ANNUAL REPORT 2023
Company Code: 600132 Abbreviation of the Company: Chongqing Brewery
CHONGQING BREWERY CO., LTD.
ANNUAL REPORT 2023
1 / 238
ANNUAL REPORT 2023
Important Notice
I. The Board of Directors, the Board of Supervisors, and the directors, supervisors and senior management
of the Company guarantee that the information of the Annual Report is true, accurate and complete and
there are no false representations, misleading statements or material omissions, and assume individual and
joint liabilities to the information contained herein.
II. All Directors of the Company attended the Board meeting.
III. Pan-China Certified Public Accountants LLP (Special General Partnership) has issued an auditor’s
report with an unqualified opinion to the Company.
IV. Joo Miguel Ventura Rego Abecasis, the person-in-charge of the Company, Chin Wee Hua, the person-
in-charge of accounting affairs, and Liu Liping, the person-in-charge of the accounting department (head of
the accounting department) hereby declare their guarantees for the authenticity, accuracy and completeness
of the financial report in the Annual Report.
V. Plans on profit distribution or conversion of capital reserve to increase share capital in the current
reporting period deliberated and approved by the Board of Directors
The Company intends to distribute the cash dividend of 2.80 yuan per share (tax inclusive) to all shareholders on
the basis of the total share capital of 483,971,198 shares as at December 31, 2023, totaling 1,355,119,354.40 yuan
(tax inclusive). Cash dividend intended for distribution is from the operating profits generated by the Company in
its production and operation, and such distribution is general dividend distribution.
After the completion of the profit distribution plan of 2023, the remaining undistributed profit in the consolidated
financial statements of the Company is 59,187,375.37 yuan, and the remaining undistributed profit in the parent
company financial statements is 351,378,262.35 yuan. No capital reserve is converted to increase share capital this
time.
VI. Risk statement with respect to forward-looking statements
√ Applicable □ Not applicable
Forward-looking statements, including future plans, contained in this report do not constitute actual commitments
made by the Company to investors. Investors should be aware of investment risks.
VII. Is there any non-operational fund occupied by the controlling shareholder and its related parties
No
VIII. Is there any external guarantee made in violation of required decision-making procedures
No
IX. Are there more than half of the directors who cannot guarantee the authenticity, accuracy and
completeness of the annual report disclosed by the Company
No
X. Notice of material risks
2 / 238
ANNUAL REPORT 2023
The Company has described relevant potential risks in this report. For details, please refer to “VI. Management
Discussion and Analysis” under Section III of this Report.
XI. Others
□ Applicable √ Not applicable
3 / 238
ANNUAL REPORT 2023
CONTENTS
SECTION I DEFINITIONS ........................................................................................................................... 5
SECTION II COMPANY PROFILE AND PRINCIPAL FINANCIAL INDICATORS ............................. 5
SECTION III MANAGEMENT DISCUSSION AND ANALYSIS ................................................................ 9
SECTION IV CORPORATE GOVERNANCE ............................................................................................. 33
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITY.................................................... 55
SECTION VI IMPORTANT MATTERS ....................................................................................................... 64
SECTION VII CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS .......................... 88
SECTION VIII INFORMATION ON PREFERRED SHARES ..................................................................... 94
SECTION IX PARTICULARS OF BONDS .................................................................................................. 94
SECTION X FINANCIAL REPORT ............................................................................................................ 95
Financial statements signed with seals affixed by the person-in-charge of the Company, the
person in-charge of accounting fairs and the person-in-charge of the accounting department
of the Company;
Documents
Original copy of the audit report bearing the seal of the accounting firm as well as the
Available for
signatures and seals of the certified public accountants;
Inspection
Original copies of all the documents of the Company as well as the original scripts of its
announcements disclosed on the newspaper designated by the CSRC during the reporting
period.
4 / 238
ANNUAL REPORT 2023
SECTION I DEFINITIONS
I. Definitions
In this Report, unless the context otherwise requires, the following words shall have the following meanings:
CSRC China Securities Regulatory Commission
SSE Shanghai Stock Exchange
Company, the Company, the Chongqing Brewery Co., Ltd.
listed company
Carlsberg Foundation Carlsberg Foundation
Carlsberg Carlsberg A/S
Carlsberg Breweries Carlsberg Breweries A/S
Carlsberg HK Carlsberg Brewery Hong Kong Limited
Carlsberg Chongqing Carlsberg Chongqing Limited
Carlsberg Investment, Guangzhou Carlsberg Investment Co., Ltd., formerly known as Guangzhou
Carlsberg Consulting Carlsberg Consultancy and Management Services Co., Ltd.
Carlsberg Chongqing Carlsberg Chongqing Brewery Co., Ltd., formerly known as Chongqing
Brewery, Chongqing Jianiang Jianiang Brewery Co., Ltd.
Major asset restructuring, this The major asset purchase of Chongqing Brewery Co. Ltd. and joint capital
restructuring increase in the joint venture as well as related-party transactions
Pack A assets The collective name of 100% equity interest in Carlsberg (China) Breweries and
Trading Company Limited, 100% equity interest in Carlsberg Beer Enterprise
Management (Chongqing) Company Limited, 99% equity interest in Carlsberg
Brewery (Guangdong) Company Limited, and 100% equity interest in Kunming
Huashi Brewery Company Limited, which all held by Carlsberg Breweries.
Pack B assets The collective name of 100% equity interest in Xinjiang Wusu Breweries Co.
Ltd. and 70% equity interest in Ningxia Xixia Jianiang Brewery Co. Ltd., both
held by Carlsberg Breweries.
SECTION II COMPANY PROFILE AND PRINCIPAL FINANCIAL
INDICATORS
I. Corporate Information
Chinese name 重庆啤酒股份有限公司
Abbreviated Chinese name 重庆啤酒
English name Chongqing Brewery Co., Ltd.
Abbreviated English name CBC
Legal representative Joo Miguel Ventura Rego Abecasis
II. Contact Persons and Contact Information
Secretary to the Board Securities Affairs Representative
Name Deng Wei Li Xiaoyu
Address Floor 13, Kingold Century, No.62, Jinsui Floor 13, Kingold Century, No.62, Jinsui
Road, Tianhe District, Guangzhou City, Road, Tianhe District, Guangzhou City,
Guangdong Province Guangdong Province
Telephone 4001600132 4001600132
5 / 238
ANNUAL REPORT 2023
Fax 020-28016518 020-28016518
E-mail CBCSMIR@carlsberg.asia CBCSMIR@carlsberg.asia
III. Basic Information
Registered address No. 9, Hengshan East Road, Dazhulin Sub-district,
High-tech Industrial Park, New North Zone, Chongqing
Business address Floor 13, Kingold Century Finance Center, No. 62,
Jinsui Road, Tianhe District, Guangzhou City,
Guangdong Province
Postal code of business address 510623
Website www.carlsbergchina.com.cn
Email CBCSMIR@carlsberg.asia
IV. Place of Information Disclosure and Document Inspection
Names and websites of media for annual report China Securities Journal, Shanghai Securities News,
disclosure Securities Times, Securities Daily
Website of the stock exchange for annual report www.sse.com.cn
disclosure
Annual reports available at Board Office of the Company
V. Stock Listing
Stock Information
Stock Exchange for Previous Stock
Share Class Stock Abbreviation Stock Code
Listing Abbreviation
Shanghai Stock
A share Chongqing Brewery 600132 N/A
Exchange
VI. Other Relevant Information
Name Pan-China Certified Public Accountants LLP
Domestic accounting firm Block B, China Resources Building, 1366
Office address
engaged by the Company Qianjiang Rd., Hangzhou 310020, China
Signed CPAs Huang Qiaomei, Zhao Xingming
VII. Key Accounting Data and Financial Indicators for the Past Three Years
(I) Key accounting data
Monetary unit: RMB
2022 YoY growth
Items 2023 2021
After adjustment Before adjustment rate (%)
Operating revenue 14,814,836,410.26 14,039,040,539.45 14,039,040,539.45 5.53 13,119,310,688.30
Net profit
attributable to
1,336,597,321.13 1,263,619,606.46 1,263,604,930.09 5.78 1,166,243,415.91
shareholders of the
Company
Net profit
attributable to
shareholders of the
1,313,987,214.02 1,234,352,860.32 1,234,338,183.95 6.45 1,142,853,438.97
Company after
deducting non-
recurring profit or
6 / 238
ANNUAL REPORT 2023
loss
Net cash flows
from operating 3,096,948,816.62 3,752,648,258.54 3,752,648,258.54 -17.47 3,564,787,113.40
activities
December 31, December 31, 2022 YoY growth
December 31, 2021
2023 After adjustment Before adjustment rate (%)
Net profit
attributable to
2,140,200,619.57 2,056,176,499.91 2,056,155,782.63 4.09 1,754,545,104.23
shareholders of the
Company
Total assets 12,386,911,593.95 12,497,582,459.14 12,497,542,168.83 -0.89 11,532,809,144.20
(II) Key financial indicators
2022
YoY growth
Items 2023 After Before 2021
rate (%)
adjustment adjustment
Basic EPS (yuan/share) 2.76 2.61 2.61 5.78 2.41
Diluted EPS (yuan/share) 2.76 2.61 2.61 5.78 2.41
Basic EPS after deducting
non-recurring profit or loss 2.72 2.55 2.55 6.45 2.36
(yuan/share)
Weighted average ROE (%) 67.05 69.25 69.25 -2.20 99.69
Weighted average ROE after
deducting non-recurring profit 65.92 67.65 67.65 -1.73 97.69
or loss (%)
Remarks on key accounting data and financial indicators in the past three years
√ Applicable □ Not Applicable
The Ministry of Finance issued the “Interpretation of China Accounting Standards for Business Enterprises No. 16”
(Cai Kuai [2022] No. 31) (the “Interpretation No. 16”) on November 30, 2022, in which, the regulations about
accounting for deferred tax related to assets and liabilities arising from a single transaction to which the initial
recognition exemption does not apply take effect since January 1, 2023. For taxable and deductible temporary
differences associated with lease liabilities and right-of-use assets arising from such single transactions and
presented at the beginning of the earliest comparative period, the cumulative effect of initially applying the
Interpretation No. 16 and “CASBE 18 – Enterprise Income Tax” shall be adjusted into retained earnings or other
related items at the beginning of the earliest comparative period presented.
VIII. Differences in Accounting Data under Domestic and Overseas Accounting Standards
(I) Differences in net profit and net assets attributable to shareholders of the listed company in the financial
reports disclosed simultaneously in accordance with international accounting standards and Chinese
accounting standards
□ Applicable √ Not applicable
(II) Differences in net profit and net assets attributable to shareholders of the listed company in the financial
reports disclosed simultaneously in accordance with foreign accounting standards and Chinese
accounting standards
7 / 238
ANNUAL REPORT 2023
□ Applicable √ Not applicable
(III) Explanation on the differences between domestic and foreign accounting standards:
□ Applicable √ Not applicable
IX. Key Quarterly Financial Data in 2023
Monetary unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Items
(January-March) (April-June) (July-September) (October-December)
Operating revenue 4,005,811,752.65 4,498,990,103.91 4,523,879,342.82 1,786,155,210.88
Net profit attributable to
387,009,759.80 477,999,036.57 479,080,499.95 -7,491,975.19
shareholders of the Company
Net profit attributable to
shareholders of the Company
381,431,374.83 472,726,600.63 472,823,195.86 -12,993,957.30
after deducting non-recurring
profit or loss
Net cash flows from operating
852,609,164.70 1,692,833,561.88 1,172,868,916.60 -621,362,826.56
activities
Remarks on differences between quarterly data and data disclosed in periodic report
□ Applicable √ Not Applicable
X. Non-Recurring Profit or Loss
√ Applicable □ Not applicable
Monetary unit: RMB
Note No.
Items Year 2023 Year 2022 Year 2021
(if applicable)
Gains on disposal of non-current
assets, including write-off of -6,223,012.64 -2,686,096.87 -9,751,391.35
provision for impairment
Government grants included in
profit or loss (excluding those
closely related to operating activities
of the Company, satisfying
57,034,039.96 56,173,947.41 49,841,416.83
government policies and regulations,
enjoyed based on certain standards,
and continuously affecting gains or
losses of the Company)
Gains or losses on changes in fair
value of financial assets and
liabilities held by non-financial
enterprises, and gains or losses on
4,138,674.52 11,322,859.61 15,893,505.64
disposal of financial assets and
liabilities, excluding those arising
from hedging business related to
operating activities
Losses on assets incurred due to
force majeure such as natural -22,928,871.60
disasters
The reversed provision for
impairment of receivables based on
728,718.32 368,172.05
impairment testing on an individual
basis
8 / 238
ANNUAL REPORT 2023
Note No.
Items Year 2023 Year 2022 Year 2021
(if applicable)
Other non-operating revenue or
26,866,634.40 4,495,553.47 6,356,848.71
expenditures
Other profit or loss satisfying the
definition of non-recurring profit or 344,606.28 1,802,741.69
loss
Less: Enterprise income tax affected 14,721,391.00 15,007,349.22 15,591,614.27
Non-controlling interest
22,629,291.13 27,203,082.00 23,358,788.62
affected (after tax)
Total 22,610,107.11 29,266,746.14 23,389,976.94
Remarks on defining items not listed in “Interpretation Pronouncement on Information Disclosure Criteria for Public
Companies No. 1 – Non-Recurring Profit or Loss” as non-recurring profit or loss with significant amount and
remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information
Disclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
□ Applicable √ Not applicable
XI. Items Measured at Fair Value
√ Applicable □ Not applicable
Monetary unit: RMB
Effect on current
Items Opening balance Closing balance Increase/Decrease
profit before tax
Held-for-trading
360,202,000.00 360,202,000.00 4,138,674.52
financial assets
Other equity
instrument 14,303,331.73 16,625,962.83 2,322,631.10 344,606.28
investments
Derivative financial
3,829,356.40 14,392,732.78 10,563,376.38 -1,773,590.08
assets
Derivative financial
2,616,336.56 15,408,026.80 12,791,690.24 -8,230,528.75
liabilities
Total 20,749,024.69 406,628,722.41 385,879,697.72 -5,520,838.03
XII. Others
□ Applicable √ Not applicable
SECTION III MANAGEMENT DISCUSSION AND ANALYSIS
I. Discussion and Analysis on Operations
In 2023, the Company actively embraced opportunities and challenges presented by the macro environment,
maintaining a growth momentum across the three key financial indicators: sales volume, revenue, and profit. This
marked a promising start to our SAIL’ 27 strategy. Notably, the Company’s sales volume in 2023 achieved a year-
on-year growth of 4.93%, which is well above the industry level. It is worth noting that in 2023, the total output of
beer enterprises above the designated size nationwide was 35.555 million kiloliters, a slight year-on-year increase
of 0.3% (data source: National Bureau of Statistics).
9 / 238
ANNUAL REPORT 2023
I. Brands: In 2023, the Company continued to cultivate and expand its SAIL’ 27 strategic key projects. Building on
its diverse product portfolio and brand offerings, which resulted from the asset restructuring, the Company harnessed
the power of “Local Power Brands + International Premium Brands” to drive product premiumization and foster
innovative sales models.
Local brands: The Company relentlessly fortified its core competitiveness in key markets, leveraging its R&D and
innovation capabilities as pivotal drivers of premiumization. With Chongqing Pure Draft, Dali Beer V8, low-alcohol
brews of Wind Flower Snow Moon (WFSM), and targeted marketing initiatives tailored to specific regions, the
Company further propelled premiumization of its local brand offerings. Chongqing Craft White Beer, unveiled
under the Chongqing brand in December, 2023, not only cemented its premium product line but also elicited a
positive market response.
Wusu elevated its brand image and national visibility by enhancing engagement with young consumers. The brand
initiated a marketing campaign called “Dare to Challenge”, bringing together influential figures from various fields,
who embarked on captivating challenges that stirred the competitive spirits of consumers. Additionally, to deliver a
unique brand experience, Wusu proudly unveiled the very first brand experience store — the WUSU Big Big Q
— in Shanghai, forging a strong association with the vibrant barbecue scene.
International brands: Kronenbourg 1664 solidified its presence in the super premium beer category by launching
two new products, 1664 Prestige and 1664 Brut. These exquisite additions enriched the brand’s product matrix,
further catering to the diverse demands of consumers. To expand its reach to different consumer segments, the brand
has consistently embraced French inspirations across various domains, including fashion and art. In 2023, the brand
underwent a packaging upgrade, unveiling a new design of iconic small blue bottle that showcased French elegance
and sparked consumer interest. Additionally, the brand collaborated with Maison Kitsune to unveil a limited-edition
co-branded packaging. Through offline initiatives such as “1664 Pop-up Bus Station with a Twist” and “1664
L’ATELIER,” the brand actively conveyed its concept of Good Taste with A Twist to a broader audience.
To mark the Chinese New Year 2023 and the Year of the Rabbit, the Carlsberg brand unveiled a limited-edition
packaging designed by a renowned illustrator. In the peak season, the brand embarked on “Carlsberg DIMENSION”,
a nationwide performance tour that redefined avant-garde high-end parties through immersive audio and visual feast.
Simultaneously, Carlsberg joined hands with a leading Chinese fashion brand to launch the “Urban Green Series”
co-branded gift box, promoting a stylish and sustainable way of life.
In 2023, Tuborg enjoyed growth in both volume and price. With its brand ambassadors, the brand went above and
beyond in conveying its distinctive attitude to consumers, inspiring young individuals to “Tilt The World WHY
NOT.” Meanwhile, by continuously investing in the hip-pop music genre, which holds immense popularity among
the youth, the brand not only enhanced its nationwide visibility but also cemented its international brand image. Its
presence in the domestic market was strengthened through all-channel expansion. The upgraded Tuborg Pure Draft
saw rapid growth in volume, driving the brand’s premiumization.
Somersby Cider stepped up its development in 2023. With the captivating representation of its new spokesperson,
Ms. Zhao Lusi, the brand effectively conveyed its optimistic image of “Unlock the Sunshine, Embrace the Joy,”
capturing the hearts of more and more young consumers. The brand expanded its product offerings by introducing
exciting new flavors such as passion fruit and orange, providing consumers with a broader range of cider options.
Its various and effective e-commerce marketing campaigns propelled annual sales growth. These efforts earned
Somersby the “Annual Dark Horse Award” from Tmall, a China’s leading e-commerce platform.
10 / 238
ANNUAL REPORT 2023
Craft Beer Brands: During the Chinese New Year, JingA collaborated with the renowned Chinese fashion brand
Warrior 1927 to unveil a co-branded shoe. This partnership was accompanied by a communication campaign titled
“Celebrate the New Year Well, Start Anew in Every Step.” The campaign featured engaging advertising and
challenges on Douyin (the Chinese version of TikTok), effectively amplifying the brand’s visibility across social
media. In the summer, JingA continued to drive product trial and purchase through various initiatives, including
product seeding, beer gardens, and engaging consumer interactions. Brooklyn introduced a new Pilsner product in
May 2023, which secured wider reach and sales growth with a brighter and cooler design, enhanced drinkability,
and a highly relatable street style.
II. Sales: 2023 marked the beginning of a gradual recovery in consumption in China. Despite a more competitive
beer market environment, the Company maintained its growth trajectory, achieving record-breaking performance.
The Company’s core markets remained strong. Its’ advantage in premiumization expanded further. Its revenue per
hectoliter witnessed growth, supported by a diverse brand portfolio and a precise pricing strategy. The Big City plan
continued to delve deeper and receive increased investment, acting as a significant driver for the Company’s growth.
Traditional Retail: The Company continued to consolidate and enhance the on-trade channel, accelerating its
development in dining and entertainment scenes. In terms of the off-trade channel, the Company continued to
increase market share through consumer events, promotional packages, portfolio displays and promotions, and
improved in-store execution standards.
New Retail: The Company harnessed the power of e-commerce, strategically leveraging its brand resources to forge
deep collaborations with leading platforms such as Tmall and JD on IP marketing. The online B2B business
progressed in an orderly manner, while partnerships with platforms on the community group-buy channel were
fortified. These efforts led to a steady increase in the Company’s market share from the e-commerce channel. The
O2O channel experienced double-digit growth, supported by the Company’s continued efforts in F&B-to-home and
department store-to-store/home services. As a result, the Company fortified its position in core markets, driving
growth in revenue per hectoliter.
III. Supply Chain: The Company further optimized its supply network in 2023. The commencement of Korla
brewery expansion further reduced supply logistics costs. Wanzhou brewery resumed production by the year’s end,
effectively supporting increased market demand. The construction of Foshan brewery has been progressing steadily,
poised to commence operations in 2024. This project will fundamentally address the capacity shortage in South
China region, reducing logistics and transportation costs.
In its relentless pursuit of better beer taste, the Company made taste assessment a top priority for its team’s capacity
building. The Company launched a three-month “100 People Plan,” collaborating with China National Research
Institute of Food and Fermentation Industries and China Alcoholic Drinks Association (CADA) to train and certify
over 100 tasters, which significantly strengthened its beer tasting expertise. At the China International Beer
Challenge hosted by CADA, the Company won 13 awards, the highest among all participating companies for the
third consecutive year. Several of the Company’s brands, including Greenberg White Ale, Jing A Tuhao Gold Pilsner,
Greenberg Red Ale, Brooklyn Defender IPA, and Wusu Loulan Secret Brewing, were honored with 4 or 3 stars.
IV. ESG: 2023 marked the first full year for the Company to implement the “Together Towards ZERO and Beyond
(TTZAB)” ESG program. Significant progress was made across all targets, and the Company’s ESG rating was
upgraded to A by MSCI, making Chongqing Brewery the sole A-share listed alcoholic drink company to receive
such recognition. Mr. Lee Chee Kong, President of the Company, was honored as the “ESG Person of the Year 2023
in China’s Corporate Landscape” at the 21st China Enterprise Development Forum. The Company was bestowed
11 / 238
ANNUAL REPORT 2023
with multiple awards, including the “Outstanding Corporate Governance Case of the Year 2022” from CADA, the
“ESG Golden Bull Top 100 Awards” from China Securities Journal, the “Vibrant ESG Green Development Program”
from 21st Century, and the “ESG Pioneer Award 2023 for Listed Alcoholic Drinks Companies in China.”
Additionally, Chongqing Brewery was recognized as the “Leading Green and Low-Carbon Innovation Enterprise”
by Nanfang Metropolis Daily, the “ESG Benchmark Enterprise of the Year” by Guangzhou Daily, the “ESG
Sustainable Development Case” by Yangcheng Evening News, the “Most Popular ESG Company in the Greater
Bay Area” by New Express, and the “2023 ESG Innovation Pioneer” by NetEase Finance.
ZERO Carbon Footprint: During the reporting period, the Company utilized 100% green electricity and achieved a
79% adoption rate of electric forklifts. Throughout the year, the Company’s breweries successfully cut carbon
emissions by 2,568 tons in their production. This represents a remarkable 75.58% decrease compared to the 2015
baseline. The Company conducted the second round of assessment of its full value chain carbon footprint, based on
2022 data. The results showed a 28% reduction in the full life-cycle carbon footprint compared to 2015.
ZERO Farming Footprint: The Company attaches great importance to the recycling of brewing by-products. In 2023,
the Company successfully recycled 1.6 million tons of spent yeast and 144,000 tons of spent grains, repurposing
them in the agriculture and animal husbandry sectors. This practice fostered a harmonious relationship between the
Company and the environment. In addition, the Company achieved 100% local procurement of raw materials for
main auxiliary components, with 50% of hops and 30% of malt being sourced domestically.
ZERO Packaging Waste: In 2023, the Company adopted glass bottles made with 60% recycled materials. Its beer
brands, such as Carlsberg, utilized eco-friendly inks and PVC-free labels. Aiming to minimize the environmental
impact of materials, the Company realized a bottle recycling rate to 74.3%, a 2.8% increase from the previous year.
It conducted a project to lighten the weight of corrugated cardboard boxes, which resulted in an annual paper saving
of 3,800 tons, equivalent to preserving 76,000 trees.
ZERO Water Waste: In 2023, the average water consumption of the Company’s breweries decreased by 5.8%
compared to 2022, reaching 2.11HL/HL, a remarkable 45.5% reduction compared to 2015. Notably, its breweries
located in high water risk zones achieved a further reduction in annual average water consumption, reaching 2.01
HL/HL. The total water savings exceeded 254,000 tons, equivalent to the volume of 101 standard swimming pools.
Ningxia brewery launched the Company’s first reclaimed water supply program, improving water efficiency while
contributing to water conservation in the local community.
ZERO Irresponsible Drinking: The Company further increased the proportion of alcohol-free/low-alcohol products,
with WFSM unveiling a peach blossom flavored low alcohol beer. The Company actively participated in the
National Responsible Drinking Awareness Week, promoting the concept of responsible drinking through brand
events such as the Wusu Beer Music Festival. In 2023, 11 brand spokespersons of the Company, including Zhang
Yanqi, GAI, Dilraba, Zhao Luisi, and Jike Junyi, jointed forces to advocate for responsible drinking, reaching an
audience of over 5 million consumers.
ZERO Accidents Culture: The Company implemented pedestrian segregation across all its breweries, and adopted
a three-level safety matrix training to enhance employee competence and safety awareness. The construction of
Foshan brewery and the expansion of Korla brewery collectively amassed over 2 million safe working hours. In
addition, the Company witnessed a significant 80% decrease in lost time incidents among both employees and
contractors compared to 2018.
V. Talent development: The Company remains dedicated to building a culture and talent team that supports high-
12 / 238
ANNUAL REPORT 2023
performance growth. In 2023, the Company launched the “Qingyun Plan” to promote cross-regional and cross-team
talent mobility, enriching the career experiences of its employees. Measures such as talent reviews, job rotations,
cross-departmental projects, and long-term secondments were in place to facilitate internal movement and
development of talent. In addition, the Company actively implemented targeted talent programs, including the Sales
Personnel Development Project, Young Talent Development Project, Manager Pipeline Program, and Supervisor
Pipeline Program, all designed to empower employees to grow through hands-on learning. Thanks to these sustained
investments and efforts, the Company was honored with the titles of “China 100 Model Employers” and “Learning
and Development Role Model” in 2023 by 51job, a leading human resource solutions provider in China.
Cultural development: The Company placed a strong emphasis on responsibility and accountability in the principles
of Diversity, Equity & Inclusion (DE&I) in 2023. Together with employee representatives, the Company formulated
and implemented the “ Inclusive Leadership Behavior Guide,” conducting 69 workshops for over 1,700 managers,
with the aim of enhancing their understanding and application of inclusive leadership, responsibility, and
accountability. These efforts also aimed to nurture DE&I culture throughout the organization. In 2023, the Company
witnessed a notable 3% increase in the representation of women in middle and senior management compared to
2022. As a recognition of its efforts, the Company was honored with the “2023 DEI Employer Award” by Employer
Branding Institute, a renowned organization specializing in employer branding research.
The Company values employee feedback and has implemented various communication channels, including the
President’s Face-to-Face Forum, Hotline, Employee Communication Assembly, HRBP Interviews, and Line
Manager Interviews, to actively gather and respond to employee opinions and suggestions on various aspects of the
Company’s operations. It adopted findings from the 2023 Dedication Survey, developing corresponding action plans
for continuous improvement, with the goal of creating an even better workplace for its employees.
II. Description of the Industry Where the Company Operated During the Reporting Period
According to National Bureau of Statistics data, beer enterprises above the designated size in China produced 35.555
kiloliters of beer in 2023, a year-on-year increase of 0.3%.
III. Business of the Company During the Reporting Period
The Company mainly engages in manufacturing and sale of beer products.
Business model: The Company implements management by region.
Procurement: The Company adopts an approach of centralized procurement and decentralized ordering.
Supply: The Company organizes production and inventory in the principle of “production based on sales”.
Sales: The Company adopts a sales model that focuses primarily on wholesale agency, supplemented by direct
selling.
IV. Analysis on Core Competitiveness During the Reporting Period
√ Applicable □ Not applicable
The Company is Carlsberg’s operation platform in China. Carlsberg Group, based in Denmark, is one of the world’s
three largest beer companies. China is the largest market for Carlsberg Group globally. One of Carlsberg’ strategic
priorities in SAIL’ 27 — its strategy aiming towards 2027, is to Keep Winning in China, with the ambition of
being a successful, professional and attractive brewer in the country.
Market channels: The Company has a marketing and sales network that covers various provinces, regions and cities
in China. Its advantageous markets enjoy high-quality customer resources, strong brand advantages, and stable
distribution channels.
13 / 238
ANNUAL REPORT 2023
Brand portfolio: The Company boasts a strong brand portfolio of “Local Power Brands + International Premium
Brands”. IPBs include Carlsberg, Tuborg, K1664, Grimbergen, Brooklyn, Somersby, while LBPs are Wusu,
Chongqing, Shancheng, Xixia, Dali, Wind Flower Snow Moon and Jing-A. This portfolio enables the Company to
achieve high-quality growth by satisfying diverse consumer needs for excellent beer.
Supply network: With 26 breweries distributed across a wide geographic area, the Company enjoys sound
coordination in procurement, production, and logistics, realizing synergy and efficient operations.
Marketing and promotion: By combing overall operation with complementary branding, the Company has increased
marketing and promotion efficiency with more distinctive brand image and diversified marketing approaches.
V. Business Operation During the Reporting Period
In 2023, the Company sold 2.9975 million kiloliters of beer, an increase of 4.93% compared with 2.8566 million
kiloliters in 2022. The operating revenue in 2023 was 14.815 billion yuan, an increase of 5.53% compared with
14.039 billion yuan in 2022. Net profit attributable to shareholders of the Company in 2023 was 1.337 billion yuan,
an increase of 5.78% compared with 1.264 billion yuan in 2022. Net profit attributable to shareholders of the
Company after deducting non-recurring profit or loss in 2023 was 1.314 billion yuan, an increase of 6.45%
compared with 1.234 billion yuan in 2022.
(I) Analysis of principal business
1. Analysis on changes in related items in income statement and cash flow statement
Monetary unit: RMB
Current period Preceding period Percentage of
Items
cumulative comparative change (%)
Operating revenue 14,814,836,410.26 14,039,040,539.45 5.53
Operation cost 7,533,975,786.02 6,952,428,993.91 8.36
Selling expenses 2,532,621,832.78 2,326,217,227.20 8.87
Administrative expenses 494,670,737.76 534,570,348.93 -7.46
Financial expenses -60,313,396.63 -56,102,848.78 7.51
R&D expenses 26,232,056.27 110,747,936.06 -76.31
Net cash flows from operating
3,096,948,816.62 3,752,648,258.54 -17.47
activities
Net cash flows from investing
-1,050,978,857.03 -388,086,486.41 170.81
activities
Net cash flows from financing
-2,742,702,994.69 -2,133,485,949.36 28.56
activities
Remarks:
Changes in R&D expenses are mainly due to the decrease in R&D input.
Changes in net cash flows from investing activities are mainly due to the increase in net investment in structured
deposits, which offset the dividend received from the associate Chongqing Jiawei Beer Co., Ltd. in the current
period.
Remarks on significant changes in business type, profit composition or source in the current period.
14 / 238
ANNUAL REPORT 2023
□ Applicable √ Not Applicable
2. Revenue and cost analysis
√ Applicable □ Not applicable
(1). Analysis of principal business by industry, product, region and sales model
Monetary unit: RMB
Principal Business by Industry
YoY growth
Gross YoY growth YoY growth
in operating
Industry Operating revenue Operating cost margin in operating in gross
revenue
(%) cost (%) margin (%)
(%)
Beer 14,441,498,095.03 7,257,400,295.48 49.75 5.44 8.27 -1.31 pp
Principal Business by Product
YoY growth
Gross YoY growth YoY growth
in operating
Product Operating revenue Operating cost margin in operating in gross
revenue
(%) cost (%) margin (%)
(%)
International
5,277,531,505.74 2,390,976,254.79 54.70 8.30 5.07 1.40 pp
brands
Local brands 9,163,966,589.29 4,866,424,040.69 46.90 3.86 9.92 -2.92 pp
Principal Business by Region
YoY growth
Gross YoY growth YoY growth
in operating
Region Operating revenue Operating cost margin in operating in gross
revenue
(%) cost (%) margin (%)
(%)
Northwest 4,023,409,104.78 2,252,276,818.11 44.02 1.10 2.78 -0.91 pp
Central 6,083,629,709.60 3,323,196,374.35 45.37 3.01 9.86 -3.41 pp
South 4,334,459,280.65 1,681,927,103.02 61.20 13.74 13.14 0.21 pp
Principal Business by Sales Model
YoY growth
Gross YoY growth YoY growth
in operating
Sales model Operating revenue Operating cost margin in operating in gross
revenue
(%) cost (%) margin (%)
(%)
Wholesale
14,407,575,363.33 7,238,075,310.41 49.76 5.72 8.49 -1.28 pp
agency
Explanation Of Principal Business By Segment, Product, Region And Sales Model:
Not applicable.
(2). Analysis on production and sales volume
√ Applicable □ Not applicable
YoY YoY YoY
Main Inventory growth in growth in growth in
Unit Production Sales volume
products volume production sales inventory
(%) volume volume
15 / 238
ANNUAL REPORT 2023
(%) (%)
International
kl 786,373.42 835,516.24 70,191.22 2.86 7.93 -21.09
brands
Local brands kl 2,038,670.88 2,162,032.88 182,111.30 1.04 3.82 -7.87
Explanation Of Production And Sales Volume:
Not applicable.
(3). Performance of major purchase contracts and major sales contracts
□ Applicable √ Not applicable
(4). Cost analysis
Monetary unit: RMB
By Industry
As % of As % of
total cost total cost
YoY
Amount in the in the Amount in the in the prior
Industry Cost item Change Explanation
current period current prior period period
(%)
period
(%) (%)
Alcohol,
beverage and
Raw material
refined tea 4,826,855,183.73 66.51 4,353,191,926.22 64.95 10.88
costs
manufacturing
industry
Alcohol,
beverage and
refined tea Labor costs 573,758,514.11 7.91 581,342,607.96 8.67 -1.30
manufacturing
industry
Alcohol,
beverage and
Manufacturing
refined tea 675,114,347.72 9.30 672,881,885.81 10.04 0.33
costs
manufacturing
industry
Alcohol,
beverage and
refined tea Others 1,181,672,249.92 16.28 1,095,573,838.87 16.34 7.86
manufacturing
industry
Total 7,257,400,295.48 100.00 6,702,990,258.86 100.00 8.27
By Product
As % of
As % of
total cost
total cost YoY
Amount in the in the Amount in the
Product Cost item in the prior Change Explanation
current period current prior period
period (%)
period
(%)
(%)
Raw material
Beer 4,826,855,183.73 66.51 4,353,191,926.22 64.95 10.88
costs
Beer Labor costs 573,758,514.11 7.91 581,342,607.96 8.67 -1.30
Beer Manufacturing 675,114,347.72 9.30 672,881,885.81 10.04 0.33
16 / 238
ANNUAL REPORT 2023
costs
Beer Others 1,181,672,249.92 16.28 1,095,573,838.87 16.34 7.86
Total 7,257,400,295.48 100.00 6,702,990,258.86 100.00 8.27
Other Information Relating To Cost Analysis:
None.
(5). Changes in the scope of consolidation as a result of changes in shareholding of major subsidiaries during
the Reporting Period
□ Applicable √ Not applicable
(6). Material changes or adjustments to the Company’s business, products or services during the Reporting
Period
□ Applicable √ Not applicable
(7). Information on major customers and suppliers
A. Major customers of the Company
√ Applicable □ Not applicable
Sales to the top five customers amounted to RMB 663.5524 million, accounting for 4.48% of the total annual sales.
Of the aforementioned amount, sales to related parties was RMB 0, accounting for 0% of the total annual sales.
During the Reporting Period, the proportion of sales to a single customer exceeded 50% of the total, there were new
customers in the top five customers or the Company was heavily dependent on a few customers.
□ Applicable √ Not applicable
B. Major suppliers of the Company
√ Applicable □ Not applicable
Purchase from the top five suppliers amounted to RMB 135.9190 million, accounting for 14.02 % of the total annual
purchase. Of the aforementioned amount, purchase from related parties was RMB 0, accounting for 0% of the total
annual purchase.
During the Reporting Period, the proportion of the purchase amount from a single supplier exceeded 50% of the
total, there were new suppliers in the top five suppliers or the Company was heavily dependent on a few suppliers.
□ Applicable √ Not applicable
Other remarks:
None.
3. Expenses
√ Applicable □ Not applicable
The increase in selling expenses was mainly due to the increase in market investment, including increased
advertising expense to drive business development.
4. R&D input
(1). Details on R&D input
√ Applicable □ Not applicable
Monetary unit: RMB
Amount expensed in the current period 26,232,056.27
17 / 238
ANNUAL REPORT 2023
Amount capitalized in the current period 0.00
Total R&D input 26,232,056.27
% to total operating revenue 0.18
Proportion of R&D input capitalized (%) 0.00
(2). R&D personnel
√ Applicable □ Not applicable
Number of R&D personnel 1,484
As % of the total number of the Company’s employees 21.60
Educational background structure of R&D personnel
Educational background Number in each educational background
Master’s degree 19
Undergraduate 207
Junior college 455
High school and below 803
Age structure of R&D personnel
Age group Number in each age group
under 30 (excluding 30) 172
30-40 (including 30 but excluding 40) 384
40-50 (including 40 but excluding 50) 496
50-60 (including 50 but excluding 60) 423
over 60 9
(3). Explanation
□ Applicable √ Not applicable
(4). Reasons for significant changes in the composition of R&D personnel and the impact on the future
development of the Company
□ Applicable √ Not applicable
5. Cash flows
√ Applicable □ Not applicable
Decrease in net cash inflows from operating activities of 655.6994 million yuan was mainly due to the increase in
taxes and rates in the current period.
Increase in net cash outflows from investing activities of 662.8924 million yuan was mainly due to the increase in
net investment in structured deposits, which offset the dividend received from the associate Chongqing Jiawei Beer
Co., Ltd. in the current period.
Increase in net cash outflows from financing activities of 609.217 million yuan was mainly due to the increase in
cash dividend.
(II) Major changes in profits caused by non-principal businesses
□ Applicable √ Not applicable
(III) Analysis of assets and liabilities
18 / 238
ANNUAL REPORT 2023
√ Applicable □ Not applicable
1. Assets and liabilities
Monetary unit: RMB
Percentage
% to % to
Items Closing balance December 31, 2022 of change Reasons for changes
total total
(%)
Mainly due to the
Held-for-trading
360,202,000.00 2.91 100.00 increase in bank
financial assets
structured deposits.
Mainly due to the
Derivative financial changes in fair value of
14,392,732.78 0.12 3,829,356.40 0.03 275.85
assets aluminum hedging
business.
Mainly due to the
increase in deposits and
Other receivables 23,987,973.67 0.19 17,619,026.18 0.14 36.15
waste materials disposal
funds.
Mainly due to the
increase in prepaid taxes
Other current assets 146,488,217.09 1.18 109,533,473.56 0.88 33.74
and input VAT to be
credited.
Mainly due to dividend
Long-term equity distributed by Chongqing
140,608,195.59 1.14 296,599,881.05 2.37 -52.59
investments Jiawei Beer Co., Ltd. in
the current period.
Construction in Mainly due to the Foshan
783,503,734.86 6.33 395,295,204.91 3.16 98.21
progress Factory Project.
Mainly due to expansion
Right-of-use assets 153,497,044.09 1.24 100,306,926.11 0.80 53.03 of the consolidation
scope.
Mainly due to the
Derivative financial changes in fair value of
15,408,026.80 0.12 2,616,336.56 0.02 488.92
liabilities aluminum hedging
business.
Mainly due to the
Taxes and rates decreases in enterprise
86,479,764.60 0.70 255,387,461.35 2.04 -66.14
payable income tax and
consumption tax.
Non-current Mainly due to expansion
liabilities due within 42,382,811.96 0.34 24,005,592.21 0.19 76.55 of the consolidation
one year scope.
Mainly due to expansion
Lease liabilities 121,370,635.09 0.98 77,928,597.87 0.62 55.75 of the consolidation
scope.
Mainly due to the offset
Deferred tax against deferred tax
7,806,126.04 0.06 42,694,067.15 0.34 -81.72
liabilities assets for a net basis
presentation.
Other remarks:
None.
2. Overseas assets
□ Applicable √ Not applicable
3. Restriction on major assets as of the end of the Reporting Period
√ Applicable □ Not applicable
19 / 238
ANNUAL REPORT 2023
Monetary unit: RMB
Closing carrying Type of
Items Closing book balance Reasons
amount restrictions
Cash and bank
820,036.10 820,036.10
balances
Including: Deposits
for letters of 316,100.00 316,100.00 Frozen Deposits are frozen.
guarantee
Deposits for
503,436.10 503,436.10 Frozen Deposits are frozen.
litigation
Other deposits 500.00 500.00 Frozen Deposits are frozen.
Total 820,036.10 820,036.10
4. Other remarks
□ Applicable √ Not applicable
(IV) Analysis of operating information in the liquor production industry
√ Applicable □ Not applicable
For details, please refers to the analysis of the operating information in the liquor production industry.
20 / 238
ANNUAL REPORT 2023
Analysis on Operating Information of Liquor Production Industry
1 Industry profile
√ Applicable □ Not applicable
For details, please refer to “VI. Discussion and analysis on the future development of the Company” under
Section III ““MANAGEMENT DISCUSSION AND ANALYSIS”.
2 Production capacity
Existing capacity
√ Applicable □ Not applicable
Unit: '0,000 kiloliter
Name of main factories Design capacity Actual capacity
Carlsberg (China) Brewery Industry and Trade Limited 50.00 43.00
Carlsberg Chongqing Brewery Co., Ltd. 40.00 36.00
Chongqing Brewery Yibin Co., Ltd. 35.00 32.00
Ningxia Xixia Jianiang Brewery Co., Ltd. 30.00 27.00
Jiulongpo Branch of Carlsberg Chongqing Brewery Co., Ltd. 28.00 21.00
Carlsberg Tianmu Lake Brewery (Jiangsu) Co., Ltd. 26.00 23.00
Xinjiang Wusu Brewery Co. Ltd. 25.00 24.00
Kunming Huashi Brewery Co., Ltd. 25.00 24.00
Hechuan Branch of Carlsberg Chongqing Brewery Co., Ltd. 18.00 17.00
Carlsberg Brewery (Anhui) Co., Ltd. 16.00 16.00
Capacity under construction
√ Applicable □ Not applicable
Monetary unit: RMB Ten Thousand
Name of capacity under Planned investment Amount invested in this Accumulated
construction amount reporting period investment amount
Foshan new capacity construction
149,193 46,724 84,701
project
Production capacity calculation standards
√ Applicable □ Not applicable
The capacity is calculated according to the time requirements of the beer production process, and the allocation of
the brewery's fixed assets.
3 Inventory at the end of the Reporting Period
√ Applicable □ Not applicable
Unit: kiloliter
Finished beer Semi-finished beer (including base beer)
252,302.52 85,399.39
Inventory impairment risk warning
□ Applicable √ Not applicable
4 Product profile
√ Applicable □ Not applicable
21 / 238
ANNUAL REPORT 2023
Monetary unit: RMB Ten Thousand
Production-
Change Sales Change Main
Product sales Sales Change
Production (kl) YoY volume YoY representing
segment ratio revenue YoY (%)
(%) (kl) (%) brand
(%)
Carlsberg,
Tuborg,
Premium 1,353,400.93 -0.10 1,437,495.07 3.98 106.21 885,469.01 5.18
1664, Wusu
Red
Chongqing,
Mainstream 1,372,489.42 3.34 1,461,627.53 5.97 106.49 529,720.01 5.64 Wusu, Dali,
Xixia
Shancheng,
Economy 99,153.96 -0.26 98,426.51 3.80 99.27 28,960.79 10.06
others
Product grading standards
√ Applicable □ Not applicable
The Company classifies its products into three segments based on consumption price, i.e, premium (priced at RMB
8 yuan and above), mainstream (priced between RMB 4-8 yuan, excluding 8 yuan), and economy (priced below
RMB 4 yuan)
Changes in product structure and business strategy
√ Applicable □ Not applicable
Leveraging its 6+6 brand portfolio, the Company has continued to advance its premiumization strategy and
expanded its market presence. By enhancing channel distribution, optimizing networks, and expanding into new
retail and online sales channels, the Company has positively responded to consumer demand and successfully
developed its branded products, including Carlsberg, Tuborg, Chongqing, and Dali, in various regions.
5 Raw material purchase
(1). Purchase model
√ Applicable □ Not applicable
The Company adopts an approach of centralized procurement and decentralized ordering for raw material purchase.
(2). Purchase amount
√ Applicable □ Not applicable
Monetary unit: RMB Ten Thousand
as % in total
Type of raw Purchase amount in Purchase amount in
purchase amount in the current period
materials the current period the prior period
(%)
Beer brewing raw
162,056.79 154,047.40 31.34
materials
Packaging
325,659.36 343,183.76 62.97
materials
Energy 29,408.89 25,403.60 5.69
Total 517,125.04 522,634.76 100.00
Note: The above amounts are tax-inclusive.
6 Sales
22 / 238
ANNUAL REPORT 2023
(1). Sales model
√ Applicable □ Not applicable
The Company adopts a sales model that focuses primarily on wholesale agency channels, supplemented by direct
selling.
(2). Sales channel
√ Applicable □ Not applicable
Monetary unit: RMB Ten Thousand
Sales revenue in the Sales revenue in the Sales volume in the Sales volume in the
Channel type
current period prior period current period (kl) prior period (kl)
Wholesale agency 1,440,757.54 1,362,842.61 2,992,674.57 2,849,292.21
(3). Sales by region
√ Applicable □ Not applicable
Monetary unit: RMB Ten Thousand
Sales revenue in Sales revenue as % in the Sales volume Sales volume in as % in
Region the current in the prior total in the current the prior period the total
period period amount period (kl) (kl) volume
Northwest 402,340.91 397,944.29 27.86 816,786.07 786,139.91 27.25
Central 608,362.97 590,595.43 42.13 1,379,177.81 1,346,071.46 46.01
South 433,445.93 381,081.94 30.01 801,585.17 724,406.15 26.74
Region division standards
√ Applicable □ Not applicable
The company divides its management region into three, i.e., Northwest, Central, and South.
(4). Information on distributors
√ Applicable □ Not applicable
Unit: Nr.
Number of distributors by
Number of distributors increased Number of distributors decreased
Region the end of the reporting
in the reporting period in the reporting period
period
Northwest 1,117 230 361
Central 1,391 284 222
South 561 222 139
Remarks
□ Applicable √ Not applicable
Management of distributors
√ Applicable □ Not applicable
The Company places significant importance on enhancing the capacity of its distributors, with a particular focus on
the capacity development of key accounts. Its distributor network allows it to implement effective marketing
strategies such as market planning, channel operations, and product promotion.
The Company empowers its distributors through its distributor excellence programs. By utilizing a hierarchical
23 / 238
ANNUAL REPORT 2023
grading system, distributors are assessed based on their abilities and provided with corresponding management
support and empowerment. With a particular focus on key accounts, the Company established a pilot committee
system, granting empowerment and benefits aligned with the mutually beneficial objectives of both parties.
Additionally, the Company developed a channel model suitable for local conditions and distributor capability profile,
taking into account various market stages and competitive environments. This enables the systematic and strategic
planning of sales areas and channel divisions. Through strategic cooperation, daily operational system, and capacity
development initiatives, the Company progressively enhances its channel planning, expands its channel coverage,
and strengthens control over its sales terminals. These efforts aim to bolster the capabilities of distributors and
augment their overall operational proficiency.
(5). Information relating to online sales
□ Applicable √ Not applicable
Future online business strategy
√ Applicable □ Not applicable
The Company is taking organizational structure innovation to the next level by merging its e-commerce and O2O
businesses into the greater marketing department. This move will foster collaboration with leading traditional e-
commerce platforms like JD and Tmall for brand building, new product testing, and consumer engagement. The
social e-commerce will be further leveraged to enhance marketing, content-driven operations, and consumer
interactions. Through stronger partnerships with various business divisions, the Company will embrace EB2B (e-
commerce business-to-business) and community group-buy channels as essential supplements to its Big City plan
and catalysts for channel digitalization.
The Company will further optimize its O2O model, fueling the development of innovative initiatives such as the
Flash Warehouse (a pre-positioned warehouse for instant home delivery), and liquor franchises. At the same time,
it will enhance collaboration with MOFT leading retailers in the vibrant O2O sector, harnessing their power to drive
impactful engagement. Efforts will be vigorously made to develop F&B-to-home business, driving the digital
transformation of dining channels. To explore opportunities in in-store business, the Company will strengthen
partnerships with leading platforms like Meituan and Dianping to generate new traffic for offline dinning and
entertainment scenes.
7 Analysis of the Company’s revenue and costs
(1). Disclosure of the compositions of the Company’s principal business by class
√ Applicable □ Not applicable
Monetary unit: RMB
Gross
Year-on-year Year-on-year Year-on-year
Class Operating revenue Operating cost margin
(%) (%) (%)
(%)
By product segment
Premium 8,854,690,109.71 5.18 3,983,867,831.58 8.97 55.01 -1.57
Mainstream 5,297,200,132.72 5.64 3,021,344,782.27 7.30 42.96 -0.88
Economy 289,607,852.60 10.06 252,187,681.63 9.09 12.92 0.78
Total 14,441,498,095.03 5.44 7,257,400,295.48 8.27 49.75 -1.31
By sales channel
Wholesale
14,407,575,363.33 5.72 7,238,075,310.41 8.49 49.76 -1.28
agency
By region
Northwest 4,023,409,104.78 1.10 2,252,276,818.11 2.78 44.02 -0.91
24 / 238
ANNUAL REPORT 2023
Central 6,083,629,709.60 3.01 3,323,196,374.35 9.86 45.37 -3.40
South 4,334,459,280.65 13.74 1,681,927,103.02 13.14 61.20 0.21
Total 14,441,498,095.03 5.44 7,257,400,295.48 8.27 49.75 -1.31
Remarks
√ Applicable □ Not applicable
The Company classifies its products into three segments based on consumption price, i.e, premium (priced at RMB
8 yuan and above), mainstream (priced between RMB 4-8 yuan, excluding 8 yuan), and economy (priced below
RMB 4 yuan).
(2). Information on cost
√ Applicable □ Not applicable
Monetary unit: RMB
As % of total cost in the YoY
Cost item Amount in the current period Amount in the prior period
current period (%) (%)
Raw material
4,826,855,183.73 4,353,191,926.22 66.51 10.88
costs
Labor costs 573,758,514.11 581,342,607.96 7.91 -1.30
Manufacturing
675,114,347.72 672,881,885.81 9.30 0.33
costs
Others 1,181,672,249.92 1,095,573,838.87 16.28 7.86
Total 7,257,400,295.48 6,702,990,258.86 100.00 8.27
Remarks
Applicable √ Not applicable
8 Other explanations
□ Applicable √ Not applicable
(V) Investment analysis
General analysis of external equity investment
□ Applicable √ Not applicable
1. Significant equity investment
□ Applicable √ Not applicable
2. Significant non-equity investment
□ Applicable √ Not applicable
3. Financial assets measured at fair value
√ Applicable □ Not applicable
25 / 238
ANNUAL REPORT 2023
Monetary unit: RMB
Cumulative changes
Opening Gains on changes Provision for Amount sold/ Other
Categories in fair value Amount purchased Closing balance
balance in fair value impairment redeemed changes
included in equity
Held-for-trading
financial assets 4,138,674.52 1,080,000,000.00 -723,936,674.52 360,202,000.00
[Note]
Derivative financial
1,213,019.84 -8,016,892.01 6,650,276.40 -861,698.25 -1,015,294.02
instruments
Other equity
instrument 14,303,331.73 2,322,631.10 16,625,962.83
investments
Total 15,516,351.57 4,138,674.52 -5,694,260.91 1,086,650,276.40 -724,798,372.77 375,812,668.81
Note: Please refer to item XIII (III) of section VI for details.
Financial assets measured at fair value mainly include held-for-trading financial assets, derivative financial instruments (derivative financial assets and liabilities), and equity
investment instruments of the Company. Please refer to item VII 2, 3, 18 and 34 of section X for details.
Securities investment
□ Applicable √ Not applicable
Private equity investment
□ Applicable √ Not applicable
Derivative investment
√ Applicable □ Not applicable
(1). Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not applicable
26 / 238
ANNUAL REPORT 2023
Monetary unit: RMB
Proportion to
Gains on Cumulative changes Amount purchased the total
Categories of derivative Initial investment Opening carrying Amount sold in the Closing carrying
changes in in fair value included in the reporting closing balance
investments amount amount reporting period amount
fair value in equity period of net assets
(%)
Aluminum swaps - Cash
1,213,019.84 -8,016,892.01 6,650,276.40 -861,698.25 -1,015,294.02 0.05
flow hedges
Total 1,213,019.84 -8,016,892.01 6,650,276.40 -861,698.25 -1,015,294.02 0.05
Accounting policies and
specific accounting
principles for hedging
business during the
reporting period, and None.
remarks on whether there
are any material changes
compared with that of the
previous reporting period
Remarks on actual profit
Amount affected due to the transfer from other comprehensive income to profit or loss for hedging settlement was -10,004,118.83 yuan; considering the hedged items,
and loss during the
profit or loss was affected by 0.00 yuan.
reporting period
Under the premise of ensuring normal production and operation, the Company carries out hedging business, which is conducive to effectively avoiding market risks,
Remarks on the effect of
hedging the impact of raw material prices on its production and operation, and achieving its long-term and steady development. The Company’s the volume of commodity
hedging
swaps match with volume of expected future purchases, hence the hedge is effective.
