ANNUAL REPORT 2022
Stock Code: 600519 Stock Abbr.: Kweichow Moutai
KWEICHOW MOUTAI CO., LTD.
ANNUAL REPORT 2022
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ANNUAL REPORT 2022
Important Statements
I. The Board of Directors, Board of Supervisors, directors, supervisors and the senior management
of the Company guarantee that the information presented in this report is free of any false records,
misleading statements or material omissions, and shall bear individual and joint legal liabilities for
the truthfulness, accuracy and completeness of its contents.
II. All directors of the Company attend the meeting of the board of directors.
III. Baker Tilly China CPAs has issued a standard unqualified audit report for the Company.
IV. Ding Xiongjun, responsible person for the Company, Jiang Yan, responsible person for
accounting work, and Cai Congying, responsible person for the Company’s financial affairs
(Accounting Supervisor), have warranted that the financial statements in this report are true,
accurate and complete.
V. The proposed profit distribution plan or the proposed plan of capitalization of capital reserves
in the reporting period approved by the resolution of the Board of Directors
On the basis of a total capital of 1,256,197,800 shares by the end of 2022, all shareholders will be
distributed a cash dividend of CNY 259.11 (before tax) for every 10 shares, with a total profit distribution
of CNY 32,549,341,195.80. If there is any change in the total share capital of the company before the
equity registration date for the implementation of equity distribution, the total dividend amount will be
maintained unchanged, and the dividend ratio per share will be adjusted accordingly. The above profit
distribution proposal shall be submitted to the general assembly of shareholders of the Company for
deliberation and approval before implementation.
VI. Risk disclosure statement for forward-looking statements
Forward-looking statements in this report concerning future plans or development strategies do not
constitute substantial promises to investors, due to the related uncertainty. Investors are advised to be
aware of their own investment risks.
VII. Existence of non-operational embezzlement of funds by controlling shareholders or their
associated parties
No
VIII. Existence of Financial Guarantees to External Parties in Violation of the Regulated Decision
Procedures
No
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ANNUAL REPORT 2022
IX. Over half of the directors’ failure to guarantee the truthfulness, accuracy and completeness of
the Company’s disclosed annual report.
No
X. Significant risk statements
The Company has elaborated the potential risks in the chapter of “The Company Discussion and Analysis
on its Future Development”. Investors are advised to pay their due attention.
XI. Information Statement
All information and data cited in this Report are objective and authentic. Financial figures herein are rec
orded in CNY, unless otherwise specified. This Report is prepared in Chinese and English, respectively.
In case of any ambiguity in the Chinese and English texts, the Chinese text shall prevail.
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ANNUAL REPORT 2022
Contents
Section I Definitions.............................................................................................................. 5
Section II Company Profile and Key Financial Results .................................................... 5
Section III Management’s Discussion and Analysis .......................................................... 8
Section IV Corporate Governance .................................................................................... 26
Section V Environment and Social Responsibility........................................................... 46
Section VI Significant Events ........................................................................................ 50
Section VII Changes in Shares and Information about Shareholders .......................... 66
Section VIII Preferred Shares ........................................................................................... 71
Section IX Information about Bond.................................................................................. 71
Section X Financial Report ............................................................................................ 71
References include the accounting statements signed and stamped by the
respective individuals in charge of the company, the company accounting
work, and the accounting department (their accounting supervisor).
Documents Available for References include the audit report original signed and stamped by the
Reference certified public accountant and stamped by the accounting firm.
The originals of company documents and announcements that are publicly
disclosed in China Securities Journal and Shanghai Securities News during
the reporting period.
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Section I Definitions
1. Definitions
Unless it is otherwise referred in the context, the terms in this report have the following meanings:
Terms and Definitions
CSRC refers to China Securities Regulatory Commission
SSE refers to Shanghai Stock Exchange
Company, the company refers to Kweichow Moutai Co., Ltd.
Controlling shareholder, group
refers to China Kweichow Moutai Distillery (Group) Co., Ltd.
company
Reporting period refers to Fiscal Year of 2022
This report, the report refers to Annual Report 2022
Section II Company Profile and Key Financial Results
1. Corporate Information
Name of the Company in Chinese 贵州茅台酒股份有限公司
Abbr. of the Company name in Chinese (if any) 贵州茅台
Name of the Company in English Kweichow Moutai Co., Ltd.
Legal Representative Ding Xiongjun
2. Contact Information
Secretary of the board Representative for securities
affairs
Name Jiang Yan Cai Congying
Maotai Town, Renhuai City, Guizhou Maotai Town, Renhuai City,
Address
Province Guizhou Province
Tel. 0851-22386002 0851-22386002
Fax 0851-22386193 0851-22386193
E-mail mtdm@moutaichina.com mtdm@moutaichina.com
3. Company profile
Registered address Maotai Town, Renhuai City, Guizhou Province
Office address Maotai Town, Renhuai City, Guizhou Province
Zip code of office address 564501
Website address http://www.moutaichina.com/
E-mail address mtdm@moutaichina.com
4. Information disclosure and the place where the report is available
Media name and its website address where the
China Securities Journal and Shanghai Securities News
report is disclosed
Website address of the stock exchange where
http://www.sse.com.cn/
the report is disclosed
Place where the report is available The office of the Board of Directors
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5. Stock information
Stock information
Stock exchange Previous stock
Stock type where the shares Stock abbreviation Stock code Abbreviation (if
are listed any)
Shanghai Stock
A shares Kweichow Moutai 600519
Exchange
6. Other information
Name Baker Tilly China CPAs
Office address Building 12, Foreign Language Culture and Creativity Park,
Appointed
19 Chegongzhuang West Road, Haidian District, Beijing
accounting firm
Name of the
(domestic)
signing Tong Wenguang, Liu Zonglei, Yang Shu
accountant
7. Key Accounting Data and Financial Indicators in the past three years
7.1 Key accounting data
Unit: CNY
Key accounting data 2022 2021 Change (%) 2020
Operating revenue 124,099,843,771.99 106,190,154,843.76 16.87 94,915,380,916.72
Net profits attributable to
shareholders of the Public 62,716,443,738.27 52,460,144,378.16 19.55 46,697,285,429.81
Company
Net profits attributable to
shareholders of the Public
62,791,872,697.72 52,581,102,656.24 19.42 47,016,420,742.73
Company after deducting non-
recurring gains and losses
Net cash flows from operating -42.68 51,669,068,693.03
36,698,595,830.03 64,028,676,147.37
activities
Changes of
31 December 2022 31 December 2021 the Same 31 December 2020
Period(%)
Net assets attributable to
197,506,672,396.00 189,539,368,797.29 4.20 161,322,735,087.56
shareholders of the Company
Total assets 254,364,804,995.25 255,168,195,159.90 -0.31 213,395,810,527.46
Share capital 1,256,197,800.00 1,256,197,800.00 1,256,197,800.00
Note: Causes for the decrease in Net cash flows from operating activities: first, the group company
transferred the equity of Guizhou Xijiu Co., Ltd., which is no longer a member of the company’s holding
subsidiary Kweichow Moutai Group Finance Co., Ltd, resulting the customer deposits to reduce ; Second,
the company's holding subsidiary, Kweichow Moutai Group Finance Co., Ltd., had a net increase in
Deposits with other banks that cannot be withdrawn at any time in the current period.
7.2 Key financial indicators
Key financial indicators 2022 2021 Change (%) 2020
Basic earnings per share
49.93 41.76 19.55 37.17
(CNY/share)
Diluted earnings per share
49.93 41.76 19.55 37.17
(CNY/share)
Basic earnings per share after
49.99 41.86 19.42 37.43
non-recurring gains and losses
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(CNY/share)
Increase by 0.36
Weighted average ROE (%) 30.26 29.90 31.41
percentage point(s)
Weighted average ROE after non- Increase by 0.32
30.29 29.97 31.63
recurring gains and losses (%) percentage point(s)
8. Differences in accounting data by domestic and overseas accounting standards
8.1 Differences in the net profits and net assets attributable to shareholders of the company disclosed
in the financial reports prepared under the international accounting standards and China
accounting standards
□Applicable √N/A
8.2 Differences in the net profits and net assets attributable to shareholders of the Company
disclosed in the financial reports prepared under the overseas accounting standards and China
accounting standards
□Applicable √N/A
8.3 Explanations for above accounting data differences
□Applicable √N/A
9. Quarterly key financial data in 2022
Unit: CNY
Q1 Q2 Q3 Q4
(Jan.-Mar.) (Apr.-Jun.) (Jul.-Sept.) (Oct.-Dec.)
Operating revenue 32,295,763,804.41 25,321,102,842.88 29,543,366,111.76 36,939,611,012.94
Net profits
attributable to
17,244,968,587.32 12,548,939,490.51 14,605,907,505.71 18,316,628,154.73
shareholders of the
Company
Net profit
attributable to
ordinary
shareholders of the
17,243,064,446.83 12,519,757,284.58 14,630,409,785.50 18,398,641,180.81
company after
deducting non-
recurring profit and
loss
Net cash flows from
-6,876,059,093.79 6,864,895,152.49 9,416,500,950.05 27,293,258,821.28
operating activities
Explanations for the differences between quarterly data and those disclosed in previous periodical
reports
□Applicable √N/A
10. Non-recurring Items and Their Gains/Losses
√Applicable □N/A
Unit: CNY
Amount in Note (if Amount in Amount in
Non-recurring gains and losses
2022 applicable) 2021 2020
Gain or loss from disposal of
-20,567,757.19 -11,920,829.77 -100,113.92
non-current assets
Government grants accounted for,
14,973,304.55 4,616,000.00 2,028,500.00
in the profit or loss for the current
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period (except for the government
grants closely related to the
business of the Company and
continuously given at a fixed
amount or quantity in accordance
with certain standards)
Gains and losses from changes in
fair value arising from holding
trading financial assets, derivative
financial assets, trading financial
liabilities and derivative financial
liabilities, as well as investment
income from disposal of trading
financial assets, derivative -3,750,122.23 4,966,170.34
financial assets, trading financial
liabilities, derivative financial
liabilities and other debt
investments, except for the
effective hedging business
associated with the company’s
regular business operations.
Other non-operational income
- - -
and expenditure in addition to the
157,251,041.33 210,928,052.99 438,037,777.35
items listed above.
Other items of gains and losses
that fall into the category of non- 63,840,000.00 61,031,069.26 237,455.55
recurring gains and losses
Less: Income tax impact -
-24,751,373.49 -40,237,983.93
107,726,441.35
Minority shareholder equity
1,174,838.97 244,326.28 -4,044,011.11
impact (after tax)
- -
Total -75,428,959.45
120,958,278.08 319,135,312.92
Section III Management’s Discussion and Analysis
1. Discussion and analysis of business situation
In 2022, the Company insisted on the guidance of Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era, thoroughly studied and implement the spirit of the 20th National Congress
of the Communist Party of China and the important speech addressed by the General Secretary Xi Jinping
during the inspection in Guizhou, fully implemented the spirit of the 13th Congress of Party
Representatives of Guizhou Province and the decision-making arrangements of the provincial party
committee and government, and focused on the strategic goal of "double doubling, double consolidation
and double building" of the group company as well as the high-quality development path of “five-line” of
Moutai. It was not afraid of difficulties and dangers, production and operation, and reform and
development. It delivered a strong performance by successfully completing all the objectives and tasks of
the year and written a magnificent chapter of forging ahead with perseverance and common dreams and
wishes.
2. Industry sector situation in the reporting period
See “Industry profile” and “Industry pattern and trend” in this report.
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3. Business scope in the reporting period
The main business of the Company is the production and sales of Moutai liquor and a series of liquors.
The leading product “Kweichow Moutai” is the originator and typical representative of Daqu sauce-
flavored liquor in China. It is a brand that embodies national geographical indication products, organic
foods and national intangible cultural heritages. The marketing network of the Company covers the
domestic market and 64 countries and regions on five continents. Over the years, the Company insisted
on the pursuit of product quality. With careful care for brewing ecology, the inheritance and innovation of
traditional process, and the continuous development of corporate culture, the Company continuously
empowered the enterprise and promoted high-quality development and modernization construction of the
enterprise.
The Company’s business model is: raw materials acquisition – merchandise production – sales. The
acquisition of raw materials is carried out according to the Company's production and sales plan; the
production process of products is as follows: yeast making - Chinese Baijiu making – cellaring - blending
- packaging; the sales model is as follows: the Company's products are sold through direct sales and
distributor channels. Direct sales channels refer to self-operated channels and the "i Moutai" digital
marketing platform channel, while distributor channels refer to social distributors, supermarkets, e-
commerce and other channels.
4. Analysis of core competitiveness
√Applicable □N/A
The Company has five core competitiveness of "ecology, technic, quality, brand and culture". The
company also has four core potentials, which are "unique geographical protection of origin, irreproducible
microbial colony, unique brewing technology inherited for thousands of years, and high-quality base
liquor resources stored for a long time" There was no significant change in the Company's core
competitiveness during the reporting period.
5. Business operation briefing for the reporting period
First, the Company went against the trend and achieved "excellent" performance. In the overall economic
downturn, the Company realized growth against the trend, achieving a total of operating revenue of CNY
127.554 billion, representing a year-on-year increase of 16.53%; It is estimated that the net profit
attributable to shareholders of listed companies will reach CNY 62.716 billion, representing a year-on-
year increase of 19.55%; the main indicators display steady progress and will hit a record high. In 2022,
for Kantar BrandZ's list of the most valuable brands in China, Moutai ranked third with a brand value of
USD 108.49 billion, and ranked first among liquor brands; the market value of Kweichow Moutai
remained above CNY 2 trillion, ranking first in A shares.
Second, the Company has embarked on the journey of "beauty" with dreams. We used the "five-in-one
marketing method" to usher in the era of marketing beauty; adhered to the principle of taking "business"
as the foundation, "chain" as the reinforcement way, and "circle" as the tool for beauty creation, and
built a modern industrial chain ecosystem; insisted on the beauty of scientific and technological inheritance
and innovation, implemented the "four projects" and "four plans" for talent training, and built a highland
for scientific and technological innovation talents. The Company took "beauty" as the core and strove
forward.
Third, the Company took the initiative to change and opened up a "new" track. We successfully launched
the i Moutai digital marketing platform with the registered users of 30 million. The platform became a
phenomenal APP, achieving sales revenue of CNY 11.883 billion. With the launch of Moutai ice cream,
"Ice cross the Country" started a journey of alcohol and love among young people. With culture export,
the Company appeared at the APEC summit in Thailand and actively spread Moutai culture. The Company
took the initiative to integrate with the international market and focused on coordinating the construction
of domestic and international markets.
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Fourth, the Company has accumulated "strong" kinetic energy through reform. The Company completed
the separation of institutions and the diversion of personnel, and comprehensively finished the tasks of the
three-year action of state-owned enterprise reform, and the efficiency of corporate governance has been
significantly improved. The Company started the capacity expansion of Moutai and dealt with a number
of long-delayed legacy projects. It started more than 100 scientific and technological projects.
Fifth, a hymn of “courage” was composed with the fact that the Company overcame difficulties and
forged ahead. The Company united to overcame the difficulties together, insisted on the principle of not
leaving the front line on account of minor wounds, and made every effort to ensure the normal operation
of production. All posts and lines wrote a touching and unforgettable chapter of struggle.
5.1 Main business analysis
A. Analysis of accounting item changes related to the income statement and the cash flow statement
Unit: CNY
Amount in the same
Amount in the
Item reporting period of YoY Change (%)
reporting period
last year
Operating revenue 124,099,843,771.99 106,190,154,843.76 16.87
Operating costs 10,093,468,616.63 8,983,377,809.96 12.36
Sales expenses 3,297,724,190.94 2,737,369,434.78 20.47
General and administrative
9,012,191,073.63 8,450,274,065.03 6.65
expenses
Financial expenses -1,391,805,826.72 -934,523,406.02 N/A
R&D expenses 135,185,680.40 61,923,213.59 118.31
Net cash flows from operating
36,698,595,830.03 64,028,676,147.37 -42.68
activities
Net cash flows from investment
-5,536,826,334.90 -5,562,445,704.34 N/A
activities
Net cash flows from financing
-57,424,528,979.83 -26,564,141,388.96 N/A
activities
Causes for the operating revenue change: mainly due to the increase of sales volume and the change of
product structure in the reporting period.
Causes for the operating expense change: majorly due to the sales increase, the production costs increase,
and the product structure change in the reporting period.
Causes for the sales expense change: mainly due to the advertising and marketing expense increases for
the Moutai-flavor series liquor in the reporting period.
Causes for the general and administrative expense change: mainly due to the increase in trademark
license fees and depreciation of fixed assets in the reporting period.
Causes for the financial expense change: mainly due to the increase of commercial bank interest income
increase in the reporting period.
Causes for the R&D expense change: majorly due to the increase of R&D project increases in the reporting
period.
Causes for the Net cash flow change from operating activities: first, the group company transferred the
equity of Guizhou Xijiu Co., Ltd., which is no longer a member of the company’s holding subsidiary
Kweichow Moutai Group Finance Co., Ltd, resulting the customer deposits to reduce ; Second, the
company's holding subsidiary, Kweichow Moutai Group Finance Co., Ltd., had a net increase in
Deposits with other banks that cannot be withdrawn at any time in the current period.
Causes for the Net cash flow change from investment activities: mainly due to the increase in the cash
paid to acquire and construct fixed assets, intangible assets and other long-term assets in the reporting
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period and the certificate of deposit with large amount purchased in the previous period.
Causes for Net cash flow change from financing activities: Firstly, in December 2022, the company
implemented a special dividend plan to repay shareholders.
Detailed reasons for any significant changes to the business type, profit structure or profit sources of the
Company in the reporting period.
□Applicable √N/A
B. Income and cost analysis
√Applicable □N/A
a. Main business grouped by business segment, by product, by region and by sales model.
Unit: CNY
Main business grouped by business segment
YoY
YoY
Change
Gross change YoY change of
Business of
Operating revenue Operating costs profit of gross profit
segment operating
margin operating margin (%)
revenue
costs (%)
(%)
Increase by
0.38
Liquor 123,772,332,348.71 9,896,113,336.80 92.00 16.70 11.30
percentage
point(s)
Main business grouped by product
YoY
YoY
Change
Gross change YoY change of
of
Product Operating revenue Operating costs profit of gross profit
operating
margin operating margin (%)
revenue
costs (%)
(%)
Increase by
0.16
Moutai 107,833,685,277.94 6,265,810,909.88 94.19 15.37 12.33
percentage
point(s)
Increase by
Other 3.53
15,938,647,070.77 3,630,302,426.92 77.22 26.55 9.57
liquor percentage
point(s)
Main business grouped by region
YoY
YoY
Change
Gross change YoY change of
of
Region Operating revenue Operating costs profit of gross profit
operating
margin operating margin (%)
revenue
costs (%)
(%)
Increase by
0.36
Domestic 119,532,752,861.59 9,558,682,149.59 92.00 15.56 10.51
percentage
point(s)
Increase by
1.27
Overseas 4,239,579,487.12 337,431,187.21 92.04 61.91 39.60
percentage
point(s)
Main business condition by sales model
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YoY
YoY
Change
Gross change YoY change of
Sales of
Operating revenue Operating costs profit of gross profit
model Operating
margin operating margin (%)
revenue
costs (%)
(%)
Decrease by
Wholesale 1.08
74,393,594,687.11 8,021,891,276.89 89.22 -9.31 0.80
agency percentage
point(s)
Decrease by
0.08
Direct sales 49,378,737,661.60 1,874,222,059.91 96.20 105.49 100.97
percentage
point(s)
b. Analysis of production volume, sales volume and inventory
√Applicable □N/A
YoY YoY
YoY
change of change of
Main Production Sales change of
Unit Inventory production sales
product volume volume inventory
volume volume
(%)
(%) (%)
Liquor Ton 91,885.83 68,176.32 276,623.17 8.46 2.62 6.09
c. Execution situation of major acquisition contracts and major sales contracts
□Applicable √N/A
d. Cost Analysis Table
Unit: CNY
Condition by business segment
As %
Main Amount in the of total
By As % of YoY Descrip
breakdown Amount in the same reporting cost in
business total change tion of
items of reporting period period of previo
segment cost (%) (%) reasons
cost previous year us year
(%)
Liquor 9,896,113,336.80 100 8,890,990,510.72 100 11.30
Condition by product
As %
Main Amount in the of cost Descrip
As % of YoY
By breakdown Amount in the same reporting in tion of
total change
product items of reporting period period of previo reasons
cost (%) (%)
cost previous year us year
(%)
Direct
materials 5,344,548,452.24 54.00 5,006,828,759.74 56.32 6.75
costs
Direct labor
3,395,434,595.85 34.31 2,776,100,778.17 31.22 22.31
costs
Liquor Manufacturi
558,168,244.61 5.64 592,850,869.35 6.67 -5.85
ng costs
Fuels and
342,073,450.40 3.46 271,547,032.80 3.05 25.97
energies
Transportati
255,888,593.70 2.59 243,663,070.66 2.74 5.02
on costs
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ANNUAL REPORT 2022
Total 9,896,113,336.80 100.00 8,890,990,510.72 100.00 11.30
e. Any share changes of subsidiaries merger scope changes in the reporting period
□Applicable √N/A
f. Information about significant changes or adjustments of the Company’s businesses, products or services
□Applicable √N/A
g. Major customers and suppliers
(1) Major customers
The top five customers constitute a total revenue of CNY 14,158.13 million, accounting for 11.44% of
annual total revenue, among which the revenue by the affiliated parties totaled CNY 5,276.56 million,
accounting for 4.26% of the total annual revenue.
(2) Major suppliers
The total acquisition cost paid to the five suppliers is CNY 2,238.48 million, accounting for 35.33% of
annual total acquisition cost, among which the total to the affiliated parties is CNY 832.71 million,
accounting for 13.14% of annual total acquisition cost.
C. Expenses
√Applicable □N/A
Financial expenses in the reporting period was CNY -1,391.81 million, comparing with that in the last
period of CNY -934.52 million, the cost reduction was mainly due to the increase of interest income
from commercial bank deposits.
D. R&D expenses
a. Statement of R&D expenses
√Applicable □N/A
Unit: CNY
R&D expenses in this period 368,433,594.16
Capitalized research and development
190,536,632.60
investment in the reporting period
Total R&D expenses 558,970,226.76
as（%）in operating revenue 0.45
Proportion of capitalization of research
34.09
and development investment (%)
Note: The R&D expenses in this period include the R&D expenses listed in the operating costs and the
compensation of scientific researchers.
b. Statement of R&D employee
√Applicable □N/A
Number of R&D employees 761
as (%) in the total number of the Company’s employees 2.42
Educational background structure of R&D employees
Number in each educational background
Educational background structure type
structure
Doctorate 72
Master’s degree 174
Undergraduate 447
Junior college 45
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High school and below 23
Age structure of R&D employee
Age structure type Number in each age structure
under 30 (excluding 30) 159
30-40 (including 30 but excluding 40) 391
40-50 (including 40 but excluding 50) 155
50-60 (including 50 but excluding 60) 50
over 60 6
c. Explanation
□Applicable √N/A
d. Reasons for the significant changes in R&D employees and their impacts on the Company’s future
development
□Applicable √N/A
E. Cash flows
√Applicable □N/A
Unit: CNY
Amount in this Amount in last
Item Change (%)
period period
Net increase in customer bank deposits and
due to banks and other financial -8,916,033,228.67 7,511,166,145.93 N/A
institutions
Tax refunds received 33,191,912.56 N/A
Receipt of other cash related to business
2,759,422,171.88 1,643,536,862.48 67.90
activities
Net increase in loans and advances to
723,778,672.00 484,244,272.00 49.47
customers
Net increase in lending funds -400,000,000.00 N/A
Net increase in central and interbank
13,037,761,321.90 559,089,326.28 2,231.96
deposits
Cash paid for interests, fees, and
79,226,410.98 163,462,728.48 -51.53
commissions
Cash paid for taxes and surcharges 62,043,324,506.36 44,609,684,025.28 39.08
Cash received from investment
6,079,930.68 N/A
recoveries
Cash received from investment returns 5,880,000.00 860,000.00 583.72
Net cash received from disposal of fixed
assets, intangible assets and other long- 355,149.00 2,463,474.29 -85.58
term assets
Cash received from other investment
4,971,762.18 9,983,452.63 -50.20
relate activities
Cash paid to acquire or construct fixed
assets, intangible assets and other long- 5,306,546,416.54 3,408,784,532.01 55.67
term assets
Cash paid for investments 210,000,000.00 2,150,000,000.00 -90.23
Cash paid for other investment related
31,486,829.54 23,048,029.93 36.61
activities
Cash paid for distribution of dividends
57,370,196,191.46 26,476,019,839.37 116.69
and profits or payment of interests
Cash paid for other financing related
54,332,788.37 88,121,549.59 -38.34
activities
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Impact of fluctuation in exchange rate on
911,088.01 -2,026,542.60 N/A
cash and cash equivalents
(1) The decrease in the net increase in customer bank deposits and due to banks and other financial
institutions was mainly due to the group company transferred the equity of Guizhou Xijiu Co., Ltd.,
which is no longer a member of the company’s holding subsidiary Kweichow Moutai Group Finance
Co., Ltd, resulting the customer deposits to reduce , compared with the previous period.
(2) The increase in Tax refunds received was mainly due to the refunds of taxes from taxation authorities
of Kweichow Moutai Liquor Sales Co., Ltd., a controlling subsidiary of the Company in the period.
(3) The increase in the cash received from other operating activities was mainly due to the increase in
income tax on withholding dividends and interest on deposits with commercial banks compared with the
previous period.
(4) The increase in the net increase in loans and advances to customers was mainly due to the increase in
the loans to group member units issued by Kweichow Moutai Group Finance Co., Ltd., a controlling
subsidiary of the Company, compared with the previous period.
(5) The change in the net increase of lending funds is mainly due to the recovery of interbank lending
funds by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company, compared
with the previous period.
(6) The increase in the net increase in deposits in central and interbank deposits was mainly due to the
increase in the time deposits with early withdrawal forbidden deposited by Kweichow Moutai Group
Finance Co., Ltd., a controlling subsidiary of the Company, compared with the previous period.
(7) The decrease in the cash paid for interest, handling fee and commission was mainly due to the decrease
in the cash paid for interests by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of
the Company compared with the previous period.
(8) The increase in the cash paid for taxes and surcharges was mainly due to the taxes and surcharges
payable at the beginning of the year and the increase in the taxes in the current period.
(9) The decrease in the cash received from investment recoveries due to the cash received from disposal
of non-current financial assets in the previous period.
(10) The increase in the cash received from investment income was mainly due to the increase in the bond
interest received by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company,
in the current period compared with the previous period.
(11) The decrease in the net cash received from disposal of fixed assets, intangible assets and other long-
term assets was mainly due to the decrease in the cash received from disposal of fixed assets compared
with the previous period.
(12) The increase in the cash paid to acquire or construct fixed assets, intangible assets and other long-
term assets was mainly due to the increase in the cash paid for capital construction project compared with
the previous period.
(13) The decrease in the cash received from other investing activities was mainly due to the decrease in
the capital construction performance bond received compared with the previous period.
(14) The decrease in the cash paid for investments was mainly due to the purchase of certificate of deposits
in the previous period.
(15) The increase in the cash paid for other investing activities was mainly due to the increase in the capital
construction performance bond refunded compared with the previous period.
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(16) The increase in the cash paid for distribution of dividends and profits or payment of interest was due
to the company implemented a special dividend plan to repay shareholders in December 2022, which
increasing the distribution of cash dividends compared with the previous period.
(17) The decrease in the cash paid for other financing related activities was mainly due to the decrease in
the cash for lease fees compared with the previous period.
(18) The increase in the impact of fluctuation in exchange rate on cash and cash equivalents was due to
the Company’s wholly-owned subsidiary, Kweichow Moutai Paris Trading, whose financial statement of
overseas operation has been converted as the foreign currency translation differences in the statement of
recording currency.
5.2 Reasons for significant changes of profit caused by non-core business
□Applicable √N/A
5.3 Analysis of assets and liabilities
√Applicable □N/A
A. Assets and liabilities
Unit: CNY
As % of As % of
Change in Explanation about
Amount by the end total Amount by the end total
Item percentage any material
of this period assets of last period assets
(%) change
(%) (%)
Cash and cash
58,274,318,733.23 22.91 51,810,243,607.11 20.30 12.48
equivalents
Mainly because
the sales of bank
acceptable bills by
the Company’s
wholly-owned
Notes
105,453,212.00 0.04 N/A subsidiary,
receivable
Kweichow
Moutai-Flavor
Liquor Marketing
Co., Ltd., has
increased.
Mainly due to the
receivables of
liquor of Guizhou
Laymau Liquor
Industry Co., Ltd.,
Accounts
20,937,144.00 0.008 N/A a controlling
receivable
subsidiary of the
Company which
have been
recovered in
January 2023.
Mainly the
increase in the
Prepayment 897,377,162.27 0.35 389,109,841.28 0.15 130.62
prepaid land
listing deposit.
Inventories 38,824,374,236.24 15.26 33,394,365,084.83 13.09 16.26
Mainly the
Current certificates of
portion of deposits
2,123,601,333.33 0.83 N/A
non-current reclassified to the
assets current portion of
non-current assets
Other current Mainly due to the
160,843,674.42 0.06 71,527,560.74 0.03 124.87
assets increase in
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ANNUAL REPORT 2022
deduction VAT
input tax.
Increase in the
purchase of bonds
by Kweichow
Debt Moutai Group
380,685,319.09 0.15 170,468,623.71 0.07 123.32
investment Finance Co., Ltd.,
a controlling
subsidiary of the
Company
Fixed assets 19,742,622,547.86 7.76 17,472,173,182.85 6.85 12.99
Mainly the new
capitalized
Development
190,536,632.60 0.07 N/A research and
expenditures
development
expenses
Mainly caused by
the increase of
deferred tax assets
Deferred
due to the
income tax 3,458,931,368.11 1.36 2,237,206,443.84 0.88 54.61
confirmation of
assets
internal
transactions with
unrealized profits.
Mainly the
certificates of
Other non- deposits
2,059,761,333.33 0.81 N/A
current assets reclassified to the
current portion of
non-current assets.
Payroll and
Mainly the
employee
4,782,311,242.41 1.88 3,677,845,718.53 1.44 30.03 increase in annual
benefits bonus payable
payable
Mainly the
decrease in tax
Taxes payable 6,896,555,423.83 2.71 11,979,802,144.01 4.69 -42.43
payable at the end
of the year
Decrease in the
deposits absorbed
from other
member units of
the group
Deposits from
company by
customers and 12,874,043,355.42 5.06 21,763,575,647.32 8.53 -40.85
Kweichow Moutai
inter-bank
Group Finance
Co., Ltd., a
controlling
subsidiary of the
Company,
Firstly, in
December 2022,
the company
implemented a
special dividend
plan to repay
shareholders,
which increased
Total assets 254,364,804,995.25 100.00 255,168,195,159.90 100.00 -0.31
the distribution of
cash dividends;
Secondly, the
group company
transferred the
equity of Guizhou
Xijiu Co., Ltd.,
which is no longer
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ANNUAL REPORT 2022
a member of the
company’s
holding subsidiary
Kweichow Moutai
Group Finance
Co., Ltd, resulting
the customer
deposits to reduce.
B. Main assets overseas
□Applicable √N/A
C. Restricted assets rights as of the end of this reporting period
□Applicable √N/A
D. Other description
□Applicable √N/A
5.4 Analysis of operating information in the industry
√Applicable □N/A
Analysis of operating information in the liquor production industry
A. Industry profile
√Applicable □N/A
According to the National Bureau of statistics, the total output of Chinese Baijiu production enterprises in
Chinese Baijiu above designated size has reached 6,712.4 million liters in 2022, a slight decrease of 5.58%
compared with the same period last year. The sales revenue has reached CNY 662.645 billion, a year-on-
year increase of 9.64%; the total profit was CNY 220.172 billion, a year-on-year increase of 29.36%.
B. Production Capacity
Current capacity
√Applicable □N/A
Main Factories Designed Capacity Actual Capacity
Chinese Baijiu production workshop of Moutai 42,742.50 56,810.44
Series liquor production workshop 38,060.00 35,075.39
Notes: (1) In the design capacity of 38,060.00 tons of series base liquor, due to the production process
characteristics of the series liquor, the design capacity of 6,400.00 tons of series base liquor was placed
into operation in November 2022, and the actual capacity would be released in 2023. The basic liquor
design capacity for Moutai and series liquor refer to the planned capacity. (2) The company uses the weight
unit to measure according to the usual practice. The units of measurement used for production, sales,
inventory, and production capacity in this report are all in "tons".
Capacity under Construction
√Applicable □N/A
Unit: CNY 10,000
Planned Amount invested in Accumulated
Name of the Capacity under Construction investment this reporting investment
amount period amount
30000-ton Moutai-flavored series liquor technical
838,400.00 115,353.00 486,626.00
renovation project and its supporting facilities
First Phase Construction Project of the "14th Five-
Year Plan" Maotai-flavor Liquor Xishui 411,000.00 42,850.00 42,850.00
Tongminba
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ANNUAL REPORT 2022
Technical transformation and construction project
of Moutai Liquor during the 14th Five-Year Plan 1,551,600.00 85.00 85.00
period
Production capacity calculation standards
√Applicable □N/A
In the above “Current capacity” table, the design capacity is calculated according to the production
process requirements, combined with the plant specifications and the number of cellars, and the actual
capacity is calculated according to the actual base liquor production yield in the reporting period.
C. Inventory at the end of the reporting period
√Applicable □N/A
Unit: Ton
Finished liquor Semi-finished liquor (including base liquor)
12,495.28 264,127.89
Note: The finished liquor is the Company’s packaged inventory stock (including Moutai-flavor series
liquor).
Inventory Impairment Risk Warning
□Applicable √N/A
D. Product profile
√Applicable □N/A
Unit: CNY 10,000
Chan
Produ ge
Change Change
ction- （% Main
Product Production （%） Sales （%）
grade (ton) (tons)
sales Sales revenue ） representing
Same Same
ratio same brand
Period period (%) perio
d
Moutai 56,810.44 0.60 37,901.39 4.52 10,783,368.53 15.37 Moutai
Moutai
Wangzi
liquor,
Other
Moutai
series 35,075.39 24.17 30,274.93 0.32 1,593,864.71 26.55
1935 liquor,
liquor
Han Jiang
liquor, Lai
Mao liquor
Note: (1) In order to ensure the sustainable development of the Company, a certain amount of base liquor
needs to be retained every year. According to the production process, it takes Maotai liquor at least 5 years
of cellaring since its production before in can be released from the factory. (2) Moutai is a blend of base
liquor of different years, different rounds and different concentrations. It is a perfect combination of
technology and art. Therefore, the base liquor of a certain year may appear as a product in the next several
years. (3) The Company regards quality as its life, adheres to quality first, adheres to the spirit of
craftsmanship, and adheres to the principle of “honoring the principles, abiding by the rules, sticking to
the craftsmanship, cellaring enough liquor to age, and not selling young liquor”. The production of Moutai
is of natural solid-state fermentation, brewed with traditional craftsmanship, and therefore the production
yield has certain volatility. (4) Based on the above reasons, the production and sales rate of Moutai base
liquor cannot be accurately calculated. The product formation process of series liquor is similar to that of
Moutai.
Product grading standards
√Applicable □N/A
Graded by the quality of the product.
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ANNUAL REPORT 2022
Changes in the product structure and business strategy
E. Raw material purchase
a. purchase model
√Applicable □N/A
Raw materials are mainly purchased from the market through centralized procurement according to the
Company’s production and sales plan.
b. purchase amount
√Applicable □N/A
Unit: CNY 10,000
Purchase amount in Purchase amount in as % in total
Raw materials type
this period last period purchase amount
Liquor brewing raw materials 248,398.92 310,081.75 41.78
Packaging materials 290,243.05 282,811.20 48.82
Energies 48,982.94 35,258.15 8.24
Workshop auxiliary materials 6,898.38 6,042.04 1.16
F. Sales
a. Sales model
√Applicable □N/A
The Company’s products are sold through direct selling and distributor channels. Direct sales channels
refer to self-operated channels and "i Moutai" digital marketing platform channel, and wholesale agency
channels refer to social distributors, supermarkets, e-commerce and other channels.
b. Sales channel
√Applicable □N/A
Unit: CNY 10,000
Sales amount in Sales amount in Sales volume in Sales volume in
Channel type
this period last period this period (ton) last period (ton)
Direct selling 4,937,873.77 2,402,936.23 11,186.57 5,735.70
Wholesale agency 7,439,359.47 8,202,992.80 56,989.75 60,702.99
c. Regional situation
√Applicable □N/A
Unit: CNY 10,000
Sales
as % in Sales volume as % in
Region Sales revenue in Sales revenue volume in
the total in last period the total
Name this period in last period this period
amount (ton) volume
(ton)
Domestic 11,953,275.29 10,344,081.75 96.57 66,162.41 64,877.80 97.05
Overseas 423,957.95 261,847.28 3.43 2,013.91 1,560.89 2.95
Regional division standards
□Applicable √N/A
d. Distributor Situation
√Applicable □N/A
Number
Number
decreased
increased in
Region Name Number of distributors by the end of the reporting period in the
the reporting
reporting
period
period
Domestic 2,084 5
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ANNUAL REPORT 2022
Overseas 105 1
Explanation
□Applicable √N/A
Management of distributors
□Applicable √N/A
e. Online-sales situation
√Applicable □N/A
Unit: CNY 10,000
Revenue from
Revenue from
Online sales Product grade sales in the Gross profit
sales in the YoY (%)
platform of online sales previous margin (%)
current period
period
"I Moutai" digital Medium and
marketing high-grade 1,188,270.28 N/A 95.26
platform channel liquor
Note: The sales revenue of the "I Moutai" digital marketing platform channel is the excluding tax
income of liquor realized by the company through this platform.
Future online business strategy
□Applicable √N/A
G. Analysis of the Company’s revenue and cost
a. the composition of the company’s main business by different types
√Applicable □N/A
Unit: CNY
Gross
Change Change profit Change
Type Operating revenue Operating costs
（%） （%） rate （%）
（%）
By class of product
Moutai 107,833,685,277.94 15.37 6,265,810,909.88 12.33 94.19 0.16
Other series liquor 15,938,647,070.77 26.55 3,630,302,426.92 9.57 77.22 3.53
Subtotal 123,772,332,348.71 16.70 9,896,113,336.80 11.30 92.00 0.38
by sales channel
Direct selling 49,378,737,661.60 105.49 1,874,222,059.91 100.97 96.20 0.08
Wholesale agency 74,393,594,687.11 -9.31 8,021,891,276.89 0.80 89.22 -1.08
Subtotal 123,772,332,348.71 16.70 9,896,113,336.80 11.30 92.00 0.38
By regional segment
Domestic 119,532,752,861.59 15.56 9,558,682,149.59 10.51 92.00 0.36
Overseas 4,239,579,487.12 61.91 337,431,187.21 39.60 92.04 1.27
Subtotal 123,772,332,348.71 16.70 9,896,113,336.80 11.30 92.00 0.38
Explanation
□Applicable √N/A
b. Costs
√Applicable □N/A
Explanation
√Applicable □N/A
See Statement of Cost, Analysis of main business, Section III Management Discussion and Analysis.
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5.5 Analysis of investment situation
Total investment
□Applicable √N/A
A. Significant equity investment
□Applicable √N/A
B. Important non-equity investment
√Applicable □N/A
Non raised fund projects (projects with total investment exceeding 10% of the Company’s audited net
assets at the end of last year)
a. According to the resolution of the Company’s 2011 annual shareholders’ meeting, the Company has
planned to invest CNY 3,583.16 million in the construction of Moutai-flavor series liquor making
technical transformation project and supporting facilities project. By the end of the reporting period, a
total of CNY 2,053.55 million had been invested.
b. According to the resolution of the annual general meeting of shareholders in 2021, the Company
adjusted the investment in the first-phase Moutai technical renovation project and supporting facilities in
Zhonghua Area. The total investment of the project was adjusted from CNY 4,139 million to CNY 4,846
million. At the end of the reporting period, a total of CNY 4,832.15 million was invested. This project
has been put into use.
C. Financial assets measured at fair value
□Applicable √N/A
4. Specific progress of major assets reorganization and integration during the reporting period
□Applicable √N/A
5.6 Analysis of major holding companies
√Applicable □N/A
Unit: CNY 10,000
Registered Operating Operating
Company name Industry Total assets Net assets Net profit
capital revenue profit
Liquor,
Kweichow
beverages
Moutai Sales 1,000.00 8,298,572.89 4,564,802.05 10,360,419.48 4,841,748.16 3,626,162.73
and tea
Co., Ltd.
wholesale
5.7 Structured entities controlled by the Company
□Applicable √N/A
6. Discussion and analysis of the Company’s future development
6.1 Pattern and trend in the industry
√Applicable □N/A
Industry pattern and trend.
