Wuliangye Yibin Co., Ltd.
Annual Report 2019
President Zeng Congqin (signature)
April 28, 2020
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Contents
Section I Important Notice, Contents, and Interpretations ................................................................ 3
Section II Company Profile and Main Financial Highlights ................................................................ 5
Section III Summary of Company Business ..................................................................................... 10
Section IV Discussion and Analysis of Operation ............................................................................. 12
Section V Significant Matters ........................................................................................................... 32
Section VI Changes in Shares and Shareholders ............................................................................. 50
Section VII Preferred Share ............................................................................................................... 55
Section VIII Convertible Corporate Bonds .......................................................................................... 56
Section IX Directors, Supervisors, Senior Management and Employees ......................................... 57
Section X Corporate Governance .................................................................................................... 66
Section XI Corporate Bonds ............................................................................................................. 72
Section XII Financial Report .............................................................................................................. 73
Section XIII Reference File Directory ................................................................................................ 190
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section I Important Notice, Contents, and Interpretations
I. The board of directors, the board of supervisors, directors, supervisors, and officers
of the Company undertake that the content of the Annual Report is true, accurate, and
complete, and contains no false record, misleading statements, or major omission, and
assume joint and several legal liabilities arising therefrom.
II. Zeng Congqin, the person in charge of the Company, Luo Wei, the person in
charge of the accounting work, and Luo Jun, the person in charge of the accounting
institution (accountant in charge) declare and ensure the truthfulness, accuracy, and
integrity of the financial report in the Annual Report.
III. Eight directors should be present at the board meeting auditing the Report and
actually seven directors attended. Director Zou Tao was on a business trip and voted on the
resolution of this meeting by means of communication. Mr. Han Cheng, an alternate
director, attended the board meeting without voting rights.
IV. The future plan, development strategy, and other forward-looking statements
included in the Report shall not constitute the Company's substantial commitment to the
investors due to uncertainties, and we remind the investors to notice the investment risks.
V. The Company has disclosed the potential risks in the Report, and we remind the
investors to notice the investment risks.
VI. The Company designated China Securities Journal, Shanghai Securities News,
Securities Times, and CNINFO as the information-disclosure media of the Annual Report
2019 of the Company and all the information of the Company shall be subject to the
information published on the above media.
VII. The profit distribution plan reviewed and adopted at the Board Meeting of the
Company is that: Based on the total capital stock of 3,881,608,005, the Company will
distribute the dividend of RMB 22 in cash (tax inclusive) and 0 bonus share (tax inclusive)
to all shareholders for every 10 shares and will not transfer the capital reserve to increase
capital stock.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Interpretations
Terms refers to Interpretations
Company, the Company or Wuliangye refers to Wuliangye Yibin Co., Ltd.
State-owned Assets Supervision and
Yibin State-owned Assets Supervision
refers to Administration Commission of Yibin
and Administration Commission
Municipal Government
Wuliangye Group Company or the
refers to Sichuan Yibin Wuliangye Group Co., Ltd.
Group Company
Push Group Company refers to Sichuan Yibin Push Group Co., Ltd.
Global Group Company refers to Sichuan Yibin Global Group Co., Ltd.
Anji Logistic Group Co., Ltd. refers to Sichuan Anji Logistic Group Co., Ltd.
Sacred Mountain Molin Group Co., Ltd.,
Sacred Mountain Molin Company refers to
Sichuan
Haida Group Company refers to Sichuan Haida Rubber Group Co., Ltd.
Sichuan Yibin Wuliangye Group Finance Co.,
Finance Company refers to
Ltd.
I&E Company refers to Yibin Wuliangye Group I&E Co., Ltd.
Wuliang NongXiang Series Baijiu Yibin
Wuliang Nongxiang Company refers to
Co.,Ltd.
Creart Company refers to Yibin Wuliangye Creart Co., Ltd.
Sichuan Yibin Wuliangye Environmental
Environmental Protection Company refers to
Protection Co., Ltd.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section II Company Profile and Main Financial Highlights
I. Company information
Stock abbreviation Wuliangye Stock code 000858
Stock exchange for listing Shenzhen Stock Exchange
Company name in Chinese 宜宾五粮液股份有限公司
Company short name in
五粮液
Chinese
Company name in English
WULIANGYE YIBIN CO.,LTD.
(if any)
Company short name in
WLY
English (if any)
Legal representative of the
Zeng Congqin
Company
Registered address No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan
Zip code of the registered
644007
address
Office address No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan
Zip code of the office
644007
address
Website http://www.wuliangye.com.cn
E-mail 000858-wly@sohu.com
II. Contact person and contact information
Secretary of the board of directors Representative for securities affairs
Name Peng Zhifu Xiao Xiangfa, Li Xinyi
No. 150, Minjiang West Road, Cuiping No. 150, Minjiang West Road, Cuiping
Address
District, Yibin, Sichuan District, Yibin, Sichuan
Tel (0831) 3567000, 3566938, 3567988 (0831) 3567000, 3566938, 3567988
Fax (0831) 3555958 (0831) 3555958
E-mail 000858-wly@sohu.com 000858-wly@sohu.com
III. Information disclosure and preparation place
Name of media selected by the Company for China Securities Journal, Shanghai Securities News, Securities
information disclosure Times
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Website designated by China Securities
http://www.cninfo.com.cn
Regulatory Commission for the Annual Report
Preparation place of the Company's Annual
Board office
Report
IV. Registration changes
Organization code 91511500MA62A0WM8P
Changes in primary business since the
No change during the reporting period
Company's listing (if any)
Previous changes of controlling
No change during the reporting period
shareholders (if any)
V. Other relevant information
Accounting firm engaged by the Company
Name of accounting firm Sichuan Huaxin (Group) CPA (LLP)
Office address of the accounting firm 28/F, South Jinmaolidu, No.18, Ximianqiao Street, Chengdu, Sichuan
Name of signatory accountant Li Min, Liu Jun
The sponsor institution engaged by the Company to perform the continuous supervision
responsibility during the reporting period
√ Applicable □ Not applicable
Office address of Name of sponsor
Name of sponsor institution Continuous supervision period
sponsor institution representative
No.618, Shangcheng
Teng Qiang, Liu
Guotai Junan Securities Co., Ltd. Road, China (Shanghai) April 20, 2018-December 31, 2019
Qiqun
Pilot Free Trade Zone
Financial consultant engaged by the Company to perform the continuous supervision responsibility
during the reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial highlights
Whether the Company needs to retroactively adjust or restate the accounting data of the previous
years
□ Yes √ No
Increase/decrease
Year 2019 Year 2018 compared with the Year 2017
previous year
Operating revenue (RMB) 50,118,105,877.14 40,030,189,599.87 25.20% 30,186,780,409.14
Net profit attributable to
shareholders of the listed company 17,402,164,190.16 13,384,246,683.60 30.02% 9,673,721,498.15
(RMB)
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Net profit attributable to
shareholders of the listed company
17,405,930,787.45 13,398,843,689.90 29.91% 9,642,325,077.81
after deducting non-recurring gains
and losses (RMB)
Net cash flows from operating
23,112,072,040.66 12,317,359,034.90 87.64% 9,766,175,822.66
activities (RMB)
Basic earnings per share
4.483 3.474 29.04% 2.548
(RMB/share)
Diluted earnings per share
4.483 3.474 29.04% 2.548
(RMB/share)
Weighted average return on equity 25.26% 22.80% Increasing by 2.46% 19.38%
Increase/decrease
at the end of the
current year
End of Year 2019 End of Year 2018 End of Year 2017
compared with the
end of the previous
year
Total assets (RMB) 106,396,972,333.66 86,094,265,733.09 23.58% 70,922,626,679.43
Net assets attributable to
shareholders of the listed company 74,290,700,662.22 63,487,270,080.56 17.02% 53,334,081,189.48
(RMB)
VII. Differences in accounting data under the Foreign Accounting Standards and
Chinese Accounting Standards
1. Differences between the net profits and net assets in financial report disclosed under the
International Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the International
Accounting Standards and Chinese Accounting Standards.
2. Differences between the net profits and net assets in financial report disclosed under the
Foreign Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial report disclosed under the Foreign
Accounting Standards and Chinese Accounting Standards.
3. Reasons for differences in accounting data under the Foreign Accounting Standards and
Chinese Accounting Standards
□ Applicable √ Not applicable
VIII. Quarterly key financial highlights
Unit: RMB
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Operating revenue 17,590,253,203.22 9,560,791,649.53 9,950,587,240.24 13,016,473,784.15
Net profit attributable to
shareholders of the listed 6,475,113,303.33 2,860,524,075.93 3,207,909,936.35 4,858,616,874.55
company
Net profit attributable to
shareholders of the listed
6,540,037,045.57 2,854,311,216.69 3,212,022,218.38 4,799,560,306.81
company after deducting
non-recurring gains and losses
Net cash flows from operating
7,926,569,918.50 439,242,710.54 7,825,510,025.56 6,920,749,386.06
activities
Whether there are significant differences between the above-mentioned financial index or the total
number and the relevant financial index disclosed in the Company’s quarterly report and semi-annual
report
□ Yes √ No
IX. Items and amounts of non-recurring profit/loss
√ Applicable □ Not applicable
Unit: RMB
Amount of Year Amount of Year Amount of Year
Item Comments
2019 2018 2017
Gain or loss on disposal of non-current assets
(including the write-off part of the provision for -1,571,612.06 3,428,495.17 3,657,328.20
impairment of assets)
Governmental subsidy recorded in current
profit/loss (except those government subsidies,
which are closely related to the business of a 129,760,347.41 88,840,102.95 35,909,406.36
company and enjoyed in accordance with a certain
standard quota or quantity of the state)
Fund occupation fee collected from non-financial
15,503,633.45 10,373,763.35 4,241,705.60
enterprises and recorded in current profit/loss
Other non-operating revenue and expenditure
-135,436,782.11 -110,025,211.13 1,308,010.82
except for the aforementioned items
Less: Impact on income tax -4,831,273.10 -8,928,533.56 9,653,995.55
Impact on minority equity (after-tax) 16,853,457.08 16,142,690.20 4,066,035.09
Total -3,766,597.29 -14,597,006.30 31,396,420.34 --
Concerning the non-recurring profit/loss defined by Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit/Loss, and the
items defined as recurring profit/loss according to the lists of non-recurring profit/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Non-recurring Profit/Loss, explain reasons.
□ Applicable √ Not applicable
The Company had no item to be defined as recurring profit/loss in accordance with the
non-recurring profit/loss defined and listed by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public - Non-recurring Profit/Loss.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section III Summary of Company Business
I. Primary business of the Company in the reporting period
The Company is mainly engaged in liquor production and sales. According to the Guidelines for the
Industry Classification of Listed Companies (2012 Revision) issued by China Securities Regulatory
Commission, liquor industry belongs to "liquor, beverage, and refined tea manufacturing industry" (C15).
The primary business of the Company had no change during the reporting period. "Wuliangye" liquor,
main product of the Company, is a typical strong aromatic Chinese spirit of China. The Company also
develops series liquor products with complete categories and distinctive nuance, including Wuliang
Chun (Spring), Wuliang Chun, Wuliang Te Qu and Tou Qu, Mian Rou Jian Zhuang, to meet the
diversified demands of consumers of different levels.
In 2019, with the increasing downward pressure of macroeconomy at home and abroad, the growth
rate of the liquor industry slowed down, the competition became more intensive, the concentration ratio
of the industry further increased, and the competitive advantages of famous liquor enterprises were
highlighted. During the reporting period, the Company seized the new development opportunities and
increased the brand value significantly through the marketing organization reform, product iteration and
upgrading, digital transformation, and other reform measures, further consolidating its leading position in
the strong aromatic Chinese spirits market.
II. Major changes in main assets
1. Major changes in main assets
□ Applicable √ Not applicable
2. Main overseas assets
□ Applicable √ Not applicable
III. Analysis of core competitiveness
Does the Company need to comply with the disclosure requirements for special industry?
No
The Company has six unique advantages, and these constitute the traditional
core-competitiveness of Wuliangye. 1) Wuliangye’s natural, ecological environment makes it unique;
2) The unique 600-years microbiota of its ancient caves has been growing continuously since the Ming
Dynasty to the present day; 3) The high-quality, world-famous Wuliangye is brewed with five unique
grain formulas; 4) It uses unique brewing technologies and has a unique microbial zone within the
Wuliangye Ten-Mile Liquor City; 5) The unique, harmonious quality of Wuliangye makes it a typical
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
representative of Chinese culture; 6) The scale of the unique “Ten-Mile Liquor City” enables Wuliangye’s
brand value to rank the top in the liquor industry.
In 2019, the Company took various simultaneous measures to actively promote
organizational reform, strengthen digital transformation, optimize product systems, and
construct a quality, product lifecycle management system. In doing so, it improved its marketing
capability, its brand-equity, and it strengthened core competitiveness.
The Company first focused on building a new factory-trader relationship. It strengthened market
reform and digital transformation, and then made further improvements to its marketing and service
control. The marketing organization became more professional and streamlined, which in turn helped
improving the capabilities of the marketing team. The Company has been speeding up its digital
transformation, and was honored as a "Model of Experiential Marketing", which could be deemed as the
market’s affirmation of Wuliangye’s efforts in digital transformation.
The Company then focused on creating a better life for consumers. It has been enhancing its
technology innovation, traceability management and process control, improving its ability to strictly
control product quality and supply capability. The Company constructed a number of high-level research
platforms to continuously improve technological innovation. The Company enhanced its grain supply by
strengthening production base construction, and vigorously promoted a product traceability
management system centered on the supply of special grains. It founded the “Specialist Brewing Grain
Technological Research Center” in Sichuan. This was the first domestic research platform above
provincial level in this field and academician Yuan Longping was invited to serve as a consultant at the
center. The center aims to strengthen research and joint efforts in breeding and improving special
brewing grains. The Company strengthened its process controls through internal system construction,
promoted the efficiency of a total quality management system, and increased the yield of high-quality
liquor continuously.
Finally, the Company focused on implementing the “three characteristics and one recognition”
requirements to improve product mix and promote brand culture. During the reporting period, Wuliangye
continuously optimized its product mix, continuously reshaped the liquor brand matrix series, and set up
the Wuliangye Culture Research Institute. It continuously promoted brand culture, coordinated traditional
and new media advertisement, strengthened communication through key projects and major events, and
actively promoted the Company internationally. All these activities strengthened Wuliangye’s brand
reputation, lifting the brand value and influence continuously.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section IV Discussion and Analysis of Operation
I. Overview
In 2019, the global economy was full of uncertainties. The Sino-US trade war was at deadlock, the
exchange rate was changing frequently, the environment for domestic and international trade was
complex and grim - as was the macroeconomic situation, and the overall market was full of challenges.
However, two things remained unchanged. There was an overall trend of transforming and upgrading
domestic consumption, and a more specific trend to concentrate on famous and high-quality liquor
enterprises in the liquor industry. During the reporting period, the Company kept up with new trends in
the market, seized new development opportunities, set new requirements for high-quality development,
focused on strengthening its weak points, gave play to strong points, and reached a new momentum by
upgrading. It pushed forward the “second entrepreneurship” ideology, and achieved record-high
business performance, reaching annual sales over RMB ten billion for three consecutive years. In 2019,
the Company's operating revenue increased 25.20% year-on-year, reaching RMB 50.118 billion. The net
profit attributable to shareholders of the listed company reached RMB 17.402 billion, with 30.02%
year-on-year growth.
In 2019, the Company adjusted its strategy and optimized measures to deepen structural reform at
the supply-side. It improved its shortcomings, strengthened its advantages, and made significant
improvements to its brand image, product quality and marketing capability.
1. Focus on optimizing product mix and promoting the brand culture; brand influence
expanded significantly.
1) The Company optimized the Wuliangye product system in order to provide top-quality, aromatic
spirits. During the reporting period, the Company successfully launched the eighth-generation version of
the classic Wuliangye, which is warmly welcomed by the market, and its market price rose steadily to
over RMB 1,000 per bottle. The product focused on meeting consumers’ demand for a better life, and
took advantages of its centuries-old (dated back to Ming and Qing dynasty) cellars. The Company
designated workshops, cellars and craftsmen to strategically create a luxury 501 model of the classic
Wuliangye. In accordance with the Company’s global strategy, it signed strategic cooperation
agreements with Pernod Ricard and other internationally-renowned wine enterprises to initiate R&D for
an international Wuliangye product.
2) The Company set up a system for its series liquor products and continued remodeling its brand
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
matrix. The Company continued to downsize high-imitation products that had seriously undermined the
brand value of Wuliangye. Instead it focused on building four nationwide products: Wuliang Chun
(Spring), Wuliang Chun, Wuliang Te Qu, and Jian Zhuang. It adhered to the principle of “focusing on
medium and high-end products, on self-owned brand, and on its core brand”, to ensure its brands with
diversified images, distinctive values and recognizable price bracket.
3) The Company increasingly promoted brand awareness to show the new image of Wuliangye
liquor. Sticking to the brand positioning of “Strong Aromatic Spirits of Great Power, Liquor Magnate of
China” and digging deeply the brand connotation of “Essence of Nature, National Spirit, Wonderful
World”, the Company highlighted advantages of the cellars of Wuliangye, technological advantages,
formula advantages and other core elements, and told the Wuliangye story. The Company effectively
combined traditional and new media to coordinate advertising, strengthened brand promotion through a
series of key projects and major events, and further enhanced its international reputation and brand
influence by participating in the China International Import Expo and other international events. During
the reporting period, the Company was successfully recognized by the UN as a symbolically Chinese
brand. Wuliangye ranked 302nd in the World Brand Lab’s 500 Most Influential Worldwide Brands, rising
24 places from the previous year. It also ranked 40th in Asia's 500 Most Influential Brands, rising eight
places from the previous year. It ranked 19th in China’s 500 Most Valuable Brands, rising one place from
the previous year.
2. Focus on platform construction, traceability management and process controls; product
quality improved significantly.
1) The Company promoted the construction of a technological platform to strengthen innovation.
The Company insisted on combining tradition with innovation, and, in order to improve Wuliangye’s
quality, it vigorously promoted the construction of a of a science and technology innovation platform to
increase R&D on brewing ecology and technology, and on liquor flavors. During the reporting period, the
Company newly established a range of top research platforms to ensure improvements in liquor quality,
including the Sichuan Brewery Special Grain Engineering Research Center and the Provincial Sichuan
Solid Fermentation Liquor Brewing Engineering Research Center.
2) The Company upgraded its grain production base to guarantee a better grain supply. The
Company sped up the upgrade and construction of a special brewing grain production base. It vigorously
promoted the construction of a traceability management system for its products, centered on special
grain supplies. It built a "from seed to liquor" product lifecycle quality system, allowing it to pre-inspect,
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
trace, and control grain supply and ensure the quality and stability.
3) The Company built a quality management system and strengthened its process control. The
Company promoted the efficient operations of its total quality management system to establish an
all-round production monitoring and ensure a steady growth of its first-class liquor output.
3. Focus on market reform, digital transformations, and marketing team construction;
marketing capabilities improved significantly.
1) The Company reformed its marketing department to improve its market responsiveness. During
the reporting period, the Company completely the transformation from traditional marketing to modern
marketing, realizing the "specializations horizontally and flat management vertically". Wuliangye’s
headquarters reformed its Brand Department, and each region reformed by carrying out flat
management and decentralizations. The regions were divided into 21 marketing areas and 60 marketing
bases, significantly improving their capabilities to explore the market. Series liquor companies, including
the original Series Liquor, Te Qu and Tou Qu, and Wuliang Chun, were restructured and integrated into
the newly established Wuliang Nongxiang Company, allowing a more collaborative management, more
concentrated resources, and more rapid market responses.
2) The Company promoted marketing digitalization and strengthened its marketing efforts. The
Company successively signed strategic cooperation agreements with Alibaba, Huawei and a number of
other companies. It made full use of the advantages of each party to transform itself into a digitally
marketing enterprise. The Company established a digital marketing system, and successfully introduced
modes for trading controls and profit divisions. It mastered the purchase, sale/deals of stock in real-time
by adopting a layer-by-layer binding and code-scanning system, allowing it to monitor channel sales
transparently, to monitor channel abnormalities in real-time, and to establish a highly coordinated
channel system. The Company established a preliminary closed-loop management system for
digitalization between headquarters and regional divisions, and it systematically improved the
coordination and execution of its marketing efforts.
3) The Company expanded its marketing team, optimized their structures, and enhanced team
members’ capabilities. The Company supplemented 452 salesmen and 500 visiting salesmen by openly
recruiting and selecting individuals on a level-by-level basis. The series liquor companies also
introduced 181 salesmen, and the staff structure were optimized in terms of ages, professional ability,
and work experience. The marketing team’s ability in understanding the market, getting closer to
consumers, and serving dealers has been significantly improved.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
4. Focus on developing key projects, such as expanding production, storage, and the
packaging capacity; open doors for future development opportunities.
During the reporting period, the Company actively promoted key projects that brought benefits and
laid a foundation for future opportunities. 300-thousand-ton pottery jar aging spirit room (phase I), and
renovation of Workshop 503 have been completed; the liquor packaging and integrated smart
storage-and-delivery project, the technological innovation project for storing blended liquor, and the
supporting infrastructure project at Hongba New Park have been commenced; preparations have been
made for a special processing tank for making liquor grains, and a project is underway for an automatic
grinding machine; the Company has carried out construction at the ecological park and at the 5A scenic
area.
5. Focus on ensuring safe production, saving energy and protecting the environment,
providing assurances that development is of the highest quality.
During the reporting period, the Company’s production sector had no safety incidents, or incidents
that caused serious injury or death. For 35 consecutive years, it has had no fire accidents. The Company
actively promoted key environmental protection projects including a centralized sewage treatment
system and a comprehensive treatment program for the Songgong River. It completed pipe network
reconstruction project of Jiangbei Park, Phase III of energy saving and emission reduction from coal to
gas project; The Company discharged 100% of its “three wastes” according to the most recent standards,
and experienced no minor/major environmental pollution accidents throughout the year. The Company
was honored for three consecutive years as a “Sichuan Environmental Integrity Enterprise”, honored as
one of the first “Sichuan Comprehensive Industrial Resources Enterprises”, and won the brand award as
a “Sichuan Energy Conservation and Environmental Protection Model”.
6. Focus on corporate governance and strengthening information disclosure; significantly
optimized the Company’s image in the capital market.
During the reporting period, the Company had standardized its methods of information disclosure
according to relevant laws, continued to optimize investor relations management mechanism, and
further expanded the scope and come up with innovative ways for communicating with investors. These
measures were met with unanimous approval from the regulatory authorities and investors. For five
consecutive years, the Company was graded Level A (the highest level) in its information disclosure
assessment by the Shenzhen Stock Exchange. It won multiple awards, including the “Best Round Table
Board” for its Directors & Boardroom Staff, the “Best Board Prize” at the National Business Daily’s 2019
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Listed Chinese Companies Awards, and CNR’s Most Trustworthy Listed Company to Investors in 2018.
It was also listed as a top enterprise on the “2018 Enterprises for Annual Activities” list, on p5w.net’s
“Listed Enterprises for IR interactions”, and Xueqiu.com’s “Best Listed Company for Investor Relations”.
II. Analysis of primary business
1. Overview
See "I. Overview" in "Discussion and analysis of operation".
2. Revenue and cost
(1) Operating revenue composition
Unit: RMB
Year 2019 Year 2018
Year-on-year
Proportion in Proportion in
Amount Amount increase/decrease
operating revenue operating revenue
Total operating
50,118,105,877.14 100% 40,030,189,599.87 100% 25.20%
revenue
By industry
Manufacturing
50,118,105,877.14 100% 40,030,189,599.87 100% 25.20%
industry
By product
Liquors 46,301,838,985.74 92.39% 37,751,933,113.60 94.31% 22.65%
Including:
39,670,724,562.67 79.15% 30,189,147,385.40 75.42% 31.41%
High-end liquor
Middle-and
6,631,114,423.07 13.23% 7,562,785,728.20 18.89% -12.32%
low-end liquor
Plastic products 2,540,536,361.21 5.07% 1,851,618,283.27 4.63% 37.21%
Printing 124,811,258.13 0.25% 54,501,116.15 0.14% 129.01%
Glass bottle 194,271,586.53 0.39% 97,655,529.08 0.24% 98.94%
Others 956,647,685.53 1.91% 274,481,557.77 0.68% 248.53%
By region
Domestic 50,118,105,877.14 100% 40,030,189,599.87 100% 25.20%
Remarks:
1. High-end liquor: refers to main products with selling price (tax inclusive) of RMB 120 and above
among the alcohol products (500ml/bottle) of the Company;
2. The Company did not export alcoholic products directly, but sold them to the I&E Company for
export.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Industries, products or regions that account for more than 10% of the Company's operating
revenue or profit
√ Applicable □ Not applicable
Unit: RMB
Year-on-year
Year-on-year Year-on-year
increase/decrease
Operating revenue Operating cost Gross profit increase/decrease increase/decrease
in operating
in operating cost in gross profit
revenue
By industry
Manufacturing
industry (liquor 46,301,838,985.74 9,284,024,693.66 79.95% 22.65% 9.73% 2.36%
and spirits)
By product
Liquors 46,301,838,985.74 9,284,024,693.66 79.95% 22.65% 9.73% 2.36%
Including:
39,670,724,562.67 6,113,455,671.70 84.59% 31.41% 29.05% 0.28%
High-end liquor
Middle-and
6,631,114,423.07 3,170,569,021.96 52.19% -12.32% -14.84% 1.42%
low-end liquor
By region
Domestic (liquor
46,301,838,985.74 9,284,024,693.66 79.95% 22.65% 9.73% 2.36%
and spirits)
In the case that the statistical standards for primary business data of the Company are adjusted
during the reporting period, the primary business data of the Company in recent 1 year are subject to
those after the adjustment of the statistical standards at the end of the reporting period
□ Applicable √ Not applicable
(3) Whether the Company's revenue from physical sales is greater than income from labors
√ Yes □ No
Industry Year-on-year
Item Unit Year 2019 Year 2018
classification increase/decrease
Sales volume Ton 165,411 191,596 -13.67%
Liquors Production Ton 168,272 191,968 -12.34%
Inventory Ton 15,831 12,970 22.06%
17
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Remarks: The above items are the sales volume, production and inventory of commodity liquor.
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable √ Not applicable
(4) Performance of major sales contracts signed by the Company up to the reporting period
□ Applicable √ Not applicable
(5) Operating cost composition
Unit: RMB
Year 2019 Year 2018 Year-on-year
Industry
Item Proportion in Proportion in Increase/
classification Amount Amount
operating cost operating cost decrease
Raw materials 6,409,107,723.74 50.06% 5,376,901,123.42 51.27% -1.21%
Salary 4,228,023,628.65 33.03% 3,144,553,451.80 29.99% 3.04%
Manufacturing
Energy 957,955,244.56 7.48% 825,023,634.74 7.87% -0.39%
industry
Manufacturing
1,207,173,350.39 9.43% 1,140,304,724.31 10.87% -1.44%
expenses
(6) Whether the consolidation scope changes in the reporting period
√ Yes □ No
On June 20, 2019, the Company and Wuliangye Group, as reviewed and approved by the 5th
board of directors of the Company, jointly funded and established "Wuliang NongXiang Series Baijiu
Yibin Co., Ltd.", of which the registered capital was RMB 100 million. The Company contributed RMB 95
million, taking up 95% of the registered capital; Wuliangye Group contributed RMB 5 million, taking up 5%
of the registered capital; and Wuliang NongXiang Series Baijiu Yibin Co., Ltd. was included in the
consolidation scope of the Company since its establishment.
(7) Major changes or adjustments of business, products or services of the Company during the
reporting period
□ Applicable √ Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
Total sales amount of top five customers (RMB) 6,656,074,707.73
Proportion of total annual sales of top five customers in
total annual sales 13.28%
Proportion of related parties in total annual sales among
the top five customers
Top 5 customers of the Company
18
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
No. Customer name Sales amount (RMB) Proportion in total annual sales
1 No.1 2,655,336,333.53 5.30%
2 No.2 1,454,245,831.36 2.90%
3 No.3 1,068,964,918.81 2.13%
4 No.4 768,878,910.41 1.53%
5 No.5 708,648,713.62 1.41%
Total -- 6,656,074,707.73 13.28%
Other information of major customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from top five suppliers (RMB) 2,024,585,007.42
Proportion in total annual purchase amount for top five
21.17%
suppliers
Proportion of the purchase from related parties in total annual
3.16%
purchase amount among the top five customers
Top 5 suppliers of the Company
Proportion in total annual purchase
No. Supplier name Purchase amount (RMB)
amount
1 No.1 501,920,162.34 5.25%
2 No.2 423,809,746.69 4.43%
3 No.3 412,501,721.08 4.31%
4 No.4 384,370,000.10 4.02%
5 No.5 301,983,377.21 3.16%
Total -- 2,024,585,007.42 21.17%
Other information of major suppliers
□ Applicable √ Not applicable
3. Expenses
19
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Unit: RMB
Year-on-year
Year 2019 Year 2018 increase/ Note on major changes
decrease
Caused by increase of product propaganda and
marketing expenses due to marketing
Selling expenses 4,985,579,336.77 3,778,433,675.01 31.95% organization reform, marketing system
transformation and upgrading, core product
upgrading and updating
Administrative
2,655,347,148.09 2,340,498,705.44 13.45%
expenses
Caused by combined influence of the increase of
Financial Not
-1,430,745,865.74 -1,085,010,763.65 average stock of cash and cash equivalents and
expenses applicable
the rising of funds management benefits
Research and Caused by increase of research and
development 126,360,421.11 84,082,506.26 50.28% development investment by the Company
expense according to the market demands
4. Research and development investment
√ Applicable □ Not applicable
1. Purpose of the R&D project
In 2019, the Company continued its R&D work. It researched the application of solid, fermented
microorganisms to Chinese spirits, carried out risk assessment into liquor as a consumable, and
researched the application of intelligent brewing technologies. It also researched the technologies for
liquor analysis, brewing technologies and developing new products. It did this to provide support at the
supply side.
2. Progress, planned objective, and impact on future development of the Company
There are 43 independent R&D projects, including "Researching the Substances for Ensuring the
Characteristic Flavor of Strong, Aromatic Chinese Spirits", "Researching the Special Brewing Grains for
Wuliangye", "Developing Functional Microbial Technologies to Improve the Quality of Strong, Aromatic
Chinese Spirits", "Researching the Technologies to Adjust/Control the Acid Formation on Distilled Grains
in the Wuliangye Cellars", and "Developing an Intelligent Brewing Production Line and Researching
Supporting Technologies". All of these projects have been carried out on schedule. The Alcoholic Drinks
Association awarded the Company third prize for “Progress in Chinese Science”. It made two major
technological breakthroughs, and was granted RMB 2.6 million by the government for special funding. It
obtained patents for five new inventions, and has published 21 science and technology articles.
20
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The Company plans to collect the resources for solid fermentation that can be applied to strong,
aromatic Chinese spirits. It has assessed the existing resources and how they are utilized, so that it can
improve the rate of producing quality products, ensure food safety, and consolidate the Company's
position as a leader in strong aromatic Chinese spirits.
Research and development investment of the Company:
Year 2019 Year 2018 Proportion of change
Number of research and
2,719 2,680 1.46%
development personnel (person)
Proportion of research and
10.32% 10.19% 0.13%
development personnel
Research and development
126,360,421.11 84,082,506.26 50.28%
investment (RMB)
Proportion of research and
development investment in 0.25% 0.21% 0.04%
operating revenue
Capitalized amount of research and
0.00 0.00 0.00%
development investment (RMB)
Proportion of capitalized research
and development investment in
0.00% 0.00% 0.00%
research and development
investment
Reasons for significant changes in the proportion of total research and development investment
amount in operating revenue compared with the previous year
□ Applicable √ Not applicable
Reasons for the significant changes of research and development investment capitalization rate and
description of its rationality
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB
Year-on-year
Item Year 2019 Year 2018
increase/decrease
Sub-total of cash inflows from
64,604,503,080.77 47,286,315,224.60 36.62% (Note 1)
operating activities
Sub-total of cash outflows from
41,492,431,040.11 34,968,956,189.70 18.66%
operating activities
Net cash flows from operating
23,112,072,040.66 12,317,359,034.90 87.64% (Note 1)
activities
Sub-total of cash inflows from
92,050,811.98 49,824,966.23 84.75%
investing activities
21
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sub-total of cash outflows from
1,708,455,125.66 381,381,461.74 347.96% (Note 2)
investing activities
Net cash flows from investing
-1,616,404,313.68 -331,556,495.51 Not applicable (Note 2)
activities
Sub-total of cash inflows from
1,813,717,926.36 -100.00% (Note 3)
financing activities
Sub-total of cash outflows from
7,251,646,962.56 5,431,641,453.13 33.51% (Note 4)
financing activities
Net cash flows from financing
-7,251,646,962.56 -3,617,923,526.77 Not applicable (Note 5)
activities
Net increase in cash and cash
14,244,084,425.84 8,368,245,492.17 70.22% (Note 6)
equivalents
Description of main influencing factors of significant changes in relevant data on a year-on-year
basis
√ Applicable □ Not applicable
Note 1: Due to the increase in income from liquor products in current year, increase of cash received
from maturity of bank acceptance bill, early payment by dealers during the Spring Festival, and other
factors;
Note 2: Due to the increase in cash payments to acquire and construct fixed assets in current year;
Note 3: Due to funds raised by non-public offering of shares in 2018;
Note 4: Due to the dividend distribution in 2019 was higher than that of the same period in 2018;
Note 5: Due to the combined influence of the dividend distribution in 2019 being higher than that of
the same period in 2018 and the funds received from non-public offering of shares in 2018;
Note 6: Due to the increase in net cash flows from operating activities in current year.
Reasons for significant difference between the net cash flows from operating activities of the
Company and the net profit of the current year during the reporting period
□ Applicable √ Not applicable
III. Analysis of non-primary business
□ Applicable √ Not applicable
IV. Analysis of assets and liabilities
1. Significant changes in asset composition
Adjustment of relevant items in financial statements at the beginning of the implementation year as
a result of initial implementation of new financial instrument standards, new income standards and new
lease standards by the Company from 2019
√ Applicable □ Not applicable
Unit: RMB
End of Year 2019 Beginning of Year 2019
Increase/
Proportion Note on major
Proportion in decrease in
Amount Amount in total changes
total assets proportion
assets
22
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Cash and cash
63,238,825,723.79 59.44% 48,960,048,897.95 56.87% 2.57%
equivalents
Accounts
134,449,693.03 0.13% 127,331,336.97 0.15% -0.02%
receivable
Inventory 13,679,619,615.41 12.86% 11,795,461,088.43 13.70% -0.84%
Long-term
equity 1,021,778,731.59 0.96% 919,477,978.54 1.07% -0.11%
investment
Fixed assets 6,108,745,912.72 5.74% 5,262,163,428.02 6.11% -0.37%
Construction in
812,428,248.30 0.76% 351,993,452.86 0.41% 0.35%
progress
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Profit or
loss from Accumulated Amount
Impairment Purchase
changes changes in fair of sales
provided in amount in
Item Beginning amount in fair value in Other changes Ending amount
current current
value in reckoned into current
period period
current equities period
period
Financial
assets
1. Trading
financial
assets
(excluding
derivative
financial
assets)
2. Derivative
financial
assets
3. Other debt
investments
4. Other
equity
instrument
investment
5. Accounts
receivable 2,269,711,750.31 1,180,454,908.75 3,450,166,659.06
financing
Sub-total of
financial 2,269,711,750.31 1,180,454,908.75 3,450,166,659.06
assets
Investment
properties
Productive
biological
assets
Others
Sum of the
2,269,711,750.31 1,180,454,908.75 3,450,166,659.06
above items
Financial
liabilities
Is there any significant change in measurement attributes of main assets of the Company in the
23
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
reporting period?
□ Yes √ No
3. Limitation on the assets and rights as of the end of the reporting period
√ Applicable □ Not applicable
Unit: RMB
Item Ending book value Reasons for limitation
Cash and cash Deposit of bank acceptance bill of RMB 99,754,080.91 and other
99,996,480.91
equivalents deposits of RMB 242,400.00.
Accounts receivable
144,514,604.00 Pledge of bank acceptance bill
financing
Total 244,511,084.91
V. Analysis of investment
1. General situation
□ Applicable √ Not applicable
2. The significant equity investment obtained during the reporting period
□ Applicable √ Not applicable
3. The significant non-equity investment being carried out during the reporting
period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Note on investment situation
□ Applicable √ Not applicable
The Company had no securities investment during the reporting period.
(2) Note on derivative investment
□ Applicable √ Not applicable
The Company had no derivative investment during the reporting period.
5. Use of funds raised
√ Applicable □ Not applicable
(1) Overall Use of funds raised
√ Applicable □ Not applicable
24
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Unit: RMB ’0,000
Total
funds
raised of Total Funds
Proportion
which funds raised
of the total which
Funds raised the raised of Purpose and
funds Total funds has
used in Total funds purpose which allocation of
Raising Raising Funds raised raised of raised which been
current raised used has the funds raised
Year Means Total which the have not idle for
period Total been purpose which have not more
purpose been used
Total changed has been used than
has been
during been two
changed years
the changed
reporting
period
In addition to
fixed deposit or
call deposit, the
funds raised
which have not
been used by the
Non-public Company
Year
offering of 185,327.74 12,872.58 15,605.81 169,721.93 remained on the
2018
shares special account
for funds raised
and would be
used for the
investment
projects of the
funds raised.
Total -- 185,327.74 12,872.58 15,605.81 169,721.93 --
Description of overall use of funds raised
During the reporting period, the Company actually paid RMB 30.3497 million for the information construction project; RMB 35.9607
million for the marketing center construction project; and RMB 62.4154 million for the service-oriented E-commerce platform project.
Remark: The Company raised RMB 1.8532774 billion in total through this fund raising, and actually
raised RMB 1.8127379 billion after deducting the issuing and undertaking expenses of RMB 40.5395
million.
(2) Projects promised to be invested with funds raised
√ Applicable □ Not applicable
Unit: RMB ’0,000
Whether the Investment Date on
Committed Total Total
project has which the Income Is there any
investment amount of investment Investment Accumulated progress as Whether
been project realized significant
projects and committed amount in the investment as of the end reach the
changed reaches the in the change in
allocation of investment after reporting of the end of of the expected
(including expected reporting feasibility of
over-raised of the funds adjustment period the period (2) period (3)＝ income
partial usable period the project
funds raised (1) (2)/(1)
change) condition
Committed investment projects
Information
No 71,530 71,530 3,034.97 5,420.21 7.58%
construction
Construction of
marketing No 50,793 50,793 3,596.07 3,944.06 7.76%
center
25
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Service-
oriented
No 63,074 63,074 6,241.54 6,241.54 9.90%
E-commerce
platform
Sub-total of
committed
-- 185,397 185,397 12,872.58 15,605.81 -- -- -- --
investment
projects
Allocation of over-raised funds
Total -- 185,397 185,397 12,872.58 15,605.81 -- -- -- --
Note on and
reason for not
reaching the
scheduled
progress or The digital transformation of the Company is continuing, and specific projects need to be implemented stage by stage.
expected
income (based
on specific
projects)
Description of
any significant
change in Not applicable
feasibility of the
project
Amount,
purpose, and
application
Not applicable
progress of
over-raised
funds
Change of
implementation
place of
Not applicable
investment
projects with the
funds raised
Adjustment of
means of
implementation
Not applicable
of investment
projects with the
funds raised
Early
investment and
replacement of
Not applicable
investment
projects with the
funds raised
Note on making
up working
capital
Not applicable
temporarily with
idle funds
raised
Amount and
cause of
balance of
funds raised Not applicable
after
implementation
of the project
Purpose and
allocation of
As of December 31, 2019, in addition to fixed deposit or call deposit, the funds raised which have not been used by the
funds raised
Company remained on the special account for funds raised and would be used for the investment projects of the funds raised.
which have not
been used
Problems or
other
information
about Refer to the special report on deposit of funds raised and actual use
application and
disclosure of
the funds raised
26
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(3) Changes of projects with the funds raised
□ Applicable √ Not applicable
The Company had no change of projects with the funds raised during the reporting period.
VI. Sales of significant assets and equities
1. Sales of significant assets
□ Applicable √ Not applicable
The Company did not sell significant assets during the reporting period.
