Wuliangye Yibin Co., Ltd.
Annual Report 2020
President Zeng Congqin (Signature)
April 28, 2021
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Contents
Section I Important Notice 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 .................................................................................11
Section V Significant Matters .............................................................................................................. 35
Section VI Changes in Shares and Shareholders ............................................................................... 50
Section VII Preferred Share .................................................................................................................. 56
Section VIII Convertible Corporate Bonds............................................................................................. 56
Section IX Directors, Supervisors, Senior Management and Employees ........................................... 57
Section X Corporate Governance ....................................................................................................... 68
Section XI Corporate Bonds ................................................................................................................ 73
Section XII Financial Report ................................................................................................................. 74
Section XIII Reference File Directory .................................................................................................. 209
2
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Section I Important Notice and Interpretations
I. The board of directors, the board of supervisors, directors, and supervisors 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. Seven directors should be present at the board meeting auditing the Report and
actually six directors attended. Director Li Shuguang was not present at the meeting due to
work reasons and voted on the resolution of this meeting by means of circulation;
Director-designate Jiang Lin was present at the meeting.
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
2020 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 25.80 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 2020 (Full Text)
Interpretations
Terms refers to Interpretations
Company, the Company or Wuliangye refers to Wuliangye Yibin Co., Ltd.
Yibin State-owned Assets Supervision and State-owned Assets Supervision and Administration
refers to
Administration Commission Commission of Yibin Municipal Government
Wuliangye Group Company or the Group
refers to Sichuan Yibin Wuliangye Group Co., Ltd.
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 Company refers to Sichuan Sacred Mountain Molin Group Co., Ltd.
Finance Company refers to Sichuan Yibin Wuliangye Group Finance Co., Ltd.
I&E Company refers to Yibin Wuliangye Group I&E Co., Ltd.
Creart Company refers to Yibin Wuliangye Creart Co., Ltd.
New Retail Company refers to Sichuan Wuliangye New Retail Management Co., Ltd.
NongXiang Series Baijiu refers to Wuliang NongXiang Series Baijiu Yibin Co., Ltd.
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (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 Chinese 五粮液
Company name in English (if any) WULIANGYE YIBIN CO.,LTD.
Company short name in English (if
WLY
any)
Legal representative of the
Zeng Congqin
Company
Registered address No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan
Zip code of the registered address 644007
Office address No. 150, Minjiang West Road, Cuiping District, Yibin, Sichuan
Zip code of the office address 644007
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 Times
information disclosure
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 shareholders (if
No change during the reporting period
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, Ye Juan
The sponsor institution engaged by the Company to perform the continuous supervision
responsibility during the reporting period
√ Applicable □ Not applicable
Office address of sponsor Name of sponsor
Name of sponsor institution Continuous supervision period
institution representative
No. 618, Shangcheng Road,
Guotai Junan Securities Co.,
China (Shanghai) Pilot Free Cai Hu, Liu Qiqun January 1, 2020-December 31, 2020
Ltd.
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 2020 Year 2019 compared with the Year 2018
previous year
Operating revenue (RMB) 57,321,059,453.15 50,118,105,877.14 14.37% 40,030,189,599.87
Net profit attributable to
shareholders of the listed company 19,954,809,594.52 17,402,164,190.16 14.67% 13,384,246,683.60
(RMB)
Net profit attributable to
shareholders of the listed company
19,994,943,929.15 17,405,930,787.45 14.87% 13,398,843,689.90
after deducting non-recurring
gains and losses (RMB)
Net cash flows from operating 14,698,327,593.21 23,112,072,040.66 -36.40% (Note 1) 12,317,359,034.90
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
activities (RMB)
Basic earnings per share
5.141 4.483 14.68% 3.474
(RMB/share)
Diluted earnings per share
5.141 4.483 14.68% 3.474
(RMB/share)
Decreasing by
Weighted average return on equity 24.94% 25.26% 22.80%
0.32%
Increase/decrease
at the end of the
current year
End of Year 2020 End of Year 2019 End of Year 2018
compared with the
end of the previous
year
Total assets (RMB) 113,893,139,013.72 106,396,972,333.66 7.05% 86,094,265,733.09
Net assets attributable to
shareholders of the listed company 85,705,972,645.74 74,290,700,662.22 15.37% 63,487,270,080.56
(RMB)
Note 1: This was mainly due to the combined effect of some sales returns in the first quarter being
reflected at the end of the previous year and the increase in taxes paid.
The lower of the Company's net profit before or after deduction of non-recurring profit and loss for
the last three accounting years is negative and the audit report for the latest year indicates that there is
uncertainty about the Company's ability to continue as a going concern
□ Yes √ No
The lower of net profit before or after deduction of non-recurring profit and loss is negative
□ Yes √ No
VII. Differences in accounting data under domestic and foreign 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.
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
VIII. Quarterly key financial highlights
Unit: RMB Yuan
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Operating revenue 20,238,226,408.60 10,529,299,579.80 11,725,241,211.51 14,828,292,253.24
Net profit attributable to
7,704,289,543.99 3,151,102,423.87 3,690,062,707.02 5,409,354,919.64
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
7,728,228,541.40 3,134,775,831.86 3,720,117,673.87 5,411,821,882.02
after deducting non-recurring
gains and losses
Net cash flows from operating
-1,201,790,976.97 2,369,923,680.96 2,775,338,930.99 10,754,855,958.23
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 Yuan
Amount of Year Amount of Year Amount of Year
Item Note
2020 2019 2018
Gain or loss on disposal of non-current assets
(including the write-off part of the provision for -5,064,647.92 -1,571,612.06 3,428,495.17
impairment of assets)
Governmental subsidy recorded in current
profit/loss (except those government subsidies,
which are closely related to the business of a 100,407,690.85 129,760,347.41 88,840,102.95
company and enjoyed in accordance with a certain
standard quota or quantity of the state)
Fund occupation fee collected from non-financial
2,602,571.31 15,503,633.45 10,373,763.35
enterprises and recorded in current profit/loss
Other non-operating revenue and expenditure
-141,782,777.02 -135,436,782.11 -110,025,211.13
except for the aforementioned items
Less: Impact on income tax -15,373,976.81 -4,831,273.10 -8,928,533.56
Impact on minority equity (after-tax) 11,671,148.66 16,853,457.08 16,142,690.20
Total -40,134,334.63 -3,766,597.29 -14,597,006.30 --
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
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 2020 (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, has a long history and a rich cultural heritage, and is a typical
strong-flavor Chinese spirit of China and a well-known national brand, which has been awarded the title
of national famous liquor for many times and has been selected for the first batch of protection catalogue
under the China-EU agreement on geographical indications. The Company also develops series liquor
products with complete categories and distinctive nuance, including Wuliang Chun (Spring), Wuliang
Chun, Wuliang Te Qu, Jian Zhuang, to provide consumers with quality products and a full range of
services to continuously meet people's needs for a better life.
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
The Company has six unique advantages, and these constitute the traditional core-competitiveness
of Wuliangye. 1) The individual lnatural, ecological environment makes Wuliangye 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 distilled with five unique grain formulas; 4) It
uses unique fermentation technologies and has a unique microbial zone within the Wuliangye Ten-Mile
Liquor City, a complete, systematic and unique fermentation technique that has been handed down,
scientifically summarised and carefully refined over a thousand years; 5) The unique, harmonious quality
of Wuliangye makes it a typical representative of Chinese culture; and 6) The scale of the unique
“Ten-Mile Liquor City” enables Wuliangye’s brand value to top the liquor industry.
In 2020, the Company took various simultaneous measures to actively strengthen the brand culture,
deepen digital transformation, optimize product portfolio, and construct a quality, product lifecycle
management system. In doing so, it continued to improve its production support, quality assurance,
brand influence, product competitiveness, channel control and marketing services. With the core
competitiveness continued to be enhanced, Wuliangye’sleading position of China's strong-flavour Baijiu
was further solidified.
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Section IV Discussion and Analysis of Operation
I. Overview
(I) General overview
It is an extraordinary year in 2020. In the face of the severe market environment, Wuliangye, under
the strong leadership of the provincial party committee, provincial government and municipal party
committee and municipal government, grasped the prevention and control of the pandemic on the one
hand and grasped resumed work and production on the other hand, unswervingly focused on the
development goal for the whole year, and continued to implement the work principle of "Making the best
of the both worlds, and upgrading new momentum" with tenacious struggle, high-spirited upward
momentum of development to realize the double victories of pandemic prevention and control and
enterprise development, and successfully ending the 13th five-year Plan.
1. Continue to improve the quality liquor rate, and steadily improve the support of
production.
During the reporting period, the total output of first-tier liquor exceeded the annual target, the output
of first-tier liquor in the largest workshop reached a record high, and the output of super-grade liquor
reached a new high, which laid a solid foundation for the Company to achieve sustainable development.
2. Continuously strengthen the quality engineering, and significantly enhance the quality
guarantee ability.
The Company actively implemented the national rural revitalization strategy, created a Wuliangye
special grain base, ensured high quality and stable supply of raw grain, promoted farmers' income so as
to both feed back the local agricultural economy and provide guarantee for liquor quality from the source.
At present, a special grain base of 1 million mu for distilling has been built, with 100% traceability of raw
grain. In 2020, combined with the digital transformation, the Company started the product quality full
lifecycle traceability project, realized the traceability of the whole industry chain of raw material
procurement, storage, production, packaging and circulation, and effectively constructed the preventive
quality control mode of from seed to liquor throughout the process. The Company continuously
promoted liquor innovation, and the quality of Classic Wuliangye and the eighth generation Wuliangye
was highly recognized by the market.
The construction of major projects progressed smoothly. The phase I of the 300,000-ton pottery jar
aging spirit room has been completed and put into production, with an additional storage capacity of
80,000 tons of raw liquor. Main building construction of the liquor packaging and integrated smart
storage-and-delivery project, the technological innovation project for storing blended liquor, and brewing
special grain process bin & milling automation renovation project under construction have all been
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
completed; The liquor body design center, the enterprise technology center and the planning and
renovation project in front of the plant have been launched in an all-round way.
3. Vigorously promote cultural construction, and make brand influence more powerful
During the reporting period, the Company vigorously promoted the cultural construction focusing on
brand strategy. The product portfolio of Wuliangye main brand and series liquor has been further
improved, the Wuliangye Cultural Research Institute and the Cultural Research and Communication
Center have been set up, the national "Compass Plan" Archaeological Wuliangye project has been
implemented, and the construction of the experience base of "China Vintage Liquor Hall" has been
launched in the highland market and key market. It strengthened brand 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.
4. Speed up the reform of marketing organization, and the reform measures have been
fruitful.
After the outbreak of COVID-19, the Company promoted the policy of "New products make up for
losses from old products, group purchase makes up for retailling loss, online business makes up for
offline loss". With channel structure further optimized, the Company has established three major channel
systems including traditional channel, group purchase and innovative channel. The official eeStore,
Wuliangye cloud store and digital liquor license platform have been put into operation, and the market
shows a high-quality development trend.
Firstly, continue to improve the brand system, and further enhance the competitiveness of
products. The supply-side structural reform has been continuously deepened, and the Classic
Wuliangye has been officially launched; The development of high-end cultural liquor, commemorative
liquor and personalized customized products is progressing smoothly; The Company has launched a
series of new liquor products such as Jian Zhuang, Wuliang Chun, Wuliang Te Qu in an orderly manner,
while insisting on optimizing product structure, and a total of 12 brands have been streamlined in 2020.
Secondly, continue to optimize channel construction and further enhance channel
management and control. The phase I of marketing digitization project has been almost completed, the
whole process of marketing data has been visualized, and the marketing data has effectively improved
decision-making. Continue to optimize the traditional channel structure and further purify the distributor
team of Wuliangye. NongXiang Series Baijiu Company actively established base markets and model
markets for Jianzhuang, Wuliang Chun and Wuliang Te Qu.
Thirdly, continue to strengthen organizational security and further improve the ability of
marketing services. Throughout the year, the Company carried out more than 10,000 high-end
banquets with dealers to cultivate a consumer atmosphere in the market and effectively helped dealers
and terminals to achieve high-quality dynamic sales. The Company officially launched the Wuliangye
cloud store, started the "Cloud Service", effectively helped exclusive stores in the context of COVID-19
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
to expand online sales opportunities, carried out digital group purchase, and implemented accurate
member marketing.
5. Vigorously strengthen enterprises with science and technology, and lead high-quality
development by scientific research
The Company insisted on taking innovation as the first driving force to lead development, strived to
enhance the enterprise's technological innovation capability, improved the efficiency of the innovation
system, constantly advanced the Company's scientific and technological innovation capability and
technology brand strength, and promoted the Company's strong science and technology to a new level.
During the reporting period, in addition to improving the National Enterprise Technology Center,
Postdoctoral Workstation, National Liquor Quality Supervision and Inspection Center and Enterprise
Academician Workstation, the Company built the only national-level international joint research center
on liquor quality and safety in the domestic food fermentation industry. The Company won 8 scientific
and technological progress awards from industry associations and 3 scientific and technological
progress awards at the provincial level. Among them, the technology of "interactive transmission
mechanism and application of key microflora and flavor components in multi-grain strong-flavor liquor
distiling" reached the international leading level. A major breakthrough has been made in the production
of the liquor-making intelligent experimental base.
(II) Brand operation
1. Wuliangye products
During the reporting period, the Company continued to optimize and improve the product system of
Wuliangye in accordance with the principle of "three characteristics and one recognition", and formed a
product system mainly consisting of Wuliangye 501, Classic Wuliangye, the eighth generation
Wuliangye, Wuliangye 1618 and low-aclcohol Wuliangye.
In September 2020, the Company launched a strategic high-end product "Classic Wuliangye" to
catch up with the new trend of consumption upgrading, further enrich the category of high-end liquor and
meet the needs of consumers for a better life. The Company successively held new product releases in
Shanghai, Chengdu and Guangzhou, met with consumers with a positive attitude, and combined with
the Imperial Palace culture IP to increase its exposure as well as focusing on key markets and locking
high-end consumption and other aspects to continue to promote the Classic Wuliangye and consumer
cultivation work, and the Company received wide attention and recognition by consumers.
2. Series liquor products
Series liquor products continued to adhere to the three focus principles of "strengthening national
strategic brands, expanding regional key brands, and optimizing total distribution brands", focusing on
creating four national items, namely, Wuliang Chun (Spring), Wuliang Chun, Wuliang Te Qu, and Jian
Zhuang, to strengthen product dynamic sales and vigorously promote brand upgrading.
In 2020, it comprehensively completed the upgrading and launch of major brands such as Jian
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Zhuang, Wuliang Chun and Wuliang Te Qu, and successfully implemented the key market building and
terminal classification construction of the above brands, re-defined the development postioning of each
brand and defined the price range, further solidified the foundation of brand development, and achieved
good results.
(III) Major sales model of the Company
Distribution model: This includes the traditional channel operator model, specialty shop model, KA
marketplace, etc., mainly sold offline.
Direct sales model: This includes group purchase sales model, where products are sold directly to
group consumers, and online sales model, where products are sold through e-commerce platforms such
as Tmall andJD.
(IV) Distribution models
√ Applicable □ Not applicable
1. Operating revenue, operating costs and gross profit for different models and products
Unit: RMB Yuan
Year-on-
Year-on-
year Year-on-year
Gross year
increase/decr increase/
Item Operating revenue Operating cost profit increase/decr
ease in decrease in
margin ease in gross
operating operating cost
profit margin
revenue
Sales model
Liquor products 52,434,071,866.48 10,342,416,169.52 80.28% 13.24% 11.40% 0.33%
Including:
45,379,752,892.82 9,258,969,334.00 79.60% 4.65% 6.04% -0.26%
Distribution model
Direct sales model 7,054,318,973.66 1,083,446,835.52 84.64% 140.15% 96.15% 3.44%
Product categories
Liquor products 52,434,071,866.48 10,342,416,169.52 80.28% 13.24% 11.40% 0.33%
Including: Wuliangye
44,060,628,351.09 6,631,626,495.10 84.95% 13.92% 12.28% 0.22%
products
Series liquor
8,373,443,515.39 3,710,789,674.42 55.68% 9.81% 9.86% -0.02%
products
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
2. Number of distributors
Year-on-year Reason for change
Region Number of distributors
increase/decrease (more than 30%)
Eastern Region 526 1%
Southern Region 400 1%
Western Region 380 -1% Not applicable
Northern Region 262 0%
Central Region 393 -3%
3. Shops sales terminals account for more than 10%
□ Applicable √ Not applicable
4. Online direct sales
√ Applicable □ Not applicable
Product categories Platform name
Wuliangye products:
Eighth generation Wuliangye Official Tmall, JD and WeChat marketplaces
Series liquor products:
Wuliang Chun (Spring), Wuliang Chun, Wuliang Te Qu,
Official Tmall, JD and WeChat marketplaces
and Jian Zhuang
Major products accounting for more than 10% of total operating revenue for the current period with a
change in selling price of more than 30% from the previous reporting period
□ Applicable √ Not applicable
(V) Procurement model and procurement content
Unit: RMB Yuan
Procurement model Procurement content Amount for major procurement content
Raw materials and auxiliary materials
Market-based procurement 7,236,328,806.72
etc.
Market-based procurement Packing materials 1,315,862,051.14
Market-based procurement Energy 462,958,013.08
Procurement of raw materials from cooperatives or farmers accounting for more than 30% of the
total procurement amount
□ Applicable √ Not applicable
Year-on-year change of more than 30% in prices of major purchased raw materials
□ Applicable √ Not applicable
(VI) Main production models
The Company’s liquor products are all produced by itself.
Processing and production outsourced
□ Applicable √ Not applicable
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(VII) Production output and inventory
1. Production output, sales and inventory of major products
Production output (Ton) Sales volume (Ton) Inventory (Ton)
Products Amount in the Year-on-year Amount in the Year-on-year Amount in the Year-on-year
current period change current period change current period change
Wuliangye
25,952 0.23% 28,139 5.28% 2,733 -44.45%
products
Series liquor
132,879 -6.67% 132,304 -4.60% 11,486 5.27%
products
Total 158,831 -5.61% 160,443 -3.00% 14,219 -10.18%
Remarks: The statistical calibre of the above-mentioned liquors are all commercial liquors. The
decrease in inventory of Wuliangye products is mainly due to the increase in sales volume and the
increase in the storage period of pottery jar aging liquors.
2. Finished liquor, semi-finished liquor (including base liquor)
Category Inventory (Ton)
Finished liquor 14,219
Semi-finished liquor (including pottery jar
215,473
aging liquor)
3. Disclose the design production capacity, actual production capacity and production capacity
under construction of major products by production entities
Design production Actual production capacity Production capacity under
Major products
capacity (10,000 tons) (10,000 tons) construction (10,000 tons)
Liquors 10.38 9.54 1.999
Remarks: The above production capacity figures are all based on base liquor calibre.
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 Yuan
Year 2020 Year 2019
Proportion in Proportion in Year-on-year
Amount operating Amount operating increase/decrease
revenue revenue
Total operating revenue 57,321,059,453.15 100% 50,118,105,877.14 100% 14.37%
By industry
Manufacturing
57,321,059,453.15 100.00% 50,118,105,877.14 100.00% 14.37%
industry
By product
Liquors 52,434,071,866.48 91.47% 46,301,838,985.74 92.39% 13.24%
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Including: Wuliangye
44,060,628,351.09 76.87% 38,676,204,031.90 77.17% 13.92%
products
Series liquor
8,373,443,515.39 14.61% 7,625,634,953.84 15.22% 9.81%
products
Plastic products 2,585,059,494.52 4.51% 2,540,536,361.21 5.07% 1.75%
Printing 136,405,558.64 0.24% 124,811,258.13 0.25% 9.29%
Glass bottle 176,439,052.84 0.31% 194,271,586.53 0.39% -9.18%
Others 1,989,083,480.67 3.47% 956,647,685.53 1.91% 107.92%
By region
Liquor products 52,434,071,866.48 91.47% 46,301,838,985.74 92.39% 13.24%
Including: Eastern
14,186,030,946.71 24.75% 21.74% 30.17%
Region 10,897,821,644.19
Southern Region 5,623,782,156.78 9.81% 5,449,656,248.58 10.87% 3.20%
Western Region 18,493,709,772.58 32.26% 30.51% 20.95%
15,290,228,925.34
Northern Region 5,787,446,943.40 10.10% 5,924,647,357.20 11.82% -2.32%
Central Region 8,343,102,047.01 14.56% 8,739,484,810.43 17.44% -4.54%
Non-alcohol products 4,886,987,586.67 8.53% 3,816,266,891.40 7.61% 28.06%
Remarks: 1. The Company did not export alcoholic products directly, but sold them to the I&E
Company for export.
2. The Company's sales region is divided according to the customer's registered office.
(2) Industries, products or regions that account for more than 10% of the Company's operating
revenue or profit
√ Applicable □ Not applicable
Unit: RMB Yuan
Year-on-year
Year-on-year
Gross increase/ Year-on-year
increase/decrease
Operating revenue Operating cost profit decrease in increase/decrease
in gross profit
margin operating in operating cost
margin
revenue
By industry
Manufacturing
industry (liquor 52,434,071,866.48 10,342,416,169.52 80.28% 13.24% 11.40% 0.33%
and spirits)
By product
Liquors 52,434,071,866.48 10,342,416,169.52 80.28% 13.24% 11.40% 0.33%
Including:
Wuliangye 44,060,628,351.09 6,631,626,495.10 84.95% 13.92% 12.28% 0.22%
products
Series liquor
8,373,443,515.39 3,710,789,674.42 55.68% 9.81% 9.86% -0.02%
products
By region
17
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Liquors 52,434,071,866.48 10,342,416,169.52 80.28% 13.24% 11.40% 0.33%
Including:
14,186,030,946.71 2,678,440,341.16 81.12% 30.17% 40.43% -1.38%
Eastern Region
Southern
5,623,782,156.78 1,019,548,758.68 81.87% 3.20% 3.31% -0.02%
Region
Western
18,493,709,772.58 3,972,887,096.63 78.52% 20.95% 6.92% 2.82%
Region
Northern
5,787,446,943.40 1,099,621,656.33 81.00% -2.32% 0.02% -0.44%
Region
Central
8,343,102,047.01 1,571,918,316.72 81.16% -4.54% -0.17% -0.82%
Region
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 revenue from labors
√ Yes □ No
Industry Year-on-year
Item Unit Year 2020 Year 2019
classification increase/decrease
Sales volume Ton 160,443 165,411 -3.00%
Liquors Production Ton 158,831 168,272 -5.61%
Inventory Ton 14,219 15,831 -10.18%
Remarks: The above statistics standard for liquors are all for commercial liquors.
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 Yuan
Year 2020 Year 2019 Year-on-year
Industry
Item Proportion in Proportion in increase/decrease
classification Amount Amount
operating cost operating cost in proportion
Raw materials 8,280,192,175.78 55.90% 6,409,107,723.74 50.06% 5.84%
Salary 4,328,398,411.77 29.22% 4,228,023,628.65 33.03% -3.81%
Manufacturing
Energy 796,325,741.28 5.38% 957,955,244.56 7.48% -2.10%
industry
Manufacturing
1,407,045,149.82 9.50% 1,207,173,350.39 9.43% 0.07%
expenses
(6) Whether the consolidation scope changes in the reporting period
√ Yes □ No
On April 15, 2020, the Company and Wuliangye Group Company, as reviewed and approved by the
18
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
72nd meeting of the fifth board of directors of the Company, jointly funded and established "Sichuan
Wuliangye New Retail Management Co., Ltd.", of which the registered capital was RMB 100 million. The
Company contributed RMB 90 million, taking up 90% of the registered capital; Wuliangye Group
contributed RMB 10 million, taking up 10% of the registered capital; and Sichuan Wuliangye New Retail
Management Co., Ltd. is 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) 10,358,495,336.11
Proportion of total annual sales of top five customers in
18.07%
total annual sales
Proportion of related parties in total annual sales among
0.00%
the top five customers
Total accounts receivable at the end of the period from top
0.00
five customers
Main settlement methods and distribution methods of the Mainly a distribution model, with a "payment before delivery"
top five customers settlement method
Top 5 customers of the Company
No. Customer name Sales amount (RMB) Proportion in total annual sales
1 No.1 3,097,384,069.43 5.40%
2 No.2 2,522,073,333.60 4.40%
3 No.3 2,154,212,287.26 3.76%
4 No.4 1,420,206,982.60 2.48%
5 No.5 1,164,618,663.22 2.03%
Total 10,358,495,336.11 18.07%
Other information of major customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from top five suppliers (RMB) 2,124,927,323.43
Proportion in total annual purchase amount for top five
21.78%
suppliers
Proportion of the purchase from related parties in total
13.10%
annual purchase amount among the top five customers
Top 5 suppliers of the Company
19
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Proportion in total annual purchase
No. Supplier name Purchase amount (RMB)
amount
1 No.1 534,305,032.99 5.48%
2 No.2 503,334,021.23 5.16%
3 No.3 385,693,902.73 3.95%
4 No.4 358,122,720.89 3.67%
5 No.5 343,471,645.59 3.52%
Total 2,124,927,323.43 21.78%
Other information of major suppliers
□ Applicable √ Not applicable
3. Expense
Unit: RMB Yuan
Year-on-year
Item Year 2020 Year 2019 Note on major changes
increase/decrease
Selling expenses 5,578,918,523.98 4,985,579,336.77 11.90%
Administrative
2,609,529,686.09 2,655,347,148.09 -1.73%
expenses
Financial expenses -1,485,519,200.21 -1,430,745,865.74 Not applicable
Research and
131,315,225.33 126,360,421.11 3.92%
development expense
(1) Specific composition of selling expenses
Unit: RMB Yuan
Year 2020 Year 2019
Reasons
Proportion in Year-on-year
Item Proportion in for
Amount Amount selling change
selling expenses change
expenses
Image publicity
1,148,203,672.92 20.58% 987,687,876.55 19.81% 16.25%
expense
Sales promotional
3,302,764,255.56 59.20% 3,008,319,662.93 60.34% 9.79%
expense
Storage and
260,214,712.62 4.66% 350,991,941.23 7.04% -25.86% Note 1:
logistics expenses
Expenses of labour 470,739,623.11 8.44% 331,708,441.32 6.65% 41.91% Note 2:
Other expenses 396,996,259.77 7.12% 306,871,414.74 6.16% 29.37%
Total 5,578,918,523.98 4,985,579,336.77 11.90%
Note 1: In accordance with the new revenue standard, transportation costs directly related to the
execution of contracts were transferred from "selling expenses" to "operating costs" in the current period.
Note 2: This was mainly due to the reform in the Company's marketing organization in the second
20
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
half of 2019 and the corresponding increase in investment in new sales staff.
(2) Advertising expenses
In 2020, the Company's advertising methods mainly included TV, radio, internet, outdoor advertising
and exhibitions, with RMB 128 million for online advertising, RMB 483 million for offline advertising and
RMB 537 million for TV advertising.
4. Research and development investment
√ Applicable □ Not applicable
(1) Purpose of the R&D project
In 2020, as an established research direction, 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
---On July 16, 2020, the project "Analysis of microbial structure and metabolic characteristics of
solid fermentation grains of single-grain and multiple-grains strong-flavor Chinese spirits", in
collaboration with Jiangnan University, won the second prize of the Science and Technology Award of
the China Alcoholic Drinks Association in 2019.
---On May 19, 2020, two projects, "Key Microorganisms and Flavour Components Transfer
Mechanism and Application of Multi-Grain Strong-Flavor Chinese Spirits" and "Research and Application
of Exogenous Food Safety Risk Assessment Method for Brewing", successfully passed the
provincial-level results evaluation and reached the "international leading and domestic leading" level,
respectively.
--- The project "Application Research on Efficient Fractionation and Enhancement of Quality and
Efficiency" is now working steadily and effectively after two years of applied trials. The application of high
efficiency fractionators has contributed to a greater extent to the improvement of the yield and has
generated greater economic benefits.
Through the results obtained from the aforementioned project research, the Company plans to carry
out the efficient utilisation of the resources for solid fermentation that can be applied to strong-flavor
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-flavor Chinese spirits.
Research and development investment of the Company:
Item Year 2020 Year 2019 Proportion of change
Number of research and
2,719 2,719 0.00%
development personnel (person)
Proportion of research and 10.51% 10.32% Up 0.19%
21
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
development personnel
Research and development
131,315,225.33 126,360,421.11 3.92%
investment (RMB)
Proportion of research and
development investment in 0.23% 0.25% Down 0.02%
operating revenue
Capitalized amount of research and
0 0 Not applicable
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 Yuan
Year-on-year
Item Year 2020 Year 2019
increase/decrease
Sub-total of cash inflows from
64,967,961,994.18 64,604,503,080.77 0.56%
operating activities
Sub-total of cash outflows from
50,269,634,400.97 41,492,431,040.11 21.15%
operating activities
Net cash flows from operating
14,698,327,593.21 23,112,072,040.66 -36.40% (Note 1)
activities
Sub-total of cash inflows from
6,438,616.16 92,050,811.98 -93.01%
investing activities
Sub-total of cash outflows from
1,728,453,964.74 1,708,455,125.66 1.17%
investing activities
Net cash flows from investing
-1,722,015,348.58 -1,616,404,313.68 6.53%
activities
Sub-total of cash inflows from
15,000,000.00 Not applicable
financing activities
Sub-total of cash outflows from 9,228,223,328.76 7,251,646,962.56 27.26%
22
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
financing activities
Net cash flows from financing
-9,213,223,328.76 -7,251,646,962.56 27.05%
activities
Net increase in cash and cash
3,762,958,476.66 14,244,084,425.84 -73.58% (Note 1)
equivalents
Description of main influencing factors of significant changes in relevant data on a year-on-year
basis
√ Applicable □ Not applicable
Note 1: This was mainly due to the combined effect of some sales returns in the first quarter being
reflected at the end of the previous year and the increase in taxes paid.