From a macro-economic perspective, the long-term positive fundamentals of China's economy remains
unchanged. The per capita disposable income of residents has continued to grow, and liquor consumption
demand is likely to show an upward trend. In terms of industry development, the Company is facing a new
situation of industry development in which three phases are superimposed, including the period of
reshaping new order, the period of forming new pattern and the upgrading period of new consumption.
The market consumption demand will be more concentrated in and inclined to advantageous production
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ANNUAL REPORT 2022
areas, leading enterprises and excellent brands. Matthew effect is becoming more and more obvious in the
industry, and the overall development of the industry displays an upward trend.In terms of policy, in the
period of reshaping new order, the requirements for industry access, standards, land, environmental
protection and safety are more precise and standardized; from the perspective of the supply side, in the
period of forming a new pattern, the origin, main producing areas and base producing areas will further
optimize the layout of liquor industry and accelerate the adjustment of the pattern of famous liquor
enterprises versus small and medium-sized liquor enterprises; from the perspective of the demand side, in
the upgrading period of new consumption, the individual needs of the young people, the expansion of
consumption scenarios and the higher pursuit of quality culture will drive liquor enterprises to accelerate
transformation and upgrading.
Competitive advantages of the Company
First, to pursue excellent quality at all times. The Company adheres to the principle that quality is the soul
of life as well as the concept of "five-artisan quality", implements strict quality control throughout the life
cycle from "improved variety" to "products with aesthetic feeling". The Company vigorously maintains
the ecological uniqueness of the balanced producing areas, and innovates and inherits the scientific process
method and engineering method of selected materials, excellent process and exquisite utensils. Each batch
of products uses the long-term cellaring base resources and the diversified base liquor styles created by
exquisite blending techniques to form the typical flavor and quality expression characteristics of
Kweichow Moutai. The Company strove for excellence and refinement in the 30 processes and 165 links,
and created the excellent quality integrating aesthetic senses, aesthetic perception, aesthetic feelings, and
beauty aesthetic.
Second, to strive for building a first-class brand. After hundreds of years, Moutai has grown from a local
product that nobody cares about in 1915 to the world's first brand of hard liquor with the single product
revenue of CNY over 100 billion and a market value of over CNY one trillion. The Company strove to
build a brand matrix with the Party building brand as the guide. It constantly made the brand as a brand
with products with aesthetic feeling, optimized services, real public welfare, refined activity, and
outstanding craftsmanship, continuously enhanced the kinetic energy of the brand, highlighted the brand
tension of Moutai, greatly enhancing the brand influence and reputation, and constantly increasing the
brand value. From 2016 to 2022, the brand value of Moutai ranked first in the list of "Top 50 Most
Valuable Spirits Brands in the World" published by Brand Finance for seven consecutive years.
Third, to deeply explore the cultural connotation. Moutai culture is derived from the farming civilization
that "Pu people are good at brewing". It developed continuously in modern civilization. A “nine series”
cultural system was perfected and formed, leading the development trend of China liquor culture, which
became the acme of Chinese liquor culture The Company took the brewing tradition of "co-brewing by
man and nature" and the craftsman spirit of pursuing excellence as the core, and fully combined the
seasonal rhythm to carry out a series of activities of 24 solar terms, highlighting the cultural characteristics
of "obedience to the heaven and respect to the man" and expanding and enriching the cultural extension
of Moutai. It built a communication matrix of “Mass response online and offline", told a good brand story,
spread the voice of Moutai, and made the unique Moutai culture sparkling.
Fourth, innovated and inherited traditional processes. The Company has a unique brewing process that has
been passed down for thousands of years, insisting on the brewing of Moutai according to the weather
changes and making the brewing more traditional. The Company has comprehensively established a
quality evaluation system for raw materials of brewing, ensuring the high-quality supply of sorghum and
wheat from the aspects of origin and quality indicators, and highlighting the "selected materials"; followed
the traditional process of taking a year as one production cycle, stepping on the winter wheat during the
Dragon Boat Festival, feeding on the Double Ninth Festival, brewing with pure grain, solid fermentation
in an open manner, long-term storage in pottery jars, and blending liquor with liquor to display "excellent
process"; adhere to the supply of traditional elements, such as drying hall of concrete, fermentation
warehouse made with small green tile, pit stone and purple mud, to show the "exquisite utensils"; Adhere
to both inheritance and innovation, and make innovation more modern. The Company continued to
enhance the original innovation ability, deeply analyze the scientific connotation of traditional techniques,
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ANNUAL REPORT 2022
and conclude the process system of yeast-making, liquor-making, storage and blending, and establishe
five core technical systems to keep the vitality of traditional process methods forever.
Fifth, to continue to construct a beautiful ecology. Special landform, climate environment, high-quality
brewing water source, unique origin protection and unrepeatable microbial colonies are the unique
characteristics of the core producing area of Kweichow Moutai liquor with the area of 15.03 square
kilometers. By implementing the "five special projects" of increasing high-quality water resources,
improving air quality, conservation of water and soil, protecting microorganism and maintaining
ecosystem balance, the Company carried out the "five special actions" of energy saving, carbon reduction
and efficiency improvement, green product design, green transformation of industrial chain, green
scientific and technological innovation and green low-carbon life, and built a life community of “mountain,
water, forest, soil, river and microorganism” to fully maintain the ecosystem balance on which Moutai
depends.
In the production and operation, the Company also extended the maintenance of natural ecology to
commercial ecology, and guided relevant parties to form a tough, agile and efficient production, supply
and marketing ecosystem with excellent "Moutai standards" to jointly pursue the goal of specialization,
greening and digitalization of modernization.
6.2 Development strategy
√Applicable □N/A
In 2023, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New
Era, the Company will thoroughly studying and implementing the spirit of the 20th National Congress of
the Communist Party of China and the important speech addressed by the General Secretary Xi Jinping
during the inspection in Guizhou, focusing on the strategic goal of "double doubling, double consolidation
and double building" of the group company, adhering to the overall high-quality development, upholding
the concept of "quality is the soul of life", continuing to take the "five-line" high-quality development road
with Moutai aesthetics as its value connotation, attaching importance to the main business of "liquor" and
strengthening the strategic coordination, promoting work coordination and fully advance the high-quality
development and modernization of Moutai.
6.3 Business plan
√Applicable □N/A
2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party
of China, and it is also a crucial year for the 14th Five-Year Plan. We will adhere to the general tone of
striving for progress while maintaining stability, take the overall situation as a whole with high-quality
development, closely follow the strategic goal of "dual-doubling, dual-consolidating and dual-
construction" of the group company, aim at the annual objectives and tasks, and make every effort to do a
good job in production, operation and reform and development. The business objectives in this year are as
follow: first, the total operating revenue will increase by about 15.00% compared with the previous year;
and the second is to complete the capital construction investment amounting to CNY 7.109 billion. The
Board of Directors will focus on the annual objectives and tasks, make overall plans, and do a good job
the following key tasks:
To insist on corporate governance. First, to strengthen the leadership of Party building. To adhere to the
way of leading high-quality development with high-quality party building, unswervingly focus on party
building and the promotion of integration, continuously enhance the political and organizational functions
of grassroots party organizations, and promote the deep integration of party building with production and
operation; do a good job in the cultivation of professional talents and improvement in professional ability,
as well as cultivating a team of cadre talents possessing political consciousness and the ability of
modernization and satisfying the needs for development; focus on risk points in nine major areas,
continuously improve preventive measures, and consolidate the political ecology and development
environment of "liquor aroma, healthy atmosphere and harmonious relationship". Second, to
comprehensively improve modern corporate governance level. To insist on the benchmarking with the
world's first-class, keep up with international advanced level, carry out in-depth study of modern
management experience and practices, keep consolidating the achievements of state-owned enterprise
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ANNUAL REPORT 2022
reform, and constantly make up management shortcomings; fully implement the requirements of "five
adherences” for the construction of law-based Moutai, and continuously improve the legalization level of
enterprise and compliance operation.
To continue to do a good job in production and operation. First, to make every effort to ensure stable
production with high quality, continue to practice the "five artisans" quality concept, persist in improving
the "365" quality management system, optimize quality evaluation indicators, strengthen production
scheduling supervision and process control, and spare no effort to ensure the steady progress of base liquor
production. Second, to do a good job in marketing, thoroughly implement the "five-integration marketing
law", focus on the requirements of "six-limitation", center on making fine products, make every effort to
build core products, continuously optimize product structure and reshape product development pattern;
insist on expanding the market, continue to deepen the domestic market, accelerate the expansion of the
international market; firmly adhere to the way of strengthening channels, improve the management of
circulation channels, speed up the construction of terminal channels and increase the efforts in the
development of online channels; continue to provide excellent services, effectively standardize services
and handle appeals in a quick manner. At the same time, the Company will develop the classic models of
Moutai ice cream, increase the efforts in the research and development of new products, enrich the flavor
diversity of products, innovate and develop products which the young people love, and further broaden
the product range.
To insist on consolidating the foundation. First, to aim at the target of reaching annual investments, pay
close attention to quality, cost and progress, firmly promote the capacity expansion of Moutai during the
14th Five-Year Plan, packaging logistics park and the first phase of Xishui Tongminba as well as other
new projects, do the preparatory work for the proposed and reserved projects, and further consolidate the
foundation of industrial development. Second, to continue to optimize the system and mechanism for
scientific and technological innovation, enhance the ability of independent innovation, promote the deep
industry-university-research cooperation, vigorously promote the orderly development of scientific
research projects, accelerate the transformation of scientific research achievements, and provide strong
technical and intellectual support for high-quality development. Third, to accelerate the construction of
smart Moutai, vigorously implement digital empowerment, comprehensively promote the construction of
smart industrial chain, smart park and industrial Internet, promote the formation of industrial Internet
platform, further cultivate new kinetic energy for development, and push digital transformation to a new
level.
To build the bottom line of safety and environmental protection. To further improve the management and
control system for safety and environmental protection, implement the responsibility of safe production
and green development, optimize the systems for comprehensive management safety, emergency support,
green and low carbon, pollution prevention and control at all levels, and improve the overall safety level
and green development capability. First, to focus on the overall goal of "one base and one benchmark",
make great efforts to promote five special projects of "increasing high-quality water resources, improving
air quality, conservation of water and soil, protecting microorganism and maintaining ecosystem balance",
and continue to carry out five special actions of "saving energy, reducing carbon and increasing efficiency,
designing green products, green transformation of industrial chain, green technological innovation, and
green low-carbon life", build China's ecological wetland with high standards and other projects, spare no
effort to create a national "two mountains" base, strive for a national cleaner production class-I enterprise,
optimize and improve the cleaner production evaluation index system for liquor (Moutai-flavor)
manufacturing industry, and continuously build a green and low-carbon recycling industry system. Second,
to strengthen comprehensive risk management, continue to do a good job in the management of food safety
risks, compliance risks, environmental risks, etc., further promote safe production, and well perform the
investigation and management of hidden dangers in terms of fire, electricity, soil, housing, water and
vehicles, as well as fire protection, electrical equipment, aircraft operation, ground logistics and other
fields in the storage area, and further build a bottom line for high-quality development.
To continue to do a good job in brand building. First, to adhere to the construction of the "Nine Series"
Moutai culture, continue to write articles on the "Twenty-four Solar Terms", organize cultural activities
such as the Spring Equinox Forum, Tomb-sweeping Thanksgiving, and Grain Rain Talent Day to create a
unique cultural card for the 24 solar terms. Continue to hold well the activities special activities such as
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ANNUAL REPORT 2022
entering the four major academies, Moutai Fans Festival, Moutai Fans Carnival, "Happy Meeting Moutai
1935" and "Seeking the Source of Chinese Culture and Asking for Chinese Sauce-flavor", and make
excellent cultural works and literary and artistic works such as movies, music and dances, so as to create
a cultural activity matrix with Moutai characteristics. Second, to positively fulfill social responsibilities.
To continue to deepen the brand of public welfare activities such as "Chinese Moutai, Pillar of the
Country" and "Moutai Prince - Bright Youth", expand the carriers of public welfare cultural activities,
create the brand IP of Moutai public welfare, and enhance the corporate brand image; improve the ability
of industry to promote rural revitalization and local economic development.
6.4 Possible confronting risk
√Applicable □N/A
First, brand and reputation management risks; Second, the risks of environmental protection; Third, the
risks of public opinion; Fourth, security risks; fifth, investment risks.
6.5 Others
□Applicable √N/A
7. The Company’s failure to disclose the information and reasons in accordance with the standards
due to non-application of the standards or special reasons such as state secrets and trade secrets
□Applicable √N/A
Section IV Corporate Governance
1. Description of the related situation of corporate governance
√Applicable □N/A
In strict accordance with the Company Law, the Securities Law, the Code of Corporate Governance for
Listed Companies and other laws and regulations and the requirements of regulatory documents related to
corporate governance, the Company has established and improved the corporate governance structure in
combination with the actual situation of the Company, actively promoted the optimization of the corporate
governance structure and standardized the Company's operation. The Company has the party committee,
the general meeting of shareholders, the board of directors, the board of supervisors and the management.
It implements the leadership system of "two-way entry and cross-service" for members of party committee
and governance institutions, thus forming a corporate governance system with their own responsibilities,
coordinated operation and effective checks and balances. The Company continued to optimize the
governance mechanism, giving full play to the role of the general meeting of shareholders as the
Company's authority, the role of the Party Committee in direction control, overall situation management
and implementation promotion, the board of directors in decision-making and risk prevention as well as
the role of the role of the management in operation management and strong management, and
strengthening the supervision function of the board of supervisors.
General meeting of shareholders. In accordance with the requirements of the Articles of Association and
the Rules of Procedure of the General Meeting of Shareholders of the Company, the Company convened
general meetings of shareholders in a standardized manner to ensure that all shareholders, especially small
and medium shareholders, may enjoy equal status and can fully exercise their rights, and hired legal
advisers to issue legal opinions for the general meeting of shareholders. In 2022, the Company held two
general meetings of shareholders, deliberated and approved 18 proposals, and all resolutions had been
seriously implemented.
Board of Directors. At present, the Board of Directors of the Company consists of seven directors,
including three independent directors and one employee director. The composition of the Board of
Directors meets the requirements of laws and regulations. The Board of Directors of the Company has five
special committees, namely, Strategy Committee, Audit Committee, Risk Management Committee,
Nomination Committee, Remuneration and Appraisal Committee, with clear division of labor, clear
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ANNUAL REPORT 2022
responsibilities and effective operation. All directors of the Company can perform their duties in good
faith, loyalty, diligence, professionalism and due diligence from the interests of the Company and all
shareholders, and earnestly safeguard the legitimate rights and interests of the Company and all
shareholders.
Board of Supervisors. At present, the Board of Supervisors of the Company is composed of three
supervisors, one of whom is an employee supervisor. The composition of the Board of Supervisors meets
the requirements of laws and regulations. The Board of Supervisors of the Company can be diligent and
responsible, exercise the function of supervision and inspection in the spirit of being responsible to
shareholders, supervise the Company's financial status and operation, related transactions and the
performance of duties by senior executives, and safeguard the legitimate rights and interests of the
Company and all shareholders.
Situation of the work of the management. The management of the Company carried out daily production
and operation matters according to the statutory authority and the authorization of the board of directors,
and it was responsible for organizing and implementing the resolutions of the board of directors, and
reporting the same to the board of directors. In 2022, production and operation, reform and development
were successfully completed, and the role of operation, implementation and management worked
effectively.
Information on controlling shareholders and listed companies. Controlling shareholders shall exercise the
rights and assume the obligations of the investor in strict accordance with the requirements of the Company
Law. The Company has independent business and self-management ability. The controlling shareholders
and the listed companies are independent in business, personnel, assets, institutions and finance. The Board
of Directors, the Board of Supervisors and internal institutions of the Company operate independently,
ensuring that major decisions of the Company would be made and implemented independently by the
Company.
Information disclosure of the Company. The Company shall disclose relevant information in a true,
accurate, complete, timely and fair manner in strict accordance with laws, regulations, Articles of
Association and the Administrative Measures of the Company for Information Disclosure, and ensure that
all shareholders and other stakeholders would have equal access to company information. During the
reporting period, the Company disclosed 35 temporary announcements and 4 regular reports. After
comprehensive evaluation by Shanghai Stock Exchange, the evaluation result of the Company's
information disclosure from 2021 to 2022 is A(Excellent).
Related transactions. There are related transactions between the Company and its controlling shareholder,
China Kweichow Moutai Distillery (Group) Co., Ltd. and other related parties. These related transactions
are carried out to ensure the normal production, operation and business development of the Company. The
specific contents were regulated through relevant agreements. The legal procedures are fulfilled, and the
principles of openness, fairness and impartiality were followed. Hence, there is no adverse impact on the
operation of the Company.
Construction of internal control. During the reporting period, the Company continued to carry out internal
control related work in accordance with the requirements of the Basic Rules for Enterprise Internal
Control, and kept promoting internal control construction, evaluation, auditing and other related work to
ensure the realization of the Company's internal control objectives and further improve the corporate
governance level.
Whether there are significant differences between corporate governance and laws, administrative
regulations and the CSRC regulations on the governance of listed companies; if there are any major
differences, the reasons shall be explained
□Applicable √N/A
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ANNUAL REPORT 2022
2. The specific measures taken by the controlling shareholders and actual controllers of the company
to ensure the independence of the company's assets, personnel, finance, institutions and business, as
well as the solutions, work progress and follow-up work plans that affect the independence of the
company work progress and follow-up work plans that affect the independence of the company
□Applicable √N/A
The situation of the controlling shareholders, actual controllers and other units under their control engaged
in the same or similar business as the company, as well as the impact of great changes in the industry
competition or competition on the Company, the solution measures taken, solution progress and
subsequent solution plans
□Applicable √N/A
3. Introduction of shareholders’ Meeting
Date of
Query index of disclosure of
Session of Date of the designated the
Meeting resolution
the meeting convening website published publication
in the resolution of the
resolution
Please refer to the
the annual Announcement on Resolution of
The Shanghai
general 2021 Annual General Meeting of
2022-06-16 Stock Exchange 2022-06-17
meeting in Shareholders of Kweichow
www.sse.com.cn
2021 Moutai (Announcement No.: Lin
2022-014) for details.
Please refer to the
The first
Announcement on Resolution of
extraordinary
The Shanghai the First Extraordinary General
general
2022-12-14 Stock Exchange 2022-12-15 Meeting of Shareholders of
meeting of
www.sse.com.cn Kweichow Moutai in 2022
shareholders
(Announcement No.: Lin 2022-
in 2022
031) for details.
Preferred shareholders with restored voting rights request an extraordinary general meeting of
shareholders
□Applicable √N/A
Description of the shareholders’ general meeting
□Applicable √N/A
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4. Situation of directors, supervisors and senior officers
4.1 Shareholding changes and remuneration of outgoing directors, supervisors and senior managers currently and during the reporting period
√Applicable □N/A
Unit: per share
Total pre-tax Whether to
Number The remuneration get paid
Number Cause
of increase obtained from the
of shares of The
shares or from the related
held at increase
Start Date Termination date held at decrease Company parties of the
Full Name Position (note) Gender Age the or
of Term of term the end of during the company
beginning decrease
of the shares reporting
of the of
year within period (ten
year shares
the year thousand
CNY)
Secretary of the October 06,
Ding party committee 2022
Male 48 Yes
Xiongjun Chairman, September
director 24, 2021
Deputy Secretary
November
of the party
06, 2022
committee
Director November
Li Jingren Male 58 Yes
28, 2018
Acting general
manager July 02, 2019
responsibilities
Jiang Independent June 16,
Male 51 10.88 No
Guohua director 2022
Guo Independent June 16,
Male 54 10.88 No
Tianyong director 2022
Sheng Independent June 16,
Male 52 10.88 No
Leiming director 2022
Liu Director June 16,
Male 47 Yes
Shizhong 2022
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Xie Employee October 07,
Female 40 77.99 No
Qinqing director 2022
Deputy Secretary
of the party
committee,
November
chairman of the 93.63 No
03, 2022
Trade Union of
You Yalin the party Male 53
committee
Chairman and
supervisor of the March 20,
Board of 2020
Supervisors
Che Supervisor June 10,
Male 55 72.50 No
Xingyu 2020
Liu Staff supervisor June 10,
Male 45 79.44 No
Chenglong 2020
Member of the November
Zhong party committee 03, 2022
Male 51 119.21 No
Zhengqiang vice-general
July 13, 2015
manager
Member of the November
party committee 03, 2022
Tu Huabin Male 47 93.78 No
vice-general February 27,
manager 2020
Member of the November
Wang party committee 03, 2022
Male 51 93.27 No
Xiaowei vice-general February 27,
manager 2020
Member of the November
party committee 03, 2022
Deputy General November
Jiang Yan Female 45 53.34 No
Manager and 15, 2021
Chief Financial
Officer
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Secretary of the January 25,
Board 2022
Independent May 18,
Lu Jinhai Male 52 June 16, 2022 9.18 No
director 2016
Independent September September 22,
Xu Dingbo Male 59 14.57 No
director 20, 2016 2022
Zhang Independent September September 22,
Male 59 14.57 No
Jingzhong director 20, 2016 2022
Employee March 20,
Fu Zhigang Male 44 October 07, 2022 Yes
director 2020
Total / / / / / / 754.12 /
Note: 1. According to the relevant regulations of Guizhou State-owned Assets Supervision and Administration Commission, the annual salary of enterprise leaders is
composed of basic annual salary, performance-based annual salary and term incentive. In principle, they do not enjoy other salary expenses except the three parts,
such as subsidies.2. The pre-tax remuneration received from the Company during the reporting period includes the tenure incentive for the period from 2018 to 2020.
Full Name Main work experience
He served as deputy Secretary General of Guizhou Provincial Government and member of the Party Leadership Group of The General Office of
Guizhou Provincial Government, Deputy Director of the Office of the Leading Group for Comprehensively Deepening Reform of Guizhou Provincial
Ding Party Committee, Standing Committee member and Vice Mayor of Bijie Municipal Committee of Guizhou Province (in charge of the executive work
Xiongjun of the municipal Government), and Secretary of the Party Leadership Group and Director of Guizhou Energy Bureau. Currently, he is the Secretary
of the party committee, Chairman and director of China Kweichow Moutai Distilley (Group) Co., Ltd., Secretary of the party committee, Chairman
and director of Kweichow Moutai Co., Ltd., and Chairman and director of Moutai Institute.
He served as a member of the Party Group and chief accountant of Guizhou Reservoir and Ecological Immigration Bureau, a member of the Party
Group and deputy Director of Guizhou Reservoir and Ecological Immigration Bureau, the chief accountant of China Kweichow Moutai Distillery
Li Jingren
(Group) Co., Ltd.. Currently, he is deputy Secretary of the party committee, deputy Chairman, Director and General Manager of China Kweichow
Moutai Distillery (Group) Co., LTD, deputy Secretary of the party committee, director and acting General Manager of Kweichow Moutai Co., Ltd.
He served as a part-time member of the 17th Issuance Examination Commission of China Securities Regulatory Commission, a senior investment
consultant of Bosera Funds, a global valuation consultant of KPMG, a member of the Global Agenda Council of the World Economic Forum, an
independent director of CITIC Trust Co., Ltd., an independent director of Datang International Power Generation Co., Ltd. and an independent
Jiang
director of Zhongrong Fund Management Co., Ltd. Currently serves as a professor of accounting at Guanghua School of Management, Peking
Guohua
University, distinguished professor of Boya Plan in Peking University, distinguished professor of Changjiang scholar of the Ministry of Education,
executive vice president of Graduate School of Peking University, and independent director of Bank of China Limited, China Merchants Life
Insurance Co., Ltd.,and Kweichow Moutai Co., Ltd.
Guo He worked in Yantai Branch of China People's Bank; currently serves as a professor and doctoral supervisor at the School of Finance of the Central
Tianyong University of Finance and Economics, and an Independent non executive director of PING AN HEALTH CLOUD COMPANY LIMITED and
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independent director Kweichow Moutai Co., Ltd.
He served as a senior partner lawyer and director of Shanghai Zhongmao Law Firm. Currently serve as a Chairman of the Partnership Meeting of
Sheng Beijing Guantao Zhongmao Law Firm, senior partner lawyer of Beijing Guantao Zhongmao (Shanghai) Law Firm, and independent director of
Leiming Shanghai Zhenhua Heavy Industries Co., Ltd., Tsingtao Brewery Co., Ltd., Shanghai Foreign Service Holding Group Co., Ltd. and Kweichow Moutai
Co., Ltd.
Served as the division chief of the Department of Legal Intellectual Property Protection of China Kweichow Moutai Distillery (Group) Co., Ltd., and
Liu director of the Department of Legal Intellectual Property Protection of Kweichow Moutai Co., Ltd. Currently serve as the Party secretary and
Shizhong chairman of the Board of Directors of Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd., chairman of the
Board of Directors of Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd., and director of Kweichow Moutai Co., Ltd.
He served as the member of the party committee, secretary of the Disciplinary Committee and chairman of the Board of Supervisors of Kweichow
Xie Moutai-Flavor Liquor Marketing Co., Ltd., and deputy secretary, director and chairman of the Trade Union of Kweichow Moutai-Flavor Liquor
Qinqing Marketing Co., Ltd. Currently serve as director of Enterprise Management Department of China Kweichow Moutai Distillery (Group) Co., Ltd., and
employee director and director of the Enterprise Development Department of Kweichow Moutai Co., Ltd.
He served as an assistant to the General Manager, director of the party committee Office, secretary of the party committee, director of the National
Security Office, director of the Confidentiality Office, and director of the Petition Office of China Kweichow Moutai Distillery (Group) Co., Ltd.
You Yalin
Currently serve as the deputy secretary of the party committee, chairman of the Board of Supervisors, supervisor and chairman of the Trade Union
of the party committee of Kweichow Moutai Co., Ltd.
He served as the director of the Enterprise Management Department of Kweichow Moutai Co., Ltd., member of the Leading Group for Continuing
the Reform Comprehensively of China Kweichow Moutai Distillery (Group) Co., Ltd., chairman of the Board of Full-time Supervisors of the
Che
Management Office of the Board of Supervisors of subsidiaries, Director of the Life Service Guarantee Center and Deputy Secretary of the Party
Xingyu
Committee of China Kweichow Moutai Distillery (Group) Co., Ltd. Currently serves as the supervisor and the director of the Life Service Guarantee
Center of Kweichow Moutai Co., Ltd.
He served as the director of the Department of Legal Intellectual Property Protection, director of the Department of Human Resources and Social
Liu Security and Vice President of Party School of Party Committee (Staff Training School) of China Kweichow Moutai Distillery (Group) Co., Ltd.
Chenglong and the director of the Department of Legal Intellectual Property Protection of Kweichow Moutai Co., Ltd. Currently serves as the employee
supervisor and director of the Department of Organization, Human Resources and Social Security of Kweichow Moutai Co., Ltd.
Zhong He served as director and Deputy Secretary of Workshop 13 of Kweichow Moutai Co., Ltd.; Assistant General Manager and Director of Production
Zhengqiang Management Department. Currently serves as a member of the party committee and deputy General Manager of Kweichow Moutai Co., Ltd.
He served as an Assistant General Manager of Kweichow Moutai Co., LTD., director of production management department, new workshop
preparation group leader, party branch secretary of production, assistant General Manager of China Kweichow Moutai (Group) distillery Co., Ltd.,
Tu Huabin deputy party secretary, deputy chairman, General Manager of Kweichow Moutai Distillery (Group) Xijiu Co., Ltd., and General Manager of
Kweichow Moutai Co., Ltd. Heyixing Liquor Branch. Currently serves as a member of the party committee and deputy general manager of Kweichow
Moutai Co., Ltd.
Wang He served as the deputy secretary of the Party branch and deputy director of the 4 Workshop of Kweichow Moutai Co., Ltd., the secretary of the
Xiaowei Party branch and deputy director of the 23 Workshop of Kweichow Moutai Co., Ltd., and the secretary of the Party branch and deputy director of the
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ANNUAL REPORT 2022
25 Workshop of Kweichow Moutai Co., Ltd. Currently serves as a member of the party committee and Deputy General Manager of Kweichow
Moutai Co., Ltd. and concurrently serves as the Party Secretary and Chairman of the Board of Directors of Kweichow Moutai Sales Co., Ltd.
She served as the chairman of the board of directors and general manager of Moutai(Guizhou) Investment Management Co., Ltd. , the chairman of
the board of directors and the secretary of Party Branch of Moutai Financial Leasing Co., Ltd, and the deputy chairman of the board of directors of
Jiang Yan Guiyang GY Financial Leasing Co., Ltd. Currently serves a s a member of the Party Committee, deputy general manager, chief Accountant and
secretary of the Board of Directors of Kweichow Moutai Co., Ltd., the secretary of the Party branch and chairman of the Board of Directors of
Kweichow Moutai Group Finance Co., Ltd.
Other information
□Applicable √N/A
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ANNUAL REPORT 2022
4.2 The current and outgoing directors, supervisors and senior management personnel during the
reporting period
A. Appointment in shareholder entity
√Applicable □N/A
Name of Name of shareholder Positions held in Start date of End date of
incumbent units shareholder units term of service term of service
China Kweichow
Ding Party secretary, chairman
Moutai Distillery August 2021
Xiongjun and director
(Group) Co., Ltd.
Deputy Party Secretary,
China Kweichow
Vice Chairman and July 2019
Li Jingren Moutai Distillery
General Manager
(Group) Co., Ltd.
Director October 2018
China Kweichow
Xie Director of the Enterprise
Moutai Distillery December 2021
Qinqing Management Department
(Group) Co., Ltd.
Deputy Secretary of
China Kweichow
Che Party Committee and November
Moutai Distillery December 2020
Xingyu Director of Life Service 2022
(Group) Co., Ltd.
Guarantee Center
Director of Human
Resources and Social
China Kweichow Security Department,
Liu November
Moutai Distillery Vice President of Party February 2020
Chenglong 2022
(Group) Co., Ltd. School of Party
Committee (Staff
Training School)
B. Appointment in other units
√Applicable □N/A
Name of Positions Start date End date
incumben Name of other units held in of term of term
t other units of service of service
Chairman
of the
Ding March
Moutai Institute Board of
Xiongjun 2022
Directors,
director
Executive
vice
president of
Graduate
School,
Professor of April
Peking University
accounting 2020
Jiang at
Guohua Guanghua
School of
Manageme
nt
Independen Decembe
BANK OF CHINA LIMITED
t director r 2018
China Merchants Life Insurance Company Independen Septembe
Limited t director r 2017
Guo Professor
Central University of Finance and Economics
Tianyong and
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ANNUAL REPORT 2022
doctoral
supervisor
at the
School of
Finance
Independen May
PING AN HEALTH CLOUD COMPANY LIMI t non 2018
TED executive
director
Independen October June
AA Industrial Belting ( Shanghai ) Co., Ltd
t director 2018 2022
April
Beijing Guantao Zhongmao Law Firm lawyer
2016
Shanghai Zhenhua Port Machinery Company Independen June
Limited t director 2019
Sheng Independen June
Tsingtao Brewery Co.,Ltd
Leiming t director 2020
Independen Septembe
Shanghai Foreign Service (Group) Co.,Ltd.
t director r 2021
Independen Novembe
Shanghai United Imaging Healthcare Co., Ltd.
t director r 2020
Chairman
Kweichow Moutai Distillery (Group) Real Estate of the May
Investment Development Co., Ltd. Board, 2020
Liu director
Shizhong Chairman
of the May
Guiyang Business Co., Ltd.
Board, 2020
director
Kweichow Moutai Distillery (Group) Real Estate Decembe January
Liu Director
Investment Development Co., Ltd. r 2015 2023
Chenglon
Decembe Novembe
g Kweichow Moutai Group Finance Co., Ltd. Director
r 2018 r 2022
Chairman
Moutai (Guizhou) Investment Management Co., Decembe
of the
Ltd. r 2017
Board August
Jiang Yan
Secretary of 2022
Decembe
Moutai Financial Leasing Co., Ltd the Party
r 2017
Branch
4.3 Remuneration of directors, supervisors and senior management personnel
√Applicable □N/A
The annual assessment criteria for the chairman of the board of directors,
vice chairman, deputy general manager and chairman of the board of
supervisors shall be organized by the provincial SASAC in accordance with
Decision-making
relevant regulations, and comprehensively determined in combination with
procedure of the
the Company's annual operating conditions and performance appraisal
remuneration of
results. Those for employee directors and supervisors are comprehensively
directors, supervisors
determined according to the Company's salary management system and the
and senior executives
results of personal performance appraisal. The decision-making procedures
of independent directors shall be implemented in accordance with the
relevant regulations of the board of directors.
Basis for determining Determined by the Administrative Measures for the Remuneration of the
the remuneration of Person in Charge of the Enterprises Supervised by State-owned Assets
directors, supervisors Supervision and Administration Commission of Guizhou Province, the
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ANNUAL REPORT 2022
and senior managers Measures for Assessing the Operating Performance of the Persons in Charge
of the Enterprises Supervised by State-owned Assets Supervision and
Administration Commission of Guizhou Province, the Operational
Guidelines for the Promotion of Tenure System and Contract-based
Management for the Member of the Management in the Enterprises
Supervised by State-owned Assets Supervision and Administration
Commission of Guizhou Province (for Trial Implementation), and the
Administrative Measures for the Performance Appraisal of the Members of
the Management, the Administrative Measures for the Renumeration of the
Members of the Management and the Measures for the Implementation of
Salary Management of the Company and other systems, and the basis for
determining the renumeration of independent directors shall be implemented
in accordance with the relevant provisions of the board of directors.
Actual payment of For details, please refer to “Shareholding changes and remuneration of
remuneration of outgoing directors, supervisors and senior managers currently and during the
directors, supervisors reporting period” in this report.
and senior management
personnel
Total actual For details, please refer to “Shareholding changes and remuneration of
remuneration received outgoing directors, supervisors and senior managers currently and during the
by all directors, reporting period” in this report.
supervisors and senior
management personnel
at the end of the
reporting period
4.4 Changes in directors, supervisors and senior management personnel of the company
√Applicable □N/A
Situation
Name Position Reasons of change
of change
Election of Shareholders Meeting. Please refer to the
Announcement on Resolution of 2021 Annual General
Jiang Independent
Elected Meeting of Shareholders of Kweichow Moutai
Guohua director
(Announcement No.: Lin 2022-014) disclosed on June 17,
2022 for details.
Elected Election of Shareholders Meeting. Please refer to the
Announcement on Resolution of 2021 Annual General
Guo Independent
Meeting of Shareholders of Kweichow Moutai
Tianyong director
(Announcement No.: Lin 2022-014) disclosed on June 17,
2022 for details.
Elected Election of Shareholders Meeting. Please refer to the
Announcement on Resolution of 2021 Annual General
Sheng Independent
Meeting of Shareholders of Kweichow Moutai
Leiming director
(Announcement No.: Lin 2022-014) disclosed on June 17,
2022 for details.
Elected Election of Shareholders Meeting. Please refer to the
Announcement on Resolution of 2021 Annual General
Liu
Director Meeting of Shareholders of Kweichow Moutai
Shizhong
(Announcement No.: Lin 2022-014) disclosed on June 17,
2022 for details.
Elected Employee representative election. Please refer to the
Xie Employee Announcement of Kweichow Moutai on the Election Results
Qinqing director of Employee Directors (Announcement No.: Lin 2022-019)
disclosed on October 11, 2022 for details.
Lu Jinhai Independent Left post Resolutions of the Shareholders Meeting. Please refer to the
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ANNUAL REPORT 2022
director Announcement on Resolution of 2021 Annual General
Meeting of Shareholders of Kweichow Moutai
(Announcement No.: Lin 2022-014) disclosed on June 17,
2022 for details.
Resign. Please refer to the Announcement of Kweichow
Xu Independent Moutai on Resignation of Independent Directors
Left post
Dingbo director (Announcement No.: Lin 2022-018) disclosed on September
24, 2022.
Resign. Please refer to the Announcement of Kweichow
Zhang Independent Moutai on Resignation of Independent Directors
Left post.
Jingzhong director (Announcement No.: Lin 2022-018) disclosed on September
24, 2022.
Left post. Please refer to the Announcement of Kweichow
Fu Employee Moutai on the Election Results of Employee Directors
Left post.
Zhigang director (Announcement No.: Lin 2022-019) disclosed on October 11,
2022 for details.
4.5 Explanation of punishment by securities regulatory agencies in recent three years
□Applicable √N/A
4.6 Others
□Applicable √N/A
5. Board meetings during reporting period
Session of the Date of convening Meeting resolution
meeting
The first annual Please refer to the Announcement of Kweichow Moutai
meeting of the third on the Resolution of the First Meeting of the Third Board
January 25, 2022
Board of Directors of Directors in 2022 (Announcement No.: Lin 2022-002)
in 2022 disclosed on January 27, 2022 for details.
The second Please refer to the Announcement of Kweichow Moutai
meeting of the third on the Resolution of the Second Meeting of the Third
March 29, 2022
Board of Directors Board of Directors in 2022 (Announcement No.: Lin
in 2022 2022-005) disclosed on March 31, 2022 for details.
The third meeting The meeting deliberated and approved the Report for the
of the third Board First Quarter of 2022.
April 25, 2022
of Directors in
2022
The fourth meeting Please refer to the Announcement of Kweichow Moutai
of the third Board on the Resolution of the Fourth Meeting of the Third
May 26, 2022
of Directors in Board of Directors in 2022 (Announcement No.: Lin
2022 2022-011) disclosed on May 27, 2022 for details.
The fifth meeting The meeting deliberated and approved the Proposal on
of the third Board Formulating the Development Plan for the Fourteenth
of Directors in Five Year Plan, the Proposal on Formulating the
2022 Administrative Measures for the Selection and
Appointment of Members of the Management, the
June 14, 2022 Proposal on Formulating the Administrative Measures
for the Performance Appraisal of Members of the
Management and the Proposal on Formulating the
Administrative Measures for Guarantee as well as the
Proposal on Formulating the One Agreement and Two
Liability Statements for the Members of the Management.
The sixth meeting The meeting deliberated and approved the Semi-annual
August 01, 2022
of the third Board Report of Kweichow Moutai in 2022.
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ANNUAL REPORT 2022
of Directors in
2022
The seventh The meeting deliberated and approved the Proposal on
meeting of the third Purchasing the Right to Use the State-owned
September 08, 2022
Board of Directors Construction Land in Plot C and D of Zhuwangtuo in
in 2022 Yantan Community, Maotai Town
The eighth meeting Please refer to the Announcement of Kweichow Moutai
of the third Board on the Resolution of the Eighth Meeting of the Third
September 09, 2022
of Directors in Board of Directors in 2022 (Announcement No.: Lin
2022 2022-017) disclosed on September 10, 2022 for details.
The ninth meeting Please refer to the Announcement of Kweichow Moutai
of the third Board on the Resolution of the Ninth Meeting of the Third Board
October 08, 2022
of Directors in of Directors in 2022 (Announcement No.: Lin 2022-021)
2022 disclosed on October 17, 2022 for details.
The Tenth meeting Please refer to the Announcement of Kweichow Moutai
of the third Board on the Resolution of the Tenth Meeting of the Third Board
October 14, 2022
of Directors in of Directors in 2022 (Announcement No.: Lin 2022-022)
2022 disclosed on October 17, 2022 for details.
The eleventh Please refer to the Announcement of Kweichow Moutai
meeting of the third on the Resolution of the Eleventh Meeting of the Third
November 08, 2022
Board of Directors Board of Directors in 2022 (Announcement No.: Lin
in 2022 2022-023) disclosed on November 9, 2022 for details.
The twelfth Please refer to the Announcement of Kweichow Moutai
meeting of the third on the Resolution of the Twelfth Meeting of the Third
November 28, 2022
Board of Directors Board of Directors in 2022 (Announcement No.: Lin
in 2022 2022-025) disclosed on November 29, 2022 for details.
The thirteenth Please refer to the Announcement of Kweichow Moutai
meeting of the third on the Resolution of the Thirteenth Meeting of the Third
December 14, 2022
Board of Directors Board of Directors in 2022 (Announcement No.: Lin
in 2022 2022-032) disclosed on December 15, 2022 for details.
The fourteenth The meeting deliberated and approved the Company
meeting of the third Organizational Setting Scheme of the Company.