2. Sales of significant equities
□ Applicable √ Not applicable
VII. Analysis of main holding and JV companies
√ Applicable □ Not applicable
Main subsidiaries and JV companies that affect the net profits of the Company by more than 10%
Unit: RMB
Company Primary
Company name Registered capital Total assets Net assets
type business
Liquor sales,
liquor import
Yibin Wuliangye Liquor Sales Co.,
Subsidiary and export 200,000,000.00 43,847,842,961.59 20,836,104,933.89
Ltd.
business and
agency
Company Primary
Company name Operating revenue Operating profit Net profit
type business
Liquor sales,
liquor import
Yibin Wuliangye Liquor Sales Co.,
Subsidiary and export 46,559,665,282.40 20,342,581,806.17 15,289,221,216.27
Ltd.
business and
agency
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Means of
acquisition and
disposal of
Company name Impact on overall production, operation and performance
subsidiaries during
the reporting
period
27
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Integrate the original Yibin Wuliangye Series Liquor Brand Marketing Co.,
Ltd., and Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. to
Wuliang NongXiang Series Baijiu
Establishment optimize organization structure of the series liquor and focus on core
Yibin Co., Ltd.
products of the series liquor, which will benefit overall long-term
development of the Company
VIII. Structured entities controlled by the Company
□ Applicable √ Not applicable
IX. Prospect of future development of the Company
(I) Industrial pattern and trend
In 2020, the downward pressure of domestic economy further increases due to the impact of
COVID-19, but the fundamentals and basic trend of steady long-term economic growth remain
unchanged. The production volume, revenue and total profit of the liquor industry maintain the growth
trend, but the production capacity is still in excessive and the competition pattern of extruded growth will
exist in long term. The liquor industry is still in the long cycle of a new round of growth characterized by
structural prosperity, in which high-end liquor will continue to lead the structural growth of the industry
and the industry will be further concentrated on superior brands, superior enterprises and superior
producing areas.
(II) Development strategy of the Company
Strategic vision of the Company: The Company is dedicated to keeping it evergreen and strives to
build a healthy, creative, and leading first-class enterprise in the world and realize high-quality,
sustainable, and rapid development.
(III) Completion of the business plan 2019
1. Beginning plan: Operating revenue of RMB 50 billion in 2019, keeping the growth of about 25%.
2. Actual completion: In 2019, the Company's operating revenue reached RMB 50.118 billion, with
year-on-year growth of 25.20%.
(IV) 2020 Business Plan
The year 2020 will be crucial. The Company will continue to reform in line with the final year of the
"13th Five-Year Plan". It will also lay the foundation for stepping into a post-hundred billion era,
becoming one of the Global 500 companies, and building a first-class, international enterprise. Under Xi
Jinping’s guiding principle of “socialism with Chinese characteristics”, the Company will enter a new era
and fully implement a series of important instructions that were outlined for Sichuan at the 19th National
Congress of the Communist Party of China. General Secretary Xi insisted on the general principle of
28
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
seeking progress while keeping performance stable. He called for a new concept of development, and
that organizations continue to "strengthen weak points, give play to strong points, and upgrade with new
momentum". The Company aims to improve in quality and control, to promote new development and to
digitally transform while continuously increasing its revenue.
The Company's business objective for 2020: double-digit growth for the total operating revenue.
To ensure that the Company successfully achieves its business objectives, it is attaching great
importance to the following tasks: 1) Strengthening the management of production, building a quality
management system for the lifecycle of the product, and ensuring that production improves in quality
and efficiency; 2) Strengthening the brand and inflating the brand value of Wuliangye by continuing to
improve the production system with the four strategic products (Wuliangye "1+3" products and the series
liquor); 3) Strengthening the marketing system by carrying out strategic planning, creating channels,
structurally optimizing the mechanisms of teams, digitalization, and building a responsive marketing
system; 4) Constructing and promoting key projects that involve liquor packaging, intelligent storage,
delivery integration, special grain processes and automated grinding machinery, while carrying out
technological innovation into how to store blended liquor and increase the Company’s capacity and
scale; 5) Vigorously promoting reforms in institutions and compensation systems, motivating the
Company to develop with vitality.
(V) Potential risks
1. The risk of uncertain macroeconomic growth. With the impact of the COVID-19, there has been
an intense, downward trend in the international and domestic economy; the Company will pay close
attention to the domestic macroeconomic situation, strengthen its monitoring and research, and prepare
a risk response plan.
2. The risk of more intense industrial competition. In recent years, consumption habits have
transformed, and the Company needs to reform accordingly, by strengthening its weaknesses,
highlighting its strong points, and finding new driving forces, to improve its core competitiveness.
3. The risk of changes to consumer demands. The Company needs to conduct more market
survey and adjust its business strategy, adapting to changes in consumer demands and meeting the
more diversified demands of consumers.
X. Reception, research, communication, interview and other activities
1. Registration form of reception, research, communication, interview and other activities
during the reporting period
√ Applicable □ Not applicable
29
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Type of Basic information index of the
Date of reception Way of reception
interviewees survey
January 11, 2019 (Hong Kong) Communication Organization
January 23, 2019 Field survey Organization
February 18, 2019 Field survey Organization
May 10, 2019 Organization,
Field survey
(Annual General Meeting 2018) individual
May 15, 2019 Field survey Organization
Telephone
May 20, 2019 Organization
communication
May 23, 2019 Field survey Organization
May 23, 2019 (Beijing) Communication Organization
May 23-24, 2019 (Chengdu) Communication Organization
May 31, 2019 Field survey Organization
June 20, 2019 (Qingdao) Communication Organization
June 21, 2019 (Shanghai) Communication Organization
June 26, 2019 (Shanghai) Communication Organization
July 03-05, 2019 (Hong Kong) Communication Organization
July 05, 2019 Field survey Organization
CNINFO
July 12, 2019 (Shanghai) Communication Organization
(http://www.cninfo.com.cn)
July 16, 2019 Field survey Organization
July 22, 2019 Field survey Organization
July 30, 2019 Field survey Organization
September 06, 2019 Field survey Organization
September 10-12, 2019 (Hong Kong) Communication Organization
September 11, 2019 Field survey Organization
September 12, 2019 Field survey Organization
September 15-23, 2019
Communication Organization
(England, Netherlands, France)
September 16, 2019 Field survey Organization
September 18, 2019 Field survey Organization
September 23, 2019 Field survey Organization
September 26, 2019 Field survey Organization
30
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
September 27, 2019
Organization,
(The First Extraordinary General Meeting Field survey
individual
2019)
November 04, 2019 Field survey Organization
November 05, 2019 (Shenzhen) Communication Organization
November 06, 2019 Field survey Organization
November 07, 2019 (Beijing) Communication Organization
November 11, 2019 (Chengdu) Communication Organization
November 13, 2019 Field survey Organization
November 14, 2019 Field survey Organization
November 19, 2019 Field survey Organization
CNINFO
November 19, 2019 (Beijing) Communication Organization
(http://www.cninfo.com.cn)
November 19-20, 2019 (Shenzhen) Communication Organization
November 21, 2019 Field survey Organization
November 28, 2019 Field survey Organization
November 28, 2019 (Shenzhen) Communication Organization
November 29, 2019 Field survey Organization
December 17, 2019 Field survey Organization
December 24, 2019 Field survey Organization
Reception times 52 times
Number of organizations received About 1,000 (1,600+ persons in total)
Number of individuals received 25 persons
Number of other interviewees received 0
Whether undisclosed important No
information is disclosed, revealed or
divulged
31
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section V Significant Matters
I. Common stock profit distribution and transferring capital reserve to capital
stock of the Company
Formulation, implementation and adjustment of common stock profit distribution policy, especially
cash dividend policy, during the reporting period
√ Applicable □ Not applicable
According to the Profit Distribution Plan 2018 reviewed and adopted at the Annual General Meeting
2018 of the Company, based on the total capital stock of 3,881,608,005, the Company distributed the
dividend of RMB 17 in cash (tax inclusive) to all shareholders for every 10 shares. The distribution plan
was expressed by the independent directors of the Company, submitted to the general meeting for
approval after reviewed by the board of directors of the Company, and had been implemented on June 6,
2019.
Special notes on cash dividend policy
Whether it meets the requirements of the Articles of Association (AoA) or the
Yes
resolutions of general meeting?
Is the dividend distribution standard and proportion specific and clear? Yes
Are relevant decision-making procedures and mechanisms complete? Yes
Have the independent directors performed their duties and fulfilled their due
Yes
roles?
Do the minority shareholders have the chance to fully express their opinions and
Yes
demands, and are their legal rights and interests fully protected?
Are the conditions and procedures normative and transparent in case of
Yes
adjustments or changes of the cash dividend policy?
Common stock dividend distribution scheme (plan) and share capital increase from capital surplus
scheme (plan) in the past 3 years (including the reporting period):
The Company's cash dividend distribution scheme in 2019: The Company distributed cash
dividends of RMB 22 (tax inclusive) for every 10 shares and totaling RMB 8.54 billion in cash.
The Company's cash dividend distribution scheme in 2018: The Company distributed cash
dividends of RMB 17 (tax inclusive) for every 10 shares and totaling RMB 6.599 billion in cash.
The Company's cash dividend distribution scheme in 2017: The Company distributed cash
dividends of RMB 13 (tax inclusive) for every 10 shares and totaling RMB 5.046 billion in cash.
Common stock cash dividends of the Company in the past 3 years (including the reporting period)
Unit: RMB
32
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Ratio of total
cash
Ratio of cash
Ratio of cash dividends
dividends in
Net profit dividends to (including
other forms to
attributable to net profit those in other
Cash net profit
common attributable to forms) to net
dividends in attributable to
stockholders of the common Total cash dividends profit
Year of Cash dividends (tax other forms common
listed company in stockholders (including those in attributable to
dividends inclusive) (such as stockholders
the annual of the listed other forms) common
share of the listed
consolidated company in stockholders
repurchase) company in
statement in the the of the listed
the
year of dividends consolidated company in
consolidated
statement the
statement
consolidated
statement
Year 2019 8,539,537,611.00 17,402,164,190.16 49.07% 0.00 0.00% 8,539,537,611.00 49.07%
Year 2018 6,598,733,608.50 13,384,246,683.60 49.30% 0.00 0.00% 6,598,733,608.50 49.30%
Year 2017 5,046,090,406.50 9,673,721,498.15 52.16% 0.00 0.00% 5,046,090,406.50 52.16%
The Company achieved profit within the reporting period and the parent company's attributable
profit to common stockholders was positive, but no common stock cash dividend distribution plan was
proposed
□ Applicable √ Not applicable
II. Profit distribution and transferring capital reserve to capital stock during the
reporting period
√ Applicable □ Not applicable
Bonus shares per 10 shares (shares) 0
Dividend per 10 shares (RMB) (tax inclusive) 22
Increase shares per 10 shares (shares) 0
Equity base of distribution plan (shares) 3,881,608,005
Cash dividend (RMB) (tax inclusive) 8,539,537,611
Cash dividend in other forms (such as share
0.00
repurchase) (RMB)
Total cash dividends (including those in other forms)
8,539,537,611
(RMB)
Distributable profit (RMB) 34,542,304,965.71
Ratio of total cash dividends (including those in other
100%
forms) to total distributable profit
Cash dividend distribution in this period
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should
account for a minimum of 40% of the profit distribution when the profit is distributed.
Notes on details of profit distribution plan or plan for transferring capital reserve into capital stock
The Company's cash dividend distribution scheme in 2019: Based on the total capital stock on the equity registration
date when the Company implemented the profit distribution scheme, the Company distributed cash dividends of RMB 22
(tax inclusive) for every 10 shares and distributed totally RMB 8,539,537,611 in cash. No bonus share was distributed
and no capital reserve was transferred to capital stock in current year.
33
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
III. Performance in fulfilling commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the
Company’s actual controller(s), shareholders, related parties, acquirer(s) and other commitment
parties
√ Applicable □ Not applicable
The Company disclosed the Notice on Commitments Concerning Non-Public Offering of Shares on
April 19, 2018, which disclosed the commitments of the Company, directors, controlling shareholders,
actual controller(s) and directors and officers participating the ESOP on five aspects. During the
reporting period, the above-mentioned commitment makers had all strictly fulfilled the commitments.
2. In case the Company’s asset or project has profit forecast, and the reporting period is still in
forecasting period, the Company shall make a statement about the asset or project reaching the
original expectation and the reasons thereof.
□ Applicable √ Not applicable
IV. Non-operating occupation of funds of the listed companies by controlling
shareholders and their related parties
□ Applicable √ Not applicable
The Company had no non-operating occupation of funds of the listed companies by controlling
shareholders and their related parties during the reporting period.
V. Note on the board of directors, the board of supervisors and independent
directors (if any) on the "non-standard audit report" of the accounting firm during the
reporting period
□ Applicable √ Not applicable
VI. Note on changes in accounting policy, accounting estimates and accounting
methods compared with the financial report of the previous fiscal year
√ Applicable □ Not applicable
1. Changes in significant accounting policy
Content and reason of changes in accounting policy Remarks
Presentation of financial statement: The Ministry of Finance issued the Notice on Refer to the following explanations for details of
Revising and Printing Formats of Financial Statements for General Enterprises in 2019 the items in the Financial Statements 2018
(CK (2019) No.6) in April, 2019 to revise the format of financial statements of enterprise. which are affected by retroactive adjustment
Presentation of financial statement: The Notice on Revising and Printing Formats of
Consolidated Financial Statements (2019) (CK (2019) No.16) revised the format of
financial statements of enterprise.
According to the provisions for transition from
Changes in accounting policy caused by execution of new financial instrument the old standards to the new standards,
standards: The Ministry of Finance issued the Accounting Standards for Business information of the comparable period is not
Enterprises No.22 – Recognition and Measurement of Financial Instruments (2017 adjusted, and the beginning retained earnings or
Revision) (CK (2017) No.7), the Accounting Standards for Business Enterprises No.23 - other comprehensive income of the reporting
Transfer of Financial Assets (2017 Revision) (CK (2017) No.8), the Accounting period will be adjusted retroactively for the
Standards for Business EnterprisesNo.24- Hedging Accounting (2017 Revision) (CK difference between the new standards and the
(2017) No.9) on March 31, 2017, and the Accounting Standards for Business original standards on the date of initial
Enterprises No.37- Presentation of Financial Instruments (2017 Revision) (CK (2017) implementation. Refer to "Section XII, V.
No.14) (the above standards collectively referred to as the "New Financial Instrument Significant accounting policy and accounting
Standards") on May 2, 2017, requiring enterprises which were simultaneously listed estimates, 29, (3) Adjustment of relevant items
abroad and at home and which were listed abroad and prepared their financial report in financial statements at the beginning of the
according to the International Financial Reporting Standards (IFRS) or the Accounting implementation year as a result of initial
Standards for Business Enterprises (ASBE) to implement such standards since January implementation of new financial instrument
1, 2018; and other domestic listed companies to implement such standards since standards, new revenue standards and new
January 1, 2019. lease standards from 2019" for details about
impact on the Financial Statements 2018
The impact of CK (2019) No. 6 on the Financial Statements 2018 are presented below:
34
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Financial Statements 2018 (Consolidated) Financial Statements 2018 (Parent Company)
Item
Before change After change Before change After change
Notes receivable and
16,261,973,287.83
accounts receivable
Notes receivable 16,134,641,950.86
Accounts receivable 127,331,336.97
Notes payable and
3,566,293,179.83 175,000.00
accounts payable
Notes payable 413,918,369.11
Accounts payable 3,152,374,810.72 175,000.00
Asset impairment loss 10,879,427.89 143,797.84
Asset impairment loss
-10,879,427.89 -143,797.84
(loss indicated with “-”)
2. Changes in significant accounting estimates
No changes in significant accounting estimates during the reporting period.
3. Adjustment of relevant items in financial statements at the beginning of the initial
implementation year as a result of initial implementation of new financial instrument standards, new
revenue standards and new lease standards
Consolidated financial statements:
Balance sheet
Item
December 31, 2018 Reclassification Remeasurement January 1, 2019
Notes receivable 16,134,641,950.86 -2,269,711,750.31 13,864,930,200.55
Accounts receivable
2,269,711,750.31 2,269,711,750.31
financing
Available-for-sale
1,200,000.00 -1,200,000.00
financial assets
Other non-current
1,200,000.00 1,200,000.00
financial assets
Financial statements of parent company:
Balance sheet
Item
December 31, 2018 Reclassification Remeasurement January 1, 2019
Available-for-sale
1,200,000.00 -1,200,000.00
financial assets
Other non-current
1,200,000.00 1,200,000.00
financial assets
4. Note on comparison data before the retrospective adjustments due to initial implementation of
new standards for financial instruments or new lease standards
Comparison data which does not need retrospective adjustments due to initial implementation of
new standards for financial instruments or new lease standards during the reporting period.
The Company had no changes in accounting policy, accounting estimates and accounting methods
during the reporting period.
VII. Note on rectification of major accounting error in the reporting period which
needs to be tracked and restated
□ Applicable √ Not applicable
35
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The Company had no rectification of major accounting error in the reporting period which needs to
be tracked and restated during the reporting period.
VIII. Note on changes in the scope of consolidated financial statements compared
with the financial report of the previous year
√ Applicable □ Not applicable
On June 20, 2019, the Company and Wuliangye Group, as reviewed and approved by the 5th board
of directors of the Company, jointly funded and established Wuliang NongXiang Series Baijiu Yibin Co.,
Ltd.", of which the registered capital was RMB 100 million. The Company contributed RMB 95 million,
taking up 95% of the registered capital; Wuliangye Group contributed RMB 5 million, taking up 5% of the
registered capital; and Wuliang NongXiang Series Baijiu Yibin Co., Ltd. was included in the consolidation
scope of the Company since its establishment.
IX. Appointment and dismissal of accounting firms
Accounting firm currently appointed
Name of Chinese accounting firm Sichuan Huaxin (Group) CPA (LLP)
Remuneration of Chinese accounting firm RMB 1.32million (excluding internal control and audit fee)
Term of auditing services of Chinese accounting firm 19
Name of the CPAs of Chinese accounting firm Li Min, Liu Jun
Term of auditing services of the CPAs of Chinese
The 4th year of Mr. Li Min, the 2nd year of Mr. Liu Jun
accounting firm
Has the accounting firm been changed in current period?
□ Yes √ No
Appointment of internal control audit accounting firm, financial advisor or sponsor
√ Applicable □ Not applicable
The Company continued to appoint "Sichuan Huaxin (Group) CPA (LLP)" as the internal control and
audit organization of the Company in 2019 at the cost of RMB 600,000.
X. Suspension or termination of listing confronted upon disclosure of the annual
report
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
The Company had no bankruptcy reorganization during the reporting period.
XII. Major litigation and arbitration matters
□ Applicable √ Not applicable
The Company had no major litigation and arbitration matters during the reporting period.
Other litigation and arbitration matters
√ Applicable □ Not applicable
36
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Enforcement
Amount Whether
Basic information Progress of of
involved in the forming Results and influence of trial of Disclosure Disclosure
about litigation litigation adjudication
case (Unit: estimated litigation (arbitration) date index
(arbitration) (arbitration) of litigation
RMB ’0,000) liabilities
(arbitration)
In consideration that Binhe
Company failed to fulfill the
payment obligation within the
time specified in the judgment,
The Company sued
the Company submitted an
Beijing Tanshi
application to Beijing No.1
Ruifeng Trade Co.,
Intermediate People’s Court for
Ltd. and Gansu Binhe The
The case enforcement on October 11,
Food Industry enforcement
7,000 No had been 2019. Beijing No.1 Intermediate
(Group) Co., Ltd. for had been
settled People’s Court published main
infringement of the completed
contents of the judgment on the
exclusive right to use
China Intellectual Property
the trademark
News on December 27, 2019,
"Wuliangye"
and remitted the executed
money of RMB 5,482,250 to
the account of the Company on
January 4, 2020.
In consideration that Binhe
Company failed to fulfill the
payment obligation within the
The Company sued time specified in the judgment,
Beijing Tanshi the Company submitted an
Ruifeng Trade Co., application to Beijing No.1
Ltd. and Gansu Binhe Intermediate People’s Court for
The
Food Industry The case enforcement on October 11,
enforcement
(Group) Co., Ltd. for 6,000 No had been 2019. Beijing No.1 Intermediate
had been
infringement of the settled People’s Court published main
completed
exclusive right to use contents of the judgment on the
the trademark China Intellectual Property
"Wuliang Chun News on December 27, 2019,
(Spring)" and remitted the executed
money of RMB 4,465,800 to
the account of the Company on
January 4, 2020.
XIII. Punishment and rectification
□ Applicable √ Not applicable
The Company had no punishment or rectification during the reporting period.
37
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
XIV. Credit conditions of the Company, its controlling shareholders and actual
controllers
√ Applicable □ Not applicable
The Company, its controlling shareholders and actual controllers had good credit conditions during
the reporting period.
XV. Implementation of the Company's equity incentive plan, ESOP or other
employee incentive measures
√ Applicable □ Not applicable
The 11th meeting of the 5th board of directors of the Company held on October 30, 2015 and the
annual general meeting of 2015 held on June 22, 2016 reviewed and approved the Proposal for the First
Phase of Employee Stock Ownership Plan (ESOP) of Wuliangye Yibin Co., Ltd. (Draft) (Subscription in
Non-Public Offering of Shares) and its Summary, approving the Company to implement the ESOP.
The shares issued by non-public offering for the Company's ESOP were issued and listed on April
19, 2018. In August, the Company held the 1st meeting of shareholders participating the ESOP and set
up the management committee of the ESOP (Phase I). Participants of the ESOP included directors,
supervisors, senior management, and other employees of the Company, 2,428 persons in total, and
subscribed 23,696,280 shares, taking up 0.61% of total capital stock of the Company.
At the end of the reporting period, current directors, supervisors, senior management, and members
of CPC of the Company (Li Shuguang, Chen Lin, Zou Tao, Yang Yunxia, Wu Guoping, Zhu Zhongyu,
Tang Bochao, Tang Shengyun, Luo Wei, Zhao Dong, Wu Jianjun and Peng Zhifu) participating the ESOP
indirectly held 1,898,683 shares through the Guotai Junan Fund Management Plan, taking up about 2.22%
of the shares issued through non-public offering. At present, the management committee of the ESOP is
composed of 30 persons, including 1 director and 1 deputy director. There was no change during the
reporting period. Scheme for handling the demission and resignation of holders of the ESOP is under
research.
XVI. Major related transactions
1. Related transactions related to daily operation
√ Applicable □ Not applicable
The Company signed the Financial Service Agreement and the Supplemental Agreement to the
Financial Service Agreement with the Finance Company on April 12, 2018 and March 20, 2019,
respectively. The main contents were deposits and loans service. Daily balance of deposits was no more
than RMB 32.9 billion in 2019 and daily balance of loans no more than RMB 2.5 billion in 2019. Refer to
"Section XII, X. Related parties and related transactions, 5. Related transactions (5) Other related
transactions" for details about related transactions between the Company and the Finance Company.
38
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable √ Not applicable
The Company had no related transactions arising from the acquisition or sale of assets or equity of
the Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable √ Not applicable
The Company had no related transactions of joint foreign investment during the reporting period.
4. Current associated rights of credit and liabilities
□ Applicable √ Not applicable
The Company had no current associated rights of credit and liabilities during the reporting period.
5. Other major related transactions
□ Applicable √ Not applicable
The Company had no other major related transactions during the reporting period.
XVII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable √ Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□ Applicable √ Not applicable
The Company had no lease during the reporting period.
2. Major guarantee
□ Applicable √ Not applicable
The Company had no guarantee during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
□ Applicable √ Not applicable
The Company had no entrusted financing during the reporting period.
(2) Entrusted loan
□ Applicable √ Not applicable
The Company had no entrusted loan during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
The Company had no other major contracts during the reporting period.
XVIII. Social responsibility
1. Fulfillment of social responsibility
Refer to the Social Responsibility Report 2019 disclosed by the Company on April 28, 2020.
39
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
2. Show social responsibility by setting poverty alleviation targets
(1) Targeted poverty alleviation
The Company has always recognized that there is a huge, political responsibility to tackle poverty
alleviation and it has set targets to help alleviate those in poverty-stricken areas. In 2019, the Company
focused on the principle of "giving people a leg up to help them get going and develop". The Company
demonstrated its advantages in capital, production, and marketing, and assisted with poverty alleviation
in a number of regions, including Litang County within the Ganzi Prefecture, Xingwen County and
Pingshan County in Yibin. It helped alleviate people who had impoverished industries, insufficient
education, limited consumption pools, and those who suffered from basic poverty.
(2) Annual summary on poverty alleviation targets
The Company has so far contributed RMB 273 million towards the poverty alleviation fund and
purchased over RMB 45 million’s worth of poverty alleviation products. The Company won the Social
Responsibility award at the 12th People’s Enterprise Poverty Alleviation Awards, and the People’s Daily
award for Targeting Poverty Alleviation, serving as a recommended model for building capability. It was
voted one of the Top 50 "Social Organizations for Alleviating Poverty", and was one of the 2018
"Advanced Units for Alleviating Poverty in Sichuan". It was also a leading group in the State Council’s
"Sichuan Advanced Poverty Alleviation Collective of 2019", and the "Most Charitable Enterprise" in
Sichuan Province.
Capitalizing operations, and building the "Wuliangye + Village Collective Asset Management
Company+Farmers" model
The Company donated RMB 2.1 million to Litang County in the Ganzi Prefecture, and used over
RMB 12 million to establish the first village collective asset management company in Ganzi. The equity
was apportioned to farmers at the Wuliangye Litang Polar Fruits and Vegetables (Mushroom) Base, and
they became the production operators. This motivated farmers to take part in industrial development.
The Company provided aid with a "Purchase Rather Than Donate" scheme. It helped drive the collective
economy of the village through extensive marketing, and made more than RMB 7.1 million in revenue
and dividends of over RMB 1.5 million. The Company donated RMB 1.25 million to Xingwen County in
Yibin for the Wuliangye Qingshanyan Bamboo Forest (Nursery Garden) Demonstration Base, and it
apportioned the equity to the village-collective asset management company. They drove the village’s
collective economy and made nearly RMB 600,000 in revenue and dividends of nearly RMB 100,000
through equity quantification. The Company implemented an innovative model centered on the
village-collective asset management company, and was able make the transition from traditional,
40
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
agricultural production to having capitalized operations. It demonstrated the increased importance of
playing a leading industrial role.
Industrialized operations, building the "Wuliangye+Industrial Base+Farmers" model
The Company had always organically integrated base construction with rural revitalization. It has
encouraged farmers to carry out moderate-scale operations and has promoted land transfers and top
quality construction on farmland. It has used more than one million mu to construct a core demonstration
area, and a special grain base for brewing. In Xingwen County, Yibin, the Company built the 1,100-mu
Wuliangye Qingshanyan Bamboo Forest (Nursery Garden) Demonstration Base. This mainly produced
bamboo pulp and this was subsequently purchased by the Yibin Paper Industry Co, Ltd. via the
Company. This helped solve the problem of farmers’ long-term revenue. The Company has also
developed its auxiliary industries such as bamboo and bonsai planting/breeding in the bamboo forest, in
order to improve its land resources and solve both long and short-term problems with farmers’ revenues.
The Company built the 42-mu Wuliangye Litang Polar Fruits and Vegetable (Mushroom) Base in Litang
County, Ganzi Prefecture. It is an enclave park with a plateau and it has helped stimulate the
development of seven poor villages and nearly 400 peasant households. The mushroom products at this
base were the first to obtain a green food mark in Litang County.
Market-oriented operations, building the "Wuliangye+Large Group and Large
Enterprise+Farmers" model
The Company made full use of its market mechanism to find the interest bonds for alleviating
consumption poverty. It increased the revenue of farmers by hosting trade shows, and at regular and
irregular intervals purchased products by employees to help alleviate them of poverty. It created a
special poverty alleviation zone for products on the digital "Wuliangye Family" labor union platform.
While boosting the confidence of farmers, the Company gave full play to the advantages of its
"multi-dimensional diversified industry platform". The Company introduced brand and marketing
management packages to leading groups and large enterprises, so that there could be long-term
cooperation. It injected new impetus into poverty alleviation by strengthening its brand connotations and
modern marketing concepts. The Company strengthened its cooperation with large on-line and off-line
groups/enterprises, such as www.freshhema.com, JD.com, and ZHNK. It actively took part in poverty
alleviation activities and hosted multiple large exhibitions for farmers to exhibit their grains nationally to
social organizations. These included both national agricultural exhibitions and sideline product and food
safety exhibitions, so they could build a better marketing channel, and a more stable and long-lasting
41
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
marketing network. The Company mobilized social forces to be active in poverty alleviation activities,
and they helped quickly turn the products used for poverty alleviation into marketable products.
Enterprise-dominant operations, building the "Wuliangye+Echelon Cultivation of
Talent+Farmers" model
The Company donated millions of educational and multi-media classroom materials and actively
supported work in the Ganzi Prefecture to "Prevent Dropouts and Ensure Compulsory Education". It built
the Wuliangye Hope Primary School and donated money towards the construction of the "Five-Love"
teaching building. It established the Wuliangye Education Fund which contains more than RMB 20
million. This has been used to reward teachers and assist impoverished students. It has also been used
to introduce technical experts into the industry, who have helped farmers receive technical training,
improve their technical knowledge, and become newly professional industrials that industrial bases can
rely on. Six poverty alleviation cadres were selected and sent by the Company to the front-line of
impoverished areas, and they led local farmers to take part in production management, fund-raising,
marketing and other activities. In doing so, they helped them to comprehensively develop, and
themselves promoted the extension of basic public cultural services in the countryside. Their excellent
deeds were widely publicized and they prospered as a result of this centralized publicity. This helped
build momentum for more rural governance systems that could tackle poverty and achieve prosperity.
Party Cohesion, building the "Wuliangye Party +'Two Village Committees' +Party
Members+Farmers" model
The Company helped construct a party branch at the Polar Fruits and Vegetables (Mushroom) Base
in Litang County, Ganzi Prefecture. It provided construction materials, helped boost work performance,
and innovated how to implement shared resources. In Xingwen County, Yibin, the Company built a home
for the masses and a public service center in the Qingshanyan Village. It introduced the concept of a
party-backed Wuliangye cultural center and greatly strengthened the cohesion of the party at
village-level. In Pingshan County, Yibin, the Company cooperated with the village enterprise to build the
"Wuliang New VillageVirtuous Baixiang" demonstration site. This breathed new life into the rural
landscape and helped starting a new era of modern, rural party construction.
(3) Targeted poverty alleviation effect
Unit of
Index Quantity/performance
measurement
I. General situation -- --
Including: 1. Funds RMB '0,000 13,358
42
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
RMB 200,000 (donating RMB 120,000 of educational and cultural
materials to Xiamula Township; donating 300 sets of charitable
2. Amount converted from materials RMB '0,000 packages valued RMB 30,000 to counterpart assisted regions; and
donating RMB 50,000 of educational materials to Xinjie Village Primary
School of Dayuan Ethnic Primary School of Xianfeng Township)
3. Number of poor people who move out of In 2019, the Company helped 21 persons of 5 households of Baixiang
Person
poverty under the help of the Company Village of Pingshan County to get rid of poverty
II. Input by items -- --
1. Industrial development poverty alleviation -- --
Including: 1.1 Type of industrial development
--
poverty alleviation project
5 (construction of the characteristic agricultural products (Tibetan
mushroom and Tibetan agarics) base of Shangmayan Village, Xiamula
Township, Litang County; construction of the bamboo industry of
1.2 Number of industrial development Qingshanyan Village, Xingwen County; construction of the special
Piece
poverty alleviation project brewing grain base; construction of the poverty alleviation workshop of
Xingwen County; construction of the "rural revitalization industrial road"
and promoting the construction of transportation infrastructure and the
rural revitalization strategy)
1.3 Amount for industrial development
RMB '0,000 10,100
poverty alleviation project
1.4 Number of poor people who get rid of
Person
poverty under the help of the Company
2. Transfer employment poverty alleviation -- --
Including: 2.1 Amount for vocational skill
RMB '0,000
training
2.2 Number of attendees of vocational skill
Person-time
training
2.3 Number of employment of the poor under
Person 48
the help of the Company
3. Poverty alleviation relocation -- --
Including: 3.1 Number of employment of
relocated household under the help of the Person
Company
4. Educational poverty alleviation -- --
Including: 4.1 Amount for funding poor
RMB '0,000 258
students
43 persons (providing educational assistance to 20 outstanding poor
undergraduates with RMB 5,000/person, granting student subsidies of
4.2 Number of poor students receiving fund Person RMB 100,000; donating RMB 2.48 million for supporting the acrobatics
education poverty alleviation project of Yibin, and subsidizing 23
students)
RMB 200,000 (donating RMB 120,000 of educational and cultural
materials to Xiamula Township; donating 300 sets of charitable
4.3 Amount for improving educational
RMB '0,000 packages valued RMB 30,000 to counterpart assisted regions; and
resources of impoverished areas
donating RMB 50,000 of educational materials to Xinjie Village Primary
School of Dayuan Ethnic Primary School of Xianfeng Township)
5. Health poverty alleviation -- --
Including: 5.1 Amount for medical and health
RMB '0,000
resources of impoverished areas
6. Ecological protection poverty alleviation -- --
Including: 6.1 Type of project --
6.2 Investment amount RMB '0,000
7. Subsistence allowance -- --
Including: 7.1 Amount for the "Three Left
RMB '0,000
Behind" personnel
43
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
7.2 Number of the "Three Left Behind"
Person
personnel receiving help
7.3 Amount for poor disabled RMB '0,000
7.4 Number of poor disabled receiving help Person
8. Social poverty alleviation -- --
Including: 8.1 Amount for poverty alleviation
RMB '0,000
cooperation between East and West China
8.2 Amount for fixed-point poverty alleviation RMB '0,000
8.3 Amount for poverty alleviation charitable
RMB '0,000
foundation
9. Consumption for poverty alleviation
Including 9.1 "Purchase Rather Than
RMB '0,000 2,666
Donation" characteristic agricultural products
10. Other projects -- --
3 (donating RMB 1 million to Yajiang County and Xinlong County,
respectively, RMB 2 million in total; donating RMB 700,000 to fill the gap
of funds for strengthening the weak points according to the standards of
Including: 10.1 Number of projects Piece
Jieji Village, Pingbian Yi Nationality Township, Pingshan County;
donating RMB 640,000 to support the construction of demonstration site
of village enterprise co-construction of Baixiang Village)
10.2 Investment amount RMB '0,000 334
10.3. Number of poor people who move out In 2019, the Company helped 21 persons of 5 households of Baixiang
Person
of poverty under the help of the Company Village of Pingshan County to get rid of poverty
III. Awards received (content, level) -- --
"Social Organization Poverty Alleviation 50 Best Cases", "Sichuan
Advanced Fixed-Point Poverty Alleviation Unit Directly Under Provincial
Jurisdiction 2018", and "Sichuan Advanced Poverty Alleviation
Collective 2019" of theState Council Leading Group Office of Poverty
Alleviation and Development, the "Most Charitable Donating Enterprise"
of Sichuan Province. Zhangwen, supervisor of Wuliangye Mass Work
Department and member of the work team stationed at Shangmayan
Village, Xiamula Township, Litang County, Ganzi Prefecture was
honored as "Advanced Individual of the Poverty Alleviation 'Five-One'
Assistance of Sichuan 2018"
(4) Subsequent targeted poverty alleviation plan
The Company will accomplish its work by optimizing industrial development, offering educational
assistance, assisting with consumption, and guaranteeing developments in line with the
instructions/requirements of the Central Government and the Sichuan Provincial Party Committee and
Government. It will base its poverty alleviation practices in Yibin’s Xingwen County and Pingshan County,
and Litang County in the Ganzi Prefecture.
Optimize industrial development. 1) The Company will earnestly promote the Qingshanyan
bamboo industrial project in Xingwen County. The Company has finished funding the industrial base for
Qingshanyan Bamboo Base. It will continue to promote new bamboo products from the nursery garden
(bamboo fungus, tricholoma matsutake, etc.), and will expand and refine its bamboo product operations.
2) The Company will continue to promote standardized operations and developments at the Litang
"Polar Fruits and Vegetables" (Mushroom) Base. The Company will make full use of its scale and talent
44
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
to vigorously promote new technologies. It will standardize the production of mushrooms, and will make
full use of the "Zangziyuan" (“藏孜源” in Chinese) registered trademark. It will extend its industrial chain
and thoroughly drive forward the development of Litang County’s edible mushroom industry. It will play
an active role in poverty alleviation by ensuring industrial development and increasing local revenue. 3)
The Company will continue to provide industrial assistance in the Baixiang Village in Pingshan County.
The Company will utilize its local resources and strengthen the impetus for better communication and
more innovation in Baixiang Village. 4) The Company will promote the construction, consolidation and
subsequent upgrades of a special brewing grain base. The Company will upgrade its million-mu brewing
grain base. It will increase the revenue of poor households and build a new model that can serve as an
example in meeting the benchmark for targeted poverty alleviation. At the same time, it will gradually
establish a special grain supply system for liquor production that is green and organic.
Refine educational assistance. 1) The Company will continue to promote the "Prevent Dropout
and Ensure Compulsory Education" scheme in Litang County. The Company will increase its efforts to
ensure educational assistance. It will donate RMB 100,000 into a special fund to subsidize 20 poor
students from Litang County (RMB 5,000/person). It will actively promote the construction of a network
for all middle schools and classrooms across Litang County. 2) The Company will continue to provide
educational assistance to Xingwen County and Pingshan County. The Company will continue to donate
care packages (containing schoolbags, stationaries and books) to poor students in Xingwen County and
Pingshan County. 3) The Company will follow up on its relief efforts to tackle education poverty in Yibin,
and it will ensure the project sees substantial results. 4) The Company will carry out various activities
and give donations once it has certified the practices of Xingwen County, Pingshan County, and Litang
County. It will carry out research, surveys and through negotiations.
Boost consumption to alleviate poverty. 1) The Company will actually push "Purchase Rather
Than Donate" activities in the regions it is assisting. It will purchase agricultural products that are
characteristic of these poor regions and distribute them as employee benefits during "Spring Festival",
"Mid-Autumn Festival", "Poverty Alleviation Day", and other holidays. 2) The Company will carry out the
“Purchase Rather Than Donate” project and update products on a regular basis. It will collect the
information for employees' orders, and distribute products centrally. 3) The Company will steadily
promote the centralized RMB 15 million "Purchase Rather Than Donate" project in the Liangshan
Prefecture. 4) The Company will give play to advantages of the platform, actively help to expand both
on-line and off-line sales platforms/channels, and continue to promote the sales of poverty alleviation
45
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
products to drive the development of regional industry and economy and increase the revenue of the
masses.
Guarantees to strengthen development. 1) The Company will actively take responsibility for
revitalizing rural Yibin. It will fund RMB 300 million to construct an "industrial path for rural revitalization"
over the next three years. It will support construction of the "Four Good Rural Roads" which will make
travel easier for farmers, and it will make further improvements to the infrastructure for regional
development. 2) The Company will work with the village enterprise to construct a demonstration site in
the Baixiang Village. It will spread spiritual guidance and inspire the masses to be free of poverty. 3) The
Company will continue to consolidate its poverty alleviation workshop in Xingwen County and will drive
local employment, gradually increasing revenue. 4) The Company will send work groups to the counties,
townships, and villages to research and survey the masses. They will inspire enthusiasm in them to be
free of poverty and become rich.
