Wuliangye Yibin Co., Ltd.
Annual Report 2021
Chairman of the Board: Zeng Congqin
29 April 2022
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Table of Contents
Part I Important Notes and Definitions ........................................................................................... 3
Part II Corporate Information and Key Financial Information ................................................... 5
Part III Management Discussion and Analysis ............................................................................... 9
Part IV Corporate Governance ...................................................................................................... 34
Part V Environmental and Social Responsibility .......................................................................... 56
Part VI Significant Events ............................................................................................................... 63
Part VII Share Changes and Shareholder Information ............................................................... 69
Part VIII Preference Shares ............................................................................................................ 77
Part IX Bonds ................................................................................................................................... 77
Part X Financial Statements ........................................................................................................... 78
Part XI Documents Available for Reference ................................................................................ 198
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part I Important Notes and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Wuliangye Yibin Co., Ltd. (hereinafter referred to as the
“Company”) hereby guarantee that the contents of this Report are true, accurate and complete and
free of any misrepresentations, misleading statements or material omissions, and collectively and
individually accept legal responsibility for such contents.
2. Zeng Congqin, the Company’s legal representative, Luo Wei, the Company’s Chief
Financial Officer, and Liu Hongxu, head of the Company’s accounting department, hereby
guarantee that the financial statements carried in this Report are true, accurate and complete.
3. Eight directors were supposed to attend the board meeting for the review of this Report.
Seven of them were present at the meeting in person while Independent Director Xie Zhihua voted
by way of telecommunication for he was not able to be present due to travel restrictions caused by
the COVID-19 pandemic.
4. Any future plans, development strategies and other forward-looking statements mentioned in
this Report shall not be considered as promises to investors for the reason of their uncertainty.
Investors are kindly advised to invest wisely. The Company has disclosed in this Report the possible
risks. And investors are reminded to exercise caution when making investment decisions.
5. The Board of Directors has approved a final cash dividend of RMB30.23 (tax inclusive) per
10 shares to shareholders based on the total 3,881,608,005 shares held by them, with the total
amount to be distributed reaching RMB11.734 billion.
6. This Report has been prepared in Chinese and translated into English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Definitions
Term refers to Definitions
The “Company”, “Wuliangye”,
refers to Wuliangye Yibin Co., Ltd.
“WLY”, or “we”
The State-owned Assets Supervision and
SASAC Yibin refers to Administration Commission of the People’s Government
of Yibin City
Yibin Development Group refers to Yibin Development Holding Group Co., Ltd.
Wuliangye Group, Wuliangye Group refers to Sichuan Yibin Wuliangye Group Co., Ltd.
Push Group refers to Sichuan Yibin Push Group Co., Ltd.
Global Group refers to Sichuan Yibin Global Group Co., Ltd.
Anji Logistic Group refers to Anji Logistic Group Co., Ltd. Sichuan
Wuliangye Group Finance refers to Sichuan Yibin Wuliangye Group Finance Co., Ltd.
Wuliangye Group I&E refers to Yibin Wuliangye Group I&E Co., Ltd.
Creart refers to Yibin Wuliangye Creart Co., Ltd.
Wuliangye New Retail refers to Sichuan Wuliangye New Retail Management Co., Ltd.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Wuliangye Stock code 000858
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 宜宾五粮液股份有限公司
Abbr. 五粮液
Company name in English (if
WULIANGYE YIBIN CO.,LTD.
any)
Abbr. (if any) WLY
Legal representative Zeng Congqin
Registered address 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China
Zip code 644007
Past changes of registered
N/A
address
Office address 150 Minjiang West Road, Cuiping District, Yibin City, Sichuan Province, China
Zip code 644007
Company website http://www.wuliangye.com.cn
Email address 000858-wly@sohu.com
II Contact Information
Board Secretary Securities Representative
Name Jiang Lin Xiao Xiangfa, and Li Xinyi
150 Minjiang West Road, Cuiping District, 150 Minjiang West Road, Cuiping District,
Office address
Yibin City, Sichuan Province, China Yibin City, Sichuan Province, China
Tel. （0831）3567000, 3566938, 3567988 （0831）3567000, 3566938, 3567988
Fax （0831）3555958 （0831）3555958
Email address 000858-wly@sohu.com 000858-wly@sohu.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report
The website of the Shenzhen Stock Exchange (www.szse.cn)
is disclosed
Media and website where this Report is China Securities Journal, Shanghai Securities News, Securities Times, and
disclosed http://www.cninfo.com.cn
Place where this Report is lodged The Company’s Board Office
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
IV Change to Company Registered Information
Organization code 91511500MA62A0WM8P
Changes to the principal activities of the Company
No change during the Reporting Period
since its listing (if any)
Every change of controlling shareholder since
No change during the Reporting Period
incorporation (if any)
V Other Information
The independent auditor appointed by the Company:
Name of the independent auditor Sichuan Huaxin (Group) CPA (LLP)
Office address 28/F, South Jinmaolidu, 18 Ximianqiao Street, Chengdu City, Sichuan Province, China
Accountants writing signatures Li Wulin, Luo Guiqiu, and Ye Juan
The independent sponsor appointed by the Company to exercise constant supervision over the Company in
the Reporting Period:
√ Applicable □ Not applicable
Name of sponsor Office address Representative Supervision period
Guotai Junan Securities Co., 618 Shangcheng Road, China
Cai Hu, and Kang Xin 1 January 2021-31 December 2021
Ltd. (Shanghai) Pilot Free Trade Zone
The independent financial advisor appointed by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2021-over-2020
2021 2020 2019
change (%)
Operating revenue (RMB) 66,209,053,612.11 57,321,059,453.15 15.51% 50,118,105,877.14
Net profit attributable to the listed
23,377,074,353.40 19,954,809,594.52 17.15% 17,402,164,190.16
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 23,327,729,257.82 19,994,943,929.15 16.67% 17,405,930,787.45
exceptional gains and losses (RMB)
Net cash generated from/used in
26,774,941,873.05 14,698,327,593.21 82.16% (note) 23,112,072,040.66
operating activities (RMB)
Basic earnings per share (RMB/share) 6.023 5.141 17.16% 4.483
Diluted earnings per share
6.023 5.141 17.16% 4.483
(RMB/share)
Weighted average return on equity Up by 0.36 percenta
25.30% 24.94% 25.26%
(%) ge point
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Change of 31
December 2021 over
31 December 2021 31 December 2020 31 December 2019
31 December 2020
(%)
Total assets (RMB) 135,620,812,221.13 113,893,139,013.72 19.08% 106,396,972,333.66
Equity attributable to the listed
99,068,498,346.24 85,705,972,645.74 15.59% 74,290,700,662.22
company’s shareholders (RMB)
Note: The increased cash generated from operating activities was primarily driven by the low base of
proceeds from sale of goods and rendering of services last year due to the COVID-19 pandemic, as well as the
increased operating revenue, cash inflows from due bank acceptance notes, etc. in the current year.
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years, and the latest independent auditor’s
report indicated that there was uncertainty about the Company’s ability to continue as a going concern.
□ Yes √ No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative.
□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 24,324,839,644.81 12,426,708,181.89 12,969,249,482.03 16,488,256,303.38
Net profit attributable to the listed
9,323,613,990.16 3,876,757,756.57 4,127,069,251.93 6,049,633,354.74
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 9,318,357,623.15 3,815,315,666.22 4,151,926,942.25 6,042,129,026.20
exceptional gains and losses
Net cash generated from/used in
5,505,475,102.10 3,202,012,880.71 6,690,405,836.65 11,377,048,053.59
operating activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially
from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2021 2020 2019 Note
Gain or loss on disposal of non-current assets
-23,622,995.51 -5,064,647.92 -1,571,612.06
(inclusive of impairment allowance write-offs)
Government grants through profit or loss (exclusive
of government grants consistently given in the
Company’s ordinary course of business at fixed 184,126,377.62 100,407,690.85 129,760,347.41
quotas or amounts as per governmental policies or
standards)
Capital occupation charges on non-financial
2,144,596.61 2,602,571.31 15,503,633.45
enterprises that are recognized in profit or loss
Non-operating income and expense other than the
-80,306,712.64 -141,782,777.02 -135,436,782.11
above
Less: Income tax effects 21,010,672.65 -15,373,976.81 -4,831,273.10
Non-controlling interests effects (net of tax) 11,985,497.85 11,671,148.66 16,853,457.08
Total 49,345,095.58 -40,134,334.63 -3,766,597.29 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
In 2021, the downward pressure mounted on economies at home and abroad. The Baijiu industry saw a
year-on-year decline in output but a steady growth in revenue. According to data from the National Bureau of
Statistics, the output of Baijiu stood at 7.1563 million kiloliters during 2021, down 0.59% year on year, while the
revenue amounted to RMB603.3 billion, up 18.6% year on year. The industry has become more concentrated
towards top producers, strong brands and major producing areas. Therefore, competitive edges of top Baijiu
producers have been further strengthened.
II Principal Operations of the Company during the Reporting Period
(I) Overview
The Company is principally engaged in Baijiu production and sales. According to the Guidelines for the
Industry Classification of Listed Companies issued by the China Securities Regulatory Commission, the Baijiu
industry falls into the category of the "liquor & wine, beverage, and refined tea production industry" (C15). No
change occurred to the principal operations of the Company during the Reporting Period. "Wuliangye", the
primary product of the Company, is a classic strong-flavor Chinese Baijiu. Additionally, the Company has
developed, based on different production techniques, other Baijiu series such as Wuliang Chun (Spring), Wuliang
Chun (Rich Flavor), Wuliang Tequ, and Jianzhuang with complete categories and unique tastes to meet the
diverse needs of different consumers.
(II) Brand Operation
1. Wuliangye-branded Baijiu Products
In 2021, the Company adhered to the principle of "focusing on high-quality market share growth",
encouraged bold exploration and innovation, drove steady progress on key work and continuously consolidated
the market foundations. Firstly, brand stories continued to be enriched and the brand value was constantly
highlighted. Through all-round and three-dimensional brand culture communication, the brand value saw
noticeable increases in rankings in several authoritative lists. Secondly, the product strategy was continuously
strengthened and the competitive status continued to be raised. Classic Wuliangye had completed the supplier
selection and preliminary trial sales in highland markets and key markets and entered the stage of comprehensive
market arrangement and formal sales, further improving Wuliangye's brand value and competitive status in the
industry. Thirdly, channel operations were continuously transformed and the sales quality continued to be
improved. After completing the retail infrastructure construction, the Company began to hand over the retail work
to merchants in all aspects and entered the stage of refined terminal operation management with the merchants as
the main body and the manufactures the cooperators. Fourthly, the cultivation of consumption continued to be
advanced and the group purchase system was continuously improved. The Company continuously improved the
form and content of tasting sessions, continued to strengthen the group cultivation of opinion leaders and worked
hard to build "group purchase" into a benchmark of marketing in the industry.
2. Other Baijiu Series
In 2021, other Baijiu series adhered to the strategies of "three characteristics and one recognition", "three
focuses" and "building four national brands" and broke new ground in various tasks. Firstly, the quality of
operation continued to be improved and the sales revenue achieved stable growth. Secondly, the rejuvenation of
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
brand value was accelerated. The brand structure was significantly optimized, the brand matrix was continuously
improved and the brand image was greatly enhanced. Thirdly, the market foundations were continuously
consolidated. The structure of merchants was continuously optimized. The community of gains of manufacturers
was established effectively. The core terminal building achieved noticeable achievements. Teams exclusive to
distributors were continuously expanded. The support for channels was further strengthened. Fourthly,
market-driven sell-through growth was more sustainable. Digital marketing based on "one code per bottle"
achieved new breakthroughs. The volume of code scanning for opening bottles continued to grow and the market
share rose steadily.
(III) Major Sales Models of the Company
Distributor model: This includes the traditional channel operator model, exclusive store model, KA
marketplace, etc., mainly sold offline.
Direct-to-consumer 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
and JD.
(IV) Distributor Model
√ Applicable □ Not applicable
1. Operating Revenues, Costs of Sales and Gross Profit Margins of Different Sales Models and Product
Categories
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Item Operating revenue Cost of sales operating gross profit
margin cost of sales
revenue margin
By sales model
Liquor products 61,731,839,992.96 12,165,790,903.99 80.29% 17.73% 17.63% 0.01%
Of which:
50,136,705,774.85 10,432,852,899.80 79.19% 10.48% 12.68% -0.41%
Distributor model
Direct-to-consumer
11,595,134,218.11 1,732,938,004.19 85.05% 64.37% (Note 1) 59.95% (Note 1) 0.41%
model
By product category
Liquor products 61,731,839,992.96 12,165,790,903.99 80.29% 17.73% 17.63% 0.01%
Of which:
Wuliangye-branded 49,112,013,173.38 7,076,007,335.05 85.59% 11.46% 6.70% 0.64%
Baijiu products
Other Baijiu series 12,619,826,819.58 5,089,783,568.94 59.67% 50.71% (Note 2) 37.16% (Note 3) 3.99%
Note 1: This was mainly due to the fact that in the Reporting Period, the Company strengthened the group
cultivation of consumer opinion leaders and online direct sales, leading to a surge in the sales revenue of the
direct-to-consumer model and a corresponding leap in cost of sales.
Note 2: This was mainly due to the fact that the Company adhered to the "three characteristics and one
recognition" for other Baijiu series, focused on building Wuliang Chun (Spring), Wuliang Chun (Rich Flavor),
Wuliang Tequ and Jianzhuang into the four national strategic brands, coordinated growing brands and total
distribution brands as a strategic synergy, and continuously optimize the brand structure. Both the volume and the
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
price of other Baijiu series increased in the Reporting Period.
Note 3: This was mainly due to the year-on-year increase in the sales revenue of other Baijiu series in the
Reporting Period, leading to the corresponding growth in cost of sales.
2. Number of Distributors
Number of distributors of
Reason for change (more than
Region Wuliangye-branded Baijiu YoY change (number)
30%)
products
East China 562 36
South China 411 11
West China 392 12
North China 276 14
Central China 413 20
N/A
Subtotal 2,054 93
Number of distributors of
Region YoY change (number)
other Baijiu series
China 602 87
Total 2,656 180
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and other Baijiu series.
3. Main Settlement Methods and Distribution Methods of Distributor Customers
A distribution model is mainly used, with a "payment before delivery" settlement method. In the Reporting
Period, the total sales revenue from the top five distributors reached RMB6,058 million, accounting for 9.15% of
the total sales revenue; and at the end of the period, there were no accounts receivable from the top five distributor
customers.
4. Retail Store Sales Accounting for More Than 10% of Total Sales
√ Applicable □ Not applicable
Number of exclusive
Number of exclusive stores at the Reason for change (more than
Region stores at the beginning of
end of the Reporting Period 30%)
the Reporting Period
East China 408 411
South China 268 273
West China 287 291
N/A
North China 214 217
Central China 350 353
Total 1,527 1,545
5. Online Direct-to-consumer Sales
√ Applicable □ Not applicable
Product category Platform
Wuliangye-branded Baijiu products:
The 8th-generation Wuliangye Tmall, JD, and WeChat
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Other Baijiu series:
Wuliang Chun (Spring), Wuliang Chun (Rich Flavor),
Tmall, JD, and WeChat
Wuliang Tequ, and Jianzhuang
Indicate whether any of the major products that accounted for more than 10% of the total operating revenue
in the current period saw a 30% or greater change in its selling price compared to the prior reporting period.
□ Applicable √ Not applicable
(V) Purchase Model and Purchased Items
Unit: RMB
Purchase model Purchased items Amount
Market-based purchase Raw materials and auxiliary materials, etc. 7,056,914,674.20
Market-based purchase Packaging materials 2,240,046,213.03
Market-based purchase Energy 540,742,407.32
Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30% of
the total purchase amount.
□ Applicable √ Not applicable
Indicate whether the price of any of the major raw materials purchased externally changed by more than 30%
year-on-year.
□ Applicable √ Not applicable
(VI) Main Production Models
The Company's Baijiu products are all produced by itself.
Commissioned processing and production:
□ Applicable √ Not applicable
(VII) Output and Inventory
1. Output, Sales Volume and Inventory of Major Products
Output (ton) Sales volume (ton) Inventory (ton)
Product
2021 YoY change 2021 YoY change 2021 YoY change
Wuliangye-branded
28,408 9.46% 29,203 3.78% 1,938 -29.09%
Baijiu products
Other Baijiu series 160,309 20.64% 152,572 15.32% 19,223 67.36% (Note 2)
Total 188,717 18.82% 181,775 13.30% 21,161 48.82% (Note 2)
Notes: 1. The liquor referred to in the table above is all commercial liquor.
2. Due to a considerable growth in sales revenue of other Baijiu series during the Reporting Period,
the Company increased the inventory to meet market demand.
2. Finished Baijiu and Semi-finished Baijiu (Including Base Baijiu)
Category Inventory (ton)
Finished Baijiu 21,161
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Semi-finished Baijiu (including pottery jar base
179,396
Baijiu)
3. Designed, Actual and In-progress Production Capacity of Major Products by Production Entities
Designed production Actual production capacity Production capacity in progress
Major product
capacity (’0,000 tons) (’0,000 tons) (’0,000 tons)
Liquor 14.16 10.60 1.999
Note: The liquor in the table above includes Baijiu and base fruit liquor.
III Core Competitiveness Analysis
The Company has five unique competitive edges, which constitute the traditional core competitiveness of
Wuliangye. Firstly, the unique natural environment makes Wuliangye unique. Secondly, the microbiota of its
unique ancient fermentation pits have been growing continuously since early Ming Dynasty with more than 600
years of history. Thirdly, the high-quality, world-famous Wuliangye is produced with unique five-grain formulas.
Fourthly, it uses unique fermentation and production techniques to create a unique microbial zone within the
Wuliangye Distillery. And finally, the unique harmonious culture of Wuliangye makes it a symbol of Chinese
culture.
In 2021, the Company persisted in improving quality and performance and empowerment focusing on market
needs. Quality support, technological innovation, cultural construction, business ecosystem and team building
were significantly strengthened and market support was improved. Moreover, the Company caught up with the
trend of consumption upgrading, took up-to-date approaches to marketing innovation, and achieved new
breakthroughs in product structure, branding, channel construction, consumption cultivation, digital
transformation, and relationships between distilleries. The Company's market potential was unleashed and its core
competitiveness was continuously enhanced. Moreover, the foundation for the high-quality development of the
Company was further consolidated.
IV Analysis of Principal Operations
1. Overview
2021 marked the opening year of China’s 14th Five-Year Plan for Economic and Social Development and a
key year for the Company's innovation, transformation and leapfrog development. In face of the complex and
challenging macro-environment, under the strong leadership of the provincial and municipal party committees and
governments, the Company based itself in a new stage of development, implemented the new development
philosophy and integrated itself into the new development landscape. It attached more importance to and
strengthened the principal operations, continuously shored up weak spots, developed strengths, and created new
growth drivers. Upholding the principle of "focusing on high-quality market share growth", the Company seized
opportunities arising from the structured growth in the industry, achieved progress while ensuring stability, and
got off to a good start in the 14th Five-Year Plan period. In 2021, the Company achieved operating revenue of
RMB66.209 billion, up 15.51% year on year, and a net profit attributable to its shareholders of RMB23.377
billion, up 17.15% year on year.
(I) Product structure was optimized and product value was improved steadily
Firstly, the Wuliangye-branded product portfolio was continuously improved. The 8th-generation
Wuliangye, a core product, achieved "growth in sales volume with stable selling prices", with a new high recorded
in retail sales and a better balance of sales volume and selling prices. In terms of the vintage Baijiu series, Classic
Wuliangye was launched to the market successfully. Many stylish products such as Wuliangye Year of the Ox
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Commemorative Baijiu, Bu Bu Gao Sheng, and Bo’ao Commemorative Baijiu were also launched. Aged Baijiu
collection and exchanges increased day by day. The quality and charm of aged Baijiu was recognized
continuously and the time value of Aged Wuliangye Baijiu was further demonstrated.
Secondly, the portfolio of other Baijiu series was more concentrated. The optimization and upgrade of the
four national strategic brands, regional key brands, and some of the total distribution brands were completed and
products such as the new product Wuliang Chun (Spring), Jianzhuang 1911, and Year of the Tiger Zodiac Baijiu
were successfully launched. In addition to that, seven brands and 509 products mainly run by distributors were
eliminated and the implementation of the "three focuses", including self-operation brands, medium- and high-end
brands, and superior brands was more noticeable.
In the Reporting Period, on the lists of "Global 500" released by Brand Finance and "China’s 500 Most
Valuable Brands" released by World Brand Lab, the Company's brand value and ranking increases ranked first in
the industry.
(II) New horizons on quality engineering were broadened and quality support was enhanced steadily
Firstly, quality management achieved a higher level. The Company's special grain base of one million mu
for distilling was continuously optimized. The operation of the environmental protection and safety management
system was continuous and effective. The "from seed to liquor" whole-process quality control achieved
remarkable results. After winning the "Tianfu Quality Award" and "ARE-QE Award", the Company won the
"National Quality Award" again, becoming the only liquor enterprise in the industry that had won the highest
award in the field of national quality management for four consecutive years in 1990, 2003, 2011 and 2021. Its
status as a quality benchmark in the industry was further consolidated.
Secondly, new achievements were made in major projects. The Company completed the major task of the
demolition of areas in front of the plant, established four renovation projects of industrial parks, and completed
the main engineering tasks of four continued construction projects, including the capacity expansion project for
storing blended liquor, the finished liquor package and integrated smart storage project, the Hongba New Park
supporting facility construction project, and the brewing special grain process bin & milling automation
renovation project. The capacity expansion project was conducted smoothly.
(III) The channel construction achieved new optimization and the marketing performance was
improved steadily
Firstly, traditional terminal channels were further optimized. By focusing on "highland markets" and
"core ports", Wuliangye Exclusive Stores started to establish cultural experience halls with "an integration of
products and sales" and further improved market arrangements. The Company continuously optimized terminals,
steadily promoted the integration of KA channel supply chains of Wuliangye and series liquors, and strengthened
the refined services of national supermarkets, regional supermarkets and exclusive channels.
Secondly, emerging channels were further expanded. Wuliangye New Retail continuously exerted the
function of product image and value display window. Official self-operation flagship stores were operated steadily.
Strategic cooperation with mainstream e-commerce platforms across the country was continuously strengthened.
New sales growth was achieved.
Thirdly, the group purchase network was further improved. Strategic cooperation was reached with the
Huawei Group, the Geely Group, and Shenzhen Harmony Club to establish the group purchase network that was
led by leading enterprises and served tens of thousands of enterprises across the country.
Fourthly, the highland markets and the key markets were further expanded. Targeted expansion was
facilitated in eight highland markets in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Hangzhou, Nanjing,
and Zhengzhou and 14 provincial capital-level key markets.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(IV) Brand promotion achieved new breakthroughs and corporate image was improved steadily
Firstly, the brand reputation in the domestic market continued to be advanced. Relying on the
Company's core value and profound cultural heritage and its advantages in raw grain, fermentation pit, brewing,
quality and brand, a number of brilliant cultural IPs such as the Forbidden City, China West Lake Love Wuliangye
Rose Wedding Ceremony, and See You, Wuliangye's exclusive titled entrepreneur follow-up dialogue program,
were created to promote Wuliangye culture. The brand image was displayed in national key airports, core business
circles in key cities, and transportation hubs in an all-round manner so that the atmosphere in high-end
consumption places across the country could be enhanced to gain exposure for Wuliangye, extend the coverage of
Wuliangye, enable customers to create a memory of Wuliangye, and improve the reputation of Wuliangye.
Secondly, the brand's influence on the international market continued to grow. Wuliangye integrated
itself into the national strategy of Belt and Road, participated in international events such as Dubai World Expo
and Fortune Global 500 Summit, endowed scene culture expression with new connotations and new forms, and
displayed the national corporate image and the charm of domestic brands. The brand's global influence was
enhanced.
(V) New growth drivers were created for consumer cultivation and cultural construction was advanced
steadily
Wuliangye products being carriers, the Company launched the corporate group purchase system for corporate
group purchase customers; conducted exclusive in-app purchase events for employees of group purchase
companies; combined with different consumer needs such as personalized customized products for aged liquor
collection to launch more thoughtful service to further boost the consumption potential. "Classic Wuliangye"
tasting sessions and tasting sessions exclusive to VIP customers were held in tier-one cities and provincial capitals.
The number of consumer opinion leaders and brand enthusiasts was continuously increased. Wuliangye's
reputation and engagement in high-end consumption circles were enhanced steadily.
(VI) New progress were made in digital transformation and scientific and technological innovation was
enhanced steadily
Firstly, digital transformation was implemented to build corporate advantages. The establishment of a
digital marketing management and service system was completed. The operation of pilot smart specialty shops
noted initial progress. Marketing processes such as traditional business and innovative business were incorporated
into the online digital system to push forward the improvement of omni-channel digital management.
Secondly, Wulianye's capacity for scientific and technological innovation maintained a leadership
position in the industry. The new world-class International Joint Lab on Wuliangye Flavor was established based
on the efficient operation of the existing national and provincial scientific research platforms. Wuliangye, as the
first author, wrote a world authoritative book on the research of the flavor of distilled liquors, which was
published worldwide. The Company's "Wuliangye Baobaoqu Quality Improvement Technology Research and
Application" project won the first prize of the 2021 China National Food Industry Association Science and
Technology Award. Furthermore, the Company won the title of Advanced Group of the 13th Five-Year Plan of
Light Industry Technology Innovation, China National Light Industry Council, and the "Outstanding Contribution
Award for China's Wine Industry Science and Technology" by China Alcoholic Drinks Association, becoming the
first enterprise in the industry to be selected into the third batch of industrial products green design demonstration
enterprises by the Ministry of Industry and Information Technology.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
15
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
2021 2020
As % of As % of
total total Change
Operating revenue operating Operating revenue operating (%)
revenue revenue
(%) (%)
Total 66,209,053,612.11 100.00% 57,321,059,453.15 100.00% 15.51%
By operating division
Manufacturing 66,209,053,612.11 100.00% 57,321,059,453.15 100.00% 15.51%
By product category
Liquor 61,731,839,992.96 93.24% 52,434,071,866.48 91.47% 17.73%
Of which: Wuliangye-branded Baijiu
49,112,013,173.38 74.18% 11.46%
products 44,060,628,351.09 76.87%
Other Baijiu series 12,619,826,819.58 19.06% 8,373,443,515.39 14.61% 50.71%
Plastic products 2,509,011,509.24 3.79% 2,585,059,494.52 4.51% -2.94%
Printing 138,217,423.29 0.21% 136,405,558.64 0.24% 1.33%
Glass bottles 135,971,277.27 0.21% 176,439,052.84 0.31% -22.94%
Other 1,694,013,409.35 2.56% 1,989,083,480.67 3.47% -14.83%
By operating segment
Liquor products 61,731,839,992.96 93.24% 52,434,071,866.48 91.47% 17.73%
Of which: East China 18,782,177,440.32 28.37% 14,186,030,946.71 24.75% 32.40%
South China 7,430,135,341.39 11.22% 5,623,782,156.78 9.81% 32.12%
West China 16,979,243,862.88 25.64% 18,493,709,772.58 32.26% -8.19%
North China 7,535,414,625.22 11.38% 5,787,446,943.40 10.10% 30.20%
Central China 11,004,868,723.15 16.62% 8,343,102,047.01 14.56% 31.90%
Non-liquor products 4,477,213,619.15 6.76% 4,886,987,586.67 8.53% -8.39%
By sales model
Liquor products 61,731,839,992.96 93.24% 52,434,071,866.48 91.47% 17.73%
Distributor model 50,136,705,774.85 75.72% 45,379,752,892.82 79.17% 10.48%
Direct-to-consumer model 11,595,134,218.11 17.51% 7,054,318,973.66 12.31% 64.37%
Non-liquor products 4,477,213,619.15 6.76% 4,886,987,586.67 8.53% -8.39%
Notes: 1. The Company does not export liquor products directly. Instead, it sells them to Wuliangye Group
I&E for export.
2. The sales regions are divided based on the places of registration of customers.
(2) Operating Division, Product Category, Operating Segment or Sales Model Contributing over 10% of
Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY
Gross YoY change in
YoY change in change
Operating revenue Cost of sales profit operating
cost of sales (%) in gross
margin revenue (%)
profit
16
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
margin
(%)
By operating division
Manufacturing
61,731,839,992.96 12,165,790,903.99 80.29% 17.73% 17.63% 0.01%
(Liquor production)
By product category
Liquor 61,731,839,992.96 12,165,790,903.99 80.29% 17.73% 17.63% 0.01%
Of which:
Wuliangye-branded 49,112,013,173.38 7,076,007,335.05 85.59% 11.46% 6.70% 0.64%
Baijiu products
Other Baijiu
12,619,826,819.58 5,089,783,568.94 59.67% 50.71%（Note 1） 37.16%（Note 2） 3.99%
series
By operating segment
Liquor 61,731,839,992.96 12,165,790,903.99 80.29% 17.73% 17.63% 0.01%
Of which: East
18,782,177,440.32 3,412,179,998.04 81.83% 32.40%（Note 3） 27.39% 0.71%
China
South China 7,430,135,341.39 1,174,384,448.56 84.19% 32.12%（Note 4） 15.19% 2.32%
West China 16,979,243,862.88 4,079,790,164.23 75.97% -8.19% 2.69% -2.55%
North China 7,535,414,625.22 1,246,334,864.18 83.46% 30.20%（Note 4） 13.34% 2.46%
Central China 11,004,868,723.15 2,253,101,428.98 79.53% 31.90%（Note 4） 43.33%（Note 4） -1.63%
By sales model
Liquor 61,731,839,992.96 12,165,790,903.99 80.29% 17.73% 17.63% 0.01%
Of which: 50,136,705,774.85 10,432,852,899.80 79.19% 10.48% 12.68% -0.41%
Distributor model
Direct-to-co 11,595,134,218.11 1,732,938,004.19 85.05% 64.37%（Note 5） 59.95%（Note 5） 0.41%
nsumer model
Data of principal operations restated according to the changed methods of measurement that occurred in the
Reporting Period:
□ Applicable √ Not applicable
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
Note 1: This was mainly due to the fact that the Company adhered to the "three characteristics and one
recognition" for other Baijiu series, focused on building Wuliang Chun (Spring), Wuliang Chun (Rich Flavor),
Wuliang Tequ and Jianzhuang into the four national strategic brands, coordinated growing brands and total
distribution brands as a strategic synergy, and continuously optimized the brand structure. Both the sales volume
and the price of other Baijiu series grew during the Reporting Period.
Note 2: This was mainly due to the year-on-year increase in the sales revenue of other Baijiu series in the
Reporting Period, leading to the corresponding growth in cost of sales.
Note 3: This was mainly due to the steady growth in the sales revenues in the eastern region of the
Company's core sales area and of Wuliangye-branded Baijiu products and other Baijiu series in the Reporting
Period.
17
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Note 4: This was mainly due to the fact that compared with the same period of last year, the markets in the
southern, northern and central regions were greatly affected by the pandemic, and the operating revenue base was
relatively low. In the Reporting Period, the sales of products in the southern, northern and central regions was
improved, the operating revenue increased and the cost of sales grew accordingly as well. The inconsistency in the
increase in revenue and cost was mainly caused by the product sales structure.
Note 5: This was mainly due to the fact that in the Reporting Period, the Company strengthened the group
cultivation of consumer opinion leaders and online direct-to-consumer sales, leading to a surge in the sales
revenue of the direct-to-consumer sales model and a corresponding increase in cost of sales.
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2021 2020 Change (%)
Sales volume Metric ton 181,775 160,443 13.30%
Liquor Output Metric ton 188,717 158,831 18.82%
Inventory Metric ton 21,161 14,219 48.82%（Note）
Note: The liquor referred to in the table above is all commercial liquor.
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
Note: Due to a considerable growth in sales revenue of other Baijiu series during the Reporting Period, the
Company increased the inventory to meet market demand.
(4) Execution Progress of Significant Signed Sales or Purchase Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
Unit: RMB
2021 2020
Operating Change in
Item As % of total cost As % of total cost
division Cost of sales Cost of sales percentage
of sales (%) of sales (%)
Raw
8,695,241,991.41 53.28% 8,280,192,175.78 55.90% -2.62%
materials
Labor cost 5,141,719,582.95 31.51% 4,328,398,411.77 29.22% 2.29%
Manufacturing
Energy 947,639,638.53 5.81% 796,325,741.28 5.38% 0.43%
Production
1,534,177,375.93 9.40% 1,407,045,149.82 9.50% -0.10%
cost
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. On 19 November 2021, three wholly-owned subsidiaries of the Company, namely Yibin Cuipingshan
Liquor Co., Ltd., Yibin Century Liquor Co., Ltd. and Yibin Zhenwushan Liquor Co., Ltd., were de-registered and
have been excluded from the Company’s consolidated financial statements since that day.
18
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 6,057,814,328.10
Total sales to top five customers as % of total sales in the Reporting
9.15%
Period (%)
Total sales to related parties among top five customers as % of total
0.00%
sales in the Reporting Period (%)
Top five customers:
As % of total sales in the Reporting Period
No. Customer Sales to the customer (RMB)
(%)
1 Customer A 1,537,411,241.70 2.32%
2 Customer B 1,280,114,201.77 1.93%
3 Customer C 1,228,957,956.73 1.86%
4 Customer D 1,039,219,625.21 1.57%
5 Customer E 972,111,302.69 1.47%
Total -- 6,057,814,328.10 9.15%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 3,080,986,307.31
Total purchases from top five suppliers as % of total purchases in
29.18%
the Reporting Period (%)
Total purchases from related parties among top five suppliers
11.61%
as % of total purchases in the Reporting Period (%)
Top five suppliers:
As % of total purchases in the Reporting
No. Supplier Purchases (RMB)
Period (%)
1 Supplier A 731,440,676.51 6.93%
2 Supplier B 691,658,046.61 6.55%
3 Supplier C 579,931,127.88 5.49%
4 Supplier D 543,645,525.58 5.15%
5 Supplier E 534,310,930.73 5.06%
Total -- 3,080,986,307.31 29.18%
Other information about major suppliers:
□ Applicable √ Not applicable
19
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
3. Expenses
Unit: RMB
Item 2021 2020 Change (%) Main reason for any significant change
Selling expense 6,503,506,131.90 5,578,918,523.98 16.57%
Administrative
2,899,968,867.37 2,609,529,686.09 11.13%
expense
Finance costs -1,731,702,085.22 -1,485,519,200.21 N/A
Greater investments in R&D projects
R&D expense 177,411,727.65 131,315,225.33 35.10%
such as production techniques
(1) Breakdown of Selling Expense
Unit: RMB
2021 2020
Change Reason for
Item Amount As % of selling Amount As % of selling
(%) change
expense expense
Image promotion
1,218,266,158.62 18.73% 1,148,203,672.92 20.58% 6.10%
expense
Sales promotion
3,786,854,045.27 58.23% 3,302,764,255.56 59.20% 14.66%
expense
Warehousing and
411,654,403.24 6.33% 260,214,712.62 4.66% 58.20% Note
logistics expense
Labor cost 611,192,688.42 9.40% 470,739,623.11 8.44% 29.84%
Other expenses 475,538,836.35 7.31% 396,996,259.77 7.12% 19.78%
Total 6,503,506,131.90 5,578,918,523.98 16.57%
Note: Firstly, stronger sales of liquor products resulted in an increase in warehousing and logistics expense;
secondly, the increase in warehousing expense was also a result of the Company’s efforts to improve distribution
efficiency.
(2) Advertising Expense
During 2021, the Company’s primary advertising means included TV, broadcasting, Internet, outdoor ads
and exhibitions. The expenses on online, offline and TV ads were RMB161 million, RMB552 million and
RMB505 million, respectively.
4. R&D Investments
√ Applicable □ Not applicable
Main R&D Specific
Purpose Progress Expected impact on the Company
project objectives
Development of In the key brewing (1) The key equipment of a smart Conduct a If the project achievements can be
Wuliangye process, the production line was successfully large-scale popularized and put into
intelligent traditional manual developed and a pilot demonstration production application, then the revolution in
brewing operation is replaced line was established; (2) 50 patents and Wuliangye's production methods
production line by the smart were applied for; (3) the production application can be promoted, so as to realize
and research on production line to and application demonstration of the demonstration the transformation from traditional
supporting reduce labor designed smart brewing production in Wuliangye manual brewing to modern smart
20
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
production intensity, improve the line scheme was planned to be liquor brewing. The gradual
technique labor environment carried out in the first phase of the production transformation from an experience
and reduce the Wuliangye high-quality workshop and skill-oriented production
quality fluctuation in multiplication project process to a knowledge and
the operation technology-oriented one is
process, and to conducive to the stability and
conduct improvement of product quality
demonstration
verification and data
collection for the
promotion of the
smart brewing
production line in
traditional liquor
production workshop
Scientifically demonstrate the
unique biological enzymes and
Explore the
microbial flora in Baobaoqu,
contribution of (1) Completed the analysis of the Establish the
Wuliangye establish an evaluation mechanism
Baobaoqu enzymes structure of Baobaoqu enzymes and enzymatic
Baobaoqu for the application performance of
and microbes to the systematically studied the enzymatic fingerprints
enzymatic core enzymes based on the control
unique flavor of properties of the main enzymes; (2) and relevant
fingerprint of production technique
Wuliangye and clarified the composition and microbial
analysis and conditions, develop key
display the special abundance of microbial flora in metabolic
enzyme-producing technologies for improving
functions and roles of Baobaoqu using genomics networks of
microbial Baobaoqu's quality and
Baobaoqu originally technology; (3) published a paper in different
community performance, and provide
created by SCI and applied for one invention types of
analysis theoretical and technological
Wuliangye in patent Baobaoqu
support for stabilizing and
Wuliangye brewing
improving Wuliangye's famous
wine rate
(1) Used the high-throughput Lay a solid technical foundation
Systematically
sequencing technology combined and provide theoretical support for
analyze the scientific Reveal the
with the culturomics technology to scientifically and accurately
mechanism of the mechanism of
clarify the type and proportion of the analyzing the mystery of
core brewing the mutual
Analysis of the main caproic acid bacteria in the five-grain brewing, developing the
technologies of influence of
mechanism and Wuliang brewing system, key technology for improving the
Wuliangye and each kind of
characteristics of systematically analyzed its quality rate of Wuliangye with
explore the grain in the
Wuliangye metabolism and the characteristics functional microbial flora
characteristics and five kinds of
multi-grain and molecular mechanisms of the metabolism in pit mud, and
mechanism of the grain on the
brewing system flavor produced, and accurately continuously improving
impact exerted by the fermentation
identified the complex microbial Wuliangye's famous wine rate,
five grain formulas microbial
species in the five-grain brewing and play the role of Wuliangye for
on the brewing flora
system; (2) discovered and confirmed scientifically and fully reveal the
microbial system
a new species of the main caproic mystery of the complexity of our
21
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
acid bacteria of NongXiang Series country's strong flavor Baijiu
Baijiu in the pit mud, which was brewing system
recognized globally, and formally
established the taxonomic status of
the new species of caproic acid
bacteria; (3) published two
authoritative papers in SCI and
screened a strain of the new species
of caproic acid bacteria
Particulars about R&D personnel:
2021 2020 Change (%)
Number of R&D personnel 2,571 2,719 -5.44%
R&D personnel as % of total Down by 0.36 percentage poi
9.96% 10.32%
employees nt
Educational background of
—— —— ——
R&D personnel
Junior college and below 1,495 1,649 -9.34%
Bachelor’s degree 899 899 0.00%
Master’s degree 168 163 3.07%
Doctoral degree 13 8 62.50%
Age structure of R&D
—— —— ——
personnel
Below 30 857 906 -5.41%
30~40 988 1,044 -5.36%
Over 40 726 769 -5.59%
Particulars about R&D investments:
2021 2020 Change (%)
R&D investments (RMB) 177,411,727.65 131,315,225.33 35.10%
R&D investments as % of operating Up by 0.04 percentage poi
0.27% 0.23%
revenue nt
Capitalized R&D investments (RMB) 0.00 0.00 0.00%
Capitalized R&D investments as % of
0.00% 0.00% 0.00%
total R&D investments
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
22
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
5. Cash Flows
Unit: RMB
Item 2021 2020 Change (%)
Subtotal of cash generated from
83,023,369,160.65 64,967,961,994.18 27.79%
operating activities
Subtotal of cash used in operating
56,248,427,287.60 50,269,634,400.97 11.89%
activities
Net cash generated from/used in
26,774,941,873.05 14,698,327,593.21 82.16%（Note 1）
operating activities
Subtotal of cash generated from
47,904,368.82 6,438,616.16 644.02%（Note 2）
investing activities
Subtotal of cash used in investing
1,544,754,180.86 1,728,453,964.74 -10.63%
activities
Net cash generated from/used in
-1,496,849,812.04 -1,722,015,348.58 -13.08%
investing activities
Subtotal of cash generated from
15,000,000.00 N/A
financing activities
Subtotal of cash used in financing
11,269,456,954.06 9,228,223,328.76 22.12%
activities
Net cash generated from/used in
-11,269,456,954.06 -9,213,223,328.76 22.32%
financing activities
Net increase in cash and cash
14,008,165,578.27 3,762,958,476.66 272.26%（Note 3）
equivalents
Explanation of why any of the data above varies significantly on a year-on-year basis:
√ Applicable □ Not applicable
Note 1: The increased cash generated from operating activities was primarily driven by the low base of
proceeds from sale of goods and rendering of services last year due to the COVID-19 pandemic, as well as the
increased operating revenue, cash inflows from due bank acceptance notes, etc. in the current year.
Note 2: A dividend amount of RMB42 million was received from associate Wuliangye Group Finance in the
current year.
Note 3: Net cash generated from operating activities increased in the current year.
Explanation of why the net cash generated from/used in operating activities varies significantly from the net
profit of the Reporting Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
□ Applicable √ Not applicable
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
23
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
31 December 2021 1 January 2021 Change in Reason for any
As % of total As % of total percentage significant
Amount Amount
assets assets (%) change
Monetary assets 82,335,955,927.74 60.71% 68,209,577,022.61 59.81% 0.90%
Accounts
64,193,116.22 0.05% 41,496,170.35 0.04% 0.01%
receivable
Inventories 14,015,067,118.25 10.33% 13,228,273,631.45 11.60% -1.27%
Long-term
equity 1,911,228,653.63 1.41% 1,849,977,103.30 1.62% -0.21%
investments
Fixed assets 5,610,147,000.37 4.14% 5,866,880,860.03 5.14% -1.00%
Construction in
2,646,087,846.01 1.95% 1,482,098,184.64 1.30% 0.65%
progress
Right-of-use
697,805,952.69 0.51% 146,707,923.47 0.13% 0.38%
assets
Contract
13,058,652,246.11 9.63% 8,618,543,467.25 7.56% 2.07%
liabilities
Lease liabilities 355,338,950.93 0.26% 73,960,277.66 0.06% 0.20%
Indicate whether overseas assets account for a larger proprtion in total assets.
□ Applicable √ Not applicable
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Imp
airm
Gain/los ent
s on Cumulativ allo
Purcha
fair-valu e wan Sold
sed in
e fair-value ce in the
Item Opening amount the Other changes Closing amount
changes changes for current
current
in the recognized the period
period
current in equity curr
period ent
peri
od
Financial assets
1. Held-for-trading
financial assets
1,200,000.00 1,200,000.00
(exclusive of derivative
financial assets)
24
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
2. Derivative financial
assets
3. Other debt
investments
4. Other equity
investments
5. Receivables financing 2,024,442,016.72 -382,932,428.03 1,641,509,588.69
Subtotal of financial
2,025,642,016.72 -382,932,428.03 1,642,709,588.69
assets
Investment property
Productive living assets
Other
Total of the above 2,025,642,016.72 -382,932,428.03 1,642,709,588.69
Financial liabilities
Indicate whether any significant change occurred to the measurement attributes of the major assets in the
Reporting Period.
□ Yes √ No
3. Restricted Assets as at the Period-end
√ Applicable □ Not applicable
Unit: RMB
Item Closing carrying amount Reason for restriction
The balance of RMB3,211.55 in the securities trading account with the Yibin
Business Department of Essence Securities, security deposits of
Monetary assets 307,498,340.40
RMB307,240,205.65 for bank acceptance notes, and other security deposits of
RMB254,923.20
Receivables financing 118,374,800.00 In pledge for bank acceptance notes
Total 425,873,140.40
VII Investment Analysis
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in the Reporting Total investment amount in last year
Change (%)
Period (RMB) (RMB)
5,625,000.00 734,693,877.55 -99.23%（Note）
Note: The change was primarily driven by a capital increase to associate Wuliangye Group Finance last year.
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √ Not applicable
3. Significant Ongoing Non-Equity Investments in the Reporting Period
□ Applicable √ Not applicable
25
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
√ Applicable □ Not applicable
(1) General Information about the Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0,000
Amo
unt
Cumulat
bein
ive
Re-purp g
re-purpo
osed idle
Total Used in the Cumulative sed Purpose and
Year of Way of Cumulativel amount Unused for
amount current re-purposed amount whereabouts of the
raising raising y used in the amount mor
raised period amount as % of unused amount
Reportin e
total
g Period than
amount
two
raised
year
s
The unused amount
is all deposited in
the special account
for raised funds for
future use in the
raised funds
investment projects.