December 31, 2022
Board of Directors
in 2022
6. Performance of duties by the directors
6.1The directors attend the board of directors and the general meeting of shareholders
Joining the
Participation in the Board of Directors shareholders’
general
meeting
director Whether an
Did not
surname and independent
Number of personally Number of
personal name director Number of Number of Number of
board Absence, attend the attendance at
in-person participation by commissioned
attendance number meeting shareholders’
attendance communication attendance
this year for twice meetings
in a row
Ding Xiongjun No 14 14 11 0 0 No 2
Li Jingren No 14 14 11 0 0 No 2
Jiang Guohua Yes 9 9 9 0 0 No 1
Guo Tianyong Yes 9 9 8 0 0 No 1
Sheng Leiming Yes 9 9 8 0 0 No 1
Liu Shizhong No 9 9 8 0 0 No 1
Xie Qinqing No 6 6 4 0 0 No 1
Lu Jinhai Yes 5 4 4 1 0 No 1
Xu Dingbo Yes 8 8 7 0 0 No 1
Zhang Yes 8 8 7 0 0 No 1
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ANNUAL REPORT 2022
Jingzhong
Fu Zhigang No 8 8 7 0 0 No 1
Failure to personally attend board meetings for two consecutive occasions
□Applicable √N/A
Number of board meetings held within the year 14
Including: the number of live meetings 1
Number of meetings held by communication mode 11
The number of meetings were held on site combined
2
with communication methods
6.2 Explanation of directors' objections to company-related matters
□Applicable √N/A
6.3 Other
□Applicable √N/A
7. Situation of a special committee under the Board of Directors
√Applicable □N/A
7.1 The members of a special committee under the Board of Directors
Special Committee category Member name
The Audit committee Jiang Guohua, Guo Tianyong, Sheng Leiming
The Nomination committee Sheng Leiming, Ding Xiongjun, Guo Tianyong
The Salary and Assessment
Guo Tianyong, Jiang Guohua, Liu Shizhong
Committee
Ding Xiongjun, Li Jingren, Jiang Guohua, Guo Tianyong, Sheng
The Strategy Committee
Leiming, Liu Shizhong, Xie Qinqing
The Risk Management
Li Jingren, Jiang Guohua, Sheng Leiming
Committee
7.2 The audit committee held four meetings during the reporting period
Date of convening content of meeting Important comments and suggestions
Deliberated and approved the Report on the
Performance of the Audit Committee under the Board of
Directors in 2021, the Annual Report of 2021 (Full Text
and Abstract), the Annual Report on Final Accounts in
The first annual 2021, the Annual Financial Budget Plan of 2022, the
meeting of the Report on the Evaluation of Internal Control of 2021,
March 29, 2022
Audit Committee in the Internal Control Audit Report of 2021, the Proposal
2022 on Hiring Financial Audit Institutions and Internal
Control Audit Institutions in 2022, the Proposal on
Daily Related Transactions and other proposals and
agreed to submit the relevant proposals to the Board of
Directors of the Company for deliberation as required.
The Second Deliberated and approved the Report of Kweichow
Meeting of the Moutai for the First Quarter of 2022 and agreed to
April 25, 2022
Audit Committee in submit the relevant proposals to the Board of Directors
2022 of the Company for deliberation as required.
Deliberated and approved the Semi-annual Report of
The Third Meeting
Kweichow Moutai in 2022 and agreed to submit the
August 01, 2022 of the Audit
relevant proposals to the Board of Directors of the
Committee in 2022
Company for deliberation as required.
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ANNUAL REPORT 2022
Deliberated and approved the Report of Kweichow
Moutai for the Second Quarter of 2022, the Proposal on
The Fourth Meeting Amending the Rules of Procedure of the Audit
October 13, 2022 of the Audit Committee under the Board of Directors and other
Committee in 2022 proposals and agreed to submit the relevant proposals to
the Board of Directors of the Company for deliberation
as required.
7.3 The nominating committee held three meeting during the reporting period
Date of convening content of meeting Important comments and suggestions
Deliberated and approved the Proposal on Nominating
The First Meeting
Candidates for Independent Directors and agreed to
May 26, 2022 of the Nomination
submit the relevant proposals to the Board of Directors
Committee in 2022
of the Company for deliberation as required.
Deliberated and approved the Proposal on Formulating
The Second
the Administrative Measures for the Selection and
Meeting of the
June 14, 2022 Appointment of the Members of the Management and
Nomination
agreed to submit the relevant proposals to the Board of
Committee in 2022
Directors of the Company for deliberation as required.
Deliberated and approved the Proposal on Amending
The Third Meeting the Rules of Procedure of the Nomination Committee
October 13, 2022 of the Nomination under the Board of Directors and agreed to submit the
Committee in 2022 relevant proposals to the Board of Directors of the
Company for deliberation as required.
7.4 The Remuneration and Appraisal Committee held three meetings during the reporting period
Date of convening content of meeting Important comments and suggestions
Deliberated and approved the Proposal on Adjusting
The First meeting of
the Allowance Standards for Independent Directors
the Remuneration and
May 26, 2022 of the Company and agreed to submit the relevant
Appraisal Committee
proposals to the Board of Directors of the Company
in 2022
for deliberation as required.
Deliberated and approved the Report of Kweichow
Moutai for the Second Quarter of 2022, the Proposal
The Second meeting of
on Amending the Rules of Procedure of the Audit
the Remuneration and
June 14, 2022 Committee under the Board of Directors and other
Appraisal Committee
proposals and agreed to submit the relevant
in 2022
proposals to the Board of Directors of the Company
for deliberation as required.
Deliberated and approved the Proposal on Amending
The Third meeting of
the Rules of Procedure of the Nomination Committee
the Remuneration and
October 13, 2022 under the Board of Directors and agreed to submit
Appraisal Committee
the relevant proposals to the Board of Directors of
in 2022
the Company for deliberation as required.
7.5 The Strategy Committee held seven meetings during the reporting period
Date of convening content of meeting Important comments and suggestions
Deliberated and approved the Proposal on Investing in
the Implementation of the First Phase Construction
The First meeting of
Project of the "14th Five-Year Plan" Maotai-flavor
January 25, 2022 the Strategy
Liquor Xishui Tongminba and agreed to submit the
Committee in 2022
relevant proposals to the Board of Directors of the
Company for deliberation as required.
The Second Deliberated and approved the Proposal on Investing in
May 26, 2022
meeting of the the Construction of 30 Liquor Storehouses in Zhonghua
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ANNUAL REPORT 2022
Strategy Committee Area, the Proposal on Adjusting the Investment in the
in 2022 Phase-I Moutai Liquor Technical Transformation
Project and Supporting Facilities in Zhonghua Area,
the Proposal on Adjusting the Investment in the
Technical Transformation Project of Maotai Liquor-
making Project in the Second Phase in Zhonghua Area
of the Technical Transformation and Expansion Project
of Moutai Liquor in the Twelfth Five-Year Plan, the
Proposal on Adjusting the Investment in the Technical
Renovation Project of Maotai yeast-making Workshop
with Annual Capacity of 4,000 tons and the Supporting
Facilities in Plot 7 and the Proposal on Adjusting the
Investment in Road Construction Project of Hengsi
Road (Connection Road between Tanmao Express and
Zhonghua Area) in Zhonghua Area and other proposals
and agreed to submit the relevant proposals to the Board
of Directors of the Company for deliberation as
required.
deliberated and approved the Proposal on Formulating
The Third meeting
the Development Plan of the 14th Five-Year Plan, and
June 14, 2022 of the Strategy
agreed to submit the relevant proposals to the Board of
Committee in 2022
Directors of the Company for deliberation as required.
Deliberated and approved the Proposal on Purchasing
the Right to Use the State-owned Construction Land in
The Fourth meeting
Plots C and D of Zhuwangtuo in Yantan Community,
September 08, 2022 of the Strategy
Maotai Town, and agreed to submit the relevant
Committee in 2022
proposals to the Board of Directors of the Company for
deliberation as required.
Deliberated and approved the Proposal on Amending
The Fifth meeting the Rules of Procedure of the Strategy Committee under
October 13, 2022 of the Strategy the Board of Directors and agreed to submit the relevant
Committee in 2022 proposals to the Board of Directors of the Company for
deliberation as required.
Deliberated and approved the Proposal on Investing in
the Construction of Raw and Auxiliary Materials
Storage Project for Moutai Liquor, the Proposal on
Purchasing the Right to Use State-owned Construction
The Sixth meeting
Land, the Proposal on Investing in the Maintenance and
November 27, 2022 of the Strategy
Renovation of Moutai International Hotel, the Proposal
Committee in 2022
on Revising the Articles of Association and other
proposals, and agreed to submit the relevant proposals
to the Board of Directors of the Company for
deliberation as required.
Deliberated and approved the Proposal on Investing in
The Seventh the Technical Transformation and Construction Project
meeting of the of Moutai Liquor during the 14th Five-Year Plan
December 13, 2022
Strategy Committee Period, and agreed to submit the relevant proposals to
in 2022 the Board of Directors of the Company for deliberation
as required.
7.6 The Risk Management Committee held three meetings during the reporting period
Date of convening content of meeting Important comments and suggestions
Deliberated and approved the 2021 Annual Report
The First meeting of
(full text and abstract), the Internal Control
March 29, 2022 the Risk Management
Evaluation Report of 2021 and the Proposal on
Committee in 2022
Daily Related Transactions and agreed to submit the
41 / 158
ANNUAL REPORT 2022
relevant proposals to the Board of Directors of the
Company for deliberation as required.
Deliberated and approved the Semi-annual Report in
The Second meeting of
2022 and agreed to submit the relevant proposals to
August 01, 2022 the Risk Management
the Board of Directors of the Company for
Committee in 2022
deliberation as required.
Deliberated and approved the Proposal on Amending
the Rules of Procedure of the Risk Management
The Third meeting of
Committee under the Board of Directors and agreed
October 13, 2022 the Risk Management
to submit the relevant proposals to the Board of
Committee in 2022
Directors of the Company for deliberation as
required.
7.7 Specific circumstances where objections exist
□Applicable √N/A
8. Explanation that the Board of Supervisors finds the risks of the Company
The Board of Supervisors has no objection to the supervision matters during the reporting period.
9. Report on the employees of the parent company and its main subsidiaries at the end of the period
9.1 Employee condition
Number of active employees in the parent company 30,113
Number of active employees in the main subsidiary 1,300
Total number of current employees 31,413
The number of retired employees of the parent company and
2,075
its main subsidiary that shall bear the expenses
Professional composition
Professional composition category Number of majors
operating personnel 26,157
salesman 1,143
artisan 698
financial staff 225
clerical staff 1,645
other personnel 1,545
Total 31,413
Educational background
Education background type Quantity (person)
graduate degree or above 395
bachelor degree 9,119
college degree 4,259
technical secondary school, high school and below 17,640
Total 31,413
9.2 Compensation policy
√Applicable □N/A
First, the senior managers implement the annual salary system, according to the relevant regulations of
SASAC and the Company; Second, the intermediate managers implement the quasi annual salary system,
according to the work nature, responsibilities, risk and performance, the performance pay system, and
adopt the total wage contract system according to different management needs, the technical content,
knowledge content, labor intensity and performance of different series and posts.
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ANNUAL REPORT 2022
9.3 Training plan
√Applicable □N/A
First, to improve the training quality. According to the principle of "grading and classification, overall
consideration, highlighting key points, focusing on the front line, emphasizing internal training
supplemented by outsourcing", the training plan has made more detailed, targeted and practical
adjustments, and the curriculum design has been optimized and the teaching contents have become richer.
At a practical level, the number of training people and per capita training hours have been increased, and
the quality of training has been continuously improved. Second, to be strict with training content. The
training strictly followed the regulations, such as "every employee should receive at least 42 hours of
professional training every year" and "if the training hours reach 24 or more, national laws and regulations,
company rules and systems and corporate culture should be included in the training course", and safety,
laws and regulations, culture and environmental protection were included in the general training; Third,
to highlight the featured contents. The training not only covers the professional knowledge, business skills
and quality improvement training related to production, such as liquor-making and yeast preparation, but
also other kinds of special trainings such as production technology, finance, comprehensive management,
equipment management, qualification certification and pre-job training combined with various functional
units.
9.4 Labor service outsourcing condition
√Applicable □N/A
The company accepts the labor service of Kweichow Moutai Liquor Factory (Group) Technology
Development Co., Ltd., the holding subsidiary of the parent company, for packaging some products of
Moutai-flavor series liquor. The transaction amount is calculated based on the actual packaging workload.
The annual transaction amount in 2022 was CNY 254 million.
10. Profit distribution or capital reserve conversion plan
10.1The formulation, implementation or adjustment of the cash dividend policies
√Applicable □N/A
The articles of Association of the company defines the principles, conditions, methods, cycles, cash
dividend ratio, profit distribution decision and adjustment procedures and mechanisms of profit
distribution.
According to the Annual Profit Distribution Plan for 2021 deliberated and approved at the annual general
meeting of shareholders in 2021 of the Company, on the basis of the total share capital amounting to
1,256,197,800 shares, the Company distributed cash dividends of CNY 216.75 (including tax) for each
ten shares to all the shareholders. For the profit distribution plan, opinions were proposed by the
independent directors of the Company. The plan was deliberated and approved by the Board of Directors
of the Company, and then submitted to the general meeting of shareholders of the Company for
deliberation and approval. The votes of the minority shareholders were counted separately when the
general meeting of shareholders deliberated the proposal. The profit distribution was completed in June
2022.
According to the Special Dividend Plan for Returning Shareholders deliberated and approved at the first
extraordinary general meeting of shareholders in 2022, the Company distributed the cash dividends of
CNY 219.1 (including tax) to all shareholders of the Company for every 10 shares based on the total share
capital amounting to 1,256,197,800 shares registered on the registration date for the implementation of
equity distribution. For the profit distribution plan, opinions were proposed by the independent directors
of the Company. The plan was deliberated and approved by the Board of Directors of the Company, and
then submitted to the general meeting of shareholders of the Company for deliberation and approval. The
votes of the minority shareholders were counted separately when the general meeting of shareholders
deliberated the proposal. The profit distribution was completed in December 2022.
During the reporting period, the company’s profit distribution shall comply with the provisions of the
Articles of Association of the company.
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ANNUAL REPORT 2022
10.2 Special explanation of the cash dividend policy
√Applicable □N/A
Whether it complies with the provisions of the articles of association or the
√Yes □No
resolution of the general meeting of shareholders
Whether the dividend standard and proportion are clear √Yes □No
Whether the relevant decision-making procedures and mechanisms are
√Yes □No
complete
Whether the independent directors perform their duties and play their due role √Yes □No
Whether minority shareholders have the opportunity to fully express their
opinions and appeals, and whether their legitimate rights and interests have √Yes □No
been fully protected
10.3 If the profits are made during the reporting period and the parent company’s distributable
profits available to shareholders are positive, but fails to put forward the cash profit distribution
plan, the company shall disclose in detail the reasons, the use and use plan of the undistributed
profits
√Applicable □N/A
Reasons for the fact that profits were made during the
reporting period and the profit available to Purpose and use plan of the undistributed
shareholders of the parent company was positive, but profit
the cash profit distribution plan was not proposed
10.4 Profit distribution and conversion of capital reserves into share capital during the reporting
period
√Applicable □N/A
Unit: CNY
Dividend payout for every 10 shares (CNY) (tax included) 435.85
Amount of cash dividends (tax included) 54,751,381,113.01
Net profit attributable to ordinary shareholders of listed companies
62,716,443,738.27
in the consolidated statement for the year of dividends distribution
Proportion of the net profit attributable to ordinary shareholders of
87.30
listed companies in the consolidated statement (%)
11. Situation and impact of the Company’s equity incentive plan, employee stock ownership plan or
other employee incentive measures
11.1 The relevant incentive matters have been disclosed in the interim announcement and there is
no progress or change in the subsequent implementation
□Applicable √N/A
11.2 Incentives if not disclosed or with subsequent progress in the interim announcement
Equity incentive
□Applicable √N/A
Other specifications
□Applicable √N/A
Employee stock ownership plan condition
□Applicable √N/A
Other incentives
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ANNUAL REPORT 2022
□Applicable √N/A
11.3 The equity incentive situation granted by the directors and senior managers during the
reporting period
□Applicable √N/A
11.4 The evaluation mechanism of senior management personnel and the establishment and
implementation of the incentive mechanism during the reporting period
√Applicable □N/A
In 2022, the Company's evaluation and incentive mechanism for senior executives were implemented in
accordance with the relevant provisions of the Administrative Measures for the Remuneration of the
Person in Charge of the Enterprises Supervised by State-owned Assets Supervision and Administration
Commission of Guizhou Province and the Measures for Assessing the Operating Performance of the
Persons in Charge of the Enterprises Supervised by State-owned Assets Supervision and Administration
Commission of Guizhou Province, and the Administrative Measures for the Performance Appraisal of the
Members of the Management and the Administrative Measures for the Renumeration of the Members of
the Management of the Company. The renumeration of senior executives was comprehensively
determined in combination with the relevant circulars of State-owned Assets Supervision and
Administration Commission of Guizhou Province and the annual operating status of the Company.
12. Construction and implementation of the internal control system during the reporting period
√Applicable □N/A
According to the basic specification of enterprise internal control and its supporting guidelines and other
internal control regulatory requirements, combined with the company’s internal control system and
evaluation method, on the basis of daily supervision and special supervision, the board of directors of the
company on December 31, 2022 (internal control evaluation report base date) internal control
effectiveness of the evaluation. See the Shanghai Stock Exchange website along with this report (website:
www.sse.com.cn) 2022 Internal Control Evaluation Report.
Description of the major defects existing in the internal control during the reporting period
□Applicable √N/A
13. Management and control of the subsidiaries during the reporting period
√Applicable □N/A.
The Company adhered to the principle of subsidiary management and control based on corporate
governance and centered on functional management and control for the management and control over its
branches and subsidiaries. In order to strengthen the Company's management over its subsidiaries and
standardize its deliberative bodies and procedures, the Company held system review meetings from time
to time, and pre-reviewed the Articles of Association and the rules of procedure of the "Three Boards" of
its subsidiaries in accordance with the principles of legality, applicability, timeliness and problem-oriented
improvement of management, and studied and discussed the overall framework, duties and powers and
specific scope of discussion of the Articles of Association and the rules of procedure of the "Three Boards".
By reviewing the articles of association and the rules of procedure of the "Three Boards” of subsidiaries,
the Company strengthened its restriction and supervision over the power operation of the subsidiary's
leading groups, improved work efficiency and work level, and promoted the legalization,
institutionalization and scientific decision-making of the deliberative institutions. In 2022, the Company
closely focused on the indicators of Moutai liquor and Moutai-flavor liquor series, and monitored the
implementation of strategies of its subsidiaries. The subsidiaries exceeded the annual strategic targets, the
market foundation was constantly consolidated, the high-quality development trend was obvious, and the
modernization construction was steadily advanced.
14. Relevant information description of the internal control audit report
√Applicable □N/A
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ANNUAL REPORT 2022
See the Shanghai Stock Exchange website along with this report (website: www.sse.com.cn) Part 21 was
disclosed in the Company’s 2022 Internal Control Audit Report.
Whether to disclose the internal control audit report: Yes
Type of internal control audit report opinion: standard unqualified opinion
15. Rectification of self-inspection problems in the special action of governance of listed companies
According to the requirements of the Announcement of China Securities Regulatory Commission on the
Special Action of Listed Companies and the Notice of Guizhou Securities Regulatory Bureau on Matters
Related to the Self-examination of The Governance of Listed Companies, the company conscientiously
carried out the special self-inspection of listed companies according to the special self-inspection list of
the governance of listed companies.
In view of the problems found in the self-inspection, the Company attached great importance to such
problems and seriously made rectifications. As of the end of the reporting period, there are still the
following problems, specifically: First, the controlling shareholders failed to fulfill the commitment to
implement the equity incentive plan; Second, a senior executive of the Company works part-time in the
controlling shareholder.
In the next step, the Company will continue to make rectifications as required, strengthen the
modernization construction of corporate governance capacity and level, continuously improve the
corporate governance system and mechanism, keep optimizing the internal control system, steadily
improve the effectiveness of corporate governance, and promote the high-quality development of the
Company.
16. Other
□Applicable √N/A
Section V Environment and Social Responsibility
1. Environmental information situation
Whether relevant mechanisms for environmental
Yes
protection are established
Environmental protection funds invested during
38,108.29
the reporting period (Unit: CNY 10,000)
1.1 Environmental information of the company and its major subsidiaries that are key emission
units announced by the environmental protection authorities
√Applicable □N/A
A. Emission information
√Applicable □N/A
(1) Main pollutants: waste water, waste gas, solid waste.
(2) Name of characteristic pollutants: COD, ammonia nitrogen, sulfur dioxide, nitrogen oxides, smoke
(dust).
(3) Emissions of pollutants from January to December 2022.
①Wastewater
There are five sewage treatment plants in the Company, and each sewage treatment plant is equipped with
a discharge outlet. These plants are distributed in the old factory area of the company headquarters,
Zhonghua Area, and Dadi Area, Xinzhai Area and Yuping Area of Heyixing Liquor Branch. For Yuping
Area, sewage is pretreated and then discharged to Erhe Sewage Treatment Plant for up-to-standard
discharge, and the sewage in other areas are directly discharged after wastewater treatment reaches the
standard.
Name of sewage treatment plants COD Ammonia nitrogen
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ANNUAL REPORT 2022
Pollutant emission
Average
Average Total Total standards implemented
emission
emission emissi emissi
concentr
concentrat ons ons
ation
ion (mg/l) (ton) (ton)
(mg/l)
7000t/d Sewage
Company 18.385 13.785 0.236 0.177 Emission Standards for
treatment plant
headquart Pollutants in Fermented
4000t/d Sewage
ers 30.148 7.057 0.548 0.128 Alcohol and White
treatment plant
Liquor Industry
Xinzhai Sewage
32.055 14.258 0.672 0.254 (GB27631-2011) Table 3
Treatment Plant
Direct Emission
Dadi Sewage
29.99 10.567 0.199 0.06 Standards
Heyixing Treatment Plant
Liquor Discharge standard of
Branch pollutants for municipal
Erhe Sewage
22.864 9.451 0.097 0.04 wastewater treatment
Treatment Plant
plant(GB27631-2002)
Grade I A standard
②Exhaust gas
The company’s gas boilers are located in the old factory and Zhonghua area of the company’s
headquarters, and in the Dadi area, Xinzhai area and Erhe area of Heyixing Liquor Branch. The
company’s gas boilers use natural gas as the energy source, with direct emissions of boiler exhaust.
Emission of gas boilers
Sulfur dioxide Nitrogen oxides Smoke (dust)
Average Standa
Total Average Average
emission Total Total rds
Region emiss emission emission
concentr emissions emission imple
ions concentratio concentration
ation (ton) s (ton) mented
3) (ton) n (mg/m3) (mg/m3)
(mg/m
Company
Emissi
headquarters
4.00 3.05 73.17 53.89 4.16 3.07 on
(old area and
Standa
Zhonghua Area)
rds for
Xinzha Boiler
3.00 0.73 39.45 12.00 10.15 2.61
i Area Air
Heyixi Polluta
ng Dadi nts
3.00 0.21 46.39 4.32 9.43 0.75
Liquor Area (GB13
Branch 271-
Yuping 2014)
3.00 0.37 50.39 7.35 10.72 1.28
Area Table 2
③Solid waste disposal
The company’s solid waste lees, waste cellar sludge and waste yeast are handed over to Kweichow Moutai
Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd. and other units for
comprehensive utilization and disposal, while domestic waste is entrusted to third-party units for
transportation to waste incineration power plants for incineration.
(4) Total approved emissions
According to the Administrative Measures for Pollutant Discharge Permit (For Trial Implementation)
issued by the Ministry of Environmental Protection and related requirements, the pollutant discharge
permit has been applied for and obtained.
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ANNUAL REPORT 2022
The total approved emissions for the reporting period are: COD 60.1 tons; ammonia nitrogen 6.01 tons;
nitrogen oxides 203.87 tons; sulfur dioxide and (powder) dust in accordance with Table 2 of the Emission
Standards for Boiler Air Pollutants (GB13271-2014).
B. Construction and operation of pollution prevention facilities
√Applicable □N/A
Wastewater pollutant control facilities are mainly sewage treatment plants and other equipment facilities,
whose construction has been completed and in normal operation; the company began to implement the
boiler “coal to gas” project in 2011, and completed the comprehensive transformation in 2014, eliminating
the coal-fired boilers and building gas boilers, which are now in normal operation.
C. Environmental Impact Assessment of Construction Projects and Other Administrative Permits
for Environmental Protection
√Applicable □N/A
(1) The company carried out environmental impact assessment for new, reformed and expanded projects
in accordance with the law and obtained 6 approvals for administrative permits for environmental impact
assessment in 2022.
(2) Environmental protection inspection and acceptance of completed projects have been carried out in
accordance with the law and 3 online recordings have been completed.
D. Emergency response plan for environmental emergencies
√Applicable □N/A
According to the Management Measures for the Filing of Emergency Response Plans for Enterprises and
Institutions (for Trial Implementation) (Huanfa [2015] No. 4) and other relevant documents, the
Company’s plants (Old Plant Area/Zhonghua area), and Heyixing Liquor Branch (Dadi Area, Xinzhai
Area and Erhe Area) have prepared emergency environmental response plans and obtained filing forms
from environmental protection authorities.
E. Self-monitoring environmental program
√Applicable □N/A
According to the Measures for Environmental Information Disclosure by Enterprises and Institutions,
Self-monitoring Technical Guide for Emission Units Liquor and Beverage Manufacturing, Self-
monitoring Technical Guide for Emission Units Thermal Power Generation and Boilers and Self-
monitoring Technical Guide for Emission Units General Rules and other documents, in order to grasp the
status of pollutant emissions from our enterprise and its impact on the surrounding environment quality,
fulfill our legal obligations and social responsibilities, we have developed a self-monitoring program to
ensure that our self-monitoring meets the requirements of environmental management.
F. Administrative penalties for environmental issues during the reporting period
□Applicable √N/A
G. Other environmental information that should be made public
□Applicable √N/A
1.2 Environmental information of the company other than key emission units
□Applicable √N/A
1.3 Relevant information conducive to ecological protection, pollution prevention and control, and
environmental responsibility fulfillment
√Applicable □N/A
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ANNUAL REPORT 2022
The Company adhered to the development path of ecological priority, green, low carbon and high quality,
scientifically planned the ecological environment construction, established an efficient environmental
management operation system, monitored and analyzed the changes of key performance indicators by
means of benchmarking and correlation analysis, and optimized and adjusted measures in time to ensure
the continuous improvement of the ecological environment quality of Moutai brewing.
First, constructed a life community of “mountain, water, forest, soil, river and microorganism” life
community. In order to effectively maintain the stable balance of the ecosystem in Maotai producing areas,
the Company has gradually promoted five special protection projects of "increasing high-quality water
resources, improving air quality, conservation of water and soil, protecting microorganism and
maintaining ecosystem balance". Through measures such as ecological bearing research, ecological space
optimization, soil and water gas system management, ecological restoration of vegetation and ecological
compensation, the water quality of the Maotai section along Chishui River was guaranteed to be stable at
Class II surface water, the water ecological index was good, the excellent and good rate of air quality was
over 98%, the vegetation coverage rate within the plant was over 27%, the diversity of native plants
exceeded 230 varieties, and the ecological development index of the production area remained stable.
Second, comprehensively improved the ecological design standards of newly-built parks. The Company
adhered to the design concept of "high-quality, green, efficient and open". It was planned that the newly-
built park would realize 100% utilization rate of solid production waste, over 30% reuse rate of reclaimed
water, implement Class IV standard of surface water for ecological water recession, effectively monitor
and warn environmental data through the whole process of carbon accounting, low-disturbance
development and construction, wastewater resource utilization, closed double-cycle water cooling,
intelligent environmental monitoring and other measures, to create a demonstration park of Moutai-flavor
liquor industry cluster in all directions and multi-dimensions, and realize the goal of "the best
comprehensive benefit, the most beautiful ecological environment and the latest intelligent management".
Third, built a green treatment technology system for wastewater from Moutai-flavor liquor brewing. By
summarizing the common problems in wastewater treatment technology, equipment, management and
engineering, the domestic first-class expert team provided technical support to formulate a series of
technical standards for wastewater from Maotai-flavor liquor brewing. The Company standardized the
design of Moutai-flavor liquor wastewater treatment, achieved the goal of convenient management,
intelligent operation, high efficiency and low consumption, green and safe sewage system with stable
water quality, supported the ecological protection of water environment in the river basin, realized
sustainable green development, continuously reduced the pollutant discharge per unit product, and
achieved stable pollutant discharging compliance.
Fourth, established a small-scale ecological bearing capacity evaluation model for river basin.The
Company carried out investigation and research on the present situation and evolution trend of ecological
environment elements in Maotai region, systematically evaluated the key constraints of ecological
environment in Maotai region, built a small-scale (town-level) ecological carrying capacity model based
on the perspective of resources-environment-ecology, broke through the technical bottleneck of ecological
carrying capacity research in small watershed scale, and put forward policy suggestions such as the setting
of buffer zone and construction of low-emission zone , which provided technical support for ecological
environment planning and management. The water quality stability, excellent and good rate of air quality
and resource utilization rate of water resources continued to increase year by year.
1.4 Measures taken to reduce its carbon emissions during the reporting period and their effects
Whether any carbon reduction measure
Yes
is taken
Carbon dioxide equivalents of reduced
32,930.60
emission (unit: ton)
Types of carbon reduction measures In 2022, the Company has completed the procurement of 44
(such as using clean energy to for power million kwh green power certificate, with a carbon
generation, using carbon reduction reduction of 32,930.60 tons, and completed the procurement
technology in the production process, of green electricity during the period from 2023 to 2025.
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ANNUAL REPORT 2022
developing and producing new products Since 2023, the coverage of green electricity consumption
that support carbon reduction, etc.) of the Company will reach 100%.
Specific explanation
□Applicable √N/A
2. Social Responsibility Work
2.1 Whether there is any social responsibility report, sustainable development report or ESG report
disclosed separately
√Applicable □N/A
For details, please refer to our “Social Responsibility and ESG Report 2022” disclosed on the website of
Shanghai Stock Exchange (URL: www.sse.com.cn) at the same time as this report.
2.2 Specific information on social responsibilities
□Applicable √N/A
Specific explanation
□Applicable √N/A
3. Specific work on consolidating and expanding the progress in poverty alleviation and rural
revitalization
√Applicable □N/A
Item of poverty alleviation and rural revitalization Quantity/Contents
Total input (Unit: CNY 10,000) 6,396.05
Including: funds (Unit: CNY 10,000) 1,384.56
Amount equivalent to goods and
5,011.49
materials (Unit: CNY 10,000)
Number of beneficiaries (person) 37,483
Forms of assistance (such as poverty alleviation Poverty alleviation through industries and
through industries, employment, education, etc.) education
Specific description
□Applicable √N/A
Section VI Significant Events
1. Undertakings of Commitment Fulfillment
1.1 Undertakings of the Company’s actual controller, shareholders, related parties and acquirers,
as well as the Company and other commitment makers fulfilled in the reporting period or ongoing
by the end of this reporting period
√Applicable □N/A
Explai
If State the n the
Commit If there fulfille specific next
Committ Commitme Commitme
ment is a d reason in plan in
Type ed nt nt time and
Backgro fulfillme timely case of case
Parties Content period
und nt period and failure to of
strictly fulfill failure
to
fulfill
Commit Other China Equity Advance Yes No The
ments Kweicho incentive the higher
related to w commitme developme authoriti
sharehol Moutai nt: After nt of equity es have
50 / 158
ANNUAL REPORT 2022
ding Distiller the incentives not
reform y completion for the issued
(Group) of the company’s relevant
Co., Ltd. equity manageme guidance
share nt and core and
reform, the technical specific
company team by the measures
will end of .
develop the December
equity 2017.
incentive
scheme for
the
manageme
nt and core
technical
team
according
to the
relevant
national
policies
and
regulations.
1.2 If there is a profit forecast for the company’s assets or projects, and the reporting period is still
in the profit forecast period, the company provides an explanation on whether the assets or projects
meet the original profit forecast and its reasons
□Have met □Have not met √N/A
1.3 The completion of performance commitments and their impact on the goodwill impairment test
□Applicable √N/A
2. Non-operating appropriation of funds by controlling shareholders and other related parties
during the reporting period
□Applicable √N/A
3. Non-compliance with guarantees
□Applicable √N/A
4. Explanation of the board of directors regarding the “Non-standard audit opinion” by the CPA
firm
□Applicable √N/A
5. Analysis of the reasons for and effects of changes in accounting policies, accounting estimates or
corrections of significant accounting errors by the Company
5.1 Analysis of the reasons for and effects of changes in accounting policies and accounting estimates
□Applicable √N/A
5.2 Analysis of the reasons for and effects of corrections of significant accounting errors by the
Company
□Applicable √N/A
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ANNUAL REPORT 2022
5.3 Communication with the previous CPA firm
□Applicable √N/A
6. Engagement and disengagement of CPA firms
Unit: CNY 10,000
Current CPA
Name of the domestic CPA firm Baker Tilly China CPAs
Remuneration of the domestic CPA firm 120
Years of audit by the domestic CPA firm 5
Name Remuneration
Internal control audit CPA firm Baker Tilly China CPAs 41
Note on the engagement and disengagement of CPA firms
□Applicable √N/A
Note on reappointing the CPA firm during the audit
□Applicable √N/A
7. Cases facing the risk of delisting
7.1 Reasons of delisting risk warnings
□Applicable √N/A
7.2 Measures to be taken by the Company in response
□Applicable √N/A
7.3 Circumstances and reasons for facing termination of listing
□Applicable √N/A
8. Matters related to bankruptcy restructuring
□Applicable √N/A
9. Significant litigation and arbitration matters
□The company has significant litigation and arbitration matters during the year
√ The company has no significant litigation and arbitration matters during the year
10. The listed company and its directors, supervisors, senior management, controlling shareholders
and actual controllers are suspected of violating the law, being punished and their rectification
□Applicable √N/A
11. Description of the integrity of the Company and its controlling shareholders and actual
controllers during the reporting period
√Applicable □N/A
The integrity of the Company and its controlling shareholders during the reporting period is good.
12. Significant related party transactions
12.1 Related party transactions related to daily operations
A. Matters that have been disclosed in the interim announcement with no progress or changes in
subsequent implementation
□Applicable √N/A
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ANNUAL REPORT 2022
B. Matters that have been disclosed in the interim announcement with progress or changes in
subsequent implementation
□Applicable √N/A
C. Matters not disclosed in the interim announcement
√Applicable □N/A
(1) Related party transactions with the same related party as those considered and approved by the Board
of Directors
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ANNUAL REPORT 2022
Unit: CNY
Reasons for
large
Proportion of differences
Pricing
Content of Connected the amount of Settlement of between
Principles for Amount of Related Market
Name of related parties Relationship Type of Related party transactions Related party transaction similar Related party transaction
Related party party transactions Price
transactions price transactions transactions prices and
transactions
(%) market
reference
prices
China Kweichow Moutai Distillery Comprehensive
(Group) Co., Ltd.
Parent company Acceptance of labor services
Service Fee
Agreed Price 194,415.10 100.00 cash payment
Refer to
Majority-owned independent
Kweichow Moutai Distillery transportation
(Group) Logistics Co., Ltd.
subsidiary of the parent Acceptance of labor services
services
third-party 176,888,990.77 62.54 cash payment
company transaction
prices
The same
purchase price
Chinese-Foreign Venture Dragon Majority-owned as the supply
And Lion Cap Co., Ltd Zhuhai subsidiary of the parent Purchase of goods Purchase of goods price of other 261,924,856.26 8.04 cash payment
S.E.Z company unrelated
suppliers of
the company
The same
purchase price
as the supply
Guizhou Renhuai Shenren
Packaging and Printing Co., Ltd.
Other Purchase of goods Purchase of goods price of other 186,087,312.72 5.72 cash payment
unrelated
suppliers of
the company
Kweichow Moutai Distillery
Wholly-owned
(Group) Circular Economy
Industrial Investment Development
subsidiary of the parent Purchase of goods Purchase of goods Agreed Price 130,101,300.00 100.00 cash payment
company
Co., Ltd.
The same
purchase price
as the supply
Gui Zhou New Huaxi Glass Co.,
Ltd
Other Purchase of goods Purchase of goods price of other 102,311,289.42 3.14 cash payment
unrelated
suppliers of
the company
The same
purchase price
as the supply
Guizhou Fuming Packaging Co. Ltd Other Purchase of goods Purchase of goods price of other 88,324,091.21 2.71 cash payment
unrelated
suppliers of
the company
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ANNUAL REPORT 2022
The same
purchase price
as the supply
Kweichow Moutai Logistics Park
Grain Storage Co., Ltd.
Other Purchase of goods Purchase of goods price of other 63,728,794.52 2.91 cash payment
unrelated
suppliers of
the company
Wholly-owned
China Kweichow Moutai Distillery
(Group) Cultural Tourism Co., Ltd.
subsidiary of the parent Purchase of goods Purchase of goods Agreed Price 159,019.22 100.00 cash payment
company
The same
purchase price
as the supply
Guizhou Maotai Ecological
Agriculture Sales Co., Ltd.
Other Purchase of goods Purchase of goods price of other 74,203.56 0.19 cash payment
unrelated
suppliers of
the company
Other utility costs such as water, Receiving water
Guizhou Xijiu Co., Ltd. Other
electricity and gas (purchase) services
Agreed Price 5,064,200.00 99.05 cash payment
Kweichow Moutai Distillery
Receiving water
(Group) Guiyang High-tech Real Other utility costs such as water,
Estate Investment Development
Other
electricity and gas (purchase)
and power Agreed Price 48,625.95 0.95 cash payment
services
Co., Ltd.
Wholly-owned
Kweichow Moutai Liquorry
(Group) Health Liquor Co., Ltd.
subsidiary of the parent Acceptance of labor services Labor fee Agreed Price 229,128,409.82 24.26 cash payment
company
Wholly-owned
Hotel Management Company of
Moutai Group
subsidiary of the parent Acceptance of labor services Labor fee Agreed Price 67,315,342.78 7.13 cash payment
company
Kweichow Moutai Logistics Park
Grain Storage Co., Ltd.
Other Acceptance of labor services Labor fee Agreed Price 64,402,800.47 6.82 cash payment
Kweichow Moutai Distillery Wholly-owned
(Group) Technology Development subsidiary of the parent Acceptance of labor services Labor fee Agreed Price 25,273,693.09 2.72 cash payment
Co., Ltd. company
Majority-owned
Kweichow Moutai Distillery
(Group) Logistics Co., Ltd.
subsidiary of the parent Acceptance of labor services Labor fee Agreed Price 5,224,867.44 0.55 cash payment
company
Kweichow Moutai (group)
International Travel Service Co., Other Acceptance of labor services Labor fee Agreed Price 2,684,355.24 0.28 cash payment
Ltd.
Kweichow Moutai Distillery
Wholly-owned
(Group) Circular Economy
Industrial Investment Development
subsidiary of the parent Acceptance of labor services Labor fee Agreed Price 1,939,970.05 0.21 cash payment
company
Co., Ltd.
Kweichow Moutai Distillery
(Group) Guiyang High-tech Real
Estate Investment Development
Other Acceptance of labor services Labor fee Agreed Price 25,661.62 0.0027 cash payment
Co., Ltd.
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ANNUAL REPORT 2022
China Kweichow Moutai Distillery
Parent company Rent in and rent out Rental fee Agreed Price 26,062,215.21 34.32 cash payment
(Group) Co., Ltd.
Kweichow Moutai Distillery
Wholly-owned
(Group) Circular Economy
subsidiary of the parent Rent in and rent out Rental fee Agreed Price 3,582,654.81 4.72 cash payment
Industrial Investment Development
company
Co., Ltd.
Kweichow Moutai Distillery
(Group) Guiyang High-tech Real
Other Rent in and rent out Rental fee Agreed Price 1,503,734.86 1.98 cash payment
Estate Investment Development
Co., Ltd.