3. Conditions related to environmental protection
Whether the listed company and its subsidiaries are key pollutant discharging units announced by
environmental protection authorities
The Company and its subsidiaries voluntarily disclose the following information:
Name of main Pollutant
Name of the Total
pollutants and Emission Number Outlets Emission emission Total Excessive
Company or emissions
characteristic Means of outlets Distribution concentration standard emissions emission
subsidiaries approved
pollutants observed
Outlets of
advanced
Organized
treatment area of 133.39 Non-excess
COD continuous 1 31.80mg/L 400 tons
the Environmental tons ive
emission
Protection
Company
Outlets of
advanced
Organized
Ammonia treatment area of Discharge Non-excess
continuous 1 0.67mg/L 3.04 tons 40 tons
nitrogen the Environmental Standard of ive
emission
Protection Water Pollutants
Wuliangye Company for Fermentation
Yibin Co., Ltd. Outlets of Alcohol and
advanced Distilled Spirits
Organized Industry
Total treatment area of Non-excess
continuous 1 0.39mg/L (GB27631-2011) 1.62 tons /
phosphorus the Environmental ive
emission
Protection
Company
Outlets of
advanced
Organized
treatment area of Non-excess
Total nitrogen continuous 1 9.04mg/L 37.27 tons /
the Environmental ive
emission
Protection
Company
81.84mg/m Emission
Standard of Air
Pollutants for
Organized 102.27mg/m Boiler
Wuliangye 3,678.33 Non-excess
Sulfur dioxide intermittent 4 Park (GB13271-2014 77.82 tons
Yibin Co., Ltd. 314.55mg/m tons ive
emission ) Emission
Standard of Air
294.68mg/m Pollutants for
Industrial Kiln
46
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
and Furnace
(GB9078-1996)
207.73mg/m Emission
Standard of Air
Pollutants for
210.31mg/m Boiler
Organized (GB13271-2014
Wuliangye 242.27mg/m 243.27 2,374.84 Non-excess
Nitrogen oxide intermittent 4 Park ) Emission
Yibin Co., Ltd. tons tons ive
emission Standard of Air
Pollutants for
215.98mg/m Industrial Kiln
and Furnace
(GB9078-1996)
66.44mg/m Emission
Standard of Air
Pollutants for
76.80 mg/m Boiler
(GB13271-2014
Organized 31.97mg/m )
Wuliangye Non-excess
Particulates intermittent 4 Park 51.51 tons /
Yibin Co., Ltd. Emission ive
emission
Standard of Air
Pollutants for
30.45mg/m Industrial Kiln
and Furnace
(GB9078-1996)
(1) Construction and operation of pollution-control facilities
The Company has 3 wastewater pretreatment stations and 1 wastewater advanced treatment zone,
using biochemical treatment and Fenton treatment technology for wastewater treatment.
The Company has 15 natural gas boilers (20t/h), which adopt the advanced low NOX combustion
technology of first-line brands of German and are under good condition. The drying boiler and
environmental-protection boiler had been shut down in July 2019.
(2) Environmental impact assessment on construction project and other environmental
administrative licenses
The new, renovation and expansion projects of the Company all met the requirements of laws and
regulations such as the national environmental protection law and the environmental impact assessment
law, went through the environmental impact assessment and approval process before commencement,
and carried out environmental protection acceptance after completion.
(3) Contingency plan for environmental emergencies
The Company has formulated the Contingency Plan for Environmental Emergencies which has
been filed with Yibin Environmental Protection Bureau after expert review. On August 22, 2019, the
Company carried out the "Environmental Emergency Drill 2019" at Zone F of Push Group. According to
the drill, it is verified that the Company has effective Contingency Plan for Environmental Emergencies
and is capable of handling emergencies, and all its units cooperate closely, making orderly coordination
and organization.
(4) Environment self-monitoring scheme
47
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
From January to May of 2019, the Company disclosed the self-monitoring data to the society on the
Self-monitoring Information Disclosure Platform of Enterprise under Key Monitoring of Sichuan Province
as required by Environmental Protection Department of Sichuan Province, and disclosed the
self-monitoring data to the society on the Pollutant Source Monitoring Information Management and
Sharing Platform of Sichuan Province since June. The Company disclosed totally 72,862 pieces of
self-monitoring data about wastewater, flue gas, noise, etc. to the society throughout 2019.
The Company, through its official website, disclosed basic information, drainage information,
construction and operation of pollution preventing and controlling facilities, environmental impact
assessment on construction project, and other environmental administrative licenses, contingency plan
for environmental emergencies, and annual self-monitoring scheme and report of the Company to the
society on a monthly basis with 12 issues in total.
(5) Other environmental information to be disclosed
None
(6) Other information related to environmental protection
① The Company actively promoted green projects and carried out the construction of the
coal-to-gas project (phase III).
②In 2019, the Company treated 3.9738 million tons of wastewater and the exhaust emission was
about 1.573 billion cubic meters, with 100% up-to-standard discharge/emission.
③There was no environmental pollution accident in 2019.
④ In May 2019, the Company sponsored Sichuan Energy Conservation Association to hold
“Sichuan Green Industrial Development Summit Forum 2019 and the First 'Wuliangye' Cup Energy
Conservation Brand Award Ceremony of Sichuan Province” to promote development of the
environmental protection industry.
⑤Honors awarded in 2019
The cleaner production of the Company was approved and accepted, reaching domestic advanced
level; the Company was honored as the "Sichuan Environment Integrity Enterprise 2018" and had been
receiving this honor for three consecutive years (year 2016, 2017 and 2018); the environmental
protection wetland project of the Company won the “Sichuan Energy Conservation and Environmental
Protection Brand Demonstration Project Award 2018”; and was honored as "Sichuan Industrial
Resources Comprehensive Utilization Base (Park, Enterprise)" in the first batch.
XIX. Note on other major events
□ Applicable √ Not applicable
48
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The Company had no other major events to be explained during the reporting period.
XX. Major events of subsidiaries
□ Applicable √ Not applicable
49
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section VI Changes in Shares and Shareholders
I. Change in shares
1. Change in shares
Unit: Share
Before this change Increase/decrease (+, -) After this change
Capitalization
Issuance of Bonus
Quantity Proportion of public Others Sub-total Quantity Proportion
new shares share
reserve fund
I. Restricted shares 85,839,587 2.21% 10,450 10,450 85,850,037 2.21%
3. Other domestic
85,839,587 2.21% 10,450 10,450 85,850,037 2.21%
shareholding
Including: Domestic
legal person 85,641,285 2.20% 85,641,285 2.20%
shareholding
Domestic natural
198,302 0.01% 10,450 10,450 208,752 0.01%
person shareholding
II. Unrestricted shares 3,795,768,418 97.79% -10,450 -10,450 3,795,757,968 97.79%
1. Common share (in
3,795,768,418 97.79% -10,450 -10,450 3,795,757,968 97.79%
RMB)
III. Total shares 3,881,608,005 100.00% 0 0 3,881,608,005 100.00%
Reasons for change in shares
√ Applicable □ Not applicable
During the reporting period, the change in shares was caused by increase of the lock-up shares of
the resigned officers of the Company.
Approval of changes in shares
□ Applicable √ Not applicable
Transfer of share changes
□ Applicable √ Not applicable
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding
□ Applicable √ Not applicable
Impact of share changes on the basic earnings per share, diluted earnings per share, net
assets per share attributable to common shareholders of the Company and other financial index
in the most recent year and the most recent period
□ Applicable √ Not applicable
Other information the Company deems necessary or required by the securities regulatory
authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: Share
50
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Number of
Increase in shares
current period released in
Name of Beginning number current period Ending number of Reason for being
Date of release
shareholder of restricted shares Number of restricted shares restricted
restricted Number of
shares restricted
shares
Lock-up due to
Liu Zhongguo 38,850 12,950 51,800 20200326
resign of officer
Total 38,850 12,950 51,800 -- --
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable √ Not applicable
2. Note on changes in the total shares, shareholder structure, asset and liability structure of
the Company
□ Applicable √ Not applicable
3. Existing internal employee shares
□ Applicable √ Not applicable
III. Shareholders and actual controller(s)
1. Number and shareholding of shareholders of the Company
Unit: Share
Total
preferred
shareholders
with voting
Total common
Total preferred rights
shareholders at
shareholders with voting restored (if
Total common the end of the
rights restored (if any) at any) at the
shareholders at previous month
282,960 296,724 the end of the reporting end of the
the end of the before the
period previous
reporting period disclosure date
month before
of the Annual
the
Report
disclosure
date of the
reporting
period
Shareholders holding more than 5% shares or top 10 shareholders
Increase
Number of or Pledge or freezing
shares held at decrease Number of Number of
Nature of Shareholding
Name of shareholder the end of the during restricted unrestricted
shareholder Proportion reporting period the shares held shares held
reporting Status Quantity
Quantity
period
Yibin State-Owned Assets State-owned
35.21% 1,366,548,020 1,366,548,020
Operation Co., Ltd. legal person
Sichuan Yibin Wuliangye Group State-owned
19.63% 761,823,343 761,823,343
Co., Ltd. legal person
Hong Kong Securities Clearing Co., Overseas legal
8.64% 335,547,084 335,547,084
Ltd. person
China Securities Finance
Others 2.38% 92,385,936 92,385,936
Corporation Limited
Central Huijin Asset Management State-owned
1.04% 40,192,100 40,192,100
Co., Ltd. legal person
51
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
China Life Insurance Company
Limited - Traditional - Ordinary
Others 0.87% 33,683,218 33,683,218
Insurance Product-005L-CT001
Shenzhen
Wuliangye Yibin Co., Ltd. -
Employee Stock Ownership Plan Others 0.61% 23,696,280 23,696,280
(Phase I)
Shanghai Guotai Junan Securities
Asset Management Co., Ltd. -
Bank of China-Guotai Junan Others 0.50% 19,414,047 19,414,047
Junxiang Wuliangye No.1
Collective Asset Management Plan
Agricultural Bank of China Limited -
E Fund Consumption Industry Others 0.38% 14,772,807 14,772,807
Equity Securities Investment Fund
Taikang Life Insurance Co., Ltd. -
Bonus - Personal Others 0.33% 12,820,710 10,421,704 2,399,006
Bonus-019L-FH002 Shenzhen
Explanations about the association relationship or Among the top 10 shareholders of the Company, Sichuan Yibin Wuliangye Group Co., Ltd. is
concerted action among the above-mentioned a wholly-owned subsidiary of Yibin State-owned Assets Operation Co., Ltd., and it is unclear
shareholders whether other public shareholders have any association relationship or acting in concert.
Shareholding of top 10 shareholders with unrestricted shares
Number of
unrestricted shares Class of share
held at the end of
Name of shareholder the reporting
period Class of share Quantity
Quantity
Common share
Yibin State-Owned Assets Operation Co., Ltd. 1,366,548,020 1,366,548,020
(in RMB)
Common share
Sichuan Yibin Wuliangye Group Co., Ltd. 761,823,343 761,823,343
(in RMB)
Common share
Hong Kong Securities Clearing Co., Ltd. 335,547,084 335,547,084
(in RMB)
Common share
China Securities Finance Corporation Limited 92,385,936 92,385,936
(in RMB)
Common share
Central Huijin Asset Management Co., Ltd. 40,192,100 40,192,100
(in RMB)
China Life Insurance Company Limited - Traditional - Ordinary Insurance Common share
33,683,218 33,683,218
Product-005L-CT001 Shenzhen (in RMB)
Agricultural Bank of China Limited - E Fund Consumption Industry Equity Common share
14,772,807 14,772,807
Securities Investment Fund (in RMB)
Common share
Bank of China Limited - E Fund Small Hybrid Securities Investment Fund 12,800,000 12,800,000
(in RMB)
Bank of China Limited - CMF CSI White Spirit Index Classification Securities Common share
11,425,051 11,425,051
Investment Fund (in RMB)
Industrial and Commercial Bank Of China Limited - Invesco Great Wall Emerging Common share
10,303,601 10,303,601
Growth Hybrid Securities Investment Fund (in RMB)
Among the top 10 shareholders of the Company, Sichuan Yibin
Note on the association relationship or concerted action between top 10 Wuliangye Group Co., Ltd. is a wholly-owned subsidiary of
unrestricted public shareholders, and between top 10 unrestricted public Yibin State-owned Assets Operation Co., Ltd., and it is unclear
shareholders and top 10 shareholders whether other public shareholders have any association
relationship or acting in concert.
Whether the Company’s top 10 common shareholders and top 10 unrestricted common
shareholders agreed on a repurchase transaction during the reporting period
□ Yes √ No
The Company’s top 10 common shareholders and top 10 unrestricted common shareholders did not
52
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
agree on a repurchase transaction during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholder: local state-owned
Type of controlling shareholder: legal person
Legal
Name of controlling shareholder representative/ Date of establishment Organization code Primary business
head of unit
Capital operation and assets
Yibin State-Owned Assets Operation operation within the scope
Han Cheng August 04, 1999 915115007118234259
Co., Ltd. authorized by the People's
Government of Yibin City
Equity of other domestic and foreign
listed companies controlled and Yibin State-Owned Assets Operation Co., Ltd. directly holds 131,847,574 shares of Yibin Tianyuan
participated by controlling Group Co., Ltd., taking up 16.88%; indirectly holds 56,691,800 shares of Yibin Paper Industry Co.,
shareholder during the reporting Ltd., taking up 44.87%.
period
Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
There was no change in controlling shareholder of the Company during the reporting period.
2. Actual controller of the Company and person acting in concert
Nature of actual controller: local state-owned assets administration
Type of actual controller: legal person
Legal
Organization
Name of actual controller representative/ Date of establishment Primary business
code
head of unit
State-owned Assets Supervision and
Administration Commission of Yibin Ying Yuanjun February 24, 2005 Not applicable Not applicable
Municipal Government
Equity of other domestic and foreign Yibin State-owned Assets Supervision and Administration Commission directly holds
listed companies controlled by actual 56,691,800 shares of Yibin Paper Industry Co., Ltd., taking up 44.87%; indirectly holds
controller during the reporting period 131,847,574 shares of Yibin Tianyuan Group Co., Ltd., taking up 16.88%.
Change of actual controller during the reporting period
□ Applicable √ Not applicable
There was no change in actual controller of the Company during the reporting period.
Block diagram of equity and control relationship between the Company and actual controller:
53
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
State-owned Assets Supervision and Administration
Commission of Yibin Municipal Government
100%
Yibin State-Owned Assets Operation Co., Ltd.
100%
35.21%
Sichuan Yibin Wuliangye Group Co., Ltd.
19.63%
Wuliangye Yibin Co., Ltd.
The actual controller controls the Company through trust or other asset management methods
□ Applicable √ Not applicable
4. Other legal person shareholders holding more than 10%
√ Applicable □ Not applicable
Legal
Registered capital Primary business or management
Name of legal person shareholder representative/ Date of establishment
(RMB) activities
head of unit
Investment and investment
Sichuan Yibin Wuliangye Group Co.,
Li Shuguang August 12, 1998 1,000,000,000 management, assets management,
Ltd.
enterprise management service
5. Restricted share reduction of controlling shareholder, actual controller, reorganizer and
other commitment makers
□ Applicable √ Not applicable
54
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section VII Preferred Share
□ Applicable √ Not applicable
The Company had no preferred shares during the reporting period.
55
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds during the reporting period.
56
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section IX Directors, Supervisors, Senior Management and Employees
I. Changes in shareholdings of directors, supervisors, and Senior management
Decrease
Number of Increase in
in number Number of
shares held number of Other
of shares shares held
Status of Date of Date ceasing at the shares held increase/
Name Position Gender Age held in at the end of
service appointment to hold office beginning of in current decrease
current the period
the period period (share)
period (share)
(share) (share)
(share)
Zeng Deputy Secretary of September 27,
Incumbent Male 51 Till now
Congqin CPC, President 2019
Li Secretary of CPC,
Incumbent Male 57 April 21, 2017 Till now
Shuguang Director
Deputy Secretary of
CPC, Director, General
Chen Lin Incumbent Female 59 July 18, 2014 Till now 98,191 98,191
Manager, Chief
Engineer
Member of CPC,
Director, Executive
Zou Tao Incumbent Male 41 July 21, 2018 Till now
Deputy General
Manager
Jiang Member of CPC,
Incumbent Male 53 May 10, 2019 Till now
Wenge Director
Fu
Independent Director Incumbent Male 58 July 18, 2014 Till now
Nanping
Zhou
Independent Director Incumbent Male 67 June 22, 2016 Till now
Yousu
Gan November 18,
Independent Director Incumbent Male 53 Till now
Shengdao 2016
Member of CPC,
Yang Chairman of Labor
Incumbent Female 48 July 18, 2014 Till now
Yunxia Union, Employee
Supervisor
Ren
Supervisor Incumbent Male 54 July 18, 2014 Till now
Shiming
Qiu Ping Supervisor Incumbent Female 55 July 18, 2014 Till now 2,000 2,000
Wu
Employee Supervisor Incumbent Male 50 June 09, 2015 Till now
Guoping
Member of CPC,
Zhu
Deputy General Incumbent Male 56 July 18, 2014 Till now 11,501 11,501
Zhongyu
Manager
Member of CPC,
Tang
Deputy General Incumbent Male 55 July 18, 2014 Till now 20,000 20,000
Bochao
Manager
Member of CPC,
Tang
Deputy General Incumbent Male 57 July 18, 2014 Till now 9,100 9,100
Shengyun
Manager
Member of CPC,
Deputy General
Luo Wei Incumbent Male 55 July 18, 2014 Till now
Manager, Chief
Financial Officer
Member of CPC,
Zhao Deputy General
Incumbent Male 55 July 21, 2018 Till now
Dong Manager, Deputy Chief
Engineer
Total -- -- -- -- -- -- 140,792 140,792
II. Change of directors, supervisors and senior management of the Company
√ Applicable □ Not applicable
Name Position Type Date Reason
57
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Liu Deputy Secretary of Retired as director of the 5th board of directors and
Retired September 27, 2019
Zhongguo CPC, President President due to reaching the mandatory age for retirement
Appointment
Zeng Deputy Secretary of New president as appointed by higher organization and
and September 27, 2019
Congqin CPC, President appointed and dismissed by the general meeting
dismission
Appointment Take the position of Director as appointed by higher
Member of CPC,
Jiang Wenge and May 10, 2019 organization and appointed and dismissed by the general
Director
dismission meeting
Dismissed from the position of Director by the general
Zhang Hui Director Dismissed May 10, 2019
meeting
Remark: 1. In September of 2019, Mr. Fu Nanping applied for resigning as Independent Director of
the 5th board of directors of the Company. The resignation application would become effective after the
general meeting of the Company elects the new independent director. On October 16, 2019, the board
of directors of the Company nominated Mr. Han Cheng as the candidate for director of the 5th board of
directors of the Company, which had to be submitted to the general meeting for consideration.
2. On October 16, 2019, the board of directors of the Company nominated Ms. Liu Feng and Ms.
Yang Ling as the candidate for supervisor of the 5th board of supervisors of the Company and Mr. Ren
Shiming and Ms. Qiu Ping resigned as supervisors, which had to be submitted to the general meeting for
consideration.
III. Service status
Professional background, main work experience and main responsibilities currently in the Company
of current directors, supervisors and senior management of the Company
1. Mr. Zeng Congqin, doctoral candidate. He began to work in July 1988 and successively served
in Changning County of Yibin, municipal authorities, and Cuiping District. He once served as a member
of the Standing Committee, Director of the Propaganda Department, and Executive Deputy County Chief
of Changning County, Director of the Development Planning and Investment Service Bureau of Yibin
Lingang Economic Development Zone, Secretary of the Party Leadership Group and Director of Yibin
Municipal Development and Reform Commission and Director of Municipal Price Bureau, Director of
Yibin Municipal Bureau of Energy, and Secretary of Cuiping District Committee. At present, he serves as
the Deputy Secretary of CPC and President of the Company, Deputy Secretary of CPC, Director, and
General Manager of the Group Company, and Secretary of the Party Working Committee of Yibin
Lingang National Economic and Technical Development Zone.
2. Mr. Li Shuguang, bachelor degree, senior economist. He began to work in July 1983 and once
served the Sichuan Provincial Machinery Industry Department, Sichuan Provincial Planned Economy
Committee, Sichuan Provincial Economic Commission, Sichuan Provincial Economic and Trade
Commission, Sichuan Provincial Economic Commission, and Sichuan Provincial Economic and
Information Commission. He once served as Assistant Mayor of Luzhou People's Government,
58
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Chairman of Board of Supervisors of State-owned Enterprises of Sichuan Provincial Government, Chief
Economist of Sichuan Provincial Economic and Information Commission, Deputy Secretary of the
Leading Party Group and Deputy Director of Sichuan Provincial Economic and Information Commission.
At present, he serves as the Secretary of CPC and Director of the Company, and Secretary of CPC and
President of the Group Company.
3. Ms. Chen Lin, bachelor degree, professor level senior engineer, senior technician, senior
sommelier, senior winemaker, China Liquor Brewing Master, and China Liquor Master. She began to
work in Wuliangye Liquor Factory in March 1980, served as the Secretary of Party Branch and Director
of the Mellow Blending Workshop of Yibin Wuliangye Liquor Factory since December 1992, served as
Deputy General Manager of the Company since April 1998, and served as Member of CPC and Director
of the Group Company, and the Director, General Manager, and Chief Engineer of the Company since
April 2004. She now serves as the Deputy Secretary of CPC, Director, General Manager, and Chief
Engineer of the Company, Member of CPC and Director of the Group Company, and Director and
General Manager of Yibin Wuliangye Liquor Sales Co., Ltd.
4. Mr. Zou Tao, master degree. He began to work in July 2004 and once served the Economic
Investigation Department of Sichuan Provincial Public Security Department, Sichuan Provincial
Discipline Inspection Commission, and Sichuan Provincial Department of Supervision. He once served
as the Deputy Director of No. 4 Office of Discipline Inspection and Supervision and Director of the No.2
Office of Discipline Inspection and Supervision of Sichuan Provincial Discipline Inspection Commission.
In January 2017, he served as the Deputy Secretary of CPC of the Group Company. He now serves as
Member of CPC, Director, and Executive Deputy General Manager of the Company, and Member of
CPC and Vice President of the Group Company, and concurrently as President of Wuliang NongXiang
Series Baijiu Yibin Co., Ltd.
5. Mr. Jiang Wenge, master degree. He began to work in August 1985 and successively served in
Peng'an County and Shunqing District of Nanchong City, Sichuan, and Sichuan Provincial Development
and Reform Commission, and Welfare-to-work Office of Sichuan Province. He once served as Deputy
Head of Shunqing District Government, Deputy Director of Employment and Income Distribution Office,
Deputy Director of Division of Rural Economy, and Director of Division of Rural Economy of Sichuan
Provincial Development and Reform Commission, and the Deputy Director and Primary Investigator of
Welfare-to-work Office of Sichuan Province. He now serves as Member of CPC and Director of the
Company, and Member of CPC, Director and Deputy General Manager of the Group Company.
59
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
6. Mr. Fu Nanping, doctoral candidate. He began to work in September 1985 and once served the
Office of Science and Technology of Nanchang Aircraft Manufacturing Company, and successively
served as Deputy Manager of Issuance Department of SDIC Securities Co., Ltd (Guosen Securities),
Deputy General Manager of Investment Bank Headquarter, Junan Securities Co., Ltd., General Manager
of Investment Bank Department II, Deputy Director of Corporate Financing Headquarter, and Deputy
General Manager of Shenzhen Headquarter of Guotai Junan Securities Co., Ltd. He now serves as the
Business Inspector and Supervisor of Guotai Junan Securities Co., Ltd. and Independent Director of the
Company.
7. Mr. Zhou Yousu, bachelor degree, professor. He began to work in July 1983 and once served
Sichuan Academy of Social Sciences and Meigu County Committee of Sichuan Province. He now
serves as researcher and professor of Sichuan Academy of Social Sciences and Independent Director of
the Company.
8. Mr. Gan Shengdao, doctoral candidate. He has been working on the teaching and scientific
research of financial management and accounting at Sichuan University since July 1990. He now serves
as professor, doctoral supervisor, post-doctoral co-supervisor in accounting of Business School, Sichuan
University, independent director of the Company, independent director of Changhong Meiling Co., Ltd.,
independent director of Sichuan Yahua Industrial Group Co., Ltd., independent director of Sinoseal
Holding Co., Ltd., independent director of Chengdu XGimi Technology Co., Ltd., independent director of
RML Technology Co., Ltd., and outside director of Sichuan Huashi Group Ltd.
9. Ms. Yang Yunxia, bachelor degree, senior political analyst. She began to work in Wuliangye
Liquor Factory in July 1991, served as middle management since August 2003, and served as Director
of the Mass Work Department and Director of the Women's Working Committee of the Company in July
2015. She served as Member of CPC and Chairman of the Labor Union of the Company in June 2018.
She now serves as Member of CPC, Chairman of the Labor Union, and Employee Supervisor of the
Company, and concurrently as Director of the Mass Work Department.
10. Mr. Ren Shiming, bachelor degree, senior accountant, and senior international finance
manager (SIFM). He began to work in July 1989 and successively served as Chief Accountant of the
Finance Office of Sichuan Automobile Factory, Chief Accountant of Chongqing Hongyan Automobile
Transmission Shaft Factory, Chief Accountant and Deputy Chief of the Finance Section of Yibin
Investment Co., Ltd., Chief of the Finance Section, Director of Finance Department, and Director of
Investment Department of Yibin State-Owned Assets Operation Co., Ltd. He now serves as Director and
60
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Employee Supervisor of the Professional Committee Office of Yibin State-Owned Assets Operation Co.,
Ltd. and Supervisor of the Company.
11. Ms. Qiu Ping, college degree, Chinese Certified Public Accountant. She successively served as
Deputy Chief of the Enterprise Section of Yibin Municipal Bureau of Finance, Deputy General Manager
of Yibin Investment Group Company Urban Investment Company, Director of Yibin Assets and Equity
Exchange, Director of Financing Department and Director of Finance Department of Yibin State-Owned
Assets Operation Co., Ltd. She now serves as the Assistant of General Manager of Yibin State-Owned
Assets Operation Co., Ltd. and Supervisor of the Company.
12. Mr. Wu Guoping, bachelor degree, auditor and senior sourcer. He began to work in August
1989 and once served Yibin City Bureau of Audit, transferred to the Company and served as Deputy
Director of the Audit Department in May 2015, Employee Supervisor of the Company in June 2015, and
Deputy Director of the Audit Supervision Department in July 2015. He now serves as Employee
Supervisor of the Company and Deputy Director of the Audit Supervision Department.
13. Mr. Zhu Zhongyu, master degree, senior salesman, economist, and political analyst. He began
to work in Wuliangye Liquor Factory in August 1985, and served as Deputy General Manager of the
Company since April 2003. He now serves as Member of CPC and Deputy General Manager of the
Company, and concurrently as President of Wuliangye Xianlin Ecological Liquor Co., Ltd. and Executive
Deputy General Manager of Yibin Wuliangye Liquor Sales Co., Ltd.
14. Mr. Tang Bochao, master degree, senior economist. He began to serve in Mengzi Military
Sub-command of People's Liberation Army of China since October 1983, and began to work in
Wuliangye Liquor Factor in March 1987 and served as Member of CPC and Deputy General Manager of
the Company since August 2012. He now serves as Member of CPC and Deputy General Manager of
the Company.
15. Mr. Tang Shengyun, master degree, professor level senior engineer and China Liquor Brewing
Master. He began to work in Wuliangye Liquor Factory in July 1987, and served as Member of CPC and
Deputy General Manager of the Company since August 2012. He now serves as Member of CPC and
Deputy General Manager of the Company.
16. Mr. Luo Wei, master degree. He began to work in July 1986 and once served Yibin Municipal
Bureau of Finance, Yibin Municipal Auditing Bureau, Yibin Investment Group Co., Ltd., and Yibin Airport
Co., Ltd. He served as Member of CPC, Deputy General Manager, and Chief Financial Officer of the
Company in February 2014. He now serves as Member of CPC, Deputy General Manager, and Chief
61
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Financial Officer of the Company.
17. Mr. Zhao Dong, bachelor degree, professor level senior engineer. He began to work in August
1986 and once served Sichuan Light Industry School. He began to work in Wuliangye Liquor Factory in
May 1989, and served as Director of the Research Center of the Company in November 2012. He
served as Member of CPC and Deputy Chief Engineer of the Company in July 2017, and Deputy
General Manager of the Company in June 2018. He now serves as Member of CPC, Deputy General
Manager, and Deputy Chief Engineer of the Company.
Service status in the shareholder's unit
√ Applicable □ Not applicable
Whether to
Date
receive
Position in shareholder's Date of ceasing
Name of staff Name of shareholder's unit remuneration or
unit appointment to hold
allowance in the
office
shareholder's unit
Sichuan Yibin Wuliangye Group Secretary of CPC,
Li Shuguang No
Co., Ltd. President
Sichuan Yibin Wuliangye Group Member of CPC, Director,
Zeng Congqin No
Co., Ltd. General Manager
Sichuan Yibin Wuliangye Group
Chen Lin Member of CPC, Director No
Co., Ltd.
Sichuan Yibin Wuliangye Group Member of CPC, Vice
Zou Tao Yes
Co., Ltd. President
Sichuan Yibin Wuliangye Group Member of CPC, Director,
Jiang Wenge No
Co., Ltd. Deputy General Manager
Director of Professional
Yibin State-Owned Assets
Ren Shiming Committee Office, Yes
Operation Co., Ltd.
Employee Supervisor
Yibin State-Owned Assets Assistant of General
Qiu Ping Yes
Operation Co., Ltd. Manager
Service status in other units
√ Applicable □ Not applicable
Whether to
Date
receive
Date of ceasing
Name of staff Name of other unit Position in other unit remuneration or
appointment to hold
allowance in
office
other units
Business Inspector
Fu Nanping Guotai Junan Securities Co., Ltd. Yes
and Supervisor
Zhou Yousu Sichuan Academy of Social Sciences Researcher, professor Yes
Professor, doctoral
supervisor, and
Sichuan University post-doctoral
co-supervisor in
accounting
Gan Changhong Meiling Co., Ltd., Sichuan Yes
Shengdao Yahua Industrial Group Co., Ltd.,
Sinoseal Holding Co., Ltd., Chengdu Independent Director
XGimi Technology Co., Ltd., and RML
Technology Co., Ltd.
Sichuan Huashi Group Ltd. Outside Director
62
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Director, General
Chen Lin Yibin Wuliangye Liquor Sales Co., Ltd. No
Manager
Wuliang NongXiang Series Baijiu Yibin
Zou Tao President No
Co., Ltd.
Tang Bochao Oriental Outlook Media Co., Ltd. Vice President No
Sichuan Yibin Wuliangye Group Finance
Luo Wei President No
Co., Ltd.
Yibin Wuliangye Xianlin Ecological
President No
Liquor Co., Ltd.
Zhu Zhongyu
Executive Deputy
Yibin Wuliangye Liquor Sales Co., Ltd. No
General Manager
Punishment against current directors, supervisors and officers of the Company and those who
resigned during the reporting period by securities regulators in recent three years
□ Applicable √ Not applicable
IV. Remuneration of directors, supervisors and senior management
Decision-making procedures, determination basis and actual payment of remuneration of directors,
supervisors and senior management.
1. Decision-making procedures
The Company had formulated the remuneration distribution scheme for officers of the Company
according to relevant systems and provisions of superior departments and the Company, which would be
reported to the remuneration committee of the board of directors for approval, and then submitted to the
board of directors of the Company for approval before implementation.
2. Determination basis
The Company determined remuneration of the directors, supervisors and senior management
based on evaluation according to relevant systems and provisions.
3. Actual payment of remuneration
Part of the basic remuneration was paid monthly and part of the performance pay was paid within
the year.
Remuneration of directors, supervisors and senior management of the Company during the
reporting period
Unit: RMB ’0,000
Total Whether to get
remuneration remuneration
Status of
Name Position Gender Age from related
service received from parties of the
the Company Company
Zeng Congqin President Male 51 Incumbent No
Li Shuguang Director Male 57 Incumbent 73.29 No
Chen Lin Director Female 59 Incumbent 74 No
Zou Tao Director Male 41 Incumbent Yes
Jiang Wenge Director Male 53 Incumbent 44.05 No
Fu Nanping Independent Director Male 58 Incumbent 10 No
Zhou Yousu Independent Director Male 67 Incumbent 10 No
Gan Shengdao Independent Director Male 53 Incumbent 10 No
Yang Yunxia Employee Supervisor Female 48 Incumbent 66.22 No
Ren Shiming Supervisor Male 54 Incumbent Yes
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Qiu Ping Supervisor Male 55 Incumbent Yes
Wu Guoping Employee Supervisor Male 50 Incumbent 46.23 No
Zhu Zhongyu Deputy General Manager Male 56 Incumbent 66.56 No
Tang Bochao Deputy General Manager Male 55 Incumbent 67.01 No
Tang Shengyun Deputy General Manager Male 57 Incumbent 66.81 No
Deputy General Manager,
Luo Wei Male 55 Incumbent 66.26 No
Chief Financial Officer
Deputy General Manager,
Zhao Dong Male 55 Incumbent 68.56 No
Deputy Chief Engineer
Liu Zhongguo Former President Male 64 Resigned 75.13 No
Total 744.12
Remarks: 1. The above-mentioned persons (except for the independent directors) received part of
the annual performance pay of 2018; Allowances received by the independent directors were
tax-inclusive.
2. Due to the good performance in 2017-2018, the superiors paid one-off non-wage bonus to relevant
senior management of the Company.
Equity incentive granted to directors and officers of the Company during the reporting
period
□ Applicable √ Not applicable
V. Company employees
1. Number, professional composition and educational background of employees
Number of employees in the parent company (person) 17,896
Number of employees in main subsidiaries (person) 8,452
Total employees (person) 26,348
Total employees receiving salary in the current period
26,348
(person)
Number of retired employees whose expenses need to be
borne by the parent company and main subsidiaries 82
(person)
Professional composition
Category of professional composition Number of professionals (person)
Production personnel 19,185
Marketing personnel 1,150
Technician 4,943
Financial personnel 158
Administrative personnel 912
Total 26,348
Educational background
Category of education background Number (person)
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
College and above 4,738
Senior high school to college 14,746
Middle school and below 6,864
Total 26,348
2. Remuneration policy
The Company strictly abides by the provisions of relevant national laws and regulations and
complies with the scheme of operation benefit linked up with performance and relevant remuneration
management system of the Company.
3. Training plan
In 2020, training work of the Company will center on the strategic layout of "Reform, Innovation,
Transformation, and Development" and focus on construction of the talent team to strengthen the
foundation of innovation and development. The Company will carry out hierarchical and classified
trainings with rich contents and by flexible means based on the demand of the Company for reform and
development and the demands of employees for diversified trainings, enhancing the planning,
pertinency and effectiveness of educational training. The Company plans to carry out 12 “Wuliangye
Lectures”, 121 professional trainings at company level, 335 professional trainings at workshop and
department level, 97 external trainings, and 66 skill trainings to provide strong human resources
guarantee for the reform and innovation of the Company, so as to effectively match up with and promote
strategic improvement of the Company and achievement of the annual operation objectives.
4. Labor outsourcing
□ Applicable √ Not applicable
65
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section X Corporate Governance
I. Basic information of corporate governance
The Company, being dedicated to the construction and improvement of the corporate governance
structure, has established, and will continue to revise and improve relevant rules and regulations in strict
accordance with the Company Law, Securities Law, Governance Guidelines for Listed Companies, and
other laws and regulations. The Company has established relevant rules and regulations for the general
meeting, the board of directors and the board of supervisors to ensure that they will exercise the
discretion, decision-making right, and right of supervision. The board of directors of the Company has
set up five special committees: strategic committee, remuneration and appraisal committee, nomination
committee, audit committee, and comprehensive budget management committee, which effectively
promoted the standardized operation of the board of directors.
During the reporting period, the Company revised the Articles of Association, Procedure Rules of
the Board of Directors, Procedure Rules of Board of Supervisors and Procedure Rules of the General
Meeting, further improving the Company's management system.
Whether there is any significant difference between the actual situation of corporate governance
and the normative documents on governance of the listed company issued by China Securities
Regulatory Commission
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and the
normative documents on listed corporate governance issued by China Securities Regulatory
Commission.
II. Independence of the Company from its controlling shareholders in respect of
business, personnel, assets, organization and finance
The Company was 50-50 separated from the controlling shareholders in respect of business,
personnel, assets, organization and finance, and had independent and complete production and
operation system and independent operation capability.
In respect of business, the Company owned independent production and operation system,
auxiliary production system and corresponding supporting facilities, and had the ability to make
decisions about operating activities independently.
In respect of personnel, the Company carried out independent management on labor, personnel
and salary matters.
In respect of assets, the Company had ownership and right of control over its assets, and the
66
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
controlling shareholders did not occupy the assets or funds of the Company.
In respect of organization, the Company had independent main production and operation
management organization and system.
In respect of finance, the Company owned independent financial department, established
independent accounting system and financial management system, and opened independent bank
account.
III. Peer competition
□ Applicable √ Not applicable
IV. Note on the annual general meeting and extraordinary general meeting held
during the reporting period
1. General meeting during the reporting period
Investor
Convening
Meeting session Meeting type Participation Disclosure date Disclosure index
date
proportion
Annual General Meeting Annual general
71.25% May 10, 2019 May 11, 2019
2018 meeting
CNINFO
Extraordinary (http://www.cninfo.com.cn)
First Extraordinary General September 27, September 28,
general 64.94%
Meeting 2019 2019 2019
meeting
2. Extraordinary general meeting convened at the request of preferred shareholders with
voting rights restored
□ Applicable √ Not applicable
V. Performance of duties by independent directors during the reporting period
1. Attendance of board meeting and general meeting by independent directors
Attendance of board meeting and general meeting by independent directors
Number of Whether fails
board Number of Number of to personally
Number of Number of
Name of meetings to board board attend the
board meetings Number of board general
independent be attended meetings meetings board meeting
attended by meetings absent meetings
director during the attended on delegated for two
correspondence attended
reporting site to attend consecutive
period times
Fu Nanping 20 2 18 0 0 No 1
Zhou Yousu 20 2 18 0 0 No 2
Gan Shengdao 20 2 18 0 0 No 2
2. Objections made by independent directors on relevant matters of the Company
Whether the independent directors make objections on relevant matters of the Company
□ Yes √ No
The independent directors made no objections on relevant matters of the Company during the
reporting period.
3. Other note on the performance of duties by the independent directors
Whether relevant suggestions of the independent directors on the Company are adopted
√ Yes □ No
67
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Note on adoption or non-adoption of relevant suggestions of the independent directors on the
Company
During the reporting period, the independent directors of the Company performed their duties
independently in strict accordance with relevant laws, regulations and the Articles of Association, put
forwarded professional opinions or suggestions on operating decision of the Company, issued
independent opinions on matters of the Company which needed the opinions of independent directors
during the reporting period, and played its due role in safeguarding legal rights interests of the Company
and all shareholders.
VI. Performance of duties by special committees under the board of directors during
the reporting period
The board of directors of the Company has set up five special committees: strategic committee,
remuneration and appraisal committee, nomination committee, audit committee, and comprehensive
budget management committee.
(I) Performance of duties by the strategic committee
During the reporting period, the strategic committee of the Company convened three meetings
according to relevant requirements of the Implementation Rules for Strategic Committee of the Company,
studying the "13th Five-year" strategic development of the Company, implementation of the strategy for
the first half of the year and economic performance of the Company, and preliminary work of the "14th
Five-year" plan of the Company.
(II) Performance of duties by the audit committee
During the reporting period, the audit committee was diligent and responsible in performing the
responsibilities required by the system: 1. Review the Company's 1st quarter report of 2019,
semi-annual report of 2019, and the 3rd quarter report of 2019 and form resolutions; 2. Review the
Company's renewal of employment of the accounting firm in 2019 and the audit fee, and form resolutions;
3. Determine the timing of audit of the financial and accounting statements 2019 through consultation
with the accounting firm responsible for annual audit of the Company; 4. Communicate with the
accounting firm and independent directors before entry of the auditor of the Annual Report 2019; 5.
Review, for the first time, the summary financial and accounting statements of 2019 preliminarily
prepared by the Department of Finance of the Company before entry of the CPAs for the annual audit,
and provide written comments; 6. After entry of the CPA for annual audit, the audit committee and the
CPAs for annual audit communicated about problems found during the audit and the time for submitting
the audit report; 7. The audit committee further reviewed the Company's financial and accounting
statements 2019 and form resolutions after the CPAs for the annual audit issued the preliminary audit
68
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
opinions.
(III) Performance of duties by the nomination committee
The nomination committee convened two meetings during the reporting period according to relevant
provisions of the Implementation Rules for Nomination Committee of the Company. Mr. Zeng Congqin
was nominated as the candidate for director and president of the 5th board of directors of the Company
at the first meeting; the proposal of nominating Mr. Han Cheng as the candidate for director of the 5th
board of directors of the Company was approved at the second meeting.
(IV) Performance of duties by the remuneration and appraisal committee
The remuneration and appraisal committee, according to relevant provisions of the Implementation
Rules for Remuneration and Appraisal Committee of the Company, issued audit opinion on the
remuneration payment of officers of the Company in 2019 during the reporting period.
(V) Performance of duties by the comprehensive budget management committee.
The committee, according to relevant provisions of the Implementation Rules for Comprehensive
Budget Management Committee of the Company, Serious performance of dutiesreviewed and approved
the Annual Budget Scheme 2019 and the Comprehensive Budget Adjustment Scheme 2019 during the
reporting period.