Sources of funds for
Self-owned funds
derivative investments
I. Risk analysis
The Company’s hedging business is mainly to lock the price of raw materials in advance and stabilize the production cost, but there are also certain risks:
1. market risk: aluminum prices fluctuate wildly, and its price trend may not be favorable to the Company;
Risk analysis and control 2. Policy risks: if there are major changes in relevant laws, regulations and policies of the derivatives market, there may be risks of drastic fluctuations or inability to trade
measures of derivative in the derivatives market;
positions during the
reporting period 3. Performance risk: in the event of large adverse fluctuations in the price of financial derivatives, the counterparty may violate the contract and cause losses to the Company;
(including but not limited
to market risk, liquidity 4. Technical risk: there may be uncontrollable or unpredictable system, network, communication failures, resulting in failure in the normal operation of the trading system,
risk, credit risk, which lead to delay, interruption, data error or other problems in trading orders.
operational risk, legal
5. Foreign exchange risk: hedging involves foreign currency settlement, and exchange rate may change due to changes in the foreign exchange market, resulting in the risk
risk, etc.)
of loss.
II. Risk control
To carry out hedging business, the Company will carefully choose financial institutions with financial derivatives business qualifications to conduct transactions. Priority
27 / 238
ANNUAL REPORT 2023
is given to financial institutions with excellent credit ratings, strong strength and outstanding service capabilities.
The Company formulated the “Hedging Business Management System (April 2022)”, improved the relevant internal control system, and set up an internal hedging
investment committee, which is specifically responsible for matters related to the Company’s hedging business, and the risk control and internal audit department regularly
or irregularly inspects the hedging business, supervises the hedging business personnel to implement risk management policies and procedures, and prevents operational
risks in the business in a timely manner. When the market price fluctuates greatly or abnormal fluctuations occur, such as when the market value loss of the trading contract
approaches or breaks the stop loss limit, the hedging investment committee immediately convenes a meeting to make a decision and reduce the Company’s losses as much
as possible.
Changes in the market
price or fair value of the
invested derivatives
during the reporting
period (the specific
methods used and the
The amount in the statements provided by financial institutions is used as the basis for determination.
setting of relevant
assumptions and
parameters should be
disclosed in the analysis
of the fair value of
derivatives)
Whether involved in
N/A
litigations (if applicable)
Date of disclosing the
announcement of the Please refer to the “Announcement on the Resolution of the Eighth Meeting of the Tenth Session of the Board of Directors of Chongqing Brewery Co., Ltd.” and the
Board of Directors on “Announcement of Chongqing Brewery Co., Ltd. on Continuing to Carry Out Aluminum Hedging Business” disclosed on the website of Shanghai Stock Exchange on
approval for derivative April 28, 2023 for details.
investment (if any)
Date of disclosing
announcement of the Please refer to the “Announcement on Resolution of the First Extraordinary Shareholders’ Meeting of 2022 of Chongqing Brewery Co., Ltd.” and the “Announcement on
shareholders’ meeting on Resolution of the Shareholders’ Meeting of 2021 of Chongqing Brewery Co., Ltd.” disclosed on the website of Shanghai Stock Exchange respectively on March 25, 2022
approval for derivative and May 26, 2022 for details.
investment (if any)
28 / 238
ANNUAL REPORT 2023
(2). Derivative investments for speculative purposes during the reporting period
□ Applicable √ Not applicable
Other remarks:
None.
4. Progress of major asset restructuring during the reporting period
□ Applicable √ Not applicable
(VI) Sales of major assets and equity interests
□ Applicable √ Not applicable
(VII) Analysis on major controlled subsidiaries and investee companies
√ Applicable □ Not applicable
Monetary unit: RMB
Name of Place of Business Registered Business Holding Operating Operating
Type Net profit
subsidiary registration nature capital Scope proportion revenue profit
Carlsberg
Holding Beer Production and
Chongqing Chongqing 850,000,000.00 51.42% 14,814,836,410.26 3,422,347,290.22 2,781,505,513.33
subsidiary industry sales of beer
Brewery Co., Ltd.
(VIII) Structured entities controlled by the Company
□ Applicable √ Not applicable
VI. Discussion and Analysis on the Future Development of the Company
(I) Landscape and trend of the industry
√ Applicable □ Not applicable
Following its peak production in 2013, China’s beer industry has experienced a consistent downward trajectory.
Although there has been a slight increase since 2021, production in 2023 dropped by 28.6% compared to 2013.
China’s beer industry has therefore entered the established market stage, exhibiting the following characteristics:
1. Continued competition: The five largest beer companies in China now hold a combined market share exceeding
90%. While they continue to develop business in their respective strongholds, these major players face fierce
competition in localized markets. Niche brands and imported beers also directly compete with the five major players
in specific market niches.
2. Rising costs: Various cost factors, including raw materials, packaging materials, energy, and labor, have continued
to increase. This places higher demands on operational efficiency for beer enterprises.
3. Diversification: Consumer demand has expanded beyond traditional mainstream core beers, leading to a greater
emphasis on diversified products. Craft beers, specialty beers, ciders, alcohol-free and low-alcohol beers are gaining
increasing attention from major beer companies.
4. High-quality development: Despite the significant decline in industry output, major beer companies have
generally witnessed improvements in revenue and profitability. This indicates the resilience of China’s beer industry.
29 / 238
ANNUAL REPORT 2023
Regarding industry trends, the Company’s management remains steadfast in their belief that achieving high-quality
development is both the objective and the path forward for China’s beer industry. Embracing high-quality
development is crucial for beer companies to navigate steadily amidst the new normal of economy.
(II) Development strategy of the Company
√ Applicable □ Not applicable
As a member of the Carlsberg Group, the Company conducts business in alignment with the group’s overall strategy,
aiming to become a successful, professional, and attractive brewing company in its respective market.
In February 2024, the Carlsberg Group announced a refresh of the SAIL’27 strategy: Accelerate SAIL. SAIL’27 set
the strategic frame for Carlsberg. Accelerate SAIL builds on this foundation, setting higher growth ambitions by
increasing investments in and support for selected growth drivers within portfolio, geographies and capabilities,
improving supply chain efficiency, developing a growth culture and continuing the well-embedded cost focus.
Accelerate SAIL focuses on five strategic levers:
1. Product portfolio: boosting premium growth; accelerating the Beyond Beer category.
2. Geographic focuses: driving growth in emerging markets; promoting profitable growth in stronghold markets.
3. Excellent execution: stepping up capacity building; promoting digital transformation.
4. Winning culture: building a growth culture; dedicated to Together Towards ZERO and Beyond.
5. Funding the journey: enhancing supply chain efficiency.
(III) Business plan
√ Applicable □ Not applicable
As of the date of disclosure of this report, the Company maintains a cautiously optimistic outlook on the macro
economy and the beer industry in 2024. The Chinese beer industry is expected to benefit from a more favorable
environment as the macro environment gradually improves and policies for stabilizing growth are implemented in
2024. However, challenges such as rising costs, intensified competition, and slower-than-anticipated consumption
recovery still present uncertainties.
The Company expects a mid-to-high single-digit revenue growth in 2024. To this end, it will continue to nuture and
expand strategic projects within SAIL’ 27 and Accelerate SAIL, leveraging its “International Premium Brands +
Local Power Brands” portfolio, driving product premiumization, and promoting sales model innovation. The
Company will focus on the following areas:
1. Brands: Local brands will continue to build ties with specific localities, embed regional characteristics, and
refresh their branding. Additionally, their premiumzation will continue through diversified product portfolios. The
Chongqing brand will strengthen its association with Chongqing hot pot by partnering with HOU HOT POT to
cultivate the consumer mentality of “Eating Chongqing hotpot while drinking Chongqing beer,” and selectively
expand into markets outside Chongqing to strengthen its product portfolio. Dali Beer and Tianmu Lake Beer will
continue to premiumize and enhance market shares. Wind Flower Snow Moon will expand its successful low-
alcohol brews, consider new launches, and explore further in the field of fruity alcoholic drinks.
Wusu will enter a new development stage. In 2024, the Company will continue to invest in the Wusu brand to ensure
competitive media placements. We will also upgrade content marketing to strengthen the brand’s social visibility.
Building on the successful launch of Wusu White Beer in 2023, the Company will continue to unveil new products
that align with market demand. A new level of brand activities will be developed, fostering partnerships with food
30 / 238
ANNUAL REPORT 2023
festivals, food streets, and barbecue chains. With the Big City 2.0, the Company will actively expand its distribution
network, strengthen store management, and drive sales to ensure steady and orderly market expansion.
International brands: 1664 is set to cement its French heritage, enhancing product communication, expanding
portfolio offerings and elevating its premiumization. Also, it will continue to nurture scenarios that harmonize with
the French way of life, solidifying its position as a super-premium brand.
During the Chinese New Year of 2024, the Carlsberg brand launched a limited edition packaging, extending best
wishes for a year of great success and smooth endeavors. The brand will embark on a series of captivating marketing
activities to support its new brand positioning. With its sponsorship of the renowned Liverpool Football Club in the
second and third quarters of 2024, the brand will launch an extensive summer soccer marketing campaign, centering
around consumers. Additionally, it will enhance its party experience with its new “Curious Metaverse” performance
tour, providing consumers with an avant-garde and upscale brand experience.
Tuborg, focusing on “Tilt The World WHY NOT,” will carry out a series of innovative and captivating marketing
initiatives with its use of influential spokespersons. These initiatives aim to further bolster Tuborg’s young, stylish
and international brand image, instilling the brand’s WHY NOT attitude into the hearts of young consumers
nationwide. Meanwhile, Tuborg Pure Draft will continue its premiumization with “Tuborg’s Premium Brew: Pure
Draft for the Young”, delivering distinct brand experiences young individuals, and meeting the preferences and
aspirations of different consumer groups.
Somersby Cider is set to enhance its annual collaboration with its brand spokesperson and launch new limited
edition packaging endorsed by the spokesperson, aimed at captivating the interest of young consumers. Additionally,
it will focus on catering to the “emotional” needs and drinking occasions of urban white-collar professionals,
introducing innovative packaging options such as mini cans and slimming cans, as well as new flavors. These efforts
will continue to shape the brand’s youthful and high-end identity, providing consumers with an exceptional fruity
beer experience.
In 2024, the Company’s craft beer brands will dive deeper into the craft beer community through continued
marketing innovation, strengthened distribution, and vibrant consumer engagement, while expanding its reach to
the general beer enthusiasts. By investing in resources for tribal marketing, captivating consumer experiences, and
industry events, they aim to attract and convert more craft beer geeks and beer enthusiasts, enhance brand reputation
in the craft beer community and entice more people to try and purchase exceptional brews.
2. Sale: In 2024, the Company will remain committed to its established strategy, continuing to drive product
premiumization and consolidate the market share of its core beer segment. The Big City plan will go deep, which
will entail optimizing product portfolio and strengthened implementation. The Company will also focus on
developing differentiated products that align with the specific dynamics of different channels and regions.
Furthermore, it will continue to invest in developing tools and solutions that digitalize its sales channels
comprehensively.
The Company will continue its unwavering efforts in the on-trade channel, including restaurants and entertainment
venues. The Company is committed to establishing and strengthening partnerships with major national clients while
also enhancing brand portfolio to further its market share in the on-trade channel. In terms of the off-trade channel,
it will not only focus on promoting small business formats, but also actively embrace new channels such as variety
stores, retail discount stores, and liquor franchises. Additionally, its cooperation with O2O platforms will be
expanded to drive F&B-to-home and department store-to-home/store business.
31 / 238
ANNUAL REPORT 2023
The Company is dedicated to cultivating larger and stronger partnerships with distributors. We will continue to
upgrade the capabilities of our distributors by providing a wealth of rich and differentiated training to personnel at
all levels within distributors, and bolstering our Carlsberg E-learning platform specifically designed for distributors.
3. Supply Chain: The Company is committed to further enhancing its production capacity to ensure the timely
supply of products on proximity while improving the efficiency of logistics and transportation. Safety remains a top
priority, and we will continue to foster a ZERO Accidents culture. To achieve this, we will enhance the quality of
our three-level safety matrix retraining, emphasizing the importance of “focus on work and avoid distractions” in
our safety practices. In terms of taste assessment, we will continue the “100 People Plan” to reinforce the taste
assessment capabilities of our breweries. A pilot project for a zero carbon emission brewery will be launched,
utilizing energy storage, solar energy, and electric boiler heat pumps, etc., to achieve zero carbon emissions. The
Company will remain dedicated to promoting Carlsberg’s excellence process, which encompasses regional
management, performance management, and organizational management.
4. ESG: In 2024, we will continue to advance our ESG program, “Together Towards ZERO and Beyond”, working
diligently towards a series of ambitions, including achieving zero carbon emission of our full value chain by 2040,
and fulfilling our mission of ‘Brewing for a better today and tomorrow.’
5. Talent Development: In 2024, the Company will continue to implement a diverse range of talent development
programs, nurturing employees based on their values, professional competence, and performance. To facilitate
continuous growth of employees, we will upgrade our internal learning platform to provide employees with
enhanced resources and opportunities. Regarding talent acquisition, we will continue to promote various forms of
employer branding, strengthen recruitment channels in different markets, and prioritize the recruitment,
development, and cultivation of strategic talents. In terms of culture construction, we will continue to foster a culture
of responsibility and accountability guided by the principles of Diversity, Equality, and Inclusion (DE&I). Internally,
we strive to enhance organizational efficiency and promote a growth culture, empowering the implementation of
the Accelerate SAIL strategy.
(IV) Possible risks exposure
√ Applicable □ Not applicable
1. Rising costs: Operating costs, including raw materials, packaging materials, energy, and labor, are generally on
an upward trajectory. Additionally, premiumization will require continued investment in marketing expenses.
2. Intensified competition: Some national beer companies and emerging niche beer brands may seek to increase
their presence in the Company’s markets. Competition in the mid-to-premium segment will become increasingly
fierce.
(V) Others
□ Applicable √ Not applicable
VII. Explanation for the Company’s failure to disclose as per guidelines due to inapplicable guidelines or
state secrets, business secret or other special reasons
□ Applicable √ Not applicable
32 / 238
ANNUAL REPORT 2023
SECTION IV CORPORATE GOVERNANCE
I. Information on Corporate Governance
√ Applicable □ Not applicable
In strict accordance with the Company Law, the Securities Law, the Code of Corporate Governance for Listed
Companies, the Rules for Listing of Stocks on the Shanghai Stock Exchange and other applicable laws and
regulations, the Company has established and improved the corporate governance structure and internal
management and control systems, consistently conducted corporate governance initiatives and standardized its
operation to improve its corporate governance during the reporting period.
1. About shareholders and the General Meeting of Shareholders
During the reporting period, the Company convened one annual general meeting of shareholders, and two
extraordinary general meetings of shareholders. In strict accordance with the Articles of Association and the Rules
of Procedure for the General Meeting of Shareholders, the Company adjusted and standardized the organizational
conduct of the General Meeting of Shareholders and enhanced the efficiency of the meetings, to ensure that all
shareholders, minority shareholders in particular, could fully exercise their own rights.
2. About the directors and the Board
During the reporting period, the Company convened six meetings of the Board, six meetings of the Audit Committee,
one meeting of the Strategy and Development Committee, and two meetings of the Remuneration and Appraisal
Committee. The Board of Directors carried out necessary deliberation and decision-making procedures for
significant matters within the scope of its authority, and carefully implemented all resolutions passed at the General
Meeting of Shareholders in strict accordance with the Articles of Association and the Rules of Procedure for the
Board of Directors. Each special committee, with clear responsibilities, has effectively facilitated the standard
operation and informed decision-making of the Board of Directors. The election of the Board of Directors was
completed during the reporting period. The members of the Board of Directors possess extensive expertise in the
beer industry, along with knowledge in areas such as accounting, finance, and law. Their diverse backgrounds enable
them to offer professional and constructive advice for significant decisions of the Company. Moreover, they have
diligently fulfilled their responsibilities to safeguard the interests of the Company and all shareholders.
3. About the supervisors and the Board of Supervisors
During the reporting period, the Company convened four meetings of the Board of Supervisors. All supervisors, in
strict accordance with of the Articles of Association and the Rules of Procedure for the Board of Supervisors, actively
performed their supervisory duty on the Company’s financial position, related-party transactions, periodic reports,
and the performance of directors and senior management, safeguarding the interests of the Company and all
shareholders.
4. About relationship between the controlling shareholder and the listed company:
During the reporting period, the controlling shareholder of the Company did not engaged in non-operational fund
occupation from the listed company, and the listed company did not provide any external guarantees to the
controlling shareholder.
5. About stakeholders
The Company fully respected and safeguarded the legitimate rights and interests of the stakeholders, including
banks and other creditors, employees, consumers, and suppliers. It actively engaged in cooperative efforts, while
33 / 238
ANNUAL REPORT 2023
ensuring a balance among the stakeholders in the principle of mutual benefit, honesty and good faith, so as to jointly
promote the sustainable, sound and harmonious development of the Company.
6. About related party transactions
During the reporting period, the Company, in strict compliance with applicable laws, regulations, and regulatory
documents, improved its internal control system, standardized related-party transactions, and urged the controlling
shareholder and actual controller to honor their commitments. The Company followed necessary decision-making
procedures with related parties for related transactions. The independent directors of the Company issued unbiased
and impartial independent opinions. The equity and fairness of related party transactions were ensured, with no
damage to the interests of investors, minority investors in particular.
7. About information disclosure and transparency
During the reporting period, the Company actively strengthened communication with CSRC and the stock exchange,
and disclosed its periodic reports and temporary announcements in a true, accurate, complete and timely manner in
strict accordance with the requirements of CSRC and SSE, and the Management System for Information Disclosure,
ensuring that all shareholders, minority shareholders in particular, could equally and timely access the information
of the Company and assess risks. The Company received an A-rating for its information disclosure from the
Shanghai Stock Exchange for the year 2022/2023.
8. About management of investor relations
During the reporting period, the Company maintained an open communication channel with investors by addressing
investor hotline, hosting investor research visits, and attending investor conference calls, brokerage strategy
meetings, and reverse roadshows, so that investors can have accurate and timely access to the Company’s
information and can exercise their legal rights. The Company established a regular practice of holding performance
briefings. Throughout the year, four performance briefings were held regarding periodic reports, which greatly
enhanced the communication with investors. The Company’s 2022 Annual Results Presentation was recognized as
the “Best Practice of 2022 Annual Results Presentations of Listed Companies.”
9. About sustainable development
During the reporting period, the Company disclosed its first ESG report. Since the release of its ESG plan —
“Together Towards ZERO and Beyond” in 2022, the Company has consistently delivered remarkable results in
carbon reduction, water conservation, responsible drinking, and community engagement. These efforts have
contributed to a steady progression towards high-quality and sustainable development during the reporting period.
Notably, MSCI, a leading international rating agency upgraded the Company’s ESG rating to A grade.
10. About management of inside information
The Company implemented the registration and filing of insiders with inside information in strict accordance with
the requirements of CSRC and SSE, the Registration and Management of Insiders with Access to Inside Information
and the Rules for Internal Reporting of Key Information. In addition, the Company conducted relevant training to
effectively prevent insider trading and other securities violations.
Where there is any material difference between the requirements of the Company’s governance and laws,
administrative regulations and CSRC requirements on the governance of listed companies, the reasons for such
difference shall be provided.
□ Applicable √ Not applicable
34 / 238
ANNUAL REPORT 2023
II. Specific measures by the controlling shareholder and actual controller of the Company to ensure the
independence of the Company’s assets, personnel, finance, organization and business, as well as the
solutions, work progress and follow-up work plans adopted where the Company’s independence is
affected
□ Applicable √ Not applicable
Same or similar business conducted by controlling shareholder, actual controller and other entities under their
control as conducted by the Company, as well as the impact of intra-industry competition or major changes in intra-
industry competition on the Company, the measures adopted, the progress of the resolution and the follow-up plans
√ Applicable □ Not applicable
The Company completed the major asset restructuring at the end of 2020. All beer assets and businesses in Mainland
China (excluding the listed company and the subsidiaries controlled by the listed company) previously controlled
by Carlsberg was injected into the listed company. Carlsberg no longer retains control over any beer assets or
businesses (excluding the listed company and the subsidiaries controlled by the listed company) in Mainland Chinad,
nor does it directly or indirectly engage in businesses that compete with the listed company through entities under
its control.
During the restructuring, Carlsberg and Carlsberg Breweries had respectively made commitments to prevent intra-
industry competition: (I) They have reaffirmed their obligations to avoid inter-industry competition as the actual
controller and controlling shareholder of the listed company. (II) To comprehensively prevent potential future inter-
industry competition, Carlsberg and Carlsberg Breweries have voluntarily made additional arrangements concerning
the equity interests of non-controlling subsidiaries of Carlsberg that were not included in the restructuring and are
involved in beer assets and businesses in Mainland China. For details, please refer to “(I) Commitments of the
Company’s actual controller, shareholders, related parties, acquirer, the Company and other commitment made
during the reporting period or ongoing by the end of the reporting period” under Section VI.
During the reporting period, Carlsberg has fulfilled its commitment to avoid intra-industry competition and solicited
the acquisition intention of the list company before obtaining control of Beijing Capital Brewing Company Limited
and Jinbei Asia Pacific (Beijing) Catering Co., Ltd. After evaluation and review, the management and the board of
directors of the listed company agreed to acquire 100% equity of the two companies, believing that, with high
quality and development potential, the underlying assets could complement the business of the listed company and
were reasonably priced.
III. Summary of the General Meeting of Shareholders
Disclosure
Search index of
date
website designated
Date of of the
Meeting session for Meeting resolutions
meeting publication
publishing the
of the
resolutions
resolutions
2022 Annual 30 May www.sse.com.cn 31 May For details, please refer to the
General 2023 2023 Announcement on the Resolutions of
Meeting of the 2022 First Extraordinary General
Shareholders Meeting of Shareholders of
Chongqing Brewery Co., Ltd.
(announcement
35 / 238
ANNUAL REPORT 2023
number: 2023-011).
2023 First 17 August www.sse.com.cn 18 August For details, please refer to the
Extraordinary 2023 2023 Announcement on the Resolutions of
General Meeting of the 2023 First Extraordinary General
Shareholders Meeting of Shareholders of
Chongqing Brewery Co., Ltd.
(announcement
number: 2023-017).
2023 Second 5 www.sse.com.cn 6 December For details, please refer to the
Extraordinary December 2023 Announcement on the Resolutions of
General Meeting of 2023 the 2023 Second Extraordinary
Shareholders General Meeting of Shareholders of
Chongqing Brewery Co., Ltd.
(announcement
number: 2023-030).
Holders of preferred shares with restored voting rights request the convening of an Extraordinary General Meeting
of Shareholders
□ Applicable √ Not applicable
Description of the General Meeting of Shareholders
□ Applicable √ Not applicable
36 / 238
ANNUAL REPORT 2023
IV. Particulars of Directors, Supervisors and Senior Management
(I) Changes in shareholding of directors, supervisors and senior management in office and resigned during the reporting period and their remuneration
√ Applicable □ Not applicable
Unit: Share
Total pre-tax
remuneration
Number Number Receiving
Change obtained
of shares of remuneration
of from the
Termination held at shares Reason from
Commencement date of shares Company
Name Position Gender Age date of term the held at for related
term within during the
beginning the end change parties of the
the reporting
of the of the Company
year period (in
year year
RMB '0,000)
Joo Miguel Chairman of Male 52 December 2, 2022 May 25, 0 0 0 0 Yes
Ventura Rego the Board of 2025
Abecasis Directors
Gavin Stuart Director Male 62 March 14, 2022 May 25, 0 0 0 0 Yes
Brockett 2025
Andrew Douglas Director Male 45 July 13, 2022 May 25, 0 0 0 0 Yes
Emslie 2025
Lee Chee Kong Director, Male 52 Director: January 23, May 25, 0 0 0 940.91 No
President 2019 2025
President: January 1,
2021
Chin Wee Hua Director, Vice Male 52 Director: March 9, 2017 May 25, 0 0 0 438.82 No
President Vice President: January 2025
1, 2021
Lv Yandong Director Male 48 May 6, 2016 May 25, 0 0 0 349.28 No
2025
37 / 238
ANNUAL REPORT 2023
Yuan Yinghong Independent Female 58 May 25, 2022 May 25, 0 0 0 12 No
Director 2025
Sheng Xuejun Independent Male 54 May 25, 2022 May 25, 0 0 0 12 No
Director 2025
Zhu Qianyu Independent Female 48 May 25, 2022 May 25, 0 0 0 12 No
Director 2025
Kuang Qi Chairman of Male 46 May 18, 2021 May 25, 0 0 0 186.56 No
the Board of 2025
Supervisors
Huang Minlin Supervisor Male 44 May 4, 2018 May 25, 0 0 0 219.61 No
2025
Xie Yi Employee Male 44 November 30, 2023 May 25, 0 100 100 154.98 No
Representative 2025
Supervisor
Deng Wei Board Male 51 August 22, 2006 May 25, 0 0 0 154.10 No
Secretary 2025
Chen Changli Employee Male 60 May 6, 2016 November 1,171 1171 0 183.29 No
Representative 30, 2023
Supervisor
(Resigned)
Total / / / / / 1,171 1,271 100 / 2,663.55 /
Name Major work experiences
Joo Miguel Ventura 52 years old. Portuguese. Joo obtained Business Management Degree from Universidade Católica Portuguesa in 1995. He has been with Carlsberg since 2011 as CCO
Rego Abecasis and later CEO of Super Bock in Portugal and then in 2016 as VP for Challenger Markets in the Western Europe region. In 2017, he became Managing Director of French
business Kronenbourg, and in 2019, he became Group Chief Commercial Officer and a member of Executive Committee. Before joining Carlsberg, Joo held a range of
sales and marketing roles at Unilever. He has been serving as EVP Asia in Carlsberg Group since September 2022. He is currently the Chairman of the Company.
Gavin Stuart Brockett 62 years old. South African. He obtained the Bachelor’s Degree in Commerce and Bachelor’s Degree in Accounting from the University of the Witwatersrand (South
Africa) respectively in 1983 and 1985 and qualified as a chartered accountant in 1988. He joined SABMiller in 1991 and successively held several senior financial leadership
positions in South Africa and Europe, including the chief financial officer in Plzensky Pradroj (Czech Republic) and Birra Peroni (Italy). From 2010 to 2012, he held the
VP Finance Asia role in Carlsberg, a period in the wine industry as the chief financial officer of Accolade Wines followed, and then a return to Carlsberg as the Chief
Operating Officer of Carlsberg China in 2014. Most recently for Levi Strauss & Co he was the CFO of the Asia region from 2016 to 2017 and thereafter he served as the
38 / 238
ANNUAL REPORT 2023
Senior Vice President and Global Controller for Levi Strauss & Co. in the United States until 2021. In January 2022, he rejoined Carlsberg to act as the VP Finance of Asia.
He currently serves as a director of the Company.
Andrew Douglas Emslie 45 years old. British. He obtained a BA (Hons) degree in Accounting & Law from the University of Manchester, England in 2001. He completed the Legal Practice Course
from the College of Law in Chester, England in 2002 and qualified as a Solicitor in England and Wales in 2004. Andrew has since worked for a number of leading
international law firms in the UK, Australia and Asia with a focus on cross-border mergers & acquisitions and joint ventures. During his career, Andrew has held senior
leadership positions as in-house counsel, based in Asia, with listed multinational companies, including Ensco, Maersk and Olam. Before Carlsberg, Andrew was Vice
President of Legal at Olam International from June 2016 to July 2019. In August 2019, he joined Carlsberg and currently serves as Vice President and Asia Head of Legal
& Compliance. He currently serves as a director of the Company.
Lee Chee Kong 52 years old. Malaysian. He graduated from University Utara Malaysia in Marketing. Before joining Carlsberg, he served as the President of Asia Region and Managing
Director of China at HILDING ANDERS (SLUMBERLAND). Before that, he also worked as Managing Director of HEINZ China, and served managing roles in China
and Asia Pacific Division at COLGATE-PALMOLIVE for a long time. Currently he serves as a director of the Company and President of the Company/Carlsberg China.
Chin Wee Hua 52 years old. Malaysian. He graduated from the University of Western Australia with Bachelor of Commerce degree, majoring in Accounting and
Finance and also obtained the MBA degree from University of Leicester UK. He is a registered Australian Certified Public Accountant. From
2001 to 2008, he served as Finance Director in Alstom Asia Pacific (Malaysia) Sdn Bhd. From 2009 to 2014, he held position as Finance Director of Wuhan
Boiler Company Limited. From 2015 to 2016, he was Asia Finance Director in GE Grid Solutions Pte Ltd. Currently he serves as a director of the Company and VP Finance
of the Company / Carlsberg China.
Lv Yandong 48 years old. Chinese. He obtained a master’s degree of Mechanical and Electronic Engineering from Harbin Institute of Technology. He served as the Director of Supply
Chain in Carlsberg Huizhou and the Deputy General Manager of CBC successively. Before joining Carlsberg, he had engaged in technical and management in Harbin
Electronic and Machinery Co. Ltd., Guangzhou P & G and Pepsi successively. He served as the Director of Supply Chain in Carlsberg Huizhou and the Deputy General
Manager of CBC successively. He is currently serving as the VP Supply Chain of Carlsberg China. Now he is VP Supply Chain of Carlsberg China and a director of the
Company.
Yuan Yinghong 58 years old. Chinese. She obtained a Bachelor’s degree in Management, majoring in Economics and Management, South China Normal University. She is a Certified
Public Accountant and Certified Internal Auditor, and holds the titles of Accountant and Auditor. She has over 30 years of experience in the field of accounting and once
served as the deputy head of the Culture and Health Department Section and the head of the Industry Section of the bureau directly under the Guangdong Audit Office.
Currently, she is the deputy secretary-general of the Guangzhou Institute of Certified Public Accountants and the secretary of the Industry Discipline Inspection Commission
within the Institute. Additionally, she is recognized as an expert in the evaluation expert pool of the State-owned Assets Supervision and Administration Commission of
Guangdong Provincial Government. Currently, she serves as an independent director of the Company.
Sheng Xuejun 54 years old. Chinese. He holds the position of Professor and Doctoral Supervisor at the Southwest University of Political Science and Law, and serves as a legislative
consulting expert to the Standing Committee of the Chongqing Municipal People’s Congress and the Municipal Government, and a consulting expert to the Shenzhen
Intermediate People’s Court and Chongqing No.5 Intermediate People’s Court. He previously served as the Vice Chairman of the Degree Committee at Southwest University
of Political Science and Law, as well as the Dean of the School of Economics and Law. He also worked as the Vice President and Judge of the Second Civil Trial Division
at the Supreme People’s Court. He was awarded the Second Prize for Excellent Achievements in Chinese Law and the Second Prize for National Teaching
Achievements.Currently, he serves an independent director of the Company.
Zhu Qianyu 48 years old. Chinese. She holds a Ph.D. from the School of Economics, Huazhong University of Science and Technology, and is a Postdoctoral Fellow from the Department
of Finance at Guanghua School of Management of Peking University. She currently serves as an associate professor and master’s supervisor at the School of Agriculture
and Rural Development of Renmin University of China. Additionally, she is a researcher at the Rural Economic and Finance Institute, the National Academy of Development
and Strategy, the Dual Carbon Research Institute, and the China Rural Revitalization Research Institute, all affiliated with Renmin University of China. She also acts as an
expert for project training and evaluation for the World Bank and the National Rural Revitalization Administration, as well as a project assessment expert for the National
Natural Science Foundation of China. Currently, she is an independent director of the Company.
Kuang Qi 46 years old. Chinese. He graduated from Jinan University in 2000 with double bachelor’s degree in Economics and Laws and obtained the Chinese legal profession
qualification certificate. His previous work experiences include the Deputy Director of legal affairs of Amway (China) Daily-Use Commodity Co., Ltd. and legal consultant
of Heinz (China) Investment Company Co., Ltd. Before joining Carlsberg, he acted as the senior legal consultant of Mead Johnson Nutrition (China) Co., Ltd. He is the
Senior Legal Director and Chairman of the Board of Supervisors of the Company now.
Huang Minlin 44 years old. Chinese. He graduated from The Hong Kong University of Science and Technology with a Bachelor’s Degree in Accounting and is a member of the Hong
39 / 238
ANNUAL REPORT 2023
Kong Institute of Certified Public Accountants. He worked in KPMG Hong Kong as the Audit Manager from 2004 to 2010. He joined Carlsberg Asia in 2010 and
successively served as the Regional Supply Chain Financial Director and Regional Financial Director. He is currently the Senior Finance Director and Supervisor of the
Company.
Xie Yi 44 years old. Chinese. He holds a Master’s degree in International Development from the University of Edinburgh, UK. He previously served as the Director of the News
Office at Chongqing Daily News Group and the Director of the Current Affairs News Department at Chongqing Morning Post. Additionally, he worked at the former
Foreign Trade and Economy Commission of Chongqing Municipality and the former General Staff Department of the People’s Liberation Army. He joined the Company
in 2014 and has since held positions of Senior Manager, Deputy Director, and Director of Corporate Affairs. Currently, he serves as Senior Director of Corporate Affairs
and Employee Representative Supervisor of the Company.
Deng Wei 51 years old. Chinese. He holds a MBA degree from the School of Business Administration at Chongqing University. From 1997 to 2000, he worked in the Life Insurance
Marketing Department at the Chongqing Branch of Ping An, where he was involved in sales and business team management. In October 2000, he joined Chongqing
Brewery (Group) Co., Ltd., serving in the Asset Management Department. There he was responsible for mergers and acquisitions, as well as the integration of merged and
acquired companies alongside the team. Since 2006, he has been serving as the Board Secretary of the Company.
Chen Changli (Resigned) 60 years old. Chinese. He previously served as the packaging workshop director and deputy general manager of the Company and the deputy general manager of Chongqing
Brewery Group Company, the Party secretary of the Company, the Chairman of the Trade Union and the employee representative supervisor of the Company. He resigned
due to retirement in December 2023.
Other remarks
□ Applicable √ Not applicable
40 / 238
ANNUAL REPORT 2023
(II) Positions of directors, supervisors and senior management in office and resigned during the reporting
period
1. Positions in shareholder’s entity
√ Applicable □ Not applicable
Name of Termination
Position in Commencement
person in Name of shareholder’s entity date of
Shareholder’s entity date of term
office term
Joo Miguel Carlsberg Brewery Malaysia Berhad Director 2022-10
Ventura Rego
Abecasis
Joo Miguel Lao Brewery Co., Ltd. Director 2022-10 2025-10
Ventura Rego
Abecasis
Joo Miguel Cambrew Ltd. Chairman 2024-03
Ventura Rego
Abecasis
Joo Miguel Carlsberg Brewery Hong Kong Director 2022-11
Ventura Rego Limited
Abecasis
Joo Miguel Caretech Ltd. Director 2022-11
Ventura Rego
Abecasis
Joo Miguel Carlsberg Vietnam Breweries Ltd. Chairman 2023-01 2027-04
Ventura Rego
Abecasis
Joo Miguel Carlsberg Supply Company Asia Director 2023-01
Ventura Rego Limited
Abecasis
Joo Miguel Carlsberg Asia Pte. Ltd. Director 2023-09
Ventura Rego
Abecasis
Gavin Stuart Myanmar Carlsberg Co., Ltd. Director 2022-01
Brockett
Gavin Stuart Carlsberg Brewery Malaysia Berhad Director 2022-02
Brockett
Gavin Stuart Lao Brewery Co., Ltd. Director 2022-04
Brockett
Gavin Stuart Carlsberg Brewery Hong Kong Director 2022-01
Brockett Limited
Gavin Stuart Caretech Ltd. Director 2022-01
Brockett
Gavin Stuart HK Yau Ltd. Director 2022-01
Brockett
Gavin Stuart Cambrew Ltd. Director 2023-04
Brockett
41 / 238
ANNUAL REPORT 2023
Gavin Stuart Angkor Beverage Company Chairman 2022-12
Brockett
Gavin Stuart Cambrew 1 Ltd. Director 2023-09
Brockett
Gavin Stuart Cambrew Property Limited Director 2023-09
Brockett
Gavin Stuart Cambrew Success Company Limited Director 2023-09
Brockett
Andrew CB Distribution Co., Ltd. Director 2020-07
Douglas
Emslie
Andrew Carlsberg Indochina Ltd. Director 2020-07
Douglas
Emslie
Andrew Myanmar Carlsberg Co., Ltd. Director 2020-11
Douglas
Emslie
Andrew Paduak Holding Pte. Ltd. Director 2020-12
Douglas
Emslie
Andrew Carlsberg Asia Pte. Ltd. Director 2020-12
Douglas
Emslie
Andrew Lao Brewery Co., Ltd. Director 2021-03
Douglas
Emslie
Andrew Carlsberg Vietnam Breweries Director 2021-04
Douglas Limited
Emslie
Andrew Cambrew Ltd. Director 2022-01
Douglas
Emslie
Andrew Angkor Beverage Company Director 2023-06
Douglas
Emslie
Lee Chee Lanzhou Huanghe Jianiang Brewery Vice Chairman 2019-07
Kong Co. Ltd.
Lee Chee Jiuquan West Brewery Co., Ltd. Vice Chairman 2019-07
Kong
Lee Chee Qinghai Huanghe Jianiang Brewery Vice Chairman 2019-07
Kong Co., Ltd.
Lee Chee Tianshui Huanghe Jianiang Brewery Vice Chairman 2019-07
Kong Co., Ltd.
Lee Chee Capital Brewing Company Limited Director 2019-02
Kong
42 / 238
ANNUAL REPORT 2023
Lee Chee G-Shell Asia Pacific Limited Director 2019-02
Kong
Lee Chee Jing-A Brewing Company Limited Director 2019-02
Kong
Chin Wee Lanzhou Huanghe Jianiang Brewery Director 2017-06
Hua Co. Ltd.
Chin Wee Jiuquan West Brewery Co., Ltd. Director 2017-03
Hua
Chin Wee Qinghai Huanghe Jianiang Brewery Director 2017-06
Hua Co., Ltd.
Chin Wee Tianshui Huanghe Jianiang Brewery Director 2017-04
Hua Co., Ltd.
Lv Yandong Guangzhou Carlsberg Investment Chairman 2020-12
Co., Ltd.
Kuang Qi Guangzhou Carlsberg Investment Supervisor 2021-12
Co., Ltd.
2. Positions in other entities
√ Applicable □ Not applicable
Name of Termination
Position in other Commencement
person in Name of other entities date of
entities date of term
office term
Yuan Guangzhou Institute of Certified Deputy Secretary 2001-08
Yinghong Public Accountants General,
Secretary of
Industry Discipline
Inspection
Commission
Yuan Guangzhu Holike Creative Home Independent 2022-01 2026-08
Yinghong Co., Ltd. Director
Yuan Guangzhou Hengyun Enterprises Independent 2021-01 2024-03
Yinghong Holding Ltd. Director
Yuan Guangdong Winsun Pharm Co., Independent 2020-04 2023-12
Yinghong Ltd., Director
Yuan Huizhou Jinghao Medical Independent 2020-12 2023-12
Yinghong Technology Co., Ltd. Director
Sheng Xuejun Southwest University of Political Professor, Doctoral 2010-01
Science & Law Supervisor
Sheng Xuejun Chongqing Iron & Steel Company Independent 2021-08 2024-06
Limited Director
Sheng Xuejun Chongqing Zaisheng Technology Independent 2023-05 2026-05
Co., Ltd. Director
Sheng Xuejun Guilin Tourism Corporation Independent 2023-03
Limited Director
Sheng Xuejun Chongqing Department Store Co., Independent 2020-10
43 / 238
ANNUAL REPORT 2023
Ltd. Director
Zhu Qianyu Renmin University of China Associate professor 2010-03
and master
supervisor;
Researcher of Rural
Economic and
Finance Institute;
Researcher of
National Academy
of Development
and Strategy
Zhu Qianyu CSG Holding Co., Ltd. Independent 2019-04
Director
Zhu Qianyu BANK OF GUIYANG CO., LTD. Independent 2024-02 2024-05
Director
Zhu Qianyu KINGFA SCI. & TECH. CO., Independent 2021-01 2023-12
LTD. Director
(III) Remuneration of directors, supervisors and senior management
√ Applicable □ Not applicable
Decision-making procedures for the During the reporting period, the allowances of independent directors
remuneration of directors, supervisors shall be implemented in accordance with the Independent Director
and senior management System of Chongqing Brewery Co., Ltd. approved by the General
Meeting of Shareholders; Directors’ allowances shall be subject to the
approval by the general meeting of shareholders after the
Remuneration and Appraisal Committee of the Board of Directors
proposes a plan and submits it to the Board of Directors for review and
approval, and supervisors’ allowances shall be subject to the approval
by the general meeting of shareholders after review and approval by
the Board of Supervisors of the Company. The remuneration of senior
executives shall be implemented in accordance with the
Administrative Measures for the Remuneration and Performance
Appraisal of Senior Executives proposed by the Remuneration and
Appraisal Committee, subject to review and approval by the
Company’s Board of Directors.
Whether directors recuse themselves Yes
from discussions and decisions
regarding their own remuneration
matters
Particulars of recommendations issued The allowances of independent directors shall be subject to the
by the Remuneration and Evaluation approval by the General Meeting of Shareholders. Except for
Committee or the Specialized Meeting independent directors, the other directors and supervisors are not paid
of Independent Directors on matters for their positions as directors and supervisors in the Company. The
relating to the remuneration of directors, remuneration of senior executives shall be determined based on a plan
supervisors and senior management proposed by the Remuneration and Appraisal Committee, subject to
review and approval by the Company’s Board of Directors.
44 / 238
ANNUAL REPORT 2023
Basis for the determination of During the reporting period, the allowances for independent directors
remuneration of directors, supervisors shall be implemented in accordance with the provisions of the
and senior management Independent Director System of Chongqing Brewery Co., Ltd.
deliberated and approved by the General Meeting of Shareholders;
Except for independent directors, the other directors and supervisors
are not paid for their positions as directors and supervisors in the
Company. The remuneration of senior executives is based on the
Administrative Measures for the Remuneration and Performance
Appraisal of Senior Executives approved by the Board of Directors, as
well as the operating performance of the current year confirmed in the
Audit Report issued by the accounting firm, which shall be assessed
and confirmed by the Remuneration and Appraisal Committee and the
Board of Directors.
Actual remuneration paid to directors, During the reporting period, the allowances for independent directors
supervisors and senior management shall be paid by the Company monthly; the basic remuneration of
senior executives shall be paid by the Company monthly. The
performance remuneration shall be paid by the Company after the
appraisal by the Remuneration and Appraisal Committee and the
Board of Directors.
Total actual remuneration received by RMB 26.6355 million
all directors, supervisors and senior
management as at the end of the
reporting period
(IV) Changes of directors, supervisors and senior management of the Company
√ Applicable □ Not applicable
Name Position Change Reason for change
Chen Changli Employee Resigned Retirement
Representative
Supervisor
Xie Yi Employee Election By-election
Representative
Supervisor
(V) Explanation on penalties by securities regulators in the past three years
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
V. Information about the Board Meetings Convened during the Reporting Period
Meeting session Date of Meeting resolutions
meeting
Eighth Meeting of the Tenth 26 April 2023 For details, please refer to “L2023-005” Announcement
of the Board of Directors disclosed by the Company on the website of Shanghai Stock
Exchange (www.sse.com.cn) on 28 April 2023.
45 / 238
ANNUAL REPORT 2023
Nine Meeting of the Tenth 31 July 2023 For details, please refer to “L2023-013” Announcement
of the Board of Directors disclosed by the Company on the website of Shanghai Stock
Exchange (www.sse.com.cn) on 1 August 2023.
Tenth Meeting of the Tenth 16 August 2023 For details, please refer to “L2023-016” Announcement
of the Board of Directors disclosed by the Company on the website of Shanghai Stock
Exchange (www.sse.com.cn) on 17 August 2023.
Eleventh Meeting of the 26 September For details, please refer to “L2023-018” Announcement
Tenth of the Board of 2023 disclosed by the Company on the website of Shanghai Stock
Directors Exchange (www.sse.com.cn) on 28 September 2023.
Twelfth Meeting of the 30 October For details, please refer to “L2023-021” Announcement
Tenth of the Board of 2023 disclosed by the Company on the website of Shanghai Stock
Directors Exchange (www.sse.com.cn) on 31 October 2023.
Thirteenth Meeting of the 14 November For details, please refer to “L2023-026” Announcement
Tenth of the Board of 2023 disclosed by the Company on the website of Shanghai Stock
Directors Exchange (www.sse.com.cn) on 15 November 2023.
VI. Performance of Duties by Directors
(I) Attendance of Board meetings and General Meetings of Shareholders by directors
Attendance
at
Information on attendance at the Board Meeting General
Meetings of
Shareholders
Number
Name of Independent Failed to
of Board Number of
director director attend
meetings attendance
Attended in
required Attended via Attended by at
in Absence person
to be communication representative General
person at two
attended Meetings of
meetings
during Shareholders
in a row
the year
Joo Miguel 6 6 6 0 0 3
Ventura Rego No No
Abecasis
Gavin Stuart 6 6 6 0 0 3
No No
Brockett
Andrew 6 6 6 0 0 3
No No
Douglas Emslie
Lee Chee Kong No 6 6 1 0 0 No 3
Chin Wee Hua No 6 6 1 0 0 No 3
Lv Yandong No 6 6 3 0 0 No 3
Yuan Yinghong Yes 6 6 2 0 0 No 3
Sheng Xuejun Yes 6 6 4 0 0 No 3
Zhu Qianyu Yes 6 6 3 0 0 No 3
Explanation on failure to attend in person at two Board meetings in a row
□ Applicable √ Not applicable
Number of Board meetings convened during the year 6
Including: Number of meetings convened on site 0
46 / 238
ANNUAL REPORT 2023
Number of meetings convened via communication 1
Number of meetings convened on site with 5
communication
(II) Objections raised by directors on relevant matters of the Company
□ Applicable √ Not applicable
(III) Others
□ Applicable √ Not applicable
VII. Special Committees under the Board of Directors
√ Applicable □ Not applicable
(1). Members of special committees under the Board of Directors
Type of special committee Name of members
Audit Committee Yuan Yinghong (Chairman of the Committee), Sheng Xuejun, Zhu Qianyu,
Gavin Stuart Brockett, Chin Wee Hua [Note]
Nomination Committee Sheng Xuejun (Chairman of the Committee), Zhu Qianyu, Andrew Douglas
Emslie
Remuneration and Appraisal Zhu Qianyu (Chairman of the Committee), Yuan Yinghong, Joo Miguel
Committee Ventura Rego Abecasis
Strategy and Development Lee Chee Kong (Chairman of the Committee), Chin Wee Hua, Lv Yandong,
Committee Yuan Yinghong, Joo Miguel Ventura Rego Abecasis
Note: In compliance with the Measures for the Administration of Independent Directors of Listed Companies
and other applicable guidelines, on 19 January 2024, the Company’s Board of Directors replaced Chin Wee Hua,
Director and Vice President, with Lv Yandong, Director, in the Audit Committee.
(2). Six meetings convened by the Audit Committee during the reporting period
Date of Important opinions and
Other performance of duties
meeting Content of meeting suggestions
2023-03- PAN-CHINA Certified Public The Audit Committee
02 Accountants LLP reported and demonstrated a detailed
communicated major issues of understanding and effective
concern and findings in the pre- communication regarding
audit phase of 2022 financial audit key audit matters, other
and internal control audit at the significant considerations,
first meeting of the Audit and internal control audits.
Committee of the Tenth the Board They paid special attention
of Directors of the Company in to the fulfillment of
2023. performance commitments
for 2022.
2023-04- Summary Reports on Financial The Audit Committee agreed The Audit Committee
26 Statements Audit and Internal to submit the proposals to the listened to the Update on
Control Audit Performed by Pan- Board of Directors for CBC Daily Related Party
China Public Accountants (Special deliberation. Transactions for FY 2022 &
General Partnership) for the Year 2023 Q1, 2022 Internal Audit
47 / 238
ANNUAL REPORT 2023
2022, Report and 2023 Audit Plan,
CBC 2022 Annual Report and and Risk Management
Executive Summary, Report.
CBC 2022 Final Account Report,
Proposal on the Dividend
Distribution Plan for the Year
2022,
Evaluation Report on the
Company’s Internal Control for
the Year of 2022,
Annual Performance Report of the
Audit Committee of the 10th Board
of Directors of the Company for the
Year of 2022,
CBC 2023 Q1 Report,
Proposal on the Engagement of
Pan-China Certified Public
Accountants (Special General
Partnership) as the Auditor of the
Company’s Financial Report and
Internal Control for the Year of
2023,
and Proposal on the Continuation
of Aluminum Hedging Business
were approved at the 2nd meeting
of the Audit Committee of the
Tenth Board of Directors of the
Company in 2023.
2023-08- CBC 2023H1 Report and The Audit Committee agreed The Audit Committee
16 Executive Summary was approved to submit the proposal to the listened to the Report on the
at the 3rd meeting of the Audit Board of Directors for Implementation of
Committee of the Tenth Board of deliberation. Aluminium Hedging, Update
Directors of the Company in 2023. on CBC Daily Related Party
Transactions for 2023 Q3,
CBC Internal Audit
Summary Report fro 2023
Q3, and CBC Risk
Management Report.
2023-09- Proposal on the Related Party The Audit Committee agreed
26 Transaction Regarding the to submit the proposal to the
Acquisition of 100% Equity in Board of Directors for
Beijing Capital Brewing Company deliberation.
Limited and Jinbei Asia Pacific
(Beijing) Catering Co., Ltd. was
approved at the 4th meeting of the
Audit Committee of the Tenth
Board of Directors of the Company
48 / 238
ANNUAL REPORT 2023
in 2023.
2023-10- The CBC 2023 Q3 Report was The Audit Committee agreed The Audit Committee
30 approved at the 5th meeting of the to submit the proposal to the listened to the Report on the
Audit Committee of the Tenth Board of Directors for Implementation of
Board of Directors of the Company deliberation. Aluminium Hedging,
in 2023. Update on CBC Daily
Related Party Transactions
for 2023 Q3, CBC Internal
Audit Summary Report fro
2023 Q3, and CBC Risk
Management Report.
2023-11- The Proposal on the 2023 Interim The Audit Committee agreed
14 Dividend Distribution Plan of to submit the proposals to the
Carlsberg Chongqing Brewery Board of Directors for
Company Limited, Proposal on the deliberation.
Estimation of Daily Related Party
Transactions in 2024, and
Proposal on the Investment of
Short-Term Bank Financial
Products in 2024 were approved at
the 6th meeting of the Audit
Committee of the Tenth Board of
Directors of the Company in 2023.
(3). One meeting convened by the Strategy and Development Committee during the reporting period
Date of Important opinions and
Other performance of duties
meeting Content of meeting suggestions
2023-04- The Proposal on the CBC The Strategy and
26 Financial Budget for the Year 2023 Development Committee
was approved at the 1st meeting of agreed on this proposal.
the Strategy and Development
Committee of the 10th Board of
Directors of the Company in 2023.
(4). Two meetings convened by the Remuneration and Appraisal Committee during the reporting period
Date of Important opinions and
Other performance of duties
meeting Content of meeting suggestions
2023-04- The Proposal on the Annual The Remuneration and
26 Evaluation of the Performance and Appraisal Committee
Remuneration of the Senior concluded that the 2022
Management for the Year of 2022 remuneration assessment of
was approved at the 1st meeting of the Company’s senior
the Remuneration and Appraisal executives aligned with
49 / 238
ANNUAL REPORT 2023
Committee of the 10th Board of that the Remuneration and
Directors of the Company in 2023. Performance Appraisal Plan
for Senior Management, and
agreed to submit the
proposal to the Board of
Directors for deliberation.
2023-08- The Proposal on the Amendment of The Remuneration and
16 Remuneration and Performance Appraisal Committee
Appraisal Plan for Senior agreed to submit the
Management was approved at the proposal to the Board of
2nd meeting of the Remuneration Directors for deliberation.
and Appraisal Committee of the
10th Board of Directors of the
Company in 2023.
(5). Particulars of objections
□ Applicable √ Not applicable
VIII. Explanation on the Risks of the Company Found by the Board of Supervisors
□ Applicable √ Not applicable
The Board of Supervisors had no objections to the matters subject to supervision during the reporting period.
IX. Employees of the Parent Company and Major Subsidiaries as at the End of the Reporting Period
(I) Employees
Number of existing employees of the parent company 29
Number of existing employees of major subsidiaries 6,840
Total number of existing employees 6,869
Number of resigned and retired employees whose 4,285
expenses shall be undertaken by the parent company
and major subsidiaries
Specialization composition
Category of specialization Headcount of specialization
Production personnel 1,900
Sales personnel 3,022
Technicians 1,422
Finance personnel 250
Administrative personnel 75
Others 200
Total 6,869
Educational background
Educational level Headcount
Postgraduates 201
Undergraduates 1,695
Junior college graduates 2,286
High school graduates and below 2,687
50 / 238
ANNUAL REPORT 2023
Total 6,869
(II) Remuneration policy
√ Applicable □ Not applicable
During the reporting period, the Company’s employee remuneration policy shall determined the salary growth ratio
of all employees based on the Company’s economic benefits and business performance as well as the completion
of the annual beer production, sales and profits, and considering the salary situation in the market. Management
personnel of middle level and above shall be subject to the year-end incentive assessment linked to the Company’s
performance, and production workshops shall be subject to the KPI assessment, which is combined with product
quality, various consumption indicators and production efficiency. The salary of employees of the Company is
composed of fixed salary, performance appraisal salary and year-end bonus.
(III) Training programs
√ Applicable □ Not applicable
The company maintains a robust employee training mechanism, developing and implementing training programs
aligned with the requirements of business growth annually .
During the reporting period, the Company organized a diverse range of cultural and leadership programs aimed at
enhancing the capabilities of key talents and team managers. These programs included “Workshop on Responsibility
and Accountability in a Diverse, Equal and Inclusive Culture,” “Workshop on Transformation and Winning Projects,”
“The New Generation Management,” “University Counseling,” “SL II”, “Management Execution Enhancement
(DDI copyrighted course),” and “Conflict Management.” For sales directors and managers, a targeted action
learning program called the “Tiger Project” was implemented. For supply chain managers, the “CE Basic Module
Optimization - Organizational Management” program was carried out. Young talents were offered three projects:
“General Management Trainee,” “Supply Chain Management Trainee,” and “Sales Management Talents,” which
aimed at building and developing talent reserves for the Company. Specifically, courses including “7 Habits of
Highly Effective People,” “Time Management,” and “Role Transformation of Career Professionals” were carried
out. To foster the capacity development of all staff members, the Company carried out various courses and shared
sessions such as “Financial Training for Non-Financial Managers” and “Beer Tasting and Art”, which facilitated the
rapid development of the Company.