Majority-owned
Kweichow Zunyi Moutai Airport
subsidiary of the parent Rent in and rent out Rental fee Agreed Price 337,599.08 0.44 cash payment
Co., Ltd.
company
Wholly-owned
Beijing Moutai Trading Co., Ltd. subsidiary of the parent Rent in and rent out Rental fee Agreed Price 4,678.90 0.0062 cash payment
company
The sale
price is the
same as the
Wholly-owned purchase price
Kweichow Moutai Group
subsidiary of the parent Sales of goods Sales of goods of the 5,241,503,023.90 4.23 cash payment
Marketing Co., Ltd.
company company’s
other
unaffiliated
dealers
The sale
price is the
same as the
Wholly-owned purchase price
Hotel Management Company of
subsidiary of the parent Sales of goods Sales of goods of the 23,529,334.51 0.02 cash payment
Moutai Group
company company’s
other
unaffiliated
dealers
The sale
price is the
same as the
Wholly-owned purchase price
Shanghai Kweichow Moutai
subsidiary of the parent Sales of goods Sales of goods of the 6,435,461.94 0.005 cash payment
Industrial Co., Ltd.
company company’s
other
unaffiliated
dealers
The sale
price is the
same as the
Wholly-owned purchase price
China Kweichow Moutai Distillery
subsidiary of the parent Sales of goods Sales of goods of the 2,999,915.04 0.0024 cash payment
(Group) Cultural Tourism Co., Ltd.
company company’s
other
unaffiliated
dealers
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ANNUAL REPORT 2022
The sale
price is the
same as the
Wholly-owned purchase price
Beijing Moutai Trading Co., Ltd. subsidiary of the parent Sales of goods Sales of goods of the 1,568,516.81 0.001 cash payment
company company’s
other
unaffiliated
dealers
The sale
price is the
same as the
Kweichow Zunyi Moutai Airport purchase price
Ecological Park Investment and Other Sales of goods Sales of goods of the 466,152.22 0.00038 cash payment
Development Co., Ltd. company’s
other
unaffiliated
dealers
The sale
price is the
same as the
purchase price
China Kweichow Moutai Distillery
Parent company Sales of goods Sales of goods of the 53,978.23 0.00004 cash payment
(Group) Co., Ltd.
company’s
other
unaffiliated
dealers
Guizhou Renhuai Shenren
Other Sales of goods Labor fee Agreed Price 571,925.36 63.67 cash payment
Packaging and Printing Co., Ltd.
Wholly-owned
Kweichow Moutai Liquorry
subsidiary of the parent Providing services Labor fee Agreed Price 239,611.71 26.67 cash payment
(Group) Health Liquor Co., Ltd.
company
Kweichow Moutai Distillery Wholly-owned
(Group) Technology Development subsidiary of the parent Providing services Labor fee Agreed Price 86,782.75 9.66 cash payment
Co., Ltd. company
Wholly-owned
Kweichow Moutai Group
subsidiary of the parent Rent in and rent out Rental fee Agreed Price 495,146.47 50.32 cash payment
Marketing Co., Ltd.
company
China Kweichow Moutai Distillery
Parent company Rent in and rent out Rental fee Agreed Price 488,903.16 49.68 cash payment
(Group) Co., Ltd.
Total 6,720,831,834.20
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ANNUAL REPORT 2022
(2) Related transactions with the same related party deliberated and approved by the general meeting of
shareholders
The Company used the registered trademark of its parent company, China Kweichow Moutai Distillery
(Group) Co., Ltd., and the expenses for the right to use trademarks incurred during the reporting period
amounted to CNY 1,639.84 million.
(3) Related transactions with other related parties
A. The Company purchased Ankang comprehensive insurance for female employees from Huagui Life
Insurance Co., Ltd., and the amount incurred in the current period amounted to CNY 499.6 thousand.
B. The ending balance of the Company's deposit in Bank of Guizhou amounted to CNY 20,851.24 million
(including 2,000,000,000 of certificates of deposit), and the interest income in the current period was CNY
632.53 million, and the investment income was CNY 63.84 million. Kweichow Moutai Group Finance
Co., Ltd., a controlling subsidiary of the Company, purchased the bonds issued by Bank of Guizhou Co.,
Ltd. from the open market, with a cost of CNY 300 million and recognized interest income of CNY 3.69
million. As of the end of the period, the balance of provision for impairment of such creditor's right
investments amounted to CNY 170,600, the balance of accrued interest was CNY 425,300, and the book
value was CNY 300.25 million.
12.2 Affiliated transactions arising from the acquisition or sale of assets or equity
A. Matters disclosed in the interim announcement but without progress or change in subsequent
implementation
□Applicable √N/A
B. Matters disclosed in the interim announcement but without progress or change in subsequent
implementation
□Applicable √N/A
C. Matters not disclosed in the interim announcement
□Applicable √N/A
D. If performance agreement is involved, the realization of performance during the reporting
period shall be disclosed
□Applicable √N/A
12.3 Important related party transactions jointly invested
A. Matters disclosed in the temporary announcement without subsequent progress or change
□Applicable √N/A
B. Matters disclosed in the temporary announcement with subsequent progress or change
□Applicable √N/A
C. Matters not disclosed in the temporary announcement
□Applicable √N/A
12.4 Related debt transactions
A. Matters disclosed in the temporary announcement without subsequent progress or change
□Applicable √N/A
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ANNUAL REPORT 2022
B. Matters disclosed in the temporary announcement with subsequent progress or change
□Applicable √N/A
C. Matters not disclosed in the temporary announcement
□Applicable √N/A
12.5 Financial business between the Company and the financial company with which the Company
is associated, the financial company in which the Company holds a majority of shares and the
related parties
√Applicable □N/A
A. Deposit business
√Applicable □N/A
59 / 158
ANNUAL REPORT 2022
Unit: CNY
Ran
Current period
Maximu ge
m of Total
Related party Related party relationship Opening balance Total deposit in Closing balance
deposit depo withdrawal in
the current
per day sit the current
period
rate period
China Kweichow Moutai Distillery (Group) Co., Ltd. Parent company 2,495,925,365.33 83,368,340,575.05 82,529,984,267.10 3,334,281,673.28
Kweichow Moutai Distillery (Group) Technology Wholly-owned subsidiary of
1,717,927,696.48 4,270,945,679.63 4,333,865,663.09 1,655,007,713.02
Development Co., Ltd. the parent company
Wholly-owned subsidiary of
Kweichow Moutai Group Marketing Co., Ltd. 4,125,683,019.60 9,732,581,050.43 9,508,682,469.61 4,349,581,600.42
the parent company
Kweichow Moutai Liquorry (Group) Health Liquor
Other 703,943,274.58 2,762,454,769.00 2,833,323,219.07 633,074,824.51
Sales Co., Ltd.
Majority-owned subsidiary of
Kweichow Zunyi Moutai Airport Co., Ltd. 62,588,751.47 789,575,665.48 565,566,933.09 286,597,483.86
the parent company
Kweichow Moutai Liquorry (Group) Health Liquor Wholly-owned subsidiary of
111,809,289.12 3,522,004,617.60 3,476,801,126.50 157,012,780.22
Co., Ltd. the parent company
Guizhou Renhuai Shenren Packaging and Printing Co.,
Other 210,256,768.22 458,814,577.26 517,009,374.30 152,061,971.18
Ltd.
Kweichow Moutaichun Marketing Company Other 611,840,193.66 465,715,862.82 869,175,433.47 208,380,623.01
ChangLi Moutai Liquor Trade Co., Ltd. Other 285,759,553.99 663,827,644.99 715,873,205.78 233,713,993.20
Kweichow Moutai Distillery (Group) Circular Wholly-owned subsidiary of
129,905,237.28 555,957,010.49 441,103,326.16 244,758,921.61
Economy Industrial Investment Development Co., Ltd. the parent company
Guizhou Zunpeng Liquor Industry Co., Ltd. Other 118,316,553.92 1,207,283,208.16 1,030,804,163.07 294,795,599.01
China Kweichow Moutai Distillery (Group) Cultural Wholly-owned subsidiary of
218,557,849.69 1,389,409,236.39 1,307,065,113.46 300,901,972.62
Tourism Co., Ltd. the parent company
Chinese-Foreign Venture Dragon And Lion Cap Co., Majority-owned subsidiary of
59,468,124.71 323,044,597.27 333,678,950.62 48,833,771.36
Ltd Zhuhai S.E.Z the parent company
Kweichow Moutai Distillery (Group) Logistics Co., Majority-owned subsidiary of
53,805,881.56 1,038,074,184.71 709,646,437.29 382,233,628.98
Ltd. the parent company
Kweichow Moutai Distillery (Group) Sanya Investment
Other 17,310,976.60 711,348,104.28 639,572,912.92 89,086,167.96
Co., Ltd.
Shanghai Moutai Trading Co., Ltd. Other 46,676,247.54 372,965,400.11 367,577,052.96 52,064,594.69
Wholly-owned subsidiary of
Beijing Moutai Trading Co., Ltd. 32,451,635.50 593,110,907.26 511,709,113.18 113,853,429.58
the parent company
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ANNUAL REPORT 2022
Guizhou Maotai Ecological Agriculture Sales Co., Ltd. Other 36,003,808.59 187,175,625.56 203,480,958.73 19,698,475.42
Kweichow Moutai Logistics Park Grain Storage Co.,
Other 16,156,106.85 223,246,937.54 232,062,487.30 7,340,557.09
Ltd.
Kweichow Moutai Distillery (Group) Guiding Jingqi
Other 52,942,266.44 317,622,033.14 309,647,700.77 60,916,598.81
Glasswork Co., Ltd.
Health Industry Co., Ltd. of Kweichow Moutai Group. Other 39,369,350.32 315,138,664.26 335,382,804.52 19,125,210.06
Guizhou Fuming Packaging Co. Ltd Other 11,770,678.41 127,121,465.12 127,497,500.95 11,394,642.58
Guizhou Jiuyuan Property Co., Ltd. Other 28,325,260.27 62,465,176.66 61,037,288.50 29,753,148.43
Kweichow Moutai (group) International Travel Service
Other 25,842,341.72 10,791,809.53 10,539,422.00 26,094,729.25
Co., Ltd.
Kweichow Moutai Distillery (Group) Real Estate Wholly-owned subsidiary of
18,266,371.84 122,947,011.89 117,346,298.72 23,867,085.01
Investment Development Co., Ltd. the parent company
Wholly-owned subsidiary of
Shanghai Kweichow Moutai Industrial Co., Ltd. 15,967,961.65 135,156,567.26 107,544,802.19 43,579,726.72
the parent company
Kweichow Moutai Distillery Group Changli Liquorry Majority-owned subsidiary of
9,477,982.97 277,558,935.65 280,162,719.10 6,874,199.52
Co., Ltd. the parent company
Guizhou Xijiu Co., Ltd. Other 573,990,484.69 3,490,212,506.80 4,064,202,991.49
Wholly-owned subsidiary of
Hotel Management Company of Moutai Group 36,722,376.06 81,179,038.56 66,905,471.18 50,995,943.44
the parent company
Gui Zhou New Huaxi Glass Co., Ltd Other 679,580.38 175,542,696.34 151,764,353.49 24,457,923.23
Tianchao Shangpin Liquor Industry (Guizhou) Co.，
Other 14,880,578.48 36,547.92 14,917,126.40
Ltd.
Kweichow Moutai Distillery (Group) Guiyang Wholly-owned subsidiary of
1,947,197.79 4,230,619.02 5,083,295.96 1,094,520.85
Business Co., Ltd. the parent company
Kweichow Moutai Distillery (Group) Guiyang High-
Other 621,579.71 2,200.66 623,780.37
tech Real Estate Investment Development Co., Ltd.
Kweichow Moutai Distillery (Group) Lvsheng Organic
Other 179,194.11 1,648,440.79 1,115,847.59 711,787.31
Fertilizer Co., Ltd.
Kweichow Moutai (Group) Ecological Agriculture Wholly-owned subsidiary of
2,110,181.09 12,115,847.70 14,017,516.53 208,512.26
Industry Development Co., Ltd. the parent company
Guizhou Xijiu Sales Co., Ltd. Other 9,734,392,686.40 11,179,298,046.78 20,913,690,733.18
Wholly-owned subsidiary of
Moutai Financial Leasing Co., Ltd 5,268.68 37.95 18.72 5,287.91
the parent company
Majority-owned subsidiary of
Moutai (Guizhou) Investment Management Co., Ltd. 4,018.30 28.95 14.28 4,032.97
the parent company
61 / 158
ANNUAL REPORT 2022
Kweichow Zunyi Moutai Airport Ecological Park
Other 3,502.12 25.24 12.45 3,514.91
Investment and Development Co., Ltd.
Majority-owned subsidiary of
Maotai (Guizhou) Investment Fund (L.P.) 843.33 6.08 3 846.41
the parent company
Guizhou Hengdao Forestry and Agriculture
Other 27.87 191,250.31 191,250.23 27.95
Technology Development Co., Ltd.
Guizhou Baijin Liquor Sales Co., Ltd. Other 63,730,740.85 64,445,570.08 128,176,310.93
Guizhou Baijin Liquor Co., Ltd. Other 48,855,234.24 42,922,683.86 91,777,918.10
Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. Other 29,103,604.91 236,404,391.44 253,837,267.17 11,670,729.18
Kweichow Moutai Distillery (Group) Hongyingzi Majority-owned subsidiary of
33,511,214.70 33,506,107.10 5,107.60
Agricultural Technology Development Co., Ltd. the parent company
Total 21,763,575,647.32 129,326,418,470.72 138,215,950,762.62 12,874,043,355.42
Note: The above deposit interest rate ranges from 0.35% to 1.50%.
62 / 158
ANNUAL REPORT 2022
Interest paid to related parties
Unit: CNY
This reporting
Related party
period
Guizhou Xijiu Sales Co., Ltd. 28,811,523.39
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. 27,445,198.75
Kweichow Moutai Group Marketing Co., Ltd. 17,622,560.74
China Kweichow Moutai Distillery (Group) Co., Ltd. 9,331,364.94
Kweichow Moutaichun Marketing Company 3,651,119.60
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. 2,538,298.58
ChangLi Moutai Liquor Trade Co., Ltd. 2,364,961.46
Guizhou Zunpeng Liquor Industry Co., Ltd. 2,534,657.65
Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. 1,601,934.07
Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment
1,825,616.62
Development Co., Ltd.
Kweichow Zunyi Moutai Airport Co., Ltd. 2,331,439.32
Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. 602,628.76
Guizhou Baijin Liquor Sales Co., Ltd. 262,285.04
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. 712,081.81
Guizhou Jiuyuan Property Co., Ltd. 451,888.16
Health Industry Co., Ltd. of Kweichow Moutai Group. 228,228.42
Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z 338,111.19
Guizhou Maotai Ecological Agriculture Sales Co., Ltd. 255,008.11
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. 815,661.10
Shanghai Moutai Trading Co., Ltd. 236,597.15
Beijing Moutai Trading Co., Ltd. 204,185.32
Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. 242,065.55
Guizhou Xijiu Co., Ltd. 106,253.40
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co.,
148,394.67
Ltd.
Guizhou Baijin Liquor Co., Ltd. 67,006.43
Shanghai Kweichow Moutai Industrial Co., Ltd. 99,284.51
Kweichow Moutai (group) International Travel Service Co., Ltd. 87,576.28
Kweichow Moutai Logistics Park Grain Storage Co., Ltd. 108,806.11
Hotel Management Company of Moutai Group 117,010.65
Guizhou Fuming Packaging Co. Ltd 95,285.07
Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. 59,060.03
Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. 41,444.56
Gui Zhou New Huaxi Glass Co., Ltd 44,176.66
Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. 20,844.06
Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd. 18,273.96
Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. 154,157.83
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. 1,655.27
Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment
1,100.33
Development Co., Ltd.
Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology
5,607.60
Development Co., Ltd.
Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. 803.24
63 / 158
ANNUAL REPORT 2022
Moutai Financial Leasing Co., Ltd 19.23
Moutai(Guizhou) Investment Management Co., Ltd. 14.67
Kweichow Zunyi Moutai Airport Ecological Park Investment and Development
12.79
Co., Ltd.
Maotai (Guizhou) Investment Fund (L.P.) 3.08
Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. 0.08
Total 105,584,206.24
B. Loan business
√Applicable □N/A
Unit: CNY
Amount for this period
Related Interest Opening Total
Relation Loan amount Total loan Closing balance
party Rate balance repayment
amount for the
amount for the
current period
current period
China
Kweichow
Moutai Parent 3.65%-
3,500,000,000.00 3,500,000,000.00 3,500,000,000.00 3,500,000,000.00 3,500,000,000.00
Distillery company 3.70%
(Group)
Co., Ltd.
Kweichow
Moutai
Logistics
3.65%-
Park Other 299,000,000.00 10,000,000.00 61,730,000.00 14,000,000.00 57,730,000.00
3.70%
Grain
Storage
Co., Ltd.
Total / / / 3,510,000,000.00 3,561,730,000.00 3,514,000,000.00 3,557,730,000.00
Interest charged to related parties
Unit: CNY
Item Related party This reporting period
Loan
interest China Kweichow Moutai Distillery (Group) Co., Ltd. 126,595,256.84
income
Loan
interest Kweichow Moutai Logistics Park Grain Storage Co., Ltd. 359,002.00
income
Total 126,954,258.84
C. Credit business or other financial business
√Applicable □N/A
Unit: CNY
Related party Relation Business type Total amount Actual amount
China Kweichow
Parent
Moutai Distillery (Group) Credit loan 3,500,000,000.00 3,500,000,000.00
company
Co., Ltd.
Kweichow Moutai Mortgage loan 100,000,000.00 57,730,000.00
Logistics Park Grain Other
Storage Co., Ltd. Credit loan 199,000,000.00
Wholly-owned
Kweichow Moutai
subsidiary of
Liquorry (Group) Health Credit loan 500,000,000.00
the parent
Liquor Co., Ltd.
company
64 / 158
ANNUAL REPORT 2022
Guizhou Maotai
Ecological Agriculture Other Credit loan 10,000,000.00
Sales Co., Ltd.
Kweichow Moutai Wholly-owned
(Group) Ecological subsidiary of
Entrusted loans 9,955,184.18 9,955,184.18
Agriculture Industry the parent
Development Co., Ltd. company
Guizhou Hengdao
Forestry and Agriculture
Other Entrusted loans 9,955,184.18 9,955,184.18
Technology Development
Co., Ltd.
D. Other instructions
√Applicable □N/A
Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company, purchased the
bonds issued by Guiyang GY Financial Leasing Co., Ltd. from the open market, with a cost of CNY 20
million and recognized interest income of CNY 0.86 million. As of the end of the period, the balance of
provision for impairment of such creditor's right investments amounted to CNY 0.01million, the balance
accrued interest was CNY 0.15 million, and the book value was CNY 20.14 million.
12.6 Others
□Applicable √N/A
13. Significant contracts and their performance
13.1 Trusteeship, contracting and leasing
A. Trusteeship
□Applicable √N/A
B. Contracting
□Applicable √N/A
C. Leasing
□Applicable √N/A
13.2 Major guarantees
□Applicable √N/A
13.3 Entrusting others to manage cash assets
A. Entrusted assets management
a. Overview of entrusted assets management
□Applicable √N/A
Other situations
□Applicable √N/A
b. Principal entrusted assets management
□Applicable √N/A
Other situations
□Applicable √N/A
c. Provision for impairment of entrusted assets management
□Applicable √N/A
B. Entrusted loans
a. Overview of entrusted loans
□Applicable √N/A
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ANNUAL REPORT 2022
Other situations
□Applicable √N/A
b. Principal entrusted loans
□Applicable √N/A
Other situations
□Applicable √N/A
c. Provision for impairment of entrusted loans
□Applicable √N/A
C. Other situations
□Applicable √N/A
13.4 Other significant contracts
□Applicable √N/A
14. Instruction of other major events that have a significant impact on investors’ value judgments
and investment decisions
□Applicable √N/A
Section VII Changes in Shares and Information about Shareholders
1. Changes in share capital
1.1 Changes in shares
A. Changes in shares
During the reporting period, there is no change to the total number of shares and share capital structure
of the Company.
B. Explanation of changes in shares
□Applicable √N/A
C. Impact of changes in shares on financial indicators such as earnings per share and net assets per
share in the latest year and the latest period (if any)
□Applicable √N/A
D. Other contents deemed necessary by the Company or required by securities regulators to disclose
□Applicable √N/A
1.2 Changes in restricted shares
□Applicable √N/A
2. Securities issuance and listing
2.1 Issues of securities as of the reporting period
□Applicable √N/A
Explanation of securities issuance as of the reporting period (for bonds with different interest rates in the
duration, please explain separately):
□Applicable √N/A
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ANNUAL REPORT 2022
2.2 Changes in the Company’s total shares and shareholder structure, and changes in the
Company’s asset and liability structure
□Applicable √N/A
2.3 Existing employees’ shares
□Applicable √N/A
3. Shareholders and actual controllers
3.1 Total number of shareholders
The total number of ordinary shareholders as of
167,516
the end of the reporting period
The total number of ordinary shareholders at the
end of the previous month before the disclosure 159,541
date of the annual report
3.2 Shareholdings of the top ten shareholders and top ten tradable shareholders (or shareholders
without restrictions on sales) as of the end of the reporting period
Unit: Share
Shareholdings of the top ten shareholders
Increase
or Number of Staking, tokenizing
Number of or freezing
decrease shares
Shareholder name shares held Proportion Nature of
during held with
(full name) at the end of (%) shareholders
the restrictions
the period Share
reporting on sales Quantity
status
period
China Kweichow
State-own
Moutai Distillery 678,291,955 54 None
legal person
(Group) Co., Ltd.
Hong Kong Securities
-
Clearing Company 84,798,642 6.75 Unknown Unknown
4,883,202
Ltd. (HKSCC)
Guizhou Provincial
State-own
State-owned Capital 56,996,777 4.54 Unknown
legal person
Operation Co., Ltd.
Kweichow Moutai
Distillery (Group)
State-own
Technology 27,812,088 2.21 None
legal person
Development Co.,
Ltd.
Central Huijin Asset State-own
10,397,104 0.83 Unknown
Management Co., Ltd. legal person
China Securities
Finance Corporation 8,039,447 0.64 Unknown Unknown
Limited
Shenzhen Jinhui
Rongsheng Wealth
Management Co., Ltd.
- Jinhui Rongsheng 1,674,929 7,604,279 0.61 Unknown Unknown
No. 3 Private
Securities Investment
Fund
Zhuhai Ruifeng
Huibang Asset
2,136,950 7,503,667 0.6 Unknown Unknown
Management Co., Ltd.
- Ruifeng Huibang
67 / 158
ANNUAL REPORT 2022
No. 3 Private
Securities Investment
Fund
Bank of China
Limited - China
Merchants CSI Liquor
-392,551 5,445,803 0.43 Unknown Unknown
Index Graded
Securities Investment
Fund
Industrial and
Commercial Bank of
China - Shanghai
Stock Exchange 50
43,395 5,379,160 0.43 Unknown Unknown
Exchange-traded
Open-end Index
Securities Investment
Fund
Shareholdings of the top ten shareholders without restrictions on sales
The number of tradable shares held Type and quantity of shares
Shareholder name
without restrictions on sales Type Quantity
China Kweichow Moutai Distillery
678,291,955 ordinary 678,291,955
(Group) Co., Ltd.
shares
Hong Kong Securities Clearing
84,798,642 ordinary 84,798,642
Company Ltd. (HKSCC)
shares
Guizhou Provincial State-owned
56,996,777 ordinary 56,996,777
Capital Operation Co., Ltd.
shares
Kweichow Moutai Distillery
(Group) Technology Development 27,812,088 ordinary 27,812,088
Co., Ltd. shares
Central Huijin Asset Management
10,397,104 ordinary 10,397,104
Co., Ltd.
shares
China Securities Finance
8,039,447 ordinary 8,039,447
Corporation Limited
shares
Shenzhen Jinhui Rongsheng
Wealth Management Co., Ltd. -
7,604,279 ordinary 7,604,279
Jinhui Rongsheng No. 3 Private
shares
Securities Investment Fund
Zhuhai Ruifeng Huibang Asset
Management Co., Ltd. - Ruifeng
7,503,667 ordinary 7,503,667
Huibang No. 3 Private Securities
shares
Investment Fund
Bank of China Limited - China
Merchants CSI Liquor Index 5,445,803 ordinary 5,445,803
Graded Securities Investment Fund shares
68 / 158
ANNUAL REPORT 2022
Industrial and Commercial Bank of
China - Shanghai Stock Exchange
5,379,160 ordinary 5,379,160
50 Exchange-traded Open-end
shares
Index Securities Investment Fund
Among the above shareholders, there are relations between China Kweichow
Explanation of the relations or Moutai Distillery (Group) Co., Ltd. and Kweichow Moutai Distillery (Group)
concerted actions of the above Technology Development Co., Ltd. In addition, the Company is not aware of
shareholders the relations among other shareholders and whether they are persons acting in
concert.
Note: On November 29, 2022, the Company disclosed the Announcement on the Plan for Increase
Shareholding of the Company by the Controlling Shareholders (Announcement No.: Lin 2022-030). As
of March 29, 2023, China Kweichow Moutai Distillery (Group) Co., Ltd. and Kweichow Moutai Distillery
(Group) Technology Development Co., Ltd. increased their holdings of shares of Kweichow Moutai by
840,514 shares, accounting for 0.0669% of the Company's total share capital, the actual increase amount
of the two shareholders has reached the lower limit of the planned increase range respectively.
Number of shares held by the top ten shareholders with restrictions on sales and restrictions on sales
□Applicable √N/A
3.3 Strategic investors or general legal persons become the top 10 shareholders due to placement of
new shares
□Applicable √N/A
4. Controlling shareholders and actual controllers
4.1Controlling shareholders
A. Legal person
√Applicable □N/A
Name China Kweichow Moutai Distillery (Group) Co., Ltd.
Legal Representative Ding Xiongjun
Date of establishment January 24, 1998
Production and operation of alcoholic products (main business);
production technology consulting and services of alcoholic
products; production and sales of packaging materials and
Main business beverages; catering, accommodation, tourism, logistics and
transportation; import and export trade business; Internet
industry; real estate development and leasing, parking lot
management; education, health; ecological agriculture..
Holding 0.24% of the shares of Bank of Communications Co.,
Shareholdings of other domestic and Ltd.; holding 3.97% of the shares of Huachuang Yangan Co.,
overseas listed companies that Ltd.; holding 1.45% of the shares of Bank of Guiyang Co., Ltd.;
controlled and participated in during holding 10.07% of the shares of Guizhou Radio and Television
the reporting period Information Network Co., Ltd.; holding 12% of the shares of
Bank of Guizhou Co., Ltd.
B. Natural person
□Applicable √N/A
69 / 158
ANNUAL REPORT 2022
C. Special instructions for the fact that the Company does not have controlling shareholders
□Applicable √N/A
D. Explanation on changes of controlling shareholders during the reporting period
□Applicable √N/A
E. Block diagram of the property rights and control relationship between the Company and the
controlling shareholders
√Applicable □N/A
China Kweichow Moutai Distillery (Group)
Co., Ltd.
Kweichow Moutai Co., Ltd.
4.2 The actual controller
A. Legal person
√Applicable □N/A
State-owned Assets Supervision and Administration Commission
Name
of Guizhou Province
The person in charge or the legal
Xiao Kailin
representative of the entity
B. Natural persons
□Applicable √N/A
C. Special instructions for the fact that the Company does not have an actual controller
□Applicable √N/A
D. Explanation on the change of the Company’s control during the reporting period
□Applicable √N/A
E. Block diagram of the property rights and control relationship between the Company and the
actual controller
√Applicable □N/A
State-owned Assets Supervision and Administration
Commission of Guizhou Province
China Kweichow Moutai Distillery (Group) Co., Ltd.
Kweichow Moutai Co., Ltd.
70 / 158
ANNUAL REPORT 2022
F. The actual controller controls the Company through trust or other asset management methods
□Applicable √N/A
4.3 Other information about the controlling shareholder and actual controller
□Applicable √N/A
5. The accumulative number of pledged shares of the Company’s controlling shareholder or the
largest shareholder and its persons acting in concert account for more than 80% of the
Company’s shares held by them
□Applicable √N/A
6. Other legal person shareholders holding more than 10% of the shares
□Applicable √N/A
7. Explanation of share restriction and reduction
□Applicable √N/A
8. The specific implementation of share repurchase during the reporting period
□Applicable √N/A
Section VIII Preferred Shares
□Applicable √N/A
Section IX Information about Bond
1. Corporate bonds, company bonds and non-financial corporate debt financing instruments
□Applicable √N/A
2. Convertible corporate bonds
□Applicable √N/A
Section X Financial Report
1. Audit report
√Applicable □N/A
2. Financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
December 31, 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
Item Notes December 31, 2022 December 31, 2021
Current assets:
Cash and Cash equivalents 58,274,318,733.23 51,810,243,607.11
Settlements Provision
71 / 158
ANNUAL REPORT 2022
Loans to banks and other financial 116,172,711,554.59 135,067,287,778.03
institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 105,453,212.00
Accounts receivable 20,937,144.00
Financing receivables
Prepayments 897,377,162.27 389,109,841.28
Insurance premium receivable
Due from reinsurers
Reinsurance contract reserves
receivable
Other receivables 31,818,622.84 33,158,974.32
Including: Interest receivable
Dividends receivable
Financial assets purchased under
agreements to resell
Inventories 38,824,374,236.24 33,394,365,084.83
Contract assets
Assets classified as held for sale
Current portion of non-current assets 2,123,601,333.33
Other current assets 160,843,674.42 71,527,560.74
Total current assets 216,611,435,672.92 220,765,692,846.31
Non-current assets:
Loans and advances 4,134,744,407.92 3,425,175,000.00
Debt investment 380,685,319.09 170,468,623.71
Other debt investments
Long-term receivables
Long-term equity investments
Other equity instruments investments
Other non-current financial assets
Investment properties 5,335,046.99 5,242,431.75
Fixed assets 19,742,622,547.86 17,472,173,182.85
Construction in progress 2,208,329,892.95 2,321,988,541.82
Productive biological assets
Oil and gas assets
Right-of-use asset 402,551,533.46 362,785,970.23
Intangible assets 7,083,177,226.45 6,208,358,330.24
Development expenditures 190,536,632.60
Goodwill
Long-term prepaid expenses 146,455,346.90 139,342,455.82
Deferred tax assets 3,458,931,368.11 2,237,206,443.84
Other non-current assets 2,059,761,333.33
Total non-current assets 37,753,369,322.33 34,402,502,313.59
Total assets 254,364,804,995.25 255,168,195,159.90
Current liabilities:
Short-term borrowings
Borrowing from the central bank
Deposits and balances from banks and
other financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 2,408,371,053.69 2,009,832,495.56
72 / 158
ANNUAL REPORT 2022
Receipts in advance
Contract liabilities 15,471,920,924.98 12,718,465,288.02
Financial assets sold under agreements
to buy
Customer deposits and balances from 12,874,043,355.42 21,763,575,647.32
banks and other financial institutions
Customer brokerage deposits
Securities underwriting brokerage
deposits
Payroll and employee benefits payable 4,782,311,242.41 3,677,845,718.53
Taxes payable 6,896,555,423.83 11,979,802,144.01
Other payables 4,543,842,833.87 4,124,404,781.29
Including: Interest payable
Dividend payable
Fees and commission payable
Payable reinsurance
Liabilities classified as held for sale
Current portion of non-current liabilities 109,351,155.28 104,319,886.87
Other current liabilities 1,979,272,808.90 1,535,976,293.22
Total current liabilities 49,065,668,798.38 57,914,222,254.82
Non-current liabilities:
Insurance reserves
Long-term borrowings
Bonds payable
Including: Preference share
Perpetual debt
Lease liabilities 334,447,942.79 296,466,199.74
Long-term Payable
Long-term payroll and employee
benefits payable
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 334,447,942.79 296,466,199.74
Total liabilities 49,400,116,741.17 58,210,688,454.56
Owners' equity (or shareholders' equity):
Paid-in capital 1,256,197,800.00 1,256,197,800.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 1,374,964,415.72 1,374,964,415.72
Less: treasury shares
Other comprehensive income -10,776,907.33 -13,017,880.78
Special reserve
Surplus reserve 32,522,779,178.88 25,142,832,818.16
General reserve 1,061,529,724.00 1,061,529,724.00
Retained earnings 161,301,978,184.73 160,716,861,920.19
Equity attributable to owners of the
197,506,672,396.00 189,539,368,797.29
parent
Non-controlling interests 7,458,015,858.08 7,418,137,908.05
Total shareholders’ equity 204,964,688,254.08 196,957,506,705.34
Total liabilities and shareholders'
254,364,804,995.25 255,168,195,159.90
equity
73 / 158
ANNUAL REPORT 2022
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
COMPANY STATEMENT OF FINANCIAL POSITION
December 31, 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
Item Notes December 31, 2022 December 31, 2021
Current assets:
Cash and Cash equivalents 69,397,227,501.61 79,115,779,990.88
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable 20,670,923,010.62 1,480,080,983.77
Financing receivables
Prepayments 883,947,665.69 355,933,658.53
Other receivables 15,092,761.22 9,210,501.43
Including: Interest receivable
Dividends receivable
Inventories 37,214,843,706.27 32,424,250,538.15
Contract assets
Assets classified as held for sale
Current portion of non-current assets 2,123,601,333.33
Other current assets 127,580,648.65 74,711.92
Total current assets 130,433,216,627.39 113,385,330,384.68
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments 1,624,535,587.55 1,624,535,587.55
Other equity instruments investments
Other non-current financial assets
Investment properties
Fixed assets 19,278,963,775.03 16,992,010,693.65
Construction in progress 2,151,379,751.61 2,280,929,738.91
Productive biological assets
Oil and gas assets
Right-of-use asset 207,871,591.22 249,696,982.21
Intangible assets 7,077,311,242.16 6,207,018,624.16
Development expenditures 190,536,632.60
Goodwill
Long-term prepaid expenses 127,500,000.29 137,500,000.25
Deferred tax assets 699,632,491.95 639,335,397.34
Other non-current assets 2,059,761,333.33
Total non-current assets 31,357,731,072.41 30,190,788,357.40
Total assets 161,790,947,699.80 143,576,118,742.08
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
74 / 158
ANNUAL REPORT 2022
Accounts payable 2,407,574,612.21 1,859,402,871.20
Receipts in advance
Contract liabilities 1,179,446.26 142,568.14
Payroll and employee benefits payable 4,617,577,969.34 3,551,461,301.23
Taxes payable 3,875,939,323.83 6,857,150,756.70
Other payables 1,938,855,202.90 1,374,157,867.96
Including: Interest payable
Dividend payable
Liabilities classified as held for sale
Current portion of non-current liabilities 60,493,144.20 63,501,723.59
Other current liabilities 153,328.01 18,533.86
Total current liabilities 12,901,773,026.75 13,705,835,622.68
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference share
Perpetual debt
Lease liabilities 195,899,845.16 225,090,785.68
Long-term Payable
Long-term payroll and employee
benefits payable
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 195,899,845.16 225,090,785.68
Total liabilities 13,097,672,871.91 13,930,926,408.36
Owners' equity (or shareholders' equity):
Paid-in capital 1,256,197,800.00 1,256,197,800.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 1,374,303,082.72 1,374,303,082.72
Less: treasury shares
Other comprehensive income
Special reserve
Surplus reserve 32,522,779,178.88 25,142,832,818.16
Retained earnings 113,539,994,766.29 101,871,858,632.84
Total shareholders’ equity 148,693,274,827.89 129,645,192,333.72
Total liabilities and shareholders'
161,790,947,699.80 143,576,118,742.08
equity
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
Item Notes 2022 2021
I. Total revenue 127,553,959,355.97 109,464,278,563.89
Including: Operating revenue 124,099,843,771.99 106,190,154,843.76
75 / 158
ANNUAL REPORT 2022
Interest income 3,454,115,583.98 3,274,123,720.13
Net earned premiums
Net fee and commission revenue
II. Total operating costs 39,748,309,616.85 34,776,902,467.47
Including: Operating costs 10,093,468,616.63 8,983,377,809.96
Interest expenses 105,584,206.24 173,897,197.98
Fees and commission expenses 143,141.51 115,082.12
Surrenders
Net payments for insurance claims
Net provision of insurance reserve
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 18,495,818,534.22 15,304,469,070.03
Selling expenses 3,297,724,190.94 2,737,369,434.78
General and administrative expenses 9,012,191,073.63 8,450,274,065.03
R&D expenses 135,185,680.40 61,923,213.59
Financial expenses -1,391,805,826.72 -934,523,406.02
Including: Interest expense 12,023,204.77 13,529,867.76
Interest income 1,475,422,303.64 944,578,412.02
Add: Other income 24,505,353.83 20,515,911.19
Investment income/(loss) 63,840,000.00 58,255,937.39
Including: Share of profits or loss of
associates and joint ventures
Gain from derecognition of
financial assets measured at amortized cost
Exchange gains or losses
Net exposure hedging gains/ (losses)
Gain/ (loss) on the changes in fair value -2,244,726.29
Credit impairment losses -14,686,546.25 -13,022,441.19
Assets impairment losses
Gain/ (loss) from disposal of assets 213,235.69
III. Operating profit 87,879,521,782.39 74,750,880,777.52
Add: Non-operating income 70,852,285.40 68,989,219.74
Less: Non-Operating expenses 248,884,319.61 291,838,102.50
IV. Profit/(loss) before tax 87,701,489,748.18 74,528,031,894.76
Less: Income tax expense 22,326,352,981.43 18,807,501,938.30
V. Net profit /(loss) 65,375,136,766.75 55,720,529,956.46
(1) Categorized by operation continuity
1. Net profit from continuing operations 65,375,136,766.75 55,720,529,956.46
2. Net profit from discontinuing operations
(2) Categorized by ownership
1. Net profit attributable to owners of the 62,716,443,738.27 52,460,144,378.16
parent
2. Net profit attributable to non-controlling 2,658,693,028.48 3,260,385,578.30
interests
VI. Other comprehensive income, net of tax 2,240,973.45 -7,686,513.03
(1) Other comprehensive income, net of tax, 2,240,973.45 -7,686,513.03
attributable to owners of the parent
1. Other comprehensive income that will not
be reclassified to profit or loss
1.1 Remeasurement gains or losses of a defined
benefit plan
1.2 Other comprehensive income using the
equity method that will not be reclassified to
profit or loss
76 / 158
ANNUAL REPORT 2022
1.3 Changes in fair value of other equity
instrument investments
1.4 Changes in fair value of enterprise’s own
credit risk
2. Other comprehensive income to be 2,240,973.45 -7,686,513.03
reclassified to profit or loss
2.1 Other comprehensive income that can be
reclassified to profit or loss in equity method
2.2 Changes in fair value of other debt
investments
2.3 Amount of financial assets reclassified into
other comprehensive income
2.4 Provision for credit impairment of other
debt investments
2.5 Cash flow hedging reserves
2.6 Exchange differences on translation of 2,240,973.45 -7,686,513.03
foreign currency financial statements
2.7 Others
(2) Other comprehensive income, net of tax,
attributable to non-controlling interests
VII. Total comprehensive income 65,377,377,740.20 55,712,843,443.43
(1) Total comprehensive income attributable to 62,718,684,711.72 52,452,457,865.13
owners of the parent
(2) Total comprehensive income attributable to 2,658,693,028.48 3,260,385,578.30
non-controlling interests
VIII. Earnings per share
(1) Basic earnings per share (CNY / share) 49.93 41.76
(2) Diluted earnings per share (CNY / share) 49.93 41.76
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
INCOME STATEMENT OF COMPANY
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
Item Notes 2022 2021
I. Total revenue 71,301,796,876.93 37,344,898,964.17
Less: Total operating costs 10,420,242,137.46 8,991,912,828.37
Taxes and surcharges 17,592,050,587.39 14,172,007,646.53
Selling expenses 838,175,269.31 562,890,060.03
General and administrative expenses 8,342,403,894.00 7,891,014,092.82
Research and development expenses 135,185,680.40 61,923,213.59
Finance expenses -1,363,150,442.27 -1,229,581,298.58
Including: Interest expenses (expressed 7,612,746.94 9,093,212.00
with positive value)
Interest income (expressed with 1,437,004,178.70 1,228,595,916.86
positive value)
Add: Other income 9,460,960.94 6,279,409.80
Investment income/(loss) 47,660,330,707.35 44,799,409,723.82
Including: Share of profits or loss of
associates and joint ventures
Gain from derecognition of
financial assets measured at amortized cost
Net exposure hedging gains/ (losses)
77 / 158
ANNUAL REPORT 2022
Gain/ (loss) on the changes in fair value -2,244,726.29
Credit impairment losses 2,489,064.82 -85,848.47
Assets impairment losses
Gain/ (loss) from disposal of assets 343,183.91
II. Operating profit/Loss 83,009,513,667.66 51,698,090,980.27
Add: Non-operating income 66,605,379.09 51,287,742.20
Less: Non-operating expenses 242,611,517.77 265,265,782.93
III.Profit/(loss) before tax 82,833,507,528.98 51,484,112,939.54
Less: Income tax expense 9,034,043,921.80 1,805,010,847.21
IV. Net profit /(loss) 73,799,463,607.18 49,679,102,092.33
(1) Net profit from continuing operations 73,799,463,607.18 49,679,102,092.33
(2) Net profit from discontinuing operations
V. Other comprehensive income, net of tax
(1) Other comprehensive income, net of tax
1. Other comprehensive income that will not
be reclassified to profit or loss
2. Other comprehensive income using the
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 enterprise’s own
credit risk
(2) Other comprehensive income to be
reclassified to profit or loss
1. Other comprehensive income that can be
reclassified to profit or loss in equity method
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of other
debt investments
5. Cash flow hedging reserves
6. Exchange differences on translation of
foreign currency financial statements
7. Others
VI. Total comprehensive income 73,799,463,607.18 49,679,102,092.33
VII. Earnings per share
(1) Basic earnings per share (CNY / share) 58.75 39.55
(2) Diluted earnings per share (CNY / share) 58.75 39.55
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
Item Notes 2022 2021
I. Cash flows from operating activities
Cash receipts from the sale of goods and the
140,691,678,592.00 119,320,536,796.65
rendering of services
78 / 158
ANNUAL REPORT 2022
Net increase in customer bank deposits and
-8,916,033,228.67 7,511,166,145.93
due to banks and other financial institutions
Net increase in loans from the central bank
Net increase in funds borrowed from other
financial institutions
Cash premiums received on original
insurance contracts
Net cash received from re-insurance business
Net increase in deposits and investments
from insurers
Cash received from interest, fees and
3,247,615,476.04 3,145,747,032.91
commission
Net increase in funds deposit
Net increase in repurchase business funds
Net income from securities trading brokerage
business
Tax refunds received 33,191,912.56
Cash received relating to other operating
2,759,422,171.88 1,643,536,862.48
activities
Sub-total of cash inflows 137,815,874,923.81 131,620,986,837.97
Cash paid for purchase of goods and services 8,357,859,151.03 7,745,959,630.90
Net increase in loans and payments on behalf
723,778,672.00 484,244,272.00
of customers
Net increase in deposits with central bank
13,037,761,321.90 559,089,326.28
and other financial institutions
Payments for claims for original insurance
contracts
Net increase in funds lent -400,000,000.00
Cash paid for interest, fees and commission 79,226,410.98 163,462,728.48
Commissions on insurance policies paid
Cash paid to and on behalf of employee 11,752,241,598.62 10,061,366,201.66
Cash paid for taxes 62,043,324,506.36 44,609,684,025.28
Cash paid relating to other operating
5,123,087,432.89 4,368,504,506.00
activities
Sub-total of cash outflows 101,117,279,093.78 67,592,310,690.60
Net cash flows from operating activities 36,698,595,830.03 64,028,676,147.37
II. Cash flows from investing activities
Cash received from disposal of investments 6,079,930.68
Cash received from investment income 5,880,000.00 860,000.00
Net proceeds from disposal of property, plant
and equipment, intangible assets and other long- 355,149.00 2,463,474.29
term assets
Cash received from disposal of subsidiaries
and other business units
Cash received relating to other investing
4,971,762.18 9,983,452.63
activities
Sub-total of cash inflows 11,206,911.18 19,386,857.60
Purchase of property, plant and equipment,
5,306,546,416.54 3,408,784,532.01
intangible assets and other non-current assets
Cash paid for investments 210,000,000.00 2,150,000,000.00
Net increase in secured loans
Net cash paid for acquisition of a subsidiary
and other operating units
Cash paid relating to other investing activities 31,486,829.54 23,048,029.93
Sub-total of cash outflows 5,548,033,246.08 5,581,832,561.94
Net cash flows from investing activities -5,536,826,334.90 -5,562,445,704.34
III. Cash flows from financing activities
79 / 158
ANNUAL REPORT 2022
Cash received from investment
Including: Cash receipts from capital
contributions from non-controlling interests of
subsidiaries
Proceeds from borrowings
Cash receipts relating to other financing
activities
Subtotal of cash inflows
Repayments for debts
Cash payments for distribution of dividends
57,370,196,191.46 26,476,019,839.37
or profit and interest expenses
Including: Dividends or profit paid to non-
2,618,815,078.45 2,240,195,683.97
controlling shareholders of subsidiaries
Cash payments relating to other financing
54,332,788.37 88,121,549.59
activities
Subtotal of cash outflows 57,424,528,979.83 26,564,141,388.96
Net cash flows from financing activities -57,424,528,979.83 -26,564,141,388.96
IV. Effect of exchange rate changes on cash
911,088.01 -2,026,542.60