VII. Work of the board of supervisors
Whether the board of supervisors find any risk of the Company in the supervision activities during
the reporting period
□ Yes √ No
The board of supervisors has no objection to the supervisory matters during the reporting period.
VIII. Appraisal and incentive of senior management
Refer to "Section IX, IV. Remuneration of directors, supervisors and officers" of the Report for
details.
IX. Internal control
1. Details of major internal control defects found during the reporting period
□ Yes √ No
2. Self-evaluation report on internal control
Disclosure date of internal control evaluation report (full text) April 28, 2020
Disclosure index of internal control evaluation report (full text) CNINFO (http://www.cninfo.com.cn)
Proportion of the total assets of the unit included in the
evaluation scope to the total assets of the consolidated financial 100%
statement of the Company
Proportion of operating revenue of the unit included in the
evaluation scope to the operating revenue of the consolidated 100%
financial statement of the Company
69
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Defect identification standard
Category Financial report Non-financial report
1. Major defects: (1) In violation of
national laws, regulations, or normative
documents. (2) Unscientific enterprise
1. Major defects: (1) Correction by the decision-making procedure, such as
Company of the financial statements which wrong decision, which causes failure of
have been published. (2) Materials major transactions. (3) Loss of
misstatements found by the external auditor management personnel or technician of
in current financial statements which have not important posts. (4) Lack of institutional
been identified. (3) Corrupt practice of control or systematic failure of the
directors, supervisors, and officers found by institution for important businesses, and
the external auditor. (4) Ineffective existence but ineffective operation of
supervision of internal control by the institutional guidance for internal control
Company’s internal audit department. (5) of important economic business. (5)
Major defects previously found but were not Failure to correct major defect within a
corrected within a reasonable period or were reasonable period.
Qualitative standard
ineffectively corrected. 2. Important defects: 2. Important defect: (1) Property loss not
(1) Failure to select and apply accounting reaching or exceeding the level of
policies in accordance with generally materiality but should be noticed by the
accepted accounting principles; (2) Failure to board of directors and the management
effectively control irregular (non-repeating) or in nature. (2) Individual events criticized
complicated transactions. (3) Failure to by government departments, causing
effectively control the anti-corrupt work. (4) moderate negative influence on
Ineffective internal control over the financial reputation of the Company. (3) Violation
report at the end of the period.3. Common of internal rules and regulations of the
defects: Defects other than major defects and enterprise and causing losses. (4) Defect
important defects are recognized as common in important business mechanism or
defects. system.
3. Common defects: Other defects in
internal control other than major defects
and important defects.
1. Major defects: Misstatement amount >3% 1. Major defects: Proportion of loss to net
of total operating revenue; misstatement profit ≥5%. 2. Important defects: 3%≤
Quantitative standard amount >10% of net profit; misstatement proportion of loss to net profit <5%. 3.
amount >3% of total assets. 2. Important Common defects: Proportion of loss to
defects: 1% of total operating revenue < net profit <3%.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
misstatement amount ≤ 3% of total operating
revenue; 5% of net profit < misstatement
amount ≤ 10% of net profit; 1% of total assets
< misstatement amount ≤ 3% of total assets.
3. Common defects: Misstatement amount
≤1% of total operating revenue; misstatement
amount ≤5% of net profit; misstatement
amount ≤1% of total assets.
Number of major defects in
0
financial reports (piece)
Number of major defects in
0
non-financial reports (piece)
Number of important defects in
0
financial reports (piece)
Number of important defects in
0
non-financial reports (piece)
X. Internal control audit report
√ Applicable □ Not applicable
Audit opinion paragraphs in the internal control audit report
Sichuan Huaxin (Group) CPA (LLP) believes that the Company maintained effective internal control over the financial
report on all significant aspects in accordance with the Basic Criteria of Enterprise Internal Control and relevant
provisions as of December 31, 2019.
Disclosure of internal control audit report Disclosed
Disclosure date of internal control audit report (full
April 28, 2020
text)
Disclosure index of internal control audit report (full
Refer to CNINFO (http://www.cninfo.com.cn) for details
text)
Type of opinions of internal control audit report Standard unqualified opinion
Whether non-financial report has major defects No
Whether the accounting firm issues an internal control audit report with non-standard opinion
□ Yes √ No
Whether the internal control audit report from the accounting firm is in consistent with the opinions of
the self-evaluation report from the board of directors
√ Yes □ No
71
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section XI Corporate Bonds
Whether the Company has bonds publicly issued and listed on the stock exchange that have not
matured or matured but not paid in full on the date of approval of the Annual Report
No
72
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section XII Financial Report
I. Audit Report
Type of audit opinion Standard unqualified opinion
Date of signing the Audit Report April 24, 2020
Name of Audit Firm Sichuan Huaxin (Group) CPA (LLP)
Audit Report No. CHXS (2020) No. 0031
Name of CPAs Li Min, Liu Jun
Audit Report (Text)
To all shareholders of Wuliangye Yibin Co., Ltd.:
I. Audit opinion
We have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to as
the Company), including the consolidated balance sheet and the balance sheet of parent company as of
December 31, 2019, consolidated income statement and income statement of parent company,
consolidated cash flow statement and cash flow statement of parent company, consolidated statement of
changes in owners' equity and statement of changes in owners' equity of parent company for the year
2019 and notes to these financial statements.
In our opinion, the attached financial statements of the Company have been prepared in
accordance with the provisions of the Accounting Standards for Business Enterprises and give a true
and fair view of the consolidated financial position and financial position of parent company of the
Company as of December 31, 2019 and of the consolidated financial performance and cash flows and
financial performance and cash flows of parent company for the year 2019 on all significant aspects.
II. Basis for opinion
We conducted our audit in accordance with the Auditing Standards for Chinese Certified Public
Accountants. The “Responsibility of CPAs for audit of the financial statements” in the Audit Report further
states our responsibility under these Standards. We are independent of the Company and fulfill other
responsibilities in terms of professional ethics according to the Code of Professional Ethics for Chinese
CPAs. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
III. Key audit matters
The key audit matters are those that we consider most important to audit the financial statements of
the current period in our professional judgment. The response to these matters is based on the audit of
the financial statements as a whole and the formation of audit opinion. We do not express our opinions
on these matters separately. We have identified the following matters as key audit matters during the
audit:
Key audit matters Addressed in the context of our audit
(I) Existence and integrity of cash and cash equivalents
Refer to notes to financial statements "V. With respect of cash and cash equivalents, we conducted the
73
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Notes to consolidated financial following audit procedures:
statements, 1. Cash and cash 1. Understand, test, and evaluate key internal controls related to the
equivalents". management of cash and cash equivalents;
As of December 31, 2019, the balance 2. Obtain list of bank accounts opened, and check the books of the
of cash and cash equivalents of the Company against the bank account information and integrity of the
Company was RMB 63,238,825,700 bank accounts;
taking up 59.44% of the total assets. 3. Obtain the bank statement and bank reconciliation for external
The safety of deposit, accuracy and confirmation of the bank accounts, and control the process of
integrity of balance have great impact on external confirmation;
the financial statements due to the large 4. Supervise the originals of certificate of fixed deposit, and pay
amount of balance of cash and cash attention to the holders of certificate of fixed deposit and other
equivalents and large number of bank information.
accounts, therefore we consider the 5. Obtain credit report of the enterprise and check whether the cash
existence and integrity of cash and cash and cash equivalents are under mortgage, charge or frozen;
equivalents as a key audit matter. 6. At the end of the period, the amount deposited with Sichuan Yibin
Wuliangye Group Finance Co., Ltd. was RMB 32,405,107,434.58 in
total. Check the deposit and loan businesses of Sichuan Yibin
Wuliangye Group Finance Co., Ltd.
We believe that the above audit procedures can support the
management of the Company in determining the existence and
integrity of cash and cash equivalents.
(II) Integrity of disclosure of association relationships and related transactions
Refer to notes to financial statement With respect of association relationships and related transactions,
"VIII. Related parties and related we conducted the following audit procedures:
transactions". 1. Understand the procedures of the Company for related party
As of December 31, 2019, the Company identification, evaluate and test the internal control of the Company
had different categories of related for identifying and disclosing association relationships and related
transactions with related parties in large transactions;
amount. There is a risk of failing to fully 2. Obtain the list of association relationships provided by the
disclosure the association relationships management, and check against the information obtained from other
and related transactions in the notes to public channels; review the major sales, purchase, and other
financial statements due to large transactions to identify any association relationship not being
number of related parties and involving disclosed;
in various types of related transactions, 3. Obtain the amount of related transactions and details of the
therefore we consider integrity of balance provided by the management and check against the
disclosure of association relationships financial records;
and related transactions as a key audit 4. Sample the amount and balance of related transactions for
matter. external confirmation;
5. Obtain the resolutions of the board of directors and those of the
general meeting concerning the related transactions, and check
against the list of association relationships, amount and balance of
related transactions provided by the management;
6. Obtain statement of the management about integrity of the
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
association relationships and related transactions;
7. Check whether the association relationship and related
transactions have been fully disclosed according to the Accounting
Standards for Business Enterprises.
We believe that the above audit procedures can support the
management of the Company in determining the existence and
integrity of association relationship and related transactions.
IV. Other information
The management of the Company is responsible for other information. Such information includes
the information covered in the Annual Report 2019, but excluding the financial statements and our audit
report.
Our audit opinion on the financial statements does not cover other information and we do not
express any form of verification conclusions on other information.
Combined with our audit of the financial statements, it’s our responsibility to read other information.
In this process, we shall consider whether there is material inconsistency of other information with the
financial statements or the situation understood by us in the audit process or material misstatement.
Based on the work that has been conducted by us, if we determine that other information contains
material misstatements, we should report the fact. We have nothing to report in this regard.
V. Responsibility of management and governance for the financial statements
The management of the Company is responsible for preparing the financial statements in
accordance with the provisions of the Accounting Standards for Business Enterprises and giving a true
and fair view; designing, implementing and maintaining necessary internal control, so that the financial
statements are free from material misstatement due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the
going-concern ability of the Company, disclosing the matters related to the going-concern (if applicable)
and using the going-concern assumption, unless the management plans to liquidate the Company or
stop operation or has no other realistic choices.
The governance is responsible for supervising the financial reporting process of the Company.
VI. Responsibility of CPAs for audit of the financial statements
Our goal is to obtain reasonable assurance as to whether there is no material misstatement caused
by fraud or error in the financial statements as a whole, and to issue an audit report containing audit
opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
75
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4)Draw a conclusion about the appropriateness of the going-concern assumption used by the
management. Meanwhile, draw a conclusion about the major uncertainty of the matters or
circumstances possibly resulting in major concerns about the going-concern ability of the Company
according to the audit evidence obtained. If we conclude that a material uncertainty exists, the auditing
standards require us to draw attention to users of the financial statements in the Audit Report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of the Audit Report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with governance layer regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant defects in internal control that
we identify during our audit.
We also provide the governance layer with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA Chinese Certified Public Accountant: Li Min
(LLP) (Project Partner)
Chengdu, China Chinese Certified Public Accountant: Liu Jun
April 24, 2020
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
II. Financial Statements
Unit of notes to financial statements: RMB
1. Consolidated Balance Sheet
Prepared by: Wuliangye Yibin Co., Ltd. December 31, 2019 Unit: RMB
Item December 31, 2019 December 31, 2018
Current assets:
Cash and cash equivalents 63,238,825,723.79 48,960,048,897.95
Settlement reserves
Capital lent
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable 14,643,149,595.72 16,134,641,950.86
Accounts receivable 134,449,693.03 127,331,336.97
Accounts receivable financing 3,450,166,659.06
Prepayments 231,909,140.09 220,916,820.64
Premium receivable
Reinsurance receivables
Contract reserve of reinsurance
Other receivables 1,248,644,572.40 871,770,375.85
Including: Interest receivable 1,215,275,214.91 840,888,887.75
Dividends receivable
Purchase restituted finance asset
Inventory 13,679,619,615.41 11,795,461,088.43
Contract asset
Assets held for sale
Non-current assets due within one
year
Other current assets
Total current assets 96,626,764,999.50 78,110,170,470.70
Non-current assets:
Loans and advances
Debt investment
Available-for-sale financial assets 1,200,000.00
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 1,021,778,731.59 919,477,978.54
Other equity instrument investment
Other non-current financial assets 1,200,000.00
Investment properties
Fixed assets 6,108,745,912.72 5,262,163,428.02
Construction in progress 812,428,248.30 351,993,452.86
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 410,155,227.81 412,650,156.71
Development expenditures
Goodwill 1,621,619.53 1,621,619.53
Long-term deferred expenses 91,601,331.96 111,897,668.36
Deferred income tax assets 1,157,391,979.00 871,859,716.03
Other non-current assets 165,284,283.25 51,231,242.34
Total non-current assets 9,770,207,334.16 7,984,095,262.39
Total assets 106,396,972,333.66 86,094,265,733.09
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 419,485,425.61 413,918,369.11
Accounts payable 3,257,672,975.56 3,152,374,810.72
Accounts received in advance 12,530,706,854.77 6,706,735,898.48
Contract liability
Selling financial asset of repurchase
Absorbing deposit and interbank
deposit
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Security trading of agency
Security sales of agency
Payroll payable 3,594,886,729.81 2,769,295,510.19
Tax payable 7,939,166,588.84 5,080,135,497.74
Other payables 2,292,680,733.51 2,585,355,687.52
Including: Interest payable
Dividend payable
Commission charge and commission
payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 30,034,599,308.10 20,707,815,773.76
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 266,325,368.40 267,010,618.22
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 266,325,368.40 267,010,618.22
Total liabilities 30,300,924,676.50 20,974,826,391.98
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
79
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve 16,092,197,023.01 13,120,411,030.42
Provision for general risk
Undistributed profit 51,634,248,548.06 43,802,603,958.99
Total owner's equity attributable to
74,290,700,662.22 63,487,270,080.56
parent company
Minority equity 1,805,346,994.94 1,632,169,260.55
Total owners' equity 76,096,047,657.16 65,119,439,341.11
Total liabilities and owners' equity 106,396,972,333.66 86,094,265,733.09
Legal representative: Zeng Congqin Responsible person for accounting: Luo Wei Responsible person of
accounting firm: Luo Jun
2. Balance Sheet of Parent Company
Unit: RMB
Item December 31, 2019 December 31, 2018
Current assets:
Cash and cash equivalents 28,257,367,404.51 20,666,489,987.76
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 80,520,520.72 73,237,561.54
Other receivables 10,126,706,853.03 12,135,135,681.28
Including: Interest receivable 570,078,014.35 383,190,672.91
Dividends receivable 654,791,389.27 342,607,430.63
Inventory
Contract asset
Assets held for sale
Non-current assets due within one
year
80
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Other current assets
Total current assets 38,464,594,778.26 32,874,863,230.58
Non-current assets:
Debt investment
Available-for-sale financial assets 1,200,000.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 10,609,783,624.61 10,517,324,976.74
Other equity instrument investment
Other non-current financial assets 1,200,000.00
Investment properties
Fixed assets 100,266,366.93 107,626,051.93
Construction in progress 100,358,221.33 99,478,221.33
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 39,222,336.12 40,573,281.24
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 2,202,432.10 100,889.03
Other non-current assets
Total non-current assets 10,853,032,981.09 10,766,303,420.27
Total assets 49,317,627,759.35 43,641,166,650.85
Current liabilities:
Short-term loans
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 418,136.00 175,000.00
Accounts received in advance
81
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Contract liability
Payroll payable 8,811,734.27 1,267,974.86
Tax payable 30,732,337.42 36,702,690.98
Other payables 285,450,874.79 332,300,571.41
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 325,413,082.48 370,446,237.25
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 1,000,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,000,000.00
Total liabilities 326,413,082.48 370,446,237.25
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
82
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Surplus reserve 7,884,654,620.01 6,652,731,832.83
Undistributed profit 34,542,304,965.71 30,053,733,489.62
Total owners' equity 48,991,214,676.87 43,270,720,413.60
Total liabilities and owners' equity 49,317,627,759.35 43,641,166,650.85
3. Consolidated Income Statement
Unit: RMB
Item Year 2019 Year 2018
I. Total operating revenue 50,118,105,877.14 40,030,189,599.87
Including: Operating revenue 50,118,105,877.14 40,030,189,599.87
Interest revenue
Premium earned
Commission charge and commission
revenue
II. Total operating cost 26,123,144,090.12 21,513,284,355.90
Including: Cost of sales 12,802,259,947.34 10,486,782,934.27
Interest expenditure
Commission charge and commission
expense
Surrender value
Net amount of expense of
compensation
Net provision for insurance contracts
Bonus insurance expense
Reinsurance expense
Tax and surcharges 6,984,343,102.55 5,908,497,298.57
Selling expenses 4,985,579,336.77 3,778,433,675.01
Administrative expenses 2,655,347,148.09 2,340,498,705.44
Research and development expense 126,360,421.11 84,082,506.26
Financial expenses -1,430,745,865.74 -1,085,010,763.65
Including: Interest expense
Interest revenue 1,416,398,912.72 1,081,572,031.13
Plus: Other incomes 159,712,241.81 106,229,000.81
Investment income (loss indicated with
92,500,753.05 100,864,555.27
“-”)
83
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Including: Investment income from
92,500,753.05 100,864,555.05
associates and joint-ventures
Income on de-recognition of financial
assets measured at amortized cost
Exchange income (loss indicated with
“-”)
Net exposure hedging income (loss
indicated with “-”)
Income from changes of fair value (loss
indicated with “-”)
Credit impairment loss (loss indicated
-1,133,580.27
with “-”)
Asset impairment loss (loss indicated
-3,020,763.91 -10,879,427.89
with “-”)
Gain from disposal of assets (loss
2,779,400.03 5,273,892.02
indicated with “-”)
III. Operating profit (loss indicated with
24,245,799,837.73 18,718,393,264.18
“-”)
Plus: Non-operating revenue 29,890,272.65 43,803,121.66
Less: Non-operating expenditure 169,678,066.85 155,373,729.64
IV. Total profit (total loss indicated with
24,106,012,043.53 18,606,822,656.20
“-”)
Less: Income tax expenses 5,877,756,764.92 4,568,172,529.72
V. Net profit (net loss indicated with “-”) 18,228,255,278.61 14,038,650,126.48
(I) Classification by business continuity
1. Net profit from continuing operations
18,228,255,278.61 14,038,650,126.48
(net loss indicated with “-”)
2. Net profit from discontinued
operations (net loss indicated with “-”)
(II) Classification by ownership
1. Net profit attributable to owner of
17,402,164,190.16 13,384,246,683.60
parent company
2. Minority interest income 826,091,088.45 654,403,442.88
VI. Net amount of other comprehensive
income after tax
Net amount of other comprehensive
income after tax attributable to owner of
parent company
84
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(I) Other comprehensive income that
cannot reclassified into the profit and
loss
1. Changes arising from the
remeasurement of defined benefit plan
2. Other comprehensive income that
cannot be reclassified into profit or loss
under the equity method
3. Changes in fair value of other equity
instrument investment
4. Changes in fair value of corporate
credit risk
5. Others
(II) Other comprehensive income that
will be reclassified into the profit and
loss
1. Other comprehensive income that
can be reclassified into profit or loss
under the equity method
2. Changes in fair value of other debt
investments
3. Changes in fair value through profit
and loss of available-for-sale financial
assets
4. Amount of financial assets
reclassified into other comprehensive
income
5. Held-to-maturity investment
reclassified into available-for-sale
financial assets
6. Credit impairment provision for other
debt investments
7. Cash flow reserve
8. Balance arising from the translation of
foreign currency financial statements
9. Others
Net amount of other comprehensive
income after tax attributable to minority
shareholders
85
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
VII. Total comprehensive income 18,228,255,278.61 14,038,650,126.48
Total comprehensive income
17,402,164,190.16 13,384,246,683.60
attributable to owner of parent company
Total comprehensive income
826,091,088.45 654,403,442.88
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 4.483 3.474
(II) Diluted earnings per share 4.483 3.474
Net profit realized by the combined party before the consolidation in case of business combination under the same control
during the reporting period: RMB 0.00, and the net profit realized by the combined party in previous period: RMB 0.00.
Legal representative: Zeng Congqin Responsible person for accounting: Luo Wei Responsible person
of accounting firm: Luo Jun
4. Income Statement of Parent Company
Unit: RMB
Item Year 2019 Year 2018
I. Operating revenue 557,807.81 1,197,774.65
Less: Cost of sales 0.00 0.00
Tax and surcharges 530,756.77 76,818.28
Selling expenses
Administrative expenses 112,675,199.88 93,588,881.24
Research and development
42,509,849.28 20,665,781.90
expense
Financial expenses -747,727,624.11 -554,311,669.26
Including: Interest expense
Interest revenue 747,767,664.67 554,545,450.89
Plus: Other incomes 2,672,800.00 12,442,869.40
Investment income (loss indicated
11,979,399,612.91 8,596,460,952.96
with “-”)
Including: Investment income from
92,458,647.87 100,740,183.08
associates and joint-ventures
Income on de-recognition of
financial assets measured at
amortized cost (loss indicated with
“-”)
Net exposure hedging income (loss
indicated with “-”)
86
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Income from changes of fair value
(loss indicated with “-”)
Credit impairment loss (loss
-506,172.26
indicated with “-”)
Asset impairment loss (loss
-143,797.84
indicated with “-”)
Gain from disposal of assets (loss
indicated with “-”)
II. Operating profit (loss indicated
12,574,135,866.64 9,049,937,987.01
with “-”)
Plus: Non-operating revenue 670,614.65 604,043.30
Less: Non-operating expenditure 147,551,770.23 125,999,155.37
III. Total profit (total loss indicated
12,427,254,711.06 8,924,542,874.94
with “-”)
Less: Income tax expenses 108,026,839.29 83,515,112.50
IV. Net profit (net loss indicated with
12,319,227,871.77 8,841,027,762.44
“-”)
(I) Net profit from continuing
operations (net loss indicated with 12,319,227,871.77 8,841,027,762.44
“-”)
(II) Net profit from discontinued
operations (net loss indicated with
“-”)
V. Net amount of other
comprehensive income after tax
(I) Other comprehensive income that
cannot reclassified into the profit and
loss
1. Changes arising from the
remeasurement of defined benefit
plan
2. Other comprehensive income that
cannot be reclassified into profit or
loss under the equity method
3. Changes in fair value of other
equity instrument investment
4. Changes in fair value of corporate
credit risk
5. Others
87
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(II) Other comprehensive income
that will be reclassified into the profit
and loss
1. Other comprehensive income that
can be reclassified into profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Changes in fair value through
profit and loss of available-for-sale
financial assets
4. Amount of financial assets
reclassified into other
comprehensive income
5. Held-to-maturity investment
reclassified into available-for-sale
financial assets
6. Credit impairment provision for
other debt investments
7. Cash flow reserve
8. Balance arising from the
translation of foreign currency
financial statements
9. Others
VI. Total comprehensive income 12,319,227,871.77 8,841,027,762.44
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Year 2019 Year 2018
I. Cash flows from operating
activities:
Cash received from the sales of
63,111,448,367.92 46,031,388,431.46
goods and the rendering of services
Net increase in customer deposit
and interbank deposit
88
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Net increase in loan from central
bank
Net increase in capital borrowed
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Insured savings and net increase of
investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received from securities
trading brokerage
Receipts of tax refunds 29,278,082.30 17,688,897.86
Other cash received relating to
1,463,776,630.55 1,237,237,895.28
operating activities
Sub-total of cash inflows from
64,604,503,080.77 47,286,315,224.60
operating activities
Cash payments for goods
16,858,330,333.04 13,866,014,356.07
purchased and services received
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase in capital lent
Cash paid for interest, commission
charge and commission
Cash paid for policy dividend
Cash paid to employee and for
5,633,645,226.36 4,824,010,398.00
employee
Payments of all types of taxes 15,634,936,299.82 13,308,818,523.69
Other cash paid relating to operating
3,365,519,180.89 2,970,112,911.94
activities
89
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sub-total of cash outflows from
41,492,431,040.11 34,968,956,189.70
operating activities
Net cash flows from operating
23,112,072,040.66 12,317,359,034.90
activities
II. Cash flows from investing
activities:
Cash received from disposals and
8,000,000.00
withdraw on investment
Cash received from investment
36,240,580.82
income
Net cash received from disposals of
fixed assets, intangible assets and 92,050,811.98 5,584,385.41
other long-term assets
Net cash received from disposal of
subsidiaries and other business
units
Other cash received relating to
investing activities
Sub-total of cash inflows from
92,050,811.98 49,824,966.23
investing activities
Cash payments to acquire and
construct fixed assets, intangible 1,698,655,125.66 381,381,461.74
assets and other long-term assets
Cash payments to acquire
9,800,000.00
investments
Net increase of mortgaged loans
Net cash payments for acquisitions
of subsidiaries and other business
units
Other cash payments relating to
investing activities
Sub-total of cash outflows from
1,708,455,125.66 381,381,461.74
investing activities
Net cash flows from investing
-1,616,404,313.68 -331,556,495.51
activities
III. Cash flows from financing
activities:
Cash received from investors in
1,813,717,926.36
making investment in the enterprise
90
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Including: Cash received from
subsidiaries’ absorption of minority 980,000.00
shareholders’ investment
Cash received from borrowings
Other cash received relating to
financing activities
Sub-total of cash inflows from
1,813,717,926.36
financing activities
Cash repayments of amounts
borrowed
Cash paid for distribution of
dividends or profits, or cash 7,251,646,962.56 5,409,549,048.53
payments for interests
Including: Dividends and profits paid
by subsidiaries to minority 652,913,354.06 363,458,642.03
shareholders
Other cash payments relating to
22,092,404.60
financing activities
Sub-total of cash outflows from
7,251,646,962.56 5,431,641,453.13
financing activities
Net cash flows from financing
-7,251,646,962.56 -3,617,923,526.77
activities
IV. Effect of foreign exchange rate
changes on cash and cash 63,661.42 366,479.55
equivalents
V. Net increase in cash and cash
14,244,084,425.84 8,368,245,492.17
equivalents
Plus: Beginning balance of cash and
48,960,048,897.95 40,591,803,405.78
cash equivalents
VI. Ending balance of cash and cash
63,204,133,323.79 48,960,048,897.95
equivalents
6. Cash Flow Statement of Parent Company
Unit: RMB
Item Year 2019 Year 2018
I. Cash flows from operating
activities:
Cash received from the sales of
592,800.00 1,338,997.84
goods and the rendering of services
91
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Receipts of tax refunds
Other cash received relating to
3,324,064,952.46 587,350,043.73
operating activities
Sub-total of cash inflows from
3,324,657,752.46 588,689,041.57
operating activities
Cash payments for goods
purchased and services received
Cash paid to employee and for
83,616,698.28 65,057,183.60
employee
Payments of all types of taxes 113,260,133.25 62,360,501.58
Other cash paid relating to operating
342,415,572.20 483,672,991.03
activities
Sub-total of cash outflows from
539,292,403.73 611,090,676.21
operating activities
Net cash flows from operating
2,785,365,348.73 -22,401,634.64
activities
II. Cash flows from investing
activities:
Cash received from disposals and
withdraw on investment
Cash received from investment
11,574,757,006.40 8,633,589,787.69
income
Net cash received from disposals of
fixed assets, intangible assets and 5,513.55 2,589.45
other long-term assets
Net cash received from disposal of
subsidiaries and other business
units
Other cash received relating to
investing activities
Sub-total of cash inflows from
11,574,762,519.95 8,633,592,377.14
investing activities
Cash payments to acquire and
construct fixed assets, intangible 1,043,835.63 5,091,254.39
assets and other long-term assets
Cash payments to acquire
169,473,007.80 545,826,992.20
investments
92
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Net cash payments for acquisitions
of subsidiaries and other business
units
Other cash payments relating to
investing activities
Sub-total of cash outflows from
170,516,843.43 550,918,246.59
investing activities
Net cash flows from investing
11,404,245,676.52 8,082,674,130.55
activities
III. Cash flows from financing
activities:
Cash received from investors in
1,812,737,926.36
making investment in the enterprise
Cash received from borrowings
Other cash received relating to
financing activities
Sub-total of cash inflows from
1,812,737,926.36
financing activities
Cash repayments of amounts
borrowed
Cash paid for distribution of
dividends or profits, or cash 6,598,733,608.50 5,046,090,406.50
payments for interests
Other cash payments relating to
22,092,404.60
financing activities
Sub-total of cash outflows from
6,598,733,608.50 5,068,182,811.10
financing activities
Net cash flows from financing
-6,598,733,608.50 -3,255,444,884.74
activities
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents
V. Net increase in cash and cash
7,590,877,416.75 4,804,827,611.17
equivalents
Plus: Beginning balance of cash and
20,666,489,987.76 15,861,662,376.59
cash equivalents
VI. Ending balance of cash and cash
28,257,367,404.51 20,666,489,987.76
equivalents
93
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
7. Consolidated Statement of Changes in Owners' Equity
Amount of current period
Unit: RMB
Year 2019
Owner’s equity attributable to parent company
Item Other equity instruments Less: Other
Special Provision for Minority equity Total owners' equity
Capital stock Preferred Perpetual Capital reserve Treasury comprehen Surplus reserve Undistributed profit Others Sub-total
Others reserves general risk
share bond stock sive income
I. Ending balance of previous
3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
period
Plus: Changes in accounting
policy
Correction of prior errors
Business combination
involving enterprises under
the same control
Others
III. Beginning balance of
3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
current year
III. Increase/decrease in the
current period (decrease 2,971,785,992.59 7,831,644,589.07 10,803,430,581.66 173,177,734.39 10,976,608,316.05
indicated with “-”)
(I) Total comprehensive
17,402,164,190.16 17,402,164,190.16 826,091,088.45 18,228,255,278.61
income
(II) Capital paid in and
reduced by owners
1. Common stocks invested
by owners
2. Capital invested by other
equity instrument holders
3. Amount of share-based
payments recognized in
owners’equity
4. Others
(III) Profit distribution 2,971,785,992.59 -9,570,519,601.09 -6,598,733,608.50 -652,913,354.06 -7,251,646,962.56
1. Withdrawal of surplus
2,971,785,992.59 -2,971,785,992.59
reserve
2. Withdrawal of provision for
general risk
3. Distribution to owners (or
-6,598,733,608.50 -6,598,733,608.50 -652,913,354.06 -7,251,646,962.56
shareholders)
4. Others
(IV) Internal transfer of
owners' equity
1. Capital reserve transfer to
paid-in capital (or capital
stock)
2. Surplus reserve transfer to
paid-in capital (or capital
stock)
3. Recovery of losses by
surplus reserve
4. Carry forward retained
earnings in variation of
defined benefit plan
5. Carry forward retained
earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawal of current
period
2. Use of current period
(I) Others
IV. Ending balance of current
3,881,608,005.00 2,682,647,086.15 16,092,197,023.01 51,634,248,548.06 74,290,700,662.22 1,805,346,994.94 76,096,047,657.16
period
94
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Amount of previous period
Unit: RMB
Year 2018
Owner’s equity attributable to parent company
Item Other equity instruments Other
Less:
comprehe Special Provision for Minority equity Total owners' equity
Capital stock Preferred Perpetual Capital reserve Treasury Surplus reserve Undistributed profit Others Sub-total
Others nsive reserves general risk
share bond stock
income
I. Ending balance of previous
3,795,966,720.00 953,255,757.17 10,909,576,690.57 37,675,282,021.74 53,334,081,189.48 1,340,244,459.70 54,674,325,649.18
period
Plus: Changes in accounting
policy
Correction of prior errors
Business combination involving
enterprises under the same
control
Others
III. Beginning balance of current
3,795,966,720.00 953,255,757.17 10,909,576,690.57 37,675,282,021.74 53,334,081,189.48 1,340,244,459.70 54,674,325,649.18
year
III. Increase/decrease in the
current period (decrease 85,641,285.00 1,729,391,328.98 2,210,834,339.85 6,127,321,937.25 10,153,188,891.08 291,924,800.85 10,445,113,691.93
indicated with “-”)
(I) Total comprehensive income 13,384,246,683.60 13,384,246,683.60 654,403,442.88 14,038,650,126.48
(II) Capital paid in and reduced
85,641,285.00 1,729,391,328.98 1,815,032,613.98 980,000.00 1,816,012,613.98
by owners
1. Common stocks invested by
85,641,285.00 1,729,391,328.98 1,815,032,613.98 980,000.00 1,816,012,613.98
owners
2. Capital invested by other
equity instrument holders
3. Amount of share-based
payments recognized in owners'
equity
4. Others
(III) Profit distribution 2,210,834,339.85 -7,256,924,746.35 -5,046,090,406.50 -363,458,642.03 -5,409,549,048.53
1. Withdrawal of surplus reserve 2,210,834,339.85 -2,210,834,339.85
2. Withdrawal of provision for
general risk
3. Distribution to owners (or
-5,046,090,406.50 -5,046,090,406.50 -363,458,642.03 -5,409,549,048.53
shareholders)
4. Others
(IV) Internal transfer of owners'
equity
1. Capital reserve transfer to
paid-in capital (or capital stock)
2. Surplus reserve transfer to
paid-in capital (or capital stock)
3. Recovery of losses by surplus
reserve
4. Carry forward retained
earnings in variation of defined
benefit plan
5. Carry forward retained
earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawal of current period
2. Use of current period
(I) Others
IV. Ending balance of current
3,881,608,005.00 2,682,647,086.15 13,120,411,030.42 43,802,603,958.99 63,487,270,080.56 1,632,169,260.55 65,119,439,341.11
period
95
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
8. Statement of Changes in Owners' equity of Parent Company
Amount of current period
Unit: RMB
Year 2019
Other equity instruments Less: Other
Item Special
Capital stock Perpetual Capital reserve Treasury comprehensive Surplus reserve Undistributed profit Others Total owners' equity
Preferred share Others reserves
bond stock income
I. Ending balance of previous period 3,881,608,005.00 2,682,647,086.15 6,652,731,832.83 30,053,733,489.62 43,270,720,413.60
Plus: Changes in accounting policy
Correction of prior errors
Others
III. Beginning balance of current year 3,881,608,005.00 2,682,647,086.15 6,652,731,832.83 30,053,733,489.62 43,270,720,413.60
III. Increase/decrease in the current period
1,231,922,787.18 4,488,571,476.09 5,720,494,263.27
(decrease indicated with “-”)
(I) Total comprehensive income 12,319,227,871.77 12,319,227,871.77
(II) Capital paid in and reduced by owners
1. Common stocks invested by owners
2. Capital invested by other equity
instrument holders
3. Amount of share-based payments
recognized in owners’equity
4. Others
(III) Profit distribution 1,231,922,787.18 -7,830,656,395.68 -6,598,733,608.50
1. Withdrawal of surplus reserve 1,231,922,787.18 -1,231,922,787.18
2. Distribution to owners (or shareholders) -6,598,733,608.50 -6,598,733,608.50
3. Others
(IV) Internal transfer of owners' equity
1. Capital reserve transfer to paid-in capital
(or capital stock)
2. Surplus reserve transfer to paid-in capital
(or capital stock)
3. Recovery of losses by surplus reserve
4. Carry forward retained earnings in
variation of defined benefit plan
5. Carry forward retained earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawal of current period
2. Use of current period
(I) Others
IV. Ending balance of current period 3,881,608,005.00 2,682,647,086.15 7,884,654,620.01 34,542,304,965.71 48,991,214,676.87
96
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Amount of previous period
Unit: RMB
Year 2018
Other equity instruments Less: Other
Item Special
Capital stock Preferred Capital reserve Treasury comprehensive Surplus reserve Undistributed profit Others Total owners' equity
Perpetual bond Others reserves
share stock income
I. Ending balance of previous period 3,795,966,720.00 953,255,757.17 5,768,629,056.59 27,142,898,909.92 37,660,750,443.68
Plus: Changes in accounting policy
Correction of prior errors
Others
III. Beginning balance of current year 3,795,966,720.00 953,255,757.17 5,768,629,056.59 27,142,898,909.92 37,660,750,443.68
III. Increase/decrease in the current period
85,641,285.00 1,729,391,328.98 884,102,776.24 2,910,834,579.70 5,609,969,969.92
(decrease indicated with “-”)
(I) Total comprehensive income 8,841,027,762.44 8,841,027,762.44
(II) Capital paid in and reduced by owners 85,641,285.00 1,729,391,328.98 1,815,032,613.98
1. Common stocks invested by owners 85,641,285.00 1,729,391,328.98 1,815,032,613.98
2. Capital invested by other equity
instrument holders
3. Amount of share-based payments
recognized in owners' equity
4. Others
(III) Profit distribution 884,102,776.24 -5,930,193,182.74 -5,046,090,406.50
1. Withdrawal of surplus reserve 884,102,776.24 -884,102,776.24
2. Distribution to owners (or shareholders) -5,046,090,406.50 -5,046,090,406.50
3. Others
(IV) Internal transfer of owners' equity
1. Capital reserve transfer to paid-in capital
(or capital stock)
2. Surplus reserve transfer to paid-in capital
(or capital stock)
3. Recovery of losses by surplus reserve
4. Carry forward retained earnings in
variation of defined benefit plan
5. Carry forward retained earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawal of current period
2. Use of current period
(I) Others
IV. Ending balance of current period 3,881,608,005.00 2,682,647,086.15 6,652,731,832.83 30,053,733,489.62 43,270,720,413.60
97
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
III. Company Profile
1. Company history
The Company is a company limited by shares established by Sichuan Yibin Wuliangye Liquor
Factory through fund raising on August 19, 1997 with the approval of Document CFH (1997) No.295
issued by Sichuan Provincial People's Government. The Company is mainly engaged in the production
and sales of "Wuliangye" and its series liquors, with a registered capital of RMB 3,795.96672 million and
registered address at No.150, West Minjiang Road, Yibin, Sichuan.
The Company issued 80 million common shares (in RMB) on-line by fixed price offering at
Shenzhen Stock Exchange on April 27, 1998. According to the resolution of the extraordinary general
meeting in September 1999, the Company, based on the total capital stock of 320 million shares on June
30, 1999, transferred capital reserve to increase capital stock, increasing 5 shares for every 10 shares
and the total capital stock after the conversion was changed to 480 million shares. The Company placed
31.2 million common shares (in RMB) to the original shareholders as approved by the Document ZJGS
(2001) No.6 issued by the China Securities Regulatory Commission. The total capital stock after the
placement was 511.2 million shares. In August 2001, the Company implemented the interim distribution
plan 2001 and issued 4 bonus shares and increased 3 shares for every 10 shares by transferring capital
reserve to capital stock, with 357.84 million bonus shares and shares transferred from capital reserve in
total. The total capital stock after the issuance and translation was 869.04 million shares. In April 2002,
the Company implemented the distribution plan 2001 and issued 1 bonus shares, increased 2 shares by
transferring capital reserve to capital stock, and distributed RMB 0.25 (tax inclusive) in cash for every 10
shares, with 260.712 million bonus shares in total. The total capital stock after the issuance and
translation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan
2002 and increased 2 shares for every 10 shares by transferring capital reserve to capital stock for all
shareholders, increasing the capital stock by 225.9504 million shares. The total capital stock after the
translation was 1,355.7024 million shares. In April 2004, the Company implemented the distribution plan
2003 and issued 8 bonus shares and increased 2 shares by transferring capital reserve to capital stock
for every 10 shares, with 1,355.7024 million bonus shares in total. The total capital stock after the
issuance and translation was 2,711.4048 million shares.
On March 31, 2006, the Company carried out the shareholder structure reform and the shareholder
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 stock, 493.4 thousand shares for officers, taking up 0.02% of the total share
stock, and 893.1245 million shares for other shareholders, taking up 32.94% of the total share stock.
The total capital stock remained 2,711.4048 million shares.
In April 2007, the Company implemented the distribution plan 2006 and issued 4 bonus shares and
distributed RMB 0.60 (tax inclusive) in cash for every 10 shares, with 1,084.5619 million bonus shares in
total. The total capital stock after the issuance and distribution was 3,795.96672 million shares. On April
2, 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 capital stock. Other
shareholders held 1,667.5954 million shares, taking up 43.93% of the total capital stock.
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 (CGZCQ (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 (GZCQ (2012) No.889), Yibin State-Owned Assets
98
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Operation Co., Ltd. transferred 761,823,343 shares held by it in the Company to Wuliangye Group for
free on October 10, 2012. After this free transfer of shares, Yibin State-Owned Assets Operation 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; Wuliangye Group, holding 20.07% shares of the Company (i.e. 761,823,343 shares),
was the second majority shareholder of the Company.