In terms of sales, the sales team has focused on the Company’s strategy and business needs, building an
empowerment platform to enhance the business capabilities of the internal sales team and core distributors.
1. To consolidate the core markets, several programs were undertaken, including school-enterprise cooperation
training courses, sand table exercises, and market strategy workshops.
2. Live-streaming sessions were conducted to introduce new products and share successful marketing experiences,
with the aim of promoting product premiumization.
3. Key channel empowerment was a focus, leading to the implementation of the MOFT channel training series and
guidelines for O2O business operations.
4. To strengthen beer knowledge and business fundamentals, training materials were upgraded, and a group of
internal lecturers were selected and trained.
5. Distributor-focused training programs, such as the President Class and Manager Camp, were provided.
Additionally, online learning platforms and targeted live courses were made available.
In terms of the supply chain, the Company continued to deepen its commitment to lean production. Efforts were
made to enhance the awareness of systematization and standardization in factory construction. Training programs
such as “Carlsberg Excellence Foundation Workshop,” “Root Cause Analysis and Problem Solving,” “Sensory
51 / 238
ANNUAL REPORT 2023
Tasting Training,” and “EHS Training” were conducted, raising the standardization awareness of frontline workers
while enhancing overall work efficiency.
(IV) Labor outsourcing
√ Applicable □ Not applicable
Total working hours of outsourced labor 3,048,773 hours
Total remuneration paid for outsourced labor RMB 143,500,900
X. Proposal on Profit Distribution or Conversion of Capital Reserve into Capital Stock
(I) Formulation, implementation or adjustment of cash dividend policy
√ Applicable □ Not applicable
In accordance with the Company Law of the People’s Republic of China, the Accounting Standards for Enterprises
and the Articles of Association, the Company proposes the following distribution plan, considering the requirements
of production and operation development as well as the shareholders’ interests:
The Company intends to distribute the cash dividend of 2.80 yuan per share (tax inclusive) to all shareholders on
the basis of the total share capital of 483,971,198 shares as at December 31, 2023, totaling 1,355,119,354.40 yuan
(tax inclusive). Cash dividend intended for distribution is from the operating profits generated by the Company in
its production and operation, and such distribution is general dividend distribution.
After the completion of the profit distribution plan of 2023, the remaining undistributed profit in the consolidated
financial statements of the Company is 59,187,375.37 yuan, and the remaining undistributed profit in the parent
company financial statements is 351,378,262.35 yuan. No capital reserve is converted to increase share capital this
time.
(II) Special description on cash dividend policy
√ Applicable □ Not applicable
Whether it complies with the provisions of the Articles of √Yes □ No
Association or the requirements stated in the resolutions approved at
the General Meeting of Shareholders
Whether the standards and proportion of dividend distribution are √Yes □ No
clear
Whether the relevant decision-making procedures and mechanisms √Yes □ No
are complete
Whether the independent directors perform their duties and play their √Yes □ No
due role
Whether minority shareholders have the opportunity to fully express √Yes □ No
their opinions and appeals, and whether their legitimate interests
have been adequately protected
(III) Where the parent company has a positive profit available for distribution to shareholders with no cash
profit distribution plan proposed during the reporting period, the Company shall disclose the reasons
therefor and the purpose and utilization plan of such undistributed profit in detail
□ Applicable √ Not applicable
(IV) Plans on profit distribution or conversion of capital reserve to increase share capital in the current
52 / 238
ANNUAL REPORT 2023
reporting period
√ Applicable □ Not applicable
Monetary unit: RMB
Bonus share distributed for every 10 shares (share)
Dividend distributed for every 10 shares (yuan) (tax
28.00
inclusive)
Share capital increased by converting capital reserve for
every 10 shares (share)
Cash dividend distributed (tax inclusive) 1,355,119,354.40
Net profit attributable to shareholders of ordinary shares in
the consolidated financial statements for the period of 1,336,597,321.13
dividend distribution
Proportion to net profit attributable to shareholders of
ordinary shares in the consolidated financial statements 101.39
(%)
Amount of shares repurchased in cash included in cash
dividend
Total cash dividend distributed (tax inclusive) 1,355,119,354.40
Proportion of total cash dividend distributed to net profit
attributable to shareholders of ordinary shares in the 101.39
consolidated financial statements (%)
XI. The Company’s Equity Incentive Scheme, Employee Stock Ownership Plan or Other Employee
Incentive Measures and Their Impact
(I) Relevant incentive matters disclosed in provisional announcements without progress or change in
subsequent implementation
□ Applicable √ Not applicable
(II) Incentives not disclosed in provisional announcements or with subsequent development
Equity incentives
□ Applicable √ Not applicable
Other remarks
□ Applicable √ Not applicable
Employee stock ownership plan
□ Applicable √ Not applicable
Other incentive measures
□ Applicable √ Not applicable
(III) Equity incentives granted to directors and senior management during the reporting period
□ Applicable √ Not applicable
(IV) Establishment and implementation of evaluation mechanism and incentive mechanism for senior
management during the reporting period
53 / 238
ANNUAL REPORT 2023
√ Applicable □ Not applicable
According to the needs of establishing a modern enterprise system, the Company implements the appointment
system for senior executives and has established a fair and transparent performance evaluation and incentive
mechanism for directors, supervisors and senior executives, urging management personnel to fulfill their obligations
of integrity and diligence, clarifying their rights and responsibilities, and giving full play to the enthusiasm and
creativity of senior executives. The management of the Company supervises the daily performance of senior
executives in accordance with the President’s Work Rules and the Financial Management System of the Company,
and the Company conducts year-end evaluation of senior executives and gives rewards or punishments to senior
executives according to the business objectives set at the beginning of the year and the remuneration system for
senior executives reviewed and approved by the Board of Directors.
XII. Development and Implementation of Internal Control Systems during the Reporting Period
√ Applicable □ Not applicable
The Company evaluated and revised its business related control processes during the current year. During the
reporting period, the Company provided training on risk and internal control policies to its internal control staff.
The internal audit department conducted specialized audits on various processes, including purchase management,
inventory management, capital management, IT system management, R&D process management, and outsourcing
business management.
Description of significant defects in the internal control during the reporting period
□ Applicable √ Not applicable
XIII. Management and Control of Subsidiaries During the Reporting Period
√ Applicable □ Not applicable
The Company consistently performed self-assessment of the internal control effectiveness within its subsidiaries, in
accordance with the corporate internal control system. Additionally, the Company ensured internal control oversight
of its subsidiaries by conducting specialized process audits.
In Q4 2023, Carlsberg Chongqing Brewery, a subsidiary controlled by the Company, completed the acquisition of
100% equity of of Beijing Capital Brewing Company Limited and Jinbei Asia Pacific (Beijing) Catering Co., Ltd.
In 2024, the Company will continue to integrate and optimize the processes of the two newly acquired subsidiaries,
and include them in the internal self-assessment scope for supervision and management.
XIV. Relevant Issues on the Audit Report on Internal Control
√ Applicable □ Not applicable
Pan-China Certified Public Accountants LLP (Special General Partnership), the accounting firm engaged by the
Company, has conducted an audit on the effectiveness of internal control related to the Company’s financial report
and issued an unqualified audit report. For details of the Company’s 2023 Internal Control Audit Report, please
refers to the SSE website.
Disclosure of internal control audit report: Yes.
Type of opinion: Unqualified opinion.
XV. Rectification of Issues Found in Self-Inspections as per the Special Campaign on Governance of
Listed Companies
□ Applicable √ Not applicable
XVI. Others
54 / 238
ANNUAL REPORT 2023
□ Applicable √ Not applicable
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
I. Environmental Information
Any environmental protection mechanism established Yes
Funds invested for environmental protection during the 2,053.1
reporting period (in RMB '0,000)
(I) Explanation on environmental protection of the Company and its subsidiaries falling into the category
of key pollution discharging units listed by the environmental protection authorities
√ Applicable □ Not applicable
1. Pollution discharge information
√ Applicable □ Not applicable
Numb Discharge Pollutant discharge Total Total Discharge
Distributio
er of concentratio standards discharge discharge exceeding
Company Major Method of n of
dischar n implemente approved standards
name pollutants discharge discharge
ge d
outlet
outlet
Wanzhou Discharged COD： Pretreatment COD： COD： No
Branch of into urban 135.64mg/l standards set out in 5.14ton 143ton
Northwest
Carlsberg pipeline Discharge Standard
Wastewater 1 of the
Chongqing network Ammonia of Pollutants for Ammonia Ammonia
factory
Brewery after nitrogen: Beer Industry nitrogen: nitrogen:
Co., Ltd. treatment 4.71mg/l (GB19821-2005) 0.147ton 12.88ton
COD： Pretreatment COD： COD： No
134.71mg/L standards set out in 21.23ton 376.782ton
Discharge Standard
Carlsberg
Discharged Ammonia of Pollutants for Ammonia Ammonia
Chongqing
into urban Northeast nitrogen: Beer Industry nitrogen: nitrogen:
Brewery
pipeline corner 12.71mg/L, (GB19821- 2.017ton 33.91ton
Co., Ltd. Wastewater 1
network within the 2005)；
(Mawang
after factory Wastewater
Township
treatment Quality Standards
Factory)
for Discharge to
Municipal Sewers
(GB31962-2015)
COD： Pretreatment COD： COD： No
122.91mg/L standards set out in 14.942ton 116.33ton
Discharge Standard
Ammonia of Pollutants for Ammonia Ammonia
nitrogen: Beer Industry nitrogen: nitrogen:
0.45mg/L (GB19821- 0.205ton 21.81ton
Carlsberg Discharged
2005)；
Chongqing into urban
North side Wastewater
Brewery Co., pipeline
Wastewater 1 within the Quality Standards
Ltd. network
factory for Discharge to
(Dazhulin after
Municipal Sewers
Factory) treatment
(GB31962-
2015)；GB8978-
1996 Integrated
Wastewater
Discharge
Standard.
Hechuan Discharged North gate COD： Pretreatment COD： COD： No
Wastewater 1
Branch of into urban within the 179.95mg/L standards set out in 20.921ton 158.306ton
55 / 238
ANNUAL REPORT 2023
Carlsberg pipeline factory Discharge Standard
Chongqing network Ammonia of Pollutants for Ammonia Ammonia
Brewery after nitrogen: Beer Industry nitrogen: nitrogen:
Co., Ltd. treatment 5.47 mg/L (GB19821- 0.674ton 14.248ton
2005)；
Wastewater
Quality Standards
for Discharge to
Municipal Sewers
(GB31962-2015)
Liangping Discharged COD： Pretreatment COD： COD： No
Branch of into urban 205 mg/L standards set out in 23.575ton 429.45ton
Carlsberg pipeline Outside the Discharge Standard
Wastewater 1
Chongqing network factory gate Ammonia of Pollutants for Ammonia Ammonia
Brewery after nitrogen: Beer Industry nitrogen: nitrogen:
Co., Ltd. treatment 6.32 mg/L (GB19821-2005) 0.697ton 38.65ton
Discharged COD： Negotiation COD： COD： No
into the 30.652 mg/L standard set out in 0.872ton 175ton
downstream Discharge Standard
municipal Ammonia of Pollutants for Ammonia Ammonia
Peiling water nitrogen: Beer Industry nitrogen: nitrogen:
Branch of treatment 0.515mg/L (GB19821-2005 ) 0.11ton 15.75ton
Northwest
Carlsberg plant, and amendment sheet
Wastewater 1 of the
Chongqing subsequently
factory
Brewery released
Co., Ltd. following
appropriate
treatment by
the treatment
plant.
Shizhu COD： Pretreatment COD： COD： No
Discharged
Branch of Northwest 149mg/L standards set out in 1.743ton 143.18ton
into pipeline
Carlsberg corner Discharge Standard
Wastewater network of 1
Chongqing within the Ammonia of Pollutants for Ammonia Ammonia
the park after
Brewery factory nitrogen: Beer Industry nitrogen: nitrogen:
treatment
Co., Ltd. 1.35mg/L (GB19821-2005) 0.82ton 12.88ton
Discharged COD： Pretreatment COD： COD： No
Chongqing into water 142.44mg/L standards set out in 18.5ton 147.65ton
South side
Brewery treatment Discharge Standard
Wastewater 1 of the
Yibin Co., plant of the Ammonia of Pollutants for Ammonia Ammonia
factory area
Ltd. park after nitrogen: Beer Industry nitrogen: nitrogen:
treatment 0.63mg/L (GB19821-2005) 0.577ton 30.80ton
COD： Negotiation COD： COD： No
2800mg/L standard set out in 0.543ton 105ton
Chongqing Discharge
Discharge Standard
Brewery into pipe South of the
Wastewater 1 Ammonia of Pollutants for Ammonia Ammonia
Xichang Co., network of factory area
nitrogen: Beer Industry nitrogen: nitrogen:
Ltd. the area
4.5mg/L (GB19821-2005 ) 0.00465ton 9.45ton
amendment sheet
COD： Negotiation COD： COD： No
Discharged
2660mg/L standard set out in 101.936ton 286.36ton
Chongqing into urban
West side Discharge Standard
Beer pipeline
Wastewater 1 within the Ammonia of Pollutants for Ammonia Ammonia
Panzhihua network
factory nitrogen: Beer Industry nitrogen: nitrogen:
Co., Ltd. after
48.307mg/L (GB19821-2005 ) 1.844ton 25.77ton
treatment
amendment sheet
COD： Pretreatment COD： COD： No
154mg/L standards set out in 12.756ton 55ton
Discharged
Hunan Discharge Standard
into urban
Chongqing Outside the Ammonia of Pollutants for Ammonia Ammonia
pipeline
Brewery Wastewater 1 factory nitrogen: Beer Industry nitrogen: nitrogen:
network
Grandmen entrance 5.4mg/L (GB19821- 0.45ton 21ton
after
Co., Ltd. 2005)，as well as
treatment
the feed-water
quality
56 / 238
ANNUAL REPORT 2023
requirements of
Lixian Domestic
Sewage Treatment
Plant
COD： Pretreatment COD： COD： No
2,367mg/L standards set out in 14.51ton 39ton
Discharged
Discharge Standard
into urban
Ammonia of Pollutants for Ammonia Ammonia
pipe network
nitrogen: Beer Industry nitrogen: nitrogen:
Yongzhou after
17.5mg/L (GB19821-2005); 1.3ton 8ton
Branch of pretreatment
Negotiation
Hunan , and
South of the standard set out in
Chongqing Wastewater subsequently 1
factory area Discharge Standard
Brewery discharged
of Pollutants for
Grandmen into
Beer Industry
Co., Ltd. municipal
(GB19821-2005 )
water
amendment sheet
treatment
has been
plan
implemented since
June.
Chongqing Discharged COD： Pretreatment COD： COD： No
Brewery into urban 165 mg/L standards set out in 11.5ton 356ton
Group pipeline East of the Discharge Standard
Wastewater 1
Chengdu network factory Ammonia of Pollutants for Ammonia Ammonia
Bock Beer after nitrogen: 2.6 Beer Industry nitrogen: nitrogen:
Co., Ltd. treatment mg/L (GB19821-2005) 0.31ton 32ton
COD： Pretreatment COD： COD： No
117.84mg/L standards set out in 12.44ton 158.3725to
Discharge Standard n
Ammonia of Pollutants for Ammonia Ammonia
Kunming nitrogen: Beer Industry nitrogen: nitrogen:
Discharged Southwest
Huashi 9.04 mg/L (GB19821- 0.955ton 11.8754ton
Wastewater after 1 of the
Brewery 2005)；
treatment factory
Co., Ltd. Wastewater
Quality Standards
for Discharge to
Municipal Sewers
(GB31962-2015)
Carlsberg COD： Pretreatment COD： COD： No
(China) 50.6mg/l standards set out in 11.99ton 312.59ton
Discharged Northwest
Brewery Discharge Standard Ammonia
Wastewater after 1 of the
Industry and Ammonia of Pollutants for Ammonia nitrogen:
treatment factory
Trade nitrogen: Beer Industry nitrogen: 29.23ton
Limited 3.14 mg/l (GB19821-2005) 0.712ton
COD： Negotiation COD: COD: No
Carlsberg
618mg/L standard set out in 133ton 1,348.6ton
Tianmu Central and
Discharge Standard Ammonia
Lake Continuous western
Wastewater 1 Ammonia of Pollutants for Ammonia nitrogen:
Brewery discharge part of the
nitrogen: Beer Industry nitrogen: 26.21ton
(Jiangsu) factory
18.17mg/L (GB19821-2005 ) 3.98ton
Co., Ltd.
amendment sheet
COD: Discharge Standard COD: COD： No
Carlsberg 146mg/L of Pollutants for 7.46ton 118.82ton
Discharged Southwest
Brewery Beer Industry
Wastewater after 1 of the
(Jiangsu) Ammonia (GB19821-2005) Ammonia Ammonia
treatment factory
Co., Ltd. nitrogen: nitrogen: nitrogen:
15.2mg/L 1.2ton 15.36ton
COD： Discharge Standard COD： COD： No
Carlsberg 82.83mg/L of Pollutants for 30.11ton 54.21ton
Discharged North side
Brewery Beer Industry
Wastewater after 1 of the
(Anhui) Co., Ammonia (GB19821-2005) Ammonia Ammonia
treatment factory
Ltd. nitrogen: nitrogen: nitrogen:
3.74mg/L 1.24ton 3.45ton
Carlsberg Discharged Northwest COD： Pretreatment COD： COD： No
Wastewater 1
Brewery into urban corner 43mg/L standards set out in 5.26ton 75ton
57 / 238
ANNUAL REPORT 2023
(Guangdong water within the Discharge Standard
) Co., Ltd. treatment factory Ammonia of Pollutants for Ammonia Ammonia
plant after nitrogen: Beer Industry nitrogen: nitrogen:
being treated 0.89 mg/L (GB19821-2005) 0.08ton 5ton
COD： Pretreatment COD： COD： No
147.43mg/L standards set out in 31.511ton 301ton
Xinjiang Discharged Northwest
Discharge Standard
Wusu Beer Wastewater after 1 corner of
Ammonia of Pollutants for Ammonia Ammonia
Co., Ltd. treatment the factory
nitrogen: Beer Industry nitrogen: nitrogen:
1.44mg/L (GB19821-2005) 4.879ton 63ton
Xinjiang COD： Discharge Standard COD： COD： No
Northwest
Wusu Discharged 79mg/L of Pollutants for 8.85ton 23.49ton
corner in
Brewery Wastewater after 1 Beer Industry
the factory
(Wusu) Co., treatment (GB19821-2005)
area
Ltd.
Discharge Standard
of Pollutants for
COD： COD： COD：
Xinjiang Beer Industry
92.33 mg/L 6.62ton 18ton
Wusu Discharged Southeast (GB19821-2005);
Brewery Wastewater after 1 of the Wastewater No
Ammonia Ammonia Ammonia
(Yining) Co., treatment factory Quality Standards
nitrogen: nitrogen: nitrogen:
Ltd. for Discharge to
4.34mg/L 0.311ton 15.75ton
Municipal Sewers
(GB31962-2015)
COD： No
Negotiation No total
Discharged COD： COD：
Xinjiang standard set out in volume
into urban 2,000mg/L 23.4ton
Wusu Southwest Discharge Standard requirement
pipeline
Brewery Wastewater 1 of the of Pollutants for Ammonia
network Ammonia Ammonia
(Korla) Co., factory Beer Industry nitrogen:
after nitrogen: nitrogen:
Ltd. (GB19821-2005 ) No total
treatment 45mg/L 0.375ton
amendment sheet volume
requirement
COD： Discharge Standard COD： COD： No
102mg/L of Pollutants for 8.5ton 28ton
Xinjiang Beer Industry
Wusu Discharged Ammonia (GB19821-2005); Ammonia Ammonia
West side of
Brewery Wastewater after 1 nitrogen: Wastewater nitrogen: nitrogen:
the factory
(Aksu) Co., treatment 8mg/L Quality Standards 0.67ton 5.25ton
Ltd. for Discharge to
Municipal Sewers
(GB31962-2015)
COD： Pretreatment COD： COD： No
49.5mg/L standards set out in 9.397ton 48.8ton
Discharge Standard
Ammonia of Pollutants for Ammonia Ammonia
Ningxia
nitrogen: Beer Industry nitrogen: nitrogen:
Xixia Discharge Southwest
2.82mg/L (GB19821- 0.54ton 4.88ton
Jianiang Wastewater after 1 of the
2005)；
Brewery treatment factory
Wastewater
Co., Ltd.
Quality Standards
for Discharge to
Municipal Sewers
(GB31962-2015)
2. Construction and operation of pollution prevention facilities
√ Applicable □ Not applicable
In 2023, the Company’s pollution control facilities operated reliably, ensuring that pollutants were discharged in
compliance with relevant standards. Furthermore, the Company successfully passed environmental protection
inspections conducted by relevant authorities at all levels.
3. Environmental impact assessment of construction projects and other administrative approval on
58 / 238
ANNUAL REPORT 2023
environmental protection
√ Applicable □ Not applicable
On December 19, 2022, Carlsberg Brewery (Foshan) Co. Ltd. obtained the approval of Foshan Municipal Bureau
of Ecology and Environment on the environmental impact report on a project of Carlsberg Brewery (Foshan) Co.
Ltd., which concerns an annual output of 500,000 tons of beer (FHSF [2022] No. 98). At present, the project is
under construction and subsequently will be subject to completion acceptance in strict accordance with the process
of simultaneous design, construction and performance.
On May 7, 2022, Xinjiang Wusu Brewery (Korla) Co. Ltd. obtained the Approval of the Ecological and
Environmental Bureau of Bayingol Prefecture on the Environmental Impact Report on the Phase III Expansion
Project of Xinjiang Wusu Brewery (Korla) Co. Ltd. (BHPJH (2022) No. 82). The Phase III expansion project was
completed in October 2023 and passed the EIA acceptance on January 11, 2024, and is currently in the publicity
period for environmental acceptance and evaluation.
On November 28, 2023, a new finished product warehouse of Xichang Factory of Chongqing Brewery completed
the filing of the environmental impact registration form for the construction project (filing no:
202351340100000108).
4. Contingency plans for environmental emergencies
√ Applicable □ Not applicable
The Company attaches great importance to environmental emergency warning, risk prevention and control, and
has established comprehensive measures for environmental risk prevention and control. Each of its breweries has
formulated Environmental Emergency Response Plan and Environmental Risk Assessment Report, and these
documents have been filed them with relevant environmental protection departments. The Company is able to
effectively cope with local or regional environmental pollution incidents caused by sudden environmental pollution
and ecological damage, and ensure that incidents can be addressed quickly and efficiently on site to protect the
brewery and surrounding environment as well as the life and property of the people in residential areas, preventing
unforeseen environmental pollution incidents.
5. Environmental self-monitoring plan
√ Applicable □ Not applicable
Each brewery of the Company has formulated its self-monitoring plan for environmental protection to effectively
monitor various pollutant factors. The Company implements Discharge Standard of Pollutants for Beer Industry
(GB19821-2005), ISO14001 Environmental Management System and internal SHAPE system (environmental
health and safety excellence evaluation system).
6. Administrative penalties for environmental issues during the reporting period
□ Applicable √ Not applicable
7. Other environmental information that shall be disclosed
□ Applicable √ Not applicable
(II) Environmental protection of companies other than key pollutant discharging units
□ Applicable √ Not applicable
(III) Relevant information conducive to ecological protection, pollution prevention and control, and
fulfillment of environmental responsibilities
59 / 238
ANNUAL REPORT 2023
√ Applicable □ Not applicable
The Company’s ESG program, named “Together Towards ZERO and Beyond”, focuses on environmental and
ecological protection, and is committed to carrying out various measures such as waste treatment, energy
conservation and water resource management to reduce the negative impact on the ecological environment and
actively fulfill environmental responsibilities.
In terms of waste management, we have further standardized the management of collection, storage and disposal of
various wastes in daily production. For general waste, we have strictly implemented garbage classification,
recycling and transporting the waste at fixed location and time, and recycling renewable resources; for hazardous
waste, we have organized to sort out the collection scope of hazardous waste, cleaning, storing and transferring the
waste according to the category, storing the waste in the warehouse for hazardous waste, entrusting qualified third
parties to dispose of the waste when the storage reaches a certain amount, and establishing a ledger for the generation,
transfer and disposal of hazardous waste so as to ensure the effective waste disposal tracking and management.
In terms of discharge of waste gas and water, all the breweries under the Company are equipped with well-
functioning sewage treatment stations, and have installed automatic monitoring facilities to monitor various
emission indicators in real time. The odor generated by the sewage station is collected and disposed of responsibly
to ensure that the odor is treated up to standard. The wastewater of the breweries contains plenty of carbon sources
that provide nutrients for microorganisms necessary for wastewater treatment. In accordance with Discharge
Standard of Pollutants for Beer Industry, we provide wastewater to sewage treatment plants. While promoting the
resource utilization of wastewater, we have saved the energy consumption in the sewage treatment by breweries,
thus achieving a win-win situation for both the breweries and the sewage treatment plants. In 2023, we have
implemented resource utilization of beer wastewater in six breweries.
In terms of noise management, the Company strictly follows the Law of the People’s Republic of China on Noise
Pollution Prevention and Control and other applicable laws and regulations, having formulated internal policies
such as Noise Control and Hearing Protection Procedures, and further strengthening the prevention and control of
noise pollution according to the noise pollution prevention and control idea, i.e. “prevention from the source, control
in the transmission, and protection of the receptor.” We have effectively controlled the impact of noise through
regular noise monitoring at plant boundary, equipment renovation and maintenance, increased isolation protection
and other measures.
In terms of reducing packaging waste, the Company has actively carried out innovative cooperation to promote
sustainable packaging design, facilitate the use of green and environmentally-friendly packaging materials and
lightweight packaging, and reduce packaging waste and environmental pollution. Compared with 2022, the canning
rate of our products increased by 4.2% in 2023, showing an effective reduction in the consumption of packaging
materials. Meanwhile, the Company has continued to carry out a number of bottle recovery projects, encouraging
dealers to expand the coverage of bottle recovery, continuously promote the improvement of dealers’ bottle recovery
performance and reduce the environmental impact of packages and waste by optimizing the bottle recovery network.
In 2023, the Company’s overall bottle recovery rate was 2.80% higher than in 2022, and the bottle loss was 0.30%
lower. In addition, we have used ton bags made of recyclable materials for the outer packaging of agricultural raw
materials, which have reduced the environmental pollution caused by the waste of packaging materials while
lowering consumption of packaging materials during the transportation of agricultural products (rice, starch, malt,
etc.).
In terms of energy conservation, please refer to “(IV) Measures taken to reduce carbon emissions during the
reporting period and related effects.”
60 / 238
ANNUAL REPORT 2023
In terms of water resource management, the Company has continuously reduced unit water consumption by
implementing a series of water-saving measures, including water-saving renovation of bottle washers, packaging
water recycling projects, water-saving vacuum pumps, and reclaimed water reuse projects. The company’s water
efficiency improved from 3.87 HL/HL in 2015 to 2.11 HL/HL in 2023, significantly outperforming the Chinese beer
industry average of 3.2 HL/HL. In 2023, the Company received multiple awards for its water conservation efforts:
1. Urumqi Brewery was awarded the “Water Conservation Benchmark Enterprise in the Industrial Sector of the
Autonomous Region” in 2023.
2. Shizhu Brewery was recognized as the “County-level Water-saving Enterprise” in Shizhu County in 2023.
3. In 2022, Dali Brewery won the national-level title of “Water Efficiency Leader.”
4. Ningxia Brewery was honored as the “Municipal Water-saving Enterprise” in Helan County in 2022.
5. Boke Brewery was honored as the “Advanced Unit of Water Resource and Conservation Management” in Pidu
District in 2022.
The Company attaches great importance to the impact of business development on biodiversity, and has carried out
a number of wildlife and ecosystem protection actions. In 2023, we cooperated with the World Wildlife Fund (WWF)
to carry out biodiversity conservation projects, such as the protection of black-necked cranes in Kunming, the
restoration of the ecosystem in Chongqing, and the agricultural transformation around Tianmu Lake in Jiangsu,
promoting the conservation of biodiversity while continuously promoting the protection of basin water resources
and key wetland ecosystems through the water source protection, wetland restoration and aquatic environment
monitoring.
(IV) Measures taken to reduce carbon emissions during the reporting period and related effects
Any carbon reduction measures taken Yes
CO2 equivalents of reduced emission (unit: ton) 2568.3
Types of carbon reduction measures Please refer to the following “Specific description”.
(such as using clean energy for power
generation, using carbon reduction
technology in the production process, developing and
producing new products
that support carbon reduction, etc.)
Specific description
√ Applicable □ Not applicable
The Company is committed to achieving net-zero emission across the full value chain by 2040, and its carbon
reduction actions cover raw material cultivation, production, packaging, logistics transportation and distribution,
and cooling and storage.
In the process of raw material cultivation, processing and production, the Company has improved the overall
efficiency of equipment year by year, reduced the immersion damage of raw materials, and continuously improved
the output rate of raw materials. In addition, the Company has recycled and treated raw material wastes such as
spent grains and spent yeasts for animal husbandry, and reduced the demand for feeds and fertilizers in agriculture
and animal husbandry, thereby reducing greenhouse gas emissions generated during the production and use of feeds
and fertilizers, and effectively reducing the carbon footprint in agriculture.
In the process of beer production, the Company has continued to increase investment in renewable energy, actively
explored and tried more clean energy alternatives, and further optimized the energy structure. In 2023, the electricity
61 / 238
ANNUAL REPORT 2023
used by the Company was 100% supplied by green energy, which totaled 160,207 MWh; at the same time, the
Company has actively deployed projects to comprehensively use thermal energies such as biogas and steam,
reducing heat energy consumption and carbon emission by recycling and reusing biogas and boiler steam. In 2023,
the Company reduced carbon emission by 2,568.3 tons, and the carbon emission per hectoliter of beer brewed
decreased by 74.1% compared to 2015.
In the use of packaging materials, the Company has cooperated with suppliers to carry out carbon reduction actions,
including driving suppliers to obtain ISO 14001 certification of environmental management system and national
green factory certification, and urging them to carry out photovoltaic deployment. In 2023, zero carbon emission in
the production process of main outer liners used in corrugated boxes has been achieved.
In terms of logistics transportation, the Company has continued to promote the electrification of its logistics fleet,
and replaced traditional lead-acid batteries with lithium-ion batteries that are more environmentally friendly,
increasing the proportion of electric forklifts from 75% to 79% in 2023. In addition, we have worked with logistics
providers to strictly monitor the fuel use in the logistics process and provide fuel efficiency training to drivers, thus
improving suppliers’ energy conservation awareness and environmental performance.
In the cooling and storage process, the Company has implemented the energy-saving freezer project since 2021,
purchasing freon-free refrigerants and energy-saving freezers, reducing terminal energy consumption by 10% per
year, and effectively reducing greenhouse gas emissions generated by refrigerants. In 2023, we purchased about
15,000 energy-saving freezers, and optimized the existing freezers, controlled and optimized the performance of the
freezers’ transmission system, and rationally planned and used energy, thereby reducing the energy consumption
per unit of product and further lowering the level of carbon emission.
In terms of operation, in order to reduce employees’ carbon emissions in the commuting process, the Company has
given priority to cooperating with passenger service providers with lower carbon emission level. In 2023, the
Company completed the pilot bidding for electric bus substitution at Chongqing Brewery, which will be officially
launched in 2024 and is expected to effectively reduce carbon emissions by about 3,016.06 tons. At the same time,
we have been committed to improving the awareness of energy conservation and emission reduction among internal
employees, carrying out the “Ideas for Carlsberg” scheme to solicit suggestions from employees on carbon reduction
and water conservation, which are potentially achievable in the work, and awarding bonuses and commendations to
the winners, thus forming a corporate atmosphere in which all employees are involved in low-carbon operations.
In 2023, the Company launched a new round of full value chain carbon verification, which showed a 28% reduction
in carbon emissions across the value chain in 2022 compared to 2015 baseline data.
II. Work on Social Responsibility
(I) Disclosure of the social responsibility report, sustainable development report or ESG report separately
√ Applicable □ Not applicable
For details, please refer to the CBC 2023 ESG Report disclosed by the Company on the website of Shanghai Stock
Exchange (www.sse.com.cn) on the very day.
(II) Specific work on social responsibility
√ Applicable □ Not applicable
Item of external donation and public welfare Quantity / Content Description
Total input (in RMB '0,000) 42 For details, please refer to the following
“Specific description.”
62 / 238
ANNUAL REPORT 2023
Including: Funds (in RMB '0,000) 42
Amount equivalent to goods
and materials (in RMB '0,000)
Number of beneficiaries (Person)
Specific description
√ Applicable □ Not applicable
1. On August 24, 2023, the 20th “Chongqing Beer” Scholarship Granting Ceremony was jointly held by the Yibin
Municipal Party Committee of the Communist Youth League and Chongqing Brewery Yibin Co., Ltd, and a total of
RMB 200,000 in scholarships was granted to 60 university freshmen on site.
2. The Company supported the cultural and other activities of college and university students in Chongqing aiming
at spreading science, technology and information on health in the countryside, providing RMB 100,000 for the
activities, guiding and empowering young students to “purse education, develop their talents and make contributions”
through their social practices. This program received a total of 218 research reports and 162 practical projects, which
awarded 2 grand prizes, 4 first prizes, 6 second prizes, 8 third prizes, and recognized 135 projects with excellent
prizes.
3. On December 12, 2023, in parallel with Safety Day, the Company initiated a volunteer activity, calling upon
employees to prioritize healthy walking and safe driving through Tencent Public Welfare and WeChat mini-app.
The activity spanned over a duration of 9 days, during which 4,014 employees actively participated. 96 volunteer
teams collectively walked over 160 million steps and drove safely for a distance of 5,780 kilometers. In total, the
combined mileage achieved surpassed 100,000 kilometers. The Company allocated RMB 120,000 of public
welfare funds to match the volunteer activity. These funds were donated through the Beijing Foreign Enterprises
Volunteer Association to rural elementary schools in Yushu, aiming to foster a new generation of scientific talents.
III. Specific Work on Consolidating and Expanding the Achievements of Poverty Alleviation
and Rural Revitalization
√ Applicable □ Not applicable
Item of poverty alleviation and rural Quantity / Content Description
revitalization
Total input (in RMB '0,000) 20 For details, please refer to the following
“Specific description.”
Including: Funds (in RMB '0,000) 20
Amount equivalent to
goods and materials (in RMB '0,000)
Number of beneficiaries (Person)
Forms of assistance (such as poverty
alleviation through industries,
employment, education, etc.)
Specific description
√ Applicable □ Not applicable
On August 24, 2023, the 20th “Chongqing Beer” Scholarship Granting Ceremony was jointly held by the Yibin
Municipal Party Committee of the Communist Youth League and Chongqing Brewery Yibin Co., Ltd, and a total of
RMB 200,000 in scholarships was granted to 60 university freshmen on site.
63 / 238
ANNUAL REPORT 2023
SECTION VI IMPORTANT MATTERS
I. Performance of Commitments
(I) Commitments by relevant parties such as actual controllers, shareholders, related parties, acquirers and the Company during or subsisting to the reporting
period
√ Applicable □ Not applicable
Background Type of Party of Content of commitment Time of Any Term of Timely and Reasons for failure of timely Forthcoming
of commitment commitment commitment requirement commitment strict performance plans in view
commitment on performance of no timely
performance performance
period
The listed company has the legal and complete The 36 registered trademarks of
ownership of the assets to be injected by Chongqing Brewery were
Chongqing Brewery, and the listed company seized on Dec. 2, 2020 due to
truly holds such assets, and is free from any litigations, including ten
events of holding them for others or for the registered trademarks of the
benefit of others by entrustment or trust; there are “Shancheng” series and 26
no other rights such as mortgages or pledges on registered trademarks of the
Commitments such assets, no other interest arrangements “Chongqing” series. On Dec. 9,
related to Asset Listed prohibiting or restricting transfer of such assets, 2020, the listed company
2020 No Long-term No
major asset injection company nor any restrictions such as seizure, sealing up or obtained a ruling issued by the
restructuring freeze of such assets by law enforcement Chongqing No. 1 Intermediate
departments that restrict the rights on such assets People’s Court, which ruled to
or other circumstances that hinder the transfer of unseal the seized assets of
ownership; the ownership of such assets is clear, Chongqing Brewery.
with no ownership disputes or potential disputes In order to ensure the normal
of any kind, and with no internal decision- use of such trademarks by
making obstacles or substantive legal obstacles to Chongqing Jianiang before the
the assignment or transfer of such assets. At the change of registration of such
64 / 238
ANNUAL REPORT 2023
same time, the listed company guarantees that trademarks to the name of
this situation will continue until the assets Chongqing Jianiang (renamed
intended to be injected to Chongqing Brewery as “Carlsberg Chongqing”),
are transferred to Chongqing Jianiang. Chongqing Brewery signed a
Trademark Licensing Contract
with Chongqing Jianiang on
Dec. 2, 2020, authorizing
Chongqing Jianiang to use such
trademarks during the period
from the delivery date to the
expiration date of such
trademarks.
In January 2021, the Company
received the Civil Ruling Paper
and other documents issued by
the Chongqing No. 1
Intermediate People’s Court,
and according to the
application for property
preservation in the litigation
filed by Chongqing Jiawei Beer
Co. Ltd. to the Chongqing No.
1 Intermediate People’s Court,
the Company’s trademarks
seized in the litigation
(hereinafter referred to as
“Subsequently Restricted
Trademarks”) included 15
registered trademarks of the
65 / 238
ANNUAL REPORT 2023
“Shancheng” series and 88
registered trademarks of the
“Chongqing” series held by the
listed company.
The duration of seizure is three
years (Jan. 4, 2021 –Jan. 3,
2024).
In July 2022, the Company
received the Enforcement
Ruling Paper (No. 1 of Yu 01
ZB No. 528 (2020)) issued by
the Chongqing No. 1
Intermediate People’s Court,
which ruled to lift the seizure
of the rights of the above-
mentioned registered
trademarks of the Company
(including 15 registered
trademarks of the “Shancheng”
series and 88 registered
trademarks of the “Chongqing”
series) that were ruled in the
Civil Ruling Paper (No. 2 of Yu
01 MC No. 988 (2020) and the
Notice on Assisting the
Enforcement (No. 1 of Yu 01
ZB No. 528 (2020)). In July
2022, the Company submitted a
request to the State Intellectual
66 / 238
ANNUAL REPORT 2023
Property Administration for
resuming the review of the
transfer application. The
transfer of such trademarks
have been completed.
1. Carlsberg will ensure to maintain the
independence of the listed company from
Carlsberg and its affiliates in terms of business,
assets, finance, personnel and institutions, will
strictly abide by relevant regulations of CSRC on
the independence of listed companies, and will not
use the control of the listed company to violate the
standard operating procedures of the listed
company, interfere in the business decisions of the
listed company, or damage the legitimate rights
and interests of the listed company and other
shareholders;
Others Carlsberg 2020 No Long-term Yes
2. The restructuring is conducive to improving the
governance mechanism of the listed company,
improving the integrity of the assets of the listed
company, enhancing the independence of the
listed company, and helping the listed company
maintain independence in terms of personnel,
procurement, production, sales and intellectual
property rights, which is in line with the interests
of the listed company and all its shareholders.
After the completion of the restructuring,
Carlsberg will give full play to the active role of a
controlling shareholder and assist the listed
67 / 238
ANNUAL REPORT 2023
company to further strengthen and improve the
governance structure of the listed company.
Carlsberg commits that, if it violates the above
commitments and thus causes losses to the listed
company, it will bear corresponding
compensations according to law.
1. Carlsberg Breweries will ensure to maintain
the independence of the listed company from
Carlsberg Breweries and its affiliates in terms
of business, assets, finance, personnel and
institutions, will strictly abide by relevant
regulations of CSRC on the independence of listed
companies, and will not use the control of the
listed company to violate the standard operating
procedures of the listed company, interfere in the
business decisions of the listed company, or
damage the legitimate rights and interests of the
Carlsberg
Others listed company and other shareholders; 2020 No Long-term Yes
Breweries
2. The restructuring is conducive to improving the
governance mechanism of the listed company,
improving the integrity of the assets of the listed
company, enhancing the independence of the
listed company, and helping the listed company
maintain independence in terms of personnel,
procurement, production, sales and intellectual
property rights, which is in line with the interests
of the listed company and all its shareholders.
After the completion of the restructuring,
Carlsberg Breweries will give full play to the
68 / 238
ANNUAL REPORT 2023
active role of a controlling shareholder and assist
the listed company to further strengthen and
improve the governance structure of the listed
company.
Carlsberg Breweries also commits to urge
Carlsberg Hong Kong and Carlsberg Chongqing
to abide by and implement the above
commitments to avoid harming the interests of the
listed company and other shareholders.
Carlsberg Breweries commits that, if it violates
the above commitments and thus causes losses to
the listed company, it will bear corresponding
compensations according to law.
During the period when the Carlsberg Foundation
and Carlsberg Breweries control the listed
company:
1. After the completion of the restructuring,
Carlsberg and Carlsberg Breweries will minimize
and regulate related-party transactions between
Carlsberg, Carlsberg Breweries and their affiliates
Resolution of Carlsberg and
and the listed company and enterprises controlled
related-party Carlsberg 2020 No Long-term Yes
by the listed company in accordance with relevant
transactions Breweries
laws and regulations;
2. For unavoidable or reasonable related-party
transactions, Carlsberg and Carlsberg Breweries
commit to follow the principles of fairness,
impartiality and openness of the market, sign
agreements according to law, perform legal
procedures, ensure the legality of the decision-
69 / 238
ANNUAL REPORT 2023
making procedures of related-party transactions as
well as the fairness and reasonableness of
transaction prices and conditions and other terms
of agreements, and not to harm the legitimate
rights and interests of the listed company and
other shareholders through related-party
transactions.
Carlsberg and Carlsberg Breweries commit that, if
they violate the above commitments and thus
cause losses to the listed company, they will bear
corresponding compensations according to law.
It is confirmed that Xinjiang plants intended to be
shut down have completely ceased operations, and
Carlsberg Consultancy commits that such
Xinjiang plants will not directly or indirectly
engage in businesses competing with Chongqing
Resolution of
Carlsberg Brewery Co. Ltd. (the listed company) and
intra-industry 2020 No Long-term Yes
Consultancy subsidiaries controlled by the listed company in
competition
China in the future. Carlsberg Consultancy
commits that, if it violates the above commitments
and thus causes losses to the listed company, it
will bear corresponding compensations according
to law.
During the period when the Carlsberg Foundation
controls the listed company or when Carlsberg
Resolution of Carlsberg and
Breweries is the controlling shareholder of the
intra-industry Carlsberg 2020 No Long-term Yes
listed company:
competition Breweries
1. From the date of completion of the
restructuring, Carlsberg, Carlsberg Breweries and
70 / 238
ANNUAL REPORT 2023
other enterprises controlled by them other than the
listed company and subsidiaries controlled by the
listed company shall not directly or indirectly
engage in businesses competing with the listed
company and subsidiaries controlled by it in
mainland China.
2. For equities of subsidiaries not controlled by
Carlsberg and Carlsberg Breweries, which are not
included in the scope of the restructuring and
involve beer assets and businesses in mainland
China, Carlsberg and Carlsberg Breweries commit
as follows:
(1) For companies not controlled by Carlsberg and
Carlsberg Breweries, which are defined as Sino-
foreign joint ventures as of the date of this letter
(including Qinghai Huanghe Jianiang Beer Co.
Ltd., Tianshui Huanghe Jianiang Beer Co. Ltd.,
Lanzhou Huanghe Jianiang Beer Co. Ltd., Jiuquan
West Brewery Co. Ltd. and Tibet Lhasa Beer Co.
Ltd.), a) if relevant joint venture parties agree in
the future to acquire all or part of the equities
directly and/or indirectly held by Carlsberg and
Carlsberg Breweries in such companies on fair
and reasonable terms, Carlsberg and Carlsberg
Breweries commit to sell all or part of the equities
held in such companies to the joint venture parties
and not to increase their shareholding in such
companies in the future, except as described in
item c) below; b) if relevant joint venture parties
71 / 238
ANNUAL REPORT 2023
agree in the future to sell all or part of the equities
held by them in such companies to the listed
company, and the business performance and asset
quality of relevant companies are qualified for the
injection into the listed company, Carlsberg and
Carlsberg Breweries commit to sell all the equities
held by them to the listed company on the same
terms or inject the equities into the listed company
in other feasible ways at the same time as the joint
venture parties sell all or part of the equities held
by them in such companies to the listed company;
c) if relevant joint venture parties agree in the
future to sell all or part of the equities held by them
but do not agree to sell such equities to the listed
company, and the business performance and asset
quality of relevant companies are qualified for the
injection into the listed company, Carlsberg and
Carlsberg Breweries commit to exercise the pre-
emptive right in respect of the above-mentioned
equities intended to be sold as instructed by the
listed company, and sell the equities of relevant
companies (including the above-mentioned
equities acquired through the exercise of the pre-
emptive right and the equities originally held by
Carlsberg and Carlsberg Breweries) to the listed
company on the same terms (if relevant joint
venture parties still hold part of the equities at that
time, Carlsberg and Carlsberg Breweries will be
subject to relevant joint venture parties’ waiver of
72 / 238
ANNUAL REPORT 2023
the exercise of the pre-emptive right and the
procedures stipulated in the Articles of
Association) or inject the equities into the listed
company in other feasible ways upon completion
of the purchase; d) Except as described in item c)
above, Carlsberg and Carlsberg Breweries commit
not to seek control of such companies in any way.
(2) For the company not controlled by Carlsberg
and Carlsberg Breweries, which is defined as a
wholly foreign-owned enterprise as of the date of
this letter (i.e. Jing-A Brewing Co. Ltd.), if
Carlsberg and Carlsberg Breweries acquire direct
and/or indirect control of the company in the
future and the company’s business performance
and asset quality are qualified for the injection into
the listed company, Carlsberg and Carlsberg
Breweries commit to sell the equities directly
and/or indirectly held by them in the company to
the listed company or inject the equities into the
listed company in other feasible ways; if the listed
company decides to waive the purchase according
to its business development needs and through the
internal decision-making process, Carlsberg and
Carlsberg Breweries commit to sell the equities
directly and/or indirectly held by them in the
company to an unrelated third party.
The fulfillment of the above commitments shall be
subject to the national laws, regulations and
industry policies, the requirements of
73 / 238
ANNUAL REPORT 2023
administrative approval, and the internal decision-
making procedures of the listed company.
3. If, after the completion of the restructuring,
Carlsberg and Carlsberg Breweries (including
wholly-owned enterprises, enterprises controlled
by them and branches at all levels) obtain
investment opportunities directly competing with
the main businesses or main products of the listed
company in mainland China, which the listed
company intends to participate in and has the
ability to operate and relevant third parties agree
to provide to the listed company on reasonable
terms, Carlsberg and Carlsberg Breweries commit
to prompt the third party to negotiate in good faith
with the listed company so as to enable the listed
company to implement such investment
opportunities.
If the aforesaid future investment opportunities in
mainland China do not directly compete with the
main businesses or main products of the listed
company, or the listed company does not intend to
or temporarily does not have the ability to operate
such investment opportunities, or a third party
refuses to provide such opportunities to the listed
company, Carlsberg and Carlsberg Breweries may
make investment or acquisition under the premise
of complying with the contents described in item
1 of this commitment letter.
Carlsberg and Carlsberg Breweries also commit to
74 / 238
ANNUAL REPORT 2023
urge Carlsberg Breweries Hong Kong Limited and
Carlsberg Chongqing Ltd. to abide by and
implement the above commitments so as to avoid
harming the interests of the listed company and
other shareholders.
Carlsberg and Carlsberg Breweries commit that if
they violate the above commitments and thus
cause losses to the listed company, they will bear
corresponding compensations according to law.
In case of defects in the ownership or related
procedures of any buildings, structures, land use
rights, construction projects and production lines
owned or rented by companies of Pack B and/or
subsidiaries controlled by them before the
completion of the restructuring, resulting in the
failure of normal use of the above-mentioned
buildings, structures, land, construction projects
Resolution of
or production lines by companies of Pack B and/or
defects of
Carlsberg subsidiaries controlled by them, or causing
land and other 2020 No Long-term Yes
Breweries litigations/arbitrations/disputes between
property
companies of Pack B and/or subsidiaries
rights
controlled by them and other third parties as well
as administrative penalties imposed by relevant
competent authorities, Carlsberg Breweries
commits to bear all losses, damages and expenses
incurred to Chongqing Jianiang Beer Co. Ltd. and
the listed company according to law, including but
not limited to all losses and expenses incurred due
to litigations or arbitrations, fines, suspension of
75 / 238
ANNUAL REPORT 2023
production or business, searching for alternative
venues and relocation.
In case of defects in the ownership or related
procedures of any buildings, structures, land use
rights, construction projects and production lines
owned or rented by companies of Pack A and/or
subsidiaries controlled by them before the
completion of the restructuring, resulting in the
failure of normal use of the above-mentioned
buildings, structures, land, construction projects
or production lines by companies of Pack A and/or
Resolution of
subsidiaries controlled by them, or causing
defects of
Carlsberg litigations/arbitrations/disputes between
land and other 2020 No Long-term Yes
Consultancy companies of Pack A and/or subsidiaries
property
controlled by them and other third parties as well
rights
as administrative penalties imposed by relevant
competent authorities, Carlsberg Consultancy
commits to bear all losses, damages and expenses
incurred to Chongqing Jianiang Beer Co. Ltd. and
the listed company according to law, including but
not limited to all losses and expenses incurred due
to litigations or arbitrations, fines, suspension of
production or business, searching for alternative
venues and relocation.
In case of defects in the payment of five social
insurances and the housing fund made by
Carlsberg
Others companies of Pack B and/or subsidiaries 2020 No Long-term Yes
Breweries
controlled by them before the completion of the
restructuring, resulting in recovery or
76 / 238
ANNUAL REPORT 2023
supplementary payment required by relevant
government departments, or penalties imposed by
relevant government departments or requirement
of bearing any form of legal liability, thereby
causing any losses, damages and expenses to
Chongqing Jianiang Beer Co. Ltd. and the listed
company, Carlsberg Breweries commits to bear
the above losses and expenses according to law.
In case of defects in the payment of five social
insurances and the housing fund made by
companies of Pack A and/or subsidiaries
controlled by them before the completion of the
restructuring, resulting in recovery or
supplementary payment required by relevant
Carlsberg
Others government departments, or penalties imposed by 2020 No Long-term Yes
Consultancy
relevant government departments or requirement
of bearing any form of legal liability, thereby
causing any losses, damages and expenses to
Chongqing Jianiang Beer Co. Ltd. and the listed
company, Carlsberg Consultancy commits to bear
the above losses and expenses according to law.
77 / 238
ANNUAL REPORT 2023
(II) Explanation of whether the Company has fulfilled its original profit forecast in relation to assets or
projects, where there is a profit forecast for such assets or projects of the Company and the reporting period
falls within the profit forecast period, and the reasons thereof
□ Fulfilled □ Not Fulfilled √ Not Applicable
(III) Fulfillment of performance undertakings and its effects on goodwill impairment test
□ Applicable √ Not applicable
II. Funds Occupied by Controlling Shareholder and Other Related Parties for Nonoperational Purposes
During the Reporting Period
□ Applicable √ Not applicable
III. Guarantees in Violation of Laws and Regulations
□ Applicable √ Not applicable
IV. Explanation of the Board of the Company on the “Non-standard Audit Report” Prepared by the
Accounting Firm
□ Applicable √ Not applicable
V. Analysis and Explanation of the Company on the Reasons and Impacts of Changes in Accounting Policies
and Estimates or Correction of Material Accounting Errors
(I) Analysis and explanation of the Company on the reasons and impacts of changes in accounting policies
and estimates
√ Applicable □ Not applicable
For details, please refer to “V. Significant accounting policies and accounting estimates 11” under Section X
Financial Report of this report.
(II) Analysis and explanation of the Company on the reasons and impacts of correction of material accounting
errors
□ Applicable √ Not applicable
(III) Communication with previous accounting firm
□ Applicable √ Not applicable
(IV) Approval procedures and other information
□ Applicable √ Not applicable
VI. Engagement and Dismissal of Accounting Firm
Monetary unit: RMB Ten Thousand
Current engagement
Name of domestic accounting firm Pan-China Certified Public Accountants LLP
Remuneration 180
Audit service period 11
Certified Public Accountants Huang Qiaomei, Zhao Xingming
Certified Public Accountants’ cumulative years for
5 years, 4 years
audit services
78 / 238
ANNUAL REPORT 2023
Name Remuneration
Accounting firm of internal control Pan-China Certified Public
120
audit Accountants LLP
Remarks on engagement and dismissal of accounting firms
√ Applicable □ Not applicable
Pursuant to the “Proposal on Engaging Pan-China Certified Public Accountants LLP as the Company’s Accounting
Firm of 2023 Annual Audit and Internal Control Audit” deliberated and approved by the Company’s shareholders’
meeting of 2022, the Company intends to pay remuneration of 1.80 million yuan for annual audit and remuneration
of 1.20 million yuan for internal control audit, totaling 3.00 million yuan, to Pan-China Certified Public Accountants
LLP.
Remarks on the change in accounting firms during the audit period
□ Applicable √ Not applicable
Remarks on the decrease in audit fees by more than 20% (inclusive) compared with the preceding period
□ Applicable √ Not Applicable
VII. Risk of Delisting
(I) Causes of warning of delisting
□ Applicable √ Not applicable
(II) Corresponding measures intended by the Company
□ Applicable √ Not applicable
(III) Circumstances and reasons for termination of listing
□ Applicable √ Not applicable
VIII. Matters Relating to Bankruptcy and Restructuring
□ Applicable √ Not applicable
IX. Material Litigation and Arbitration
√ The Company had material litigation and arbitration during the year. □ The Company did not have material
litigation and arbitration during the year.