and cash equivalents
V. Net increase in cash and cash equivalents -26,261,848,396.69 31,900,062,511.47
Add: Cash and cash equivalents at beginning
178,640,587,379.52 146,740,524,868.05
of year
VI. Cash and cash equivalents at end of year 152,378,738,982.83 178,640,587,379.52
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
COMPANY STATEMENT OF CASH FLOWS
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
Item Notes 2022 2021
I. Cash flows from operating activities
Cash receipts from the sale of goods and the
60,627,778,647.24 48,582,727,792.21
rendering of services
Tax refunds received
Cash received relating to other operating
1,869,230,100.75 1,330,181,729.83
activities
Sub-total of cash inflows 62,497,008,747.99 49,912,909,522.04
Cash paid for purchase of goods and services 8,247,604,843.54 7,730,438,800.94
Cash paid to and on behalf of employee 11,019,897,320.84 9,421,372,112.36
Cash paid for taxes 37,873,356,637.22 17,808,661,856.89
Cash paid relating to other operating
2,876,686,272.05 2,170,307,857.51
activities
Sub-total of cash outflows 60,017,545,073.65 37,130,780,627.70
Net cash flows from operating activities 2,479,463,674.34 12,782,128,894.34
II. Cash flows from investing activities
Cash received from disposal of investments 6,079,930.68
Cash received from investment income 47,596,490,707.35 44,741,153,786.43
Net proceeds from disposal of property, plant
and equipment, intangible assets and other long- 317,509.00 2,453,676.06
term assets
Cash received from disposal of subsidiaries
and other business units
80 / 158
ANNUAL REPORT 2022
Cash received relating to other investing
4,971,762.18 9,983,452.63
activities
Sub-total of cash inflows 47,601,779,978.53 44,759,670,845.80
Purchase of property, plant and equipment,
5,252,006,054.93 3,349,912,221.23
intangible assets and other non-current assets
Cash paid for investments 2,000,000,000.00
Cash Paid for disposal of subsidiaries and
other business units
Cash paid relating to other investing activities 31,486,829.54 23,048,029.93
Sub-total of cash outflows 5,283,492,884.47 5,372,960,251.16
Net cash flows from investing activities 42,318,287,094.06 39,386,710,594.64
III. Cash flows from financing activities
Cash received from investment
Proceeds from borrowings
Cash receipts relating to other financing
activities
Subtotal of cash inflows
Repayments for debts
Cash payments for distribution of dividends
54,751,381,113.01 24,235,824,155.40
or profit and interest expenses
Cash payments relating to other financing
19,713,859.66 53,056,483.06
activities
Subtotal of cash outflows 54,771,094,972.67 24,288,880,638.46
Net cash flows from financing activities -54,771,094,972.67 -24,288,880,638.46
IV. Effect of exchange rate changes on cash
and cash equivalents
V. Net increase in cash and cash equivalents -9,973,344,204.27 27,879,958,850.52
Add: Cash and cash equivalents at beginning
77,933,933,271.80 50,053,974,421.28
of year
VI. Cash and cash equivalents at end of year 67,960,589,067.53 77,933,933,271.80
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
81 / 158
ANNUAL REPORT 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
2022
Equity attributable to owners of the parent
Item Non-controlling Total shareholders’
Other equity instruments Less: Other interests equity
Special
Share capital Capital reserve treasury comprehensive Surplus reserve General reserve Retained earnings Others Subtotal
preference Perpetual reserve
Others shares income
share debt
1. Balance at the end -
1,256,197,800.00 1,374,964,415.72 25,142,832,818.16 1,061,529,724.00 160,716,861,920.19 189,539,368,797.29 7,418,137,908.05 196,957,506,705.34
of previous year 13,017,880.78
Add: changes in
accounting policies
Corrections of
prior period errors
Business
combination under
common control
Others
2. Balance at the -
1,256,197,800.00 1,374,964,415.72 25,142,832,818.16 1,061,529,724.00 160,716,861,920.19 189,539,368,797.29 7,418,137,908.05 196,957,506,705.34
beginning of the year 13,017,880.78
3. Increase/(decrease)
2,240,973.45 7,379,946,360.72 585,116,264.54 7,967,303,598.71 39,877,950.03 8,007,181,548.74
during the period
(1) Total
comprehensive 2,240,973.45 62,716,443,738.27 62,718,684,711.72 2,658,693,028.48 65,377,377,740.20
income
(2) Shareholders’
contributions and
reduction
(i) Shareholders
‘contributions in
ordinary share
(ii) Other equity
instruments
contributions
(iii) Amount of
share-based
payments recognized
in equity
(iv) Others
(3) Profit -
7,379,946,360.72 -62,131,327,473.73 -54,751,381,113.01 -57,370,196,191.46
distribution 2,618,815,078.45
(i) Transfer to
7,379,946,360.72 -7,379,946,360.72
surplus reserve
82 / 158
ANNUAL REPORT 2022
(ii) Transfer to
general reserve
(iii) Distribution to -
-54,751,381,113.01 -54,751,381,113.01 -57,370,196,191.46
shareholders 2,618,815,078.45
(iv) Others
(4) Transfer within
equity
(i) Capital reserves
converted to share
capital
(ii) Surplus reserves
converted to share
capital
(iii) Loss made up
by surplus reserves
(iv) Changes in the
defined benefit plan
transferred to
retained earnings
(v) Other
comprehensive
income transferred to
retained earnings
(vi) Others
(5) Special reserve
(i) Additions
(ii) Utilisation
(6) Others
4. Closing balance -
1,256,197,800.00 1,374,964,415.72 32,522,779,178.88 1,061,529,724.00 161,301,978,184.73 197,506,672,396.00 7,458,015,858.08 204,964,688,254.08
10,776,907.33
2021
Equity attributable to owners of the parent
Non-controlling Total shareholders’
Item
interests equity
Other equity instruments Share Other equity Capital Other equity Share Other equity Capital reserve Share capital
Share capital Capital reserve Share capital Capital reserve capital instruments
preference Perpetual capital instruments reserve instruments
Others
share debt
1. Balance at the end
1,256,197,800.00 1,374,964,415.72 -5,331,367.75 20,174,922,608.93 927,577,822.67 137,594,403,807.99 161,322,735,087.56 6,397,948,013.72 167,720,683,101.28
of previous year
Add: changes in
accounting policies
Corrections of
prior period errors
Business
combination under
common control
Others
2. Balance at the
1,256,197,800.00 1,374,964,415.72 -5,331,367.75 20,174,922,608.93 927,577,822.67 137,594,403,807.99 161,322,735,087.56 6,397,948,013.72 167,720,683,101.28
beginning of the year
3. Increase/(decrease)
-7,686,513.03 4,967,910,209.23 133,951,901.33 23,122,458,112.20 28,216,633,709.73 1,020,189,894.33 29,236,823,604.06
during the period
83 / 158
ANNUAL REPORT 2022
(1) Total
comprehensive -7,686,513.03 52,460,144,378.16 52,452,457,865.13 3,260,385,578.30 55,712,843,443.43
income
(2) Shareholders’
contributions and
reduction
(i) Shareholders
‘contributions in
ordinary share
(ii) Other equity
instruments
contributions
(iii) Amount of
share-based
payments recognized
in equity
(iv) Others
(3) Profit -
4,967,910,209.23 133,951,901.33 -29,337,686,265.96 -24,235,824,155.40 -26,476,019,839.37
distribution 2,240,195,683.97
(i) Transfer to
4,967,910,209.23 -4,967,910,209.23
surplus reserve
(ii) Transfer to
133,951,901.33 -133,951,901.33
general reserve
(iii) Distribution to -
-24,235,824,155.40 -24,235,824,155.40 -26,476,019,839.37
shareholders 2,240,195,683.97
(iv) Others
(4) Transfer within
equity
(i) Capital reserves
converted to share
capital
(ii) Surplus reserves
converted to share
capital
(iii) Loss made up by
surplus reserves
(iv) Changes in the
defined benefit plan
transferred to
retained earnings
(v) Other
comprehensive
income transferred to
retained earnings
(vi) Others
(5) Special reserve
(i) Additions
(ii) Utilisation
(6) Others
4. Closing balance -
1,256,197,800.00 1,374,964,415.72 25,142,832,818.16 1,061,529,724.00 160,716,861,920.19 189,539,368,797.29 7,418,137,908.05 196,957,506,705.34
13,017,880.78
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
84 / 158
ANNUAL REPORT 2022
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2022
Prepared by: Kweichow Moutai Co., Ltd.
Unit: CNY
2022
Other equity
instruments
pr Less Other
Pe
ef : compr Spec
rp
Item er treas ehensi ial Total shareholders’
Share capital et Capital reserve Surplus reserve Retained earnings
en Othe ury ve reser equity
ua
ce rs shar incom ve
l
sh es e
de
ar
bt
e
1. Balance at the end of
1,256,197,800.00 1,374,303,082.72 25,142,832,818.16 101,871,858,632.84 129,645,192,333.72
previous year
Add: changes in accounting
policies
Corrections of prior
period errors
Others
2. Balance at the beginning of
1,256,197,800.00 1,374,303,082.72 25,142,832,818.16 101,871,858,632.84 129,645,192,333.72
the year
3. Increase/(decrease) during
7,379,946,360.72 11,668,136,133.45 19,048,082,494.17
the period
(1) Total comprehensive
73,799,463,607.18 73,799,463,607.18
income
(2) Shareholders’
contributions and reduction
(i)Shareholders’
contributions in ordinary share
(ii) Other equity instruments
contributions
(iii) Amount of share-based
payments recognized in equity
(iv) Others
85 / 158
ANNUAL REPORT 2022
(3). Profit distribution 7,379,946,360.72 -62,131,327,473.73 -54,751,381,113.01
(i) Transfer to surplus reserve 7,379,946,360.72 -7,379,946,360.72
(ii) Distribution to
-54,751,381,113.01 -54,751,381,113.01
shareholders
(iii) Others
(4) Transfer within equity
(i) Capital reserves converted
to share capital
(ii) Surplus reserves
converted to share capital
(iii) Loss made up by surplus
reserves
(iv) Changes in the defined
benefit plan transferred to
retained earnings
(v) Other comprehensive
income transferred to retained
earnings
(vi) Others
(5). Special reserve
(i). Additions
(ii). Utilisation
(6) Others
4. Closing balance 1,256,197,800.00 1,374,303,082.72 32,522,779,178.88 113,539,994,766.29 148,693,274,827.89
2021
Other equity
instruments
pr
Less Other
ef Pe
: compr Spec
er rp
Item treas ehensi ial Total shareholders’
Share capital en et Capital reserve Surplus reserve Retained earnings
Othe ury ve reser equity
ce ua
rs shar incom ve
sh l
es e
ar de
e bt
1. Balance at the end of
1,256,197,800.00 1,374,303,082.72 20,174,922,608.93 81,396,490,905.14 104,201,914,396.79
previous year
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Add: changes in accounting
policies
Corrections of prior
period errors
Others
2. Balance at the beginning of
1,256,197,800.00 1,374,303,082.72 20,174,922,608.93 81,396,490,905.14 104,201,914,396.79
the year
3. Increase/(decrease) during
4,967,910,209.23 20,475,367,727.70 25,443,277,936.93
the period
(1) Total comprehensive
49,679,102,092.33 49,679,102,092.33
income
(2) Shareholders’
contributions and reduction
(i) Shareholders’
contributions in ordinary
share
(ii)Other equity instruments
contributions
(iii) Amount of share-based
payments recognized in
equity
(iv) Others
(3). Profit distribution 4,967,910,209.23 -29,203,734,364.63 -24,235,824,155.40
(i) Transfer to surplus
4,967,910,209.23 -4,967,910,209.23
reserve
(ii) Distribution to
-24,235,824,155.40 -24,235,824,155.40
shareholders
(iii) Others
(4) Transfer within equity
(i) Capital reserves
converted to share capital
(ii) Surplus reserves
converted to share capital
(iii) Loss made up by
surplus reserves
(iv) Changes in the defined
benefit plan transferred to
retained earnings
(v) Other comprehensive
income transferred to retained
earnings
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(vi) Others
(5). Special reserve
(i). Additions
(ii). Utilisation
(6) Others
4. Closing balance 1,256,197,800.00 1,374,303,082.72 25,142,832,818.16 101,871,858,632.84 129,645,192,333.72
Legal Representative: Ding Xiongjun
Chief Accountant: Jiang Yan
Head of the Accounting Department: Cai Congying
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3. Company Profile
3.1 Company Overview
√Applicable □N/A
Kweichow Moutai Co., Ltd. is established after being approved by Guizhou Provincial People’s
Government in its document of (1999) No. 291, Reply on Approving the Establishment of Kweichow
Moutai Co., Ltd. As an incorporated company, its main promoter is China Kweichow Moutai Distillery
(Group) Co., Ltd., with Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.,
Guizhou Textile Collective Industry Association, Research Institute of Tsinghua University in Shenzhen,
China National Research Institute of Food and Fermentation Industries, Beijing Sugar Tobacco & Liquor
Group Co., Ltd., Jiangsu CANDY & LIQUOR & TOBACCO Parent Co., Shanghai Jieqiang Tobacco
Sugar & Liquor (Group) Co., Ltd. as co-founders.
The company was established on November 20,1999. Its registered capital at its establishment was CNY
185 million. After being approved by CSRC with the document of [2001] No.41 and Ministry of Finance
with the document of [2001] No. 56, the corporation publicly offered 71,500,000 A shares (including
6,500,000 state-owned shares) at Shanghai Stock Exchange on July 31, 2001, marking a total capital of
its shares at 250,000,000 shares. On August 20, 2001, the corporation completed registration for
alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited and
approved by the 2001 Annual General Meeting, the corporation set the total share capital at the end of
2001- 250,000,000 shares as the baseline, and distributed dividends (CNY 6 every 10 shares, tax inclusive)
to all shareholders, and converted capital reserves into increased share capital at a 10:1 ratio, totally
increasing 25,000,000 shares. After this profit distribution, the total capital share increased from
250,000,000 shares to 275,000,000 shares. On February 13, 2003, the corporation completed registration
for alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution audited and approved by the 2002 Annual General Meeting,
the corporation set the total share capital at the end of 2002- 275,000,000 shares as the baseline, and
distributed dividends (CNY 2 every 10 shares, tax inclusive) to all shareholders. With the same baseline,
the corporation distributed bonus shares (1 bonus share every 10 share) to all shareholders. After this profit
distribution, the total capital share increased from 275,000,000 shares to 302,500,000 shares. On June 10,
2004, the corporation completed registration for alternation of registered capital from Administration for
Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited and
approved by the 2003 Annual General Meeting, the corporation set the total share capital at the end of
2003- 302,500,000 shares as the baseline, and distributed dividends (CNY 3 every 10 shares, tax inclusive)
to all shareholders, and converted capital reserves into increased share capital at a 10:3 ratio. After this
profit distribution, the total capital share increased from 302,500,000 shares to 393,250,000 shares. On
June 24, 2005, the corporation completed registration for alternation of registered capital from
Administration for Industry& Commerce of Guizhou Province.
According to the plan of profit distribution and converting capital reserves into share capital audited and
approved by the 2004 Annual General Meeting, the corporation set the total share capital at the end of
2004- 393,250,000 shares as the baseline, and distributed dividends (CNY 5 every 10 shares, tax inclusive)
to all shareholders, and converted capital reserves into increased share capital at a 10:2 ratio. After this
profit distribution, the total capital share increased from 393,250,000 shares to 471,900,000 shares. On
January 11, 2006, the corporation completed registration for alternation of registered capital from
Administration for Industry& Commerce of Guizhou Province.
According to the Reform Plan of Equity Division of Kweichow Moutai Co., Ltd. (Revised Version) audited
and approved by the second provisional General Meeting and the Meeting of relevant shareholders, the
corporation set the total share capital at the end of 2005- 471,900,000 shares as the baseline, and converted
every 10 capital reserves into 10 increased share capital. After this profit distribution, the total capital
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share increased from 471,900,000 shares to 943,800,000 shares. On November 17,2006, the corporation
completed registration for alternation of registered capital from Administration for Industry& Commerce
of Guizhou Province.
According to the 2010 annual plan for profit distribution audited and approved by the 2010 Annual General
Meeting, the corporation set the total share capital at the end of 2010- 943,800,000 shares as the baseline,
and distributed dividends (CNY 23 every 10 shares, tax inclusive) and bonus share (1 bonus share for
every 10 shares) to all shareholders. After this profit distribution, the total capital share increased from
943,800,000 shares to 1,038,180,000 shares. On October 27, 2011, the corporation completed registration
for alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the 2013 annual plan for profit distribution audited and approved by the 2013 Annual General
Meeting, the corporation set the total share capital at the end of 2013- 1,038,180,000 shares as the baseline,
and distributed dividends (CNY 43.74 every 10 shares, tax inclusive) and bonus share (1 share every 10
shares) to all shareholders. After this profit distribution, the total capital share increased from
1,038,180,000 shares to 1,141,998,000 shares. On August 5, 2014, the corporation completed registration
for alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
According to the 2014 annual plan for profit distribution audited and approved by the 2014 Annual General
Meeting, the corporation set the total share capital at the end of 2014- 1,141,998,000 shares as the baseline,
and distributed dividends (CNY 43.74 every 10 shares, tax inclusive) and bonus share (1 share every 10
shares) to all shareholders. After this profit distribution, the total capital share increased from 1,141,998,
000 shares to 1,256,197,800 shares. On October 29,2015, the corporation completed registration for
alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.
The corporate’s business scope includes: production and marketing of Moutai liquor and liquors of series,
production and marking of beverage, food and package materials, the development of anti-counterfeit
technology and the research and development of IT-related products, the service of management of hotel,
housing, catering, entertainment, bath and parking lot, and vehicle transporting (dangerous chemicals not
included) and maintenance.
3.2 Scope of consolidated financial statements
√Applicable □N/A
This year, eight subsidiaries were included in the consolidated financial statement, including Guizhou
Moutai Chiew Import And Export Co., Ltd., Guizhou Xijiu Sales Co., Ltd., Kweichou Moutai Group
Finance Co., Ltd., Moutai Custom Marketing (Guizhou) Co., Ltd., Beijing Friendship Messenger Trading
Co., Ltd., Kweichow Moutai Paris Trading, Guizhou Laymau Liquor Industry Co., Ltd. and Kweichow
Moutai-Flavor Liquor Marketing Co., Ltd.
4. Basis of preparation of financial statements
4.1 Basis of preparation of financial statements
The company has prepared its financial statements on a going concern basis.
4.2 Going concern
√Applicable □N/A
Since the date of this report, there are no events resulting in significant uncertainties over going concern
of the operation of this company for at least 12 months.
5. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√Applicable □N/A
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5.1 Statement of compliance with accounting standards for business enterprises
The financial statements have been prepared in accordance with the requirements of accounting standards
for business enterprises, which truly and completely reflect the Company’s financial status, operating
results, changes in shareholders’ equity, cash flow and other relevant information.
5.2 Accounting period
The accounting year of the Company is from 1 January to 31 December.
5.3 Operating cycle
√Applicable □N/A
The Company sets 12 months as an operating cycle.
5.4 Reporting Currency
The Company’s functional currency is CNY.
5.5 Accounting treatments of “Business combination involving entities under common control” and
“Business combination involving entities not under common control”
√Applicable □N/A
(1) Business combination involving entities under common control
For business combination involving entities under common control, assets and liabilities obtained by the
combining party through business combination shall be measured at the book value of the combined
company at the combination date. The capital reserve (stock premium or capital premium) is adjusted
according to the difference between the book value of net asset acquired through combination and the
book value of consideration paid for the combination (or total par value of shares issued). If the capital
reserve (stock premium or capital premium) is insufficient to offset, the retained earnings shall be adjusted.
(2) Business combination not under common control
For business combination involving entities not under common control, the combination cost is calculated
at fair value of the assets, liabilities incurred or assumed and the equity securities issued by the combining
party on combination date in the purpose of gaining the combined party’s control. For business
combination involving entities not under common control that are achieved step by step in multiple
exchanges and transactions, different approaches in accounting treatment are adopted for individual
financial statements and combination financial statements as follows.
A. For individual financial statements, the initial investment cost of the investment is calculated as the
sum of the book value of the combined party’s equity investment held by the combining party before the
combination date and the increased investment cost on the combination date. If the combined party’s
equity held by the combining party entails other comprehensive profits, then the profits (e.g. the part of
the difference of fair value of saleable financial assets that is calculated in capital reserves, the same for
the follows) shall be calculated as the investment profits of the current period.
B. For combination financial statements, the combined party’s equity held by the combining party before
the combination date shall be recalculated in fair value of the equity on combination date. The margin of
its fair value and book value shall be calculated into the investment profits of the current period. If the
combined party’s equity held by the combining party entails other comprehensive profits, then the profits
shall be calculated as the investment profits of the current period of the combination date. Fees,
commissions, and other transaction expenses and other relevant administration expense paid for
combination shall be calculated into current profits or losses as they occur. Transaction fees of equity
securities and debt securities paid by the combining party for combination consideration shall be included
in the initial measurement amount of equity or debt securities. The Company shall recognize the difference
of the combination costs in excess of the fair value of the net identifiable asset acquired from the acquiree
through combination as goodwill. After the review, if the combination costs are still in short of the fair
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value of the net identifiable asset acquired from the acquiree through combination, include the difference
in the current profits or losses.
5.6 Base of consolidated financial statements
√Applicable □N/A
The combination financial statements of the Company comply with ‘Norms for Enterprise Accounting
No.33- Combination Financial Statements’ and relevant regulations. At combination, all major internal
transactions and businesses within combination rage have been offset. The subsidy’s shareholder’s equity
that is not owned by the parent company shall be listed individually in the shareholder’s equity item in the
combination financial statements as minor shareholder equity. When composing combination financial
statements, necessary adjustments shall be made according to the Company’s accounting policies and
accounting period if the accounting policies and accounting period of the subsidiary corporation is
different from those of the Company. For subsidiary corporations acquired by combination under common
control, their operating results and cash flow shall be included in the financial statement in the current
period. Adjustments shall be made in relevant projects in the last year’s financial statements. The statement
entity formed after the combination remains since the ultimate controlling part takes control. For
subsidiary corporations acquired by combination not under common control, their operating results and
cash flow shall be included in the financial statement since the Company takes control.
5.7 Cash and cash equivalents
Cash equivalents include Cash on hand, Bank balances, other monetary funds, provision at central bank
retrievable at any time, deposits with other banks, placements with banks, buying securities and return
sale within the same industry and other investments featuring short investment period (generally due
within three months since purchase), high mobility, easy convertibility to cash with known amount and
low risk of value change.
5.8 Foreign operations and foreign currency translation
√Applicable □N/A
(1) Foreign currency operations
The amount in the foreign currency shall be translated into CNY currency according to the middle rate of
exchange rate in foreign currency market on the day of transaction. At the end of the period, the balance
of monetary foreign currency account shall be translated into CNY currency according to the middle rate
of exchange rate at the end of the period. The difference between the translated CNY balance and the
original book balance shall be calculated as exchange gains or lost, and recorded into items like ‘finance
expense’ and ‘construction in progress’. For non-monetary foreign currency projects calculated with
historical cost, the spot exchange rate on transaction day is employed, and the amount of reporting
currency stay unchanged.
(2) Foreign currency translation
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance sheet
date. Shareholders’ equity items, except for the item of “undistributed profits”, are translated at the spot
exchange rates on the dates when the transactions occur. Revenue and expense items in the income
statement are translated at the spot exchange rates on the dates when the transactions occur or at the
exchange rate determined in a systematical and reasonable method and similar to the spot exchange rate
on the day when the transactions occur. Differences arising from the above translations of foreign currency
financial statements are separately listed under other comprehensive income in the consolidated balance
sheet. Cash flow projects operated overseas shall be translated at approximate exchange rate of spot rate
on the date of cash flow. The amount of cash affected by fluctuations of exchange rate shall be separately
listed in the table of cash flow.
5.9 Financial instruments
√Applicable □N/A
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(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument contract, the related financial asset or
financial liability should be recognized. Transaction of financial assets by regular means shall be
recognized and derecognized according to accounting on transaction date. Regular means refers to gaining
or giving financial assets within the time period designated by law or regulations according to contract
items. Transaction date refers to the date that the Company promises to purchase or sell financial assets.
Derecognition of financial assets (or part of financial assets) shall be conducted- written off from the
account and asset liability list, if it meets following conditions: A. expiration of the right to acquire cash
flow of financial assets; B. Transfer of the right to obtain cash flow of financial assets, and (a) substantively
transferring almost all risks and rewards of the possession of financial assets, or (b) though substantively
neither transferring nor retaining almost all risks and rewards of the possession of financial assets,
relinquishing the control over the financial assets.
(2) Classification and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristics of
financial assets, the Company classifies financial assets into: financial assets measured at amortized cost;
financial assets measured at fair value with their changes included into other comprehensive income; and
financial assets measured at fair value with their changes included into current profits/losses. The
following measurement of financial assets depends on its classification.
A. Financial assets measured at amortized cost
The business model in which the Company manages financial assets measured at amortized cost aims to
receive contract cash flow. Furthermore, the characteristics of the contract cash flow of such financial
assets are consistent with basic borrowing and lending arrangements, which means that cash flow
generated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial interests, performs
subsequent measurement of them at amortized cost, and includes the gains or losses from derecognition,
changes or impairment of them into current profits/losses.
B. Financial assets at fair value at fair value through other comprehensive income
The financial assets that meet the following conditions are of this category: The business model in which
the Company manages such financial assets both aims to receive contract cash flow and for the purpose
of sale; furthermore, the characteristics of the contract cash flow of such financial assets are consistent
with basic borrowing and lending arrangements. The Company measure such financial assets at fair value
and include their changes into other comprehensive income, but record impairment losses or gains,
exchange gains or losses and interest income calculated in the effective interest method into current
profits/losses.
C. Equity instrument investments at fair value at fair value through other comprehensive incom
The Company irrevocably chooses to designate part of non-transactional equity instrument investments as
financial assets calculated with fair value whose changes are included in other comprehensive income,
and only relevant dividend income is calculated into current profits or losses. Changes in fair value are
recognized as other comprehensive income. When the financial asset is derecognized, cumulative gains
or losses should be transferred into retained earnings.
D. Financial assets at fair value at fair value through current profits/losses
For financial assets other than the above financial assets measured at amortized cost and financial assets
measured at fair value with their changes included into other comprehensive income, the Company
classifies them as financial assets measured at fair value with their changes included into current
profits/losses. In addition, at the initial recognition, the Company specifies partial financial assets as
financial assets measured at fair value with their changes included into current profits/losses, in order to
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eliminate or substantially reduce accounting mismatch. For such financial assets, the Company performs
subsequent measurement using fair value and records changes in the fair value into current profits/losses.
When and only when the Company changes its business mode for management of financial assets, will be
influenced relevant financial assets be reclassified. For financial assets measured at fair value with their
changes included into current profits/losses, relevant transaction fees are calculated into current profits or
losses; while for other financial assets, relevant transaction fees are included into the initial recognition
amount.
(3) Classification and measurement of financial liabilities
At their initial recognition, financial liabilities are divided into financial liabilities measured at amortized
cost and financial liabilities measured at fair value with their changes included into current profits or losses.
Financial liabilities meeting the following conditions are specified as financial liabilities measured at fair
value with their changes included into current profits or losses at initial measurement: (A) The
specification can eliminate or notably reduce account mismatch; (B) Based on risk management or
investment strategy from official documents, management and business evaluation are conducted on
financial liability combination or financial asset and financial liability combination on the basis of fair
value, which are reported to key management personnel inside the company; (C) The financial liabilities
include embedded derivatives that need to be separated.
The Company recognize the classification of financial liabilities at initial recognition. For financial
liabilities measured at fair value with their changes included into current profits or losses, relevant
transaction fees are calculated into current profits or losses; while for other financial liabilities, relevant
transaction fees are included into the initial recognition amount.
The subsequent measurement of financial liabilities depends on its classification:
A. Financial liabilities measured at amortized cost
For financial liabilities of this category, effective interest rate is adopted, and subsequent measurement is
performed at amortized cost.
B. Financial liabilities measured at fair value with their changes included into current profits or losses
Financial liabilities measured at fair value with their changes included into current profits/losses include
trading financial liabilities (including derivatives classified as financial liabilities) and the financial
liabilities specified to be measured at fair value with their changes included into current profits/losses at
the initial recognition.
(4) Offsetting of financial instruments
Financial assets and financial liabilities meeting the following conditions simultaneously shall be listed in
balance sheet in their net amounts after manual offset: The Company has the legal right to offset
recognized financial assets and financial liabilities and may execute the legal right currently and
simultaneously; The Company plans to settle or simultaneously encash the financial assets in net amounts
and pay off the financial liabilities.
(5) Impairment of financial assets
For financial assets measured at amortized cost and debt instrument investment measured at fair value
with its changes included into other comprehensive income, the Company recognizes the provision for
loss based on the expected credit loss.
When assessing expected credit loss, the Company considers reasonable and well-founded information on
past matters, present conditions and forecast of future economic conditions, sets the risk of default as the
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ANNUAL REPORT 2022
weight, and calculates the weighted amount of the difference of present value between the cash flow
according to the contract and the cash flow expected to be gained in practice.
On each balance sheet date, the Company calculates expected credit loss for financial instruments at
different stages. If the credit risk of financial instrument hasn’t substantially increased since the initial
recognition, then it is in the first stage, and the Company will measure the loss provision at the amount
equivalent to the expected credit loss for the next 12 months. If the credit risk has substantially increased
since the initial recognition without credit impairment, then the financial instrument is in the second stage,
and the Company will measure the loss provision at the amount equivalent to the expected credit loss for
the entire duration. If credit impairment has occurred since the initial recognition, then the financial
instrument is in the third stage, and the Company will measure the loss provision by the amount equivalent
to the expected credit loss for the entire duration.
For financial instruments featuring relatively low credit risk on asset balance date, the Company assumes
no substantial increase of credit risk since the initial recognition, and will measure the loss provision at
the amount equivalent to the expected credit loss for the next 12 months.
For financial instruments that are in the first stage or second stage, or featuring relatively low credit risk,
the Company will calculate the interest income according to the book balance and the effective interest
rate without deducting provision. For financial instruments that are in the third stage, the Company will
calculate the interest income according to the amortization cost and the effective interest rate, deducting
provision from the book balance.
For notes receivable and accounts receivable formed in daily operations like sale of product and provision
of labor, regardless of substantial financing component, the Company will measure the loss provision by
the amount equivalent to the expected credit loss for the entire duration
When the information about the expected credit loss of a single financial asset cannot be evaluated at a
reasonable cost, the Company shall divide the accounts receivables portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios. The foundation to determine
portfolio and provision means are as follow:
Bank acceptances portfolios Bank acceptances
Accounts receivable portfolios Accounts receivable of related party within range of merge
Other accounts retrievable Other accounts retrievable with lower credit risk (e.g. advances
portfolios to employees, deposit, security fund)
Other accounts retrievable Other accounts retrievable of related party within range of
portfolios merge
Other portfolios Other accounts apart from above portfolios
For accounts retrievable divided as portfolio and accounts retrievable formed in daily operations like sale
of product and provision of labor, the Company calculates the expected credit loss through the comparative
table of accounts retrievable and accounts retrievable age and the expected credit loss rate over the entire
duration based on the current situation and prediction of future economic situation consulting historical
credit loss experience. For other notes retrievable and accounts retrievable classified as portfolio, the
company will calculate the expected credit loss through the exposure at default and expected credit loss
rate for the following 12 months or over the entire duration based on the current situation and prediction
of future economic situation consulting historical credit loss experience.
The Company calculates provision withdrawn or reversed into profits/ losses of the current period. For
liability instruments in fair value whose changes are included in other comprehensive profits, the Company
calculates impairment losses or income into profits/ losses of the current period, while adjusting other
comprehensive profits.
(6) Transfer of financial assets
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If almost all the risks and rewards in respect of the ownership of the financial asset are transferred, the
financial asset shall be derecognized; if they are retained, the financial asset shall not be derecognized.
If almost all the risks and rewards in respect of the ownership of the financial asset are neither transferred
nor retained, the Company will conduct further evaluation: If the enterprise does not retain control over
the asset, then its financial assets shall be derecognized, and the rights and obligations produced or retained
during transfer shall be separately recognized as assets or liabilities. If the enterprise retains control over
the asset, then relevant financial assets shall be recognized according to the degree to which it continues
to be involved in the transferred financial assets, and relevant liabilities shall be recognized.
If the enterprise continues to involve itself by obligation of guarantee for transferred financial assets, then
the lower one of the book value and guarantee amount of financial assets on transfer date shall be selected
and recognized as the transferred financial assets. The relevant liabilities are determined as the sum of
guarantee amount and fair value of guarantee contract (usually the consideration received from obligation
of guarantee). The guarantee amount refers to the highest amount repayable among the considerations an
enterprise receives.
5.10 Inventories
√Applicable □N/A
(1) Classification of inventory
Inventories are classified as: raw materials, semi-finished goods, goods in progress, finished goods, and
revolving materials.
(2) Measurement method of dispatched inventories
The planned cost is used for daily accounting of raw materials, and the difference of material cost should
be carried forward on a monthly basis to adjust the dispatch cost into the actual cost. The semi-finished
goods and finished goods shall be accounted according to the actual cost, and the moving weighted average
method shall be used in accounting for costs of sales.
(3) Basis to determine net realizable values of inventories and method of write-down of inventories
At the end of the period, inventory is measured according to the lower of cost and net realizable value.
The difference between cost of one inventory and net realizable value is higher than the write-down of
inventories.
(4) Inventory system
The Company adopts perpetual inventory system
(5) Amortization method of low-cost consumables and packing materials
One-time amortization method is adopted.
5.11 Long-term equity investments
√Applicable □N/A
(1) Judgment criteria of control and significant influence
The majority of long-term equity investments of the Company are investments to subsidiaries. Subsidiaries
refer to invested parties upon which the Company can exert control. Control refers to the fact that the
investing party has power over the invested party, enjoys variable returns and can influence the return
amount by exercising power over the invested party. The term ‘significant influence’ refers to the power
to participate in decision-making on the financial and operating policies of the investee, but with no control
or joint control over the formulation of these policies.
(2) Determination of the investment cost
A. Long-term equity investments resulting from combination
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For business combination under common control, for the long-term equity investments obtained by cash
paid, non-monetary assets paid or assumed liabilities as consideration by the acquirer, on the merger date,
the initial investment cost of long-term equity investment shall be taken as the share of the owner’s equity
of the investee in the book value of the final control party’s consolidated financial statements. According
to the margin amount between initial investment cost and cash payment, non-monetary asset paid or
assumed liabilities, capital reserve should be written down. If the capital reserve is not sufficient to be
written down, then the retained earnings shall be written down. For investments obtained by equity
securities issued by the acquirer, on the merger date, the initial investment cost of long-term equity
investment shall be taken as the share of the owner’s equity of the investee in the book value of the final
control party’s consolidated financial statements. Setting total book value of issued shares as share capital,
according to the difference between the initial investment cost and total book value of issued shares, capital
reserve shall be written down; if the capital reserve is not sufficient to be written down, then the retained
earnings shall be written down.
For business combination not under common control, on the merger date, the combination cost according
to ‘Business Accounting Norms No.20- Business combinations’ should be calculated as the initial
investment cost of long-term equity investment.
B. Other long-term equity investments not resulting from combination
For the long-term equity investments obtained by cash paid, the Company recognizes their fair value as
the initial investment costs. For the long-term equity investments acquired by the issue of equity securities,
the initial investment cost shall be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profits and losses
The investments of subsidiaries are measured with the cost method, and shall be adjusted according to
equity law according to initial investment cost when making the combination financial statements. Costs
shall be added or retrieved in adjustment of long-term equity investments. The cash dividends or profits
declared by the investee shall be recognized as the investment income of the current period.