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
Unit: RMB Yuan
End of Year 2020 Beginning of Year 2020 Increase/
decrease Note on major
Proportion in Proportion in
Amount Amount in changes
total assets total assets
proportion
Cash and
cash 68,209,577,022.61 59.89% 63,238,825,723.79 59.44% 0.45%
equivalents
Accounts
41,496,170.35 0.04% 134,449,693.03 0.13% -0.09%
receivable
Inventory 13,228,273,631.45 11.61% 13,679,619,615.41 12.86% -1.25%
Long-term
equity 1,849,977,103.30 1.62% 1,021,778,731.59 0.96% 0.66%
investment
Fixed assets 5,866,880,860.03 5.15% 6,108,745,912.72 5.74% -0.59%
Construction
1,482,098,184.64 1.30% 812,428,248.30 0.76% 0.54%
in progress
23
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB Yuan
Accumulated
Profit or loss Impairment Purchase
changes in Amount of
from changes provided in amount in
Item Beginning amount fair value sales in Other changes Ending amount
in fair value in current current
reckoned into current period
current period period period
equities
Financial assets
1. Trading financial assets
(excluding derivative financial 1,200,000.00 1,200,000.00
assets)
2. Derivative financial assets
3. Other debt investments
4. Other equity instrument
investment
5. Accounts receivable
3,450,166,659.06 -1,425,724,642.34 2,024,442,016.72
financing
Sub-total of financial assets 3,451,366,659.06 -1,425,724,642.34 2,025,642,016.72
Investment properties
24
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Productive biological assets
Others
Sum of the above items 3,451,366,659.06 -1,425,724,642.34 2,025,642,016.72
Financial liabilities
Is there any significant change in measurement attributes of main assets of the Company in the reporting period?
□ Yes √ No
25
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
3. Limitation on the assets and rights as of the end of the reporting period
√ Applicable □ Not applicable
Unit: RMB Yuan
Item Ending book value Reasons for limitation
Cash and cash Deposit of bank acceptance bill of RMB 328,818,561.81 and other
329,069,085.01
equivalents deposits of RMB 250,523.20.
Accounts receivable
52,470,000.00 Pledge of bank acceptance bill
financing
Total 381,539,085.01
V. Situation of investment
1. General situation
√ Applicable □ Not applicable
Amount invested in the reporting period Amount invested in the same period of
Range of change
(RMB) the previous year (RMB)
734,693,877.55 9,800,000.00 7396.88%
Remarks: This investment is an equity investment and is mainly due to the capital increase in the
Finance Company during the reporting period.
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 securities investment
□ 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
26
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Unit: RMB '0,000
Total funds
Proportion
raised of Funds
Total funds of the total Purpose and
Funds which the Total funds raised
raised of funds allocation of
raised purpose has raised which has
Year of Raising Total funds Total funds which the raised of funds raised
used in been which have been idle
raising method raised raised used purpose which the which have
current changed not been for more
has been purpose not been
period during the used than two
changed has been used
reporting years
changed
period
In addition to
call deposit,
the funds
raised which
have not
been used
by the
Company
Non-public remained on
Year
offering of 185,327.74 36,612.2 52,218.01 169,405.51 169,405.51 91.41% 133,109.73 the special
2018
shares account for
funds raised
and would
be used for
the
investment
projects of
the funds
raised.
Total -- 185,327.74 36,612.2 52,218.01 169,405.51 169,405.51 91.41% 133,109.73 --
Description of overall use of funds raised
During the reporting period, the Company actually paid RMB 2.2443 million for the information construction project; RMB 0 million for the
marketing center construction project; and RMB 21.925 million for the service-oriented E-commerce platform project, RMB 156.3103 million for the
liquor packaging and integrated smart storage-and-delivery project; and RMB 185.6424 million for the technological innovation project for storing
blended liquor.
(2) Projects promised to be invested with funds raised
√ Applicable □ Not applicable
Unit: RMB '0,000
Whether the Date on Is there
Total
project has Total Investment which the Income any
amount of Accumulated Whether
Committed investment been investment Investment in progress as project realized in significant
committed investment as reach the
projects and allocation of changed amount after the reporting of the end of reaches the the change in
investment of the end of expected
over-raised funds (including adjustment period the period expected reporting feasibility
of the funds the period (2) income
partial (1) (3)＝ (2)/(1) usable period of the
raised
change) condition project
Committed investment projects
Not Not Not
Information construction Yes 71,530 5,644.64 224.43 5,644.64 100.00% No
applicable applicable applicable
27
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Construction of Not Not Not
Yes 50,793 3,944.06 0 3,944.06 100.00% No
marketing center applicable applicable applicable
Service- oriented Not Not Not
Yes 63,074 8,434.04 2,192.5 8,434.04 100.00% No
E-commerce platform applicable applicable applicable
Expected
The liquor packaging
in Not Not
and integrated smart No 0 94,422.74 15,631.03 15,631.03 16.55% No
December applicable applicable
storage-and-delivery
2023
The technological Expected in
Not Not
innovation project for No 0 74,982.77 18,564.24 18,564.24 24.76% December No
applicable applicable
storing blended liquor 2022
Sub-total of committed
-- 185,397 187,428.25 36,612.2 52,218.01 -- -- -- --
investment projects
Allocation of over-raised funds
Total -- 185,397 187,428.25 36,612.2 52,218.01 -- -- -- --
Note on and reason for
not reaching the
scheduled progress or Not applicable
expected income (based
on specific projects)
Description of any
significant change in Not applicable
feasibility of the project
Amount, purpose, and
application progress of Not applicable
over-raised funds
Change of
implementation place of
Not applicable
investment projects with
the funds raised
Adjustment of means of
implementation of
Not applicable
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
28
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
the project
Purpose and allocation
In addition to call deposit, the funds raised which have not been used by the Company remained on the special account for funds raised and
of funds raised which
would be used for the investment projects of the funds raised.
have not been used
Problems or other
information about
application and Refer to the special report on deposit of funds raised and actual use
disclosure of the funds
raised
(3) Changes of projects with the funds raised
√ Applicable □ Not applicable
Unit: RMB '0,000
Is there
any
Total funds Actual Investment Income
Corresponding Actual amount Date on which the Whether significant
raised to be accumulated progress as realized in
original invested during project reaches reach the change in
Project after change invested in the investment as of the end of the
projects the reporting the expected expected feasibility
changed of the end of the period reporting
promised period usable condition income of the
project (1) the period (2) (3)＝ (2)/(1) period
changed
project
The liquor packaging and Information
Expected in Not Not
integrated smart construction, 94,422.74 15,631.03 15,631.03 16.55% No
December 2023 applicable applicable
storage-and-delivery construction of
marketing
The technological center,
Expected in Not Not
innovation project for service-oriente 74,982.77 18,564.24 18,564.24 24.76% No
December 2022 applicable applicable
storing blended liquor d E-commerce
platform
Total -- 169,405.51 34,195.27 34,195.27 -- -- -- --
At the 73rd meeting of the 5th board of directors of the Company and the annual general meeting of 2019
held on April, 24 2020 and May, 29 2020 reviewed and approved the Proposal for Change the Use of
Funds Raised from Non-public Offering and the Subject of Implementation, agreeing to change the use of
funds raised; the subject of implementation of the project was changed from Sichuan Yibin Wuliangye
Statement of reasons for change, decision-making
Supply and Marketing Co., Ltd. to Sichuan Yibin Wuliangye Winery Co., Ltd.
procedures and disclosure of information (by project)
For details, please refer to the Announcement of Resolutions of the 73rd Meeting of the 5th Board of
Directors, Announcement of Resolutions of the Annual General Meeting of 2019 and Announcement on
the Signing of the Non-public Offering of the Company.
Note on and reason for not reaching the scheduled progress
Not applicable
or expected income (based on specific projects)
Description of any significant change in feasibility of the
Not applicable
project after change
29
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 Yuan
Company Primary
Company name Registered capital Total assets Net assets
type business
Liquor sales,
liquor import
Yibin Wuliangye Liquor Sales
Subsidiary and export 200,000,000.00 39,066,651,213.16 24,171,031,611.19
Co., Ltd.
business and
agency
Company Primary
Company name Operating revenue Operating profit Net profit
type business
Liquor sales,
liquor import
Yibin Wuliangye Liquor Sales
Subsidiary and export 50,993,911,050.55 22,754,233,531.30 17,066,813,026.81
Co., 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
The New Retail Company is committed to building a "Vertical Ecological
Empowerment Platform" that integrates a brand promotion platform, a
product sales platform, a consumer interaction platform and an online
Sichuan Wuliangye market management platform, and is also an advantageous pattern for the
New Retail Establishment Company to rely on new technology applications such as big data to lay
Management Co., Ltd. out the future, continuously meet the growing consumer demand, actively
integrate into the economy of the times and improve the new intelligent
retail system to complement and develop synergistically with traditional
channels.
30
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
VIII. Structured entities controlled by the Company
□ Applicable √ Not applicable
IX. Prospect of future development of the Company
(I) Industry landscape and trend
In 2021, the downward pressure of domestic economy further increases due to many uncertainties
regarding changes of COVID-19 and the external environment, but the fundamentals and basic trend of
steady long-term economic growth in China remain unchanged. The production capacity of the liquor
industry 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 green, creative, and leading first-class enterprise in the world and realize high-quality,
sustainable development.
(III) Completion of the business plan 2020
1. Planning at the beginning of the year: Double-digit growth for the total operating revenue in
2020.
2. Actual completion: In 2020, the Company's operating revenue reached RMB 57.321 billion, with
year-on-year growth of 14.37%.
(IV) Development goals for 2021
The year 2021 is the start of building a great modern socialist country, the opening year of the 14th
Five-Year Plan, and a key year for Wuliangye Group's innovative development, transformation and
leapfrogging development. Under Xi Jinping’s guiding principle of “socialism with Chinese
characteristics”, the Company will, fully implement a series of important instructions that were outlined
for Sichuan at the fifth plenary session of 19th National Congress of the Communist Party of China and
adhere to the general principle of seeking progress while keeping performance stable, be based on the
new development stage, implement the new development concept, integrate into the new development
pattern, aim to meet the new demand of consumer upgrade, take the vision of building a green,
innovative and leading first-class enterprise, lead the supply-side structural reform with process
innovation and liquor body innovation as the core, and comprehensively promote Wuliangye Group's
greater innovative development, transformation and leaping development.
The Company's business objective for 2021: The Company strives to achieve double-digit growth
for the total operating revenue and will continue to maintain the average advanced development rate of
31
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
the industry's backbone enterprises to ensure that the development of the enterprise runs in a
reasonable range of sound and sustainable growth.
Focus on four areas of work: 1) making every effort to promote high-quality development; 2)
making every effort to promote comprehensive deepening reform; 3) making every effort to implement
the innovation-driven strategy; and 4) making every effort to grasp the construction of major projects.
(V) Potential risks
1) macroeconomic uncertainties; 2) further intensification of competition in the industry; and 3) the
risk of intellectual property protection for well-known brands.
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
Main
contents
Reception Way of Type of discussed Basic information
Date of reception Interviewees
location reception interviewees and index of the survey
information
provided
Securities Sumitomo Mitsui Trust, Sculptor
trader Capital, ALPHALEX CAPITAL,
January 13-14, 2020 Shanghai Institution
Strategy Citigroup, Brilliance Capital, Fidelity
meeting Capital, etc.
E Fund, Hwabao WP Fund, Ping An
Telephone Capital Management, Yinhua Fund,
March 3, 2020 Yibin Institution
communication China Universal Asset Management,
etc.
Telephone
March 10, 2020 Yibin Institution E Fund, ChinaAMC
communication Development
CNINFO
Telephone strategy and
March 23, 2020 Yibin Institution CCB Principal Asset Management (http://www.cninfo.
communication production
com.cn)
Greenwoods Asset Management, operation of
General the Company
May 29, 2020 Yibin Institution ChinaAMC, Huachuang Securities,
Meeting
China Merchants Securities, etc.
Foreign institutional investors, Wells
Telephone
June 22-24, 2020 Yibin Institution Fargo Funds Management, Taikang,
communication
etc.
Essence Securities, China Life Asset
Management Company Limited, E
Telephone
July 2, 2020 Yibin Institution Fund, Guangdong Development Fund,
communication
China Merchants Fund, China
Universal Asset Management, etc.
Telephone CLSA, JPM, Lone Pine, China Development
July 7-9, 2020 Yibin Institution
communication Securities Cooperation, Zhong Ou planning of
32
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Asset Management, Great Wall Fund, the Company
Baoying Fund, Taikang, Northeast
Securities, HSBC Qianhai,
ChinaAMC, China Universal Asset
Management, etc.
Zheshang Securities, China
Telephone Merchants Fund, Yinhua Fund, China
July 23, 2020 Yibin Institution
communication Universal Asset Management, China
Southern Fund Management, etc.
Huaxi Securities, Dongxing Securities,
August 31, 2020 Yibin Field survey Institution Sealand Securities, Gelin Fund,
DAPU Asset Management, etc.
E Fund, China Everwin Asset,
Strategy
AEGON-INDUSTRIAL Fund, Ping An
Meeting for
September 2-3, 2020 Shanghai Institution Asset Management, ABC-CA Fund
Securities
Management, Taiping Asset
Traders
Management, GUOTAI AMC, etc.
Strategy
Meeting for ICBC Credit Suisse, Bosera Funds, Half-yearly
September 4, 2020 Nanjing Institution
Securities Caitong Fund, Sealand Securities, etc. report for
CNINFO
Traders 2020 and the
(http://www.cninfo.co
Strategy future plans
Greenwoods Asset Management, m.cn)
September 8-11, Meeting for of the
Shanghai Institution ABC-CA Fund Management, pinpoint,
2020 Securities Company
Greencourt, etc.
Traders
Sunshine Asset Management,
Temasek, OHIM, StarRock Investment
September 16, 2020 Yibin Field survey Institution
Management, Perseverance Asset
Management, Ping An Asset, etc.
Strategy
Ping An Asset Management, Yinhua
Meeting for
September 17, 2020 Shanghai Institution Fund, Bosera Funds, Great Wall Fund,
Securities
etc.
Traders
Strategy
Centennial insurance, China
Meeting for
October 31, 2020 Hangzhou Institution Merchants Fund, Sunshine Asset
Securities
Management, Shicheng Asset, etc.
Traders
Greenwoods Asset Management,
November 3, 2020 Yibin Field survey Institution Huachuang Securities, Sealand Third quarter
Securities report for
Yinhua Fund, Penghua Fund, Avic 2020 and the
Fund, Great Wall Fund, China Post future plans
Strategy
Fund, CCB Principal Asset of the
Meeting for
November 5, 2020 Beijing Institution Management, Royal Investment Company
Securities
Management, ICBC Credit Suisse,
Traders
Bosera Funds, Ping An-UOB Fund,
etc.
Strategy Harvest Fund, Bosera Funds,
November 11, 2020 Beijing Institution
Meeting for Everbright Pramerica Fund
33
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Securities Management, Fudun Investment
Traders Management, Temasek, ChinaAMC,
China Life Pension, OHIM,
LONGRISING, Orient Fund,
Guangdong Development Fund,
Yinhua Fund, etc.
Dacheng Fund, CITIC Asset
Strategy Management, China Universal Asset
November 19-20, Meeting for Management, Perseverance Asset
Shenzhen Institution
2020 Securities Management, ABC-CA Fund
Traders Management, Government of
Singapore Investment Corp, etc.
China Cornerstone Capital, HAZEL
Strategy
INVESTMENT, Loyal Valley Capital,
Meeting for
November 19, 2020 Haikou Institution China Demeter Financial Investments,
Securities
Guangdong Wenshi Investment, CICC
Traders
Fund, etc.
Reception times 55
Number of organizations received 1,264
Number of individuals received 0
Number of other interviewees received 0
Whether undisclosed important information is disclosed,
No
revealed or divulged
34
Wuliangye Yibin Co., Ltd. Annual Report 2020 (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 2019 reviewed and adopted at the Annual General Meeting
2019 of the Company, based on the total capital stock of 3,881,608,005, the Company distributed the
dividend of RMB 22 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
22, 2020.
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 dividends distribution scheme in 2020: The Company distributed cash
dividends of RMB 25.80 (tax inclusive) for every 10 shares and totaling RMB 10.015 billion in cash.
The Company's cash dividends 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 dividends 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.
Common stock cash dividends of the Company in the past 3 years (including the reporting period)
35
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Unit: RMB Yuan
Ratio of total
cash
Ratio of cash dividends
Ratio of cash
dividends to (including
dividends in other
net profit those in other
Net profit attributable to Cash forms to net profit
attributable forms) to net
common stockholders of the dividends in attributable to
to common Total cash dividends profit
Year of Cash dividends (tax listed company in the other forms common
stockholders (including those in other attributable to
dividends inclusive) annual consolidated (such as stockholders of
of the listed forms) common
statement in the year of share the listed
company in stockholders
dividends repurchase) company in the
the of the listed
consolidated
consolidated company in
statement
statement the
consolidated
statement
Year 2020 10,014,548,652.90 19,954,809,594.52 50.19% 0.00 0.00% 10,014,548,652.90 50.19%
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%
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) 25.80
Increase shares per 10 shares (shares) 0
Equity base of distribution plan (shares) 3,881,608,005
Cash dividend (RMB) (tax inclusive) 10,014,548,652.90
Cash dividend in other forms (such as share
0.00
repurchase) (RMB)
Total cash dividends (including those in other forms)
10,014,548,652.90
(RMB)
Distributable profit (RMB) 40,220,101,761.18
Ratio of total cash dividends (including those in other 100%
36
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 dividends distribution scheme in 2020: 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
25.80 (tax inclusive) for every 10 shares and distributed totally RMB 10,014,548,652.90 in cash. No bonus share was
distributed and no capital reserve was transferred to capital stock in current year.
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
√ Applicable □ Not applicable
37
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Approval
Content and reason of changes in accounting policy Remarks
procedures
According to the provisions for transition from
the old standards to the new standards,
information of the comparable period is not
On July 5, 2017, the Ministry of Finance issued the
Accounting Standards for Business Enterprises No.14 - adjusted, and the beginning retained earnings or
Revenue (CK (2017) No.22), (hereinafter referred to as other comprehensive income of the reporting
the "New Revenue Standards"), requiring enterprises period will be adjusted retroactively for the
which were simultaneously listed abroad and at home difference between the new standards and the
and which were listed abroad and prepared their original standards on the date of initial
financial statements according to the International implementation. Refer to the Note “V. Significant
Financial Reporting Standards (IFRS) or the Accounting accounting policy and accounting estimates, 27,
Standards for Business Enterprises (ASBE) to (3) Adjustment of relevant items in financial
implement such standards since January 1, 2018; and statements at the beginning of the
other domestic listed companies to implement such
implementation year as a result of initial
standards since January 1, 2020.
implementation of new revenue standards” for
details about impact on the Financial Statements
2019
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the initial
implementation year as a result of initial implementation of new revenue standards from
2020
Balance sheet
Item
December 31, 2019 Reclassification Remeasurement January 1, 2020
Accounts received
12,530,706,854.77 -12,508,924,058.07 21,782,796.70
in advance
Contract liability 11,078,218,239.27 11,078,218,239.27
Other current
1,430,705,818.80 1,430,705,818.80
liabilities
(4) Note on comparison data before the retrospective adjustments due to initial implementation
of new revenue standards from 2020
□ Applicable √ Not applicable
VII. Note on rectification of major accounting error in the reporting period which
needs to be tracked and restated
□ Applicable √ Not applicable
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
38
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
On April 15, 2020, the Company and Wuliangye Group Company, as reviewed and approved by the
72nd meeting of the fifth board of directors of the Company, jointly funded and established "Sichuan
Wuliangye New Retail Management Co., Ltd.", of which the registered capital was RMB 100 million. The
Company contributed RMB 90 million, taking up 90% of the registered capital; Wuliangye Group
contributed RMB 10 million, taking up 10% of the registered capital; and Sichuan Wuliangye New Retail
Management Co., Ltd. is 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 '0,000) 1.32 (excluding internal control and audit fee)
Term of auditing services of Chinese accounting firm 20
Name of the CPAs of Chinese accounting firm Li Min, Liu Jun, Ye Juan
Term of auditing services of the CPAs of Chinese The 5th year of Mr. Li Min, the 3rd year of Mr. Liu Jun, 1st
accounting firm year of Ms. Ye Juan
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 2020 at the cost of RMB 600,000.
X. Delisting 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.
XIII. Punishment and rectification
□ Applicable √ Not applicable
The Company had no punishment or rectification during the reporting period.
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.
39
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
20, 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 and senior management of the
Company (Li Shuguang, Zou Tao, Wu Guoping, Cao Hongying, Zhu Zhongyu, Tang Bochao, Tang
Shengyun, Luo Wei, Zhao Dong and Peng Zhifu) participating the ESOP indirectly held 1,293,323
shares through the Guotai Junan Fund Management Plan (excluding retired senior management), taking
up about 1.51% 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.
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, March 20, 2019 and April 20,
2020, respectively. The main contents were deposits and loans service. Daily balance of deposits was
no more than RMB 32.9 billion in 2020 and daily balance of loans no more than RMB 5 billion in 2020.
Refer to "Section XII, XI. Related parties and related transactions, 5. Related transactions (7) Other
related transactions" for details about related transactions between the Company and the Finance
Company.
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
40
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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. Major contracts for daily operation
□ Applicable √ Not applicable
5. 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 2020 disclosed by the Company on April 28, 2021.
41
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
2. Show social responsibility by setting poverty alleviation targets
(1) Targeted poverty alleviation
Wuliangye has always adhered to the policy of poverty alleviation through development based on
the resource endowment and different needs of the supported areas, and according to the idea of
"company input, professional operation and sharing among the poor”, we run the thinking of corporate
governance through the process of help, integrate the market concept into poverty alleviation, adhere to
the guidance of party building, take industrial assistance as the core, focus on agricultural base and
industrial commercialization, and open up the supply chain and demand chain, strengthen the
construction of the talent team for the sustainable development of the supported areas, strive to build a
characteristic assistance model of "Wuliangye + characteristic industries + village capital companies +
consumer markets + peasant households", and work with the poor to draw a blueprint for a better life
and make efforts to help the supported areas to get rid of poverty and become well-off.
(2) Annual summary on poverty alleviation targets
In 2020, Wuliangye paid close attention to the targets and tasks of poverty alleviation and invested
RMB 478 million in poverty alleviation in terms of party building, infrastructure, industry, consumption
and education. By establishing the organizational structure of the trinity of "headquarters, staff officer
and combat team" for poverty alleviation, Wuliangye did a good job of structure adjustment on the
battlefield of poverty alleviation, and built a targeted poverty alleviation model with the characteristics of
Wuliangye, helped national-level poverty area such as Litang County of Ganzi Prefecture and Pingshan
County of Yibin City to achieve high-quality poverty alleviation.
Firstly, increase development confidence under the guidance of party building. Wuliangye
insists on "party building leading, inclusive development". The party committee team of the Company
leads the team to go deep into the supported area regularly, in order to go to the village to carry out
pairing help, strengthen confidence of masses, talk about both development and domestic trivia with
masses, and solve their practical difficulties. In Qingshanyan Village, Xingwen County, Wuliangye built a
party and mass activity center that integrates "party building propaganda", "homes of the masses" and
"provincialism trees", so as to further serve the masses, gather popular feelings, and inspire drive. In
Litang County, the joint party branch of Wuliangye Polar Fruit and Vegetable Lentinus edodes Industrial
Base was established, and migrant party members were divided into production and sales party groups
to give full play to the fighting bastion role of party organizations, the exemplary vanguard role of party
members, and the leading role of leaders in getting rid of poverty and welcoming prosperity, forming an
interactive and inclusive situation in which party organizations are built in industry, party members gather
in industry, and farmers are rich in industry.
Secondly, tamp and consolidate the foundation, and resolve the difficult problems of
42
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
development. Wuliangye strives to continuously optimize the conditions of rural production and living
facilities, improve the basic public service system, and consolidate the foundation of local economic
development by virtue of the construction of road facilities, rural housing insurance and village-level
projects. 1) support the construction of rural roads. In 2020, RMB 199 million was invested in building the
"Wuliangye Rural Revitalization Industry Road" to achieve a happy ending of poverty alleviation, so as to
provide a "smooth, comfortable and beautiful" development environment for rural revitalization. 2)
promote the improvement of the living environment. Donated RMB 700,000 to support Jie Ji Village in
Pingshan County, focusing on promoting the construction of village-level projects such as village
appearance improvement, maintenance and reinforcement projects, and supporting facilities of the
"1+6" activity center; Donated RMB 1 million to help farmers' houses in Litang County participate in
insurance, and established a mechanism to protect the personal property of 10,000 farmers and
herdsmen; Donated RMB 18.58 million of materials to solve the problem of transportation inconvenience
and difficulties in the deep poverty-stricken areas of Ganzi Prefecture, Liangshan Prefecture and Aba
Prefecture.
Thirdly, empower production and marketing and achieve vigorous development of the
industry. According to the industrial assistance principle of "taking measures according to local
conditions, implementing policies according to households, and varies from person to person",
Wuliangye constructs the model of "Wuliangye + characteristic industrial base + peasant household" and
"Wuliangye + village collective economic organization + peasant household" to develop industries with
local characteristics to enrich the people and realize the "multiplier effect" that serves the overall
situation of economic and social development. 1) deepen the construction of characteristic bases. In
Xingwen County and Litang County, Wuliangye comprehensively enhanced the demonstration and
leading role of bamboo industry base and lentinus edodes industry base, drove the village collective
economy to achieve sales revenue of more than RMB 18 million, and distributed dividends to the
masses of more than RMB 2.1 million. 2) support the development of local industries. Donated RMB
600,000 to help 3,100 farmers purchase iron farm tools, break the plight of spring ploughing of peasant
household in Litang County; Donated RMB 500,000 to support the construction of the cultural and
tourism project in Litang County, helping the Litang cultural and tourism industry to a new level. 3)
broaden the product marketing channels. By setting up Wuliangye poverty alleviation counters within the
Company, high-speed service areas and supermarket, holding trade fairs of poverty alleviation products
at the end of the year and the beginning of the year, carrying out centralized procurement in important
festivals such as the Spring Festival and Mid-Autumn Festival, and employees' regular "purchasing
instead of donation", launching "China Poverty Alleviation products 832" and "Wuliangye Family" and
other e-commerce platforms, a "grading, classification, invitation, go out" online and offline
43
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
omni-directional marketing system was built. In the whole year, "purchasing instead of donation" poverty
alleviation products totaled more than RMB 32 million. At present, Wuliangye has effectively increased
the collective economic income of the village by more than RMB 18 million, and the per capita income of
poor households has increased by more than RMB 10,000.
Fourthly, break down barriers and resolve resistance occurred during development. The
Company plays a combination of "education and training", so that students from poor families can "go to
school and afford to go to school", and poor farmers "have strong points and become rich". 1) support
the development of education. Donated more than RMB 12 million to help build an information network
school in Litang County, set up an education fund for poor areas, subsidize poor students, and
vigorously improve the quality of teaching in the supported areas. 2) carry out technical skills training.
Poverty alleviation cadres have been rooted in the front line of poverty alleviation for a long time,
organized more than 40 night schools for farmers and herdsmen, led farmers to participate in the
operation and management of village collective industries, and carried out practical training to cultivate
skills and enhance their ability to become rich.
In the next step, Wuliangye will strictly implement the requirements of the "Take off the hat without
taking off responsibility, policy, help or supervision" in accordance with the decisions and arrangements
of the provincial party committee and provincial government, continue to give full play to the Company's
multi-dimensional diversified industry platform advantages, and promote the sustainable development
and growth of the collective economy in poverty-free counties and villages, consolidate the
achievements of poverty alleviation, stimulate the endogenous driving force, and contribute Wuliangye’s
strength to effectively link up with rural revitalization.
(3) Targeted poverty alleviation effect
Unit of
Index Quantity/performance
measurement
I. General situation —— ——
Including:
RMB '0,000 47,803.26
1. Funds
2. Amount converted from materials RMB '0,000 18.87
II. Input by items —— ——
1. Industrial development poverty alleviation —— ——
Including:
Agriculture and forestry industries poverty
1.1 Type of industrial development poverty ——
alleviation
alleviation project
1.2 Number of industrial development poverty
Piece 5
alleviation project
44
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
1.3 Amount invested for industrial development
RMB '0,000 44,556.26
poverty alleviation project
2. Transfer employment poverty alleviation —— ——
2.2 Number of attendees of vocational skill
Person-time 532
training
2.3 Number of employment of the poor under
Person 40
the help of the Company
3. Poverty alleviation relocation —— ——
Including: 3.1 Number of employment of relocated
Person 30
household under the help of the Company
4. Educational poverty alleviation —— ——
Including:
RMB '0,000 259.4
4.1 Amount invested for funding poor students
4.2 Number of poor students receiving fund Person 48
4.3 Amount for improving educational resources
RMB '0,000 219
of impoverished areas
5. Health poverty alleviation —— ——
Including: 5.1 Amount invested for medical and
RMB '0,000 40
health resources of impoverished areas
6. Ecological protection poverty alleviation —— ——
7. Subsistence allowance —— ——
8. Social poverty alleviation —— ——
8.2 Amount for fixed-point poverty alleviation RMB '0,000 9,569.55
9. Other projects —— ——
III. Awards received (content, level) —— ——
Wuliangye won the "Top 50 cases of Poverty
Alleviation by Social Organizations", "Top 50
Comprehensive cases of accurate Poverty
Alleviation by Enterprises" of the Poverty Alleviation
Office of the State Council, "Advanced fixed-point
poverty alleviation Provincial Units in 2019" by the
Sichuan Provincial Party Committee and
Government, "Excellent cases of Poverty
Alleviation in China" by the People's Daily, "2020
responsibility Golden Bull-Precision Poverty
Alleviation Award" of China Social responsibility
100 Forum and other honors.
45
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(4) Subsequent targeted poverty alleviation plan
Wuliangye will always stay under the guidance by Xi Jinping's thought of socialism with Chinese
characteristics in the new era, comprehensively promote rural revitalization unswervingly in accordance
with the central and provincial party committees, speed up the work deployment of agricultural and rural
modernization, and strictly implement the requirements of the "Take off the hat without taking off
responsibility, take off the hat without taking off the policy, take off the hat without taking off help, and
take off the hat without taking off supervision", adhere to "Do not close out the booth, do not cast off
burden, and never stop". In the new journey of building a modern socialist country in an all-round way,
Wuliangye will help consolidate and expand the achievements of poverty alleviation and effectively link
up with the revitalization of rural areas, constantly promote the development of characteristic industries
in poverty-free areas, and extensively carry out the docking activities of production and marketing of
agricultural products, strengthen the ranks of rural talents in poverty-free areas, enhance the ability of
rural governance in poverty-free areas, and take practical measures to promote high-quality and efficient
agriculture, suitable living and industry in rural areas and farmers being rich so as to make new
contributions to building a modern socialist country in an all-round way by a good start to achieve the
goal of the second centenary.