According to the Reply on Free Transfer of Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.
(YGZW (2016) No.32), the State-owned Assets Supervision and Administration Commission of Yibin
Municipal Government transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to
Yibin State-Owned Assets Operation Co., Ltd. for free in 2016. This transfer of shares did not involve in
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 2015, the 19th meeting of the 5th board of directors, the 24th meeting of the 5th board of
directors, and annual general meeting 2016 of the Company and as approved by the License ZJXK
(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. The total capital stock 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 capital stock, and 1,753.2366 million shares for other shareholders, taking
up 45.17% of the total capital stock.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage manufacturing industry and its business scope is:
Production and operation of liquor products and relevant auxiliary products (bottle caps, trademarks,
logos and packaging products). Its main products are "Wuliangye" and its series liquors.
3. Approval of financial statements
These financial statements have been reviewed and approved by the board of directors of the
Company on April 24, 2020, and will be submitted to the general meeting for review according to the
Articles of Association.
4. Scope of consolidated financial statements of current year
As of December 31, 2019, subsidiaries included in the scope of consolidated financial statements of
the Company were:
Full name of subsidiary Type of subsidiary Tier Shareholding Proportion of
proportion votes
Sichuan Yibin Wuliangye Winery Co., Ltd. Holding subsidiary First-tier 99.99% 99.99%
Yibin Wuliangye Liquor Sales Co., Ltd. Holding subsidiary First-tier 95.00% 95.00%
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd. Holding subsidiary Second-tier 95.00% 95.00%
Yibin Wuliangchun Brand Marketing Co., Ltd Holding subsidiary Second-tier 95.00% 95.00%
Yibin Wuliangye Series Liquor Brand Marketing Co., Ltd. Holding subsidiary Second-tier 95.00% 95.00%
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. Holding subsidiary First-tier 99.95% 99.95%
Yibin Jiangjiu Liquor Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. Holding subsidiary First-tier 51.00% 51.00%
Sichuan Jinwuxin Technology Co., Ltd. Holding subsidiary Second-tier 51.00% 51.00%
99
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sichuan Jiebeike Environmental Technology Co., Ltd. Holding subsidiary Second-tier 26.01% 26.01%
Yibin Changjiangyuan Liquor Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Yibin Changjiangyuan Trade Co., Ltd. Wholly-owned Second-tier 100.00% 100.00%
subsidiary
Yibin Changjiangyuan Brewery Co., Ltd. Wholly-owned Second-tier 100.00% 100.00%
subsidiary
Yibin Wuliangye Organic Agriculture Development Co., Ltd. Wholly-owned Second-tier 100.00% 100.00%
subsidiary
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. Holding subsidiary First-tier 90.00% 90.00%
Yibin Xianlin Liquor Marketing Co., Ltd. Holding subsidiary Second-tier 90.00% 90.00%
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. Holding subsidiary Second-tier 42.30% 42.30%
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. Holding subsidiary First-tier 98.53% 98.53%
Yibin Xinxing Packaging Co., Ltd. Holding subsidiary Second-tier 98.53% 98.53%
Sichuan Yibin Plastic Packaging Materials Company Limited Wholly-owned First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Push Group 3D Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Guangdong Foshan Plastic Packaging Materials Company Wholly-owned Second-tier 100.00% 100.00%
Limited subsidiary
Sichuan Yibin Wuliangye Investment (Consulting) Co.,Ltd. Holding subsidiary First-tier 95.00% 95.00%
Wuhou Cultural Development Co., Ltd. Holding subsidiary Second-tier 70.30% 70.30%
Yibin Zhenwushan Liquor Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Yibin Shiji Liquor Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Yibin Cuipingshan Liquor Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Wuliangye Dashijie (Beijing) Trade Co., Ltd. Holding subsidiary First-tier 95.00% 95.00%
Handan Yongbufenli Liquor Co., Ltd. Holding subsidiary First-tier 51.00% 51.00%
Linzhang Desheng Wine Trade Co., Ltd. Holding subsidiary Second-tier 51.00% 51.00%
Handan Yongbufenli Sales Co., Ltd. Holding subsidiary Second-tier 51.00% 51.00%
Huaibin Wubin Consultation Service Co., Ltd. Wholly-owned First-tier 100.00% 100.00%
subsidiary
Wuguchun Jiu Ye Co., Henan. China Holding subsidiary Second-tier 51.03% 51.03%
Huaibin Tenglong Trade Co., Ltd. Holding subsidiary Third-tier 51.03% 51.03%
100
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Wuguchun Jiu Ye Sales Co., Henan. China Holding subsidiary Third-tier 51.03% 51.03%
Sichuan Wuliangye Culture Tourism Development Co., LTD Holding subsidiary First-tier 80.00% 80.00%
Sichuan Wuliangye Tourist Agency Co., Ltd. Holding subsidiary Second-tier 80.00% 80.00%
Yibin Wuliangye Creart Co., Ltd. Holding subsidiary First-tier 45.00% 51.00%
Wuliang NongXiang Series Baijiu Yibin Co., Ltd. Holding subsidiary First-tier 95.00% 95.00%
Refer to the Note "VIII. Changes in consolidation scope" and "IX. Interests in other entities" for the
scope of consolidated financial statements of current period and its changes.
IV. Preparation basis of 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 (2014 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 policy and accounting estimates
Specific accounting policy 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. Note on compliance with 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
From January 1 to December 31 of each calendar year.
3. Operating cycle
The Company’s operating cycle is 12 months.
4. Bookkeeping currency
RMB is used as the bookkeeping currency and reporting currency of the Company.
5. Accounting methods for business combination involving enterprises under and not under
the same control
(1) Business combination involving enterprises under the same control
101
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The assets and liabilities acquired by the combining party through business combination involving
enterprises under the same control are measured at the share of owner's equity of the combined party in
the book value on consolidated statements of the final controlling party on the combination date. The
difference between the book value of the net assets obtained by the combining party and the book value
of consideration paid for the combination (or total par value of the shares issued) is adjusted against
capital stock 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 recorded into current profit/loss when incurred.
(2) Business combination involving enterprises not under the same control
In case of business combination involving enterprises not under the same 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 same 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:
① In the individual financial statements, the sum of book value of the equity investment held in the
acquiree prior to the date of acquisition and cost of the new investment on the date of acquisition shall be
taken as the initial cost of such investment; Where the equity held in the acquiree prior to the date of
acquisition involves other comprehensive income, the other comprehensive income related to such
investment (eg. part of the changes in fair value of the available-for-sale financial assets which is
recorded into capital reserve, the same below) shall be transferred to current investment income.
② 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 book value shall be recorded into 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 recorded into
current profit/loss; the transaction expenses for issuing equity securities or debt securities by the
acquirer as consideration of the combination shall be recorded into 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 same 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 recorded into
the current profit/loss.
6. Methods for preparing consolidated financial statements
(1) Principles for determining the scope of consolidated financial statements:
102
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The scope of consolidated financial statements is determined on the basis of control, including the
Company and the subsidiaries under its control. Control means that the Company 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.
(2) Methods for preparing consolidated financial statements:
The parent company 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 minority equity shall be presented in the consolidated
income statement as "minority interest income" under the net profit. The share in current comprehensive
income of the subsidiaries which is attributable to minority equity shall be presented in the consolidated
income statement as "total comprehensive income attributable to minority shareholders" under the total
other comprehensive income.
For subsidiaries and businesses of the parent company added by business combination involving
enterprises under the same 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 subsidiary 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 same 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
reporting period shall be recorded into the consolidated cash flow statement.
When the parent company disposes subsidiaries and businesses during the reporting period, the
revenue, expenses, and profits of such subsidiary and business from beginning of the reporting period to
the date of disposal shall be recorded into the consolidated income statement; Cash flows of such
subsidiary and business from 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 acquires the equity held by the
minority shareholders in the subsidiary, the difference between the long-term equity investment obtained
by acquiring minority equity 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 capital stock premium). If the capital
reserve is not sufficient for writing down, the retained earnings shall be adjusted.
7. Classification of joint venture arrangements and accounting methods for joint operations
Joint venture 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 Enterprise:
(1) Recognize assets solely held by the Company, and those jointly owned assets according
to the Company's share;
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(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.
8. Recognition criteria for 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.
9. Foreign currency transaction and translation of financial statements prepared in foreign
currencies
(1) Accounting methods of foreign currency transaction:
Foreign currency transaction shall be translated into the bookkeeping 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 recorded into the
construction cost of relevant fixed assets if in connection with acquisition and construction of the fixed
assets which has not yet reached its intended condition for use; shall be recorded into
administrativeexpenses if incurring during the preparation period and not in connection with acquisition
and construction of fixed assets; and shall be recorded into current financial expenses 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 undistributed profit, 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. The translation difference of the foreign currency financial statements arising
from the translation shall be separately presented under the owner's 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.
10. 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.
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(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; 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 date of transaction, or derecognize the
assets sold on the date of transaction.
(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 financial assets of the Company are classified into: financial
assets measured at the amortized cost; financial assets at fair value through other comprehensive
income; financial assets at fair value through profit or loss.
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 recorded into current
profit or loss; for other categories of financial assets, relevant transaction expenses shall be recorded
into 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
① Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtaining
contractual cash flow, and the characteristics of contractual cash flow of such financial assets are
basically the same as basic borrowing arrangement, namely the cash flow arising on a specific date,
which are solely payments of principal and interest on the principal amount outstanding. The Company
subsequently measures such financial assets at amortized costs by effective interest method. The gain
or loss from their amortization, impairment and derecognition shall be recorded into current profit or loss.
② 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 recorded into other comprehensive income, but the impairment loss,
exchange gain or loss and interest revenue calculated by effective interest method shall be recorded into
current profit or loss. The accumulative gains or losses which are previously recorded into other
comprehensive income shall be transferred out from other comprehensive income and recorded into
current profit or loss upon derecognition.
③ Investment in debt instruments at fair value through profit or loss
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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 recorded into current profit or loss. Only when the Company changes the business
model of managing financial assets, shall relevant financial assets being affected be reclassified.
④ 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 records
relevant dividends income into current profit or loss, with changes in fair value recorded into other
comprehensive income. The accumulative gains or losses which are previously recorded into 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 retain 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 one of the following conditions can be designated upon initial
recognition as the financial liabilities at fair value through profit or loss: ① This designation can
eliminate or significantly reduce accounting mismatch; ② According to the risk management or
investment strategy of the Company as stated in formal written document, the portfolio of financial
liabilities or the portfolio of financial assets and financial liabilities is managed and evaluated on the basis
of fair value, and reported to the key management on the basis of this inside the Company; ③ 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
recorded into current profit or loss; relevant transaction expenses of financial liabilities measured at
amortized cost shall be recorded into the initial recognition amount.
2) Subsequent measurement of financial liabilities
① 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 recorded into current profit or loss.
② Financial liabilities at fair value through profit or loss: Including trading financial liabilities
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(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value
through profit and loss upon initial recognition.
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 recorded into 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 recorded into other comprehensive
income; accumulative gain or loss previously recorded into other comprehensive income shall be
transferred from other comprehensive income to retained earnings. Other changes in fair value shall be
recorded into 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 recorded into current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilities
shall be presented as net amount after offset in the balance sheet: The Company has the legal right to
offset the recognized amount and may exercise such legal right currently; the Company plans to settle
with net amount or realize the financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation in
the active market. For financial instruments without active market, the fair value shall be determined by
valuation technique. The Company shall adopt the valuation technique which is applicable in current
situation and supported by sufficient available data and other information for valuation. The Company
shall choose inputs which are consistent with the characteristics of assets or liabilities considered by the
market participant in the transaction of relevant assets and liabilities, and give priority to relevant
observable inputs. If it is impossible or impractical to obtain relevant observable inputs, the Company
may use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortized
cost, investments in debt instruments at fair value through other comprehensive income, contract asset,
lease receivables, loan commitment and financial guarantee contracts based on the expected credit
loss.
The expected credit loss refers to the weighted average credit loss of financial instruments
weighted by the risk of default. Credit loss refers to the difference between all contract cash flows
discounted by the Company at the original effective interest rate and receivable according to the contract
and all expected cash flows received, namely the present value of all cash shortage. Among which, the
financial assets purchased or originated that have suffered from credit impairment shall be discounted at
the effective interest rate of the financial assets after credit adjustment.
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
date of balance sheet due to possible defaults of financial instruments and is an integral part of the
lifetime expected credit loss.
On the date of balance sheet, the Company measured the expected credit loss of financial
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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 the 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 the 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 the 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 date of balance sheet, 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 the Stage 1 and Stage 2, the Company shall
calculate the interest revenue according to the book balance and effective interest rate before deducting
the provisions for impairment. For financial instruments in the Stage 3, the Company shall calculate the
interest revenue according to the amortized cost and effective interest rate of the book balance after
withdrawing the provisions for impairment.
For notes receivable and accounts receivable, regardless of whether there is a 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
① 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
book value.
② If there is no objective evidence indicating that impairment or the credit loss of a single financial
assets 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 bill
Commercial acceptance bills group Commercial acceptance bills
Accounts receivable group Receivables from related parties
Accounts receivable group External customer
Other accounts receivable group Receivables from and payables to related parties
Other accounts receivable group Reserve fund, deposits and other receivables with low credit risk
Other accounts receivable 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
prepared a comparison table between the aging of accounts receivable and the lifetime expected credit
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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) Creditors 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 record the provision or reversal for loss made or recorded into 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 recorded into
current profit or loss; for financial assets measured at amortized cost, the provision for loss shall offset
the book value of such financial assets.
11. 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 liquor 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 recorded into “materials cost difference”. The difference to be amortized by
the materials sent out shall be calculated by materials cost difference by category at the end of the
month, so as to adjust cost of the materials sent out into actual cost; goods in process,
self-manufactured semi-finished products, and finished products are measured at actual cost and priced
by weighted average method when sent out.
(3) Determination basis of net realizable value of inventory and methods for provision of
inventory falling price reserves
On the date of balance sheet, 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 recorded into 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 an
enterprise 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.
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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 date of balance sheet.
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 recorded into current profit or loss.
(4) Inventory system
The inventory system is a perpetual inventory system.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
12. 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, 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 3 months).
If the transaction between non-related parties fails to be completed within one year due to one of
the following circumstances which is over the control of the Company, and the Company still promises to
sell the non-current assets or disposal groups, the Company should continue to classify the non-current
assets or disposal groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions
that lead to extension of the sale. The Company has already acted on these conditions in a timely
manner and it is expected to be able to successfully deal with the conditions that led to the extension of
the sale within one year after the conditions were set; 2) Due to unusual circumstances, the non-current
assets or disposal groups held-for-sale failed to be sold within one year. In the first year, the Company
has taken necessary measures for these new conditions and the assets or disposal groups meet the
conditions of held-for-sale again.
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(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 date of balance sheet, if the book value is higher than the fair value minus the net amount
of the sale costs, the book 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 recorded into 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 recorded into current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the book
value of goodwill of the disposal groups shall be offset first, and then the book 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 being classified as held-for-sale.
The reversed amount shall be recorded into 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 being
classified as held-for-sale. The reversed amount will be recorded into the current profit or loss. The book
value of goodwill which had been written down and the asset impairment loss recognized before being
classified as held-for-sale shall not be reversed.
For the recognized amount of asset impairment loss of the disposal groups held for sale which is
reserved subsequently, the book value shall be increased according to the proportion of book 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 out 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: ① Amount after adjusting the book 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; ② The recoverable amount.
The gain or loss not yet recognized shall be recorded into current profit or loss when recognizing
the non-current assets or disposal groups held for sale.
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13. Long-term equity investment
(1) Determination of initial investment cost
① Long-term equity investment from business combination
1) For the long-term equity investment acquired through business combination involving
enterprises under the same control, the share of the book 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 capital stock premium of the
capital reserve shall be adjusted with the difference between the initial investment cost of the long-term
equity investment and the book value of the consideration paid; If the capital stock 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 same 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 same control
implemented by multiple transactions, the initial investment cost shall be the sum of the book 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.
② 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.
③ 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.
④ 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 book value of the assets surrendered and relevant
taxes payable.
⑤ The initial investment cost of a long-term equity investment obtained by debt restructuring shall
be recognized at the fair value.
(2) Subsequent measurement and profit & loss recognition methods
The long-term equity investment in subsidiaries is measured by the cost method. Long-term equity
investment calculated by cost method shall be priced at the initial investment cost. The cost of long-term
equity investment shall be adjusted when the investment is added or recovered. The cash dividends or
profits declared to be distributed by the invested company should be recognized as current 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
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net assets of the invested company gained from the investment, the difference shall be recorded into
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 book
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 book 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 book value of the
long-term equity investment and record 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. The unrealized loss of internal transactions incurred by
the Company and the invested company attributable to asset impairment loss shall not be offset.
The Company shall recognize the net losses of the invested company until the book 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 is inconsistent
with those adopted he 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 book value and the actual
price at which the investment is obtained shall be recorded into current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investment
originally recorded into other comprehensive income shall be accounted for on the same basis as the
invested company’s direct disposal of the relevant assets or liabilities when disposed. The owners’equity
recognized as a result of changes in other owners’equity other than net profit or loss, other
comprehensive income, and profit distribution of the invested company is carried forward proportionally
into current profit or loss, except for other comprehensive income arising from changes due to
remeasurement of net liabilities or net assets of the defined benefit plan.
In case of loss of common control or significant influence on the invested company due to disposal
of part of the equity investments, residual equity will be accounted by the recognition and measurement
criterion for financial instruments. The difference between the fair value on the date of losing common
control or significant influence and the book value shall be recorded into 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
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assets or liabilities when stop 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 book 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 purchase date 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.
14. 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 more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and
other expenditure incurred before and for making the fixed assets reaching 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 reaching 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 recorded into the cost of fixed assets if
meeting the recognition conditions for fixed assets, and shall be recorded into current profit or loss if not
meeting the recognition conditions for fixed assets.
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(2) Depreciation method
Yearly depreciation
Category Depreciation method Depreciation life Residual rate
rate
Houses 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%
Special equipment Straight-line method 8years 3%-5% 11.18-12.13%
Transportation
Straight-line method 6years 3%-5% 15.83-16.17%
equipment
Other equipment Straight-line method 6years 3%-5% 15.83-16.17%
(3) Recognition basis, valuation and depreciation methods of fixed assets under financing lease
The fixed assets under financing lease are recognized if one of the following conditions is specified
by the Company and the leaser in their lease agreement:
① Upon the expiration of the lease term, the ownership of the leased asset belongs to the Company;
② The Company has the option to purchase the asset and the purchase price is far lower than the fair
value of such asset at the time of exercising the option;
③ The lease term covers most of the useful life of the leased asset;
④ There is no large difference between the present value of the minimum lease payments on the
commencement date of lease and fair value of the assets.
On the commencement date of lease, book value of the leased assets is the lower of the fair value of the
leased assets and the present value of the minimum lease payments, and minimum lease payments
shall be taken as the book value of the long-term payables, with the difference recognized as
unrecognized financing costs.
15. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessary
expenditures incurred before the assets reaching its intended condition for use.
(2) Cost of fixed assets that have reached the intended condition for use but for which the
completion settlement has not been handled shall be recognized at the estimated value, and
depreciation shall be provided; 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.
16. 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 recorded into the cost of
such assets; other interest of borrowings, and amortization of discounts or premiums shall be recorded
into 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 recorded into 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 reaching the
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intended condition for use, shall be capitalized at the time of occurrence; other auxiliary expenses shall
be recognized as expenses in current period and recorded into current profit or loss.
(2) Capitalization period of borrowing costs:
① 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.
② Suspension of capitalization: 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.
③ Termination of capitalization: When the fixed assets acquired and constructed reach the
intended condition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be the
amount of interest expenses actually incurred in the current period less the interest revenue 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.
17. Intangible assets
(1) Valuation method, service life and impairment test
① Valuation and amortization of intangible assets: 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.
② Service life: 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.
③ 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) Accounting policy for internal research and development expenditures
The expenditures of the Company’s internal research and development projects are divided into
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research phase expenditures and development phase expenditures.
Research phase expenditures shall be recorded into 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 recorded into current profit or loss when
incurred:
② It is technically feasible to complete this intangible assets so that it can be used or sold.
② Have the intention to complete the intangible assets and use or sell them.
③ 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 stage of the intangible asset can be reliably measured.
18. 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 date of balance sheet. If the recoverable amount of the
asset is less than its book value according to the test, provision for impairment will be made at the
difference and recorded into 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 book 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 book 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 book value of each asset group or combination of assets groups in the
total book 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
book 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 book value of these assets groups or combinations of assets groups (including the book
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 book value thereof, the
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Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once
recognized.
19. Long-term deferred expenses
Long-term deferred expenses 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 deferred expenses such
as expenditure for improvement of fixed assets under operating lease shall be amortized averagely
within the benefit period.
20. Payroll
(1) Accounting treatment of short-term compensation
Short-term compensation 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
compensation is recognized as liabilities and recorded into current profit or loss or costs of relevant
assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by the
enterprise after retirement from or termination of the labor relation with the enterprise in exchange for the
service provided by the employee. Post-employment benefits are divided into two types: Defined
contribution plans and defined benefit plans.
① Defined contribution plan: Contribution which shall be made by the Company separately on the
date of balance sheet in exchange for the service provided by the employee during the accounting
period shall be recognized as payroll liabilities and recorded into current profit or loss or relevant asset
cost.
② 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 recorded into 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
recorded into other comprehensive income and shall not be reversed to profit or loss in subsequent
accounting periods.
(3) Accounting treatment of dismission benefits
Dismission benefits refers to the compensation paid to the employee by the enterprise for
termination of the labor contract with the employee prior to expiration, or encouraging the employee to
accept downsizing voluntarily.
If the enterprise provides dismission benefits, payroll liabilities arising from dismission benefits shall
be recognized and recorded into current profit or loss on the earlier date of:
① The date when the enterprise could not unilaterally withdraw the dismission benefits which
offered by the plan or layoff proposal due to termination of the labor relation.
② The date when the enterprise recognizes the cost or expense related to the reorganization
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related to payment of the dismission 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 dismission 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.
21. Estimated liabilities
(1) Recognition criteria for estimated liabilities
When obligations related to contingencies meet the following conditions, the Company shall
recognize them as estimated liabilities:
① The obligation is the current obligation assumed by the Company.
② The performance of this obligation may result in the outflow of economic benefits.
③ The amount of this obligation can be reliably measured.
(2) Measurement method of estimated liabilities
Considering the risks, uncertainties, and time value of money related to contingencies, the
estimated liabilities 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 book value of
the estimated liabilities on the date of balance sheet, and adjust the book value to reflect current best
estimate.
22. Revenue
Whether new revenue standards have been implemented
□ Yes √ No
(1) Revenue from selling goods
Revenue shall be recognized when the following conditions are met: The Company has transferred
the substantial risks and rewards of ownership of the goods to the buyer; the Company retains neither
continuous management right that usually keeps relation with the ownership nor effective control over
the sold goods; the amount of revenue can be measured reliably; the relevant economic benefits may
flow into the Company; and the relevant costs that have occurred or will occur can be measured reliably.
(2) Revenue from rendering service
Revenue from rendering service shall be recognized when the results of labor service transaction
meet the following conditions at the same time: The amount of revenue can be measured reliably; the
relevant economic benefits may flow into the Company; the progress of the transaction can be reliably
determined;and the relevant costs that have occurred or will occur in the transaction can be measured
reliably.
If the results of labor service transactions cannot be estimated reliably, they shall be treated
separately as below: If the labor service costs incurred are expected to be compensated, the labor
service revenue is recognized according to the labor cost already incurred and labor cost is recognized
at the same amount. If the labor cost already incurred is not expected to be compensated, the labor cost
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already incurred is included in profit or loss for the current period, and the revenue from the provision of
service is not recognized.
(3) Revenue from transfer of the right-of-use assets
Revenue shall be recognized when the following conditions are met: The economic benefits related
to the transaction may flow into the Company; the amount of revenue can be measured reliably.
23. 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 recorded into
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 subsides other than asset-related
government subsidies.
The specific criteria that the Company classifies government subsidies as income-related is: Other
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 recorded into current profit or loss if used to compensate the
relevant expenses or losses of the Company in the subsequent period; recorded into 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; recorded
into 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 recorded into profit
or loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be recorded into
other incomes or used to offset relevant costs and expenses according to the substance of the economic
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business. The government subsidies irrelevant with the daily activities of the Company shall be recorded
into non-operating revenue.
24. 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 book 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 date of balance sheet 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.
25. Leases
(1) Accounting treatment of operating lease
① The rents paid by the Company for leased assets are amortized with the straight-line method in
the whole lease term without deducting the rent-free period and recorded into current expenses. Initial
direct costs related to leasing transaction and paid by the Company shall be recorded into current
expenses.
Where an asset lessor has assumed the lease-related costs that should be assumed by the
Company, the Company shall deduct such costs from the total rents, and the rents remained after such
deduction shall be amortized in the lease term and recorded into current expenses.
② The rents received by the Company for leasing assets are apportioned on a straight-line basis
over the entire lease term without deducting the rent-free period and are recognized as lease revenue.
The initial direct costs related to lease transactions paid by the Company shall be included in the current
expenses; if the amount is larger, they shall be capitalized and recorded into the current revenue on the
same basis as the recognition of lease revenue during the entire lease term.
Where the Company has assumed the lease-related costs that should be assumed by the leasee,
the Company shall deduct such costs from the total lease revenue, and the rents remained after such
deduction shall be amortized in the lease term.
(2) Accounting treatment of financial lease
① Assets leased in under financial leases: On the commencement date of lease, book value of
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the leased assets is the lower of the fair value of the leased assets and the present value of the minimum
lease payments. The minimum lease payment is taken as the book value of the long-term payables, and
the difference between them is taken as unrecognized financing expenses. The Company adopts the
effective interest rate method for unrecognized financing charges, which shall be amortized over the
lease term and recorded into financial expenses. The Company records the initial direct expenses in the
values of leased assets.
② Assets leased out under finance leases: On the commencement date of lease, the Company
shall recognize the difference between the sum of the financial lease receivables and unguaranteed
residual values and its present value as unrealized financing income, and as lease revenue in any lease
period in the future when the rents are received. The initial direct expenses incurred by the Company in
relation to the lease transaction shall be recorded into the initial measurement of the financial lease
receivable and the amount of revenue recognized during the lease period shall be reduced.
26. Changes in significant accounting policy and accounting estimates
(1) Changes in significant accounting policy
√ Applicable □ Not applicable
Approval
Content and reason of changes in accounting policy Remarks
procedures
Presentation of financial statement: The Ministry of Finance issued
Refer to the following explanations for
the Notice on Revising and Printing Formats of Financial
details of the items in the Financial
Statements for General Enterprises in 2019 (CK (2019) No.6) in
Statements 2018 which are affected by
April, 2019 to revise the format of financial statements of
retroactive adjustment
enterprise.
Presentation of financial statement: The Notice on Revising and
Printing Formats of Consolidated Financial Statements (2019) (CK
(2019) No.16) revised the format of financial statements of
enterprise.
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According to the provisions for
Changes in accounting policy caused by implementation of new
transition from the old standards to the
financial instrument standards: The Ministry of Finance issued the
new standards, information of the
AccountingStandardsfor Business Enterprises No.22 -
comparable period is not adjusted, and
RecognitionandMeasurementofFinancial Instruments (2017
the beginning retained earnings or
Revision) (CK (2017) No.7), the AccountingStandardsfor Business
other comprehensive income of the
EnterprisesNo.23 - Transfer of Financial Assets (2017 Revision)
reporting period will be adjusted
(CK (2017) No.8), the AccountingStandardsfor Business
retroactively for the difference between
EnterprisesNo.24- Hedging Accounting (2017 Revision) (CK (2017)
the new standards and the original
No.9) on March 31, 2017, and the AccountingStandardsfor
standards on the date of initial
Business EnterprisesNo.37- Presentation of Financial Instruments
implementation. Refer to the Note “V.
(2017 Revision) (CK (2017) No.14) (the above standards
Significant accounting policy and
collectively referred to as “New Financial Instrument Standards”)
accounting estimates, 26.(3)
on May 2, 2017, requiring enterprises which were simultaneously
Adjustment of relevant items in
listed abroad and at home and which were listed abroad and
financial statements at the beginning of
prepared their financial report according to the International
the implementation year as a result of
Financial Reporting Standards (IFRS) or the
initial implementation of new financial
AccountingStandardsfor Business Enterprises (ASBE) to
instrument standards, new revenue
implement such standards since January 1, 2018; and other
standards and new lease standards
domestic listed companies to implement such standards since
from 2019” for details about impact on
January 1, 2019.
the Financial Statements 2018
The impact of CK (2019) No.6 on the Financial Statements 2018 are presented below:
Financial Statements 2018 (Parent
Financial Statements 2018 (Consolidated)
Item Company)
Before change After change Before change After change
Notes receivable and accounts
16,261,973,287.83
receivable
Notes receivable 16,134,641,950.86
Accounts receivable 127,331,336.97
Notes payable and accounts payable 3,566,293,179.83 175,000.00
Notes payable 413,918,369.11
Accounts payable 3,152,374,810.72 175,000.00
Asset impairment loss 10,879,427.89 143,797.84
Asset impairment loss (loss indicated
-10,879,427.89 -143,797.84
with “-”)
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the implementation
year as a result of initial implementation of new financial instrument standards, new revenue
standards and new lease standards from 2019
√ Applicable □ Not applicable
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Consolidated Balance Sheet
Unit: RMB
Item December 31, 2018 January 01, 2019 Amount of adjustment
Current assets:
Cash and cash equivalents 48,960,048,897.95 48,960,048,897.95
Settlement reserves
Capital lent
Trading financial assets
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable 16,134,641,950.86 13,864,930,200.55 -2,269,711,750.31
Accounts receivable 127,331,336.97 127,331,336.97
Accounts receivable
2,269,711,750.31 2,269,711,750.31
financing
Prepayments 220,916,820.64 220,916,820.64
Premium receivable
Reinsurance receivables
Contract reserve of
reinsurance
Other receivables 871,770,375.85 871,770,375.85
Including: Interest receivable 840,888,887.75 840,888,887.75
Dividends receivable
Purchase restituted finance
asset
Inventory 11,795,461,088.43 11,795,461,088.43
Contract asset
Assets held for sale
Non-current assets due
within one year
Other current assets
Total current assets 78,110,170,470.70 78,110,170,470.70
Non-current assets:
Loans and advances
Debt investment
Available-for-sale financial
1,200,000.00 -1,200,000.00
assets
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 919,477,978.54 919,477,978.54
Other equity instrument
investment
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Other non-current financial
1,200,000.00 1,200,000.00
assets
Investment properties
Fixed assets 5,262,163,428.02 5,262,163,428.02
Construction in progress 351,993,452.86 351,993,452.86
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 412,650,156.71 412,650,156.71
Development expenditures
Goodwill 1,621,619.53 1,621,619.53
Long-term deferred expenses 111,897,668.36 111,897,668.36
Deferred income tax assets 871,859,716.03 871,859,716.03
Other non-current assets 51,231,242.34 51,231,242.34
Total non-current assets 7,984,095,262.39 7,984,095,262.39
Total assets 86,094,265,733.09 86,094,265,733.09
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liabilities
Financial liabilities at fair
value through profit or loss
Derivative financial liabilities
Notes payable 413,918,369.11 413,918,369.11
Accounts payable 3,152,374,810.72 3,152,374,810.72
Accounts received in
6,706,735,898.48 6,706,735,898.48
advance
Contract liability
Selling financial asset of
repurchase
Absorbing deposit and
interbank deposit
Security trading of agency
Security sales of agency
Payroll payable 2,769,295,510.19 2,769,295,510.19
Tax payable 5,080,135,497.74 5,080,135,497.74
Other payables 2,585,355,687.52 2,585,355,687.52
Including: Interest payable
Dividend payable
Commission charge and
commission payable
Reinsurance payables
125
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Liabilities held for sale
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 20,707,815,773.76 20,707,815,773.76
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 267,010,618.22 267,010,618.22
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 267,010,618.22 267,010,618.22
Total liabilities 20,974,826,391.98 20,974,826,391.98
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve 13,120,411,030.42 13,120,411,030.42
Provision for general risk
Undistributed profit 43,802,603,958.99 43,802,603,958.99
Total owners’equity
attributable to parent 63,487,270,080.56 63,487,270,080.56
company
Minority equity 1,632,169,260.55 1,632,169,260.55
Total owners’equity 65,119,439,341.11 65,119,439,341.11
Total liabilities and
86,094,265,733.09 86,094,265,733.09
owners’equity
Note on the adjustment:
The Company implemented the new financial standards from January 1, 2019 and adjusted the
available-for-sale financial assets to other non-current financial assets according to the Accounting
Standard for Enterprises No. 22 - Recognition and Measurement of Financial Instruments issued by the
126
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Ministry of Finance.
Balance Sheet of Parent Company
Unit: RMB
Item December 31, 2018 January 01, 2019 Amount of adjustment
Current assets:
Cash and cash equivalents 20,666,489,987.76 20,666,489,987.76
Trading financial assets
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 73,237,561.54 73,237,561.54
Other receivables 12,135,135,681.28 12,135,135,681.28
Including: Interest receivable 383,190,672.91 383,190,672.91
Dividends receivable 342,607,430.63 342,607,430.63
Inventory
Contract asset
Assets held for sale
Non-current assets due within
one year
Other current assets
Total current assets 32,874,863,230.58 32,874,863,230.58
Non-current assets:
Debt investment
Available-for-sale financial
1,200,000.00 -1,200,000.00
assets
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 10,517,324,976.74 10,517,324,976.74
Other equity instrument
investment
Other non-current financial
1,200,000.00 1,200,000.00
assets
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Investment properties
Fixed assets 107,626,051.93 107,626,051.93
Construction in progress 99,478,221.33 99,478,221.33
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 40,573,281.24 40,573,281.24
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 100,889.03 100,889.03
Other non-current assets
Total non-current assets 10,766,303,420.27 10,766,303,420.27
Total assets 43,641,166,650.85 43,641,166,650.85
Current liabilities:
Short-term loans
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 175,000.00 175,000.00
Accounts received in advance
Contract liability
Payroll payable 1,267,974.86 1,267,974.86
Tax payable 36,702,690.98 36,702,690.98
Other payables 332,300,571.41 332,300,571.41
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 370,446,237.25 370,446,237.25
Non-current liabilities:
128
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Long-term loans
Bonds payable
Including: Preferred share
Perpetual bond
Lease liability
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 370,446,237.25 370,446,237.25
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 2,682,647,086.15 2,682,647,086.15
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserve 6,652,731,832.83 6,652,731,832.83
Undistributed profit 30,053,733,489.62 30,053,733,489.62
Total owners’equity 43,270,720,413.60 43,270,720,413.60
Total liabilities and
43,641,166,650.85 43,641,166,650.85
owners’equity
Note on the adjustment:
The Company implemented the new financial standards from January 1, 2019 and adjusted the
available-for-sale financial assets to other non-current financial assets according to the Accounting
Standard for Enterprises No.22 - Recognition and Measurement of Financial Instruments issued by the
Ministry of Finance.
(4) Comparison data before the retrospective adjustments due to implementation of new
standards for financial instruments or new lease standards since 2019
□ Applicable √ Not applicable
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
VI. Taxes
1. Main taxes and tax rates
Tax Item Tax Basis Tax Rate
13%, 16% (paid after deduction of input
VAT* Taxable sales revenue
taxes)
Consumption tax Taxable price or ex-factory price 10%, 20%
Urban maintenance and construction
Turnover tax payable 7%
tax
Corporate income tax Taxable income 25%
Education surcharge Turnover tax payable 3%
Local education surcharge** Turnover tax payable 2%
*According to the Announcement of the Ministry of Finance, the State Taxation Administration and
the General Administration of Customs on Relevant Policies for Deepening the Value-Added Tax Reform
(Announcement No. 39 [2019] of the Ministry of Finance, the State Taxation Administration and the
General Administration of Customs), VAT taxable sale or import of goods by a general VAT taxpayer
shall be adjusted to 13% from the original applicable tax rate of 16% since April 1, 2019.
**According to the Notice of the People’s Government of Sichuan Province on Printing the
Management Measures for Collection and Use of Local Education Surcharge (CFH [2011] No. 68)
issued the People’s Government of Sichuan Province on April 2, 2011, entities and individuals paying
value-added tax, business tax, and consumption tax within administrative regions of Sichuan Province
shall pay local education surcharge at 2% of the amount of the “three taxes” actually paid.
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
15%
Limited
Sichuan Yibin Wuliangye Environmental Protection Co.,
15%
Ltd.
Yibin Xinxing Packaging Co., Ltd. 20%
Wuhou Cultural Development Co., Ltd. 20%
Sichuan Jiebeike Environmental Technology Co., Ltd. 20%
Sichuan Jinwuxin Technology Co., Ltd. 20%
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. 20%
Sichuan Wuliangye Tourist Agency Co., Ltd. 20%
2. Tax preference
(1) VAT
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate
of social welfare enterprise “FQZZ No. 51004121049” issued by the Department of Civil Affairs of
130
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sichuan Province. The Company, conforming to relevant provisions of GSF [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 (CS [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×quadruple of the minimum wage of current month. The amount of value-added tax
refunded in 2019 was RMB 24,111,360.00.
According to the Notice of the Ministry of Finance and the State Administration of Taxation on
Printing the Catalog of Preferential Value-added Tax for Comprehensive Utilization of Resources and
Service (CS [2015] No. 78), the steam, white carbon black, lactic acid, and calcium lactate products sold
by Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. and produced with waste distilled grain
and pot bottom water for brewing can enjoy the 70% drawback policy for the value-added tax realized
since July 1, 2015. The amount of value-added tax refunded in 2019 was RMB 5,166,722.30.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., conforming to the Notice of the State
Administration of Taxation on Issues about Corporate Income Tax of Further Implementing the Western
Development Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed with
the No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays the
corporate income tax at 15% in 2018.
Sichuan Yibin Plastic Packaging Materials Company Limited, conforming to the Notice of the State
Administration of Taxation on Issues about Corporate Income Tax of Further Implementing the Western
Development Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed with
the No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays the
corporate income tax at 15% in 2018.
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd., conforming to the Notice of the State
Administration of Taxation on Issues about Corporate Income Tax of Further Implementing the Western
Development Strategy (Notice of the State Administration of Taxation (2012) No. 12), has been filed with
the No. 1 Branch of Local Taxation Bureau of Yibin for preferential corporate income tax and pays the
corporate income tax at 15% in 2018.
Yibin Xinxing Packaging Co., Ltd., Wuhou Cultural Development Co., Ltd., Sichuan Jiebeike
Environmental Technology Co., Ltd., Sichuan Jinwuxin Technology Co., Ltd., Yibin Wuliangye
Xinshengdai Liquor Co., Ltd. and Sichuan Wuliangye Tourist Agency Co., Ltd. conform to the provisions
of the Notice on Implementing the Inclusive Tax Deduction Policy for Small and Micro Enterprises of the
Ministry of Finance and the Statement Administration of Taxation (CS [2019] No. 13), which specifying
that if the annual taxable income of small low-profit enterprises is less than RMB 1 million, the taxable
income shall be 25% of such annual taxable income and the corporate income tax rate shall be 20%; if
the annual taxable income is more than RMB 1 million but less than RMB 3 million, the taxable income
shall be 50% of such annual taxable income and the corporate income tax rate shall be 20%. Income tax
rate shall be 20%.
VII. Notes to consolidated financial statements
1. Cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 28,179.40 48,306.24
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Bank deposit 63,138,797,874.22 48,888,675,659.23
Other cash and cash equivalents 99,999,670.17 71,324,932.48
Total 63,238,825,723.79 48,960,048,897.95
Including: Total amount of funds
restricted in use due to mortgage, 99,996,480.91 71,321,754.32
pledge or freezing
Other notes:
1. Other cash and cash equivalents include the balance of securities trading of RMB 3,189.26
deposited with Yibin Business Department of Essence Securities, deposit of bank acceptance bill of
RMB 99,754,080.91, and other deposits of RMB 242,400.00.
2. There are no other funds being restricted in use due to mortgage, pledge or freezing except for
the other cash and cash equivalents above-mentioned; and there is no funds deposited abroad and
being restricted in repatriation.