For long-term equity investments measured under the equity method, if the initial investment costs are
higher than the investor’s attributable share of the fair value of the investee’s identifiable net assets, initial
investment cost shall be calculated as long-term equity investment cost; if the initial investment costs are
lower than the investor’s attributable share of the fair value of the investee’s identifiable net assets, the
margin shall be calculated into profits/ losses of the current period, and long-term equity investment cost
shall be increased. The Company shall, according to the shares of net profits and other comprehensive
income realized by the investee that shall be enjoyed or borne by the Company, recognize the profit and
loss on the investments of the current period. When recognizing the net losses of the invested party, the
losses should be limited to zero at least according to book value and other long-term equities of long-term
equity investment. Nonetheless, if the Company bears the obligation for additional losses and meets
conditions to recognize expected liabilities, then it shall continue to recognize investment losses and
calculate it into liabilities. When recognizing the net profits and losses and other comprehensive income
of the investee that the Company shall enjoy or bear, the Company shall calculate the part is enjoys or
bears according to share-holding ratio on the basis that the Company’s share-holding ratio remains the
same, and include the part directly into share-holders’ equities, and make adjustments to book value of
long-term equity investments. For the part of the interest or dividend from the invested party that is
favorable for declaration and distribution, the book value of long-term equity investments shall be reduced
accordingly. For unachieved internal transaction profits and losses between the Company and the invested
party, the part of the Company shall be calculated according to the ratio that should be shared or born by
the company and be offset, on the basis of which the recognition of investment profits/ losses shall be
conducted. The part of asset impairment incurred in internal transaction loss shall not be offset.
5.12 Investment properties
A. When adopting cost model:
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Method of depreciation or amortization
The company shall deduct expected net residual value (residual value rate: 5%) and cumulative
impairment provision from the cost of investment property, and conduct depreciation or amortization
using straight-line method within the service life (20 years).
5.13 Fixed Asset
A. Recognition of fixed assets
√Applicable □N/A
Fixed assets refer to tangible assets with relatively high unit value, which are held for the purpose of
producing commodities, providing services, renting or business management with useful life exceeding
one accounting year.
B. Method of depreciation
√Applicable □N/A
Depreciation Estimated useful Residual value Annual
Category
method life (Year) rate depreciation rate
Straight-line
Buildings 20 5% 4.75%
method
Machinery and Straight-line
10 5% 9.5%
equipment method
Electronic
Straight-line
equipment and 5 5% 19%
method
others
Straight-line
Vehicles 5 5% 19%
method
After January 1st, 2014, the amount less than CNY 1,000,000 spent on newly-purchased equipment and
apparatus for the special use of R&D shall be calculated into cost of the current period.
After January 1st, 2014, the amount more than CNY 1,000,000 spent on newly-purchased equipment and
apparatus for the special use of R&D, shall be depreciated according to the following table:
Asset category Estimated useful life (Year)
Machine equipment 6 years
Electronic equipment 2 years
C. Method of impairment test and provision for impairment for fixed assets
At the end of the period, check on fixed assets shall be implemented item by item. If the recoverable
amount is lower than book value because of outdated technology, impairment or long-term idle condition,
the Company shall calculate the difference between recoverable amount and book value as the provision
for impairment for fixed assets. Provision for impairment for fixed assets shall be conducted in terms of
individual asset.
5.14 Construction in progress
√Applicable □N/A
Accounting method for construction in progress: each construction in progress is initially measured at the
actual cost.
(1) The construction in progress shall be transferred to fixed assets in the following conditions:
a. The acquired fixed assets are ready for use;
b. The physical construction of the construction in progress has been completed or substantially completed;
c. The acquired fixed assets conform to the design requirements or contract requirements, they can be used
normally, and it needs little or no expenditure on the acquired construction in progress.
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(2) The new construction, reconstruction and expansion projects of the company’s fixed assets are
included in the construction in progress according to the actual expenditure incurred. Borrowing interest
and foreign exchange gains and losses incurred in the construction of borrowed loans can be capitalized
and included in the cost of construction in progress before the fixed assets reach the intended usable
state if the fixed assets meet the capitalization conditions.
(3) On the balance sheet date, the construction in progress shall be checked by items. If there is evidence
that the construction in progress is impaired, the provision for impairment shall be made based on the
difference between the recoverable amount and the carrying amount.
The main factors in making provision for impairment of construction in progress are as follows:
A. Suspended construction for a long time and is not expected to restart construction in the next three
years;
B. The constructed projects are backward in terms of technology and performance, and it is uncertain for
the economic benefits brought to the enterprise;
C. Other circumstances sufficient to prove that the construction in progress has been impaired.
5.15 Borrowing costs
√Applicable □N/A
The principle to confirm the capitalization of borrowing costs is as follows: the borrowing costs such as
interest on borrowings, amortization of discounts or premiums, auxiliary costs, and exchange differences
due to foreign currencies incurred by the Company due to borrowings, which can be directly attributed to
the acquisition & construction or production of assets that meet the capitalization conditions, shall be
capitalized and included in the cost of the asset; other borrowing costs shall be recognized as expenses in
the period in which they are incurred and included in profit or loss.
Determination method of capitalization period:
(1) Begin capitalization: borrowing costs can only begin to be capitalized if the following three
conditions are all met simultaneously
A. Asset expenditure has occurred;
B. The borrowing costs have been incurred;
C. The acquisition & construction or production activities to make the asset ready for its intended use or
sale have begun.
(2) Suspension of capitalization: if the acquisition and construction of fixed assets is suspended abnormally,
and the suspension lasts for more than 3 months, the capitalization of borrowing costs will be suspended,
and the borrowing costs incurred during the interruption period will be recognized as current expenses
until the assets are acquisition and construction activities resumed.
(3) Stop capitalization: when the acquired and constructed fixed assets reach the intended usable state,
stop the capitalization of borrowing costs.
The calculation method of the capitalized amount of borrowing costs:
(1) If a special loan is borrowed for the acquisition, construction or production of assets that meet the
capitalization conditions, the interest expense actually incurred in the current period of the special loan
shall be determined after deduction of the interest income obtained by depositing the unused loan funds
in the bank or by temporary investment;
(2) If general borrowings are occupied for the purpose of acquisition, construction or production of
assets that meet the capitalization conditions, the Company shall calculate and determine amount of
interest of general borrowings to be capitalized based on weighted average number of asset expenditures
over which the accumulated asset expenditure exceeds the special borrowings multiplied by the
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capitalization rate of the occupied general borrowings. The capitalization rate is calculated based on the
weighted average rate of borrowings, and the auxiliary expenses incurred by general borrowings shall
not be capitalized.
5.16 Intangible assets
(1) Valuation method, service life, impairment test
√Applicable □N/A
A. Pricing of intangible assets: intangible assets are initially measured at the cost when they are actually
acquired. For the intangible assets developed by the Company, the expenditures in the research stage shall
be included in the current profit and loss when incurred; the expenditures in the development stage shall
be recognized as intangible assets (patented technology and non-patented technology) if the following
conditions are all met simultaneously:
a. It is technically feasible to complete the intangible asset so that it can be used or sold;
b. There is intention to complete the intangible asset for use or sales.
c. The usefulness of methods for intangible assets to generate economic benefits include that there is a
potential market for the products manufactured by applying the intangible assets or that there is a potential
market for the intangible assets themselves;
d. It is able to finish the development of the intangible assets, and able to use or sell the intangible assets,
with the support of sufficient technologies, financial resources and other resources.
e. The expenditure attributable to the intangible asset during its development phase can be measured
reliably.
B. Amortization of intangible assets: The intangible assets are amortized in the straight-line method over
the beneficial years from the month of acquisition, and intangible assets with indefinite useful lives are
not amortized.
C. On the balance sheet date, each intangible asset should be checked, and if there is any sign of
impairment, an impairment provision should be made based on the difference between the recoverable
amount and the carrying amount.
5.17 Long-term deferred and prepaid expenses
√Applicable □N/A
Long-term deferred and prepaid expenses are expenses that have occurred but should be borne by the
current and subsequent periods for a period of more than one year.
5.18 Payroll and employee benefits payable
The Company’s employee benefits refer to various forms of remuneration and compensation given by the
Company to the employees for obtaining services provided by employees or for termination of labor
relations, including short-term benefits, post-employment benefits, termination benefits and other long-
term employee benefits. The benefits provided by the Company to employees’ spouses, children,
dependents, survivors of deceased employees and other beneficiaries also belong to employee benefits.
(1) Accounting treatment of short-term benefits
√Applicable □N/A
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the end
of the annual reporting period in which the employee provides relevant services, excluding the
compensation for the employment termination. The Company’s short-term remuneration specifically
includes: employee wages, bonuses, allowances and subsidies, employee welfare expenses, social
insurance premiums such as medical insurance premiums, work-related injury insurance premiums and
maternity insurance premiums, housing provident fund, labor union funds and employee education funds,
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short-term paid absences, short-term profit-sharing plans, non-monetary benefits, and other short-term
benefits.
During the accounting period in which the employees provide services, the Company recognizes the actual
short-term benefits as liabilities, and includes the current profits and losses or relevant asset costs
according to the beneficiaries of the services provided by the employees. Non-monetary short-term
benefits shall be measured at fair value.
(2) Accounting treatment of post-employment benefits
√Applicable □N/A
Post-employment benefits refer to various forms of benefits provided by the Company in order to obtain
the services provided by the employees after the employees retire or terminate the labor relationship with
the enterprise.
Defined contribution plan: The contributions to be paid to a separate entity in exchange for the services
provided by employees during the accounting period on the balance sheet date are recognized as employee
compensation liabilities, and are included in the current profit and loss or related asset costs.
(3) Accounting treatment of termination benefits
√Applicable □N/A
Employee benefits liabilities shall be recognized and included into profit or loss for the current period on
the earlier date of the two following circumstances:
a. When the Company is not able to withdraw the benefits from termination of employment or resignation
persuasion unilaterally;
b. When the Company recognizes costs and fees relevant to reforming the termination benefits payment.
(4) Accounting treatment method of other long-term employee benefits
□Applicable √N/A
5.19 Revenue
(1) Accounting policies adopted for revenue recognition and measurement
√Applicable □N/A
Revenue refers to the total inflow of economic benefits that are formed in the daily activities of the
Company and will lead to an increase in owners’ equity and have nothing to do with the capital invested
by the owners.
When the Company has fulfilled its performance obligations in the contract, that is, recognized the
Revenue when the customer obtains control over the relevant commodities, which means that the customer
is able to dominate the use of the commodity and obtain almost all economic benefits from it. After the
Company delivers the product to the customer as agreed in the contract, the Revenue is recognized based
on the net amount after deducting the consideration payable to the customer. The Company recognizes the
amount of contract consideration that has been collected from the customer as a contract liability before
entering into a contract with the customer, having received the order but not delivering the product to the
customer.
(2) Differences in accounting policies for Revenue recognition due to the adoption of different business
models for similar businesses
□Applicable √N/A
5.20 Government grants
√Applicable □N/A
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Government grants refer to the monetary or non-monetary assets that the Company obtains from the
government for free, but does not include the capital invested by the government as the owner of the
Company. Government grants are divided into asset-related government grants and income-related
government grants. Government grants can only be confirmed if they meet the following conditions at the
same time:
A. The company can meet the conditions attached to government grant;
B. The company can receive government grant.
(1) Judgment basis and accounting treatment method of government grants related to assets
Government grants related to assets shall be written off against the carrying amount of related assets or
recognized as deferred income. If government grants related to assets are recognized as deferred income,
they shall be included in profit or loss in stages within the useful life of the relevant assets in a reasonable
and systematic manner. Government grants measured at the nominal amount are directly included in the
current profit and loss. If the relevant assets are sold, transferred, scrapped or damaged before the end of
their useful life, the undistributed balance of relevant deferred income shall be transferred to the profit and
loss of the current period of asset disposal.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income shall be dealt with according to the following circumstances:
A. If it is used to compensate the Company’s relevant expenses or losses in future periods, it should be
recognized as deferred income and included into the current profit and loss or written off of the related
costs when the relevant expenses, losses are recognized;
B. If it is used to compensate the Company’s relevant expenses or losses incurred, it is directly included
into the current profit and loss or written off of the related costs.
(3) Government grants related to the daily activities of the Company shall be included in other income or
written off relevant costs according to the nature of economic business. Government grants unrelated to
the daily activities of the Company shall be included in non-operating income and expenditure.
5.21 Deferred income tax assets/Deferred income tax liabilities
√Applicable □N/A
On the balance sheet date, according to the deductible temporary differences and taxable temporary
differences of asset and liability items, the applicable tax rate is used to calculate the amount of deferred
tax assets and deferred tax liabilities.
5.22 Lease
(1) Accounting treatment of operating lease
□Applicable √N/A
(2) Accounting treatment of financial lease
□Applicable √N/A
(3) Determination and accounting treatment of lease under the new lease standards
√Applicable □N/A
A. As the lessee
On the contract start date, the Company evaluates whether the contract is a lease or includes a lease. If one
party in the contract transfers the right to control the use of one or more identified assets within a certain
period in exchange for consideration, the contract is a lease or includes a lease. In order to determine
whether the contract transfers the right to control the use of the identified asset for a certain period, the
Company evaluates whether the customer in the contract is entitled to receive substantially all the
economic benefits arising from the use of the identified asset during the period of use, and has the right to
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dominate the use of the identified asset during the period of use. The general accounting treatment is as
follows:
On the commencement date of the lease term, the Company recognizes its right to use the leased asset
during the lease term as a right-of-use asset, including the initial measurement amount of the lease
liabilities; for the lease payments paid on or before the commencement date of the lease term, if there is a
lease incentive, the following items should be deducted, including the relevant amount of the lease
incentive that has been enjoyed, the initial direct expenses incurred by the lessee, and the costs of the
lessee for dismantling and removing the leased asset, restoring the site where the leased asset is located,
or restoring the leased asset to the state agreed in the lease terms.
On the commencement date of the lease term, the Company recognizes the present value of unpaid lease
payments as lease liabilities, excluding short-term lease and low-value assets lease. When calculating the
present value of lease payments, the Company takes the interest rate implicit in the lease as the discount
rate; if the interest rate implicit in the lease cannot be determined, the incremental borrowing rate of the
lessee is used as the discount rate.
The Company subsequently adopts the straight-line method to depreciate the right-of-use assets, calculates
the interest expenses of the lease liabilities in each period of the lease term, and includes them in the
current profit and loss, unless otherwise stipulated to be included in the cost of the relevant assets. Variable
lease payments that are not included in the measurement of lease liabilities are included in the current
profit and loss when they are actually incurred, unless otherwise stipulated to be included in the cost of
the relevant asset.
The Company does not recognize right-of-use assets and lease liabilities for short-term lease and low-
value asset lease. In each period of the lease term, it is included in the relevant asset cost or current profit
and loss on a straight-line basis.
B. As the lessor
As a lessor, a financial lease refers to substantially transfer almost all the risks and rewards related to the
ownership of the leased asset on the lease commencement date, and all other leases are operating leases.
a. Rental income from operating leases is recognized as current profit and loss on a straight-line basis over
each period of the lease term.
b. On the start date of the lease term, the Company recognizes the finance lease receivables for the finance
lease, and derecognizes the finance lease assets. During the initial measurement of the finance lease
receivables, the net investment in the lease is taken as the entry value of the finance lease receivables. The
net lease investment is the sum of the unguaranteed residual value and the present value of the lease
receipts not yet received at the commencement date of the lease term which is discounted at the interest
rate implicit in the lease.
5.23 Changes in significant accounting policies and estimates
(1) Changes in significant accounting policies
□Applicable √N/A
(2) Changes in significant accounting estimates
□Applicable √N/A
(3) The impacts arising from adoption of new accounting standards or interpretation on the balance sheet as
at 1 January 2022
□Applicable √N/A
5.24. Others
□Applicable √N/A
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6. Taxation
6.1 The principal kinds of taxes and related tax rates:
The principal kinds of taxes and related tax rates:
√Applicable □N/A
Tax Tax basis Tax rate
Calculation of output tax and input tax on
VAT 13%
product sales revenue
Taxable price and sales volume of sales
Consumption tax 20%、CNY 0.5 /500ml
revenue of alcoholic products
City construction and
Turnover tax payable 7%
maintenance tax
Enterprise income tax Taxable income 25%
Education surcharges Turnover tax payable 3%
Local education
Turnover tax payable 2%
surcharges
6.2 Preferential taxation
□Applicable √N/A
6.3 Others
□Applicable √N/A
7. Notes to Items of the Consolidated Financial Statements
7.1 Cash and Cash equivalents
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Cash on hand 12,740.70 9,500.00
Bank balances 58,274,305,992.53 51,810,234,107.11
Other monetary fund
Total 58,274,318,733.23 51,810,243,607.11
including: total amount deposited
29,007,671.59 20,665,732.96
abroad
Cash and cash equivalents with restrictions on use
Item Closing balance Opening balance
Statutory deposit reserve with the
6,418,765,887.71 6,381,004,565.81
central bank
7.2 Loans to banks and other financial institutions
Unit: CNY
Item Closing balance Opening balance
Deposits with other banks 116,176,621,670.01 135,071,807,332.94
Loans to banks and other financial
institutions
Less: impairment 3,910,115.42 4,519,554.91
Carrying amount 116,172,711,554.59 135,067,287,778.03
Loans to banks and other financial institutions with restrictions on use
Item Closing balance Opening balance
Deposits with other banks that can 14,000,000,000.00 1,000,000,000.00
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not be withdrawn at any time
7.3 Notes receivable
A. Categories of notes receivable
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Bank acceptances 105,453,212.00
Total 105,453,212.00
B. Endorsed or discounted notes receivable that is not yet matured as at the end of the reporting period
□Applicable √N/A
C. Disclosed by bad debt provision methods
□Applicable √N/A
D. Details of bad debt provision
□Applicable √N/A
7.4 Accounts receivable
A. Disclosed by aging
√Applicable □N/A
Unit: CNY
Aging Book balance at the end of the reporting period
Within 1 year 20,937,144.00
Sub-total within 1 year 20,937,144.00
1-2 years
2-3 years
More than 3 years
3-4 years
4-5 years
More than 5 years 2,681,973.01
Total 23,619,117.01
B. Disclosed by bad debt provision methods
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Carrying Carrying
Proportion Proportion amount Proportion Proportion amount
Amount Amount Amount Amount
(%) (%) (%) (%)
Bad debt
provision
assessed
individually
Bad debt
provision
23,619,117.01 100 2,681,973.01 11.36 20,937,144.00 3,097,678.25 100.00 3,097,678.25 100.00
assessed by
groups
Including:
bad debt
provision 23,619,117.01 100 2,681,973.01 11.36 20,937,144.00 3,097,678.25 100.00 3,097,678.25 100.00
assessed by
groups
Total 23,619,117.01 / 2,681,973.01 / 20,937,144.00 3,097,678.25 / 3,097,678.25 /
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Bad debt provision assessed by groups:
√Applicable □N/A
Items assessed by groups: aging of accounts
Unit: CNY
Closing balance
Name
Accounts receivable Bad debt provision Proportion (%)
Within 1 year 20,937,144.00
1-2 years
2-3 years
3-4 years
4-5 years
More than 5 years 2,681,973.01 2,681,973.01 100.00
Total 23,619,117.01 2,681,973.01 11.36
Recognition criteria and explanations for bad debt provision assessed by groups:
□Applicable √N/A
Refer to the disclosure of other receivables if bad debt provision is made based on the general ECL
model:
□Applicable √N/A
C. Details of bad debt provision
√Applicable □N/A
Unit: CNY
Change in the current period
Opening Closing
Category Recovery Write- Other
balance Provision balance
or reversal off changes
Bad debt provision
3,097,678.25 415,705.24 2,681,973.01
assessed by groups
Total 3,097,678.25 415,705.24 2,681,973.01
Reversal or recovery of significant amount of provision for bad debts in the current period:
□Applicable √N/A
D. Accounts receivable written off as at the end of the reporting period
□Applicable √N/A
E. Top five accounts receivable based on debtors
√Applicable □N/A
Unit: CNY
Proportion to total
Closing
closing balance of
Entity Closing balance balance of bad
accounts receivable
debt provision
(%)
Sinopec Easy Joy Sales Co., Ltd. 20,937,144.00 88.65
Yunnan Kunming Yuanwei
847,620.00 3.59 847,620.00
Economic and Trade Co., Ltd.
Tianjin Feimeng Industrial Co., Ltd. 784,900.00 3.32 784,900.00
Shanghai International Famous
375,776.00 1.59 375,776.00
Liquor Development Co., Ltd.
Shenzhen Friendship Shopping Mall 194,200.00 0.82 194,200.00
Total 23,139,640.00 97.97 2,202,496.00
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7.5 Prepayments
A. Aging analysis of prepayments
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 684,728,825.92 76.31 377,984,374.85 97.14
1-2 years 204,055,296.64 22.74 1,575,835.77 0.40
2-3 years 401,806.42 0.04 1,343,437.85 0.35
More than 3
8,191,233.29 0.91 8,206,192.81 2.11
years
Total 897,377,162.27 100.00 389,109,841.28 100.00
B. Top five prepayments based on the payers
√Applicable □N/A
Proportion to the total
Entity Closing balance closing balance of
prepayment (%)
Renhuai Municipal People’s Government 840,810,000.00 93.69
Xishui County People’s Government 37,513,045.06 4.18
Sinopec Sales Co., Ltd. Guizhou Zunyi Petroleum
4,036,718.27 0.45
Branch
Aolin Huatian Exhibition (Tianjin) Co., Ltd. 1,765,926.61 0.20
Shenzhen Weiye Decoration Group Co., Ltd. 1,701,695.56 0.19
Total 885,827,385.50 98.71
7.6 Other receivables
A. Presentation of items
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 31,818,622.84 33,158,974.32
Total 31,818,622.84 33,158,974.32
B. Other receivables
a. Aging analysis
√Applicable □N/A
Unit: CNY
Aging Book balance at the end of the reporting period
Within 1 year 27,748,377.88
Subtotal of within 1 year 27,748,377.88
1-2 years 2,154,433.82
2-3 years 25,223.08
3-4 years 984,867.43
4-5 years 967,917.47
More than 5 years 37,951.22
Total 31,918,770.90
b. Details of classification by nature
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√Applicable □N/A
Unit: CNY
Book balance as at the end of
Nature of payment Book Opening balance
the period
Petty cash 11,519,390.69 16,271,192.50
Current Account 20,399,380.21 22,111,815.70
Total 31,918,770.90 38,383,008.20
c. Details of bad debt provision
√Applicable □N/A
Unit: CNY
Stage I Stage II Stage III
Bad debt provision 12-month Lifetime ECL Lifetime ECL Total
ECL (not impaired) (impaired)
As at 1 January 2022 81,167.43 5,142,866.45 5,224,033.88
Changes due to financial
instruments recognised as
at 1 January 2022
--Transfer to stage II -25,626.74 25,626.74
--Transfer to stage III
--Reverse to stage II
--Reverse to stage I
Provision 6,858.28 42,298.37 49,156.65
Reversal 56,898.95 2,494,913.52 2,551,812.47
Elimination
Write-off 2,621,230.00 2,621,230.00
Other changes
As at 31 December 2022 5,500.02 94,648.04 100,148.06
Explanations on significant changes in the book balance of other receivables where there are changes in
provision for the current period:
□Applicable √N/A
d. Details of bad debt provision
√Applicable □N/A
Unit: CNY
Changes in the current period
Opening Closing
Category Recovery or Other
balance Provision Write-off balance
reversal changes
Bad debt
provision
5,224,033.88 49,156.65 2,551,812.47 2,621,230.00 100,148.06
assessed by
aging groups
Total 5,224,033.88 49,156.65 2,551,812.47 2,621,230.00 100,148.06
e. Other receivables written off as at the end of the current period
√Applicable □N/A
Unit: CNY
Item Amount of write-off
Actual write-off of other receivables 2,621,230.00
Significant write-off of other receivables:
□Applicable √N/A
Explanations on write-off of other receivables:
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□Applicable √N/A
f. Top five other receivables based on debtors
√Applicable □N/A
Unit: CNY
Proportion
to the total
closing
Closing Bad debt
Entity Nature Aging balance of
balance provision
other
receivables
(%)
China Securities Depository and
Current Within 1
Clearing Co., Ltd. Shanghai 3,000,000.00 9.4
payment year
Branch
Chinese Research Academy of Current Within 1
1,520,000.00 4.76
Environmental Sciences payment year
Xinghe Industry (Shenzhen) Co., Current
869,520.12 1-2 years 2.72
Ltd. payment
Guiyang Urban Construction Current
801,039.00 3-4 years 2.51
Investment (Group) Co., Ltd. payment
China Construction Bank Co., Current Within 1
716,115.79 2.24
Ltd., Renhuai Sub-branch payment year
Total / 6,906,674.91 / 21.63
A. Receivables of China Securities Depository and Clearing Corporation Limited Shanghai Branch are
the service charges for distribution of cash dividends.
B. Receivables of Chinese Research Academy of Environmental Sciences are the prepaid COP15 forum
fee for Moutai ecological civilization practice exchange and publicity.
C. The receivables of Xinghe Industrial (Shenzhen) Co., Ltd. are the rent deposit paid by Kweichow
Moutai Sales Co., Ltd., a controlling subsidiary of the Company.
D. The receivables of Guiyang Urban Construction Investment (Group) Co., Ltd. are the rent deposit
paid by Kweichow Moutai Sales Co., Ltd., a controlling subsidiary of the Company.
E. The receivables of China Construction Bank Co., Ltd., Renhuai Sub-branch are the service charges
refundable by Kweichow Moutai Group Finance Co., Ltd., a controlling subsidiary of the Company.
7.7 Inventories
A. Categories
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Provision for Provision for
inventories inventories
Item
Book balance /impairment provision Carrying amount Book balance /impairment provision Carrying amount
of contract of contract
performance costs performance costs
Raw
3,917,462,473.00 3,917,462,473.00 4,019,538,465.82 4,019,538,465.82
materials
Work in
17,311,447,077.83 1,283,984.83 17,310,163,093.00 14,310,650,087.51 1,283,984.83 14,309,366,102.68
progress
Finish
1,814,110,748.17 1,814,110,748.17 1,319,352,631.84 1,319,352,631.84
goods
Semi-
finished 15,782,637,922.07 15,782,637,922.07 13,746,107,884.49 13,746,107,884.49
goods
Total 38,825,658,221.07 1,283,984.83 38,824,374,236.24 33,395,649,069.66 1,283,984.83 33,394,365,084.83
109 / 158
ANNUAL REPORT 2022
B. Provision for inventories and impairment provision of contract performance costs
√Applicable □N/A
Unit: CNY
Increase in the current Decrease in the current
period period Closing
Item Opening balance
Reversal or balance
Provision Others Others
elimination
work in progress 1,283,984.83 1,283,984.83
Total 1,283,984.83 1,283,984.83
7.8 Current portion of non-current assets
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Current portion of other non-current
2,123,601,333.33
assets
Total 2,123,601,333.33
7.9 Other current assets
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
VAT not deducted at the end of the
159,246,337.97 67,014,310.91
reporting period
Prepaid income tax 1,597,336.45 4,513,249.83
Total 160,843,674.42 71,527,560.74
7.10 Loans and advances
Unit: CNY
Item Closing balance Opening balance
Loans and advances 4,134,744,407.92 3,425,175,000.00
Item Closing balance Opening balance
Total amount of loans and
4,240,663,874.72 3,513,000,000.00
advances
Less: provision for loan
105,919,466.80 87,825,000.00
impairment
Carrying amount of loans and
4,134,744,407.92 3,425,175,000.00
advances
7.11 Debt investment
A. Debt investment
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Provision Provision
Item Book Carrying Book Carrying
for for
balance amount balance amount
impairment impairment
Guiyang GYB
Financial
20,153,150.71 11,430.00 20,141,720.71 20,153,150.69 11,340.00 20,141,810.69
Leasing Co.,
LTD.
110 / 158
ANNUAL REPORT 2022
Bank of
Guiyang Co. 60,323,095.93 34,290.00 60,288,805.93 50,232,273.98 28,350.00 50,203,923.98
Ltd.
Bank of
Guizhou Co., 300,425,342.45 170,550.00 300,254,792.45 100,179,589.04 56,700.00 100,122,889.04
Ltd.
Total 380,901,589.09 216,270.00 380,685,319.09 170,565,013.71 96,390.00 170,468,623.71
B. Provision for impairment
√Applicable □N/A
Unit: CNY
Stage I Stage II Stage III
Provision for impairment 12-month Lifetime ECL Lifetime ECL Total
ECL (not impaired) (impaired)
As at 1 January 2022 96,390.00 96,390.00
Balance at 1 January 2022 in
the current period
--Transfer to stage II
--Transfer to stage III
--Reverse to stage II
--Reverse to stage I
Provision 119,880.00 119,880.00
Reversal
Elimination
Write-off
Other changes
As at 31 December 2022 216,270.00 216,270.00
Explanations on significant changes in the book balance of debt investments where there are changes in
provision for the current period:
□Applicable √N/A
7.12 Investment properties
Measurement of investment properties
A. Investment properties measured at cost
Unit: CNY
Construction in
Item Buildings Land use rights Total
progress
I. Cost
1. Opening balance 6,023,231.76 6,023,231.76
2. Increase in the current
462,926.63 462,926.63
period
(1) Purchases
(2) Transfer from
inventories\fixed
462,926.63 462,926.63
assets\construction in
progress
(3) Increase arising from
business combination
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
4. Closing balance 6,486,158.39 6,486,158.39
111 / 158
ANNUAL REPORT 2022
Ⅱ. Accumulated depreciation and amortization
1. Opening balance 780,800.01 780,800.01
2. Increase in the current
370,311.39 370,311.39
period
(1) Depreciation or
306,632.96 306,632.96
amortization
(2) Transfer from
inventories\fixed
63,678.43 63,678.43
assets\construction in
progress
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
4. Closing balance 1,151,111.40 1,151,111.40
III. Provision for impairment
1. Opening balance
2. Increase in the current
period
(1) Provision
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
4. Closing balance
IV. Carrying amount
1. Carrying amount at the end
5,335,046.99 5,335,046.99
of the reporting period
2. Carrying amount at the
beginning of the reporting 5,242,431.75 5,242,431.75
period
B. Investment property of which certificates of title have not been obtained
□Applicable √N/A
Others
□Applicable √N/A
7.13 Fixed assets
A. Presentation of items
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Fixed assets 19,742,622,547.86 17,472,173,182.85
Disposal of fixed assets
Total 19,742,622,547.86 17,472,173,182.85
B. Fixed assets
a. Details of fixed assets
√Applicable □N/A
Unit: CNY
112 / 158
ANNUAL REPORT 2022
Electronic
Machinery and
Item Buildings Vehicles equipment and Total
equipment
others
I. Cost:
1. Opening Balance 24,498,398,586.26 2,033,264,638.55 308,531,335.77 818,407,901.93 27,658,602,462.51
2. Increase in the current
period 3,142,422,089.08 416,462,842.38 87,449,550.07 90,002,914.92 3,736,337,396.45
(1) Additions 1,232,789.28 519,752.21 70,574,088.07 15,837,786.25 88,164,415.81
(2) Transfer from
construction in progress 3,139,418,666.28 415,943,090.17 16,875,462.00 74,164,496.43 3,646,401,714.88
(3) Increase arising
from business combination
(4) Foreign currency
translation 1,770,633.52 632.24 1,771,265.76
3. Decrease in the current
period 49,858,357.88 6,648,314.87 11,337,546.87 9,757,197.55 77,601,417.17
(1) Disposal or
retirement
49,395,431.25 6,648,314.87 11,337,546.87 9,757,197.55 77,138,490.54
(2) Foreign currency
translation
(3) Transfer to
investment properties 462,926.63 462,926.63
(4) Transfer to
construction in progress
4. Closing balance 27,590,962,317.46 2,443,079,166.06 384,643,338.97 898,653,619.30 31,317,338,441.79
II. Accumulated depreciation
1. Opening balance 7,968,617,243.72 1,360,587,770.37 210,631,424.07 645,525,624.70 10,185,362,062.86
2. Increase in the current
period 1,196,002,584.37 150,017,334.75 33,489,751.92 64,180,332.38 1,443,690,003.42
(1) Provision 1,195,581,459.91 150,017,334.75 33,489,751.92 64,179,638.96 1,443,268,185.54
(2) Foreign currency
translation 421,124.46 693.42 421,817.88
3. Decrease in the current
period 29,701,707.27 5,835,069.72 10,652,470.54 9,214,141.62 55,403,389.15
(1) Disposal or
retirement 29,638,028.84 5,835,069.72 10,652,470.54 9,214,141.62 55,339,710.72
(2) Foreign currency
translation
(3) Transfer to
investment properties 63,678.43 63,678.43
(4) Transfer to
construction in progress
4. Closing balance 9,134,918,120.82 1,504,770,035.40 233,468,705.45 700,491,815.46 11,573,648,677.13
III. Provision for impairment
1. Opening balance 1,060,865.02 6,351.78 1,067,216.80
2. Increase in the current
period
(1) Provision
3. Decrease in the current
period
(1) Disposal or
retirement
4. Closing balance 1,060,865.02 6,351.78 1,067,216.80
IV. Carrying amount
1. Carrying amount at the end
of the reporting period 18,456,044,196.64 937,248,265.64 151,174,633.52 198,155,452.06 19,742,622,547.86
2. Carrying amount at the
beginning of the reporting 16,529,781,342.54 671,616,003.16 97,899,911.70 172,875,925.45 17,472,173,182.85
period
b. Fixed assets of which certificates of title have not been obtained
√Applicable □N/A
Unit: CNY
Reasons
why
certificates
Item Carrying amount
of title have
not been
obtained
113 / 158
ANNUAL REPORT 2022
Second phase of the “12th Five Year Plan” 10000-ton Moutai
In
liquor project (2012): technical transformation project that added 558,732,546.81
procedure
2,500 tons of Moutai liquor production capacity
Technological transformation project launched in 2011 that added
In
2,000 tons of Moutai Prince production capacity and supporting 347,096,637.47
procedure
facilities
Technological transformation project launched in 2012 that added
In
2,800 tons of Moutai Prince production capacity and supporting 217,303,556.07
procedure
facilities
Moutai Huanshan liquor storage area project In
473,176,627.15
procedure
Technological transformation project for Moutai flavor liquor In
1,013,808,067.72
series and supporting facilities procedure
7.14 Construction in progress
A. Presentation of items
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Construction in progress 2,208,329,892.95 2,321,988,541.82
Materials for construction of
fixed assets
Total 2,208,329,892.95 2,321,988,541.82
B. Construction in progress
a. Construction in progress
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Provision Provision
Item
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
Construction
2,208,329,892.95 2,208,329,892.95 2,321,988,541.82 2,321,988,541.82
in progress
Total 2,208,329,892.95 2,208,329,892.95 2,321,988,541.82 2,321,988,541.82
b. Changes in significant construction in progress
√Applicable □N/A
114 / 158
ANNUAL REPORT 2022
Unit: CNY
Including:
Amount Interest
Amount of capitalized
injected as a capitalization Source
Increase in the Transfer to fixed Other Construction accumulated interest
Item Budget Opening balance Closing balance proportion of rate for the of
current period asset decreases progress capitalized for the
budget amount current funds
interest current
(%) period (%)
period
Prepaid expenses 64,251,283.82 623,397.94 63,627,885.88
Technological Self-
transformation project raised
for Moutai flavor liquor 3,454,160,000.00 34,655,972.28 34,655,972.28 60.00 100%
series and supporting
facilities (6,400 tons)
Moutai Huanshan liquor Self-
1,602,000,000.00 8,937,908.56 75,320,621.78 84,258,530.34 100.00 100%
storage area project raised
Phase I Moutai liquor Self-
technological raised
4,504,000,000.00 600,639,902.31 600,639,902.31 100.00 100%
transformation project in
Zhonghua Area
“12th Five-Year Plan” Self-
expansion and raised
technological
transformation project:
3,484,768,000.00 31,310,520.26 888,031,058.61 919,341,578.87 100.00 100%
Phase II Moutai liquor
technological
transformation project in
Zhonghua Area
Technological Self-
transformation project raised
for the starter-making
production room that
416,000,000.00 93,658,435.69 93,658,435.69 100.00 100%
produces 4,000 tons of
Moutai liquor annually
in Plot 7 and supporting
facilities
Landslide control, slope Self-
protection and anti- raised
sliding support project in
the liquor production 450,000,000.00 6,101,435.65 220,659,027.56 226,760,463.21 100.00 100%
area between Zhonghua
Hengyi Road and
Henger Road
Hengsi Road (link Self-
between Tanmao raised
Express and Zhonghua 356,320,000.00 10,816,261.26 10,816,261.26 69.00 100%
Area) Project in
Zhonghua Area
115 / 158
ANNUAL REPORT 2022
“13th Five-Year Plan” Self-
project for the raised
construction of the first
189,000,000.00 943,018.87 943,018.87 41.00 100%
batch of liquor
storehouses in Zhonghua
Area
Embankment Self-
reinforcement and raised
218,210,000.00 37,755,738.07 37,755,738.07 100.00 100%
renovation project in the
plant area
Upgrading and Self-
renovation of the raised
network of pipes for
199,000,000.00 63.00 100%
separating clean and
dirty water in the old
plant area
No. 4 liquor making Self-
workshop maintenance 39,590,000.00 15,366,644.21 15,366,644.21 100.00 100% raised
and renovation project
Moutai Cultural and Self-
261,000,000.00 34,631,628.88 34,631,628.88 100.00 100%
Sports Center raised
Link between Plot 7 and Self-
28,830,000.00 81.00 100%
Tanmao Express Road raised
“13th Five-Year Plan” Self-
Moutai liquor raised
technological
3,559,000,000.00 203,577,409.34 46,553,373.62 250,130,782.96 83.00 100%
transformation project in
Zhonghua Area and
supporting facilities
Moutai plant water Self-
supply network 60,100,000.00 31,432,893.31 31,432,893.31 57.00 90% raised
renovation project
30,000-ton technological Self-
transformation project raised
for Moutai flavor liquor 8,384,000,000.00 1,614,362,901.68 744,839,881.68 993,199,599.24 1,366,003,184.12 58.00 77%
series and supporting
facilities
Liquor making Self-
workshop cooling water 430,000,000.00 142,108,164.47 165,656,209.41 307,764,373.88 100.00 100% raised
recycling project
3000T/H sewage Self-
treatment plant raised
upgrading and 47,940,000.00 1,284,403.67 1,284,403.67 51.00 100%
renovation in the Dadi
Area of Plant 201
Phase I of the packaging Self-
7,833,000,000.00 141,509.43 3,575,292.49 3,716,801.92 2.00 8%
logistics park project raised
116 / 158
ANNUAL REPORT 2022
Upgrading and Self-
renovation of the raised
network of pipes for
separating clean and
26,200,000.00 4,954,128.43 3,640,910.33 8,595,038.76 33.00 100%
dirty water, river
dredging and riverbed
repair at Plant 301 of
Heyixing Liquor Branch
Upgrading and Self-
renovation of the raised
network of pipes for
separating clean and 33,420,000.00 7,706,422.00 5,064,932.68 12,771,354.68 40.00 100%
dirty water in the Dadi
Area of Plant 201 of
Heyixing Liquor Branch
Construction project of Self-
liquor storehouse raised
extension project in 460,000,000.00 210,919,453.13 114,704,306.23 96,215,146.90 47.00 100%
Zhonghua Area during
the 13th Five-Year Plan
First Phase Construction Self-
Project of the "14th raised
Five-Year Plan" Maotai- 4,110,000,000.00 3,603,511.82 3,603,511.82 13.00 17%
flavor Liquor Xishui
Tongminba
Moutai liquor “14th Self-
Five-Year Plan” raised
15,516,000,000.00 805,658.85 805,658.85 1 1%
technological
transformation project
Self-
Others 196,287,703.61 345,137,390.07 182,098,124.86 359,326,968.82
raised
Total 55,662,538,000.00 2,321,988,541.82 3,532,743,066.01 3,646,401,714.88 2,208,329,892.95 / / / /
117 / 158
ANNUAL REPORT 2022
7.15 Right-of-use assets
√Applicable □N/A
Unit: CNY
Machinery and
Item Buildings Total
equipment
I. Cost
1. Opening balance 411,331,031.59 17,710,511.21 429,041,542.80
2. Increase in the current 146,145,531.33 146,145,531.33
period
(1) Lease 146,145,531.33 146,145,531.33
3. Decrease in the current 42,814,400.26 8,185,365.51 50,999,765.77
period
(1) Disposal 42,814,400.26 8,185,365.51 50,999,765.77
4. Closing balance 514,662,162.66 9,525,145.70 524,187,308.36
II. Accumulated depreciation
1. Opening balance 61,622,088.29 4,633,484.28 66,255,572.57
2. Increase in the current 74,557,076.43 2,814,514.20 77,371,590.63
period
(1) Provision 74,557,076.43 2,814,514.20 77,371,590.63
3. Decrease in the current 18,353,448.12 3,637,940.18 21,991,388.30
period
(1) Disposal 18,353,448.12 3,637,940.18 21,991,388.30
4. Closing balance 117,825,716.60 3,810,058.30 121,635,774.90
III. Provision for impairment
1. Opening balance
2. Increase in the current
period
(1) Provision
3. Decrease in the current
period
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Carrying amount at the end
396,836,446.06 5,715,087.40 402,551,533.46
of the reporting period
2. Carrying amount at the
beginning of the reporting 349,708,943.30 13,077,026.93 362,785,970.23
period
7.16 Intangible assets
A. Intangible assets
√Applicable □N/A
Unit: CNY
Software
Item Land use rights Total
development fees
I. Cost
1. Opening balance 6,977,935,254.19 49,671,897.42 7,027,607,151.61
2. Increase in the current
1,023,776,951.21 7,058,223.90 1,030,835,175.11
period
118 / 158
ANNUAL REPORT 2022
(1) Additions 1,023,776,951.21 7,058,223.90 1,030,835,175.11
(2) Internal R&D
(3) Increase arising
from business combination
3. Decrease in the current
period
(1) Disposal
4. Closing balance 8,001,712,205.40 56,730,121.32 8,058,442,326.72
II. Accumulated amortization
1. Opening balance 780,076,926.28 39,171,895.09 819,248,821.37
2. Increase in the current
151,378,506.84 4,637,772.06 156,016,278.90
period
(1) Provision 151,378,506.84 4,637,772.06 156,016,278.90
3. Decrease in the current
period
(1) Disposal
4. Closing balance 931,455,433.12 43,809,667.15 975,265,100.27
III. Provision for impairment
1. Opening balance
2. Increase in the current
period
(1) Provision
3. Decrease in the current
period
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Carrying amount at the
7,070,256,772.28 12,920,454.17 7,083,177,226.45
end of the reporting period
2. Carrying amount at the
beginning of the reporting 6,197,858,327.91 10,500,002.33 6,208,358,330.24
period
B. Land use rights of which certificates of title have not been obtained
√Applicable □N/A
Unit: CNY
Reasons
why
certificates
Item Carrying amount
of title have
not been
obtained
In
Moutai Huanshan liquor storage area project 144,000,000.00
procedure
Phase I and phase II Moutai liquor technological transformation In
2,141,855,569.18
project in Zhonghua Area procedure
Second phase of the “12th Five Year Plan” 10,000-ton Moutai
In
liquor project (2012): technical transformation project that added 330,000,000.00
procedure
2,500 tons of Moutai liquor production capacity
119 / 158
ANNUAL REPORT 2022
Maoyuan Road construction and Plot 5 liquor storehouse In
369,968,500.00
construction project procedure
Technological transformation project for the starter-making In
250,000,000.00
production room in Plot 7 and supporting facilities procedure
The first batch of construction projects in the Tanchang area of the In
428,000,000.00
circular economy science and technology demonstration park procedure
Technological transformation project for Moutai flavor liquor In
352,681,578.55
series and supporting facilities procedure
2,000-ton Moutai Prince technological transformation project and In
30,000,000.00
2,800-ton Moutai Prince technological transformation project procedure
“13th Five-Year Plan” Moutai liquor technological transformation In
215,259,100.00
project in Zhonghua Area and supporting facilities procedure
30,000-ton technological transformation project for Moutai flavor Under
998,256,302.95
liquor series and supporting facilities construction
In
Moutai international hotel construction project 673,430,000.00
procedure
7.17 Development expenditures
√Applicable □N/A
Unit: CNY
Increase in the current Decrease in the current
period period
Transfer
Opening Recognised Closing
Item Internal to profit
balance as balance
development Others or loss for
intangible
expenditures the current
assets
period
Project
research and 190,536,632.60 190,536,632.60
development
Total 190,536,632.60 190,536,632.60
7.18 Long-term prepaid expenses
√Applicable □N/A
Unit: CNY
Amortization
Increase in
Opening for the current Other Closing
Item the current
balance period reductions balance
period
the reconstruction
project of the road
137,500,000.25 9,999,999.96 127,500,000.29
from Zhongshu to
Maotai
Cost of major
repairs to fixed 986,355.71 14,351,387.45 744,940.16 14,592,803.00
assets
Office fit out cost 856,099.86 4,249,122.67 742,678.92 4,362,543.61
Total 139,342,455.82 18,600,510.12 11,487,619.04 146,455,346.90
Note: The company and Renhuai Urban Development, Construction, Investment and Operation Co., Ltd.
jointly completed transfer and amortization for the the reconstruction project of the road from Zhongshu
to Maotai according to the resolution of the third meeting of the second board of directors in 2013.