3. Conditions related to environmental protection
Whether the listed company and its subsidiaries are key pollutant discharging units announced by
environmental protection authorities
□ Yes √ No
Voluntary disclosure
Name of
Name of
main
the Number Total
pollutants Emission Outlets Emission Pollutant emission Total Excessive
Company of emissions
and Means Distribution concentration standard observed emissions emission
or outlets approved
characteristic
subsidiaries
pollutants
COD Wuliangye 19.53mg/L 75 tons 198 tons Non-excessive
ecological Emission Standard
Ammonia wetland of Water Pollutant
0.38mg/L 1.6 tons 14.85 tons Non-excessive
nitrogen Organized outlet, 503 for Minjiang River
continuous 2 workshop and Tuojiang River
Total emission waste Basin
0.21mg/L 0.8 tons 2.48 tons Non-excessive
phosphorus water (DB51/2311-2016)
discharge Table 1
Total outlet 22.09
Company 5.70mg/L 74.25 tons Non-excessive
nitrogen tons
Emission Standard
Organized Natural
Sulfur of Air Pollutants for 14.02 Not
intermittent 26 gas boiler 3-7mg/Nm Non-excessive
dioxide Boiler tons applicable
emission outlet
(GB13271-2014)
Emission Standard
Organized Natural
of Air Pollutants for Not
Particulates intermittent 26 gas boiler 2.8-6.65mg/Nm 13 tons Non-excessive
Boiler applicable
emission outlet
(GB13271-2014)
46
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Emission Standard
Organized Natural
Nitrogen of Air Pollutants for 149.1 789.65
intermittent 26 gas boiler 51-68.89mg/Nm Non-excessive
oxide Boiler tons tons
emission outlet
(GB13271-2014)
(1) Construction and operation of pollution-control facilities
The Company has 3 wastewater pretreatment stations and 1 wastewater advanced treatment zone
in the Jiangbei industrial park, using biochemical treatment and Fenton treatment technology for
wastewater treatment with a daily treatment capacity of 10,000 tons and are under good condition.
At present, the Company has built 15 natural gas boilers (20t/h) in the Jiangbei industrial park and
put them into operation, which adopt the advanced low NOX combustion technology of first-line brands
of German and are under good condition.
(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 Comprehensive Contingency Plan for Environmental
Emergencies of Wuliangye Yibin Co., Ltd., which has been filed with Yibin Environmental Protection
Bureau after expert review. On November 6, 2020, the Company carried out the "2020 Emergency Drill
for Environmental Emergencies", which tested the emergency response, the effectiveness of response
measures and the organization and coordination ability under emergency situations, and laid a solid
foundation for the construction of the Company's emergency response system.
(4) Environment self-monitoring scheme
According to the requirements of the document Self-monitoring and Information Disclosure Measure
for National Key Monitoring Enterprises (Trial) (HF [2013] No. 81), the Company disclosed its
self-monitoring scheme, annual report and self-monitoring data to the society on the Pollutant Source
Monitoring Information Management and Sharing Platform of Sichuan Province. From January to
December 2020, the Company disclosed totally 76,901 pieces of self-monitoring data.
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.
(5) Other environmental information to be disclosed
None.
47
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(6) Other information related to environmental protection
① Wuliangye has firmly established the concept of “lucid waters and lush mountains are invaluable
assets”, incorporated the concept of green development into the entire production process and
implemented the environmental protection responsibilities into all aspects of the Company. Established
a sound responsibility system for environmental protection of the Party and government leading body
and members and departments to clarify the responsibility for environmental protection.
② An Environmental Management Committee was set up, with the Chairman of the Company as
the Director, senior management as the Deputy Director and the first responsible person of the relevant
units as members, to coordinate and organize the implementation of the Company's environmental
protection work in general. An Energy and Environmental Protection Management Department was set
up, which is specifically responsible for the supervision of the implementation of environmental
protection work; an ecological environment inspection team was set up, which is responsible for the
supervision of the implementation of the ecological civilization construction in all units of the Company;
an environmental monitoring station was built, which is specifically responsible for the thematic
monitoring of pollutants emitted by all units; an environmental protection industry limited company was
set up, which is responsible for the "Three Wastes".
③ The Company actively promoted green projects
The Company fully carried out the construction of the coal-to-gas project to replace coal with clean
natural gas as a fuel for energy supply. The natural gas boilers adopt the advanced low-NOx combustion
technology of Saacke and Weishaupt, and at present, 15 horizontal type condensing natural gas boilers
(20t/h) have been built and put into operation.
Completion of the Songgong River (Wuliangye Section) Comprehensive Treatment Project,
including environmental protection ecological wetland construction, river wetland construction,
Songgong River channel cleanout and vegetation restoration on both sides, integrating landscape
function, demonstration function, pollution control function, become Wuliangye environmental protection
image window and industry demonstration benchmark.
④ In 2020, the Company treated 3.78 million tons of wastewater and the exhaust emission was
about 1.6 billion cubic meters, with 100% up-to-standard discharge/emission.
⑤ There was no environmental pollution accident in 2020.
⑥ The comprehensive use of discarded lees was 460,000 tons in 2020 and 1.31 million cubic
metres of recycled water were used throughout the year.
XIX. Note on other major events
□ Applicable √ Not applicable
The Company had no other major events to be explained during the reporting period.
XX. Major events of subsidiaries
√ Applicable □ Not applicable
48
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
The Company held the 71st meeting of the 5th board of directors by circulation and communication
on March 30-31, 2020 and reviewed and approved the proposals for the change of domicile of certain
wholly-owned subsidiaries and holding subsidiaries of the Company and the amendments to the Articles
of Association, as detailed in the Notice of Resolutions of the 71st Meeting of the 5th Board of Directors
disclosed by the Company on April 3, 2020 (2020/No. 002).
49
Wuliangye Yibin Co., Ltd. Annual Report 2020 (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
Issuance Capitalization
Bonus
Quantity Proportion of new of public Others Sub-total Quantity Proportion
share
shares reserve fund
I. Restricted shares 85,850,037 2.21% -28,302 -28,302 85,821,735 2.21%
1. State shareholding
2. State-owned legal person
shareholding
3. Other domestic shareholding 85,850,037 2.21% -28,302 -28,302 85,821,735 2.21%
Including:
Domestic legal person 85,641,285 2.21% 85,641,285 2.21%
shareholding
Domestic natural person
208,752 0.00% -28,302 -28,302 180,450 0.00%
shareholding
4. Foreign shareholding
Including: Overseas legal person
shareholding
Overseas natural person
shareholding
II. Unrestricted shares 3,795,757,968 97.79% 28,302 28,302 3,795,786,270 97.79%
1. Common share (in RMB) 3,795,757,968 97.79% 28,302 28,302 3,795,786,270 97.79%
2. Domestic listed foreign shares
3. Overseas listed foreign shares
4. Others
III. Sum of 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, it was caused by the combined effect of the release of locked-up shares
of the resigned officers of the Company and changes in the directors, supervisors and officers.
Approval of changes in shares
□ Applicable √ Not applicable
Transfer of share changes
□ Applicable √ Not applicable
50
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
Beginning Number of Ending
Number of restricted
Name of number of restricted shares number of Reason for being
shares increased in Date of release
shareholder restricted released in current restricted restricted
current period
shares period shares
Liu Release of lock-up
51,800 51,800 0 20200326
Zhongguo due to resign of officer
Lock-up due to resign
Chen Lin 73,643 24,548 98,191 20210531
of officer
Release of lock-up
Qiu Ping 1,500 1,500 0 due to resign of 20201127
supervisor
Enforcement of
restrictions on the
Cao Lock-up due to the sale to directors,
0 2,325 2,325
Hongying new supervisor supervisors and
officers during
their term of office
Total 126,943 26,873 53,300 100,516 -- --
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
51
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Unit: Share
Total preferred
Total common Total preferred
shareholders with voting
shareholders at shareholders with
Total common rights restored (if any) at
the end of the voting rights
shareholders at the end of the previous
353,582 previous month 421,559 restored (if any) at 0 0
the end of the month before the
before the the end of the
reporting period disclosure date of the
disclosure date of reporting period
reporting period (see
the Annual Report (see Note 8)
Note 8)
Shareholders holding more than 5% shares or top 10 shareholders
Increase Pledge or freezing
Number of
or
shares held at Number of Number of
Nature of Shareholding decrease
Name of shareholder the end of the restricted unrestricted
shareholder Proportion during the Status Quantity
reporting shares held shares held
reporting
period
period
Yibin State-Owned Assets State-owned
34.43% 1,336,548,020 1,336,548,020
Operation Co., Ltd. legal person
Sichuan Yibin Wuliangye State-owned
20.40% 791,823,343 791,823,343
Group Co., Ltd. legal person
Hong Kong Securities Clearing Overseas
6.17% 239,633,100 239,633,100
Co., Ltd. legal person
China Securities Finance
Others 2.38% 92,385,936 92,385,936
Corporation Limited
Central Huijin Asset State-owned
1.04% 40,192,100 40,192,100
Management Co., Ltd. legal person
China Life Insurance Company
Limited - Traditional - Ordinary
Insurance Others 0.86% 33,193,162 33,193,162
Product-005L-CT001
Shenzhen
Wuliangye Yibin Co., Ltd. -
Employee Stock Ownership Others 0.61% 23,696,280 23,696,280
Plan (Phase I)
Bank of China Limited - E Fund
Blue Chip Hybrid Securities Others 0.56% 21,858,499 21,858,499
Investment Fund
Bank of China Limited - CMF
CSI White Spirit Index
Others 0.54% 21,116,521 21,116,521
Classification Securities
Investment Fund
Shanghai Guotai Junan Others 0.50% 19,414,047 19,414,047
52
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Securities Asset Management
Co., Ltd. - Bank of
China-Guotai Junan Junxiang
Wuliangye No.1 Collective
Asset Management Plan
Explanations about the association Among the top 10 shareholders of the Company, Sichuan Yibin Wuliangye Group Co., Ltd. is a
relationship or concerted action among the wholly-owned subsidiary of Yibin Development Holding Group Co., Ltd., and it is unclear whether
above-mentioned shareholders other public shareholders have any association relationship or acting in concert.
Shareholding of top 10 shareholders with unrestricted shares
Number of Class of share
unrestricted shares
Name of shareholder
held at the end of the Class of share Quantity
reporting period
Common share
Yibin State-Owned Assets Operation Co., Ltd. 1,336,548,020 1,336,548,020
(in RMB)
Common share
Sichuan Yibin Wuliangye Group Co., Ltd. 791,823,343 791,823,343
(in RMB)
Common share
Hong Kong Securities Clearing Co., Ltd. 239,633,100 239,633,100
(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
33,193,162 33,193,162
Product-005L-CT001 Shenzhen (in RMB)
Common share
Bank of China Limited - E Fund Blue Chip Hybrid Securities Investment Fund 21,858,499 21,858,499
(in RMB)
Bank of China Limited - CMF CSI White Spirit Index Classification Securities Common share
21,116,521 21,116,521
Investment Fund (in RMB)
Common share
Bank of China Limited - E Fund Small Hybrid Securities Investment Fund 13,380,000 13,380,000
(in RMB)
Industrial and Commercial Bank of China Limited - Invesco Great Wall Common share
10,718,419 10,718,419
Emerging 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 Yibin
unrestricted public shareholders, and between top 10 unrestricted public Development Holding Group Co., Ltd., and it is unclear whether
shareholders and top 10 shareholders other public shareholders have any association relationship or
acting in concert.
Remarks: Yibin State-Owned Assets Operation Co., Ltd. has been renamed as Yibin Development
Holding Group Co., Ltd. in February 2021, for details, please refer to the Announcement on the Change
of Name of the Controlling Shareholder of the Company issued by the Company on February 22, 2021
53
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(2021/No. 004).
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
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 Development Holding Group operation within the scope
Hua Shurui August 04, 1999 915115007118234259
Co., Ltd. authorized by the People's
Government of Yibin City
Equity of other domestic and foreign
Yibin Development Holding Group Co., Ltd. directly holds 131,847,574 shares of Yibin Tianyuan
listed companies controlled and
Group Co., Ltd., taking up 16.88%; indirectly holds 79,368,520 shares of Yibin Paper Industry Co.,
participated by controlling shareholder
Ltd., taking up 44.87%.
during the reporting 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.
3. 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 representative/head Date of
Name of actual controller Organization code Primary business
of unit establishment
State-owned Assets Supervision and
Administration Commission of Yibin Deng Wenguang 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 131,847,574 shares of Yibin Tianyuan Group Co., Ltd., taking up 16.88%; indirectly holds
controller during the reporting period 79,368,520 shares of Yibin Paper Industry Co., Ltd., taking up 44.87%.
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
54
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
State-owned Assets Supervision and
Administration Commission of Yibin
Municipal Government
Yibin Development Holding Group Co., Ltd.
100%
34.43%
Sichuan Yibin Wuliangye Group Co., Ltd.
20.40%
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
55
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Section VII Preferred Share
□ Applicable √ Not applicable
The Company had no preferred shares during the reporting period.
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 2020 (Full Text)
Section IX Directors, Supervisors, Senior Management and Employees
I. Changes in shareholdings of directors, supervisors, and senior management
Increase in Decrease in
Number of shares Other Number of
Date number of number of
held at the increase/ shares held at
Name Position Status of service Gender Age Date of appointment ceasing to shares held in shares held in
beginning of the decrease the end of the
hold office current period current period
period (share) (share) period (share)
(share) (share)
Zeng Congqin Deputy Secretary of CPC, President Incumbent Male 52 September 27, 2019 Till now
Li Shuguang Secretary of CPC, Director Incumbent Male 58 April 21, 2017 Till now
Member of CPC, Director, Executive
Zou Tao Incumbent Male 42 July 21, 2018 Till now
Deputy General Manager
Jiang Wenge Member of CPC, Director Incumbent Male 54 May 10, 2019 Till now
Fu Nanping Independent Director Incumbent Male 59 July 18, 2014 Till now
Zhou Yousu Independent Director Incumbent Male 68 June 22, 2016 Till now
Gan Shengdao Independent Director Incumbent Male 54 November 18, 2016 Till now
Liu Feng Supervisor Incumbent Female 51 May 29, 2020 Till now
Yang Ling Supervisor Incumbent Female 34 May 29, 2020 Till now
Wu Guoping Employee Supervisor Incumbent Male 51 June 09, 2015 Till now
Cao Hongying Employee Supervisor Incumbent Female 54 June 5, 2020 Till now 3,100 3,100
57
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Member of CPC, Deputy General
Zhu Zhongyu Incumbent Male 57 July 18, 2014 Till now 11,501 11,501
Manager
Member of CPC, Deputy General
Tang Bochao Incumbent Male 56 July 18, 2014 Till now 20,000 20,000
Manager
Member of CPC, Deputy General
Tang Shengyun Incumbent Male 58 July 18, 2014 Till now 9,100 9,100
Manager
Member of CPC, Deputy General
Luo Wei Incumbent Male 56 July 18, 2014 Till now
Manager, Chief Financial Officer
Member of CPC, Deputy General
Zhao Dong Incumbent Male 56 July 21, 2018 Till now
Manager, Deputy Chief Engineer
Total -- -- -- -- -- -- 43,701 43,701
58
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
II. Change of directors, supervisors and senior management of the Company
√ Applicable □ Not applicable
Name Position Type Date Reason
Deputy Secretary of CPC,
November 27, Retired as director and senior management due to
Chen Lin Director, General Manager, Resigned
2020 reaching the mandatory age for retirement
Chief Engineer
Ren Ceased to be a supervisor due to appointment and
Supervisor Resigned May 29, 2020
Shiming dismission by the general meeting
Ceased to be a supervisor due to appointment and
Qiu Ping Supervisor Resigned May 29, 2020
dismission by the general meeting
Ceased to be an employee supervisor due to
Yang
Employee Supervisor Resigned June 6, 2020 appointment and dismission by the congress of workers
Yunxia
and staff
Appointment
Take the position of supervisor as appointed and
Liu Feng Supervisor and May 29, 2020
dismissed by the general meeting
dismission
Appointment
Take the position of supervisor as appointed and
Yang Ling Supervisor and May 29, 2020
dismissed by the general meeting
dismission
Appointment
Cao Take the position of employee supervisor as appointed
Employee Supervisor and June 6, 2020
Hongying and dismissed by the congress of workers and staff
dismission
Remarks: 1. On June 6, 2020, the board of supervisors of the Company nominated Mr. Jiang
Wenchun as the candidate for supervisor of the 5th board of supervisors of the Company, which had to
be submitted to the general meeting for consideration.
2. On August 25, 2020, the board of directors of the Company nominated Ms. Jiang Lin as the
candidate for non-independent director of the 5th board of director of the Company and nominated Mr.
Xie Zhihua, Mr. Wu Yue and Mr. Lang Dingchang as the candidates for independent directors of the 5th
board of director of the Company, 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, doctor’s degree. 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 Party Committee. At present, he
serves as the Deputy Secretary of CPC and Director of the Company, and Deputy Secretary of CPC and
59
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
General Manager of the Group Company.
2. Mr. Li Shuguang, bachelor degree, senior economist. He began to work in July 1983 and
successively 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,
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. 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.
4. Mr. Jiang Wenge, master degree. He began to work in August 1985 and once 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.
5. Mr. Fu Nanping, doctor’s degree. 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
60
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Company.
6. 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, as well as the Independent Director of Chengdu Huasun Technology Group Inc., Ltd.
7. Mr. Gan Shengdao, doctor’s degree. 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 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.
8. Ms. Liu Feng, bachelor degree. She began to work in July 1990 and once worked in Yibin
Tianyuan Group Co., Ltd., served as a teacher in technical school, headmaster of technical school and
director of training centre, vocational education administrator of labour and personnel department, staff
of technical reform project office, deputy director of design and research institute and deputy director of
staff education institute. She has successively served as the head of the political division of the Yibin
Agricultural Machinery Bureau, Party member of the Yibin Civil Air Defense Office, the head of the
discipline inspection team and the special inspector for discipline inspection and supervision. She now
serves as a member of the Party Committee and Secretary of Committee for Discipline Inspection of
Yibin Development Holding Group Co., Ltd.
9. Ms. Yang Ling, master degree. She began to work in July 2013 and successively served as the
financial officer of Geotechnical Company No. 3 of China Southwest Geotechnical Investigation &
Design Institute Co., Ltd., the deputy head of Comprehensive Budget Unit of Jiang'an County Finance
Bureau, the state-owned asset administrator, the deputy head of the state-owned assets department and
the deputy head of the finance department of Yibin State-Owned Assets Operation Co., Ltd. She now
serves as the head of the Financial Management Department of Yibin Development Holding Group Co.,
Ltd., and concurrently as a member of the Investment Decision Committee of Yibin Wuliangye Fund
Management Co., Ltd.
10. 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.
11. Ms. Cao Hongying, college degree, senior engineer. She began to work in Wuliangye Liquor
61
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Factory in December 1981, and served as the deputy head of the product R&D department of the
Company in December 2012, secretary of the Party branch of workshop 506 of the Company in August
2017, secretary of the Party branch and director of workshop 506 of the Company in May 2018,
secretary of the Party branch and director of workshop 506 of the Company in November 2020, and
concurrently as director of the Liquor Body Design Center. She now serves as the secretary of the Party
branch and director of workshop 506 of the Company, and concurrently as director of the Liquor Body
Design Center.
12. 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.
13. 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.
14. 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.
15. 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
Financial Officer of the Company.
16. 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 Wuliangye Yibin Co., Ltd. in July 2017, and
Deputy General Manager of the Company in July 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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Whether to receive
Date
Date of remuneration or
Name of staff Name of shareholder's unit Position in shareholder's unit ceasing to
appointment allowance in the
hold office
shareholder's unit
Sichuan Yibin Wuliangye Group
Li Shuguang Secretary of CPC, President No
Co., Ltd.
Sichuan Yibin Wuliangye Group Deputy Secretary of CPC, Vice No
Zeng Congqin
Co., Ltd. President, General Manager
Sichuan Yibin Wuliangye Group No
Zou Tao Member of CPC, Vice President
Co., Ltd.
Sichuan Yibin Wuliangye Group Member of CPC, Director, No
Jiang Wenge
Co., Ltd. Deputy General Manager
Member of CPC, Secretary of
Yibin Development Holding Group
Liu Feng Committee for Discipline Yes
Co., Ltd.
Inspection
Yibin Development Holding Group Head of Financial Management
Yang Ling Yes
Co., Ltd. Department
Service status in other units
√ Applicable □ Not applicable
Whether to
Date receive
Date of
Name of staff Name of other unit Position in other unit ceasing to remuneration or
appointment
hold office allowance in other
units
Business Inspector and Yes
Fu Nanping Guotai Junan Securities Co., Ltd.
Supervisor
Sichuan Academy of Social
Researcher, professor
Sciences
Zhou Yousu Yes
Chengdu Huasun Technology
Independent Director
Group Inc., Ltd.
Professor, doctoral
Sichuan University supervisor, and post-doctoral Yes
co-supervisor in accounting
Sichuan Yahua Industrial Group
Co., Ltd., Sinoseal Holding Co.,
Gan Shengdao
Ltd., Chengdu XGimi Technology Independent Director
Co., Ltd., and RML Technology Co., Yes
Ltd.
Outside Director of Sichuan Huashi
Outside Director
Group Ltd.
Zou Tao Wuliang NongXiang Series Baijiu President No
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Yibin Co., Ltd.
Yibin Wuliangye Xianlin Ecological
President
Liquor Co., Ltd.
Zhu Zhongyu No
Yibin Wuliangye Liquor Sales Co., Executive Deputy General
Ltd. Manager
Tang Bochao Oriental Outlook Media Co., Ltd. Vice President No
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.
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Remuneration of directors, supervisors and senior management of the Company during the
reporting period
Unit: RMB '0,000
Whether to get
Total
remuneration
Status of remuneration
Name Position Gender Age from related
service received from the
parties of the
Company
Company
Zeng Congqin President Male 52 Incumbent 69.5 No
Li Shuguang Director Male 58 Incumbent 109.53 No
Zou Tao Director Male 42 Incumbent 101.11 No
Jiang Wenge Director Male 54 Incumbent 99.51 No
Fu Nanping Independent Director Male 59 Incumbent 10 No
Zhou Yousu Independent Director Male 68 Incumbent 10 No
Gan
Independent Director Male 54 Incumbent 10 No
Shengdao
Liu Feng Supervisor Male 51 Incumbent Yes
Yang Ling Supervisor Male 34 Incumbent Yes
Wu Guoping Employee Supervisor Male 51 Incumbent 60.92 Yes
Cao Hongying Employee Supervisor Female 54 Incumbent 158.58 No
Zhu Zhongyu Deputy General Manager Male 57 Incumbent 100.11 No
Tang Bochao Deputy General Manager Male 56 Incumbent 100.06 No
Tang
Deputy General Manager Male 58 Incumbent 100.29 No
Shengyun
Deputy General Manager, Chief
Luo Wei Male 56 Incumbent 99.51 No
Financial Officer
Deputy General Manager,
Zhao Dong Male 56 Incumbent 100.53 No
Deputy Chief Engineer
Total -- -- -- -- 1,129.65 --
Remarks: 1. Allowances received by the independent directors were tax-inclusive.
2. The total remuneration of directors and senior management (other than independent directors)
represents the aggregate of the base remuneration for 2020 and the performance-based remuneration
advanced for 2019 and 2020 during the reporting period. Employee supervisor, Wu Guoping received an
allowance of RMB 40,200 from the Group Company.
Equity incentive granted to directors and officers of the Company during the reporting period
□ Applicable √ Not applicable
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
V. Company employees
1. Number, professional composition and educational background of employees
Number of employees in the parent company (person) 17,589
Number of employees in main subsidiaries (person) 8,293
Total employees (person) 25,882
Total employees receiving salary in the current period
25,882
(person)
Number of part-time workers (persons) 2,066
Number of retired employees whose expenses need to be
borne by the parent company and main subsidiaries 180
(person)
Professional composition
Category of professional composition Number of professionals (person)
Production personnel 19,450
Marketing personnel 1,156
Technician 4,048
Financial personnel 203
Administrative personnel 1,025
Total 25,882
Educational background
Category of education background Number (person)
College and above 5,665
Senior high school to college 12,697
Middle school and below 7,520
Total 25,882
2. Remuneration policy
The remuneration policies currently implemented by the Company are the "Trial Measures for the
Management of Total Wages of Municipal Supervised Enterprises in Yibin City" (YGZW [2019] No. 205),
the "Interim Provisions on Wage Management" (YWJR [2009] No. 264) and the "Trial Measures for the
Management of Total Wages of Subsidiaries" (YWJR [2020] No. 4).
3. Training plan
In 2021, 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
66
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 124 trainings at
company level, 111 trainings at department level, 246 trainings at workshop level, 103 external trainings,
and 58 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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (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
68
Wuliangye Yibin Co., Ltd. Annual Report 2020 (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
Meeting session Meeting type participation Convening date Disclosure date Disclosure index
proportion
Annual
Annual General CNINFO
general 71.79% May 29, 2020 May 30, 2020
Meeting 2019 (http://www.cninfo.com.cn)
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 Number of
Number of board Number of Number of Whether fails to Number of
Name of board meetings board
meetings board meetings board personally attend the general
independent to be attended meetings
attended by delegated to meetings board meeting for two meetings
director during the attended on
correspondence attend absent consecutive times attended
reporting period site
Fu Nanping 13 2 11 0 0 No 1
Zhou Yousu 13 2 11 0 0 No 1
Gan Shengdao 13 2 11 0 0 No 1
Note on failure to personally attend the board meeting for two consecutive times
Not applicable
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
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) 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,
listening to the report on the promotion of key projects and the work summary of the 13th Five-Year, as
well as discussing the 14th Five-Year Plan.
(II) 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 2020,
semi-annual report of 2020, and the 3rd quarter report of 2020 and form resolutions; 2. Review the
Company's renewal of employment of the accounting firm in 2021 and the audit budget, and form
resolutions; 3. Determine the timing of audit of the financial and accounting statements 2020 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 of 2020; 5.
Review, for the first time, the summary financial and accounting statements of 2020 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
70
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
report; and 7. The audit committee further reviewed the Company's financial and accounting statements
2020 and form resolutions after the CPAs for the annual audit issued the preliminary audit opinions.
(III) Nomination committee
The nomination committee convened one meeting during the reporting period according to relevant
provisions of the Implementation Rules for Nomination Committee of the Company, and agreed to
nominate Ms. Jiang Lin as a candidate for non-independent director of the 5th board of directors of the
Company and nominate Mr. Xie Zhihua, Mr. Wu Yue and Mr. Lang Dingchang as candidates for
independent director of the 5th board of directors of the Company.
(IV) 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 2020 during the reporting period.
(V) 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 duties reviewed and
approved the Annual Budget Scheme 2020 and the Comprehensive Budget Adjustment Scheme 2020
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, 2021
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
100.00%
total assets of the consolidated financial statement of the Company
Proportion of operating revenue of the unit included in the evaluation scope to
100.00%
the operating revenue of the consolidated financial statement of the Company
71
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Defect identification standard
Category Financial Report Non-financial report
1. Major defects: (1) In violation of national
laws, regulations, or normative documents.
1. Major defects: (1) Correction by the
(2) Unscientific enterprise decision-making
Company of the financial statements which have
procedure, such as wrong decision, which
been published. (2) Materials misstatements
causes failure of major transactions. (3) Loss of
found by the external auditor in current financial
management personnel or technician of
statements which have not been identified. (3)
important posts. (4) Lack of institutional control
Corrupt practice of directors, supervisors, and
or systematic failure of the institution for
senior management found by the external auditor.
important businesses, and existence but
(4) Ineffective supervision of internal control by
ineffective operation of institutional guidance for
the Company’s internal audit department. (5)
internal control of important economic business.
Major defects previously found but were not
(5) Failure to correct major defect within a
corrected within a reasonable period or were
reasonable period.
Qualitative standard ineffectively corrected.
2. Important defects: (1) Property loss not
2. Important defects: (1) Failure to select and
reaching or exceeding the level of materiality but
apply accounting policies in accordance with
should be noticed by the board of directors and
generally accepted accounting principles. (2)
the management in nature. (2) Individual
Failure to effectively control irregular
events criticized by government departments,
(non-repeating) or complicated transactions. (3)
causing moderate negative influence on
Failure to effectively control the anti-corrupt work.
reputation of the Company. (3) Violation of
(4) Ineffective internal control over the financial
internal rules and regulations of the enterprise
report at the end of the period.
and causing losses. (4) Defect in important
3. Common defects: Defects other than major
business mechanism or system.
defects and important defects are recognized as
3. Common defects: Other defects in internal
common defects.
control other than major defects and important
defects.
1. Major defects: Misstatement amount >3% of
total operating revenue; misstatement
amount >10% of net profit; misstatement
amount >3% of total assets.
2. Important defects: 1% of total operating 1. Major defects: Proportion of loss to net
revenue < misstatement amount ≤ 3% of total profit ≥5%.
operating revenue; 5% of net profit < 2. Important defects: 3%≤ proportion of loss to
Quantitative standard
misstatement amount ≤ 10% of net profit; 1% of net profit <5%.
total assets < misstatement amount ≤ 3% of total 3. Common defects: Proportion of loss to net
assets. profit <3%.
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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, 2020.
Disclosure of internal control audit report Disclosed
Disclosure date of internal control audit
April 28, 2021
report (full text)
Disclosure index of internal control audit
Refer to CNINFO (http://www.cninfo.com.cn) for details
report (full text)
Type of opinions of internal control audit
Standard unqualified opinion
report
Whether non-financial report has major
No
defects
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
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Section XII Financial Report
I. Audit Report
Type of audit opinion Standard unqualified opinion
Date of signing the Audit Report April 25, 2021
Name of Audit Firm Sichuan Huaxin (Group) CPA (LLP)
Audit Report No. CHXS (2021) No. 0028
Name of CPAs Li Min, Liu Jun, Ye Juan
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, 2020, 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
2020 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, 2020 and of the consolidated financial performance and cash flows and
financial performance and cash flows of parent company for the year 2020 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:
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Key audit matters Addressed in the context of our audit
(I) Existence and integrity of cash and cash equivalents
Refer to notes to financial With respect of cash and cash equivalents, we conducted the following audit
statements "V. Notes to procedures:
consolidated financial statements, 1. Understand, test, and evaluate key internal controls related to the management
1. Cash and cash equivalents". of cash and cash equivalents;
As of December 31, 2020, the 2. Obtain list of bank accounts opened, and check the books of the Company
balance of cash and cash against the bank account information and integrity of the bank accounts;
equivalents of the Company was 3. Obtain the bank statement and bank reconciliation for external confirmation of
RMB 68,209,577,000 taking up the bank accounts, and control the process of external confirmation;
59.89% of the total assets. The 4. Supervise the originals of certificate of fixed deposit, and pay attention to the
safety of deposit, accuracy and holders of certificate of fixed deposit and other information.
integrity of balance have great 5. Obtain credit report of the enterprise and check whether the cash and cash
impact on the financial statements equivalents are under mortgage, charge or frozen;
due to the large amount of balance 6. At the end of the period, the amount deposited with Sichuan Yibin Wuliangye
of cash and cash equivalents and Group Finance Co., Ltd. was RMB 28,600,538,900 in total. Check the deposit and
large number of bank accounts, loan businesses of Sichuan Yibin Wuliangye Group Finance Co., Ltd.
therefore we consider the existence We believe that the above audit procedures can support the management of the
and integrity of cash and cash Company in determining the existence and integrity of cash and cash equivalents.
equivalents as a key audit matter.