Private Meanwhile, in view
2018 placement 185,327.74 95,922.11 148,140.12 0 169,405.51 91.41% 37,187.62 of the progress of
of shares the raised funds
investment projects,
the unused amount
is rationally
allocated as current
deposits, call
deposits, term
deposits, etc.
Total -- 185,327.74 95,922.11 148,140.12 0 169,405.51 91.41% 37,187.62 --
More information
During the Reporting Period, RMB537.0565 million was paid for the finished liquor packaging and intelligent warehousing and
distribution integration project, and RMB422.1646 million was paid for the liquor storage cellar renovation project.
26
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(2) Promised Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0,000
Signi
Re-pur
Time ficant
posed Investmen Meetin
Total Cumulativel when the Returns chang
Promised raised funds or Adjusted t progress g the
promised Used in the y used as of project is derived e to
investment project and partiall total as of the expect
investment Reporting the ready for in the proje
investments with y investment period-en ed
amount with Period period-end its Reportin ct
over-raised funds re-pur amount (1) d (3)＝ returns
raised funds (2) intended g Period feasib
posed (2)/(1) or not
use ility
or not
or not
Promised projects
Information
technology-based Yes 71,530 5,644.64 0 5,644.64 100.00% N/A N/A N/A No
transformation
Construction of a
Yes 50,793 3,944.06 0 3,944.06 100.00% N/A N/A N/A No
marketing center
Service-oriented
Yes 63,074 8,434.04 0 8,434.04 100.00% N/A N/A N/A No
e-commerce platform
Finished liquor
Expected
packaging and
ly
intelligent warehousing No 0 94,422.74 53,705.65 69,336.68 73.43% N/A N/A No
Decembe
and distribution
r 2023
integration
Expectedl
Liquor storage cellar y
No 0 74,982.77 42,216.46 60,780.7 81.06% N/A N/A No
renovation December
2022
Subtotal of promised
-- 185,397 187,428.25 95,922.11 148,140.12 -- -- -- --
projects
Investments with over-raised funds
Repaying bank loans (if
-- -- -- -- --
any)
Supplementing
-- -- -- -- --
working capital (if any)
Subtotal of investments
-- -- -- -- --
with over-raised funds
Total -- 185,397 187,428.25 95,922.11 148,140.12 -- -- -- --
Reasons for not
N/A
reaching the scheduled
27
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
progress or expected
returns (project by
project)
Particulars about
significant change to N/A
project feasibility
Amount, purpose and
use progress of N/A
over-raised funds
Change of
implementation
N/A
location of raised funds
investment projects
Adjustments to the way
of implementation of
N/A
raised funds investment
projects
Advance investments in
promised projects
funded with raised N/A
funds and subsequent
swaps
Use of idle raised funds
for temporarily
N/A
supplementing the
working capital
Surplus amount of
raised funds upon
N/A
project implementation
and the reasons
Purpose and The unused amount is all deposited in the special account for raised funds for future use in the raised funds
whereabouts of unused investment projects. Meanwhile, in view of the progress of the raised funds investment projects, the unused
raised funds amount is rationally allocated as current deposits, call deposits, term deposits, etc.
Problems or other
issues arising in the use
N/A
and disclosure of raised
funds
(3) Re-purposed Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0,000
Former Total raised Used in the Cumulativel Investmen Time when Returns Meeting the Significant
New project
project funds to be Reporting y used as of t progress the project is derived in expected change to the
28
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
invested in Period the as of the ready for its the returns or feasibility of
the new period-end period-end intended use Reporting not the new project
project (1) (2) (3)＝ Period or not
(2)/(1)
Finished Information
Liquor technology-
packaging based
and transformati Expectedly
intelligent on, 94,422.74 53,705.65 69,336.68 73.43% December N/A N/A No
warehousin construction 2023
g and of a
distribution marketing
integration center, and
Liquor service-orie Expectedly
storage nted December
74,982.77 42,216.46 60,780.70 81.06% N/A N/A No
cellar e-commerce 2022
renovation platform
Total -- 169,405.51 95,922.11 130,117.38 -- -- -- --
The Proposal on Changes to the Purpose and User of Funds Raised in a Private Placement was
approved at the 73rd Meeting of the Fifth Board of Directors on 24 April 2020 and then at the
2019 Annual General Meeting of Shareholders on 29 May 2020. As such, it was agreed to
Reasons for the changes,
change the purpose of the raised funds, and change the user from Sichuan Yibin Wuliangye
decision-making procedure executed
Supply and Marketing Co., Ltd. to Sichuan Yibin Wuliangye Distillery Co., Ltd.
and relevant disclosed information
(project by project) For further information, see the Announcement on Resolutions of the 73rd Meeting of the
Fifth Board of Directors, the Announcement on Resolutions of the 2019 Annual General
Meeting of Shareholders, and the Announcement on Signing a Four-party Supervision
Agreement for the Special Account for Raised Funds for a Private Placement.
Reasons for not reaching the
scheduled progress or expected returns N/A
(project by project)
Particulars about significant change to
N/A
the feasibility of the new projects
VIII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
IX Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
29
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Unit: RMB
Relationship with
Name Principal activities Registered capital Total assets Net assets
the Company
Sale of liquor, liquor
Yibin Wuliangye Liquor import & export and
Subsidiary 200,000,000.00 50,052,122,188.83 25,814,632,948.26
Sales Co., Ltd. agency service of
liquor import & export
Relationship with
Name Principal activities Operating revenue Operating profit Net profit
the Company
Sale of liquor, liquor
Yibin Wuliangye Liquor import & export and
Subsidiary 58,718,765,149.19 22,559,094,728.31 16,925,376,124.29
Sales Co., Ltd. agency service of
liquor import & export
Subsidiaries acquired or disposed of in the Reporting Period:
√ Applicable □ Not applicable
Way of acquisition or
Name of company Impact on the Company
disposal
As per the Three-year Action for the Reform of State-owned Enterprises at
Provincial and Municipal Levels (2020～2022), in order to optimize the branch
Yibin Cuipingshan Liquor Co., Ltd., company and subsidiary allocation as a state-owned enterprise, the Company
Yibin Shiji Liquor Co., Ltd., and De-registered has strengthened the disposal of less competitive business entities that are not
Yibin Zhenwushan Liquor Co., Ltd. part of its principal operations. Three wholly-owned subsidiaries of the
Company were de-registered, which had no impact on the Company’s ordinary
course of business.
X Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI Prospects
(I) Industry Landscape and Trends
From a macroeconomic perspective, although the development of domestic economy faces the triple
pressures of demand contraction, supply shocks and weakening expectations, and there are still many unstable and
uncertain factors, favorable conditions remain prominent. The fundamentals of Chinese economy - its vitality,
strong resilience and long-term sustainability - remain unchanged. The consumption base and capacity remain
prudent.
From the perspective of industry development, structural growth has become the focus of the development
of the Baijiu industry. Superior brands, superior enterprises and superior producing areas will continue to be
benefited and industry concentration will be gradually increased. In particular, the growth of high-quality
production capacity supply is far from keeping up with the growth of high-end consumer demand. The liquor
industry has entered an era of quality competition in which "there is no shortage of liquor for a long time, but
there is a long-term shortage of quality liquors".
From the perspective of corporate status, the directional and patterned development momentum in the
market, channels, brands, and products continues to rise. Enterprises have entered a new stage of high-quality
30
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
development in an all-round manner.
(II) Development Strategies of the Company
Strategic vision of the Company: In pursuit of long-lasting business, Wuliangye is committed to developing
into a world-leading Baijiu producer with superior products, strong brands, advanced innovation and modern
governance that keeps growing in a sustainable, steady and high-quality way.
(III) Completion of the Business Plan for 2021
1. Planning at the beginning of the year: Double-digit growth in the total revenues in 2021.
2. Realities: In 2021, the Company's operating revenue reached RMB66.209 billion, up 15.51% year on year.
(IV) Development Goals for 2022
The Company's operation goal for 2022: A continued double-digit growth in total revenues.
In 2022, the Company will act on the general principle of seeking progress while maintaining stability, meet
the fundamental goal of satisfying the new demands of consumption upgrades, pursue high-quality development
as the general aim, take structural reform on the supply side as the main task, harness reform and innovation as the
key source of momentum, seize new development opportunities, and make every effort to build a sustained, steady
and high-quality Wuliangye with the five-in-one of "ecology, quality, culture, digitalization and sunshine".
(V) Potential Risks
Firstly, macroeconomic uncertainties; secondly, further intensification of industry competition, especially the
competition among famous liquor enterprises; thirdly, the risk of intellectual property protection for well-known
brands.
XII Researches, Inquiries, Interviews, etc. Received during the Reporting Period
√ Applicable □ Not applicable
Main
Type of
discussions Index to the
Way of the
Date Place Communication party and materials relevant
communication communic
provided by information
ation party
the Company
One-on-one ABC-CA Fund Management, China
15 January 2021 Yibin Institution
meeting Merchants Fund, Penghua Fund
China Universal Asset
8 March 2021 Yibin By phone Institution Management, Shenwan Hongyuan
Securities
The
9 March 2021 Yibin By phone Institution Ninetyone Fund
Company’s
Securities firm’s Penghua Fund, Bosera Funds, development
http://www.cninf
investment Changjiang Pension, Foresight strategies,
10 March 2021 Shanghai Institution o.com.cn
strategy Fund, Chang Xin Asset production
conference Management, etc. and operation
10 March 2021 Yibin By phone Institution Fullgoal Fund status, etc.
Securities firm’s
Great Wall Fund, Panjing Invest,
investment
11 March 2021 Hangzhou Institution Fullgoal Fund, China Everwin Asset
strategy
Management, etc.
conference
16-17 March 2021 Wuhan Securities firm’s Institution China Fund, CICC Fund, Bosera
31
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
investment Funds, Guangdong Development
strategy Asset Management, etc.
conference
China Fund, BOCOM Schroders,
17-18 March 2021 Yibin By phone Institution
Penghua Fund
Orient Securities Asset
Securities firm’s Management, Zhong Ou Asset
investment Management, Qian Hai Life
18 March 2021 Hangzhou Institution
strategy Insurance, Huatai-Pinebridge Fund
conference Management, Southern Asset
Management, etc.
One-on-one Guotai Junan Securities, Sinolink
25 March 2021 Yibin Institution
meeting Securities, Huaxi Securities, etc.
HSBC Qianhai, Balckrock, Egerton,
10 May 2021 Yibin By phone Institution
etc.
Securities firm’s China Capital Management, CITIC
Chengdu
investment Asset Management, Bank of China
12 May 2021 and Institution
strategy Investment Management, ICBC
Shanghai
conference Wealth Management, etc.
CICC, Southern Asset Management,
Yibin and One-on-one
13 May 2021 Institution Credit Suisse Founder Securities,
Chengdu meeting
etc.
Tongben Invest, Bosera Funds,
17 May 2021 Yibin By phone Institution
Fullgoal Fund, etc.
One-on-one Shenzhen Kaifeng Investment
25 May 2021 Yibin Institution
meeting Management
Chengdu, Securities firm’s
Nanjing investment Fullgoal Fund, E Fund, Yinhua
03-04 June 2021 Institution
and strategy Fund, Brilliance Capital, etc.
Shanghai conference
E Fund, China Universal Asset
Institution
General meeting Management, Southern Asset
18 June 2021 Yibin and
of shareholders Management, individual
individual
shareholders, etc.
Securities firm’s
Wuxi and investment Fullgoal Fund, HuaAn Funds,
9 July 2021 Institution
Shanghai strategy Sealand Securities, etc.
conference
Securities firm’s HuaAn Funds, Bosera Funds, New
Shanghai
investment China Fund, ICBC Credit Suisse, E
21-23 July 2021 and Institution
strategy Fund, GUOTAI AMC, Orient Fund,
Guiyang
conference etc.
06-10 September Yibin By phone Institution Southern Asset Management,
32
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
2021 Penghua Fund, China Universal
Asset Management, Greenwoods
Asset Management, Taikang Asset
Management, etc.
14 September Cinda Securities, Tianhong Asset
Yibin By phone Institution
2021 Management
09 and 11 CICC, Ninetyone Fund, E Fund,
Yibin By phone Institution
November 2021 Yinhua Fund, etc.
16 and 18 HSBC Qianhai, Baoying Fund,
Yibin By phone Institution
November 2021 Bosera Funds, etc.
2 December 2021 Yibin By phone Institution Mondrian, China Fund, E Fund, etc.
China Universal Asset
22 December
Yibin By phone Institution Management, E Fund, ChinaAMC,
2021
BOCOM Schroders, etc.
27 December One-on-one
Yibin Institution Shenwan Hongyuan Securities, etc.
2021 meeting
Southern Asset Management,
28 December
Yibin By phone Institution Bosera Funds, Penghua Fund,
2021
Yinhua Fund, etc.
33
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part IV Corporate Governance
I Corporate Governance Overview
The Company is dedicated to establishing and improving its governance structure. In strict compliance with
the applicable laws and regulations such as the Company Law, the Securities Law, and the Code of Governance
for Listed Companies, the Company has established the relevant rules, methods and mechanisms and keeps
revising and improving them. Among them, the rules for general meetings of shareholders, the Board of Directors,
and the Supervisory Committee ensure their respective power of final approval, decision-making and supervision.
Five special committees have been put in place under the Board of Directors, namely the Strategy Committee, the
Remuneration and Appraisal Committee, the Nomination Committee, the Audit Committee, and the
Comprehensive Budget Management Committee, which has promoted compliance in the operation of the Board
of Directors in an effective manner.
During the Reporting Period, the Company has further improved its management rules and methods by
revising rules and methods such as the Articles of Association.
Indicate whether there is any material incompliance with the applicable laws, regulations, or rules issued by
the CSRC governing the governance of listed companies.
□ Yes √ No
No such cases.
II Independence of the Company from its Controlling Shareholder and Actual Controller in
Assets, Personnel, Finance, Organizational Structure, Business, etc.
The Company is independent of its controlling shareholder in business, personnel, assets, organizational
structure, finance, etc. It has independent and complete systems of production and operation and is able to operate
on its own.
In terms of business, the Company has independent production and operation systems, production supporting
systems and related ancillary facilities. It is able to make decisions on its own with respect to operating activities.
In terms of personnel, the Company independently manages labor, human resources and salaries.
In terms of assets, the Company has ownership and control of its assets, and the controlling shareholder does
not occupy its assets or funds.
In terms of organizational structure, the principal management organs and systems for production and
operation of the Company are independent.
In terms of finance, the Company has an independent financial organ, independent accounting system and
financial management mechanism, and has its own bank account.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings of Shareholders Convened during the
Reporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
Investor
Meeting Type Date of the meeting Disclosure date Resolutions
participation ratio
34
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
See the
Announcement on
The 2020 Annual Annual General Resolutions of the
General Meeting of Meeting of 71.85% 18 June 2021 19 June 2021 2020 Annual General
Shareholders Shareholders Meeting of
Shareholders
(2021/No. 018)
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preference Shareholders
with Resumed Voting Rights
□ Applicable √ Not applicable
V Directors, Supervisors and Senior Management
1. General Information
Increa Decrea
Other Reaso
Opening se in se in Closing
increas n for
Statu Gen sharehol the the sharehol
Name Office title Age Start of office term End of office term e/decr share
s der ding current current ding
ease change
(share) period period (share)
(share) s
(share) (share)
Secretary of
the CPC Incu 28 January 2022
Zeng Mal
Committee mbe 53 Currently ongoing
Congqin e
Chairman of nt
27 September 2019
the Board
Deputy
Secretary of
28 January 2022
the CPC
Committee Incu
Jiang Mal
Vice mbe 55 Currently ongoing
Wenge e
Chairman of nt
the Board 18 February 2022
and General
Manager
Incu
Fem
Xu Bo Director mbe 54 18 June 2021 Currently ongoing
ale
nt
Member of Incu
the CPC mbe 30 December 2020
Committee nt
Zhang Director and Mal
47 Currently ongoing
Yu Vice e
To-b
Chairman of 27 December 2021
e
the
Board-to-be
Deputy
Incu
Secretary of
Xiao mbe Mal 15 December 2021
the CPC 45 Currently ongoing
Hao nt e
Committee
Director-to- To-b 3 March 2022
35
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
be e
Member of
the CPC 22 February 2022
Committee
Director Incu 18 June 2021
Jiang Fem
Deputy mbe 42 Currently ongoing
Lin ale
General nt
Manager 3 March 2022
and Board
Secretary
Incu
Zhou Independent Mal
mbe 69 22 June 2016 Currently ongoing
Yousu Director e
nt
Gan Incu
Independent Mal
Shengda mbe 55 18 November 2016 Currently ongoing
Director e
o nt
Incu
Xie Independent Mal
mbe 62 18 June 2021 Currently ongoing
Zhihua Director e
nt
Incu
Independent Mal
Wu Yue mbe 55 18 June 2021 Currently ongoing
Director e
nt
Member of Incu
the CPC mbe 22 February 2022 Currently ongoing
Committee nt
Supervisor
Liu and Mal
51
Ming Chairman of e
To-b
the 4 March 2022 Currently ongoing
e
Supervisory
Committee-t
o-be
Incu
Liu Fem
Supervisor mbe 52 29 May 2020 Currently ongoing
Feng ale
nt
Zhang Supervisor-t To-b Mal
52 27 December 2021 Currently ongoing
Xin o-be e e
Incu Grante
Wu Employee Mal
mbe 52 9 June 2015 Currently ongoing 0 17,594 d
Guoping Supervisor e
nt under
emplo
yee
Cao Incu
Employee Fem stock
Hongyin mbe 55 5 June 2020 Currently ongoing 3,100 10,320
Supervisor ale owner
g nt
ship
plan
Member of
the CPC 21 February 2014
Incu
Committee Mal
Luo Wei mbe 57 Currently ongoing
Deputy e
nt
General 18 July 2014
Manager
36
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
and CFO
Member of
the CPC Incu 12 July 2017
Zhao Mal
Committee mbe 57 Currently ongoing
Dong e
Chief nt
3 March 2022
Engineer
Member of
the CPC Incu 22 February 2022
Mal
Jiang Jia Committee mbe 47 Currently ongoing
e
Chief nt
3 March 2022
Economist
Deputy Incu
Yue Mal
General mbe 49 3 March 2022 Currently ongoing
Song e
Manager nt
Deputy Incu
Liu Mal
General mbe 43 27 December 2021 Currently ongoing
Yang e
Manager nt
Deputy Incu
Mal
Li Jian General mbe 47 27 December 2021 Currently ongoing
e
Manager nt
Secretary of
Li
the CPC For Mal
Shuguan 59 21 April 2017 18 February 2022
Committee mer e
g
and Director
Member of
the CPC
Committee,
Vice For Mal
Zou Tao 43 21 July 2018 18 February 2022
Chairman of mer e
the Board
and General
Manager
Member of
the CPC
Tang
Committee For Mal
Shengyu 59 18 July 2014 21 July 2021 9,100 9,100
and Deputy mer e
n
General
Manager
Chairman of
Jiang
the For Mal
Wenchu 51 18 June 2021 27 December 2021
Supervisory mer e
n
Committee
Yang For Fem
Supervisor 35 29 May 2020 27 December 2021
Ling mer ale
Fu Independent For Mal
60 18 July 2014 18 June 2021
Nanping Director mer e
Member of
the CPC
Zhu Committee For Mal
58 18 July 2014 21 July 2021 11,501 11,501
Zhongyu and Deputy mer e
General
Manager
37
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Shareh
Member of olding
the CPC increas
Tang Committee For Mal e on
57 18 July 2014 14 September 2021 20,000 20,500
Bochao and Deputy mer e the
General second
Manager ary
market
Lang
Independent For Mal
Dingcha 56 18 June 2021 12 October 2021
Director mer e
ng
Total 43,701 69,015
Indicate whether any director, supervisor or senior management resigned before the expiry of their office
terms during the Reporting Period.
□ Yes √ No
Changes of directors, supervisors and senior management:
√ Applicable □ Not applicable
Type of
Name Office title Date Reason
change
Xu Bo Director Incumbent 18 June 2021 Elected at a general meeting of shareholders
Director Incumbent 18 June 2021 Elected at a general meeting of shareholders
Jiang Lin Deputy General Manager
Incumbent 3 March 2022 Appointed by the Board of Directors
and Board Secretary
Xie Incumbent
Independent Director 18 June 2021 Elected at a general meeting of shareholders
Zhihua
Wu Yue Independent Director Incumbent 18 June 2021 Elected at a general meeting of shareholders
Fu Former
Independent Director 18 June 2021 Elected at a general meeting of shareholders
Nanping
Jiang Supervisor and Chairman of Appointed 18 June 2021 Elected at a general meeting of shareholders
Wenchun the Supervisory Committee Former 27 December 2021 Resigned for a job change
Vice Chairman of the Board
Appointed 21 July 2021 Elected and appointed by the Board of Directors
and General Manager
Zou Tao Director, Vice Chairman of Former
the Board and General 18 February 2022 Resigned for a job change
Manager
Chief Engineer Appointed 21 July 2021 Appointed by the Board of Directors
As nominated by the higher organization, he ceased
Supervisor and Chairman of to be the Chief Engineer and became Supervisor
Liu Ming
the Supervisory To-be 4 March 2022 and Chairman of the Supervisory Committee-to-be,
Committee-to-be which is to be finalized at a general meeting of
shareholders.
According to the administration methods for
Tang
Deputy General Manager Former 21 July 2021 leadership teams of state-owned enterprises, he
Shengyun
ceased to be Deputy General Manager for the
38
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
reason of his age as decided by the Board of
Directors.
According to the administration methods for
leadership teams of state-owned enterprises, he
Zhu
Deputy General Manager Former 21 July 2021 ceased to be Deputy General Manager for the
Zhongyu
reason of his age as decided by the Board of
Directors.
Tang
Deputy General Manager Former 14 September 2021 Resigned for personal reasons
Bochao
Lang
Dingchan Independent Director Former 12 October 2021 Deceased due to illness
g
Nominated by the higher organization and the
Director and Vice Chairman
Zhang Yu To-be 27 December 2021 Board of Directors, which is to be finalized at a
of the Board
general meeting of shareholders
Liu Yang Deputy General Manager Incumbent 27 December 2021 Appointed by the Board of Directors
Li Jian Deputy General Manager Incumbent 27 December 2021 Appointed by the Board of Directors
Zhang Nominated by the higher organization, which is to
Supervisor To-be 27 December 2021
Xin be finalized at a general meeting of shareholders
Yang Ling Supervisor Former 27 December 2021 Resigned for a job change
Li Former
Director 18 February 2022 Resigned for a job change
Shuguang
Jiang Vice Chairman of the Board
Incumbent 18 February 2022 Elected and appointed by the Board of Directors
Wenge and General Manager
Nominated by the higher organization and the
Xiao Hao Director To-be 3 March 2022 Board of Directors, which is to be finalized at a
general meeting of shareholders
Yue Song Deputy General Manager Incumbent 3 March 2022 Appointed by the Board of Directors
Jiang Jia Chief Economist Incumbent 3 March 2022 Appointed by the Board of Directors
Incumbent Ceased to be Deputy General Manager and became
Zhao
Chief Engineer 3 March 2022 Chief Engineer as appointed by the Board of
Dong
Directors
2. Biographical Information
Professional backgrounds, main work experience and current positions in the Company of the incumbent
directors, supervisors and senior management:
(1) Mr. Zeng Congqin, a doctoral degree holder. He began to work in July 1988 and successively served in
Changning County of Yibin, municipal authorities, Cuiping District, and Lingang Economic Development Zone.
He once served as a member of the Standing Committee of the Changning County Party Committee, Director of
the Publicity Department, and Executive Deputy County Chief of Changning County, Director of the Investment
Service Bureau of Yibin Lingang Economic Development Zone, Secretary of the Party Leadership Group and
Director of the Yibin Municipal Development and Reform Commission and Director of the Municipal Price
Bureau, Director of the Municipal Bureau of Energy, Secretary of the Cuiping District Party Committee, and
Secretary of the Party Working Committee of Lingang Economic Development Zone. At present, he serves as the
39
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Secretary of the Party Committee and the Chairman of the Board of the Company, as well as the Secretary of the
Party Committee and the Chairman of the Board of Wuliangye Group.
(2) Mr. Jiang Wenge, a master's degree holder. He began to work in August 1985 and successively served in
Peng'an County and Shunqing District of Nanchong City, Sichuan, the Sichuan Provincial Development and
Reform Commission, and the Welfare-to-work Office of Sichuan Province. He once served as the Deputy Head of
Shunqing District Government, Deputy Director of the Employment and Income Distribution Office, Deputy
Director of the Division of Rural Economy, and Director of the Division of Rural Economy of Sichuan Provincial
Development and Reform Commission, and the Deputy Director and Primary Investigator of the Welfare-to-work
Office of Sichuan Province. He now serves as the Deputy Secretary of the Party Committee, Vice Chairman of the
Board, and General Manager of the Company.
(3) Ms. Xu Bo, a bachelor's degree holder, Vice Chairman of Yibin Municipal Committee of the Kuomintang
Revolutionary Committee, a member of the Provincial Committee of the Kuomintang Revolutionary Committee.
She began to work in December 1983 and successively served in the Electronic Education Company of the Yibin
Education Bureau and the Yibin City Bureau of Audit. She once served as the Deputy Head, Head, and Deputy
Director of the Yibin City Bureau of Audit. She now serves as a Director of the Company, as well as a Director
and the General Manager of Yibin Development Group.
(4) Mr. Zhang Yu, a doctoral degree holder. He began to work in July 1997 and successively served in the
Chengdu Education Bureau, Qingyang District Government and Xindu District Committee. He once served as
Secretary of Party Committee, Director, and Party Group Secretary of the District Education Bureau, a member of
the Party Group of the District Government, Deputy District Chief, a member of the Standing Committee of
District Committee and Director of the Organization Department of the District Government, Deputy Secretary of
the Party Committee of Wuliangye Group from April to December 2020, and Deputy Secretary of the Party
Committee of the Company from December 2020 to December 2021. He has been a member of the Party
Committee of the Company since December 2021 and is also a Director-to-be and Vice Chairman of the
Board-to-be of the Company.
(5) Mr. Xiao Hao, a master's degree holder. He began to work in July 1998. He successively served in
Organization Department of Xijie Town, Yibin County and the County Party Committee, Organization
Department of Yibin Municipal Party Committee, and Yibin Municipal Party Committee Office. He successively
served as the Deputy Director of Municipal Party Construction Office, Deputy Director of Municipal Party
Committee Office, Director of the Standing Committee Office of the Municipal Party Committee, and Deputy
Secretary-General of the Municipal Party Committee. He served as the Deputy Secretary of the Party Committee
of Wuliangye Group from December 2020 to December 2021. He has been the Deputy Secretary of the Party
Committee of the Company since December 2021, and serves as the Deputy Secretary of the Party Committee of
Wuliangye Group from March 2022. He is a Director-to-be of the Company.
(6) Ms. Jiang Lin, a doctoral degree holder. She began to work in July 2004 and successively served in
Research Office of Chongqing Municipal Government, Research Office of Chengdu Municipal Committee,
Chengdu Finance Office, Tianfu International Fund Area, and Wanchuang Investment Holdings Chengdu Co., Ltd.
She once served as the Deputy Head of the Economy Division of the Research Office of Chengdu Municipal
Committee, Deputy Head and Head of the Capital Market Division of the Chengdu Finance Office, Director and
General Manager of the Tianfu International Fund Area, and Deputy General Manager of Wanchuang Investment
Holdings Chengdu Co., Ltd. She now serves as a member of the Party Committee, Director, Deputy General
Manager and Board Secretary of the Company.
(7) Mr. Zhou Yousu, a bachelor's degree holder and 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
40
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
as a researcher and professor of Sichuan Academy of Social Sciences, Independent Director of the Company,
Independent Director of Chengdu Huasun Technology Group Inc., Ltd., Independent Director of Sichuan
Road&Bridge Co., Ltd., and Independent Director of Sichuan Development Lomon Co., Ltd.
(8) Mr. Gan Shengdao, a doctoral degree holder and professor. He has been working on the teaching and
scientific research of financial management and accounting in Sichuan University since July 1990. He now serves
as a professor, doctoral supervisor, post-doctoral co-supervisor in accounting of Business School, Sichuan
University, Independent Director of the Company, Independent Director of RYCHIP Semiconductor Inc. Ltd.,
Independent Director of Chengdu XGimi Technology Co., Ltd., Independent Director of Chengdu RML
Technology Co., Ltd., and Outside Director of Sichuan Fortune Enterprises M&A Investment Co., Ltd.
(9) Mr. Xie Zhihua, a doctoral degree holder, professor, certified public accountant, and Expert of the Special
Government Allowances of the State Council. He began to work in June 1976 and successively served in Xiangxi
Autonomous Prefecture Commercial School, Beijing Business School, and Beijing Technology and Business
University. He once served as the Deputy Director, Director, Director of the Academic Affairs Department, and
Vice President of the Accounting Faculty of Beijing Business School, and a member of the Party Committee and
Vice President of Beijing Technology and Business University. He now serves as the Independent Director of the
Company, Professor of Beijing Technology and Business University, Independent Director of BJB (Beijing)
Information Technology Co., Ltd., and Independent Director of China Non-ferrous Metal Industry's Foreign
Engineering and Construction Co., Ltd.
(10) Mr. Wu Yue, a doctoral degree holder and professor. He now serves as the Professor at the School of
Law of Southwestern University of Finance and Economics, and concurrently serves as the Vice President of
Sichuan Business Law Research Association, Executive Director of China Business Law Research Association,
Arbitrator of China International Economic and Trade Arbitration Commission, and Arbitrator of Chengdu
Arbitration Commission, and Independent Director of the Company, Independent Director of Chengdu Corpro
Technology Co., Ltd., Independent Director of Sichuan MIngxing Electric Power Co., Ltd., and Independent
Director of Sichuan Jule Food Co., Ltd.
(11) Mr. Liu Ming, a bachelor's degree holder, senior engineer, and China Liquor Brewing Master,
national-level specially-invited Baijiu appraisal committee member. He began to worked in Wuliangye distillery
in December 1986 and once served as the Deputy Director and Director of the workshop, and concurrently served
as the Deputy Secretary of the Party Branch, Secretary of the Party Branch, President of the Branch Labor Union,
Secretary of the Party General Branch and Chairman of Yibin Changjiangyuan Liquor Co., Ltd., Assistant to the
General Manager and Director of the Production Management Department of the Company. He served as the
Chief Engineer of the Company from July 2021 to March 2022. He has been a member of the Party Committee of
the Company since February 2022 and a candidate for the supervisor of the Company and for the chairman of the
Supervisory Committee of the Company since March 2022.
(12) Ms. Liu Feng, a bachelor's degree holder. She began to work in July 1990 and once served in Yibin
Tianyuan Group Co., Ltd., Yibin Agricultural Machinery Bureau, and Yibin Civil Air Defense Office. She once
served as the headmaster of the technical school, Deputy Director of the Design and Research Institute and
Deputy Director of the Staff Education Institute of Yibin Tianyuan Group Co., Ltd., a member of the Party Group
of the Yibin Civil Air Defense Office, head of the discipline inspection team, and the special inspector for
discipline inspection and supervision. She now serves as a Supervisor of the Company, as well as a member of the
Party Committee and Secretary of the Commission for Discipline Inspection of Yibin Development Group.
(13) Mr. Zhang Xin, a master's degree holder. He once successively served in Yibin Regional Bureau of
Finance, Yibin Regional State-owned Assets Supervision and Administration Commission. He once successively
served as the Full-time Deputy Secretary of Institutional Party Committee and Head of the Asset Management
41
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Section. He has been a member of the Party Committee and Deputy General Manager of Yibin Development
Group since December 2020. He has been a supervisor candidate for the Company since December 2021.
(14) Mr. Wu Guoping, a bachelor's degree holder, auditor and senior sourcer. He began to work in August
1989 and once served in Audit Bureau and Finance Bureau of Cuiping District, Yibin City, Yibin City Bureau of
Audit. He was transferred to the Company and served as the Deputy Director of the Audit Affairs Department in
May 2015, Employee Supervisor of the Company in June 2015, and Deputy Director of the Audit Department in
July 2015. He now serves as an Employee Supervisor and the Deputy Director of the Audit and Supervision
Department of the Company, as well as a Supervisor of Wuliangye Group.
(15) Ms. Cao Hongying, a junior college graduate and senior engineer. She began to work in December 1981
and served as the Deputy Director of the Product R&D Department of the Company in December 2012, Secretary
of Party Committee of Workshop 506 of the Company in August 2017, and Secretary of Party Committee and
Director of Workshop 506 of the Company in May 2018. She now serves as an Employee Supervisor, Secretary of
the Party Branch and the Director of Workshop 506, and the Director of the Baijiu Body Design Center of the
Company.
(16) Mr. Luo Wei, a master's degree holder. He began to work in July 1986 and once served in Yibin
Municipal Bureau of Finance, Municipal Audit Bureau, Municipal Investment Group Co., Ltd., and Yibin Airport
Co., Ltd. He once served as the Deputy Director of Yibin Municipal State-owned Assets Supervision and
Administration Commission, a member of the Party Group and head of the discipline inspection team of Yibin
Municipal Audit Bureau, a member of the Party Committee, Vice President and Chief Accountant of Yibin Paper
Industry Co., Ltd., a member of the Party Committee and Deputy General Manager of Yibin Investment Group
Co., Ltd., and Deputy Secretary of the Party Committee and General Manager of Yibin Airport Co., Ltd. He now
serves as a member of the Party Committee, Deputy General Manager, and Chief Financial Director of the
Company.
(17) Mr. Zhao Dong, a bachelor's degree holder, senior engineer, and China Liquor Brewing Master. He
began to work in August 1986 and served in Wuliangye distillery in May 1989. He once served as the Secretary of
Party Committee and Director of Workshop 607 of Wuliangye distillery, Director of the Technology Research
Center of the Company, Secretary of the Eleventh Party Branch and President of the Branch Labor Union, and
Deputy General Manager and Deputy Chief Engineer of the Company. He has been a member of the Party
Committee and the Chief Engineer of the Company since March 2022.
(18) Mr. Jiang Jia, a bachelor's degree holder and senior economist. He began to work in Wuliangye distillery
in July 1997 and once served as the Deputy General of the Sales Department, Deputy General of the Brand Affairs
Department of Brand Distributors, Deputy Director and Director of the Strategic Development Department, and
Chairman of Wuliangye Health Wine Company. He served as a member of the Party Committee and Chief
Economic Engineer of Wuliangye Group in April 2020 and has been a member of the Party Committee and the
Chief Economist of the Company since March 2022.
(19) Mr. Yue Song, a bachelor's degree holder and senior brewing technician. He served in the People's
Liberation Army Navy in December 1990 and worked in Wuliangye distillery in December 1995. He once served
as the Deputy Director of the Company Office, Deputy Director of the Office of the Board of Directors, Secretary
of Party Committee and President of the Branch Labor Union of Workshop 505 and Workshop 523, General
Manager and President of the Branch Labor Union of Sichuan Wuliangye Culture Tourism Co., Ltd., Secretary of
the Party General Branch and Chairman of Yibin Changjiangyuan Liquor Co., Ltd., and General Engineer of
Wuliangye Group. He has been a Deputy General Manager of the Company since March 2022.
(20) Mr. Liu Yang, a bachelor's degree holder. He began to work in July 2001 and served in Meishan City
from July 2001 to May 2017. He once served as the Deputy County-level Official of Meishan City and Director of
42
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
the Economic Cooperation Bureau of Meishan Municipal Government in Beijing. He worked in Yibin City from
May 2017 to December 2021 and served as the Director of the Liaison Office of Yibin Municipal Government in
Beijing (and concurrently the Director of the Beijing Branch of the Municipal Economic Cooperation and Foreign
Affairs Bureau). He has been a Deputy General Manager of the Company since December 2021.
(21) Mr. Li Jian, a doctoral degree holder. He began to work in October 1995 and once served in the Housing
and Urban-Rural Development Bureau of Changning County, Education and Sports Bureau of Yibin City, and
Shunan Culture & Tourism Group. He once served as a member of the Party Committee and Deputy General
Manager of Shunan Culture & Tourism Group. He has been a Deputy General Manager of the Company since
December 2021.
Offices held concurrently in shareholding entities:
√ Applicable □ Not applicable
Start of End of
Paid by the entity
Name Shareholding entity Office held in the entity office office
or not
term term
Sichuan Yibin Wuliangye Group Secretary of the CPC Committee and
Zeng Congqin No
Co., Ltd. Chairman of the Board
Yibin Development Holding Group
Xu Bo Director and General Manager Yes
Co., Ltd.
Member of the CPC Committee and
Yibin Development Holding Group
Liu Feng Secretary of the Commission for Yes
Co., Ltd.
Discipline Inspection
Offices held concurrently in other entities:
√ Applicable □ Not applicable
Start of End of
Paid by the entity
Name Other entity Office held in the entity office office
or not
term term
Sichuan Yibin Wuliangye Group Finance Co., Ltd.,
Yibin Wuliangye Fund Management Co., Ltd.,
Jiang Lin Director No
Sichuan Bank Company Limited, and Sichuan
United Liquor Exchange Co., Ltd.
Sichuan Academy of Social Sciences Researcher Yes
Chengdu Huasun Technology Group Inc., Ltd.,
Zhou Yousu
Sichuan Road&Bridge Co., Ltd., and Sichuan Independent Director Yes
Development Lomon Co., Ltd.
Professor, doctoral
supervisor, and
Sichuan University post-doctoral Yes
Gan
co-supervisor in
Shengdao
accounting
Chengdu RYCHIP Semiconductor Inc. Ltd.,
Independent Director Yes
Chengdu XGimi Technology Co., Ltd., and RML
43
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Technology Co., Ltd.
Sichuan Fortune Enterprises M&A Investment Co.,
Outside Director Yes
Ltd.
Beijing Technology and Business University Teaching Yes
BJB (Beijing) Information Technology Co., Ltd.
Xie Zhihua
and China Non-ferrous Metal Industry's Foreign Independent Director Yes
Engineering and Construction Co., Ltd.
Professor of School of
Southwestern University of Finance and Economics Yes
Law
Wu Yue Chengdu Corpro Technology Co., Ltd., Sichuan
MIngxing Electric Power Co., Ltd., and Sichuan Independent Director Yes
Jule Food Co., Ltd.
Punishments imposed in the recent three years by the securities regulator on the incumbent directors,
supervisors and senior management as well as those who resigned in the Reporting Period:
□ Applicable √ Not applicable
3. Remunerations of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remunerations for directors,
supervisors and senior management:
(1) Decision-making procedure
In accordance with the relevant rules of the higher organization and the Company, the remuneration plan for
the senior management of the Company is formulated, then submitted to the Remuneration and Appraisal
Committee under the Board of Directors for review, and then finalized by the Board of Directors.
(2) Basis for the determination of remunerations
In accordance with the relevant rules, the remunerations for directors, supervisors and senior management are
determined upon appraisal.
(3) Actual payments
Part of the base pay is given on a monthly basis, and part of the performance-related pay is given within the
year.
Remunerations of directors, supervisors and senior management during the Reporting Period
Unit: RMB'0,000
Total before-tax
Paid by any
remunerations
Name Office title Gender Age Status related party or
from the
not
Company
Zeng Congqin Chairman of the Board Male 53 Incumbent 99.35 No
Vice Chairman of the Board and Incumbent
Jiang Wenge Male 55 77.43 No
General Manager
Xu Bo Director Female 54 Incumbent Yes
Director, Deputy General Incumbent
Jiang Lin Female 42 Yes
Manager and Board Secretary
Zhou Yousu Independent Director Male 69 Incumbent 10 No
44
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Gan Shengdao Independent Director Male 55 Incumbent 10 No
Xie Zhihua Independent Director Male 62 Incumbent 6 No
Wu Yue Independent Director Male 55 Incumbent 6 No
Supervisor and Chairman of the Male Incumbent
Liu Ming 51 248.92 No
Supervisory Committee-to-be
Liu Feng Supervisor Female 52 Incumbent Yes
Wu Guoping Employee Supervisor Male 52 Incumbent 72.21 Yes
Cao Hongying Employee Supervisor Female 55 Incumbent 255.99 No
Deputy General Manager and Incumbent
Luo Wei Male 57 77.43 No
CFO
Zhao Dong Chief Engineer Male 57 Incumbent 77.86 No
Liu Yang Deputy General Manager Male 43 Incumbent No
Li Jian Deputy General Manager Male 47 Incumbent No
Li Shuguang Director Male 59 Former 86.57 No
Vice Chairman of the Board and
Zou Tao Male 43 Former 80.01 No
General Manager
Tang Former
Deputy General Manager Male 59 77.84 No
Shengyun
Jiang Chairman of the Supervisory Former
Male 51 86.77 Yes
Wenchun Committee
Yang Ling Supervisor Female 35 Former Yes
Fu Nanping Independent Director Male 60 Former 5 No
Zhu Zhongyu Deputy General Manager Male 58 Former 63.15 No
Tang Bochao Deputy General Manager Male 57 Former 62.94 No
Lang Former
Independent Director Male 56 4.2 No
Dingchang
Total -- -- -- -- 1,407.67 --
Note: The remunerations of Mr. Zeng Congqin included part of his remunerations for 2019. Ms. Jiang Lin
served as a Director during the Reporting Period, and has become a Deputy General Manager and the Board
Secretary since March 2022. Mr. Liu Yang and Mr. Li Jian took office in the Company in late December 2021. Mr.
Jiang Wenchun served as the Chairman of the Supervisory Committee from June to December 2021. His
remunerations included the allowances for serving as the Assistant to General Manager from January to March
2020 but did not include the pay of RMB183,100 for serving in Wuliangye Group. Mr. Wu Guoping was given a
pay of RMB37,100 by Wuliangye Group.
6. Activities of Directors during the Reporting Period
1. Board Meetings Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Resolutions
The Proposal on the Comprehensive
The 83rd Meeting of the Fifth
06-11 January 2021 N/A Budget Adjustment Plan for 2020
Board of Directors
was approved.
The 84th Meeting of the Fifth 01-03 February 2021 6 February 2021 See Announcement 2021/No. 003
45
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Board of Directors
The Proposal on the Incorporation of
th
The 85 Meeting of the Fifth Joint Venture Chinese Baijiu
05-07 February 2021 N/A
Board of Directors Education Technology Co., Ltd. was
approved.
The Proposal on Adjustments to the
th
The 86 Meeting of the Fifth Investment in the Distillery Waste
8 February 2021 N/A
Board of Directors Water Comprehensive Treatment
Project was approved.
th
The 87 Meeting of the Fifth
25 April 2021 28 April 2021 See Announcement 2021/No. 007
Board of Directors
The Proposal on the Adjustment of
the Name of the 120,000-ton
Eco-friendly Brewing Project (Phase
The 88th Meeting of the Fifth
25 May 2021 N/A II) Supporting Facilities Project to
Board of Directors
“523 Workshop to Liujiacao Region
Road and Ancillary Project” was
approved.
The Proposal on the Construction of
th
The 89 Meeting of the Fifth a New Centralized Sewage
31 May-8 June 2021 N/A
Board of Directors Treatment Plant (Project
Establishment) was approved.
The 90th Meeting of the Fifth
2 June 2021 4 June 2021 See Announcement 2021/No. 015
Board of Directors
The Proposal on the Acceptance of
st
The 91 Meeting of the Fifth Expropriation of Properties in Front
20 July 2021 N/A
Board of Directors of the Company’s Plant was
approved.
The 92nd Meeting of the Fifth
20 July 2021 22 July 2021 See Announcement 2021/No. 023
Board of Directors
The 93rd Meeting of the Fifth
29 July 2021 30 July 2021 See Announcement 2021/No. 024
Board of Directors
The 94th Meeting of the Fifth
25 August 2021 30 August 2021 See Announcement 2021/No. 025
Board of Directors
The 95th Meeting of the Fifth The Third Quarterly Report 2021
26-28 October 2021 N/A
Board of Directors was approved.
The Proposal on the Issuance of a
Principal Shareholder Commitment
The 96th Meeting of the Fifth
25-30 November 2021 N/A Letter to Sichuan Yibin Wuliangye
Board of Directors
Group Finance Co., Ltd. was
approved.
The 97th Meeting of the Fifth 14-27 December 2021 28 December 2021 See Announcement 2021/No. 036
46
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Board of Directors
The 98th Meeting of the Fifth
27 December 2021 28 December 2021 See Announcement 2021/No. 037
Board of Directors
The Proposal on the Comprehensive
The 99th Meeting of the Fifth
30 December 2021 N/A Budget Adjustment Plan for 2021
Board of Directors
was approved.