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2. Notes receivable
(1) Notes receivable presented by category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 14,643,149,595.72 13,864,930,200.55
Total 14,643,149,595.72 13,864,930,200.55
Unit: RMB
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Category Provision Book value Provision Book value
Amount Proportion Amount proportion Amount Proportion Amount proportion
(%) (%)
Notes receivable with
bad debt provision by 14,643,149,595.72 100.00% 14,643,149,595.72 13,864,930,200.55 100.00% 13,864,930,200.55
combination
Including: Bank
14,643,149,595.72 100.00% 14,643,149,595.72 13,864,930,200.55 100.00% 13,864,930,200.55
acceptance bill
Total 14,643,149,595.72 100.00% 14,643,149,595.72 13,864,930,200.55 100.00% 13,864,930,200.55
(2) Notes receivable pledged by the Company at the end of the period
The Company had no notes receivable pledged by the Company at the end of the period.
(3) Notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date of balance sheet
The Company had no notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the date of
balance sheet
(4) Notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to perform
The Company had no notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer to perform.
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(5) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
134
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3. Accounts receivable
(1) Disclosure of receivables by category
Unit: RMB
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Provision Provision
Book value Book value
Amount Proportion Amount proportion Amount Proportion Amount proportion
(%) (%)
Accounts receivable
with bad debt
1,508,250.71 1.05% 1,508,250.71 100.00% 683,959.77 0.50% 683,959.77 100.00%
provision by single
item
Including: External
1,508,250.71 1.05% 1,508,250.71 100.00% 683,959.77 0.50% 683,959.77 100.00%
customer
Receivables with bad
debt provision by 142,604,157.15 98.95% 8,154,464.12 5.72% 134,449,693.03 135,861,345.01 99.50% 8,530,008.04 6.28% 127,331,336.97
combination
Including: External
88,029,978.68 61.08% 8,154,464.12 9.26% 79,875,514.56 84,110,685.83 61.60% 8,530,008.04 10.14% 75,580,677.79
customer
Related parties 54,574,178.47 37.87% 54,574,178.47 51,750,659.18 37.90% 51,750,659.18
Total 144,112,407.86 100.00% 9,662,714.83 6.70% 134,449,693.03 136,545,304.78 100.00% 9,213,967.81 6.75% 127,331,336.97
135
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Bad debt provision by single item:
Unit: RMB
Ending balance
Name
Provision proportion
Book balance Bad debt provision Reasons for provision
(%)
Ningxia Hongzhongning
516,135.60 516,135.60 100.00% Expected irrecoverable
Wolfberry Products Co., Ltd.
Nanxi Daliangxin Food Co.,
389,729.12 389,729.12 100.00% Expected irrecoverable
Ltd.
Hunan Liuyanghe Liquor
308,155.34 308,155.34 100.00% Expected irrecoverable
Industry Co., Ltd.
Sichuan Debo Daily
294,230.65 294,230.65 100.00% Expected irrecoverable
Commodity Co., Ltd.
Total 1,508,250.71 1,508,250.71 -- --
Bad debt provision by combination:
Unit: RMB
Ending balance
Name Bad debt Provision Reasons for
Book balance
provision proportion (%) provision
Accounts receivable with bad debt
provision by combination of external 88,029,978.68 8,154,464.12 9.26%
customer
Accounts receivable with bad debt
provision by combination of related 54,574,178.47
parties
Total 142,604,157.15 8,154,464.12 -- --
Disclosure by aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive) 129,855,743.16
1 to 2 years 5,990,669.43
2 to 3 years 1,537,218.35
More than 3 years 6,728,776.92
3 to 4 years 1,700,314.39
4 to 5 years 497,316.19
More than 5 years 4,531,146.34
Total 144,112,407.86
(2) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB
Amount of change in current year
Beginning Ending
Category Recovery
balance Provisions Write-off Others balance
or reversal
Accounts receivable with bad debt
683,959.77 864,735.83 13,812.99 54,257.88 1,508,250.71
provision by single item
136
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Accounts receivable with bad debt
provision by combination of external 8,530,008.04 -375,543.92 8,154,464.12
customer
Total 9,213,967.81 489,191.91 13,812.99 54,257.88 9,662,714.83
(3) Accounts receivable actually written off in current period
Unit: RMB
Item Write-off amount
Shijiazhuang Qiaoxitang Tobacco, Alcohol and Food Co.,
54,257.88
Ltd.
Total 54,257.88
(4) Accounts receivable with top 5 ending balances by debtor
Unit: RMB
Proportion in total
Ending balance of Ending balance of bad
Unit name ending balance of
accounts receivable debt provision
accounts receivable
Sichuan China Tobacco Industry Co., Ltd. 32,678,650.80 22.68% 1,633,932.54
Sichuan Putian Times Technology Co., Ltd. 31,324,539.34 21.74%
Sichuan Yibin Wuliangye Group Ecological
9,512,479.81 6.60%
Brewery and Marketing Co., Ltd.
Chengdu PUTH Medical Plastics Packaging
8,420,650.88 5.84%
Co., Ltd.
Jiangsu Deruizhi International Trade Co., Ltd. 6,031,347.70 4.19% 301,567.39
Total 87,967,668.53 61.05%
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4. Accounts receivable financing
(1) Presentation of accounts receivable financing by category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 3,450,166,659.06 2,269,711,750.31
Total 3,450,166,659.06 2,269,711,750.31
The Company, based on the management purpose of notes receivable, classifies notes receivable for receiving contract cash flow and selling as
financial assets measured at fair value with changes recorded into other comprehensive income.
Unit: RMB
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Provision Book value Provision Book value
Amount Proportion Amount proportion Amount Proportion Amount proportion
(%) (%)
Accounts receivable financing
with bad debt provision by
single item
Accounts receivable financing
with bad debt provision by 3,450,166,659.06 100.00% 3,450,166,659.06 2,269,711,750.31 100.00% 2,269,711,750.31
combination
Including: Bank acceptance bill 3,450,166,659.06 100.00% 3,450,166,659.06 2,269,711,750.31 100.00% 2,269,711,750.31
Total 3,450,166,659.06 100.00% 3,450,166,659.06 2,269,711,750.31 100.00% 2,269,711,750.31
(2) Accounts receivable financing pledged by the Company at the end of the period
Unit: RMB
Item Ending pledged amount
Bank acceptance bill 144,514,604.00
Total 144,514,604.00
Note: The bank acceptance bill pledged by the Company at the end of the period is mainly arising from the Company’s pledge of notes in large amount
to the Bank and the issuance of notes in small amount for external payments.
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(3) Accounts receivable financing endorsed or discounted by the Company at the end of the
period and not matured yet on the date of balance sheet
Unit: RMB
Amount derecognized at the end of the Amount not yet derecognized at the
Item
period end of the period
Bank acceptance bill 918,471,579.06
Total 918,471,579.06
(4) Accounts receivable financing transferred to accounts receivable by the Company at the end
of the period due to failure of the drawer to perform
None.
5. Prepayments
(1) Prepayments presented by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 136,286,439.94 58.77% 126,443,342.78 57.24%
1 to 2 years 6,819,475.06 2.94% 4,649,815.75 2.10%
2 to 3 years 1,127,071.75 0.49% 3,577,011.18 1.62%
More than 3 years 87,676,153.34 37.81% 86,246,650.93 39.04%
Total 231,909,140.09 -- 220,916,820.64 --
Reasons for non-timely settlement of prepayments in significant amount with the aging more than 1
year:
Prepayments with the aging more than 1 year are mainly the prepayments to Yibin Guoding Gas
Co., Ltd. for the gas source as agreed.
(2) Prepayments with top 5 ending balances by prepayment object
Unit: RMB
Unit name Ending balance Proportion in ending balance of prepayments
Yibin Guoding Gas Co., Ltd. 72,922,000.00 31.44%
Sichuan Energy Investment New Chemical
24,057,942.00 10.37%
Materials Co., Ltd.
Metro Jinjiang Cash&Carry Co., Ltd. 16,686,600.00 7.20%
Jiangsu Xingye Plastic Co., Ltd. 16,146,570.00 6.96%
Sacred Mountain Molin Group Co., Ltd.,
8,283,185.84 3.57%
Sichuan
Total 138,096,297.84 59.55%
6. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 1,215,275,214.91 840,888,887.75
Other receivables 33,369,357.49 30,881,488.10
Total 1,248,644,572.40 871,770,375.85
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
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Item Ending balance Beginning balance
Interest of fixed term deposit 1,215,275,214.91 840,888,887.75
Total 1,215,275,214.91 840,888,887.75
2) Provision for bad debt
□ Applicable √ Not applicable
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature of receivable Ending book balance Beginning book balance
Reserve fund 6,792,778.95 8,689,924.59
Loans to Oriental Outlook Media Co.,
1,000,000.00
Ltd.
Current account 7,027,439.51 8,298,069.83
Deposit 19,102,013.23 9,544,328.72
Other advance money for others or
4,698,433.09 7,107,156.00
temporary payment
Total 37,620,664.78 34,639,479.14
2) Provision for bad debt
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit loss for
Bad debt provision Expected credit losses Expected credit loss for Total
the entire duration
over the coming 12 the entire duration (no
(credit impairment has
months credit impairment)
occurred)
Balance on January 1,
3,725,731.41 32,259.63 3,757,991.04
2019
Balance on January 1,
-- -- -- --
2019 in current period
--Transfer to stage 3 -151,072.11 151,072.11
Provisions in current period 644,388.36 644,388.36
Write-off in current period 151,072.11 151,072.11
Balance on December 31,
4,219,047.66 32,259.63 4,251,307.29
2019
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive) 22,545,268.61
1 to 2 years 8,814,667.35
2 to 3 years 1,502,892.66
More than 3 years 4,757,836.16
3 to 4 years 1,008,867.43
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4 to 5 years 2,382,123.82
More than 5 years 1,366,844.91
Total 37,620,664.78
3) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB
Amount of change in current year
Beginning
Category Recovery Ending Balance
balance
Provisions or Write-off Others
Reversal
Other receivables with bad debt provision by
32,259.63 151,072.11 151,072.11 32,259.63
single item
Other receivables with bad debt provision by
3,725,731.41 493,316.25 4,219,047.66
credit risk combination
Total 3,757,991.04 644,388.36 151,072.11 4,251,307.29
4) Other receivables actually written off in current period
Unit: RMB
Item Write-off amount
Linzhang County Power Supply Bureau of Hebei Province 151,072.11
Total 151,072.11
5) Other receivables with top 5 ending balances by debtor
Unit: RMB
Proportion in total
Nature of Ending Ending balance of
Unit name Aging ending balance of
receivable balance bad debt provision
other receivables
Yibin Cuiping District Housing and
Deposit 5,000,000.00 1-2 years 13.29% 500,000.00
Urban-Rural Development Bureau
Yibin Municipal Housing,
Urban-Rural Development and City Deposit 5,000,000.00 Within 1 year 13.29% 150,000.00
Administration Bureau
Advance
Chongqing Xibolesi Building
money for 1,671,340.32 4-5 years 4.44% 835,670.16
Engineering Co., Ltd.
others
China Mobile Group Sichuan Within 1
Current year;
Sub-Company 1,216,160.92 3.23% 42,995.00
account
Yibin Branch 1-2 years
Within 1
CRM Foshan Iron and Steel Co., year; 1-2
Deposit 894,200.00 2.38% 120,671.00
Ltd. years; 2-3
years
Total -- 13,781,701.24 -- 36.63% 1,649,336.16
7. Inventory
Whether new revenue standards have been implemented
□ Yes √ No
(1) Inventory classification
Unit: RMB
Ending balance Beginning balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
141
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Raw
820,802,958.97 5,470,868.60 815,332,090.37 704,404,961.76 5,566,238.71 698,838,723.05
materials
Goods in
920,929,926.83 920,929,926.83 820,750,667.60 820,750,667.60
process
Inventory of
2,641,768,788.26 23,606,759.68 2,618,162,028.58 1,628,219,456.72 22,125,947.87 1,606,093,508.85
goods
Turnover
2,443,559.07 2,443,559.07 2,922,520.24 2,922,520.24
materials
Semi-finish
9,185,653,882.86 9,185,653,882.86 8,392,578,113.47 8,392,578,113.47
ed products
Packing
16,350,413.67 15,916,796.10 433,617.57 16,409,356.58 15,916,796.10 492,560.48
materials
Goods
91,743,317.05 917,805.65 90,825,511.40 152,470,003.77 152,470,003.77
issued
Work in
process-ou 45,838,998.73 45,838,998.73 57,909,918.97 57,909,918.97
tsourced
Goods in
63,405,072.00 63,405,072.00
transit
Total 13,725,531,845.44 45,912,230.03 13,679,619,615.41 11,839,070,071.11 43,608,982.68 11,795,461,088.43
(2) Inventory falling price reserves
Unit: RMB
Increase in current period Decrease in current period
Beginning
Item Reversed or Ending balance
balance Provisions Others Others
written-off
Raw materials 5,566,238.71 95,370.11 5,470,868.60
Inventory of
22,125,947.87 2,102,958.26 622,146.45 23,606,759.68
goods
Packing
15,916,796.10 15,916,796.10
materials
Goods issued 917,805.65 917,805.65
Total 43,608,982.68 3,020,763.91 717,516.56 45,912,230.03
(3) Note on ending balance of inventory containing the capitalized amount of borrowing costs
None.
142
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
8. Long-term equity investment
Unit: RMB
Increase/decrease in the current period
Provision for
Beginning balance Adjustment of Ending balance (book impairment
Invested company Profit and loss on Changes Accrual of
(book value) Reduced other Declaration of cash value)
Additional investment investments recognized in other impairment Others Ending balance
investment comprehensive dividends or profits
with equity method equities provision
income
I. Joint ventures
II. Associates
Oriental Outlook Media Co., Ltd. 13,742,029.36 3,336,110.30 17,078,139.66
Sichuan Yibin Wuliangye Group
905,735,949.18 89,122,537.57 994,858,486.75
Finance Co., Ltd.
Yibin Jiamei Intelligent Packaging
9,800,000.00 42,105.18 9,842,105.18
Co., Ltd.
Sub-total 919,477,978.54 9,800,000.00 92,500,753.05 1,021,778,731.59
Total 919,477,978.54 9,800,000.00 92,500,753.05 1,021,778,731.59
Other notes:
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 RMB 17.15 million in April 2005, acquiring 49% of the equity of Oriental Outlook Media Co., Ltd. held by China
Worldbest Group, ShanghaiWorldbestCo.,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 October 24, 2012, the Company, Wuliangye
Group Company and 6 of its subsidiaries, and ABC International Holdings Limited jointly invested and established the Finance Company. Its registered
capital is RMB 2billion, among which the Company contributed RMB 0.72 billion, taking up 36% of the registered capital.
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 RMB 20 million,
among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB 9.8 million, taking up 49% of the registered capital.
143
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
9. Other non-current financial assets
Unit: RMB
Item Ending balance Beginning 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 Ending balance Beginning balance
Fixed assets 6,108,183,363.27 5,261,346,191.85
Disposal of fixed assets 562,549.45 817,236.17
Total 6,108,745,912.72 5,262,163,428.02
(1) Note on fixed assets
Unit: RMB
Houses and General Transportation
Item Special equipment Other equipment Total
buildings equipment equipment
I. Original book
value:
1. Beginning
7,827,986,487.58 3,474,240,996.44 2,133,958,310.77 117,138,942.46 620,678,629.49 14,174,003,366.74
balance
2. Increase in
1,156,260,065.06 80,931,708.99 89,319,869.62 6,819,421.06 25,942,180.76 1,359,273,245.49
current period
(1) Acquisition 1,108,654,082.05 28,370,131.13 86,960,597.22 6,819,421.06 23,200,743.84 1,254,004,975.30
(2) Transfer
from
47,605,983.01 52,561,577.86 2,359,272.40 2,741,436.92 105,268,270.19
construction in
progress
(3) Increase
from business
combination
3. Decrease in
84,169,428.63 519,607,854.86 2,922,613.68 7,456,646.43 23,864,631.73 638,021,175.33
current period
(1) Disposal or
84,169,428.63 519,607,854.86 2,922,613.68 7,456,646.43 23,864,631.73 638,021,175.33
scrap
4. Ending
8,900,077,124.01 3,035,564,850.57 2,220,355,566.71 116,501,717.09 622,756,178.52 14,895,255,436.90
balance
II.
Accumulated
depreciation
1. Beginning
3,417,204,970.41 3,126,226,503.79 1,731,471,151.25 86,395,645.96 542,827,436.69 8,904,125,708.10
balance
2. Increase in
228,003,046.58 111,280,599.43 49,193,686.07 6,744,751.65 23,184,612.31 418,406,696.04
current period
(1) Provision 228,003,046.58 111,280,599.43 49,193,686.07 6,744,751.65 23,184,612.31 418,406,696.04
3. Decrease in
15,166,643.55 497,466,621.24 2,536,142.93 6,862,770.75 21,959,618.83 543,991,797.30
current period
(1) Disposal or
15,166,643.55 497,466,621.24 2,536,142.93 6,862,770.75 21,959,618.83 543,991,797.30
scrap
4. Ending
3,630,041,373.44 2,740,040,481.98 1,778,128,694.39 86,277,626.86 544,052,430.17 8,778,540,606.84
balance
144
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
III. Provision
for impairment
1. Beginning
1,544,029.33 5,860,320.21 656,514.70 470,602.55 8,531,466.79
balance
2. Increase in
current period
(1) Provision
3. Decrease in
current period
(1) Disposal or
scrap
4. Ending
1,544,029.33 5,860,320.21 656,514.70 470,602.55 8,531,466.79
balance
IV. Book value
1. Ending book
5,268,491,721.24 289,664,048.38 441,570,357.62 30,224,090.23 78,233,145.80 6,108,183,363.27
value
2. Beginning
4,409,237,487.84 342,154,172.44 401,830,644.82 30,743,296.50 77,380,590.25 5,261,346,191.85
book value
(2) Fixed assets that are temporarily idle
None.
(3) Fixed assets under financing lease
None.
(4) Fixed assets leased out by operating lease
Unit: RMB
Item Ending book value
Buildings 135,816,415.80
Warehouse 1,797,109.38
Equipment 11,038,017.98
Total 148,651,543.16
(5) Fixed assets without certificate of title
Unit: RMB
Item Book value Reason for not obtaining certificate of title
The certificate of title has not been obtained due to historical
Buildings 979,720,018.13 reasons, to which the Company has attached great importance
and planned to obtain the certificate of title gradually.
Buildings 54,686,456.36 In progress
Total 1,034,406,474.49
Note: 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.
(6) Disposal of fixed assets
Unit: RMB
Item Ending balance Beginning balance
Special equipment 47,860.19
Other equipment 562,549.45 769,375.98
Total 562,549.45 817,236.17
11. Construction in progress
Unit: RMB
145
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Item Ending balance Beginning balance
Construction in progress 810,667,169.54 350,232,362.79
Project goods and materials 1,761,078.76 1,761,090.07
Total 812,428,248.30 351,993,452.86
(1) Construction in progress
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
300-Thousand-Ton
Pottery Jar Aging Spirit 432,757,395.14 432,757,395.14 35,213,355.27 35,213,355.27
Room (Phase I)
Wuliangye Industrial
Park Construction 116,380,592.65 116,380,592.65 115,500,592.65 115,500,592.65
Project
Factory Buildings and
Other Buildings
26,482,983.09 26,482,983.09 11,436,881.51 11,436,881.51
Renovation Project of
the Company
Pipe Network
Reconstruction Project 26,591,075.62 26,591,075.62 1,010,566.03 1,010,566.03
of Jiangbei Park
No. 4 Kiln Upgrading
and Reconstruction 21,776,007.96 21,776,007.96 22,420,540.05 22,420,540.05
Project
Partial Overhead Lines
Underlay
Reconstruction Project
10,698,865.18 10,698,865.18 10,448,865.18 10,448,865.18
of the Trunk Road of
the East and West
Gates
Songgong River
(Wuliangye Section)
51,266,490.32 51,266,490.32
Comprehensive
Treatment Project
Other sporadic works 178,380,255.45 2,400,005.55 175,980,249.90 105,335,077.33 2,400,005.55 102,935,071.78
Total 813,067,175.09 2,400,005.55 810,667,169.54 352,632,368.34 2,400,005.55 350,232,362.79
146
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Changes in important construction in progress in current period
Unit: RMB
Other Including:
Amount
decreases Proportion Accumulated Capitalized Capitalization
transferred to
Beginning Increase in in current of project Engineering amount of amount of rate of interest Source of
Project name Budget fixed assets in Ending balance
balance current period period input to the progress interest interest in in current funds
the current
budget (%) capitalized current period
period Decrease period
300-Thousand-Ton
Own
Pottery Jar Aging 857,070,000.00 35,213,355.27 397,544,039.87 432,757,395.14 50.49% 83.00%
funds
Spirit Room (Phase I)
Wuliangye Industrial Own
Park Construction 229,980,000.00 115,500,592.65 880,000.00 116,380,592.65 51.37% 65.00% funds and
Project subsidies
Factory Buildings and Own
Other Buildings funds
201,841,000.00 11,436,881.51 15,046,101.58 26,482,983.09 13.00% 13.00%
Renovation Project of
the Company
Pipe Network Own
Reconstruction funds
109,396,900.00 1,010,566.03 25,580,509.59 26,591,075.62 23.38% 90.00%
Project of Jiangbei
Park
No.4 Kiln Upgrading
Own
and Reconstruction 48,496,000.00 22,420,540.05 3,463,332.58 4,107,864.67 21,776,007.96 53.37% 92.00%
funds
Project
Partial Overhead
Lines Underlay
Reconstruction Own
17,600,000.00 10,448,865.18 250,000.00 10,698,865.18 60.79% 99.00%
Project of the Trunk funds
Road of the East and
West Gates
Songgong River
Own
(Wuliangye Section)
93,568,300.00 51,266,490.32 10,964,395.63 62,230,885.95 66.51% 100% funds and
Comprehensive
subsidies
Treatment Project
Total 1,557,952,200.00 247,297,291.01 453,728,379.25 66,338,750.62 634,686,919.64 -- -- --
147
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(3) Project goods and materials
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Project goods and
1,761,078.76 1,761,078.76 1,761,090.07 1,761,090.07
materials
Total 1,761,078.76 1,761,078.76 1,761,090.07 1,761,090.07
12. Intangible assets
(1) Note on intangible assets
Unit: RMB
Non-patented Technology use
Item Land use right Patents Software system Total
technology right
I. Original book value
1. Beginning balance 481,060,308.32 55,096,019.13 10,318,357.82 546,474,685.27
2. Increase in current
18,804,767.25 73,584.91 18,878,352.16
period
(1) Acquisition 18,804,767.25 73,584.91 18,878,352.16
(2) Internal research and
development
(3) Increase from
business combination
3. Decrease in current
2,366,675.00 2,366,675.00
period
(1) Disposal 2,366,675.00 2,366,675.00
4. Ending balance 478,693,633.32 73,900,786.38 10,391,942.73 562,986,362.43
II. Accumulated
amortization
1. Beginning balance 99,726,688.08 23,779,482.66 10,318,357.82 133,824,528.56
2. Increase in current
9,754,067.76 9,477,278.67 4,292.47 19,235,638.90
period
(1) Provision 9,754,067.76 9,477,278.67 4,292.47 19,235,638.90
3. Decrease in current
229,032.84 229,032.84
period
(1) Disposal 229,032.84 229,032.84
4. Ending balance 109,251,723.00 33,256,761.33 10,322,650.29 152,831,134.62
III. Provision for
impairment
1. Beginning balance
2. Increase in current
period
(1) Provision
3. Decrease in current
period
(1) Disposal
148
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
4. Ending balance
IV. Book value
1. Ending book value 369,441,910.32 40,644,025.05 69,292.44 410,155,227.81
2. Beginning book value 381,333,620.24 31,316,536.47 412,650,156.71
At the end of current period, the intangible assets created by internal research and development of
the Company accounts for 0.00% of the balance of intangible assets.
(2) Note on land use right for which the certificate of title has not been obtained
Unit: RMB
Item Book value Reason for not obtaining certificate of title
The certificate of title has not been obtained due to historical
Land use right 1,206,138.86 reasons, to which the Company has attached great importance
and planned to obtained the certificate of title gradually
Total 1,206,138.86
13. Goodwill
(1) Original book value of goodwill
Unit: RMB
Decrease in
Increase in current period
Name of invested company or matters forming Beginning current period
Ending balance
goodwill balance Through business
Disposal
combination
Sichuan Yibin Global Group Shenzhou Glass
37,535.96 37,535.96
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
14. Long-term deferred expenses
Unit: RMB
Increase in current Amount amortized
Item Beginning balance Other decreases Ending balance
period to current period
Mold 93,695,939.35 30,026,977.59 45,183,869.83 78,539,047.11
Overhaul
10,713,282.75 4,733,974.80 5,979,307.95
expenses of kilns
Others 7,488,446.26 1,732,745.85 2,138,215.21 7,082,976.90
Total 111,897,668.36 31,759,723.44 52,056,059.84 91,601,331.96
Other notes:
Long-term deferred expenses include the molds of Sichuan Yibin Plastic Packaging Materials
Company Limited, a subsidiary of the Company, and the overhaul expenses of kilns of Sichuan Yibin
Global Gelasi Glass Manufacturing Co., Ltd., which will be amortized in 3 years and 4 years,
respectively.
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
149
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Provision for impairment
62,160,116.40 15,540,029.10 63,573,991.40 15,893,497.85
of assets
Unrealized profit of
459,631,885.88 114,907,971.47 275,304,408.32 68,826,102.08
internal transaction
Payroll payable 3,444,231,749.08 861,057,937.27 2,635,865,912.20 658,966,478.05
Others 663,544,164.64 165,886,041.16 512,694,552.20 128,173,638.05
Total 4,629,567,916.00 1,157,391,979.00 3,487,438,864.12 871,859,716.03
(2) Details about deferred income tax assets which have not been recognized
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 9,104,208.09 4,445,022.47
Deductible losses 271,450,834.30 276,591,011.98
Total 280,555,042.39 281,036,034.45
Note: Due to the uncertainty of whether sufficient taxable income will be obtained in the future,
deductible temporary differences and deductible losses of deferred income tax assets are not
recognized.
(3) Deductible losses of deferred income tax assets which have not been recognized will
become due in the following years
Unit: RMB
Year Ending amount Beginning amount Remarks
Year 2019 31,643,176.65
Year 2020 4,604,961.02 16,170,861.31
Year 2021 24,902,925.05 26,066,687.31
Year 2022 90,071,724.12 91,589,312.45
Year 2023 101,698,424.52 111,120,974.26
Year 2024 50,172,799.59
Total 271,450,834.30 276,591,011.98 --
16. Other non-current assets
Whether new revenue standards have been implemented
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance
Advances of progress payment for
165,284,283.25 51,231,242.34
information system construction
Total 165,284,283.25 51,231,242.34
17. Notes payable
Unit: RMB
Type Ending balance Beginning balance
Bank acceptance bill 419,485,425.61 413,918,369.11
Total 419,485,425.61 413,918,369.11
Total amount of notes payable which became matured but unpaid at the end of current period is
RMB 0.00.
18. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
150
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Accounts payable 3,257,672,975.56 3,152,374,810.72
Total 3,257,672,975.56 3,152,374,810.72
(2) Significant accounts payable over 1 year
Unit: RMB
Reason for outstanding or carrying
Item Ending balance
forward
Project payment 32,617,639.32
Goods payment 11,048,910.39
Total 43,666,549.71 --
19. Accounts received in advance
Whether new revenue standards have been implemented
□ Yes √ No
(1) Presentation of accounts received in advance
Unit: RMB
Item Ending balance Beginning balance
Accounts received in advance 12,530,706,854.77 6,706,735,898.48
Total 12,530,706,854.77 6,706,735,898.48
(2) Significant accounts received in advance over 1 year
Unit: RMB
Reason for outstanding or carrying
Item Ending balance
forward
Proceeds from sales of liquors 53,085,975.64
Total 53,085,975.64 --
20. Payroll payable
(1) Presentation of payroll payable
Unit: RMB
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
I. Short-term
2,764,096,662.52 5,702,688,970.41 4,871,913,115.97 3,594,872,516.96
compensation
II. Post-employment
benefits - defined 5,198,847.67 760,960,193.32 766,144,828.14 14,212.85
contribution plans
III. Termination benefits 9,236,177.31 9,236,177.31
Total 2,769,295,510.19 6,472,885,341.04 5,647,294,121.42 3,594,886,729.81
(2) Presentation of short-term compensation
Unit: RMB
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Salaries, bonuses,
allowances and 2,685,041,362.81 4,765,207,410.32 3,919,993,334.58 3,530,255,438.55
subsidies
2. Employee benefits 234,231,124.03 234,231,124.03
3. Social insurance
155,091.15 283,850,676.37 283,851,088.87 154,678.65
charges
Including: Medical
154,820.64 231,109,956.13 231,110,290.43 154,486.34
insurance premium
151
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Industrial injury
166.15 36,719,296.41 36,719,355.11 107.45
insurance premium
Birth insurance
104.36 16,021,423.83 16,021,443.33 84.86
premium
4. Housing fund 13,248,883.00 329,108,272.00 321,296,371.00 21,060,784.00
5. Labor union
expenditure and
65,651,325.56 90,291,487.69 112,541,197.49 43,401,615.76
personnel educational
fund
Total 2,764,096,662.52 5,702,688,970.41 4,871,913,115.97 3,594,872,516.96
(3) Presentation of defined contribution plans
Unit: RMB
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Basic pension
14,951.95 595,599,779.97 595,600,519.07 14,212.85
insurance
2. Unemployment
23.30 19,066,690.90 19,066,714.20
insurance premium
3. Corporate pension
5,183,872.42 146,293,722.45 151,477,594.87
contribution
Total 5,198,847.67 760,960,193.32 766,144,828.14 14,212.85
21. Tax payable
Unit: RMB
Item Ending balance Beginning balance
VAT 839,852,597.96 1,070,214,491.06
Consumption tax 1,830,800,710.07 1,641,542,786.19
Corporate income tax 5,001,143,551.02 2,203,429,719.44
Individual income tax 13,250,079.02 14,016,111.56
Urban maintenance and construction
116,343,916.81 86,843,135.42
tax
Property tax 369,637.06 275,085.16
Stamp duty 645,760.98 864,554.47
Land use tax 1,079,906.23 693,496.77
Education surcharge 81,365,635.62 37,344,381.88
Local education surcharge 54,248,855.59 24,901,353.38
Environmental protection tax 18,621.28 10,382.41
Resource tax 47,317.20
Total 7,939,166,588.84 5,080,135,497.74
Other notes:
The taxes of the Company depend on the amount verified and imposed by the tax authorities.
22. Other payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 2,292,680,733.51 2,585,355,687.52
Total 2,292,680,733.51 2,585,355,687.52
152
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(1) Other payables
1) Presentation of other payables by nature
Unit: RMB
Item Ending balance Beginning balance
Market support expenses (including market
development expense, publicity expense, branding 1,178,396,467.55 1,863,905,084.82
expense)
Deposit 703,073,760.13 609,586,594.65
Accrued expenses 230,340,302.12
Money collected or paid for another 66,271,527.52 42,858,069.91
Claims from safeguarding rights 42,291,712.18 38,692,262.54
Others 72,306,964.01 30,313,675.60
Total 2,292,680,733.51 2,585,355,687.52
2) Significant other payables over 1 year
Unit: RMB
Reason for outstanding or carrying
Item Ending balance
forward
Deposit 64,380,280.00
Total 64,380,280.00 --
153
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
23. Deferred income
Unit: RMB
Increase in current
Item Beginning balance Decrease in current period Ending balance Cause
period
Government subsidy 267,010,618.22 13,860,000.00 14,545,249.82 266,325,368.40
Total 267,010,618.22 13,860,000.00 14,545,249.82 266,325,368.40 --
Projects involving government subsidies:
Unit: RMB
Amount
Amount
Increase in current offset
recognized as Amount
period against costs Other Asset-related
Liabilities Beginning balance non-operating recognized as Ending balance
and changes /income-related
Amount of subsidy revenue in other incomes
expenses in
current year
current year
90-Thousand-Ton Pottery Jar Aging Spirit Room
187,954,666.78 6,712,666.56 181,242,000.22 Asset-related
Technical Innovation Project (Phase I)
Brewery Wastewater Comprehensive Treatment
16,200,000.00 750,000.00 15,450,000.00 Asset-related
Project
Wastewater Comprehensive Treatment and
14,133,333.31 333,333.36 13,799,999.95 Asset-related
Transformation Project
Songgong River (Wuliangye Section)
10,730,000.00 178,833.36 10,551,166.64 Asset-related
Comprehensive Treatment Project
Wuliangye Industrial Park Construction Project 10,000,000.00 10,000,000.00 Asset-related
300-Thousand-Ton Pottery Jar Aging Spirit Room
10,000,000.00 10,000,000.00 Asset-related
(Phase I)
Technical Upgrading Project of the Quality
9,613,333.35 343,333.32 9,270,000.03 Asset-related
Control, Quality Inspection and Testing Center
Wastewater Treatment System Upgrading and
8,959,999.96 320,000.04 8,639,999.92 Asset-related
Renovation Project
Technical Upgrading Project of the
60-Thousand-Ton Maotai-Flavor Liquor Pottery 2,949,999.80 590,000.04 2,359,999.76 Asset-related
Jar Aging Room
Coal-to-Gas Energy Conservation and Emission
2,933,035.02 1,099,999.80 1,833,035.22 Asset-related
Reduction Project (Phase I)
154
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Coal-to-Gas Energy Conservation and Emission
500,000.00 500,000.00 Asset-related
Reduction Project (Phase II)
Shiergoubao Production Line Technical
480,000.00 120,000.00 360,000.00 Asset-related
Upgrading Project
Dust Removal System Renovation Project of the
656,250.00 656,250.00 Asset-related
510 Workshop Environmental Protection Boiler
503 Workshop Coal-to-Gas Project 600,000.00 600,000.00 Asset-related
Industrial development funds 1,000,000.00 1,000,000.00 Income-related
Informatization and big data application 1,000,000.00 270,833.34 729,166.66 Income-related
Overall Anti-counterfeit Package Project Using
100,000.00 100,000.00 Income-related
the Single-Chip Dual-Band REID Technology
Talent subsidies from the Science and
700,000.00 300,000.00 1,000,000.00 Income-related
Technology Bureau
Subsidy for national green plant of 2018 500,000.00 500,000.00 Income-related
Provincial special funds for intellectual property 90,000.00 90,000.00 Income-related
Special funds for application of cloud-terminal
intelligent spectral data analysis in the process of 770,000.00 770,000.00 Income-related
fermentation of fermented grains
Special funds for research on making special
organic fertilizer for brewing sorghum using spent
700,000.00 700,000.00 Income-related
grains based on biological transformation and its
application
Total 267,010,618.22 13,860,000.00 14,545,249.82 266,325,368.40
155
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
24. Capital stock
Unit: RMB
Increase/decrease (+, -)
Beginning balance Capitalization Ending balance
Issuance of Bonus
of public Others Sub-total
new shares share
reserve fund
Sum of
3,881,608,005.00 3,881,608,005.00
shares
25. Capital reserve
Unit: RMB
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Capital premium
2,682,523,702.98 2,682,523,702.98
(capital stock premium)
Other capital reserve 123,383.17 123,383.17
Total 2,682,647,086.15 2,682,647,086.15
26. Surplus reserve
Unit: RMB
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Statutory surplus
13,120,411,030.42 2,971,785,992.59 16,092,197,023.01
reserves
Total 13,120,411,030.42 2,971,785,992.59 16,092,197,023.01
27. Undistributed profit
Unit: RMB
Item Current period Previous period
Undistributed profit at the end of previous
43,802,603,958.99 37,675,282,021.74
period before adjustment
Undistributed profit at the beginning of the
43,802,603,958.99 37,675,282,021.74
period after adjustment
Plus: Net profits attributable to the owners of
17,402,164,190.16 13,384,246,683.60
parent company in current period
Less: Appropriation of statutory surplus
2,971,785,992.59 2,210,834,339.85
reserves
Common share dividends payable 6,598,733,608.50 5,046,090,406.50
Ending undistributed profit 51,634,248,548.06 43,802,603,958.99
Details of undistributed profit at the beginning of the adjustment period:
1). The beginning undistributed profit is adjusted by RMB 0.00 due to the retroactive adjustment
according to the Accounting Standards for Business Enterprise and relevant new provisions.
2). The beginning undistributed profit is adjusted by RMB 0.00 due to changes in accounting
policies.
3). The beginning undistributed profit is adjusted by RMB 0.00 due to correction of major
accounting errors.
4). The beginning undistributed profit is adjusted by RMB 0.00 due to changes in the combination
scope arising from the same control.
5). The beginning undistributed profit is adjusted by RMB 0.00 in total due to other adjustments.
28. Operating revenue and operating cost
Unit: RMB
Item Amount in current period Amount in previous period
156
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Revenue Cost Revenue Cost
Primary business 49,857,555,489.83 12,578,575,730.65 39,823,798,827.75 10,329,058,497.08
Other businesses 260,550,387.31 223,684,216.69 206,390,772.12 157,724,437.19
Total 50,118,105,877.14 12,802,259,947.34 40,030,189,599.87 10,486,782,934.27
Whether new revenue standards have been implemented
□ Yes √ No
29. Tax and surcharges
Unit: RMB
Item Amount in current period Amount in previous period
Consumption tax 5,574,554,509.16 4,651,541,239.20
Urban maintenance and construction
765,970,059.85 680,310,364.67
tax
Education surcharge 328,844,515.77 292,838,686.09
Resource tax 372,276.20 350,018.00
Property tax 28,945,716.04 24,393,707.24
Land use tax 50,020,995.02 49,560,403.34
Vehicle and vessel use tax 13,797.41 15,714.77
Stamp duty 13,660,117.60 13,132,633.02
Local education surcharge 219,840,795.95 195,225,790.76
Environmental protection tax 2,120,319.55 1,128,741.48
Total 6,984,343,102.55 5,908,497,298.57
30. Selling expenses
Unit: RMB
Item Amount in current period Amount in previous period
Comprehensive selling expenses (including
market development expense, publicity 4,349,034,516.43 3,282,228,558.55
expense, branding expense, payroll, etc.)
Freight and miscellaneous expenses 353,946,381.65 303,508,206.74
Travel expense 110,726,346.05 59,015,064.71
Others 171,872,092.64 133,681,845.01
Total 4,985,579,336.77 3,778,433,675.01
31. Administrative expenses
Unit: RMB
Item Amount in current period Amount in previous period
Comprehensive expenses of the Company
(including travel, office, expenses of the board of
1,148,066,122.90 991,012,355.66
directors, employee remuneration, labor insurance,
labor protection appliances, etc)
Rents 357,228,294.55 348,396,193.45
Trademark and logo royalties 580,070,408.13 480,734,618.78
Comprehensive service fee 67,614,607.22 85,711,430.00
Others 502,367,715.29 434,644,107.55
Total 2,655,347,148.09 2,340,498,705.44
157
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
32. Research and development expense
Unit: RMB
Item Amount in current period Amount in previous period
Comprehensive expenses (including travel, office,
payroll, labor insurance, labor protection 53,752,944.91 41,073,386.44
appliances, etc.)
Material expenses 31,810,442.56 14,758,839.52
Product design fees 14,787,253.09 13,121,087.51
Depreciation and amortization expenses 7,051,081.97 8,268,904.73
Others 18,958,698.58 6,860,288.06
Total 126,360,421.11 84,082,506.26
33. Financial expenses
Unit: RMB
Item Amount in current period Amount in previous period
Interest expenditure
Less: Interest revenue 1,416,398,912.72 1,081,572,031.13
Exchange loss 134,662.81 257,772.41
Less: Exchange gains 202,724.12 519,065.02
Expenditure for discount on notes 5,958,156.26
Service charge of financial institutions 1,224,741.74 1,035,827.58
Others -15,503,633.45 -10,171,423.75
Total -1,430,745,865.74 -1,085,010,763.65
34. Other incomes
Unit: RMB
Sources of other incomes Amount in current period Amount in previous period
Government subsidy 130,434,159.51 88,540,102.95
Tax refunds 29,278,082.30 17,688,897.86
Total 159,712,241.81 106,229,000.81
Notes:
1. Refer to the Note “VII. 46. Government subsidy” for details of government subsidies.
2. The tax refunds are the VAT refunds received by the Company, refer to the Note “VI. Taxes, 2.
Tax preference”.