(II) Integrity of disclosure of association relationships and related transactions
Please refer to notes to With respect of association relationships and related transactions, we conducted the
financial statement "IX. Related following audit procedures:
parties and related transactions". 1. Understand the procedures of the Company for related party identification,
In 2020, the Company had evaluate and test the internal control of the Company for identifying and disclosing
different categories of related association relationships and related transactions;
transactions with related parties in 2. Obtain the list of association relationships provided by the management, and
large amount. There is a risk of check against the information obtained from other public channels; review the major
failing to fully disclosure the sales, purchase, and other transactions to identify any association relationship not
association relationships and being disclosed;
related transactions in the notes to 3. Obtain the amount of related transactions and details of the balance provided by
financial statements due to large the management and check against the financial records;
number of related parties and 4. Sample the amount and balance of related transactions for external confirmation;
involving in various types of related 5. Obtain the resolutions of the board of directors and those of the general meeting
transactions, therefore we consider concerning the related transactions, and check against the list of association
integrity of disclosure of association relationships, amount and balance of related transactions provided by the
relationships and related management;
transactions as a key audit matter. 6. Obtain statement of the management about integrity of the 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.
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
IV. Other information
The management of the Company is responsible for other information. Such information includes
the information covered in the Annual Report 2020, 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
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
76
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
Chinese Certified Public Accountant: Ye Juan
April 25, 2021
77
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
II. Financial Statements
Unit of notes to financial statements: RMB
1. Consolidated Balance Sheet
Prepared by: Wuliangye Yibin Co., Ltd. December 31, 2020 Unit: RMB Yuan
Item December 31, 2020 December 31, 2019
Current assets:
Cash and cash equivalents 68,209,577,022.61 63,238,825,723.79
Settlement reserves
Capital lent
Trading financial assets
Derivative financial assets
Notes receivable 18,568,421,154.30 14,643,149,595.72
Accounts receivable 41,496,170.35 134,449,693.03
Accounts receivable financing 2,024,442,016.72 3,450,166,659.06
Prepayments 247,259,080.42 231,909,140.09
Premium receivable
Reinsurance receivables
Contract reserve of reinsurance
Other receivables 36,199,607.12 1,248,644,572.40
Including: Interest receivable 1,215,275,214.91
Dividends receivable
Purchase restituted finance asset
Inventory 13,228,273,631.45 13,679,619,615.41
Contract asset
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 102,355,668,682.97 96,626,764,999.50
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Long-term equity investment 1,849,977,103.30 1,021,778,731.59
Other equity instrument investment
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment properties
Fixed assets 5,866,880,860.03 6,108,745,912.72
Construction in progress 1,482,098,184.64 812,428,248.30
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 433,611,890.55 410,155,227.81
Development expenditures
Goodwill 1,621,619.53 1,621,619.53
Long-term deferred expenses 122,881,072.66 91,601,331.96
Deferred income tax assets 1,486,071,579.95 1,157,391,979.00
Other non-current assets 293,128,020.09 165,284,283.25
Total non-current assets 11,537,470,330.75 9,770,207,334.16
Total assets 113,893,139,013.72 106,396,972,333.66
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liabilities
Derivative financial liabilities
Notes payable 763,628,891.84 419,485,425.61
Accounts payable 3,382,875,146.71 3,257,672,975.56
Accounts received in advance 23,949,793.92 12,530,706,854.77
Contract liability 8,618,543,467.25
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Payroll payable 3,629,524,988.52 3,594,886,729.81
Tax payable 5,542,200,330.67 7,939,166,588.84
Other payables 2,800,763,582.13 2,292,680,733.51
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Including: Interest payable
Dividend payable 37,918,093.23
Commission charge and commission
payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 1,117,452,799.61
Total current liabilities 25,878,939,000.65 30,034,599,308.10
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 255,953,368.36 266,325,368.40
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 255,953,368.36 266,325,368.40
Total liabilities 26,134,892,369.01 30,300,924,676.50
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 19,698,525,995.51 16,092,197,023.01
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Provision for general risk
Undistributed profit 59,443,191,559.08 51,634,248,548.06
Total owners’ equity attributable to parent
85,705,972,645.74 74,290,700,662.22
company
Minority equity 2,052,273,998.97 1,805,346,994.94
Total owners’ equity 87,758,246,644.71 76,096,047,657.16
Total liabilities and owners’ equity 113,893,139,013.72 106,396,972,333.66
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 Yuan
Item December 31, 2020 December 31, 2019
Current assets:
Cash and cash equivalents 35,797,929,213.94 28,257,367,404.51
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 75,493,465.93 80,520,520.72
Other receivables 7,066,125,125.42 10,126,706,853.03
Including: Interest receivable 570,078,014.35
Dividends receivable 734,729,782.94 654,791,389.27
Inventory
Contract asset
Assets held for sale
Non-current assets due within one
year
Other current assets
Total current assets 42,939,547,805.29 38,464,594,778.26
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 13,315,418,495.83 10,609,783,624.61
81
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Other equity instrument investment
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment properties
Fixed assets 94,199,222.32 100,266,366.93
Construction in progress 105,734,347.80 100,358,221.33
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 44,593,088.87 39,222,336.12
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 2,288,329.69 2,202,432.10
Other non-current assets
Total non-current assets 13,563,433,484.51 10,853,032,981.09
Total assets 56,502,981,289.80 49,317,627,759.35
Current liabilities:
Short-term loans
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 781,064.42 418,136.00
Accounts received in advance
Contract liability
Payroll payable 8,803,447.13 8,811,734.27
Tax payable 33,466,208.83 30,732,337.42
Other payables 210,715,274.14 285,450,874.79
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 253,765,994.52 325,413,082.48
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 500,000.00 1,000,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 500,000.00 1,000,000.00
Total liabilities 254,265,994.52 326,413,082.48
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 9,464,358,442.95 7,884,654,620.01
Undistributed profit 40,220,101,761.18 34,542,304,965.71
Total owners’ equity 56,248,715,295.28 48,991,214,676.87
Total liabilities and owners’ equity 56,502,981,289.80 49,317,627,759.35
3. Consolidated Income Statement
Unit: RMB Yuan
Item Year 2020 Year 2019
I. Total operating revenue 57,321,059,453.15 50,118,105,877.14
Including: Operating revenue 57,321,059,453.15 50,118,105,877.14
Interest revenue
Premium earned
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Commission charge and
commission revenue
II. Total operating cost 29,738,554,309.94 26,123,144,090.12
Including: Operating cost 14,811,961,478.65 12,802,259,947.34
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 8,092,348,596.10 6,984,343,102.55
Selling expenses 5,578,918,523.98 4,985,579,336.77
Administrative expenses 2,609,529,686.09 2,655,347,148.09
Research and
131,315,225.33 126,360,421.11
development expense
Financial expenses -1,485,519,200.21 -1,430,745,865.74
Including: Interest expense
Interest revenue 1,521,933,975.40 1,416,398,912.72
Plus: Other incomes 162,373,770.41 159,712,241.81
Investment income (loss indicated
93,504,494.16 92,500,753.05
with “-”)
Including: Investment revenue from
93,504,494.16 92,500,753.05
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 1,024,420.84 -1,133,580.27
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(loss indicated with “-”)
Asset impairment loss
-14,113,185.98 -3,020,763.91
(loss indicated with “-”)
Gain from disposal of
1,129,293.57 2,779,400.03
assets (loss indicated with “-”)
III. Operating profit (loss indicated with
27,826,423,936.21 24,245,799,837.73
“-”)
Plus: Non-operating revenue 40,661,952.32 29,890,272.65
Less: Non-operating expenditure 188,638,670.83 169,678,066.85
IV. Total profit (total loss indicated with
27,678,447,217.70 24,106,012,043.53
“-”)
Less: Income tax expenses 6,765,106,808.16 5,877,756,764.92
V. Net profit (net loss indicated with “-”) 20,913,340,409.54 18,228,255,278.61
(I) Classification by business
continuity
1. Net profit from continuing
20,913,340,409.54 18,228,255,278.61
operations (net loss indicated with “-”)
2. Net profit from discontinued
operations (net loss indicated with “-”)
(II) Classification by ownership
1. Net profit attributable to
19,954,809,594.52 17,402,164,190.16
shareholders of the parent company
2. Minority interest income 958,530,815.02 826,091,088.45
VI. Net amount of other comprehensive
income after tax
Net amount of other comprehensive
income after tax attributable to owner of
parent company
(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 and loss under the equity method
3. Changes in fair value of
other equity instrument investment
85
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
and loss under the equity method
2. Changes in fair value of
other debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Credit impairment provision
for other debt investments
5. Cash flow hedge reserve
6. Balance arising from the
translation of foreign currency financial
statements
7. Others
Net amount of other comprehensive
income after tax attributable to minority
shareholders
VII. Total comprehensive income 20,913,340,409.54 18,228,255,278.61
Total comprehensive income
19,954,809,594.52 17,402,164,190.16
attributable to owner of parent company
Total comprehensive income
958,530,815.02 826,091,088.45
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 5.141 4.483
(II) Diluted earnings per share 5.141 4.483
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
4. Income Statement of Parent Company
Unit: RMB Yuan
Item Year 2020 Year 2019
I. Operating revenue 40,800.00 557,807.81
Less: Operating cost 0.00 0.00
Tax and surcharges 76,817.34 530,756.77
Selling expenses
Administrative expenses 117,170,397.30 112,675,199.88
Research and development
42,712,530.27 42,509,849.28
expense
Financial expenses -903,071,222.56 -747,727,624.11
Including: Interest expense
Interest revenue 903,108,973.17 747,767,664.67
Plus: Other incomes 13,198,222.54 2,672,800.00
Investment income (loss
15,335,974,898.92 11,979,399,612.91
indicated with “-”)
Including: Investment
91,885,853.76 92,458,647.87
revenue from 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 “-”)
Income from changes of fair
value (loss indicated with “-”)
Credit impairment loss (loss
-343,590.35 -506,172.26
indicated with “-”)
Asset impairment loss (loss
indicated with “-”)
Gain from disposal of assets
(loss indicated with “-”)
II. Operating profit (loss indicated with
16,091,981,808.76 12,574,135,866.64
“-”)
Plus: Non-operating revenue 10,278,787.15 670,614.65
Less: Non-operating expenditure 160,529,678.78 147,551,770.23
III. Total profit (total loss indicated with 15,941,730,917.13 12,427,254,711.06
87
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
“-”)
Less: Income tax expenses 144,692,687.72 108,026,839.29
IV. Net profit (net loss indicated with “-”) 15,797,038,229.41 12,319,227,871.77
(I) Net profit from continuing
15,797,038,229.41 12,319,227,871.77
operations (net loss indicated with “-”)
(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 and 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
and loss under the equity method
2. Changes in fair value of
other debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Credit impairment provision
for other debt investments
5. Cash flow hedge reserve
6. Balance arising from the
translation of foreign currency financial
statements
88
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
7. Others
VI. Total comprehensive income 15,797,038,229.41 12,319,227,871.77
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB Yuan
Item Year 2020 Year 2019
I. Cash flows from operating activities:
Cash received from the sales of
62,667,576,569.99 63,111,448,367.92
goods and the rendering of services
Net increase in customer deposit and
interbank deposit
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 56,724,988.21 29,278,082.30
Other cash received relating to
2,243,660,435.98 1,463,776,630.55
operating activities
Sub-total of cash inflows from operating
64,967,961,994.18 64,604,503,080.77
activities
Cash payments for goods purchased
17,340,551,154.28 16,858,330,333.04
and services received
Net increase of customer loans and
advances
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
5,740,856,054.71 5,633,645,226.36
employee
Payments of all types of taxes 23,227,933,861.45 15,634,936,299.82
Other cash paid relating to operating
3,960,293,330.53 3,365,519,180.89
activities
Sub-total of cash outflows from operating
50,269,634,400.97 41,492,431,040.11
activities
Net cash flows from operating activities 14,698,327,593.21 23,112,072,040.66
II. Cash flows from investing activities:
Cash received from disposals and
withdraw on investment
Cash received from investment
income
Net cash received from disposals of
fixed assets, intangible assets and other 6,438,616.16 92,050,811.98
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 investing
6,438,616.16 92,050,811.98
activities
Cash payments to acquire and
construct fixed assets, intangible assets 993,760,087.19 1,698,655,125.66
and other long-term assets
Cash payments to acquire
734,693,877.55 9,800,000.00
investments
Net increase of mortgaged loans
Net cash payments for acquisitions of
subsidiaries and other business units
90
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Other cash payments relating to
investing activities
Sub-total of cash outflows from investing
1,728,453,964.74 1,708,455,125.66
activities
Net cash flows from investing activities -1,722,015,348.58 -1,616,404,313.68
III. Cash flows from financing activities:
Cash received from investors in
15,000,000.00
making investment in the enterprise
Including: Cash received from
subsidiaries’ absorption of minority
shareholders’ investment
Cash received from borrowings
Other cash received relating to
financing activities
Sub-total of cash inflows from financing
15,000,000.00
activities
Cash repayments of amounts
borrowed
Cash paid for distribution of dividends
9,228,223,328.76 7,251,646,962.56
or profits, or cash payments for interests
Including: Dividends and profits paid
688,685,717.76 652,913,354.06
by subsidiaries to minority shareholders
Other cash payments relating to
financing activities
Sub-total of cash outflows from financing
9,228,223,328.76 7,251,646,962.56
activities
Net cash flows from financing activities -9,213,223,328.76 -7,251,646,962.56
IV. Effect of foreign exchange rate
-130,439.21 63,661.42
changes on cash and cash equivalents
V. Net increase in cash and cash
3,762,958,476.66 14,244,084,425.84
equivalents
Plus: Beginning balance of cash and
63,204,133,323.79 48,960,048,897.95
cash equivalents
VI. Ending balance of cash and cash
66,967,091,800.45 63,204,133,323.79
equivalents
91
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
6. Cash Flow Statement of Parent Company
Unit: RMB Yuan
Item Year 2020 Year 2019
I. Cash flows from operating activities:
Cash received from the sales of
40,800.00 592,800.00
goods and the rendering of services
Receipts of tax refunds
Other cash received relating to
3,721,490,020.40 3,324,064,952.46
operating activities
Sub-total of cash inflows from operating
3,721,530,820.40 3,324,657,752.46
activities
Cash payments for goods
purchased and services received
Cash paid to employee and for
94,250,407.74 83,616,698.28
employee
Payments of all types of taxes 143,335,903.87 113,260,133.25
Other cash paid relating to
471,475,162.79 342,415,572.20
operating activities
Sub-total of cash outflows from operating
709,061,474.40 539,292,403.73
activities
Net cash flows from operating activities 3,012,469,346.00 2,785,365,348.73
II. Cash flows from investing activities:
Cash received from disposals and
withdraw on investment
Cash received from investment
15,164,150,651.49 11,574,757,006.40
income
Net cash received from disposals of
fixed assets, intangible assets and other 5,513.55
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 investing
15,164,150,651.49 11,574,762,519.95
activities
Cash payments to acquire and
construct fixed assets, intangible assets 11,002,115.83 1,043,835.63
and other long-term assets
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Cash payments to acquire
2,613,749,017.46 169,473,007.80
investments
Net cash payments for acquisitions
of subsidiaries and other business units
Other cash payments relating to
investing activities
Sub-total of cash outflows from investing
2,624,751,133.29 170,516,843.43
activities
Net cash flows from investing activities 12,539,399,518.20 11,404,245,676.52
III. Cash flows from financing activities:
Cash received from investors in
making investment in the enterprise
Cash received from borrowings
Other cash received relating to
financing activities
Sub-total of cash inflows from financing
activities
Cash repayments of amounts
borrowed
Cash paid for distribution of
dividends or profits, or cash payments for 8,539,537,611.00 6,598,733,608.50
interests
Other cash payments relating to
financing activities
Sub-total of cash outflows from financing
8,539,537,611.00 6,598,733,608.50
activities
Net cash flows from financing activities -8,539,537,611.00 -6,598,733,608.50
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
7,012,331,253.20 7,590,877,416.75
equivalents
Plus: Beginning balance of cash
28,257,367,404.51 20,666,489,987.76
and cash equivalents
VI. Ending balance of cash and cash
35,269,698,657.71 28,257,367,404.51
equivalents
93
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
7. Consolidated Statement of Changes in Owners' Equity
Amount of current period
Unit: RMB Yuan
Year 2020
Owner’s equity attributable to parent company
Other equity instruments
Item Less: Other
Special Provision for Minority equity Total owners’ equity
Capital stock Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Undistributed profit Others Sub-total
Others reserves general risk
share bond stock income
I. Ending
balance of previous 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
year
Plus: Changes
in accounting policy
Correction of prior
errors
Business
combination involving
enterprises under the
same control
Others
II.Beginning balance
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
of current year
III.Increase/decrease 3,606,328,972.50 7,808,943,011.02 11,415,271,983.52 246,927,004.03 11,662,198,987.55
94
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
in the current period
(decrease indicated
with “-”)
(I) Total
comprehensive 19,954,809,594.52 19,954,809,594.52 958,530,815.02 20,913,340,409.54
income
(II) Capital paid in
and reduced by 15,000,000.00 15,000,000.00
owners
1. Common stocks
15,000,000.00 15,000,000.00
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
3,606,328,972.50 -12,145,866,583.50 -8,539,537,611.00 -726,603,810.99 -9,266,141,421.99
distribution
1.Withdrawal of
3,606,328,972.50 -3,606,328,972.50
surplus reserve
2.Withdrawal of
provision for general
risk
3.Distribution to -8,539,537,611.00 -8,539,537,611.00 -726,603,810.99 -9,266,141,421.99
95
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
owners (or
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
96
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
1.Withdrawal of
current period
2. Use of current
period
(VI) Others
IV. Ending
balance of current 3,881,608,005.00 2,682,647,086.15 19,698,525,995.51 59,443,191,559.08 85,705,972,645.74 2,052,273,998.97 87,758,246,644.71
period
97
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Amount of previous period
Unit: RMB Yuan
Year 2019
Owner’s equity attributable to parent company Total owners’
Other equity instruments equity
Item Provision
Less: Other
Special for Undistributed Minority equity
Capital stock Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Others Sub-total
Others reserves general profit
share bond stock income
risk
I. Ending balance
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
of previous year
Plus: Changes in
accounting policy
Correction of prior
errors
Business
combination
involving
enterprises under
the same control
Others
II. Beginning
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
year
III. 2,971,785,992.59 7,831,644,589.07 10,803,430,581.66 173,177,734.39 10,976,608,316.05
98
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Increase/decrease
in the current
period (decrease
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
2,971,785,992.59 -9,570,519,601.09 -6,598,733,608.50 -652,913,354.06 -7,251,646,962.56
distribution
1. Withdrawal of
2,971,785,992.59 -2,971,785,992.59
surplus reserve
2. Withdrawal of
provision for
99
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
100
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
6. Others
(V) Special
reserves
1. Withdrawal of
current period
2. Use of current
period
(VI) 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
101
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
8. Statement of Changes in Owners' Equity of Parent Company
Amount of current period
Unit: RMB Yuan
Year 2020
Other equity instruments
Other
Less:
Item compreh Special
Capital stock Preferred Perpetual Capital reserve Treasury Surplus reserve Undistributed profit Others Total owners’ equity
Others ensive reserves
share bond stock
income
I. Ending balance of
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
previous year
Plus: Changes in
accounting policy
Correction of prior errors
Others
II. Beginning balance of
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
current year
III. Increase/decrease in
the current period
1,579,703,822.94 5,677,796,795.47 7,257,500,618.41
(decrease indicated with
“-”)
(I) Total comprehensive
15,797,038,229.41 15,797,038,229.41
income
(II) Capital paid in and
reduced by owners
102
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 1,579,703,822.94 -10,119,241,433.94 -8,539,537,611.00
1. Withdrawal of surplus
1,579,703,822.94 -1,579,703,822.94
reserve
2. Distribution to owners
-8,539,537,611.00 -8,539,537,611.00
(or shareholders)
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
103
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
(VI) Others
IV. Ending balance of
3,881,608,005.00 2,682,647,086.15 9,464,358,442.95 40,220,101,761.18 56,248,715,295.28
current period
104
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Amount of previous period
Unit: RMB Yuan
Year 2019
Other equity instruments Other
Less:
Item compreh Special
Capital stock Preferred Perpetual Capital reserve Treasury Surplus reserve Undistributed profit Others Total owners’ equity
Others ensive reserves
share bond stock
income
I. Ending balance of
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
previous year
Plus: Changes in
accounting policy
Correction of prior errors
Others
II. Beginning balance of
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
current year
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
12,319,227,871.77 12,319,227,871.77
income
(II) Capital paid in and
reduced by owners
1. Common stocks
invested by owners
2. Capital invested by
105
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
1,231,922,787.18 -1,231,922,787.18
reserve
2. Distribution to owners
-6,598,733,608.50 -6,598,733,608.50
(or shareholders)
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
106
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
5. Carry forward retained
earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawal of current
period
2. Use of current period
(VI) Others
IV. Ending balance of
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
current period
107
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
III. Company Profile
1. Company history
Wuliangye Yibin Co., Ltd. (hereinafter referred to as "Company" and 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: 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
108
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Administration Commission of the State Council (GZCQ (2012) No.889), Yibin State-Owned Assets
Operation Co., Ltd. (renamed as Yibin Development Holding Group Co., Ltd. in 2021) transferred
761,823,343 shares held by it in the Company to Sichuan Yibin Wuliangye Group Co., Ltd. for free on
October 10, 2012. After this free transfer of shares, Yibin Development Holding Group Co., Ltd. still
held 36% shares of the Company (i.e. 1,366,548,020 shares) and was the first majority shareholder of
the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07% shares of the Company (i.e.
761,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group
Co., Ltd. (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 Development Holding Group 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 on April 12, 2018. 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.
According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd.
(YGZW (2020) No.157), issued by Yibin State-owned Assets Supervision and Administration
Commission, the transfer was approved in principle. On August 24, 2020, Yibin State-Owned Assets
Operation Co., Ltd. transferred 30,000,000 shares held by it in the Company to Wuliangye Group
Company for free. After this free transfer of shares, Yibin State-Owned Assets Operation Co., Ltd. still
held 34.43% shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder
of the Company; Wuliangye Group Company, holding 20.4% shares of the Company (i.e. 791,823,343
shares), was the second majority shareholder of the Company. As a result of this transfer of shares,
without changing the controlling shareholder and actual controller of the Company, Yibin State-Owned
Assets Operation Co., Ltd. remained the controlling shareholder of the Company, and Yibin
State-owned Assets Supervision and Administration Commission remained the actual controller of the
Company.
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 25, 2021, 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, 2020, subsidiaries included in the scope of consolidated financial statements
109
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
of the Company were:
Shareholding
Full name of subsidiary Type of subsidiary Tier Proportion of votes
proportion
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.,
Holding subsidiary Second-tier 95.00% 95.00%
Ltd.
Yibin Wuliangchun Brand Marketing Co., Ltd Holding subsidiary Second-tier 95.00% 95.00%
Yibin Wuliangye Series Liquor Brand Marketing Co.,
Holding subsidiary Second-tier 95.00% 95.00%
Ltd.
Sichuan Yibin Wuliangye Supply and Marketing Co.,
Holding subsidiary First-tier 99.95% 99.95%
Ltd.
Yibin Jiangjiu Liquor Co., Ltd. Wholly-owned subsidiary First-tier 100.00% 100.00%
Sichuan Yibin Wuliangye Environmental Protection
Holding subsidiary First-tier 51.00% 51.00%
Co., Ltd.
Sichuan Jinwuxin Technology Co., Ltd. Holding subsidiary Second-tier 51.00% 51.00%
Sichuan Jiebeike Environmental Technology Co., Ltd. Holding subsidiary Second-tier 26.01% 26.01%
Yibin Changjiangyuan Liquor Co., Ltd. Wholly-owned subsidiary First-tier 100.00% 100.00%
Yibin Changjiangyuan Trade Co., Ltd. Wholly-owned subsidiary Second-tier 100.00% 100.00%
Yibin Changjiangyuan Brewery Co., Ltd. Wholly-owned subsidiary Second-tier 100.00% 100.00%
Yibin Wuliangye Organic Agriculture Development
Wholly-owned subsidiary Second-tier 100.00% 100.00%
Co., Ltd.
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
Wholly-owned subsidiary First-tier 100.00% 100.00%
Limited
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. Wholly-owned subsidiary First-tier 100.00% 100.00%
Sichuan Yibin Global Gelasi Glass Manufacturing Co.,
Wholly-owned subsidiary First-tier 100.00% 100.00%
Ltd.
Sichuan Yibin Push Group 3D Co., Ltd. Wholly-owned subsidiary First-tier 100.00% 100.00%
Guangdong Foshan Plastic Packaging Materials
Wholly-owned subsidiary Second-tier 100.00% 100.00%
Company Limited
Sichuan Yibin Wuliangye Investment (Consulting)
Holding subsidiary First-tier 95.00% 95.00%
Co.,Ltd.
Wuhou Cultural Development Co., Ltd. Holding subsidiary Second-tier 70.30% 70.30%
Yibin Zhenwushan Liquor Co., Ltd. Wholly-owned subsidiary First-tier 100.00% 100.00%
Yibin Shiji Liquor Co., Ltd. Wholly-owned subsidiary First-tier 100.00% 100.00%
Yibin Cuipingshan Liquor Co., Ltd. Wholly-owned subsidiary First-tier 100.00% 100.00%
110
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 subsidiary First-tier 100.00% 100.00%
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%
WU JIU YE SALES CO., HENAN. China Holding subsidiary Third-tier 51.03% 51.03%
Sichuan Wuliangye Culture Tourism Development
Holding subsidiary First-tier 80.00% 80.00%
Co., Ltd.
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%
Sichuan Wuliangye New Retail Management Co., Ltd. Holding subsidiary First-tier 90.00% 90.00%
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.
111
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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
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 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
112
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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:
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.
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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;
(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 foreign currency statement translation
(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 administrative
expenses 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.
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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.
(1) Recognition and de-recognition of financial instruments
The Company shall recognize relevant financial assets or financial liabilities when becoming a
party of the financial instrument contract.
The financial assets shall be derecognized when meeting any of the following conditions: 1) The
contractual right to charge the cash flow of the financial assets is terminated; 2) The financial assets
have been transferred and the Company has transferred almost all risks and remuneration of the
financial assets ownership to the transferee; and 3) The financial assets have been transferred and the
Company does neither transfer nor retain almost all risks and remuneration of the financial assets
ownership but gives up the control over the financial assets.
The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (or
part thereof) has been discharged.
For the purchase or sale of financial assets in a conventional way, the Company shall recognize
the assets to be received and the liabilities to be assumed on the 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 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
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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
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 any of the following conditions can be designated upon initial
measurement 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
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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/loss.
② Financial liabilities at fair value through profit or loss: Including trading financial liabilities
(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value
through profit or 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
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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
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
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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
loss rate to calculate the expected credit losses. For other groups, the Company, with reference to
historical experience in credit loss and based on current situation and forecast of future economic
situation, shall calculate the expected credit losses according to the exposure at default and the
12-month or lifetime expected credit loss rate.
2 ) Debt investments and other debt investments
For debt investment and other debt investments, the Company shall calculate the expected credit
loss according to the nature of investment, types of counterparty and risk exposure, exposure at default
and the 12-month or lifetime expected credit loss rate.
The Company shall 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.
Determination method and accounting treatment method for expected credit losses of other
receivables
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
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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.
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. Contract asset and contract liability
Under the contract between the Company and the customer, the Company shall be entitled to
receive the contract price for the goods transferred to the customer and for the related services
provided, while at the same time assuming the performance obligation to transfer the goods or services
to the customer. When the customer has actually paid the contract consideration or the enterprise has
transferred goods or services to the customer before such consideration is due and payable, the right to
receive the consideration for the transferred goods or services should be presented as a contract asset
and recognized as an accounts receivable when the unconditional right to receive is obtained;
conversely, the Company's obligation to transfer goods or services to the customer for the
consideration received or receivable from the customer should be presented as a contract liability. Any
contract liability shall be recognised as revenue when the Company fulfils its obligation to transfer
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goods or provide services to the customer. The Company presents contract asset and contract liability
under the same contract on a net basis.
13. 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.
(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
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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.
14. 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 in subsidiaries 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
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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
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
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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 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
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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.
15. 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.
(2) Depreciation method
Category Depreciation method Depreciation life Residual rate Yearly depreciation rate
Houses and
Straight-line method 25-30 years 3% -5% 3.17 - 3.88%
buildings
General equipment Straight-line method 10-12 years 3% -5% 7.92 - 9.70%
Special equipment Straight-line method 8 years 3% -5% 11.18 - 12.13%
Transportation
Straight-line method 6 years 3% -5% 15.83 - 16.17%
equipment
Other equipment Straight-line method 6 years 3% -5% 15.83 - 16.17%
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the
straight-line method (the straight-line depreciation) from the second month after they reach their
intended serviceable condition.
(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
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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.
16. 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.
17. 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 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 capitalisation: 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 capitalisation: Where the acquisition and construction of a fixed asset is
interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the
borrowing costs shall be suspended and the borrowing costs shall be recognized as current expenses
until recommencement of the acquisition and construction of the asset.
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
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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.
18. 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
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:
① 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.
19. 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
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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 Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once
recognized.
20. 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.
21. 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.
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(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
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.
22. 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
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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.
23. Revenue
(1) Recognition principles of revenues
Revenue is the total inflow of economic benefits arising from the Company's ordinary activities that
would result in an increase in shareholders' equity and are unrelated to capital contributions by
shareholders.
The Company recognizes revenue when it has fulfilled its performance obligations under the
contract, that is, when the customer obtains control of the relevant goods. Obtaining control over related
goods means being able to dominate the use of the goods and obtain almost all economic benefits from
them.
If the contract contains two or more performance obligations, the Company will allocate the
transaction price to each individual performance obligation according to the relative proportion of the
individual selling price of the goods or services promised under each individual performance obligation
on the contract commencement date, and measure the revenue according to the transaction price
allocated to each individual performance obligation.