(I) Litigation and arbitration disclosed in provisional announcements without subsequent development
√ Applicable □ Not applicable
Summary and type of the matter Search index
Carlsberg Chongqing Brewery, a subsidiary controlled For details, please refer to the announcements “L2021-
by the listed company, filed a lawsuit with Chongqing 008”, “L2023-028” and “L2023-032” disclosed by the
No. 5 Intermediate People’s Court against Chongqing Company on the website of Shanghai Stock Exchange
Yuxin Industrial Group Co., Ltd. (“Yuxin Group”), on (www.sse.com.cn) on 16 March 2021, 18 November
the ground that Yuxin Group has caused damage to the 2023 and 28 December 2023 respectively.
interests of Chongqing Jiawei, requesting Yuxin Group
to return the funds misappropriated and pay interest on
79 / 238
ANNUAL REPORT 2023
the funds misappropriated to Chongqing Jiawei. On
16 November 2023, Carlsberg Chongqing Brewery has
received the Civil Judgment from Chongqing No. 5
Intermediate People’s Court ((2023) Y05 MC No. 42).
However, Yuxin Group does not accept the first-
instance judgment and has filed an appeal. As of now,
a hearing date for second-instance proceeding has not
been determined.
80 / 238
ANNUAL REPORT 2023
(II) Litigation and arbitration not disclosed in provisional announcements or with subsequent development
√ Applicable □ Not applicable
Monetary unit: RMB Ten Thousand
During the reporting period:
Whether the
Party litigation Information on
Amount
jointly Type of (arbitration) Results of the execution of
Plaintiff Defendant Basic information of the litigation involved in Information on litigation (arbitration)
and litigation forms the litigation (arbitration) adjudication of
(applicant) (respondent) (arbitration) the litigation progress
severally (arbitration) expected and impacts the litigation
(arbitration)
liable liabilities and (arbitration)
amounts
Chongqing Chongqing Contract On October 11, 2023, Chongqing 63,168 No The Company filed an application for The Company expects
Jiawei Beer Brewery Co., dispute Jiawei, a subsidiary held by the jurisdiction objection to Chongqing that the litigation in
Co., Ltd. Ltd. Company, filed a lawsuit with No. 5 Intermediate People’s Court, the announcement will
Chongqing No. 5 Intermediate requesting to transfer the case to not have a material
People’s Court against the Chongqing No. 1 Intermediate adverse impact on the
Company for contract breaching, People’s Court for trial in accordance Company’s current
requiring the Company to pay a with the principle of “constant and future profits;
tentative total of RMB 631.68 jurisdiction.” On March 19, 2024, however, given that
million for losses and interests. For Chongqing No. 5 Intermediate the case has not yet
details, please refer to the People’s Court made a first-instance been tried in court, the
Announcement of Chongqing ruling rejecting the Company’s Company is unable to
Brewery Co., Ltd. on the application. The Company will file an accurately judge the
Involvement of Its Subsidiary in a appeal. specific impact for the
Litigation (Announcement No: time being.
L2023-031) disclosed by the
Company on December 7, 2023.
Chongqing Chongqing Contract On February 5, 2024, the Company 2,268 No The Company filed an application for The Company expects
Jiawei Beer Brewery Co., dispute received a subpoena and a copy of jurisdiction objection, and the that the litigation in
Co., Ltd. Ltd. the complaint from the People’s People’s Court of Dadukou District, the announcement will
Court of Dadukou District, Chongqing made a first-instance not have a material
Chongqing (Case No: (2023) ruling rejecting the Company’s adverse impact on the
Y0104 MC No. 7700). Chongqing application; the Company filed an Company’s current
Jiawei, a subsidiary held by the appeal, and the court of second and future profits;
Company, filed a lawsuit on the instance has yet to issue a ruling of however, given that
grounds that the Company was not second instance. The case has yet to be the case has not yet
entitled to deduct the undue sales in the stage of substantive hearings. been tried in court, the
expenses from the beer Company is unable to
underwriting payments. The claims accurately judge the
81 / 238
ANNUAL REPORT 2023
were as follows: specific impact for the
I. Order that confirms that the time being.
Company’s act from January 2021
to offset the Company’s debt of the
beer underwriting payments to
Chongqing Jiawei from Chongqing
Jiawei’s undue debt of the beer
sales expenses to the Company has
no legal effect, and the Company
shall return to Chongqing Jiawei
the undue sales expenses,
tentatively being RMB
20,846,684.79 as of the effective
date of the order (tentatively the
amount of undue sales expenses as
of November 2023, and the final
amount shall be subject to the
undue amount on the effective date
of the order);
II. Order that demands the
Company to continue to fulfill the
agreement of “settling sales
expenses once every six months,
and delaying payments for half a
year”, and not to offset the
Company’s debt of the beer
underwriting payments to
Chongqing Jiawei from Chongqing
Jiawei’s undue debt of the beer
sales expenses to the Company
without authorization;
III. Order that demands the
Company to compensate
Chongqing Jiawei for the losses
caused due to the violation of the
agreement of “settling sales
expenses once every six months
and delaying payments for half a
82 / 238
ANNUAL REPORT 2023
year”, tentatively
RMB1,829,638.53 (based on the
amount of each offset, 50% higher
than the one-year LPR issued by
NIFC and tentatively calculated to
the date of maturity of each sales
expense before November 2023,
and the undue ones will be
tentatively calculated to November
30, 2023).
The Company shall bear all the
litigation costs in this case.
83 / 238
ANNUAL REPORT 2023
(III) Other remarks
□ Applicable √ Not applicable
X. Suspected Violation of Laws and Regulations, Punishment and Rectification of the Listed Company and
its Directors, Supervisors, Senior Management, Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
XI. Explanation on the Credibility of the Company and its Controlling Shareholder and Actual Controller
During the Reporting Period
□ Applicable √ Not applicable
XII. Material Related Transactions
(I) Related transactions in relation to daily operations
1. Matters disclosed in interim announcements without progress or changes in subsequent implementation
√ Applicable □ Not applicable
Overview Index
Pursuant to the Proposal on Estimating the Amount of Please refer to the announcements of “2022-046”
Daily Related Party Transactions of the Company in disclosed by the Company on the website of Shanghai
2023 deliberated and approved by the Company’s third Stock Exchange (www.sse.com.cn) on December 3,
extraordinary shareholders’ meeting of 2022 dated 2022 for details.
December 2, 2022, the amount of daily related party
transactions in 2023 is expected to not exceed 366.6660
million yuan.
2. Matters disclosed in provisional announcements with development or changes in subsequent
implementation
□ Applicable √ Not applicable
3. Matters not disclosed in provisional announcements
□ Applicable √ Not applicable
(II) Related transactions in relation to the acquisition and disposal of assets or equity
1. Matters disclosed in provisional announcements without progress or changes in subsequent
implementation
√ Applicable □ Not applicable
Overview Index
On September 26, 2023, the “Proposal on Related
Party Transactions About the Acquisition of 100% of Please refer to the announcement of “L2023-018”
Equity of Beijing Capital Brewing Company Limited disclosed by the Company on the website of Shanghai
and Jinbei Asia Pacific (Beijing) Catering Co., Ltd.” Stock Exchange (www.sse.com.cn) on September 28,
was deliberated and approved by the 11th meeting of 2023 for details.
the 10th Board of Directors.
2. Matters disclosed in provisional announcements with development or changes in subsequent
implementation
□ Applicable √ Not applicable
84 / 238
ANNUAL REPORT 2023
3. Matters not disclosed in provisional announcements
□ Applicable √ Not applicable
4. Where an agreement on performance is involved, the performance achievements during the reporting
period shall be disclosed
□ Applicable √ Not applicable
(III) Material related transactions in relation to joint external investment
1. Matters disclosed in provisional announcements without progress or changes in subsequent
implementation
□ Applicable √ Not applicable
2. Matters disclosed in provisional announcements with development or changes in subsequent
implementation
□ Applicable √ Not applicable
3. Matters not disclosed in provisional announcements
□ Applicable √ Not applicable
(IV) Transactions relating to creditor’s right and debts
1. Matters disclosed in provisional announcements without progress or changes in subsequent
implementation
□ Applicable √ Not applicable
2. Matters disclosed in provisional announcements with development or changes in subsequent
implementation
□ Applicable √ Not applicable
3. Matters not disclosed in provisional announcements
□ Applicable √ Not applicable
(V) Financial business between the Company and its related financial companies, holding financial
companies and related parties
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
XIII. Material Contracts and the Performance thereof
(I) Custody, contracting and leasing
1. Custody
□ Applicable √ Not applicable
2. Contracting
□ Applicable √ Not applicable
85 / 238
ANNUAL REPORT 2023
3. Leasing
□ Applicable √ Not applicable
(II) Guarantee
□ Applicable √ Not applicable
(III) Entrusted management of cash assets
1. Entrusted wealth management
(1) Overview of entrusted wealth management
√ Applicable □ Not applicable
Monetary unit: RMB
Type Source of fund Amount incurred Undue balance Unrecovered overdue amount
Bank Financial Self-owned funds 1,080,000,000.00 360,000,000.00 0
Product
Others
□ Applicable √ Not applicable
(2) Individual entrusted wealth management
√ Applicable □ Not applicable
86 / 238
ANNUAL REPORT 2023
Monetary unit: RMB
Fiduciary Type of entrusted Amount of Starting date Ending date Source Investment Existing Ways to Annualiz Expected Actual Undue Overdue Legal Plans of Provisions
wealth management entrusted of entrusted of entrusted of fund orientation restrictions determine ed rate of earnings (if earnings or amounts amounts procedures entrusted for
wealth wealth wealth remuneration return any) losses not gone wealth impairment
management management management recovered through management (if any)
in the future
ANZ Bank Principal-protected and 150,000,000 June 16, 2023 September 15, Operating Banking No Lump sum 2.30% 872,083.33 872,083.33 Yes Yes
(China) non-redeemable RMB 2023 revenue wealth recovery of
Co., Ltd. structured investments management principal and
Shanghai that are accumulated at interest at
Branch HIBOR daily intervals maturity
ANZ Bank Principal-protected and 210,000,000 June 28, 2023 September 28, Operating Banking No Lump sum 2.30% 1,234,333.33 1,234,333.33 Yes Yes
(China) non-redeemable RMB 2023 revenue wealth recovery of
Co., Ltd. structured investments management principal and
Shanghai that are accumulated at interest at
Branch HIBOR daily intervals maturity
ANZ Bank Principal-protected and 150,000,000 September 15, December 15, Operating Banking No Lump sum 2.30% 872,083.33 872,083.33 Yes Yes
(China) non-redeemable RMB 2023 2023 revenue wealth recovery of
Co., Ltd. structured investments management principal and
Shanghai that are accumulated at interest at
Branch HIBOR daily intervals maturity
ANZ Bank Principal-protected and 210,000,000 September 28, December 28, Operating Banking No Lump sum 2.25% 1,194,375.00 1,194,375.00 Yes Yes
(China) non-redeemable RMB 2023 2023 revenue wealth recovery of
Co., Ltd. structured investments management principal and
Shanghai that are accumulated at interest at
Branch HIBOR daily intervals maturity
ANZ Bank Principal-protected and 150,000,000 December 15, March 15, 2024 Operating Banking No Lump sum 2.40% 910,000.00 150,000,0 Yes Yes
(China) non-redeemable RMB 2023 revenue wealth recovery of 00
Co., Ltd. structured investments management principal and
Shanghai that are accumulated at interest at
Branch HIBOR daily intervals maturity
ANZ Bank Principal-protected and 210,000,000 December 28, March 28, 2024 Operating Banking No Lump sum 2.40% 1,274,000.00 210,000,0 Yes Yes
(China) non-redeemable RMB 2023 revenue wealth recovery of 00
Co., Ltd. structured investments management principal and
Shanghai that are accumulated at interest at
Branch HIBOR daily intervals maturity
87 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Others
□ Applicable √ Not applicable
(3) Impairment provision of entrusted wealth management
□ Applicable √ Not applicable
2. Entrusted loans
(1) Overview of entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(2) Individual entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(3) Impairment provision for entrusted loans
□ Applicable √ Not applicable
3. Others
□ Applicable √ Not applicable
(IV) Other material contracts
□ Applicable √ Not applicable
XIV. Description of the Usage of the Funds Raised
□ Applicable √ Not applicable
XV. Description of Other Significant Matters with a Material Effect on the Value Judgments and
Investment Decisions by Investors
□ Applicable √ Not applicable
SECTION VII CHANGES IN SHARES AND PARTICULARS OF
SHAREHOLDERS
I. Changes in Share Capital
(I) Table of changes in shares
1. Table of changes in shares
There was no charge in the total number of shares and share capital structure of the Company during the
reporting period.
88 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
2. Description of changes in shares
□ Applicable √ Not applicable
3. Impact of changes in shares on financial indicators such as earnings per share and net assets
per share for the latest year and the latest period (if any)
□ Applicable √ Not applicable
4. Other information deemed necessary for disclosure by the Company or required so by
securities regulators
□ Applicable √ Not applicable
(II) Changes in shares subject to trading restrictions
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
(I) Issuance of securities during the reporting period
□ Applicable √ Not applicable
Description of the issuance of securities during the reporting period (please specify the respective bonds
with different interest rates in the duration):
□ Applicable √ Not applicable
(II) Changes in the total number of shares, shareholding structure and the structure of assets and
liabilities of the Company
□ Applicable √ Not applicable
(III) Existing internal employee shares
□ Applicable √ Not applicable
III. Shareholders and Actual Controller
(I) Total number of shareholders
Total number of ordinary shareholders as at the 52,106
end of the reporting period (number of accounts)
Total number of ordinary shareholders as at the 55,410
end of last month prior to the date of disclosure of
the annual report (number of accounts)
(II) Table of shareholding of top ten shareholders and top ten holders of outstanding shares (or
shareholders not subject to trading restrictions) as at the end of the reporting period
Unit: Share
Shareholding of top ten shareholders (excluding share lending and refinancing)
Number of Shares pledged,
Number of shares marked
Increase/decrease
shares held at Percentage held or frozen Nature of
Full name of shareholder during the
the end of the (%) subject to shareholders
reporting period Share
period trading Number
status
restrictions
Carlsberg Brewery Hong Kong 0 205,882,718 42.54 0 None Overseas
89 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Limited legal person
CARLSBERG CHONGQING Overseas
0 84,500,000 17.46 0 None
LIMITED legal person
Hong Kong Securities Clearing Overseas
-11,782,926 29,610,232 6.12 0 Unknown
Company Limited legal person
China Construction Bank
Corporation – Penghua CSI 1,168,803 2,957,302 0.61 0 Unknown Others
Alcohol ETF Fund
Dajia Life Insurance Company
Limited – Universal 1,291,613 2,920,125 0.60 0 Unknown Others
Products
China Life Insurance Co., Ltd.
– Traditional – General
1,099,293 2,443,606 0.50 0 Unknown Others
Insurance Products – 005L
– CT001 Hu
National Social Insurance Fund
2,068,395 2,409,438 0.50 0 Unknown Others
Portfolio 110
Tianan Life Insurance Co., Ltd.
– Dividend Distribution 2,200,000 2,200,000 0.45 0 Unknown Others
Products
National Social Insurance Fund
-96,400 1,898,068 0.39 0 Unknown Others
Portfolio 118
Industrial and Commercial
Bank of China Limited –
822,334 1,678,213 0.35 0 Unknown Others
Huatai-Pinebridge CSI 300
ETF Fund
Shareholding of top ten shareholders not subject to trading restrictions
Number of outstanding shares held not Type and number of shares
Full name of shareholder
subject to trading restrictions Type Number
205,882,718 Ordinary shares 205,882,718
Carlsberg Brewery Hong Kong Limited
denominated in RMB
84,500,000 Ordinary shares 84,500,000
CARLSBERG CHONGQING LIMITED
denominated in RMB
Hong Kong Securities Clearing Company 29,610,232 Ordinary shares 29,610,232
Limited denominated in RMB
China Construction Bank Corporation – 2,957,302 Ordinary shares 2,957,302
Penghua CSI Alcohol ETF Fund denominated in RMB
Dajia Life Insurance Company Limited 2,920,125 Ordinary shares 2,920,125
– Universal Products denominated in RMB
China Life Insurance Co., Ltd. – 2,443,606 Ordinary shares 2,443,606
Traditional – General Insurance
denominated in RMB
Products – 005L – CT001 Hu
National Social Insurance Fund Portfolio 2,409,438 Ordinary shares 2,409,438
110 denominated in RMB
Tianan Life Insurance Co., Ltd. – 2,200,000 Ordinary shares 2,200,000
Dividend Distribution Products denominated in RMB
National Social Insurance Fund Portfolio 1,898,068 Ordinary shares 1,898,068
118 denominated in RMB
Industrial and Commercial Bank of China 1,678,213 Ordinary shares 1,678,213
Limited – Huatai-Pinebridge CSI 300
denominated in RMB
ETF Fund
Among the top ten shareholders not subject to trading restrictions, CARLSBERG CHONGQING
Description of connected relationship or LIMITED and Carlsberg Brewery HongKong Limited are both controlled by Carlsberg Breweries.
acting in concert among the
The Company is not aware of any connected relationship among the other shareholders or whether
aforementioned shareholders.
they act in concert.
Top ten shareholders participating in share lending and refinancing
√ Applicable □ Not applicable
Unit: Share
Top ten shareholders participating in share lending and refinancing
90 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Beginning number of shares Beginning number of Ending number of shares Ending number of shares
held by ordinary accounts shares refinanced and lent held by ordinary accounts refinanced and lent and yet
Full name of
and credit accounts and yet to be returned and credit accounts to be returned
shareholder
Total Percentage Total Percentage Percentage Total Percentage
Total number
number (%) number (%) (%) number (%)
China Construction
Bank Corporation
1,788,499 0.37 309,200 0.06 2,957,302 0.61 621,400 0.13
– Penghua CSI
Alcohol ETF Fund
Industrial and
Commercial Bank
of China Limited
855,879 0.18 20,000 0.004 1,678,213 0.35 33,400 0.01
– Huatai-
Pinebridge CSI 300
ETF Fund
Changes in the Top 10 Shareholders Compared to the Previous Period
√ Applicable □ Not applicable
Unit: Share
Changes in the Top 10 Shareholders Compared to the End of the Previous Period
Ending number of shares held by
Ending number of shares ordinary accounts and credit accounts
New / Withdrew refinanced and lent and yet to be of shareholders as well as number of
Full name of shareholder in the Reporting returned shares refinanced and lent and yet to be
Period returned
Percentage Percentage
Total number Total number
(%) (%)
Dajia Life Insurance Company Limited
New 0 0 2,920,125 0.60
– Universal Products
China Life Insurance Co., Ltd. –
Traditional – General Insurance New 0 0 2,443,606 0.50
Products – 005L – CT001 Hu
National Social Insurance Fund Portfolio
New 0 0 2,409,438 0.50
110
Tianan Life Insurance Co., Ltd. –
New 0 0 2,200,000 0.45
Dividend Distribution Products
Industrial and Commercial Bank of
China Limited – Huatai-Pinebridge New 33,400 0.01 1,711,613 0.35
CSI 300 ETF Fund
China Construction Bank Corporation
Withdrew 0 0 0 0
– Yinhua Wealth Theme Stock Fund
China Construction Bank Corporation
– China Universal Consumer Industry Withdrew 0 0 0 0
Fund
China Merchants Bank Co., Ltd. –
Hongde Ruize Hybrid Securities Withdrew 0 0 1,253,377 0.26
Investment Fund
China Merchants Bank Co., Ltd. –
Hongde Ruiyuan Three Year Holding
Withdrew 0 0 31,318,603 0.27
Period Flexible Allocation Hybrid
Securities Investment Fund
China Construction Bank Corporation
– Huashang Smart Life Flexible Withdrew 0 0 0 0
Allocation Mixed Fund
Number of shares held by top ten shareholders subject to trading restrictions and the trading restrictions
□ Applicable √ Not applicable
(III) Strategic investors or ordinary legal persons who became top ten shareholders due to placing
of new shares
□ Applicable √ Not applicable
IV. Controlling Shareholder and Actual Controller
(I) Controlling shareholder
1 Legal person
91 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
√ Applicable □ Not applicable
Name Carlsberg Breweries A/S
Person in charge or legal representative Henrik Poulsen
Date of establishment June 29, 2000
Principal business Brewing, producing and selling beer in Denmark
and in overseas markets, providing process and
technical services of the beer industry, and
operating or participating in beer-related sectors.
2 Natural person
□ Applicable √ Not applicable
3 Special explanation on the absence of controlling shareholders in the Company
□ Applicable √ Not applicable
4 Explanation on the changes in controlling shareholders during the reporting period
□ Applicable √ Not applicable
5 Block diagram of ownership and control relationship between the Company and its controlling
shareholder
√ Applicable □ Not applicable
(II) Actual controller
1 Legal person
√ Applicable □ Not applicable
Name Carlsberg Foundation
Person in charge or legal representative N/A
Date of establishment September 25, 1876
Principal business Nurturing and supporting natural sciences,
mathematics, philosophy, anthropology, and
92 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
sociology, and providing funding support.
Description of equities of other domestic and Holding 29% of the equity interest of Carlsberg
foreign listed companies controlled or invested by
the legal person in the reporting period
2 Natural person
□ Applicable √ Not applicable
3 Special explanation on the absence of actual shareholders in the Company
□ Applicable √ Not applicable
4 Explanation on the changes in control of the Company during the reporting period
□ Applicable √ Not applicable
5 Block diagram of ownership and control relationship between the Company and its actual
controller
√ Applicable □ Not applicable
6 Control over the Company by actual controller by way of trust or other means of asset
management
□ Applicable √ Not applicable
(III) Other description of controlling shareholder and actual controller
□ Applicable √ Not applicable
V. Number of Shares Pledged by the Company’s Controlling Shareholder or Largest Shareholder
and its Persons Acting in Concert Exceeding 80% of their Shareholding in the Company
□ Applicable √ Not applicable
93 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
VI. Other Corporate Shareholders with Shareholding of Over 10%
√ Applicable □ Not applicable
Principal
Name of Person in
Date of Organization Registered business or
corporate charge or legal
establishment code capital management
shareholder representative
activity
CARLSBERG N/A June 12, 1995 N/A GBP 1 Holding and
CHONGQING developing the
LIMITED shares and
businesses held
by
CARLSBERG
CHONGQING
LIMITED in
the Asia-Pacific
region
VII. Description of Restrictions on Shareholding Reduction
□ Applicable √ Not applicable
VIII. Implementation of Share Repurchase During the Reporting Period
□ Applicable √ Not applicable
SECTION VIII INFORMATION ON PREFERRED SHARES
□ Applicable √ Not applicable
SECTION IX PARTICULARS OF BONDS
I. Enterprise Bonds, Corporate Bonds and Debt Financing Instruments for Non-financial
Enterprises
□ Applicable √ Not applicable
II. Convertible Bonds of the Company
□ Applicable √ Not applicable
94 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
SECTION X FINANCIAL REPORT
I. Auditor’s Report
√ Applicable □ Not Applicable
Auditor’s Report
PCCPAAR [2024] No. 8-19
To the Shareholders of Chongqing Brewery Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Chongqing Brewery Co., Ltd. (the “Company”), which
comprise the consolidated and parent company balance sheets as at December 31, 2023, the
consolidated and parent company income statements, consolidated and parent company cash flow
statements, and consolidated and parent company statements of changes in equity for the year then
ended, as well as notes to financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Company as at December 31, 2023, and its financial performance and its
cash flows for the year then ended in accordance with China Accounting Standards for Business
Enterprises.
II. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under
those standards are further described in the Certified Public Accountant’s Responsibilities for the
Audit of the 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
other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our 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
express a separate opinion on these matters.
(I) Revenue recognition
1. Key audit matters
Please refer to item V 34 and VII 61 of this section for details. The Company’s operating revenue is
mainly from beer business. In 2023, the operating revenue of the Company amounted to
14,814,836,410.26 yuan, of which, 14,441,498,095.03 yuan was from beer business, accounting for
95 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
97.48% of operating revenue. As operating revenue is one of the key performance indicators of the
Company, there might be inherent risks that the Company’s management (the “Management”) adopts
inappropriate revenue recognition to achieve specific goals or expectations, we have identified
revenue recognition as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition and sales
rebate, assessed the design of these controls, determined whether they had been executed, and tested
the effectiveness of the operation;
(2) We checked sales contracts by sampling method, identified terms related to the point in time when
the customer obtained the control over relevant goods, and assessed whether the revenue recognition
policy was in compliance with regulations of China Accounting Standards for Business Enterprises;
(3) We performed analysis procedure on operating revenue and gross margin, so as to identify whether
there are significant or abnormal fluctuations and find out the reason of fluctuations;
(4) We selected items to check supporting documents related to revenue recognition, including sales
contracts, orders, delivery lists, discount record and approval sheets, sales invoices, client acceptance
receipts, etc.;
(5) We selected items and performed confirmation procedures on current sales amount in combination
with confirmation procedure of accounts receivable and contract liabilities;
(6) We performed cut-off tests on the revenue recognized around the balance sheet date, and checked
whether the revenue was recognized in the appropriate period; and
(7) We checked whether information related to operating revenue had been presented appropriately
in the financial statements.
(II) Impairment of goodwill
1. Key audit matters
Please refer to item V 27 and VII 27 of this section for details. As of December 31, 2023, the cost of
goodwill amounted to 718,230,066.13 yuan, with provision for impairment of 19,037,610.07 yuan,
and the carrying amount amounted to 699,192,456.06 yuan.
For asset group or asset group portfolio related to goodwill, the Management performs impairment
test on goodwill together with related asset group or asset group portfolio, and the recoverable amount
of related asset group or asset group portfolio is determined based on the present value of estimated
future cash flows. As the amount of goodwill is significant and impairment test involves significant
judgment of the Management, we have identified impairment of goodwill as a key audit matter.
96 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
2. Responsive audit procedures
Our main audit procedures for impairment of goodwill are as follows:
(1) We obtained understandings of key internal controls related to impairment of goodwill, assessed
the design of these controls, determined whether they had been executed, and tested the effectiveness
of the operation;
(2) We reviewed the outcome of the Management’s previous estimates on the present value of future
cash flows or their subsequent re-estimations;
(3) We assessed the competency, professional quality and objectivity of external appraisers engaged
by the Management;
(4) We assessed the appropriateness and consistency of impairment test method adopted by the
Management;
(5) We assessed the appropriateness of significant assumptions used in impairment test and reviewed
whether relevant assumptions were consistent with overall economy environment, industry condition,
management situation, historical experience, operation plan, assumptions used in approved budget
and related assumptions used in other areas of business activities;
(6) We assessed the appropriateness, relevance and reliability of data used by the Management in the
impairment test and reviewed the consistency of related information in the impairment test;
(7) We tested whether the Management’s calculation of present value of estimated future cash flows
was accurate; and
(8) We checked whether information related to impairment of goodwill had been presented
appropriately in the financial statements.
IV. Other Information
The Management is responsible for the other information. The other information comprises the
information included in the Company’s annual report, but does not include 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 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 the
other information, we are required to report that fact. We have nothing to report in this regard.
97 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management is responsible for preparing and presenting fairly the financial statements in
accordance with China Accounting Standards for Business Enterprises, as well as designing,
implementing and maintaining internal control relevant to 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 and
using the going concern basis of accounting unless the Management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
VI. Certified Public Accountant’s Responsibilities for the Audit of the 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 China Standards on Auditing 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.
We exercise professional judgment and maintain professional skepticism throughout the audit
performed in accordance with China Standards on Auditing. We also:
(I) 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.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.
(IV) 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
98 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
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 to draw 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.
(V) 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.
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain sole
responsibility for our audit opinion.
We communicate with those charged with governance regarding the planned audit scope, time
schedule and significant audit findings, including any deficiencies in internal control of concern 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 to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with 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.
Pan-China Certified Public Accountants LLP Chinese Certified Public Accountant: Huang Qiaomei
(Engagement Partner)
Hangzhou China Chinese Certified Public Accountant: Zhao Xingming
Date of Report: March 28, 2024
99 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
II. Financial Statements
Consolidated balance sheet
As at December 31, 2023
Prepared by: Chongqing Brewery Co., Ltd.
Monetary unit: RMB
Note
Items December 31, 2023 December 31, 2022
No.
Current assets:
Cash and bank balances 1 2,712,720,235.65 3,397,877,592.02
Settlement funds
Loans to other banks
Held-for-trading financial assets 2 360,202,000.00
Derivative financial assets 3 14,392,732.78 3,829,356.40
Notes receivable
Accounts receivable 5 64,628,136.06 65,511,539.08
Receivables financing
Advances paid 8 41,831,987.46 43,187,607.98
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 9 23,987,973.67 17,619,026.18
Including: Interest receivable
Dividend receivable
Financial assets under reverse repo
Inventories 10 2,100,354,952.29 2,166,477,563.20
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 13 146,488,217.09 109,533,473.56
Total current assets 5,464,606,235.00 5,804,036,158.42
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 17 140,608,195.59 296,599,881.05
Other equity instrument investments 18 16,625,962.83 14,303,331.73
Other non-current financial assets 19
Investment property
Fixed assets 21 3,673,993,109.60 3,680,691,105.17
Construction in progress 22 783,503,734.86 395,295,204.91
Productive biological assets
Oil & gas assets
Right-of-use assets 25 153,497,044.09 100,306,926.11
Intangible assets 26 677,053,982.74 685,169,039.95
Development expenditures
Goodwill 27 699,192,456.06 699,192,456.06
Long-term prepayments
Deferred tax assets 29 679,012,008.03 732,447,606.34
Other non-current assets 30 98,818,865.15 89,540,749.40
Total non-current assets 6,922,305,358.95 6,693,546,300.72
Total assets 12,386,911,593.95 12,497,582,459.14
100 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Note
Items December 31, 2023 December 31, 2022
No.
Current liabilities:
Short-term borrowings
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities 34 15,408,026.80 2,616,336.56
Notes payable
Accounts payable 36 2,607,629,899.17 2,497,671,747.37
Advances received
Contract liabilities 38 1,666,791,670.83 1,614,042,546.14
Financial liabilities under repo
Absorbing deposit and interbank
deposit
Deposits for agency security
transaction
Deposits for agency security
underwriting
Employee benefits payable 39 409,937,660.39 399,367,324.65
Taxes and rates payable 40 86,479,764.60 255,387,461.35
Other payables 41 3,326,996,153.10 3,490,319,176.38
Including: Interest payable
Dividend payable
Handling fees and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
43 42,382,811.96 24,005,592.21
year
Other current liabilities 44 26,113,341.32 27,809,237.78
Total current liabilities 8,181,739,328.17 8,311,219,422.44
Non-current liabilities:
Insurance policy reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 47 121,370,635.09 77,928,597.87
Long-term payables
Long-term employee benefits payable 49 150,981,389.59 154,407,707.35
Provisions 50 25,219,093.79 31,657,899.75
Deferred income 51 247,646,473.34 256,611,695.14
Deferred tax liabilities 29 7,806,126.04 42,694,067.15
Other non-current liabilities
Total non-current liabilities 553,023,717.85 563,299,967.26
Total liabilities 8,734,763,046.02 8,874,519,389.70
Equity:
Share capital 53 483,971,198.00 483,971,198.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 55 16,022,535.00 7,728,100.00
Less: Treasury shares
101 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Note
Items December 31, 2023 December 31, 2022
No.
Other comprehensive income 57 -16,085,442.20 -13,542,920.53
Special reserve
Surplus reserve 59 241,985,599.00 241,985,599.00
General risk reserve
Undistributed profit 60 1,414,306,729.77 1,336,034,523.44
Total equity attributable to the parent
2,140,200,619.57 2,056,176,499.91
company
Non-controlling interest 1,511,947,928.36 1,566,886,569.53
Total equity 3,652,148,547.93 3,623,063,069.44
Total liabilities & equity 12,386,911,593.95 12,497,582,459.14
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
102 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Parent company balance sheet
As at December 31, 2023
Prepared by: Chongqing Brewery Co., Ltd.
Monetary unit: RMB
Note
Items December 31, 2023 December 31, 2022
No.
Current assets:
Cash and bank balances 857,098,959.37 705,386,630.22
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Advances paid
Other receivables 2 4,028,306.41 4,353,422.01
Including: Interest receivable
Dividend receivable
Inventories
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 519,529.83 451,891.89
Total current assets 861,646,795.61 710,191,944.12
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 3 1,695,066,358.71 1,695,066,358.71
Other equity instrument investments
Other non-current financial assets
Investment property
Fixed assets 468,687.34 597,383.01
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets 3,541,244.29 3,612,273.62
Intangible assets
Development expenditures
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets
Total non-current assets 1,699,076,290.34 1,699,276,015.34
Total assets 2,560,723,085.95 2,409,467,959.46
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 929,605.49 1,970,831.46
Advances received
Contract liabilities
103 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Note
Items December 31, 2023 December 31, 2022
No.
Employee benefits payable 16,607,704.29 16,766,079.43
Taxes and rates payable 1,113,199.54 992,135.97
Other payables 30,261,666.28 29,398,503.34
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one
560,768.59 345,803.89
year
Other current liabilities
Total current liabilities 49,472,944.19 49,473,354.09
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 3,289,499.59 3,384,255.31
Long-term payables
Long-term employee benefits payable 57,528,374.45 58,798,007.24
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 60,817,874.04 62,182,262.55
Total liabilities 110,290,818.23 111,655,616.64
Equity:
Share capital 483,971,198.00 483,971,198.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 37,567,853.97 29,273,418.97
Less: Treasury shares
Other comprehensive income -19,590,000.00 -18,577,000.00
Special reserve
Surplus reserve 241,985,599.00 241,985,599.00
Undistributed profit 1,706,497,616.75 1,561,159,126.85
Total equity 2,450,432,267.72 2,297,812,342.82
Total liabilities & equity 2,560,723,085.95 2,409,467,959.46
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
104 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Consolidated income statement
For the year ended December 31, 2023
Monetary unit: RMB
Note Current period Preceding period
Items
No. cumulative comparative
I. Total operating revenue 14,814,836,410.26 14,039,040,539.45
Including: Operating revenue 61 14,814,836,410.26 14,039,040,539.45
Interest income
Premiums earned
Revenue from handling fees and
commissions
II. Total operating cost 11,484,736,246.22 10,788,719,947.64
Including: Operating cost 61 7,533,975,786.02 6,952,428,993.91
Interest expenses
Handling fees and commissions
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 62 957,549,230.02 920,858,290.32
Selling expenses 63 2,532,621,832.78 2,326,217,227.20
Administrative expenses 64 494,670,737.76 534,570,348.93
R&D expenses 65 26,232,056.27 110,747,936.06
Financial expenses 66 -60,313,396.63 -56,102,848.78
Including: Interest expenses 5,921,669.09 3,696,843.83
Interest income 71,308,016.27 65,718,589.46
Add: Other income 67 60,711,348.64 57,632,082.82
Investment income (or less: losses) 68 66,575,415.81 67,946,546.26
Including: Investment income from
62,294,135.01 56,279,080.37
associates and joint ventures
Gains from derecognition of financial
assets at amortized cost
Gains on foreign exchange (or less:
losses)
Gains on net exposure to hedging risk (or
less: losses)
Gains on changes in fair value (or less:
70 202,000.00
losses)
Credit impairment loss 71 -1,706,340.65 2,461,066.24
Assets impairment loss 72 -100,835,657.08 -81,390,922.88
Gains on asset disposal (or less: losses) 73 -2,252,522.60 1,996,546.49
III. Operating profit (or less: losses) 3,352,794,408.16 3,298,965,910.74
Add: Non-operating revenue 74 28,772,834.64 7,148,130.08
Less: Non-operating expenditures 75 5,876,690.28 7,335,219.97
IV. Profit before tax (or less: total loss) 3,375,690,552.52 3,298,778,820.85
Less: Income tax expenses 76 664,121,997.33 711,850,637.28
V. Net profit (or less: net loss) 2,711,568,555.19 2,586,928,183.57
(I) Categorized by the continuity of operations
1. Net profit from continuing operations
2,711,562,077.01 2,585,570,202.69
(or less: net loss)
2. Net profit from discontinued
6,478.18 1,357,980.88
operations (or less: net loss)
(II) Categorized by the portion of equity ownership
105 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Note Current period Preceding period
Items
No. cumulative comparative
1. Net profit attributable to owners of
1,336,597,321.13 1,263,619,606.46
parent company (or less: net loss)
2. Net profit attributable to non-
1,374,971,234.06 1,323,308,577.11
controlling shareholders (or less: net loss)
VI. Other comprehensive income after tax 77 -4,015,073.10 1,934,967.86
(I) Items attributable to the owners of the
77 -2,542,521.67 295,189.31
parent company
1. Not to be reclassified subsequently to
77 -1,791,434.05 -179,586.53
profit or loss
(1) Remeasurements of the net defined
77 -2,687,156.73 -601,083.45
benefit plan
(2) Items under equity method that will
not be reclassified to profit or loss
(3) Changes in fair value of other equity
77 895,722.68 421,496.92
instrument investments
(4) Changes in fair value of own credit
risk
2. To be reclassified subsequently to profit or
77 -751,087.62 474,775.84
loss
(1) Items under equity method that may
be reclassified to profit or loss
(2) Changes in fair value of other debt
investments
(3) Profit or loss from reclassification of
financial assets into other comprehensive
income
(4) Provision for credit impairment of
other debt investments
(5) Cash flow hedging reserve 77 -751,087.62 474,775.84
(6) Translation reserve
(7) Others
(II) Items attributable to non-controlling
77 -1,472,551.43 1,639,778.55
shareholders
VII. Total comprehensive income 2,707,553,482.09 2,588,863,151.43
(I) Items attributable to the owners of the
1,334,054,799.46 1,263,914,795.77
parent company
(II) Items attributable to non-controlling
1,373,498,682.63 1,324,948,355.66
shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 2.76 2.61
(II) Diluted EPS (yuan per share) 2.76 2.61
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
106 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Parent company income statement
For the year ended December 31, 2023
Monetary unit: RMB
Note Current period Preceding period
Items
No. cumulative comparative
I. Operating revenue
Less: Operating cost
Taxes and surcharges 578,846.16 630,058.00
Selling expenses
Administrative expenses 66,594,601.47 88,601,849.69
R&D expenses
Financial expenses 4,309,251.12 3,240,694.54
Including: Interest expenses 10,158,944.40 7,534,478.52
Interest income 8,031,967.25 6,516,985.30
Add: Other income 506,819.43 226,665.56
Investment income (or less: losses) 5 1,475,239,800.00 1,155,407,400.00
Including: Investment income from
associates and joint ventures
Gains from derecognition of financial
assets at amortized cost
Gains on net exposure to hedging risk (or
less: losses)
Gains on changes in fair value (or less:
losses)
Credit impairment loss -216,239.90 -217,728.25
Assets impairment loss -330.53
Gains on asset disposal (or less: losses) 2,313,747.57
II. Operating profit (or less: losses) 1,404,047,680.78 1,065,257,152.12
Add: Non-operating revenue 50,084.90
Less: Non-operating expenditures 221,086.76
III. Profit before tax (or less: total loss) 1,403,826,594.02 1,065,307,237.02
Less: Income tax expenses 162,989.32 -409.69
IV. Net profit (or less: net loss) 1,403,663,604.70 1,065,307,646.71
(I) Net profit from continuing operations (or
1,403,657,126.52 1,063,949,665.83
less: net loss)
(II) Net profit from discontinued operations
6,478.18 1,357,980.88
(or less: net loss)
V. Other comprehensive income after tax -1,013,000.00 -1,382,000.00
(I) Not to be reclassified subsequently to
-1,013,000.00 -1,382,000.00
profit or loss
1. Remeasurements of the net defined
-1,013,000.00 -1,382,000.00
benefit plan
2. Items under equity method that will not
be reclassified to profit or loss
3. Changes in fair value of other equity
instrument investments
4. Changes in fair value of own credit risk
(II) To be reclassified subsequently to profit
or loss
1. Items under equity method that may be
reclassified to profit or loss
2. Changes in fair value of other debt
investments
3. Profit or loss from reclassification of
107 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Note Current period Preceding period
Items
No. cumulative comparative
financial assets into other comprehensive
income
4. Provision for credit impairment of
other debt investments
5. Cash flow hedging reserve
6. Translation reserve
7. Others
VI. Total comprehensive income 1,402,650,604.70 1,063,925,646.71
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
108 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Consolidated cash flow statement
For the year ended December 31, 2023
Monetary unit: RMB
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of
15,686,302,742.66 15,115,689,237.16
services
Net increase of client deposit and interbank
deposit
Net increase of central bank loans
Net increase of loans from other financial
institutions
Cash receipts from original insurance contract
premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and
investment
Cash receipts from interest, handling fees and
commissions
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security
transaction
Receipts of tax refund 106,754,896.21 63,437,941.07
Other cash receipts related to operating
78 (1) 1,103,448,815.71 1,529,443,356.44
activities
Subtotal of cash inflows from operating
16,896,506,454.58 16,708,570,534.67
activities
Cash payments for goods purchased and
7,614,227,605.32 7,182,798,597.19
services received
Net increase of loans and advances to clients
Net increase of central bank deposit and
interbank deposit
Cash payments for insurance indemnities of
original insurance contracts
Net increase of loans to others
Cash payments for interest, handling fees and
commissions
Cash payments for policy bonus
Cash paid to and on behalf of employees 1,579,412,334.84 1,638,870,963.42
Cash payments for taxes and rates 2,817,018,376.20 2,385,111,985.13
Other cash payments related to operating
78 (1) 1,788,899,321.60 1,749,140,730.39
activities
Subtotal of cash outflows from operating
13,799,557,637.96 12,955,922,276.13
activities
Net cash flows from operating activities 79 (1) 3,096,948,816.62 3,752,648,258.54
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments 78 (2) 3,936,674.52 1,512,411,748.50
Cash receipts from investment income 218,630,426.75 344,606.28
Net cash receipts from the disposal of fixed
assets, intangible assets and other long-term 3,339,962.23 11,975,166.19
assets
Net cash receipts from the disposal of
109 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Note Current period Preceding period
Items
No. cumulative comparative
subsidiaries & other business units
Other cash receipts related to investing activities 78 (2) 2,518,499.55
Subtotal of cash inflows from investing
228,425,563.05 1,524,731,520.97
activities
Cash payments for the acquisition of fixed
assets, intangible assets and other long-term 919,404,420.08 912,818,007.38
assets
Cash payments for investments 78 (2) 360,000,000.00 1,000,000,000.00
Net increase of pledged borrowings
Net cash payments for the acquisition of
subsidiaries & other business units
Other cash payments related to investing
activities
Subtotal of cash outflows from investing
1,279,404,420.08 1,912,818,007.38
activities
Net cash flows from investing activities -1,050,978,857.03 -388,086,486.41
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Including: Cash received by subsidiaries from
non-controlling shareholders as investments
Cash receipts from borrowings
Other cash receipts related to financing
activities
Subtotal of cash inflows from financing
activities
Cash payments for the repayment of borrowings
Cash payments for distribution of dividends or
2,686,762,438.60 2,099,760,024.96
profits and for interest expenses
Including: Cash paid by subsidiaries to non-
1,428,437,323.80 1,131,817,628.96
controlling shareholders as dividend or profit
Other cash payments related to financing
78 (3) 55,940,556.09 33,725,924.40
activities
Subtotal of cash outflows from financing
2,742,702,994.69 2,133,485,949.36
activities
Net cash flows from financing activities -2,742,702,994.69 -2,133,485,949.36
IV. Effect of foreign exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash equivalents 79 (1) -696,733,035.10 1,231,075,822.77
Add: Opening balance of cash and cash
79 (1) 3,396,809,241.14 2,165,733,418.37
equivalents
VI. Closing balance of cash and cash
79 (1) 2,700,076,206.04 3,396,809,241.14
equivalents
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
110 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Parent company cash flow statement
For the year ended December 31, 2023
Monetary unit: RMB
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and
rendering of services
Receipts of tax refund 547,095.43 2,176,563.95
Other cash receipts related to operating
9,139,809.33 43,233,880.87
activities
Subtotal of cash inflows from operating
9,686,904.76 45,410,444.82
activities
Cash payments for goods purchased and
services received
Cash paid to and on behalf of employees 46,130,438.47 54,988,880.90
Cash payments for taxes and rates 792,344.45 3,110,071.44
Other cash payments related to operating
17,512,829.53 36,874,392.35
activities
Subtotal of cash outflows from operating
64,435,612.45 94,973,344.69
activities
Net cash flows from operating activities -54,748,707.69 -49,562,899.87
II. Cash flows from investing activities:
Cash receipts from withdrawal of
investments
Cash receipts from investment income 1,475,239,800.00 1,155,407,400.00
Net cash receipts from the disposal of fixed
assets, intangible assets and other long-term 5,481,653.12
assets
Net cash receipts from the disposal of
subsidiaries & other business units
Other cash receipts related to investing
activities
Subtotal of cash inflows from investing
1,475,239,800.00 1,160,889,053.12
activities
Cash payments for the acquisition of fixed
assets, intangible assets and other long-term 403,718.49 526,883.95
assets
Cash payments for investments
Net cash payments for the acquisition of
subsidiaries & other business units
Other cash payments related to investing
activities
Subtotal of cash outflows from investing
403,718.49 526,883.95
activities
Net cash flows from investing activities 1,474,836,081.51 1,160,362,169.17
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings
Other cash receipts related to financing
activities
Subtotal of cash inflows from financing
activities
Cash payments for the repayment of
111 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Note Current period Preceding period
Items
No. cumulative comparative
borrowings
Cash payments for distribution of dividends
1,268,302,476.25 975,373,606.56
or profits and for interest expenses
Other cash payments related to financing
495,373.97 215,250.32
activities
Subtotal of cash outflows from financing
1,268,797,850.22 975,588,856.88
activities
Net cash flows from financing activities -1,268,797,850.22 -975,588,856.88
IV. Effect of foreign exchange rate changes
on cash and cash equivalents
V. Net increase in cash and cash
151,289,523.60 135,210,412.42
equivalents
Add: Opening balance of cash and cash
704,601,171.89 569,390,759.47
equivalents
VI. Closing balance of cash and cash
855,890,695.49 704,601,171.89
equivalents
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
112 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Consolidated statement of changes in equity
For the year ended December 31, 2023
Monetary unit: RMB
Current period cumulative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Capital Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal interest
Others reserve reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 483,971,198.00 7,728,100.00 -13,542,920.53 241,985,599.00 1,336,034,523.44 2,056,176,499.91 1,566,886,569.53 3,623,063,069.44
Add: Cumulative changes of accounting
policies
Error correction of prior period
Others
II. Balance at the beginning of current year 483,971,198.00 7,728,100.00 -13,542,920.53 241,985,599.00 1,336,034,523.44 2,056,176,499.91 1,566,886,569.53 3,623,063,069.44
III. Current period increase (or less: decrease) 8,294,435.00 -2,542,521.67 78,272,206.33 84,024,119.66 -54,938,641.17 29,085,478.49
(I) Total comprehensive income -2,542,521.67 1,336,597,321.13 1,334,054,799.46 1,373,498,682.63 2,707,553,482.09
(II) Capital contributed or withdrawn by owners 8,294,435.00 8,294,435.00 8,294,435.00
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in
8,294,435.00 8,294,435.00 8,294,435.00
equity
4. Others
(III) Profit distribution -1,258,325,114.80 -1,258,325,114.80 -1,428,437,323.80 -2,686,762,438.60
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to owners -1,258,325,114.80 -1,258,325,114.80 -1,428,437,323.80 -2,686,762,438.60
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over
to retained earnings
5. Other comprehensive income carried over to
retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 483,971,198.00 16,022,535.00 -16,085,442.20 241,985,599.00 1,414,306,729.77 2,140,200,619.57 1,511,947,928.36 3,652,148,547.93
113 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Preceding period comparative
Equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling
Capital Special Surplus Undistributed Total equity
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal interest
Others reserve reserve reserve profit
shares bonds shares income reserve
I. Balance at the end of prior year 483,971,198.00 2,075,145.00 -13,838,109.84 241,985,599.00 1,040,351,272.07 1,754,545,104.23 1,373,750,135.57 3,128,295,239.80
Add: Cumulative changes of
6,040.91 6,040.91 5,707.26 11,748.17
accounting policies
Error correction of prior period
Others
II. Balance at the beginning of
483,971,198.00 2,075,145.00 -13,838,109.84 241,985,599.00 1,040,357,312.98 1,754,551,145.14 1,373,755,842.83 3,128,306,987.97
current year
III. Current period increase (or less:
5,652,955.00 295,189.31 295,677,210.46 301,625,354.77 193,130,726.70 494,756,081.47
decrease)
(I) Total comprehensive income 295,189.31 1,263,619,606.46 1,263,914,795.77 1,324,948,355.66 2,588,863,151.43
(II) Capital contributed or
5,652,955.00 5,652,955.00 5,652,955.00
withdrawn by owners
1. Ordinary shares contributed by
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
5,652,955.00 5,652,955.00 5,652,955.00
included in equity
4. Others
(III) Profit distribution -967,942,396.00 -967,942,396.00 -1,131,817,628.96 -2,099,760,024.96
1. Appropriation of surplus reserve
2. Appropriation of general risk
reserve
3. Appropriation of profit to owners -967,942,396.00 -967,942,396.00 -1,131,817,628.96 -2,099,760,024.96
4. Others
(IV) Internal carry-over within
equity
1. Transfer of capital reserve to
capital
2. Transfer of surplus reserve to
capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan
carried over to retained earnings
5. Other comprehensive income
carried over to retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current
483,971,198.00 7,728,100.00 -13,542,920.53 241,985,599.00 1,336,034,523.44 2,056,176,499.91 1,566,886,569.53 3,623,063,069.44
period
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
114 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Parent company statement of changes in equity
For the year ended December 31, 2023
Monetary unit: RMB
Current period cumulative
Other equity instruments Less: Other
Items Special Undistributed
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Total equity
Others reserve profit
shares bonds shares income
I. Balance at the end of prior year 483,971,198.00 29,273,418.97 -18,577,000.00 241,985,599.00 1,561,159,126.85 2,297,812,342.82
Add: Cumulative changes of accounting
policies
Error correction of prior period
Others
II. Balance at the beginning of current
483,971,198.00 29,273,418.97 -18,577,000.00 241,985,599.00 1,561,159,126.85 2,297,812,342.82
year
III. Current period increase (or less:
8,294,435.00 -1,013,000.00 145,338,489.90 152,619,924.90
decrease)
(I) Total comprehensive income -1,013,000.00 1,403,663,604.70 1,402,650,604.70
(II) Capital contributed or withdrawn by
8,294,435.00 8,294,435.00
owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other
equity instruments
3. Amount of share-based payment
8,294,435.00 8,294,435.00
included in equity
4. Others
(III) Profit distribution -1,258,325,114.80 -1,258,325,114.80
1. Appropriation of surplus reserve
2. Appropriation of profit to owners -1,258,325,114.80 -1,258,325,114.80
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried
over to retained earnings
5. Other comprehensive income carried
over to retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 483,971,198.00 37,567,853.97 -19,590,000.00 241,985,599.00 1,706,497,616.75 2,450,432,267.72
Items Preceding period comparative
115 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Other equity instruments Less: Other
Special Undistributed
Share capital Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Total equity
Others reserve profit
shares bonds shares income
I. Balance at the end of prior year 483,971,198.00 23,620,463.97 -17,195,000.00 241,985,599.00 1,463,793,876.14 2,196,176,137.11
Add: Cumulative changes of
accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current
483,971,198.00 23,620,463.97 -17,195,000.00 241,985,599.00 1,463,793,876.14 2,196,176,137.11
year
III. Current period increase (or less:
5,652,955.00 -1,382,000.00 97,365,250.71 101,636,205.71
decrease)
(I) Total comprehensive income -1,382,000.00 1,065,307,646.71 1,063,925,646.71
(II) Capital contributed or withdrawn
5,652,955.00 5,652,955.00
by owners
1. Ordinary shares contributed by
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
5,652,955.00 5,652,955.00
included in equity
4. Others
(III) Profit distribution -967,942,396.00 -967,942,396.00
1. Appropriation of surplus reserve
2. Appropriation of profit to owners -967,942,396.00 -967,942,396.00
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan
carried over to retained earnings
5. Other comprehensive income
carried over to retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current period 483,971,198.00 29,273,418.97 -18,577,000.00 241,985,599.00 1,561,159,126.85 2,297,812,342.82
Legal representative: Joo Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping
116 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
III. Company profile
1. Overview
√ Applicable □ Not Applicable
Chongqing Brewery Co., Ltd. (the “Company”) was a limited liability company by shares transformed from
Chongqing Brewery Plant and established by the sole initiator Chongqing Beer (Group) Co., Ltd. through private
placement under the approval of Chongqing Economic System Reform Commission. The Company currently holds
a business license with unified social credit code of 915000002028235667, with registered capital of 483.97 million
yuan, total share of 483.97 million shares (each with par value of one yuan), all of which are unrestricted outstanding
shares. The Company’s shares were listed on the Shanghai Stock Exchange in October 1997.
The Company belongs to the wine, beverage and refined tea manufacturing industry and is mainly engaged in
production and sales of beer.
The financial statements were approved and authorized for issue by the 15th meeting of the 10th session of the Board
of Directors dated March 28, 2024.
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. Going concern
√ Applicable □ Not Applicable
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue
as a going concern within the 12 months after the balance sheet date.
V. Significant accounting policies and estimates
Notes to specific accounting policies and estimates:
√ Applicable □ Not Applicable
Important note: The Company has set up accounting policies and estimates on transactions or events such as
impairment of financial instruments, inventories, depreciation of fixed assets, construction in progress, depreciation
of right-of-use assets, intangible assets, revenue recognition, etc., based on the Company’s actual production and
operation features.