7.19 Deferred tax assets/deferred tax liabilities
A. Deferred tax assets before offset
√Applicable □N/A
120 / 158
ANNUAL REPORT 2022
Unit: CNY
Closing balance Opening balance
Item Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Provision for impairment
71,744,171.40 17,936,042.85 66,916,641.87 16,729,160.47
of assets
Unrealized profit of
10,912,264,732.27 2,728,066,183.07 6,303,346,118.88 1,575,836,529.72
internal transactions
Accrued but unpaid
achievements-related 214,872,045.38 53,718,011.35 214,872,045.38 53,718,011.35
wages
Others 2,636,844,523.34 659,211,130.84 2,363,690,969.19 590,922,742.30
Total 13,835,725,472.39 3,458,931,368.11 8,948,825,775.32 2,237,206,443.84
B. Deferred tax liabilities before offset
□Applicable √N/A
C. Deferred tax assets or liabilities presented at the net amount after offset
□Applicable √N/A
D. Unrecognized deferred tax assets
□Applicable √N/A
E. Deductible losses for which deferred tax assets are not recognized will be expired in the following
year
□Applicable √N/A
7.20 Other non-current assets
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Provision Provision
Item Book Carrying Carrying
for Book balance for
balance amount amount
impairment impairment
Certificates
2,059,761,333.33 2,059,761,333.33
of deposit
Total 2,059,761,333.33 2,059,761,333.33
7.21 Accounts payable
A. Accounts payable
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Trade accounts payable 2,408,371,053.69 2,009,832,495.56
Total 2,408,371,053.69 2,009,832,495.56
7.22 Contract liabilities
A. Contract liabilities
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Prepayments 15,471,920,924.98 12,718,465,288.02
121 / 158
ANNUAL REPORT 2022
Total 15,471,920,924.98 12,718,465,288.02
7.23 Customer deposits and balances from banks and other financial institutions
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Customer deposits 12,874,043,355.42 21,763,575,647.32
Total 12,874,043,355.42 21,763,575,647.32
7.24 Payroll and employee benefits payable
A. Payroll and employee benefits payable
√Applicable □N/A
Unit: CNY
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Short-term 4,779,361,358.8
3,675,275,694.03 11,168,907,165.12 10,064,821,500.29
benefits 6
II. Post-
employment
benefits – 2,556,202.73 1,664,355,464.04 1,664,037,355.86 2,874,310.91
Defined
contribution plan
III. Termination
13,821.77 25,475,968.42 25,414,217.55 75,572.64
benefits
4,782,311,242.4
Total 3,677,845,718.53 12,858,738,597.58 11,754,273,073.70
1
B. Short-term benefits
√Applicable □N/A
Unit: CNY
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Wages or salaries,
3,610,723,564.1 4,684,139,634.8
bonuses, allowances and 9,084,104,593.60 8,010,688,522.89
5 6
subsidies
II. Staff welfare 36,455.20 261,943,196.53 260,595,872.46 1,383,779.27
III. Social security
35,686,654.39 896,691,562.84 882,083,922.26 50,294,294.97
contributions
Including: Medical
35,685,053.61 841,767,152.74 827,159,660.34 50,292,546.01
insurance
Work injury
1,600.78 54,924,410.10 54,924,261.92 1,748.96
insurance
IV. Housing funds 712,794,476.46 712,794,476.46
V. Labor union and
27,214,988.99 193,297,008.45 180,016,441.78 40,495,555.66
employee education costs
VI. Short-term paid leave
VII. Short-term profit-
sharing plan
Ⅷ. Others 1,614,031.30 20,076,327.24 18,642,264.44 3,048,094.10
3,675,275,694.0 4,779,361,358.8
Total 11,168,907,165.12 10,064,821,500.29
3 6
Note: “Others” is labor remuneration.
122 / 158
ANNUAL REPORT 2022
C. Defined contribution plan
√Applicable □N/A
Unit: CNY
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
1. Basic pension
92,445.40 998,671,883.05 998,687,637.29 76,691.16
insurance
2. Unemployment
2,145.59 43,628,153.62 43,627,968.48 2,330.73
insurance
3. Enterprise
2,461,611.74 622,055,427.37 621,721,750.09 2,795,289.02
annuity
Total 2,556,202.73 1,664,355,464.04 1,664,037,355.86 2,874,310.91
7.25 Taxes payable
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Value added tax 2,034,610,620.24 1,933,633,784.18
Consumption tax 1,570,075,010.07 4,123,882,929.27
Enterprise income tax 2,769,448,025.03 5,254,498,943.15
Individual income tax 69,096,434.63 84,112,032.43
City construction and
258,837,607.08 343,737,264.76
maintenance tax
Education surcharges 99,389,745.34 135,636,926.73
Local education surcharges 67,552,876.94 91,717,665.75
Stamp duty 25,330,539.79 11,280,516.53
House property tax 809,379.99 721,095.74
Land use tax 11,682.07 9,420.06
Environmental protection tax 22,267.77
Others 1,371,234.88 571,565.41
Total 6,896,555,423.83 11,979,802,144.01
7.26 Other payables
A. Presentation of items
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Interest payable
Dividends payable
Other payables 4,543,842,833.87 4,124,404,781.29
Total 4,543,842,833.87 4,124,404,781.29
B. Other payables
a. Other payables presented by nature
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Material quality deposit 318,075,043.18 286,891,441.71
Project quality deposit 173,047,548.78 103,727,351.31
Dealer deposit 1,897,194,013.05 2,016,098,008.20
Current Account 2,155,526,228.86 1,717,687,980.07
Total 4,543,842,833.87 4,124,404,781.29
123 / 158
ANNUAL REPORT 2022
b. Significant other payables aged over 1 year
□Applicable √N/A
Others:
□Applicable √N/A
7.27 Current portion of non-current liabilities
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Lease liabilities due within
109,351,155.28 104,319,886.87
one year
Total 109,351,155.28 104,319,886.87
7.28 Other current liabilities
Other current liabilities
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Pending output VAT 1,979,272,808.90 1,535,976,293.22
Total 1,979,272,808.90 1,535,976,293.22
7.29 Lease liabilities
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Long-term lease liabilities 334,447,942.79 296,466,199.74
Total 334,447,942.79 296,466,199.74
7.30 Paid-in capital
√Applicable □N/A
Unit: CNY
Changes in the current period (+, -)
Opening balance New Capitalization Closing balance
Share
shares of capital Others Subtotal
donation
issued reserve
Number
1,256,197,800.00 1,256,197,800.00
of shares
7.31 Capital reserve
√Applicable □N/A
Unit: CNY
Decrease
Increase in
in the
Item Opening balance the current Closing balance
current
period
period
Capital premium 1,374,048,653.54 1,374,048,653.54
Other capital reserves 915,762.18 915,762.18
Total 1,374,964,415.72 1,374,964,415.72
7.32 Other comprehensive income
√Applicable □N/A
124 / 158
ANNUAL REPORT 2022
Unit: CNY
Amount incurred in the current period
Less: Less:
Amount Amount
included in included in
other other
comprehensi comprehensi
Amount
Opening balance ve income ve income in Less: Attributable
Item incurred Attributable to Closing balance
in the prior the prior Income to minority
before income the Company
periods that periods that tax interests
tax in the after tax
is is expenses after tax
current period
transferred transferred
to profit or to retained
loss for the earnings for
current the current
period period
I. Other comprehensive
income that cannot be
reclassified to profit or
loss
Including:
Remeasurement of
changes in defined
benefit plan
Other comprehensive
income that cannot be
transferred to profit or
loss under equity
method
Changes in fair value of
investments in other
equity instruments
Changes in fair value
of the Company’s own
credit risk
II. Other
comprehensive income
-13,017,880.78 2,240,973.45 2,240,973.45 -10,776,907.33
to be reclassified to
profit or loss
Including: Other
comprehensive income
that may be transferred
to profit or loss under
equity method
Changes in fair value
of other debt
investments
Amount of financial
assets reclassified to
other comprehensive
income
Provision for credit
impairment of other
debt investments
Effective portion of
gains or losses on cash
flow hedging
Translation differences
of financial statements
-13,017,880.78 2,240,973.45 2,240,973.45 -10,776,907.33
denominated in foreign
currencies
Total other
-13,017,880.78 2,240,973.45 2,240,973.45 -10,776,907.33
comprehensive income
7.33 Surplus reserves
√Applicable □N/A
Unit: CNY
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Statutory surplus
25,142,832,818.16 7,379,946,360.72 32,522,779,178.88
reserve
Discretionary
surplus reserve
125 / 158
ANNUAL REPORT 2022
Reserve fund
Enterprise
development fund
Others
Total 25,142,832,818.16 7,379,946,360.72 32,522,779,178.88
7.34 General reserve
Unit: CNY
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
General reserve 1,061,529,724.00 1,061,529,724.00
Total 1,061,529,724.00 1,061,529,724.00
Note: The general reserve was set aside by Kweichow Moutai Group Finance Co., Ltd., a majority-owned
subsidiary of the Company, in accordance with the provisions of the Measures for the Administration of
the Setting Aside of Reserves for Financial Enterprises (Cai Jin [2012] No. 20) promulgated by the
Ministry of Finance.
7.35 Retained earnings
√Applicable □N/A
Unit: CNY
Item Current period Prior period
Before adjustment: retained earnings of the prior
160,716,861,920.19 137,594,403,807.99
period
Adjustment: Total retained earnings at the
beginning of the reporting period (increase “+”,
decrease “-”)
After adjustment: retained earnings at the
160,716,861,920.19 137,594,403,807.99
beginning of the reporting period
Add: Net profit attributable to owners of the
62,716,443,738.27 52,460,144,378.16
Company for the current period
Less: Transfer to statutory surplus reserve 7,379,946,360.72 4,967,910,209.23
Transfer to discretionary surplus reserve
Transfer to general reserve 133,951,901.33
Declaration of dividends on ordinary shares 54,751,381,113.01 24,235,824,155.40
Conversion of ordinary shares’ dividends into
share capital
Retained earnings at the end of the reporting
161,301,978,184.73 160,716,861,920.19
period
7.36 Operating revenue and costs of sales
A. Operating revenue and costs of sales
√Applicable □N/A
Unit: CNY
Amount incurred in the current period Amount incurred in the prior period
Item
Revenue Cost Revenue Cost
Main
123,772,332,348.71 9,896,113,336.80 106,059,290,342.18 8,890,990,510.72
business
Others 327,511,423.28 197,355,279.83 130,864,501.58 92,387,299.24
Total 124,099,843,771.99 10,093,468,616.63 106,190,154,843.76 8,983,377,809.96
Note: Other business revenue and costs are mainly the revenue and costs of the business of Moutai
International Hotel and ice cream business.
B. Description of contract obligations
√Applicable □N/A
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ANNUAL REPORT 2022
Revenue is recognized when the customer obtains control of the goods specified in the contract and the
Company fulfills its obligations under the contract.
C. Description of apportionment to remaining contract obligations
√Applicable □N/A
The amount of revenue corresponding to contract obligations that have not yet been performed or have
not been fulfilled at the end of the reporting period is CNY 15,471,920,924.98.
7.37 Interest income, interest expense, net fee and commission revenue, and fees and commission
expenses
Unit: CNY
Amount incurred in the current Amount incurred in the prior
Item
period period
Interest income 3,454,115,583.98 3,274,123,720.13
Fees and commission revenue
Interest expense 105,584,206.24 173,897,197.98
Fees and commission expense 143,141.51 115,082.12
7.38 Taxes and surcharges
√Applicable □N/A
Unit: CNY
Amount incurred in the current Amount incurred in the prior
Item
period period
Consumption tax 14,628,644,881.34 12,056,605,155.34
City construction and
2,055,705,281.43 1,734,297,928.93
maintenance tax
Education surcharges 880,939,077.72 743,270,540.94
House property tax 170,186,626.63 158,049,318.08
Land use tax 47,733,684.72 38,625,999.87
Vehicle and vessel usage tax 420,334.81 393,682.35
Stamp duty 121,037,737.02 75,936,478.31
Local education surcharges 587,292,717.26 495,513,694.19
Environmental protection tax 212,923.35 187,817.17
Others 3,645,269.94 1,588,454.85
Total 18,495,818,534.22 15,304,469,070.03
7.39 Selling expenses
√Applicable □N/A
Unit: CNY
Amount incurred in the Amount incurred in the prior
Item
current period period
Advertising and marketing
2,887,804,740.39 2,362,973,054.42
expenses
Transportation expenses and
14,658,723.67 15,581,555.64
transportation insurance expenses
Marketing travel expenses and
69,828,805.38 65,584,708.40
office expenses
Others 325,431,921.50 293,230,116.32
Total 3,297,724,190.94 2,737,369,434.78
7.40 General and administrative expenses
√Applicable □N/A
127 / 158
ANNUAL REPORT 2022
Unit: CNY
Item Amount incurred in the Amount incurred in the
current period prior period
Payroll and employee benefits 4,348,853,737.71 3,964,469,622.29
Trademark licensing fees 1,639,842,153.56 1,332,728,678.71
Depreciation on fixed assets 495,038,952.17 394,652,013.52
Environmental remediation expenses 191,513,496.34 125,256,351.95
Company expenses 177,404,050.78 186,406,218.53
Amortization of intangible assets 156,016,278.90 124,084,418.97
Property insurance 51,390,201.61 62,245,135.74
Raw material base expenses 144,152,150.24 228,662,175.32
Rent for the use of property 24,919,167.73 20,126,797.76
Business reception expenses 13,625,245.10 9,841,359.31
Intermediary expenses 37,289,937.20 28,716,580.54
Rent for the use of land 2,690,532.60 2,636,686.30
Board expenses 4,278,509.19 4,722,307.27
Others 1,725,176,660.50 1,965,725,718.82
Total 9,012,191,073.63 8,450,274,065.03
7.41 R&D expenses
√Applicable □N/A
Unit: CNY
Item Amount incurred in the Amount incurred in the
current period prior period
Payroll and employee benefits 66,492,415.10 22,645,218.77
Consumable 7,893,622.73 4,300,483.79
R&D cooperation expenses 33,128,020.95 26,605,729.70
Depreciation on fixed assets 21,067,522.53 4,758,510.21
Company expenses 984,742.75 1,898,827.45
Others 5,619,356.34 1,714,443.67
Total 135,185,680.40 61,923,213.59
7.42 Financial expenses
√Applicable □N/A
Unit: CNY
Item Amount incurred in the Amount incurred in the
current period prior period
Interest expense (lease liabilities) 12,023,204.77 13,529,867.76
Interest income -1,475,422,303.64 -944,578,412.02
Others 71,593,272.15 -3,474,861.76
Total -1,391,805,826.72 -934,523,406.02
7.43 Other income
√Applicable □N/A
Unit: CNY
Amount Amount
incurred in incurred in
Item
the current the prior
period period
Financial support for the economic development of Shanghai
5,696,000.00 4,677,000.00
Pudong New Area
Government subsidies for double-cycle of the top ten competitive
export products awarded by Guizhou Provincial Department of 3,000,000.00
Commerce
128 / 158
ANNUAL REPORT 2022
Rental subsidy for Investment Business Service Center in Guanshan
1,380,000.00
Lake District of Guiyang City
Tax reduction and exemption for employment of poverty-stricken
1,034,800.00
personnel who have registered for filing
Awards from the People's Government of Erqi District, Zhengzhou
909,800.00
City
Award from the Bureau of Commerce and Investment Promotion of
906,000.00
Guanshan Lake District, Guiyang
Funds of award for promoting wholesale, retail, accommodation
and catering industries in the city from the Bureau of Commerce of 570,000.00
Xihu District, Nanchang in 2021
District-level incentives for high quality development given by
500,000.00 30,000.00
Hefei city
“Sales competition month” incentives and incentives for “four
300,000.00 61,000.00
above” enterprises given by Gulou District, Nanjing
Tax deduction and exemption for hiring ex-serviceman 292,500.00
Incentive for encouraging retail and catering enterprises to promote
100,000.00
growth from the Bureau of Commerce of Hefei
Incentives given by Wuhan city to encourage enterprises to meet
60,000.00 80,000.00
retail sales targets and go above the norm
Award for wholesale enterprises above designated size in the
special funds for development of the municipal bureau of commerce 50,000.00
in Guangdong
Award for enterprises above designated size in Nanning 50,000.00
Incentives for best progressive enterprises given by the bureau of
50,000.00 80,000.00
commerce of Chaoyang District, Changchun
Nanning city’s support for the development of above-norm
commercial and trade enterprises and other for-profit service 50,000.00 50,000.00
industries above designated size
Award in the sales competition season in the first half of the year
10,000.00
from the Bureau of Commerce of Gulou District, Nanjing
Subsidy for enterprise retention training from the Social Insurance
5,250.00
Fund Administration of Shenzhen
Incentives given by Taohua town government of Xihu District,
5,000.00 190,000.00
Nanchang
Award of the Bureau of Commerce of Yuhua District, Changsha 3,454.55
Subsidies for epidemic prevention and disinfection of wholesale and
retail and catering enterprises above designated size from
500.00
Fenghuang Sub-district Office of People's Government of Gulou
District, Nanjing
Incentives given by Jinan municipal government for innovation and
2,630,000.00
development
Incentives given by Changsha Municipal Development and Reform
2,030,000.00
Bureau to support industrial development
Incentives for key enterprises given by Beijing Xicheng District
1,200,000.00
Development and Reform Commission
Funds earmarked by Guiyang Municipal Bureau of Commerce for
300,000.00
foreign economic and trade development
Funds earmarked by Nanning Municipal Bureau of Commerce for
240,000.00
service industry development
Incentives given by Guiyang city to support the stable development
of above-norm wholesale, retail and catering enterprises in response
200,000.00
to COVID-19 and encourage them to reach their design capacity
and increase efficiency
Town-level financial incentives given by Nanchang city 35,000.00
Incentives for “four above” enterprises given by Zhengzhou city 80,000.00
129 / 158
ANNUAL REPORT 2022
Grants for COVID-19 prevention and control 20,000.00
Funds earmarked by Changsha city for guiding service industries 20,000.00
Refund of service charges for withholding individual income tax 9,422,570.66 8,537,082.76
Additional value-added tax credit 109,478.62 55,828.43
Total 24,505,353.83 20,515,911.19
7.44 Investment income
√Applicable □N/A
Unit: CNY
Amount incurred in the Amount incurred in
Item
current period the prior period
Income from long-term equity investments under
equity method
Investment income on disposal of long-term equity
investments
Investment income from holding held-for-trading
financial assets
Dividend income from holding investments in
other equity instruments
Interest income from holding debt investments
Interest income from holding other debt
investments
Investment income from disposal of held-for-
trading financial assets
Investment income from disposal of investments in
other equity instruments
Investment income from disposal of debt
investments
Investment income from disposal of other debt
investments
Income from debt restructuring
Investment income from disposal of other non-
-1,505,395.94
current financial assets
Interest income from holding certificates of
63,840,000.00 59,761,333.33
deposit
Total 63,840,000.00 58,255,937.39
7.45 Gains from changes in fair value
√Applicable □N/A
Unit: CNY
Amount incurred
Amount incurred in the
Source resulting in gains from changes in fair values in the prior
current period
period
Held-for-trading financial assets
Including: Gains from changes in fair values arising
from derivatives
Held-for-trading financial liabilities
Investment properties carried at fair value
Other non-current financial assets -2,244,726.29
Total -2,244,726.29
130 / 158
ANNUAL REPORT 2022
7.46 Credit impairment losses
√Applicable □N/A
Unit: CNY
Amount incurred in the Amount incurred in the prior
Item
current period period
Bad debt provision of notes receivable
Bad debt provision of accounts
415,705.24 47,413.76
receivable
Bad debt provision of other receivables 2,502,655.82 134,900.04
Impairment on debt investments -119,880.00 -84,510.00
Impairment on other debt investments
Bad debt provision of long-term
receivables
Impairment on contract assets
Others -17,485,027.31 -13,120,244.99
Total -14,686,546.25 -13,022,441.19
Note: “Others” is mainly the provision for impairment of loans issued by the company’s majority-owned
subsidiary Kweichow Moutai Group Finance Co., Ltd.
7.47 Gains from disposal of assets
√Applicable □N/A
Unit: CNY
Item Amount incurred in the current Amount incurred in the prior
period period
Gains or losses from disposal of
-129,948.22
fixed assets
Gains or losses from disposal of
343,183.91
right-of-use assets
Total 213,235.69
7.48 Non-operating income
Non-operating income
√Applicable □N/A
Unit: CNY
Amount included
Amount incurred in Amount incurred in in non-recurring
Item
the current period the prior period profit or loss in
the current period
Total gains on disposal of non-
282,981.41 3,437.33 282,981.41
current assets
Including: Gains on disposal of
282,981.41 3,437.33 282,981.41
fixed assets
Gains on disposal of
intangible assets
Gains on exchange of non-
monetary assets
Donations received
Government grants
Gains on fines and damages 65,421,527.15 66,338,633.29 65,421,527.15
Others 5,147,776.84 2,647,149.12 5,147,776.84
Total 70,852,285.40 68,989,219.74 70,852,285.40
7.49 Non-operating expenses
√Applicable □N/A
131 / 158
ANNUAL REPORT 2022
Unit: CNY
Amount included
Amount incurred in Amount incurred in in non-recurring
Item
the current period the prior period profit or loss in
the current period
Total losses on disposal of
21,063,974.29 11,924,267.10 21,063,974.29
non-current assets
Including: Losses on disposal
21,063,974.29 11,924,267.10 21,063,974.29
of fixed assets
Losses on disposal of
intangible assets
Losses on exchange of non-
monetary assets
Donations to third parties 225,431,100.98 271,167,088.19 225,431,100.98
Amercement outlay 200,000.00
Others 2,389,244.34 8,546,747.21 2,389,244.34
Total 248,884,319.61 291,838,102.50 248,884,319.61
7.50 Income tax expense
A. Income tax expenses
√Applicable □N/A
Unit: CNY
Amount incurred in the current Amount incurred in the prior
Item
period period
Current tax expenses 23,548,077,905.70 19,922,940,809.01
Deferred tax expenses -1,221,724,924.27 -1,115,438,870.71
Total 22,326,352,981.43 18,807,501,938.30
B. Reconciliation of income tax expenses to the accounting profit
√Applicable □N/A
Unit: CNY
Amount incurred in the
Item
current period
Total profit 87,701,489,748.18
Income tax expenses calculated at statutory/applicable tax rate 21,925,372,437.05
Effect of different tax rates applicable to subsidiaries
Effect of adjustment to income tax of prior periods
Effect of non-taxable income
Effect of non-deductible costs, expenses and losses 400,980,544.38
Effect of using deductible losses for which deferred tax assets were
previously not recognized
Effect of deductible temporary differences or deductible losses
unrecognized in the current period
Income tax expense 22,326,352,981.43
7.51 Other comprehensive income
√Applicable □N/A
See Note 32 Other Comprehensive Income for details
7.52 Items of the cash flow statement
A. Cash received relating to other operating activities
√Applicable □N/A
132 / 158
ANNUAL REPORT 2022
Unit: CNY
Amount incurred in the Amount incurred in the prior
Item
current period period
Interest income from self-owned
886,579,338.69 549,608,351.20
funds
Other income received 1,872,842,833.19 1,093,928,511.28
Total 2,759,422,171.88 1,643,536,862.48
B. Cash paid relating to other operating activities
√Applicable □N/A
Unit: CNY
Amount incurred in the Amount incurred in the prior
Item
current period period
Advertising and publicity expenses
1,177,149,398.36 1,047,792,182.25
paid
Transportation expenses and
transportation insurance expenses 205,887,269.67 238,511,859.13
paid
Property insurance premiums paid 45,179,150.27 56,151,552.10
Other expenses paid 3,694,871,614.59 3,026,048,912.52
Total 5,123,087,432.89 4,368,504,506.00
C. Cash received relating to other investing activities
√Applicable □N/A
Unit: CNY
Amount incurred in the current Amount incurred in the prior
Item
period period
Performance bond received for
4,971,762.18 9,983,452.63
capital construction
Total 4,971,762.18 9,983,452.63
D. Cash paid relating to other investing activities
√Applicable □N/A
Unit: CNY
Amount incurred in the current Amount incurred in the prior
Item
period period
Refunded performance bond for
31,486,829.54 23,048,029.93
capital construction
Total 31,486,829.54 23,048,029.93
E. Cash payments relating to other financing activities
√Applicable □N/A
Unit: CNY
Item Amount incurred in the current Amount incurred in the prior
period period
Amount paid to repay lease
54,332,788.37 88,121,549.59
liabilities
Total 54,332,788.37 88,121,549.59
7.53 Supplementary information to the cash flow statement
A. Supplementary information to the cash flow statement
√Applicable □N/A
Unit: CNY
133 / 158
ANNUAL REPORT 2022
Supplementary information Current period Prior period
1．Reconciliation of net profit to cash flow from operating activities:
Net profit 65,375,136,766.75 55,720,529,956.46
Add: Provision for impairment losses of assets
Credit impairment losses 14,686,546.25 13,022,441.19
Depreciation of fixed assets, depletion of oil and gas
1,443,574,818.50 1,344,833,911.39
assets, depreciation of productive biological assets
Amortization of right-of-use assets 77,371,590.63 101,608,046.18
Amortization of intangible assets 156,016,278.90 124,084,418.97
Amortization of long-term prepaid expenses 11,487,619.04 10,687,874.77
Losses on disposal of fixed assets, intangible assets and
-213,235.69
other long-term assets (gains are indicated by “－”)
Losses on retirement of fixed assets (gains are indicated
20,780,992.88 11,920,829.77
by “－”)
Losses on changes in fair values (gains are indicated by
2,244,726.29
“－”)
Financial expenses (income is indicated by “－”) 12,023,204.77 13,529,867.76
Losses arising from investments (gains are indicated by
-63,840,000.00 -58,255,937.39
“－”)
Decrease in deferred tax assets (increase is indicated by
-1,221,724,924.27 -1,113,981,357.47
“－”)
Increase in deferred tax liabilities (decrease is indicated
-1,457,513.23
by “－”)
Decrease in inventories (increase is indicated by “－”) -5,430,009,151.41 -4,525,277,406.77
Decrease in receivables from operating activities
-15,051,874,095.80 504,305,749.89
(increase is indicated by “－”)
Increase in payables from operating activities (decrease
-8,644,820,580.52 11,880,880,539.56
is indicated by “－”)
Others
Net cash flow from operating activities 36,698,595,830.03 64,028,676,147.37
2．Significant investing and financing activities that do not involve cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under finance leases
3．Net changes in cash and cash equivalents:
Closing balance of cash 152,378,738,982.83 178,640,587,379.52
Less: Opening balance of cash 178,640,587,379.52 146,740,524,868.05
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -26,261,848,396.69 31,900,062,511.47
B. Composition of cash and cash equivalents
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
I. Cash 152,378,738,982.83 178,640,587,379.52
Including: Cash on hand 12,740.70 9,500.00
Bank balances 48,074,557,886.36 42,099,344,994.22
Other monetary funds
Deposits with the central bank 2,568,410,342.65 2,705,674,089.61
Deposits with other banks 101,735,758,013.12 133,835,558,795.69
Placements with banks
134 / 158
ANNUAL REPORT 2022
II. Cash equivalents
Including: Investments in debt securities due
within three months
III. Closing balance of cash and cash
152,378,738,982.83 178,640,587,379.52
equivalents
Including: Restricted cash and cash
equivalents of the Company and subsidiaries
within the Group
Others:
□Applicable √N/A
7.54 Notes to items in the statement of changes in owners’ equity
Describe matters such as the names and the adjustment amount of the items included in “others” in respect
of adjustments to the closing balances of the prior reporting period:
□Applicable √N/A
7.55 Assets with restricted ownership or right-of-use
√Applicable □N/A
Unit: CNY
Carrying amount at
Item the end of the Reasons of restriction
reporting period
Cash and Cash Cash and Cash equivalents deposited in the central bank’s
6,418,765,887.71
equivalents statutory deposit reserve
Loans to Interbank deposits that cannot be withdrawn in advance
banks and
14,000,000,000.00
other financial
institutions
Total 20,418,765,887.71 /
7.56 Foreign currency monetary items
A. Foreign currency monetary items
√Applicable □N/A
Unit: CNY
Closing balances of Exchange rates for Closing balance of
Item
foreign currencies translation CNY
Cash and Cash equivalents
Including: USD
EUR 3,907,862.37 7.4229 29,007,671.59
HKD
B. Description of foreign operations: for significant foreign operations, major domicile and
functional currency and its basis of selection shall be disclosed, and reasons for foreign operations
changing their functional currencies shall also be disclosed.
√Applicable □N/A
The Company’s wholly-owned subsidiary, Kweichow Moutai Paris Trading, is registered in Paris,
France, and its functional currency is Euro.
7.57 Government grants
A. Basic information of government grants
√Applicable □N/A
Unit: CNY
135 / 158
ANNUAL REPORT 2022
Amount
Presenting
Category Amount included in
items
profit or loss
Financial support for the economic development of Other
5,696,000.00 5,696,000.00
Shanghai Pudong New Area income
Government subsidies for double-cycle of the top ten
Other
competitive export products awarded by Guizhou 3,000,000.00 3,000,000.00
income
Provincial Department of Commerce
Rental subsidy for Investment Business Service Center Other
1,380,000.00 1,380,000.00
in Guanshan Lake District of Guiyang City income
Awards from the People's Government of Erqi District, Other
909,800.00 909,800.00
Zhengzhou City income
Award from the Bureau of Commerce and Investment Other
906,000.00 906,000.00
Promotion of Guanshan Lake District, Guiyang income
Funds of award for promoting wholesale, retail,
accommodation and catering industries in the city from Other
570,000.00 570,000.00
the Bureau of Commerce of Xihu District, Nanchang in income
2021
District-level incentives for high quality development Other
500,000.00 500,000.00
given by Hefei city income
“Sales competition month” incentives and incentives for
Other
“four above” enterprises given by Gulou District, 300,000.00 300,000.00
income
Nanjing
Incentive for encouraging retail and catering enterprises
Other
to promote growth from the Bureau of Commerce of 100,000.00 100,000.00
income
Hefei
Incentives given by Wuhan city to encourage enterprises Other
60,000.00 60,000.00
to meet retail sales targets and go above the norm income
Award for wholesale enterprises above designated size in
Other
the special funds for development of the municipal 50,000.00 50,000.00
income
bureau of commerce in Guangdong
Award for enterprises above designated size in Nanning Other
50,000.00 50,000.00
income
Incentives for best progressive enterprises given by the Other
50,000.00 50,000.00
bureau of commerce of Chaoyang District, Changchun income
Nanning city’s support for the development of above-
Other
norm commercial and trade enterprises and other for- 50,000.00 50,000.00
income
profit service industries above designated size
Award in the sales competition season in the first half of
Other
the year from the Bureau of Commerce of Gulou 10,000.00 10,000.00
income
District, Nanjing
Subsidy for enterprise retention training from the Social Other
5,250.00 5,250.00
Insurance Fund Administration of Shenzhen income
Incentives given by Taohua town government of Xihu Other
5,000.00 5,000.00
District, Nanchang income
Award of the Bureau of Commerce of Yuhua District, Other
3,454.55 3,454.55
Changsha income
Subsidies for epidemic prevention and disinfection of
wholesale and retail and catering enterprises above Other
500.00 500.00
designated size from Fenghuang Sub-district Office of income
People's Government of Gulou District, Nanjing
B. Return of government grants
□Applicable √N/A
136 / 158
ANNUAL REPORT 2022
8. Equity in other entities
8.1 Equity in subsidiaries
A. Composition of the Group
√Applicable □N/A
Main Shareholding ratio
Place of Business Acquisition
Subsidiary place of
registration nature Directly Indirectly method
business
GUIZHOU MOUTAI Guiyang, 70 Investment
CHIEW IMPORT AND Guizhou
EXPORT CO., LTD.
Kweichow Moutai Sales Renhuai, 95 Investment
Co., Ltd. Guizhou
Kweichow Moutai Group Renhuai, 51 Investment
Finance Co., Ltd. Guizhou
Moutai Custom Marketing Guiyang, 70 Investment
(Guizhou) Co., Ltd. Guizhou
Beijing Friendship Beijing 70 Investment
Messenger Trading Co.,
Ltd.
Kweichow Moutai Paris Paris, 100 Investment
Trading France
Guizhou Laymau Liquor Guiyang, 43 Investment
Industry Co., Ltd. Guizhou
Kweichow Moutai-Flavor Renhuai, 100 Investment
Liquor Marketing Co., Ltd. Guizhou
The basis for holding half or less voting rights but still controlling the investee, and holding more than
half of the voting rights but not controlling the investee:
The Company holds 43% of the equity in Guizhou Laymau Liquor Industry Co., Ltd., but may actually
control this company, in that the Company has a majority of the board members in Guizhou Laymau
Liquor Industry Co., Ltd.
B. Important non-wholly owned subsidiaries
√Applicable □N/A
Unit: CNY
Profit and loss Closing balance
Shareholding of Dividends declared
attributable to of minority
minority and distributed to
Subsidiary minority shareholders’
shareholders minority shareholders
shareholders in equity for the
proportion in the current period
the current period period
Kweichow
Moutai Sales 5% 1,813,081,365.66 2,369,686,816.69 2,282,401,023.18
Co., Ltd.
Explanation of the difference between the shareholding proportion of minority shareholders and the voting
right proportion of subsidiaries:
□Applicable √N/A
Others:
□Applicable √N/A
C. Major financial information of significant non-wholly owned subsidiaries
√Applicable □N/A
Unit: CNY 10,000
Subsidiary Closing balance Opening balance
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ANNUAL REPORT 2022
Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Kweichow
Moutai Sales 8,220,420.32 78,152.57 8,298,572.89 3,720,573.89 13,196.96 3,733,770.85 7,588,967.01 62,919.92 7,651,886.93 1,968,312.40 5,561.59 1,973,873.99
Co., Ltd.
Current period Prior period
Cash Cash
Total flow Total flow
Subsidiary Operating Net Operating Net
comprehensive from comprehensive from
income profit income profit
income operating income operating
activities activities
Kweichow
Moutai Sales 10,360,419.48 3,626,162.73 3,626,162.73 4,893,346.93 9,061,083.73 4,803,918.40 4,803,918.40 3,616,271.47
Co., Ltd.
9. Risks relevant to financial instruments
√Applicable □N/A
The main financial instruments of the Company include other non-current financial assets, cash and cash
equivalents etc. These financial instruments are created mainly for the operating financing of the Company.
The Company has many other financial assets and liabilities, such as accounts receivable, other receivables,
accounts payable and other payables, which are directly produced as a result of operation.
The major risks caused by the financial instruments of the Company are credit risk, liquidity risk, exchange
rate risk and interest rate risk.
1. Credit risk
The financial assets of the Company include cash and cash equivalents, accounts receivable, other
receivables etc. The credit risk in these financial assets originates from breach of the agreement by the
counter party. The maximum risk exposure is equivalent to the carrying amount of these instrument.
No guaranty is required as the Company only trades with the recognized and reputable third parties. The
credit risk is managed by customers in a centralized manner. The Company faces a low credit risk as it
collects accounts in advance during sales.
2. Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the enterprise performs its obligation of
settlement through delivery of cash or other financial assets.
The policy of the Company is to ensure that it has sufficient cash to repay the debts due. The subsidiaries
shall be responsible for their own cash flow predictions. The finance department of the Company shall
constantly monitor the short-term and long-term funds demands at the group level to maintain the fund
demands according to the summary of the cash flow predictions of the subsidiaries.
3. Exchange rate risk
The foreign exchange fluctuation risk faced by the Company is mainly related to the operating activities
of the Company (when the receipts and payments are not settled in a foreign currency other than the
functional currency of the Company) and its net investment in overseas subsidiaries. The foreign exchange
risk sustained by the Company is mainly related to the United States dollars and Euro. The Company’s
major business activities are priced and settled in CNY except for those settled in USD and EUR.
4. Interest rate risk
Interest rate risk refers to the risk of fluctuation in the fair value of the financial instruments or the future
cash flow due to the change in the market interest rate. The risk of fluctuation in the market interest rate
faced by the Company is mainly related to the liabilities with the interest accrued at a floating interest rate.
As at December 31, 2022, the Company has no liabilities with the interest accrued at a floating interest
rate.