2. Attendance of Directors at Board Meetings and General Meetings of Shareholders
Attendance of directors at board meetings and general meetings of shareholders
Board
Total number General
meetings Board Board
of board Board The director failed to meetings
attended by meetings meetings the
meetings the meetings attend two of
Director way of attended director
director was attended on consecutive board sharehold
telecommunica through a failed to
supposed to site meetings or not ers
tion or proxy attend
attend attended
circulation
Zeng Congqin 17 2 15 0 0 No 1
Li Shuguang 17 0 17 0 0 No 1
Zou Tao 17 2 15 0 0 No 1
Jiang Wenge 17 2 15 0 0 No 1
Xu Bo 9 1 8 0 0 No 1
Jiang Lin 9 1 8 0 0 No 1
Fu Nanping 8 1 7 0 0 No 1
Zhou Yousu 17 2 15 0 0 No 1
Gan Shengdao 17 2 15 0 0 No 1
Xie Zhihua 9 1 8 0 0 No 1
Wu Yue 9 1 8 0 0 No 1
Lang Dingchang 4 1 3 0 0 No 1
Explanation of why any director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate whether any director raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
4. Other Information about the Activities of Directors
Indicate whether any recommendation from directors was adopted by the Company.
√ Yes □ No
Explanation on adoption/rejection of recommendations of directors:
During the Reporting Period, in strict compliance with the applicable laws, regulations and the Articles of
47
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Association, the directors of the Company performed their duties diligently, providing professional opinion or
recommendations for business decisions of the Company. They have played their part in protecting the legitimate
rights and interests of the Company and its shareholders.
VII Activities of Special Committees under the Board of Directors during the Reporting
Period
The Board of Directors of the Company has set up five special committees, including the Strategy
Committee, the Audit Committee, the Nomination Committee, the Remuneration and Appraisal Committee, and
the Comprehensive Budget Management Committee.
1. Strategy Committee
In the Reporting Period, the Strategic Committee of the Company convened three meetings according to the
relevant requirements of the Implementation Rules for Strategic Committee of the Company, hearing reports on
the preparation work of the "14th Five-Year Plan", the work summary of the first half of the year, the promotion
of key projects, the three-year action plan for the reform of state-owned enterprises, and marketing.
2. Audit Committee
In the Reporting Period, the Audit Committee was diligent and responsible in performing the responsibilities
required by the system: (1) reviewed the Company's 1st quarter report of 2021, semi-annual report of 2021, and
the 3rd quarter report of 2021 and formed resolutions; (2) reviewed the Company's renewal of employment of the
accounting firm in 2022 and the audit budget, and formed resolutions; (3) determined the timing of audit of the
financial and accounting statements 2021 through consultation with the accounting firm responsible for annual
audit of the Company; (4) reviewed, for the first time, the summary financial and accounting statements of 2021
prepared by the Department of Finance of the Company before entry of the certified public accountants (CPA) for
the annual audit, and provided written comments; (5) after entry of the CPA for annual audit, the Audit
Committee and the CPAs for annual audit communicated about problems found during the audit and the time for
submitting the audit report; and (6) the Audit Committee further reviewed the Company's financial and accounting
statements 2021 and formed resolutions after the CPAs for the annual audit issued the preliminary audit opinions.
3. Nomination Committee
The Nomination Committee convened three meetings in the Reporting Period according to relevant
provisions of the Implementation Rules for Nomination Committee of the Company, and agreed to nominate Ms.
Xu Bo as a candidate for director, nominate Mr. Zou Tao and Mr. Liu Ming as candidates for officers, nominate
Mr. Zhang Yu as a candidate for director, and nominate Mr. Liu Yang and Mr. Li Jian as candidates for officers.
4. Remuneration and Appraisal Committee
The Remuneration and Appraisal Committee convened two meetings in the Reporting Period according to
relevant provisions of the Implementation Rules for Remuneration and Appraisal Committee, and issued audit
opinion on the prepayment of some annual performance-based salaries for the Company's senior executives in the
first half of 2021 and the prepayment of the remuneration of the Company's senior executives in 2020.
5. Comprehensive Budget Management Committee
The committee convened two budge work meetings in the Reporting Period according to the Implementation
Rules for Comprehensive Budget Management Committee of the Company, and deliberated and approved the
Annual Budget Scheme 2021 and the Comprehensive Budget Adjustment Scheme 2021. The schemes mentioned
above were submitted to the Board of Directors for deliberation and approval.
VIII Activities of the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in the
48
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Reporting Period.
□ Yes √ No
The Supervisory Committee raised no objections with respect to matters of the Company.
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at
17,446
the period-end
Number of in-service employees of major subsidiaries at the
8,357
period-end
Total number of in-service employees at the period-end 25,803
Total number of paid employees in the Reporting Period 25,803
Number of retirees to whom the Company as the parent and its
299
major subsidiaries need to pay retirement pensions
Functions
Function Number of employees
Production 19,381
Sales 1,159
Technical 4,050
Financial 205
Administrative 1,008
Total 25,803
Educational backgrounds
Educational background Number of employees
Junior college and beyond 6,913
High school to junior college (exclusive) 11,472
Middle school and below 7,418
Total 25,803
2. Remuneration Policy
The remuneration policies 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), and the Company's Interim
Provisions on Wage Management and the Trial Measures for the Management of Total Wages of Subsidiaries.
3. Training Plans
In 2022, training work of the Company will center on the strategy of "Reform, Innovation, Transformation,
and Development", focus on the building of the talent team and strengthen the foundation of innovation and
development. The Company will carry out hierarchical and classified trainings with rich contents and by flexible
means based on the demand of the Company for reform and development and the demands of employees for
diversified trainings, enhancing the planning, pertinency and effectiveness of educational training. The Company
plans to carry out 130 trainings at company level, 111 trainings at department level, 238 trainings at workshop
49
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
level, 134 external trainings, and 54 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
During 2021, the Company and its major majority-owned subsidiaries outsourced carriage, loading and
unloading, temporary work, etc., for which they paid RMB132 million in total.
X Profit Distributions in the Form of Cash and/or Shares
The formulation, implementation and amendments to the profit distribution policy, especially the cash
dividend policy, in the Reporting Period:
√ Applicable □ Not applicable
According to the 2020 Final Dividend Plan approved at the 2020 Annual General Meeting of Shareholders,
the Company declared a cash dividend of RMB25.8 (tax inclusive) per 10 shares to shareholders based on the
total 3,881,608,005 shares held by them. The independent directors issued their opinion on the final dividend plan,
which was approved by the Board of Directors and then at the general meeting of shareholders. This final
dividend plan has been carried out on 9 July 2021.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting of shareholders
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully Yes
protected
In case of adjusting or altering the cash dividend policy, the
conditions and procedures involved are in compliance with Yes
applicable regulations and transparent
Indicate whether the Company fails to put forward a cash dividend plan despite the facts that the Company
has made profit in the Reporting Period and the profit of the Company as the parent distributable to shareholders
is positive.
□ Applicable √ Not applicable
Final dividend plan for the Reporting Period:
√ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 30.23
Bonus issue from capital reserves (share/10 shares) 0
Share base (share) 3,881,608,005
50
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Cash dividends (RMB) (tax inclusive) 11,734,100,999.12
Cash dividends in other forms (such as share repurchase)
0
(RMB)
Total cash dividends (including those in other forms) (RMB) 11,734,100,999.12
Distributable profit (RMB) 47,031,016,639.11
Total cash dividends (including those in other forms) as % of
100%
the total profit to be distributed
Applicable cash dividend policy
Where the Company is at a mature stage of development and has any substantial spending plan, total cash dividends shall account
for at least 40% of the total profit to be distributed.
Final dividend plan in detail
As the 2021 final dividend plan, the Company intends to pay a cash dividend of RMB30.23 (tax inclusive) per 10 shares to
shareholders based on the total share capital at the record date for the dividend payout, with the total amount to be distributed
amounting to RMB11,734,100,999.12; and no bonus issue will be carried out, either from profit or capital reserves.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
√ Applicable □ Not applicable
1. Equity Incentives
Not applicable.
Equity incentives received by directors and senior management:
□ Applicable √ Not applicable
Appraisal mechanism and incentives for senior management:
See “Part IV, V, 3. Remunerations of Directors, Supervisors and Senior Management” herein.
2. Employee Stock Ownership Plans
√ Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
Total number of
Number of As % of the total share capital
Scope of employees shares held under the Change Funding source
employees of the Company
plans
Employees covered
2,428 23,696,280 N/A 0.61% Self-pooled
by the plans
Shareholdings of directors, supervisors and senior management under employee stock ownership plans
during the Reporting Period:
In April 2018, the Company carried out an employee stock ownership plan through a private placement. As
of the end of the Reporting Period, certain incumbent directors, supervisors and senior management participated
in the employee stock ownership plan through an asset management plan of Guotai Junan.
Change of the asset management agency during the Reporting Period:
□ Applicable √ Not applicable
51
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Equity changes incurred by the disposal of shares by any holder, etc. during the Reporting Period:
□ Applicable √ Not applicable
Exercise of shareholder rights during the Reporting Period:
□ Applicable √ Not applicable
Other information about the employee stock ownership plans during the Reporting Period:
√ Applicable □ Not applicable
During the Reporting Period, as approved at the first general meeting of holders under the employee stock
ownership plan in 2021 and the first meeting of the management committee of the employee stock ownership plan
in 2021, 50% of the 23,696,280 shares subscribed for by 2,428 employees under the employee stock ownership
plan through a private placement were transferred in advance to the securities accounts of the holders by way of a
“non-transaction transfer”. According to the Confirmation on Securities Ownership Transfer and Registration
issued by the Shenzhen branch of China Securities Depository and Clearing Corporation Limited, as of the end of
the Reporting Period, a total of 10,470,000 shares have been transferred to 2,408 holders by way of a
“non-transaction transfer” under the employee stock ownership plan. The Company carries out the transfers and
management under the employee stock ownership plan based on different awardees and by instalments.
Changes to members of the management committees of employee stock ownership plans:
□ Applicable √ Not applicable
The financial impact of employee stock ownership plans on the Company and the relevant accounting
treatments during the Reporting Period:
□ Applicable √ Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable √ Not applicable
Other informatoin:
Not applicable.
3. Other Incentive Measures for Employees
□ Applicable √ Not applicable
XII Establishment and Implementation of Internal Controls during the Reporting Period
1. Establishment and Implementation of Internal Controls
In 2021, in accordance with the requirements of laws and regulations such as the Company Law and the
Basic Criteria of Enterprise Internal Control, the Company continuously established institutional norms for Party
building, business operation, personnel management, and logistics support, and continued to improve the internal
control system. The Company conducts internal control self-assessment work with full participation in accordance
with national regulations every year. It set up steering groups for internal control self-assessment to guide a total
of 58 units including workshops, functional departments and subsidiaries to carry out internal control
self-assessment work and at the same time, set up groups for random inspection of internal control to conduct
random inspection on the construction and implementation of the Company's internal control system, focused on
major business segments such as procurement and sales, production, and capital management, evaluated the
rationality of the design and the effectiveness of the operation of the internal control system, so as to continuously
optimized internal control. The evaluation results showed that no material and significant deficiency was
identified in the internal control system. In the future, the Company will continuously focus on the construction
and implementation of the internal control system so that the internal control work can reach a higher level.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
2. Material Defects in Internal Control Identified during the Reporting Period
□ Yes √ No
XIII Management and Control of Subsidiaries during the Reporting Period
Problems
Name of Integration
Integration plan encountered in the Measures taken Progress Subsequent plan
company progress
integration
N/A
XIV Self-assessment Report or Independent Auditor’s Report on Internal Control
1. Self-assessment Report on Internal Control
Date of full disclosure of the internal control assessment report 29 April 2022
Index of full disclosure of the internal control assessment report http://www.cninfo.com.cn
Ratio of the total assets of the organizations included in the assessment to
100.00%
the Company's consolidated total assets
Ratio of the operating revenue of the organizations included in the
assessment to the Company's operating revenue in the consolidated 100.00%
financial statements
Deficiency identification criteria
Category Financial report Non-financial report
1. Material deficiencies: (1) correction by the 1. Material deficiencies: (1) in violation of
Company of the financial statement which have national laws, regulations, or normative
been published. (2) major misstatements found documents. (2) unscientific enterprise
by the external auditor in current financial decision-making procedure, such as wrong
statements which have not been identified. (3) decision, which causes failure of major
corrupt practice of directors, supervisors, and transactions. (3) loss of management personnel
officers found by the external auditor. (4) or technician of important posts. (4) lack of
ineffective supervision of internal control by the institutional control or systematic failure of the
Company's internal audit department. (5) institution for important businesses, and existing
material deficiencies previously found but were but ineffective operation of institutional
not corrected within a reasonable period or were guidance for internal control of important
Qualitative criteria
ineffectively corrected. economic business. (5) failure to correct material
2. Significant deficiencies: (1) failure to select deficiencies within a reasonable period.
and apply accounting policies in accordance 2. Significant deficiencies: (1) property loss not
with generally accepted accounting policies. (2) reaching or exceeding the level of materiality but
failure to effectively control irregular should be noticed by the Board of Directors and
(non-repeating) or complicated transactions. (3) the management in nature. (2) individual events
failure to effectively control the anti-corrupt criticized by government departments, causing
work. (4) ineffective internal control over the moderate negative influence on reputation of the
financial report at the end of the period. Company. (3) violation of internal rules and
3. General deficiencies: deficiencies other than regulations of the enterprise and causing losses.
material deficiencies and significant (4) deficiency in important business mechanism
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
deficiencies are recognized as general or system.
deficiencies. 3. General deficiencies: deficiencies in internal
control other than material deficiencies and
significant deficiencies are general deficiencies.
1. Material deficiencies: misstatement
amount >3% of total operating revenue;
misstatement amount >10% of net profit;
misstatement amount >3% of total assets.
2. Significant deficiencies: 1% of total 1. Material deficiencies: proportion of loss to net
operating revenue < misstatement amount ≤3% profit ≥5%.
of total operating revenue; 5% of net profit < 2. Significant deficiencies: 3%≤ proportion of
Quantitative criteria
misstatement amount ≤10% of net profit; 1% of loss to net profit <5%.
total assets < misstatement amount ≤3% of total 3. General deficiencies: proportion of loss to net
assets. profit <3%.
3. General deficiencies: misstatement amount
≤1% of total operating revenue; misstatement
amount ≤5% of net profit; misstatement amount
≤1% of total assets.
Number of material deficiencies
0
in financial reports
Number of material deficiencies
0
in non-financial reports
Number of significant
0
deficiencies in financial reports
Number of significant
deficiencies in non-financial 0
reports
2. Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph
Sichuan Huaxin (Group) CPA (LLP) is of the opinion that the Company maintained, in all material respects, effective internal
control over financial reporting as of 31 December 2021, based on the Basic Rules on Enterprise Internal Control and other
applicable regulations.
Report disclosed or not Disclosed
Disclosure date 29 April 2022
Index to the disclosed report http://www.cninfo.com.cn
Type of opinion Unmodified unqualified opinion
Material defects in internal control
N/A
not related to financial reporting
Indicate whether any modified opinion is expressed in the Independent Auditor’s Report on Internal Control.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
□ Yes √ No
Indicate whether the Independent Auditor’s Report on Internal Control is consistent with the internal control
self-assessment report issued by the Company’s Board of Directors.
√ Yes □ No
XV Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
In December 2020, the China Securities Regulatory Commission issued the Announcement on Launching a
Special Campaign to Improve the Governance of Listed Companies (CSRC Announcement [2020] No. 69) The
Company conducted a self-evaluation against the list and found that there was a situation where the Board of
Directors had expired but had not been re-elected in time. In the Reporting Period, the Company actively
promoted the re-election according to the procedures. On 27 April 2022, the Proposal on the Election of the Board
of Directors of the Company was submitted to the 6th Meeting of the 5th Board of Directors in 2022 for
deliberation and approval, and it still needs to be submitted to the general meeting of shareholders for approval.
For details, see the Company's 2022/No. 011 announcement.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate whether the Company or any of its subsidiaries was identified as a major polluter by environmental
authorities.
√ Yes □ No
Name of
Numb Total Approved
the Distributio
Way of er of discha total
Compan Major n of Discharge Governing discharge Excessive
dischar discha rge discharge
y or pollutants discharge concentration standards discharge
ge rge (metri (metric
subsidiar outlets
outlets c ton) ton)
y
COD 18.53mg/L 82 198 N/A
Discharge Table 1 of the Discharge
Ammonia
Direct outlets at 0.47 mg/L Standard of Water 2 14.85 N/A
The nitrogen
discharg 1 Wuliangye Pollutants in Minjiang and
Company Total nitrogen 6.6 mg/L 28 74.25 N/A
e Ecological Tuojiang Rivers
Total
Wetland 0.25 mg/L （DB51/2311-2016） 1 2.48 N/A
phosphorus
Table 3 of the Emission
Natural gas
Standard of Air Pollutants
boilers
Not detected for Coal-burning N/A N/A
(Phase I)
Oil-burning Gas-fired
1#-9#
Boiler（GB13271-2014）
Table 3 of the Emission
Natural gas
Standard of Air Pollutants
boilers
Organiz 18 for Coal-burning 0.8 N/A N/A
(Phase II)
ed and Oil-burning Gas-fired
10#-15#
The intermitt Boiler（GB13271-2014）
Sulfur dioxide
Company ent Table 3 of the Emission
Natural gas
discharg Standard of Air Pollutants
boilers
e Not detected for Coal-burning N/A N/A
(Phase III)
Oil-burning Gas-fired
16#-18#
Boiler（GB13271-2014）
Table 3 of the Emission
Hot water Standard of Air Pollutants
5 boilers for Coal-burning 0.001 N/A N/A
1#-5# Oil-burning Gas-fired
Boiler（GB13271-2014）
The Organiz Natural gas Table 3 of the Emission
Oxynitride 18 71.35mg/m 104 394.8 N/A
Company ed and boilers Standard of Air Pollutants
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
intermitt (Phase I) for Coal-burning
ent 1#-9# Oil-burning Gas-fired
discharg Boiler（GB13271-2014）
e Table 3 of the Emission
Natural gas
Standard of Air Pollutants
boilers
for Coal-burning N/A
(Phase II)
Oil-burning Gas-fired
10#-15#
Boiler（GB13271-2014）
Table 3 of the Emission
Natural gas
Standard of Air Pollutants
boilers
for Coal-burning N/A
(Phase III)
Oil-burning Gas-fired
16#-18#
Boiler（GB13271-2014）
Table 3 of the Emission
Hot water Standard of Air Pollutants
5 boilers 85.23mg/m for Coal-burning 0.25 0.39 N/A
1#-5# Oil-burning Gas-fired
Boiler（GB13271-2014）
Broken Table 2 of the Integrated
Organiz leaven Emission Standard of Air
20 16.71mg/m 6.7 N/A N/A
ed and outlets Pollutants
The Particulate intermitt 1#-20# （GB16297-1996）
Company matter ent Grain Table 2 of the Integrated
discharg processing Emission Standard of Air
18 15.19mg/m 6.1 N/A N/A
e outlets Pollutants
1#-18# （GB16297-1996）
1. Construction and Operation of Pollution Control Facilities
The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone in the
Jiangbei industrial park, using biochemical treatment and Fenton treatment technology for wastewater treatment.
The advanced treated tailwater is discharged after being treated by ecological wetlands and is under good
condition.
At present, the Company has built 18 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 run
normally. The leaven production line is equipped with 20 bag-type dust collectors, and the grain processing
production line is equipped with 18 bag-type dust collectors, all of which run normally.
2. Assessment of the Environmental Impact on Construction Projects and Other Administrative Licenses of
Environmental Protection
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, carried out environmental
protection acceptance after completion, and obtained the permit for setting up sewage outlets on rivers and a
pollutant discharge permit.
3. Contingency Plan for Environmental Emergencies
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
The Company has formulated the Comprehensive Response Plan for Environmental Emergencies, which has
been filed with Yibin Environmental Protection Bureau after expert review. On 9 November 2021, the Company
carried out the "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. Environmental Self-Monitoring Plan
According to the requirements of the Self-monitoring and Information Disclosure Measure for National Key
Monitoring Enterprises (Trial) (HF [2013] No. 81) and the provisions of the pollutant discharge permit, the
Company disclosed its self-monitoring plan, 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 2021, the Company disclosed totally 142,600 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
projects and other environmental administrative licenses, contingency plans for environmental emergencies, and
annual self-monitoring plan and report of the Company to the society on a monthly basis.
5. Administrative Penalties Imposed for Environmental Issues during the Reporting Period
Company name or Regulation Remediation
Reason for penalty Penalty Impact on the Company
subsidiary name violated measures
N/A
6. Other Environmental Information that should Be Disclosed
N/A.
7. Measures Taken to Reduce Carbon Emissions in the Reporting Period and the Results
√ Applicable □ Not applicable
The biogas power demonstration project of sewage treatment plants was completed, including three 500KW
biogas generator sets with a total of 1500KW and related engineering tasks to comprehensively utilize the biogas
generated from anaerobic fermentation at Wuliangye wastewater station to generate electricity through the
self-developed new gas generator set. Waste was turned into treasure and the synergy of the reduction of pollution
and carbon emissions was achieved. The project can comprehensively utilize more than 4.4 million cubic meters
of biogas (residual gas) from Wuliangye sewage treatment plants, generate about 8.2 million kWh of electricity,
and reduce carbon dioxide emissions by about 4,300 tons every year.
8. Other Environmental Information
(1) Wuliangye 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. The Company sticked to the policy of
"low-carbon, circular and ecological development" and 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, the senior management as the Deputy Director and the first responsible person of relevant units as
members, to coordinate and organize the implementation of the Company's environmental protection work in
general. The 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 established, which is responsible for the supervision of the implementation of
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
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 specialized treatment of the "Three
Wastes" of the Company.
(3) The Company established and operated the ISO14001 environmental management system and the
ISO50001 energy management system, and in accordance with the IPCC Guidelines for National Greenhouse Gas
Inventories, the General Guideline of the Greenhouse Gas Emissions Accounting and Reporting for Industrial
Enterprises (GB/T32150-2015), the ISO14064 standard, and the Greenhouse Gas Accounting Methods,
established a greenhouse gas management program. Many rules and regulations for internal management were
formulated, such as the Environmental Protection Management System, the Measures for the Assessment of
Environmental Protection, the Environmental Protection Responsibility Investigation System, the Contingency
Plan for Environmental Emergencies, the Emergency Response Operation Plan for Heavy Pollution Weather,
Management Measures for Environmental Monitoring Information Disclosure, and Energy and Environmental
Protection Management Regulations for Construction Projects.
(4) The Company actively promoted the implementation of various special plans. According to the content of
the Company's capacity expansion plans, combined with the national "3060" plan and the Company's vision of
building a zero-carbon liquor enterprise, various aspects such as comprehensive energy consumption, energy
supply costs, pollutant emissions, and carbon emissions are taken into consideration and the preparation of green
development, carbon neutrality, and the 14th Five-Year Plan was organized and conducted.
(5) The Company actively promoted green projects
① 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, 18 horizontal type condensing natural gas boilers (20t/h)
have been built and put into operation.
② The 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, which integrates landscape function, demonstration
function, pollution control function, became a Wuliangye environmental protection image window and an
industry demonstration benchmark.
(6) In 2021, the Company treated a total of 4,209,000 tons of wastewater and the exhaust gas emissions were
about 1.6 billion cubic meters, with 100% up-to-standard discharge/emission.
(7) There was no environmental pollution accident in 2021.
(8) The comprehensive use of distilled grain was 637,000 tons in 2021 and 1.34 million cubic meters of
recycled water were used throughout the year.
II Corporate Social Responsibility (CSR)
For details, please refer to the Social Responsibility Report 2021 disclosed by the Company on 29 April
2022.
III Efforts in Poverty Alleviation and Rural Revitalization
In 2021, Wuliangye strictly implemented the requirements of the "Take off the hat without taking off
responsibility, policy, help or supervision", upheld the assistance and support philosophy of "strengthening the
linking for mindsets, mechanisms, and assistance and support for distinctive businesses", systematically
formulated a five-year plan and an annual plan for targeted assistance and support, continuously improved the
characteristic assistance and support model of "Wuliangye + village capital companies + characteristic industries
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
+ consumer markets + peasant households", focused on the industrial assistance and support, and continued to
promote the long-term development of the supported areas and improved the residents' well-being to promote
prosperity for all.
1. Focused on the construction of industrial bases and continuously unleashed the vitality of industrial
revitalization
The Company seized the development opportunities of the province's "Industrial Base Construction Action"
and "Construction of Competitive Areas of Characteristic Agricultural Products", fully implemented the
construction of industrial bases in supported areas, gave impetus to industrial development through multiple
channels, and helped regions that had shaken off poverty consolidate and expand the achievements made in
poverty alleviation. Firstly, consolidated the achievements made in the construction of the polar fruit and
vegetable (lentinus) industrial base. Based on the Litang Modern Agriculture Park, the construction of the polar
fruit and vegetable (lentinus) industrial base was promoted and the industrial system integrating production,
supply, and sales was established. In 2021, the base drove the village collective economy to achieve revenue of
more than RMB5 million, provided more than 30 fixed-term employment positions, and more than 100 seasonal
employment positions. The total salary payment of the year was nearly RMB1 million, and the total amount of
dividend distribution was RMB500,000. Secondly, actively participated in the planning and construction of the
"vegetable basket" vegetable supply base in Litang County. Naisha Village being a pilot project, a vegetable
industrial park with the whole industry chain of "standardizing front-end channels, systematizing local production
and local sales, and expanding to surrounding areas" was established. Thirdly, promoted the development of the
Wuliangye Qingshanyan Bamboo (Nursery) Industry Base. Relying on the Wuliangye Qingshanyan Bamboo
(Nursery) Industry Demonstration Base, the Company continuously developed diversified industries. The project
construction scale reached dozens of acres, effectively creating more nearby jobs for underprivileged workers and
promoting the development and growth of the village collective economy.
2. Extended the path of promoting consumer spending on products from poor areas and effectively
expanded the product consumption market
The Company upheld the philosophy of the market and established a sales system of products from the
supported areas that leverages internal and external strengths and combines online and offline channels through
domestic sales as a driving force and empowered platform resources. Firstly, strengthened the Company's vitality
of domestic sales. In 2021, the Company purchased dozens of categories of agricultural products from Litang
County, Pingshan County, and Xingwen County through normalized purchasing instead of donation and
centralized procurement in important solar terms, with a total purchase amount of more than RMB12.6 million.
Secondly, expanded channels of export sales for products. By holding many major agricultural themed events
such as special trade shows of agricultural products and the Sichuan Agricultural Expo, the Company
strengthened the communication with product channels such as supermarkets, helped the agricultural products,
such as lentinus and agaric from Litang County and other places to be sold on online sales platforms, and
effectively expanded the online and offline consumer market.
3. Enhanced the building of grassroots organizations and significantly raised the efficiency or rural
governance
Taking the actual conditions into consideration, the Company leveraged the leadership of grassroots Party
organizations in supported areas, innovated the operation mechanism of collective economic organizations, guided
village-level organizations to combine factors of production, and helped improve the quality and efficiency of
grassroots governance. Firstly, enhanced the building of grassroots Party organizations. The Company played the
role of the first resident secretary and working team in improving Party building and promoting rural revitalization,
selected and appointed five resident cadres to take temporary posts as deputy secretaries of township and town
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Party committees and first resident secretaries, enhanced the building of Party organizations, and continuously
carried out lectures on the Party's policies and principles and policies that benefit farmers and residents by means
of Party members delivering speeches on the spot, residents listening to speeches on the spot, and cadres
answering questions on the spot. Secondly, strengthened the building of collective economic organizations. The
Company continued to exert the capital leverage effect of the special funds donated to the industries in Litang
County in the early stage, with a cumulative total of nearly RMB1 million to develop the collective economy,
improved the collective economy's anti-risk ability, improved the mechanism of connecting and supporting
farmers, and ensured the stable income of farmers. The development of relevant industries benefited more than
5,000 farmers and herdsmen in four villages, and the per capita annual income increased by over RMB5,000.
4. Dedicated to education assistance and further consolidated the regional talent support
The Company consistently took education assistance as a powerful leverage to promote the comprehensive
economic and social development of regions. Firstly, improved the level of basic education. The Company
donated RMB200 million to assist ten urban and rural basic education improvement projects in four central urban
areas of Yibin SanJiang New Area, Cuiping District, Nanxi District, and Xuzhou District, so as to support the
development of education in Yibin City; donated schoolbags, books, laptops and other educational and teaching
materials with a total value of RMB120,000 to Mula Central School after visits, seminars, and site research.
Secondly, continuously implemented the compassionate student financial aid fund project. The Company
distributed RMB100,000 bursaries to 20 college students in Litang County at the rate of RMB5,000 per person for
the fourth consecutive year; assisted seven students with financial difficulties in Yingxiong Village under
Qingping Yi Xiang, Pingshan County; organized resident cadres to send 300 "compassionate student financial aid
fund packages" to students from Xinwen County Wuliangye Hope Primary School, Heping Primary School in
Gusong Town in Xingwen County, and Central Primary School in Jinping Town in Pingshan County.
5. Enriched and expanded publicity carriers, leading to a stronger atmosphere of social assistance
The Company actively expanded the publicity carriers for poverty alleviation and cultivated the atmosphere
of social assistance. Firstly, prepared and released the first targeted poverty alleviation report. Through systematic
review, the report presented Wuliangye's practice and concrete achievements of poverty alleviation in industry,
education, consumption, culture, and Party building in recent years, demonstrated the sense of responsibility of
large state-owned business consortium, and helped Wuliangye extract experience and promote its practice.
Secondly, carefully produced and exhibited a feature film on assistance and support. Through the method of
seeing the big through the small, the feature film considered the actual life of residents from supported areas the
breakthrough point and demonstrated the specific cases of the Company lifting residents from supported areas out
of poverty through paired assistance, and told the touching stories of Wuliangye working hand in hand with
residents from supported areas. Thirdly, extensively promoted the publicity through media. A sound atmosphere
of assistance and support was created through many media channels such as People's Daily, People's Daily Online,
Sichuan Radio and Television, and Sichuan Daily, and by broadcasting on television, publishing on newspapers,
loading on the Internet, and reposting on the WeChat.
Moving forward, Wuliangye will uphold the focus and keep to the right direction of assistance and support in
accordance with the opinions of the Party Central Committee and the State Council on comprehensively
promoting the key tasks of rural revitalization and the arrangements of the provincial Party committee and the
provincial government. Combined with the resource endowment of supported areas, the Company will highlight
the characteristics of industrial assistance and support, design the integration of production, supply and sales, and
continue to improve the varieties and quality of agricultural products in industries bases, and the brand building
and standardized production of industrial bases; continue to enhance the interaction and exchanges between
villages and enterprises and carry out the joint building of the Party branch; continuously leverage the Company's
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
advantages in platforms and resources to publicize the regional brands, including Zangziyuan mushrooms,
Chinese black mushrooms, and polar fruits and vegetables; base itself on the practical needs of the education and
residents' well-being in supported areas to adopt a package of steps and make solid progress to contribute to a
brighter future with "thriving businesses, pleasant living environments, social etiquette and civility, effective
governance, and prosperity". The Company will break new ground in comprehensively promoting rural
revitalization and set the stage for the 20th National Congress of the CPC with concrete actions.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part VI Significant Events
I Fulfillment of Undertakings
1. Undertakings of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
On 19 April 2018, the Company disclosed the Announcement on Undertakings Made in a Private Placement,
which detailed the undertakings in five aspects made by the Company and its directors, controlling shareholder
and actual controller as well as the directors and senior management who participated in the employee stock
ownership plan. During the Reporting Period, the aforesaid entities and personnel all strictly abided by their
undertakings.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable √ Not applicable
II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Statement Made by the Board of Directors Regarding the Latest “Modified Opinion” of an
Independent Auditor on Financial Statements
□ Applicable √ Not applicable
V Statements Made by the Board of Directors, the Supervisory Committee and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
VI Changes to Accounting Policies and Estimates and Correction of Material Accounting
Errors Compared with Last Year
√ Applicable □ Not applicable
(1) Changes to Significant Accounting Policies
Change and reason Approval procedure Note
As the Ministry of Finance issued in December 2018 the revised Accounting
Standard No. 21 for Business Enterprises—Leases (hereinafter, the “New Lease Approved at the 94th Meeting of the
Standard”), the Company has adopted the New Lease Standard since 1 January Fifth Board of Directors
2021 and has prepared the financial statements according to the New Lease
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Standard, with no retrospective restatement of the comparative data.
(2) Changes to Significant Accounting Estimates
No changes occurred to the major accounting estimates during the Reporting Period.
(3) Adjustments to the Relevant Financial Statement Line Items at the Beginning of 2021 when the
New Lease Standard Was First Adopted
As the lessee, the Company adopted a simple approach for short-term and low-value leases which expired
within 12 months of the first adoption day of the New Lease Standard. On that day, the Company made the
following adjustments:
① For finance leases before the first adoption day, the Company recognized on that day right-of-use assets
and lease liabilities based on the original carrying values of assets obtained under leases and payables for finance
leases.
② For operating leases before the first adoption day, on that day, the Company measured lease liabilities
based on the present value of outstanding lease payments discounted at the interest rate for new borrowings on
that day (loan rates of financial institutions for the Company on the same day: 3.3%-4%), chose to measure
right-of-use assets according to an amount equivalent to the lease liability of each lease, and made necessary
adjustments according to prepayments for leases.
The Company recognized the cumulative effects of the first adoption of the New Lease Standard as
adjustments to the amounts of the relevant financial statement line items on the first adoption day, with no
adjustments made to the comparative data.
The consolidated financial statements:
Balance sheet
Item
31 December 2020 Adjustment 1 January 2021
Right-of-use assets 146,707,923.47 146,707,923.47
Lease liabilities 73,960,277.66 73,960,277.66
Current portion of
72,747,645.81 72,747,645.81
non-current liabilities
The financial statements of the Company as the parent:
Balance sheet
Item
31 December 2020 Adjustment 1 January 2021
Right-of-use assets 3,517,015.52 3,517,015.52
Lease liabilities 2,157,321.56 2,157,321.56
Current portion of
1,359,693.96 1,359,693.96
non-current liabilities
VII Changes to the Scope of Consolidated Financial Statements Compared with Last Year
√ Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. On 19 November 2021, three wholly-owned subsidiaries of the Company, namely Yibin Cuipingshan
Liquor Co., Ltd., Yibin Century Liquor Co., Ltd. and Yibin Zhenwushan Liquor Co., Ltd., were de-registered and
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
have been excluded from the Company’s consolidated financial statements since that day.
VIII Appointment and Dismissal of CPA Firm
Current CPA firm:
Name of the domestic CPA firm Sichuan Huaxin (Group) CPA (LLP)
The Company’s payment to the domestic CPA firm
132 (exclusive of the internal control audit fee)
(RMB’0,000)
How many consecutive years the domestic CPA firm has
21
provided audit service for the Company
Names of the certified public accountants from the domestic
Li Wulin, Luo Guiqiu, and Ye Juan
CPA firm writing signatures on the independent auditor’s report
How many consecutive years the certified public accountants
Li Wulin: 1 year; Luo Guiqiu: 1 year; and Ye Juan: 2 years
have provided audit service for the Company
Indicate whether the CPA firm was changed for the Reporting Period.
□ Yes √ No
CPA firm appointed for the audit of internal control, as well as financial advisor or sponsor appointed:
√ Applicable □ Not applicable
The Company re-appointed Sichuan Huaxin (Group) CPA (LLP) as the independent auditor for internal
control of the Company in 2021, with a payment of RMB600,000.
IX Possibility of Delisting after the Disclosure of this Report
□ Applicable √ Not applicable
X Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Significant Legal Matters
□ Applicable √ Not applicable
The Company had no significant lawsuits or arbitrations during the Reporting Period. It made a total
payment of RMB1.16 million for three insignificant lawsuits.
XII Penalties and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Credit Standings of the Company as well as Its Controlling Shareholder and Actual
Controller
√ Applicable □ Not applicable
The Company as well as its controlling shareholder and actual controller were in good credit standing during
the Reporting Period.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
XIV Significant Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
See “5. Related-Party Transactions” under “XI Related Parties and Related-Party Transactions” of Part X.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
√ Applicable □ Not applicable
Making deposits:
Amount incurred in the current
Upper limit of period Closing
Related Range of Opening balance
Relationship daily deposit Total amount Total amount balance
party interest rate (RMB’0,000)
(RMB’0,000) deposited withdrawn (RMB’0,000)
(RMB’0,000) (RMB’0,000)
Wuliangye
Group Associate 4,790,000 0.42%～3.045% 2,860,053.89 2,231,179.12 1,627,649 3,463,584.01
Finance
Note: The amount incurred in the current period is presented on a net basis, which means such transactions
are eliminated as the same company withdrawing a deposit and making another deposit of a different kind, or
companies included in the consolidated financial statements making transfers via Wuliangye Group Finance.
Receiving loans: The Company received no loans from Wuliangye Group Finance during the Reporting
Period.
Receiving credit (inclusive of discounting) or other financial services:
Amount incurred
Related party Relationship Type of business Line (RMB’0,000)
(RMB’0,000)
Wuliangye Group
Associate Receiving credit 1,000,000 294,036.01
Finance
Notes: 1. According to the Financial Service Agreement signed between the Company and Wuliangye Group
Finance on 2 April 2021, the daily total balance of outstanding loans and unused credit with Wuliangye Group
Finance shall not exceed RMB10 billion in 2021.
2. The “amount incurred” in the Reporting Period includes the discounted bank acceptance notes of
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
RMB2,925.3601 million with Wuliangye Group Finance (annual interest rate: 2.1%; interest payment:
RMB36.5736 million; and undue bank acceptance notes as of the end of the Reporting Period: RMB2,567.2964
million) and the bank acceptance notes of RMB15 million issued by Wuliangye Group Finance for the Company’s
subsidiary.
6. Transactions between Finance Companies Controlled by the Company and Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
7. Other Significant Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XV Significant Contracts and Execution
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
XVII Significant Events of Subsidiaries
√ Applicable □ Not applicable
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. Three wholly-owned subsidiaries of the Company, namely Yibin Cuipingshan Liquor Co., Ltd., Yibin
Century Liquor Co., Ltd. and Yibin Zhenwushan Liquor Co., Ltd., were de-registered, which had no impact on the
Company’s ordinary course of business.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the current period (+/-) After
Bonus
Bonus
As % of issue As % of
Number of New issue Number of
total from Other Subtotal total
shares issue from shares
shares capital shares
profit
reserves
I Restricted shares 85,821,735 2.21% -85,711,491 -85,711,491 110,244 0.00%
1. Shares held by the state
2. Shares held by
state-owned corporations
3. Shares held by other
85,821,735 2.21% -85,711,491 -85,711,491 110,244 0.00%
domestic investors
Of which: Shares held
85,641,285 2.21% -85,641,285 -85,641,285
by domestic corporations
Shares held
180,450 0.00% -70,206 -70,206 110,244 0.00%
by domestic individuals
4. Shares held by overseas
investors
Of which: Shares held
by overseas corporations
Shares held
by overseas individuals
II Unrestricted shares 3,795,786,270 97.79% 85,711,491 85,711,491 3,881,497,761 100.00%
1. RMB-denominated
3,795,786,270 97.79% 85,711,491 85,711,491 3,881,497,761 100.00%
ordinary shares
2. Domestically listed
foreign shares
3. Overseas listed foreign
shares
4. Others
III Total shares 3,881,608,005 100.00% 0 0 3,881,608,005 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
The share changes were mainly attributable to restricted shares in the private placement being allowed for
public trading, the expiry of the lockup periods of shares held by former senior management, etc.
Approval of share changes:
√ Applicable □ Not applicable
As approved at the 11th Meeting of the Fifth Board of Directors and the 2015 Annual General Meeting of
Shareholders of the Company, and with consent from the State-owned Assets Supervision and Administration
Commission of Sichuan Province and the China Securities Regulatory Commission, the Company carried out a
private placement of 85,641,285 RMB-denominated ordinary shares to no more than 10 investors in April 2018,
which were listed on the Shenzhen Stock Exchange on 20 April 2018. The lockup period of the aforesaid
restricted shares expired on 19 April 2021. Upon examination by a sponsor and application to the Shenzhen
branch of China Securities Depository and Clearing Corporation Limited, those shares were allowed for public
trading on 3 June 2021.
Transfer of share ownership:
√ Applicable □ Not applicable
As approved at the first general meeting of holders under the employee stock ownership plan in 2021 and the
first meeting of the management committee of the employee stock ownership plan in 2021, the shares subscribed
for under the employee stock ownership plan through a private placement would be transferred to the securities
accounts of the holders by way of a “non-transaction transfer”. As of the end of the Reporting Period, a total of
10,470,000 shares have been transferred to 2,408 holders by way of a “non-transaction transfer” under the
employee stock ownership plan. The Company will carry out the rest of the transfers under the employee stock
ownership plan based on different awardees and by instalments.
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the latest
accounting period, respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be
disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Increase in Unlocked in Closing
Opening Reason for Date of
Shareholder the current the current restricted
restricted shares restriction unlocking
period period shares
The Corporate Pension Plan of China
National Petroleum Corporation－
3,012,610 3,012,610 0 Shares subscribed
Industrial and Commercial Bank of China
for in a private
Limited
placement being 20210603
Taikang Life Insurance Co., Ltd.－
allowed for public
Universal－Universal Personal Insurance 60,410 60,410 0
trading
(B)
Taikang Life Insurance Co., Ltd.－ 3,004,003 3,004,003 0
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Universal－Universal Personal Insurance
Taikang Life Insurance Co., Ltd.－
Dividend－Group Dividend-019L-FH001 902,503 902,503 0
Shenzhen
Taikang Life Insurance Co., Ltd.－
Dividend－Individual 10,421,704 10,421,704 0
Dividend-019L-FH002 Shenzhen
Taikang Life Insurance Co., Ltd.－
Traditional－General Insurance 6,699,647 6,699,647 0
Product-019L-CT001 Shenzhen
HuaAn Funds－Industrial Bank－China
Foreign Economy and Trade Trust Co., 2,033,272 2,033,272 0
Ltd.
Jiaxing Kailian Airui Investment
9,183,663 9,183,663 0
Partnership (Limited Partnership)
HuaAn Funds－Industrial Bank－
Qingdao Chengtou Financial Holding 5,179,875 5,179,875 0
Group Co., Ltd.
HuaAn Funds－Industrial Bank－
Shanghai Automotive Investment Capital 2,033,271 2,033,271 0
Co., Ltd.
Guotai Junan Securities Asset
Management－Bank of China－Guotai
19,414,047 19,414,047 0
Junan Junxiang Wuliangye Collective
Asset Management Plan No. 1
Wuliangye Yibin Co., Ltd.－The First
23,696,280 23,696,280 0
Employee Stock Ownership Plan
In accordance
Lockup and with the rules
unlocking of for restriction
shares held by of shares held
Former directors and senior management 134,267 10,650 103,816 41,101
former directors by former
and senior directors and
management senior
management
Non-transaction In accordance
Cao Hongying 2,325 5,415 7,740
transfer with the rules
for restriction
Non-transaction of shares held
Wu Guoping 0 17,545 17,545
transfer by incumbent
supervisors
Total 85,777,877 33,610 85,745,101 66,386 -- --
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
II Issuance and Listing of Securities
1. Securities (Exclusive of Preference Shares) Issued in the Reporting Period
□ Applicable √ Not applicable
2. Changes in Total Shares and Ownership Structure, as well as Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
Number of
preference
shareholders
Number of Number of
with resumed
ordinary preference
Number of voting rights
shareholders at shareholders with
ordinary at the
593,280 the month-end 672,317 resumed voting 0 0
shareholders at month-end
prior to the rights at the
the period-end prior to the
disclosure of this period-end (if any)
disclosure of
Report (see note 8)
this Report
(if any) (see
note 8)
5% or greater shareholders or top 10 shareholders
Sharehol Increase/dec Restric Shares in
Nature of ding Total shares held at rease in the ted Unrestricted pledge, marked
Name of shareholder
shareholder percenta the period-end Reporting shares shares held or frozen
ge Period held Status Shares
Yibin Development Holding State-owned
34.43% 1,336,548,020 1,336,548,020
Group Co., Ltd. corporation
Sichuan Yibin Wuliangye State-owned
20.40% 791,823,343 791,823,343
Group Co., Ltd. corporation
Hong Kong Securities Overseas
5.80% 225,182,536 -14,450,564 225,182,536
Clearing Company Limited corporation
China Securities Finance
Other 2.38% 92,385,936 92,385,936
Corporation Limited
Bank of China Limited－
China Merchants China
Securities Baijiu Index Other 1.25% 48,532,880 27,416,359 48,532,880
Classification Securities
Investment Fund
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Central Huijin Asset State-owned
1.01% 39,325,400 -866,700 39,325,400
Management Co., Ltd. corporation
Bank of China Limited－E
Fund Blue Chip Selected
Other 0.73% 28,400,000 6,541,501 28,400,000
Mixed Securities Investment
Fund
China Life Insurance
Company Limited－
Traditional－General
Other 0.62% 24,034,447 -9,158,715 24,034,447
Insurance
Product-005L-CT001
Shenzhen
Industrial and Commercial
Bank of China Limited－
Invesco Great Wall Newly Other 0.54% 20,964,110 10,245,691 20,964,110
Growth Mixed Securities
Investment Fund
Guotai Junan Securities Asset
Management－Bank of China
－Guotai Junan Junxiang Other 0.36% 14,000,064 -5,413,983 14,000,064
Wuliangye Collective Asset
Management Plan No. 1
Strategic investor or general corporation
becoming a top-10 shareholder in a rights N/A
issue (if any) (see note 3)
Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of
Related or acting-in-concert parties among
Yibin Development Group. And the Company is not aware of any related or
the shareholders above
acting-in-concert parties among the other public shareholders.