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards
for Business Enterprises (CASBEs), and present truly and completely the financial position, financial performance
and cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
117 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
3. Operating cycle
√ Applicable □ Not Applicable
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current if
it is expected to be realized or due within 12 months.
4. Functional currency
The Company’s functional currency is Renminbi (RMB) Yuan.
5. Determination method and basis for selection of materiality
√ Applicable □ Not Applicable
Items Materiality
Significant accounts receivable with provision Accounts receivable with single amount in excess of 0.3% of
for bad debts made on an individual basis total assets are identified as significant accounts receivable.
Provisions for bad debts of accounts receivable collected or
Significant provisions for bad debts of accounts reversed with single amount in excess of 0.3% of total assets
receivable collected or reversed are identified as significant provisions for bad debts of
accounts receivable collected or reversed.
Significant other receivables with provision for Other receivables with single amount in excess of 0.3% of
bad debts made on an individual basis total assets are identified as significant other receivables.
Provisions for bad debts of other receivables collected or
Significant provisions for bad debts of other reversed with single amount in excess of 0.3% of total assets
receivables collected or reversed are identified as significant provisions for bad debts of other
receivables collected or reversed.
Significant accounts payable with age over one Accounts payable with single amount in excess of 0.3% of
year total assets are identified as significant accounts payable.
Significant contract liabilities with age over one Contract liabilities with single amount in excess of 0.3% of
year total assets are identified as significant contract liabilities.
Significant other payables with age over one Other payables with single amount in excess of 0.3% of total
year assets are identified as significant other payables.
Construction in progress with amount of changes or balance
Significant construction in progress in excess of 0.3% of total assets are identified as significant
construction in progress.
Investing activities with cash flows in excess of 5% of total
Significant cash flows from investing activities
assets are identified as significant investing activities.
Subsidiaries with total revenue/profit before tax in excess of
Significant subsidiaries, not wholly-owned 5% of the group’s total revenue/profit before tax are identified
subsidiaries as significant subsidiaries/significant not wholly-owned
subsidiaries.
Associates with single amount of long-term equity investment
Significant associates in excess of 0.3% of total assets are identified as significant
associates.
Contracts signed but not yet fulfilled with single amount in
Significant commitments excess of 5% of total assets or commitments of a special
nature are identified as significant commitments.
Contingencies with claim amount in excess of 5% of profit
Significant contingencies before tax or contingencies of a special nature are identified
as significant contingencies.
Events with amount of impacts in excess of 5% of total assets
Significant events subsequent to the balance
or events of a special nature are identified as significant
sheet date
events subsequent to the balance sheet date.
118 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
6. Accounting treatments of business combination under and not under common control
√ Applicable □ Not Applicable
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party
included in the consolidated financial statements of the ultimate controlling party at the combination date.
Difference between carrying amount of the equity of the combined party included in the consolidated financial
statements of the ultimate controlling party and that of the combination consideration or total par value of shares
issued is adjusted to capital reserve, if the balance of capital reserve is insufficient to offset, any excess is adjusted
to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the
acquisition date, the excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and
contingent liabilities, and the measurement of the combination cost are reviewed, then the difference is recognized
in profit or loss.
7. Judgement criteria for control and compilation method of consolidated financial statements
√ Applicable □ Not Applicable
(1) Judgement of control
An investor controls an investee if and only if the investor has all the following: 1) power over the investee; 2)
exposure, or rights, to variable returns from its involvement with the investee; and 3) the ability to use its power
over the investee to affect the amount of the investor’s returns.
(2) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial
statements are compiled by the parent company according to “CASBE 33 – Consolidated Financial Statements”,
based on relevant information and the financial statements of the parent company and its subsidiaries.
8. Classification of joint arrangements and accounting treatment of joint operations
□ Applicable √ Not Applicable
9. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment.
Cash equivalents refer to short-term, highly liquid investments that can be readily converted to cash and that are
subject to an insignificant risk of changes in value.
10. Foreign currency translation
√ Applicable □ Not Applicable
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the
transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreign currency
are translated at the spot exchange rate at the balance sheet date with difference, except for those arising from the
119 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
principal and interest of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items
carried at historical costs are translated at the spot exchange rate at the transaction date, with the RMB amounts
unchanged; non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at the
date when the fair value was determined, with difference included in profit or loss or other comprehensive income.
11. Financial instruments
√ Applicable □ Not Applicable
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financial assets at
amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair
value through profit or loss.
Financial liabilities are classified into the following four categories when initially recognized: (1) financial liabilities
at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset does not
qualify for derecognition or when the continuing involvement approach applies; (3) financial guarantee contracts
not fall within the above categories (1) and (2), and commitments to provide a loan at a below-market interest rate,
which do not fall within the above category (1); (4) financial liabilities at amortized cost.
2. Recognition criteria, measurement method and derecognition of financial assets and financial liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial
liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair value;
for the financial assets and liabilities at fair value through profit or loss, the transaction expenses thereof are directly
included in profit or loss; for other categories of financial assets and financial liabilities, the transaction expenses
thereof are included into the initially recognized amount. However, at initial recognition, for accounts receivable
that do not contain a significant financing component or in circumstances where the Company does not consider the
financing components in contracts within one year, they are measured at the transaction price in accordance with
“CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses
on financial assets that are measured at amortized cost and are not part of hedging relationships shall be included
into profit or loss when the financial assets are derecognized, reclassified, amortized using effective interest method
or recognized with impairment loss.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, and
gains and losses on foreign exchange that calculated using effective interest method shall be included into profit or
loss, while other gains or losses are included into other comprehensive income. Accumulated gains or losses that
initially recognized as other comprehensive income should be transferred out into profit or loss when the financial
assets are derecognized.
120 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as part
of investment cost recovery) shall be included into profit or loss, while other gains or losses are included into other
comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive income should
be transferred out into retained earnings when the financial assets are derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value (including
interests and dividends) shall be included into profit or loss, except for financial assets that are part of hedging
relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including
derivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. The Company
measures such kind of liabilities at fair value. The amount of changes in the fair value of the financial liabilities that
are attributable to changes in the Company’s own credit risk shall be included into other comprehensive income,
unless such treatment would create or enlarge accounting mismatches in profit or loss. Other gains or losses on
those financial liabilities (including interests, changes in fair value that are attributable to reasons other than changes
in the Company’s own credit risk) shall be included into profit or loss, except for financial liabilities that are part of
hedging relationships. Accumulated gains or losses that originally recognized as other comprehensive income
should be transferred out into retained earnings when the financial liabilities are derecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the
continuing involvement approach applies
The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide a loan
at a below-market interest rate, which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance with
impairment requirements of financial instruments; b. the amount initially recognized less the amount of accumulated
amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses on
financial liabilities that are measured at amortized cost and are not part of hedging relationships shall be included
into profit or loss when the financial liabilities are derecognized and amortized using effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; or
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE
23 – Transfer of Financial Assets”.
121 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial
liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial
asset, it derecognizes the financial asset, and any right or liability arising from such transfer is recognized
independently as an asset or a liability. If it retained substantially all of the risks and rewards related to the ownership
of the financial asset, it continues recognizing the financial asset. Where the Company does not transfer or retain
substantially all of the risks and rewards related to the ownership of a financial asset, it is dealt with according to
the circumstances as follows respectively: (1) if the Company does not retain its control over the financial asset, it
derecognizes the financial asset, and any right or liability arising from such transfer is recognized independently as
an asset or a liability; (2) if the Company retains its control over the financial asset, according to the extent of its
continuing involvement in the transferred financial asset, it recognizes the related financial asset and recognizes the
relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the
amounts of the following two items is included in profit or loss: (1) the carrying amount of the transferred financial
asset as of the date of derecognition; (2) the sum of consideration received from the transfer of the financial asset,
and the accumulative amount of the changes of the fair value originally included in other comprehensive income
proportionate to the transferred financial asset (financial assets transferred refer to debt instrument investments at
fair value through other comprehensive income). If the transfer of financial asset partially satisfies the conditions
for derecognition, the entire carrying amount of the transferred financial asset is, between the portion which is
derecognized and the portion which is not, apportioned according to their respective relative fair value, and the
difference between the amounts of the following two items is included into profit or loss: (1) the carrying amount
of the portion which is derecognized; (2) the sum of consideration of the portion which is derecognized, and the
portion of the accumulative amount of the changes in the fair value originally included in other comprehensive
income which is corresponding to the portion which is derecognized (financial assets transferred refer to debt
instrument investments at fair value through other comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and
information are available to measure fair value. The inputs to valuation techniques used to measure fair value are
arranged in the following hierarchy and used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company
can access at the measurement date;
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active
markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than
quoted prices that are observable for the asset or liability, for example, interest rates and yield curves observable at
commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not
122 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
observable and cannot be corroborated by observable market data at commonly quoted intervals, historical volatility,
future cash flows to be paid to fulfill the disposal obligation assumed in business combination, financial forecast
developed using the Company’s own data, etc.
5. Impairment of financial instruments
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at amortized cost,
debt instrument investments at fair value through other comprehensive income, leases receivable, loan commitments
other than financial liabilities at fair value through profit or loss, financial guarantee contracts not belong to financial
liabilities at fair value through profit or loss or financial liabilities that arise when a transfer of a financial asset does
not qualify for derecognition or when the continuing involvement approach applies.
Expected credit losses refer to the weighted average of credit losses with the respective risks of a default occurring
as the weights. Credit loss refers to the difference between all contractual cash flows that are due to the Company
in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate. Among which, purchased or originated credit-impaired financial
assets are discounted at the credit-adjusted effective interest rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected credit
losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.
For accounts receivable and contract assets resulting from transactions regulated in “CASBE 14 – Revenues”, the
Company chooses simplified approach to measure the loss allowance at an amount equal to lifetime expected credit
losses.
For financial assets other than the above, on each balance sheet date, the Company shall assess whether the credit
risk on the financial instrument has increased significantly since initial recognition. The Company shall measure
the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses if the credit
risk on that financial instrument has increased significantly since initial recognition; otherwise, the Company shall
measure the loss allowance for that financial instrument at an amount equal to 12-month expected credit loss.
Considering reasonable and supportable forward-looking information, the Company compares the risk of a default
occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on the financial
instrument as at the date of initial recognition, so as to assess whether the credit risk on the financial instrument has
increased significantly since initial recognition.
The Company may assume that the credit risk on a financial instrument has not increased significantly since initial
recognition if the financial instrument is determined to have relatively low credit risk at the balance sheet date.
The Company shall estimate expected credit risk and measure expected credit losses on an individual or a collective
basis. When the Company adopts the collective basis, financial instruments are grouped with similar credit risk
features.
The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversed amounts
of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For a financial
asset measured at amortized cost, the loss allowance reduces the carrying amount of such financial asset presented
in the balance sheet; for a debt investment measured at fair value through other comprehensive income, the loss
123 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
allowance shall be recognized in other comprehensive income and shall not reduce the carrying amount of such
financial asset.
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However,
the Company offsets a financial asset and a financial liability and presents the net amount in the balance sheet when,
and only when, the Company: (1) currently has a legally enforceable right to set off the recognized amounts; and
(2) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the transferred
asset and the associated liability.
12. Notes receivable
□ Applicable √ Not Applicable
13. Accounts receivable
√ Applicable □ Not Applicable
Determination method and accounting treatment of expected credit loss of accounts receivable
√ Applicable □ Not Applicable
Please refer to item V 11 of this section for details.
Categories and determination basis of portfolios with provision for bad debts made on a collective basis using
similar credit risk features
√ Applicable □ Not Applicable
Basis for determination of Method for measuring expected
Categories
portfolio credit loss
Based on historical credit loss
experience, the current situation and
the forecast of future economic
Accounts receivable – Portfolio conditions, the Company prepares the
Ages
grouped with ages comparison table of ages and lifetime
expected credit loss rate of accounts
receivable, so as to calculate expected
credit loss.
Based on historical credit loss
experience, the current situation and
Accounts receivable – Portfolio
the forecast of future economic
grouped with balances due Related parties brought into
conditions, the Company calculates
from related parties within the the consolidation scope
expected credit loss through exposure
consolidation scope
at default and lifetime expected credit
loss rate.
Based on historical credit loss
experience, the current situation and
the forecast of future economic
Other receivables – Portfolio conditions, the Company prepares the
Ages
grouped with ages comparison table of ages and lifetime
expected credit loss rate of other
receivables, so as to calculate expected
credit loss.
124 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Basis for determination of Method for measuring expected
Categories
portfolio credit loss
Based on historical credit loss
experience, the current situation and
Other receivables – Portfolio
the forecast of future economic
grouped with balances due Related parties brought into
conditions, the Company calculates
from related parties within the the consolidation scope
expected credit loss through exposure
consolidation scope
at default and 12-month or lifetime
expected credit loss rate.
Portfolios grouped with similar credit risk features using age analysis method
√ Applicable □ Not Applicable
Expected credit loss rate of accounts Expected credit loss rate of other
Ages
receivable (%) receivables (%)
Within 1 year (inclusive, the same
5.00 5.00
hereinafter)
1-2 years 10.00 10.00
2-3 years 30.00 30.00
3-4 years 50.00 50.00
4-5 years 80.00 80.00
Over 5 years 100.00 100.00
Ages of accounts receivable/other receivables are calculated from the month when such receivables are accrued.
Judgement basis for receivables with provision for bad debts made on an individual basis
√ Applicable □ Not Applicable
For receivables whose credit risk is significantly different from that of portfolios, the Company accrues expected
credit losses on an individual basis.
14. Receivables financing
□ Applicable √ Not Applicable
15. Other receivables
√ Applicable □ Not Applicable
Determination method and accounting treatment of expected credit loss of other receivables
√ Applicable □ Not Applicable
Please refer to item V 11 and 13 of this section for details.
Categories and determination basis of portfolios with provision for bad debts made on a collective basis using
similar credit risk features
√ Applicable □ Not Applicable
Please refer to item V 11 and 13 of this section for details.
125 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Portfolios grouped with similar credit risk features using age analysis method
√ Applicable □ Not Applicable
Please refer to item V 11 and 13 of this section for details.
Judgement basis for receivables with provision for bad debts made on an individual basis
√ Applicable □ Not Applicable
Please refer to item V 11 and 13 of this section for details.
16. Inventories
√ Applicable □ Not Applicable
Classification, accounting method for dispatched inventories, inventory system, amortization method of low-
value consumables and packages
√ Applicable □ Not Applicable
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the
process of production, materials, supplies, etc. to be consumed in the production process or in the rendering of
services.
2. Accounting method for dispatched inventories
Inventories dispatched from storage are accounted for with weighted average method at the end of each month.
3. Inventory system
Perpetual inventory method is adopted.
4. Amortization method of packages
The recyclable wine bottles are included in the cost when losses incurred, and the turnover boxes and pallets are
amortized over the expected useful life after deducting expected net residual value.
5. Accounting method of packages lent out
The Company recognizes deposits for packages lent out as other payables.
At the balance sheet date, based on the number of packages lent out in the current period, the number of irrecoverable
packages is calculated at the current loss rate, which is estimated based on the market conditions and the historical
recycling records. Provision for inventory write-down shall be made at the cost of irrecoverable packages, and
allowances for other payables shall be accrued at the after-tax amount of non-refundable deposits, with the
difference recognized as assets impairment loss through profit and loss.
The packages lent out will be accounted for as a sale when there is objective evidence indicating that the packages
are irrecoverable, and the carrying amount (cost less provisions for write-down) and corresponding deposits payable
(cost less allowances) will be carried forward.
Recognition criteria and accrual method of provision for inventory write-down
√ Applicable □ Not Applicable
At the balance sheet date, inventories (excluding packages lent out that expect to be irrecoverable. Please refer to
126 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
item V 16.5 of this section for details on the accrual method of provisions for inventory write-down on these
packages) are measured at the lower of cost and net realizable value; provisions for inventory write-down are made
on the excess of its cost over the net realizable value. The net realizable value of inventories held for sale is
determined based on the amount of the estimated selling price less the estimated selling expenses and relevant taxes
and surcharges in the ordinary course of business; the net realizable value of inventories to be processed is
determined based on the amount of the estimated selling price less the estimated costs of completion, selling
expenses and relevant taxes and surcharges in the ordinary course of business; at the balance sheet date, when only
part of the same item of inventories have agreed price, their net realizable value are determined separately and are
compared with their costs to set the provision for inventory write-down to be made or reversed.
Categories of portfolios with provision for inventory write-down made on a collective basis and determination
basis, determination basis of net realizable value
□ Applicable √ Not Applicable
Calculation method and determination basis for net realizable value under portfolio grouped with ages
□ Applicable √ Not Applicable
17. Contract assets
□ Applicable √ Not Applicable
18. Non-current assets or disposal groups held for sale
□ Applicable √ Not Applicable
Recognition criteria and accounting treatment of non-current assets or disposal groups held for sale
√ Applicable □ Not Applicable
1. Classification of non-current assets or disposal groups held for sale
Non-current assets or disposal groups are accounted for as held for sale when the following conditions are all met:
(1) the asset must be available for immediate sale in its present condition subject to terms that are usual and
customary for sales of such assets or disposal groups; (2) its sales must be highly probable, i.e., the Company has
made a decision on the sale plan and has obtained a firm purchase commitment, and the sale is expected to be
completed within one year.
When the Company acquires a non-current asset or disposal group with a view to resale, it shall classify the non-
current asset or disposal group as held for sale at the acquisition date only if the requirement of “expected to be
completed within one year” is met at that date and it is highly probable that other criteria for held for sale will be
met within a short period (usually within three months).
An asset or a disposal group is still accounted for as held for sale when the Company remains committed to its plan
to sell the asset or disposal group in the circumstance that non-related party transactions fail to be completed within
one year due to one of the following reasons: (1) a buyer or others unexpectedly set conditions that will extend the
sale period, while the Company has taken timely actions to respond to the conditions and expects a favorable
resolution of the delaying factors within one year since the setting; (2) a non-current asset or disposal group
127 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
classified as held for sale fails to be sold within one year due to rare cases, and the Company has taken action
necessary to respond to the circumstances during the initial one-year period and the criteria for held for sale are met.
2. Accounting treatments of non-current assets or disposal groups held for sale
(1) Initial measurement and subsequent measurement
For initial measurement and subsequent measurement as at the balance sheet date of a non-current asset or disposal
group held for sale, where the carrying amount is higher than the fair value less costs to sell, the carrying amount is
written down to the fair value less costs to sell, and the write-down is recognized in profit or loss as assets
impairment loss, meanwhile, provision for impairment of assets held for sale shall be made.
For a non-current asset or disposal group classified as held for sale at the acquisition date, the asset or disposal
group is measured on initial recognition at the lower of its initial measurement amount had it not been so classified
and fair value less costs to sell. Apart from the non-current asset or disposal group acquired through business
combination, the difference arising from the initial recognition of a non-current asset or disposal group at the fair
value less costs to sell shall be included into profit or loss.
The assets impairment loss recognized for a disposal group held for sale shall reduce the carrying amount of
goodwill in the disposal group first, and then reduce its carrying amount based on the proportion of each non-current
asset’s carrying amount in the disposal group.
No provision for depreciation or amortization shall be made on non-current assets held for sale or non-current assets
in disposal groups held for sale, while interest and other expenses attributable to the liabilities of a disposal group
held for sale shall continue to be recognized.
(2) Reversal of assets impairment loss
When there is a subsequent increase in fair value less costs to sell of a non-current asset held for sale at the balance
sheet date, the write-down shall be recovered, and shall be reversed not in excess of the impairment loss that has
been recognized after the non-current asset was classified as held for sale. The reversal shall be included into profit
or loss. Assets impairment loss that has been recognized before the classification is not reversed.
When there is a subsequent increase in fair value less costs to sell of a disposal group held for sale at the balance
sheet date, the write-down shall be recovered, and shall be reversed not in excess of the non-current assets
impairment loss that has been recognized after the disposal group was classified as held for sale. The reversal shall
be included into profit or loss. The reduced carrying amount of goodwill and non-current assets impairment loss
that has been recognized before the classification is not reversed.
For the subsequent reversal of the impairment loss that has been recognized in a disposal group held for sale, the
carrying amount is increased based on the proportion of carrying amount of each non-current asset (excluding
goodwill) in the disposal group.
(3) Non-current asset or disposal group that is no longer classified as held for sale and derecognized
A non-current asset or disposal group that does not meet criteria for held for sale and no longer classified as held
for sale, or a non-current asset that removed from a disposal group held for sale shall be measured at the lower of:
1) its carrying amount before it was classified as held for sale, adjusted for any depreciation, amortization or
impairment that would have been recognized had it not been classified as held for sale; and 2) its recoverable amount.
128 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
When a non-current asset or disposal group classified as held for sale is derecognized, unrecognized gains or losses
shall be included into profit or loss.
Recognition criteria and presentation method of discontinued operations
√ Applicable □ Not Applicable
1. Recognition criteria of discontinued operations
A component of the Company that has been disposed of, or is classified as held for sale and can be clearly
distinguished is recognized as a discontinued operation when it fulfills any of the following conditions:
(1) it represents a separate major line of business or a separate geographical area of operations;
(2) it is part of a related plan to dispose of a separate major line of business or a separate geographical area of
operations; or
(3) it is a subsidiary acquired exclusively with a review to resale.
2. Presentation method of discontinued operations
The Company presents gains or losses from continuing operations and gains or losses from discontinued operations
separately in the income statement. Operating gains or losses including impairment loss of discontinued operations
and its reversal amount, and gains or losses on disposal are presented as gains or losses from discontinued operations.
For discontinued operations presented in the current period, the information previously presented as gains or losses
from continuing operations is reclassified as gains or losses from discontinued operations for the comparative period
in the current financial statements. For discontinued operations that no longer meet criteria for held for sale, the
information previously presented as gains or losses from discontinued operations is reclassified as gains or losses
from continuing operations for the comparative period in the current financial statements.
19. Long-term equity investments
√ Applicable □ Not Applicable
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. Significant influence is
the power to participate in the financial and operating policy decisions of the investee but is not control or joint
control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes
payment in cash, transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of
combination, it regards the share of the carrying amount of the equity of the combined party included in the
consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The difference
between the initial cost of the long-term equity investments and the carrying amount of the combination
consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
When long-term equity investments are obtained through business combination under common control achieved in
129 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
stages, the Company determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stages as a
whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction”, on the date of
combination, investment cost is initially recognized at the share of the carrying amount of net assets of the combined
party included the consolidated financial statements of the ultimate controlling party. The difference between the
initial investment cost of long-term equity investments at the acquisition date and the carrying amount of the
previously held long-term equity investments plus the carrying amount of the consideration paid for the newly
acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to offset, any excess is
adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the acquisition-
date fair value of considerations paid.
When long-term equity investments are obtained through business combination not under common control achieved
in stages, the Company determined whether they are stand-alone financial statements or consolidated financial
statements in accounting treatment:
1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of
the previously held long-term equity investments plus the carrying amount of the consideration paid for the newly
acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “bundled transaction”.
If it is a “bundled transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is
not a “bundled transaction”, the carrying amount of the acquirer’s previously held equity interest in the acquiree is
remeasured at the acquisition-date fair value, and the difference between the fair value and the carrying amount is
recognized in investment income; when the acquirer’s previously held equity interest in the acquiree involves other
comprehensive income under equity method, the related other comprehensive income is reclassified as income for
the acquisition period, excluding other comprehensive income arising from changes in net liabilities or assets from
remeasurement of defined benefit plan of the acquiree.
(3) Long-term equity investments obtained through ways other than business combination: the initial cost of a long-
term equity investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained
on the basis of issuing equity securities is the fair value of the equity securities issued; that obtained through debt
restructuring is determined according to “CASBE 12 – Debt Restructuring”; and that obtained through non-cash
assets exchange is determined according to “CASBE 7 – Non-cash Assets Exchange”.
3. Subsequent measurement and recognition method of profit or loss
For a long-term equity investment with control relationship, it is accounted for with cost method; for a long-term
equity investment with joint control or significant influence relationship, it is accounted for with equity method.
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Judgement principles of “bundled transaction”
For disposal of a subsidiary in stages resulting in the Company’s loss of control, the Company determines whether
it is a “bundled transaction” based on the agreement terms for each stage, disposal consideration obtained separately,
object of the equity sold, disposal method, disposal time point, etc. If the terms, conditions and economic effect of
each transaction meet one or more of the following conditions, these transactions are usually considered as a
130 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
“bundled transaction”:
1) these transactions are entered into at the same time or in contemplation of each other;
2) these transactions form a single transaction designed to achieve an overall commercial effect;
3) the occurrence of one transaction is dependent on the occurrence of at least one other transaction; and
4) one transaction considered on its own is not economically justified, but it is economically justified when
considered together with other transactions.
(2) Accounting treatments of non-bundled transactions
1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is
recognized in profit or loss. If the disposal does not result in the Company’s loss of significant influence or joint
control, the remained equity is accounted for with equity method; however, if the disposal results in the Company’s
loss of control, joint control, or significant influence, the remained equity is accounted for according to “CASBE
22 – Financial Instruments: Recognition and Measurement”.
2) Consolidated financial statements
Before the Company’s loss of control, the difference between the disposal consideration and the proportionate share
of net assets in the disposed subsidiary from acquisition date or combination date to the disposal date is adjusted to
capital reserve (capital premium), if the balance of capital reserve is insufficient to offset, any excess is adjusted to
retained earnings.
When the Company loses control, the remained equity is remeasured at the loss-of-control-date fair value. The
aggregated value of disposal consideration and the fair value of the remained equity, less the share of net assets in
the disposed subsidiary held before the disposal from the acquisition date or combination date to the disposal date
is recognized in investment income in the period when the Company loses control over such subsidiary, and
meanwhile goodwill is offset correspondingly. Other comprehensive income related to equity investments in former
subsidiary is reclassified as investment income upon the Company’s loss of control.
(3) Accounting treatment of bundled transaction
1) Stand-alone financial statements
Stages as a whole are considered as one transaction resulting in loss of control in accounting treatment. However,
before the Company loses control over a subsidiary, the difference between the disposal consideration at each stage
and the carrying amount of long-term equity investments corresponding to the disposed investments is recognized
as other comprehensive income at the stand-alone financial statements and reclassified as profit or loss in the period
when the Company loses control over such subsidiary.
2) Consolidated financial statements
Stages as a whole are considered as one transaction resulting in loss of control in accounting treatment. However,
before the Company loses control over a subsidiary, the difference between the disposal consideration at each stage
and the proportionate share of net assets in the disposed subsidiary is recognized as other comprehensive income at
the consolidated financial statements and reclassified as profit or loss in the period when the Company loses control
over such subsidiary.
131 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
20. Investment property
Not Applicable
21. Fixed assets
(1) Recognition principles
√ Applicable □ Not Applicable
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to others,
or for administrative purposes, and expected to be used during more than one accounting year. Fixed assets are
recognized if, and only if, it is probable that future economic benefits associated with the assets will flow to the
Company and the cost of the assets can be measured reliably.
(2) Depreciation method
√ Applicable □ Not Applicable
Useful life Residual value Annual depreciation
Categories Depreciation method
(years) proportion rate
Buildings and
Straight-line method 20-40 0%-10% 2.25%-5.00%
structures
Machinery Straight-line method 5-15 0%-10% 6.00%-20.00%
Transport facilities Straight-line method 5-10 0%-10% 9.00%-20.00%
Other equipment Straight-line method 3-12 0%-10% 7.50%-33.33%
22. Construction in progress
√ Applicable □ Not Applicable
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits associated with
the item will flow to the Company, and the cost of the item can be measured reliably. Construction in progress is
measured at the actual cost incurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable
conditions. When the auditing of the construction in progress was not finished while reaching the designed usable
conditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly when the actual
cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
Standards and time point of transferring construction in
Categories
progress to fixed assets
Reaching its usable conditions after self-construction or
Buildings and structures
outsourcing construction is completed
Reaching its designed usable conditions after installation
Machinery
and commissioning
Reaching its designed usable conditions after installation
Other equipment
and commissioning
23. Borrowing costs
√ Applicable □ Not Applicable
1. Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction
132 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
or production of assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other
borrowing costs are recognized as expenses on the basis of the actual amount incurred, and are included in profit or
loss.
2. Borrowing costs capitalization period
(1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset disbursements
have already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or
production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is
interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing
costs is suspended; the borrowing costs incurred during such period are recognized as expenses, and are included
in profit or loss, till the acquisition and construction or production of the asset restarts.
(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for
the intended use or sale, the capitalization of the borrowing costs is ceased.
3. Capitalization rate and capitalized amount of borrowing costs
For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization,
the to-be-capitalized amount of interests is determined in light of the actual interest expenses incurred (including
amortization of premium or discount based on effective interest method) of the special borrowings in the current
period less the interest income on the unused borrowings as a deposit in the bank or as a temporary investment;
where a general borrowing is used for the acquisition and construction or production of assets eligible for
capitalization, the Company calculates and determines the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the excess of the accumulative capital
disbursements over the special borrowings by the capitalization rate of the general borrowing used.
24. Biological assets
□ Applicable √ Not Applicable
25. Oil & gas assets
□ Applicable √ Not Applicable
26. Intangible assets
(1) Useful life and its determination basis, estimation, amortization method or review procedure
√ Applicable □ Not Applicable
1. Intangible assets include land use right, trademark, software, etc. The initial measurement of intangible assets is
based on its cost.
2. For intangible assets with finite useful lives, their amortization amounts are amortized within their useful lives
systematically and reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets
are amortized by the straight-line method with details as follows:
Items Useful life and determination basis Amortization method
133 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Land use right 30-50 years; expected useful life Straight-line method
10 years, 28.33 years, 30 years;
Trademark Straight-line method
expected useful life
software 3-10 years; expected useful life Straight-line method
Intangible assets with indefinite useful lives are not amortized, but their useful life is reviewed annually. Judgment
basis for indefinite useful life is as follows:
Items Judgment basis
The life cycle of the product corresponding to the trademark cannot be determined and
Trademark
the validity period of trademark is more likely to be extended
(2) Permitted scope of R&D costs and relevant accounting treatments
√ Applicable □ Not Applicable
(1) Personnel costs
Personnel costs include wages and salaries, basic endowment insurance premiums, basic medical insurance
premiums, unemployment insurance premiums, occupational injuries premiums, maternity premiums and housing
provident funds for the Company’s R&D personnel, as well as labor costs for external R&D personnel.
If R&D personnel serve for multiple R&D projects at the same time, personnel costs are recognized based on their
working hour records provided by the Company’s administrative department, and proportionately allocated among
different R&D projects.
If personnel directly engaged in R&D activities and external R&D personnel are engaged in non-R&D activities at
the same time, the Company, based on their working hour records at different positions, allocates personnel costs
actually incurred between R&D expenses and production and operating expenses using reasonable methods such as
the ratio of actual working hours.
(2) Direct input costs
Direct input costs refer to relevant expenses actually incurred by the Company for R&D activities, which include:
1) materials, fuel and power costs directly consumed by R&D activities; 2) operation and maintenance, adjustment,
inspection, testing and repairing costs of instruments and equipment used for R&D activities; and 3) rental fees of
instruments and equipment leased under operating leases for R&D activities.
(3) Depreciation
Depreciation refers to the depreciation of instruments and equipment used for R&D activities.
For instruments and equipment both used for R&D activities and non-R&D activities, necessary records shall be
kept on their usage, and depreciation actually incurred is allocated between R&D expenses and production and
operating expenses in a reasonable manner based on the actual working hours, etc.
(4) Amortization of intangible assets
Amortization of intangible assets refer to the amortization of software used for R&D activities.
For intangible assets both used for R&D activities and non-R&D activities, necessary records shall be kept on their
usage, and amortization actually incurred is allocated between R&D expenses and production and operating
expenses in a reasonable manner based on the actual working hours, etc.
(5) Design expenses
134 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Design expenses refer to expenses incurred for the conception, development and manufacturing of new products
and techniques, design of processes, technical specifications, process specification formulation, operational
characteristics, etc., including expenses incurred for creative design activities to obtain innovative, creative and
breakthrough products.
(6) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to R&D activities,
including technical books and materials fees, data translation fees, expert consultation fees, high-tech R&D
insurance premiums, R&D outcomes search, analysis, review, demonstration, appraisal, evaluation, assessment, and
acceptance fees, intellectual property application, registration and agency fees, business travelling fees, conference
fees, etc.
4. Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred.
An intangible asset arising from the development phase of an internal project is recognized if the Company can
demonstrate all of the followings: (1) the technical feasibility of completing the intangible asset so that it will be
available for use or sale; (2) its intention to complete the intangible asset and use or sell it; (3) how the intangible
asset will generate probable future economic benefits, among other things, the Company can demonstrate the
existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally,
the usefulness of the intangible asset; (4) the availability of adequate technical, financial and other resources to
complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably the
expenditure attributable to the intangible asset during its development.
27. Impairment of part of long-term assets
√ Applicable □ Not Applicable
For long-term assets such as long-term equity investments, fixed assets, construction in progress, right-of-use assets,
intangible assets with finite useful lives, etc., if at the balance sheet date there is indication of impairment, the
recoverable amount is to be estimated. For goodwill recognized in business combination and intangible assets with
indefinite useful lives, no matter whether there is indication of impairment, impairment test is performed annually.
Impairment test on goodwill is performed on related asset group or asset group portfolio.
When the recoverable amount of such long-term assets is lower than their carrying amount, the difference is
recognized as provision for assets impairment through profit or loss.
28. Long-term prepayments
□ Applicable √ Not Applicable
29. Contract liabilities
√ Applicable □ Not Applicable
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between
its performance obligations and customers’ payments. Contract assets and contract liabilities under the same contract
shall offset each other and be presented on a net basis.
The Company presents an unconditional right to consideration (i.e., only the passage of time is required before the
135 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
consideration is due) as a receivable, and presents a right to consideration in exchange for goods that it has
transferred to a customer (which is conditional on something other than the passage of time) as a contract asset.
The Company presents an obligation to transfer goods to a customer for which the Company has received
consideration (or the amount is due) from the customer as a contract liability.
30. Employee benefits
Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other
long-term employee benefits.
(1) Accounting treatment of short-term employee benefits
√ Applicable □ Not Applicable
The Company recognizes, in the accounting period in which an employee provides service, short-term employee
benefits actually incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment of post-employment benefits
√ Applicable □ Not Applicable
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution
payable to a defined contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a
relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial
assumptions to estimate related demographic variables and financial variables, measure the obligations under the
defined benefit plan, and determine the periods to which the obligations are attributed. Meanwhile, the Company
discounts obligations under the defined benefit plan to determine the present value of the defined benefit plan
obligations and the current service cost;
2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the fair value
of defined benefit plan assets from the present value of the defined benefit plan obligation as a net defined benefit
plan liability or net defined benefit plan asset. When a defined benefit plan has a surplus, the Company measures
the net defined benefit plan asset at the lower of the surplus in the defined benefit plan and the asset ceiling;
3) At the end of the period, the Company recognizes the following components of employee benefits cost arising
from defined benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c.
changes as a result of remeasurement of the net defined benefit liability (asset). Item a and item b are recognized in
profit or loss or the cost of a relevant asset. Item c is recognized in other comprehensive income and is not to be
reclassified subsequently to profit or loss. However, the Company may transfer those amounts recognized in other
comprehensive income within equity.
(3) Accounting treatment of termination benefits
√ Applicable □ Not Applicable
Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits,
136 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
with a corresponding charge to profit or loss at the earlier of the following dates: (1) when the Company cannot
unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment
proposal; or (2) when the Company recognizes cost or expenses related to a restructuring that involves the payment
of termination benefits.
(4) Accounting treatment of other long-term employee benefits
√ Applicable □ Not Applicable
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a
defined contribution plan, those benefits are accounted for in accordance with the requirements relating to defined
contribution plan, while other benefits are accounted for in accordance with the requirements relating to defined
benefit plan. The Company recognizes the cost of employee benefits arising from other long-term employee benefits
as the followings: (1) service cost; (2) net interest on the net liability or net assets of other long-term employee
benefits; and (3) changes as a result of remeasurement of the net liability or net assets of other long-term employee
benefits. As a practical expedient, the net total of the aforesaid amounts is recognized in profit or loss or included
in the cost of a relevant asset.
31. Provisions
√ Applicable □ Not Applicable
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as providing
guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause the outflow of
the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the present
obligations, and its carrying amount is reviewed at the balance sheet date.
32. Share-based payment
√ Applicable □ Not Applicable
1. Types of share-based payment
Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.
2. Accounting treatment for settlements, modifications and cancellations of share-based payment plans
(1) Equity-settled share-based payment
For equity-settled share-based payment transaction with employees, if the equity instruments granted vest
immediately, the fair value of those equity instruments is measured at grant date and recognized as transaction cost
or expense, with a corresponding adjustment in capital reserve; if the equity instruments granted do not vest until
the counterparty completes a specified period of service or fulfills certain performance conditions, at the balance
sheet date within the vesting period, the fair value of those equity instruments measured at grant date based on the
best estimate of the number of equity instruments expected to vest is recognized as transaction cost or expense, with
a corresponding adjustment in capital reserve.
For equity-settled share-based payment transaction with parties other than employees, if the fair value of the services
received can be measured reliably, the fair value is measured at the date the Company receives the service; if the
fair value of the services received cannot be measured reliably, but that of equity instruments can be measured
137 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
reliably, the fair value of the equity instruments granted measured at the date the Company receives the service is
referred to, and recognized as transaction cost or expense, with a corresponding increase in equity.
(2) Cash-settled share-based payment
For cash-settled share-based payment transactions with employees, if share appreciation rights vest immediately,
the fair value of the liability incurred as the acquisition of services is measured at grant date and recognized as
transaction cost or expense, with a corresponding increase in liabilities; if share appreciation rights do not vest until
the employees have completed a specified period of service or fulfills certain performance conditions, the liability
is measured, at each balance sheet date until settled, at the fair value of the share appreciation rights measured at
grant date based on the best estimate of the number of share appreciation right expected to vest.
(3) Modifications and cancellations of share-based payment plan
If the modification increases the fair value of the equity instruments granted, the Company includes the incremental
fair value granted in the measurement of the amount recognized for services received as consideration for the equity
instruments granted; similarly, if the modification increases the number of equity instruments granted, the Company
includes the fair value of the additional equity instruments granted, in the measurement of the amount recognized
for services received as consideration for the equity instruments granted; if the Company modifies the vesting
conditions in a manner that is beneficial to the employee, the Company takes the modified vesting conditions into
account.
If the modification reduces the fair value of the equity instruments granted, the Company does not take into account
that decrease in fair value and continue to measure the amount recognized for services received as consideration for
the equity instruments based on the grant date fair value of the equity instruments granted; if the modification
reduces the number of equity instruments granted to an employee, that reduction is accounted for as a cancellation
of that portion of the grant; if the Company modifies the vesting conditions in a manner that is not beneficial to the
employee, the Company does not take the modified vesting conditions into account.
If the Company cancels or settles a grant of equity instruments during the vesting period (other than that cancelled
when the vesting conditions are not satisfied), the Company accounts for the cancellation or settlement as an
acceleration of vesting, and therefore recognizes immediately the amount that otherwise would have been
recognized for services received over the remainder of the vesting period.
33. Other financial instruments such as preferred shares and perpetual bonds
□ Applicable √ Not Applicable
34. Revenue
(1) Accounting policies for revenue recognition and measurement of revenue disclosed by business nature
√ Applicable □ Not Applicable
1. Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligation in the
contracts, and determine whether the performance obligation should be satisfied over time or at a point in time.
The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise, the
138 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
performance obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumes the
economic benefits provided by the Company’s performance as the Company performs; (2) the customer can control
goods as they are created by the Company’s performance; (3) goods created during the Company’s performance
have irreplaceable uses and the Company has an enforceable right to the payments for performance completed to
date during the whole contract period.
For each performance obligation satisfied over time, the Company shall recognize revenue over time by measuring
the progress towards complete satisfaction of that performance obligation. In the circumstance that the progress
cannot be measured reasonably, but the costs incurred in satisfying the performance obligation are expected to be
recovered, the Company shall recognize revenue only to the extent of the costs incurred until it can reasonably
measure the progress. For each performance obligation satisfied at a point in time, the Company shall recognize
revenue at the time point that the customer obtains control of relevant goods or services. To determine whether the
customer has obtained control of goods, the Company shall consider the following indications: (1) the Company
has a present right to payments for the goods, i.e., the customer is presently obliged to pay for the goods; (2) the
Company has transferred the legal title of the goods to the customer, i.e., the customer has legal title to the goods;
(3) the Company has transferred physical possession of the goods to the customer, i.e., the customer has physically
possessed the goods; (4) the Company has transferred significant risks and rewards of ownership of the goods to
the customer, i.e., the customer has obtained significant risks and rewards of ownership of the goods; (5) the
customer has accepted the goods; (6) other evidence indicating the customer has obtained control over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation. The
transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer, excluding amounts collected on behalf of third parties and those
expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the best
estimate of variable consideration at expected value or the most likely amount. However, the transaction price that
includes the amount of variable consideration only to the extent that it is high probable that a significant reversal in
the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable
consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component, the Company shall determine
the transaction price based on the price that a customer would have paid for if the customer had paid cash for
obtaining control over those goods or services. The difference between the transaction price and the amount of
promised consideration is amortized under effective interest method over contractual period. The effects of a
significant financing component shall not be considered if the Company expects, at the contract inception, that the
period between when the customer obtains control over goods or services and when the customer pays consideration
will be one year or less.
(4) For contracts containing two or more performance obligations, the Company shall determine the stand-alone
selling price at contract inception of the distinct good underlying each performance obligation and allocate the
transaction price to each performance obligation on a relative stand-alone selling price basis.
139 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
3. Revenue recognition method
The Company is mainly engaged in production and distribution of beer products. Revenue is recognized at the
amount net of rebate after the distributor obtains the control over the products, i.e., the Company delivers the beer
products to the distributor or its designated carrier based on contractual agreements.
(2) Different recognition method and measurement method of revenue from similar businesses under
different business models
□ Applicable √ Not Applicable
35. Contract costs
√ Applicable □ Not Applicable
Assets related to contract costs include costs of obtaining a contract and costs to fulfill a contract.
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are expected to be
recovered. The costs of obtaining a contract shall be included into profit or loss when incurred if the amortization
period of the asset is one year or less.
If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories, fixed assets
or intangible assets, etc., the Company shall recognize the costs to fulfill a contract as an asset if all the following
criteria are satisfied:
1. The costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials,
manufacturing overhead cost (or similar cost), cost that are explicitly chargeable to the customer under the contract,
and other costs that are only related to the contract;
2. The costs enhance resources of the Company that will be used in satisfying performance obligations in the future;
and
3. The costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with related goods or
services, with amortization included into profit or loss.
The Company shall make provision for impairment and recognize an impairment loss to the extent that the carrying
amount of an asset related to contract costs exceeds the remaining amount of consideration that the Company expects
to receive in exchange for the goods or services to which the asset relates less the costs expected to be incurred. The
Company shall recognize a reversal of an impairment loss previously recognized in profit or loss when the
impairment conditions no longer exist or have improved. The carrying amount of the asset after the reversal shall
not exceed the amount that would have been determined on the reversal date if no provision for impairment had
been made previously.
36. Government grants
√ Applicable □ Not Applicable
1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) the Company will
comply with the conditions attaching to the grants; (2) the grants will be received. Monetary government grants are
measured at the amount received or receivable. Non-monetary government grants are measured at fair value, and
140 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
can be measured at nominal amount in the circumstance that fair value cannot be assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company purchases, constructs or
otherwise acquires long-term assets under requirements of government. In the circumstances that there is no specific
government requirement, the Company shall determine based on the primary condition to acquire the grants, and
government grants related to assets are government grants whose primary condition is to construct or otherwise
acquire long-term assets. They offset carrying amount of relevant assets, or they are recognized as deferred income.
If recognized as deferred income, they are included in profit or loss on a systematic basis over the useful lives of
the relevant assets. Those measured at notional amount are directly included into profit or loss. For assets sold,
transferred, disposed or damaged within the useful lives, balance of unamortized deferred income is transferred into
profit or loss of the period in which the disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For government
grants that contain both parts related to assets and parts related to income, in which those two parts are blurred, they
are thus collectively classified as government grants related to income. For government grants related to income
used for compensating the related future cost, expenses or losses, they are recognized as deferred income and
included in profit or loss or used to offset relevant cost during the period in which the relevant cost, expenses or
losses are recognized; for government grants related to income used for compensating the related cost, expenses or
losses incurred to the Company, they are directly included in profit or loss or used to offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or used to offset
relevant cost based on business nature, while those not related to the ordinary course of business shall be included
into non-operating revenue or expenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank, who provides loans for
the Company with a policy subsidised interest rate, borrowings are carried at the amount received, with relevant
borrowings cost computed based on the principal and the policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company, the subsidised
interest shall offset relevant borrowing cost.
37. Deferred tax assets/Deferred tax liabilities
√ Applicable □ Not Applicable
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the
carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of
items not recognized as assets and liabilities but with their tax base being able to be determined according to tax
laws) and in accordance with the tax rate applicable to the period during which the assets are expected to be
recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which is most likely to obtain
and which can be deducted from the deductible temporary difference. At the balance sheet date, if there is any exact
141 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
evidence indicating that it is probable that future taxable income will be available against which deductible
temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will be available
to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to the extent
that it becomes probable that sufficient taxable income will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit or
loss, excluding those arising from the following circumstances: (1) business combination; and (2) the transactions
or items directly recognized in equity.
5. Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis when the
following conditions are all met: (1) the Company has the legal right to settle off current tax assets against current
tax liabilities; (2) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same tax
authority on either: 1) the same taxable entity; or 2) different taxable entities which intend either to settle current
tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future
period in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
38. Leases
√ Applicable □ Not Applicable
Judgement basis and accounting treatment of short-term leases and leases of low-value assets with simplified
approach when the Company as lessee
√ Applicable □ Not Applicable
At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as a short-
term lease, which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value
asset if the underlying asset is of low value when it is new. If the Company subleases an asset, or expects to sublease
an asset, the head lease does not qualify as a lease of a low-value asset.
For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or loss with
straight-line method over the lease term.
Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, the
Company recognizes right-of-use assets and lease liabilities at the commencement date.
(1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of
the lease liabilities; 2) any lease payments made at or before the commencement date, less any lease incentives
received; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying
asset to the condition required by the terms and conditions of the lease.
The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certain that
the ownership of the underlying asset can be acquired by the end of the lease term, the Company depreciates the
right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the
142 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term.
(2) Lease liabilities
At the commencement date, the Company measures the lease liability at the present value of the lease payments
that are not paid at that date, discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, the Company’s incremental borrowing rate shall be used. Unrecognized financing expenses, calculated
at the difference between the lease payment and its present value, are recognized as interest expenses over the lease
term using the discount rate which has been used to determine the present value of lease payment and included in
profit or loss. Variable lease payments not included in the measurement of lease liabilities are included in profit or
loss in the periods in which they are incurred.
After the commencement date, if there is a change in the following items: 1) actual fixed payments; 2) amounts
expected to be payable under residual value guarantees; 3) an index or a rate used to determine lease payments; 4)
assessment result or exercise of purchase option, extension option or termination option, the Company remeasures
the lease liability based on the present value of lease payments after changes, and adjusts the carrying amount of
the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is reduced to zero but there shall
be a further reduction in the lease liability, the remaining amount shall be recognized into profit or loss.
Classification criteria and accounting treatment of leases when the Company as lessor
√ Applicable □ Not Applicable
At the commencement date, the Company classifies a lease as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership of an underlying asset. Otherwise, it is classified as an operating lease.
(1) Operating lease
Lease receipts are recognized as lease income with straight-line method over the lease term. Initial direct costs
incurred shall be capitalized, amortized on the same basis as the recognition of lease income, and included into
profit or loss by installments. Variable lease payments related to operating lease which are not included in the lease
payment are charged as profit or loss in the periods in which they are incurred.
(2) Finance lease
At the commencement date, the Company recognizes the finance lease payment receivable based on the net
investment in the lease (sum of the present value of unguaranteed residual value and lease receipts that are not
received at the commencement date, discounted by the interest rate implicit in the lease), and derecognizes assets
held under the finance lease. The Company calculates and recognizes interest income using the interest rate implicit
in the lease over the lease term.
Variable lease payments not included in the measurement of the net investment in the lease are charged as profit or
loss in the periods in which they are incurred.
39. Other significant accounting policies and estimates
√ Applicable □ Not Applicable
1. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization, management
143 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
requirements and internal reporting system. An operating segment is a component of the Company:
(1) that engages in business activities from which it may earn revenues and incur expenses;
(2) whose financial performance is regularly reviewed by the Management to make decisions about resource to be
allocated to the segment and to assess its performance; and
(3) for which accounting information regarding financial position, financial performance and cash flows is available
through analysis.
2. Basis of the adoption of hedge accounting and its accounting treatment
(1) Hedge refers to cash flow hedge.
(2) A hedging relationship qualifies for hedge accounting if all of the following conditions are met: 1) the hedging
relationship consists only of eligible hedging instruments and eligible hedged instruments; 2) at the inception of the
hedge there is formal designation of hedging instruments and hedged item, and documentation of the hedging
relationship and the Company’s risk management objective and strategy for undertaking the hedge; 3) the hedging
relationship meets the hedging effectiveness requirements.
The Company recognizes that the hedging relationship meets effectiveness requirements if the all of the followings
are simultaneously satisfied: 1) there is an economic relationship between the hedged item and the hedging
instruments; 2) the effect of credit risk does not dominate the value changes that result from that economic
relationship between the hedged item and the hedging instruments; and 3) the hedge ratio of the hedging relationship
is the same as the ratio of the quantity of the hedged item that the Company actually hedges and the number of
hedging instruments that the Company actually uses to hedge that quantity of hedged item, but does not reflect an
imbalance between the weightings of the hedged item and the hedging instrument.
The Company shall assess whether a hedging relationship meets the hedge effectiveness requirements at inception
and on an ongoing basis. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to
the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the
hedging relationship shall be rebalanced.
(3) Hedge accounting
1) The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be
recognized in other comprehensive income as cash flow hedge reserve, while the ineffective portion shall be
recognized in profit or loss. The cash flow hedge reserve shall be recognized at the lower of the following (in
absolute amounts): a. the cumulative gain or loss on the hedging instrument from inception of the hedge; and b. the
cumulative change in present value of the expected future cash flows of the hedged item from inception of the hedge.
2) If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial
liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm
commitment for which fair value hedge accounting is applied, the Company shall transfer out the amount of cash
flow hedge reserve previously recognized in other comprehensive income, and include it in the initial cost of the
asset or the liability.
3) For other cash flow hedges, the amount of cash flow hedge reserve previously recognized in other comprehensive
income shall be transferred out into profit or loss in the same period the hedged forecast sale affects profit or loss.
144 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
40. Significant changes in accounting policies and estimates
(1) Significant changes in accounting policies
√ Applicable □ Not Applicable
Monetary unit: RMB
Financial statement items
Contents and reasons for the changes Amounts affected
significantly affected
Pursuant to the “Interpretation of China
Accounting Standards for Business Enterprises Deferred tax assets 40,290.31
No. 16” (the “Interpretation No. 16”) published
by the Ministry of Finance on November 30,
2022, the regulations about accounting for
deferred tax related to assets and liabilities arising Undistributed profit 20,717.28
from a single transaction to which the initial
recognition exemption does not apply take effect
since January 1, 2023, and earlier application is Non-controlling interest 19,573.03
permitted; the regulations about accounting for
income tax consequences of dividends on a
financial instrument classified by the issuer as an
equity instrument and the regulations about
accounting for modifications of share-based Income tax expenses -28,542.14
payment transactions from cash-settled to equity-
settled take effect since the date of publishment.
Other remarks
The amounts affected refer to those as of December 31, 2022 and in 2022.
(2) Significant changes in accounting estimates
□ Applicable √ Not Applicable
(3) The adjustments on the financial statements of the beginning of the earliest period in which the
Company adopts the revised standards or interpretations since 2023
√ Applicable □ Not Applicable
Reasons for adjusting financial statements at the beginning of the year
The Ministry of Finance issued the “Interpretation of China Accounting Standards for Business Enterprises No. 16”
(Cai Kuai [2022] No. 31) on November 30, 2022, in which, the regulations about accounting for deferred tax related
to assets and liabilities arising from a single transaction to which the initial recognition exemption does not apply
take effect since January 1, 2023. For taxable and deductible temporary differences associated with lease liabilities
and right-of-use assets arising from such single transactions and presented at the beginning of the earliest
comparative period, the cumulative effect of initially applying the Interpretation No. 16 and “CASBE 18 –
Enterprise Income Tax” shall be adjusted into retained earnings or other related items at the beginning of the earliest
comparative period presented.
41. Others
□ Applicable √ Not Applicable
145 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
VI. Taxes
1. Main taxes and tax rates
Details
√ Applicable □ Not Applicable
Taxes Tax bases Tax rates
Under general calculation method, the output tax
calculated based on the revenue from sales of goods
or rendering of services in accordance with the tax
Value-added tax law, net of the input tax that is allowed to be deducted 13%, 9%, 6%, 5% (simplified
(VAT) in the current period; under simplified calculation levy rate)
method, VAT is calculated based on the revenue from
sales of goods or rendering of taxable services and
the simplified levy rate
Consumption tax is calculated based on a percentage 220 yuan per ton, 250 yuan per
Consumption tax
of taxable sale income, or a rate of volume of sale ton, or 10%
For housing property levied on the basis of price,
housing property tax is levied at the rate of 1.2% of
the balance after deducting 20% or 30% of the cost;
Housing property tax 1.2%, 12%
for housing property levied on the basis of rent,
housing property tax is levied at the rate of 12% of
lease income.