Transaction price is the amount of consideration that the Company is expected to be
received due to the transfer of goods or services to customers, excluding the amount collected
on behalf of third parties. In determining the transaction price of a contract, if variable consideration
exists, the Company will determine the best estimate of the variable consideration based on the
expected or most likely amount and include in the transaction price in an amount not exceeding the
amount that the accumulated recognized revenue will most likely not be significantly reversed when the
relevant uncertainty is eliminated. If there is a significant financing component in the contract, the
Company will determine the transaction price according to the amount payable by the customer in cash
when obtaining the control right of the goods. The difference between the transaction price and the
contract consideration will be amortized by the effective interest rate method during the contract period.
If the interval between the transfer of control right and the payment price by the customer does not
exceed one year, the Company will not consider the financing component.
Performance obligations are fulfilled within a certain period if any of the following conditions is met;
otherwise, performance obligations are fulfilled at a certain point in time:
① The customer acquires and consumes the economic benefits of the Company's performance at
the same time as the Company's performance;
② The customer controls the goods under construction during the performance of the Company;
③ The goods produced by the Company during the performance of the contract have irreplaceable
uses, and the Company has the right to collect money for the accumulated performance that has been
completed so far during the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenue
according to the performance progress within that period, except that the performance progress cannot
be reasonably determined. The Company determines the performance progress of the services
provided according to the input method (or output method). When the performance progress cannot be
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reasonably determined, if the costs incurred by the Company are expected to be compensated, the
revenue shall be recognized according to the amount of costs incurred until the performance progress
can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue
at the point when the customer obtains control of the relevant goods. When judging whether the
customer has acquired control of goods or services, the Company will consider the following
indications:
① The Company has a present right to receive payment for the goods or services, i.e. the
customer has a present obligation to pay for the goods;
② The Company has transferred legal ownership of the goods to the customer, i.e. the customer
has legal ownership of the goods;
③ The Company has physically transferred the goods to the customer, i.e. the customer has taken
physical possession of the goods;
④ The Company has transferred to the customer the principal risks and rewards of ownership of
the goods, i.e., the customer has acquired the principal risks and rewards of ownership of the good;
⑤ The customer has accepted the goods.
(2) Recognition methods of revenues
① Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goods
to the buyer according to the contract, and recognizes revenue after the buyer signs for it;
② Recognition methods of revenues for direct sales model
Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyer
and receives payment or acquires the right to receive payment;
On-line sales; Revenue is recognized when the Company receives the payment transferred from
the e-commerce platform from the consumer;
24. 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.
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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 standard of the Company for classifying the government subsidies as income-related
subsidies: all the government subsides 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
business. The government subsidies irrelevant with the daily activities of the Company shall be
recorded into non-operating revenue.
25. 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
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likely to not be reversed in the foreseeable future, deferred income tax assets and liabilities shall not be
recognized.
26. Lease
(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 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. 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.
27. 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
On July 5, 2017, the Ministry of Finance issued the According to the provisions for transition from the
Accounting Standards for Business Enterprises old standards to the new standards, information of
No.14 - Revenue (CK (2017) No.22), (hereinafter the comparable period is not adjusted, and the
referred to as the "New Revenue Standards"), beginning retained earnings or other
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requiring enterprises which were simultaneously comprehensive income of the reporting period will
listed abroad and at home and which were listed be adjusted retroactively for the difference
abroad and prepared their financial statements between the new standards and the original
according to the International Financial Reporting standards on the date of initial implementation.
Standards (IFRS) or the Accounting Standards for
Refer to the Note “V. Significant accounting policy
Business Enterprises (ASBE) to implement such
and accounting estimates, 27, (3) Adjustment of
standards since January 1, 2018; and other domestic
relevant items in financial statements at the
listed companies to implement such standards since
beginning of the implementation year as a result of
January 1, 2020.
initial implementation of new revenue standards”
for details about impact on the Financial
Statements 2019
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the initial
implementation year as a result of initial implementation of new revenue standards from
2020
Applicable
Whether it is necessary to adjust the balance sheet account at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB Yuan
Item December 31, 2019 January 1, 2020 Amount of adjustment
Current assets:
Cash and cash
63,238,825,723.79 63,238,825,723.79
equivalents
Settlement
reserves
Capital lent
Trading financial
assets
Derivative
financial assets
Notes receivable 14,643,149,595.72 14,643,149,595.72
Accounts
134,449,693.03 134,449,693.03
receivable
Accounts
3,450,166,659.06 3,450,166,659.06
receivable financing
Prepayments 231,909,140.09 231,909,140.09
Premium
receivable
134
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Reinsurance
receivables
Contract reserve
of reinsurance
Other
1,248,644,572.40 1,248,644,572.40
receivables
Including:
1,215,275,214.91 1,215,275,214.91
Interest receivable
Dividends receivable
Purchase
restituted finance asset
Inventory 13,679,619,615.41 13,679,619,615.41
Contract asset
Assets held for
sale
Non-current
assets due within one year
Other current
assets
Total current assets 96,626,764,999.50 96,626,764,999.50
Non-current assets:
Loans and
advances
Debt investment
Other debt
investments
Long-term
receivables
Long-term equity
1,021,778,731.59 1,021,778,731.59
investment
Other equity
instrument investment
Other
non-current financial 1,200,000.00 1,200,000.00
assets
Investment
properties
Fixed assets 6,108,745,912.72 6,108,745,912.72
135
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Construction in
812,428,248.30 812,428,248.30
progress
Productive
biological assets
Oil and gas
assets
Right-of-use
assets
Intangible assets 410,155,227.81 410,155,227.81
Development
expenditures
Goodwill 1,621,619.53 1,621,619.53
Long-term
91,601,331.96 91,601,331.96
deferred expenses
Deferred income
1,157,391,979.00 1,157,391,979.00
tax assets
Other
165,284,283.25 165,284,283.25
non-current assets
Total non-current assets 9,770,207,334.16 9,770,207,334.16
Total assets 106,396,972,333.66 106,396,972,333.66
Current liabilities:
Short-term loans
Loan from central
bank
Capital borrowed
Trading financial
liabilities
Derivative
financial liabilities
Notes payable 419,485,425.61 419,485,425.61
Accounts
3,257,672,975.56 3,257,672,975.56
payable
Accounts
12,530,706,854.77 21,782,796.70 -12,508,924,058.07
received in advance
Contract liability 11,078,218,239.27 11,078,218,239.27
Selling financial
asset of repurchase
Absorbing
deposit and interbank
136
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
deposit
Security trading
of agency
Security sales of
agency
Payroll payable 3,594,886,729.81 3,594,886,729.81
Tax payable 7,939,166,588.84 7,939,166,588.84
Other payables 2,292,680,733.51 2,292,680,733.51
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
1,430,705,818.80 1,430,705,818.80
liabilities
Total current liabilities 30,034,599,308.10 30,034,599,308.10
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
137
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Estimated
liabilities
Deferred income 266,325,368.40 266,325,368.40
Deferred income
tax liabilities
Other
non-current liabilities
Total non-current liabilities 266,325,368.40 266,325,368.40
Total liabilities 30,300,924,676.50 30,300,924,676.50
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 16,092,197,023.01 16,092,197,023.01
Provision for
general risk
Undistributed
51,634,248,548.06 51,634,248,548.06
profit
Total owners’ equity
attributable to parent 74,290,700,662.22 74,290,700,662.22
company
Minority equity 1,805,346,994.94 1,805,346,994.94
Total owners’ equity 76,096,047,657.16 76,096,047,657.16
Total liabilities and owners’
106,396,972,333.66 106,396,972,333.66
equity
138
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Balance Sheet of Parent Company
Unit: RMB Yuan
Item December 31, 2019 January 1, 2020 Amount of adjustment
Current assets:
Cash and cash
28,257,367,404.51 28,257,367,404.51
equivalents
Trading financial
assets
Derivative
financial assets
Notes receivable
Accounts
receivable
Accounts
receivable financing
Prepayments 80,520,520.72 80,520,520.72
Other
10,126,706,853.03 10,126,706,853.03
receivables
Including:
570,078,014.35 570,078,014.35
Interest receivable
654,791,389.27 654,791,389.27
Dividends receivable
Inventory
Contract asset
Assets held for
sale
Non-current
assets due within one year
Other current
assets
Total current assets 38,464,594,778.26 38,464,594,778.26
Non-current assets:
Debt investment
Other debt
investments
Long-term
receivables
Long-term equity 10,609,783,624.61 10,609,783,624.61
139
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investment
Other equity
instrument investment
Other
non-current financial 1,200,000.00 1,200,000.00
assets
Investment
properties
Fixed assets 100,266,366.93 100,266,366.93
Construction in
100,358,221.33 100,358,221.33
progress
Productive
biological assets
Oil and gas
assets
Right-of-use
assets
Intangible assets 39,222,336.12 39,222,336.12
Development
expenditures
Goodwill
Long-term
deferred expenses
Deferred income
2,202,432.10 2,202,432.10
tax assets
Other
non-current assets
Total non-current assets 10,853,032,981.09 10,853,032,981.09
Total assets 49,317,627,759.35 49,317,627,759.35
Current liabilities:
Short-term loans
Trading financial
liabilities
Derivative
financial liabilities
Notes payable
Accounts
418,136.00 418,136.00
payable
Accounts
received in advance
140
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Contract liability
Payroll payable 8,811,734.27 8,811,734.27
Tax payable 30,732,337.42 30,732,337.42
Other payables 285,450,874.79 285,450,874.79
Including:
Interest payable
Dividend payable
Liabilities held for
sale
Non-current
liabilities due within one
year
Other current
liabilities
Total current liabilities 325,413,082.48 325,413,082.48
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 1,000,000.00
Deferred income
tax liabilities
Other
non-current liabilities
Total non-current liabilities 1,000,000.00 1,000,000.00
Total liabilities 326,413,082.48 326,413,082.48
Owner’s equity:
Capital stock 3,881,608,005.00 3,881,608,005.00
141
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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 7,884,654,620.01 7,884,654,620.01
Undistributed
34,542,304,965.71 34,542,304,965.71
profit
Total owners’ equity 48,991,214,676.87 48,991,214,676.87
Total liabilities and owners’
49,317,627,759.35 49,317,627,759.35
equity
(4) Note on comparison data before the retrospective adjustments due to initial implementation
of new revenue standards from 2020
□ Applicable √ Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax Item Tax Basis Tax Rate
VAT Taxable sales revenue 13% (paid after offsetting input tax)
Consumption tax Taxable price or ex-factory price 10%.20%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 25%
Education surcharge Turnover tax payable 3%
Local education surcharge* Turnover tax payable 2%
*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:
142
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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%
Linzhang Desheng Wine Trade 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 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 2020 was RMB 42,714,120.00.
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 2020 was RMB 14,010,868.21.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials
Company Limited, and 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%.
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., Linzhang Desheng Wine Trade 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
143
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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%.
VII. Notes to consolidated financial statements
1. Cash and cash equivalents
Unit: RMB Yuan
Item Ending balance Beginning balance
Cash on hand 25,283.79 28,179.40
Bank deposit 67,880,479,453.44 63,138,797,874.22
Other cash and cash equivalents 329,072,285.38 99,999,670.17
Total 68,209,577,022.61 63,238,825,723.79
Including: Total amount of funds restricted in use due to 329,069,085.01 99,996,480.91
mortgage, pledge or freezing
Other notes:
(1) Other cash and cash equivalents include the balance of securities trading of RMB 3,200.37
deposited with Yibin Business Department of Essence Securities, deposit of bank acceptance bill of
RMB 328,818,561.81, and other deposits of RMB 250,523.20.
(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.
Wine manufacturing enterprises should disclose in detail whether there is a special interest
arrangement with related parties to establish a joint account for funds, etc.
□ Applicable √ Not applicable
2. Notes receivable
(1) Notes receivable presented by category
Unit: RMB Yuan
Item Ending balance Beginning balance
Bank acceptance bill 18,568,421,154.30 14,643,149,595.72
Total 18,568,421,154.30 14,643,149,595.72
144
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Unit: RMB Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount
proportion (%) proportion (%)
Including:
Notes receivable with
bad debt provision by 18,568,421,154.30 100.00% 18,568,421,154.30 14,643,149,595.72 100.00% 14,643,149,595.72
combination
Including:
Bank acceptance bill 18,568,421,154.30 100.00% 18,568,421,154.30 14,643,149,595.72 100.00% 14,643,149,595.72
Total 18,568,421,154.30 100.00% 18,568,421,154.30 14,643,149,595.72 100.00% 14,643,149,595.72
(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.
145
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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.
3. Accounts receivable
(1) Disclosure of receivables by category
Unit: RMB Yuan
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 3.10% 1,508,250.71 100.00% 1,508,250.71 1.05% 1,508,250.71 100.00%
provision by single item
Including:
External customer 1,508,250.71 3.10% 1,508,250.71 100.00% 1,508,250.71 1.05% 1,508,250.71 100.00%
Receivables with bad debt provision
47,158,692.98 96.90% 5,662,522.63 12.01% 41,496,170.35 142,604,157.15 98.95% 8,154,464.12 5.72% 134,449,693.03
by combination
Including:
External customer 36,342,444.48 74.68% 5,662,522.63 15.58% 30,679,921.85 88,029,978.68 61.08% 8,154,464.12 9.26% 79,875,514.56
Related parties 10,816,248.50 22.22% 10,816,248.50 54,574,178.47 37.87% 54,574,178.47
Total 48,666,943.69 100.00% 7,170,773.34 14.73% 41,496,170.35 144,112,407.86 100.00% 9,662,714.83 6.70% 134,449,693.03
146
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Bad debt provision by single item:
Unit: RMB Yuan
Ending balance
Name Bad debt Provision proportion
Book balance Reasons for provision
provision (%)
Ningxia Hongzhongning Wolfberry
516,135.60 516,135.60 100.00% Expected irrecoverable
Products Co., Ltd.
Nanxi Daliangxin Food Co., Ltd. 389,729.12 389,729.12 100.00% Expected irrecoverable
Hunan Liuyanghe Liquor Industry
308,155.34 308,155.34 100.00% Expected irrecoverable
Co., Ltd.
Sichuan Debo Daily Commodity
294,230.65 294,230.65 100.00% Expected irrecoverable
Co., Ltd.
Total 1,508,250.71 1,508,250.71 -- --
Bad debt provision by combination:
Unit: RMB Yuan
Ending balance
Name Provision
Reasons for
Book balance Bad debt provision proportion
provision
(%)
Accounts receivable with bad debt
provision by combination of external 36,342,444.48 5,662,522.63 15.58%
customer
Accounts receivable with bad debt
10,816,248.50
provision by combination of related parties
Total 47,158,692.98 5,662,522.63 -- --
Disclosure by aging
Unit: RMB Yuan
Aging Book balance
Within 1 year (inclusive) 39,159,404.03
1 to 2 years 1,104,718.58
2 to 3 years 1,159,009.02
More than 3 years 7,243,812.06
3 to 4 years 594,516.24
4 to 5 years 1,698,664.39
More than 5 years 4,950,631.43
Total 48,666,943.69
(2) Provision, recovery or reversal of bad debt provision in current period
Unit: RMB Yuan
Amount of change in current year
Beginning Recovery Ending
Category
balance Provisions or Write-off Others balance
reversal
Accounts receivable with bad debt provision
1,508,250.71 1,508,250.71
by single item
Accounts receivable with bad debt provision
8,154,464.12 -2,504,725.68 12,784.19 5,662,522.63
by combination of external customer
Total 9,662,714.83 -2,504,725.68 12,784.19 7,170,773.34
(3) Accounts receivable actually written off in the current period
There was no accounts receivable actually written off in the current period.
(4) Accounts receivable with top 5 ending balances by debtor
Unit: RMB Yuan
147
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Ending balance of Proportion in total ending balance of Ending balance of
Unit name
accounts receivable accounts receivable bad debt provision
Sichuan Putian Packaging Co.,
7,403,902.45 15.21%
Ltd.
Sichuan Youhu Trade Co., Ltd. 3,770,871.26 7.75% 188,543.56
Yibin Haisite Fiber Co., Ltd. 2,198,387.33 4.52% 109,919.37
Chengdu Kanglongxin Plastic
1,863,050.51 3.83% 93,152.53
Industry Co., Ltd.
Sitir Liquor Co., Ltd. 1,793,468.28 3.69% 104,681.08
Total 17,029,679.83 35.00%
(5) At the end of the period, the Company had no accounts receivable derecognized due to the transfer
of financial assets.
4. Accounts receivable financing
(1) Accounts receivable financing presented by category
Unit: RMB Yuan
Item Ending balance Beginning balance
Bank acceptance bill 2,024,442,016.72 3,450,166,659.06
Total 2,024,442,016.72 3,450,166,659.06
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.
148
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Unit: RMB Yuan
Ending balance Beginning balance
Bad debt
Book balance Bad debt provision Book balance
Provisions
Category
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount
proportion (%) proportion (%)
Accounts receivable
financing with bad
debt provision by
single item
Accounts receivable
financing with bad
2,024,442,016.72 100.00% 2,024,442,016.72 3,450,166,659.06 100.00% 3,450,166,659.06
debt provision by
combination
Including: Bank
2,024,442,016.72 100.00% 2,024,442,016.72 3,450,166,659.06 100.00% 3,450,166,659.06
acceptance bill
Total 2,024,442,016.72 100.00% 2,024,442,016.72 3,450,166,659.06 100.00% 3,450,166,659.06
149
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(2) Accounts receivable financing pledged by the Company at the end of the period
Unit: RMB Yuan
Item Ending pledged amount
Bank acceptance bill 52,470,000.00
Total 52,470,000.00
Notes: 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.
(3) Accounts receivable financing endorsed or discounted by the Company at the end of the
period and not expired yet on the date of balance sheet
Unit: RMB Yuan
Amount derecognized at the end of the Amount not yet derecognized at the
Item
period end of the period
Bank acceptance bill 1,203,559,943.74
Total 1,203,559,943.74
(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) The Company had no accounts receivable financing actually written off in the period
5. Prepayments
(1) Prepayments presented by aging
Unit: RMB Yuan
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 159,490,040.03 64.50% 136,286,439.94 58.77%
1 to 2 years 5,065,482.28 2.05% 6,819,475.06 2.94%
2 to 3 years 1,903,024.39 0.77% 1,127,071.75 0.49%
More than 3 years 80,800,533.72 32.68% 87,676,153.34 37.81%
Total 247,259,080.42 -- 231,909,140.09 --
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 Yuan
Proportion in ending balance of
Unit name Ending balance
prepayments
Yibin Guoding Gas Co., Ltd. 72,922,000.00 29.49%
Beijing Taiyang Shenghuo International Advertising Co.,
31,955,594.46 12.92%
Ltd.
China National Petroleum Corporation, Southwest
25,550,913.54 10.33%
Chemical Sales Branch
Yibin Push Linko Technology Co., Ltd. 19,944,767.12 8.07%
Sinopec Chemical Commercial Holding Company
15,332,417.11 6.20%
Limited, Central China Branch
Total 165,705,692.23 67.02%
150
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6. Other receivables
Unit: RMB Yuan
Item Ending balance Beginning balance
Interest receivable 1,215,275,214.91
Other receivables 36,199,607.12 33,369,357.49
Total 36,199,607.12 1,248,644,572.40
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB Yuan
Item Ending balance Beginning balance
Interest of fixed term deposit 1,215,275,214.91
Total 1,215,275,214.91
2) Provision for bad debt
□ Applicable √ Not applicable
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB Yuan
Nature of receivable Ending book balance Beginning book balance
Reserve fund 4,126,194.86 6,792,778.95
Current account 9,851,782.12 7,027,439.51
Deposit 17,389,932.95 19,102,013.23
Other advance money for others or
10,563,309.32 4,698,433.09
temporary payment
Total 41,931,219.25 37,620,664.78
2) Provision for bad debt
Unit: RMB Yuan
Stage 1 Stage 2 Stage 3
Bad debt provision Expected credit Expected credit loss for Expected credit loss for Total
losses over the the entire duration (no the entire duration (credit
coming 12 months credit impairment) impairment has occurred)
Balance on January 1, 2020 4,219,047.66 32,259.63 4,251,307.29
Balance on January 1, 2020
—— —— —— ——
in current period
Provisions in current period 1,508,694.62 -28,389.78 1,480,304.84
Balance on December 31,
5,727,742.28 3,869.85 5,731,612.13
2020
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB Yuan
Aging Book balance
Within 1 year (inclusive) 24,398,004.59
1 to 2 years 6,205,809.68
2 to 3 years 6,893,979.93
More than 3 years 4,433,425.05
3 to 4 years 564,502.88
4 to 5 years 357,446.43
151
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
More than 5 years 3,511,475.74
Total 41,931,219.25
3) Provision, recovery or reversal of bad debt provision in current period
Bad debt provision in current period:
Unit: RMB Yuan
Amount of change in current year
Beginning Recovery Ending
Category
balance Provisions or Write-off Others balance
reversal
Other receivables with bad debt provision
32,259.63 -28,389.78 3,869.85
by single item
Other receivables with bad debt provision
4,219,047.66 1,508,694.62 5,727,742.28
by credit risk combination
Total 4,251,307.29 1,480,304.84 5,731,612.13
4) Other receivables actually written off in current period
There was no other receivables actually written off in current period.
5) Other receivables with top 5 ending balances by debtor
Unit: RMB Yuan
Ending
Proportion in total
Nature of Ending balance of
Unit name Aging ending balance of
receivables balance bad debt
other receivables
provision
Yibin Cuiping District Housing and
Deposit 5,000,000.00 2-3 years 11.92% 1,000,000.00
Urban-Rural Development Bureau
Yibin Zhongqi Natural Gas Co., Ltd. Deposit 4,000,000.00 Within 1 year 9.54% 120,000.00
Advance
Yibin Social Insurance Bureau money for 3,873,403.62 Within 1 year 9.24% 116,216.29
others
China National Petroleum
Temporary
Corporation, Sichuan Yi Saibin 1,740,000.00 Within 1 year 4.15% 52,200.00
payment
Sales Branch
Advance
Chongqing Xibolesi Building
money for 1,671,340.32 More than 5 years 3.99% 1,337,072.26
Engineering Co., Ltd.
others
Total -- 16,284,743.94 -- 38.84% 2,625,488.55
7. Inventory
(1) Inventory classification
Unit: RMB Yuan
Ending balance Beginning balance
Inventory Inventory
falling price falling price
reserves or reserves or
Item
reserves for reserves for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
costs costs
Raw materials 1,006,752,368.41 5,500,972.51 1,001,251,395.90 820,802,958.97 5,470,868.60 815,332,090.37
Goods in
964,076,320.20 964,076,320.20 920,929,926.83 920,929,926.83
process
Inventory of
1,715,227,321.75 28,068,948.50 1,687,158,373.25 2,641,768,788.26 23,606,759.68 2,618,162,028.58
goods
Turnover
4,509,057.31 436,409.41 4,072,647.90 2,443,559.07 2,443,559.07
materials
152
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Goods issued 217,544,735.96 2,339,349.95 215,205,386.01 91,743,317.05 917,805.65 90,825,511.40
Goods in
2,121,297.94 2,121,297.94
transit
Semi-finished
9,290,022,881.61 151,805.88 9,289,871,075.73 9,185,653,882.86 9,185,653,882.86
products
Packing
35,637,606.57 15,916,796.10 19,720,810.47 16,350,413.67 15,916,796.10 433,617.57
materials
Work in
process-outso 44,796,324.05 44,796,324.05 45,838,998.73 45,838,998.73
urced
Total 13,280,687,913.80 52,414,282.35 13,228,273,631.45 13,725,531,845.44 45,912,230.03 13,679,619,615.41
(2) Classification of inventory goods
Unit: RMB Yuan
Ending balance Beginning balance
Item
Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Liquors 1,107,242,109.83 1,107,242,109.83 1,981,292,442.44 1,981,292,442.44
Plastic
407,641,508.37 2,376,198.91 405,265,309.46 374,726,965.18 2,404,978.20 372,321,986.98
products
Printing 87,914,622.34 13,613,249.08 74,301,373.26 77,827,912.75 13,613,249.08 64,214,663.67
Glass
95,200,289.49 6,459,504.39 88,740,785.10 154,797,421.71 76,683.01 154,720,738.70
bottle
Others 17,228,791.72 5,619,996.12 11,608,795.60 53,124,046.18 7,511,849.39 45,612,196.79
Total 1,715,227,321.75 28,068,948.50 1,687,158,373.25 2,641,768,788.26 23,606,759.68 2,618,162,028.58
(3) Inventory falling price reserves and reserves for impairment of contract performance costs
Unit: RMB Yuan
Increase in current period Decrease in current period
Beginning
Item Ending balance
balance Reversed or
Provisions Others Others
written-off
Raw materials 5,470,868.60 57,645.70 27,541.79 5,500,972.51
Inventory of
23,606,759.68 11,597,071.16 7,134,882.34 28,068,948.50
goods
Turnover
436,409.41 436,409.41
materials
Packing
15,916,796.10 15,916,796.10
materials
Goods issued 917,805.65 1,421,544.30 2,339,349.95
Semi-finished
151,805.88 151,805.88
products
Total 45,912,230.03 13,664,476.45 7,162,424.13 52,414,282.35
(4) Note on ending balance of inventory containing the capitalized amount of borrowing costs
None
8. Long-term equity investment
153
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Unit: RMB Yuan
Increase/decrease in the current period
Ending
Beginning balance Profit and loss on Adjustment of Declaration Ending balance balance of
Invested company Changes Accrual of
(book value) Additional Reduced investments other of cash (book value) provision for
in other impairment Others
investment investment recognized with comprehensive dividends or provision impairment
equities
equity method income profits
I. joint ventures
II. Associates
Oriental Outlook Media
17,078,139.66 4,043,275.64 21,121,415.30
Co., Ltd.
Sichuan Yibin Wuliangye
994,858,486.75 734,693,877.55 87,842,578.12 1,817,394,942.42
Group Finance Co., Ltd.
Yibin Jiamei Intelligent
9,842,105.18 1,618,640.40 11,460,745.58
Packaging Co., Ltd.
Sub-total 1,021,778,731.59 734,693,877.55 93,504,494.16 1,849,977,103.30
Total 1,021,778,731.59 734,693,877.55 93,504,494.16 1,849,977,103.30
154
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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, Yibin Wuliangye Group Company and 6 of its subsidiaries, and ABC
International Holdings Limited jointly invested and established Sichuan Yibin Wuliangye Group Finance
Co., Ltd. (hereinafter referred to as the “Finance Company”). Its registered capital is RMB 2 billion,
among which the Company contributed RMB 0.72 billion, taking up 36% of the registered capital.
On May 23, 2020, the 74th meeting of the 5th Session of the Board of Directors of the Company
considered and approved the capital increase of the Company to the Finance Company based on the
net assets per share of the Finance Company evaluated at RMB1.3817 per share as consideration for
the capital increase of RMB734,693,877.55, of which: RMB531,731,835.82 was credited to registered
capital and RMB202,962,041.73 was credited to capital surplus. In this capital increase, the related party
Sichuan Yibin Wuliangye Group Co., Ltd. increased its capital at the same price, and the remaining
shareholders of the Finance Company did not participate in this capital increase. After the completion of
this capital increase, the registered capital of the Finance Company increased from RMB2,000,000,000
to RMB3,085,619,164.80, and the shareholding ratio of the Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the
Company, and Shenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and established
Yibin Jiamei Intelligent Packaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co.,
Ltd. include research and development, platemaking, printing, production and sales of packaging
products. Its registered capital is RMB 20 million, among which Sichuan Yibin Wuliangye Jingmei
Printing Co., Ltd. contributed RMB 9.8 million, taking up 49% of the registered capital.
9. Other non-current financial assets
Unit: RMB Yuan
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 Yuan
Item Ending balance Beginning balance
Fixed assets 5,866,732,589.90 6,108,183,363.27
Disposal of fixed assets 148,270.13 562,549.45
Total 5,866,880,860.03 6,108,745,912.72
(1) Note on fixed assets
Unit: RMB Yuan
Houses and Transportation
Item Special equipment General equipment Other equipment Total
buildings equipment
I. Original book
value:
1. Beginning
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
2. Increase
in current 28,572,811.49 60,615,542.15 71,841,475.84 41,990,259.22 35,949,540.07 238,969,628.77
period
(1)
5,109,326.00 46,022,598.10 70,930,616.00 41,990,259.22 22,089,780.99 186,142,580.31
Acquisition
(2)
Transfer from 23,463,485.49 14,592,944.05 910,859.84 13,859,759.08 52,827,048.46
construction in
155
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
progress
(3)
Increase from
business
combination
3. Decrease
in current 47,952,123.98 34,859,893.49 67,549,987.61 2,517,805.14 14,303,512.25 167,183,322.47
period
(1)
Disposal or 13,667,260.52 34,859,893.49 67,549,987.61 2,517,805.14 14,303,512.25 132,898,459.01
scrap
(2) Donation
(3) Others 34,284,863.46 34,284,863.46
4. Ending
8,880,697,811.52 3,061,320,499.23 2,224,647,054.94 155,974,171.17 644,402,206.34 14,967,041,743.20
balance
II.
Accumulated
depreciation
1. Beginning
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
2. Increase
in current 274,682,631.82 76,659,589.76 53,929,339.97 9,882,440.34 20,516,690.04 435,670,691.93
period
(1)
274,682,631.82 76,659,589.76 53,929,339.97 9,882,440.34 20,516,690.04 435,670,691.93
Provisions
(2) Increase
from business
combination
(3) Others
3. Decrease
in current 8,665,443.14 33,492,688.59 64,746,328.13 2,105,026.74 13,795,196.56 122,804,683.16
period
(1)
Disposal or 8,665,443.14 33,492,688.59 64,746,328.13 2,105,026.74 13,795,196.56 122,804,683.16
scrap
(2) Donation
(3) Others
4. Ending
3,896,058,562.12 2,783,207,383.15 1,767,311,706.23 94,055,040.46 550,773,923.65 9,091,406,615.61
balance
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 448,709.53 448,709.53
period
(1)
448,709.53 448,709.53
Provisions
3. Decrease
in current 77,638.63 77,638.63
period
(1)
Disposal or 77,638.63 77,638.63
scrap
4. Ending
1,544,029.33 5,782,681.58 656,514.70 919,312.08 8,902,537.69
balance
IV. Book
value
156
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
1. Ending
4,983,095,220.07 272,330,434.50 456,678,834.01 61,919,130.71 92,708,970.61 5,866,732,589.90
book value
2. Beginning
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
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 Yuan
Item Ending book value
Buildings 125,699,994.78
Warehouse 16,286,521.97
Equipment 11,808,136.08
Total 153,794,652.83
(5) Fixed assets without certificate of title
Unit: RMB Yuan
Item Book value Reason for not obtaining certificate of title
The certificate of title has not been obtained due to historical
Buildings 922,160,137.04 reasons, to which the Company has attached great importance and
planned to obtain the certificate of title gradually.