35. Investment income
Unit: RMB
Item Amount in current period Amount in previous period
Long-term equity investment income
92,500,753.05 100,864,555.05
accounted by equity method
Investment income from disposal of
0.22
long-term equity investment
Total 92,500,753.05 100,864,555.27
36. Credit impairment loss
Unit: RMB
Item Amount in current period Amount in previous period
Bad debt loss of other receivables -644,388.36
158
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Bad debt loss of accounts receivable -489,191.91
Total -1,133,580.27
37. Asset impairment loss
Whether new revenue standards have been implemented
□ Yes √ No
Unit: RMB
Item Amount in current period Amount in previous period
I. Bad debt loss -4,549,791.15
II. Inventory falling price loss -3,020,763.91 -3,180,521.74
VII. Fixed asset impairment losses -3,149,115.00
Total -3,020,763.91 -10,879,427.89
38. Gain from disposal of assets
Unit: RMB
Source of gain from disposal of assets Amount in current period Amount in previous period
Disposal of non-current assets 2,779,400.03 5,273,892.02
Total 2,779,400.03 5,273,892.02
39. Non-operating revenue
Unit: RMB
Amounts recorded into current
Item Amount in current period Amount in previous period
non-recurring profit or loss
Government subsidy 300,000.00
Penalty revenue 5,986,339.09 9,166,517.93 5,986,339.09
Gains from scrap of
909,663.24 946,124.80 909,663.24
non-current assets
Others 22,994,270.32 33,390,478.93 22,994,270.32
Total 29,890,272.65 43,803,121.66 29,890,272.65
Government subsidy recognized in current profit or loss:
Unit: RMB
Does the
Reason subsidy Whether Amount Amount in
Granted Nature and Asset-related/
Subsidy items for affect special in current previous
by type Income-related
granting current profit subsidy period period
or loss
Other fragmentary
government 300,000.00 Income-related
subsidy
Total 300,000.00
40. Non-operating expenditure
Unit: RMB
Amounts recorded into current
Item Amount in current period Amount in previous period
non-recurring profit or loss
Donations 147,731,056.86 126,393,193.31 147,731,056.86
Penalty expenditure 266,281.96 2,554,160.76 266,281.96
Loss on scrap of non-current
5,260,675.33 2,791,521.65 5,260,675.33
assets
Abnormal loss 29,395.82 29,395.82
159
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Others 16,390,656.88 23,634,853.92 16,390,656.88
Total 169,678,066.85 155,373,729.64 169,678,066.85
Other notes:
Donations mainly include the donation of RMB 147.3729 million to Sichuan Wuliangye Charitable
Foundation, among which RMB 100 million is for the rural revitalization and targeted poverty alleviation
project, RMB 20 million is for earthquake relief of Changning County, RMB 7 million is for the Wuliangye
Education Incentive Infrastructure Project of Sichuan University of Science and Engineering, RMB 7
million is for the Education Incentive Award Project of the Education Development Foundation of
Sichuan University of Science and Engineering, RMB 5.465 million is for Yibin Education Foundation,
RMB 3.27 million is for the acrobatics education poverty alleviation project of Yibin, RMB 2 million is for
the talent development project of Xinlong County, Yajiang County, Ganzi Tibetan Autonomous Prefecture,
RMB 1.2495 million is for the poverty alleviation project of Qingshanyan Village of Xingwen County, and
RMB 1.3884 million is for relief of the earthquake occurred on December 16 in Xingwen County.
41. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Amount in current period Amount in previous period
Current income tax expenses 6,163,289,027.89 4,760,159,182.00
Deferred income tax expenses -285,532,262.97 -191,986,652.28
Total 5,877,756,764.92 4,568,172,529.72
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount in current period
Total profit 24,106,012,043.53
Income tax expense calculated with statutory/applicable tax rates 6,026,503,010.88
Impact of different tax rates applicable to subsidiaries -83,191,083.19
Impact on adjustment of income tax in previous periods -36,969,244.42
Impact of nontaxable revenue -23,125,188.26
Impact of non-deductible costs, expenses and losses 1,154,078.99
Impact of deductible losses of deferred income tax assets which
-5,917,450.16
have not been recognized in the previous period
Impact of deductible temporary differences or deductible losses of
deferred income tax assets which have not been recognized in 13,707,996.30
current period
Impact of weighted deduction for salary of the disabled -11,594,238.14
Impact of 10% tax rate for revenue from steam -545,473.86
Impact of weighted deduction for research and development
-205,016.27
expenses
Impact of one-time deduction of fixed assets -2,060,626.95
Income tax expenses 5,877,756,764.92
42. Items of cash flow statement
(1) Other cash received relating to operating activities
Unit: RMB
Item Amount in current period Amount in previous period
Interest revenue 1,042,012,585.56 853,819,574.81
160
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Deposits and government subsidies
421,764,044.99 383,418,320.47
received
Total 1,463,776,630.55 1,237,237,895.28
(2) Other cash paid relating to operating activities
Unit: RMB
Item Amount in current period Amount in previous period
Expenses relating to selling 1,766,874,668.53 1,300,737,190.29
Comprehensive service fee 60,889,059.16 85,711,430.00
Trademark and logo royalties 477,571,873.51 480,734,618.78
Rents 337,348,167.14 348,396,193.45
Deposits, current accounts and other
722,835,412.55 754,533,479.42
out-of-pocket expenses paid
Total 3,365,519,180.89 2,970,112,911.94
(3) Other cash payments relating to financing activities
Unit: RMB
Item Amount in current period Amount in previous period
Return of deposit for share subscription
22,092,404.60
and interest
Total 22,092,404.60
43. Supplementary Information to Cash Flow Statement
(1) Supplementary Information to Cash Flow Statement
Unit: RMB
Supplementary information Amount of current period Amount of previous period
1. Reconciliation from net profits to cash
-- --
flows from operating activities:
Net profit 18,228,255,278.61 14,038,650,126.48
Plus: Provision for impairment of assets 3,436,827.62 -4,125,897.17
Fixed assets depreciation, oil and gas
assets depletion, and productive 418,406,696.04 484,853,435.67
biological assets depreciation
Amortization of intangible assets 19,235,638.90 15,165,124.85
Amortization of long-term deferred
52,056,059.84 63,080,998.72
expenses
Loss from disposals of fixed assets,
intangible assets and other long-term -2,779,400.03 -5,273,892.02
assets (gains indicated with “-”)
Scrap loss of fixed assets (gains
4,351,012.09 1,845,396.85
indicated with “-”)
Financial expenses (gains indicated with
-63,661.42 -164,139.95
“-”)
Investment loss (gains indicated with “-”) -92,500,753.05 -100,864,555.27
Decrease in deferred income tax assets
-285,532,262.97 -191,986,652.28
(increase indicated with “-”)
Decrease in inventory (increase
-1,886,461,774.33 -1,226,493,031.60
indicated with “-”)
Decrease in operating receivables
-2,354,601,239.25 -5,228,455,859.11
(increase indicated with “-”)
Increase in operating payables
9,008,269,618.61 4,471,127,979.73
(decrease indicated with “-”)
Net cash flows from operating activities 23,112,072,040.66 12,317,359,034.90
2. Significant investment and financing
-- --
activities not involving cash:
161
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
3. Net change in cash and cash
-- --
equivalents:
Ending balance of cash 63,138,829,242.88 48,888,727,143.63
Less: Beginning balance of cash 48,888,727,143.63 40,529,000,014.21
Plus: Ending balance of cash equivalents 65,304,080.91 71,321,754.32
Less: Beginning balance of cash
71,321,754.32 62,803,391.57
equivalents
Net increase in cash and cash
14,244,084,425.84 8,368,245,492.17
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 63,138,829,242.88 48,888,727,143.63
Including: Cash on hand 28,179.40 48,306.24
Bank deposit readily available for
63,138,797,874.22 48,888,675,659.23
payment
Other cash and cash equivalents readily
3,189.26 3,178.16
available for payment
II. Cash equivalents 65,304,080.91 71,321,754.32
Including: Deposit of notes matured
65,304,080.91 71,321,754.32
within three months
III. Ending balance of cash and cash
63,204,133,323.79 48,960,048,897.95
equivalents
44. Assets with restricted ownership or use right
Unit: RMB
Item Ending book value Reasons for limitation
Deposit of bank acceptance bill of RMB
Cash and cash
99,996,480.91 99,754,080.91 and other deposits of RMB
equivalents
242,400.00.
Accounts receivable
144,514,604.00 Pledge of bank acceptance bill
financing
Total 244,511,084.91 --
45. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Ending balance of foreign Ending balance converted to
Item Conversion exchange rate
currency RMB
Cash and cash equivalents -- --
Including: USD 653,701.62 6.9762 4,560,353.24
(2) Note on overseas operating entities, including disclosure of overseas primary business
places, bookkeeping currency and selection basis for important overseas operating entities, and
disclosure of the reasons for any change in the bookkeeping currency.
□ Applicable √ Not applicable
46. Government subsidy
(1) Basic information of government subsidies
162
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Unit: RMB
Amounts recorded into
Type Amount Presented items
current profit or loss
90-Thousand-Ton Pottery Jar Aging Spirit Room
201,380,000.00 Deferred income 6,712,666.56
Technical Innovation Project (Phase I)
Brewery Wastewater Comprehensive Treatment
22,500,000.00 Deferred income 750,000.00
Project
Songgong River (Wuliangye Section)
10,730,000.00 Deferred income 178,833.36
Comprehensive Treatment Project
Technical Upgrading Project of the Quality Control,
10,300,000.00 Deferred income 343,333.32
Quality Inspection and Testing Center
Wastewater Comprehensive Treatment and
10,000,000.00 Deferred income 333,333.36
Transformation Project
Wuliangye Industrial Park Construction Project 10,000,000.00 Deferred income
300-Thousand-Ton Pottery Jar Aging Spirit Room
10,000,000.00 Deferred income
(Phase I)
Wastewater Treatment System Upgrading and
9,600,000.00 Deferred income 320,000.04
Renovation Project
Dust Removal System Renovation Project of the 510
7,406,250.00 Deferred income 656,250.00
Workshop Environmental Protection Boiler
Coal-to-Gas Energy Conservation and Emission
6,600,000.00 Deferred income 1,099,999.80
Reduction Project (Phase I)
Technical Upgrading Project of the 60-Thousand-Ton
5,900,000.00 Deferred income 590,000.04
Maotai-Flavor Liquor Pottery Jar Aging Room
Shiergoubao Production Line Technical Upgrading
1,200,000.00 Deferred income 120,000.00
Project
Special funds for application of cloud-terminal
intelligent spectral data analysis in the process of 770,000.00 Deferred income 770,000.00
fermentation of fermented grains
Special funds for research on making special organic
fertilizer for brewing sorghum using spent grains
700,000.00 Deferred income 700,000.00
based on biological transformation and its
application
Informatization and big data application 1,000,000.00 Deferred income 270,833.34
Industrial development funds 1,000,000.00 Deferred income
Talent subsidies from the Science and Technology
1,000,000.00 Deferred income 1,000,000.00
Bureau
503 Workshop Coal-to-Gas Project 600,000.00 Deferred income 600,000.00
Subsidy for national green plant of 2018 500,000.00 Deferred income
Coal-to-Gas Energy Conservation and Emission
500,000.00 Deferred income
Reduction Project (Phase II)
Overall Anti-counterfeit Package Project Using the
100,000.00 Deferred income 100,000.00
Single-Chip Dual-Band REID Technology
Provincial special funds for intellectual property 90,000.00 Deferred income
Funds for supporting enterprises settling in the
industrial headquarter base from Yibin Lingang 58,380,057.00 Other incomes 58,380,057.00
Economic and Technological Development Zone
VAT deduction 18,785,891.57 Other incomes 18,785,891.57
Subsidy for investment promotion 13,573,925.31 Other incomes 13,573,925.31
Small and medium enterprises supporting funds from
Hebei Linzhang Economic Development Zone 7,481,992.00 Other incomes 7,481,992.00
Administration Committee
Subsidies of 2018 for several policies of fastening
the construction of modern powerful industrial cities
3,440,000.00 Other incomes 3,440,000.00
and supporting the transformation, upgrading and
development of the park
Funds for construction of Wuguchun spirit room 2,700,000.00 Other incomes 2,700,000.00
163
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Subsidy for energy conservation, emission reduction
2,117,200.00 Other incomes 2,117,200.00
and technological innovation
Funds for supporting the settlement of enterprises
1,996,900.00 Other incomes 1,996,900.00
with zero-balance accounts
Subsidy for increment of gas consumption 1,555,000.00 Other incomes 1,555,000.00
Special fund for talent development 1,547,600.00 Other incomes 1,547,600.00
Project of overall upgrading of the one-core
dual-band RFID anti-counterfeit package,
technological upgrading of production line, and the 1,200,000.00 Other incomes 1,200,000.00
research, development, design and application of
new environment-friendly packaging materials
Rewards to executives 769,100.00 Other incomes 769,100.00
Refund of charges of individual income tax 673,812.10 Other incomes 673,812.10
Industrial development funds of 2018 650,000.00 Other incomes 650,000.00
Subsidy for the standard construction of green Yibin
650,000.00 Other incomes 650,000.00
of 2018
Other fragmentary government subsidy 367,431.71 Other incomes 367,431.71
Total 427,765,159.69 130,434,159.51
(2) Return of government subsidies
□ Applicable √ Not applicable
VIII. Changes in consolidation scope
1. Business combination involving enterprises not under the same control
There is no business combination involving enterprises not under the same control.
2. Business combination involving enterprises under the same control
There is no business combination involving enterprises under the same control.
3. Counter purchase
There is no subsidiary acquired by counter purchase during the reporting period.
4. Disposal of subsidiary
There is no disposal of subsidiary during the reporting period.
5. Changes in consolidation scope for other reasons
Explain the changes in consolidation scope for other reasons (such as, establishment of new
subsidiary, liquidation of subsidiaries, etc.) and relevant information:
On June 20, 2019, the Company and Wuliangye Group, as reviewed and approved by the fifth
board of directors of the Company, jointly funded and established "Wuliang NongXiang Series Baijiu
Yibin Co., Ltd.", of which the registered capital was RMB 100 million. The Company contributed RMB 95
million, taking up 95% of the registered capital; Wuliangye Group contributed RMB 5 million, taking up 5%
of the registered capital; and Wuliang NongXiang Series Baijiu Yibin Co., Ltd. is included in the
consolidation scope of the Company since its establishment.
IX. Interests in other entities
1. Interests in subsidiaries
(1) Compositions of the Group
Primary Shareholding proportion
Registered Nature of Way of
Name of subsidiary business
address business Directly Indirectly acquisition
place
Sichuan Yibin Wuliangye Winery Co., Ltd. Yibin Yibin Manufacturing 99.00% 0.99% Establishment
Yibin Wuliangye Liquor Sales Co., Ltd. Yibin Yibin Business 95.00% Establishment
Yibin Wuliang Tequ and Touqu Brand Marketing
Yibin Yibin Business 95.00% Establishment
Co., Ltd.
. Yibin Yibin Business 95.00% Establishment
164
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Yibin Wuliangye Series Liquor Brand Marketing
Yibin Yibin Business 95.00% Establishment
Co., Ltd.
Sichuan Yibin Wuliangye Supply and Marketing
Yibin Yibin Business 99.00% 0.95% Establishment
Co., Ltd.
Yibin Jiangjiu Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Sichuan Yibin Wuliangye Environmental
Yibin Yibin Manufacturing 51.00% Establishment
Protection Co., Ltd.
Business
combination
involving
Sichuan Jinwuxin Technology Co., Ltd. Yibin Yibin Business 51.00%
enterprises not
under the same
control
Sichuan Jiebeike Environmental Technology Co.,
Yibin Yibin Engineering 26.01% Establishment
Ltd.
Yibin Changjiangyuan Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin Changjiangyuan Trade Co., Ltd. Yibin Yibin Business 100.00% Establishment
Yibin Changjiangyuan Brewery Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin Wuliangye Organic Agriculture
Yibin Yibin Agriculture 100.00% Establishment
Development Co., Ltd.
Yibin Wuliangye Xianlin Ecological Liquor Co.,
Yibin Yibin Manufacturing 90.00% Establishment
Ltd.
Yibin Xianlin Liquor Marketing Co., Ltd. Yibin Yibin Business 90.00% Establishment
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. Yibin Yibin Business 42.30% Establishment
Sichuan Yibin Wuliangye Jingmei Printing Co.,
Yibin Yibin Manufacturing 97.00% 1.53% Establishment
Ltd.
Yibin Xinxing Packaging Co., Ltd. Yibin Yibin Business 98.53% Establishment
Business
combination
Sichuan Yibin Plastic Packaging Materials involving
Yibin Yibin Manufacturing 100.00%
Company Limited enterprises not
under the same
control
Business
combination
Sichuan Yibin Global Group Shenzhou Glass involving
Yibin Yibin Manufacturing 100.00%
Co., Ltd. enterprises not
under the same
control
Business
combination
Sichuan Yibin Global Gelasi Glass Manufacturing involving
Yibin Yibin Manufacturing 100.00%
Co., Ltd. enterprises not
under the same
control
Business
combination
involving
Sichuan Yibin Push Group 3D Co., Ltd. Yibin Yibin Manufacturing 100.00%
enterprises not
under the same
control
Guangdong Foshan Plastic Packaging Materials
Foshan Foshan Manufacturing 100.00% Establishment
Company Limited
Sichuan Yibin Wuliangye Investment (Consulting)
Yibin Yibin Investment 95.00% Establishment
Co.,Ltd.
Cultural
Wuhou Cultural Development Co., Ltd. Beijing Beijing 70.30% Establishment
industry
Yibin Zhenwushan Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin Shiji Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Yibin Cuipingshan Liquor Co., Ltd. Yibin Yibin Manufacturing 100.00% Establishment
Wuliangye Dashijie (Beijing) Trade Co., Ltd. Beijing Beijing Business 95.00% Establishment
Handan Yongbufenli Liquor Co., Ltd. Handan Handan Manufacturing 51.00% Establishment
Linzhang Desheng Wine Trade Co., Ltd. Handan Handan Business 51.00% Establishment
165
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Handan Yongbufenli Sales Co., Ltd. Handan Handan Business 51.00% Establishment
Business
combination
involving
Huaibin Wubin Consultation Service Co., Ltd. Huaibin Huaibin Consultation 100.00%
enterprises not
under the same
control
Wuguchun Jiu Ye Co., Henan. China Business
combination
involving
Huaibin Huaibin Manufacturing 11.03% 40.00%
enterprises not
under the same
control
Huaibin Tenglong Trade Co., Ltd. Huaibin Huaibin Business 51.03% Establishment
WU JIU YE SALES CO., HENAN. China Huaibin Huaibin Business 51.03% Establishment
Sichuan Wuliangye Culture Tourism Tourism
Yibin Yibin 80.00% Establishment
Development Co., LTD industry
Tourism
Sichuan Wuliangye Tourist Agency Co., Ltd. Yibin Yibin 80.00% Establishment
industry
Yibin Wuliangye Creart Co., Ltd. Yibin Yibin Business 45.00% Establishment
Wuliang NongXiang Series Baijiu Yibin Co., Ltd. Yibin Yibin Business 95.00% Establishment
Note on the difference between shareholding proportion and proportion of votes 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 Creart Company, of which the registered capital
is RMB 100 million. The Company contributes RMB 45 million, taking up 45% of the registered capital.
On December 9, 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 February 23, 2018, Changjiang
Growth Capital Co., Ltd. transfered 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 July 16, 2018, Beijing Sparkle Investment
Co., Ltd. transfered 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 right 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:
1. 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 Creart Company, of which the registered capital
is RMB 100 million. The Company contributes RMB 45 million, taking up 45% of the registered capital.
On December 9, 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 February 23, 2018, Changjiang
Growth Capital Co., Ltd. transfered 11% of the equity to Shanghai Yue Shan Investment Management
Co., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; as
166
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
resolved by the shareholder meeting of Creart Company on July 16, 2018, Beijing Sparkle Investment
Co., Ltd. transfered 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 right at shareholder
meetings of Creart Company, and therefore it is included in the consolidated statements.
2. On October 26, 2015, as reviewed and adopted by the 10th meeting of the 5th board of
directors of the Company: Sichuan Yibin Wuliangye Group Xianlin Fruit Wine Co., Ltd. (which had been
renamed as Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. in 2019), a controlling subsidiary of the
Company and contributing RMB 14.1 million (taking up 47% of the equity), Yibin Guotai Commerce and
Trade Co.,Ltd. (which is now Yibin Guotai Supply Chain Management Co., Ltd.) and contributing RMB
11.4 million (taking up 38% of the equity), and Guangzhou Jude Trade Co., Ltd., contributing RMB 4.5
million (taking up 15% of the equity), jointly established “Yibin Wuliangye Xinshengdai Liquor Co., Ltd.”
(Hereinafter referred to as “Xinshengdai Company”), of which the registered capital is RMB 30 million.
Registration of Xinshengdai Company was completed on July 11, 2016. Its registered capital is RMB 30
million. The board of directors of Xingshengdai Company consists of 5 directors. The Company holds 2/3
of the voting rights in it, and therefore it is included in the consolidated statements.
167
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Important non-wholly owned subsidiaries
Unit: RMB
Minority shareholders Current profits and losses
Current dividends declared to
Name of subsidiary attributable to minority Ending balance of minority equity
Shareholding proportion minority shareholders
shareholders
Yibin Wuliangye Liquor Sales Co.,
5.00% 764,461,060.81 543,507,232.77 1,056,336,282.57
Ltd.
(3) Main financial information of important non-wholly owned subsidiaries
Unit: RMB
Ending balance
Name of subsidiary Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
43,177,094,335.69 670,748,625.90 43,847,842,961.59 23,011,738,027.70 23,011,738,027.70
Beginning balance
Yibin Wuliangye Liquor Sales Co.,
Ltd. Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
34,929,294,074.18 600,928,478.35 35,530,222,552.53 19,113,194,179.56 19,113,194,179.56
Unit: RMB
Amount in current period
Name of subsidiary Cash flows from operating
Operating revenue Net profit Total comprehensive income
activities
46,559,665,282.40 15,289,221,216.27 15,289,221,216.27 17,588,142,720.27
Amount in previous period
Yibin Wuliangye Liquor Sales Co., Ltd. Cash flows from operating
Operating revenue Net profit Total comprehensive income
activities
37,922,906,848.69 12,077,843,810.83 12,077,843,810.83 10,246,872,045.32
168
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
2. Interests in joint venture arrangement or associates
(1) Important joint ventures or associates
Shareholding Accounting
Primary proportion treatment of
Registered
Name of joint venture or associate business Nature of business investment in
address
place Directly Indirectly joint ventures or
associates
Oriental Outlook Media Co., Ltd. Beijing Beijing Advertising industry 49.00% Equity method
Sichuan Yibin Wuliangye Group
Yibin Yibin Financial industry 36.00% Equity method
Finance Co., Ltd.
Yibin Jiamei Intelligent Packaging Packaging and
Yibin Yibin 48.28% Equity method
Co., Ltd. printing industry
(2) Main financial information of important associates
Unit: RMB
Ending balance/Amount in current Beginning balance/Amount in previous
period period
Sichuan Yibin Wuliangye Group Sichuan Yibin Wuliangye Group
Finance Co., Ltd. Finance Co., Ltd.
Total assets 47,753,623,863.80 30,371,515,738.92
Total liabilities 44,990,128,067.29 27,855,582,546.77
Equity attributable to the shareholders
2,763,495,796.51 2,515,933,192.15
of parent company
Share of net assets calculated
according to the shareholding 994,858,486.74 905,735,949.18
proportion
Book value of equity investment in
994,858,486.74 905,735,949.18
associates
Operating revenue 458,658,749.74 472,863,619.21
Net profit 247,562,604.36 298,813,630.79
Total comprehensive income 247,562,604.36 298,813,630.79
Dividends received from associates in
36,000,000.00
current year
(3) Main financial information of unimportant joint ventures and associates
Unit: RMB
Ending balance/Amount in current Beginning balance/Amount in previous
period period
Associates: -- --
Total book value of investments 26,920,244.84 13,742,029.36
Total amount of the following items
-- --
calculated by shareholding proportion
--Net profit 3,378,215.48 -6,708,352.03
--Total comprehensive income 3,378,215.48 -6,708,352.03
3. Interests in the structured entity that is not included in the consolidated financial statements
Note on structured entity that is not included in the consolidated financial statements: None
169
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
X. Related parties and related transactions
1. Note on parent company of the Company
Shareholding ratio Proportion of votes
Registered Nature of of the parent of the parent
Name of parent company Registered capital
address business company in the company in the
Company Company
Yibin State-Owned Assets
Yibin Investment RMB 1,390 million 35.21% 35.21%
Operation Co., Ltd.
Note on parent company of the Company:
Yibin State-Owned Assets Operation 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
Cheng and its registered capital is RMB 1,390 million. 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 State-Owned Assets Operation 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 a investment and
financing platform of the People’s Government of Yibin City, and investing in such projects by
shareholding and holding; third, promoting the maintenance and appreciation of the value of
state-owned assets and economic development of the city by capital management and assets
management.
Yibin State-Owned Assets Operation Co., Ltd., by administrative transfer of state-owned assets,
holds 100% of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls
2,128,371,363.00 shares of the Company directly or indirectly, taking up 54.83% of the total capital stock
of the Company.
The State-owned Assets Supervision and Administration Commission of Yibin Municipal
Government is the ultimate controller of the Company.
2. Note on subsidiaries of the Company
Refer to the Note “IX. Interests in other entities” for information about subsidiaries of the Company.
3. Note on joint ventures and associates of the Company
Refer to the Note “IX. Interests in other entities” for information about important joint ventures and
associates of the Company.
Other associates or joint ventures that conducted related party transactions with the Company in
current period, or formed the balance of related party transactions with the Company in the previous
periods are as follows:
Name of joint venture or associate Relationship with the Company
Oriental Outlook Media Co., Ltd. Associates
Sichuan Yibin Wuliangye Group Finance Co., Ltd. Associates
Yibin Jiamei Intelligent Packaging Co., Ltd. Associates
4. Note on other related parties
Relationship between other related parties and the
Names of other related parties
Company
Legal representative of the Company concurrently serves
as the President (General Manager of Wuliangye Group),
Sichuan Yibin Wuliangye Group Co., Ltd. and some directors and officers of the Company currently
hold positions in Wuliangye Group; directly holding 19.63%
equities of the Company
Sichuan Anji Logistic Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
170
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Yibin Anji Logistic Group Shenzhou Transportation Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Yibin Wuliangye Group I&E Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Push Group 3D Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Huanyu Trade Co. Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Push Mold Co., Ltd. Subsidiaries of Push Group Company
Sichuan Push Acetati Company Limited Subsidiaries of Push Group Company
Sacred Mountain Molin Group Co., Ltd., Sichuan Subsidiaries of Wuliangye Group
Sacred Garments & Home-Tex Co.,Ltd. Yibin, Sichuan Subsidiaries of Sacred Mountain Molin Company
Yibin Shengdi Trade Co. Ltd. Subsidiaries of Sacred Mountain Molin Company
Yibin Jinlong Trade Development Corporation Subsidiaries of Wuliangye Group
Sichuan Yibin Global Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Licai Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. Subsidiaries of Global Group Company
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. Subsidiaries of Wuliangye Group
Sun Display Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Global Photoelectric Energy Conservation Technology
Subsidiaries of Global Group Company
Co., Ltd.
Sichuan Yibin Push Drive Co., Ltd. Subsidiaries of Push Group Company
Chengdu PUTH Medical Plastics Packaging Co., Ltd. Subsidiaries of Push Group Company
Sichuan Yibin Push Building Materials Co., Ltd. Subsidiaries of Push Group Company
Zhanjiang North Push Internal Development Co., Ltd. Subsidiaries of Push Group Company
Sichuan Yibin Push Auto Parts Co., Ltd. Subsidiaries of Push Group Company
Push Information & Automation (Chengdu) Co., Ltd. Subsidiaries of Push Group Company
Chengdu Global Special Glass Manufacturing Co., Ltd. Subsidiaries of Global Group Company
Sichuan Zhongke Better Technology Co., Ltd. Subsidiaries of Global Group Company
Sichuan Chengdu Push Electromechanical Technology
Subsidiaries of Push Group
Research Co., Ltd.
Sichuan Yibin Wuliangye Group Anji Logistic Shipping Co.,
Subsidiaries of Anji Logistic Group Co., Ltd.
Ltd.
Yibin Ansage International Logistic Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Yibin Ansage Auto Service Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Sichuan Yibin Weilisi Float Glass Manufacturing Co., Ltd. Subsidiaries of Global Group Company
Sichuan Yibin Wuliangye Group Ecological Brewery and
Subsidiaries of Wuliangye Group
Marketing Co., Ltd.
Sichuan Haida Rubber Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Tyre Rubber (Group) Co., Ltd. Subsidiaries of Haida Group Company
Sichuan Yibin Push Intelligent Technology Co., Ltd. Subsidiaries of Push Group Company
Sichuan Baiweiyuan Food Co., Ltd. Subsidiaries of Wuliangye Group
Chengdu Baiweiyuan Co., Ltd. Subsidiaries of Baiweiyuan
PUSH NINGJIANG MACHINE TOOL CO.,LTD. Subsidiaries of Push Group Company
Chengdu Huayu Glass Manufacturing Co., Ltd. Subsidiaries of Global Group Company
Chengdu Ningjiang Machine Tool Sales Co., Ltd. Subsidiaries of Push Group Company
Yibin Push Linko Technology Co., Ltd. Subsidiaries of Push Group Company
171
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sichuan Putian Times Technology Co., Ltd. Subsidiaries of Push Group Company
Sichuan Sacred Mountain Hechang Clothing Co., Ltd. Subsidiaries of Sacred Mountain Molin Company
Chengdu Sacred Mountain Clothing Company Subsidiaries of Sacred Mountain Molin Company
Yibin Push Assets Management Co., Ltd. Subsidiaries of Push Group Company
Sichuan Ansage Supply Chain Management Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Sichuan Andaxin Logistic Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Yibin Global Energy Conservation Service Co., Ltd. Subsidiaries of Global Group Company
Yibin Wuliangye Ecological Brewing Co., Ltd. Subsidiaries of Health Wine Group Company
Chengdu Push Automobile Mold Co., Ltd. Subsidiaries of Push Group Company
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. Subsidiaries of Wuliangye Group
Chengdu Puchuan Biomaterials Corporation Subsidiaries of Push Group Company
Yibin Jitai Automobile Sales & Service Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Wuming Tea Industry Holding Co., Ltd. Subsidiaries of Wuliangye Group Fund Company
Sichuan Linhu Tea Co., Ltd. Subsidiaries of Wuliangye Group Fund Company
Yibin Leitian Agricultural Development Co., Ltd. Subsidiaries of Wuliangye Group Fund Company
Sichuan Huansheng Pharmacy Co., Ltd. Subsidiaries of Yibin Medicine
Sinopharm Group Yibin Medicine Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Paper Industry Co., Ltd. Subsidiaries of Wuliangye Group
5. Related transactions
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: RMB
Whether
Transaction
Content of related Amount in current exceed the Amount in
Related parties quota
transaction period transaction previous period
approved
quota
Sichuan Yibin Global Group Tianwo
Raw materials, etc. 301,983,377.21 270,592,103.32
Trade Co., Ltd.
Yibin Shengdi Trade Co. Ltd. Packing materials 174,572,272.41 200,245,417.69
Yibin Jinlong Trade Development
Raw materials, etc. 290,706,070.30 140,555,177.69
Corporation
Sichuan Yibin Push Mold Co., Ltd. Molds, raw materials, etc. 109,798,846.35 43,753,936.82
Chengdu PUTH Medical Plastics
Raw materials 60,424,484.53 80,735,190.83
Packaging Co., Ltd.
RFID anti-counterfeit labels,
Sichuan Yibin Push Group 3D Co., Ltd. 56,232,156.94 74,458,756.32
etc.
Chengdu Wu Liang Ye Grand Hotel Co.,
Liquors 30,479,352.83 1,613,275.98
Ltd.
Sacred Mountain Molin Group Co., Ltd.,
Uniform of exclusive shop 26,945,284.35
Sichuan
Sichuan Yibin Push Drive Co., Ltd. Raw materials, etc. 23,294,806.98 34,745,347.66
Sacred Mountain Molin Group Co., Ltd., Labor protection appliances,
24,336,543.65
Sichuan etc.
Chengdu Huayu Glass Manufacturing
Raw materials 21,183,258.71 1,024,746.54
Co., Ltd.
Labor protection appliances,
Yibin Shengdi Trade Co. Ltd. 16,696,955.69 46,333,353.57
etc.
Sichuan Putian Times Technology Co.,
Slices, paper, etc. 11,196,877.60 20,591,824.63
Ltd.
Labor protection appliances,
Wuming Tea Industry Holding Co., Ltd. 7,222,346.19
etc.
Yibin Wuliangye Group I&E Co., Ltd. Liquors 1,478,570.01 4,016,738.99
172
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Yibin Ansage Auto Service Co., Ltd. Gasoline 1,507,849.01 2,127,027.63
Sacred Garments & Home-Tex Co.,Ltd.
Raw materials, etc. 1,478,897.85 137,456.65
Yibin, Sichuan
Sichuan Huansheng Pharmacy Co., Ltd. Medicine 1,437,983.40
Sichuan Yibin Push Building Materials
Raw materials, etc. 650,635.50 4,331,717.61
Co., Ltd.
Yibin Global Energy Conservation
Oxygen 594,774.05 3,657,643.70
Service Co., Ltd.
Yibin Global Photoelectric Energy
Raw materials, etc. 110,639.79 525,635.33
Conservation Technology Co., Ltd.
Sichuan Ansage Supply Chain
Grains 36,034,759.17
Management Co., Ltd.
Henan Anhuai Grain Industry Co., Ltd. Grains 11,970,731.15
Yibin Ansage International Logistic Co.,
Liquors 4,395,772.50
Ltd.
Zhanjiang North Push Internal
Raw materials 1,743,589.74
Development Co., Ltd.
Fragmentary materials, labor
Yibin Ansage Auto Service Co., Ltd. 457,969.42
protection appliances, etc.
Sichuan Yibin Wuliangye Group Health
Liquor supplies, etc. 273,583.33
Wine Co., Ltd.
Chengdu Global Special Glass
Raw materials 80,209.74
Manufacturing Co., Ltd.
Sub-total of other fragmentary related
1,317,285.93 1,028,812.89
procurement
Total related procurement 1,163,649,269.28 985,430,778.90
Freight and miscellaneous
Sichuan Anji Logistic Group Co., Ltd. expenses, external labor 536,072,363.11 417,966,923.29
cost, etc.
Freight and miscellaneous
Sichuan Yibin Wuliangye Group Anji
expenses, company bus 17,028,929.67 31,027,950.97
Logistic Co., Ltd.
expenses, etc.
Sichuan Yibin Push Intelligent
Maintenance cost, etc. 8,903,084.34 19,713,844.60
Technology Co., Ltd.
Chengdu Wu Liang Ye Grand Hotel Co.,
Publicity expense, etc. 5,406,017.06
Ltd.
Yibin Global Energy Conservation
Wastewater treatment, etc. 2,973,218.40
Service Co., Ltd.
Freight and miscellaneous
Yibin Ansage Auto Service Co., Ltd. expenses, maintenance, 3,438,785.56 1,732,210.00
vehicle cost, etc.
Yibin Push Linko Technology Co., Ltd. Maintenance cost 1,607,648.75 1,455,359.22
Sichuan Ansage Supply Chain Freight and miscellaneous
1,291,498.45 2,332,748.31
Management Co., Ltd. expenses
Sacred Garments & Home-Tex Co.,Ltd.
Printing and production cost 1,180,111.07
Yibin, Sichuan
Yibin Ansage International Logistic Co., Freight and miscellaneous
408,600.84 684,700.51
Ltd. expenses, etc.
Sichuan Yibin Push Mold Co., Ltd. Maintenance cost, etc. 764,669.97 3,903,408.28
Sichuan Yibin Wuliangye Group Anji Freight and miscellaneous
1,468,893.13
Logistic Shipping Co., Ltd. expenses
Chengdu Huayu Glass Manufacturing
Labor cost 4,455,308.75
Co., Ltd.
Yibin Ansage Auto Service Co., Ltd. Publicity expense 568,030.23
Yibin Global Photoelectric Energy
Maintenance cost 166,833.02 555,886.11
Conservation Technology Co., Ltd.
Chengdu PUTH Medical Plastics Outsourced processing fee,
502,517.51
Packaging Co., Ltd. etc.
Sub-total of other fragmentary services
495,604.90 988,149.88
received
Total services received 579,737,365.14 487,355,930.79
Related transaction of purchases of goods and acceptance of services
Note 1: On January 1, 2018, the Company and Yibin Shengdi Trade Co. Ltd. entered into the Labor
Protection Appliances and Packing Bags Supply Agreement, according to which the latter shall supply
products to the Company based on its needs for production and operation. The Company conducts
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
acceptance for all agreement products which actually delivered according to the Agreement; the actual
quantity received of the packing bags provided by Shengdi Company is the qualified quantity after the
production and use by the Company, and the actual quantity received of the labor protection appliances
is the quantity accepted by the Company. The settlement shall be based on the actual quantity received
as determined by the Company. Price of the products supplied under the Agreement strictly complies
with the market price and shall not be higher than the price charged by Shengdi Company for providing
the products to any third party. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 2: On January 1, 2018, the Company and Yibin Jinlong Trade Development Corporation
entered into the Raw and Auxiliary Materials Supply Agreement, according to which the latter shall
supply raw and auxiliary materials to the Company at any time based on its needs for production and
operation. The Company warehouses and conducts acceptance for all agreement products which
actually delivered according to the Agreement; the actual quantity received is the qualified quantity after
the production and use. The products are paid at the market price. The Agreement is valid from January
1, 2018 to December 31, 2020.
Note 3: The Company and Sichuan Anji Logistic Group Co., Ltd. entered into the Logistics Service
Agreement, according to which the Company outsources the logistics business during the production
and operation to Anji Logistic Group. The scope of logistics business includes (loading and unloading,
handling, storage, and transportation of raw and auxiliary materials during the procurement logistics,
production logistics and sales logistics). Anji Group shall provide professional logistics service to ensure
the safety and timeliness of the products. The Agreement is valid from January 1, 2018 to December 31,
2020.
Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Group 3D Co., Ltd. entered into
the Anti-counterfeit Labels Supply Agreement, according to which the latter shall supply anti-counterfeit
labels to the Company at any time based on its needs for production and operation. The Company
warehouses and conducts acceptance for all agreement products which actually delivered according to
the Agreement; the actual quantity received is the quantity that passes the acceptance inspection. The
agreement products are paid at market price based on the actual qualified quantity of the packing
workshop of the Company. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 5: On January 1, 2018, the Company and Sichuan Yibin Push Mold Co., Ltd. entered into the
Mold Supply Agreement, according to which the latter shall supply molds to the Company at any time
based on its needs for production and operation. The Company warehouses and conducts acceptance
for all agreement products which actually delivered according to the Agreement; the actual quantity
received is the qualified quantity after the production and use. The products are paid at the market price.
The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 6: On January 1, 2018, the Company and Sichuan Yibin Push Drive Co., Ltd. entered into the
Injection Products Supply Agreement, according to which the latter shall supply products to the
Company at any time based on its needs for production and operation. The Company warehouses and
conducts acceptance for all agreement products which actually delivered according to the Agreement;
the actual quantity received is the qualified quantity after the production and use. The products are paid
at the market price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 7: On January 1, 2018, the Company and Sichuan Putian Times Technology Co., Ltd. entered
into the Supply Agreement of Container Bags, Boxes, Accessories, Raw and Auxiliary Materials,
according to which the latter shall supply container bags, boxes, accessories, raw and auxiliary materials
to the Company at any time based on its needs for production and operation. The Company warehouses
and conducts acceptance for all agreement products which actually delivered according to the
Agreement; the actual quantity received is the qualified quantity after the production and use by the
Company. The products are paid at the market price. The Agreement is valid from January 1, 2018 to
December 31, 2020.
Note 8: The Company and Sichuan Yibin Global Group Tianwo Trade Co., Ltd. entered into the
Cooperation Agreement, according to which the latter shall supply base paper, raw materials for glass,
labor protection appliances, auxiliary materials, and other materials to the Company based on its needs
for production and operation. Price of the products is determined by the market price through negotiation
and confirmed by contract. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 9: On January 1, 2018, the Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd.
entered into the Supply Agreement of Injection Products, Blister Products and Film Products, according
to which the latter shall supply products to the Company at any time based on its needs for production
174
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
and operation. The Company warehouses and conducts acceptance for all agreement products which
actually delivered according to the Agreement; the actual quantity received is the qualified quantity after
the production and use. The products are paid at the market price. The Agreement is valid from January
1, 2018 to December 31, 2020.