Shareholders above entrusting/entrusted
N/A
with or waiving voting rights
Repurchased share account (if any) among
N/A
the top 10 shareholders (see note 10)
Top 10 unrestricted shareholders
Unrestricted shares held at the Shares by class
Name of shareholder
period-end Class Shares
Yibin Development Holding Group Co.,
1,336,548,020 RMB-denominated ordinary shares 1,336,548,020
Ltd.
Sichuan Yibin Wuliangye Group Co., Ltd. 791,823,343 RMB-denominated ordinary shares 791,823,343
Hong Kong Securities Clearing Company
225,182,536 RMB-denominated ordinary shares 225,182,536
Limited
China Securities Finance Corporation
92,385,936 RMB-denominated ordinary shares 92,385,936
Limited
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Bank of China Limited－China Merchants
China Securities Baijiu Index Classification 48,532,880 RMB-denominated ordinary shares 48,532,880
Securities Investment Fund
Central Huijin Asset Management Co., Ltd. 39,325,400 RMB-denominated ordinary shares 39,325,400
Bank of China Limited－E Fund Blue Chip
28,400,000 RMB-denominated ordinary shares 28,400,000
Selected Mixed Securities Investment Fund
China Life Insurance Company Limited－
Traditional－General Insurance 24,034,447 RMB-denominated ordinary shares 24,034,447
Product-005L-CT001 Shenzhen
Industrial and Commercial Bank of China
Limited－Invesco Great Wall Newly 20,964,110 RMB-denominated ordinary shares 20,964,110
Growth Mixed Securities Investment Fund
Guotai Junan Securities Asset Management
－Bank of China－Guotai Junan Junxiang
14,000,064 RMB-denominated ordinary shares 14,000,064
Wuliangye Collective Asset Management
Plan No. 1
Related or acting-in-concert parties among
Among the top 10 shareholders, Wuliangye Group is a wholly-owned subsidiary of
top 10 unrestricted public shareholders, as
Yibin Development Group. And the Company is not aware of any related or
well as between top 10 unrestricted public
acting-in-concert parties among the other public shareholders.
shareholders and top 10 shareholders
Top 10 ordinary shareholders involved in
securities margin trading (if any) (see note N/A
4)
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of
the Company conducted any promissory repurchase during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: controlled by a local state-owned organization
Type of the controlling shareholder: corporation
Legal
Name of the controlling representative/
Date of incorporation Organization code Principal activities
shareholder person-in-char
ge
Capital and asset operations as
Yibin Development Holding
Liang Li 4 August 1999 915115007118234259 authorized by the People’s
Group Co., Ltd.
Government of Yibin City
Interests held in other
domestically and overseas Yibin Development Group directly held 131,847,574 shares (or 16.88%) in Yibin Tianyuan Group
listed companies in the Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co., Ltd.
Reporting Period
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: local state-owned assets management organization
Type of the actual controller: corporation
Legal
Date of
Name of the actual controller representative/person-in-cha Organization code Principal activities
incorporation
rge
The State-owned Assets Supervision
and Administration Commission of the Deng Wenguang 24 February 2005 N/A N/A
People’s Government of Yibin City
Interests controlled in other SASAC Yibin indirectly held 131,847,574 shares (or 16.88%) in Yibin Tianyuan Group
domestically and overseas listed Co., Ltd.; and indirectly held 79,368,520 shares (or 44.87%) in Yibin Paper Industry Co.,
companies in the Reporting Period Ltd.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Illustration of the relationship between the actual controller and the Company:
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. Indicate whether the cumulative number of shares held by the Company’s controlling shareholder or the
largest shareholder and its acting-in-concert parties that are in pledge accounts for over 80% of their total
shareholdings in the Company.
□ Applicable √ Not applicable
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
5. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
Legal
Name of corporate
representative/person- Date of incorporation Registered capital Principal activities
shareholder
in-charge
Investment and investment
Sichuan Yibin Wuliangye management, asset
Zeng Congqin 12 August 1998 RMB1,000,000,000
Group Co., Ltd. management, and business
management services
6. Restrictions on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Undertaking Makers
□ Applicable √ Not applicable
IV Share Repurchases in the Reporting Period
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable √ Not applicable
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part VIII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□ Applicable √ Not applicable
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing the independent auditor’s report 27 April 2022
Name of the independent auditor Sichuan Huaxin (Group) CPA (LLP)
Number of the independent auditor’s report Huaxin Audit (2022) No. 0038
Names of the certified public accountants Li Wulin, Luo Guiqiu, and Ye Juan
Independent Auditor’s Report
To the Shareholders of Wuliangye Yibin Co., Ltd.:
I Opinion
We have audited the financial statements of Wuliangye Yibin Co., Ltd. (hereinafter referred to as the
“Company”), which comprise the consolidated and parent company (the Company as the parent exclusive of
subsidiaries) balance sheets as at 31 December 2021, the consolidated and parent company statements of income,
cash flows and changes in owners’ equity for the year then ended, as well as the notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated and parent company financial position of the Company at 31 December 2021, and the consolidated
and parent company operating results and cash flows for the year then ended, in conformity with the Chinese
Accounting Standards (CAS).
II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance with
the said Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
III Key Audit Matters
Key audit matters are matters that, based on our professional judgment, are deemed most important to the
audit of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. The key audit matters we identified in our audit are as follows:
Key audit matters Audit response
(I) Existence and integrity of monetary assets
Please refer to notes to financial With respect of monetary assets, we conducted the following audit procedures:
statements "V. Notes to consolidated 1. Understood, tested, and evaluated key internal controls related to the management of
financial statements, 1. Monetary assets". monetary assets;
As at 31 December 2021, the 2. Obtained list of bank accounts opened, and checked the books of the Company against
balance of monetary assets of the the bank account information and integrity of the bank accounts;
Company was RMB82,335.9559 million, 3. Obtained the bank statement and bank reconciliation for confirmation of the bank
accounting for 60.71% of the total assets.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
The safety of deposits and the accuracy accounts, and controlled the process of confirmation;
and integrity of balance have great 4. Supervised the originals of certificate of time deposit, and paid attention to the holders of
impact on the financial statements due to certificate of time deposit and other information;
the large amount of balance of monetary 5. Obtained credit report of the enterprise and checked whether the monetary assets are
assets and large number of bank under mortgage, charge or frozen;
accounts. Therefore, we consider the
6. At the end of the period, the amount deposited with Sichuan Yibin Wuliangye Group
existence and integrity of monetary
Finance Co., Ltd. was RMB34,635.8401 million in total; the deposit and loan business of
assets as a key audit matter.
Sichuan Yibin Wuliangye Group Finance Co., Ltd. was checked.
We believe that the above audit procedures can support the management of the Company in
determining the existence and integrity of monetary assets.
(II) Integrity of disclosure of related-party relationships and related-party transactions
Please refer to notes to financial With respect of related-party relationships and related-party transactions, we conducted the
statement "IX. Related parties and following audit procedures:
related-party transactions". 1. Understood the procedures of the Company for related party identification, evaluated and
In 2021, the Company had different tested the internal control of the Company for identifying and disclosing related-party
categories of related-party transactions relationships and related-party transactions;
with related parties in large amount. 2. Obtained the list of related-party relationships provided by the management, and checked
There is a risk of failing to fully disclose against the information obtained from other public channels; reviewed the major sales,
the related-party relationships and purchase, and other transactions to identify any related-party relationship not being
related-party transactions in the notes to disclosed;
financial statements due to a large 3. Obtained the amount of related transactions and details of the balance provided by the
number of related parties and involving management and checked against the financial records;
in various types of related-party
4. Sample the amount and balance of related transactions for confirmation;
transactions. Therefore, we consider the
5. Obtained the resolutions of the Board of Directors and those of the general meeting
integrity of disclosure of related-party
concerning the related-party transactions, and checked against the list of related-party
relationships and related-party
relationships as well as the amount and balance of related transactions provided by the
transactions as a key audit matter.
management;
6. Obtained statement of the management about the integrity of related-party relationships
and related-party transactions;
7. Checked whether related-party relationships and related-party transactions had 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 related-party relationships and related-party
transactions.
IV Other Information
The Company’s management is responsible for the other information. The other information comprises all
of the information included in the Company’s 2021 Annual Report other than the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
V Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair
view in accordance with CAS, and for designing, implementing and maintaining such internal control as the
management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern (if applicable) and using
the going concern basis of accounting unless the management either intends to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with CAS 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 CAS, 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) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by CAS to draw users’ attention in our auditor’s 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 our auditor’s 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 Company audit. We remain solely responsible for our audit
opinion.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any noteworthy deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and 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 those charged with 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’s 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 (LLP) Chinese certified public accountant: Li Wulin
(engagement partner)
Chengdu China
Chinese certified public accountant: Luo Guiqiu
Chinese certified public accountant: Ye Juan
27 April 2022
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II Financial Statements
Monetary unit for the financial statements and the statements in the notes thereto unless otherwise stated: RMB
1. Consolidated Balance Sheet
Prepared by Wuliangye Yibin Co., Ltd. 31 December 2021 Unit: RMB
Item 31 December 2021 31 December 2020
Current assets：
Monetary assets 82,335,955,927.74 68,209,577,022.61
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 23,859,058,132.07 18,568,421,154.30
Accounts receivable 64,193,116.22 41,496,170.35
Receivables financing 1,641,509,588.69 2,024,442,016.72
Prepayments 195,652,974.42 247,259,080.42
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 26,288,496.24 36,199,607.12
Of which: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 14,015,067,118.25 13,228,273,631.45
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets
Total current assets 122,137,725,353.63 102,355,668,682.97
Non-current assets：
Loans and advances to customers
Debt investments
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Other debt investments
Long-term receivables
Long-term equity investments 1,911,228,653.63 1,849,977,103.30
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 5,610,147,000.37 5,866,880,860.03
Construction in progress 2,646,087,846.01 1,482,098,184.64
Productive living assets
Oil and gas assets
Right-of-use assets 697,805,952.69
Intangible assets 556,398,465.19 433,611,890.55
Development costs
Goodwill 1,621,619.53 1,621,619.53
Long-term prepaid expense 155,512,345.82 122,881,072.66
Deferred income tax assets 1,683,957,848.54 1,486,071,579.95
Other non-current assets 219,127,135.72 293,128,020.09
Total non-current assets 13,483,086,867.50 11,537,470,330.75
Total assets 135,620,812,221.13 113,893,139,013.72
Current liabilities：
Short-term borrowings
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 872,040,239.87 763,628,891.84
Accounts payable 5,403,561,392.95 3,382,875,146.71
Advances from customers 10,970,385.19 23,949,793.92
Contract liabilities 13,058,652,246.11 8,618,543,467.25
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial
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institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 3,335,937,141.30 3,629,524,988.52
Taxes and levies payable 5,192,183,704.90 5,542,200,330.67
Other payables 3,693,858,108.21 2,800,763,582.13
Of which: Interest payable
Dividends payable 37,436,404.82 37,918,093.23
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
360,027,399.06
liabilities
Other current liabilities 1,688,367,639.42 1,117,452,799.61
Total current liabilities 33,615,598,257.01 25,878,939,000.65
Non-current liabilities：
Insurance contract reserve
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities 355,338,950.93
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 257,991,368.32 255,953,368.36
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 613,330,319.25 255,953,368.36
Total liabilities 34,228,928,576.26 26,134,892,369.01
Owners’ equity：
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which : Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 23,866,103,395.72 19,698,525,995.51
General reserve
Retained earnings 68,638,139,859.37 59,443,191,559.08
Total equity attributable to owners of
99,068,498,346.24 85,705,972,645.74
the Company as the parent
Non-controlling interests 2,323,385,298.63 2,052,273,998.97
Total owners’ equity 101,391,883,644.87 87,758,246,644.71
Total liabilities and owners’ equity 135,620,812,221.13 113,893,139,013.72
Legal representative: Zeng Congqin Chief Financial Officer: Luo Wei Head of the accounting department: Liu Hongxu
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2021 31 December 2020
Current assets：
Monetary assets 43,723,114,772.56 35,797,929,213.94
Held-for-trading financial assets
Derivative financial assets
Notes receivable 50,000.00
Accounts receivable
Receivables financing
Prepayments 32,605,050.85 75,493,465.93
Other receivables 7,827,776,183.91 7,066,125,125.42
Of which: Interest receivable
Dividends receivable 1,153,154,780.16 734,729,782.94
Inventories
Contract assets
Assets held for sale
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Current portion of non-current
assets
Other current assets
Total current assets 51,583,546,007.32 42,939,547,805.29
Non-current assets：
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 13,313,609,602.58 13,315,418,495.83
Other equity investments
Other non-current financial assets 1,200,000.00 1,200,000.00
Investment property
Fixed assets 97,722,498.48 94,199,222.32
Construction in progress 114,160,542.48 105,734,347.80
Productive living assets
Oil and gas assets
Right-of-use assets 3,757,317.38
Intangible assets 41,628,936.23 44,593,088.87
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 1,108,475.08 2,288,329.69
Other non-current assets
Total non-current assets 13,573,187,372.23 13,563,433,484.51
Total assets 65,156,733,379.55 56,502,981,289.80
Current liabilities：
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1,134,674.42 781,064.42
Advances from customers
Contract liabilities
Employee benefits payable 3,747,183.77 8,803,447.13
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Taxes and levies payable 65,068,408.85 33,466,208.83
Other payables 154,169,154.25 210,715,274.14
Of which: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
1,816,912.87
liabilities
Other current liabilities
Total current liabilities 225,936,334.16 253,765,994.52
Non-current liabilities：
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Lease liabilities 1,170,924.31
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 500,000.00 500,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,670,924.31 500,000.00
Total liabilities 227,607,258.47 254,265,994.52
Owners’ equity：
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 11,333,854,390.82 9,464,358,442.95
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Retained earnings 47,031,016,639.11 40,220,101,761.18
Total owners’ equity 64,929,126,121.08 56,248,715,295.28
Total liabilities and owners’ equity 65,156,733,379.55 56,502,981,289.80
3. Consolidated Income Statement
Unit: RMB
Item 2021 2020
I Total revenues 66,209,053,612.11 57,321,059,453.15
Of which: Operating revenue 66,209,053,612.11 57,321,059,453.15
Interest income
Insurance premium income
Fee and commission income
II Total costs and expenses 33,957,661,247.50 29,738,554,309.94
Of which: Cost of sales 16,318,778,588.82 14,811,961,478.65
Interest costs
Fee and commission costs
Surrenders
Net insurance claims paid
Net amount provided as insurance contract
reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 9,789,698,016.98 8,092,348,596.10
Selling expense 6,503,506,131.90 5,578,918,523.98
Administrative expense 2,899,968,867.37 2,609,529,686.09
R&D expense 177,411,727.65 131,315,225.33
Finance costs -1,731,702,085.22 -1,485,519,200.21
Of which: Interest expense 69,130,792.55
Interest income 1,801,002,307.73 1,521,933,975.40
Add: Other income 215,728,235.35 162,373,770.41
Return on investment (“－” for loss) 97,346,566.33 93,504,494.16
Of which: Share of profit or loss of joint ventures
97,346,566.33 93,504,494.16
and associates
Income from the derecognition of
financial assets at amortized cost
Exchange gain (“－” for loss)
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Net gain on exposure hedges (“－” for loss)
Gain on changes in fair value (“－” for loss)
Credit impairment loss (“－” for loss) -2,601,524.74 1,024,420.84
Asset impairment loss (“－” for loss) -7,531,487.70 -14,113,185.98
Asset disposal income (“－” for loss) -1,905,183.84 1,129,293.57
III Operating profit (“－” for loss) 32,552,428,970.01 27,826,423,936.21
Add: Non-operating income 52,099,818.22 40,661,952.32
Less: Non-operating expense 154,124,342.53 188,638,670.83
IV Gross profit (“－” for gross loss) 32,450,404,445.70 27,678,447,217.70
Less: Income tax expense 7,942,954,115.44 6,765,106,808.16
V Net profit (“－” for net loss) 24,507,450,330.26 20,913,340,409.54
(I) By operating continuity
1. Net profit from continuing operations (“－” for net
24,507,450,330.26 20,913,340,409.54
loss)
2. Net profit from discontinued operations (“－” for
net loss)
(II) By ownership
1. Net profit attributable to owners of the Company as
23,377,074,353.40 19,954,809,594.52
the parent
2. Net profit attributable to non-controlling interests 1,130,375,976.86 958,530,815.02
VI Other comprehensive income, net of tax
Other comprehensive income, net of tax attributable to
owners of the Company as the parent
(I) Other comprehensive income that will not be
reclassified to profit or loss
1. Changes caused by remeasurements on
defined benefit schemes
2. Other comprehensive income that will not be
reclassified to profit or loss under the equity method
3. Changes in the fair value of other debt
investments
4. Changes in the fair value arising from
changes in own credit risk
5. Other
(II) Other comprehensive income that will be
reclassified to profit or loss
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
1. Other comprehensive income that will be
reclassified to profit or loss under the equity method
2. Changes in the fair value of other debt
investments
3. Other comprehensive income arising from
the reclassification of financial assets
4. Credit impairment allowances for other debt
investments
5. Reserve for cash flow hedges
6. Differences arising from the translation of
foreign currency-denominated financial statements
7. Other
Other comprehensive income, net of tax attributable to
non-controlling interests
VII Total comprehensive income 24,507,450,330.26 20,913,340,409.54
Total comprehensive income attributable to owners of
23,377,074,353.40 19,954,809,594.52
the Company as the parent
Total comprehensive income attributable to
1,130,375,976.86 958,530,815.02
non-controlling interests
VIII Earnings per share：
(I) Basic earnings per share 6.023 5.141
(II) Diluted earnings per share 6.023 5.141
Where business combinations involving entities under common control occurred in the current period, the net profit achieved by the
acquirees before the combinations was RMB0.00, with the amount for last year being RMB0.00.
Legal representative: Zeng Congqin Chief Financial Officer: Luo Wei Head of the accounting department: Liu Hongxu
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2021 2020
I Operating revenue 6,072.98 40,800.00
Less: Cost of sales 3,997.51 0.00
Taxes and levies 169,236.15 76,817.34
Selling expense
Administrative expense 108,298,808.63 117,170,397.30
R&D expense 49,585,654.07 42,712,530.27
Finance costs -1,174,604,456.01 -903,071,222.56
Of which: Interest expense 120,978.03
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Interest income 1,174,761,559.86 903,108,973.17
Add: Other income 12,836,803.76 13,198,222.54
Return on investment (“－” for loss) 17,986,096,250.69 15,335,974,898.92
Of which: Share of profit or loss of joint
94,286,122.75 91,885,853.76
ventures and associates
Income from the derecognition of
financial assets at amortized cost (“－” for loss)
Net gain on exposure hedges (“－” for loss)
Gain on changes in fair value (“－” for
loss)
Credit impairment loss (“－” for loss) -500,010.20 -343,590.35
Asset impairment loss (“－” for loss)）
Asset disposal income (“－” for loss)
II Operating profit (“－” for loss) 19,014,985,876.88 16,091,981,808.76
Add: Non-operating income 75,201.02 10,278,787.15
Less: Non-operating expense 99,772,654.47 160,529,678.78
III Gross profit (“－” for gross loss) 18,915,288,423.43 15,941,730,917.13
Less: Income tax expense 220,328,944.73 144,692,687.72
IV Net profit (“－” for net loss) 18,694,959,478.70 15,797,038,229.41
(I) Net profit from continuing operations (“－”
18,694,959,478.70 15,797,038,229.41
for net loss)
(II) Net profit from discontinued operations
(“－” for net loss)
V Other comprehensive income, net of tax
(I) Other comprehensive income that will not be
reclassified to profit or loss
1. Changes caused by remeasurements on
defined benefit schemes
2. Other comprehensive income that will
not be reclassified to profit or loss under the equity
method
3. Changes in the fair value of other debt
investments
4. Changes in the fair value arising from
changes in own credit risk
5. Other
(II) Other comprehensive income that will be
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
reclassified to profit or loss
1. Other comprehensive income that will
be reclassified to profit or loss under the equity
method
2. Changes in the fair value of other debt
investments
3. Other comprehensive income arising
from the reclassification of financial assets
4. Credit impairment allowances for
other debt investments
5. Reserve for cash flow hedges
6. Differences arising from the
translation of foreign currency-denominated financial
statements
7. Other
VI Total comprehensive income 18,694,959,478.70 15,797,038,229.41
VII Earnings per share：
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2021 2020
I Cash flows from operating activities：
Proceeds from sale of goods and rendering of
80,952,960,804.29 62,667,576,569.99
services
Net increase in customer deposits and deposits
from other banks and financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial
institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy
holders
Interest, fees and commissions received
Net increase in loans from other banks and
financial institutions
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Net increase in proceeds from repurchase
transactions
Net proceeds from acting trading of securities
Tax and levy rebates 24,522,993.00 56,724,988.21
Cash generated from other operating activities 2,045,885,363.36 2,243,660,435.98
Subtotal of cash generated from operating activities 83,023,369,160.65 64,967,961,994.18
Payments for goods and services 19,137,502,429.86 17,340,551,154.28
Net increase in loans and advances to customers
Net increase in deposits in the central bank and
other banks and financial institutions
Payments for claims on original insurance
contracts
Net increase in loans to other banks and financial
institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 7,240,759,270.94 5,740,856,054.71
Taxes and levies paid 25,084,613,186.47 23,227,933,861.45
Cash used in other operating activities 4,785,552,400.33 3,960,293,330.53
Subtotal of cash used in operating activities 56,248,427,287.60 50,269,634,400.97
Net cash generated from/used in operating activities 26,774,941,873.05 14,698,327,593.21
II Cash flows from investing activities：
Proceeds from the disposal of investments
Return on investment 41,720,016.00
Net proceeds from the disposal of fixed assets,
6,184,352.82 6,438,616.16
intangible assets and other long-term assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 47,904,368.82 6,438,616.16
Payments for the acquisition and construction of
1,539,129,180.86 993,760,087.19
fixed assets, intangible assets and other long-term assets
Payments for the acquisition of investments 5,625,000.00 734,693,877.55
Net increase in pledge loans
Net payments for the acquisition of subsidiaries
and other business units
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Cash used in other investing activities
Subtotal of cash used in investing activities 1,544,754,180.86 1,728,453,964.74
Net cash generated from/used in investing activities -1,496,849,812.04 -1,722,015,348.58
III Cash flows from financing activities：
Capital contributions received 15,000,000.00
Of which: Capital contributions received by
subsidiaries from non-controlling interests
Borrowings received
Cash generated from other financing activities
Subtotal of cash generated from financing activities 15,000,000.00
Repayment of borrowings
Interest and dividends paid 10,874,295,018.51 9,228,223,328.76
Of which: Dividends paid by subsidiaries to
859,746,365.61 688,685,717.76
non-controlling interests
Cash used in other financing activities 395,161,935.55
Subtotal of cash used in financing activities 11,269,456,954.06 9,228,223,328.76
Net cash generated from/used in financing activities -11,269,456,954.06 -9,213,223,328.76
IV Effect of foreign exchange rate changes on cash and
-469,528.68 -130,439.21
cash equivalents
V Net increase in cash and cash equivalents 14,008,165,578.27 3,762,958,476.66
Add: Cash and cash equivalents, beginning of the
66,967,091,800.45 63,204,133,323.79
period
VI Cash and cash equivalents, end of the period 80,975,257,378.72 66,967,091,800.45
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2021 2020
I Cash flows from operating activities：
Proceeds from sale of goods and
2,200.00 40,800.00
rendering of services
Tax and levy rebates
Cash generated from other operating
1,053,801,847.71 3,721,490,020.40
activities
Subtotal of cash generated from operating
1,053,804,047.71 3,721,530,820.40
activities
Payments for goods and services
Cash paid to and for employees 114,541,768.51 94,250,407.74
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Taxes and levies paid 193,123,570.90 143,335,903.87
Cash used in other operating activities 521,409,386.01 471,475,162.79
Subtotal of cash used in operating activities 829,074,725.42 709,061,474.40
Net cash generated from/used in operating
224,729,322.29 3,012,469,346.00
activities
II Cash flows from investing activities：
Proceeds from the disposal of
investments
Return on investment 17,515,105,146.72 15,164,150,651.49
Net proceeds from the disposal of fixed
assets, intangible assets and other long-term
assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from investing
17,515,105,146.72 15,164,150,651.49
activities
Payments for the acquisition and
construction of fixed assets, intangible assets 21,157,071.16 11,002,115.83
and other long-term assets
Payments for the acquisition of
5,625,000.00 2,613,749,017.46
investments
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 26,782,071.16 2,624,751,133.29
Net cash generated from/used in investing
17,488,323,075.56 12,539,399,518.20
activities
III Cash flows from financing activities：
Capital contributions received
Borrowings received
Cash generated from other financing
activities
Subtotal of cash generated from financing
activities
Repayment of borrowings
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Interest and dividends paid 10,014,548,652.90 8,539,537,611.00
Cash used in other financing activities 1,979,700.00
Subtotal of cash used in financing activities 10,016,528,352.90 8,539,537,611.00
Net cash generated from/used in financing
-10,016,528,352.90 -8,539,537,611.00
activities
IV Effect of foreign exchange rate changes on
cash and cash equivalents
V Net increase in cash and cash equivalents 7,696,524,044.95 7,012,331,253.20
Add: Cash and cash equivalents,
35,269,698,657.71 28,257,367,404.51
beginning of the period
VI Cash and cash equivalents, end of the
42,966,222,702.66 35,269,698,657.71
period
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
7. Consolidated Statements of Changes in Owners’ Equity
2021
Unit: RMB
2021
Equity attributable to owners of the Company as the parent
Other
equity Le
instruments ss:
Other
Tr
Item Pe compr Spec Gen Non-controlling
ea Ot Total owners’ equity
Pre rp ehensi ific eral interests
Share capital Capital reserves sur Surplus reserves Retained earnings he Subtotal
fere etu Ot ve reser reser
y r
nce al he incom ve ve
sh
sha bo r e
are
res nd s
s
I Balance as at the
end of the prior 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
year
Add: Adjustments
for changes in
accounting
policies
Adjustments
for correction of
previous errors
Adjustments
for business
combinations
involving entities
under common
control
Other
II Balance as at
the beginning of 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
the year
III Increase/
decrease in the
4,167,577,400.21 9,194,948,300.29 13,362,525,700.50 271,111,299.66 13,633,637,000.16
period (“-” for
decrease)
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(I) Total
comprehensive 23,377,074,353.40 23,377,074,353.40 1,130,375,976.86 24,507,450,330.26
income
(II) Capital
increase and
reduction by
owners
1. Ordinary share
increase by
owners
2. Capital increase
by holders of
other equity
instruments
3. Share-based
payments
recognized in
owners’ equity
4. Other
(III) Profit
4,167,577,400.21 -14,182,126,053.11 -10,014,548,652.90 -859,264,677.20 -10,873,813,330.10
distribution
1. Appropriated to
4,167,577,400.21 -4,167,577,400.21
surplus reserves
2. Appropriated to
general reserve
3. Distributed to
owners (or -10,014,548,652.90 -10,014,548,652.90 -859,264,677.20 -10,873,813,330.10
shareholders)
4. Other
(IV) Transfers
within owners’
equity
1. Increase in
capital (or share
capital) from
capital reserves
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
2. Increase in
capital (or share
capital) from
surplus reserves
3. Surplus
reserves used to
offset loss
4. Changes in
defined benefit
schemes
transferred to
retained earnings
5. Other
comprehensive
income transferred
to retained
earnings
6. Other
(V) Specific
reserve
1. Increase in the
period
2. Used in the
period
(VI) Other
IV Balance as at
the end of the 3,881,608,005.00 2,682,647,086.15 23,866,103,395.72 68,638,139,859.37 99,068,498,346.24 2,323,385,298.63 101,391,883,644.87
period
2020
Unit: RMB
2020
Equity attributable to owners of the Company as the parent
Other Le
equity Othe
ss:
instrument r
Tr
Item s com Spec Gen Non-controlling
ea Ot Total owners’ equity
preh ific eral interests
Share capital Pr Pe Capital reserves sur Surplus reserves Retained earnings he Subtotal
ensi reser reser
efe rp Ot y r
ve ve ve
re etu he sh
inco
nc al r are
me
e bo s
99
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
sh nd
are s
s
I Balance as at the
end of the prior 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
Add: Adjustments
for changes in
accounting policies
Adjustments
for correction of
previous errors
Adjustments
for business
combinations
involving entities
under common
control
Other
II Balance as at the
beginning of the 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
III Increase/
decrease in the
3,606,328,972.50 7,808,943,011.02 11,415,271,983.52 246,927,004.03 11,662,198,987.55
period (“-” for
decrease)
(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
increase and
15,000,000.00 15,000,000.00
reduction by
owners
1. Ordinary share
15,000,000.00 15,000,000.00
increase by owners
2. Capital increase
by holders of other
equity instruments
3. Share-based
payments
100
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
recognized in
owners’ equity
4. Other
(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. Appropriated to
3,606,328,972.50 -3,606,328,972.50
surplus reserves
2. Appropriated to
general reserve
3. Distributed to
owners (or -8,539,537,611.00 -8,539,537,611.00 -726,603,810.99 -9,266,141,421.99
shareholders)
4. Other
(IV) Transfers
within owners’
equity
1. Increase in
capital (or share
capital) from
capital reserves
2. Increase in
capital (or share
capital) from
surplus reserves
3. Surplus reserves
used to offset loss
4. Changes in
defined benefit
schemes
transferred to
retained earnings
5. Other
comprehensive
income transferred
to retained earnings
6. Other
(V) Specific
reserve
1. Increase in the
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
period
2. Used in the
period
(VI) Other
IV Balance as at
the end of the 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
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2021
Unit: RMB
2021
Other equity Other
instruments Less: compr Specifi
Item Treasu ehensi c
Share capital Preferen Capital reserves Surplus reserves Retained earnings Other Total owners’ equity
Perpetua Othe ry ve reserv
ce shares incom e
l bonds r
shares e
I Balance as at the end of the
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
prior year
Add: Adjustments for
changes in accounting policies
Adjustments for
correction of previous errors
Other
II Balance as at the beginning 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
the year
III Increase/ decrease in the
1,869,495,947.87 6,810,914,877.93 8,680,410,825.80
period (“-” for decrease)
(I) Total comprehensive income 18,694,959,478.70 18,694,959,478.70
(II) Capital increase and
reduction by owners
1. Ordinary share increase by
owners
2. Capital increase by holders of
other equity instruments
3. Share-based payments
recognized in owners’ equity
4. Other
(III) Profit distribution 1,869,495,947.87 -11,884,044,600.77 -10,014,548,652.90
1. Appropriated to surplus
1,869,495,947.87 -1,869,495,947.87
reserves
2. Distributed to owners (or
-10,014,548,652.90 -10,014,548,652.90
shareholders)
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
3. Other
(IV) Transfers within owners’
equity
1. Increase in capital (or share
capital) from capital reserves
2. Increase in capital (or share
capital) from surplus reserves
3. Surplus reserves used to
offset loss
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Other
(V) Specific reserve
1. Increase in the period
2. Used in the period
(VI) Other
IV Balance as at the end of the
3,881,608,005.00 2,682,647,086.15 11,333,854,390.82 47,031,016,639.11 64,929,126,121.08
period
2020
Unit: RMB
2020
Other equity instruments
Item Less: Other
Preferen Specific
Share capital Perpetua Capital reserves Treasury comprehensive Surplus reserves Retained earnings Other Total owners’ equity
ce Other reserve
l bonds shares income
shares
I Balance as at the end
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
of the prior year
Add: Adjustments for
changes in accounting
policies
Adjustments
for correction of
previous errors
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Other
II Balance as at the
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
beginning of the year
III Increase/ decrease
in the period (“-” for 1,579,703,822.94 5,677,796,795.47 7,257,500,618.41
decrease)
(I) Total
comprehensive 15,797,038,229.41 15,797,038,229.41
income
(II) Capital increase
and reduction by
owners
1. Ordinary share
increase by owners
2. Capital increase by
holders of other equity
instruments
3. Share-based
payments recognized
in owners’ equity
4. Other
(III) Profit distribution 1,579,703,822.94 -10,119,241,433.94 -8,539,537,611.00
1. Appropriated to
1,579,703,822.94 -1,579,703,822.94
surplus reserves
2. Distributed to
owners (or -8,539,537,611.00 -8,539,537,611.00
shareholders)
3. Other
(IV) Transfers within
owners’ equity
1. Increase in capital
(or share capital) from
capital reserves
2. Increase in capital
(or share capital) from
surplus reserves
3. Surplus reserves
used to offset loss
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
4. Changes in defined
benefit schemes
transferred to retained
earnings
5. Other
comprehensive
income transferred to
retained earnings
6. Other
(V) Specific reserve
1. Increase in the
period
2. Used in the period
(VI) Other
IV Balance as at the
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
end of the period
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
III Company Profile
1. Company history
Wuliangye Yibin Co., Ltd. (hereinafter referred to as the "Company") is a company limited by shares
established by Sichuan Yibin Wuliangye Distillery through fund raising on 19 August 1997 with the approval of
Document CFH (1997) No. 295 issued by the People's Government of Sichuan Province. The Company is
principally engaged in the production and sales of "Wuliangye"-branded Baijiu products and other Baijiu series,
with a registered capital of RMB3,795.96672 million and registered address: 150 Minjiang West Road, Cuiping
District, Yibin City, Sichuan Province, China.
The Company issued 80 million common shares (in RMB) on-line by fixed price offering at Shenzhen Stock
Exchange on 27 April 1998. According to the resolution of the extraordinary general meeting of Shareholders in
September 1999, the Company, based on the total share capital of 320 million shares on 30 June 1999, transferred
capital reserve to increase share capital, increasing five shares for every ten shares and the total share capital after
the conversion was changed to 480 million shares. The Company placed 31.2 million common shares (in RMB) to
the original shareholders as approved by the Document ZH.J.G.S.Z. [2001] No. 6 issued by the China Securities
Regulatory Commission. The total share capital after the placement was 511.2 million shares. In August 2001, the
Company implemented the interim distribution plan 2001 and issued four bonus shares and increased three shares
for every ten shares by transferring capital reserve to share capital, with 357.84 million bonus shares and shares
transferred from capital reserve in total. The total share capital after the issuance and translation was 869.04
million shares. In April 2002, the Company implemented the distribution plan 2001 and issued one bonus shares,
increased two shares by transferring capital reserve to share capital, and distributed RMB0.25 (tax inclusive) in
cash for every ten shares, with 260.712 million bonus shares in total. The total share capital after the issuance and
translation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan 2002 and
increased two shares for every ten shares by transferring capital reserve to share capital for all shareholders,
increasing the share capital by 225.9504 million shares. The total share capital after the translation was
1,355.7024 million shares. In April 2004, the Company implemented the distribution plan 2003 and issued eight
bonus shares and increased two shares by transferring capital reserve to share capital for every ten shares, with
1,355.7024 million bonus shares in total. The total share capital after the issuance and translation was 2,711.4048
million shares.
On 31 March 2006, the Company carried out the equity division reform and the shareholding structure after
the reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the total
share capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 million
shares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained
2,711.4048 million shares.
In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares and
distributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total.
The total share capital after the issuance and distribution was 3,795.96672 million shares. On 2 April 2008, shares
for state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and became
2,128.3714 million shares, taking up 56.07% of the total share capital. Other shareholders held 1,667.5954 million
shares, taking up 43.93% of the total share capital.
According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye Yibin
Co., Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province
(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders of
Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the State
Council (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as Yibin
Development Holding Group Co., Ltd. in 2021) transferred 761,823,343 shares held by it in the Company to
Sichuan Yibin Wuliangye Group Co., Ltd. for free on 10 October 2012. After this free transfer of shares, Yibin
Development Holding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was
the first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07% shares
of the Company (i.e. 791,823,343 shares), was the second majority shareholder of the Company.
According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.
(Y.G.Z.W. [2016] No. 32), the State-owned Assets Supervision and Administration Commission of the People’s
Government of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to Yibin
Development Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the change of
shares held by both parties in the Company, without changing the controlling shareholder and actual controller of
the Company.
According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting of
Shareholders 2015, the 19th meeting of the 5th Board of Directors, the 24th meeting of the 5th Board of Directors,
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
and annual general meeting of Shareholders 2016 of the Company and as approved by the License ZH.J.X.K.
[2017] No. 1910 issued by the China Securities Regulatory Commission, the Company issued 85,641,285 shares
by non-public offering by means of targeted issue on 12 April 2018. The total share capital after the issuance was
3,881.608 million shares, including 2128.3714 million shares for state-owned legal person, taking up 54.83% of
the total share capital, and 1,753.2366 million shares for other shareholders, taking up 45.17% of the total share
capital.
According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd. (Y.G.Z.W.
[2020] No. 157), issued by The State-owned Assets Supervision and Administration Commission of the People’s
Government of Yibin City, the transfer was approved in principle. On 24 August 2020, Yibin Development
Holding Group Co., Ltd. transferred 30,000,000 shares held by it in the Company to Sichuan Yibin Wuliangye
Group Co., Ltd. for free. After this transfer of shares, Yibin Development Holding Group Co., Ltd. still held
34.43% shares of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of the Company;
Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343 shares), was
the second majority shareholder of the Company. This transfer of shares did not change the controlling
shareholder and actual controller of the Company.
2. Industry and primary business scope of the Company
The Company is engaged in the beverage production industry and its business scope is: Production and
operation of liquor products and relevant auxiliary products (bottle caps, trademarks, logos and packaging
products). Its primary products are "Wuliangye"-branded Baijiu products and other Baijiu series.
3. Approval of financial statements
These financial statements have been reviewed and approved by General Meeting of Shareholders of the
Company on 27 April 2022, 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 31 December 2021, subsidiaries included in the scope of consolidated financial statements of the
Company were:
The
The Company’s
Company’s
Full name of subsidiary Type of subsidiary Tier shareholding
voting right
percentage
percentage
Majority-owned
Sichuan Yibin Wuliangye Distillery Co., Ltd. First-tier 99.99% 99.99%
subsidiary
Majority-owned
Yibin Wuliangye Liquor Sales Co., Ltd. First-tier 95.00% 95.00%
subsidiary
Yibin Wuliang Tequ and Touqu Brand Marketing Co., Majority-owned
Second-tier 95.00% 95.00%
Ltd. subsidiary
Majority-owned
Yibin Wuliangchun Brand Marketing Co., Ltd Second-tier 95.00% 95.00%
subsidiary
Yibin Wuliangye Series Liquor Brand Marketing Co., Majority-owned
Second-tier 95.00% 95.00%
Ltd. subsidiary
Majority-owned
Sichuan Yibin Wuliangye Supply and Marketing Co., Ltd. First-tier 99.95% 99.95%
subsidiary
Wholly-owned
Yibin Jiangjiu Liquor Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Wuliangye Environmental Protection Majority-owned
First-tier 51.00% 51.00%
Industry Co., Ltd. subsidiary
Majority-owned
Sichuan Jinwuxin Technology Co., Ltd. Second-tier 51.00% 51.00%
subsidiary
Majority-owned
Sichuan Jiebeike Environmental Technology Co., Ltd. Second-tier 26.01% 26.01%
subsidiary
Wholly-owned
Yibin Changjiangyuan Liquor Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Wholly-owned
Yibin Changjiangyuan Trade Co., Ltd. Second-tier 100.00% 100.00%
subsidiary
Wholly-owned
Yibin Changjiangyuan Brewery Co., Ltd. Second-tier 100.00% 100.00%
subsidiary
Yibin Wuliangye Organic Agriculture Development Co., Wholly-owned
Second-tier 100.00% 100.00%
Ltd. subsidiary
Majority-owned
Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd. First-tier 90.00% 90.00%
subsidiary
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Majority-owned
Yibin Xianlin Liquor Marketing Co., Ltd. Second-tier 90.00% 90.00%
subsidiary
Majority-owned
Yibin Wuliangye Xinshengdai Liquor Co., Ltd. Second-tier 42.30% 42.30%
subsidiary
Majority-owned
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. First-tier 98.53% 98.53%
subsidiary
Majority-owned
Yibin Xinxing Packaging Co., Ltd. Second-tier 98.53% 98.53%
subsidiary
Sichuan Yibin Plastic Packaging Materials Company Wholly-owned
First-tier 100.00% 100.00%
Limited subsidiary
Wholly-owned
Sichuan Yibin Global Group Shenzhou Glass Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Sichuan Yibin Global Gelasi Glass Manufacturing Co., Wholly-owned
First-tier 100.00% 100.00%
Ltd. subsidiary
Wholly-owned
Sichuan Yibin Push Group 3D Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Guangdong Foshan Plastic Packaging Materials Company Wholly-owned
Second-tier 100.00% 100.00%
Limited subsidiary
Sichuan Yibin Wuliangye Investment (Consulting) Co., Majority-owned
First-tier 95.00% 95.00%
Ltd. subsidiary
Majority-owned
Wuhou Cultural Development Co., Ltd. Second-tier 70.30% 70.30%
subsidiary
Majority-owned
Wuliangye Dashijie (Beijing) Trade Co., Ltd. First-tier 95.00% 95.00%
subsidiary
Majority-owned
Handan Yongbufenli Liquor Co., Ltd. First-tier 51.00% 51.00%
subsidiary
Majority-owned
Linzhang Desheng Wine Trade Co., Ltd. Second-tier 51.00% 51.00%
subsidiary
Majority-owned
Handan Yongbufenli Sales Co., Ltd. Second-tier 51.00% 51.00%
subsidiary
Wholly-owned
Huaibin Wubin Consultation Service Co., Ltd. First-tier 100.00% 100.00%
subsidiary
Majority-owned
Wuguchun Jiu Ye Co., Henan. China Second-tier 51.03% 51.03%
subsidiary
Majority-owned
Huaibin Tenglong Trade Co., Ltd.C Third-tier 51.03% 51.03%
subsidiary
Majority-owned
WU JIU YE SALES CO., HENAN. China Third-tier 51.03% 51.03%
subsidiary
Sichuan Wuliangye Culture Tourism Development Co., Majority-owned
First-tier 80.00% 80.00%
Ltd. subsidiary
Majority-owned
Sichuan Wuliangye Tourist Agency Co., Ltd. Second-tier 80.00% 80.00%
subsidiary
Majority-owned
Yibin Wuliangye Creart Co., Ltd. First-tier 45.00% 51.00%
subsidiary
Majority-owned
Wuliang Nongxiang Series Baijiu Yibin Co., Ltd. First-tier 95.00% 95.00%
subsidiary
Majority-owned
Sichuan Wuliangye New Retail Management Co., Ltd. First-tier 90.00% 90.00%
subsidiary
Refer to the Note "VIII. Changes in consolidation scope" and "IX. Interests in other entities" for the scope of
consolidated financial statements of the current period and its changes.
IV Preparation Basis for Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of going concern and the recognition and
measurement are made at actual transactions and matters in accordance with the Accounting Standards for
Business Enterprises-Basic Standards issued by the Ministry of Finance and the specific Accounting Standards
for Business Enterprise, Guidelines for Application of Accounting Standards for Business Enterprises,
Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafter referred
to as “Accounting Standards for Business Enterprise”), combining with the Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports
(2014 revision) issued by China Securities Regulatory Commission on this basis.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
2. Going concern
The Company has the ability of going concern for at least 12 months from the end of the Reporting Period,
and there is no major event affecting the ability of going concern.
V Significant Accounting Policies and Accounting Estimates
It should obey the disclosure requirement for the food and wine manufacturing related industries in SSE
Guidelines No. 3 on the Application of Self-Regulation Rules for Listed Companies - Industry Information
Disclosure requirement
Specific accounting policies and accounting estimates:
The contents disclosed below cover the specific accounting policies and accounting estimates formulated by
the Company according to the actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The Company states that the financial statements prepared comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company's financial position, operating
results, cash flows and other relevant information.
2. Accounting period
From 1 January to 31 December of each calendar year.
3. Operating cycle
The Company’s operating cycle is 12 months.
4. Bookkeeping base currency
RMB is used as the bookkeeping base currency and reporting currency of the Company.
5. Accounting methods for business combinations involving enterprises under and not under the common
control
(1) Business combination involving enterprises under the common control
The assets and liabilities acquired by the combining party through business combination involving
enterprises under the common control are measured at the share of owners' equity of the combined party in the
carrying value on consolidated financial statements of the final controlling party on the combination date. The
difference between the carrying value of the net assets obtained by the combining party and the carrying value of
consideration paid for the combination (or total par value of the shares issued) is adjusted against share premium
in the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall be
adjusted. All the direct costs incurred by the combining party for the business combination shall be included in
current profit/loss when incurred.