Land use tax is levied by multiplying the taxable land
Land use tax 2.5-16 yuan per square meter
area actually occupied by the applicable tax amount
Urban maintenance Turnover tax actually paid plus exempt-credit tax
5%, 7%
and construction tax amount
Turnover tax actually paid plus exempt-credit tax
Education surcharge 3%
amount
Local education Turnover tax actually paid plus exempt-credit tax
2%
surcharge amount
Enterprise income
Taxable income 15%, 20%, 25%
tax
Different enterprise income tax rates applicable to different taxpayers
√ Applicable □ Not Applicable
Taxpayers Income tax rate (%)
Carlsberg (China) Breweries and Trading Co., Ltd. headquarters and
15
its Chengdu Branch, Xinjiang Branch and Wusu Branch
Ningxia Xixia Jianiang Brewery Co., Ltd. 15
Xinjiang Wusu Brewery Co., Ltd. 15
Xinjiang Wusu Beer Trading Co., Ltd. 15
Xinjiang Wusu Brewery (Korla) Co., Ltd. 15
Xinjiang Wusu Brewery (Yining) Co., Ltd. 15
Xinjiang Wusu Brewery (Aksu) Co., Ltd. 15
Xinjiang Wusu Brewery (Wusu) Co., Ltd. 15
Kunming Huashi Brewery Co., Ltd. 15
Liangping Branch, Hechuan Branch, Fuling Branch and Shizhu
15
Branch of Carlsberg Chongqing Brewery Co., Ltd.
Beijing Capital Brewing Golden Wheat Trading Co., Ltd. 20
Taxpayers other than the above-mentioned 25
146 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
2. Tax preferential policies
√ Applicable □ Not Applicable
1. Pursuant to the “Announcement on Continuing the Enterprise Income Tax Policy for the Western Development”
(Announcement of the Ministry of Finance, the State Taxation Administration and the National Development and
Reform Commission [2020] No. 23), from January 1, 2021 to December 31, 2030, enterprises incorporated in
western region belonging to encouraged industries are subject to a reduced rate of 15% for enterprise income tax.
The Company’s subsidiaries including Carlsberg (China) Breweries and Trading Co., Ltd. headquarters and its
Chengdu Branch, Xinjiang Branch and Wusu Branch, Ningxia Xixia Jianiang Brewery Co., Ltd., Xinjiang Wusu
Brewery Co., Ltd., Xinjiang Wusu Beer Trading Co., Ltd., Xinjiang Wusu Brewery (Korla) Co., Ltd., Xinjiang
Wusu Brewery (Yining) Co., Ltd., Xinjiang Wusu Brewery (Aksu) Co., Ltd., Xinjiang Wusu Brewery (Wusu) Co.,
Ltd., Kunming Huashi Brewery Co., Ltd. and Liangping Branch, Hechuan Branch, Fuling Branch and Shizhu
Branch of Carlsberg Chongqing Brewery Co., Ltd. are entitled to enjoy such preferential policy and subject to a
reduced rate of 15%.
2. Pursuant to the “Announcement on Enterprise Income Tax Preferential Policies for Small Enterprises with Meager
Profit and Individually-owned Businesses” (Announcement of the Ministry of Finance and the State Taxation
Administration [2023] No. 6), from January 1, 2023 to December 31, 2024, enterprise income tax for the portion of
the taxable income within 1 million yuan of small enterprises with meager profit is levied at 20% based on 25% of
that portion of income. Pursuant to the “Announcement on Further Implementation of Enterprise Income Tax
Preferential Policies for Small Enterprises with Meager Profit” (Announcement of the Ministry of Finance and the
State Taxation Administration [2022] No. 13), from January 1, 2022 to December 31, 2024, enterprise income tax
for the portion of the taxable income exceeding 1 million yuan but within 3 million yuan of small enterprises with
meager profit is levied at 20% based on 25% of that portion of income. The subsidiary Beijing Capital Brewing
Golden Wheat Trading Co., Ltd. is entitled to enjoy these preferential income tax policies as a small enterprise with
meager profit and subject to the reduced rate of 20% for enterprise income tax.
3. Others
□ Applicable √ Not Applicable
VII. Notes to items of consolidated financial statements
1. Cash and bank balances
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Cash on hand 10,176.00
Cash in bank 2,700,027,687.47 3,396,809,241.14
Accrued interest on seven-day
11,823,993.51 1,068,350.88
call deposits
Other cash and bank balances 858,378.67
Total 2,712,720,235.65 3,397,877,592.02
Including: Deposited
overseas
147 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Closing balance Opening balance
Deposited in finance
company
Other remarks
(1) Centralized fund management
Pursuant to the agreement on centralized fund management and multi-party entrusted loans entered into between
the Company and BNP Paribas (China) Limited, the Company’s parent account and primary account were under
the name of the subsidiary Carlsberg Chongqing Brewery Co., Ltd., and the Company managed its funds and the
funds of its affiliated entities in a centralized manner.
(2) Other remarks
Closing balance of interest accrued on seven-day call deposits of 11,823,993.51 yuan, deposits for letters of
guarantee of 316,100.00 yuan included in other cash and bank balances, and deposits for litigation of 503,436.10
yuan and other deposits of 500.00 yuan included in cash in bank were with use restrictions and not considered as
cash and cash equivalents, which had been excluded from cash and cash equivalents.
2. Held-for-trading financial assets
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Financial assets measured at fair value
360,202,000.00
through profit or loss
Including:
Structured deposits 360,202,000.00
Financial assets designated as at fair value
through profit or loss
Including:
Total 360,202,000.00
Other remarks
□ Applicable √ Not Applicable
3. Derivative financial assets
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Floating gains or losses on hedging
14,392,732.78 3,829,356.40
instruments
Total 14,392,732.78 3,829,356.40
Other remarks
Please refer to item XII 2 of this section for details on floating gains or losses on hedging instruments.
4. Notes receivable
(1) Details on categories
□ Applicable √ Not Applicable
148 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(2) Pledged notes at the balance sheet date
□ Applicable √ Not Applicable
(3) Endorsed or discounted but undue notes at the balance sheet date
□ Applicable √ Not Applicable
(4) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Notes receivable with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Notes receivable with provision for bad debts made on a collective basis
□ Applicable √ Not Applicable
Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of notes receivable with changes in provision for bad debts
□ Applicable √ Not Applicable
(5) Provision for bad debts
□ Applicable √ Not Applicable
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(6) Notes receivable actually written off in the current period
□ Applicable √ Not Applicable
Significant notes receivable written off
□ Applicable √ Not Applicable
Remarks on notes receivable written off
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
5. Accounts receivable
(1) Age analysis
√ Applicable □ Not Applicable
Monetary unit: RMB
149 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Ages Closing book balance Opening book balance
Within 1 year
Including:
Within 1 year 67,639,636.41 67,487,568.33
Subtotal 67,639,636.41 67,487,568.33
1-2 years 1,607,789.12
2-3 years 1,507,671.90
Over 3 years
3-4 years
4-5 years
Over 5 years 643,612.77
Total 69,147,308.31 69,738,970.22
(2) Details on categories of provision accrual methods
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Categories Carrying Carrying
Provision Provision
% to amount % to amount
Amount Amount proportion Amount Amount proportion
total total
(%) (%)
Receivables with
provision made on 978,412.63 1.41 978,412.63 100.00 694,834.92 1.00 694,834.92 100.00
an individual basis
Including:
Receivables with
provision made on a 68,168,895.68 98.59 3,540,759.62 5.19 64,628,136.06 69,044,135.30 99.00 3,532,596.22 5.12 65,511,539.08
collective basis
Including:
Total 69,147,308.31 100.00 4,519,172.25 6.54 64,628,136.06 69,738,970.22 100.00 4,227,431.14 6.06 65,511,539.08
Accounts receivable with provision made on an individual basis
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance
Debtors Provision for Provision Reasons for
Book balance
bad debts proportion (%) provision made
There is significant
Peng Yongsheng, from
978,412.63 978,412.63 100.00 uncertainty in
Qiaojia
recoverability.
Total 978,412.63 978,412.63 100.00 /
Remarks on accounts receivable with provision made on an individual basis
□ Applicable √ Not Applicable
Accounts receivable with provision made on a collective basis
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance
Items Provision proportion
Accounts receivable Provision for bad debts
(%)
Within 1 year 67,639,636.41 3,381,981.84 5.00
2-3 years 529,259.27 158,777.78 30.00
Total 68,168,895.68 3,540,759.62 5.19
Remarks on provision for bad debts made on a collective basis
□ Applicable √ Not Applicable
Provision for bad debts made using three-stage model
150 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of accounts receivable with changes in provision for bad debts
□ Applicable √ Not Applicable
(3) Provision for bad debts
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period movements
Opening Other Closing
Categories Recovery or
balance Accrual Write-off movements balance
reversal
[Note]
Receivables with
provision made on an 694,834.92 978,412.63 -694,834.92 978,412.63
individual basis
Receivables with
provision made on a 3,532,596.22 -79,656.51 58,380.77 29,439.14 3,540,759.62
collective basis
Total 4,227,431.14 898,756.12 -636,454.15 29,439.14 4,519,172.25
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
Note: It refers to the balances of provision for bad debts transferred in from the subsidiaries Jinbei Asia Pacific
(Beijing) Catering Co., Ltd. and Beijing Capital Brewing Golden Wheat Trading Co., Ltd., which were brought into
the consolidation scope in the current period.
(4) Accounts receivable actually written off in the current period
□ Applicable √ Not Applicable
Significant accounts receivable written off
□ Applicable √ Not Applicable
Remarks on accounts receivable written off
□ Applicable √ Not Applicable
(5) Details of the top 5 debtors with largest balances
√ Applicable □ Not Applicable
Monetary unit: RMB
Proportion to
Closing the total
Closing
Closing balance balance of balance of
balance of Provision for
Debtors of accounts accounts accounts
contract bad debts
receivable receivable and receivable and
assets
contract assets contract assets
(%)
Carlsberg Brewery
26,389,186.64 38.16 1,319,459.33
Hong Kong Limited
Wal-Mart (China)
5,420,704.16 7.84 271,035.21
Investment Co., Ltd.
151 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Proportion to
Closing the total
Closing
Closing balance balance of balance of
balance of Provision for
Debtors of accounts accounts accounts
contract bad debts
receivable receivable and receivable and
assets
contract assets contract assets
(%)
Fujian Yonghui
2,594,770.21 3.75 129,738.51
Logistics Co., Ltd.
Metro Commercial
2,152,074.87 3.11 107,603.74
Group Co., Ltd.
Chongqing Firm New
Century Department
2,108,302.71 3.05 105,415.14
Store Chain Operation
Co., Ltd.
Total 38,665,038.59 55.92 1,933,251.93
Other remarks
□ Applicable √ Not Applicable
6. Contract assets
(1) Details
□ Applicable √ Not Applicable
(2) Reasons for significant changes in carrying amount of contract assets in the reporting period
□ Applicable √ Not Applicable
(3) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Contract assets with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Remarks on contract assets with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Contract assets with provision for bad debts made on a collective basis
□ Applicable √ Not Applicable
Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of contract assets with changes in provision for bad debts
□ Applicable √ Not Applicable
(4) Details on provision for bad debts of contract assets in the current period
□ Applicable √ Not Applicable
152 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(5) Details on contract assets actually written off in the current period
□ Applicable √ Not Applicable
Significant contract assets written off
□ Applicable √ Not Applicable
Remarks on contract assets written off
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
7. Receivables financing
(1) Details on categories
□ Applicable √ Not Applicable
(2) Pledged receivables financing at the balance sheet date
□ Applicable √ Not Applicable
(3) Endorsed or discounted but undue receivables financing at the balance sheet date
□ Applicable √ Not Applicable
(4) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Receivables financing with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Remarks on receivables financing with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Receivables financing with provision for bad debts made on a collective basis
□ Applicable √ Not Applicable
Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of receivable financing with changes in provision for bad debts
□ Applicable √ Not Applicable
153 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(5) Details on provision for bad debts
□ Applicable √ Not Applicable
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(6) Details on receivables financing actually written off in the current period
□ Applicable √ Not Applicable
Significant receivables financing written off
□ Applicable √ Not Applicable
Remarks on receivables financing written off
□ Applicable √ Not Applicable
(7) Current period movements and changes in fair value of receivable financing
□ Applicable √ Not Applicable
(8) Other remarks
□ Applicable √ Not Applicable
8. Advances paid
(1) Age analysis
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 41,831,987.46 100.00 43,187,607.98 100.00
1-2 years
2-3 years
Over 3 years
Total 41,831,987.46 100.00 43,187,607.98 100.00
Reasons for unsettlement on advances paid with age over one year and significant amount
None.
(2) Details of the top 5 debtors with largest balances
√ Applicable □ Not Applicable
Proportion to the total balance of
Debtors Closing balance
advances paid (%)
PICC Property and Casualty
11,813,493.07 28.24
Company Limited
Guangdong Nanyou Foreign
2,729,178.99 6.52
Service Co., Ltd.
Xinjiang Gas Group Co., Ltd. 2,471,577.50 5.91
Tianchang Natural Gas Co., Ltd. 2,275,773.02 5.44
AirPlus Payment Management
1,339,467.22 3.20
Co., Ltd.
154 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Proportion to the total balance of
Debtors Closing balance
advances paid (%)
Total 20,629,489.80 49.31
Other remarks
None.
Other remarks
□ Applicable √ Not Applicable
9. Other receivables
Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 23,987,973.67 17,619,026.18
Total 23,987,973.67 17,619,026.18
Other remarks
□ Applicable √ Not Applicable
Interest receivable
(1) Details on categories
□ Applicable √ Not Applicable
(2) Significant overdue interest
□ Applicable √ Not Applicable
(3) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Interest receivable with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Remarks on interest receivable with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Interest receivable with provision for bad debts made on a collective basis
□ Applicable √ Not Applicable
(4) Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of interest receivable with changes in provision for bad debts
□ Applicable √ Not Applicable
155 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(5) Details on provision for bad debts
□ Applicable √ Not Applicable
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(6) Details on interest receivable actually written off in the current period
□ Applicable √ Not Applicable
Significant interest receivable written off
□ Applicable √ Not Applicable
Remarks on interest receivable written off
□ Applicable √ Not Applicable
Other remarks
None.
Dividend receivables
(7) Dividend receivable
□ Applicable √ Not Applicable
(8) Significant dividend receivable with age over one year
□ Applicable √ Not Applicable
(9) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Dividend receivable with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Remarks on dividend receivable with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Dividend receivable with provision for bad debts made on a collective basis
□ Applicable √ Not Applicable
(10) Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of dividend receivable with changes in provision for bad debts
□ Applicable √ Not Applicable
(11) Details on provision for bad debts
□ Applicable √ Not Applicable
156 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(12) Details on dividend receivable actually written off in the current period
□ Applicable √ Not Applicable
Significant dividend receivable written off
□ Applicable √ Not Applicable
Remarks on dividend receivable written off
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
Other receivables
(13) Age analysis
√ Applicable □ Not Applicable
Monetary unit: RMB
Ages Closing book balance Opening book balance
Within 1 year
Including:
Within 1 year 15,029,299.37 17,022,182.33
Subtotal 15,029,299.37 17,022,182.33
1-2 years 8,875,230.06 667,625.60
2-3 years 1,712,911.98 1,047,436.44
3-4 years 1,063,330.24 411,793.61
4-5 years 399,311.81 38,971.40
Over 5 years 4,635,888.03 4,285,161.44
Total 31,715,971.49 23,473,170.82
(14) Other receivables categorized by nature
√ Applicable □ Not Applicable
Monetary unit: RMB
Nature of receivables Closing book balance Opening book balance
Deposits 14,224,577.90 9,982,565.46
Scrap materials disposal fees
10,505,245.71 6,420,573.90
receivable, etc.
Land disposal fees receivable 4,300,000.00 4,300,000.00
Advances paid on behalf of others 1,890,741.43 2,505,830.80
Petty cash 310,615.94 119,085.67
Others 484,790.51 145,114.99
Total 31,715,971.49 23,473,170.82
(15) Provision for bad debts
√ Applicable □ Not Applicable
Monetary unit: RMB
157 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Stage 1 Stage 2 Stage 3
Provision for bad 12month Lifetime expected Lifetime expected
Total
debts expected credit credit losses (credit credit losses (credit
losses not impaired) impaired)
Balances at
846,212.83 66,762.55 4,941,169.26 5,854,144.64
January 1, 2023
Balances at
January 1, 2023 in
the current period
--Transferred to
-438,865.19 438,865.19
stage 2
--Transferred to
-171,291.20 171,291.20
stage 3
--Reversed to
stage 2
--Reversed to
stage 1
Provision made in
13,883.60 543,393.85 979,025.40 1,536,302.85
the current period
Provision
recovered in the 33,883.40 33,883.40
current period
Provision
reversed in the
current period
Provision written
off in the current
period
Other changes
330,233.73 41,200.00 371,433.73
[Note]
Balances at
751,464.97 877,730.39 6,098,802.46 7,727,997.82
December 31, 2023
Note: It refers to the balances of provision for bad debts transferred in from the subsidiaries Jinbei Asia Pacific
(Beijing) Catering Co., Ltd. and Beijing Capital Brewing Golden Wheat Trading Co., Ltd., which were brought into
the consolidation scope in the current period.
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of other receivables with changes in provision for bad debts
□ Applicable √ Not Applicable
Determination basis for provision for bad debts made in the current period and whether credit risk has increased
significantly
□ Applicable √ Not Applicable
(16) Provision for bad debts
□ Applicable √ Not Applicable
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
158 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(17) Other receivables actually written off in the current period
□ Applicable √ Not Applicable
Significant other receivables written off in the current period
□ Applicable √ Not Applicable
Remarks on other receivables written off
□ Applicable √ Not Applicable
(18) Details of the top 5 debtors with largest balances
√ Applicable □ Not Applicable
Monetary unit: RMB
Proportion to the Closing
total balance of Nature of balance of
Debtors Closing balance Ages
other receivables receivables provision for
(%) bad debts
Chongqing Hongye
Land disposal
Industry (Group) Co., 4,300,000.00 13.56 1-2 years 430,000.00
fees receivable
Ltd.
Kingold Group Co., Within 1 year,
2,435,858.34 7.68 Deposits 243,435.83
Ltd. [Note] 1-2 years
Xinjiang Jinbada Scrap materials
Biotechnology Co., 2,217,771.47 6.99 disposal fees Within 1 year 110,888.57
Ltd. receivable, etc.
Qingdao Yijiali Scrap materials
Biotechnology Co., 1,516,872.93 4.78 disposal fees Within 1 year 75,843.65
Ltd. receivable, etc.
Shizhu Tujia
Autonomous County Advances paid
Economic and 1,092,313.12 3.44 on behalf of Within 1 year 54,615.66
Information others
Commission
Total 11,562,815.86 36.46 / / 914,783.71
Note: It includes its wholly-owned subsidiary Guangzhou Kingold Property Co., Ltd.
(19) Balances presented under other receivables due to the centralized fund management
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
10. Inventories
(1) Details on categories
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Provision for Provision for
inventory write- inventory write-
Items
Book balance down/impairment Carrying amount Book balance down/impairment Carrying amount
of costs to fulfill a of costs to fulfill a
contract contract
Raw materials 339,071,155.68 16,569,391.24 322,501,764.44 411,432,771.44 21,407,056.92 390,025,714.52
Packages 1,638,198,867.85 527,843,077.99 1,110,355,789.86 1,495,101,158.54 517,763,281.67 977,337,876.87
Work in
85,303,874.50 85,303,874.50 95,329,587.61 95,329,587.61
process
Goods on
583,761,600.20 1,568,076.71 582,193,523.49 706,598,387.34 2,814,003.14 703,784,384.20
hand
Revolving
materials
159 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Closing balance Opening balance
Provision for Provision for
inventory write- inventory write-
Items
Book balance down/impairment Carrying amount Book balance down/impairment Carrying amount
of costs to fulfill a of costs to fulfill a
contract contract
Consumptive
biological
assets
Costs to fulfill
a contract
Total 2,646,335,498.23 545,980,545.94 2,100,354,952.29 2,708,461,904.93 541,984,341.73 2,166,477,563.20
(2) Provision for inventory write-down/impairment of costs to fulfill a contract
√ Applicable □ Not Applicable
Monetary unit: RMB
Increase Decrease
Items Opening balance Reversal or write- Closing balance
Accrual Others Others
off
Raw materials 21,407,056.92 2,323,999.54 7,161,665.22 16,569,391.24
Work in process 2,230,914.25 2,230,914.25
Goods on hand 2,814,003.14 4,144,307.22 5,390,233.65 1,568,076.71
Revolving materials
Consumptive biological
assets
Costs to fulfill a contract
Idle packages 78,012,765.61 2,103,392.06 14,796,242.00 65,319,915.67
Packages lent out which
expected to be irrecoverable 439,750,516.06 170,612,254.60 147,839,608.34 462,523,162.32
[Note]
Total 541,984,341.73 181,414,867.67 177,418,663.46 545,980,545.94
Reasons for the reversal or write-off of provision for inventory write-down
√ Applicable □ Not Applicable
Note: For packages lent out which were expected to be irrecoverable, the Company made provision for inventory
write-down of 170,612,254.60 yuan, and accrued allowances for other payables at the after-tax amount of non-
refundable deposits of 98,064,487.98 yuan, with the difference of 72,547,766.62 yuan recognized as assets
impairment loss; packages lent out are accounted for as a sale when there is objective evidence indicating that the
packages are irrecoverable, and the Company wrote off provision for inventory write-down of 147,839,608.34 yuan,
and wrote off allowances for other payables at the after-tax amount of non-refundable deposits of 78,429,418.29
yuan, with the difference of 69,410,190.05 yuan recognized as operating cost. Please refer to item VII 41 of this
section for details on accrual and write-off of allowances.
Determination basis of net realizable value and reasons for the reversal or write-off of provision for inventory write-
down
Reasons for reversal or write-
Items Determination basis of net realizable value off of provision for inventory
write-down
Estimated selling price of raw materials less relevant taxes
and surcharges; estimated selling price of relevant finished Such inventories were used or
Raw materials
goods less cost to be incurred upon completion, estimated sold.
selling expenses, and relevant taxes and surcharges
Estimated selling price of disposal waste less relevant taxes Such inventories were sold or
Idle packages
and surcharges scrapped.
For packages lent out which expected to be irrecoverable,
Packages lent
the Company made provision for inventory write-down There is objective evidence
out which
based on the carrying amount, and accrued allowances for indicating that the packages
expected to be
other payables at the after-tax amount of non-refundable lent out would not be returned.
irrecoverable
deposits, with the difference recognized as assets
160 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Reasons for reversal or write-
Items Determination basis of net realizable value off of provision for inventory
write-down
impairment loss
Estimated selling price less cost to be incurred upon
Such inventories were used or
Work in process completion, estimated selling expenses, and relevant taxes
sold.
and surcharges
Estimated selling price less estimated selling expenses and
Goods on hand Such inventories were sold.
relevant taxes and surcharges
Other remarks
Items Inventory age Closing book balance Provision for write-down
Finished liquor Within 1 year 583,761,600.20 1,568,076.71
Semi-finished liquor
Within 1 year 85,303,874.50
(including basic liquor)
Subtotal 669,065,474.70 1,568,076.71
Provision for inventory write-down made on a collective basis
□ Applicable √ Not Applicable
Determination basis of portfolios
□ Applicable √ Not Applicable
(3) Capitalized amount of borrowing costs and its measurement criteria and basis
□ Applicable √ Not Applicable
(4) Remarks on the amortization of costs to fulfill a contract
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
11. Assets held for sale
□ Applicable √ Not Applicable
12. Non-current assets due within one year
□ Applicable √ Not Applicable
Debt investments due within one year
□ Applicable √ Not Applicable
Other debt investments due within one year
□ Applicable √ Not Applicable
Other remarks on non-current assets due within one year
None.
13. Other current assets
√ Applicable □ Not Applicable
Monetary unit: RMB
161 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Closing balance Opening balance
Cost to obtain a contract
Cost of goods expected to be returned
Input VAT to be credited and prepaid
146,488,217.09 109,533,473.56
taxes
Total 146,488,217.09 109,533,473.56
Other remarks
None.
14. Debt investments
(1) Details
□ Applicable √ Not Applicable
Changes in provision for impairment of debt investments in the current period
□ Applicable √ Not Applicable
(2) Significant debt investments at the balance sheet date
□ Applicable √ Not Applicable
(3) Provision for impairment
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for impairment
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of debt investments with changes in provision for impairment
□ Applicable √ Not Applicable
Determination basis for provision for impairment made in the current period and whether credit risk has increased
significantly
□ Applicable √ Not Applicable
(4) Debt investments actually written off in the current period
□ Applicable √ Not Applicable
Significant debt investments written off in the current period
□ Applicable √ Not Applicable
Remarks on debt investments written off
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
15. Other debt investments
(1) Details
□ Applicable √ Not Applicable
162 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Changes in provision for impairment of other debt investments in the current period
□ Applicable √ Not Applicable
(2) Significant other debt investments at the balance sheet date
□ Applicable √ Not Applicable
(3) Provision for impairment
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for impairment
None.
Remarks on significant changes in book balance of other debt investments with changes in provision for impairment
□ Applicable √ Not Applicable
Determination basis for provision for impairment made in the current period and whether credit risk has increased
significantly
□ Applicable √ Not Applicable
(4) Other debt investments actually written off in the current period
□ Applicable √ Not Applicable
Significant other debt investments written off in the current period
□ Applicable √ Not Applicable
Remarks on other debt investments written off
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
16. Long-term receivables
(1) Details
□ Applicable √ Not Applicable
(2) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Long-term receivables with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Remarks on long-term receivables with provision for bad debts made on an individual basis
□ Applicable √ Not Applicable
Long-term receivables with provision for bad debts made on a collective basis
□ Applicable √ Not Applicable
(3) Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
163 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of long-term receivables with changes in provision for bad debts
□ Applicable √ Not Applicable
Determination basis for provision for bad debts made in the current period and whether credit risk has increased
significantly
□ Applicable √ Not Applicable
(4) Details on provision for bad debts
□ Applicable √ Not Applicable
Significant provision for bad debts collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(5) Details on long-term receivables actually written off in the current period
□ Applicable √ Not Applicable
Significant long-term receivables written off
□ Applicable √ Not Applicable
Remarks on long-term receivables written off
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
17. Long-term equity investments
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Increase/Decrease
Investment Closing
Adjustment in
income Changes in Cash dividend/ balance of
Investees Opening balance Investments Investments other Provision for Closing balance
recognized other Profit declared for Others provision for
increased decreased comprehensive impairment
under equity equity distribution impairment
income
method
I. Joint ventures
Subtotal
II. Associates
Chongqing
Jiawei Beer 296,599,881.05 62,294,135.01 218,285,820.47 140,608,195.59
Co., Ltd.
Subtotal 296,599,881.05 62,294,135.01 218,285,820.47 140,608,195.59
Total 296,599,881.05 62,294,135.01 218,285,820.47 140,608,195.59
(2) Impairment test of long-term equity investments
□ Applicable √ Not Applicable
Other remarks
164 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
None.
18. Other equity instrument investments
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Increase/Decrease Dividend Accumulated Accumulated
Reasons for being
Gains included Losses included income gains included losses included
designated as at fair value
Items Opening balance Investments Investments into other into other Closing balance recognized in into other into other
Others through other
increased decreased comprehensive comprehensive the current comprehensive comprehensive
comprehensive income
income income period income income
As the Company invested
in Bank of Guizhou Co.,
Ltd. not for trading, such
Bank of
investment was
Guizhou 14,303,331.73 2,322,631.10 16,625,962.83 344,606.28 15,625,962.83
designated as an equity
Co., Ltd.
instrument investment at
fair value through other
comprehensive income
Total 14,303,331.73 2,322,631.10 16,625,962.83 344,606.28 15,625,962.83
(2) Remarks on other equity instrument investment derecognized in the current period
□ Applicable √ Not Applicable
Other remarks
√ Applicable □ Not Applicable
The fair value per share of the Company’s equity investment in Bank of Guizhou Co., Ltd. as at December 31, 2023
was measured based on the net assets per share as at June 30, 2023 disclosed in the latest interim report under certain
discount method.
19. Other non-current financial assets
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Financial assets classified as at fair value
through profit or loss
Including: Cost of investment in Xinjiang
1,000,000.00 1,000,000.00
Guozhiming
Changes in fair value of investment in
-1,000,000.00 -1,000,000.00
Xinjiang Guozhiming [Note]
Total
Other remarks
√ Applicable □ Not Applicable
Note: As the investee ceased operation in previous years and was not a public interest entity, provision for
impairment was fully made on the investment.
20. Investment property
Method for measuring investment property
Not Applicable
(1) Impairment test of investment property measured at cost model
□ Applicable √ Not Applicable
165 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
21. Fixed assets
Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Fixed assets 3,673,993,109.60 3,680,691,105.17
Disposal of fixed assets
Total 3,673,993,109.60 3,680,691,105.17
Other remarks
□ Applicable √ Not Applicable
Fixed assets
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Buildings and Transport Other
Items Machinery Total
structures facilities equipment
I. Cost
1. Opening balance 2,587,420,951.12 4,860,441,930.26 31,860,248.07 310,015,025.66 7,789,738,155.11
2. Increase 163,970,178.48 235,293,391.71 515,785.46 44,339,350.33 444,118,705.98
(1) Acquisition 5,676,265.91 305,132.67 29,261,153.38 35,242,551.96
(2) Transferred in from
144,131,765.91 222,865,557.92 210,652.79 12,837,933.28 380,045,909.90
construction in progress
(3) Business combination 19,838,412.57 6,751,567.88 2,240,263.67 28,830,244.12
3. Decrease 13,611,897.09 42,507,659.47 4,093,751.82 25,888,600.38 86,101,908.76
(1) Disposal/ Scrapping 13,611,897.09 42,507,659.47 4,093,751.82 25,888,600.38 86,101,908.76
4. Closing balance 2,737,779,232.51 5,053,227,662.50 28,282,281.71 328,465,775.61 8,147,754,952.33
II. Accumulated depreciation
1. Opening balance 919,057,170.72 2,847,160,526.70 27,160,850.99 182,580,313.42 3,975,958,861.83
2. Increase 107,297,962.87 269,100,386.79 391,257.78 48,535,561.43 425,325,168.87
(1) Accrual 99,911,178.35 266,572,467.35 391,257.78 47,506,191.63 414,381,095.11
(2) Business combination 7,386,784.52 2,527,919.44 1,029,369.80 10,944,073.76
3. Decrease 9,762,173.19 36,724,475.90 3,916,079.96 23,773,801.62 74,176,530.67
(1) Disposal/ Scrapping 9,762,173.19 36,724,475.90 3,916,079.96 23,773,801.62 74,176,530.67
4. Closing balance 1,016,592,960.40 3,079,536,437.59 23,636,028.81 207,342,073.23 4,327,107,500.03
III. Provision for impairment
1. Opening balance 78,909,206.55 48,311,184.47 48,688.95 5,819,108.14 133,088,188.11
2. Increase 1,494,799.99 15,086,782.53 903,694.87 17,485,277.39
(1) Accrual 1,494,799.99 15,086,782.53 903,694.87 17,485,277.39
3. Decrease 1,658,481.62 1,037,224.11 16,617.39 1,206,799.68 3,919,122.80
(1) Disposal/ Scrapping 1,658,481.62 1,037,224.11 16,617.39 1,206,799.68 3,919,122.80
4. Closing balance 78,745,524.92 62,360,742.89 32,071.56 5,516,003.33 146,654,342.70
IV. Carrying amount
1. Closing balance 1,642,440,747.19 1,911,330,482.02 4,614,181.34 115,607,699.05 3,673,993,109.60
2. Opening balance 1,589,454,573.85 1,964,970,219.09 4,650,708.13 121,615,604.10 3,680,691,105.17
(2) Fixed assets temporarily idle
□ Applicable √ Not Applicable
(3) Fixed assets leased out under operating leases
□ Applicable √ Not Applicable
(4) Fixed assets with certificate of titles being unsettled
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Carrying amount Reasons for unsettlement
Buildings and structures etc. 43,063,607.71 In processing
166 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Subtotal 43,063,607.71
(5) Impairment tests of fixed assets
√ Applicable □ Not Applicable
Recoverable amount determined based on the fair value less costs of disposal
√ Applicable □ Not Applicable
Monetary unit: RMB
Determination
Carrying Recoverable Impairment method of fair Determination basis for
Items Key parameters
amount amount amount value and costs of key parameters
disposal
The Management makes
Asset project Comprehensive Comprehensive provision for
of Wanzhou judgements from judgements from impairment with
factory 27,083,169.23 11,862,769.23 15,220,400.00 the Management the Management reference to market
suffering with reference to with reference to factors for fixed assets
flood damages market factors market factors that have suffered losses
due to natural disasters.
Total 27,083,169.23 11,862,769.23 15,220,400.00 / / /
Recoverable amount determined based on the present value of estimated future cash flows
□ Applicable √ Not Applicable
Reasons for obvious inconsistencies between the aforementioned information and the information used in
impairment tests in previous years or external information
□ Applicable √ Not Applicable
Reasons for obvious inconsistencies between the information used in the Company’s impairment tests in
previous years and the actual situation of those years
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
Disposal of fixed assets
□ Applicable √ Not Applicable
22. Construction in progress
Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Construction in progress 783,503,734.86 395,295,204.91
Construction materials
Total 783,503,734.86 395,295,204.91
Other remarks
□ Applicable √ Not Applicable
Construction in progress
167 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
New beer project with an
annual output of 500,000 657,343,102.94 657,343,102.94 202,505,414.75 202,505,414.75
kiloliters in Foshan
Smart Core Project 62,057,073.65 62,057,073.65 43,309,341.19 43,309,341.19
Capacity expansion and
transformation project
37,397,502.22 37,397,502.22
with an annual output of
150,000 kiloliters in Korla
Production resumption
20,428,646.40 20,428,646.40
project in Wanzhou
Relocation project of
ammonia refrigeration 10,468,200.65 10,468,200.65
system of Kunming Huashi
Sporadic engineering 64,103,558.27 64,103,558.27 81,186,099.70 81,186,099.70
Total 783,503,734.86 783,503,734.86 395,295,204.91 395,295,204.91
(2) Changes in significant projects
√ Applicable □ Not Applicable
Monetary unit: RMB
Including:
Accumulated
Completion Amount of Annual
Opening Transferred to Other Closing Accumulated input amount of Fund
Projects Budgets Increase percentage borrowing cost capitalization
balance fixed assets decreases balance to budget (%) borrowing cost source
(%) capitalization in rate (%)
capitalization
the current period
New beer project with an
annual output of 500,000 1,401,772,000.00 202,505,414.75 454,837,688.19 657,343,102.94 46.89 46.89 Self-raised
kiloliters in Foshan
Smart Core Project 179,400,000.00 43,309,341.19 37,232,109.08 18,484,376.62 62,057,073.65 44.89 44.89 Self-raised
Capacity expansion and
transformation project
with an annual output of 115,890,000.00 37,397,502.22 74,195,265.50 111,592,767.72 100.00 100.00 Self-raised
150,000 kiloliters in
Korla
Total 1,697,062,000.00 283,212,258.16 566,265,062.77 111,592,767.72 18,484,376.62 719,400,176.59 / / / /
(3) Provisions for impairment of construction in progress
□ Applicable √ Not Applicable
(4) Impairment test of construction in progress
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
Construction materials
(5) Details
□ Applicable √ Not Applicable
23. Productive biological assets
(1) Productive biological assets measured at cost
□ Applicable √ Not Applicable
(2) Impairment test on productive biological assets measured at cost
□ Applicable √ Not Applicable
168 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(3) Productive biological assets measured at fair value
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
24. Oil and gas assets
(1) Details
□ Applicable √ Not Applicable
(2) Impairment test
□ Applicable √ Not Applicable
Other remarks
None.
25. Right-of-use assets
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Buildings and Transport Other
Items Machinery Total
structures facilities equipment
I. Cost
1. Opening balance 84,467,277.97 5,640,000.00 39,765,000.00 129,872,277.97
2. Increase 98,972,904.02 3,484,000.00 29,822,000.00 132,278,904.02
(1) Leased in 12,676,648.87 3,484,000.00 29,822,000.00 45,982,648.87
(2) Business combination 86,296,255.15 86,296,255.15
3. Decrease 14,665,099.84 1,877,000.00 20,829,000.00 37,371,099.84
(1) Disposal 14,665,099.84 1,877,000.00 20,829,000.00 37,371,099.84
4. Closing balance 168,775,082.15 7,247,000.00 48,758,000.00 224,780,082.15
II. Accumulated depreciation
1. Opening balance 13,759,351.86 2,986,000.00 12,820,000.00 29,565,351.86
2. Increase 46,197,353.66 2,638,000.00 15,860,000.00 64,695,353.66
(1) Accrual 18,742,394.12 2,638,000.00 15,860,000.00 37,240,394.12
(2) Business combination 27,454,959.54 27,454,959.54
3. Decrease 8,341,667.46 1,816,000.00 12,820,000.00 22,977,667.46
(1) Disposal 8,341,667.46 1,816,000.00 12,820,000.00 22,977,667.46
4. Closing balance 51,615,038.06 3,808,000.00 15,860,000.00 71,283,038.06
III. Provision for impairment
1. Opening balance
2. Increase
(1) Accrual
3. Decrease
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Closing balance 117,160,044.09 3,439,000.00 32,898,000.00 153,497,044.09
2. Opening balance 70,707,926.11 2,654,000.00 26,945,000.00 100,306,926.11
(2) Impairment test
□ Applicable √ Not Applicable
169 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Other remarks
None.
26. Intangible assets
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Non-
Items Land use right Trademark Patent right patented Software Total
technology
I. Cost
1. Opening balance 714,478,334.90 369,674,547.00 210,722,028.54 1,294,874,910.44
2. Increase 185,470.00 57,147,592.36 57,333,062.36
(1) Acquisition 91,260.50 91,260.50
(2) Internal research
and development
(3) Business
185,470.00 717,099.95 902,569.95
combination
(4) Transferred in
from construction in 56,339,231.91 56,339,231.91
progress
3. Decrease 868,403.39 868,403.39
(1) Disposal 868,403.39 868,403.39
4. Closing balance 714,478,334.90 369,860,017.00 267,001,217.51 1,351,339,569.41
II. Accumulated amortization
1. Opening balance 179,702,708.13 201,944,901.30 136,203,051.26 517,850,660.69
2. Increase 14,053,239.36 9,851,204.56 41,400,465.94 65,304,909.86
(1) Accrual 14,053,239.36 9,851,204.56 41,096,365.10 65,000,809.02
(2) Business
304,100.84 304,100.84
combination
3. Decrease 725,193.68 725,193.68
(1) Disposal 725,193.68 725,193.68
4. Closing balance 193,755,947.49 211,796,105.86 176,878,323.52 582,430,376.87
III. Provision for impairment
1. Opening balance 3,905,124.59 87,200,600.00 749,485.21 91,855,209.80
2. Increase
(1) Accrual
3. Decrease
(1) Disposal
4. Closing balance 3,905,124.59 87,200,600.00 749,485.21 91,855,209.80
IV. Carrying amount
1. Closing balance 516,817,262.82 70,863,311.14 89,373,408.78 677,053,982.74
2. Opening balance 530,870,502.18 80,529,045.70 73,769,492.07 685,169,039.95
(2) Land use right with certificate of titles being unsettled
□ Applicable √ Not Applicable
(3) Impairment test
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
27. Goodwill
(1) Cost
√ Applicable □ Not Applicable
Monetary unit: RMB
170 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Increase Decrease
Investees or events resulting in
Opening balance Business Closing balance
goodwill Others Disposal Others
combination
Xinjiang Wusu Brewery Co., Ltd.
639,141,956.06 639,141,956.06
[Note]
Carlsberg (China) Breweries and
48,826,000.00 48,826,000.00
Trading Co., Ltd. [Note]
Ningxia Xixia Jianiang Brewery
11,224,500.00 11,224,500.00
Co., Ltd. [Note]
Carlsberg Chongqing Brewery Co.,
19,037,610.07 19,037,610.07
Ltd.
Total 718,230,066.13 718,230,066.13
Note: It refers to the goodwill arising from business combinations not under common control conducted by the
ultimate controlling party or entities controlled by the ultimate controlling party.
(2) Provision for impairment
√ Applicable □ Not Applicable
Monetary unit: RMB
Investees or events resulting in Opening Increase Decrease Closing
goodwill balance Accrual Others Disposal Others balance
Carlsberg Chongqing Brewery Co.,
19,037,610.07 19,037,610.07
Ltd.
Total 19,037,610.07 19,037,610.07
(3) Related information of asset group or asset group portfolios which include goodwill
√ Applicable □ Not Applicable
Whether
Composition of asset group or asset group portfolios and Operating segment and its
Name of entities consistent with
its basis basis
previous years
Assets and businesses related to goodwill resulting from Northwestern region
Xinjiang Wusu the acquisition of Xinjiang Wusu Brewery Co., Ltd. by (according to the place
Yes
Brewery Co., Ltd. Carlsberg Breweries A/S through business combination where sales revenue is
not under common control. generated)
Assets and businesses related to goodwill resulting from
Carlsberg (China) the acquisition of Carlsberg (China) Breweries and Southern region (according
Breweries and Trading Co., Ltd. by Carlsberg Singapore Pte Ltd. to the place where sales Yes
Trading Co., Ltd. through business combination not under common revenue is generated)
control.
Assets and businesses related to goodwill resulting from Northwestern region
Ningxia Xixia
the acquisition of Ningxia Xixia Jianiang Brewery Co., (according to the place
Jianiang Brewery Yes
Ltd. by Carlsberg Breweries A/S through business where sales revenue is
Co., Ltd.
combination not under common control. generated)
Assets and businesses related to goodwill resulting from
Carlsberg Central region (according
the acquisition of Carlsberg Chongqing Brewery Co.,
Chongqing to the place where sales Yes
Ltd. by the Company through business combination not
Brewery Co., Ltd. revenue is generated)
under common control.
Changes in asset group or asset group portfolios
□ Applicable √ Not Applicable
Other remarks
√ Applicable □ Not Applicable
In April 2012, the Company acquired Carlsberg Chongqing Brewery Co., Ltd., and recognized the goodwill at the
difference between the fair value of identifiable net assets and the consideration paid at the acquisition date. Pursuant
to the “Proposal on Accrual of Provision for Impairment of Assets” deliberated and approved by the ninth meeting
of the seventh session of the Board of Directors held in 2013, the Company performed impairment test on relevant
171 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
assets group portfolios that included goodwill, and made provision for impairment of goodwill of 19,037,610.07
yuan at the difference between the recoverable amount of relevant asset group portfolios and the carrying amount.
(4) Specific method for determining recoverable amount
Recoverable amount determined based on the fair value less costs of disposal
□ Applicable √ Not Applicable
Recoverable amount determined based on the present value of estimated future cash flows
√ Applicable □ Not Applicable
Monetary unit: RMB
Key parameters
Key parameters
for stable period
Forecast for forecast Determination basis of
Recoverable Impairment (growth rate, Determination basis of key parameters for
Items Carrying amount period period (growth parameters for forecast
amount amount profit rate, stable period
(years) rate, profit rate, period
discount rate,
etc.)
etc.)
Growth rate:
Compound
0%;
Xinjiang revenue growth Growth rate: revenue and costs remain
Wusu rate: 0.32%; Gross profit rate: stable after the forecast period;
1,571,653,693.42 4,570,000,000.00 5
Brewery Co., 46%;
Gross profit Gross profit rate: revenue and gross profit
Ltd.
rate: 47% Discount rate: rate remain stable after the forecast period,
15.13% and the gross profit rate for the stable period
remains basically consistent with that for
The left key Growth rate: the forecast period;
Compound
Carlsberg parameters are 0%;
revenue growth Discount rate: determined based on the
(China) rate: -1.88%; determined by the
Gross profit rate: before tax weighted average cost of capital
Breweries 1,016,064,409.95 1,334,000,000.00 5 Company based on its
42%; (BTWACC), including parameters such as
and Trading Gross profit historical experience
risk-free interest rate, market risk
Co., Ltd. rate: 43%-44% and forecast of market Discount rate:
premium, beta coefficient, capital
development. 15.13% structure, specific risk return rate,
creditor’s expected return rate, etc. The
Growth rate: selection of each parameter complies with
Compound
0%; the applicable guidelines for the regulatory
Ningxia Xixia revenue growth
rate: 4.53%; rules of the China Securities Regulatory
Jianiang Gross profit rate:
240,959,037.98 995,000,000.00 5 Commission - No. 1 on Assessment.
Brewery Co., 43%;
Gross profit
Ltd.
rate: 43%-45% Discount rate:
15.13%
Total 2,828,677,141.35 6,899,000,000.00 / / / /
Reasons for obvious inconsistencies between the aforementioned information and the information used in
impairment tests in previous years or external information
□ Applicable √ Not Applicable
Reasons for obvious inconsistencies between the information used in the Company’s impairment tests in
previous years and the actual situation of those years
□ Applicable √ Not Applicable
(5) Performance commitments and corresponding goodwill impairment
Performance commitments exist when goodwill is formed, and the performance commitment period covers the
reporting period or the previous period of the reporting period
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
28. Long-term prepayments
□ Applicable √ Not Applicable
172 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
29. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offset
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Deductible Deductible
Items
temporary Deferred tax assets temporary Deferred tax assets
difference difference
Accrued expenses and
2,829,736,529.77 522,767,608.91 2,866,021,252.10 546,199,869.87
contract liabilities
Provision for impairment
350,851,581.53 69,302,426.50 333,287,740.30 67,535,763.71
of assets
Employee benefits
280,836,448.97 54,204,892.16 259,582,897.27 52,761,793.01
payable
Deferred income 155,206,784.27 36,491,740.23 147,635,624.68 36,250,783.25
Deductible losses 101,269,311.12 25,317,327.78 82,036,101.38 17,789,125.73
Long-term employee
63,556,123.27 10,365,261.58 66,552,094.92 11,594,710.98
benefits payable
Lease liabilities 53,154,804.88 10,471,828.94 45,738,422.97 8,742,463.45
Unrealized profit from
33,107,372.29 4,966,105.84 21,219,368.92 3,182,905.34
internal transactions
Intangible assets 28,359,439.13 4,863,034.84 23,044,686.80 3,952,404.00
Provisions 25,219,093.79 3,782,864.07 31,657,899.75 4,900,580.66
Fixed assets 10,672,752.08 2,594,000.25 7,416,061.45 1,798,655.78
Cash flow hedging
2,080,471.09 467,700.04
instruments
Other non-current
1,000,000.00 150,000.00 1,000,000.00 150,000.00
financial assets
Total 3,935,050,712.19 745,744,791.14 3,885,192,150.54 754,859,055.78
(2) Deferred tax liabilities before offset
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Taxable
Items Deferred tax Taxable temporary Deferred tax
temporary
liabilities difference liabilities
difference
Right-of-use assets 153,497,044.09 35,627,533.78 100,306,926.11 22,411,449.44
Fixed assets 143,457,655.39 24,198,121.78 149,706,704.25 26,985,487.80
Assets appraisal appreciation
due to business combination 52,040,840.24 7,806,126.04 60,713,990.24 9,107,098.54
not under common control
Other equity instrument
15,625,962.83 3,906,490.72 13,303,331.73 3,325,832.94
investments
Intangible assets 12,000,000.00 3,000,000.00 12,000,000.00 3,000,000.00
Cash flow hedging
2,547.33 636.83 1,213,019.84 275,647.87
instruments
Total 376,624,049.88 74,538,909.15 337,243,972.17 65,105,516.59
(3) Deferred tax assets or liabilities presented by net amount after offset
√ Applicable □ Not Applicable
Monetary unit: RMB
173 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Closing balance Opening balance
Deferred tax assets Deferred tax Deferred tax assets Deferred tax
Items
offset by deferred tax assets/liabilities after offset by deferred tax assets/liabilities after
liabilities offset liabilities offset
Deferred tax
66,732,783.11 679,012,008.03 22,411,449.44 732,447,606.34
assets
Deferred tax
66,732,783.11 7,806,126.04 22,411,449.44 42,694,067.15
liabilities
(4) Details of unrecognized deferred tax assets
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Deductible temporary difference 144,241,227.72 191,072,887.28
Deductible losses 440,365,741.50 320,552,816.05
Total 584,606,969.22 511,625,703.33
(5) Maturity years of deductible losses of unrecognized deferred tax assets
√ Applicable □ Not Applicable
Monetary unit: RMB
Maturity years Closing balance Opening balance Remarks
Year 2023 23,393,028.65
Year 2024 21,352,118.50 17,917,412.10
Year 2025 17,683,269.07 20,863,693.25
Year 2026 117,609,641.23 126,994,927.34
Year 2027 165,276,052.74 131,383,754.71
Year 2028 118,444,659.96
Total 440,365,741.50 320,552,816.05 /
Other remarks
□ Applicable √ Not Applicable
30. Other non-current assets
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Costs to obtain a
contract
Costs to fulfill a contract
Costs of goods expected
to be returned
Contract assets
Prepayments for
acquisition of non- 98,818,865.15 98,818,865.15 89,540,749.40 89,540,749.40
current assets
Total 98,818,865.15 98,818,865.15 89,540,749.40 89,540,749.40
Other remarks
None.
31. Assets with title or use right restrictions
√ Applicable □ Not Applicable
174 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Monetary unit: RMB
Closing balance Opening balance
Reasons
Items Book Carrying Type of Reasons for Book Carrying Type of
for
balance amount restrictions restrictions balance amount restrictions
restrictions
Cash and bank
820,036.10 820,036.10
balances
Including: Deposits
Deposits have
for letters of 316,100.00 316,100.00 Frozen
been frozen
guarantee
Deposits for Deposits have
503,436.10 503,436.10 Frozen
litigations been frozen
Deposits have
Other deposits 500.00 500.00 Frozen
been frozen
Notes receivable
Inventories
Fixed assets
Intangible assets
Total 820,036.10 820,036.10 / / / /
Other remarks
None.
32. Short-term borrowings
(1) Details on categories
□ Applicable √ Not Applicable
(2) Overdue short-term borrowings
□ Applicable √ Not Applicable
Significant overdue short-term borrowings
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
33. Held-for-trading financial liabilities
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
34. Derivative financial liabilities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Floating gains or losses on hedging
15,408,026.80 2,616,336.56
instruments
Total 15,408,026.80 2,616,336.56
Other remarks
Please refer to item XII 2 of this section for details on floating gains or losses on hedging instruments.
175 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
35. Notes payable
(1) Details
□ Applicable √ Not Applicable
36. Accounts payable
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Payments for acquisition of materials and receiving of services 2,191,038,824.27 2,096,313,903.90
Payments for engineering equipment 416,591,074.90 401,357,843.47
Total 2,607,629,899.17 2,497,671,747.37
(2) Significant accounts payable with age over one year or overdue
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
37. Advances received
(1) Details
□ Applicable √ Not Applicable
(2) Significant advances received with age over one year
□ Applicable √ Not Applicable
(3) Amount and reasons for significant changes in carrying amount during the reporting period
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
38. Contract liabilities
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Contract liabilities of distributors 1,666,791,670.83 1,614,042,546.14
Total 1,666,791,670.83 1,614,042,546.14
(2) Significant contract liabilities with age over one year
□ Applicable √ Not Applicable
(3) Reasons for significant changes in carrying amount
□ Applicable √ Not Applicable
176 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Other remarks
□ Applicable √ Not Applicable
39. Employee benefits payable
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Opening balance Increase Decrease Closing balance
I. Short-term
320,386,267.08 1,451,832,212.55 1,431,906,061.65 340,312,417.98
employee benefits
II. Post-employment
benefits - defined 44,562,702.04 125,020,239.70 127,167,723.19 42,415,218.55
contribution plan
III. Termination
34,418,355.53 3,280,173.33 10,488,505.00 27,210,023.86
benefits
IV. Other benefits due
within one year
Total 399,367,324.65 1,580,132,625.58 1,569,562,289.84 409,937,660.39
(2) Details of short-term employee benefits
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Opening balance Increase Decrease Closing balance
I. Wage, bonus, allowance and
300,197,917.76 1,242,057,595.25 1,222,262,567.76 319,992,945.25
subsidy
II. Employee welfare fund 25,493,494.66 25,493,494.66
III. Social insurance premium 8,663,785.21 83,491,824.39 81,916,193.04 10,239,416.56
Including: Medicare premium 8,210,257.57 67,852,214.89 66,275,910.34 9,786,562.12
Occupational injuries
453,527.64 13,884,922.67 13,907,376.03 431,074.28
premium
Maternity premium 1,754,686.83 1,732,906.67 21,780.16
IV. Housing provident fund 6,247,447.36 77,142,278.73 77,825,338.58 5,564,387.51
V. Trade union fund and
5,277,116.75 23,647,019.52 24,408,467.61 4,515,668.66
employee education fund
VI. Short-term paid leave
VII. Short-term profit-sharing
plan
Total 320,386,267.08 1,451,832,212.55 1,431,906,061.65 340,312,417.98
(3) Details of defined contribution plan
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Opening balance Increase Decrease Closing balance
1. Basic endowment
43,388,437.33 120,434,906.71 122,595,610.70 41,227,733.34
insurance premium
2. Unemployment insurance
1,174,264.71 4,585,332.99 4,572,112.49 1,187,485.21
premium
3. Company annuity payment
Total 44,562,702.04 125,020,239.70 127,167,723.19 42,415,218.55
Other remarks
□ Applicable √ Not Applicable
40. Taxes and rates payable
√ Applicable □ Not Applicable
177 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Monetary unit: RMB
Items Closing balance Opening balance
VAT 11,270,586.45 21,855,504.85
Consumption tax 27,268,269.42 80,493,196.43
Enterprise income tax 28,878,637.40 131,669,002.41
Urban maintenance and construction tax 2,443,351.83 6,854,142.51
Education surcharge 1,946,980.93 5,902,977.40
Individual income tax withheld for tax authorities 5,544,345.64 4,552,442.76
Housing property tax 3,416,760.68 902,167.35
Land use tax 2,583,874.61 852,494.98
Others 3,126,957.64 2,305,532.66
Total 86,479,764.60 255,387,461.35
Other remarks
None.