Buildings 3,900,494.78 In progress
Total 926,060,631.82
Notes: 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 Yuan
Item Ending balance Beginning balance
Other equipment 148,270.13 562,549.45
Total 148,270.13 562,549.45
11. Construction in progress
Unit: RMB Yuan
Item Ending balance Beginning balance
Construction in progress 1,480,337,105.88 810,667,169.54
Project goods and materials 1,761,078.76 1,761,078.76
Total 1,482,098,184.64 812,428,248.30
(1) Construction in progress
Unit: RMB Yuan
Ending balance Beginning balance
Item
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
300-Thousand-T
on Pottery Jar
Aging Spirit
Room (Phase I) 528,404,511.04 528,404,511.04 432,757,395.14 432,757,395.14
Technological
Innovation
Project for 178,703,412.28 178,703,412.28 1,592,000.06 1,592,000.06
157
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Storing Blended
Liquor
The liquor
packaging and
integrated smart
storage-and-deliv
ery project 162,362,443.37 162,362,443.37 7,522,113.42 7,522,113.42
Wuliangye
Industrial Park
Construction
Project 116,380,592.65 116,380,592.65 116,380,592.65 116,380,592.65
Hongba New
Park Supporting
Facilities
Construction
Project 86,449,743.23 86,449,743.23 1,003,096.22 1,003,096.22
Pipe Network
Reconstruction
Project of
Jiangbei Park 38,083,788.58 38,083,788.58 26,591,075.62 26,591,075.62
Factory Buildings
and Other
Buildings
Renovation 30,408,205.03 30,408,205.03 26,482,983.09 26,482,983.09
Project of the
Company (Phase
II)
Phase II of
90-Thousand-To
n Pottery Jar
Aging Spirit 28,264,685.42 28,264,685.42 8,196,054.13 8,196,054.13
Room Technical
Innovation
Project (Phase
VI)
523 Workshop
1-80 Span Tool
Room Upgrade
(Emergency) 16,691,460.19 16,691,460.19
Brewing Special
Grain Process
Bin & Milling
Automation
Renovation
Project 20,257,399.24 20,257,399.24
503 Workshop
Appearance
Upgrade 20,102,188.68 20,102,188.68 8,330,188.68 8,330,188.68
Anlequan Scenic
Area Upgrade
Emergency
Project 18,618,699.97 18,618,699.97
Coal-to-Gas
Energy
Conservation and
Emission
Reduction
Project (Phase
III) 13,191,272.30 13,191,272.30 2,608,290.56 2,608,290.56
Partial Overhead
Lines Underlay
Reconstruction
Project of the
Trunk Road of
the East and
West Gates 10,698,865.18 10,698,865.18 10,698,865.18 10,698,865.18
Wuliangye Liquor
Plant Main Water 10,551,990.72 10,551,990.72 7,251,990.73 7,251,990.73
158
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Pipe Renovation
Project
No.4 Kiln
Upgrading and
Reconstruction
Project 21,776,007.96 21,776,007.96
Other sporadic
203,567,853.55 2,400,005.55 201,167,848.00 141,876,521.65 2,400,005.55 139,476,516.10
works
Total 1,482,737,111.43 2,400,005.55 1,480,337,105.88 813,067,175.09 2,400,005.55 810,667,169.54
159
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(2) Changes in important construction in progress in current period
Unit: RMB Yuan
Other Including:
decreases in Proportion Accumulated Capitalized Capitalization
Amount transferred
Increase in current current of project Engineering amount of amount of rate of interest Source of
Project name Budget Beginning balance to fixed assets in Ending balance interest
period period input to the progress interest in in current funds
the current period capitalized
budget (%) current period
Amount period
Own funds
300-Thousand-Ton Pottery Jar Aging 61.65% 99.00% and subsidies
857,070,000.00 432,757,395.14 95,647,115.90 528,404,511.04
Spirit Room (Phase I)
Technological Innovation Project for 10.35% 46.00% Owned and
1,726,166,000.00 1,592,000.06 177,111,412.22 178,703,412.28
Storing Blended Liquor raised funds
The liquor packaging and integrated 1.89% 21.00% Owned and
8,596,655,000.00 7,522,113.42 154,840,329.95 162,362,443.37
smart storage-and-delivery project raised funds
Wuliangye Industrial Park Construction 51.37% 65.00% Own funds
229,980,000.00 116,380,592.65 116,380,592.65
Project and subsidies
Hongba New Park Supporting Facilities 13.61% 30.00% Own funds
655,122,000.00 1,003,096.22 85,446,647.01 86,449,743.23
Construction Project
Pipe Network Reconstruction Project of 34.81% 98.00% Own funds
109,396,900.00 26,591,075.62 11,492,712.96 38,083,788.58
Jiangbei Park
Factory Buildings and Other Buildings Own funds
Renovation Project of the Company 201,841,000.00 26,482,983.09 9,329,236.39 5,404,014.45 30,408,205.03 26.48% 13.00%
(Phase II)
Phase II of 90-Thousand-Ton Pottery Own funds
Jar Aging Spirit Room Technical 50,552,120.00 8,196,054.13 20,068,631.29 28,264,685.42 55.91% 98.00%
Innovation Project (Phase VI)
523 Workshop 1-80 Span Tool Room 58.01% 99.00% Own funds
28,774,300.00 16,691,460.19 16,691,460.19
Upgrade (Emergency)
Brewing Special Grain Process Bin & 4.89% 40.00% Own funds
414,150,100.00 20,257,399.24 20,257,399.24
Milling Automation Renovation Project
503 Workshop Appearance Upgrade 69,690,500.00 8,330,188.68 11,772,000.00 20,102,188.68 28.84% 70.00% Own funds
Anlequan Scenic Area Upgrade 39.83% 90.00% Own funds
46,744,700.00 18,618,699.97 18,618,699.97
Emergency Project
Coal-to-Gas Energy Conservation and 35.19% 98.00% Own funds
37,490,000.00 2,608,290.56 10,582,981.74 13,191,272.30
Emission Reduction Project (Phase III)
Partial Overhead Lines Underlay Own funds
Reconstruction Project of the Trunk 17,600,000.00 10,698,865.18 10,698,865.18 60.79% 99.00%
Road of the East and West Gates
Wuliangye Liquor Plant Main Water 49.08% 70.00% Own funds
21,499,200.00 7,251,990.73 3,299,999.99 10,551,990.72
Pipe Renovation Project
No.4 Kiln Upgrading and 58.40% Own funds
48,496,000.00 21,776,007.96 2,440,154.15 24,216,162.11 0.00 100%
Reconstruction Project
Total 13,111,227,820.00 671,190,653.44 637,598,781.00 29,620,176.56 1,279,169,257.88 -- -- --
160
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(3) Project goods and materials
Unit: RMB Yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Project goods and materials 1,761,078.76 1,761,078.76 1,761,078.76 1,761,078.76
Total 1,761,078.76 1,761,078.76 1,761,078.76 1,761,078.76
12. Intangible assets
(1) Note on intangible assets
Unit: RMB Yuan
Non-patented Technology use
Item Land use right Patents Software system Copyright Total
technology right
I. Original book
value
1. Beginning
478,693,633.32 73,900,786.38 10,391,942.73 562,986,362.43
balance
2. Increase
44,663,009.88 8,066,037.47 52,729,047.35
in current period
(1)
44,663,009.88 8,066,037.47 52,729,047.35
Acquisition
(2) Internal
research and
development
(3)
Increase from
business
combination
3. Decrease in
1,870,718.14 72,649.57 1,943,367.71
current period
(1)
1,870,718.14 72,649.57 1,943,367.71
Disposal
4. Ending
476,822,915.18 118,491,146.69 10,391,942.73 8,066,037.47 613,772,042.07
balance
II. Accumulated
amortization
1. Beginning
109,251,723.00 33,256,761.33 10,322,650.29 152,831,134.62
balance
2. Increase
9,721,896.00 16,503,789.11 7,358.52 1,344,339.60 27,577,383.23
in current period
(1)
9,721,896.00 16,503,789.11 7,358.52 1,344,339.60 27,577,383.23
Provisions
3. Decrease
235,047.20 13,319.13 248,366.33
in current period
(1)
235,047.20 13,319.13 248,366.33
Disposal
4. Ending
118,738,571.80 49,747,231.31 10,330,008.81 1,344,339.60 180,160,151.52
balance
III. Provision for
impairment
1. Beginning
balance
2. Increase
in current period
(1)
Provisions
161
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
3. Decrease
in current period
(1) Disposal
4. Ending
balance
IV. Book value
1. Ending
358,084,343.38 68,743,915.38 61,933.92 6,721,697.87 433,611,890.55
book value
2. Beginning
369,441,910.32 40,644,025.05 69,292.44 410,155,227.81
book value
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 Yuan
Item Book value Reason for not obtaining certificate of title
The certificate of title has not been obtained due to
historical reasons, to which the Company has attached
Land use right 1,165,822.25
great importance and planned to obtained the certificate
of title gradually
Total 1,165,822.25
13. Goodwill
(1) Original book value of goodwill
Unit: RMB Yuan
Decrease in
Increase in current period
current period
Name of invested company or matters Beginning
Through Ending balance
forming goodwill balance
business Disposal
combination
Sichuan Yibin Global Group Shenzhou
37,535.96 37,535.96
Glass Co., Ltd.
Sichuan Yibin Global Gelasi Glass
18,005.18 18,005.18
Manufacturing Co., Ltd.
Sichuan Yibin Plastic Packaging Materials
666,461.77 666,461.77
Company Limited
Sichuan Yibin Push Group 3D Co., Ltd. 899,616.62 899,616.62
Total 1,621,619.53 1,621,619.53
14. Long-term deferred expenses
Unit: RMB Yuan
Increase in current Amount amortized
Item Beginning balance Other decreases Ending balance
period to current period
Mold 78,539,047.11 61,017,039.48 40,905,080.80 98,651,005.79
Overhaul
5,979,307.95 16,289,243.42 5,162,499.07 17,106,052.30
expenses of kilns
Others 7,082,976.90 2,181,507.56 2,140,469.89 7,124,014.57
Total 91,601,331.96 79,487,790.46 48,208,049.76 122,881,072.66
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.
162
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB Yuan
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for
69,531,164.48 17,382,791.12 62,160,116.40 15,540,029.10
impairment of assets
Unrealized profit of
687,396,568.96 171,849,142.24 459,631,885.88 114,907,971.47
internal transaction
Payroll payable 3,471,678,797.08 867,919,699.27 3,444,231,749.08 861,057,937.27
Others 1,715,679,789.28 428,919,947.32 663,544,164.64 165,886,041.16
Total 5,944,286,319.80 1,486,071,579.95 4,629,567,916.00 1,157,391,979.00
(2) Details about deferred income tax assets which have not been recognized
Unit: RMB Yuan
Item Ending balance Beginning balance
Deductible temporary differences 7,594,646.58 9,104,208.09
Deductible losses 218,357,092.41 271,450,834.30
Total 225,951,738.99 280,555,042.39
Notes: 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 Yuan
Year Ending amount Beginning amount Remarks
Year 2020 4,604,961.02
Year 2021 11,226,757.85 24,902,925.05
Year 2022 49,285,485.22 90,071,724.12
Year 2023 85,123,732.43 101,698,424.52
Year 2024 45,224,304.55 50,172,799.59
Year 2025 27,496,812.36
Total 218,357,092.41 271,450,834.30 --
16. Other non-current assets
Unit: RMB Yuan
Ending balance Beginning balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Advances of progress
payment for information 293,128,020.09 293,128,020.09 165,284,283.25 165,284,283.25
system construction
Total 293,128,020.09 293,128,020.09 165,284,283.25 165,284,283.25
17. Notes payable
Unit: RMB Yuan
Type Ending balance Beginning balance
Letter of credit 4,076,542.40
Bank acceptance bill 759,552,349.44 419,485,425.61
Total 763,628,891.84 419,485,425.61
Total amount of notes payable which became matured but unpaid at the end of current period is
163
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
RMB 0.00.
18. Accounts payable
(1) Presentation of accounts payable
Unit: RMB Yuan
Item Ending balance Beginning balance
Accounts payable 3,382,875,146.71 3,257,672,975.56
Total 3,382,875,146.71 3,257,672,975.56
(2) Significant accounts payable over 1 year
Unit: RMB Yuan
Reason for outstanding or carrying
Item Ending balance
forward
Project payment 20,844,926.92
Goods payment 10,898,576.68
Total 31,743,503.60 --
19. Accounts received in advance
(1) Presentation of accounts received in advance
Unit: RMB Yuan
Item Ending balance Beginning balance
Accounts received in advance 23,949,793.92 21,782,796.70
Total 23,949,793.92 21,782,796.70
(2) Significant accounts received in advance over 1 year
There was no significant accounts received in advance over 1 year during the reporting period.
(3) Disclosure by aging:
Aging Book balance
Within 1 year 19,214,167.20
1 to 2 years 4,547,861.24
2 to 3 years 113,218.20
More than 3 years 74,547.28
Total 23,949,793.92
(4) Accounts received in advance with top 5 ending balances:
Proportion in ending balance of
Unit name Ending balance
accounts received in advance
Henan Huaibin Wulong Wine Industry Co., Ltd. 1,144,539.50 4.78%
Yibin Lianheyibai Supermarket Co., Ltd. 513,419.59 2.14%
Gubeichun Group Co., Ltd. 462,977.00 1.93%
Chengdu Jinqiao Wine Co., Ltd. 260,000.00 1.09%
Anhui Yifajiu Sugar-Wines Supermarket
242,617.00 1.01%
Chainstore Co., Ltd.
Total 2,623,553.09 10.95%
20. Contract liability
Unit: RMB Yuan
Item Ending balance Beginning balance
Accounts received in advance 8,618,543,467.25 11,078,218,239.27
Total 8,618,543,467.25 11,078,218,239.27
164
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
21. Payroll payable
(1) Presentation of payroll payable
Unit: RMB Yuan
Beginning Increase in current Decrease in current
Item Ending balance
balance period period
I. Short-term compensation 3,594,872,516.96 5,557,366,073.46 5,524,262,942.96 3,627,975,647.46
II. Post-employment benefits
14,212.85 237,305,943.65 235,770,815.44 1,549,341.06
- defined contribution plans
III. Termination benefits 4,217,845.78 4,217,845.78
Total 3,594,886,729.81 5,798,889,862.89 5,764,251,604.18 3,629,524,988.52
(2) Presentation of short-term compensation
Unit: RMB Yuan
Beginning Increase in current Decrease in current
Item Ending balance
balance period period
1. Salaries, bonuses,
3,530,255,438.55 4,527,192,084.57 4,479,534,189.61 3,577,913,333.51
allowances and subsidies
2. Employee benefits 309,498,954.86 309,498,954.86
3. Social insurance
154,678.65 216,582,569.65 216,582,569.65 154,678.65
charges
Including: Medical
154,486.34 196,385,486.30 196,385,486.30 154,486.34
insurance premium
Industrial injury
107.45 3,067,060.76 3,067,060.76 107.45
insurance premium
Birth insurance
84.86 17,130,022.59 17,130,022.59 84.86
premium
4. Housing fund 21,060,784.00 407,067,035.00 399,715,486.00 28,412,333.00
5. Labor union
expenditure and personnel 43,401,615.76 97,025,429.38 118,931,742.84 21,495,302.30
educational fund
Total 3,594,872,516.96 5,557,366,073.46 5,524,262,942.96 3,627,975,647.46
(3) Presentation of defined contribution plans
Unit: RMB Yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Basic pension
14,212.85 71,213,360.60 69,678,232.39 1,549,341.06
insurance
2. Unemployment
1,745,065.15 1,745,065.15
insurance premium
3. Corporate
164,347,517.90 164,347,517.90
pension contribution
Total 14,212.85 237,305,943.65 235,770,815.44 1,549,341.06
22. Tax payable
Unit: RMB Yuan
Item Ending balance Beginning balance
VAT 1,112,034,953.43 839,852,597.96
Consumption tax 1,606,202,793.99 1,830,800,710.07
Corporate income tax 2,516,790,391.94 5,001,143,551.02
Individual income tax 37,055,886.19 13,250,079.02
Urban maintenance and construction
248,199,304.35 116,343,916.81
tax
Property tax 725,078.38 369,637.06
165
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Stamp duty 831,884.22 645,760.98
Land use tax 1,075,376.54 1,079,906.23
Education surcharge 11,579,730.23 81,365,635.62
Local education surcharge 7,673,369.90 54,248,855.59
Environmental protection tax 31,561.50 18,621.28
Resource tax 47,317.20
Total 5,542,200,330.67 7,939,166,588.84
Other notes:
The taxes of the Company depend on the amount verified and imposed by the tax authorities.
23. Other payables
Unit: RMB Yuan
Item Ending balance Beginning balance
Dividend payable 37,918,093.23
Other payables 2,762,845,488.90 2,292,680,733.51
Total 2,800,763,582.13 2,292,680,733.51
(1) Dividend payable
Unit: RMB Yuan
Item Ending balance Beginning balance
Dividends payable by subsidiaries to
37,918,093.23
minority shareholders
Total 37,918,093.23
(2) Other payables
1) Presentation of other payables by nature
Unit: RMB Yuan
Item Ending balance Beginning balance
Image publicity expense and sales promotional
1,722,127,207.54 1,178,396,467.55
expense
Deposit 816,163,308.72 703,073,760.13
Accrued expenses 230,340,302.12
Money collected or paid for another 54,932,275.78 48,691,583.55
Claims from safeguarding rights 43,349,435.78 42,291,712.18
Others 126,273,261.08 89,886,907.98
Total 2,762,845,488.90 2,292,680,733.51
2) Significant other payables over 1 year
Unit: RMB Yuan
Reason for outstanding or carrying
Item Ending balance
forward
Deposit 89,403,367.23
Total 89,403,367.23 --
24. Other current liabilities
Unit: RMB Yuan
Item Ending balance Beginning balance
Taxes to be carried forward 1,117,452,799.61 1,430,705,818.80
Total 1,117,452,799.61 1,430,705,818.80
166
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
25. Deferred income
Unit: RMB Yuan
Increase in current Decrease in
Item Beginning balance Ending balance Cause
period current period
Government
266,325,368.40 10,372,000.04 255,953,368.36
subsidy
Total 266,325,368.40 10,372,000.04 255,953,368.36 --
Projects involving government subsidies:
Unit: RMB Yuan
Amount
New Amount
offset
subsidies recognized
Amount against
Beginning for as Other Asset-related
Liabilities recognized as costs and Ending balance
balance current non-operating changes /income-related
other incomes expenses
period revenue in
in current
Amount current year
year
90-Thousand-Ton
Pottery Jar Aging
Spirit Room
181,242,000.22 6,712,666.56 174,529,333.66 Asset-related
Technical
Innovation Project
(Phase I)
Brewery
Wastewater
15,450,000.00 750,000.00 14,700,000.00 Asset-related
Comprehensive
Treatment Project
Wastewater
Comprehensive
Treatment and 13,799,999.95 333,333.36 13,466,666.59 Asset-related
Transformation
Project
Songgong River
(Wuliangye Section)
10,551,166.64 357,666.72 10,193,499.92 Asset-related
Comprehensive
Treatment Project
Wuliangye
Industrial Park
10,000,000.00 10,000,000.00 Asset-related
Construction
Project
300-Thousand-Ton
Pottery Jar Aging
10,000,000.00 2,813,600.00 10,000,000.00 Asset-related
Spirit Room (Phase
I)
Technical
Upgrading Project
9,270,000.03 343,333.32 8,926,666.71 Asset-related
of the Quality
Control, Quality
167
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Inspection and
Testing Center
Wastewater
Treatment System
8,639,999.92 320,000.04 8,319,999.88 Asset-related
Upgrading and
Renovation Project
Technical
Upgrading Project
of the
60-Thousand-Ton 2,359,999.76 590,000.04 1,769,999.72 Asset-related
Maotai-Flavor
Liquor Pottery Jar
Aging Room
Coal-to-Gas Energy
Conservation and
1,833,035.22 219,999.96 1,613,035.26 Asset-related
Emission Reduction
Project (Phase I)
Coal-to-Gas Energy
Conservation and
500,000.00 500,000.00 Asset-related
Emission Reduction
Project (Phase II)
Shiergoubao
Production Line
360,000.00 120,000.00 240,000.00 Asset-related
Technical
Upgrading Project
Industrial
1,000,000.00 1,000,000.00 Income-related
development funds
Informatization and
729,166.66 125,000.04 604,166.62 Asset-related
big data application
Subsidy for national
500,000.00 500,000.00 Income-related
green plant of 2018
Provincial special
funds for intellectual 90,000.00 90,000.00 Income-related
property
Total 266,325,368.40 10,372,000.04 255,953,368.36
26. Capital stock
Unit: RMB Yuan
Increase/decrease (+, -)
Beginning balance Issuance Bonus
Capitalization Ending balance
of new of public Others Sub-total
share
shares reserve fund
Sum of
3,881,608,005.00 3,881,608,005.00
shares
27. Capital reserve
168
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Unit: RMB Yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Capital premium
(capital stock 2,682,523,702.98 2,682,523,702.98
premium)
Other capital reserve 123,383.17 123,383.17
Total 2,682,647,086.15 2,682,647,086.15
28. Surplus reserve
Unit: RMB Yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Statutory surplus
16,092,197,023.01 3,606,328,972.50 19,698,525,995.51
reserves
Total 16,092,197,023.01 3,606,328,972.50 19,698,525,995.51
29. Undistributed profit
Unit: RMB Yuan
Item Current period Previous period
Undistributed profit at the end of previous
51,634,248,548.06 43,802,603,958.99
period before adjustment
Undistributed profit at the beginning of the
51,634,248,548.06 43,802,603,958.99
period after adjustment
Plus: Net profits attributable to the owners of
19,954,809,594.52 17,402,164,190.16
parent company in current period
Less: Appropriation of statutory surplus
3,606,328,972.50 2,971,785,992.59
reserves
Common share dividends payable 8,539,537,611.00 6,598,733,608.50
Ending undistributed profit 59,443,191,559.08 51,634,248,548.06
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.
30. Operating revenue and operating cost
Unit: RMB Yuan
Amount in current period Amount in previous period
Item
Revenue Cost Revenue Cost
Primary business 56,786,051,615.16 14,362,156,374.57 49,857,555,489.83 12,578,575,730.65
Other businesses 535,007,837.99 449,805,104.08 260,550,387.31 223,684,216.69
Total 57,321,059,453.15 14,811,961,478.65 50,118,105,877.14 12,802,259,947.34
Whether the lower of net profit before or after deduction of non-recurring profit and loss is negative
□ Yes √ No
169
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Information related to revenue from liquor products in the primary business revenue:
Unit: RMB Yuan
Contracts classification Eastern Region Southern Region Western Region Northern Region Central Region Total
Product type
Wuliangye products 12,482,563,493.61 5,045,313,472.82 14,266,939,100.35 5,199,208,238.35 7,066,604,045.96 44,060,628,351.09
Series liquor products 1,703,467,453.10 578,468,683.96 4,226,770,672.23 588,238,705.05 1,276,498,001.05 8,373,443,515.39
Classification by sales channel
On-line 159,627,636.50 10,993,601.57 933,826,426.97 837,151,895.48 14,673,948.68 1,956,273,509.20
Off-line 14,026,403,310.21 5,612,788,555.21 17,559,883,345.61 4,950,295,047.92 8,328,428,098.33 50,477,798,357.28
Classification by sales model
Distribution models 12,598,450,566.24 4,642,621,184.49 16,419,972,018.45 4,372,948,931.19 7,345,760,192.45 45,379,752,892.82
Direct sales model 1,587,580,380.47 981,160,972.29 2,073,737,754.13 1,414,498,012.21 997,341,854.56 7,054,318,973.66
Total 14,186,030,946.71 5,623,782,156.78 18,493,709,772.58 5,787,446,943.40 8,343,102,047.01 52,434,071,866.48
Information related to performance obligations:
Revenue is recognized at the point when the Company completes its contractual performance obligations when the customer obtains control of the
goods to which it belongs in the contractual agreement.
Information related to the transaction price apportioned to the remaining performance obligation:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not completed at the end of
the reporting period was RMB 8,618,543,467.25.
170
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
31. Tax and surcharges
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Consumption tax 6,528,819,159.02 5,574,554,509.16
Urban maintenance and construction
852,468,951.35 765,970,059.85
tax
Education surcharge 366,214,108.43 328,844,515.77
Resource tax 137,241.30 372,276.20
Property tax 34,344,217.68 28,945,716.04
Land use tax 50,029,296.62 50,020,995.02
Vehicle and vessel use tax 586,715.18 13,797.41
Stamp duty 14,999,803.23 13,660,117.60
Local education surcharge 243,586,461.76 219,840,795.95
Environmental protection tax 1,162,641.53 2,120,319.55
Total 8,092,348,596.10 6,984,343,102.55
32. Selling expenses
Unit: RMB Yuan
Amount in current Amount in previous
Item
period period
Image publicity expense 1,148,203,672.92 987,687,876.55
Sales promotional expense 3,302,764,255.56 3,008,319,662.93
Storage and logistics expenses 260,214,712.62 350,991,941.23
Expenses of labour 470,739,623.11 331,708,441.32
Other expenses 396,996,259.77 306,871,414.74
Total 5,578,918,523.98 4,985,579,336.77
Notes: In accordance with the new revenue standard, transportation costs directly related to the
performance of contracts were transferred from "selling expenses" to "operating costs" in the current
period.
33. Administrative expenses
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Comprehensive expenses of the Company
(including travel, office, expenses of the board
966,318,139.08 1,148,066,122.90
of directors, employee remuneration, labor
insurance, labor protection appliances, etc)
Rents 361,949,846.81 357,228,294.55
Trademark and logo royalties 639,427,170.39 580,070,408.13
Comprehensive service fee 91,977,989.83 67,614,607.22
Others 549,856,539.98 502,367,715.29
Total 2,609,529,686.09 2,655,347,148.09
34. Research and development expense
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Comprehensive expenses (including travel,
office, payroll, labor insurance, labor protection 73,819,430.63 53,752,944.91
appliances, etc.)
171
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Material expenses 18,616,952.02 31,810,442.56
Product design fees 12,189,610.30 14,787,253.09
Depreciation and amortization expenses 8,339,539.69 7,051,081.97
Others 18,349,692.69 18,958,698.58
Total 131,315,225.33 126,360,421.11
35. Financial expenses
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Interest expenditure
Less: Interest revenue 1,521,933,975.40 1,416,398,912.72
Exchange loss 128,944.28 134,662.81
Less: Exchange gains 89,237.71 202,724.12
Service charge of financial institutions 1,550,017.99 1,224,741.74
Others 34,825,050.63 -15,503,633.45
Total -1,485,519,200.21 -1,430,745,865.74
Notes: The rest are mainly note discount expenses.
36. Other incomes
Unit: RMB Yuan
Sources of other incomes Amount in current period Amount in previous period
Government subsidy 105,648,782.20 130,434,159.51
Tax refunds 56,724,988.21 29,278,082.30
Total 162,373,770.41 159,712,241.81
Notes:
1. Refer to the Note “VII. 48. 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”.
37. Investment income
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Long-term equity investment income
93,504,494.16 92,500,753.05
accounted by equity method
Total 93,504,494.16 92,500,753.05
38. Credit impairment loss
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Bad debt loss of other receivables -1,480,304.84 -644,388.36
Bad debt loss of accounts receivable 2,504,725.68 -489,191.91
Total 1,024,420.84 -1,133,580.27
39. Asset impairment loss
Unit: RMB Yuan
Item Amount in current period Amount in previous period
II. Losses for inventory falling price and
losses for impairment of contract performance -13,664,476.45 -3,020,763.91
costs
V. Fixed asset impairment losses -448,709.53
Total -14,113,185.98 -3,020,763.91
40. Gain from disposal of assets
Unit: RMB Yuan
172
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Source of gain from disposal of assets Amount in current period Amount in previous period
Disposal of non-current assets 1,129,293.57 2,779,400.03
Total 1,129,293.57 2,779,400.03
41. Non-operating revenue
Unit: RMB Yuan
Amounts recorded into current
Item Amount in current period Amount in previous period
non-recurring profit or loss
Penalty revenue 9,485,442.44 5,986,339.09 9,485,442.44
Gains from scrap of
151,265.50 909,663.24 151,265.50
non-current assets
Others 31,025,244.38 22,994,270.32 31,025,244.38
Total 40,661,952.32 29,890,272.65 40,661,952.32
42. Non-operating expenditure
Unit: RMB Yuan
Amounts recorded into current
Item Amount in current period Amount in previous period
non-recurring profit or loss
Donations 160,898,370.13 147,731,056.86 160,898,370.13
Penalty expenditure 251,432.49 266,281.96 251,432.49
Loss on scrap of non-current
6,345,206.99 5,260,675.33 6,345,206.99
assets
Abnormal loss 80,408.09 29,395.82 80,408.09
Others 21,063,253.13 16,390,656.88 21,063,253.13
Total 188,638,670.83 169,678,066.85 188,638,670.83
Other notes:
The external donations mainly consist of RMB 139,670,000 to Sichuan Wuliangye Charity Fund and
RMB 20 million to Sichuan University Education Foundation Special Fund for High-end Talents. Among
which, donations to Sichuan Wuliangye Charity Fund include: RMB 70 million to the Wuliangye Rural
Revitalization Industry Road and the RMB 300 million bill donation project; RMB 30 million to the
Wuliangye Education Fund; RMB 18.58 million to the Yibin City Sanzhou area poverty alleviation and
disaster relief vehicle project; RMB 9 million to the Children's Home "Family-type Foster Care Center"
Project, RMB 6.6 million to poverty alleviation projects in Xingwen County, Litang County, Pingshan
County and Leibo County, RMB 2.19 million for the network information technology classroom project of
Litang Middle School to help fight poverty, RMB 1.5 million to Yibin Care for the Next Generation
Foundation, RMB 1 million to help implementing the "Purchase Goods of Yi Nationality, Send Love to
Liangshan" project in Liangshan Prefecture, RMB 0.7 million to Jieji Village, Pingbian Yi Township,
Pingshan County to match the standard and fill the shortage, and RMB 0.1 million to Litang students in
need of financial aid.