(2) Business combination involving enterprises not under the common control
In case of business combination involving enterprises not under the common control, the combination costs
shall be the fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on the
date of acquisition by the acquirer in exchange for control on the acquiree.
For a business combination involving enterprises not under the common control achieved through
step-by-step implementation of multiple transactions, related accounting treatment shall be carried out by
distinguishing individual financial statements from consolidated financial statements:
a) In the individual financial statements, the sum of carrying value of the equity investment held in the
acquiree prior to the date of acquisition and 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 return on investment.
b) In the consolidated financial statements, the equity held in the acquiree prior to the date of acquisition
shall be re-measured at the fair value of such equity on the date of acquisition, and the difference between its fair
value and its carrying value shall be included in the current return on 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 return on investment on the date of acquisition.
The intermediary expenses such audit, legal service, evaluation and consultation and other administrative
expenses incurred by the acquirer for the business combination shall be included in current profit/loss; the
transaction expenses for issuing equity securities or debt securities by the acquirer as consideration of the
combination shall be included in the initial recognition amount of the equity securities or debt securities.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the business
combination involving enterprises not under the common control shall be measured at the fair value on the date of
acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's net
identifiable assets obtained in the combination, the difference shall be recognized as goodwill. Where the
combination cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assets
obtained in the combination, the acquirer shall first recheck the fair values of the acquiree's identifiable assets,
liabilities and contingent liabilities obtained in the combination and the combination cost. Where the combination
cost is still less than the acquirer's interest in the fair value of the acquiree's net identifiable assets obtained in the
combination, the difference shall be included in the current profit/loss.
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 Company as the parent shall prepare the consolidated financial statements based on its financial
statements and those of its subsidiaries and according to other relevant information. The share of the subsidiaries
in current profit/loss attributable to non-controlling interests shall be presented in the consolidated income
statement as "net profit attributable to non-controlling interests" under the net profit. The share in current
comprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented in
the consolidated income statement as "total comprehensive income attributable to non-controlling interests" under
the total other comprehensive income.
For subsidiaries and businesses of the Company as the parent added by business combination involving
enterprises under the common control during the Reporting Period, the revenue, expenses, and profits of such
subsidiaries and businesses from the beginning to the end of the period of business combination shall be recorded
into the consolidated income statement. Cash flows of such subsidiaries and businesses from the beginning to the
end of the year of business combination shall be recorded into the consolidated cash flow statement, and relevant
items of the statements shall be adjusted through comparison of the statements, as if the reporting entity after the
combination had been existing from control of the final controlling party after the combination comes into effect.
For subsidiaries and businesses added by business combination involving enterprises not under the common
control or other means, the revenue, expenses, and profits of such subsidiaries and businesses from the date of
acquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash flows of
such subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into the
consolidated cash flow statement.
When the Company as the parent disposes subsidiaries and businesses during the Reporting Period, the
revenue, expenses, and profits of such subsidiary and business from the beginning of the Reporting Period to the
date of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiary
and business from the beginning of the Reporting Period to the date of disposal shall be recorded into the
consolidated cash flow statement.
In the consolidated financial statements, when the Company as the parent acquires the equity held by the
minority shareholders in the subsidiary, the difference between the long-term equity investment obtained by
acquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated from
the date of acquisition or combination according to the new increase in shareholding proportion shall be adjusted
against the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writing
down, the retained earnings shall be adjusted.
7. Classification of joint arrangements and accounting methods for joint operations
Joint arrangements include joint operations and joint ventures.
Joint operation refers to a joint arrangement where the Company is a party to the joint venture and owns its
relevant assets and bears its relevant liabilities.
The Company shall recognize the following items related to share of interests and treat them according to
relevant Accounting Standards for Business Enterprises:
(1) Recognize assets solely held by the Company, and those jointly owned assets according to the
Company's share;
(2) Recognize liabilities solely assumed by the Company, and those jointly assumed liabilities according to
the Company's share;
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(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 of cash and cash equivalents
Cash of the Company refers to cash on hand and deposits that can be used for payment at any time; cash
equivalents refer to the short-term (no more than three months since the date of acquisition) and highly liquid
investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk of
change in value.
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 base currency at the benchmark
exchange rate (which is generally refers to the middle rate of the current foreign exchange rate published by the
People's Bank of China, the same below) published by the People's Bank of China on the transaction date; at the
end of the period, foreign currency monetary items shall be translated at the ending spot exchange rate;
non-monetary items in foreign currency measured at historical cost shall be translated at the spot exchange rate
prevailing on the transaction date; monetary items in foreign currency and measured at the fair value shall be
translated at the spot exchange rate prevailing on the date of determining fair value. The difference arising from
translation shall be included in the construction cost of relevant fixed assets if in connection with acquisition and
construction of the fixed assets which has not yet reached its intended condition for use; shall be included in
administrative expenses if incurring during the preparation period and not in connection with acquisition and
construction of fixed assets; and shall be included in current finance costs if incurring during the production and
operation period.
(2) Translation methods for foreign currency financial statements:
The assets and liabilities in the balance sheet shall be translated at the spot rate on the balance sheet date; all
items of owners' equity, except for retained earnings, shall be translated at the spot exchange rate at the time of
incurrence.
The revenues and expenses in the income statement shall be translated at the spot exchange rate on the date
of transaction. Differences arising from the translation of foreign currency-denominated financial statements shall
be separately presented under the owners' equity in the balance sheet.
The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated at the spot
exchange rate on the date of incurrence of the cash flows.
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 trading day, or derecognize the assets sold on the trading day.
(2) Classification and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics
of financial assets, the Company classified financial assets into the following categories: Financial assets
measured at the amortized cost, financial assets measured at fair value through other comprehensive income, and
financial assets measured at fair value through profit and loss of the current period.
1) Initial measurement of financial assets
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Financial liabilities, upon initial recognition, shall be measured at fair value. For financial assets at fair value
through profit or loss, relevant transaction expenses shall be directly included in current profit or loss; for other
categories of financial assets, relevant transaction expenses shall be included in the initial recognition amount. For
notes receivable and accounts receivable arising from sales of goods or provision of service which do not include
or consider the compositions of major assets, the Company shall take the consideration expected to be received as
the initial recognition amount.
2) Subsequent measurement of financial assets
a) Investments in debt instruments measured at amortized cost
The business model of the Company for managing such financial assets aims at obtaining contractual cash
flow, and the characteristics of contractual cash flow of such financial assets are basically the same as basic
borrowing arrangement, namely the cash flow arising on a specific date, which are solely payments of principal
and interest on the principal amount outstanding. The Company subsequently measures such financial assets at
amortized costs by effective interest method. The gain or loss from their amortization, impairment and
derecognition shall be included in current profit or loss.
b) Investments in debt instruments at fair value through other comprehensive income
The business model of the Company for managing such financial assets aims at receiving contractual cash
flow as well as selling, and the characteristics of contractual cash flow of such financial assets are basically the
same as basic borrowing arrangement. Such financial assets shall be measured at fair value, with the changes
included in other comprehensive income, but the impairment loss, exchange gain or loss and interest income
calculated by effective interest method shall be included in current profit or loss. The accumulative gains or losses
which are previously included in other comprehensive income shall be transferred out from other comprehensive
income and included in current profit or loss upon derecognition.
c) Investment in debt instruments at fair value through profit or loss
The Company classifies debt instruments held which are not classified as debt instruments measured at
amortized cost and debt instruments at fair value through other comprehensive income as financial assets at fair
value through profit or loss. For eliminating or significantly reducing accounting mismatch upon initial
recognition, financial assets may be designated as financial assets at fair value through profit or loss. Such
financial assets shall be subsequently measured at fair value with all changes in fair value included in current
profit or loss. Only when the Company changes the business model of managing financial assets, shall relevant
financial assets being affected be reclassified.
d) Investments in equity instruments at fair value through other comprehensive income
The Company designates some of the investments in non-trading equity instrument as financial assets at fair
value through other comprehensive income upon initial recognition. The Company includes relevant dividends
income in current profit or loss, with changes in fair value included in other comprehensive income. The
accumulative gains or losses which are previously included in other comprehensive income shall be transferred
from other comprehensive income to retained earnings instead of current profit or loss upon derecognition of such
financial assets.
(3) Recognition basis and measurement methods for transfer of financial assets
If the Company has transferred almost all risks and remuneration of the financial assets ownership to the
transferee, the financial assets shall be derecognized; if the Company retains almost all risks and remuneration of
the financial assets ownership, the financial assets shall not be derecognized.
The Company does neither transfer nor retain almost all risks and remuneration of the financial assets
ownership but gives up the control over the financial assets, such financial assets shall be derecognized and the
rights or obligations arising or retained during the transfer shall be separately recognized as assets or liabilities; if
control over the financial assets is retained, relevant financial assets shall be continuously recognized according to
the extent of involving in the financial assets transferred and relevant liabilities shall be recognized accordingly.
(4) Classification and measurement of financial liabilities
Financial liabilities shall be classified as financial liabilities measured at amortized cost and financial
liabilities at fair value through profit or loss upon initial recognition.
1) Initial measurement of financial liabilities
Any financial liability meeting any of the following conditions can be designated upon initial measurement
as the financial liabilities at fair value through profit or loss: a) This designation can eliminate or significantly
reduce accounting mismatch; b) According to the risk management or investment strategy of the Company as
stated in formal written document, the portfolio of financial liabilities or the portfolio of financial assets and
financial liabilities is managed and evaluated on the basis of fair value, and reported to the key management on
the basis of this inside the Company; c) This financial liability contains embedded derivative to be separately split.
The Company shall determine classification of the financial liabilities upon initial recognition. For financial
liabilities at fair value through profit or loss, relevant transaction expenses shall be directly included in current
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profit or loss; relevant transaction expenses of financial liabilities measured at amortized cost shall be included in
the initial recognition amount.
2) Subsequent measurement of financial liabilities
a) Financial liabilities measured at amortized cost: The Company subsequently measures such financial
liabilities at amortized costs by effective interest method. The gain or loss from derecognition or amortization
shall be included in current profit/loss.
b) Financial liabilities at fair value through profit or loss: Including held-for-trading financial liabilities
(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value through
profit or loss upon initial recognition.
Held-for-trading financial liabilities (including derivative instruments belonging to financial liabilities) shall
be subsequently measured at fair value (except for those concerning hedge accounting) with changes in fair value
included in current profit or loss.
For financial liabilities designated as measured at fair value through profit or loss, changes in fair value
arising from change of the credit risk of the Company shall be included in other comprehensive income;
accumulative gain or loss previously included in other comprehensive income shall be transferred from other
comprehensive income to retained earnings. Other changes in fair value shall be included in current profit or loss.
If previous accounting treatment may cause or expand the accounting mismatch in profit or loss, all gains or
losses of such financial liabilities (including the amount affected by change in credit risk of the Company) shall be
included in current profit or loss.
(5) Offset of financial assets and financial liabilities
When the following conditions are met at the same time, the financial assets and financial liabilities shall be
presented as net amount after offset in the balance sheet: The Company has the legal right to offset the recognized
amount and may exercise such legal right currently; the Company plans to settle with net amount or realize the
financial asset and pay off the financial liability simultaneously.
(6) Fair value determination of financial instruments
For financial instruments with active market, the fair value shall be determined by the quotation in the active
market. For financial instruments without active market, the fair value shall be determined by valuation technique.
The Company shall adopt the valuation technique which is applicable in current situation and supported by
sufficient available data and other information for valuation. The Company shall choose inputs which are
consistent with the characteristics of assets or liabilities considered by the market participant in the transaction of
relevant assets and liabilities, and give priority to relevant observable inputs. If it is impossible or impractical to
obtain relevant observable inputs, the Company may use unobservable inputs.
(7) Impairment of financial instruments
The Company shall recognize provisions for loss of the financial assets measured at the amortized cost,
investments in debt instruments at fair value through other comprehensive income, contract asset, lease
receivables, loan commitment and financial guarantee contracts based on the expected credit loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contract cash flows discounted by the Company at
the original effective interest rate and receivable according to the contract and all expected cash flows received,
namely the present value of all cash shortage. Among which, the financial assets purchased or originated that have
suffered from credit impairment shall be discounted at the effective interest rate of the financial assets after credit
adjustment.
Lifetime expected credit loss refers to the expected credit loss possibly incurred during the expected lifetime
of financial instruments due to defaults.
12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (if the
expected lifetime of the financial instrument is less than 12 months, the expected lifetime) after the balance sheet
date due to possible defaults of financial instruments and is an integral part of the lifetime expected credit loss.
On the balance sheet date, the Company measured the expected credit loss of financial instruments at
different stages, respectively. If the credit risk of a financial instrument has not increased significantly since the
initial recognition, the financial instrument is in Stage 1, and the Company measures the provisions for loss
according to the 12-month expected credit loss; if the credit risk of a financial instrument has increased
significantly but the credit impairment has not yet occurred since the initial recognition, the financial instrument is
in Stage 2, and the Company measures the provisions for loss according to the lifetime expected credit losses; if
the financial instrument has suffered credit impairment since the initial recognition, it is in Stage 3, and the
Company measures the provisions for loss according to the lifetime expected credit loss.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly since the initial recognition, and the Company measures the provisions
for loss according to the 12-month expected credit loss.
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For financial instruments with low credit risk in Stage 1 and Stage 2, the Company shall calculate the
interest income according to the carrying amount and effective interest rate before deducting the provisions for
impairment. For financial instruments in Stage 3, the Company shall calculate the interest income according to the
amortized cost and effective interest rate of the carrying amount after withdrawing the provisions for impairment.
For notes receivable and accounts receivable, regardless of whether there is major financing, the Company
shall always consider all reasonable and sound information, including prospective information, to estimate
expected credit loss of the above accounts receivable individually or in combination and adopt the simplified
model of expected credit loss. The Company shall always measure the provisions for loss according to the lifetime
expected credit loss.
1) Accounts receivable
a) At the end of the Reporting Period, if there is objective evidence indicating that impairment has occurred
in an account receivable, impairment test shall be carried out separately on it, such as accounts receivable in
dispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is
likely to fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debt
provisions shall be made based on the balance between the present value of future cash flows and its carrying
value.
b) If there is no objective evidence indicating that impairment or the credit loss of a single financial asset
cannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups by
characteristics of credit risk. The expected credit loss shall be calculated based on the combinations. Basis for
determining the combinations is as below:
Item Determination Basis
Bank acceptance bill group Bank acceptance bill
Commercial acceptance bills group Commercial acceptance bills
Accounts receivable group Receivables from related parties
Accounts receivable group External customer
Other receivables group Receivables from and payables to related parties
Other receivables group Cash float, deposits and other receivables with low credit risk
Other receivables group Other amounts
For accounts receivable divided into risk groups, the Company, with reference to historical experience in
credit loss and based on current situation and forecast of future economic situation, shall prepare a comparison
table between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expected
credit losses. For other groups, the Company, with reference to historical experience in credit loss and based on
current situation and forecast of future economic situation, shall calculate the expected credit losses according to
the exposure at default and the 12-month or lifetime expected credit loss rate.
2) Debt investments and other debt investments
For debt investment and other debt investments, the Company shall calculate the expected credit loss
according to the nature of investment, types of counterparty and risk exposure, exposure at default and the
12-month or lifetime expected credit loss rate.
The Company shall include the provision or reversal for loss made or included in current profit or loss. For
investment in debts instruments at fair value through other comprehensive income, the Company shall adjust other
comprehensive income when the impairment loss or gain is included in current profit or loss; for financial assets
measured at amortized cost, the provision for loss shall offset the carrying value of such financial assets.
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 Baijiu are measured at actual cost and priced by
weighted average method when sent out; paper, printing ink, and auxiliary materials for producing printed matters
are measured at planned cost when purchased and sent out, with the difference between actual cost and planned
cost included in “materials cost difference”. The difference to be amortized by the materials sent out shall be
calculated by materials cost difference by category at the end of the month, so as to adjust cost of the materials
sent out into actual cost; goods in process, self-manufactured semi-finished products, and finished products are
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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 balance sheet date, the inventories shall be measured at the lower of cost and net realizable value. If
cost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shall
be made and included in current profit or loss.
Net realizable value refers to the amount after deducting the cost estimated until completion, estimated
selling expenses, and relevant taxes from the estimated selling price of the inventory.
The Company shall determine the net realizable value of inventories based on solid evidence obtained and
after taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheet
events. Materials held for use in the production of inventories are measured at cost if the net realizable value of
the finished products in which they will be incorporated is higher than their cost; decline in the price of materials
indicates that the cost of the finished products exceeds their net realizable value, the materials are measured at net
realizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on the
contract price. If the quantities held by the Company is higher than the quantities of inventories specified in sales
contracts, the net realizable value of the excess portion of inventories shall be based on general selling price.
Any of the following circumstances usually indicates that net realizable value of an inventory is lower than
the cost.
1) Market price of the inventory declines continuously and there is no hope of rising in the foreseeable
future.
2) The cost of products produced by the Company with such raw materials is higher than the selling price of
the product.
3) The raw material inventory no longer satisfies the needs of new products due to upgrade of products, and
the market price of the raw material is lower than the book cost.
4) The market price declines gradually due to obsolete goods or service provided by the Company, or
change of market demands due to change of consumer preference.
5) Other circumstances which are sufficient to prove substantial impairment of the inventory.
The Company shall usually determine the falling price reserves of inventories on an item-by-item basis. For
inventories in large amount and low unit price, provision for inventory falling price reserves may be made by
category of the inventories. For item of inventories relating to a product line that is produced and marketed in the
same geographical area, have the same or similar end uses or purposes, and cannot be practically measured
separately from other items, provision for inventory falling price reserves may be made on an aggregate basis.
The Company shall determine the net realizable value of inventories on the balance sheet date. When factors
causing written-down of the inventory value disappear, the amount written down shall be recovered and will be
reversed from the provided inventory falling price reserves. The amount reversed will be included in current profit
or loss.
(4) Inventory system of inventories
The perpetual inventory system is adopted.
(5) Amortization method for low-value consumables
Low-value consumables shall be amortized according to one-off amortization method.
12. Contract assets and contract liabilities
Under the contract between the Company and the customer, the Company shall be entitled to receive the
contract price for the goods transferred to the customer and for the related services provided, while at the same
time assuming the performance obligation to transfer the goods or services to the customer. When the customer
has actually paid the contract consideration or the enterprise has transferred goods or services to the customer
before such consideration is due and payable, the right to receive the consideration for the transferred goods or
services should be presented as a contract asset and recognized as an accounts receivable when the unconditional
right to receive is obtained; conversely, the Company's obligation to transfer goods or services to the customer for
the consideration received or receivable from the customer should be presented as a contract liability. Any
contract liability shall be recognised as revenue when the Company fulfils its obligation to transfer goods or
provide services to the customer. The Company presents contract asset and contract liability under the same
contract on a net basis.
13. 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
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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 three months).
If the transaction between non-related parties fails to be completed within one year due to one of the
following circumstances which is over the control of the Company, and the Company still promises to sell the
non-current assets or disposal groups, the Company should continue to classify the non-current assets or disposal
groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions that lead to extension of the
sale. The Company has already acted on these conditions in a timely manner and it is expected to be able to
successfully deal with the conditions that led to the extension of the sale within one year after the conditions were
set; 2) due to unusual circumstances, the non-current assets or disposal groups held-for-sale failed to be sold
within one year. In the first year, the Company has taken necessary measures for these new conditions and the
assets or disposal groups meet the conditions of held-for-sale again.
(2) Measurement of non-current assets or disposal groups held for sale
1) Initial measurement and subsequent measurement
When the Company initially measures or remeasures non-current assets or disposal groups held for sale on
the balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs, the
carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down
will be recognized as asset impairment loss and included in current profit and loss, and provision for impairment
of assets held for sale will be made.
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall be measured
at the lower of net amount of initial measurement amount minus sales cost and that of fair value minus selling
expenses, assuming they were not classified as held-for-sale during initial measurement. Except for non-current
assets or disposal groups acquired from business combination, the difference arising from taking the net amount
of fair value minus sales cost as initial measurement amount of the non-current assets or disposal groups shall be
included in current profit or loss.
For the recognized amount of asset impairment loss of the disposal groups held for sale, the carrying value
of goodwill of the disposal groups shall be offset first, and then the carrying value of various non-current assets in
the disposal groups shall be offset by proportions.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or
amortization. Interest and other expenses of liabilities in the disposal group held for sale shall still be recognized.
2) Accounting treatment for reversal of asset impairment loss
If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheet
date minus the sale costs increases, the previous written-down amount will be restored and reversed from the asset
impairment loss recognized after the assets are classified as held-for-sale. The reversed amount shall be included
in the current profit or loss. The asset impairment loss recognized before being classified as held-for-sale shall not
be reversed.
If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet date
minus the sale costs increases, the previous written-down amount will be restored and reversed from the asset
impairment loss recognized for non-current assets after the assets are classified as held-for-sale. The reversed
amount shall be included in the current profit or loss. The carrying value of goodwill which had been written
down and the asset impairment loss recognized before non-current assets being classified as held-for-sale shall not
be reversed.
For the recognized amount of asset impairment loss of the disposal groups held for sale which is reserved
subsequently, the carrying value shall be increased according to the proportion of carrying value of various
non-current assets (except for goodwill) in the disposal groups.
3) Accounting treatment for assets no longer classified as held-for-sale and derecognition
When a non-current assets or disposal group ceases to be classified as held-for-sale or a non-current asset is
removed from the disposal group held for sale due to failure in meeting the classification conditions for the
category of held-for-sale, it will be measured by one of the followings, whichever is lower: a) Amount after
adjusting the carrying value before being classified as held for sale according to the depreciation, amortization or
impairment that would have been recognized under the assumption that it was not classified as held for sale; b) the
recoverable amount.
The gain or loss not yet recognized shall be included in current profit or loss when recognizing the
non-current assets or disposal groups held for sale.
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14. Long-term equity investments
(1) Determination of initial investment cost
a) Long-term equity investment from business combination
1) For the long-term equity investment in subsidiaries acquired through business combination involving
enterprises under the common control, the share of the carrying value of the owners' equity of the combined party
in the ultimate controller's consolidated financial statements on the date of combination shall be taken as the initial
investment cost of the long-term equity investment. The share premium of the capital reserve shall be adjusted
with the difference between the initial investment cost of the long-term equity investment and the carrying value
of the consideration paid. If the share premium of the capital reserve is insufficient for writing down, the retained
earnings shall be adjusted.
2) For long-term equity investments in subsidiaries acquired through business combinations involving
enterprises not under the common control, initial investment cost of the investment shall be the fair value of the
assets paid, liabilities incurred or assumed and equity securities issued by the Company in exchange for control
over the acquiree on the date of acquisition. For long-term equity investment in subsidiaries acquired through
business combination involving enterprises not under the common control implemented by multiple transactions,
the initial investment cost shall be the sum of the carrying value of equity investment held by the Company in the
acquiree before the date of acquisition and the cost of new investment on the date of acquisition.
b) For long-term equity investment acquired by cash payment, the initial investment cost shall be the
purchase price actually paid. The initial investment cost includes fees, taxes and other necessary expenses directly
related to acquire the long-term equity investment.
c) For long-term equity investment acquired by issuing equity securities, the initial investment cost of
long-term equity investment obtained by issuing of equity securities shall be the fair value of issuing the equity
securities.
d) The initial investment cost of long-term equity investment obtained by the exchange of non-monetary
assets shall be the fair value of the assets surrendered and relevant taxes payable if the exchange of non-monetary
assets has commercial nature and the fair value of the assets received or surrendered may be reliably measured,
unless there is conclusive evidence providing that fair value of the assets received is more reliable. For exchange
of non-monetary assets not meeting the above conditions, the initial investment cost shall be the carrying value of
the assets surrendered and relevant taxes payable.
e) The initial investment cost of a long-term equity investment obtained by debt restructuring shall be
recognized at the fair value.
(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 return on investment.
The long-term equity investment in associates and joint ventures is accounted by the equity method.
If the initial cost of long-term equity investment is greater than the fair value of identifiable net assets of the
invested company gained from the investment, the initial cost of long-term equity investment shall not be adjusted.
If the initial investment cost is smaller than the fair value of identifiable net assets of the invested company gained
from the investment, the difference shall be included in current profit or loss, and the cost of long-term equity
investments shall be adjusted.
After the Company obtains a long-term equity investment, it shall, in accordance with the share of the net
profits and other comprehensive income of the invested company to be enjoyed or shared, recognize the return on
investment and other comprehensive income respectively, and adjust the carrying value of the long-term equity
investment. The Company shall, in accordance with the share in the profits or cash dividends declared and
distributed by the invested company, decrease the carrying value of the long-term equity investment accordingly.
As for other changes in owners' equity except for the net profit and loss, other comprehensive income and
profit distribution of the invested company, the Company shall adjust the carrying value of the long-term equity
investment and include it into the owners' equity. When the share of the net profit or loss of the invested company
is recognized, the net profit of the invested company shall be adjusted and recognized according to the fair value
of the net identifiable assets of the invested company when the investment is made.
For the transactions between the Company and associates and joint ventures, the unrealized gains and losses
of the internal transactions shall be offset by the proportion attributable to the Company, and the return on
investment is recognized accordingly. Unrecorded internal transaction losses incurred between the Company and
the invested company shall be recognized in full if they fell under asset impairment loss.
The Company shall recognize the net losses of the invested company until the carrying value of the
long-term equity investment and other long-term rights and interests which substantially form the net investment
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made to the invested company are reduced to zero, unless the Company has the obligation to undertake extra
losses. If the invested company realizes a net profit in the subsequent period, the Company shall restore the
recognition of its share in profits after its share in profits offsets the share in unrecognized losses.
If the accounting policy and accounting period adopted by the invested company are inconsistent with those
adopted by the Company, financial statements of the invested company shall be adjusted and return on investment
and other comprehensive income shall be recognized according to the accounting policy and accounting period of
the Company.
(3) Disposal of long-term equity investments
In disposal of the long-term equity investment, the balance between the carrying value and the actual price at
which the investment is obtained shall be included in current profit or loss.
For long-term equity investment accounted by the equity method, the part of the investment originally
included in other comprehensive income shall be accounted for on the same basis as the invested company's direct
disposal of the relevant assets or liabilities when disposed. The owners' equity recognized as a result of changes in
other owners' equity other than net profit or loss, other comprehensive income, and profit distribution of the
invested company is carried forward proportionally into current profit or loss, except for other comprehensive
income arising from changes due to remeasurement of net liabilities or net assets of the defined benefit plan.
In case of loss of common control or significant influence on the invested company due to disposal of part of
the equity investments, residual equity will be accounted by the recognition and measurement criterion for
financial instruments. The difference between the fair value on the date of losing common control or significant
influence and the carrying value shall be included in current profit or loss. Other comprehensive income
recognized due to accounting of the original equity investment by equity method shall be accounted for on the
same basis as the invested company’s direct disposal of the relevant assets or liabilities when stopping using
equity method. Owner’s equity recognized due to other changes in other owners’ equity other than the net profit
or loss, other comprehensive income and profit distribution of the invested company will all be carried forward
into current profit or loss when stop using equity method.
If the Company disposes of part of the equity investment and loses control over the invested company, and if
the remaining equity after disposal can implement joint control or exert significant influence on the invested
company, it shall be accounted for using the equity method when the individual financial statements are prepared,
and the equity shall be adjusted as if the remaining equity had been accounted for using the equity method since
acquired; if the remaining equity after disposal cannot implement joint control or exert significant influence on the
invested company, it shall be subject to accounting treatment in accordance with the relevant provisions of the
criteria for recognition and measurement of financial instruments. The difference between the fair value and the
carrying value on the date of losing control shall be included in the current profit or loss.
If the disposed equities are acquired by the business combination due to the reasons such as additional
investment, the remaining equities after the disposal shall be calculated based on the cost method or equity
method in preparing the individual financial statements, and other comprehensive income and other owners'
equity recognized because of the equity method adopted for the calculation of the equity investment held prior to
the date of acquisition are carried forward in proportion; if the remaining equities after the disposal shall be
changed to be accounted in accordance with the recognition and measurement criterion for financial instruments,
other comprehensive income and other owners' equity shall be carried forward in full.
(4) Determination basis of common control and significant influence on the invested company
Common control means common control over an arrangement according to relevant provisions, and the
decision-making for relevant activities of such arrangement needs unanimous agreement of all participants sharing
the control.
Significant influence means having the power to participate in decision-making of the financial and
operating policies of the invested company, but not the power to control or jointly control the formulation of these
policies together with other parties.
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 of more than one year and high unit value.
Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and other
expenditures incurred before and for making the fixed assets reach its intended condition for use directly
attributable to such assets.
Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and for
making the fixed assets reach its intended condition for use.
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Book value of fixed assets invested by investors shall be the value recognized by the investors.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting the
recognition conditions for fixed assets, and shall be included in current profit or loss if not meeting the recognition
conditions for fixed assets.
(2) Depreciation method
Category Depreciation Method Depreciation Life Residual Rate Yearly Depreciation Rate
Tenements and Buildings Straight-line method 25-30 years 3%-5% 3.17-3.88%
General equipment Straight-line method 10-12 years 3%-5% 7.92-9.70%
Specialised equipment Straight-line method eight years 3%-5% 11.18-12.13%
Transport equipment Straight-line method six years 3%-5% 15.83-16.17%
Other equipment Straight-line method six years 3%-5% 15.83-16.17%
Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line
method (the straight-line depreciation) from the second month after they reach their intended serviceable
condition.
16. Construction in progress
(1) For construction in progress, book value of the fixed assets shall be the necessary expenditures incurred
before the assets reach its intended condition for use.
(2) 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 included in the cost of such assets; other
interest of borrowings, and amortization of discounts or premiums shall be included in expenses in current period.
The exchange differences incurred from special foreign currency borrowings for acquisition and construction or
production of fixed assets and investment properties shall be capitalized and included in the cost of such assets if
it is within the capitalization period. Auxiliary expenses for special borrowings, if incurred before the fixed assets
acquired or constructed reach the intended condition for use, shall be capitalized at the time of occurrence; other
auxiliary expenses shall be recognized as expenses in current period and included in current profit or loss.
(2) Capitalization period of borrowing costs:
a) Commencement of capitalization: Capitalization of borrowing interest, amortization of discount or
premium, and exchange differences shall be commenced when all the following conditions are met.
1) Asset expenditure has already occurred.
2) Borrowing costs have already occurred.
3) Acquisition and construction activities necessary to bring the assets to the intended condition for use have
already begun.
b) Suspension of capitalisation: Where the acquisition and construction of a fixed asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall
be suspended and the borrowing costs shall be recognized as current expenses until recommencement of the
acquisition and construction of the asset.
c) Termination of capitalization: When the fixed assets acquired and constructed reach the intended
condition for use, capitalization of the borrowing costs shall be terminated.
(3) Capitalized amount of borrowing costs:
Capitalized amount of interest of special borrowings during each accounting period shall be the amount of
interest expenses actually incurred in the current period less the interest income of the borrowings unused and
deposited in bank or the amount of return on investment from temporary investment. Interest of general
borrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements of
the excess of accumulated asset disbursements over the special borrowings by the capitalization rate of used
general borrowings.
(4) Determination principles of capitalization rate:
The capitalization rate is calculated by weighted average interest rate of general borrowings.
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18. Right-of-use assets
Refer to "Part X, V. Significant Accounting Policies and Accounting Estimates, 28. Lease".
19. Intangible assets
(1) Valuation method, service life and impairment test
a) 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.
b) 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.
c) 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 costs
The expenditures of the Company’s internal research and development projects are divided into research
phase expenditures and development phase expenditures.
Research phase expenditures shall be included in current profit or loss when incurred.
Development phase expenditures can be capitalized and recognized as intangible assets only when meeting
all of the following conditions, otherwise shall be included in current profit or loss when incurred:
a) It is technically feasible to complete this intangible assets so that it can be used or sold.
b) The Company has the intention to complete the intangible assets and use or sell them.
c) The way in which intangible assets generate economic benefits, including the ability to prove that the
products produced using the intangible assets exist in the market or the intangible assets themselves exist in the
market, and the intangible assets will be used internally, can prove their usefulness; sufficient technical, financial
resources and other resources support to complete the development of the intangible asset and the ability to use or
sell the intangible asset; the expenditure attributable to the development phase of the intangible asset can be
reliably measured.
20. Long-term asset impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress,
intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, an
impairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less than its
carrying value according to the test, provision for impairment will be made at the difference and included in
impairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting the
disposal expenses and the present value of estimated future cash flow of the asset. The provision for impairment
of assets is calculated and made on an individual basis. If it is difficult for the Company to estimate the
recoverable amount of the individual asset, the recoverable amount of an asset group, to which the said asset
belongs, shall be determined. Asset group is the smallest asset group that can independently generate cash
inflows.
For goodwill, impairment test shall be conducted at least at the end of each year. Impairment test shall be
carried out in combination with the relevant asset group or combination of asset group.
The carrying value of goodwill caused by business combination is amortized to relevant asset groups with a
reasonable method from the date of acquisition when the Company carries out impairment test on goodwill; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When
the carrying value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall be
evenly amortized according to the proportion of the fair value of each assets group or combination of assets
groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value
cannot be reliably measured, it should be amortized according to the proportion of the carrying value of each asset
group or combination of assets groups in the total carrying value of assets groups or combinations of assets
groups.
When making an impairment test on the relevant assets groups or combination of assets groups containing
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goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the
Company shall first conduct an impairment test on the assets groups or combinations of assets groups not
containing goodwill, calculate the recoverable amount and compare it with relevant carrying value to recognize
the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or
combinations of assets groups containing goodwill, and compare the carrying value of these assets groups or
combinations of assets groups (including the carrying value of the goodwill apportioned thereto) with the
recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups
is lower than the carrying value thereof, the Company shall recognize the impairment loss of goodwill.
The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.
21. Long-term prepaid expense
Long-term prepaid expense is recorded according to the actual amount incurred and amortized over the
benefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expense
item cannot benefit a later accounting period, the amortized value of the item that has not been amortized shall be
transferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement of fixed
assets under operating lease shall be amortized averagely within the benefit period.
22. Employee benefits
(1) Accounting treatment of short-term remuneration
Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within 12
months after the end of the year in which the employee provided relevant services.
During the accounting period when employees serve the Company, the actual short-term remuneration is
recognized as liabilities and included in current profit or loss or costs of relevant assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits refer to various compensations and benefits to be provided by the enterprise after
retirement from or termination of the 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.
a) Defined contribution plan: Contribution which shall be made by the Company separately on the balance
sheet date in exchange for the service provided by the employee during the accounting period shall be recognized
as payroll liabilities and included in current profit or loss or relevant asset cost.
b) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method, the
benefit obligations arising from the defined benefit plan shall be attributable to the period in which the employee
provides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement of
the net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income and
shall not be reversed to profit or loss in subsequent accounting periods.
(3) Accounting treatment of 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 included in current profit or loss on the earlier date of:
a) 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.
b) 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.
23. Lease liabilities
Refer to "Part X, V. Significant Accounting Policies and Accounting Estimates, 28. Lease".
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24. Provisions
(1) Recognition criteria for provisions
When obligations related to contingencies meet the following conditions, the Company shall recognize them
as provisions:
a) The obligation is the current obligation assumed by the Company.
b) The performance of this obligation may result in the outflow of economic benefits.
c) The amount of this obligation can be reliably measured.
(2) Measurement method of provisions
Considering the risks, uncertainties, and time value of money related to contingencies, the provisions shall
be initially measured at the best estimate of the required expenditure for the performance of current obligation. If
the time value of money is significant, the best estimate shall be determined after discounting relevant future cash
outflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjust the
carrying value to reflect current best estimate.
25. Revenue
Accounting policy for recognition and measurement of 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:
a) The customer acquires and consumes the economic benefits of the Company's performance at the same
time as the Company's performance;
b) The customer controls the goods under construction during the performance of the Company;
c) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect money for the accumulated performance that has been completed so far
during the whole contract period.
For performance obligations performed within a certain period, the Company recognizes revenue according
to the performance progress within that period, except that the performance progress cannot be reasonably
determined. The Company determines the performance progress of the services provided according to the input
method (or output method). When the performance progress cannot be reasonably determined, if the costs
incurred by the Company are expected to be compensated, the revenue shall be recognized according to the
amount of costs incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods. When judging whether the customer has acquired
control of goods or services, the Company will consider the following indications:
a) The Company has a present right to receive payment for the goods or services, i.e. the customer has a
present obligation to pay for the goods;
b) The Company has transferred legal ownership of the goods to the customer, i.e. the customer has legal
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ownership of the goods;
c) The Company has physically transferred the goods to the customer, i.e. the customer has taken physical
possession of the goods;
d) The Company has transferred to the customer the principal risks and rewards of ownership of the goods,
i.e., the customer has acquired the principal risks and rewards of ownership of the good;
e) The customer has accepted the goods.
(2) Recognition methods of revenues
a) Recognition methods of revenues for distribution model
The Company arranges logistics delivery to the customer's designated location, delivers the goods to the
buyer according to the contract, and recognizes revenue after the buyer signs for it;
b) Recognition methods of revenues for direct sales model
1. 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;
2. On-line sales; Revenue is recognized when the Company receives the payment transferred from the
e-commerce platform from the consumer.
26. Government subsidy
(1) Judgment basis and accounting treatment of asset-related government subsidies
The asset-related government subsidies refer to the government subsidies obtained by the Company and
used for acquisition or construction or for formation of long-term assets in other ways, including the financial
allocation for purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assets
and others.
The specific standard of the Company for classifying the government subsidies as asset-related subsidies:
government subsidies obtained by the Company and used for acquisition or construction or for formation of
long-term assets in other ways.
If the government documents do not specify the target of the subsidies, the basis that the Company classifies
the government subsidies as asset-related subsidies or income-related subsidies were as follows: Whether the
subsidies are used for acquisition or construction or for formation of long-term assets in other ways.
Timing of recognition of asset-related government subsidies of the Company: Government subsidies, when
actually received, shall be recognized as deferred income and transferred equally to current profit or loss based on
the expected service life of the long-term assets when the long-term assets are available for use.
The asset-related government subsidies are recognized as deferred income, and included in current profit or
loss by stages based on the service life of the assets acquired and constructed. If the related asset is sold,
transferred, scrapped or damaged before the end of the service life, the deferred income balance not yet distributed
shall be transferred to the profits and losses of the period in which the assets are disposed.
(2) Judgment basis and accounting treatment of income-related government subsidies
Income-related government subsidies refer to all the government subsidies other than asset-related
government subsidies.
The specific standard of the Company for classifying the government subsidies as income-related subsidies:
All the government subsidies other than asset-related government subsidies.
Timing of recognition of income-related government subsidies of the Company: Government subsidies,
when actually received, shall be included in current profit or loss if used to compensate the relevant expenses or
losses of the Company in the subsequent period; included in current profit or loss directly when acquired if used
to compensate relevant expenses or losses incurred by the Company.
Income-related government subsidies used to compensate the relevant expenses or losses of the Company in
the subsequent period shall be recognized as deferred income when acquired; included in current profit or loss in
the period in which relevant expenses are recognized; those used to compensate relevant expenses or losses
incurred by the Company, shall be directly included in profit or loss directly when they are received.
(3) The government subsidies related to daily activities of the Company shall be included in other incomes
or used to offset relevant costs and expenses according to the substance of the economic business. The
government subsidies irrelevant to the daily activities of the Company shall be included in non-operating revenue.
27. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognized according
to the difference (temporary difference) between the tax base and carrying value of the assets and liabilities.
Deductible losses that can be carried forward to the subsequent year to offset taxable income according to the tax
law shall be considered as temporary difference, and corresponding deferred income tax assets shall be
recognized.
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For temporary differences related to the initial recognition of goodwill, corresponding deferred income tax
liabilities shall not be recognized. For the temporary differences related to the initial recognition of the assets or
liabilities incurred in the transaction not for business combination that will not affect the accounting profits and
taxable income (or deductible losses), corresponding deferred income tax assets and deferred income tax liabilities
shall not be recognized. The deferred income tax assets and deferred income tax liabilities are measured on the
balance sheet date according to the applicable tax rate in the period of expected recovery of relevant assets or
liquidation of relevant liabilities.
Deferred income tax assets shall be recognized within the limit of taxable income which the Company may
obtain for deducting deductible temporary differences, deductible losses and tax deduction. Deferred income tax
assets and deferred income tax liabilities arising from temporary differences related to the investment in
subsidiaries and associates shall be recognized. If the time of reversal of temporary differences can be controlled
by the Company and the temporary differences are likely to not be reversed in the foreseeable future, deferred
income tax assets and liabilities shall not be recognized.
28. Leases
From the effectiveness date of a contract, the Company assesses whether the contract is a lease or includes
any lease. If a party to the contract transfers the right allowing the control over the use of one or more assets that
have been identified within a certain period, in exchange for a consideration, such contract is a lease or includes a
lease.
(1) Accounting treatment of the Company as the lessee
On the commencement date of the lease term, except for short-term leases and leases of low-value assets
being adopted simplified treatment, the Company recognises right-of-use assets or lease liabilities for the lease.
Right-of-use assets shall be initially measured at costs, including: a) The initial measurement amount of the
lease liabilities; b) the lease payment paid on or before the commencement date of the lease term. If there is a
lease incentive, the amount related to the lease incentive taken should be deducted; c) the initial direct cost
incurred by the lessee; d) the estimated cost that the Company will use to pull down and remove the leasehold
property, and restore the site of the leasehold property or restore the leasehold property to the state agreed in the
lease clauses (excluding the costs incurred by inventories for production).
The lease liabilities shall be initially measured at the present value of the unpaid lease payment from the
commencement date of the lease term. When calculating the present value of lease payments, the Company uses
the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,
the Company’s incremental lending rate is used as the rate of discount.
After the commencement date of the lease term, the Company subsequently measures the right-of-use assets
at cost model, and the right-of-use assets are subject to depreciation by using the straight-line method. Meanwhile,
the interest expenses of the lease liabilities in each period of the lease term are calculated, and shall be included in
the profit or loss for the current period, unless otherwise stipulated to be included in underlying asset costs.
Variable lease payments that are not covered in the measurement of the lease liabilities are included in current
profit or loss when actually incurred, unless otherwise stipulated to be included in underlying asset costs.
For short-term leases and leases of low-value assets, the Company chooses not to recognise right-of-use
assets and lease liabilities. They are included in relevant asset cost or the profit or loss for the current period in the
straight-line method in each period of the lease term.
(2) Accounting treatment of the Company as the lessor
a) Classification of lease
The Company classifies leases into finance leases and operating leases at the inception of leases. A finance
lease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, are
substantially transferred, regardless of whether the ownership is eventually transferred or not. An operating lease
refers to all leases other than finance leases.
b) Accounting treatment of financial lease
On the commencement date of the lease term, the Company recognises the finance lease receivables for the
finance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance lease
receivables, the sum of the unsecured residual value and the present value of the lease payments receivable not yet
received on the commencement date of the lease term discounted at the interest rate implicit in lease is the book
value of the finance lease receivables. The Company calculates and recognises the interest income in each period
within the lease term at a fixed interest rate implicit in the lease. The received variable lease payments that are not
included in the measurement of the net investment in the lease are included in profit or loss for the current period
when they are actually incurred.
c) Accounting treatment of operating lease
The Company recognises the lease payments receivable of the operating lease as rental earning in each
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period within the lease term on a straight-line basis or according to other systematic and reasonable methods. The
initial direct costs related to the operating lease are capitalised, amortised within the lease term on the same basis
as the recognition of rental earning, and included in profit or loss for the current period. The received variable
lease payments related to the operating lease that are not included in the lease payments receivable are included in
profit or loss for the current period when they are actually incurred.
29. Changes to Significant Accounting Policies and Estimates
(1) Changes to Significant Accounting Policies
√ Applicable □ Not applicable
Change and reason Approval procedure Note
As the Ministry of Finance issued in December 2018 the revised
Accounting Standard No. 21 for Business Enterprises—Leases
(hereinafter, the “New Lease Standard”), the Company has adopted the Approved at the 94th Meeting of the Fifth Board of
New Lease Standard since 1 January 2021 and has prepared the Directors
financial statements according to the New Lease Standard, with no
retrospective restatement of the comparative data.
(2) Changes to Significant Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Relevant Financial Statement Line Items at the Beginning of 2021 when the New
Lease Standard Was First Adopted
√ Applicable □ Not applicable
Indicate whether the balance sheet line items at the beginning of the year were adjusted.