41. Other payables
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Interest payable
Dividend payable
Other payables 3,326,996,153.10 3,490,319,176.38
Total 3,326,996,153.10 3,490,319,176.38
Other remarks
□ Applicable √ Not Applicable
(2) Interest payable
Details on categories
□ Applicable √ Not Applicable
Significant interest payable overdue
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
(3) Dividend payable
Details on categories
□ Applicable √ Not Applicable
(4) Other payables
Other receivables categorized by nature
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Accrued expenses 1,740,060,221.42 1,746,070,547.86
Deposits for packages 1,002,967,948.25 941,202,663.23
178 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Closing balance Opening balance
Allowances for deposits for packages -354,139,016.53 -334,503,946.84
Other security deposits 889,342,103.73 1,081,788,522.34
Trademark licensing fees payable 36,092,861.30 40,319,315.43
Others 12,672,034.93 15,442,074.36
Total 3,326,996,153.10 3,490,319,176.38
Significant other payables with age over one year or overdue
□ Applicable √ Not Applicable
Other remarks
√ Applicable □ Not Applicable
Accrual and write-off of allowances for deposits for packages
Items Opening balance Accrual Reversal or write-off Closing balance
Allowances for deposits for
334,503,946.84 98,064,487.98 78,429,418.29 354,139,016.53
packages
Subtotal 334,503,946.84 98,064,487.98 78,429,418.29 354,139,016.53
42. Liabilities held for sale
□ Applicable √ Not Applicable
43. Non-current liabilities due within one year
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Long-term borrowings due within one year
Bonds payable due within one year
Long-term payables due within one year
Lease liabilities due within one year 42,382,811.96 24,005,592.21
Total 42,382,811.96 24,005,592.21
Other remarks
None.
44. Other current liabilities
Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Short-term bonds payable
Payables for returned goods
Output VAT to be recognized 26,113,341.32 27,809,237.78
Total 26,113,341.32 27,809,237.78
Increase or decrease of short-term bonds payable
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
179 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
45. Long-term borrowings
(1) Details on categories
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
46. Bonds payable
(1) Bonds payable
□ Applicable √ Not Applicable
(2) Details (not including other financial instruments such as preferred shares/perpetual bonds classified as
financial liabilities)
□ Applicable √ Not Applicable
(3) Remarks on convertible bonds
□ Applicable √ Not Applicable
Accounting treatment and judgment basis for equity transfer
□ Applicable √ Not Applicable
(4) Other financial instruments classified as financial liabilities
Basic information of other financial instruments such as preferred shares or perpetual bonds outstanding at the
balance sheet date
□ Applicable √ Not Applicable
Current period movements of financial instruments such as preferred shares or perpetual bonds outstanding at the
balance sheet date
□ Applicable √ Not Applicable
Remarks on other financial instruments classified as financial liabilities
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
47. Lease liabilities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Lease liabilities 121,370,635.09 77,928,597.87
Total 121,370,635.09 77,928,597.87
Other remarks
None.
180 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
48. Long-term payables
Details
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
Long-term payables
(1) Long-term payables categorized by nature
□ Applicable √ Not Applicable
Special payables
(2) Special payables categorized by nature
□ Applicable √ Not Applicable
49. Long-term employee benefits payable
√ Applicable □ Not Applicable
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
I. Post-employment benefits - Net defined benefit liabilities 144,859,660.56 145,921,476.85
II. Termination benefits
III. Other long-term benefits 6,121,729.03 8,486,230.50
Total 150,981,389.59 154,407,707.35
(2) Movements in defined benefit plan
Present value of obligations in defined benefit plan
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period Preceding period
Items
cumulative comparative
I. Opening balance 145,921,476.85 153,743,974.22
II. Components of defined benefit costs recognized in
4,034,294.83 -683,415.60
profit or loss
1. Current service cost 1,162,000.00 2,674,640.27
2. Past service cost -1,288,705.17 -8,091,055.87
3. Gains and losses on settlements
4. Net interest expense or income 4,161,000.00 4,733,000.00
III. Components of defined benefit costs recognized in
4,300,400.00 2,862,000.00
other comprehensive income
1. Actuarial gains and losses -4,300,400.00 -2,862,000.00
IV. Other movements -9,396,511.12 -10,001,081.77
1. Consideration paid at settlement
2. Benefit paid -9,396,511.12 -10,001,081.77
V. Closing balance 144,859,660.56 145,921,476.85
Plan assets
□ Applicable √ Not Applicable
181 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Net defined benefit liabilities (assets)
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period Preceding period
Items
cumulative comparative
I. Opening balance 145,921,476.85 153,743,974.22
II. Components of defined benefit costs recognized in
4,034,294.83 -683,415.60
profit or loss
III. Components of defined benefit costs recognized in
4,300,400.00 2,862,000.00
other comprehensive income
IV. Other movements -9,396,511.12 -10,001,081.77
V. Closing balance 144,859,660.56 145,921,476.85
Contents and risks of defined benefit plan, and effect on amount, timing and uncertainty of future cash flows
√ Applicable □ Not Applicable
The Company provides the following supplementary post-retirement benefits for existing and future retirees: a.
supplementary pension benefits paid to certain existing and future retirees on a monthly or annual basis until their
death, which would not be adjusted in the future; b. old age allowance paid to certain existing and future retirees on
a monthly basis from the age of 70 until their death, which would not be adjusted in the future; c. one-time funeral
benefits paid to existing and future retirees upon their death, which would not be adjusted in the future; d. basic
medical insurance premium and critical illness medical premium paid on behalf of existing and future retirees until
their death or expiry of minimum payment period (25 years for males and 20 years for females), which would be
adjusted according to local policies; e. heating expenses paid to existing and future retirees until their death, which
would be adjusted according to local policies; f. retirement allowance and family worker allowance paid to certain
existing retirees until their death, which would not be adjusted in the future; and g. one-time incentives for one-
child family paid to certain future retirees upon their retirement, which would not be adjusted in the future.
Remarks on significant actuarial assumptions and sensitivity analysis results of defined benefit plan
√ Applicable □ Not Applicable
Items Closing balance Opening balance
Post-employment benefits: 2.75%; other long- Post-employment benefits: 3.00%; other long-
Discount rate
term benefits: 2.25% term benefits: 2.5%
China Life Insurance Mortality Table (2010- China Life Insurance Mortality Table (2010-
Death rate
2013) 2013)
Estimated growth rate of
0, 1.6%, 3%, 6%, 7%, 8%, 10% 0, 1.6%, 3%, 6%, 7%, 8%, 10%
employee benefits
The Company entrusted Towers Watson Management and Consulting (Shenzhen) Co., Ltd. to perform actuarial
evaluation on the present value of the above defined benefit plan, with an actuarial evaluation report issued thereon.
Other remarks
√ Applicable □ Not Applicable
Other long-term benefits refer to long-term paid leaves.
50. Provisions
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Opening balance Closing balance Reasons for balance
Guarantee provided for other entities
182 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Opening balance Closing balance Reasons for balance
Pending lawsuits 31,657,899.75 25,219,093.79
Including: Glass bottle lawsuit 25,511,559.35 25,135,234.82 [Note]
Labor lawsuit 6,030,000.00
Others 116,340.40 83,858.97
Products quality guarantee
Restructuring obligations
Onerous contract to be implemented
Payables for returned goods
Others
Total 31,657,899.75 25,219,093.79 /
Other remarks on significant assumption on material provisions and estimates
Note: Pursuant to the “Glass Beer Bottle Sales Contract” entered into between Xinjiang Wusu Brewery (Wusu) Co.,
Ltd. and Gaomi Shengtai Glass Products Co., Ltd. (the “Gaomi Company”) dated April 10, 2013, Gaomi Company
produced and supplied special glass beer bottles to Xinjiang Wusu Brewery (Wusu) Co., Ltd. In 2015, Xinjiang
Wusu Brewery (Wusu) Co., Ltd. checked the glass beer bottles and found quality problems, and then refused to
accept the bottles and did not make payments. In response, Gaomi Company brought a lawsuit against Xinjiang
Wusu Brewery Co., Ltd. and Xinjiang Wusu Brewery (Wusu) Co., Ltd. with the Intermediate People’s Court of
Xinjiang Autonomous Region in the same year. At the first instance, the court judged that Xinjiang Wusu Brewery
(Wusu) Co., Ltd. should pay 19,214,843.21 yuan to Gaomi Company. Both Xinjiang Wusu Brewery (Wusu) Co.,
Ltd. and Gaomi Company refused to accept the first-instance judgment and appealed to the Higher People’s Court
of Xinjiang Autonomous Region on July 22, 2016, and subsequently obtained the final judgment of the Higher
People’s Court of the Autonomous Region on January 17, 2017, which ruled that Xinjiang Wusu Brewery (Wusu)
Co., Ltd. should pay the above-mentioned goods payment to Gaomi Company. Gaomi Company refused to accept
the final judgment and applied to the Supreme People’s Court for a retrial; and the Supreme People’s Court made a
ruling on October 26, 2017, rejecting Gaomi Company’s application. Gaomi Company was still not satisfied with
the above processing results, and clearly stated that it planned to apply for a trial supervision procedure through the
Supreme People’s Procuratorate to change the result of the above second-instance judgment. Xinjiang Wusu
Brewery (Wusu) Co., Ltd. accrued provisions of 19,214,843.21 yuan based on the possible liquidated damages,
compensation and litigation fees according to the first-instance judgment. As Gaomi Company appealed to the
People’s Court of Wusu City and the People’s Court of Toutunhe District, Urumqi City on September 22, 2016 and
November 20, 2021, respectively, for the losses arising from production line suspension caused by the glass beer
bottle lawsuit, Xinjiang Wusu Brewery (Wusu) Co., Ltd. accrued provisions totaling 6,500,000.00 yuan based on
the possible compensation and litigation fees. As of December 31, 2023, litigation costs incurred totaled 579,608.39
yuan, while the final amount to be paid is still pending as of the date of approval for issuing the financial statements.
51. Deferred income
Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Opening Closing
Items Increase Decrease Reasons for balance
balance balance
Government Government grants
256,611,695.14 19,537,300.00 28,502,521.80 247,646,473.34
grants related to assets
183 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Total 256,611,695.14 19,537,300.00 28,502,521.80 247,646,473.34 /
Other remarks
□ Applicable √ Not Applicable
52. Other non-current liabilities
□ Applicable √ Not Applicable
53. Share capital
√ Applicable □ Not Applicable
Monetary unit: RMB
Movements
Opening Reserve Closing
Issue of Bonus
balance transferred to Others Subtotal balance
new shares shares
shares
Total
483,971,198.00 483,971,198.00
shares
Other remarks
None.
54. Other equity instruments
(1) Basic information of other financial instruments such as preferred shares or perpetual bonds outstanding
as of the balance sheet date
□ Applicable √ Not Applicable
(2) Current period movements of financial instruments such as preferred shares or perpetual bonds
outstanding at the balance sheet date
□ Applicable √ Not Applicable
Current period movements and reasons for the movements, and basis for relevant accounting treatments
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
55. Capital reserve
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Opening balance Increase Decrease Closing balance
Share/capital premium
Other capital reserve 7,728,100.00 8,294,435.00 16,022,535.00
Total 7,728,100.00 8,294,435.00 16,022,535.00
Other remarks on current period movements and reasons for the movements, etc.
Current increase was due to the recognition of equity incentives offered by Carlsberg Group to executives free of
charge.
184 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
56. Treasury shares
□ Applicable √ Not Applicable
57. Other comprehensive income (OCI)
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period cumulative
Less: OCI
Less: OCI previously
previously recognized
Current period Attributable to Attributable to
recognized but but
Items Opening balance cumulative Less: Income parent non-controlling Closing balance
transferred to transferred to
before income tax expenses company after shareholders
profit or loss in retained
tax tax after tax
the current earnings in
period the current
period
I. Items not to be
reclassified
-14,017,696.37 -1,977,768.90 551,701.42 -1,791,434.05 -738,036.27 -15,809,130.42
subsequently to
profit or loss
Including:
Remeasurements
-19,148,126.25 -4,300,400.00 -28,956.36 -2,687,156.73 -1,584,286.91 -21,835,282.98
of the defined
benefit plan
OCI not to be
transferred to profit
or loss under equity
method
Changes in fair
value of other
5,130,429.88 2,322,631.10 580,657.78 895,722.68 846,250.64 6,026,152.56
equity instrument
investments
Changes in fair
value of the
Company’s own
credit risk
II. Items to be
reclassified
474,775.84 -12,232,432.69 -10,004,118.83 -742,711.08 -751,087.62 -734,515.16 -276,311.78
subsequently to
profit or loss
Including: OCI to be
transferred to profit
or loss under equity
method
Changes in fair
value of other debt
investments
OCI arising from
financial assets
reclassification
Provision for credit
impairment loss of
other debt
investments
Cash flow hedging
474,775.84 -12,232,432.69 -10,004,118.83 -742,711.08 -751,087.62 -734,515.16 -276,311.78
reserves
Translation
reserves
Total -13,542,920.53 -14,210,201.59 -10,004,118.83 -191,009.66 -2,542,521.67 -1,472,551.43 -16,085,442.20
Other remarks on reconciliation of the effective portion of gains and losses on cash flow hedging into the initially
recognized amount of the hedged items, etc.
None.
185 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
58. Special reserve
□ Applicable √ Not Applicable
59. Surplus reserve
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 241,985,599.00 241,985,599.00
Discretionary surplus reserve
Reserve fund
Enterprise development fund
Others
Total 241,985,599.00 241,985,599.00
Remarks on surplus reserve, including current period movements and reasons for the movements
None.
60. Undistributed profit
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period
Items Preceding period comparative
cumulative
Balance before adjustment at the end of preceding
1,336,013,806.16 1,040,351,272.07
period
Add: Increase due to adjustment (or less: decrease) 20,717.28 6,040.91
Opening balance after adjustment 1,336,034,523.44 1,040,357,312.98
Add: Net profit attributable to owners of the parent
1,336,597,321.13 1,263,619,606.46
company
Less: Appropriation of statutory surplus reserve
Appropriation of discretionary surplus reserve
Appropriation of general risk reserve
Dividend payable on ordinary shares 1,258,325,114.80 967,942,396.00
Dividend on ordinary share converted to share
capital
Closing balance 1,414,306,729.77 1,336,034,523.44
Details of adjustments on opening balance of undistributed profit
Please refer to item V 40 of this section for details.
61. Operating revenue and operating cost
(1) Details
√ Applicable □ Not Applicable
1) Details
Monetary unit: RMB
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 14,459,332,122.29 7,274,545,460.90 13,696,216,606.60 6,702,990,258.86
Other operations 355,504,287.97 259,430,325.12 342,823,932.85 249,438,735.05
Total 14,814,836,410.26 7,533,975,786.02 14,039,040,539.45 6,952,428,993.91
Including: Revenue from contracts with
14,814,836,410.26 7,533,975,786.02 14,039,040,539.45 6,952,428,993.91
customers
186 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
2) Details of the top 5 customers with largest balances
Customers Operating revenue % to total
Customer 1 148,668,713.84 1.00
Customer 2 143,323,387.14 0.97
Customer 3 137,851,255.75 0.93
Customer 4 118,708,001.20 0.80
Customer 5 115,001,048.03 0.78
Subtotal 663,552,405.96 4.48
(2) Breakdown of operating revenue and operating cost
□ Applicable √ Not Applicable
Other remarks
√ Applicable □ Not Applicable
Breakdown of revenue
1) Breakdown of revenue from contracts with customers by goods or services
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Beer 14,441,498,095.03 7,257,400,295.48 13,696,216,606.60 6,702,990,258.86
Sale of packages,
373,338,315.23 276,575,490.54 342,823,932.85 249,438,735.05
waste materials, etc.
Subtotal 14,814,836,410.26 7,533,975,786.02 14,039,040,539.45 6,952,428,993.91
2) Breakdown of revenue from contracts with customers by operating regions
Please refer to item XVIII 6 of this section for details.
3) Breakdown of revenue from contracts with customers by time of transferring goods or rendering services
Items Current period cumulative Preceding period comparative
Recognized at a point in time 14,814,836,410.26 14,039,040,539.45
Subtotal 14,814,836,410.26 14,039,040,539.45
(3) Remarks on performance obligation
□ Applicable √ Not Applicable
(4) Remarks on transaction price allocated to the remaining performance obligations
□ Applicable √ Not Applicable
(5) Significant changes in contracts or significant adjustments on transaction price
□ Applicable √ Not Applicable
Other remarks
1) Information related to performance obligations
The Company’s performance obligations mainly refer to delivering beer products to distributors or their designated
carriers in accordance with the contract.
2) Contract liabilities with opening carrying amount of 1,613,662,896.71 yuan were carried over to revenue in the
current period.
62. Taxes and surcharges
√ Applicable □ Not Applicable
187 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Consumption tax 714,061,831.14 688,784,854.98
Business tax
Urban maintenance and construction tax 106,081,011.56 100,780,231.87
Education surcharge 82,105,608.19 77,533,745.75
Resources tax
Housing property tax 20,113,767.97 19,376,483.61
Land use tax 20,096,769.79 20,351,805.44
Vehicle and vessel use tax
Stamp duty 12,983,310.15 11,906,396.07
Others 2,106,931.22 2,124,772.60
Total 957,549,230.02 920,858,290.32
Other remarks
None.
63. Selling expenses
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Advertisement and marketing expenses 1,247,606,832.37 1,133,302,573.74
Employee benefits 779,258,534.27 725,946,110.37
Trademark licensing expenses 235,450,545.79 216,678,340.71
Business travelling expenses 65,307,615.67 60,294,791.93
Depreciation 52,013,887.76 47,135,522.24
Depreciation of right-of-use assets 21,608,000.00 19,475,000.00
Lease expenses 23,451,103.31 26,917,139.50
Amortization of intangible assets 19,383,559.45 17,959,828.76
Others 88,541,754.16 78,507,919.95
Total 2,532,621,832.78 2,326,217,227.20
Other remarks
None.
64. Administrative expenses
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Employee benefits 259,173,665.82 258,726,828.28
Office expenses and intermediary service
58,651,896.84 97,126,555.74
expenses
IT-related expenses 55,540,396.61 55,075,964.45
Amortization of intangible assets 27,526,304.10 25,339,748.16
Depreciation expenses 18,957,483.39 17,070,233.80
Business travelling expenses 14,608,494.02 6,833,691.74
Security and fire prevention expenses 10,583,329.55 9,753,934.63
Pollution discharge fees 8,811,293.59 8,560,050.43
Water and electricity expenses 5,028,136.63 4,941,871.28
Share-based payments 9,249,076.00 6,701,520.00
Depreciation of right-of-use assets 8,965,897.21 9,722,351.86
Others 17,574,764.00 34,717,598.56
Total 494,670,737.76 534,570,348.93
188 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Other remarks
None.
65. R&D expenses
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Employee benefits 13,668,815.71 53,300,332.47
Raw materials and revolving materials used 4,546,725.72 25,842,587.49
Power expenses 3,625,721.09 19,579,951.98
Depreciation 3,583,055.39 9,119,195.96
Other expenses 807,738.36 2,905,868.16
Total 26,232,056.27 110,747,936.06
Other remarks
None.
66. Financial expenses
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Interest expenses 5,921,669.09 3,696,843.83
Less: Interest income 71,308,016.27 65,718,589.46
Gains and losses on foreign exchange 132,417.76 275,744.53
Handling charges 591,532.79 691,152.32
Others [Note] 4,349,000.00 4,952,000.00
Total -60,313,396.63 -56,102,848.78
Other remarks
Note: It refers to interest expenses on net defined benefit liabilities of 4,161,000.00 yuan and interest expenses on
net long-term employee benefits liabilities of 188,000.00 yuan.
67. Other income
√ Applicable □ Not Applicable
Monetary unit: RMB
Classified by nature Current period cumulative Preceding period comparative
Government grants related to assets 28,502,521.80 28,112,910.68
Government grants related to income 30,399,687.22 28,061,036.73
Refund of handling fees for withholding individual
1,809,139.62 1,458,135.41
income tax
Total 60,711,348.64 57,632,082.82
Other remarks
None.
68. Investment income
√ Applicable □ Not Applicable
Monetary unit: RMB
189 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Current period Preceding period
Items
cumulative comparative
Investment income from long-term equity investments
62,294,135.01 56,279,080.37
under equity method
Investment income from disposal of long-term equity
investments
Investment income from held-for-trading financial assets
Dividend income from other equity instrument
344,606.28 344,606.28
investments
Interest income from debt investments
Interest income from other debt investments
Investment income from disposal of held-for-trading
3,936,674.52 11,322,859.61
financial assets
Investment income from disposal of other equity
instrument investments
Investment income from disposal of debt investments
Investment income from disposal of other debt
investments
Income from debt restructuring
Total 66,575,415.81 67,946,546.26
Other remarks
(1) Investment income from long-term equity investments under equity method
Investees Current period cumulative Preceding period comparative
Chongqing Jiawei Beer Co., Ltd. 62,294,135.01 56,279,080.37
Subtotal 62,294,135.01 56,279,080.37
69. Gains on net exposure to hedging risk
□ Applicable √ Not Applicable
70. Gains on changes in fair value
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period Preceding period
Items
cumulative comparative
Held-for-trading financial assets 202,000.00
Including: Gains on changes in fair value of derivative financial
instruments
Including: Gains on changes in fair value of financial assets
202,000.00
classified as at fair value through profit or loss
Held-for-trading financial liabilities
Investment property at fair value
Total 202,000.00
Other remarks
None.
71. Credit impairment loss
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Impairment loss of debt investments
190 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Impairment loss of other debt investments
Bad debts of long-term receivables
Impairment loss of financial guarantee
Bad debts -1,706,340.65 2,461,066.24
Total -1,706,340.65 2,461,066.24
Other remarks
None.
72. Assets impairment loss
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period Preceding period
Items
cumulative comparative
I. Impairment loss of contract assets
II. Inventory write-down loss and impairment loss of costs
-83,350,379.69 -78,848,619.27
to fulfill a contract [Note]
III. Impairment loss of long-term equity investments
IV. Impairment loss of investment property
V. Impairment loss of fixed assets -17,485,277.39 -2,082,570.02
VI. Impairment loss of construction materials
VII. Impairment loss of construction in progress
VIII. Impairment loss of productive biological assets
IX. Impairment loss of oil and gas assets
X. Impairment loss of intangible assets -459,733.59
XI. Impairment loss of goodwill
XII. Others
Total -100,835,657.08 -81,390,922.88
Other remarks
Note: It refers to the net amount of provision for inventory write-down after deducting allowances for deposits for
packages lent out that are expected to be irrecoverable.
73. Gains on asset disposal
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period Preceding period
Items
cumulative comparative
Gains on asset disposal -2,252,522.60 1,996,546.49
Total -2,252,522.60 1,996,546.49
Other remarks
None.
74. Non-operating revenue
Details
√ Applicable □ Not Applicable
Monetary unit: RMB
191 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Gains on disposal of non-
998,632.86 1,735,091.73 998,632.86
current assets
Including: Gains on disposal of
998,632.86 1,735,091.73 998,632.86
fixed assets
Gains on disposal of
intangible assets
Gains on exchange of non-cash
assets
Receiving of donations
Government grants
Wanzhou factory flood
21,980,000.00 21,980,000.00
insurance compensation
Others 5,794,201.78 5,413,038.35 5,794,201.78
Total 28,772,834.64 7,148,130.08 28,772,834.64
Other remarks
□ Applicable √ Not Applicable
75. Non-operating expenditures
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Losses on disposal of non-
4,969,122.90 6,417,735.09 4,969,122.90
current assets
Including: Losses on disposal
4,969,122.90 6,417,735.09 4,969,122.90
of fixed assets
Losses on disposal of
intangible assets
Losses on exchange of non-
cash assets
Donation expenditures 520,000.00 500,000.00 520,000.00
Others 387,567.38 417,484.88 387,567.38
Total 5,876,690.28 7,335,219.97 5,876,690.28
Other remarks
None.
76. Income tax expenses
(1) Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Current period income tax expenses 645,383,330.47 391,764,876.06
Deferred income tax expenses 18,738,666.86 320,085,761.22
Total 664,121,997.33 711,850,637.28
(2) Reconciliation of accounting profit to income tax expenses
√ Applicable □ Not Applicable
Monetary unit: RMB
192 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Current period
Items
cumulative
Profit before tax 3,375,690,552.52
Income tax expenses based on statutory/applicable tax rate 843,922,638.13
Effect of different tax rate applicable to subsidiaries -193,311,587.28
Effect of prior income tax reconciliation 8,337,708.05
Effect of non-taxable income -15,759,409.89
Effect of non-deductible costs, expenses and losses 3,645,040.50
Effect of utilization of deductible losses not previously recognized as deferred tax
-2,050.13
assets
Effect of deducible temporary differences or deductible losses not recognized as
31,559,953.29
deferred tax assets in the current period
Effect of recognition of temporary difference or deductible losses not previously
-14,314,496.90
recognized as deferred tax assets
Extra deduction of R&D expenses -3,762,576.46
Effect of tax rate movements on income tax expenses at the beginning of the current
3,806,778.02
period
Income tax expenses 664,121,997.33
Other remarks
□ Applicable √ Not Applicable
77. Other comprehensive income
√ Applicable □ Not Applicable
Please refer to item VII 57 of this section for details on other comprehensive income, net of income tax.
78. Notes to items of the cash flow statement
(1) Cash receipts related to operating activities
Other cash receipts related to operating activities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Cash receipts from security deposits 696,092,428.10 901,054,848.48
Cash receipts from deposits for packages 269,038,878.05 287,427,527.49
Cash receipts from interest income 60,552,373.64 65,461,700.04
Cash receipts from government grants,
refund of handling fees for withholding 51,746,126.84 59,559,872.14
individual income tax, etc.
Recovery of frozen funds 188,649,190.60
Others 26,019,009.08 27,290,217.69
Total 1,103,448,815.71 1,529,443,356.44
Remarks on other cash receipts related to operating activities:
None.
Other cash payments related to operating activities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Cash payments for advertising and
1,210,837,927.68 1,220,453,332.37
marketing expenses
193 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Current period cumulative Preceding period comparative
Cash payments for trademark licensing
239,676,999.92 210,352,345.55
fees
Cash payments for office expenses and
98,400,188.43 108,408,363.06
other service fees
Cash payments for business travelling
76,715,507.65 66,448,364.12
expenses
Cash payments for fees related to IT 63,305,923.63 55,558,429.60
Cash payments for removal, loading and
23,362,403.32 18,228,836.96
unloading
Cash payments for leases 22,933,917.21 14,518,941.78
Others 53,666,453.76 55,172,116.95
Total 1,788,899,321.60 1,749,140,730.39
Remarks on other cash payments related to operating activities:
None.
(2) Other cash receipts related to investing activities
Cash receipts related to significant investing activities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
1) Cash receipts from withdrawal of
investments
Structured deposits 3,936,674.52 1,512,411,748.50
Total 3,936,674.52 1,512,411,748.50
Remarks on cash receipts related to significant investing activities:
None.
Cash payments for significant investing activities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Cash payments for investments
Structured deposits 360,000,000.00 1,000,000,000.00
Subtotal 360,000,000.00 1,000,000,000.00
Total 360,000,000.00 1,000,000,000.00
Remarks on cash payments for significant investing activities:
None.
Other cash receipts related to investing activities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Difference between the consideration
paid for acquisition of subsidiaries and
2,518,499.55
cash and cash equivalents held by
subsidiaries on the acquisition date
Total 2,518,499.55
194 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Remarks on other cash receipts related to investing activities:
None.
Other cash payments related to investing activities
□ Applicable √ Not Applicable
(3) Cash receipts related to financing activities
Other cash receipts related to financing activities
□ Applicable √ Not Applicable
Other cash payments related to financing activities
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Cash payments for lease liabilities 38,940,556.09 33,725,924.40
Repayment of borrowings from
Guangzhou Carlsberg Investment Co., 17,000,000.00
Ltd. [Note]
Total 55,940,556.09 33,725,924.40
Remarks on other cash payments related to financing activities:
Note: Please refer to item XIV 5 (8) of this section for details.
Changes in liabilities arising from financing activities
√ Applicable □ Not Applicable
Monetary unit: RMB
Increase Decrease
Opening Changes in Closing
Items Changes Changes in Changes in
balance non-cash balance
in cash cash non-cash
[Note]
Lease liabilities
(including lease
101,934,190.08 115,153,245.44 38,940,556.09 14,393,432.38 163,753,447.05
liabilities due
within one year)
Other payables 17,000,000.00 17,000,000.00
Total 101,934,190.08 132,153,245.44 55,940,556.09 14,393,432.38 163,753,447.05
Note: In the current period, increase in changes in non-cash refers to other payables of 1,400,000.00 yuan transferred
in from Beijing Capital Brewing Golden Wheat Trading Co., Ltd. due to expansion of the consolidation scope, lease
liabilities of 63,248,927.48 yuan and other payables of 15,600,000.00 yuan transferred in from Jinbei Asia Pacific
(Beijing) Catering Co., Ltd. due to expansion of the consolidation scope, increased financing of 45,982,648.87 yuan
and currently accrued interest of 5,921,669.09 yuan.
(4) Remarks on cash flows presented on a net basis
√ Applicable □ Not Applicable
195 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Basis for presentation on a net
Items Relevant factual situation Financial effects
basis
Related cash flows refer Presentation on a net basis
to cash inflows and reflects the Company’s cash
Other cash receipts
outflows collected from flow situation, which is more
related to 1,468,483,750.81
and paid to customers useful for evaluating its
operating activities
with fast turnover, large payment ability and solvency
amount, and short period. and analyzing its cash flows.
Related cash flows refer Presentation on a net basis
Other cash to cash inflows and reflects the Company’s cash
payments related outflows collected from flow situation, which is more
1,468,483,750.81
to operating and paid to customers useful for evaluating its
activities with fast turnover, large payment ability and solvency
amount, and short period. and analyzing its cash flows.
(5) Significant activities not related to current cash receipts and payments but affect the financial position
of the Company or may affect the Company’s future cash flows and the financial effects
□ Applicable √ Not Applicable
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
√ Applicable □ Not Applicable
Monetary unit: RMB
Supplementary information Current period cumulative Preceding period comparative
1．Reconciliation of net profit to cash flows from operating activities:
Net profit 2,711,568,555.19 2,586,928,183.57
Add: Provision for assets impairment 100,835,657.08 81,390,922.88
Provision for credit impairment loss 1,706,340.65 -2,461,066.24
Depreciation of fixed assets, oil and gas
414,381,095.11 414,016,254.67
assets, productive biological assets
Amortization of right-of-use assets 37,240,394.12 31,609,351.86
Amortization of intangible assets 63,196,249.02 58,784,718.50
Amortization of long-term prepayments
Losses on disposal of fixed assets,
intangible assets and other long-term 2,252,522.60 -1,996,546.49
assets (Less: gains)
Fixed assets retirement loss (Less: gains) 3,970,490.04 4,682,643.36
Losses on changes in fair value (Less:
-202,000.00
gains)
Financial expenses (Less: gains) 5,921,669.09 3,696,843.83
Investment losses (Less: gains) -66,575,415.81 -67,946,546.26
Decrease of deferred tax assets (Less:
53,931,617.88 329,874,747.35
increase)
Increase of deferred tax liabilities (Less:
-35,192,951.02 -12,828,868.06
decrease)
Decrease of inventories (Less: increase) -111,789,119.11 -453,832,389.49
Decrease of operating receivables (Less:
-67,662,253.33 23,260,578.28
increase)
Increase of operating payables (Less:
-16,634,034.89 757,469,430.78
decrease)
Others
Net cash flows from operating activities 3,096,948,816.62 3,752,648,258.54
2．Significant investing and financing activities not related to cash receipts and payments:
Conversion of debt into capital
196 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Supplementary information Current period cumulative Preceding period comparative
Convertible bonds due within one year
Fixed assets leased in under finance
leases
3．Net changes in cash and cash equivalents:
Cash at the end of the period 2,700,076,206.04 3,396,809,241.14
Less: Cash at the beginning of the period 3,396,809,241.14 2,165,733,418.37
Add: Cash equivalents at the end of the
period
Less: Cash equivalents at the beginning of
the period
Net increase of cash and cash equivalents -696,733,035.10 1,231,075,822.77
(2) Net cash payments for the acquisition of subsidiaries
□ Applicable √ Not Applicable
(3) Net cash receipts from the disposal of subsidiaries
□ Applicable √ Not Applicable
(4) Composition of cash and cash equivalents
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
I. Cash 2,700,076,206.04 3,396,809,241.14
Including: Cash on hand 10,176.00
Cash in bank on demand for
2,699,523,751.37 3,396,809,241.14
payment
Other cash and bank balances on
542,278.67
demand for payment
Central bank deposit on demand for
payment
Deposit in other banks
Loans to other banks
II. Cash equivalents
Including: Bond investments maturing
within three months
III. Cash and cash equivalents at the end
2,700,076,206.04 3,396,809,241.14
of the period
Including: Cash and cash equivalents of
parent company or subsidiaries with use
restrictions
(5) Balances with use restrictions but still considered as cash and cash equivalents
□ Applicable √ Not Applicable
(6) Cash and bank balances not considered as cash and cash equivalents
√ Applicable □ Not Applicable
Monetary unit: RMB
197 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Current period Preceding period
Items Reasons
cumulative comparative
Accrued interest is not
Accrued interest of
11,823,993.51 1,068,350.88 considered as cash
seven-day call deposits
equivalents.
Deposits for letters of
316,100.00 Deposits are frozen.
guarantee
Deposits for litigation 503,436.10 Deposits are frozen.
Other deposits 500.00 Deposits are frozen.
Total 12,644,029.61 1,068,350.88 /
Other remarks:
□ Applicable √ Not Applicable
80. Notes to items of statement of changes in equity
Remarks on “Others” with balances at the end of prior year adjusted and the adjusted amount:
□ Applicable √ Not Applicable
81. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
□ Applicable √ Not Applicable
(2) Remarks on overseas operations. For significant overseas operating entities, their main operating places,
functional currencies and adoption basis shall be disclosed. Reasons for any changes in functional
currency shall also be disclosed.
□ Applicable √ Not Applicable
82. Leases
(1) The Company as lessee
√ Applicable □ Not Applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √ Not Applicable
Short-term leases and leases of low-value assets with simplified approach
√ Applicable □ Not Applicable
Items Current period cumulative Preceding period comparative
Expenses for short-term leases 28,587,956.49 29,041,574.10
Total 28,587,956.49 29,041,574.10
Sale and leaseback transactions and determination basis
□ Applicable √ Not Applicable
Cash flows related to leases totaled 66,139,107.22 yuan.
198 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(2) The Company as lessor
Operating lease
□ Applicable √ Not Applicable
Finance lease
□ Applicable √ Not Applicable
Reconciliation of undiscounted lease payments to net investment in the lease
□ Applicable √ Not Applicable
Undiscounted lease payments in the in the next five years
□ Applicable √ Not Applicable
(3) Recognition of profit or loss related to finance leases as a manufacturer or distributor
□ Applicable √ Not Applicable
Other remarks
None.
83. Others
□ Applicable √ Not Applicable
VIII. R&D costs
(1) Presented by nature of expenses
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Employee benefits 13,668,815.71 53,300,332.47
Consumed raw materials and revolving
4,546,725.72 25,842,587.49
materials
Power expenses 3,625,721.09 19,579,951.98
Depreciation 3,583,055.39 9,119,195.96
Others 807,738.36 2,905,868.16
Total 26,232,056.27 110,747,936.06
Including: R&D costs to be expensed 26,232,056.27 110,747,936.06
R&D costs to be capitalized
Other remarks:
None.
(2) Development expenditures of R&D projects eligible for capitalization
□ Applicable √ Not Applicable
199 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Significant capitalized R&D projects
□ Applicable √ Not Applicable
Provision for impairment of development expenditures
□ Applicable √ Not Applicable
Other remarks
None.
(3) Significant outsourced R&D projects in progress
□ Applicable √ Not Applicable
IX. Changes in the consolidation scope
1. Business combination not under common control
√ Applicable □ Not Applicable
(1) Business combination not under common control in the current period
√ Applicable □ Not Applicable
Monetary unit: RMB
Acquiree’s net
Proportion Determination Acquiree’s Acquiree’s cash
Equity Equity Equity profit from
of equity Acquisition basis for income from flows from
Acquirees acquisition acquisition acquisition acquisition
acquired date acquisition acquisition date acquisition date to
date cost method date to period
(%) date to period end period end
end
Completion of
Jinbei Asia Pacific
registration at
(Beijing) Catering Cash
10/10/2023 600,000.00 100.00 10/10/2023 administration 17,466,633.15 -7,724,030.43 -3,373,209.47
Co., Ltd. (the “Jinbei acquisition
for market
Asia Pacific”)
regulation
Beijing Capital Completion of
Brewing Golden registration at
Cash
Wheat Trading Co., 10/10/2023 2,500,000.00 100.00 10/10/2023 administration 2,242,680.54 -942,486.89 -1,624,512.29
acquisition
Ltd. (the “Beijing for market
Capital Brewing”) regulation
Other remarks:
1) Jinbei Asia Pacific
Pursuant to the “Agreement on Equity Transfer of Jinbei Asia Pacific (Beijing) Catering Co., Ltd.” entered into
between the subsidiary Carlsberg Chongqing Brewery Co., Ltd. and Jinbei Asia Pacific Co., Ltd. in September 2023,
Carlsberg Chongqing Brewery Co., Ltd. acquired 100% of equity of Jinbei Asia Pacific in cash, with a combination
cost of 0.60 million yuan at the acquisition date. As of December 31, 2023, the equity transfer was registered at
administration for market regulation.
2) Beijing Capital Brewing
Pursuant to the “Agreement on Equity Transfer of Beijing Capital Brewing Golden Wheat Trading Co., Ltd.” entered
into between the subsidiary Carlsberg Chongqing Brewery Co., Ltd. and Capital Brewing Company Limited in
September 2023, Carlsberg Chongqing Brewery Co., Ltd. acquired 100% of equity of Beijing Capital Brewing in
cash, with a combination cost of 2.50 million yuan at the acquisition date. As of December 31, 2023, the equity
transfer was registered at administration for market regulation.
200 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(2) Combination costs and goodwill
√ Applicable □ Not Applicable
Monetary unit: RMB
Combination costs Jinbei Asia Pacific Beijing Capital Brewing
--Cash 600,000.00 2,500,000.00
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
--Fair value of contingent considerations
--Acquisition-date fair value of equity held
before the acquisition date
--Others
Total combination costs 600,000.00 2,500,000.00
Less: Share of fair value of net identifiable
609,660.39 2,889,237.88
assets acquired
Goodwill/Balance of fair value of net
identified assets acquired after deducting -9,660.39 -389,237.88
combination costs
Determination method of fair value of combination costs
□ Applicable √ Not Applicable
Completion of performance commitments
□ Applicable √ Not Applicable
Main reasons for goodwill in large amount
□ Applicable √ Not Applicable
Other remarks:
None.
(3) Acquisition-date identifiable assets and liabilities of acquirees
√ Applicable □ Not Applicable
Monetary unit: RMB
Jinbei Asia Pacific Beijing Capital Brewing
Acquisition-date Acquisition-date Acquisition-date Acquisition-date
fair value carrying amount fair value carrying amount
Assets
Cash and bank
3,967,582.39 3,967,582.39 1,650,917.16 1,650,917.16
balances
Accounts
7,101,346.48 7,101,346.48 1,148,621.35 1,148,621.35
receivable
Inventories 1,567,895.13 1,567,895.13 1,935,242.52 1,832,444.40
Fixed assets 17,013,723.96 16,945,072.52 872,446.40 757,498.74
Intangible assets 412,999.11 382,168.45 185,470.00
Right-of-use asses 58,841,295.61 58,841,295.61
Others 858,182.28 858,182.28 47,408.17 47,408.17
Liabilities
201 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Accounts payable 25,904,437.09 25,904,437.09 2,950,867.72 2,950,867.72
Lease liabilities 63,248,927.48 63,248,927.48
Net assets 609,660.39 510,178.29 2,889,237.88 2,486,022.10
Less: Non-
controlling interest
Net assets acquired 609,660.39 510,178.29 2,889,237.88 2,486,022.10
Fair value determination method on identifiable assets and liabilities:
Pursuant to the equity transfer agreement entered into between Carlsberg Chongqing Brewery Co., Ltd. and Jinbei
Asia Pacific, Carlsberg Chongqing Brewery Co., Ltd. acquired 100% of equity of Jinbei Asia Pacific, and adjusted
the acquisition-date fair value of the fixed assets and intangible assets on the basis of the Appraisal Report
(CCWAAR (2023) No. 044) taking May 31, 2023 as the valuation benchmark date. Except for fixed assets and
intangible assets, the fair value of other assets and liabilities with no obvious appreciation or impairment is
determined based on the carrying amount at the acquisition date.
Pursuant to the equity transfer agreement entered into between Carlsberg Chongqing Brewery Co., Ltd. and Capital
Brewing Company Limited, Carlsberg Chongqing Brewery Co., Ltd. acquired 100% of equity of Beijing Capital
Brewing, and adjusted the fair value of the inventories, fixed assets and intangible assets on the basis of the Appraisal
Report (CCWAAR (2023) No. 043) taking May 31, 2023 as the valuation benchmark date. Except for inventories,
fixed assets and intangible assets, the fair value of other assets and liabilities with no obvious appreciation or
impairment is determined based on the carrying amount at the acquisition date.
Contingent liabilities of acquirees assumed in business combination:
None.
Other remarks:
None.
(4) Gains or losses on fair value remeasurement of equity held before the acquisition date
Transactions with business combinations achieved in stages and control obtained during the reporting period
□ Applicable √ Not Applicable
(5) Combination costs or fair value of acquiree’s identifiable assets/liabilities failed to be reasonably
determined at the acquisition date or at the end of current period
□ Applicable √ Not Applicable
(6) Other remarks
□ Applicable √ Not Applicable
2. Business combination under common control
□ Applicable√ Not Applicable
202 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
3. Reverse acquisition
□ Applicable √ Not Applicable
4. Disposal of subsidiaries
Transactions or events leading to loss of control over a subsidiary in the current period
□ Applicable √ Not Applicable
Other remarks:
□ Applicable √ Not Applicable
Disposal of subsidiaries in stages leading to loss of control in the current period
One-time disposal
□ Applicable √ Not Applicable
Other remarks:
□ Applicable √ Not Applicable
5. Changes in the consolidation scope due to other reasons
Remarks on changes in the consolidation scope due to other reasons (e.g., establishment/liquidation of subsidiaries,
etc.) and relevant conditions:
□ Applicable √ Not Applicable
6. Others
□ Applicable √ Not Applicable
X. Interest in other entities
1. Interest in subsidiaries
(1) Composition of the group
√ Applicable □ Not Applicable
Monetary unit: RMB
Holding
Business proportion (%) Acquisition
Subsidiaries Main operating place Registered capital Place of registration
nature method
Direct Indirect
Business
Carlsberg
Yubei District, Chongqing Yubei District, Beer combination not
Chongqing Brewery 850,000,000.00 51.42
City Chongqing City industry under common
Co., Ltd. [Note 1]
control
Hunan Chongqing
Economic Development Economic Development Beer Investment and
Beer Guoren Co., 200,000,000.00
Zone, Lixian, Hunan Zone, Lixian, Hunan industry establishment
Ltd. [Note 2]
Business
Chongqing Beer
Beer combination
Panzhihua Co., Ltd. Heshiba, Panzhihua City 100,555,500.00 Heshiba, Panzhihua City
industry under common
[Note 2]
control
Chongqing Beer Huashi Village, Deyuan Huashi Village, Deyuan Business
Beer
Group Chengdu Town, Pidu District, 140,800,000.00 Town, Pidu District, combination not
industry
Boke Beer Co., Ltd. Chengdu City Chengdu City under common
203 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Holding
Business proportion (%) Acquisition
Subsidiaries Main operating place Registered capital Place of registration
nature method
Direct Indirect
[Note 2] control
Business
Chongqing Beer Shao’e Street, Baixi
Shao’e Street, Baixi Town, Beer combination not
Yibin Co., Ltd. 50,000,000.00 Town, Yibin County,
Yibin County, Yibin City industry under common
[Note 2] Yibin City
control
Carlsberg Beer
Business
Enterprise
Beer combination
Management Chongqing City 648,580,000.00 Chongqing City
industry under common
(Chongqing) Co.,
control
Ltd. [Note 2]
Business
Kunming Huashi
Kunming City, Yunnan Kunming City, Yunnan Beer combination
Brewery Co., Ltd. 79,528,080.08
Province Province industry under common
[Note 2]
control
Carlsberg (China) Business
Dali City, Dali Bai Dali City, Dali Bai
Breweries and Beer combination
Autonomous Prefecture, 299,902,362.00 Autonomous Prefecture,
Trading Co., Ltd. industry under common
Yunnan Province Yunnan Province
[Note 2] control
Business
Xinjiang Wusu
Urumqi, Xinjiang Uygur Urumqi, Xinjiang Uygur Beer combination
Brewery Co., Ltd. 105,480,000.00
Autonomous Region Autonomous Region industry under common
[Note 2]
control
Business
Carlsberg Brewery
Huizhou City, Guangdong Huizhou City, Beer combination
(Guangdong) Co., 350,886,363.22
Province Guangdong Province industry under common
Ltd. [Note 2]
control
Business
Ningxia Xixia
Beer combination
Jianiang Brewery Yinchuan City 191,929,277.02 Yinchuan City
industry under common
Co., Ltd. [Note 2]
control
Carlsberg Brewery
Yancheng City, Jiangsu Yancheng City, Jiangsu Beer Investment and
(Jiangsu) Co., Ltd. 60,000,000.00
Province Province industry establishment
[Note 2]
Carlsberg
Enterprise
Tianhe District, Tianhe District, Beer Investment and
Management 50,000,000.00
Guangzhou City Guangzhou City industry establishment
Consulting Co.,
Ltd. [Note 2]
Carlsberg Brewery
Foshan City, Guangdong Foshan City, Guangdong Beer Investment and
(Foshan) Co., Ltd. 10,000,000.00
Province Province industry establishment
[Note 2]
Business
Jinbei Asia Pacific
Chaoyang District, Beijing Chaoyang District, Beer combination not
(Beijing) Catering 400,000.00
City Beijing City industry under common
Co., Ltd. [Note 2]
control
Beijing Capital Business
Brewing Golden Chaoyang District, Beijing Chaoyang District, Beer combination not
2,000,000.00
Wheat Trading Co., City Beijing City industry under common
Ltd. [Note 2] control
Chongqing Beer
Anning Town, Xichang Anning Town, Xichang Beer Investment and
Xichang Co., Ltd. 74,500,000.00
City City industry establishment
[Note 3]
Business
Carlsberg Tianmuhu
160,000,000.00 Beer combination
Brewery (Jiangsu) Liyang City Liyang City
industry under common
Co., Ltd. [Note 4]
control
Business
Carlsberg Brewery Economic Development Economic Development
64,000,000.00 Beer combination
(Anhui) Co., Ltd. Zone, Tianchang City, Zone, Tianchang City,
industry under common
[Note 4] Anhui Province Anhui Province
control
Korla, Bayingolin
Korla, Bayingolin Mongol Business
Xinjiang Wusu Mongol Autonomous
Autonomous Prefecture, 5,000,000.00 Beer combination
Brewery (Korla) Prefecture, Xinjiang
Xinjiang Uygur industry under common
Co., Ltd. [Note 5] Uygur Autonomous
Autonomous Region control
Region
204 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Holding
Business proportion (%) Acquisition
Subsidiaries Main operating place Registered capital Place of registration
nature method
Direct Indirect
Yining City, Ili Kazakh Yining City, Ili Kazakh Business
Xinjiang Wusu
Autonomous Prefecture, 20,000,000.00 Autonomous Prefecture, Beer combination
Brewery (Yining)
Xinjiang Uygur Xinjiang Uygur industry under common
Co., Ltd. [Note 5]
Autonomous Region Autonomous Region control
Business
Xinjiang Wusu Aksu Prefecture, Xinjiang Aksu Prefecture,
10,000,000.00 Beer combination
Brewery (Aksu) Uygur Autonomous Xinjiang Uygur
industry under common
Co., Ltd. [Note 5] Region Autonomous Region
control
Wusu City, Tacheng Business
Xinjiang Wusu Wusu City, Tacheng
30,000,000.00 Prefecture, Xinjiang Beer combination
Brewery (Wusu) Prefecture, Xinjiang Uygur
Uygur Autonomous industry under common
Co., Ltd. [Note 5] Autonomous Region
Region control
Xinjiang Wusu Beer
Urumqi, Xinjiang Uygur 30,000,000.00 Urumqi, Xinjiang Uygur Beer Investment and
Trading Co., Ltd.
Autonomous Region Autonomous Region industry establishment
[Note 5]
Remarks on inconsistency between holding proportion and voting right proportion in subsidiaries
Note 1: The Company and Guangzhou Carlsberg Investment Co., Ltd. holds 51.42% and 48.58% of equity of
Carlsberg Chongqing Brewery Co., Ltd. respectively.
Note 2: The Company’s holding subsidiary Carlsberg Chongqing Brewery Co., Ltd. holds 98.75% of equity of
Hunan Chongqing Beer Guoren Co., Ltd., 100.00% of equity of Chongqing Beer Panzhihua Co., Ltd., 100.00% of
equity of Chongqing Beer Group Chengdu Boke Beer Co., Ltd., 100.00% of equity of Chongqing Beer Yibin Co.,
Ltd., 100.00% of equity of Carlsberg Beer Enterprise Management (Chongqing) Co., Ltd., 100.00% of equity of
Kunming Huashi Brewery Co., Ltd., 100.00% of equity of Carlsberg (China) Breweries and Trading Co., Ltd.,
100.00% of equity of Xinjiang Wusu Brewery Co., Ltd., 99.00% of equity of Carlsberg Brewery (Guangdong) Co.,
Ltd., 70.00% of equity of Ningxia Xixia Jianiang Brewery Co., Ltd., 100.00% of equity of Carlsberg Brewery
(Jiangsu) Co., Ltd., 100.00% of equity of Carlsberg Enterprise Management Consulting Co., Ltd., 100.00% of equity
of Carlsberg Brewery (Foshan) Co., Ltd., 100.00% of equity of Jinbei Asia Pacific (Beijing) Catering Co., Ltd. and
100.00% of equity of Beijing Capital Brewing Golden Wheat Trading Co., Ltd.
Note 3: Chongqing Beer Panzhihua Co., Ltd. holds 100.00% of equity of Chongqing Beer Xichang Co., Ltd.
Note 4: Carlsberg Beer Enterprise Management (Chongqing) Co., Ltd. holds 100% of equity of Carlsberg Tianmuhu
Brewery (Jiangsu) Co., Ltd. and 75% of equity of Carlsberg Brewery (Anhui) Co., Ltd.
Note 5: Xinjiang Wusu Brewery Co., Ltd. holds 100% of equity of Xinjiang Wusu Brewery (Korla) Co., Ltd.,
Xinjiang Wusu Brewery (Yining) Co., Ltd., Xinjiang Wusu Brewery (Aksu) Co., Ltd., Xinjiang Wusu Brewery
(Wusu) Co., Ltd. and Xinjiang Wusu Beer Trading Co., Ltd.
Basis for the control of an investee while holding its half or less than half voting rights, and the non-control of an
investee while holding its more than half voting rights:
None.
Basis for control of significant structured entities brought into the consolidation scope:
None.
Basis for determining an entity being acting as an agent or a principal:
205 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
None.
Other remarks:
None.
(2) Significant not wholly-owned subsidiaries
√ Applicable □ Not Applicable
Monetary unit: RMB
Holding
Non-controlling Dividend declared to Closing balance of
proportion of
Subsidiaries shareholders’ profit non-controlling non-controlling
non-controlling
or loss shareholders interest
shareholders
Carlsberg Chongqing
48.58% 1,374,971,234.06 1,428,437,323.80 1,511,947,928.36
Brewery Co., Ltd.
Remarks on inconsistency between holding proportion and voting right proportion of non-controlling shareholders
in subsidiaries:
□ Applicable √ Not Applicable
Other remarks:
□ Applicable √ Not Applicable
(3) Main financial information of significant not wholly-owned subsidiaries
√ Applicable □ Not Applicable
Monetary unit: RMB Ten Thousand
Closing balance Opening balance
Subsidiaries Current Non-current Current Non-current Total Non-current Current Non-current Total
Total assets Current assets Total assets
assets assets liabilities liabilities liabilities assets liabilities liabilities liabilities
Carlsberg Chongqing
464,458.31 694,838.17 1,159,296.48 817,389.01 49,220.58 866,609.59 509,469.16 672,106.21 1,181,575.37 826,259.35 50,111.77 876,371.12
Brewery Co., Ltd.
Current period cumulative Preceding period comparative
Subsidiaries Total Total
Operating Cash flows from Operating Cash flows from
Net profit comprehensive Net profit comprehensive
revenue operating activities revenue operating activities
income income
Carlsberg Chongqing Brewery
1,481,483.64 278,150.55 277,850.34 316,167.49 1,403,904.05 267,538.87 267,870.56 380,964.24
Co., Ltd.
Other remarks:
None.
(4) Significant restriction on use of the group assets and liquidation of the group liabilities
□ Applicable √ Not Applicable
(5) Financial or other support provided for structured entities brought into the consolidation scope
□ Applicable √ Not Applicable
Other remarks:
□ Applicable √ Not Applicable
206 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
2. Transactions resulting in changes in subsidiaries’ equity but without losing control
□ Applicable √ Not Applicable
3. Interest in joint ventures or associates
√ Applicable □ Not Applicable
(1) Significant joint ventures or associates
√ Applicable □ Not Applicable
Holding Accounting
Main proportion (%) treatment on
Joint ventures or Place of Business
operating investments in
associates registration nature
place Direct Indirect joint ventures or
associates
Chongqing Jiawei Chongqing Chongqing Production
Beer Co., Ltd. Jianqiao Jianqiao and sales of 33.00 Equity method
[Note] Industrial Park Industrial Park beers
Remarks on inconsistency between holding proportion and voting right proportion in joint ventures or associates:
Note: The Company’s holding subsidiary Carlsberg Chongqing Brewery Co., Ltd. holds 33.00% of equity of
Chongqing Jiawei Beer Co., Ltd.