43. Income tax expenses
(1) List of income tax expenses
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Current income tax expenses 7,093,786,409.11 6,163,289,027.89
Deferred income tax expenses -328,679,600.95 -285,532,262.97
Total 6,765,106,808.16 5,877,756,764.92
(2) Accounting profit and income tax expense adjustment process
Unit: RMB Yuan
173
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Item Amount in current period
Total profit 27,678,447,217.70
Income tax expense calculated with statutory/applicable tax rates 6,919,611,804.43
Impact of different tax rates applicable to subsidiaries -96,159,078.75
Impact on adjustment of income tax in previous periods -10,840,567.61
Impact of nontaxable revenue -23,376,123.54
Impact of non-deductible costs, expenses and losses 2,314,465.17
Impact of deductible losses of deferred income tax assets which have
-18,996,398.31
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 6,496,812.71
current period
Impact of weighted deduction for salary of the disabled -12,258,131.94
Impact of weighted deduction for research and development
-454,744.38
expenses
Impact of one-time deduction of fixed assets -1,231,229.62
Income tax expenses 6,765,106,808.16
44. Items of cash flow statement
(1) Other cash received relating to operating activities
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Interest revenue 1,823,793,053.16 1,042,012,585.56
Deposits and government subsidies
419,867,382.82 421,764,044.99
received
Total 2,243,660,435.98 1,463,776,630.55
(2) Other cash paid relating to operating activities
Unit: RMB Yuan
Item Amount in current period Amount in previous period
Expenses relating to selling 1,882,862,475.29 1,766,874,668.53
Comprehensive service fee 91,977,989.83 60,889,059.16
Trademark and logo royalties 639,427,170.39 477,571,873.51
Rents 361,949,846.81 337,348,167.14
Deposits, current accounts and other out-of-pocket 984,075,848.21
722,835,412.55
expenses paid
Total 3,960,293,330.53 3,365,519,180.89
45. Supplementary Information to Cash Flow Statement
(1) Supplementary Information to Cash Flow Statement
Unit: RMB Yuan
Supplementary information Amount of current period Amount of previous period
1. Reconciliation from net profits to
-- --
cash flows from operating activities:
Net profit 20,913,340,409.54 18,228,255,278.61
Plus: Provision for impairment
5,926,341.01 3,436,827.62
of assets
Fixed assets depreciation, 435,670,691.93 418,406,696.04
174
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
oil and gas assets depletion, and
productive biological assets depreciation
Depreciation of right-of-use
assets
Amortization of intangible
27,577,383.23 19,235,638.90
assets
Amortization of long-term
48,208,049.76 52,056,059.84
deferred expenses
Loss from disposals of
fixed assets, intangible assets and other -1,129,293.57 -2,779,400.03
long-term assets (gains indicated with “-”)
Scrap loss of fixed assets
6,193,941.49 4,351,012.09
(gains indicated with “-”)
Loss from changes of fair
value (income indicated with “-”)
Financial expenses (gains
130,439.21 -63,661.42
indicated with “-”)
Investment loss (gains
-93,504,494.16 -92,500,753.05
indicated with “-”)
Decrease in deferred
income tax assets (increase indicated -328,679,600.95 -285,532,262.97
with “-”)
Increase in deferred
income tax liabilities (loss indicated with
“-”)
Decrease in inventory
444,843,931.64 -1,886,461,774.33
(increase indicated with “-”)
Decrease in operating
-2,121,902,869.11 -2,354,601,239.25
receivables (increase indicated with “-”)
Increase in operating
-4,638,347,336.81 9,008,269,618.61
payables (decrease indicated with “-”)
Others
Net cash flows from
14,698,327,593.21 23,112,072,040.66
operating activities
2. Significant investment and financing
-- --
activities not involving cash:
Conversion of debt into capital
Convertible corporate bonds
maturing within one year
Fixed assets under financing
lease
3. Net change in cash and cash
-- --
equivalents:
Ending balance of cash 66,967,091,800.45 63,138,829,242.88
Less: Beginning balance of 63,138,829,242.88 48,888,727,143.63
175
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
cash
Plus: Ending balance of cash
65,304,080.91
equivalents
Less: Beginning balance of
65,304,080.91 71,321,754.32
cash equivalents
Net increase in cash and cash
3,762,958,476.66 14,244,084,425.84
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Ending balance Beginning balance
I. Cash 66,967,091,800.45 63,138,829,242.88
Including: Cash on hand 25,283.79 28,179.40
Bank deposit readily available
66,967,063,316.29 63,138,797,874.22
for payment
Other cash and cash
3,200.37 3,189.26
equivalents readily available for payment
II. Cash equivalents 65,304,080.91
Deposit of notes matured within three
65,304,080.91
months
III. Ending balance of cash and cash
66,967,091,800.45 63,204,133,323.79
equivalents
46. Assets with restricted ownership or use right
Unit: RMB Yuan
Item Ending book value Reasons for limitation
Cash and cash 329,069,085.01 Deposit of bank acceptance bill of RMB 328,818,561.81 and other
equivalents deposits of RMB 250,523.20.
Accounts receivable
52,470,000.00 Pledge of bank acceptance bill
financing
Total 381,539,085.01 --
47. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB Yuan
Ending balance of foreign Ending balance converted to
Item Conversion exchange rate
currency RMB
Cash and cash equivalents -- --
Including: USD 1,070,821.78 6.5249 6,987,005.03
Euro
Hong Kong Dollar
Accounts receivable -- --
Including: USD
Euro
Hong Kong Dollar
Long-term loans -- --
Including: USD
Euro
Hong Kong Dollar
176
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(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
48. Government subsidy
(1) Basic information of government subsidies
Unit: RMB Yuan
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 357,666.72
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 2,813,600.00
(Phase I)
Wastewater Treatment System Upgrading and
9,600,000.00 Deferred income 320,000.04
Renovation Project
Coal-to-Gas Energy Conservation and Emission
6,600,000.00 Deferred income 219,999.96
Reduction Project (Phase I)
Technical Upgrading Project of the
60-Thousand-Ton Maotai-Flavor Liquor Pottery Jar 5,900,000.00 Deferred income 590,000.04
Aging Room
Shiergoubao Production Line Technical Upgrading
1,200,000.00 Deferred income 120,000.00
Project
Informatization and big data application 1,000,000.00 Deferred income 125,000.04
Industrial development funds 1,000,000.00 Deferred income
Subsidy for national green plant of 2018 500,000.00 Deferred income
Coal-to-Gas Energy Conservation and Emission
500,000.00 Deferred income 500,000.00
Reduction Project (Phase II)
Provincial special funds for intellectual property 90,000.00 Deferred income
VAT deduction 19,895,187.06 Other incomes 19,895,187.06
Huai Bin County Finance Bureau investment
14,452,862.66 Other incomes 14,452,862.66
promotion subsidy
Industrial development funds 13,420,000.00 Other incomes 13,420,000.00
Industrial enterprise subsidies 13,415,000.00 Other incomes 13,415,000.00
Enterprise support funds 8,094,872.60 Other incomes 8,094,872.60
177
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Refund of charges of individual income tax 5,241,091.35 Other incomes 5,241,091.35
Subsidies of 2019 for several policies of fastening
the construction of modern powerful industrial cities
3,800,000.00 Other incomes 3,800,000.00
and promoting industrial park innovation, reform
and transformation development
300-Thousand-Ton Pottery Jar Aging Spirit Room
2,813,600.00 Other incomes 2,813,600.00
(Phase I)
Special fund for talent development 2,493,600.00 Other incomes 2,493,600.00
Special development fund of Yibin County
Economic and Commercial Informatization and 2,380,000.00 Other incomes 2,380,000.00
Science and Technology Bureau
Yibin Nanxi District Economic Cooperation and
1,875,000.00 Other incomes 1,875,000.00
Foreign Affairs Bureau award
Jiang'an County Financial Headquarters Economic
1,587,264.00 Other incomes 1,587,264.00
Development subsidy
2019 Yu Liquor overall image promotion special
promotion subsidy and Yu Liquor development 1,140,000.00 Other incomes 1,140,000.00
funds
Science and technology project funds 1,070,000.00 Other incomes 1,070,000.00
New apprenticeship training subsidy for enterprises
918,000.00 Other incomes 918,000.00
in Cuiping District, Yibin City
Glass bottle green manufacturing line
800,000.00 Other incomes 800,000.00
transformation pilot project
Subsidies for stabilizing industrial economic growth
362,000.00 Other incomes 362,000.00
to support enterprises
2018 urban grassroots Party building subsidies 300,000.00 Other incomes 300,000.00
2019 processing trade and bonded logistics
210,800.00 Other incomes 210,800.00
business subsidies
Lead the development of industry standard
200,000.00 Other incomes 200,000.00
subsidies
Special fund for IPRs in Sichuan Province in 2019 100,000.00 Other incomes 100,000.00
Entrepreneurship-led employment subsidies 95,177.73 Other incomes 95,177.73
2019 Yibin patent subsidies 82,500.00 Other incomes 82,500.00
Linzhang County Environmental Protection
Bureau’s subsidies for low nitrogen combustion 80,000.00 Other incomes 80,000.00
transformation of coal-fired boilers
Advanced enterprises of Lingang District
78,900.00 Other incomes 78,900.00
Management Committee in 2019
Special funds for the development of functional
microorganism technology to improve the quality of 78,200.00 Other incomes 78,200.00
solid strong-flavor liquor
Other fragmentary government subsidy 292,726.76 292,726.76
178
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Total 396,576,782.16 105,648,782.20
(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 April 15, 2020, the Company and Wuliangye Group, as reviewed and approved by the 72nd
meeting of the fifth board of directors of the Company, jointly funded and established "Sichuan
Wuliangye New Retail Management Co., Ltd." (hereinafter referred to as the "New Retail Company"), of
which the registered capital was RMB 100 million. The Company contributed RMB 90 million, taking up
90% of the registered capital; Wuliangye Group contributed RMB 10 million, taking up 10% of the
registered capital; and Sichuan Wuliangye New Retail Management 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
Registered Nature of Way of
Name of subsidiary business proportion
address business acquisition
place Directly Indirectly
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
Yibin Yibin Business 95.00% Establishment
Marketing Co., Ltd.
Yibin Wuliangchun Brand Marketing Co., Ltd Yibin Yibin Business 95.00% Establishment
Yibin Wuliangye Series Liquor Brand
Yibin Yibin Business 95.00% Establishment
Marketing Co., Ltd.
Sichuan Yibin Wuliangye Supply and
Yibin Yibin Business 99.00% 0.95% Establishment
Marketing 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
Sichuan Jinwuxin Technology Co., Ltd. Yibin Yibin Business 51.00%
combination
179
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
involving
enterprises
not under the
same control
Sichuan Jiebeike Environmental Technology
Yibin Yibin Engineering 26.01% Establishment
Co., 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
Yibin Yibin Manufacturing 90.00% Establishment
Co., Ltd.
Yibin Xianlin Liquor Marketing Co., Ltd. Yibin Yibin Business 90.00% Establishment
Yibin Wuliangye Xinshengdai Liquor Co.,
Yibin Yibin Business 42.30% Establishment
Ltd.
Sichuan Yibin Wuliangye Jingmei Printing
Yibin Yibin Manufacturing 97.00% 1.53% Establishment
Co., 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 involving
Yibin Yibin Manufacturing 100.00%
Manufacturing 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
180
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Guangdong Foshan Plastic Packaging
Foshan Foshan Manufacturing 100.00% Establishment
Materials Company Limited
Sichuan Yibin Wuliangye Investment
Yibin Yibin Investment 95.00% Establishment
(Consulting) 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
Handan Yongbufenli Sales Co., Ltd. Handan Handan Business 51.00% Establishment
Business
combination
Huaibin Wubin Consultation Service Co., involving
Huaibin Huaibin Consultation 100.00%
Ltd. enterprises
not under the
same control
Business
combination
involving
Wuguchun Jiu Ye Co., Henan. China 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.,
Yibin Yibin Business 95.00% Establishment
Ltd.
Sichuan Wuliangye New Retail Management
Chengdu Chengdu Business 90.00% Establishment
Co., Ltd.
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 Yibin Wuliangye Creart Co., Ltd. (hereinafter
referred to as the “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
181
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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. transferred 11% of the equity to Shanghai Yue Shan Investment Management
Co., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; as
resolved by the shareholder meeting of Creart Company on July 16, 2018, Beijing Sparkle Investment
Co., Ltd. transferred 20% of the equity to Beijing Sparkle Hengye Education and Cultural Development
Co., Ltd.; after the said equity transfer, the Company still holds 51% of the voting 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 Yibin Wuliangye Creart Co., Ltd. (hereinafter
referred to as the “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. transferred 11% of the equity to Shanghai Yue Shan Investment Management
Co., Ltd. and 6% of the equity to CHINA FINANCIAL INVESTMENT MANAGEMENT LIMITED; as
resolved by the shareholder meeting of Creart Company on July 16, 2018, Beijing Sparkle Investment
Co., Ltd. transferred 20% of the equity to Beijing Sparkle Hengye Education and Cultural Development
Co., Ltd.; after the said equity transfer, the Company still holds 51% of the voting 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.
(2) Important non-wholly owned subsidiaries
Unit: RMB Yuan
Minority
Current profits and losses Current dividends
shareholders Ending balance of
Name of subsidiary attributable to minority declared to minority
shareholding minority equity
shareholders shareholders
proportion
Yibin Wuliangye
Liquor Sales Co., 5.00% 853,340,651.34 686,594,317.48 1,223,082,616.43
Ltd.
182
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
(3) Main financial information of important non-wholly owned subsidiaries
Unit: RMB Yuan
Ending balance
Name of subsidiary Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
38,220,982,171.89 845,669,041.27 39,066,651,213.16 14,895,619,601.97 14,895,619,601.97
Beginning balance
Yibin Wuliangye Liquor Sales Co.,
Non-current
Ltd. 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
Unit: RMB Yuan
Amount in current period
Name of subsidiary
Operating revenue Net profit Total comprehensive income Cash flows from operating activities
50,993,911,050.55 17,066,813,026.81 17,066,813,026.81 9,446,358,627.67
Yibin Wuliangye Liquor Sales Co., Amount in previous period
Ltd. Operating revenue Net profit Total comprehensive income Cash flows from operating activities
46,559,665,282.40 15,289,221,216.27 15,289,221,216.27 17,588,142,720.27
183
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
2. Interests in joint venture arrangement or associates
(1) Important joint ventures or associates
Shareholding Accounting
Primary proportion treatment of
Registered Nature of
Name of joint venture or associate business investment in
address business
place Directly Indirectly joint ventures or
associates
Advertising
Oriental Outlook Media Co., Ltd. Beijing Beijing 49.00% Equity method
industry
Sichuan Yibin Wuliangye Group Financial
Yibin Yibin 40.56% Equity method
Finance Co., Ltd. industry
Yibin Jiamei Intelligent Packaging Packaging and
Yibin Yibin 48.28% Equity method
Co., Ltd. printing industry
Note on the difference between shareholding proportion and proportion of votes in joint ventures or
associates:
The basis of controlling the invested company even if holding less than 20% voting rights but having
significant influence on the invested company, or holding 20% or more than 20% voting rights but not
having significant influence on the invested company:
(2) Main financial information of important associates
Unit: RMB Yuan
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 38,112,303,722.15 47,753,623,863.80
Total liabilities 33,620,219,849.48 44,990,128,067.29
Equity attributable to the shareholders
4,492,083,872.67 2,763,495,796.51
of parent company
Share of net assets calculated
according to the shareholding 1,821,989,218.75 994,858,486.74
proportion
Book value of equity investment in
1,821,989,218.75 994,858,486.74
associates
Operating revenue 549,652,714.68 458,658,749.74
Net profit 228,588,076.16 247,562,604.36
Total comprehensive income 228,588,076.16 247,562,604.36
(3) Main financial information of unimportant joint ventures and associates
Unit: RMB Yuan
Ending balance/Amount in current Beginning balance/Amount in previous
period period
Joint ventures: -- --
Total amount of the following items
-- --
calculated by shareholding proportion
Associates: -- --
Total book value of investments 32,582,160.88 26,920,244.84
Total amount of the following items
-- --
calculated by shareholding proportion
--Net profit 5,661,916.04 3,378,215.48
--Total comprehensive income 5,661,916.04 3,378,215.48
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
184
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
X. Disclosure of fair value
1. Fair value of assets and liabilities measured at fair value at the end of the period
Unit: RMB Yuan
Fair value at the end of the period
Item Fair value Fair value Fair value
measurement measurement measurement at level Total
at level I at level II III
I. Continuous fair value measurement -- -- -- --
(I) Trading financial assets
1. Financial assets at fair value
through profit or loss
(1) Debt instrument investment
(2) Equity instrument investment
(3) Derivative financial assets
2. Financial assets designated to be
measured at fair value through profit or
loss
(1) Debt instrument investment
(2) Equity instrument investment
(II) Other debt investments
(III) Other equity instrument investment
(IV) Investment properties
1. Land use right for lease
2. Buildings for rent
3. Land use right for lease held and
ready to be transferred after
appreciation
(V) Biological assets
1. Consumptive biological assets
2. Productive biological assets
(VI) Accounts receivable financing 2,024,442,016.72 2,024,442,016.72
(VII) Other non-current financial assets 1,200,000.00 1,200,000.00
Total assets measured at fair value on
2,025,642,016.72 2,025,642,016.72
an ongoing basis
(VIII) Trading financial liabilities
Including: Trading bonds issued
Derivative financial liabilities
Others
(IX) Financial liabilities designated as
measured at fair value through profit or
loss
Total liabilities measured at fair value on
an ongoing basis
II. Fair value measurement on a
-- -- -- --
non-ongoing basis
(I) Assets held for sale
Total assets measured at fair value on a
non-ongoing basis
Total liabilities measured at fair value on
a non-ongoing basis
185
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
2. Basis for determining the market value of level I fair value measurement items on an ongoing
and non-ongoing basises
□ Applicable √ Not applicable
3. For level II fair value measurement items on an ongoing and non-ongoing basises,
qualitative and quantitative information on the valuation techniques used and significant
parameters
□ Applicable √ Not applicable
4. For level III fair value measurement items on an ongoing and non-ongoing basises,
qualitative and quantitative information on the valuation techniques used and significant
parameters
Accounts receivable financing: Due to the short term of notes receivable held by the Company, and
the selling time, selling price and selling proportion cannot be estimated reliably, the Company measures
the notes receivable according to the par value as a reasonable estimate of fair value.
Other non-current financial assets: Since the Company holds other non-current financial assets that
are not traded in an active market, and its equity interest in the invested company is low and has no
significant influence, it is not realistic and feasible to value the equity in the invested company using the
income approach or market approach, and there is no recent introduction of external investors to the
invested company or transfer of equity among shareholders that can be used as a reference basis for
determining fair value. In addition, the Company has not found any significant changes in the internal
and external environment of the invested company since the beginning of the year from the analysis of
the relevant information available, therefore, it is a "limited circumstances" in which the carrying cost can
be used as the best estimate of the fair value, and therefore the fair value is based on the cost at the end
of the year.
5. For level III fair value measurement items on an ongoing basis, reconciliation information
between beginning and ending carrying values and sensitivity analysis of unobservable
parameters
□ Applicable √ Not applicable
6. For fair value measurement items on a continuous basis, if there is a conversion between
different levels in the current period, the reasons for the conversion and the policy for
determining the conversion time point
□ Applicable √ Not applicable
7. Changes in valuation techniques occurring in the current period and reasons for changes
□ Applicable √ Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable √ Not applicable
XI. Related parties and related transactions
1. Note on parent company of the Company
Shareholding ratio of the Proportion of votes of the
Name of parent Registere Nature of Registered
parent company in the parent company in the
company d address business capital
Company Company
Yibin Development RMB 1,390
Yibin Investment 34.43% 34.43%
Holding Group Co., Ltd. million
Note on parent company of the Company:
Yibin Development Holding Group Co., Ltd is a wholly state-owned company funded and
established by the People’s Government of Yibin City. Legal representative of the company is Hua
Shurui 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 Development Holding Group Co., Ltd. include: First, holding state-owned
equity and exercising shareholder’s rights in municipal-level enterprise on behalf of the People’s
Government of Yibin City; second, raising funds for key construction projects as a investment and
financing platform of the People’s Government of Yibin City, and investing in such projects by
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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 Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds
100% of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,128,371,363.00
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
Sichuan Yibin Wuliangye Group Finance Co., Ltd. Associates
Yibin Jiamei Intelligent Packaging Co., Ltd. Associates
4. Note on other related parties
Names of other related parties Relationship between other related parties and the Company
Legal representative of the Company concurrently serves as the
President (General Manager) of Wuliangye Group Company, and
Sichuan Yibin Wuliangye Group Co., Ltd. some directors and officers of the Company currently hold positions
in Wuliangye Group Company; directly holding 20.40% equities of
the Company
Sichuan Anji Logistic Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Wuliangye Group Anji Logistic Co.,
Subsidiaries of Anji Logistic Group Co., Ltd.
Ltd.
Yibin Anji Logistic Group Shenzhou Transportation
Subsidiaries of Anji Logistic Group Co., Ltd.
Co., Ltd.
Yibin Wuliangye Group I&E Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Push Group 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
Sichuan Sacred Mountain Molin Group Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Shengdi Trade Co. Ltd. Subsidiaries of Sacred Mountain Molin Group
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.,
Subsidiaries of Wuliangye Group
Ltd.
Yibin Global Photoelectric Energy Conservation
Subsidiaries of Global Group Company
Technology Co., Ltd.
Sichuan Yibin Push Drive Co., Ltd. Subsidiaries of Push Group Company
Chengdu PUTH Medical Plastics Packaging Co.,
Subsidiaries of Push Group Company
Ltd.
Sichuan Yibin Push Building Materials Co., Ltd. Subsidiaries of Push Group Company
Sichuan Yibin Push Auto Parts Co., Ltd. Subsidiaries of Push Group Company
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Push Information & Automation (Chengdu) Co.,
Subsidiaries of Push Group Company
Ltd.
Chengdu Global Special Glass Manufacturing Co.,
Subsidiaries of Global Group Company
Ltd.
Sichuan Zhongke Better Technology Co., Ltd. Subsidiaries of Global Group Company
Sichuan Yibin Wuliangye Group Anji Logistic
Subsidiaries of Anji Logistic Group Co., Ltd.
Shipping Co., 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
Subsidiaries of Global Group Company
Co., Ltd.
Sichuan Yibin Wuliangye Group Ecological
Subsidiaries of Wuliangye Group
Brewery and Marketing Co., Ltd.
Sichuan Haida Rubber Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Tyre Rubber (Group) Co., Ltd. Subsidiaries of Haida Rubber Group Co., Ltd.
Sichuan Yibin Push Intelligent Technology Co., Ltd. Subsidiaries of Push Group Company
Sichuan Baiweiyuan Food Co., Ltd. Subsidiaries of Wuliangye Group
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
Sichuan Putian Packaging Co., Ltd. Subsidiaries of Push Group Company
Sichuan Sacred Mountain Hechang Clothing Co.,
Subsidiaries of Sacred Mountain Molin Group
Ltd.
Chengdu Sacred Mountain Clothing Company Subsidiaries of Sacred Mountain Molin Group
Yibin Push Assets Management Co., Ltd. Subsidiaries of Push Group Company
Sichuan Ansage Supply Chain Management Co.,
Subsidiaries of Anji Logistic Group Co., Ltd.
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 Wu Liang Ye Grand Hotel Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Jitai Automobile Sales & Service Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Yibin Wuliangye Fund Management Co., Ltd. Subsidiaries of Wuliangye Group
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
Yibin Wucai Packaging Co., Ltd. Subsidiaries of LICRI Group
Sichuan Yibin Push Drive Co., Ltd. Subsidiaries of Push Group Company
Sichuan Wuliangye Health Wine Marketing Co.,
Subsidiaries of Health Wine Group Company
Ltd.
Sichuan Nongwu E-commerce Co., Ltd. Subsidiaries of Wuliangye Group Fund Company
Sichuan Shengshan Hexu Import & Export Trading
Subsidiaries of Sacred Mountain Molin Group
Co., Ltd.
Chengdu Global Special-Glass Manufacture Co.,
Subsidiaries of Global Group Company
Ltd.
Sichuan Shuzhan New Materials Co., Ltd. Subsidiaries of Sacred Mountain Molin Group
188
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Yibin Jichi Automobile Sales Service Co., Ltd. Subsidiaries of Sacred Mountain Molin Group
Sichuan Yibin Wuliangye Group Pengcheng
Subsidiaries of Wuliangye Group
Electronics Instrument Co., Ltd.
Yibin Chuanhong Tea Group Co., Ltd. Subsidiaries of Wuliangye Group Fund Company
Yibin Ansage Auto Service Co., Ltd. Chhengdu
Subsidiaries of Anji Logistic Group Co., Ltd.
Branch
Sichuan Tyre Rubber (Group) Co., Ltd. Subsidiaries of Haida Rubber Group Co., Ltd.
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 Yuan
Amount in Amount in
Related parties Content of related transaction
current period previous period
Sichuan Yibin Global Group Tianwo Trade
Raw materials, etc. 374,497,666.87 301,983,377.21
Co., Ltd.
Sichuan Sacred Mountain Molin Group
Workwear, raw materials, etc. 319,408,705.14 26,945,284.35
Co., Ltd.
Wuming Tea Industry Holding Co., Ltd. Tea, etc. 141,263,221.53 7,222,346.19
Sichuan Yibin Push Group Co., Ltd. RFID anti-counterfeit labels, etc. 84,792,975.46 56,232,156.94
Sichuan Yibin Wuliangye Group Health
Liquors 67,919,611.22
Wine Co., Ltd.
Sichuan Yibin Push Mold Co., Ltd. Molds, raw materials, etc. 59,250,291.62 109,798,846.35
Chengdu PUTH Medical Plastics
Raw materials 53,748,609.10 60,424,484.53
Packaging Co., Ltd.
Yibin Global Photoelectric Energy
Raw materials, etc. 44,301,991.81 110,639.79
Conservation Technology Co., Ltd.
Yibin Ansage International Logistic Co.,
Liquors 44,251,327.38
Ltd.
Yibin Jinlong Trade Development
Raw materials, etc. 40,996,644.76 290,706,070.30
Corporation
Sichuan Sacred Mountain Molin Group
Labor protection appliances, etc. 38,714,015.75 24,336,543.65
Co., Ltd.
Yibin Push Linko Technology Co., Ltd. Raw materials 26,536,541.38
Yibin Wucai Packaging Co., Ltd. Liquors 25,865,591.46
Sichuan Yibin Global Group Co., Ltd. Paper products, etc. 23,676,240.12
Sichuan Yibin Push Drive Co., Ltd. Raw materials, etc. 18,984,916.66 23,294,806.98
Sichuan Wuliangye Health Wine
Glass bottle 16,030,975.17
Marketing Co., Ltd.
Chengdu Global Special-Glass
Industrial paperboard 11,488,219.80
Manufacture Co., Ltd.
Sichuan Yibin Global Group Tianwo Trade
Liquors 11,196,235.86
Co., Ltd.
Sichuan Wuliangye Health Wine
Liquors 11,195,452.74
Marketing Co., Ltd.
Yibin Wucai Packaging Co., Ltd. Packing materials 8,650,026.20
Sichuan Ansage Supply Chain
Raw materials 8,114,838.19
Management Co., Ltd.
Sinopharm Group Yibin Medicine Co., Ltd. Medicine, etc. 7,972,120.82
Sichuan Putian Packaging Co., Ltd. Slices, paper, etc. 7,961,394.53 11,196,877.60
Sichuan Wuliangye Health Wine
Raw materials 7,885,162.30
Marketing Co., Ltd.
Sichuan Haida Rubber Group Co., Ltd. Raw materials 7,883,320.00
Chengdu Huayu Glass Manufacturing Co., Raw materials 4,143,258.12 21,183,258.71
189
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Ltd.
Sichuan Huansheng Pharmacy Co., Ltd. Medicine 3,235,716.63 1,437,983.40
Sichuan Yibin Wuliangye Group Health
Packaging materials, etc. 3,177,152.17
Wine Co., Ltd.
Yibin Ansage Auto Service Co., Ltd. Gasoline 2,300,000.18 1,507,849.01
Yibin Wuliangye Group I&E Co., Ltd. Liquors 2,217,564.96 1,478,570.01
Sichuan Yibin Push Intelligent Technology
Raw materials, etc. 2,191,204.82
Co., Ltd.
Sichuan Yibin Push Building Materials
Raw materials, etc. 1,511,362.08 650,635.5
Co., Ltd.
Sichuan Shuzhan New Materials Co., Ltd. Raw materials, etc. 291,094.03 1,478,897.85
Yibin Shengdi Trade Co. Ltd. Labor protection appliances, etc. 14,620.67 16,696,955.69
Yibin Shengdi Trade Co. Ltd. Packing materials 8,800.00 174,572,272.41
Chengdu Wu Liang Ye Grand Hotel Co.,
Liquors 30,479,352.83
Ltd.
Sub-total of other fragmentary related
3,138,951.40 1,912,059.98
procurement
1,484,815,820. 1,163,649,269.
Total related procurement
93 28
Freight and miscellaneous expenses,
Sichuan Anji Logistic Group Co., Ltd. 534,305,032.99 536,072,363.11
external labor cost, etc.
Yibin Jiamei Intelligent Packaging Co.,
Outsourced processing fee 30,712,887.50
Ltd.
Sichuan Yibin Wuliangye Group Anji Freight and miscellaneous expenses,
21,407,805.87 17,028,929.67
Logistic Co., Ltd. company bus expenses, etc.
Sichuan Yibin Push Intelligent Technology
Maintenance cost, etc. 7,408,091.53 8,903,084.34
Co., Ltd.
Yibin Global Energy Conservation Service
Flue gas treatment, etc. 3,441,567.70 2,973,218.40
Co., Ltd.
Freight and miscellaneous expenses,
Yibin Ansage Auto Service Co., Ltd. 1,693,227.24 3,438,785.56
maintenance, vehicle cost, etc.
Sichuan Shuzhan New Materials Co., Ltd. Printing and production cost 838,938.06 1,180,111.07
Sichuan Ansage Supply Chain
Freight and miscellaneous expenses 814,067.82 1,291,498.45
Management Co., Ltd.
Yibin Push Linko Technology Co., Ltd. Maintenance cost 492,248.77 1,607,648.75
Chengdu Wu Liang Ye Grand Hotel Co.,
Publicity expense, etc. 5,406,017.06
Ltd.
Sub-total of other fragmentary services
1,873,704.46 1,835,708.73
received
Total services received 602,987,571.94 579,737,365.14
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
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 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 Packaging 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
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 Sichuan Sacred Mountain Molin Group Co., Ltd.