Note 10: On August 6, 2019, the Company and Sacred Mountain Molin Group Co., Ltd., Sichuan
entered into the Procurement Contract of Salesman Uniform for Wuliangye Exclusive Shop, according to
which the latter shall supply a batch of salesman uniforms for Wuliangye exclusive shops to the
Company. Settlement shall be based on the quantity actually delivered. The product price consists of
expenses (tax inclusive) of the goods related to materials, manufacturing, packing, transportation,
inspection, and acceptance incurred before delivery, and those of the maintenance services and spare
parts during the warranty period and other relevant items.
Statement of sales of goods/provision of services
Unit: RMB
Content of related Amount in current Amount in previous
Related parties
transaction period period
Yibin Wuliangye Group I&E Co., Ltd. Liquor products 652,880,429.95 715,766,573.69
Bottle caps, slices,
Sichuan Putian Times Technology Co., Ltd. 191,905,219.10 252,780,516.68
etc.
Sichuan Yibin Push Auto Parts Co., Ltd. Raw materials, etc. 75,061,728.49
Chengdu PUTH Medical Plastics Packaging Slices, coiled
51,564,215.88 66,978,102.10
Co., Ltd. materials, etc.
Sichuan Yibin Global Group Tianwo Trade Co., Glass bottles, paper
57,930,524.81 3,624,383.37
Ltd. products, etc.
Yibin Jinlong Trade Development Corporation Lactic acid 47,502,991.20
Sichuan Yibin Global Group Tianwo Trade Co., Industrial sodium
37,516,574.09 3,730,065.14
Ltd. carbonate
Sichuan Yibin Global Group Co., Ltd. Raw materials, etc. 28,853,048.01
Sichuan Yibin Global Group Tianwo Trade Co.,
Slices 28,286,548.75
Ltd.
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. Liquor products 27,523,335.87 89,429,112.08
Sichuan Yibin Push Drive Co., Ltd. Slices, etc. 22,399,640.97 24,701,982.94
Sichuan Sacred Mountain Hechang Clothing
Plastic products 18,004,711.29 21,408,586.54
Co., Ltd.
Sichuan Yibin Wuliangye Group Ecological
Liquor products 16,286,898.80 93,551,948.14
Brewery and Marketing Co., Ltd.
Sichuan Yibin Push Building Materials Co., Ltd. Slices, etc. 15,991,958.85 33,859,217.64
Cartons, glass bottles,
Chengdu Huayu Glass Manufacturing Co., Ltd. 14,907,215.21 18,000,848.73
etc.
Sacred Garments & Home-Tex Co.,Ltd. Yibin,
Hang tags, labels, etc. 7,907,456.49 9,486,111.04
Sichuan
Yibin Jinlong Trade Development Corporation Liquor products 7,870,256.50 1,283,015.48
Yibin Huanyu Trade Co. Ltd. Liquor products 6,626,332.05 8,705,848.56
Sichuan Yibin Global Group Tianwo Trade Co.,
Coal 5,387,532.19 25,288,327.96
Ltd.
Yibin Jinlong Trade Development Corporation Mixed grains, DDGS 4,004,260.39 3,578,166.77
Sichuan Yibin Wuliangye Group Ecological Bottle caps, packing
3,713,386.76 5,585,316.28
Brewery and Marketing Co., Ltd. boxes, etc.
Sichuan Linhu Tea Co., Ltd. Liquor products 1,811,362.84
Push Information & Automation (Chengdu) Co., Bottle caps, glass
1,073,093.87 2,865,375.88
Ltd. bottles, etc.
Yibin Leitian Agricultural Development Co., Ltd. Liquor products 1,015,752.21
Yibin Wuliangye Ecological Brewing Co., Ltd. Paper products 822,205.32 1,941,370.22
Sun Display Co., Ltd. Steam, etc. 806,692.32 777,618.96
175
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Sichuan Yibin Wuliangye Group Health Wine
Liquor products 565,230.53 97,688,287.32
Co., Ltd.
Wuming Tea Industry Holding Co., Ltd. Liquor products 632,792.69
Sichuan Yibin Wuliangye Group Co., Ltd. Liquor products, etc. 542,768.10 465,934.01
Wastewater
Yibin Push Linko Technology Co., Ltd. 535,218.99 502,658.51
treatment, etc.
Sichuan Yibin Push Mold Co., Ltd. Plastic products 531,795.45 679,915.51
PUSH NINGJIANG MACHINE TOOL CO.,LTD. Liquor products 530,973.45 517,241.38
Wastewater
Sichuan Yibin Push Auto Parts Co., Ltd. 461,382.07 427,386.04
treatment, etc.
Sinopharm Group Yibin Medicine Co., Ltd. Liquor products 526,341.62
Wastewater
Chengdu Push Automobile Mold Co., Ltd. 486,638.80 393,731.33
treatment, etc.
Sichuan Linhu Tea Co., Ltd. Packing materials 477,876.11
Yibin Wuliangye Group I&E Co., Ltd. Sheets, sundries, etc. 462,595.80 206,432.39
Wastewater
Sichuan Yibin Push Building Materials Co., Ltd. 425,882.28 427,194.42
treatment, etc.
Yibin Paper Industry Co., Ltd. Paper products 350,401.70
Sichuan Yibin Wuliangye Group Anji Logistic
Sundries, etc. 314,273.67 467,332.45
Co., Ltd.
Yibin Wuliangye Ecological Brewing Co., Ltd. Steam 275,691.26 440,017.00
Sichuan Yibin Push Group 3D Co., Ltd. Liquor products 155,778.51 574,465.81
Chengdu Puchuan Biomaterials Corporation Slices and bottle caps 133,791.16 558,222.83
Sichuan Push Acetati Company Limited Raw materials, etc. 125,985.74 1,724,236.91
Sheets, rolled
Sichuan Yibin Push Group 3D Co., Ltd. materials, laser film, 57,559.00 2,039,166.27
etc.
Sichuan Yibin Global Group Co., Ltd. Liquor products 26,666.28 698,146.86
Sichuan Tyre Rubber (Group) Co., Ltd. Liquor products 7,964.60 1,344,827.58
Yibin Huanyu Trade Co. Ltd. Chuan-shaped tray 2,905,351.90
Yibin Wuliangye Ecological Brewing Co., Ltd. Liquor products 744,175.51
Chengdu Sacred Mountain Clothing Company Paper products 157,986.71
Other fragmentary sales 1,765,907.27 1,777,217.89
Total 1,337,046,887.29 1,498,082,416.83
Related transaction of sales of goods and provision of services
Note 1: On January 1, 2018, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered into the
Export Commodities Purchase and Sales Agreement. The price of the agreement products supplied by
the Company to I&E Company is floating. The supply price (tax exclusive) is 70%-73% of the average
selling price per bottle of I&E Company in the previous month. According to the Agreement, I&E
Company shall give the Company prior written notice of specific requirements for specification, model,
packaging, anti-counterfeit label, quantity, and delivery term of the Wuliangye series products according
to the demands of the international market, and prepay 60% of the purchase price to the Company. The
Company shall organize the production and supply Wuliangye series liquor products in a timely manner
according to the export demands of I&E Company. The Agreement is valid from January 1, 2018 to
December 31, 2020.
Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Ecological Brewery
and Marketing Co., Ltd. entered into the Base Liquor Purchase and Sales Agreement, according to
which the latter shall give the Company prior written notice of the specific requirements for the quantity
and date of delivery of the base liquor according to the market demands. The Company shall supply the
176
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
agreement products according to the needs for production and operation of the Ecological Brewery
Company. The price for supply of the agreement products shall strictly comply with the market price and
paid before delivery. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 3: The Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd. entered into the
Framework Contract, according to which the latter shall procure raw materials, packaging products,
spare parts, and other production materials from the Company based on its needs for production and
operation. The product price consists of the factory price of materials, packing expenses, and various
testing fees of the material, profits, taxes and other expenses. Refer to terms of payment as specified in
specific sales contract for settlement of the purchase price. The Agreement is valid from January 1, 2018
to December 31, 2020.
Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Building Materials Co., Ltd.
entered into the Framework Contract, according to which the latter shall procure raw materials,
packaging products, spare parts, and other production materials from the Company. The product price
consists of the factory price of materials, packing expenses, and various testing fees of the material,
profits, taxes and other expenses. Refer to terms of payment as specified in specific sales contract for
settlement of the purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 5: On January 1, 2018, the Company and Yibin Jinlong Trade Development Corporation
entered into the Commodity Purchase and Sales Agreement, according to which the latter shall
communicate with the Company about consumption of the agreement products in a timely manner, and
the Company shall ensure timely supply of the agreement products to satisfy the needs of Jinlong Trade
Company. Price for supply of the agreement products shall be based on the market price. The Company
shall give a one-week written notice of price adjustment in case of adjustment of the price of the
agreement product; Payment for supply of the agreement product which is actually occurred shall be
settled regularly. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 6: On January 1, 2018, the Company and Sichuan Yibin Push Drive Co., Ltd. entered into the
Framework Contract, according to which the latter shall procure raw materials, packaging products,
spare parts, and other production materials from the Company. The product price consists of the factory
price of materials, packing expenses, and various testing fees of the material, profits, taxes and other
expenses. Refer to terms of payment as specified in specific sales contract for settlement of the
purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 7: On January 22, 2018, the Company and Yibin Huanyu Trade Co. Ltd. entered into the
General Distributor Contract of “Jinqiaoxi” Series Liquor, according to which Huanyu Trade Company is
authorized as the nationwide general distributor of “Jinqiaoxi” series liquors of the Company. Both parties
shall finalize the design according to the new product design scheme provided by Huanyu Trade
Company and seal the samples, and then the Company shall organize the production. Payment shall be
made before delivery. The Agreement is valid from January 22, 2018 to December 25, 2020.
Note 8: On January 23, 2018, the Company and Sichuan Sacred Mountain Hechang Clothing Co.,
Ltd. entered into the Framework Contract, according to which the latter shall procure raw materials,
packaging products, spare parts, and other production materials from the Company. The product price
consists of the factory price of materials, packing expenses, and various testing fees of the material,
profits, taxes and other expenses. Refer to terms of payment as specified in specific sales contract for
settlement of the purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 9: The Company and Chengdu Huayu Glass Manufacturing Co., Ltd. entered into the
Cooperation Agreement, according to which the latter shall procure cartons, paper products, and glass
bottles from the Company and the Company shall make the procurement plan according to the
specification and quantity of the ordered products. The Company shall make calculation and quotation to
Huayu Company based on the planned type and carry out production and supply according to the plan
after the price is determined. The quantity shall be that of the products which are actually used and
warehoused after the arrival and acceptance. The Agreement is valid from January 1, 2018 to December
31, 2020.
Note 10: On January 22, 2018, the Company and Sichuan Putian Times Technology Co., Ltd.
entered into the Framework Contract, according to which the latter shall procure raw materials,
packaging products and other materials from the Company. The product price consists of the factory
price of materials, packing expenses, and various testing fees of the material, profits, taxes and other
expenses. Refer to terms of payment as specified in specific sales contract for settlement of the
purchase price. The Agreement is valid from January 1, 2018 to December 31, 2020.
177
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Related-party lease
The Company as the lessor:
Unit: RMB
Lease revenue
Type of leased Lease revenue recognized
Name of lessee recognized in previous
assets in current period
period
Chengdu PUTH Medical Plastics Packaging
Equipment 814,150.22
Co., Ltd.
Sichuan Yibin Push Building Materials Co.,
Warehouse 663,267.96 663,267.96
Ltd.
Sichuan Yibin Global Group Tianwo Trade
Buildings 375,599.99 24,642.86
Co., Ltd.
Houses and
Sichuan Putian Times Technology Co., Ltd. 303,326.53 142,742.12
warehouses
Yibin Global Photoelectric Energy
Buildings 226,285.72 142,993.25
Conservation Technology Co., Ltd.
Sichuan Anji Logistic Group Co., Ltd. Buildings 169,268.48
Sichuan Yibin Push Intelligent Technology
Equipment 57,142.86
Co., Ltd.
Sichuan Putian Times Technology Co., Ltd. Equipment 52,907.76 65,682.50
Sichuan Yibin Push Intelligent Technology
Buildings 28,436.65
Co., Ltd.
Chengdu Huayu Glass Manufacturing Co.,
Buildings 5,528.57 27,171.43
Ltd.
The Company as the lessee:
Unit: RMB
Rents recognized in Rents recognized in
Name of lessor Type of leased assets
current period previous period
Sichuan Yibin Wuliangye Group Co., Ltd. Land 296,558,180.00 296,558,180.00
Sichuan Anji Logistic Group Co., Ltd. Warehouse 39,453,231.04 47,369,747.05
Operation and
Sichuan Yibin Wuliangye Group Co., Ltd. 29,822,513.62 29,735,256.48
management areas
Sichuan Yibin Licai Group Co., Ltd. Buildings 15,512,748.60 15,512,748.60
Operation and
Sichuan Yibin Push Group 3D Co., Ltd. 6,715,238.10 6,715,238.10
management areas
Chengdu Huayu Glass Manufacturing Co.,
Equipment 4,289,229.22 1,966,163.65
Ltd.
Yibin Global Photoelectric Energy
Warehouse 3,349,628.67 2,426,766.75
Conservation Technology Co., Ltd.
Sichuan Yibin Global Group Co., Ltd. Warehouse 2,989,811.34 2,690,830.18
Yibin Push Assets Management Co., Ltd. Warehouse 2,941,500.95 1,907,855.24
Sichuan Andaxin Logistic Co., Ltd. Warehouse 2,867,086.53 5,351,148.12
Warehouses and
Yibin Push Linko Technology Co., Ltd. 2,345,358.51 1,933,924.54
houses
Sichuan Yibin Push Group 3D Co., Ltd. Warehouse 1,865,139.63 3,108,566.05
Yibin Global Photoelectric Energy
Equipment 1,534,759.71
Conservation Technology Co., Ltd.
Sichuan Yibin Global Group Tianwo Trade
Warehouse 1,228,525.72 1,433,280.01
Co., Ltd.
Yibin Push Linko Technology Co., Ltd. Equipment 768,000.00
Sichuan Yibin Wuliangye Group Anji
Warehouse 111,566.01
Logistic Co., Ltd.
Sichuan Ansage Supply Chain
Warehouse 44,719.64 664,717.82
Management Co., Ltd.
Sichuan Yibin Weilisi Float Glass
Equipment 14,455.75 67,015.69
Manufacturing Co., Ltd.
178
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Chengdu Huayu Glass Manufacturing Co.,
Buildings 195,816.96
Ltd.
Sichuan Anji Logistic Group Co., Ltd. Vehicles 151,834.95
Note on related-party lease
Note 1: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered
into three Land Lease Agreements, according to which Wuliangye Group leases three plots of land
owned by it to the Company. The leased areas are 2,315,349.08, 724,958.17 and 666,670.00 square
meters, with the annual rents of RMB 185.2279 million, RMB 57.9967 million and RMB 53.3336 million,
respectively, totaling RMB 296.5582 million. The lease term is from January 1, 2018 to December 31,
2020.
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, March 12, 2010), which stating that “the rent of RMB 50-110
per square meter per year for the industrial land in this area is consistent with prevailing land price of
Yibin”. The Company and Wuliangye Group determine the rent of leased land as RMB 80 per square
meter per year through mutual agreement.
Note 2: On January 1, 2018, 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
RMB 29.256 million. The lease term is from January 1, 2018 to December 31, 2020.
Note 3: On December 29, 2017, the Company and Sichuan Yibin Licai Group Co., Ltd. entered into
the Factory Building Lease Contract, according to which Licai Group leases the high-end product
workshop building (1F-5F) at its headquarter to the Company. The leased area is 20,557.30 square
meters, with the annual rent (tax inclusive) of RMB 16,288,386.00. The Agreement is valid from January
1, 2018 to December 31, 2020.
Note 4: On January 1, 2018, the Company and Sichuan Yibin Push Group 3D Co., Ltd. entered into
the Operation and Management Areas Lease Agreement, according to which Push Group leases its
office building located at No. 150, West Minjiang Road, Yibin and all office equipment in the office
building to the Company. The leased area is 6,536.70 square meters, with the annual rent of RMB 7.051
million. The lease term is from January 1, 2018 to December 31, 2020.
(3) Guarantee with related parties
The Company had no guarantee with related parties during the reporting period.
(4) Loans and borrowings with related parties
The Company had no loans and borrowings with related parties during the reporting period.
(5) Assets transfer and debt restructuring with related parties
There is no assets transfer and debt restructuring with related parties during the reporting period.
(6) Key management personnel remuneration
Unit: RMB ’0,000
Item Amount in current period Amount in previous period
Key management personnel
744.12 1,247.09
remuneration
(7) Other related transactions
① Procurement of equipment, etc.
Unit: RMB Yuan
Related parties Content of related transaction Amount in current Amount in previous
period period
Trademark and logo royalties
Sichuan Yibin Wuliangye Group Co., Ltd. 577,396,281.55 480,734,618.78
(Note 1)
Comprehensive service fee (Note
Sichuan Yibin Wuliangye Group Co., Ltd. 67,434,207.22 85,711,430.00
2)
179
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Trademark maintenance and
Sichuan Yibin Push Group 3D Co., Ltd. 9,433.96
patent fee
Sichuan Yibin Push Intelligent
Procurement of equipment 15,872,532.05 14,906,871.31
Technology Co., Ltd.
Yibin Global Energy Conservation No.4 Glass Kiln Gas Treatment
3,873,909.03
Service Co., Ltd. Project
Yibin Push Linko Technology Co., Ltd. Purchase of equipment 764,000.00 1,729,342.74
Chengdu PUTH Medical Plastics
Procurement of equipment 599,660.55 4,578,287.87
Packaging Co., Ltd.
Push Information & Automation
Procurement of equipment 474,641.40
(Chengdu) Co., Ltd.
Purchase of transportation
Yibin Ansage Auto Service Co., Ltd. 154,708.16 1,123,325.36
equipment
Sichuan Yibin Global Group Tianwo
Procurement of equipment 70,580.50
Trade Co., Ltd.
Yibin Wuliangye Group I&E Co., Ltd. Procurement of equipment 4,150,086.00
Sichuan Yibin Wuliangye Group Anji Purchase of transportation
1,636,767.74
Logistic Co., Ltd. equipment
Yibin Jitai Automobile Sales & Service Purchase of transportation
1,604,260.35
Co., Ltd. equipment
Yibin Global Photoelectric Energy Pipeline rectification project of the
1,435,725.54
Conservation Technology Co., Ltd. rain and sewage diversion project
Sichuan Zhongke Better Technology
Purchase of equipment 599,300.00
Co., Ltd.
Sichuan Putian Times Technology Co.,
Purchase of equipment 45,791.46
Ltd.
Yibin Push Assets Management Co.,
Procurement of equipment 255,770.63
Ltd.
Sichuan Yibin Global Group Tianwo
Selling of equipment 2,767.20
Trade Co., Ltd.
Note 1: On January 1, 2018, 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 1 factory emblem, the nonexclusive right of use of 8
trademarks, exclusive right of use of 130 trademarks, and unpaid exclusive right of use of 4 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 RMB 30,000 per ton and above shall be RMB 1,500 per ton; and that of
products with selling price at RMB 12,000 per ton and above but below RMB 30,000 per ton shall be
RMB 1,400 per ton; that of products with selling price below RMB 12,000 shall be RMB 1,300 per ton.
The Agreement is valid from January 1, 2018 to December 31, 2020.
Note 2: On January 1, 2018, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered
into the Comprehensive Service Agreement, according to which the latter shall provide the agreed
service to the Company by the quantity agreed by both parties from time to time. Both parties measure
the services at the actual cost, and the rate of increase of the unit cost price compared with the previous
year shall be no more than the inflation index of previous year plus 5% or the growth factor of consumer
price index of Sichuan Province, whichever is lower. The increase shall not be subject to the above limit
when the service scope is expanded, and the service shall still be measured at the actual cost of
provision of the service. The Agreement is valid from January 1, 2018 to December 31, 2020.
② Association relationship with Sichuan Yibin Wuliangye Group Finance Co., Ltd.
The Company signed the Financial Service Agreement and the Supplemental Agreement to the
Financial Service Agreement with the Finance Company on April 12, 2018 and March 20, 2019,
respectively. The main contents are loan and deposit services. Daily balance of deposits of the Company
with the Finance Company in 2019 was no more than RMB 32.9 billion, and the daily balance of loan in
2019 was no more than RMB 2.5 billion.
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Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
The total deposits of the Company with the Finance Company was RMB 32,405,107,434.58 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 the Finance Company are safe;
the current interest revenue is RMB 568,837,207.18 in total.
6. Receivables from and payables to related parties
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Project name Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Accounts
Sichuan Putian Times Technology Co., Ltd. 31,324,539.34 46,140,333.20
receivable
Accounts Sichuan Yibin Wuliangye Group Ecological
9,512,479.81
receivable Brewery and Marketing Co., Ltd.
Accounts Chengdu PUTH Medical Plastics Packaging Co.,
8,420,650.88
receivable Ltd.
Accounts
Chengdu Huayu Glass Manufacturing Co., Ltd. 3,779,810.70 4,479,320.27
receivable
Accounts Push Information & Automation (Chengdu) Co.,
709,868.22
receivable Ltd.
Accounts
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. 507,527.52
receivable
Accounts Sichuan Yibin Wuliangye Group Health Wine Co.,
319,302.00 301,709.76
receivable Ltd.
Accounts
Sichuan Yibin Push Group 3D Co., Ltd. 430,645.02
receivable
Accounts
Chengdu Puchuan Biomaterials Corporation 304,200.00
receivable
Prepayment Sacred Mountain Molin Group Co., Ltd., Sichuan 8,283,185.84
Prepayment Sichuan Anji Logistic Group Co., Ltd. 997,853.00 827,429.00
Prepayment Sichuan Yibin Push Drive Co., Ltd. 1,884,151.79
Prepayment Sichuan Yibin Push Intelligent Technology Co., Ltd. 314,700.00 923,000.00
Prepayment Yibin Ansage Auto Service Co., Ltd. 9,300.18 41,124.46
Prepayment Yibin Wuliangye Group I&E Co., Ltd. 1,228,373.04
Prepayment Chengdu Ningjiang Machine Tool Sales Co., Ltd. 405,000.00
Push Information & Automation (Chengdu) Co.,
Prepayment 275,292.00
Ltd.
Sichuan Ansage Supply Chain Management Co.,
Prepayment 16,597.48
Ltd.
Interest
Sichuan Yibin Wuliangye Group Finance Co., Ltd. 531,981,058.33 236,778,826.86
receivable
Other Sichuan Yibin Wuliangye Group Health Wine Co.,
480,000.00 100,000.00
receivables Ltd.
Other
Sichuan Anji Logistic Group Co., Ltd. 450,000.00 450,000.00
receivables
Other
Sichuan Putian Times Technology Co., Ltd. 250,000.00 250,000.00
receivables
Other
Chengdu Huayu Glass Manufacturing Co., Ltd. 200,000.00
receivables
Other
Yibin Wuliangye Ecological Brewing Co., Ltd. 122,727.27 122,727.27
receivables
Other Sacred Garments & Home-Tex Co.,Ltd. Yibin,
70,000.00 20,000.00
receivables Sichuan
Other
Sichuan Linhu Tea Co., Ltd. 50,000.00
receivables
Other
Sichuan Yibin Push Drive Co., Ltd. 7,016.11
receivables
Other
Oriental Outlook Media Co., Ltd. 1,000,000.00
receivables
Other
Sichuan Push Acetati Company Limited 141,169.23
receivables
(2) Payables
Unit: RMB
181
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Project name Related parties Ending book balance Beginning book balance
Accounts
Sichuan Yibin Push Group 3D Co., Ltd. 14,475,469.14 9,317,707.27
payable
Accounts
Sichuan Yibin Wuliangye Group Co., Ltd. 7,634,607.30
payable
Accounts Chengdu PUTH Medical Plastics Packaging
1,170,859.61 310,243.95
payable Co., Ltd.
Accounts Sichuan Ansage Supply Chain Management
334,704.03
payable Co., Ltd.
Accounts
Sichuan Anji Logistic Group Co., Ltd. 292,692.00 995,909.05
payable
Accounts Sichuan Yibin Push Intelligent Technology Co.,
235,712.98 1,048,057.39
payable Ltd.
Accounts
Sichuan Andaxin Logistic Co., Ltd. 182,250.00 182,250.00
payable
Accounts Chengdu Ningjiang Machine Tool Sales Co.,
180,000.00
payable Ltd.
Accounts Sichuan Yibin Wuliangye Group Anji Logistic
414,303.16 772,781.44
payable Co., Ltd.
Accounts
Sichuan Putian Times Technology Co., Ltd. 111,293.30 288,124.24
payable
Accounts Push Information & Automation (Chengdu) Co.,
55,058.40
payable Ltd.
Accounts Sichuan Yibin Global Group Tianwo Trade Co.,
30,066.98 9,620,450.94
payable Ltd.
Accounts
Sichuan Yibin Push Mold Co., Ltd. 2,023,240.73
payable
Accounts Yibin Global Photoelectric Energy Conservation
1,003,423.68
payable Technology Co., Ltd.
Accounts
Sichuan Yibin Push Drive Co., Ltd. 914,307.08
payable
Accounts
Yibin Ansage International Logistic Co., Ltd. 708,082.72
payable
Accounts Yibin Global Energy Conservation Service Co.,
440,382.34
payable Ltd.
Accounts
received in Sichuan Yibin Push Building Materials Co., Ltd. 4,942,728.12 768,890.93
advance
Accounts
received in Yibin Wuliangye Ecological Brewing Co., Ltd. 736,363.64
advance
Accounts
received in Yibin State-Owned Assets Operation Co., Ltd. 439,000.00 439,000.00
advance
Accounts
received in Sichuan Linhu Tea Co., Ltd. 375,600.00
advance
Accounts
received in Wuming Tea Industry Holding Co., Ltd. 267,600.00
advance
Accounts
Yibin Anji Logistic Group Shenzhou
received in 208,248.14 208,248.14
Transportation Co., Ltd.
advance
Accounts
received in Sichuan Yibin Push Group 3D Co., Ltd. 96,012.00 91,245.60
advance
Accounts
received in Yibin Wuliangye Group I&E Co., Ltd. 83,711.24 39,723.28
advance
Accounts
received in Sichuan Putian Times Technology Co., Ltd. 82,640.00 63,000.00
advance
Accounts
Sichuan Yibin Wuliangye Group Ecological
received in 66,440.00
Brewery and Marketing Co., Ltd.
advance
182
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Accounts
Sichuan Yibin Global Group Tianwo Trade Co.,
received in 6,000.00
Ltd.
advance
Accounts
received in Chengdu Wu Liang Ye Grand Hotel Co., Ltd. 2,773,800.00
advance
Accounts
Chengdu PUTH Medical Plastics Packaging
received in 1,423,092.79
Co., Ltd.
advance
Accounts
Sacred Garments & Home-Tex Co.,Ltd. Yibin,
received in 1,286,036.78
Sichuan
advance
Accounts
Sichuan Yibin Wuliangye Group Health Wine
received in 111,930.00
Co., Ltd.
advance
Notes payable Wuming Tea Industry Holding Co., Ltd. 320,000.00
Sichuan Ansage Supply Chain Management
Notes payable 280,000.00 3,000,000.00
Co., Ltd.
Sichuan Yibin Global Group Tianwo Trade Co.,
Notes payable 7,602,788.13
Ltd.
Notes payable Sichuan Yibin Licai Group Co., Ltd. 4,639,778.95
Notes payable Sichuan Putian Times Technology Co., Ltd. 273,907.12
Other payables Sichuan Yibin Wuliangye Group Co., Ltd. 136,248,128.58 13,348,251.69
Sichuan Yibin Push Intelligent Technology Co.,
Other payables 2,920,492.15 2,147,079.35
Ltd.
Other payables Sichuan Putian Times Technology Co., Ltd. 1,976,478.00 477,063.00
Other payables Sichuan Anji Logistic Group Co., Ltd. 673,087.45 644,597.45
Other payables Yibin Push Linko Technology Co., Ltd. 528,426.44 301,348.00
Chengdu PUTH Medical Plastics Packaging
Other payables 357,761.64 290,000.00
Co., Ltd.
Sichuan Yibin Wuliangye Group Anji Logistic
Other payables 137,790.43
Co., Ltd.
Yibin Global Photoelectric Energy Conservation
Other payables 110,569.94 223,885.30
Technology Co., Ltd.
Sichuan Chengdu Push Electromechanical
Other payables 70,000.00
Technology Research Co., Ltd.
Sichuan Yibin Global Group Tianwo Trade Co.,
Other payables 70,000.00
Ltd.
Other payables Sichuan Yibin Push Building Materials Co., Ltd. 55,000.00 55,000.00
Other payables Yibin State-Owned Assets Operation Co., Ltd. 50,000.00 50,000.00
Other payables Sichuan Linhu Tea Co., Ltd. 50,000.00
Other payables Yibin Ansage International Logistic Co., Ltd. 36,586.85 36,586.85
Other payables Yibin Ansage Auto Service Co., Ltd. 25,000.00 5,000.00
Sacred Mountain Molin Group Co., Ltd.,
Other payables 16,610.00
Sichuan
Other payables Chengdu Sacred Mountain Clothing Company 13,421.80
Chengdu Ningjiang Machine Tool Sales Co.,
Other payables 10,000.00 80,000.00
Ltd.
Other payables Yibin Shengdi Trade Co. Ltd. 5,000.00 5,000.00
Sacred Garments & Home-Tex Co.,Ltd. Yibin,
Other payables 3,000.00 3,000.00
Sichuan
Sichuan Ansage Supply Chain Management
Other payables 2,036.28 50,000.00
Co., Ltd.
Yibin Global Energy Conservation Service Co.,
Other payables 740,000.00
Ltd.
Other payables Chengdu Wu Liang Ye Grand Hotel Co., Ltd. 10,000.00
183
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
XI. Commitments and contingencies
1. Significant commitments
The Company had no significant commitments which need to be disclosed during the reporting
period.
2. Contingencies
The Company had no significant contingencies which need to be disclosed during the reporting
period.
XII. Post-balance sheet events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.
2. Profit distribution
As resolved by the 73rd meeting of the 5th board of directors of the Company held on April 24, 2020,
the profit distribution plan of 2019 is: RMB 22 (tax inclusive) in cash will be distributed for every 10
shares, and no capital reserve will be transferred to capital stock. This plan shall be subject to the
approval of the general meeting.
3. Note on other post-balance sheet events
The Company has no other post-balance sheet events which need to be disclosed.
XIII. Other significant matters
1. Pension plan
The Company obtained the reply of the State-owned Assets Supervision and Administration
Commission of Yibin Municipal Government on the Plan of Establishing the Corporate Pension Plan of
the Company (YGZW [2018] No.221) on September 14, 2018, and had filed with the Department of
Human Resources and Social Security of Sichuan Province on October 30, 2018.
Participants of the corporate pension plan of the Company include: (1) Employees who have
entered into labor contracts with the Company; (2) Employees who participate in the basic old-age
insurance system for enterprise employees according to the law and perform the obligation of payment;
and (3) Employees who are on duty and registered (excluding the probation period) will participate the
corporate pension plan on a voluntary basis.
Expenses for the corporate pension shall be shared by the Company and the employees.
Contribution by an employee shall be 3% of the contribution base of such employee, and the monthly
contribution base of the employee shall be the average wage in the previous year. Total amount of
contribution by the Company shall be 5% of the total annual wage paid by the Company, which shall be
distributed to individual accounts of the employees at 3% of the contribution base of the employees,
while the remaining 2% shall be distributed to the corporate account as incentives for rewarding
personnel who make significant contributions to the Company and for redistribution to employees of the
Company.
2. Segment information
The Company has no other businesses than liquor products which have significant impact on the
business performance. 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.
XIV. Notes to important items of parent company's financial statements
1. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 570,078,014.35 383,190,672.91
Dividends receivable 654,791,389.27 342,607,430.63
Other receivables 8,901,837,449.41 11,409,337,577.74
184
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Total 10,126,706,853.03 12,135,135,681.28
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Item Ending balance Beginning balance
Interest of fixed term deposit 570,078,014.35 383,190,672.91
Total 570,078,014.35 383,190,672.91
2) Provision for bad debt
□ Applicable √ Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Item (or invested company) Ending balance Beginning balance
Dividends receivable from subsidiaries 654,791,389.27 342,607,430.63
Total 654,791,389.27 342,607,430.63
2) Provision for bad debt
□ Applicable √ Not applicable
(3) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature of receivable Ending book balance Beginning book balance
Current account 8,892,421,547.89 11,403,421,695.31
Deposit 10,000,000.00 5,000,000.00
Reserve fund 76,201.29 70,009.94
Loans to Oriental Outlook Media Co.,
1,000,000.00
Ltd.
Total 8,902,497,749.18 11,409,491,705.25
2) Provision for bad debt
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt provision Expected credit loss for the Expected credit loss for the Total
Expected credit losses over
entire duration (no credit entire duration (credit
the coming 12 months
impairment) impairment has occurred)
Balance on January 1, 2019 154,127.51 154,127.51
Balance on January 1, 2019 in
-- -- -- --
current period
Provisions in current period 506,172.26 506,172.26
Balance on December 31,
660,299.77 660,299.77
2019
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive) 7,079,954,765.07
185
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
1 to 2 years 126,607,645.67
2 to 3 years 104,064,080.50
More than 3 years 1,591,871,257.94
3 to 4 years 97,947,190.67
4 to 5 years 101,990,963.67
More than 5 years 1,391,933,103.60
Total 8,902,497,749.18
3) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB
Amount of change in current year
Beginning
Category Recovery or Ending balance
balance Provisions Write-off Others
reversal
Other receivables with bad debt provision by
single item
Other receivables with bad debt provision by
154,127.51 506,172.26 660,299.77
credit risk combination
Total 154,127.51 506,172.26 660,299.77
4) Other receivables actually written off in current period
The parent company had no other receivables actually written off in current period.
5) Other receivables with top 5 ending balances by debtor
Unit: RMB
Nature Bad debt
Proportion in total provision
of
Unit name Ending balance Aging ending balance of
receivabl Ending
other receivables
es balance
Current
Sichuan Yibin Wuliangye Winery Co., Ltd. 6,954,534,667.27 Within 1 year 78.12%
account
Current 1-5 years; More
Yibin Jiangjiu Liquor Co., Ltd. 1,540,284,708.85 17.30%
account than 5 years
Sichuan Yibin Wuliangye Environmental Current 2-3 years; More
212,489,316.81 2.39%
Protection Co., Ltd. account than 5 years
Yibin Wuliangye Xianlin Ecological Liquor Co., Current 4-5 years; More
129,206,278.05 1.45%
Ltd. account than 5 years
Sichuan Yibin Global Gelasi Glass Current
25,320,627.98 More than 5 years 0.28%
Manufacturing Co., Ltd. account
Total -- 8,861,835,598.96 -- 99.54%
2. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Investment in
9,597,846,998.20 9,597,846,998.20 9,597,846,998.20 9,597,846,998.20
subsidiaries
Investment in associates
1,011,936,626.41 1,011,936,626.41 919,477,978.54 919,477,978.54
and joint-ventures
Total 10,609,783,624.61 10,609,783,624.61 10,517,324,976.74 10,517,324,976.74
(1) Investment in subsidiaries
Unit: RMB
Beginning balance Ending balance Ending
Invested company Increase/decrease in the current period
(book value) (book value) balance of
186
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Accrual of provision for
Increase Decrease
impairment Others impairment
Investment Investment
provision
Sichuan Yibin Wuliangye Winery Co., Ltd. 3,375,729,567.45 3,375,729,567.45
Yibin Wuliangye Liquor Sales Co., Ltd. 190,000,000.00 190,000,000.00
Sichuan Yibin Wuliangye Supply and Marketing Co.,
765,756,006.41 765,756,006.41
Ltd.
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00 50,000,000.00
Sichuan Yibin Wuliangye Environmental Protection
18,870,000.00 18,870,000.00
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.,
108,922,175.18 108,922,175.18
Ltd.
Sichuan Yibin Global Gelasi Glass Manufacturing
307,282,551.14 307,282,551.14
Co., Ltd.
Sichuan Yibin Push Group 3D Co., Ltd. 240,419,229.32 240,419,229.32
Sichuan Yibin Wuliangye Investment (Consulting)
47,500,000.00 47,500,000.00
Co.,Ltd.
Yibin Zhenwushan Liquor Co., Ltd. 20,000,000.00 20,000,000.00
Yibin Shiji Liquor Co., Ltd. 20,000,000.00 20,000,000.00
Yibin Cuipingshan Liquor Co., Ltd. 20,000,000.00 20,000,000.00
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
Huaibin Wubin Consultation Service Co., Ltd. 199,675,708.13 199,675,708.13
Wuguchun Jiu Ye Co., Henan. China 55,467,741.39 55,467,741.39
Sichuan Wuliangye Culture Tourism Development
40,000,000.00 40,000,000.00
Co., LTD
Yibin Wuliangye Creart Co., Ltd. 45,000,000.00 45,000,000.00
Total 9,597,846,998.20 9,597,846,998.20
187
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
(2) Investment in associates and joint-ventures
Unit: RMB
Increase/decrease in the current period
Ending
Beginning balance Profit and loss on Adjustment Declaration Ending balance balance of
Investor Changes Accrual of
(Book value) Additional Reduced investments of other of cash (Book value) provision for
in other impairment Others
investment investment recognized with comprehen dividends impairment
equities provision
equity method sive income or profits
I. Joint ventures
II. Associates
Oriental Outlook Media Co.,
13,742,029.36 3,336,110.30 17,078,139.66
Ltd.
Sichuan Yibin Wuliangye
905,735,949.18 89,122,537.57 994,858,486.75
Group Finance Co., Ltd.
Sub-total 919,477,978.54 92,458,647.87 1,011,936,626.41
Total 919,477,978.54 92,458,647.87 1,011,936,626.41
3. Operating revenue and operating cost
Unit: RMB
Amount in current period Amount in previous period
Item
Revenue Cost Revenue Cost
Other businesses 557,807.81 1,197,774.65
Total 557,807.81 1,197,774.65
Whether new revenue standards have been implemented
□ Yes √ No
4. Investment income
Unit: RMB
Item Amount in current period Amount in previous period
Long-term equity investment income
11,886,940,965.04 8,495,720,769.88
accounted by cost method
Long-term equity investment income
92,458,647.87 100,740,183.08
accounted by equity method
Total 11,979,399,612.91 8,596,460,952.96
XV. Supplementary information
1. Statement of current non-recurring profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets -1,571,612.06
Governmental subsidy recorded in current profit/loss (except
those government subsidies, which are closely related to the
129,760,347.41
business of a company and enjoyed in accordance with a
certain standard quota or quantity of the state)
Fund occupation fee collected from non-financial enterprises
15,503,633.45
and recorded in current profit/loss
Other non-operating revenue and expenditure except for the
-135,436,782.11
aforementioned items
Less: Impact on income tax -4,831,273.10
Impact on minority equity 16,853,457.08
Total -3,766,597.29 --
Concerning the non-recurring profit/loss defined by Q&A Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit/Loss, and the
items defined as recurring profit/loss according to the lists of non-recurring profit/loss in Q&A
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public -
Non-recurring Profit/Loss, explain reasons.
188
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
□ Applicable √ Not applicable
2. Net return on equity and earnings per share
Earnings per share
Profit of the reporting period Weighted average return on equity Basic earnings per Diluted earnings per
share (RMB/share) share (RMB/share)
Net profit attributable to ordinary
25.26% 4.483 4.483
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company
25.27% 4.484 4.484
after deducting non-recurring
profit and loss
3. Differences in accounting data under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in the financial report, under both
International Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting standards and Chinese Accounting Standards
□ Applicable √ Not applicable
189
Wuliangye Yibin Co., Ltd. Annual Report 2019 (Full Text)
Section XIII Reference File Directory
Relevant departments of the Company have prepared the following documents for
shareholders’ reference:
I. Financial Statements containing signatures of the legal representative, the person in charge of
the accounting work, and the person in charge of the accounting institution with seals.
II. Original Audit Report stamped by the accounting firm and signed and stamped by the CPAs.
III. Original copies of the documents and announcement of the Company published on China
Securities Journal, Shanghai Securities News, and Securities Times during the reporting period.
IV. Annual Report of the Company.
Wuliangye Yibin Co., Ltd.
April 28, 2020
190