Basis for significant influence over an entity on which the Company held less than 20% voting rights or insignificant
influence over an entity on which the Company held more than 20% voting rights:
None.
(2) Main financial information of significant joint ventures
□ Applicable √ Not Applicable
(3) Main financial information of significant associates
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance/ Opening balance/
Current period cumulative Preceding period comparative
Chongqing Jiawei Beer Co., Chongqing Jiawei Beer Co.,
Ltd. Ltd.
Current assets 609,090,010.38 1,082,719,631.91
Non-current assets 187,354,131.99 174,783,077.23
Total assets 796,444,142.37 1,257,502,709.14
Current liabilities 281,361,331.57 268,511,026.17
Non-current liabilities 88,997,369.60 90,204,164.62
Total liabilities 370,358,701.17 358,715,190.79
Non-controlling interest
Equity attributable to owners of parent
426,085,441.20 898,787,518.35
company
Proportionate share in net assets 140,608,195.59 296,599,881.05
Adjustments
207 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Closing balance/ Opening balance/
Current period cumulative Preceding period comparative
Chongqing Jiawei Beer Co., Chongqing Jiawei Beer Co.,
Ltd. Ltd.
-- Goodwill
-- Unrealized profit in internal transactions
-- Others
Carrying amount of investments in associates 140,608,195.59 296,599,881.05
Fair value of equity investments in associates in
association with quoted price
Operating revenue 547,202,765.70 508,334,306.85
Net profit 188,770,106.09 170,542,667.79
Net profit of discontinued operations
Other comprehensive income
Total comprehensive income 188,770,106.09 170,542,667.79
Dividend from associates received in the
218,285,820.47
current period
Other remarks
The above financial data is based on the management report provided by Chongqing Jiawei Beer Co., Ltd., taking
the valuation appreciation into account.
(4) Aggregated financial information of insignificant joint ventures and associates
□ Applicable √ Not Applicable
(5) Significant restrictions on remittance of fund from joint ventures or associates to the Company
□ Applicable √ Not Applicable
(6) Excess losses incurred by joint ventures or associates
□ Applicable √ Not Applicable
(7) Unrecognized commitments related to investments in joint ventures
□ Applicable √ Not Applicable
(8) Contingent liabilities related to investments in joint ventures or associates
□ Applicable √ Not Applicable
4. Significant joint operations
□ Applicable √ Not Applicable
5. Interest in unconsolidated structured entities
Remarks on unconsolidated structured entities:
□ Applicable √ Not Applicable
208 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
6. Others
□ Applicable √ Not Applicable
XI. Government grants
1. Government grants recognized based on amounts receivable during the reporting period
□ Applicable √ Not Applicable
Reasons for not receiving government grants receivable at the expected time point
□ Applicable √ Not Applicable
2. Liabilities related to government grants
√ Applicable □ Not Applicable
Monetary unit: RMB
Amount included Amount
Opening into non- transferred Other Closing Related to
Items Increase
balance operating into other changes balance assets/income
revenue income
Deferred Related to
256,611,695.14 19,537,300.00 28,502,521.80 247,646,473.34
income assets
Total 256,611,695.14 19,537,300.00 28,502,521.80 247,646,473.34
3. Government grants included into profit or loss
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Related to assets 28,502,521.80 28,112,910.68
Related to income 30,399,687.22 28,061,036.73
Total 58,902,209.02 56,173,947.41
Other remarks:
None.
XII. Risks related to financial instruments
1. Risks of financial instruments
√ Applicable □ Not Applicable
In risk management, the Company aims to seek the appropriate balance between the risks and benefits from its use
of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on the
Company’s financial performance, so as to maximize the profits of shareholders and other equity investors. Based
on such risk management objectives, the Company’s risk management policies are established to identify and
analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
adherence to limits on a timely and reliable basis.
The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit
risk, liquidity risk, and market risk. The Management has deliberated and approved policies concerning such risks,
and details are:
209 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing
to discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date, the Company assesses whether the credit risk on a financial instrument has increased
significantly since initial recognition. When assessing whether the credit risk has increased significantly since initial
recognition, the Company takes into account reasonable and supportable information, which is available without
undue cost or effort, including qualitative and quantitative analysis based on historical data, external credit risk
rating, and forward-looking information. The Company determines the changes in default risk of financial
instruments during the estimated lifetime through comparison of the default risk at the balance sheet date and the
initial recognition date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly when one or more of
the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability of default
in the remaining lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position,
present or expected changes in technology, market, economy or legal environment that will have significant adverse
impact on the debtor’s repayment ability;
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred, of which the
standard is consistent with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having
granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss given default, and
exposure to default risk. The Company develops a model of the probability of default, loss given default, and
exposure to default risk on the basis of quantitative analysis of historical data (e.g., counterparty rating, guarantee
measures and collateral type, payment method, etc.) and forward-looking information.
3. Please refer to item VII 5 and 9 of this section for details on the reconciliation table of opening balance and
closing balance of provision for losses of financial instrument.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control
such risks, the Company has taken the following measures:
210 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively
high credit levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The Company
selects credible and well-reputed customers based on credit assessment result, and conducts ongoing monitoring on
balance of receivables, to avoid significant risks in bad debts.
As the Company only conducts business with credible and well-reputed third parties, collateral is not required from
customers. The Company manages credit risk aggregated by customers. As of December 31, 2023, the Company
held no collateral or other credit enhancement on balance of receivables due to the short settlement period between
the Company and distributors and the effective collection of payments.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at
the balance sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated
with cash or other financial assets settlement, which is possibly attributable to failure in selling financial assets at
fair value on a timely basis, or failure in collecting liabilities from counterparties of contracts, or early redemption
of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company utilizes financing tools such as credit terms with suppliers, etc. and adopts
short-term financing methods to maintain a balance between financing sustainability and flexibility.
Financial liabilities classified based on remaining time period till maturity
Closing balance
Items Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Derivative
financial 15,408,026.80 15,408,026.80 15,408,026.80
liabilities
Accounts
2,607,629,899.17 2,607,629,899.17 2,607,629,899.17
payable
Other payables 3,326,996,153.10 3,326,996,153.10 3,326,996,153.10
Non-current
liabilities due 42,382,811.96 42,382,811.96 42,382,811.96
within one year
Lease liabilities 121,370,635.09 143,345,637.22 71,615,016.01 71,730,621.21
Subtotal 6,113,787,526.12 6,135,762,528.25 5,992,416,891.03 71,615,016.01 71,730,621.21
(Continued)
December 31, 2022
Items Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Derivative
financial 2,616,336.56 2,616,336.56 2,616,336.56
liabilities
Accounts
2,497,671,747.37 2,497,671,747.37 2,497,671,747.37
payable
211 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
December 31, 2022
Items Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Other payables 3,490,319,176.38 3,490,319,176.38 3,490,319,176.38
Non-current
liabilities due 24,005,592.21 24,005,592.21 24,005,592.21
within one year
Lease liabilities 77,928,597.87 98,843,891.74 45,796,146.66 53,047,745.08
Subtotal 6,092,541,450.39 6,113,456,744.26 6,014,612,852.52 45,796,146.66 53,047,745.08
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market interest rate. The Company’s fair value interest risks arise from fixed-rate
financial instruments, while the cash flow interest risks arise from floating-rate financial instruments. The Company
determines the proportion of fixed-rate financial instruments and floating-rate financial instruments based on the
market environment, and maintains a proper financial instruments portfolio through regular review and monitoring.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument
resulted from changes in exchange rate. The Company is operated in mainland China, whose main activities are
denominated in RMB, hence, the Company bears insignificant market risk arising from foreign exchange changes.
2. Hedging
(1) Risk management of hedging business
√ Applicable □ Not Applicable
Economic Achievement
relationships of expected Effect of
Corresponding risk management Qualitative and quantitative between hedged risk corresponding hedging
Items
strategies and objectives information on hedged risk items and related management activities on risk
hedging objectives on exposure
instruments effectiveness
The approval procedures of
The purchase price of aluminum, foreign hedges carried out by the
one of the significant packaging Company using self-owned
materials for beer production, has funds comply with relevant Volume of
Exposure to
fluctuated considerably due to the national laws and regulations, commodity
commodity Probable mismatch
influence of macroeconomy in and hedges carried out to avoid swaps
swaps and between the volume
recent years. In order to ensure the fluctuations in price of matches
Cash expected of commodity swaps
relative stability of product costs aluminum were conductive to volume of
flow future and expected future
and achieve stable operation, the controlling business risks and expected
hedges purchases purchases results in
Company analyzed the expected improving the Company’s future
moves in the hedge
aluminum purchase transactions, capability to withstand the purchases
opposite ineffectiveness
based on which the Company fluctuations in the market, and and hedges
direction
carried out hedges by futures, regulations of the “Management are effective
options, swaps and other derivative Measures for Foreign Hedges”.
instruments. Please refer to Note 1 for
quantitative information.
Other remarks
212 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
√ Applicable □ Not Applicable
Note 1: Quantitative analysis on cash flow hedges
Hedge effectiveness
Hedging
Categories Hedged risks Current period Accumulated amount at the end of
instruments
cumulative the period (hedging reserve)
Cash flow Commodity Fluctuation in price
-2,228,313.86 -1,015,294.02
hedges swaps of aluminum
(2) Conducting eligible hedging businesses and applying hedge accounting
√ Applicable □ Not Applicable
Monetary unit: RMB
Cumulative fair value
Carrying amount hedge adjustments of Hedge Relevant effects of hedge
related to hedged hedged items included effectiveness and accounting on the
Items
items and hedging in the carrying sources of Company’s financial
instruments amount of recognized ineffective portion statements
hedged items
Type of hedging risk
Volume of
Derivative financial assets:
commodity swaps
14,392,732.78;
matches volume
Credit risk, liquidity derivative financial
-1,015,294.02 -10,004,118.83 of expected future
risk liabilities: 15,408,026.80;
purchases and
other comprehensive
hedges are
income: -1,485,602.78
effective
Categories of hedges
Volume of
Derivative financial assets:
commodity swaps
14,392,732.78;
matches volume
derivative financial
Cash flow hedges -1,015,294.02 -10,004,118.83 of expected future
liabilities: 15,408,026.80;
purchases and
other comprehensive
hedges are
income: -1,485,602.78
effective
Other remarks
□ Applicable √ Not Applicable
(3) Conducting hedges for risk management with expectation to achieve risk management objectives but
not applying hedge accounting
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
3. Financial assets transfer
(1) Ways of financial assets transfer
□ Applicable √ Not Applicable
(2) Financial assets derecognized due to transfer
□ Applicable √ Not Applicable
213 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(3) Continuing involvement in the transferred financial assets
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
XIII. Fair value disclosure
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
√ Applicable □ Not Applicable
Monetary unit: RMB
Fair value as at the balance sheet date
Items Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Recurring fair
value measurement
(I) Held-for-trading
14,392,732.78 360,202,000.00 374,594,732.78
financial assets
1. Financial assets
measured as at fair
360,202,000.00 360,202,000.00
value through profit
or loss
(1) Debt instrument
investments
(2) Equity
instrument
investments
(3) Others 360,202,000.00 360,202,000.00
2. Financial assets
designated as at fair
value through profit
or loss
(1) Debt instrument
investments
(2) Equity
instrument
investments
3. Derivative
14,392,732.78 14,392,732.78
financial assets
(II) Other debt
investments
(III) Other equity
instrument 16,625,962.83 16,625,962.83
investments
(IV) Investment
property
1. Land use right
held for lease
2. Buildings for lease
3. Land use right
held for transfer after
appreciation
(V) Biological assets
1. Consumptive
biological assets
2. Productive
214 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Fair value as at the balance sheet date
Items Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
biological assets
Total assets at
recurring fair value 14,392,732.78 16,625,962.83 360,202,000.00 391,220,695.61
measurement
(VI) Held-for-
15,408,026.80 15,408,026.80
trading liabilities
1. Financial
liabilities measured
as at fair value
through profit or loss
Including: Held-for-
trading bonds issued
Derivative
financial
liabilities
Others
2. Financial
liabilities designated
as at fair value
through profit or loss
3. Derivative
15,408,026.80 15,408,026.80
financial liabilities
Total liabilities at
recurring fair value 15,408,026.80 15,408,026.80
measurement
II. Non-recurring
fair value
measurement
(I) Assets held for
sale
Total assets at non-
recurring fair value
measurement
Total liabilities at
non-recurring fair
value measurement
2. Basis for determining level 1 fair value at recurring and non-recurring fair value measurement
√ Applicable □ Not Applicable
The amounts of derivative financial assets and derivative financial liabilities were determined based on the bank
statements provided by the financial institutions.
3. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2 fair value
at recurring and non-recurring fair value measurement
√ Applicable □ Not Applicable
The Company took level 2 inputs as the fair value as the shares of Bank of Guizhou Co., Ltd. (the “Guizhou Bank”)
held by the Company cannot be publicly transferred in H-share market. The fair value per share of equity investment
in Guizhou Bank as at December 31, 2023 was measured based on the net assets per share of Guizhou Bank as at
June 30, 2023 disclosed in the latest interim report under certain discount method.
215 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
4. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3 fair value
at recurring and non-recurring fair value measurement
√ Applicable □ Not Applicable
The Company’s held-for-trading financial assets refer to structured deposits, which are determined on the basis of
the annualized rates of return provided by the banks’ RMB financial product statement for reference.
The Company’s other non-current financial assets refer to equity investments in Xinjiang Guozhiming Packaging
Co., Ltd., which has been closed in previous year and is a non-public interest entity. The Management has made full
provisions for impairment on such entity in previous year due to its high going concern risk.
5. Items for level 3 recurring fair value measurement, a reconciliation from the opening balances to the
closing balances, and sensitive analysis on unobservable inputs
□ Applicable √ Not Applicable
6. Items at recurring fair value measurement with inter-level transfer, and reasons and policies for
determining inter-level transfer time
□ Applicable √ Not Applicable
7. Changes in valuation techniques in the current period and reasons for changes
□ Applicable √ Not Applicable
8. Fair value of financial assets and liabilities not at fair value
□ Applicable √ Not Applicable
9. Others
□ Applicable √ Not Applicable
XIV. Related party relationships and transactions
1. Parent company of the Company
√ Applicable □ Not Applicable
Remarks on parent company of the Company
Carlsberg Foundation is the Company’s actual controller and controls the Company’s controlling shareholder
Carlsberg Breweries A/S, which holds 42.54% and 17.46% of the Company’s equity through Carlsberg Brewery
Hong Kong Limited and Carlsberg Chongqing Limited respectively.
The Company’s ultimate controlling party is Carlsberg Foundation.
Other remarks:
None.
216 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
2. Subsidiaries of the Company
Please refer to relevant items for details on the Company’s subsidiaries.
√ Applicable □ Not Applicable
Please refer to item X of this section on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to relevant items for details on the Company’s significant joint ventures and associates.
√ Applicable □ Not Applicable
Please refer to item X of this section on the Company’s significant joint ventures and associates.
Details of other joint ventures or associates carrying out related party transactions with the Company in the current
period or in preceding period but with balance in the current period are as follows:
√ Applicable □ Not Applicable
Joint ventures or associates Relationships with the Company
Chongqing Jiawei Beer Co., Ltd. Associate
Other remarks
□ Applicable √ Not Applicable
4. Other related parties of the Company
√ Applicable □ Not Applicable
Related parties Relationships with the Company
Under common control of the Company’s ultimate controlling
Guangzhou Carlsberg Investment Co., Ltd.
party
Under common control of the Company’s ultimate controlling
Carlsberg Trading (Shenzhen) Co., Ltd.
party
Under common control of the Company’s ultimate controlling
Carlsberg Marketing Sdn Bhd
party
Under common control of the Company’s ultimate controlling
Carlsberg Supply Company AG
party
Under common control of the Company’s ultimate controlling
Cambrew Limited
party
Under common control of the Company’s ultimate controlling
Carlsberg Breweries A/S
party
Under common control of the Company’s ultimate controlling
Carlsberg Brewery Hong Kong Limited
party
Under common control of the Company’s ultimate controlling
Carlsberg Singapore Pte Ltd
party
Under common control of the Company’s ultimate controlling
Lao Brewery Co., Ltd.
party
Under significant influence of the Company’s ultimate
Super Bock Bebidas, S.A.
controlling party
Beijing Capital Brewing [Note] Associate of the Company’s controlling shareholder
Jinbei Asia Pacific [Note] Associate of the Company’s controlling shareholder
Beijing Capital Brewing Golden Wheat Trading Under common control of the Company’s ultimate controlling
Co., Ltd. party since October 2023
Under common control of the Company’s ultimate controlling
Jinbei Asia Pacific (Beijing) Catering Co., Ltd.
party since October 2023
Note: In September 2023, the subsidiary Carlsberg Chongqing Brewery Co., Ltd. entered into equity transfer
217 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
agreements with Jinbei Asia Pacific Co., Ltd. and Capital Brewing Company Limited, under which Carlsberg
Chongqing Brewery Co., Ltd. acquired 100.00% of equity of Jinbei Asia Pacific and Beijing Capital Brewing
respectively. The equity transfers were completed in October 2023. Therefore, Jinbei Asia Pacific and Beijing
Capital Brewing became entities within the consolidation scope of the Company since October 2023, and the current
period cumulative of the related party transactions is the transaction amount from January to September 2023.
Other remarks
None.
5. Related party transactions
(1) Purchase and sale of goods, rendering and receiving of services
Purchase of goods and receiving of services
√ Applicable □ Not Applicable
Monetary unit: RMB
Content of Current period Preceding period
Related parties
transactions cumulative comparative
Purchase of goods
Chongqing Jiawei Beer Co., Ltd. 540,257,796.00 501,780,646.32
[Note]
Carlsberg Supply Company AG Purchase of goods 106,708.48 70,774.58
Beijing Capital Brewing Purchase of goods 91,080.00 141,965.77
Purchase of materials,
Chongqing Jiawei Beer Co., Ltd. 14,078.79 116,982.08
etc.
Total 540,469,663.27 502,110,368.75
Note: Please refer to item XIV 5 (8) of this section for details on exclusive sales of purchase of beers.
Sale of goods and rendering of services
√ Applicable □ Not Applicable
Monetary unit: RMB
Current period Preceding period
Related parties Content of transaction
cumulative comparative
Carlsberg Brewery Hong Kong
Sales of goods, etc. 70,980,668.29 70,168,212.54
Limited
Carlsberg Singapore Pte Ltd Sales of goods 1,740,410.78 2,448,717.98
Cambrew Limited Sales of goods 1,035,486.36 1,309,978.37
Jinbei Asia Pacific Sales of goods 773,161.09 699,577.16
Lao Brewery Co., Ltd. 173,216.66
Chongqing Jiawei Beer Co., Ltd. Sales of goods 9,702.41 264,948.96
Carlsberg Marketing Sdn Bhd Sales of goods 9,132.84 192,183.86
Total 74,721,778.43 75,083,618.87
Remarks on purchase and sale of goods, rendering and receiving of services
√ Applicable □ Not Applicable
Note: The transaction amounts presented in item XIV 5 of this section were tax-excluded amounts.
(2) Related party trust/contracting and consignation/outsourcing
The Company’s trust/contracting:
□ Applicable √ Not Applicable
218 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Remarks on related party trust/contracting
□ Applicable √ Not Applicable
The Company’s consignation/outsourcing
□ Applicable √ Not Applicable
Remarks on related party consignation/outsourcing
□ Applicable √ Not Applicable
(3) Related party leases
The Company as the lessor:
□ Applicable √ Not Applicable
The Company as the lessee:
□ Applicable √ Not Applicable
Remarks on related party leases
□ Applicable √ Not Applicable
(4) Related party guarantees
The Company as the guarantor
□ Applicable √ Not Applicable
The Company as the guaranteed party
□ Applicable √ Not Applicable
Remarks on related party guarantees
□ Applicable √ Not Applicable
(5) Call loans between related parties
□ Applicable √ Not Applicable
(6) Assets transfer and debt restructuring of the related parties
□ Applicable √ Not Applicable
(7) Key management’s emoluments
√ Applicable □ Not Applicable
Monetary unit: RMB Ten Thousand
Items Current period cumulative Preceding period comparative
219 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Key management’s emoluments 2,663.55 2,308.27
(8) Other related party transactions
√ Applicable □ Not Applicable
1. Related party licensing
(1) The Company as the licensee
Preceding period
Related parties Current period cumulative
comparative
Carlsberg Breweries A/S [Note 1] 234,349,406.25 215,460,314.92
Beijing Capital Brewing [Note 2] 1,101,139.54 1,218,025.79
Subtotal 235,450,545.79 216,678,340.71
Note 1: Carlsberg Breweries A/S granted the Company a license to use trademarks including Carlsberg, Tuborg,
Carlsberg LIGHT, Kronenbourg 1664, Jolly Shandy, OMERSBY, etc., with the licensing period as same as the
registration validity period of licensed trademarks agreed in trademark licensing contract and its appendix. It was
agreed by both parties that trademark licensing fees should be calculated based on the Company’s net sales revenue
from the production and sales of products with licensed trademark in the calendar year. Details of rate of licensing
fees are as follows: 4% for Tuborg, 5% for Carlsberg, Jolly Shandy and SOMERSBY, 6% for Kronenbourg 1664
(excluding Blanc series products), and 7% for Blanc series products.
Note 2: Beijing Capital Brewing granted the Company a license to use the trademark of JingA, with the licensing
period as same as the registration validity period of licensed trademarks agreed in trademark licensing contract and
its appendix. It was agreed by both parties that trademark licensing fees should be calculated at 6% of Company’s
net sales revenue from the production and sales of products with licensed trademark in the calendar year.
(2) The Company as the licensor
Related parties Current period cumulative Preceding period comparative
Carlsberg Brewery Hong Kong Limited [Note] 118,353.59 11,676.51
Subtotal 118,353.59 11,676.51
Note: The Company granted Carlsberg Brewery Hong Kong Limited a license to use the trademark of Wusu Beer,
with the licensing period as same as the registration validity period of licensed trademarks agreed in trademark
licensing contract and its appendix. It was agreed by both parties that trademark licensing fees should be calculated
based on the Company’s net sales revenue from the production and sales of products with licensed trademark in the
calendar year. Details of rate of licensing fees are as follows: 1.25% from January 1, 2022 to December 31, 2022;
2.50% from January 1, 2023 to December 31, 2023; and 3.75% from January 1, 2024.
2. Granted production
Super Bock Bebidas, S.A. granted Carlsberg Tianmuhu Brewery (Jiangsu) Co., Ltd. to produce beer with trademark
of “Super Bock” and sell it to the designated third party. In the current period, 295.79 kiloliters of beer were
produced and the sales amount was 992,067.71 yuan.
3. Related party exclusive sales agreements
Pursuant to the “Framework Agreement on Exclusive Sales of Products” entered into between the Company and
Chongqing Jiawei Beer Co., Ltd. (“Jiawei Beer”) in January 2009, Jiawei Beer would exclusively produce beers
with trademark of Shancheng and sell all of the beers produced to the Company within the term of the agreement.
220 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Based on Jiawei Beer’s annual production capacity of 0.15 million kiloliters of beers in the current period and
market demand, and the actual production and sales volume of 80,000 kiloliters in 2008, the Company agreed that
the sales volume of beers from Jiawei Beer would increase by 14,000 kiloliters each year from 2009 to 2013,
ensuring that the sales volume would reach 0.15 million kiloliters in 2013 and keep up with the increase in the total
production and sales volume of the Company’s beer enterprises in Jiulongpo District and North New District of
Chongqing from 2014. The selling prices of beers from Jiawei Beer should be determined in accordance with the
ex-factory prices of beers in the Company’s beer enterprises in Jiulongpo District and North New District of
Chongqing with the same variety, specification and market, and the average price of beers from Jiawei Beer per
kiloliter should be the same as that produced by the Company’s beer enterprises in Jiulongpo District and North
New District of Chongqing. In the meantime, Jiawei Beer should pay for the selling expenses in accordance with
the quantity of beers sold by the Company. It was agreed that, from 2014, Jiawei Beer should pay the selling
expenses at 100.00 yuan per kiloliter for the part of beers with sales volume less than 0.15 million kiloliters
(inclusive), and pay the selling expenses in accordance with the average selling expenses per kiloliter of beers in
the Company’s beer enterprises in Jiulongpo District and North New District of Chongqing for the part exceeding
0.15 million kiloliters. The validity period of the agreement is 20 years. The matters related to exclusive sales of
beers mentioned above have been deliberated and approved in the Company’s first extraordinary shareholders’
meeting of 2009.
Due to the disputes from both parties on performance of terms related to price in the exclusive sales agreement and
the accumulated difference in exclusive sales of beers and under approval of the seventh meeting of the eighth
session of the Board of Directors, the Company signed a supplementary agreement of “Framework Agreement on
Exclusive Sales of Products” with Jiawei Beer on December 28, 2016 to ensure the sound cooperation in future.
The main contents of the supplementary agreement are as follows:
(1) Adjustment on the calculation method of sales volume and net revenue from beers agreed in the exclusive sales
agreement: both parties agreed to involve the sales volume of Hechan Branch in 2015 in the calculation of the
growth rate of sales volume and the average net revenue from beers from January 2016 due to the overlap of sales
areas.
(2) Clarification on the solutions for difference in volume and price: both parties agreed that the Company should
adjust the volume of beers purchased from Jiawei Beer or pay compensation in cash at the price of beers per kiloliter
agreed by both parties when there is difference in volume or price during the performance of the exclusive sales
agreement.
(3) Clarification on settlement in the original way: both parties agreed that the settlement should be carried out in
accordance with the exclusive sales agreement, and jointly engage a third-party intermediary agency to conduct a
special audit on the average price and volume of beers of both parties in the previous year, which should be taken
as the basis for the final settlement of the year.
(4) Compensation on difference in price: both parties agreed that within 3 years from January 1, 2016, the
difference in price should be treated as follows: for difference in price between the higher average net revenue from
beers of the Company and that of Jiawei Beer in the first year (2016), if the difference is less than or equivalent to
4% of the average net revenue from beers of Jiawei Beer in 2016, the Company would not compensate Jiawei Beer;
otherwise, the Company would compensate Jiawei Beer for the portion exceeding 4%; if the difference in the second
221 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
year (2017) is less than or equivalent to 2% of the average net revenue from beers of Jiawei Beer in 2017, the
Company would not compensate Jiawei Beer; otherwise, the Company would compensate Jiawei Beer for the
portion exceeding 2%; if the difference in the third year (2018) is less than or equivalent to 1% of the average net
revenue from beers of Jiawei Beer in 2018, the Company would not compensate Jiawei Beer; otherwise, the
Company would compensate Jiawei Beer for the portion exceeding 1%.
(5) New products and usage of brands: in order to ensure that the average net revenue from beers per kiloliter of
Jiawei Beer is as same as that of the Company, the Company agreed that Jiawei Beer could produce products with
the trademarks of “Tuborg”, “Chongqing Chunsheng”, etc. under the premise of meeting the corresponding
production standards of products, and the products should be exclusively sold by the Company.
It is confirmed by both parties that the supplementary agreement would come into effect from the date of signing
by both parties, and would be implemented retrospectively from January 1, 2016. In the meantime, it is agreed in
the supplementary agreement that the Company should pay settlement fees of 30.00 million yuan to Jiawei Beer
within one month after the effective date of the agreement. Except for the settlement fees, Jiawei Beer could not
require the Company to bear any liabilities for breach of “Framework Agreement on Exclusive Sales of Products”
before the effective date of the supplementary agreement.
In 2022, the Company actually sold beers of 129,325.12 kiloliters with the trademarks of “Shancheng”, “Chongqing”
and “Tuborg” totaling 501.78 million yuan (tax exclusive) and Jiawei Beer should pay selling expenses of 19.40
million yuan. In 2023, the Company actually sold beers of 134,088.26 kiloliters with the trademarks of “Shancheng”,
“Chongqing” and “Tuborg” totaling 540.26 million yuan (tax exclusive) and Jiawei Beer should pay selling
expenses of 20.11 million yuan.
4. Related party equity transfer, debt exemption and repayment
In 2023, the subsidiary Carlsberg Chongqing Brewery Co., Ltd. entered into equity transfer agreements with Capital
Brewing Company Limited and its wholly-owned subsidiary Jinbei Asia Pacific Co., Ltd. respectively, to acquire
100% of equity of Beijing Capital Brewing and Jinbei Asia Pacific. Please refer to item IX 1 of this section for
details on transactions.
Prior to the acquisition, Beijing Capital Brewing and Jinbei Asia Pacific had borrowed 22 million yuan and 28
million yuan from Guangzhou Carlsberg Investment Co., Ltd. respectively. Pursuant to the “Debt Exemption
Agreement” entered into by Beijing Capital Brewing, Jinbei Asia Pacific and Guangzhou Carlsberg Investment Co.,
Ltd., in order to promote the acquisition of equity of Beijing Capital Brewing and Jinbei Asia Pacific by Carlsberg
Chongqing Brewery Co., Ltd., Guangzhou Carlsberg Investment Co., Ltd. waived the debts of 20.60 million yuan
and 12.40 million yuan of Beijing Capital Brewing and Jinbei Asia Pacific respectively. As at the balance sheet date,
Beijing Capital Brewing and Jinbei Asia Pacific had repaid the remaining borrowings of 1.40 million yuan and
15.60 million yuan to Guangzhou Carlsberg Investment Co., Ltd. in advance.
6. Balances due to or from related parties
(1) Balances due from related parties
√ Applicable □ Not Applicable
Monetary unit: RMB
222 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Closing balance Opening balance
Items Related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
receivable
Carlsberg Brewery
26,389,186.65 1,319,459.33 19,081,927.98 954,096.40
Hong Kong Limited
Carlsberg Singapore
195,323.10 9,766.16 254,903.41 12,745.17
Pte Ltd
Cambrew Limited 241,204.80 12,060.24
Carlsberg Marketing
80,782.66 4,039.13
Sdn Bhd
Jinbei Asia Pacific 72,877.63 3,643.88
Subtotal 26,584,509.75 1,329,225.49 19,731,696.48 986,584.82
Other receivables
Carlsberg Brewery
12,783.35 639.17 11,676.51 583.83
Hong Kong Limited
Chongqing Jiawei Beer
73,455.50 3,672.78
Co., Ltd.
Subtotal 12,783.35 639.17 85,132.01 4,256.61
(2) Balances due to related parties
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Related parties Closing book balance Opening book balance
Accounts payable
Chongqing Jiawei Beer Co.,
727,016.35
Ltd.
Carlsberg Supply Company
515,042.71
AG
Subtotal 727,016.35 515,042.71
Other payables
Carlsberg Breweries A/S 36,092,861.30 40,124,834.90
Beijing Capital Brewing 194,480.53
Subtotal 36,092,861.30 40,319,315.43
(3) Others
□ Applicable √ Not Applicable
7. Related party commitments
□ Applicable √ Not Applicable
8. Others
□ Applicable √ Not Applicable
XV. Share-based payment
1. Equity instruments
□ Applicable √ Not Applicable
Share options or other equity instruments outstanding at the balance sheet date
223 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
□ Applicable √ Not Applicable
2. Equity-settled share-based payment
□ Applicable √ Not Applicable
3. Cash-settled share-based payment
√ Applicable □ Not Applicable
Monetary unit: RMB
Determination method for the fair value of liabilities
incurred by the Company and to be settled in cash or
other equity instruments
Key parameters of the fair value of liabilities incurred by
the Company and to be settled in cash or other equity [Note]
instruments
Amount of accumulated liabilities incurred due to cash-
16,003,654.31
settled share-based payment
Note: Pursuant to the regulations of “Annual Plan of Long-term Incentive Plan from 2018 to 2020 of Carlsberg
Group”, “Annual Plan of Long-term Incentive Plan from 2019 to 2021 of Carlsberg Group” and “Annual Plan of
Long-term Incentive Plan from 2020 to 2022 of Carlsberg Group” (the “Annual Plans”), eligible executives at the
level of vice president and above are entitled to join the Annual Plans. The vesting period of each Annual Plan is 3
years, and executives joined the Annual Plans could obtained a certain amount of Carlsberg B shares for free if they
have reached the pre-set performance conditions and other relevant exercise conditions, and are still engaged by
Carlsberg Group after the vesting period. The Company would settle in cash after the exercise conditions are met.
4. Total share-based payments recognized in the current period
√ Applicable □ Not Applicable
Monetary unit: RMB
Objects Cash-settled share-based payment
Management personnel 954,641.00
Total 954,641.00
Other remarks
None.
5. Modifications and cancellations of share-based payment
□ Applicable √ Not Applicable
6. Others
□ Applicable √ Not Applicable
224 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
XVI. Commitments and contingencies
1. Significant commitments
√ Applicable □ Not Applicable
Significant commitments, their nature and amount at the balance sheet date
Please refer to item XIV 5 (8) of this section for details on beer produced by Jiawei Beer and exclusively sold by
the Company.
Other than the above-mentioned events, the Company has no significant commitments to be disclosed as of the
balance sheet date.
2. Contingencies
(1) Significant contingencies at the balance sheet date
√ Applicable □ Not Applicable
When the Company undertakes the exclusive sales of the beer produced by Jiawei Beer, the two parties shall settle
the difference in sales volume and price. As of December 31, 2023, the Company has estimated the cost of making
up the net difference in sales volume and price based on the performance of the agreement, with final settlement not
yet made. Please refer to item XIV 5 (8) of this section for details.
In December 2023, the Company received a copy of the “Civil Complaint” numbered [2023] Yu 05 Min Chu 232
issued by Chongqing Fifth Intermediate People’s Court, which stated that the lawsuit against the Company for
disputes over exclusive sales agreements by Jiawei Beer had been accepted. The requests of Jiawei Beer include
the followings:
1. The Company shall compensate Jiawei Beer for the losses caused by the violation of the “Exclusive Sales
Agreement”, “Supplementary Agreement”, “Memorandum”, “Minutes of Meeting” and other agreements from
2011 to the end of 2020 (before the major assets reorganization of the Company), which are temporarily estimated
at 495.63 million yuan (of which, losses of 255.06 million yuan incurred from January 2011 to the end of
December 2015, and losses of 240.57 million yuan incurred from January 2016 to the end of December 2020),
and the interest losses of 18 million yuan temporarily estimated from the end of December 2011 to December 31,
2022 (of which, the interest losses corresponding to the loss incurred from January 2011 to the end of December
2015 are 10 million yuan; the interest losses corresponding to the loss incurred from January 2016 to the end of
December 2022 are 8 million yuan. These interest losses are calculated separately based on the losses finally
determined, the interest rate of loans for the same period and the LPR published by the People’s Bank of China
until the date of full payment);
2. The Company shall compensate Jiawei Beer for the losses caused by the violation of the “Supplementary
Agreement”, “Memorandum” and other agreements since 2021 (after the major assets reorganization of the
Company), which are temporarily estimated at 115.05 million yuan, and the interest losses of 3 million yuan
temporarily estimated as of December 31, 2022 (calculated separately based on the ultimately recognized losses
and LPR until the date of full payment).
As of the date of approval for issuing the financial statements, the lawsuit is undergoing jurisdictional objections,
and has not yet been decided.
225 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
On February 5, 2024, the Company received a summons and a copy of the complaint related to the case numbered
(2023) Yu 0104 Minchu 7700 from the People’s Court of Dadukou District, Chongqing. The plaintiff Jiawei Beer
filed a lawsuit against the Company on the grounds that the Company had no right to deduct undue selling expenses
from the payments for exclusive sales of beer. The claims are as follows:
1. The Company’s act of setting off its debt for exclusive sales of beer against Jiawei Beer’s undue liability for
selling expenses since January 2021 shall not have legal effect, and the Company shall return undue selling expenses
as of the effective date of the judgment, which is tentatively calculated as 20,846,684.79 yuan as of November 2023,
and will be finally determined based on the undue amount as of the effective date of the judgment.
2. The Company shall continue to fulfill the agreement of “selling expenses are settled semi-annually with payments
delayed for half a year”, and shall not arbitrarily set off its debt for exclusive sales of beer against Jiawei Beer’s
undue liability for selling expenses.
3. The Company shall compensate Jiawei Beer for the estimated loss of 1,829,638.53 yuan due to its breach of the
above agreement (the loss is temporarily calculated based on the amount offset each time at 1.5 times of one-year
LPR published by the National Interbank Funding Center until the maturity date of selling expenses for each period
before November 2023, and the loss related to undue selling expenses is temporarily calculated until November 30,
2023).
4. The Company shall bear all litigation costs associated with this case.
As of the date of approval for issuing the financial statements, the lawsuit is undergoing jurisdictional objections
and has not yet been decided.
Except for the aforementioned events, the Company has no other significant contingencies to be disclosed as of the
balance sheet date.
(2) Remarks shall also be given if the Company has no significant contingencies to be disclosed.
□ Applicable √ Not Applicable
(3) Others
□ Applicable √ Not Applicable
XVII. Events after the balance sheet date
1. Significant non-adjusting events
□ Applicable √ Not Applicable
2. Profit distribution
√ Applicable □ Not Applicable
Monetary unit: RMB
Profit or dividend planned to be distributed 1,355,119,354.40
Profit or dividend approved to be distributed
Pursuant to the profit distribution plan of 2023 proposed at the 15th meeting of the 10th session of the Board of
Directors dated March 28, 2024, the Company intends to distribute cash dividend of 2.80 yuan (tax inclusive) per
226 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
share out of profits available for distribution as of December 31, 2023. Such event needs to be submitted to the
shareholders’ meeting for deliberation and approval.
Except for the aforementioned events, the Company has no other events after the balance sheet date to be disclosed
as of the date of approval for issuing the financial statements.
3. Sales return
□ Applicable √ Not Applicable
4. Other remarks
□ Applicable √ Not Applicable
XVIII. Other significant events
1. Corrections of prior period errors
(1) Retroactive restatement method
□ Applicable √ Not Applicable
(2) Prospective application method
□ Applicable √ Not Applicable
2. Significant debt restructuring
□ Applicable √ Not Applicable
3. Assets exchange
(1) Non-cash assets exchange
□ Applicable √ Not Applicable
(2) Other assets exchange
□ Applicable √ Not Applicable
4. Annuity plan
□ Applicable √ Not Applicable
5. Discontinued operations
√ Applicable □ Not Applicable
Monetary unit: RMB
Profit of discontinued
Income tax operations attributable to
Items Revenue Expenses Profit before tax Net profit
expenses owners of the parent
company
Shutting
-6,478.18 6,478.18 6,478.18 6,478.18
down plants
Other remarks
None.
227 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
6. Segment information
(1) Identification basis and accounting policies for reportable segments
√ Applicable □ Not Applicable
Reportable segments are identified according to the structure of the Company’s internal organization, management
requirements and internal reporting system, and based on regional segments. Assessments are respectively
performed on the operating performance of southern region, northwest region and central region. Assets and
liabilities shared by different segments are allocated among segments proportionate to their respective sizes.
(2) Financial information of reportable segments
√ Applicable □ Not Applicable
Monetary unit: RMB Ten Thousand
Northwest Inter-segment
Items Southern region Central region Total
region offsetting
Operating revenue 525,668.21 419,220.42 738,622.15 202,027.14 1,481,483.64
Including: Revenue
from contracts with 525,668.21 419,220.42 738,622.15 202,027.14 1,481,483.64
customers
Operating cost 259,733.30 227,626.88 437,812.59 171,775.19 753,397.58
Total assets 532,179.33 397,053.91 1,065,896.00 756,438.08 1,238,691.16
Total liabilities 364,606.98 231,487.00 723,627.94 446,245.62 873,476.30
(3) Reasons shall be given if the Company has no reportable segment or cannot disclose the total assets and
liabilities of each reportable segment.
□ Applicable √ Not Applicable
(4) Other remarks
□ Applicable √ Not Applicable
7. Other significant transactions and events that may be influential for investors in decision-making
√ Applicable □ Not Applicable
Pursuant to the “Proposal on Continuing to Carry Out Aluminum Hedging Business” deliberated and approved by
the eighth meeting of the tenth session of the Board of Directors of 2023, “Proposal on Carrying Out Aluminum
Futures Hedges by Subsidiaries” deliberated and approved by the Company’s first extraordinary shareholders’
meeting of 2022 and the “Proposal on Adjusting the Implementation Plan of Aluminum Hedges” deliberated and
approved by the Company’s shareholders’ meeting of 2021, the Company and its subsidiaries intend to, in legal
compliance without affecting normal operations, invest in aluminum hedges at an appropriate time using self-owned
funds of not more than USD 110.00 million. As of December 31, 2023, the Company’s position amounted to USD
66,888,165.00, which has not yet expired.
8. Others
√ Applicable □ Not Applicable
228 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(I) Major investments
Approved by the fourth extraordinary shareholders’ meeting of 2021, the subsidiary Carlsberg Chongqing Brewery
Co., Ltd. and Xi’nan Subdistrict Office of Sanshui District, Foshan City entered into the “Letter of Intent for
Investment in Beer Production Base Project”, agreeing that Carlsberg Chongqing Brewery Co., Ltd. plans to build
a production base with an annual production capacity of 500,000 kiloliters of beer in Sanshui District, Foshan City,
Guangdong Province, with a fixed assets investment of about 1.03 billion yuan. The two parties also agreed on the
investment intensity, development progress and economic contributions. Under the approval of the fifth meeting of
the tenth session of the Board of Directors, in order to meet the needs of building intelligent and green wineries,
reduce the long-term operating costs and improve the stability of product quality, the Company increased the total
investment of the project to 1.492 billion yuan. As of the balance sheet date, the cumulative investment of the project
totaled 0.847 billion yuan.
(II) Major litigations
Please refer to item XVI 2 of this section for details on the lawsuit that Jiawei Beer filed against the Company for
disputes over exclusive sales agreements.
XIX. Notes to items of parent company financial statements
1. Accounts receivable
(1) Age analysis
□ Applicable √ Not Applicable
(2) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Accounts receivable with provision made on an individual basis
□ Applicable √ Not Applicable
Accounts receivable with provision made on a collective basis
□ Applicable √ Not Applicable
Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of accounts receivable with changes in provision for bad debts
□ Applicable √ Not Applicable
(3) Provision for bad debts
□ Applicable √ Not Applicable
Significant provisions collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
229 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(4) Accounts receivable actually written off in the current period
□ Applicable √ Not Applicable
Significant accounts receivable written off in the current period
□ Applicable √ Not Applicable
Remarks on accounts receivable written off
□ Applicable √ Not Applicable
(5) Details of the top 5 debtors with largest balances
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
2. Other receivables
Details
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 4,028,306.41 4,353,422.01
Total 4,028,306.41 4,353,422.01
Other remarks
□ Applicable √ Not Applicable
Interest receivable
(1) Details on categories
□ Applicable √ Not Applicable
(2) Significant overdue interest
□ Applicable √ Not Applicable
(3) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Interest receivable with provision made on an individual basis
□ Applicable √ Not Applicable
Remarks on interest receivable with provision made on an individual basis
□ Applicable √ Not Applicable
Interest receivable with provision made on a collective basis
□ Applicable √ Not Applicable
(4) Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
230 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of interest receivable with changes in provision for bad debts
□ Applicable √ Not Applicable
(5) Provision for bad debts
□ Applicable √ Not Applicable
Significant provisions collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(6) Interest receivable actually written off in the current period
□ Applicable √ Not Applicable
Significant interest receivable written off
□ Applicable √ Not Applicable
Remarks on accounts receivable written off
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
Dividend receivable
(7) Details
□ Applicable √ Not Applicable
(8) Significant balance with age over one year
□ Applicable √ Not Applicable
(9) Details on categories of provision accrual methods
□ Applicable √ Not Applicable
Dividend receivable with provision made on an individual basis
□ Applicable √ Not Applicable
Remarks on dividend receivable with provision made on an individual basis
□ Applicable √ Not Applicable
Dividend receivable with provision made on a collective basis
□ Applicable √ Not Applicable
(10) Provision for bad debts made using three-stage model
□ Applicable √ Not Applicable
231 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of dividend receivable with changes in provision for bad debts
□ Applicable √ Not Applicable
(11) Provision for bad debts
□ Applicable √ Not Applicable
Significant provisions collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
(12) Details on dividend receivable actually written off in the current period
□ Applicable √ Not Applicable
Significant dividend receivable written off
□ Applicable √ Not Applicable
Remarks on dividend receivable written off
□ Applicable √ Not Applicable
Other remarks:
□ Applicable √ Not Applicable
Other receivables
(13) Age analysis
√ Applicable □ Not Applicable
Monetary unit: RMB
Ages Closing book balance Opening book balance
Within 1 year
Including:
Within 1 year 40,000.00 4,582,549.49
Subtotal 40,000.00 4,582,549.49
1-2 years 4,433,673.79
2-3 years
Over 3 years
3-4 years
4-5 years
Over 5 years
Total 4,473,673.79 4,582,549.49
(14) Other receivables categorized by nature
√ Applicable □ Not Applicable
Monetary unit: RMB
Nature of receivables Closing book balance Opening book balance
Land disposal fees receivable 4,300,000.00 4,300,000.00
Security deposits 173,673.79 209,093.99
232 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Nature of receivables Closing book balance Opening book balance
Others 73,455.50
Total 4,473,673.79 4,582,549.49
(15) Provision for bad debts
√ Applicable □ Not Applicable
Monetary unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad 12month Lifetime expected Lifetime expected
Total
debts expected credit credit losses (credit credit losses
losses not impaired) (credit impaired)
Balances at January 1,
229,127.48 229,127.48
2023
Balances at January 1,
2023 in the current
period
--Transferred to stage
-221,683.69 221,683.69
2
--Transferred to stage
3
--Reversed to stage 2
--Reversed to stage 1
Provision made in the
-5,443.79 221,683.69 216,239.90
current period
Provision recovered
in the current period
Provision reversed in
the current period
Provision written off
in the current period
Other changes
Balances at December
2,000.00 443,367.38 445,367.38
31, 2023
Classification basis of stages and proportion of provision for bad debts
□ Applicable √ Not Applicable
Remarks on significant changes in book balance of other receivables with changes in provision for bad debts
□ Applicable √ Not Applicable
Determination basis for provision for credit impairment made in the current period and whether credit risk has
increased significantly
□ Applicable √ Not Applicable
(16) Provision for bad debts
□ Applicable √ Not Applicable
Significant provisions collected or reversed in the current period
□ Applicable √ Not Applicable
Other remarks
None.
233 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(17) Other receivables actually written off in the current period
□ Applicable √ Not Applicable
Significant other receivables written off
□ Applicable √ Not Applicable
Remarks on other receivables written off
□ Applicable √ Not Applicable
(18) Details of the top 5 debtors with largest balances
√ Applicable □ Not Applicable
Monetary unit: RMB
Proportion to
Closing balance
Closing the total balance Nature of
Debtors Ages of provision for
balance of other receivables
bad debts
receivables (%)
Chongqing Hongye Land disposal
Industry (Group) 4,300,000.00 96.12 fees 1-2 years 430,000.00
Co., Ltd.. receivable
Kingold Group Co., Security
133,673.79 2.99 1-2 years 13,367.38
Ltd. [Note] deposits
Guangzhou Wenxin
Security
Automotive Leasing 40,000.00 0.89 Within 1 year 2,000.00
deposits
Co., Ltd.
Total 4,473,673.79 100.00 / / 445,367.38
Note: It includes its wholly-owned subsidiary Guangzhou Kingold Property Co., Ltd.
(19) Balances presented under other receivables due to the centralized fund management
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
3. Long-term equity investments
√ Applicable □ Not Applicable
Monetary unit: RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Investments in
1,714,103,968.78 19,037,610.07 1,695,066,358.71 1,714,103,968.78 19,037,610.07 1,695,066,358.71
subsidiaries
Total 1,714,103,968.78 19,037,610.07 1,695,066,358.71 1,714,103,968.78 19,037,610.07 1,695,066,358.71
(1) Investments in subsidiaries
√ Applicable □ Not Applicable
Monetary unit: RMB
Provision for
Closing balance
impairment made
Investees Opening balance Increase Decrease Closing balance of provision for
in the current
impairment
period
Carlsberg Chongqing
1,714,103,968.78 1,714,103,968.78 19,037,610.07
Brewery Co., Ltd.
Total 1,714,103,968.78 1,714,103,968.78 19,037,610.07
234 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
(2) Investments in associates and joint ventures
□ Applicable √ Not Applicable
(3) Impairment test of long-term equity investments
□ Applicable √ Not Applicable
Other remarks
None.
4. Operating revenue/Operating cost
(1) Details
□ Applicable √ Not Applicable
(2) Breakdown of operating revenue/operating cost
□ Applicable √ Not Applicable
Other remarks
□ Applicable √ Not Applicable
(3) Remarks on performance obligations
□ Applicable √ Not Applicable
(4) Remarks on transaction price allocated to the remaining performance obligations
□ Applicable √ Not Applicable
(5) Significant changes in contracts or significant adjustments on transaction prices
□ Applicable √ Not Applicable
Other remarks
None.
5. Investment income
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Current period cumulative Preceding period comparative
Investment income from long-term
1,475,239,800.00 1,155,407,400.00
equity investments under cost method
Investment income from long-term
equity investments under equity method
Gains on disposal of long-term equity
investments
Investment income from held-for-
trading financial assets
Dividend income from other equity
instrument investments
Interest income from debt investments
Interest income from other debt
investments
Investment income from disposal of
235 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Current period cumulative Preceding period comparative
held-for-trading financial assets
Investment income from disposal of
other equity instrument investments
Investment income from disposal of
debt investments
Investment income from disposal of
other debt investments
Income from debt restructuring
Total 1,475,239,800.00 1,155,407,400.00
Other remarks
Note: Pursuant to the resolution and approval of the Company’s second extraordinary shareholders’ meeting of 2023,
Carlsberg Chongqing Brewery Co., Ltd. distributed dividend of 2.869 billion yuan to the Company and Guangzhou
Carlsberg Investment Co., Ltd. based on its accumulated undistributed profits from January to October in 2023.
6. Others
□ Applicable √ Not Applicable
XX. Other supplementary information
1. Schedule of non-recurring profit or loss
√ Applicable □ Not Applicable
Monetary unit: RMB
Items Amount Remarks
Gains on disposal of non-current assets,
including write-off of provision for -6,223,012.64
impairment
Government grants included in profit or loss
(excluding those closely related to operating
activities of the Company, satisfying
government policies and regulations, 57,034,039.96
enjoyed based on certain standards, and
continuously affecting gains or losses of the
Company)
Gains on changes in fair value of financial
assets and financial liabilities held by non-
financial enterprises, and gains from
disposal of financial assets and financial 4,138,674.52
liabilities, excluding those arising from
hedging business related to operating
activities
Fund possession charge from non-financial
entities and included in profit or loss
Gains on assets consigned to the third party
for investment or management
Gains on designated loans
Losses on assets incurred due to force
-22,928,871.60
majeure such as natural disasters
The reversed provision for impairment of
receivables based on impairment testing on 728,718.32
an individual basis
Gains on acquisition of subsidiaries, joint
ventures and associates due to the surplus of
236 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Amount Remarks
acquisition-date fair value of net identifiable
assets in acquiree over the acquisition cost
Net profit on subsidiaries acquired through
business combination under common
control from the beginning of the period to
the combination date
Gains on non-cash assets exchange
Gains on debt restructuring
One-off expenses incurred due to the
discontinuation of relevant operating
activities, such as severance payments
One-off effects on profit or loss due to
amendments of laws and regulations on
taxation, accounting, etc.
Share-based payments recognized at one
time due to cancellation or modification of
the equity incentive plan
Gains arising from changes in the fair value
of employee benefits payable after the
vesting date for cash-settled share-based
payment
Gains on changes in fair value of
investment properties with subsequent
measurement at the fair value mode
Gains on transactions with unfair value
Contingent gains on non-operating activities
Management charges for consigned
operations
Other non-operating revenue or
26,866,634.40
expenditures
Other profit or loss satisfying the definition
344,606.28
of non-recurring profit or loss
Less: Enterprise income tax affected 14,721,391.00
Non-controlling interest affected (after
22,629,291.13
tax)
Total 22,610,107.11
Remarks on defining items not listed in “Interpretation Pronouncement on Information Disclosure Criteria for Public
Companies No. 1 – Non-Recurring Profit or Loss” as non-recurring profit or loss with significant amount and
remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information
Disclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss
□Applicable √ Not Applicable
Other remarks
√ Applicable □ Not Applicable
Effect on non-recurring profit or loss in 2022 due to implementation of “Interpretation Pronouncement on
Information Disclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss (2023 Edition)”
Items Amount
Net non-recurring profit or loss attributable to the owner of the parent
29,266,746.14
company in 2022
Net non-recurring profit or loss attributable to the owner of the parent
company calculated based on the “Interpretation Pronouncement on
28,559,050.54
Information Disclosure Criteria for Public Companies No. 1 – Non-
Recurring Profit or Loss (2023 Edition)” in 2022
237 / 238
2023 Annual Report of Chongqing Brewery Co., Ltd.
Items Amount
Difference 707,695.60
2. ROE and EPS
√ Applicable □ Not Applicable
Weighted average EPS (yuan/share)
Profit of the reporting period
ROE (%) Basic EPS Diluted EPS
Net profit attributable to shareholders of
67.05 2.76 2.76
ordinary shares
Net profit attributable to shareholders of
ordinary shares after deducting non- 65.92 2.72 2.72
recurring profit or loss
3. Financial data variance between financial reporting prepared under domestic and abroad accounting
standards
□ Applicable √ Not Applicable
4. Others
□ Applicable √ Not Applicable
Chairman of the Board of Directors: Joo Miguel Ventura Rego Abecasis
Date of approval for issuance: March 28, 2024
Revision
□ Applicable √ Not Applicable
238 / 238