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets：
Monetary assets 68,209,577,022.61 68,209,577,022.61
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial
assets
Derivative financial assets
Notes receivable 18,568,421,154.30 18,568,421,154.30
Accounts receivable 41,496,170.35 41,496,170.35
Receivables financing 2,024,442,016.72 2,024,442,016.72
Prepayments 247,259,080.42 247,259,080.42
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 36,199,607.12 36,199,607.12
Of which: Interest
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 13,228,273,631.45 13,228,273,631.45
Contract assets
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Assets held for sale
Current portion of
non-current assets
Other current assets
Total current assets 102,355,668,682.97 102,355,668,682.97
Non-current assets：
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity
1,849,977,103.30 1,849,977,103.30
investments
Other equity investments
Other non-current financial
1,200,000.00 1,200,000.00
assets
Investment property
Fixed assets 5,866,880,860.03 5,866,880,860.03
Construction in progress 1,482,098,184.64 1,482,098,184.64
Productive living assets
Oil and gas assets
Right-of-use assets 146,707,923.47 146,707,923.47
Intangible assets 433,611,890.55 433,611,890.55
Development costs
Goodwill 1,621,619.53 1,621,619.53
Long-term prepaid expense 122,881,072.66 122,881,072.66
Deferred income tax assets 1,486,071,579.95 1,486,071,579.95
Other non-current assets 293,128,020.09 293,128,020.09
Total non-current assets 11,537,470,330.75 11,684,178,254.22 146,707,923.47
Total assets 113,893,139,013.72 114,039,846,937.19 146,707,923.47
Current liabilities：
Short-term borrowings
Borrowings from the central
bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 763,628,891.84 763,628,891.84
Accounts payable 3,382,875,146.71 3,382,875,146.71
Advances from customers 23,949,793.92 23,949,793.92
Contract liabilities 8,618,543,467.25 8,618,543,467.25
Financial assets sold under
repurchase agreements
Customer deposits and
deposits from other banks and
financial institutions
Payables for acting trading of
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securities
Payables for underwriting of
securities
Employee benefits payable 3,629,524,988.52 3,629,524,988.52
Taxes and levies payable 5,542,200,330.67 5,542,200,330.67
Other payables 2,800,763,582.13 2,800,763,582.13
Of which: Interest payable
Dividends
37,918,093.23 37,918,093.23
payable
Fees and commissions
payable
Reinsurance payables
Liabilities directly associated
with assets held for sale
Current portion of 72,747,645.81 72,747,645.81
non-current liabilities
Other current liabilities 1,117,452,799.61 1,117,452,799.61
Total current liabilities 25,878,939,000.65 25,951,686,646.46 72,747,645.81
Non-current liabilities：
Insurance contract reserve
Long-term borrowings
Bonds payable
Of which: Preference
shares
Perpetual bonds
Lease liabilities 73,960,277.66 73,960,277.66
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 255,953,368.36 255,953,368.36
Deferred income tax
liabilities
Other non-current liabilities
Total non-current liabilities 255,953,368.36 329,913,646.02 73,960,277.66
Total liabilities 26,134,892,369.01 26,281,600,292.48 146,707,923.47
Owners’ equity：
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which: Preference
shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 19,698,525,995.51 19,698,525,995.51
General reserve
Retained earnings 59,443,191,559.08 59,443,191,559.08
Total equity attributable to owners 85,705,972,645.74 85,705,972,645.74
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
of the Company as the parent
Non-controlling interests 2,052,273,998.97 2,052,273,998.97
Total owners’ equity 87,758,246,644.71 87,758,246,644.71
Total liabilities and owners’ equity 113,893,139,013.72 114,039,846,937.19 146,707,923.47
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets：
Monetary assets 35,797,929,213.94 35,797,929,213.94
Held-for-trading financial
assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayments 75,493,465.93 75,493,465.93
Other receivables 7,066,125,125.42 7,066,125,125.42
Of which: Interest
0.00 0.00
receivable
Dividends
734,729,782.94 734,729,782.94
receivable
Inventories
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets
Toal current assets 42,939,547,805.29 42,939,547,805.29
Non-current assets：
Debt investments
Other debt investments
Long-term receivables
Long-term equity
13,315,418,495.83 13,315,418,495.83
investments
Other equity investments
Other non-current financial
1,200,000.00 1,200,000.00
assets
Investment property
Fixed assets 94,199,222.32 94,199,222.32
Construction in progress 105,734,347.80 105,734,347.80
Productive living assets
Oil and gas assets
Right-of-use assets 3,517,015.52 3,517,015.52
Intangible assets 44,593,088.87 44,593,088.87
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 2,288,329.69 2,288,329.69
Other non-current assets
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Total non-current assets 13,563,433,484.51 13,566,950,500.03 3,517,015.52
Total assets 56,502,981,289.80 56,506,498,305.32 3,517,015.52
Current liabilities：
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 781,064.42 781,064.42
Advances from customers
Contract liabilities
Employee benefits payable 8,803,447.13 8,803,447.13
Taxes and levies payable 33,466,208.83 33,466,208.83
Other payables 210,715,274.14 210,715,274.14
Of which: Interest payable
Dividends
payable
Liabilities directly associated
with assets held for sale
Current portion of 1,359,693.96 1,359,693.96
non-current liabilities
Other current liabilities
Total current liabilities 253,765,994.52 255,125,688.48 1,359,693.96
Non-current liabilities：
Long-term borrowings
Bonds payable
Of which: Preference
shares
Perpetual bonds
Lease liabilities 2,157,321.56 2,157,321.56
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 500,000.00 500,000.00
Deferred income tax
liabilities
Other non-current liabilities
Total non-current liabilities 500,000.00 2,657,321.56 2,157,321.56
Total liabilities 254,265,994.52 257,783,010.04 3,517,015.52
Owners’ equity：
Share capital 3,881,608,005.00 3,881,608,005.00
Other equity instruments
Of which: Preference
shares
Perpetual bonds
Capital reserves 2,682,647,086.15 2,682,647,086.15
Less: Treasury shares
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Other comprehensive income
Specific reserve
Surplus reserves 9,464,358,442.95 9,464,358,442.95
Retained earnings 40,220,101,761.18 40,220,101,761.18
Total owners’ equity 56,248,715,295.28 56,248,715,295.28
Total liabilities and owners’ equity 56,502,981,289.80 56,506,498,305.32 3,517,015.52
(4) Retrspective Restatement of Comparative Data due to the First Adoption of the New Lease Standard in
2021
□ Applicable √ Not applicable
VI Taxes
1. Main taxes and tax rates
Tax Item Tax Basis Tax Rate
13% (paid after offsetting input
VAT Taxable sales revenue
tax)
Consumption tax Taxable price or ex-factory price 10%, 20%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 25%
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Note on disclosure of taxpayer applying different corporate income tax rates:
Name of taxpayer Income tax rate
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. 15%
Sichuan Yibin Plastic Packaging Materials Company Limited 15%
Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. 15%
Yibin Xinxing Packaging Co., Ltd. 20%
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) Value added tax (VAT)
In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate of
social welfare enterprise "F.Q.ZH.Z. No. 51004121049" issued by the Department of Civil Affairs of Sichuan
Province. The Company, conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VAT
Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the State
Administration of Taxation (C.SH. [2016] No. 52), enjoys the drawback policy of value-added tax. Recoverable
value-added tax of each month = Number of disabled person employed by the taxpayer in current month x
quadruple of the minimum wage of current month. The amount of value-added tax refunded in 2021 was
RMB23,654,400.00.
According to the Notice of Taxation on Printing the Catalog of Preferential Value-added Tax for
Comprehensive Utilization of Resources and Service (C.SH. [2015] No. 78) of the Ministry of Finance and the
State Administration of Taxation, the steam, white carbon black, lactic acid, and calcium lactate products sold by
Sichuan Yibin Wuliangye Environmental Protection Industry 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 1
July 2015. The amount of value-added tax refunded in 2021 was RMB868,593.00.
(2) Corporate income tax
Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials Company
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Limited, and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to the
Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Corporate
Income Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of the
Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission)
has been filed with the Local Taxation Bureau of Yibin for preferential corporate income tax and pays the
corporate income tax at 15%.
Yibin Xinxing Packaging Co., Ltd., 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 Taxation (C.SH. [2019] No. 13), and
the Announcement of the Ministry of Finance and the State Taxation Administration on Implementing the
Preferential Income Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial
Households ([2021] No. 12), which specifying that if the annual taxable income of small low-profit enterprises is
less than RMB1 million, the taxable income shall be 12.5% of such annual taxable income and the corporate
income tax rate shall be 20%; if the annual taxable income is more than RMB1 million but less than RMB3
million, the taxable income shall be 50% of such annual taxable income and the corporate income tax rate shall be
20%.
VII Notes to Main Items of Consolidated Financial Statements
1. Monetary assets
Unit: RMB
Item Closing balance Opening balance
Cash on hand 21,897.04 25,283.79
Bank deposit 82,028,143,002.95 67,880,479,453.44
Other monetary assets 307,791,027.75 329,072,285.38
Total 82,335,955,927.74 68,209,577,022.61
Including: Total amount of funds restricted in use due
307,498,340.40 329,069,085.01
to mortgage, pledge or freezing
Other notes
(1) Other monetary assets includes the balance of securities trading of RMB3,211.55 deposited with Yibin
Business Department of Essence Securities, deposit of bank acceptance of RMB307,240,205.65, and other
deposits of RMB547,610.55.
(2) There is no other monetary assets being restricted in use due to mortgage, pledge or freezing except for
the other monetary assets above-mentioned; and there are 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
Item Closing balance Opening balance
Bank acceptance bill 23,859,058,132.07 18,568,421,154.30
Total 23,859,058,132.07 18,568,421,154.30
Unit: RMB
Closing balance Opening balance
Bad debt
Carrying amount Provisions Carrying amount Bad debt provision
Category
Carrying value Carrying value
Amount Proportion Amount Provision Amount Proportion Amount Provision
proportion proportion
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(%) (%)
Including:
Notes
receivable
with bad
debt 23,859,058,132.07 100.00% 23,859,058,132.07 18,568,421,154.30 100.00% 18,568,421,154.30
provision
by
combination
Including:
Bank
acceptance 23,859,058,132.07 100.00% 23,859,058,132.07 18,568,421,154.30 100.00% 18,568,421,154.30
bill
Total 23,859,058,132.07 100.00% 23,859,058,132.07 18,568,421,154.30 100.00% 18,568,421,154.30
To accrue bad debt provision for notes receivable under the expected general model of credit loss, please
refer to the disclosure of other receivables to disclose relevant information on bad debt provision:
□ Applicable √ Not applicable
(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 balance sheet date
The Company had no notes receivable endorsed or discounted by the Company at the end of the period and
not expired yet on the balance sheet date.
(4) Notes transferred to accounts receivable by the Company at the end of the period due to failure of the
drawer to perform
Notes transferred to accounts receivable by the Company at the end of the period due to failure of the drawer
to perform.
(5) Notes receivable actually written off in the current period
The Company had no notes receivable actually written off in the current period.
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3. Accounts receivable
(1) Disclosure of account receivable by category
Unit: RMB
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Provision Carrying value Provision Carrying value
Amount Proportion Amount proportion Amount Proportion Amount proportion
(%) (%)
Account receivable with bad debt
1,508,250.71 2.08% 1,508,250.71 100.00% 1,508,250.71 3.10% 1,508,250.71 100.00%
provision by single item
Including:
External customer 1,508,250.71 2.08% 1,508,250.71 100.00% 1,508,250.71 3.10% 1,508,250.71 100.00%
Account Receivable with bad debt
70,910,703.98 97.92% 6,717,587.76 9.47% 64,193,116.22 47,158,692.98 96.90% 5,662,522.63 12.01% 41,496,170.35
provision by combination
Including:
External customer 50,946,303.21 70.35% 6,717,587.76 13.19% 44,228,715.45 36,342,444.48 74.68% 5,662,522.63 15.58% 30,679,921.85
Related parties 19,964,400.77 27.57% 19,964,400.77 10,816,248.50 22.22% 10,816,248.50
Total 72,418,954.69 100.00% 8,225,838.47 11.36% 64,193,116.22 48,666,943.69 100.00% 7,170,773.34 14.73% 41,496,170.35
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Bad debt provision by single item:
Unit: RMB
Closing balance
Name
Carrying amount Bad debt provision Provision proportion (%) Reasons for provision
Ningxiahong Zhongning Expected to be
516,135.60 516,135.60 100.00%
Wolfberry Products Co., Ltd. unrecoverable
Nanxi Daliangxin Food Co., Expected to be
389,729.12 389,729.12 100.00%
Ltd. unrecoverable
Hunan Liuyanghe Liquor Expected to be
308,155.34 308,155.34 100.00%
Industry Co., Ltd. unrecoverable
Sichuan Debo Daily Expected to be
294,230.65 294,230.65 100.00%
Commodity Co., Ltd. unrecoverable
Total 1,508,250.71 1,508,250.71 -- --
Bad debt provision by combination:
Unit: RMB
Closing balance
Name
Carrying amount Bad debt provision Provision proportion (%)
Accounts receivable with bad debt provision
50,946,303.21 6,717,587.76 13.19%
by combination of external customer
Accounts receivable with bad debt provision
19,964,400.77
by combination of related parties
Total 70,910,703.98 6,717,587.76 --
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (inclusive) 63,898,370.53
1 to 2 years 1,716.00
2 to 3 years 688,873.50
More than 3 years 7,829,994.66
3 to 4 years 707,449.35
4 to 5 years 594,959.25
More than 5 years 6,527,586.06
Total 72,418,954.69
(2) Provision, recovery or reversal of bad debt provision in the current period
Bad debt provision in the current period:
Unit: RMB
Changes in the current period
Category Opening balance Recovery or Write- Closing balance
Provision Others
reversal off
Account receivable with bad debt provision
1,508,250.71 1,508,250.71
by single item
Accounts receivable with bad debt provision
5,662,522.63 1,055,065.13 6,717,587.76
by combination of external customer
Total 7,170,773.34 1,055,065.13 8,225,838.47
(3) Accounts receivable actually written off in the current period
The Company had no accounts receivable actually written off in the current period.
(4) Accounts receivable with top 5 closing balances by debtor
Unit: RMB
Unit name Closing balance of Proportion in total closing balance of Closing balance of bad
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
accounts receivable accounts receivable debt provision
China Tobacco Sichuan Industrial
21,502,320.26 29.69% 1,075,116.01
Co., Ltd.
Sichuan Putian Packaging Co., Ltd. 12,850,871.27 17.75%
Chengdu PUTH Medical Plastics
3,838,157.14 5.30%
Packaging Co., Ltd.
Chengdu Huayu Glass
2,735,249.77 3.78%
Manufacturing Co., Ltd.
Yibin Haisite Fiber Co., Ltd. 2,588,160.78 3.57% 129,408.04
Total 43,514,759.22 60.09%
(5) Amount of assets and liabilities formed due to the transfer of accounts receivable and continuous
involvement
At the end of the period, the Company had no assets or liabilities formed due to the transfer of accounts
receivable and continuous involvement.
(6) Accounts receivable derecognized due to the transfer of financial assets
At the end of the period, the Company had no accounts receivable derecognized due to the transfer of
financial assets.
4. Receivables financing
(1) Receivables financing presented by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 1,641,509,588.69 2,024,442,016.72
Total 1,641,509,588.69 2,024,442,016.72
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 included in other
comprehensive income.
Unit: RMB
Closing balance Opening balance
Bad debt
Carrying amount Carrying amount Bad debt provision
Category Provisions
Provision Carrying value Provision Carrying value
Amount Proportion Amount proportion Amount Proportion Amount proportion
(%) (%)
Receivables
financing
with bad
debt
provision
by single
item
Receivables
financing
with bad
debt 1,641,509,588.69 100.00% 1,641,509,588.69 2,024,442,016.72 100.00% 2,024,442,016.72
provision
by
combination
Including:
Bank 1,641,509,588.69 100.00% 1,641,509,588.69 2,024,442,016.72 100.00% 2,024,442,016.72
acceptance
bill
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Total 1,641,509,588.69 100.00% 1,641,509,588.69 2,024,442,016.72 100.00% 2,024,442,016.72
(2) Receivables financing pledged by the Company at the end of the period
Unit: RMB
Item Pledged amount at the end of the period
Bank acceptance bill 118,374,800.00
Total 118,374,800.00
Notes: The bank acceptance 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) Receivables financing endorsed or discounted by the Company at the end of the period and not expired
yet on the balance sheet date
Unit: RMB
Amount not yet derecognized at the end
Item Amount derecognized at the end of the period
of the period
Bank acceptance bill 4,611,755,615.98
Total 4,611,755,615.98
(4) Receivables financing transferred the notes to accounts receivable by the Company at the end of the
period due to failure of the drawer to perform.
(5) The Company had no receivables financing actually written off at the end of the period.
5. Prepayments
(1) Prepayments presented by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within one year 147,104,566.14 75.19% 159,490,040.03 64.50%
1 to 2 years 8,669,096.35 4.43% 5,065,482.28 2.05%
2 to 3 years 2,832,862.76 1.45% 1,903,024.39 0.77%
More than three years 37,046,449.17 18.93% 80,800,533.72 32.68%
Total 195,652,974.42 -- 247,259,080.42 --
Reasons for non-timely settlement of prepayments in significant amount with the aging more than one year:
Prepayments with the aging more than one year are mainly the prepayments to Yibin Guoding Gas Co., Ltd.
for the gas source as agreed.
(2) Prepayments of top 5 closing balances by prepayment object
Unit: RMB
Proportion in closing balance of
Unit name Closing balance
prepayments
China National Petroleum Corporation, Southwest Chemical Sales
36,274,416.03 18.54%
Branch
Yibin Guoding Gas Co., Ltd. 28,160,000.00 14.39%
Sichuan Yibin Push Group Co., Ltd. 24,826,236.07 12.69%
Sinopec Chemical Commercial Holding Company Limited, Central
11,347,949.14 5.80%
China Branch
Ningbo Haiyiyuan Trade Co., Ltd. 9,909,981.60 5.07%
Total 110,518,582.84 56.49%
6. Other receivables
Unit: RMB
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Item Closing balance Opening balance
Other receivables 26,288,496.24 36,199,607.12
Total 26,288,496.24 36,199,607.12
(1) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature of receivable Closing carrying amount Opening carrying amount
Cash float 4,850,891.36 4,126,194.86
Current account 3,783,822.76 9,851,782.12
Deposit 18,850,679.72 17,389,932.95
Other advance money for others or
5,464,059.31 10,563,309.32
temporary payment
Total 32,949,453.15 41,931,219.25
2) Provision for bad debt
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit loss for the
Bad debt provision Expectation over the Expected credit loss for the Total
entire duration
coming 12 months entire duration
(credit impairment has
Credit loss (no credit impairment)
occurred)
Balance on 1 January 2021 5,727,742.28 3,869.85 5,731,612.13
Balance on 1 January 2021 in the
—— —— —— ——
current period
- Transferred to Stage 2
- Transferred to Stage 3 -617,114.83 617,114.83
- Transferred back to Stage 2
- Transferred back to Stage 1
Provisions in the current period 1,546,459.61 1,546,459.61
Amount transferred back for the
current period
Amount charged off for the
current period
Amount written-off for the
617,114.83 617,114.83
current period
Other changes
Balance on 31 December 2021 6,657,087.06 3,869.85 6,660,956.91
Large carrying amount change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within one year (inclusive) 9,816,868.06
1 to 2 years 8,074,168.96
2 to 3 years 4,909,988.06
More than three years 10,148,428.07
3 to 4 years 6,450,493.49
4 to 5 years 501,781.87
More than five years 3,196,152.71
Total 32,949,453.15
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3) Provision, recovery or reversal of bad debt provision in the current period
Bad debt provision in the current period:
Unit: RMB
Changes in the current period
Closing
Category Opening balance Recovery
Provision Write-off Others balance
or reversal
Other receivables with bad debt provision by
3,869.85 3,869.85
single item
Other receivables with bad debt provision by
5,727,742.28 1,546,459.61 617,114.83 6,657,087.06
credit risk combination
Total 5,731,612.13 1,546,459.61 617,114.83 6,660,956.91
4) Other receivables actually written off in the current period
Unit: RMB
Item Written-off Amount
Sugar and Wine Procurement and Supply Station of Yibin City 617,114.83
Total 617,114.83
5) Other receivables of top 5 closing balances by debtor
Unit: RMB
Proportion in
Nature of total closing Closing balance of
Unit name Closing balance Aging
receivables balance of other bad debt provision
receivables
Yibin Cuiping District Housing and
Deposit 5,000,000.00 3-4 years 15.17% 1,500,000.00
Urban-Rural Development Bureau
Yibin Zhongqi Natural Gas Co., Ltd. Deposit 4,000,000.00 1-2 years 12.14% 400,000.00
Advance
Chongqing Xibolesi Building
money for 1,671,340.32 More than five years 5.07% 1,337,072.26
Engineering Co., Ltd.
others
China National Petroleum Corporation, Temporary Within one year; 1-2
1,388,663.25 4.21% 98,040.87
Sichuan Yi Saibin Sales Branch payment years
Sinopec Marketing Co., Ltd., Sichuan Temporary Within one year; 1-2
1,013,299.80 3.08% 63,460.13
Luzhou Branch payment years
Total -- 13,073,303.37 -- 39.68% 3,398,573.26
7. Inventory
(1) Classification of inventory
Unit: RMB
Closing balance Opening balance
Allowance for Allowance for
market market
diminution in diminution in
value of value of
Item inventory or inventory or
Carrying amount Carrying value Carrying amount Carrying value
depreciation depreciation
reserves of reserves of
contract contract
performance performance
costs costs
Raw materials 775,478,393.21 6,475,077.13 769,003,316.08 1,006,752,368.41 5,500,972.51 1,001,251,395.90
Goods in
1,140,224,322.36 1,140,224,322.36 964,076,320.20 964,076,320.20
process
Inventory of
1,609,230,590.03 31,291,117.30 1,577,939,472.73 1,715,227,321.75 28,068,948.50 1,687,158,373.25
goods
Turnover 2,481,991.95 436,409.41 2,045,582.54 4,509,057.31 436,409.41 4,072,647.90
139
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
materials
Goods issued 191,350,703.16 1,956,236.12 189,394,467.04 217,544,735.96 2,339,349.95 215,205,386.01
Goods in
31,656,238.05 31,656,238.05 2,121,297.94 2,121,297.94
transit
Semi-finished
10,218,594,324.45 150,386.01 10,218,443,938.44 9,290,022,881.61 151,805.88 9,289,871,075.73
products
Packing
16,029,954.45 15,916,796.10 113,158.35 35,637,606.57 15,916,796.10 19,720,810.47
materials
Manufacturing
consignment 86,246,622.66 86,246,622.66 44,796,324.05 44,796,324.05
materials
Total 14,071,293,140.32 56,226,022.07 14,015,067,118.25 13,280,687,913.80 52,414,282.35 13,228,273,631.45
(2) Classification of merchandise on hand
Unit: RMB
Closing balance Opening balance
Item Falling price Falling price
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Liquors 1,045,634,821.36 1,045,634,821.36 1,107,242,109.83 1,107,242,109.83
Plastic products 383,408,719.29 2,133,613.56 381,275,105.73 407,641,508.37 2,376,198.91 405,265,309.46
Printing 52,359,687.34 13,613,249.08 38,746,438.26 87,914,622.34 13,613,249.08 74,301,373.26
Glass bottle 71,528,868.04 10,402,859.31 61,126,008.73 95,200,289.49 6,459,504.39 88,740,785.10
Others 56,298,494.00 5,141,395.35 51,157,098.65 17,228,791.72 5,619,996.12 11,608,795.60
Total 1,609,230,590.03 31,291,117.30 1,577,939,472.73 1,715,227,321.75 28,068,948.50 1,687,158,373.25
(3) Allowance for market diminution in value of inventory or depreciation reserves of contract
performance costs
Unit: RMB
Increased amount for the current Decreased amount for the
period current period
Item Opening balance Closing balance
Reversed or
Provision Others Others
written-off
Raw materials 5,500,972.51 985,537.59 11,432.97 6,475,077.13
Inventory of goods 28,068,948.50 6,545,950.11 3,323,781.31 31,291,117.30
Turnover materials 436,409.41 436,409.41
Packing materials 15,916,796.10 15,916,796.10
Goods issued 2,339,349.95 383,113.83 1,956,236.12
Semi-finished
151,805.88 1,419.87 150,386.01
products
Total 52,414,282.35 7,531,487.70 3,719,747.98 56,226,022.07
(4) Note on closing balance of inventory containing the capitalized amount of borrowing costs
None
(5) Notes of the amount of contract performance costs amortized for the current period
None
8. Long-term equity investments
Unit: RMB
Increase/decrease in the current period
Closing
Invested Opening balance Profit and Adjustment of Changes Declaration of Accrual of Closing balance balance of
company (carrying value) Additional Reduced loss on other
in other
cash
depreciation Others (carrying value) depreciation
investment investment investments comprehensive dividends or reserve
equities reserves
recognized income profits
140
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
with equity
method
I. Joint Ventures
II. Associates
Oriental
Outlook Media 21,121,415.30 4,444,523.01 25,565,938.31
Co., Ltd.
Sichuan Yibin
Wuliangye
1,817,394,942.42 89,958,470.13 41,720,016.00 1,865,633,396.55
Group Finance
Co., Ltd.
Beijing
Zhongjiuhuicui
Education and 5,625,000.00 -116,870.39 5,508,129.61
Technology
Co., Ltd.
Yibin Jiamei
Intelligent
11,460,745.58 3,060,443.58 14,521,189.16
Packaging Co.,
Ltd.
Sub-total 1,849,977,103.30 5,625,000.00 97,346,566.33 41,720,016.00 1,911,228,653.63
Total 1,849,977,103.30 5,625,000.00 97,346,566.33 41,720,016.00 1,911,228,653.63
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 RMB17.15 million in April
2005, acquiring 49% of the equity of Oriental Outlook Media Co., Ltd. held by China Worldbest Group, Shanghai
Worldbest Co., Ltd. and Shanghai Tiancheng Chuangye Development Co., Ltd.
(2) As reviewed and approved by the 22th meeting of the 4th Board of Directors of the Company on 24
October 2012, the Company, Yibin Wuliangye Group Company and six 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 RMB2 billion, among which the Company
contributed RMB720 million, taking up 36% of the registered capital.
On 23 May 2020, the 74th meeting of the 5th Board of Directors of the Company considered and approved
the capital increase of the Company to Wuliangye Group Finance based on the net asset value per share of
Wuliangye Group Finance evaluated at RMB1.3817 per share as consideration for the capital increase of
RMB734,693,877.55, of which: RMB531,731,835.82 was credited to registered capital and RMB202,962,041.73
was credited to capital reserve. In this capital increase, the related party Sichuan Yibin Wuliangye Group Co., Ltd.
increased its capital at the same price, and the remaining shareholders of Wuliangye Group Finance did not
participate in this capital increase. After the completion of this capital increase, the registered capital of
Wuliangye Group Finance increased from RMB2 billion to RMB3,085,619,164.80, and the shareholding ratio of
the Company was changed to 40.56%.
(3) In 2019, Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., a holding subsidiary of the Company, and
Shenzhen Jinjia New Intelligent Packaging Co., Ltd. jointly invested and established Yibin Jiamei Intelligent
Packaging Co., Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co., Ltd. include research and
development, platemaking, printing, production and sales of packaging products. Its registered capital is RMB20
million, among which Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd. contributed RMB9.8 million, taking
up 49% of the registered capital.
(4) As reviewed and approved by the 85th meeting of the 5th Board of Directors of the Company on 5
February 2021, the Company, Beijing Zhongjiuhuicui Exhibition Co., Ltd. Sichuan Wine and Tea Investment
Group Co., Ltd., Sichuan Science and Engineering Asset Management Co., Ltd., Sichuan Jingwei Education
Management Group Co., Ltd., and Yibin Vocational & Technical College Asset Operation and Management Co.,
Ltd. jointly invested and established Beijing Zhongjiuhuicui Education and Technology Co., Ltd. Its registered
capital is RMB54 million, among which the Company contributed RMB11.25 million, taking up 20.83% of the
registered capital.
141
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
9. Other non-current financial assets
Unit: RMB
Item Closing balance Opening balance
Sichuan Chinese Liquor Jinshanjiao Brand Operation and
1,200,000.00 1,200,000.00
Development Co., Ltd.
Total 1,200,000.00 1,200,000.00
10. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 5,607,863,056.26 5,866,732,589.90
Disposal of fixed assets 2,283,944.11 148,270.13
Total 5,610,147,000.37 5,866,880,860.03
(1) Information on fixed assets
Unit: RMB
Tenements and Specialised Transport
Item General equipment Other equipment Total
buildings equipment equipment
I. Original
Carrying Value:
1. Opening
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
2. Increased
amount for the 38,397,830.64 69,593,618.16 97,511,021.61 11,739,942.74 49,384,805.52 266,627,218.67
current period
(1)
30,219,321.46 44,903,017.28 82,851,614.45 11,739,942.74 35,825,225.07 205,539,121.00
Acquisition
(2)
Transferred from
8,178,509.18 24,690,600.88 14,659,407.16 13,559,580.45 61,088,097.67
construction in
progress
(3) Increase
from business
combination
3. Decreased
amount for the 121,921,255.99 37,093,695.31 154,368,791.26 3,741,898.74 11,919,316.62 329,044,957.92
current period
(1) Disposed
121,921,255.99 37,093,695.31 154,368,791.26 2,772,824.49 11,919,316.62 328,075,883.67
or scrapped
(2) Donation 969,074.25 969,074.25
(3) Others
4. Closing
8,797,174,386.17 3,093,820,422.08 2,167,789,285.29 163,972,215.17 681,867,695.24 14,904,624,003.95
balance
II. Accumulated
Depreciation
1. Opening
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
2. Increased
amount for the 270,559,730.89 60,976,972.99 58,208,585.01 13,376,043.75 23,944,148.81 427,065,481.45
current period
(1)
270,559,730.89 60,976,972.99 58,208,585.01 13,376,043.75 23,944,148.81 427,065,481.45
Provisions
3. Decreased
amount for the 33,103,442.41 35,079,192.29 148,187,531.17 2,333,048.96 11,461,762.70 230,164,977.53
current period
142
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(1) Disposed
33,103,442.41 35,079,192.29 148,187,531.17 1,412,428.42 11,461,762.70 229,244,356.99
or scrapped
(2) Donation 920,620.54 920,620.54
(3) Others
4. Closing
4,133,514,850.60 2,809,105,163.85 1,677,332,760.07 105,098,035.25 563,256,309.76 9,288,307,119.53
balance
III. Depreciation
Reserves
1. Opening
1,544,029.33 5,782,681.58 656,514.70 919,312.08 8,902,537.69
balance
2. Increased
amount for the
current period
(1)
Provisions
3. Decreased
amount for the 448,709.53 448,709.53
current period
(1) Disposed
448,709.53 448,709.53
or scrapped
4. Closing
1,544,029.33 5,782,681.58 656,514.70 470,602.55 8,453,828.16
balance
IV. Carrying Value
1. Closing
4,662,115,506.24 278,932,576.65 489,800,010.52 58,874,179.92 118,140,782.93 5,607,863,056.26
carrying value
2. Opening
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
carrying value
(2) Fixed assets that are temporarily idle
The Company has no major fixed assets that are temporarily idle.
(3) Fixed assets leased out by operating lease
Unit: RMB
Item Closing carrying value
Tenements 112,367,470.11
Warehouse 25,637,174.87
Equipment 9,532,305.38
Total 147,536,950.36
(4) Fixed assets without certificate of title
Unit: RMB
Item Carrying value Reason for not obtaining certificate of title
The certificate of title has not been obtained due to historical reasons, to
Tenements 822,213,835.87 which the Company has attached great importance and planned to obtain the
certificate of title gradually.
Tenements 3,750,813.38 In progress
Total 825,964,649.25
Other 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.
(5) Disposal of fixed assets
Unit: RMB
Item Closing balance Opening balance
143
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Equipment 2,283,944.11 148,270.13
Total 2,283,944.11 148,270.13
11. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 2,643,541,772.83 1,480,337,105.88
Project goods and materials 2,546,073.18 1,761,078.76
Total 2,646,087,846.01 1,482,098,184.64
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Item
Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
The liquor packaging and
integrated smart
653,863,297.65 653,863,297.65 162,362,443.37 162,362,443.37
storage-and-delivery
project
Technological Innovation
Project for Storing Blended 561,927,859.73 561,927,859.73 178,703,412.28 178,703,412.28
Liquor
300-Thousand-Ton Pottery
Jar Aging Spirit Room 551,044,953.58 551,044,953.58 528,404,511.04 528,404,511.04
(Phase I)
Hongba New Park
Supporting Facilities 170,985,026.40 170,985,026.40 86,449,743.23 86,449,743.23
Construction Project
Brewing Special Grain
Process Bin & Milling
110,513,220.77 110,513,220.77 20,257,399.24 20,257,399.24
Automation Renovation
Project
Pipe Network
Reconstruction Project of 37,438,811.11 37,438,811.11 38,083,788.58 38,083,788.58
Jiangbei Park
Phase II of
90-Thousand-Ton Pottery
Jar Aging Spirit Room 32,843,685.42 32,843,685.42 28,264,685.42 28,264,685.42
Technical innovation
Project (Phase VI)
Factory Buildings and
Other Buildings
34,238,205.03 34,238,205.03 30,408,205.03 30,408,205.03
Renovation Project of the
Company (Phase II)
Anlequan Scenic Area
Upgrade Emergency 29,657,494.28 29,657,494.28 18,618,699.97 18,618,699.97
Project
503 Workshop Appearance
20,968,792.45 20,968,792.45 20,102,188.68 20,102,188.68
Upgrade
Pilot Project for the 18,606,364.43 18,606,364.43
144
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Expansion of the Research
and Application of
Traditional Solid Baijiu
Production Responding to
the Restriction of High
temperature in Hot Season
Coal-to-Gas Energy
Conservation and Emission
14,992,917.35 14,992,917.35 13,191,272.30 13,191,272.30
Reduction Project (Phase
III)
Emergent Maintenance and
Rectification of Ageing
Group 521-2
13,790,000.00 13,790,000.00
(Sixty–Thousand-Tons)
Wine Cellar and Adjacent
Accommodation
Wuliangye distillery Main
Water Pipe Renovation 12,551,990.72 12,551,990.72 10,551,990.72 10,551,990.72
Project
506 Workshop Blending
Center Upgrading and 10,376,158.46 10,376,158.46
Renovation Project
523 Workshop 1-80 Span
Tool Room Upgrade 16,691,460.19 16,691,460.19
(Emergency)
Partial Overhead Lines
Underlay Reconstruction
10,698,865.18 10,698,865.18
Project of the Trunk Road
of the East and West Gates
Other sporadic works 372,143,001.00 2,400,005.55 369,742,995.45 319,948,446.20 2,400,005.55 317,548,440.65
Total 2,645,941,778.38 2,400,005.55 2,643,541,772.83 1,482,737,111.43 2,400,005.55 1,480,337,105.88
145
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(2) Changes in important construction in progress in the current period
Unit: RMB
Including:
Amount Proportion Capitalization
Other Accumulated Capitalized
Increased amount transferred to of project rate of
decreased Engineering amount of amount of Source of
Project name Budget Opening balance for the current fixed assets in Closing balance input to interest in the
amount in the progress interest interest in funds
period the current the budget current
current period capitalized the current
period (%) period
period
Owned
The liquor packaging and integrated 19.00% and
8,596,655,000.00 162,362,443.37 491,500,854.28 653,863,297.65 7.61%
smart storage-and-delivery project (Note) raised
funds
Owned
and
Technological Innovation Project raised
1,726,166,000.00 178,703,412.28 383,224,447.45 561,927,859.73 32.55% 75.00%
for Storing Blended Liquor funds
and
subsidies
Owned
300-Thousand-Ton Pottery Jar funds
857,070,000.00 528,404,511.04 22,640,442.54 551,044,953.58 64.31% 99.00%
Aging Spirit Room (Phase I) and
subsidies
Hongba New Park Supporting Owned
655,122,000.00 86,449,743.23 84,535,283.17 170,985,026.40 26.51% 50.00%
Facilities Construction Project funds
Brewing Special Grain Process Bin
Owned
& Milling Automation Renovation 414,160,100.00 20,257,399.24 90,795,821.53 540,000.00 110,513,220.77 26.81% 80.00%
funds
Project
Pipe Network Reconstruction Owned
109,396,900.00 38,083,788.58 316,415.09 908,432.79 52,959.77 37,438,811.11 35.10% 99.80%
Project of Jiangbei Park funds
Phase II of 90-Thousand-Ton
Pottery Jar Aging Spirit Room Owned
50,552,120.00 28,264,685.42 4,579,000.00 32,843,685.42 64.97% 99.00%
Technical innovation Project (Phase funds
VI)
Factory Buildings and Other
Owned
Buildings Renovation Project of the 201,841,000.00 30,408,205.03 5,004,841.36 1,174,841.36 34,238,205.03 28.96% 30.00%
funds
Company (Phase II)
Anlequan Scenic Area Upgrade Owned
46,744,700.00 18,618,699.97 11,588,794.31 550,000.00 29,657,494.28 64.62% 99.00%
Emergency Project funds
Owned
503 Workshop Appearance Upgrade 69,690,500.00 20,102,188.68 866,603.77 20,968,792.45 30.09% 99.00%
funds
Pilot Project for the Expansion of 47,044,400.00 18,606,364.43 18,606,364.43 39.55% 90.00% Owned
146
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
the Research and Application of funds
Traditional Solid Baijiu Production
Responding to the Restriction of
High temperature in Hot Season
Coal-to-Gas Energy Conservation
Owned
and Emission Reduction Project 37,490,000.00 13,191,272.30 1,801,645.05 14,992,917.35 40.36% 98.00%
funds
(Phase III)
Emergent Maintenance and
Rectification of Ageing Group
Owned
521-2(Sixty–Thousand-Ton) Wine 24,575,200.00 13,790,000.00 13,790,000.00 56.11% 99.00%
funds
Cellar and Adjacent
Accommodation
Wuliangye distillery Main Water Owned
21,499,200.00 10,551,990.72 2,000,000.00 12,551,990.72 58.38% 95.00%
Pipe Renovation Project funds
506 Workshop Blending Center Owned
29,884,165.00 10,376,158.46 10,376,158.46 34.72% 82.00%
Upgrading and Renovation Project funds
523 Workshop 1-80 Span Tool Owned
28,774,300.00 16,691,460.19 16,691,460.19 58.01% 100.00%
Room Upgrade (Emergency) funds
Partial Overhead Lines Underlay
Owned
Reconstruction Project of the Trunk 17,600,000.00 10,698,865.18 681,552.82 9,360,425.61 2,019,992.39 64.66% 100.00%
funds
Road of the East and West Gates
Total 12,934,265,585.00 1,162,788,665.23 1,142,308,224.26 26,960,318.59 4,337,793.52 2,273,798,777.38 -- -- --
Notes: The total budget investment in liquor packaging and integrated smart storage-and-delivery project is RMB8,596,655,000, among which the investment in construction is RMB6,787,568,000,
with RMB1,809,087,000 of initial working capital. The project has two phases. The progress of the first phase is 65.00%, and the second phase will begin at the right time according to the production
and operations of the Company. The total progress of the two phases of the project is 19.00%.
147
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
(3) Project goods and materials
Unit: RMB
Closing balance Opening balance
Item Depreciation Carrying Depreciation
Carrying amount Carrying value Carrying value
reserves amount reserves
Project goods and materials 2,546,073.18 2,546,073.18 1,761,078.76 1,761,078.76
Total 2,546,073.18 2,546,073.18 1,761,078.76 1,761,078.76
12. Right-of-use assets
Unit: RMB
Tenements and Specialised Transport
Item Other equipment Land use right Total
buildings equipment equipment
I. Original Carrying
Value:
1. Opening balance 136,319,851.16 783,273.42 9,604,798.89 146,707,923.47
2. Increased amount
101,463,106.64 366,174.21 843,537,258.68 945,366,539.53
for the current period
(1) Operating leases 101,463,106.64 366,174.21 843,537,258.68 945,366,539.53
3. Decreased
amount for the current
period
4. Closing balance 237,782,957.80 366,174.21 783,273.42 9,604,798.89 843,537,258.68 1,092,074,463.00
II. Accumulated
Depreciation
1. Opening balance
2. Increased amount
108,633,309.38 81,372.04 656,756.01 3,717,986.64 281,179,086.24 394,268,510.31
for the current period
(1) Provisions 108,633,309.38 81,372.04 656,756.01 3,717,986.64 281,179,086.24 394,268,510.31
3. Decreased
amount for the current
period
(1) Disposal
4. Closing balance 108,633,309.38 81,372.04 656,756.01 3,717,986.64 281,179,086.24 394,268,510.31
III. Depreciation
Reserves
1. Opening balance
2. Increased amount
for the current period
(1) Provisions
3. Decreased
amount for the current
period
(1) Disposal
4. Closing balance
IV. Carrying Value
1. Closing carrying
129,149,648.42 284,802.17 126,517.41 5,886,812.25 562,358,172.44 697,805,952.69
value
2. Opening carrying
136,319,851.16 783,273.42 9,604,798.89 146,707,923.47
value
13. Intangible assets
(1) Intangible assets
Unit: RMB
148
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Non-patent Software Technology use
Item Land use right Patents Copyright Total
technology system right
I. Original Carrying
Value
1. Opening
476,822,915.18 118,491,146.69 10,391,942.73 8,066,037.47 613,772,042.07
balance
2. Increased
amount for the current 814,316.92 159,713,064.08 160,527,381.00
period
(1) Acquisition 814,316.92 159,713,064.08 160,527,381.00
(2) Internal
research and
development
(3) Increase
from business
combination
3. Decreased
amount for the current
period
(1) Disposal
4. Closing
477,637,232.10 278,204,210.77 10,391,942.73 8,066,037.47 774,299,423.07
balance
II. Accumulated
Amortization
1. Opening
118,738,571.80 49,747,231.31 10,330,008.81 1,344,339.60 180,160,151.52
balance
2. Increased
amount for the current 9,708,953.96 26,411,286.36 7,358.52 1,613,207.52 37,740,806.36
period
(1) Provisions 9,708,953.96 26,411,286.36 7,358.52 1,613,207.52 37,740,806.36
3. Decreased
amount for the current
period
(1) Disposal
4. Closing
128,447,525.76 76,158,517.67 10,337,367.33 2,957,547.12 217,900,957.88
balance
III. Depreciation
Reserves
1. Opening
balance
2. Increased
amount for the current
period
(1) Provisions
3. Decreased
amount for the current
period
(1) Disposal
4. Closing
balance
IV. Carrying Value
1. Closing
349,189,706.34 202,045,693.10 54,575.40 5,108,490.35 556,398,465.19
carrying value
2. Opening
358,084,343.38 68,743,915.38 61,933.92 6,721,697.87 433,611,890.55
carrying value
At the end of the current period, the intangible assets created by internal research and development of the
149
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Company accounts for 0.00% of the balance of intangible assets.
(2) Land use right failed to accomplish certification of property
None
14. Goodwill
(1) Original carrying value of goodwill
Unit: RMB
Increase in the current Decrease in the
Name of invested company or matters forming period current period Closing
Opening balance
goodwill Through business balance
Disposal
combination
Sichuan Yibin Global Group Shenzhou Glass Co.,
37,535.96 37,535.96
Ltd.
Sichuan Yibin Global Gelasi Glass Manufacturing
18,005.18 18,005.18
Co., Ltd.
Sichuan Yibin Plastic Packaging Materials
666,461.77 666,461.77
Company Limited
Sichuan Yibin Push Group 3D Co., Ltd. 899,616.62 899,616.62
Total 1,621,619.53 1,621,619.53
15. Long-term prepaid expense
Unit: RMB
Increased amount for Amount amortized to Other decreased
Item Opening balance Closing balance
the current period the current period amount
Mold 98,651,005.79 75,856,221.06 48,686,763.14 125,820,463.71
Overhaul expenses
17,106,052.30 14,101,989.53 6,397,683.02 24,810,358.81
of kilns
Others 7,124,014.57 603,754.54 2,846,245.81 4,881,523.30
Total 122,881,072.66 90,561,965.13 57,930,691.97 155,512,345.82
Other notes: Long-term prepaid expense 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 three years and four years, respectively.
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets which have not been offset
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for impairment
67,911,132.12 16,977,783.03 69,531,164.48 17,382,791.12
of assets
Unrealized profit of
896,183,664.84 224,045,916.21 687,396,568.96 171,849,142.24
internal transaction
Employee benefits
3,154,737,566.48 788,684,391.62 3,471,678,797.08 867,919,699.27
payable
Others 2,616,999,030.72 654,249,757.68 1,715,679,789.28 428,919,947.32
Total 6,735,831,394.16 1,683,957,848.54 5,944,286,319.80 1,486,071,579.95
(2) Details about deferred income tax assets which have not been recognized
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 14,562,119.04 7,594,646.58
Deductible losses 185,492,641.43 218,357,092.41
Total 200,054,760.47 225,951,738.99
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
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
Year Closing amount Opening amount Remarks
2021 11,226,757.85
2022 32,142,312.41 49,285,485.22
2023 81,397,256.28 85,123,732.43
2024 45,130,913.39 45,224,304.55
2025 26,822,159.35 27,496,812.36
2026
Total 185,492,641.43 218,357,092.41 --
17. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item Depreciati Depreciati
Carrying amount on Carrying value Carrying amount on Carrying value
reserves reserves
Advances of progress
payment for information 219,127,135.72 219,127,135.72 293,128,020.09 293,128,020.09
system construction
Total 219,127,135.72 219,127,135.72 293,128,020.09 293,128,020.09
18. Notes payable
Unit: RMB
Type Closing balance Opening balance
Bank acceptance 871,061,362.43 759,552,349.44
Letter of credit 978,877.44 4,076,542.40
Total 872,040,239.87 763,628,891.84
Total amount of notes payable which became matured but unpaid at the end of the current period is
RMB0.00.
19. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Accounts payable 5,403,561,392.95 3,382,875,146.71
Total 5,403,561,392.95 3,382,875,146.71
(2) Significant accounts payable over 1 year
Unit: RMB
Item Closing balance Reason for outstanding or carried forward
Project payment 18,198,628.68
Goods payment 9,307,397.79
Total 27,506,026.47 --
20. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
Item Closing balance Opening balance
Advances from customers 10,970,385.19 23,949,793.92
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Total 10,970,385.19 23,949,793.92
(2) Significant advances from customers over 1 year
There were no significant advances from customers over 1 year during the Reporting Period.
(3) Disclosure by aging
Unit: RMB
Aging Carrying amount
Within one year 6,481,320.02
1 to 2 years 501,697.77
2 to 3 years 3,798,601.72
More than three years 188,765.68
Total 10,970,385.19
(4) Advances from customers of top 5 closing balances
Unit: RMB
Proportion in closing balance of advances
Unit name Closing balance
from customers
Henan Huaibin Wulong Wine Industry Co., Ltd. 1,144,539.50 10.43%
Gubeichun Group Co., Ltd. 462,977.00 4.22%
ICBC Yibin Branch 299,520.00 2.73%
Chengdu Jinqiao Wine Co., Ltd. 260,000.00 2.37%
Hubei Shoukang Yongle Trading Group Co., Ltd. 200,001.86 1.82%
Total 2,367,038.36 21.58%
21. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances from customers 13,058,652,246.11 8,618,543,467.25
Total 13,058,652,246.11 8,618,543,467.25
22. Employee benefits payable
(1) Presentation of employee benefits payable
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
I. Short-term Remuneration 3,627,975,647.46 6,092,427,888.32 6,384,480,607.34 3,335,922,928.44
II. Post-Employment Benefits -
1,549,341.06 904,546,152.21 906,081,280.41 14,212.86
Defined Contribution Plans
III. Dismission Benefits 889,070.71 889,070.71
Total 3,629,524,988.52 6,997,863,111.24 7,291,450,958.46 3,335,937,141.30
(2) Presentation of short-term remuneration
Unit: RMB
Increase in the current Decrease in the
Item Opening balance Closing balance
period current period
1. Salaries, bonuses,
3,577,913,333.51 5,080,788,959.25 5,381,126,002.08 3,277,576,290.68
allowances and subsidies
2. Employee benefits 118,278,209.09 118,278,209.09
3. Social insurance charges 154,678.65 330,913,705.07 330,913,705.07 154,678.65
Including: Medical
154,486.34 245,683,049.74 245,683,049.74 154,486.34
insurance premium
Industrial injury
107.45 71,270,160.27 71,270,160.27 107.45
insurance premium
152
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Birth insurance
84.86 13,960,495.06 13,960,495.06 84.86
premium
4. Housing provident fund 28,412,333.00 448,233,484.20 444,178,038.20 32,467,779.00
5. Labor union expenditure
and personnel educational 21,495,302.30 114,213,530.71 109,984,652.90 25,724,180.11
fund
Total 3,627,975,647.46 6,092,427,888.32 6,384,480,607.34 3,335,922,928.44
(3) Presentation of defined contribution plans
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
1. Basic pension
1,549,341.06 677,084,056.26 678,619,184.46 14,212.86
insurance
2. Unemployment
35,824,569.37 35,824,569.37
insurance premium
3. Corporate pension
191,637,526.58 191,637,526.58
contribution
Total 1,549,341.06 904,546,152.21 906,081,280.41 14,212.86
23. Taxes and levies payable
Unit: RMB
Item Closing balance Opening balance
VAT 728,372,175.12 1,112,034,953.43
Consumption tax 1,334,494,888.87 1,606,202,793.99
Corporate income tax 2,815,738,734.80 2,516,790,391.94
Individual income tax 82,919,949.14 37,055,886.19
Urban maintenance and construction tax 187,159,402.54 248,199,304.35
Property tax 689,739.04 725,078.38
Stamp duty 1,929,855.79 831,884.22
Land use tax 1,064,621.99 1,075,376.54
Education surcharge 23,896,418.74 11,579,730.23
Local education surcharge 15,899,070.65 7,673,369.90
Environmental protection tax 18,848.22 31,561.50
Total 5,192,183,704.90 5,542,200,330.67
Other notes: The taxes and levies of the Company depend on the amount verified and imposed by the tax
authorities.
24. Other payables
Unit: RMB
Item Closing balance Opening balance
Dividend payable 37,436,404.82 37,918,093.23
Other payables 3,656,421,703.39 2,762,845,488.90
Total 3,693,858,108.21 2,800,763,582.13
(1) Dividend payable
Unit: RMB
Item Closing balance Opening balance
Dividends payable by subsidiaries to
37,436,404.82 37,918,093.23
minority shareholders
Total 37,436,404.82 37,918,093.23
(2) Other payables
1) Presentation of other payables by nature
Unit: RMB
153
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Item Closing balance Opening balance
Image publicity expense and sales
2,275,896,048.89 1,722,127,207.54
promotional expense
Deposit 952,693,928.59 816,163,308.72
Collecting payment on behalf of others 57,463,693.60 54,932,275.78
Claims from safeguarding rights 27,200,519.63 43,349,435.78
Others 343,167,512.68 126,273,261.08
Total 3,656,421,703.39 2,762,845,488.90
2) Significant other payables over one year
Unit: RMB
Item Closing balance Reason for outstanding or carried forward
Deposit 134,891,030.17
Total 134,891,030.17 --
25. Current portion of non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Current portion of lease liabilities 360,027,399.06 72,747,645.81
Total 360,027,399.06 72,747,645.81
26. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Taxes to be charged off 1,688,367,639.42 1,117,452,799.61
Total 1,688,367,639.42 1,117,452,799.61
27. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 355,338,950.93 73,960,277.66
Total 355,338,950.93 73,960,277.66
28. Deferred income
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance Cause
current period current period
Government subsidy 255,953,368.36 12,000,000.00 9,962,000.04 257,991,368.32
Total 255,953,368.36 12,000,000.00 9,962,000.04 257,991,368.32 --
Projects involving government subsidies:
Unit: RMB
Amount Amount
recogniz offset
Amount of ed as Amount against
newly non-oper recognized as costs Other
Opening Asset-related/income-r
Liabilities subsidy in ating other incomes and change Closing balance
balance elated
the current revenue in the current expense s
period in the period s in the
current current
period period
90-Thousand-To
n Pottery Jar
Aging Spirit
174,529,333.66 6,712,666.56 167,816,667.10 Related to assets
Room Technical
Innovation
Project (Phase I)
Brewery
14,700,000.00 750,000.00 13,950,000.00 Related to assets
Wastewater
154
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Comprehensive
Treatment
Project
Wastewater
Comprehensive
Treatment and 13,466,666.59 333,333.36 13,133,333.23 Related to assets
Transformation
Project
Wuliangye
Industrial Park
10,000,000.00 10,000,000.00 Related to assets
Construction
Project
300-Thousand-T
on Pottery Jar
10,000,000.00 10,000,000.00 Related to assets
Aging Spirit
Room (Phase I)
Technological
Innovation
10,000,000.
Project for 10,000,000.00 Related to assets
00
Storing Blended
Liquor
Songgong River
(Wuliangye
Section)
10,193,499.92 357,666.72 9,835,833.20 Related to assets
Comprehensive
Treatment
Project
Technical
Upgrading
Project of the
Quality Control, 8,926,666.71 343,333.32 8,583,333.39 Related to assets
Quality
Inspection and
Testing Center
Wastewater
Treatment
System
8,319,999.88 320,000.04 7,999,999.84 Related to assets
Upgrading and
Renovation
Project
Coal-to-Gas
Energy
Conservation and
1,613,035.26 219,999.96 1,393,035.30 Related to assets
Emission
Reduction
Project (Phase I)
Technical
Upgrading
Project of the
60-Thousand-To 1,769,999.72 590,000.04 1,179,999.68 Related to assets
n Maotai-Flavor
Baijiu Pottery Jar
Aging Room
155
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Informatization
and big data 604,166.62 125,000.04 479,166.58 Related to assets
application
Shiergoubao
Production Line
Technical 240,000.00 120,000.00 120,000.00 Related to assets
Upgrading
Project
Award from the
4A Scenic Spot
of Tourist 2,000,000.0
2,000,000.00 Related to revenue
Administration 0
of Cuiping
District
Industrial
development 1,000,000.00 1,000,000.00 Related to revenue
funds
Subsidy for
national green 500,000.00 500,000.00 Related to revenue
plant of 2018
Provincial
special funds for
90,000.00 90,000.00 Related to revenue
intellectual
property
12,000,000.
Total 255,953,368.36 9,962,000.04 257,991,368.32
00
29. Share capital
Unit: RMB
Increase/Decrease (+,-)
Opening balance Capitalization Closing balance
Issuance of
Bonus share of public Others Sub-total
new shares
reserve fund
Sum of shares 3,881,608,005.00 3,881,608,005.00
30. Capital reserves
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Capital premium (share
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
31. Surplus reserves
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Statutory surplus
19,698,525,995.51 4,167,577,400.21 23,866,103,395.72
reserves
Total 19,698,525,995.51 4,167,577,400.21 23,866,103,395.72
32. Retained earnings
Unit: RMB
Item 2021 2020
Retained earnings at the end of previous period
59,443,191,559.08 51,634,248,548.06
before adjustment
156
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Retained earnings at the beginning of the period
59,443,191,559.08 51,634,248,548.06
after adjustment
Plus: Net profits attributable to the owners of the
23,377,074,353.40 19,954,809,594.52
Company as the parent in the current period
Less: Appropriation of statutory surplus reserves 4,167,577,400.21 3,606,328,972.50
Common share dividends payable 10,014,548,652.90 8,539,537,611.00
Retained earnings at the end of the period 68,638,139,859.37 59,443,191,559.08
Details of retained earnings at the beginning of the adjustment period:
1) The retained earnings at the beginning of the period is adjusted by RMB0.00 due to the retroactive
adjustment according to the Accounting Standards for Business Enterprises and relevant new provisions.
2) The retained earnings at the beginning of the period is adjusted by RMB0.00 due to changes in accounting
policies.
3) The retained earnings at the beginning of the period is adjusted by RMB0.00 due to correction of major
accounting errors.
4) The retained earnings at the beginning of the period is adjusted by RMB0.00 due to changes in the
combination scope arising from the same control.
5) The retained earnings at the beginning of the period is adjusted by RMB0.00 in total due to other
adjustments.
33. Operating revenue and cost of sales
Unit: RMB
2021 2020
Item
Revenue Cost Revenue Cost
Principal operations 65,753,001,416.07 15,948,182,928.09 56,786,051,615.16 14,362,156,374.57
Other operations 456,052,196.04 370,595,660.73 535,007,837.99 449,805,104.08
Total 66,209,053,612.11 16,318,778,588.82 57,321,059,453.15 14,811,961,478.65
Whether the lower of net profit before or after exceptional gains and losses is negative
□ Yes √ No
157
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Information related to revenue from liquor products in the principal business revenue:
Unit: RMB
Contracts classification East China South China West China North China Central China Total
Product type
Wuliangye-branded Baijiu products 15,675,398,574.12 6,829,074,810.49 11,166,973,941.34 6,913,906,232.67 8,526,659,614.76 49,112,013,173.38
Other Baijiu series 3,106,778,866.20 601,060,530.90 5,812,269,921.54 621,508,392.55 2,478,209,108.39 12,619,826,819.58
Classification by sales channel
On-line 892,697,057.94 205,085,474.51 1,057,283,429.62 1,718,857,633.89 224,031,196.87 4,097,954,792.83
Off-line 17,889,480,382.38 7,225,049,866.88 15,921,960,433.26 5,816,556,991.33 10,780,837,526.28 57,633,885,200.13
Classification by sales model
Distributor model 15,693,856,413.63 6,071,601,286.63 14,630,914,621.86 4,724,993,654.55 9,015,339,798.18 50,136,705,774.85
Direct-to-consumer model 3,088,321,026.69 1,358,534,054.76 2,348,329,241.02 2,810,420,970.67 1,989,528,924.97 11,595,134,218.11
Total 18,782,177,440.32 7,430,135,341.39 16,979,243,862.88 7,535,414,625.22 11,004,868,723.15 61,731,839,992.96
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 RMB13,058,652,246.11.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
34. Tax and surcharges
Unit: RMB
Item 2021 2020
Consumption tax 7,776,945,076.19 6,528,819,159.02
Urban maintenance and construction tax 1,010,969,161.44 852,468,951.35
Education surcharge 434,483,541.69 366,214,108.43
Tax on natural resources 45,946.20 137,241.30
Property tax 108,880,137.88 34,344,217.68
Land use tax 49,348,856.38 50,029,296.62
Vehicle and vessel usage tax 130,667.12 586,715.18
Stamp duty 118,209,627.99 14,999,803.23
Local education surcharge 289,651,168.33 243,586,461.76
Environmental protection tax 1,033,833.76 1,162,641.53
Total 9,789,698,016.98 8,092,348,596.10
35. Selling expenses
Unit: RMB
Item 2021 2020
Image publicity expense 1,218,266,158.62 1,148,203,672.92
Sales promotional expense 3,786,854,045.27 3,302,764,255.56
Storage and logistics expenses 411,654,403.24 260,214,712.62
Expenses of labor 611,192,688.42 470,739,623.11
Other expenses 475,538,836.35 396,996,259.77
Total 6,503,506,131.90 5,578,918,523.98
36. Administrative expenses
Unit: RMB
Item 2021 2020
Comprehensive expenses of the Company (including travel,
office, expenses of the Board of Directors, employee
1,153,058,803.19 966,318,139.08
remuneration, labor insurance, labor protection appliances,
etc.)
Rents 31,590,929.73 361,949,846.81
Trademark and logo royalties 742,030,648.63 639,427,170.39
Comprehensive service fee 80,272,320.88 91,977,989.83
Others 893,016,164.94 549,856,539.98
Total 2,899,968,867.37 2,609,529,686.09
37. Research and development expense
Unit: RMB
Item 2021 2020
Comprehensive expenses (including travel, office, payroll, labor insurance, labor
112,283,087.89 73,819,430.63
protection appliances, etc.)
Material expenses 17,595,341.62 18,616,952.02
Product design fees 14,671,117.06 12,189,610.30
Depreciation and amortization expenses 11,225,044.37 8,339,539.69
Others 21,637,136.71 18,349,692.69
Total 177,411,727.65 131,315,225.33
38. Finance costs
Unit: RMB
Item 2021 2020
Interest costs 69,130,792.55
159
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Less: Interest income 1,801,002,307.73 1,521,933,975.40
Exchange loss 585,270.50 128,944.28
Less: Exchange gains 256,035.88 89,237.71
Service charge of financial institutions 1,984,791.95 1,550,017.99
Others -2,144,596.61 34,825,050.63
Total -1,731,702,085.22 -1,485,519,200.21
39. Other income
Unit: RMB
Sources of other income 2021 2020
Government subsidy 191,205,242.35 105,648,782.20
Tax rebates 24,522,993.00 56,724,988.21
Total 215,728,235.35 162,373,770.41
Notes: Refer to the Note "VII. Notes to Consolidated Financial Statements, 51. Government subsidy" for
details of government subsidies.
2. The tax rebates are the VAT rebates received by the Company, refer to the Note "VI. Taxes, 2. Tax
preference" for details.
40. Return on investment
Unit: RMB
Item 2021 2020
Long-term equity return on investment
97,346,566.33 93,504,494.16
accounted by equity method
Total 97,346,566.33 93,504,494.16
41. Credit impairment loss
Unit: RMB
Item 2021 2020
Bad debt loss of other receivables -1,546,459.61 -1,480,304.84
Bad debt loss of accounts receivable -1,055,065.13 2,504,725.68
Total -2,601,524.74 1,024,420.84
42. Asset impairment loss
Unit: RMB
Item 2021 2020
Losses for inventory falling price and losses for
-7,531,487.70 -13,664,476.45
impairment of contract performance costs
Fixed asset impairment losses -448,709.53
Total -7,531,487.70 -14,113,185.98
43. Asset disposal income
Unit: RMB
Source of asset disposal income 2021 2020
Disposal of non-current assets -1,905,183.84 1,129,293.57
Total -1,905,183.84 1,129,293.57
44. Non-operating income
Unit: RMB
Amounts included in current exceptional
Item 2021 2020
profit or loss
Penalty income 11,413,330.49 9,485,442.44 11,413,330.49
Gains from scrap of non-current
1,713,863.61 151,265.50 1,713,863.61
assets
Others 38,972,624.12 31,025,244.38 38,972,624.12
Total 52,099,818.22 40,661,952.32 52,099,818.22
160
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
45. Non-operating expense
Unit: RMB
Amounts included in current
Item 2021 2020
exceptional profit or loss
Donations 99,159,845.28 160,898,370.13 99,159,845.28
Penalty expenditure 588,035.22 251,432.49 588,035.22
Loss on scrap of non-current
23,431,675.28 6,345,206.99 23,431,675.28
assets
Abnormal loss 386,224.38 80,408.09 386,224.38
Others 30,558,562.37 21,063,253.13 30,558,562.37
Total 154,124,342.53 188,638,670.83 154,124,342.53
Other notes:
The external donations mainly consist of RMB38,793,500 to Sichuan Wuliangye Charity Fund, RMB20
million to Sichuan University Education Foundation Special Fund for High-end Talents, RMB30 million to Henan
Charity General Federation, and RMB10 million to fight the flood and provide relief for Henan.
46. Income tax expense
(1) List of income tax expense
Unit: RMB
Item 2021 2020
Current income tax expense 8,140,840,384.03 7,093,786,409.11
Deferred income tax expense -197,886,268.59 -328,679,600.95
Total 7,942,954,115.44 6,765,106,808.16
(2) Accounting profit and income tax expense reconciliation process
Unit: RMB
Item 2021
Total profit 32,450,404,445.70
Income tax expense calculated with statutory/applicable tax rates 8,112,601,111.43
Impact of different tax rates applicable to subsidiaries -77,341,644.30
Impact on adjustment of income tax in previous periods -33,462,520.68
Impact of non-taxable revenue -23,755,679.52
Impact of non-deductible costs, expenses and losses 4,511,147.68
Impact of deductible losses of deferred income tax assets which
-6,459,120.60
have not been recognized in the previous period
Impact of deductible temporary differences or deductible losses
of deferred income tax assets which have not been recognized in 1,741,868.11
the current period
Impact of weighted deduction for salary of the disabled -21,754,259.91
Impact of weighted deduction for research and development
-13,577,901.33
expenses
Impact of one-time deduction of fixed assets 451,114.56
Income tax expenses 7,942,954,115.44
47. Items of cash flow statement
(1) Cash generated from other operating activities
Unit: RMB
Item 2021 2020
Interest income 1,661,218,236.26 1,823,793,053.16
Deposits and government subsidies
384,667,127.10 419,867,382.82
received
Total 2,045,885,363.36 2,243,660,435.98
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(2) Cash used in other operating activities
Unit: RMB
Item 2021 2020
Expenses relating to selling 2,690,167,279.28 1,882,862,475.29
Comprehensive service fee 80,272,320.88 91,977,989.83
Trademark and logo royalties 742,030,648.63 639,427,170.39
Rents 31,590,929.73 361,949,846.81
Deposits paid, receivables and payables, and other
1,241,491,221.81 984,075,848.21
out-of-pocket expenses
Total 4,785,552,400.33 3,960,293,330.53
(3) Cash used in other financing activities
Unit: RMB
Item 2021 2020
Payment for the lease liabilities 395,161,935.55
Total 395,161,935.55 0.00
48. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: RMB
Supplementary information 2021 2020
1. Reconciliation from net profits to cash
-- --
flows from operating activities:
Net profit 24,507,450,330.26 20,913,340,409.54
Plus: Provision for impairment of assets 5,796,149.63 5,926,341.01
Fixed assets depreciation, oil and
gas assets depletion, and productive living 427,065,481.45 435,670,691.93
assets depreciation
Depreciation of right-of-use assets 394,268,510.31
Amortization of intangible assets 37,740,806.36 27,577,383.23
Amortization of long-term prepaid
57,930,691.97 48,208,049.76
expense
Loss caused by disposal of fixed
assets, intangible assets and other long-term 1,905,183.84 -1,129,293.57
assets (gains indicated with "-")
Scrap loss of fixed assets (gains
21,717,811.67 6,193,941.49
indicated with "-")
Loss from changes of fair value
(income indicated with "-")
Finance costs (gains indicated with
69,600,321.23 130,439.21
"-")
Investment loss (gains indicated
-97,346,566.33 -93,504,494.16
with "-")
Decrease in deferred income tax
-197,886,268.59 -328,679,600.95
assets (increase indicated with "-")
Increase in deferred income tax
liabilities (loss indicated with "-")
Decrease in inventory (increase
-790,605,226.52 444,843,931.64
indicated with "-")
Decrease in operating receivables
-5,010,652,760.11 -2,121,902,869.11
(increase indicated with "-")
Increase in operating payables
7,347,957,407.88 -4,638,347,336.81
(decrease indicated with "-")
Others
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Net cash generated from/used in
26,774,941,873.05 14,698,327,593.21
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: -- --
Closing balance of cash 80,975,257,378.72 66,967,091,800.45
Less: Opening balance of cash 66,967,091,800.45 63,138,829,242.88
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
65,304,080.91
equivalents
Net increase in cash and cash
14,008,165,578.27 3,762,958,476.66
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 80,975,257,378.72 66,967,091,800.45
Including: Cash on hand 21,897.04 25,283.79
Bank deposit readily available for 80,974,942,794.33
66,967,063,316.29
payment
Other monetary assets readily 292,687.35
3,200.37
available for payment
II. Cash Equivalents
Of which: Bond investment due within three
months
III. Cash and cash equivalents, end of the
80,975,257,378.72 66,967,091,800.45
period
49. Assets with restricted ownership or use right
Unit: RMB
Item Closing carrying value Reason for restriction
The balance of RMB3,211.55 in the securities trading account with the Yibin
Business Department of Essence Securities, security deposits of
Monetary assets 307,498,340.40
RMB307,240,205.65 for bank acceptance notes, and other security deposits of
RMB254,923.20
Receivables financing 118,374,800.00 In pledge for bank acceptance notes
Total 425,873,140.40 --
50. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of foreign Closing balance converted to
Item Conversion exchange rate
currency RMB
Monetary assets -- --
Including: USD 1,043,532.51 6.3754 6,652,949.26
EUR
HKD
Accounts receivable -- --
Including: USD
EUR
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HKD
Long-term borrowings -- --
Including: USD
EUR
HKD
(2) Note on overseas operating entities, including disclosure of overseas primary business places,
bookkeeping base currency and selection basis for important overseas operating entities, and disclosure of
the reasons for any change in the bookkeeping base currency.
□ Applicable √ Not applicable
51. Government subsidies
(1) Basic information on government subsidies
Unit: RMB
Amounts included in
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) Comprehensive
10,730,000.00 Deferred income 357,666.72
Treatment Project
Technical Upgrading Project of the Quality Control,
10,300,000.00 Deferred income 343,333.32
Quality Inspection and Testing Center
300-Thousand-Ton Pottery Jar Aging Spirit Room
10,000,000.00 Deferred income
(Phase I)
Wastewater Comprehensive Treatment and
10,000,000.00 Deferred income 333,333.36
Transformation Project
Technological Innovation Project for Storing Blended
10,000,000.00 Deferred income
Liquor
Wuliangye Industrial Park Construction Project 10,000,000.00 Deferred income
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
5,900,000.00 Deferred income 590,000.04
Maotai-Flavor Baijiu Pottery Jar 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
Provincial special funds for intellectual property 90,000.00 Deferred income 90,000.00
Award from the Modern Service Industry
Development Bureau of the Economic and 81,592,581.00 Other incomes 81,592,581.00
Technological Development Zone in Lingang
Support funds for settled enterprises 37,704,133.40 Other incomes 37,704,133.40
VAT deduction 22,243,665.14 Other incomes 22,243,665.14
Subsidies for attracting investment 13,606,674.38 Other incomes 13,606,674.38
Refund of charges of individual income tax 7,078,864.73 Other incomes 7,078,864.73
New Apprenticeship training subsidy for enterprises
5,132,800.00 Other incomes 5,132,800.00
in Cuiping District, Yibin City
Special fund for talent development 3,815,600.00 Other incomes 3,815,600.00
Subsidy from the Finance Bureau of Huaibin County 2,400,000.00 Other incomes 2,400,000.00
Industrial development funds 2,395,500.00 Other incomes 2,395,500.00
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Award from the Senior Management of Economic
Cooperation and Foreign Affairs Bureau in Nanxi 1,549,000.00 Other incomes 1,549,000.00
District, Yibin
Award for the individual income tax of senior
864,152.61 Other incomes 864,152.61
management and business cadre
Subsidy for the overall image promotion of Yu Liquor 580,000.00 Other incomes 580,000.00
Provincial special funds for science and technology
543,000.00 Other incomes 543,000.00
project
Subsidy for innovation development of the provincial
500,000.00 Other incomes 500,000.00
engineering and technology research center
Science and technology project funds of Yibin 400,000.00 Other incomes 400,000.00
New generation wine development project 380,000.00 Other incomes 380,000.00
Subsidy for Sichuan Tianfu Ten-Thousand-People
200,000.00 Other incomes 200,000.00
Plan
Fund for the "Mian Wheat 902" project of Mianyang
150,000.00 Other incomes 150,000.00
Municipal Academy of Agricultural Science Research
Subsidy for the engineering and technology research
100,000.00 Other incomes 100,000.00
center of functional polyester material in Yibin
Other fragmentary government subsidies 7,271.05 Other incomes 7,271.05
Total 490,543,242.31 191,205,242.35
(2) Return of government subsidies
□ Applicable √ Not applicable
VIII Changes in Consolidation Scope
1. Business combinations involving entities not under common control
There was no business combinations involving entities not under common control in the Reporting Period.
2. Business combinations involving entities under common control
There was no business combinations involving entities under common control in the Reporting Period.
3. Counter purchase
There was no subsidiary acquired by counter purchase during the Reporting Period.
4. Disposal of subsidiary
Whether there was a single disposal of an investment in a subsidiary that resulted in a loss of control
□ Yes √ No
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and
loss of control during the current period
□ Yes √ No
5. Changes in consolidation scope for other reasons
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municpal Levels
(2020～2022), in order to optimize the branch company and subsidiary allocation as a state-owned enterprise, the
Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. On 19 November 2021, three wholly-owned subsidiaries of the Company, namely Yibin Cuipingshan
Liquor Co., Ltd., Yibin Century Liquor Co., Ltd. and Yibin Zhenwushan Liquor Co., Ltd., were de-registered and
have been excluded from the Company’s consolidated financial statements since that day.
IX Interests in Other Entities
1. Interests in subsidiaries
(1) Compositions of the Group
Primary Registered Nature of Shareholding proportion Way of
Name of subsidiary
business place address business Directly Indirectly acquisition
Sichuan Yibin Wuliangye Distillery Co., Ltd. Yibin Yibin Manufacturing 99.00% 0.99% Establishment
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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 Industry Co., Ltd.
Business
combinations
Sichuan Jinwuxin Technology Co., Ltd. Yibin Yibin Business 51.00% involving
entities not under
common 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., Ltd. Yibin Yibin Business 42.30% Establishment
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
combinations
Sichuan Yibin Plastic Packaging Materials
Yibin Yibin Manufacturing 100.00% involving
Company Limited
entities not under
common control
Business
combinations
Sichuan Yibin Global Group Shenzhou Glass
Yibin Yibin Manufacturing 100.00% involving
Co., Ltd.
entities not under
common control
Business
combinations
Sichuan Yibin Global Gelasi Glass
Yibin Yibin Manufacturing 100.00% involving
Manufacturing Co., Ltd.
entities not under
common control
Business
combinations
Sichuan Yibin Push Group 3D Co., Ltd. Yibin Yibin Manufacturing 100.00% involving
entities not under
common control
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
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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
combinations
Huaibin Wubin Consultation Service Co., Ltd. Huaibin Huaibin Consultation 100.00% involving
entities not under
common control
Business
combinations
Wuguchun Jiu Ye Co., Henan. China Huaibin Huaibin Manufacturing 11.03% 40.00% involving
entities not under
common control
Huaibin Tenglong Trade Co., Ltd.C Huaibin Huaibin Business 51.03% Establishment
WU JIU YE SALES CO., HENAN. China Huaibin Huaibin Business 51.03% Establishment
Sichuan Wuliangye Culture Tourism
Yibin Yibin Tourism 80.00% Establishment
Development Co., Ltd.
Sichuan Wuliangye Tourist Agency Co., Ltd. Yibin Yibin Tourism 80.00% Establishment
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 voting rights in subsidiary:
As reviewed and approved by the 5th Board of Directors of the Company, the Company, Beijing Sparkle
Investment Co., Ltd., Shanghai Yue Shan Investment Management Co., Ltd. and Changjiang Growth Capital Co.,
Ltd. jointly funded and established Yibin Wuliangye Creart Co., Ltd. (hereinafter referred to as the "Creart
Company"), of which the registered capital is RMB100 million. The Company contributes RMB45 million, taking
up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. and
the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through
mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
The basis of controlling the invested company even if holding half or less than half voting rights and not
controlling the invested company even if holding more than half voting rights:
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 RMB100 million. The Company contributes RMB45 million, taking
up 45% of the registered capital. On 9 December 2014, Shanghai Yue Shan Investment Management Co., Ltd. and
the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co., Ltd. through
mutual negotiation, Shanghai Yue Shan Investment Management Co., Ltd. entrusted the Company for
management of the 6% equity held by it in Creart Company from the effective date of the agreement till the
duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan
Investment Management Co., Ltd. in Creart Company and the voting right at the shareholder meetings of Creart
167
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total, and
therefore Creart Company is included in the consolidated statements.
As resolved by the shareholder meeting of Creart Company on 23 February 2018, Changjiang Growth
Capital Co., Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co., Ltd. and 6%
of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of
Creart Company on 16 July 2018, Beijing Sparkle Investment Co., Ltd. transferred 20% of the equity to Beijing
Sparkle Hengye Education and Cultural Development Co., Ltd.; after the said equity transfer, the Company still
holds 51% of the voting rights at shareholder meetings of Creart Company, and therefore it is included in the
consolidated statements.
2. On 26 October 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 RMB14.1 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 RMB11.4 million (taking up 38% of
the equity), and Guangzhou Jude Trade Co., Ltd., contributing RMB4.5 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 RMB30 million. Registration of Xinshengdai Company was
completed on 11 July 2016. Its registered capital is RMB30 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
Minority
Current profits and losses Current dividends
shareholders Closing balance of
Name of subsidiary attributable to minority declared to minority
shareholding non-controlling interests
shareholders shareholders
proportion
Yibin Wuliangye Liquor
5.00% 846,268,806.21 764,088,739.36 1,305,262,683.28
Sales Co., Ltd.
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(3) Main financial information of important non-wholly owned subsidiaries
Unit: RMB
Closing balance
Name of subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
48,642,681,798.88 1,409,440,389.95 50,052,122,188.83 23,989,163,724.26 248,325,516.31 24,237,489,240.57
Opening balance
Yibin Wuliangye Liquor Sales Co., Ltd.
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
38,220,982,171.89 879,359,418.26 39,100,341,590.15 14,907,373,717.36 21,936,261.60 14,929,309,978.96
Unit: RMB
2021
Name of subsidiary
Operating revenue Net profit Total comprehensive income Cash flows from operating activities
58,718,765,149.19 16,925,376,124.29 16,925,376,124.29 21,044,523,299.61
2020
Yibin Wuliangye Liquor Sales Co., Ltd.
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
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2. Interests in joint arrangement or associates
(1) Important joint ventures or associates
Shareholding Accounting
proportion treatment of
Primary Registered Nature of
Name of joint venture or associate investment in
business place address business
Directly Indirectly joint ventures or
associates
Advertising
Oriental Outlook Media Co., Ltd. Beijing Beijing 49.00% Equity method
industry
Sichuan Yibin Wuliangye Group
Yibin Yibin Finance 40.56% Equity method
Finance Co., Ltd.
Yibin Jiamei Intelligent Packaging Packaging and
Yibin Yibin 48.28% Equity method
Co., Ltd. printing industry
Beijing Zhongjiuhuicui Education Education
Beijing Beijing 20.83% Equity method
and Technology Co., Ltd. industry
(2) Main financial information of important associates
Unit: RMB
Closing balance/2021 Opening balance/2020
Item Sichuan Yibin Wuliangye Group Finance Sichuan Yibin Wuliangye Group Finance
Co., Ltd. Co., Ltd.
Current assets 15,261,397,498.01 6,055,219,559.79
Non-current assets 28,681,784,105.08 32,057,084,162.36
Total assets 43,943,181,603.09 38,112,303,722.15
Current liabilities 39,338,284,799.58 33,617,391,380.72
Non-current liabilities 5,208,942.19 2,828,468.76
Total liabilities 39,343,493,741.77 33,620,219,849.48
Non-controlling interests
Equity attributable to the shareholders of
4,599,687,861.32 4,492,083,872.67
the Company as the parent
Share of net assets calculated according to
1,865,633,396.55 1,817,394,942.42
the shareholding proportion
Adjusted items
--Goodwill
--Unrealized profit of internal transaction
--Others
Carrying value of equity investment in
1,865,633,396.55 1,817,394,942.42
associates
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Fair values of equity investments of
associates with quoted prices
Operating revenue 501,329,916.19 549,652,714.68
Net profit 210,463,988.65 228,588,076.16
Net profit of the termination of business
Other comprehensive income
Total comprehensive income 210,463,988.65 228,588,076.16
Dividends received from the associates in
41,720,016.00
the current period
(3) Main financial information of unimportant joint ventures and associates
Unit: RMB
Closing balance/2021 Opening balance/2020
Joint ventures: -- --
Total amount of the following items
-- --
calculated by shareholding proportion
Associates: -- --
Total carrying value of investments 45,595,257.08 32,582,160.88
Total amount of the following items
-- --
calculated by shareholding proportion
--Net profit 7,388,096.20 5,661,916.04
--Total comprehensive income 7,388,096.20 5,661,916.04
3. Rights and interests in structured entities not included in the consolidated financial statements
There is no structured entity included in the consolidated financial statements in the Reporting Period.
X The Disclosure of Fair Value
1. Fair value of assets and liabilities measured at fair value at the end of the period
Unit: RMB
Closing fair value
Fair value Fair value
Item Fair value measurement at
measurement at measurement at Total
level III
level I level II
I. Consistent Fair Value Measurement -- -- -- --
Receivables financing 1,641,509,588.69 1,641,509,588.69
Other non-current financial assets 1,200,000.00 1,200,000.00
Total assets measured at fair value on
1,642,709,588.69 1,642,709,588.69
an ongoing basis
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II. Fair Value Measurement on a
-- -- -- --
Non-Ongoing Basis
2. Basis for determining the market value of fair value measurement at level I on an ongoing and
non-ongoing bases
□ Applicable √ Not applicable
3. For fair value measurement at level II on an ongoing and non-ongoing bases, qualitative and quantitative
information on the valuation techniques used and significant parameters
□ Applicable √ Not applicable
4. For fair value measurement at level III on an ongoing and non-ongoing bases, qualitative and
quantitative information on the valuation techniques used and significant parameters
Receivables financing: Due to the short term of notes receivable held by the Company, and the selling time,
selling price and selling proportion cannot be estimated reliably, the Company measures the notes receivable
according to the par value as a reasonable estimate of fair value.
Other non-current financial assets: Since the Company holds other non-current financial assets that are not
traded in an active market, and its equity interest in the invested company is low and has no significant influence,
it is not realistic and feasible to value the equity in the invested company using the income approach or market
approach, and there is no recent introduction of external investors to the invested company or transfer of equity
among shareholders that can be used as a reference basis for determining fair value. In addition, the Company has
not found any significant changes in the internal and external environment of the invested company since the
beginning of the year from the analysis of the relevant information available, therefore, it is a "limited
circumstances" in which the carrying cost can be used as the best estimate of the fair value, and therefore the fair
value is based on the cost at the end of the year.
5. For fair value measurement at level III on an ongoing basis, reconciliation information between
beginning and ending carrying values and sensitivity analysis of unobservable parameters
□ Applicable √ Not applicable
6. For fair value measurement items on a continuous basis, if there is a conversion between different levels
in the current period, the reasons for the conversion and the policy for determining the conversion time
point
□ Applicable √ Not applicable
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-Party Transactions
1. Information related to the Company as the parent
Shareholding ratio of the Proportion of voting
Name of the Company as the Registere Nature of Registered
Company as the parent in the rights of the Company
parent d address business capital
Company as the parent in the
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Company
Yibin Development Holding RMB1,390
Yibin Investment 34.43% 34.43%
Group Co., Ltd. million
Information on the Company as the parent
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 Liang Li and its registered capital is
RMB1,390 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 an investment and financing platform of the People’s
Government of Yibin City, and investing in such projects by shareholding and holding; third, promoting the
preserve and increase the value of state-owned assets and economic development of the city by capital
management and assets management.
Yibin Development Holding Group Co., Ltd., by administrative transfer of state-owned assets, holds 100%
of the equity of Sichuan Yibin Wuliangye Group Co., Ltd., so that it controls 2,128,371,363.00 shares of the
Company directly or indirectly, taking up 54.83% of the total share capital of the Company.
The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin
City is the ultimate controller of the Company.
2. Subsidiaries of the Company
Refer to the Note "IX. Interests in Other Entities" for information about subsidiaries of the Company.
3. 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 the 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 Secretary
of Party Committee and Chairman 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
Anji Logistic Group Co., Ltd. Sichuan Subsidiaries of Wuliangye Group
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Sichuan Yibin Wuliangye Group Anji Logistic Co., Ltd. Subsidiaries of Anji Logistic Group 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. Subsidiary of Yibin Jinlong Trade Development Corporation
Sichuan Yibin Push Mold Co., Ltd. Subsidiaries of Push Group Company
Sichuan Push Acetati Company Limited Subsidiaries of Push Group Company
Sacred Mountain Molin Group Co., Ltd. Si Chuan Subsidiaries of Wuliangye Group
Yibin Shengdi Trade Co. Ltd. Subsidiaries of Sacred Mountain Molin Group
Yibin Jinlong Trade Development Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Global Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Licai Group Co., Ltd. Subsidiaries of Wuliangye Group
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. Subsidiaries of Global Group Company
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. Subsidiaries of Wuliangye Group
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., Ltd. Subsidiaries of Push Group Company
Sichuan Yibin Push Building Materials Co., Ltd. Subsidiaries of Push Group Company
Sichuan Yibin Push Auto Parts Co., Ltd. Subsidiaries of Push Group Company
Push Information & Automation (Chengdu) Co., Ltd. Subsidiaries of Push Group Company
Chengdu Global Special-Glass Manufacture Co., Ltd. Subsidiaries of Global Group Company
Sichuan Zhongke Better Technology Co., Ltd. Subsidiaries of Global Group Company
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.
Yaohua (Yibin) Glass, Co., Ltd. Associates of Global Group
Sichuan Yibin Wuliangye Group Ecological Brewery
Subsidiaries of Wuliangye Group
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
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., Ltd. Subsidiaries of Sacred Mountain Molin Group
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., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
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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 Wuliangye Group
Chengdu Wuliangye Grand Hotel Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Jitai Automobile Sales & Service Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Wuming Tea Industry Holding Co., Ltd. Subsidiaries of Wuliangye Tea Industry Development Fund
Sichuan Linhu Tea Co., Ltd. Subsidiaries of Chuan Hong Tea Group Co., Ltd.
Yibin Leitian Agricultural Development Co., Ltd. Subsidiaries of Chuan Hong Tea Group Co., Ltd.
Sichuan Huansheng Pharmacy Co., Ltd. Subsidiaries of Wuliang Pharmaceutical Co., Ltd.
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Paper Industry Co., Ltd. Subsidiaries of Wuliangye Group
Yibin Wucai Packaging Co., Ltd. Subsidiaries of Licai Group
Sichuan Yibin Push Drive Co., Ltd. Subsidiaries of Push Group Company
Sichuan Wuliangye Health Wine Marketing Co., Ltd. Subsidiaries of Health Wine Group Company
Sichuan Nongwu E-commerce Co., Ltd. Subsidiaries of Chuan Hong Tea Group Co., Ltd.
Sichuan Shengshan Hexu Import & Export Trading Co.,
Subsidiaries of Sacred Mountain Molin Group
Ltd.
Chengdu Global Special-Glass Manufacture Co., Ltd. Subsidiaries of Global Group Company
Sichuan Shuzhan New Materials Co., Ltd. Subsidiaries of Sacred Mountain Molin Group
Yibin Jichi Automobile Sales Service Co., Ltd. Subsidiaries of Anji Logistic Group Co., Ltd.
Sichuan Yibin Wuliangye Group Pengcheng Electronics Subsidiaries of Push Group Company
Instrument Co., Ltd.
Yibin Chuanhong Tea Group Co., Ltd. Subsidiaries of Wuliangye Tea Industry Development Fund
Yibin Ansage Auto Service Co., Ltd. Chhengdu Branch Subsidiaries of Anji Logistic Group Co., Ltd.
Sichuan Yibin Wuliangye Group Anji Logistic Shipping
Subsidiaries of Anji Logistic Group Co., Ltd.
Co., Ltd.
Sichuan Yibin Push International Co., Ltd. Subsidiaries of Push Group Company
Push Ningjiang Machine Tool Co., Ltd. Subsidiaries of Push Group Company
Anji Logistic Group Co., Ltd. Sichuan, Chengdu
Subsidiaries of Anji Logistic Group Co., Ltd.
Branch
Sun Display Co., Ltd. Subsidiaries of Push Group Company
5. Related-party transactions
(1) Related-party transactions of purchases and sales of goods, provision and reception of service
Information on purchases and sales of goods and reception of service
Unit: RMB
Content of Whether
Approved
Related parties related-party 2021 exceed 2020
trade credit
transaction trade credit
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
or not
Raw materials,
glass bottles, raw
Sichuan Yibin Global Group Tianwo Trade Co., papers,
489,352,080.56 374,497,666.87
Ltd. comprehensive
goods and
materials, etc.
Workwear, raw
Sacred Mountain Molin Group Co., Ltd. Si Chuan 244,713,764.87 319,408,705.14
materials, etc.
Chengdu PUTH Medical Plastics Packaging Co.,
Raw materials 71,018,790.28 53,748,609.10
Ltd.
Molds, raw
Sichuan Yibin Push Mold Co., Ltd. 68,939,522.33 59,250,291.62
materials, etc.
RFID
Sichuan Yibin Push Group Co., Ltd. anti-counterfeit 67,959,749.62 84,792,975.46
labels, etc.
Wuming Tea Industry Holding Co., Ltd. Tea, etc. 63,205,148.32 141,263,221.53
Labor protection 63,567,442.37
Sacred Mountain Molin Group Co., Ltd. Si Chuan 38,714,015.75
appliances, etc.
Sichuan Yibin Global Group Tianwo Trade Co.,
Healthcare wine 44,958,850.17 11,196,235.86
Ltd.
Packing materials,
Yibin Wucai Packaging Co., Ltd. 44,574,105.04 34,515,617.66
etc.
Sichuan Wuliangye Health Wine Marketing Co.,
Healthcare wine 39,195,390.87 11,195,452.74
Ltd.
Raw materials,
Yibin Jinlong Trade Development Co., Ltd. 29,445,309.93 40,996,644.76
etc.
Raw materials,
Sichuan Yibin Push Drive Co., Ltd. 25,198,204.17 18,984,916.66
etc.
Raw materials,
Yibin Push Linko Technology Co., Ltd. 17,849,789.80 26,536,541.38
etc.
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. Medicine, etc. 11,174,519.56 7,972,120.82
Sichuan Putian Packaging Co., Ltd. Slices, paper, etc. 10,720,904.50 7,961,394.53
Chengdu Huayu Glass Manufacturing Co., Ltd. Glass bottle 3,233,095.59 4,143,258.12
Yibin Ansage International Logistic Co., Ltd. Liquors 2,026,327.43 44,251,327.38
Yibin Chuanhong Tea Group Co., Ltd. Tea leaves 1,908,311.50
Sichuan Yibin Push Intelligent Technology Co., Raw materials,
1,406,227.36 2,191,204.82
Ltd. etc.
Raw materials,
Sichuan Shuzhan New Materials Co., Ltd. 1,279,766.67 291,094.03
etc.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Yibin Global Photoelectric Energy Conservation Raw materials,
694,466.22 44,301,991.81
Technology Co., Ltd. etc.
Sichuan Huansheng Pharmacy Co., Ltd. Medicine 641,800.51 3,235,716.63
Sichuan Yibin Wuliangye Group Health Wine Co.,
Healthcare wine 192,733.62 67,919,611.22
Ltd.
