opening balance Closing balance
Investee e of cr cre pa Ot ce of
(carrying amount) (carrying amount)
impair ea ase ir he impai
ment se in m rs rment
allowa in inv en allow
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nce in est t ance
ve me all
st nt o
m wa
en nc
t e
Sichuan Yibin Wuliangye Distillery Co., Ltd. 5,069,784,707.36 5,069,784,707.36
Yibin Wuliangye Liquor Sales Co., Ltd. 190,000,000.00 190,000,000.00
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. 765,756,006.41 765,756,006.41
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00 50,000,000.00
Sichuan Yibin Wuliangye Environmental Protection
42,411,979.48 42,411,979.48
Industry Co., Ltd.
Yibin Changjiangyuan Liquor Co., Ltd. 20,000,000.00 20,000,000.00
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. 2,700,000.00 2,700,000.00
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 49,374,409.93 49,374,409.93
Sichuan Yibin Plastic Packaging Materials Company
3,443,149,609.25 3,443,149,609.25
Limited
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. 108,922,175.18 108,922,175.18
Sichuan Yibin Global Gelasi Glass Manufacturing Co.,
307,282,551.14 307,282,551.14
Ltd.
Sichuan Yibin Push Group 3D Co., Ltd. 240,419,229.32 240,419,229.32
Sichuan Yibin Wuliangye Investment (Consulting) Co.,
47,500,000.00 47,500,000.00
Ltd.
Wuliangye Dashijie (Beijing) Trade Co., Ltd. 323,000,000.00 323,000,000.00
Handan Yongbufenli Liquor Co., Ltd. 255,000,000.00 255,000,000.00
Wuguchun Jiu Ye Co., Henan. China 255,143,449.52 255,143,449.52
Sichuan Wuliangye Culture Tourism Development Co.,
40,000,000.00 40,000,000.00
Ltd.
Yibin Wuliangye Creart Co., Ltd. 45,000,000.00 45,000,000.00
Sichuan Wuliangye NongXiang Baijiu Co., Ltd. 95,000,000.00 95,000,000.00
Sichuan Wuliangye New Retail Management Co., Ltd. 90,000,000.00 90,000,000.00
Total 11,440,444,117.59 11,440,444,117.59
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(2) Investment in associates and joint ventures
Unit: RMB
Openin Increase/decrease in the current period
g
Closing
balance Investment Adjustmen
Opening balance Increa Decrea Closing balance balance of
of income t to other Other Impairmen
Investee se in se in Declared cash impairmen
(carrying amount) impair (carrying amount)
recognized comprehe equity t Others t
ment invest invest dividends or profit
using the nsive changes allowance allowance
allowan ment ment
equity method income
ce
I Joint ventures
II Associates
Oriental Outlook Media Co.,
27,361,937.34 -5,519,829.33 21,842,108.01
Ltd.
Sichuan Yibin Wuliangye
1,958,180,619.90 26,114,874.16 13,952,640.00 1,970,342,854.06
Group Finance Co., Ltd.
Beijing Zhongjiuhuicui
Education and Technology 10,751,658.65 8,286.87 10,759,945.52
Co., Ltd.
Sub-total 1,996,294,215.89 20,603,331.70 13,952,640.00 2,002,944,907.59
Total 1,996,294,215.89 20,603,331.70 13,952,640.00 2,002,944,907.59
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3. Investment income
Unit: RMB
Item H1 2024 H1 2023
Return on long-term equity investments
4,590,000.00
measured using the cost method
Return on long-term equity investments
20,603,331.70 17,969,787.80
measured using the equity method
Total 20,603,331.70 22,559,787.80
XVIII Supplementary Information
1. Schedule of current exceptional gains and losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets -4,657,535.12
Government grants recognised in profit or loss (exclusive of those that are closely related
to the Company's normal business operations and given in accordance with defined criteria
163,594,119.28
and in compliance with government policies, and have a continuing impact on the
Company's profit or loss)
Capital occupation charges on non-financial enterprises that are recognized in profit or
426,869.99
loss
Non-operating income and expense other than the above 6,080,605.56
Less: Income tax effects 41,341,400.04
Non-controlling interests effects (net of tax) 6,086,814.56
Total 118,015,845.11 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
Weighted average ROE EPS
Profit in the Reporting Period
(%) Basic EPS (RMB/share) Diluted EPS (RMB/share)
Net profit attributable to the
13.70% 4.910 4.910
Company’s ordinary shareholders
Net profit attributable to the
Company’s ordinary shareholders 13.62% 4.879 4.879
before exceptional gains and losses
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3. Accounting data differences under China’s Accounting Standards for Business Enterprises (CAS) and
International Financial Reporting Standards (IFRS) and foreign accounting standards
(1) Net profit and equity under CAS and IFRS
□ Applicable Not applicable
(2) Net profit and equity under CAS and foreign accounting standards
□ Applicable Not applicable
(3) Accounting data differences under CAS and IFRS and foreign accounting standards. Where any
reconciliation is made to the data audited by an overseas independent auditor, the name of the overseas
independent auditor shall be provided.
None.
156