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
191
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Unit: RMB Yuan
Content of related Amount in current Amount in previous
Related parties
transaction period period
Yibin Wuliangye Group I&E Co., Ltd. Liquor products 407,232,474.70 652,880,429.95
Sichuan Yibin Wuliangye Group Health Wine Co.,
Liquor products 213,211,849.44 565,230.53
Ltd.
Sichuan Putian Packaging Co., Ltd. Bottle caps, slices, etc. 153,174,504.82 191,905,219.10
Raw materials such as
Sichuan Yibin Global Group Co., Ltd. 130,352,494.03 28,853,048.01
glass bottles
Sichuan Yibin Global Group Tianwo Trade Co., Glass bottles, paper
118,674,546.31 57,930,524.81
Ltd. products, etc.
Sichuan Shengshan Hexu Import & Export
Raw materials 112,926,805.75
Trading Co., Ltd.
Sichuan Yibin Global Group Tianwo Trade Co.,
Liquor products 57,245,624.77
Ltd.
Chengdu PUTH Medical Plastics Packaging Co., Slices, coiled materials,
42,967,678.11 51,564,215.88
Ltd. etc.
Sichuan Nongwu E-commerce Co., Ltd. Liquor products 38,503,865.67
Chengdu Huayu Glass Manufacturing Co., Ltd. Cartons, glass bottles, etc. 37,630,157.13 14,907,215.21
Sichuan Yibin Push Auto Parts Co., Ltd. Raw materials, etc. 36,330,151.38 75,061,728.49
Sichuan Yibin Wuliangye Group Ecological
Liquor products 33,776,653.50 16,286,898.80
Brewery and Marketing Co., Ltd.
Sichuan Sacred Mountain Molin Group Co., Ltd. Liquor products, etc. 29,055,333.51
Sichuan Yibin Push Building Materials Co., Ltd. Slices, etc. 26,499,939.82 15,991,958.85
Sichuan Wuliangye Health Wine Marketing Co.,
Liquor products 23,826,649.58
Ltd.
Sichuan Yibin Push Group Co., Ltd. Plastic products 22,824,155.97 57,559.00
Sichuan Yibin Push Drive Co., Ltd. Slices, etc. 21,130,299.93 22,399,640.97
Yibin Jinlong Trade Development Corporation Liquor products 15,970,781.04 7,870,256.50
Chengdu Global Special-Glass Manufacture Co.,
Glass bottle 14,478,940.60
Ltd.
Yibin Global Photoelectric Energy Conservation
Industrial paperboard 11,489,368.64
Technology Co., Ltd.
Sichuan Yibin Licai Group Co., Ltd. Liquor products 11,197,235.86
Sichuan Sacred Mountain Hechang Clothing Co.,
Plastic products 9,824,941.11 18,004,711.29
Ltd.
Sichuan Yibin Wuliangye Group Health Wine Co.,
Raw materials 7,883,585.47
Ltd.
Sichuan Linhu Tea Co., Ltd. Sundries, etc. 6,469,645.74 477,876.11
Sinopharm Group Yibin Medicine Co., Ltd. Liquor products 5,559,104.88 526,341.62
Sichuan Shuzhan New Materials Co., Ltd. Hang tags, labels, etc. 5,525,892.62 7,907,456.49
Sichuan Yibin Wuliangye Group Ecological
Packing materials 4,461,608.28 3,713,386.76
Brewery and Marketing Co., Ltd.
Yibin Jinlong Trade Development Corporation Mixed grains, DDGS 3,807,071.70 4,004,260.39
Sichuan Yibin Global Group Tianwo Trade Co., Industrial sodium 3,319,168.46 37,516,574.09
192
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Ltd. carbonate
Yibin Jiamei Intelligent Packaging Co., Ltd. Paper products, etc. 2,131,541.87
Sichuan Push Acetati Company Limited Raw materials, etc. 1,466,710.69 125,985.74
Sichuan Tyre Rubber (Group) Co., Ltd. Liquor products 1,465,486.72 7,964.60
Wuming Tea Industry Holding Co., Ltd. Liquor products 1,350,529.39 632,792.69
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. Liquor products 1,081,555.75 27,523,335.87
Sichuan Nongwu E-commerce Co., Ltd. Sundries 1,020,744.06
Sichuan Linhu Tea Co., Ltd. Liquor products 725,872.57 1,811,362.84
Push Information & Automation (Chengdu) Co., Bottle caps, glass bottles,
33,466.05 1,073,093.87
Ltd. etc.
Yibin Jinlong Trade Development Corporation Lactic acid 47,502,991.20
Sichuan Yibin Global Group Tianwo Trade Co.,
Slices 28,286,548.75
Ltd.
Yibin Huanyu Trade Co. Ltd. Liquor products 6,626,332.05
Sichuan Yibin Global Group Tianwo Trade Co.,
Coal 5,387,532.19
Ltd.
Yibin Leitian Agricultural Development Co., Ltd. Liquor products 1,015,752.21
Other fragmentary sales 10,409,576.82 8,628,662.43
Total 1,625,036,012.74 1,337,046,887.29
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
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
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Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 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 8: 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 9: On January 22, 2018, the Company and Sichuan Putian Packaging 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.
(2) Related-party lease
The Company as the lessor:
Unit: RMB Yuan
Lease revenue recognized Lease revenue recognized
Name of lessee Type of leased assets
in current period in previous period
Sichuan Anji Logistic Group Co., Ltd. Buildings 838,157.18 169,268.48
Sichuan Yibin Push Building Materials
Warehouse 663,267.96 663,267.96
Co., Ltd.
Chengdu PUTH Medical Plastics
Equipment 501,015.52 814,150.22
Packaging Co., Ltd.
Sichuan Yibin Global Group Tianwo
Buildings 384,171.44 375,599.99
Trade Co., Ltd.
Yibin Global Photoelectric Energy
Buildings 226,285.72 226,285.72
Conservation Technology Co., Ltd.
Houses and
Sichuan Putian Packaging Co., Ltd. 125,044.55 303,326.53
warehouses
Chengdu Huayu Glass Manufacturing
Buildings 5,528.57
Co., Ltd.
194
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Sichuan Yibin Push Intelligent
Buildings 57,142.84 57,142.86
Technology Co., Ltd.
Sichuan Putian Packaging Co., Ltd. Equipment 52,907.76
Sichuan Yibin Push Intelligent
Buildings 28,436.65
Technology Co., Ltd.
The Company as the lessee:
Unit: RMB Yuan
Rents recognized in Rents recognized in previous
Name of lessor Type of leased assets
current period period
Sichuan Yibin Wuliangye Group Co., Ltd. Land (Note 1) 296,558,180.00 296,558,180.00
Sichuan Anji Logistic Group Co., Ltd. Warehouse 44,837,768.19 39,453,231.04
Operation and
Sichuan Yibin Wuliangye Group Co., Ltd. management areas 29,605,028.57 29,822,513.62
(Note 2)
Sichuan Yibin Licai Group Co., Ltd. Buildings (Note 3) 15,512,748.60 15,512,748.60
Operation and
Sichuan Yibin Push Group Co., Ltd. management areas 6,715,238.10 6,715,238.10
(Note 4)
Yibin Push Assets Management Co., Ltd. Warehouse 5,606,413.94 2,941,500.95
Yibin Global Photoelectric Energy
Warehouse 4,440,887.72 3,349,628.67
Conservation Technology Co., Ltd.
Chengdu Huayu Glass Manufacturing
Equipment 4,225,181.48 4,289,229.22
Co., Ltd.
Sichuan Yibin Global Group Co., Ltd. Warehouse 2,989,811.34 2,989,811.34
Sichuan Yibin Push Group Co., Ltd. Warehouse 2,486,852.84 1,865,139.63
Sichuan Andaxin Logistic Co., Ltd. Warehouse 2,530,894.04 2,867,086.53
Warehouses and
Yibin Push Linko Technology Co., Ltd. 2,325,929.91 2,345,358.51
houses
Yibin Push Linko Technology Co., Ltd. Equipment 1,459,428.57 768,000.00
Sichuan Yibin Global Group Tianwo Trade
Warehouse 1,228,525.72 1,228,525.72
Co., Ltd.
Sichuan Yibin Push Auto Parts Co., Ltd. Equipment 130,810.30
Yibin Global Photoelectric Energy
Equipment 43,068.00 1,534,759.71
Conservation Technology Co., Ltd.
Sichuan Ansage Supply Chain
Warehouse 28,301.88 44,719.64
Management Co., Ltd.
Sichuan Yibin Wuliangye Group Anji
Warehouse 111,566.01
Logistic Co., Ltd.
Sichuan Yibin Weilisi Float Glass
Equipment 14,455.75
Manufacturing Co., Ltd.
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
195
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
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 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
1,129.65 744.12
remuneration
(7) Other related transactions
① Procurement of equipment, etc.
Amount in Amount in
Related parties Content of related transaction
current period previous period
Trademark and logo royalties
Sichuan Yibin Wuliangye Group Co., Ltd. 637,338,648.84 577,396,281.55
(Note 1)
Comprehensive service fee
Sichuan Yibin Wuliangye Group Co., Ltd. 91,977,989.83 67,434,207.22
(Note 2)
Purchase of transportation
Yibin Jichi Automobile Sales Service Co., Ltd. 33,458,753.81
equipment
Sichuan Yibin Push Intelligent Technology Co.,
Procurement of equipment 21,837,927.09 15,872,532.05
Ltd.
Push Information & Automation (Chengdu) Co.,
Procurement of equipment 7,404,778.67 474,641.40
Ltd.
Purchase of transportation
Yibin Jitai Automobile Sales & Service Co., Ltd. 2,629,421.85
equipment
Sichuan Zhongke Better Technology Co., Ltd. Procurement of equipment 30,255.00
Purchase of transportation
Sichuan Baiweiyuan Food Co., Ltd. 12,319.16
equipment
Sichuan Yibin Wuliangye Group Pengcheng
Procurement of equipment 5,970.00
Electronics Instrument Co., Ltd.
Yibin Global Energy Conservation Service Co., No.4 Glass Kiln Gas Treatment
3,873,909.03
Ltd. Project
Yibin Push Linko Technology Co., Ltd. Purchase of equipment 764,000.00
Chengdu PUTH Medical Plastics Packaging Co.,
Procurement of equipment 599,660.55
Ltd.
Purchase of transportation
Yibin Ansage Auto Service Co., Ltd. 154,708.16
equipment
196
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Sichuan Yibin Global Group Tianwo Trade Co.,
Procurement of equipment 70,580.50
Ltd.
Yibin Push Assets Management Co., Ltd. Procurement of equipment 255,770.63
Sichuan Yibin Global Group Tianwo Trade Co.,
Selling of equipment 2,767.20
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 April 20, 2020,
respectively. The main contents are loan and deposit services. Daily balance of deposits of the
Company with the Finance Company in 2020 was no more than RMB 32.9 billion, and the daily balance
of loan in 2020 was no more than RMB 5 billion.
The total deposits of the Company with the Finance Company was RMB 28,600,538,878.29 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 787,783,429.35 in total; the Company discounted bank
acceptance bills of RMB 2,797,130,622.00 to the Finance Company and paid discount interest of RMB
37,427,621.94 during the period.
6. Receivables from and payables to related parties
(1) Receivables
Unit: RMB Yuan
Ending balance Beginning balance
Project
Related parties Bad debt Bad debt
name Book balance Book balance
provision provision
Accounts
Sichuan Putian Packaging Co., Ltd. 7,403,902.45 31,324,539.34
receivable
Accounts Sichuan Yibin Global Group Tianwo Trade
1,192,800.00 507,527.52
receivable Co., Ltd.
Accounts
Sichuan Nongwu E-commerce Co., Ltd. 683,951.30
receivable
Accounts
Yibin Paper Industry Co., Ltd. 396,398.81
receivable
Accounts Sichuan Yibin Wuliangye Group Health Wine
319,302.00 319,302.00
receivable Co., Ltd.
Accounts Chengdu Huayu Glass Manufacturing Co., 249,223.49 3,779,810.70
197
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
receivable Ltd.
Accounts
Sichuan Yibin Push Group Co., Ltd. 244,352.00
receivable
Accounts
Yibin Chuanhong Tea Group Co., Ltd. 177,812.00
receivable
Accounts
Sichuan Andaxin Logistic Co., Ltd. 74,136.00
receivable
Accounts
Sichuan Yibin Push Auto Parts Co., Ltd. 56,300.73
receivable
Accounts Sichuan Yibin Push Intelligent Technology
18,069.72
receivable Co., Ltd.
Accounts Sichuan Yibin Wuliangye Group Ecological
9,512,479.81
receivable Brewery and Marketing Co., Ltd.
Accounts Chengdu PUTH Medical Plastics Packaging
8,420,650.88
receivable Co., Ltd.
Accounts Push Information & Automation (Chengdu)
709,868.22
receivable Co., Ltd.
Prepayment Yibin Push Linko Technology Co., Ltd. 19,944,767.12
Prepayment Wuming Tea Industry Holding Co., Ltd. 6,160,000.00
Sichuan Sacred Mountain Molin Group Co.,
Prepayment 4,006,415.93 8,283,185.84
Ltd.
Chengdu PUTH Medical Plastics Packaging
Prepayment 1,327,100.00
Co., Ltd.
Prepayment Sichuan Anji Logistic Group Co., Ltd. 827,429.00 997,853.00
Prepayment Yibin Ansage Auto Service Co., Ltd. 273,193.61 9,300.18
Yibin Ansage Auto Service Co., Ltd.
Prepayment 200,000.00
Chhengdu Branch
Push Information & Automation (Chengdu)
Prepayment 12,810.00
Co., Ltd.
Prepayment Sichuan Yibin Push Drive Co., Ltd. 1,884,151.79
Sichuan Yibin Push Intelligent Technology
Prepayment 314,700.00
Co., Ltd.
Cash and
Sichuan Yibin Wuliangye Group Finance Co.,
cash 476,552,144.13 531,981,058.33
Ltd.
equivalents
Other Sichuan Yibin Wuliangye Group Health Wine
460,000.00 480,000.00
receivables Co., Ltd.
Other
Sichuan Putian Packaging Co., Ltd. 288,252.45 250,000.00
receivables
Other Chengdu Huayu Glass Manufacturing Co.,
200,000.00 200,000.00
receivables Ltd.
Other
Yibin Wuliangye Ecological Brewing Co., Ltd. 122,727.27 122,727.27
receivables
Other
Sichuan Anji Logistic Group Co., Ltd. 100,000.00 450,000.00
receivables
Other
Sichuan Linhu Tea Co., Ltd. 80,000.00 50,000.00
receivables
Other
Sichuan Shuzhan New Materials Co., Ltd. 32,000.00 70,000.00
receivables
Other Sichuan Ansage Supply Chain Management
10,000.00
receivables Co., Ltd.
Other
Sichuan Yibin Push Drive Co., Ltd. 7,016.11
receivables
Remarks: The amount related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. in this table represents the
198
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
interest on time deposits accrued on an accrual basis, and the ending balance is presented in the cash and cash
equivalents account.
(2) Payables
Unit: RMB Yuan
Project name Related parties Ending book balance Beginning book balance
Accounts Sichuan Yibin Global Group Tianwo Trade Co.,
3,171,085.68 30,066.98
payable Ltd.
Accounts
Sichuan Yibin Wuliangye Group Co., Ltd. 7,634,607.30
payable
Accounts
Sichuan Yibin Push Drive Co., Ltd. 1,253,105.19
payable
Accounts
Chengdu Huayu Glass Manufacturing Co., Ltd. 778,630.05
payable
Accounts Yibin Global Energy Conservation Service Co.,
649,772.10
payable Ltd.
Accounts Sichuan Yibin Wuliangye Group Anji Logistic
354,013.71 414,303.16
payable Co., Ltd.
Accounts Sichuan Yibin Push Intelligent Technology Co.,
243,745.46 235,712.98
payable Ltd.
Accounts Chengdu Ningjiang Machine Tool Sales Co.,
180,000.00 180,000.00
payable Ltd.
Accounts Sichuan Ansage Supply Chain Management
116,615.11 334,704.03
payable Co., Ltd.
Accounts
Sichuan Shuzhan New Materials Co., Ltd. 110,000.00
payable
Accounts
Sichuan Putian Packaging Co., Ltd. 37,096.80 111,293.30
payable
Accounts
Sichuan Yibin Push Group Co., Ltd. 14,475,469.14
payable
Accounts Chengdu PUTH Medical Plastics Packaging
1,170,859.61
payable Co., Ltd.
Accounts
Sichuan Anji Logistic Group Co., Ltd. 292,692.00
payable
Accounts
Sichuan Andaxin Logistic Co., Ltd. 182,250.00
payable
Accounts Push Information & Automation (Chengdu) Co.,
55,058.40
payable Ltd.
Accounts
received in Sichuan Yibin Push Building Materials Co., Ltd. 4,942,728.12
advance
Accounts
received in Yibin Wuliangye Ecological Brewing Co., Ltd. 736,363.64
advance
Accounts
received in Yibin Development Holding Group Co., Ltd. 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
Transportation Co., Ltd.
advance
Accounts Sichuan Yibin Push Group Co., Ltd. 96,012.00
199
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
received in
advance
Accounts
received in Yibin Wuliangye Group I&E Co., Ltd. 83,711.24
advance
Accounts
received in Sichuan Putian Packaging Co., Ltd. 82,640.00
advance
Accounts
Sichuan Yibin Wuliangye Group Ecological
received in 66,440.00
Brewery and Marketing Co., Ltd.
advance
Accounts
Sichuan Yibin Global Group Tianwo Trade Co.,
received in 6,000.00
Ltd.
advance
Contract
Sichuan Nongwu E-commerce Co., Ltd. 26,075,394.69
liability
Contract
Sichuan Push Acetati Company Limited 17,650,236.39
liability
Contract
Sinopharm Group Yibin Medicine Co., Ltd. 9,255,292.04
liability
Contract
Sichuan Yibin Push Group Co., Ltd. 7,484,749.18
liability
Contract
Sichuan Shuzhan New Materials Co., Ltd. 1,427,964.60
liability
Contract
Sichuan Tyre Rubber (Group) Co., Ltd. 958,672.57
liability
Contract Sichuan Yibin Wuliangye Group Health Wine
788,720.35
liability Co., Ltd.
Contract
Yibin Wuliangye Ecological Brewing Co., Ltd. 675,562.97
liability
Contract Sichuan Sacred Mountain Molin Group Co.,
663,844.25
liability Ltd.
Contract
Yibin Development Holding Group Co., Ltd. 388,495.58
liability
Contract
Sichuan Putian Packaging Co., Ltd. 271,880.99
liability
Contract Push Information & Automation (Chengdu) Co.,
227,101.77
liability Ltd.
Contract Yibin Anji Logistic Group Shenzhou
184,290.39
liability Transportation Co., Ltd.
Contract Sichuan Yibin Wuliangye Group Ecological
58,796.46
liability Brewery and Marketing Co., Ltd.
Contract
Yibin Wuliangye Group I&E Co., Ltd. 34,487.42
liability
Contract
Sichuan Anji Logistic Group Co., Ltd. 25,909.85
liability
Notes payable Yibin Jiamei Intelligent Packaging Co., Ltd. 7,500,000.00
Notes payable Sichuan Yibin Licai Group Co., Ltd. 3,900,000.00
Notes payable Wuming Tea Industry Holding Co., Ltd. 909,196.00 320,000.00
Notes payable Sichuan Anji Logistic Group Co., Ltd. 447,351.78
Sichuan Ansage Supply Chain Management
Notes payable 280,000.00
Co., Ltd.
Dividend
Sichuan Yibin Wuliangye Group Co., Ltd. 37,918,093.23
payable
Other Sichuan Yibin Wuliangye Group Co., Ltd. 136,248,128.58
200
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
payables
Other Sichuan Yibin Push Intelligent Technology Co.,
2,638,791.93 2,920,492.15
payables Ltd.
Other
Sichuan Putian Packaging Co., Ltd. 1,956,478.00 1,976,478.00
payables
Other Push Information & Automation (Chengdu) Co.,
1,115,990.00
payables Ltd.
Other
Sichuan Anji Logistic Group Co., Ltd. 430,000.00 673,087.45
payables
Other
Yibin Push Assets Management Co., Ltd. 353,516.00
payables
Other
Yibin Push Linko Technology Co., Ltd. 342,271.35 528,426.44
payables
Other Sichuan Yibin Wuliangye Group Anji Logistic
137,790.43 137,790.43
payables Co., Ltd.
Other
Sinopharm Group Yibin Medicine Co., Ltd. 102,200.00
payables
Other Sichuan Yibin Global Group Tianwo Trade Co.,
70,000.00 70,000.00
payables Ltd.
Other
Sichuan Yibin Push Building Materials Co., Ltd. 50,000.00 55,000.00
payables
Other
Yibin Development Holding Group Co., Ltd. 50,000.00 50,000.00
payables
Other
Sichuan Linhu Tea Co., Ltd. 50,000.00 50,000.00
payables
Other
Yibin Jiamei Intelligent Packaging Co., Ltd. 50,000.00
payables
Other
Yibin Ansage International Logistic Co., Ltd. 681,184.30 36,586.85
payables
Other Sichuan Sacred Mountain Molin Group Co.,
9,156.80 16,610.00
payables Ltd.
Other Yibin Global Photoelectric Energy Conservation
5,040.84 110,569.94
payables Technology Co., Ltd.
Other
Yibin Shengdi Trade Co. Ltd. 5,000.00 5,000.00
payables
Other
Sichuan Yibin Push Group Co., Ltd. 4,794.00
payables
Other
Sichuan Shuzhan New Materials Co., Ltd. 3,000.00 3,000.00
payables
Other Sichuan Ansage Supply Chain Management
2,036.28 2,036.28
payables Co., Ltd.
Other Chengdu PUTH Medical Plastics Packaging
357,761.64
payables Co., Ltd.
Other
Yibin Ansage Auto Service Co., Ltd. 25,000.00
payables
Other
Chengdu Sacred Mountain Clothing Company 13,421.80
payables
Other Chengdu Ningjiang Machine Tool Sales Co.,
10,000.00
payables Ltd.
XII. Commitments and contingencies
1. Significant commitments
The Company had no significant commitments which need to be disclosed during the reporting
period.
201
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
2. Contingencies
The Company had no significant contingencies which need to be disclosed during the reporting
period.
XIII. 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 87th meeting of the 5th board of directors of the Company held on April 25, 2021,
the profit distribution plan of 2020 is: RMB 25.8 (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.
XIV. 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.
XV. Notes to important items of parent company's financial statements
1. Other receivables
Unit: RMB Yuan
Item Ending balance Beginning balance
Interest receivable 570,078,014.35
Dividends receivable 734,729,782.94 654,791,389.27
Other receivables 6,331,395,342.48 8,901,837,449.41
Total 7,066,125,125.42 10,126,706,853.03
(1) Interest receivable
1) Classification of interest receivable
202
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Unit: RMB Yuan
Item Ending balance Beginning balance
Interest of fixed term deposit 570,078,014.35
Total 570,078,014.35
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB Yuan
Item (or invested company) Ending balance Beginning balance
Dividends receivable from subsidiaries 734,729,782.94 654,791,389.27
Total 734,729,782.94 654,791,389.27
2) Provision for bad debt
□ Applicable √ Not applicable
(3) Other receivables
1) Other receivables classified by nature
Unit: RMB Yuan
Nature of receivable Ending book balance Beginning book balance
Current account 6,327,394,369.95 8,892,421,547.89
Deposit 5,000,000.00 10,000,000.00
Reserve fund 4,862.65 76,201.29
Total 6,332,399,232.60 8,902,497,749.18
2) Provision for bad debt
Unit: RMB Yuan
Stage 1 Stage 2 Stage 3
Bad debt provision Expected credit Expected credit loss for Expected credit loss for Total
losses over the the entire duration (no the entire duration (credit
coming 12 months credit impairment) impairment has occurred)
Balance on January 1, 2020 660,299.77 660,299.77
Balance on January 1, 2020
—— —— —— ——
in current period
Provisions in current period 343,590.35 343,590.35
Balance on December 31,
1,003,890.12 1,003,890.12
2020
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB Yuan
Aging Book balance
Within 1 year (inclusive) 4,443,114,353.83
1 to 2 years 102,827,810.23
2 to 3 years 126,542,645.67
More than 3 years 1,659,914,422.87
3 to 4 years 104,064,080.50
203
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4 to 5 years 97,947,190.67
More than 5 years 1,457,903,151.70
Total 6,332,399,232.60
3) Provision, recovery or reversal of bad debt provision in current period
Bad debt provision in current period:
Unit: RMB Yuan
Amount of change in current year
Beginning Ending
Category Recovery or Write-
balance Provisions Others balance
reversal off
Other receivables with bad debt provision
by single item
Other receivables with bad debt provision
660,299.77 343,590.35 1,003,890.12
by credit risk combination
Total 660,299.77 343,590.35 1,003,890.12
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 Yuan
Proportion in Ending
Nature of total ending balance of
Unit name Ending balance Aging
receivables balance of other bad debt
receivables provision
Sichuan Yibin Wuliangye Winery Co.,
Current account 4,292,273,603.88 Within 1 year 67.78%
Ltd.
1-5 years; More
Yibin Jiangjiu Liquor Co., Ltd. Current account 1,690,768,940.40 26.70%
than 5 years
Sichuan Yibin Wuliangye 3-4 years; More
Current account 202,145,547.62 3.19%
Environmental Protection Co., Ltd. than 5 years
Yibin Wuliangye Xianlin Ecological
Current account 129,206,278.05 More than 5 years 2.04%
Liquor Co., Ltd.
Wuliangye Dashijie (Beijing) Trade 1-5 years; More
Current account 13,000,000.00 0.21%
Co., Ltd. than 5 years
Total -- 6,327,394,369.95 -- 99.92%
2. Long-term equity investment
Unit: RMB Yuan
Ending balance Beginning balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Investment in
11,476,902,138.11 11,476,902,138.11 9,597,846,998.20 9,597,846,998.20
subsidiaries
Investment in
associates and 1,838,516,357.72 1,838,516,357.72 1,011,936,626.41 1,011,936,626.41
joint-ventures
Total 13,315,418,495.83 13,315,418,495.83 10,609,783,624.61 10,609,783,624.61
204
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(1) Investment in subsidiaries
Unit: RMB Yuan
Increase/decrease in the current period
Ending balance
Beginning balance (book Ending balance (book
Invested company Accrual of of provision for
value) Reduced value)
Additional investment impairment Others impairment
investment
provision
Sichuan Yibin Wuliangye Winery Co., Ltd. 3,375,729,567.45 1,694,055,139.91 5,069,784,707.36
Yibin Wuliangye Liquor Sales Co., Ltd. 190,000,000.00 190,000,000.00
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. 765,756,006.41 765,756,006.41
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00 50,000,000.00
Sichuan Yibin Wuliangye Environmental Protection Co., Ltd. 18,870,000.00 18,870,000.00
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 Limited 3,443,149,609.25 3,443,149,609.25
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. 108,922,175.18 108,922,175.18
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. 307,282,551.14 307,282,551.14
Sichuan Yibin Push Group 3D Co., Ltd. 240,419,229.32 240,419,229.32
Sichuan Yibin Wuliangye Investment (Consulting) Co.,Ltd. 47,500,000.00 47,500,000.00
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 Co., Ltd. 40,000,000.00 40,000,000.00
Yibin Wuliangye Creart Co., Ltd. 45,000,000.00 45,000,000.00
205
Wuliangye Yibin Co., Ltd. Annual Report 2020 (Full Text)
Wuliang NongXiang Series Baijiu Yibin Co., Ltd. 95,000,000.00 95,000,000.00
Sichuan Wuliangye New Retail Management Co., Ltd. 90,000,000.00 90,000,000.00
Total 9,597,846,998.20 1,879,055,139.91 11,476,902,138.11
(2) Investment in associates and joint-ventures
Unit: RMB Yuan
Increase/decrease in the current period
Ending
Beginning balance Ending balance balance of
Investor Profit and loss on Adjustment of other Changes in Declaration of Accrual of
(Book value) Reduced (Book value) provision for
Additional investment investments recognized comprehensive other cash dividends impairment Others
investment impairment
with equity method income equities or profits provision
I. joint ventures
II. Associates
Oriental Outlook Media Co.,
17,078,139.66 4,043,275.64 21,121,415.30
Ltd.
Sichuan Yibin Wuliangye
994,858,486.75 734,693,877.55 87,842,578.12 1,817,394,942.42
Group Finance Co., Ltd.
Sub-total 1,011,936,626.41 734,693,877.55 91,885,853.76 1,838,516,357.72
Total 1,011,936,626.41 734,693,877.55 91,885,853.76 1,838,516,357.72
3. Operating revenue and operating cost
Unit: RMB Yuan
Amount in current period Amount in previous period
Item
Revenue Cost Revenue Cost
Other businesses 40,800.00 557,807.81
Total 40,800.00 557,807.81
4. Investment income
Unit: RMB Yuan
206
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Item Amount in current period Amount in previous period
Long-term equity investment income accounted by cost
15,244,089,045.16 11,886,940,965.04
method
Long-term equity investment income accounted by equity
91,885,853.76 92,458,647.87
method
Total 15,335,974,898.92 11,979,399,612.91
207
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XVI. Supplementary information
1. Statement of current non-recurring profit and loss
√ Applicable □ Not applicable
Unit: RMB Yuan
Item Amount Note
Gain or loss on disposal of non-current assets -5,064,647.92
Governmental subsidy recorded in current
profit/loss (except those government subsidies,
which are closely related to the business of a 100,407,690.85
company and enjoyed in accordance with a certain
standard quota or quantity of the state)
Fund occupation fee collected from non-financial
2,602,571.31
enterprises and recorded in current profit/loss
Other non-operating revenue and expenditure
-141,782,777.02
except for the aforementioned items
Less: Impact on income tax -15,373,976.81
Impact on minority equity 11,671,148.66
Total -40,134,334.63 --
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.
□ Applicable √ Not applicable
2. Net return on equity and earnings per share
Weighted Earnings per share
average
Profit of the reporting period Basic earnings per Diluted earnings per
return on
share (RMB/share) share (RMB/share)
equity
Net profit attributable to ordinary shareholders of the
24.94% 5.141 5.141
Company
Net profit attributable to ordinary shareholders of the
24.99% 5.151 5.151
Company 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
(3) Reasons for differences in accounting data under the Foreign Accounting Standards and
Chinese Accounting Standards, and where discrepancy adjustment is made to the data that
has been audited by an overseas audit institution, the name of the overseas institution shall
be indicated
208
Wuliangye Yibin Co., Ltd. Annual Report 2020 (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, 2021
209