Yibin Wuliangye Group I&E Co., Ltd. Liquors 178,407.08 2,217,564.96
Raw materials,
Sichuan Yibin Push Building Materials Co., Ltd. 166,591.02 1,511,362.08
etc.
Yibin Ansage Auto Service Co., Ltd. Motor gasoline 116,390.24 2,300,000.18
Paper products,
Sichuan Yibin Global Group Co., Ltd. 23,676,240.12
etc.
Sichuan Wuliangye Health Wine Marketing Co.,
Glass bottle 16,030,975.17
Ltd.
Chengdu Global Special-Glass Manufacture Co., Industrial
11,488,219.80
Ltd. paperboard
Sichuan Ansage Supply Chain Management Co.,
Raw materials 8,114,838.19
Ltd.
Sichuan Wuliangye Health Wine Marketing Co.,
Raw materials 7,885,162.30
Ltd.
Sichuan Haida Rubber Group Co., Ltd. Raw materials 7,883,320.00
Sichuan Yibin Wuliangye Group Health Wine Co., Packaging
3,177,152.17
Ltd. materials, etc.
Sub-total of other fragmentary related 4,031,894.61
3,162,372.07
procurement
1,307,749,584.24 1,484,815,820.9
Total related procurement
3
Freight and
miscellaneous
Anji Logistic Group Co., Ltd. Sichuan 691,658,046.61 534,305,032.99
expenses, external
service costs, etc.
Outsourced
Yibin Jiamei Intelligent Packaging Co., Ltd. 41,632,320.82 30,712,887.50
processing fee
Freight and
miscellaneous
Sichuan Yibin Wuliangye Group Anji Logistic
expenses, 38,527,096.20 21,407,805.87
Co., Ltd.
company bus
expenses, etc.
Sichuan Yibin Push Intelligent Technology Co., Maintenance cost,
8,250,361.82 7,408,091.53
Ltd. etc.
Chengdu Wu Liangye Grand Hotel Co., Ltd. Image publicity 6,830,188.54
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
expense
Freight and
miscellaneous
Yibin Ansage Auto Service Co., Ltd. expenses, 5,274,819.29 1,693,227.24
maintenance,
vehicle cost, etc.
Sichuan Yibin Wuliangye Group Anji Logistic Freight and 3,909,107.29
Shipping Co., Ltd. miscellaneous
expenses
Yibin Jinlong Trade Development Co., Ltd. Maintenance cost 2,899,211.82
Yibin Global Energy Conservation Service Co., Flue gas
2,579,378.09 3,441,567.70
Ltd. treatment, etc.
Yibin Jichi Automobile Sales Service Co., Ltd. Vehicle cost, etc. 1,916,208.75
Freight and
Sichuan Ansage Supply Chain Management Co.,
miscellaneous 258,565.11 814,067.82
Ltd.
expenses
Yibin Push Linko Technology Co., Ltd. Maintenance cost 127,153.70 492,248.77
Printing and
Sichuan Shuzhan New Materials Co., Ltd. 838,938.06
production cost
Sub-total of other fragmentary services received 1,933,495.76 1,873,704.46
Total services received 805,795,953.80 602,987,571.94
Note 1: The Company and Sichuan Yibin Global Group Tianwo Trade Co., Ltd. entered into the Purchase and
Sales Agreement and Agreement, according to which the Company procures raw materials, cartons, glass bottles,
etc. from Sichuan Yibin Global Group Tianwo Trade Co., Ltd. The pricing principle is market quotations, and the
specific purchases and sales demand may be determined according to the orders by the two parties. The
Agreement is valid from 1 January 2021 to 31 December 2023.
Note 2: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the Labor
Protection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according to
which the Company procures labor protection appliances, packing bags, and festival food from Sacred Mountain
Molin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 3: The Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd. entered into Procurement
Contract. The Company procures films, bags, boxes, accessories, etc. from Chengdu PUTH Medical Plastics
Packaging Co., Ltd. According to the bid agreement, the Company will place an order with Chengdu PUTH
Medical Plastics Packaging Co., Ltd. with the bid result. Specific information on the name, quantity, amount, etc.
of accessories can be seen in the procurement orders signed by both parties. The price of goods is the factory price
in lump sum, including the factory price of materials, packing expenses, transportation loss charges, transportation
expenses, and various testing fees of the material, various risks, profits, taxes, and other expenses. The Agreement
is valid for three year since the bid opening day.
Note 4: On 11 December 2020, the Company and Sichuan Yibin Push Mold Co., Ltd.entered into the Supply
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Agreement. The Company procures molds, spare parts, systems, R&D restructuring and maintenance projects,
injection products and raw material, value-added services and so on from Sichuan Yibin Push Mold Co., Ltd. The
agreement products are paid at market price, and the specific purchases and sales demand may be determined
according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 5: On 5 March 2021, the Company and Sichuan Yibin Push Group Co., Ltd. entered into the
Related-Party Transaction Framework Agreement. The Company procures equipment and anti-counterfeit labels
from Push Group. Refer to corresponding purchases and sales contract for details on sales of goods, unit, quantity,
and amount. The product price is the factory price in lump sum, including the factory price of materials, packing
expenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate adjusted by the
country) and other expenses. If delivery is requested, extra expenses such as the freight charge, insurance expense
and delivery expense are needed based on the factory price. The Agreement is valid from 5 March 2021 to 31
December 2023.
Note 6: The Company and Wuming Tea Industry Holding Co., Ltd. entered into the Agreement, according to
which the Company procures tea leaves and peripheral products of tea, tea-related prepackaged foods and tea for
heatstroke prevention and cooling, papers products, and marketing products from Wuming Tea Industry Holding
Co., Ltd. The pricing principle is based on the value and cost, oriented by market competition, taking the historical
price for reference and the costs, profits, taxes and dues, quality, delivery date, order quantity, after-sales service,
logistics, packaging, payment terms into full consideration. The specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 7: The Company and Sacred Mountain Molin Group Co., Ltd. Si Chuan entered into the Labor
Protection Appliances, Packing Bags, and Festival Food Supply Agreement on 1 January 2021, according to
which the Company procures labor protection appliances, packing bags, and festival food from Sacred Mountain
Molin Group. The pricing principle is negotiable bidding, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 8: The Company and Anji Logistic Group Co., Ltd. Sichuan entered into the Agreement on 1 January
2021, according to which the Company procures the services of transportation and delivery, warehousing and
stevedoring. The pricing principle is price fairness, and the specific purchases and sales demand may be
determined according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31
December 2023.
Statement of sales of goods/provision of labor services
Unit: RMB
Content of related-party
Related parties 2021 2020
transaction
Yibin Wuliangye Group I&E Co., Ltd. Liquor products 409,320,476.95 407,232,474.70
Sichuan Yibin Wuliangye Group Health Wine Liquor products 3,320,666.38 213,211,849.44
Co., Ltd.
Sichuan Yibin Global Group Tianwo Trade Co., Glass bottles, paper products, 17,429,899.65 179,239,339.54
Ltd. industrial sodium carbonate, etc.
Sichuan Putian Packaging Co., Ltd. Bottle caps, slices, etc. 177,193,094.91 153,174,504.82
Sichuan Yibin Global Group Co., Ltd. Glass bottles, raw materials, etc. 176,449,056.05 130,352,494.03
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Sichuan Shengshan Hexu Import & Export Raw materials 87,079.65 112,926,805.75
Trading Co., Ltd.
Chengdu PUTH Medical Plastics Packaging Co., Slices, coiled materials, etc. 55,077,686.69 42,967,678.11
Ltd.
Sichuan Nongwu E-commerce Co., Ltd. Liquor products 49,538,612.53 38,503,865.67
Chengdu Huayu Glass Manufacturing Co., Ltd. Cartons, glass bottles, etc. 6,490,641.32 37,630,157.13
Sichuan Yibin Push Auto Parts Co., Ltd. Raw materials, etc. 722,332.60 36,330,151.38
Sichuan Yibin Wuliangye Group Ecological Liquor products 45,012,917.77 33,776,653.50
Brewery and Marketing Co., Ltd.
Sacred Mountain Molin Group Co., Ltd. Si Chuan Liquor products, etc. 861,594.70 29,055,333.51
Sichuan Yibin Push Building Materials Co., Ltd. Slices, etc. 364,117.86 26,499,939.82
Sichuan Wuliangye Health Wine Marketing Co., Liquor products 82,552.92 23,826,649.58
Ltd.
Sichuan Yibin Push Group Co., Ltd. Plastic products 12,277,424.74 22,824,155.97
Sichuan Yibin Push Drive Co., Ltd. Slices, etc. 19,366,272.90 21,130,299.93
Yibin Jinlong Trade Development Co., Ltd. Liquor products 816,348,512.08 15,970,781.04
Chengdu Global Special-Glass Manufacture Co., Glass bottle 62,123.90 14,478,940.60
Ltd.
Yibin Global Photoelectric Energy Conservation Industrial paperboard 47,195.44 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
Ltd.
Sichuan Yibin Wuliangye Group Health Wine Raw materials 7,883,585.47
Co., Ltd.
Sichuan Linhu Tea Co., Ltd. Sundries, etc. 8,657,314.16 6,469,645.74
Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. Liquor products 36,147,029.43 5,559,104.88
Sichuan Shuzhan New Materials Co., Ltd. Hang tags, labels, etc. 11,348,797.14 5,525,892.62
Sichuan Yibin Wuliangye Group Ecological Packing materials 2,128,083.34 4,461,608.28
Brewery and Marketing Co., Ltd.
Yibin Jinlong Trade Development Co., Ltd. Mixed grains, and rice bran 3,871,702.12 3,807,071.70
Yibin Jiamei Intelligent Packaging Co., Ltd. Paper products, etc. 513,031.82 2,131,541.87
Sichuan Push Acetati Company Limited Raw materials, etc. 17,958,510.06 1,466,710.69
Sichuan Tyre Rubber (Group) Co., Ltd. Liquor products 1,356,672.57 1,465,486.72
Wuming Tea Industry Holding Co., Ltd. Liquor products 416.04 1,350,529.39
Chengdu Wu Liang Ye Grand Hotel Co., Ltd. Liquor products 1,081,555.75
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Sichuan Nongwu E-commerce Co., Ltd. Sundries, paper products, etc. 2,055,108.18 1,020,744.06
Sichuan Linhu Tea Co., Ltd. Liquor products 1,221,238.94 725,872.57
Push Information & Automation (Chengdu) Co., Bottle caps, glass bottles, etc. 288,136.53 33,466.05
Ltd.
Anji Logistic Group Co., Ltd. Sichuan Liquor products 796,696,566.44
Yibin Wucai Packaging Co., Ltd. Liquor products 44,573,505.04
Sichuan Yibin Push International Co., Ltd. Sheets, slices, etc. 3,646,154.03
Yibin Wuliangye Ecological Brewing Co., Ltd. Paper tags, etc. 2,035,519.70
Sichuan Yibin Push Mold Co., Ltd. Wine, catering, etc. 1,625,007.87
Sichuan Ansage Supply Chain Management Co., Liquor products 1,469,515.07
Ltd.
Push Ningjiang Machine Tool Co., Ltd. Liquor products 1,061,946.90
Other fragmentary sales 6,298,731.11 10,409,576.82
Total 2,733,005,245.53 1,625,036,012.74
Note 1: On 1 January 2021, the Company and Yibin Wuliangye Group I&E Co., Ltd. entered into the Export
Commodities Purchase and Sales Agreement. According to the Agreement, Wuliangye Group I&E 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 Wuliangye Group I&E.
Due to some factors such as the change of the exchange rate, the price that the Company charges for the agreed
products supplying to Wuliangye Group I&E is floating price. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 2: On 22 December 2020, the Company and Sichuan Putian Packaging Co., Ltd. entered into the
Framework Contract. Sichuan Putian Packaging Co., Ltd. procures bulk chemical materials, packaging products
and other materials from the Company for production and operation. Refer to corresponding purchases and sales
contract for details on sales of goods, unit, quantity, and amount. The product price is the factory price in lump
sum, including the factory price of materials, packing expenses, and various testing fees of the material, various
risks, profits, taxes (utilizing the tax rate adjusted by the country) and other expenses. If delivery is requested,
extra expenses such as the freight charge, insurance expense and delivery expense are needed based on the factory
price. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 3: On 1 January 2021, the Company and Sichuan Yibin Global Group Co., Ltd. entered into the
Agreement. Sichuan Yibin Global Group Co., Ltd. procures glass bottles and so on from the Company. The
pricing principle is as it is agreed in the contract, and the specific purchases and sales demand may be determined
according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 4: The Company and Chengdu PUTH Medical Plastics Packaging Co., Ltd. entered into the Framework
Contract and Related-Party Transaction Framework Agreement. Chengdu PUTH Medical Plastics Packaging Co.,
Ltd. procures bulk chemical materials, packaging products and other materials from the Company for production
and operation. Please refer to corresponding purchases and sales contract for details on sales of goods, unit,
quantity, and amount. The product price is the factory price in lump sum, including the factory price of materials,
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
packing expenses, and various testing fees of the material, various risks, profits, taxes (utilizing the tax rate
adjusted by the country) and other expenses. If delivery is requested, extra expenses such as the freight charge,
insurance expense and delivery expense are needed based on the factory price. The Agreement is valid from 1
January 2021 to 31 December 2023.
Note 5: The Company and Sichuan Nongwu E-commerce Co., Ltd. entered into the Agreement. Sichuan
Nongwu E-commerce Co., Ltd. procures Wuliang Nongxiang wine from the Company, and the specific purchases
and sales demand may be determined according to the orders by the two parties. The Agreement is valid from 1
January 2021 to 31 December 2023.
Note 6: On 1 September 2020, the Company and Sichuan Yibin Wuliangye Group Ecological Brewery and
Marketing Co., Ltd. entered into the Base Wine Purchase Agreement. According to the market demand, Sichuan
Yibin Wuliangye Group Ecological Brewery and Marketing Co., Ltd. put forward specific requirements for the
quantities, delivery date and so on of the agreed products in advance. Then, the Company supplies the agreed
products to it based on its demand for production and operation. For each actual supply of the agreed products, the
actual settle quantity should be the quantity determined by both parties, and the price of the agreed products shall
strictly obey the market price with the delivery after payment. The Agreement is valid from 1 January 2021 to 31
December 2023.
Note 7: On 15 December 2020, the Company and Yibin Wucai Packaging Co., Ltd. entered into the
Agreement. Yibin Wucai Packaging Co., Ltd. procures finished liquor and others from the Company. The pricing
principle is as it is agreed in the contract, and the specific purchases and sales demand may be determined
according to the orders by the two parties. The Agreement is valid from 1 January 2021 to 31 December 2023.
(2) Related-party lease
The Company as the lessor:
Unit: RMB
Type of leased Lease revenue recognized in the Lease revenue recognized in
Name of lessee
assets current period previous period
Sichuan Yibin Push Building Materials Co.,
Warehouse 817,008.36 663,267.96
Ltd.
Sichuan Yibin Global Group Tianwo Trade
Tenements 384,171.44 384,171.44
Co., Ltd.
Sichuan Putian Packaging Co., Ltd. Warehouse 74,109.62 125,044.55
Sichuan Yibin Push Intelligent Technology
Warehouse 60,317.51 57,142.84
Co., Ltd.
Anji Logistic Group Co., Ltd. Sichuan Tenements 838,157.18
Chengdu PUTH Medical Plastics Packaging
Equipment 501,015.52
Co., Ltd.
Yibin Global Photoelectric Energy
Tenements 226,285.72
Conservation Technology Co., Ltd.
The Company as the lessee:
Unit: RMB
Rents recognized in Rents recognized in
Name of lessor Type of leased assets
the current period previous period
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Sichuan Yibin Wuliangye Group Co., Ltd. Lands (Note 1) 296,608,546.40 296,558,180.00
Anji Logistic Group Co., Ltd. Sichuan Warehouse 150,916,836.86 44,837,768.19
Operation and
Sichuan Yibin Wuliangye Group Co., Ltd. management areas (Note 29,255,400.00 29,605,028.57
2)
Sichuan Yibin Licai Group Co., Ltd. Tenements (Note 3) 10,794,555.85 15,512,748.60
Operation and
Sichuan Yibin Push Group Co., Ltd. management areas (Note 6,715,238.10 6,715,238.10
4)
Yibin Push Assets Management Co., Ltd. Warehouse 7,751,407.36 5,606,413.94
Warehouses and
Yibin Push Linko Technology Co., Ltd. 4,808,286.42 2,325,929.91
tenements
Yibin Global Photoelectric Energy Conservation
Warehouse 4,440,887.72 4,440,887.72
Technology Co., Ltd.
Chengdu Huayu Glass Manufacturing Co., Ltd. Equipment 4,069,761.90 4,225,181.48
Sichuan Yibin Global Group Tianwo Trade Co., Ltd. Warehouse 2,742,857.12 1,228,525.72
Sichuan Yibin Push Group Co., Ltd. Warehouse 2,510,537.14 2,486,852.84
Sichuan Yibin Global Group Co., Ltd. Warehouse 1,494,905.67 2,989,811.34
Sichuan Yibin Wuliangye Group Health Wine Co., Ltd. Warehouse 834,227.59
Anji Logistic Group Co., Ltd. Sichuan, Chengdu
Warehouse 580,823.31
Branch
Sichuan Yibin Push Auto Parts Co., Ltd. Equipment 130,810.30 130,810.30
Sichuan Andaxin Logistic Co., Ltd. Warehouse 65,094.34 2,530,894.04
Yibin Global Photoelectric Energy Conservation
Equipment 43,068.00 43,068.00
Technology Co., Ltd.
Sun Display Co., Ltd. Warehouse 42,884.00
Sichuan Ansage Supply Chain Management Co., Ltd. Warehouse 28,301.88 28,301.88
Sichuan Putian Packaging Co., Ltd. Equipment 11,865.31
Yibin Push Linko Technology Co., Ltd. Equipment 1,459,428.57
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into
three Land Lease Agreements, according to which Wuliangye Group leased five plots of lands (Wujiaba Land
Parcel, Zongchang Land Parcel, Ziyan Land Parcel I, Fuzao Land Parcel, and Zhuchangqu Land Parcel) with an
area of 2,315,349.08 square meters, Guifei Land Parcel, Old Summer Palace Land Parcel I and II, Nanxi Land
Parcel I, II, and III, Zhuchangqu Land Parcel with an area of 725,587.75 square meters, and 1,000 mu of land (an
area of 666,670.00 square meters) in the north side of Hongba Road owned by it to the Company. The annual rents
are RMB185,227,900, RMB5,804,700and RMB53,333,600, respectively, totaling RMB296,608,500. The lease
term is from 1 January 2021 to 31 December 2023.
Land price criterion:
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The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co., Ltd. is formulated
with reference to the land lease criterion of previous years and in accordance with the Reply of Yibin Land
Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of the Land Lease Criterion
(YGTH [2010] No. 53, 12 March 2010), which states that "the rent of RMB50 to RMB110 per square meter per
year for the industrial land in this area is consistent with prevailing land price of Yibin". The Company and
Wuliangye Group determine the rent of leased land as RMB80 per square meter per year through mutual
agreement.
Note 2: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the
Operation and Management Areas Lease Agreement, according to which Wuliangye Group leases part of the
operation and management areas (including the office building, multi-function pavilion, etc.) owned by it to the
Company. The leased area is 27,121.32 square meters, with the annual rent of RMB29,255,400. The lease term is
from 1 January 2021 to 31 December 2023.
Note 3: On 19 November 2020, 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
(1 F-5 F) at its headquarter to the Company. The leased area is 20,557.30 square meters, with the annual rent (tax
inclusive) of RMB16,288,386. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 4: On 1 January 2021, 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 RMB7.051 million. The lease term is from 1 January 2021 to 31
December 2023.
(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 was no assets transfer and debt restructuring with related parties during the Reporting Period.
(6) Key management personnel remuneration
Unit: RMB'0,000
Item 2021 2020
Key management personnel remuneration 1,407.67 1,129.65
(7) Other related-party transactions
a) Procurement of equipment, etc.
Unit: RMB
Total amount
Content of related-party Amount in previous
Related parties accounted for the
transaction period
current period
Trademark and logo royalties
Sichuan Yibin Wuliangye Group Co., Ltd. 739,709,867.75 637,338,648.84
(Note 1)
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Comprehensive service fee
Sichuan Yibin Wuliangye Group Co., Ltd. 79,499,446.08 91,977,989.83
(Note 2)
Purchase of transportation
Yibin Jichi Automobile Sales Service Co., Ltd. 5,075,292.71 33,458,753.81
equipment
Sichuan Yibin Push Intelligent Technology Co., Ltd. Procurement of equipment 6,506,484.48 21,837,927.09
Push Information & Automation (Chengdu) Co., Ltd. Procurement of equipment 5,525,663.76 7,404,778.67
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 Electronics
Procurement of equipment 5,970.00
Instrument Co., Ltd.
Sichuan Yibin Push Group Co., Ltd. Procurement of equipment 6,207,106.20
Sichuan Yibin Wuliangye Group Co., Ltd. Land use right 814,316.92
Sichuan Yibin Wuliangye Group Co., Ltd. Procurement of equipment 339,022.37
Purchase of transportation
Yibin Ansage Auto Service Co., Ltd. Chhengdu Branch 1,002,032.36
equipment
Purchase of transportation
Yaohua (Yibin) Glass, Co., Ltd. 32,998.25
equipment
Sichuan Yibin Push Mold Co., Ltd. Selling of equipment 423,194.48
Selling of transportation
Yibin Jichi Automobile Sales Service Co., Ltd. 849,557.52
equipment
Note 1: On 31 December 2020, the Company and Sichuan Yibin Wuliangye Group Co., Ltd. entered into the
Trademark and Logo Licensing Agreement, which specifies that: Wuliangye Group licenses to the Company the
nonexclusive right of use of one factory emblem, the nonexclusive right of use of seven trademarks, exclusive
right of use of 182 trademarks, and unpaid exclusive right of use of eight trademarks. The royalty shall be paid by
the following means: a) The royalty of "factory emblem" shall be paid at 1.27% of the annual sales revenue from
all liquor products using the factory emblem; b) no royalty shall be paid for trademark of liquor products of which
the annual sales revenue is less than 50 tons, and royalty of trademark of liquor products sold by 50 tons
(inclusive) or more shall be calculated by the total sales volume. Royalties of trademark shall be paid by the
following means: Trademark royalty of products with selling price at RMB30,000 per ton and above shall be
RMB1,500 per ton; and that of products with selling price at RMB12,000 per ton and above but below
RMB30,000 per ton shall be RMB1,400 per ton; that of products with selling price below RMB12,000 shall be
RMB1,300 per ton. The Agreement is valid from 1 January 2021 to 31 December 2023.
Note 2: On 31 December 2020, 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
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
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 1 January 2021 to 31
December 2023.
b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co., Ltd.
On 2 April 2021, the Company and Sichuan Yibin Wuliangye Group Finance Co., Ltd. (hereinafter referred
to as "Wuliangye Group Finance Co., Ltd.") entered into the Financial Service Agreement. The main contents are
loan and deposit services. Daily balance of deposits in 2021 was no more than RMB47.9 billion, and the daily
balance of loan in 2021 was no more than RMB10 billion.
The total deposits of the Company with the Wuliangye Group Finance Co., Ltd. was RMB34,635,840,137.76
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 Wuliangye Group Finance Co., Ltd. are safe;
the current interest income is RMB835,567,595.13 in total; the Company discounted bank acceptance bills of
RMB2,925,360,111.00 to the Wuliangye Group Finance Co., Ltd. and paid discount interest of
RMB36,573,617.97 during the current period.
6. Receivables from and payables to related parties
(1) Accounts receivable
Unit: RMB
Closing balance Opening balance
Project name Related parties Bad debt Bad debt
Carrying amount Carrying amount
provision provision
Accounts
Sichuan Putian Packaging Co., Ltd. 12,850,871.27 7,403,902.45
receivable
Accounts Chengdu PUTH Medical Plastics Packaging Co.,
3,838,157.14
receivable Ltd.
Accounts
Chengdu Huayu Glass Manufacturing Co., Ltd. 2,735,249.77 249,223.49
receivable
Accounts Sichuan Yibin Wuliangye Group Health Wine
268,000.00 319,302.00
receivable Co., Ltd.
Accounts
Sichuan Yibin Push Auto Parts Co., Ltd. 129,813.03 56,300.73
receivable
Accounts
Yibin Chuanhong Tea Group Co., Ltd. 84,455.50 177,812.00
receivable
Accounts
Yibin Jiamei Intelligent Packaging Co., Ltd. 57,854.06
receivable
Accounts Sichuan Yibin Global Group Tianwo Trade Co.,
1,192,800.00
receivable Ltd.
Accounts
Sichuan Nongwu E-commerce Co., Ltd. 683,951.30
receivable
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Accounts
Yibin Paper Industry Co., Ltd. 396,398.81
receivable
Accounts
Sichuan Yibin Push Group Co., Ltd. 244,352.00
receivable
Accounts
Sichuan Andaxin Logistic Co., Ltd. 74,136.00
receivable
Accounts Sichuan Yibin Push Intelligent Technology Co.,
18,069.72
receivable Ltd.
Accounts
Sichuan Yibin Push Group Co., Ltd. 24,826,236.07
prepaid
Accounts Chengdu PUTH Medical Plastics Packaging Co.,
4,713,700.00 1,327,100.00
prepaid Ltd.
Accounts
Sacred Mountain Molin Group Co., Ltd. Si Chuan 1,761,061.95 4,006,415.93
prepaid
Accounts
Wuming Tea Industry Holding Co., Ltd. 1,560,000.00 6,160,000.00
prepaid
Accounts
Anji Logistic Group Co., Ltd. Sichuan 827,429.00 827,429.00
prepaid
Accounts
Yibin Ansage Auto Service Co., Ltd. 4,528.59 273,193.61
prepaid
Accounts
Yibin Push Linko Technology Co., Ltd. 19,944,767.12
prepaid
Accounts Yibin Ansage Auto Service Co., Ltd. Chhengdu
200,000.00
prepaid Branch
Accounts Push Information & Automation (Chengdu) Co.,
12,810.00
prepaid Ltd.
Monetary Sichuan Yibin Wuliangye Group Finance Co.,
510,174,463.27 476,552,144.13
assets Ltd.
Other Sichuan Yibin Wuliangye Group Health Wine
460,000.00
receivables Co., Ltd.
Other
Sichuan Putian Packaging Co., Ltd. 260,000.00 288,252.45
receivables
Other
Chengdu Huayu Glass Manufacturing Co., Ltd. 200,000.00 200,000.00
receivables
Other
Anji Logistic Group Co., Ltd. Sichuan 130,000.00 100,000.00
receivables
Other
Yibin Wuliangye Ecological Brewing Co., Ltd. 122,727.27 122,727.27
receivables
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Other
Sichuan Linhu Tea Co., Ltd. 45,000.00 80,000.00
receivables
Other
Sichuan Shuzhan New Materials Co., Ltd. 15,000.00 32,000.00
receivables
Other Sichuan Ansage Supply Chain Management Co.,
10,000.00
receivables Ltd.
The amount related to Sichuan Yibin Wuliangye Group Finance Co., Ltd. in this table represents the interest on time deposits
accrued on an accrual basis, and the closing balance is presented in the monetary assets account.
(2) Payables
Unit: RMB
Project name Related parties Closing carrying amount Opening carrying amount
Sichuan Yibin Global Group Tianwo Trade Co.,
Accounts payable 7,598,386.93 3,171,085.68
Ltd.
Accounts payable Sichuan Yibin Push Group Co., Ltd. 6,385,676.78
Accounts payable Yibin Jiamei Intelligent Packaging Co., Ltd. 4,050,000.00
Sichuan Yibin Wuliangye Group Anji Logistic Co.,
Accounts payable 1,178,214.10 354,013.71
Ltd.
Accounts payable Chengdu Huayu Glass Manufacturing Co., Ltd. 897,056.30 778,630.05
Yibin Global Photoelectric Energy Conservation
Accounts payable 539,522.98
Technology Co., Ltd.
Accounts payable Anji Logistic Group Co., Ltd. Sichuan 405,066.80
Sichuan Yibin Push Intelligent Technology Co.,
Accounts payable 169,087.50 243,745.46
Ltd.
Accounts payable Yibin Ansage International Logistic Co., Ltd. 73,959.23
Accounts payable Sichuan Putian Packaging Co., Ltd. 37,096.80 37,096.80
Accounts payable Sacred Mountain Molin Group Co., Ltd. Si Chuan 4,788.00
Accounts payable Sichuan Huansheng Pharmacy Co., Ltd. 1,310.05
Accounts payable Sichuan Yibin Push Drive Co., Ltd. 1,253,105.19
Yibin Global Energy Conservation Service Co.,
Accounts payable 649,772.10
Ltd.
Accounts payable Chengdu Ningjiang Machine Tool Sales Co., Ltd. 180,000.00
Sichuan Ansage Supply Chain Management Co.,
Accounts payable 116,615.11
Ltd.
Accounts payable Sichuan Shuzhan New Materials Co., Ltd. 110,000.00
Contract liability Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 17,410,387.61 9,255,292.04
Contract liability Sichuan Yibin Push International Co., Ltd. 1,435,659.19
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Contract liability Sacred Mountain Molin Group Co., Ltd. Si Chuan 959,477.88 663,844.25
Contract liability Sichuan Nongwu E-commerce Co., Ltd. 741,808.36 26,075,394.69
Contract liability Yibin Wuliangye Ecological Brewing Co., Ltd. 675,562.97 675,562.97
Contract liability Sichuan Shuzhan New Materials Co., Ltd. 524,403.54 1,427,964.60
Contract liability Yibin Wuliangye Group I&E Co., Ltd. 371,681.42 34,487.42
Contract liability Yibin Development Holding Group Co., Ltd. 326,548.67 388,495.58
Sichuan Ansage Supply Chain Management Co.,
Contract liability 211,498.23
Ltd.
Contract liability Yibin Ansage International Logistic Co., Ltd. 184,290.39 184,290.39
Contract liability Sichuan Putian Packaging Co., Ltd. 112,938.05 271,880.99
Contract liability Anji Logistic Group Co., Ltd. Sichuan 16,579.99 25,909.85
Sichuan Yibin Wuliangye Group Anji Logistic Co.,
Contract liability 892.04
Ltd.
Contract liability Sichuan Push Acetati Company Limited 17,650,236.39
Contract liability Sichuan Yibin Push Group Co., Ltd. 7,484,749.18
Contract liability Sichuan Tyre Rubber (Group) Co., Ltd. 958,672.57
Sichuan Yibin Wuliangye Group Health Wine Co., 788,720.35
Contract liability
Ltd.
Push Information & Automation (Chengdu) Co., 227,101.77
Contract liability
Ltd.
Sichuan Yibin Wuliangye Group Ecological 58,796.46
Contract liability
Brewery and Marketing Co., Ltd.
Notes payable Yibin Jiamei Intelligent Packaging Co., Ltd. 9,190,015.55 7,500,000.00
Notes payable Sichuan Putian Packaging Co., Ltd. 70,000.00
Notes payable Sichuan Yibin Licai Group Co., Ltd. 3,900,000.00
Notes payable Wuming Tea Industry Holding Co., Ltd. 909,196.00
Notes payable Anji Logistic Group Co., Ltd. Sichuan 447,351.78
Dividend payable Sichuan Yibin Wuliangye Group Co., Ltd. 37,918,093.23
Other payables Sichuan Putian Packaging Co., Ltd. 1,838,478.00 1,956,478.00
Sichuan Yibin Push Intelligent Technology Co.,
Other payables 1,674,898.82 2,638,791.93
Ltd.
Push Information & Automation (Chengdu) Co.,
Other payables 1,356,900.44 1,115,990.00
Ltd.
Other payables Yibin Ansage International Logistic Co., Ltd. 731,184.30 681,184.30
Other payables Sacred Mountain Molin Group Co., Ltd. Si Chuan 440,254.40 9,156.80
Other payables Chengdu PUTH Medical Plastics Packaging Co., 217,761.64
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Ltd.
Other payables Sichuan Nongwu E-commerce Co., Ltd. 100,000.00
Other payables Yibin Push Linko Technology Co., Ltd. 166,531.03 342,271.35
Sichuan Yibin Wuliangye Group Anji Logistic Co.,
Other payables 137,790.43 137,790.43
Ltd.
Other payables Sichuan Yibin Wuliang Pharmaceutical Co., Ltd. 111,500.00 102,200.00
Other payables Yibin Push Assets Management Co., Ltd. 85,204.00 353,516.00
Other payables Yibin Jiamei Intelligent Packaging Co., Ltd. 60,000.00 50,000.00
Other payables Sichuan Yibin Push Building Materials Co., Ltd. 50,000.00 50,000.00
Other payables Yibin Development Holding Group Co., Ltd. 50,000.00 50,000.00
Other payables Sichuan Tyre Rubber (Group) Co., Ltd. 50,000.00
Yibin Global Energy Conservation Service Co.,
Other payables 49,000.00
Ltd.
Sichuan Yibin Global Group Tianwo Trade Co.,
Other payables 20,000.00 70,000.00
Ltd.
Other payables Wuming Tea Industry Holding Co., Ltd. 20,000.00
Other payables Yibin Ansage Auto Service Co., Ltd. 20,000.00
Other payables Sichuan Linhu Tea Co., Ltd. 10,000.00 50,000.00
Yibin Global Photoelectric Energy Conservation
Other payables 5,040.84 5,040.84
Technology Co., Ltd.
Other payables Sichuan Shuzhan New Materials Co., Ltd. 3,000.00 3,000.00
Other payables Sichuan Andaxin Logistic Co., Ltd. 1,000.00
Other payables Anji Logistic Group Co., Ltd. Sichuan 430,000.00
Other payables Yibin Shengdi Trade Co. Ltd. 5,000.00
Other payables Sichuan Yibin Push Group Co., Ltd. 4,794.00
Sichuan Ansage Supply Chain Management Co.,
Other payables 2,036.28
Ltd.
XII Undertakings and Contingencies
1. Significant undertakings
The Company had no significant undertakings which need to be disclosed during the Reporting Period.
2. Contingencies
The Company had no significant contingencies which needed to be disclosed during the Reporting Period.
XIII Post-Balance Sheet Date Events
1. Important non-adjustment matters
The Company had no important non-adjustment matters which need to be disclosed.
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
2. Profit distribution
As resolved by the 6th meeting of the 5th Board of Directors of the Company held on 27 April 2022, the
profit distribution plan of 2021 is: RMB30.23 (tax inclusive) in cash will be distributed for every 10 shares, and
no capital reserve will be transferred to share capital. This plan shall be subject to the approval of General
Meeting of Shareholders.
3. Note on other post-balance sheet date events
The Company has no other post-balance sheet date 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
the People’s Government of Yibin City on the Plan of Establishing the Corporate Pension Plan of the Company
(YGZW [2018] No. 221) on 14 September 2018, and had filed with the Department of Human Resources and
Social Security of Sichuan Province on 30 October 2018.
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 operating
result. The Company has no segment information that needs to be disclosed since revenue of the Company is
mainly generated within China and the assets are also located within China.
XV Notes of Main Items in the Financial Statements of the Company as the Parent
1. Other receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 1,153,154,780.16 734,729,782.94
Other receivables 6,674,621,403.75 6,331,395,342.48
Total 7,827,776,183.91 7,066,125,125.42
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Item (or invested company) Closing balance Opening balance
Dividends receivable from subsidiaries 1,153,154,780.16 734,729,782.94
Total 1,153,154,780.16 734,729,782.94
2) Provision for bad debt
□ Applicable √ Not applicable
(2) Other receivables
1) Other receivables classified by nature
Unit: RMB
Nature of receivable Closing carrying amount Opening carrying amount
Current account 6,671,120,101.42 6,327,394,369.95
Deposit 5,000,000.00 5,000,000.00
Cash float 5,202.65 4,862.65
Total 6,676,125,304.07 6,332,399,232.60
2) Provision for bad debt
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit losses Expected credit loss for the Expected credit loss for the
Bad debt provision Total
over the coming 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on 1 January 2021 1,003,890.12 1,003,890.12
Balance on 1 January 2021 in
—— —— —— ——
the current period
Provisions in the current period 500,010.20 500,010.20
Balance on 31 December 2021 1,503,900.32 1,503,900.32
Large carrying amount change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (inclusive) 4,647,109,152.61
1 to 2 years 150,840,749.95
2 to 3 years 102,827,810.23
More than 3 years 1,775,347,591.28
3 to 4 years 126,542,645.67
4 to 5 years 104,064,080.50
More than 5 years 1,544,740,865.11
Total 6,676,125,304.07
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Annual Report 2021 of Wuliangye Yibin Co., Ltd.
3) Provision, recovery or reversal of bad debt provision in the current period
Bad debt provision in the current period:
Unit: RMB
Changes in the current period
Closing
Category Opening balance Recovery or
Provision Write-off Others balance
reversal
Other receivables with bad debt provision
by single item
Other receivables with bad debt provision
1,003,890.12 500,010.20 1,503,900.32
by credit risk combination
Total 1,003,890.12 500,010.20 1,503,900.32
4) Other receivables actually written off in the current period
The Company as the parent had no other receivables actually written off in the current Reporting Period.
5) Other receivables of top 5 closing balances by debtor
Unit: RMB
Closing
Proportion in total balance
Nature of
Unit name Closing balance Aging closing balance of of bad
receivables
other receivables debt
provision
Sichuan Yibin Wuliangye Current
4,432,705,367.89 Within one year 66.40%
Distillery Co., Ltd. account
Yibin Jiangjiu Liquor Co., Current 1-5 years; more than five
1,904,695,529.24 28.53%
Ltd. account years
Sichuan Yibin Wuliangye
Current 1-5 years; 4-5 years; more
Environmental Protection 191,512,926.24 2.87%
account than five years
Industry Co., Ltd.
Yibin Wuliangye Xianlin Current
129,206,278.05 More than five years 1.94%
Ecological Liquor Co., Ltd. account
Wuliangye Dashijie (Beijing) Current 1-5 years; more than five
13,000,000.00 0.19%
Trade Co., Ltd. account years
Total -- 6,671,120,101.42 -- 99.93%
2. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
193
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Investment in
11,416,902,138.11 11,416,902,138.11 11,476,902,138.11 11,476,902,138.11
subsidiaries
Investment in
associates and 1,896,707,464.47 1,896,707,464.47 1,838,516,357.72 1,838,516,357.72
joint ventures
Total 13,313,609,602.58 13,313,609,602.58 13,315,418,495.83 13,315,418,495.83
(1) Investment in subsidiaries
Unit: RMB
Increase/decrease in the current period Closing
Opening balance Accrual of Closing balance balance of
Invested company Additional Reduced
(carrying value) depreciation Others (carrying value) depreciation
investment investment
reserves reserve
Sichuan Yibin Wuliangye
5,069,784,707.36 5,069,784,707.36
Distillery Co., Ltd.
Yibin Wuliangye Liquor Sales
190,000,000.00 190,000,000.00
Co., Ltd.
Sichuan Yibin Wuliangye
765,756,006.41 765,756,006.41
Supply and Marketing Co., Ltd.
Yibin Jiangjiu Liquor Co., Ltd. 50,000,000.00 50,000,000.00
Sichuan Yibin Wuliangye
Environmental Protection 18,870,000.00 18,870,000.00
Industry Co., Ltd.
Yibin Changjiangyuan Liquor
20,000,000.00 20,000,000.00
Co., Ltd.
Yibin Wuliangye Xianlin
2,700,000.00 2,700,000.00
Ecological Liquor Co., Ltd.
Sichuan Yibin Wuliangye
49,374,409.93 49,374,409.93
Jingmei Printing Co., Ltd.
Sichuan Yibin Plastic
Packaging Materials Company 3,443,149,609.25 3,443,149,609.25
Limited
Sichuan Yibin Global Group
108,922,175.18 108,922,175.18
Shenzhou Glass Co., Ltd.
Sichuan Yibin Global Gelasi
307,282,551.14 307,282,551.14
Glass Manufacturing Co., Ltd.
Sichuan Yibin Push Group 3D
240,419,229.32 240,419,229.32
Co., Ltd.
Sichuan Yibin Wuliangye
Investment (Consulting) Co., 47,500,000.00 47,500,000.00
Ltd.
194
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Yibin Zhenwushan Liquor Co.,
20,000,000.00 20,000,000.00
Ltd.
Yibin Shiji Liquor Co., Ltd. 20,000,000.00 20,000,000.00
Yibin Cuipingshan Liquor Co.,
20,000,000.00 20,000,000.00
Ltd.
Wuliangye Dashijie (Beijing)
323,000,000.00 323,000,000.00
Trade Co., Ltd.
Handan Yongbufenli Liquor
255,000,000.00 255,000,000.00
Co., Ltd.
Huaibin Wubin Consultation
199,675,708.13 199,675,708.13
Service Co., Ltd.
Wuguchun Jiu Ye Co., Henan.
55,467,741.39 55,467,741.39
China
Sichuan Wuliangye Culture
40,000,000.00 40,000,000.00
Tourism Development Co., Ltd.
Yibin Wuliangye Creart Co.,
45,000,000.00 45,000,000.00
Ltd.
Wuliang Nongxiang Series
95,000,000.00 95,000,000.00
Baijiu Yibin Co., Ltd.
Sichuan Wuliangye New Retail
90,000,000.00 90,000,000.00
Management Co., Ltd.
Total 11,476,902,138.11 60,000,000.00 11,416,902,138.11
(2) Investment in associates and joint ventures
Unit: RMB
Increase/decrease in the current period
Profit and
Opening Change Closing Closing
loss on Adjustment Declaration Accrual of
balance Reduced s in balance balance of
Investor Additional investments of other of cash depreciati Other
(carrying investme other (carrying depreciati
investment recognized comprehensi dividends or on s
value) nt equitie value) on reserve
with equity ve income profits reserves
s
method
I. Joint Ventures
II. Associates
Oriental
Outlook 4,444,523.0
21,121,415.30 25,565,938.31
Media Co., 1
Ltd.
Sichuan
Yibin 1,817,394,942. 89,958,470. 41,720,016. 1,865,633,396.
Wuliangye 42 13 00 55
Group
195
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Finance Co.,
Ltd.
Beijing
Zhongjiuhuic
ui Education 5,625,000.
-116,870.39 5,508,129.61
and 00
Technology
Co., Ltd.
1,838,516,357. 5,625,000. 94,286,122. 41,720,016. 1,896,707,464.
Sub-total
72 00 75 00 47
1,838,516,357. 5,625,000. 94,286,122. 41,720,016. 1,896,707,464.
Total
72 00 75 00 47
3. Operating revenue and cost of sales
Unit: RMB
2021 2020
Item
Revenue Cost Revenue Cost
Other businesses 6,072.98 3,997.51 40,800.00
Total 6,072.98 3,997.51 40,800.00
4. Return on investment
Unit: RMB
Item 2021 2020
Long-term equity return on investment
17,889,486,279.68 15,244,089,045.16
accounted by cost method
Long-term equity return on investment
94,286,122.75 91,885,853.76
accounted by equity method
Return on investment generated from the
2,323,848.26
disposal of long-term equity investment
Total 17,986,096,250.69 15,335,974,898.92
XVI Supplementary Information
1. Schedule of current exceptional gains and losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets -23,622,995.51
Government grants through profit or loss (exclusive of government grants
consistently given in the Company’s ordinary course of business at fixed 184,126,377.62
quotas or amounts as per governmental policies or standards)
Capital occupation charges on non-financial enterprises that are recognized in 2,144,596.61
196
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
profit or loss
Non-operating income and expense other than the above -80,306,712.64
Less: Income tax effects 21,010,672.65
Non-controlling interests effects 11,985,497.85
Total 49,345,095.58 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS
Profit in the Reporting Period Weighted average ROE (%)
Basic EPS (RMB/share) Diluted EPS (RMB/share)
Net profit attributable to the Company’s
25.30% 6.023 6.023
ordinary shareholders
Net profit attributable to the Company’s
ordinary shareholders before exceptional 25.25% 6.010 6.010
gains and losses
3. Accounting data differences under China’s Accounting Standards for Business Enterprises (CAS) and
International Financial Reporting Standards (IFRS) and foreign accounting standards
(1) Net profit and equity under CAS and IFRS
□ Applicable √ Not applicable
(2) Net profit and equity under CAS and foreign accounting standards
□ Applicable √ Not applicable
(3) Accounting data differences under CAS and IFRS and foreign accounting standards. Where any
reconciliation is made to the data audited by an overseas independent auditor, the name of the overseas
independent auditor shall be provided.
Not applicable.
197
Annual Report 2021 of Wuliangye Yibin Co., Ltd.
Part XI Documents Available for Reference
The following documents are available for shareholders at the relevant department of the Company:
1. The financial statements that have been signed and stamped by the legal representative, the Chief Financial
Officer, and the head of the accounting department.
2. The original copy of the Independent Auditor’s Report that has been stamped by the CPA firm, as well as
signed and stamped by the relevant certified public accountants.
3. The originals of all the Company’s documents and announcements that were disclosed on China Securities
Journal, Shanghai Securities News and Securities Times during the Reporting Period.
4. The Annual Report of the Company.
Wuliangye Yibin Co., Ltd.
29 April 2022
198