138 / 158
ANNUAL REPORT 2022
10. Disclosure of fair value
10.1 Fair value of assets and liabilities measured at fair value at the end of the period
□Applicable √N/A
10.2 The basis for determining the market price of continuous and non-continuous level 1 fair value
measurement items
□Applicable √N/A
10.3 Qualitative and quantitative information on the valuation techniques used and important
parameters for continuous and non-continuous level 2 fair value measurement items
□Applicable √N/A
10.4 Qualitative and quantitative information on the valuation techniques used and important
parameters for continuous and non-continuous level 3 fair value measurement items
□Applicable √N/A
10.5 Continuous level 3 fair value measurement items, adjustment information between the opening
and closing carrying amount and sensitivity analysis of unobservable parameters
□Applicable √N/A
10.6 Continuous fair value measurement items, if there is a conversion between various levels during
the current period, the reasons for the conversion and the policy for determining the timing of the
conversion
□Applicable √N/A
10.7 Changes in valuation technology during the current period and reasons for the changes
□Applicable √N/A
10.8 The fair value of financial assets and financial liabilities not measured at fair value
□Applicable √N/A
10.9 Others
□Applicable √N/A
11. Related parties and related party transactions
11.1 The Company’s parent company
√Applicable □N/A
Unit: CNY 10,000
Shareholding Proportion of
ratio of voting rights
Place of Business Registered
Parent company parent of parent
registration nature capital
company to company to
the Company the company
China Kweichow Moutai Guiyang,
Distillery (Group) Co., Guizhou 1,000,000 54.00 54.00
Ltd.
11.2 Subsidiaries of the Company
√Applicable □N/A
Please refer to “VIII. Equity in other entities” for the details of the subsidiaries of the Company
139 / 158
ANNUAL REPORT 2022
11.3 Other related parties
√Applicable □N/A
Name of other related parties Relationship with the company
Wholly-owned subsidiary of the
Beijing Moutai Trading Co., Ltd.
parent company
ChangLi Moutai Liquor Trade Co., Ltd. other
Shanghai Moutai Trading Co., Ltd. other
Guizhou Fuming Packaging Co., Ltd. other
Guizhou Hengdao Forestry and Agriculture Technology
other
Development Co., Ltd.
Guizhou Jiuyuan Property Co., Ltd. other
Kweichow Moutai (Group) International Travel Service Co., Ltd. other
Kweichow Moutai (Group) Ecological Agriculture Industry Wholly-owned subsidiary of the
Development Co., Ltd. parent company
Kweichow Moutaichun Marketing Company other
Health Industry Co., Ltd. of Kweichow Moutai Group. other
Guizhou Baijin Liquor Sales Co., Ltd. other
Guizhou Baijin Liquor Co., Ltd. other
Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. other
Wholly-owned subsidiary of the
Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd.
parent company
Majority-owned subsidiary of
Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd.
the parent company
Kweichow Moutai Distillery (Group) Guiyang High-tech Real
other
Estate Investment Development Co., Ltd.
Wholly-owned subsidiary of the
Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd.
parent company
Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. other
Majority-owned subsidiary of
Kweichow Moutai Distillery (Group) Logistics Co., Ltd.
the parent company
Guizhou Xijiu Co., Ltd. other
Kweichow Moutai Distillery (Group) Circular Economy Industrial Wholly-owned subsidiary of the
Investment Development Co., Ltd. parent company
Kweichow Moutai Distillery (Group) Real Estate Investment Wholly-owned subsidiary of the
Development Co., Ltd. parent company
Kweichow Moutai Distillery (Group) Technology Development Wholly-owned subsidiary of the
Co., Ltd. parent company
Guizhou Maotai Ecological Agriculture Sales Co., Ltd. other
Kweichow Moutai Logistics Park Grain Storage Co., Ltd. other
Majority-owned subsidiary of
Kweichow Zunyi Moutai Airport Co., Ltd.
the parent company
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. other
Guizhou Xijiu Sales Co., Ltd. other
Gui Zhou New Huaxi Glass Co., Ltd other
Majority-owned subsidiary of
Maotai (Guizhou) Investment Fund (L.P.)
the parent company
Majority-owned subsidiary of
Moutai (Guizhou) Investment Management Co., Ltd.
the parent company
Wholly-owned subsidiary of the
Shanghai Kweichow Moutai Industrial Co., Ltd.
parent company
140 / 158
ANNUAL REPORT 2022
Shanghai Rencai Printing Affairs Co., Ltd. other
Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd. other
Wholly-owned subsidiary of the
Hotel Management Company of Moutai Group
parent company
Kweichow Zunyi Moutai Airport Ecological Park Investment and
other
Development Co., Ltd.
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Wholly-owned subsidiary of the
Ltd. parent company
Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai Majority-owned subsidiary of
S.E.Z the parent company
Wholly-owned subsidiary of the
Moutai Financial Leasing Co., Ltd
parent company
Wholly-owned subsidiary of the
Kweichow Moutai Group Marketing Co., Ltd.
parent company
Huagui Life Insurance Co., Ltd. other
Guiyang GYB Financial Leasing Co., Ltd. other
Bank of Guizhou Co., Ltd. other
Guizhou Zunpeng Liquor Industry Co., Ltd. other
Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork
other
Co., Ltd.
Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer
other
Co., Ltd.
Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. other
Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Majority-owned subsidiary of
Technology Development Co., Ltd. the parent company
Others
(1) ChangLi Moutai Liquor Trade Co., Ltd. is a wholly-owned subsidiary of Kweichow Moutai Distillery
Group Changli Liquorry Co., Ltd.;
(2) Shanghai Moutai Trading Co., Ltd. is a wholly-owned subsidiary of Shanghai Kweichow Moutai
Industrial Co., Ltd.;
(3) Guizhou Fuming Packaging Co., Ltd is a majority-owned subsidiary of Kweichow Moutai Distillery
(Group) Technology Development Co., Ltd.;
(4) Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. is a majority-owned
subsidiary of Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd.;
(5) Guizhou Jiu yuan Property Co., Ltd. is a majority-owned subsidiary of China Kweichow Moutai
Distillery (Group) Cultural Tourism Co., Ltd.;
(6) Kweichow Moutai (group) International Travel Service Co., Ltd. is a wholly-owned subsidiary of
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd.;
(7) Kweichow Moutaichun Marketing Company is a wholly-owned subsidiary of Kweichow Moutai
Distillery (Group) Technology Development Co., Ltd.;
(8) Health Industry Co., Ltd. of Kweichow Moutai Group. is a majority-owned subsidiary of Kweichow
Moutai Liquorry (Group) Health Liquor Co., Ltd.;
(9) Description of Guizhou Baijin Liquor Sales Co., Ltd.: In 2022, the name of KWEICHOW MOUTAI
WINERY (GROUP) BAIJIN LIQUOR SALES CO., LTD. was changed to Guizhou Baijin Liquor Sales
Co., Ltd. which is a wholly-owned subsidiary of Guizhou Baijin Liquor Co., Ltd.;
(10) Description of name and equity change of Guizhou Baijin Liquor Co., Ltd.: In 2022, the name of
KWEICHOW MOUTAI WINERY (GROUP)BAIJIN LIQUOR CO. was changed to Guizhou Baijin
Liquor Co., Ltd. Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. transferred and sold all of
its original 40% equity;
(11) Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. is a wholly-owned subsidiary of
Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd.;
(12) Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment Development Co.,
Ltd. is a wholly-owned subsidiary of Kweichow Moutai Distillery (Group) Real Estate Investment
Development Co., Ltd.;
141 / 158
ANNUAL REPORT 2022
(13) Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. is a wholly-owned subsidiary of
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd.;
(14) Guizhou Maotai Ecological Agriculture Sales Co., Ltd. is a wholly-owned subsidiary of Kweichow
Moutai (Group) Ecological Agriculture Industry Development Co., Ltd.;
(15) Kweichow Moutai Logistics Park Grain Storage Co., Ltd. is a majority-owned subsidiary of
Kweichow Moutai Distillery (Group) Logistics Co., Ltd.;
(16) Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. is a majority-owned subsidiary of
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.;
(17) Guizhou Xijiu Sales Co., Ltd. is a wholly-owned subsidiary of Guizhou Xijiu Co., Ltd.;
(18) GUI ZHOU NEW HUAXI GLASS CO., LTD is a majority-owned subsidiary of Kweichow Moutai
Distillery (Group) Technology Development Co., Ltd.;
(19) Shanghai Rencai Printing Affairs Co., Ltd. is an associate of Kweichow Moutai Distillery (Group)
Technology Development Co., Ltd.;
(20) Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd.: In 2022, Kweichow Moutai Distillery
(Group) Technology Development Co., Ltd. transferred and sold all of its original 51% equity;
(21) Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co., Ltd. is a wholly-
owned subsidiary of Kweichow Zunyi Moutai Airport Co., Ltd.;
(22) Huagui Life Insurance Co., Ltd. is an associate of the parent company;
(23) Guiyang GYB Financial Leasing Co., Ltd. is an associate of the parent company;
(24) Bank of Guizhou Co., Ltd. is an associate of the parent company;
(25) Guizhou Zunpeng Liquor Industry Co., Ltd. is a majority-owned subsidiary of Kweichow Moutai
Distillery (Group) Circular Economy Industrial Investment Development Co., Ltd.;
(26) Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. is a wholly-owned
subsidiary of Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.;
(27) Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. is a majority-owned
subsidiary of Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment Development
Co., Ltd.;
(28) Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. is a wholly-owned subsidiary of Kweichow
Moutai Liquorry (Group) Health Liquor Co., Ltd.;
(29) Description of name and equity change of Guizhou Xijiu Co., Ltd.: In 2022, the controlling
shareholder of the Company, China Kweichow Moutai Distillery (Group) Co., Ltd. released an
announcement, proposing to transfer 82% equity of GUIZHOU MAOTAI DISTILLERT (GROUP) XIJIU
CO., LTD. to State-owned Assets Supervision and Administration Commission of Guizhou Province. On
December 22, 2022, the name of GUIZHOU MAOTAI DISTILLERT (GROUP) XIJIU CO., LTD. was
changed to Guizhou Xijiu Co., Ltd.
11.4 Related transactions
A. Related transaction on purchase and sales of goods, and rendering and receipt of services
Purchase of goods/receipt of services
√Applicable □N/A
Unit: CNY
Related
Related party party Current period Prior period
transaction
Right to use
China Kweichow Moutai Distillery (Group) Co., Ltd. the 1,639,842,153.56 1,332,728,678.71
trademark
Goods
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. transportatio 176,888,990.77 215,293,693.93
n service
Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Purchase of
261,924,856.26 186,644,711.14
Zhuhai S.E.Z goods
Purchase of
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. 186,087,312.72 242,357,820.96
goods
Kweichow Moutai Distillery (Group) Circular Economy Purchase of
130,101,300.00 150,339,280.00
Industrial Investment Development Co., Ltd. goods
142 / 158
ANNUAL REPORT 2022
Purchase of
Gui Zhou New Huaxi Glass Co., Ltd 102,311,289.42 60,580,925.36
goods
Purchase of
Guizhou Fuming Packaging Co. Ltd 88,324,091.21 73,963,369.22
goods
Purchase of
Kweichow Moutai Logistics Park Grain Storage Co., Ltd. 63,728,794.52 109,617,071.39
goods
China Kweichow Moutai Distillery (Group) Cultural Purchase of
159,019.22 33,274.34
Tourism Co., Ltd. goods
Purchase of
Guizhou Maotai Ecological Agriculture Sales Co., Ltd. 74,203.56
goods
Purchase of
Shanghai Rencai Printing Affairs Co., Ltd. 12,490,908.50
goods
Purchase of
Guizhou Xijiu Co., Ltd. 2,892,054.00
goods
Kweichow Moutai Liquorry (Group) Health Liquor Sales Purchase of
2,203,000.00
Co., Ltd. goods
Kweichow Moutai Distillery (Group) Technology Purchase of
1,766,767.13
Development Co., Ltd. goods
Kweichow Moutai Distillery (Group) Guiyang High-tech Purchase of
9,741,492.16
Real Estate Investment Development Co., Ltd. offices
Comprehens
China Kweichow Moutai Distillery (Group) Co., Ltd. ive service 194,415.10 379,394.43
fee
Purchase of
Huagui Life Insurance Co., Ltd. 499,610.16 477,500.00
insurances
Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. Labor cost 229,128,409.82
Kweichow Moutai Liquorry (Group) Health Liquor Sales
Labor cost 4,091,215.49
Co., Ltd.
Hotel Management Company of Moutai Group Labor cost 67,315,342.78 61,437,621.87
Kweichow Moutai Logistics Park Grain Storage Co., Ltd. Labor cost 64,402,800.47 95,320,754.85
Kweichow Moutai Distillery (Group) Technology
Labor cost 25,273,693.09 201,743,603.42
Development Co., Ltd.
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. Labor cost 5,224,867.44 573,223.59
Kweichow Moutai (group) International Travel Service Co.,
Labor cost 2,684,355.24 24,511,528.39
Ltd.
Kweichow Moutai Distillery (Group) Circular Economy
Labor cost 1,939,970.05 15,019,725.64
Industrial Investment Development Co., Ltd.
Kweichow Moutai Distillery (Group) Guiyang High-tech
Labor cost 25,661.62
Real Estate Investment Development Co., Ltd.
Acceptance
of water
Guizhou Xijiu Co., Ltd. 5,064,200.00 3,925,458.51
supply
services
Other utility
costs such
Kweichow Moutai Distillery (Group) Guiyang High-tech as water,
48,625.95
Real Estate Investment Development Co., Ltd. electricity
and gas
(purchase)
Sales of goods/rendering of labor services
√Applicable □N/A
143 / 158
ANNUAL REPORT 2022
Unit: CNY
Related party
Related party Current period Prior period
transaction
Sales of 5,241,503,023.9 5,193,690,831.8
Kweichow Moutai Group Marketing Co., Ltd.
goods 0 5
Sales of
Hotel Management Company of Moutai Group 23,529,334.51 19,511,175.24
goods
Sales of
Shanghai Kweichow Moutai Industrial Co., Ltd. 6,435,461.94 1,309,890.28
goods
China Kweichow Moutai Distillery (Group) Cultural Sales of
2,999,915.04 4,778,230.09
Tourism Co., Ltd. goods
Sales of
Beijing Moutai Trading Co., Ltd. 1,568,516.81 2,729,246.02
goods
Kweichow Zunyi Moutai Airport Ecological Park Sales of
466,152.22 315,142.49
Investment and Development Co., Ltd. goods
Sales of
China Kweichow Moutai Distillery (Group) Co., Ltd. 53,978.23 7,293,281.43
goods
Sales of
Guizhou Xijiu Co., Ltd. 3,372,637.17
goods
Sales of
Shanghai Moutai Trading Co., Ltd. 5,526,159.30
goods
Kweichow Moutai Liquorry (Group) Health Liquor Sales of
1,723,539.82
Co., Ltd. goods
Guizhou Renhuai Shenren Packaging and Printing
Labor cost 571,925.36
Co., Ltd.
Kweichow Moutai Liquorry (Group) Health Liquor
Labor cost 239,611.71
Co., Ltd.
Kweichow Moutai Distillery (Group) Technology
Labor cost 86,782.75 682,486.89
Development Co., Ltd.
Guizhou Xijiu Co., Ltd. Labor cost 560,412.74
Kweichow Moutai Distillery (Group) Logistics Co.,
Labor cost 27,771.05
Ltd.
Notes to purchase or sale of goods, and rendering or receipt of labor services
□Applicable √N/A
B. Related entrusted management / contracting and entrusted management / outsourcing
Entrusted management / contracting of the Company:
□Applicable √N/A
Description of related trusteeship / contract
□Applicable √N/A
Entrusted management / outsourcing of the Company
□Applicable √N/A
Description of related management / outsourcing
□Applicable √N/A
C. Related lease
The Company as the lessor:
√Applicable □N/A
Unit: CNY
Types of Lease income in the Lease income in the
Lessee
leased assets current period prior period
144 / 158
ANNUAL REPORT 2022
China Kweichow Moutai Distillery Plant and
488,903.16 330,275.22
(Group) Co., Ltd. buildings
Kweichow Moutai Group Plant and
495,146.47 495,146.47
Marketing Co., Ltd. buildings
145 / 158
ANNUAL REPORT 2022
The Company as the lessee:
√Applicable □N/A
Unit: CNY
Variable lease payments
Rental expenses of short-term lease and
that are not included in Interest expenses on the lease
low-value asset lease subject to simplified Paid rent Added right-of-use assets
Types of leased the lease liabilities (if liabilities assumed
Lessor treatment (if applicable)
assets applicable)
Current Current Current
Current period Prior period Prior period Prior period Current period Prior period Prior period
period period period
China Kweichow Moutai Distillery Plant and
864,000.00 864,000.00 4,752,406.27 4,683,241.02 5,142,834.35 157,301,942.56
(Group) Co., Ltd. buildings
China Kweichow Moutai Distillery
Land use rights 4,523,090.00 1,130,772.50 2,677,710.63 2,732,123.11 80,715,978.86
(Group) Co., Ltd.
Kweichow Moutai Distillery (Group)
Plant and
Guiyang High-tech Real Estate 1,578,921.60 789,460.80 245,211.33 286,594.20 8,429,239.61
buildings
Investment Development Co., Ltd.
Kweichow Zunyi Moutai Airport Co., Plant and
337,599.08 236,674.53 367,983.00
Ltd. buildings
Kweichow Moutai Distillery (Group)
Plant and
Circular Economy Industrial 3,582,654.81
buildings
Investment Development Co., Ltd.
Plant and
Beijing Moutai Trading Co., Ltd. 4,678.90 5,100.00
buildings
Plant and
Kweichow Moutai Distillery (Group) buildings,
914,430.26 32,394,379.61
Technology Development Co., Ltd. machinery and
equipment
Description of related lease
□Applicable √N/A
146 / 158
ANNUAL REPORT 2022
D. Remuneration of key management personnel
□Applicable √N/A
E. Other related party transactions
√Applicable □N/A
A. Kweichow Moutai Group Finance Co., Ltd. a majority-owned company of the Company, has
businesses with its related parties in terms of deposit, loan, discount and letter of guarantee.
“Customer deposits and balances from banks and other financial institutions” mean the deposit balances
and accrued interests of the related parties at Kweichow Moutai Group Finance Co., Ltd.; “Interest
expenses” mean the interests on deposits payable by Kweichow Moutai Group Finance Co., Ltd. to the
related parties; “Interest income” means the interest collected by Kweichow Moutai Group Finance Co.,
Ltd. from the related parties for its provision of the loan transaction; “Loans and advances” mean the loan
balances provided by Kweichow Moutai Group Finance Co., Ltd. to the related parties. (Unit: CNY)
a. Customer deposits and balances from banks and other financial institutions
Related party December 31, 2022
China Kweichow Moutai Distillery (Group) Co., Ltd. 3,334,281,673.28
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd. 1,655,007,713.02
Kweichow Moutai Group Marketing Co., Ltd. 4,349,581,600.42
Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. 633,074,824.51
Kweichow Zunyi Moutai Airport Co., Ltd. 286,597,483.86
Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. 157,012,780.22
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. 152,061,971.18
Kweichow Moutaichun Marketing Company 208,380,623.01
ChangLi Moutai Liquor Trade Co., Ltd. 233,713,993.20
Kweichow Moutai Distillery (Group) Circular Economy Industrial
244,758,921.61
Investment Development Co., Ltd.
Guizhou Zunpeng Liquor Industry Co., Ltd. 294,795,599.01
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. 300,901,972.62
Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z 48,833,771.36
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. 382,233,628.98
Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. 89,086,167.96
Shanghai Moutai Trading Co., Ltd. 52,064,594.69
Beijing Moutai Trading Co., Ltd. 113,853,429.58
Guizhou Maotai Ecological Agriculture Sales Co., Ltd. 19,698,475.42
Kweichow Moutai Logistics Park Grain Storage Co., Ltd. 7,340,557.09
Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. 60,916,598.81
Health Industry Co., Ltd. of Kweichow Moutai Group. 19,125,210.06
Guizhou Fuming Packaging Co. Ltd 11,394,642.58
Guizhou Jiuyuan Property Co., Ltd. 29,753,148.43
Kweichow Moutai (group) International Travel Service Co., Ltd. 26,094,729.25
Kweichow Moutai Distillery (Group) Real Estate Investment Development
23,867,085.01
Co., Ltd.
Shanghai Kweichow Moutai Industrial Co., Ltd. 43,579,726.72
Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. 6,874,199.52
Hotel Management Company of Moutai Group 50,995,943.44
Gui Zhou New Huaxi Glass Co., Ltd 24,457,923.23
Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. 1,094,520.85
147 / 158
ANNUAL REPORT 2022
Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. 711,787.31
Kweichow Moutai (Group) Ecological Agriculture Industry Development
208,512.26
Co., Ltd.
Moutai Financial Leasing Co., Ltd 5,287.91
Moutai (Guizhou) Investment Management Co., Ltd. 4,032.97
Kweichow Zunyi Moutai Airport Ecological Park Investment and
3,514.91
Development Co., Ltd.
Maotai (Guizhou) Investment Fund (L.P.) 846.41
Guizhou Hengdao Forestry and Agriculture Technology Development Co.,
27.95
Ltd.
Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. 11,670,729.18
Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology
5,107.60
Development Co., Ltd.
Total 12,874,043,355.42
b. Interest expenses
Current
Related party reporting
period
28,811,523.3
Guizhou Xijiu Sales Co., Ltd.
9
27,445,198.7
Kweichow Moutai Distillery (Group) Technology Development Co., Ltd.
5
17,622,560.7
Kweichow Moutai Group Marketing Co., Ltd.
4
China Kweichow Moutai Distillery (Group) Co., Ltd. 9,331,364.94
Kweichow Moutaichun Marketing Company 3,651,119.60
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. 2,538,298.58
ChangLi Moutai Liquor Trade Co., Ltd. 2,364,961.46
Guizhou Zunpeng Liquor Industry Co., Ltd. 2,534,657.65
Kweichow Moutai Liquorry (Group) Health Liquor Sales Co., Ltd. 1,601,934.07
Kweichow Moutai Distillery (Group) Circular Economy Industrial Investment
1,825,616.62
Development Co., Ltd.
Kweichow Zunyi Moutai Airport Co., Ltd. 2,331,439.32
Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. 602,628.76
Guizhou Baijin Liquor Sales Co., Ltd. 262,285.04
China Kweichow Moutai Distillery (Group) Cultural Tourism Co., Ltd. 712,081.81
Guizhou Jiuyuan Property Co., Ltd. 451,888.16
Health Industry Co., Ltd. of Kweichow Moutai Group. 228,228.42
Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai S.E.Z 338,111.19
Guizhou Maotai Ecological Agriculture Sales Co., Ltd. 255,008.11
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. 815,661.10
Shanghai Moutai Trading Co., Ltd. 236,597.15
Beijing Moutai Trading Co., Ltd. 204,185.32
Kweichow Moutai Distillery (Group) Sanya Investment Co., Ltd. 242,065.55
Guizhou Xijiu Co., Ltd. 106,253.40
Kweichow Moutai Distillery (Group) Real Estate Investment Development Co., Ltd. 148,394.67
Guizhou Baijin Liquor Co., Ltd. 67,006.43
148 / 158
ANNUAL REPORT 2022
Shanghai Kweichow Moutai Industrial Co., Ltd. 99,284.51
Kweichow Moutai (group) International Travel Service Co., Ltd. 87,576.28
Kweichow Moutai Logistics Park Grain Storage Co., Ltd. 108,806.11
Hotel Management Company of Moutai Group 117,010.65
Guizhou Fuming Packaging Co. Ltd 95,285.07
Kweichow Moutai Distillery Group Changli Liquorry Co., Ltd. 59,060.03
Guizhou Renhuai Renshuai Liquor Industry Co., Ltd. 41,444.56
Gui Zhou New Huaxi Glass Co., Ltd 44,176.66
Kweichow Moutai Distillery (Group) Guiyang Business Co., Ltd. 20,844.06
Tianchao Shangpin Liquor Industry (Guizhou) Co.，Ltd. 18,273.96
Kweichow Moutai Distillery (Group) Guiding Jingqi Glasswork Co., Ltd. 154,157.83
Kweichow Moutai (Group) Ecological Agriculture Industry Development Co., Ltd. 1,655.27
Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment
1,100.33
Development Co., Ltd.
Kweichow Moutai Distillery (Group) Hongyingzi Agricultural Technology
5,607.60
Development Co., Ltd.
Kweichow Moutai Distillery (Group) Lvsheng Organic Fertilizer Co., Ltd. 803.24
Moutai Financial Leasing Co., Ltd 19.23
Moutai (Guizhou) Investment Management Co., Ltd. 14.67
Kweichow Zunyi Moutai Airport Ecological Park Investment and Development Co.,
12.79
Ltd.
Maotai (Guizhou) Investment Fund (L.P.) 3.08
Guizhou Hengdao Forestry and Agriculture Technology Development Co., Ltd. 0.08
105,584,206.
Total
24
c. Loans and advances
December 31,
Item Related party
2022
Kweichow Moutai Logistics Park
Mortgage loan 57,730,000.00
Grain Storage Co., Ltd.
China Kweichow Moutai Distillery
Credit loan 3,500,000,000.00
(Group) Co., Ltd.
Total 3,557,730,000.00
Less: Provision for impairment of loans 88,943,250.00
Carrying amount of loans and advances 3,468,786,750.00
d. Interest income
Current
Item Related party reporting
period
China Kweichow Moutai Distillery
Loan interest income 126,595,256.84
(Group) Co., Ltd.
Kweichow Moutai Logistics Park
Loan interest income 359,002.00
Grain Storage Co., Ltd.
Total 126,954,258.84
e. Entrusted loan
149 / 158
ANNUAL REPORT 2022
December
Principal Borrower
31, 2022
Guizhou Hengdao Forestry and
Kweichow Moutai (Group) Ecological
Agriculture Technology Development 9,955,184.18
Agriculture Industry Development Co., Ltd.
Co., Ltd.
f. Kweichow Moutai Group Finance Co., Ltd. a majority-owned company of the Company, has purchased
the bonds issued by Guiyang GYB Financial Leasing Co., Ltd. from the open market at a cost of CNY 20
million. The interest income confirmed in the current period is CNY 0.86 million. As at the end of the
period, the balance of the provision for impairment of this bond investment is CNY 0.01million. The
balance of the accrued interest is CNY 0.15 million. The carrying amount is CNY 20.14 million.
B. The deposit balance of the Company in Bank of Guizhou at the end of the period is CNY 20,851.24
million (including a large-amount deposit of CNY 2,000 million). The interest income of the current period
is CNY 632.53 million. The investment income is CNY 63.84 million. Kweichow Moutai Group Finance
Co., Ltd., a majority-owned company of the Company, has purchased the bonds issued by Bank of
Guizhou Co., Ltd. from the open market at a cost of CNY 300 million. The interest income confirmed in
the current period is CNY 3.7 million. As at the end of the period, the balance of the provision for
impairment of this bond investment is CNY 0.17 million. The balance of the accrued interest is CNY 0.43
million. The carrying amount is CNY 300.25 million.
11.5 Receivables and payables of related parties
A. Receivables
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Item Related party book Bad debt book Bad debt
balance provision balance provision
Kweichow Moutai Distillery
Other (Group) Guiyang High-tech Real
100,000.00 100,000.00
receivables Estate Investment Development Co.,
Ltd.
Other China Kweichow Moutai Distillery
88,817.40
receivables (Group) Co., Ltd.
Other receivables of Kweichow Moutai Distillery (Group) Guiyang High-tech Real Estate Investment
Development Co., Ltd. are the leasing security deposits to be paid by GUIZHOU MOUTAI CHIEW
IMPORT AND EXPORT CO., LTD., a majority-owned company of the Company.
Other receivables of China Kweichow Moutai Distillery (Group) Co., Ltd. refer to receivable house rent
of Guojiu Maotai Customized Marketing (Guizhou) Co., Ltd., a controlling subsidiary of the Company.
B. Payables
√Applicable □N/A
Unit: CNY
Book balance at
Book balance at
the beginning of
Item Related party the end of the
the reporting
reporting period
period
Other payables China Kweichow Moutai Distillery (Group) Co., Ltd. 907,115,478.82 806,014,062.86
Other payables Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. 591,695.00 591,695.00
Kweichow Moutai Distillery (Group) Technology Development
Other payables 71,137,207.29 47,171,388.10
Co., Ltd.
Other payables Kweichow Moutai Distillery (Group) Logistics Co., Ltd. 57,704,428.54 70,400,854.08
150 / 158
ANNUAL REPORT 2022
Other payables Hotel Management Company of Moutai Group 4,416,637.72 4,510,977.34
Other payables Shanghai Rencai Printing Affairs Co., Ltd. 1,400,000.00 1,395,000.00
Other payables Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. 1,015,643.50 949,643.50
Other payables Guizhou Fuming Packaging Co. Ltd 1,000,000.00 890,000.00
Other payables Gui Zhou New Huaxi Glass Co., Ltd 1,000,000.00 888,000.00
Chinese-Foreign Venture Dragon And Lion Cap Co., Ltd Zhuhai
Other payables 1,000,000.00 965,000.00
S.E.Z
Kweichow Moutai Liquorry (Group) Health Liquor Sales Co.,
Other payables 7,091,215.49
Ltd.
Other payables Kweichow Moutai Logistics Park Grain Storage Co., Ltd. 1,500,000.00 1,609,349.28
Other payables Beijing Moutai Trading Co., Ltd. 700,000.00
Other payables Kweichow Moutai Group Marketing Co., Ltd. 260,000.00 260,000.00
Kweichow Zunyi Moutai Airport Ecological Park Investment and
Other payables 50,000.00 50,000.00
Development Co., Ltd.
Other payables Shanghai Kweichow Moutai Industrial Co., Ltd. 50,000.00 100,000.00
Kweichow Moutai (Group) Ecological Agriculture Industry
Other payables 23,777.50
Development Co., Ltd.
Kweichow Moutai Distillery (Group) Circular Economy Industrial
Other payables 13,710,130.00 158,992.00
Investment Development Co., Ltd.
Other payables Guizhou Xijiu Co., Ltd. 0.39 504,376.93
China Kweichow Moutai Distillery (Group) Cultural Tourism Co.,
Other payables 124,590.00 110,000.00
Ltd.
Kweichow Moutai Distillery (Group) Guiyang High-tech Real
Other payables 23,357.59
Estate Investment Development Co., Ltd.
Other payables Huagui Life Insurance Co., Ltd. 37,375.00
Other payables Shanghai Moutai Trading Co., Ltd. 100,000.00
Other payables Kweichow Moutai (group) International Travel Service Co., Ltd. 212,350.00
Other payables ChangLi Moutai Liquor Trade Co., Ltd. 14,696.65
Accounts
Hotel Management Company of Moutai Group 3,069,258.03 4,840,909.43
payable
Accounts
Kweichow Moutai Logistics Park Grain Storage Co., Ltd. 59,076,608.00 58,396,226.41
payable
Accounts Kweichow Moutai Distillery (Group) Technology Development
986,180.26 14,855,345.00
payable Co., Ltd.
Accounts Kweichow Moutai Distillery (Group) Circular Economy Industrial
8,776,190.66 15,019,725.64
payable Investment Development Co., Ltd.
Accounts
Guizhou Renhuai Shenren Packaging and Printing Co., Ltd. 16,181,715.39
payable
Accounts
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. 47,212,974.54 43,448,338.14
payable
Accounts
Kweichow Moutai Group Marketing Co., Ltd. 2,217.00
payable
Accounts
Kweichow Moutai Liquorry (Group) Health Liquor Co., Ltd. 246,490,916.16
payable
Accounts
Guizhou Xijiu Co., Ltd. 5,064,200.00
payable
Contractual
Kweichow Moutai Group Marketing Co., Ltd. 75,925,710.62 79,358,066.37
liabilities
Contractual China Kweichow Moutai Distillery (Group) Cultural Tourism Co.,
2,978.76
liabilities Ltd.
Contractual
Shanghai Kweichow Moutai Industrial Co., Ltd. 390,966.37 41,444.25
liabilities
Contractual
Beijing Moutai Trading Co., Ltd. 1,292,962.83 221,238.94
liabilities
Contractual Kweichow Zunyi Moutai Airport Ecological Park Investment and
10,036.28 38,221.24
liabilities Development Co., Ltd.
Contractual
Kweichow Zunyi Moutai Airport Co., Ltd. 8,046.90
liabilities
151 / 158
ANNUAL REPORT 2022
Contractual
Kweichow Moutai Distillery (Group) Logistics Co., Ltd. 5,306.19
liabilities
Leasing
China Kweichow Moutai Distillery (Group) Co., Ltd. 248,946,125.77 245,892,878.88
liabilities
Leasing Kweichow Moutai Distillery (Group) Guiyang High-tech Real
5,953,575.42 7,212,098.95
liabilities Estate Investment Development Co., Ltd.
Leasing Kweichow Moutai Distillery (Group) Technology Development
33,308,809.87
liabilities Co., Ltd.
11.6 Commitment of related parties
□Applicable √N/A
11.7 Others
□Applicable √N/A
12. Subsequent events
12.1 Important non-adjustment events
□Applicable √N/A
12.2 Profit distribution
√Applicable □N/A
Unit: CNY
Profit or dividend to be distributed 32,549,341,195.80
12.3 Sales return
□Applicable √N/A
12.4 Notes to other subsequent events after the balance sheet date
□Applicable √N/A
13. Notes to major account of the Company’s financial statements
13.1 Accounts receivable
A. Disclosure by aging
√Applicable □N/A
Unit: CNY
Aging Closing book balance
Within 1 year 20,670,923,010.62
Subtotal for within 1 year 20,670,923,010.62
1-2 years
2-3 years
3-4 years
4-5 years
More than 5 years
Total 20,670,923,010.62
B. Disclosed by bad debt provision methods
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Category book balance Bad debt provision book balance Bad debt provision
Carrying Carrying
Proportion Proportion amount Proportion Proportion amount
Amount Amount Amount Amount
(%) (%) (%) (%)
152 / 158
ANNUAL REPORT 2022
Bad debt
provision
assessed
individually
Bad debt
provision
20,670,923,010.62 100 20,670,923,010.62 1,480,080,983.77 100 1,480,080,983.77
assessed by
groups
Including:
Combination
of related
parties
20,670,923,010.62 100 20,670,923,010.62 1,480,080,983.77 100 1,480,080,983.77
within the
scope of
consolidation
Total 20,670,923,010.62 / / 20,670,923,010.62 1,480,080,983.77 / / 1,480,080,983.77
Bad debt provision assessed by groups:
□Applicable √N/A
C. Top five accounts receivable based on debtors
√Applicable □N/A
Unit: CNY
Proportion to total Closing
closing balance of balance of
Entity Closing balance
accounts receivable bad debt
(%) provision
Kweichow Moutai Sales Co., Ltd. 18,219,591,126.66 88.14
GUIZHOU MOUTAI CHIEW
IMPORT AND EXPORT CO., 1,376,666,440.96 6.66
LTD.
Kweichow Moutai-Flavor Liquor
1,074,665,443.00 5.20
Marketing Co., Ltd.
Total 20,670,923,010.62 100.00
13.2 Other receivables
A. Presentation of items
√Applicable □N/A
Unit: CNY
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 15,092,761.22 9,210,501.43
Total 15,092,761.22 9,210,501.43
B. Other receivables
a. Disclosure by aging
√Applicable □N/A
Unit: CNY
Aging Book balance at the end of the reporting period
Within 1 year 14,654,823.06
Subtotal for within 1 year 14,654,823.06
1-2 years 492,822.00
2-3 years
3-4 years 7,313.00
4-5 years
More than 5 years 37,951.22
Total 15,192,909.28
153 / 158
ANNUAL REPORT 2022
b. Details of classification by nature
√Applicable □N/A
Unit: CNY
Book balance at the end of the Book balance at the beginning of
Nature
reporting period the reporting period
Petty cash 5,471,487.70 2,840,284.11
Current Account 9,721,421.58 11,579,530.20
Total 15,192,909.28 14,419,814.31
c. Details of bad debt provision
√Applicable □N/A
Unit: CNY
Stage I Stage II Stage III
Bad debt provision Lifetime ECL Lifetime ECL Total
12month ECL
(not impaired) (impaired)
As at January 1, 2022 81,167.43 5,128,145.45 5,209,312.88
Balance at 1 January 2022 in
the current period
-- Transfer to stage II -25,626.74 25,626.74
-- Transfer to stage III
-- Reverse to stage II
-- Reverse to stage I
Provision 6,858.28 41,168.37 48,026.65
Reversal 56,898.95 2,480,192.52 2,537,091.47
Elimination
Write-off 2,620,100.00 2,620,100.00
Other changes
As at December 31, 2022 5,500.02 94,648.04 100,148.06
Explanations on significant changes in the book balance of other receivables where there are changes in
provision for the current period:
□Applicable √N/A
d. Details of bad debt provision
√Applicable □N/A
Unit: CNY
Changes in the current period
Opening Closing
Category Recovery or Elimination Other
balance Provision balance
reversal or write-off changes
Bad debt
provision
5,209,312.88 48,026.65 2,537,091.47 2,620,100.00 100,148.06
assessed by
aging
Total 5,209,312.88 48,026.65 2,537,091.47 2,620,100.00 100,148.06
Significant recovery or reversal of bad debt provision for the current period:
□Applicable √N/A
e. Other receivables actually charged off in the current period
√Applicable □N/A
Unit: CNY
Item Amount charged off
Other receivables actually charged off 2,620,100.00
Specifically, significant other receivables charged off:
□Applicable √N/A
154 / 158
ANNUAL REPORT 2022
Notes to charge-off of other receivables:
□Applicable √N/A
f. Top five other receivables based on debtors
√Applicable □N/A
Unit: CNY
Proportion
to the total
Bad debt
closing
Closing provision
Entity Nature Aging balance of
balance Closing
other
balance
receivables
(%)
China Securities 19.75
Current Within 1
Depository and Clearing 3,000,000.00
Account year
Co., Ltd. Shanghai Branch
Chinese Research 10.00
Current Within 1
Academy of 1,520,000.00
Account year
Environmental Sciences
Within 1 4.21
Luo Meng Petty cash 638,979.43
year
Within 1 3.42
Wu Lanlan Petty cash 519,215.00
year
Within 1 3.31
Luo Nanbo Petty cash 502,197.00
year
Total / 6,180,391.43 / 40.69
A. Receivables of China Securities Depository and Clearing Corporation Limited Shanghai Branch are
the service charges for distribution of cash dividends.
B. Receivables of Chinese Research Academy of Environmental Sciences are the prepaid COP15 forum
fee for Moutai ecological civilization practice exchange and publicity.
C. Luo Meng is an employee of the Company, and the accounts are the borrowings for handling the
litigation and anti-counterfeit businesses.
D. Wu Lanlan is an employee of the Company, and the money is borrowed for applying for license for
the vehicle of the Company.
E. Luo Nanbo is an employee of the Company, and the accounts are the borrowings for handling the
litigation and anti-counterfeit businesses.
13.3 Long-term equity investments
√Applicable □N/A
Unit: CNY
Closing balance Opening balance
Item Carrying Carrying
book balance Provision book balance Provision
amount amount
Investment
in 1,624,535,587.55 1,624,535,587.55 1,624,535,587.55 1,624,535,587.55
subsidiaries
Total 1,624,535,587.55 1,624,535,587.55 1,624,535,587.55 1,624,535,587.55
Investments in subsidiaries
√Applicable □N/A
Unit: CNY
Closing
Increase Decrease Provision
balance of
in the in the for
Investee Opening balance Closing balance provisions
current current impairment
for
period period in the
impairment
155 / 158
ANNUAL REPORT 2022
current
period
Kweichow Moutai Sales
Co., Ltd.
9,500,000.00 9,500,000.00
GUIZHOU MOUTAI
CHIEW IMPORT AND 5,600,000.00 5,600,000.00
EXPORT CO., LTD.
Kweichow Moutai Group
Finance Co., Ltd.
1,275,000,000.00 1,275,000,000.00
Moutai Custom Marketing
(Guizhou) Co., Ltd.
14,000,000.00 14,000,000.00
Beijing Friendship
Messenger Trading Co., Ltd.
22,507,157.75 22,507,157.75
Kweichow Moutai Paris
Trading
80,728,429.80 80,728,429.80
Guizhou Laymau Liquor
Industry Co., Ltd.
17,200,000.00 17,200,000.00
Kweichow Moutai-Flavor
Liquor Marketing Co., Ltd.
200,000,000.00 200,000,000.00
Total 1,624,535,587.55 1,624,535,587.55
13.4 Operating revenue and costs of sales
A. Operating revenue and costs of sales
√Applicable □N/A
Unit: CNY
Current period Prior period
Item
Revenue Cost Revenue Cost
Main business 70,970,544,362.02 10,230,567,077.09 37,237,062,420.65 8,898,857,511.93
Others 331,252,514.91 189,675,060.37 107,836,543.52 93,055,316.44
Total 71,301,796,876.93 10,420,242,137.46 37,344,898,964.17 8,991,912,828.37
Note: Other business revenue and costs are mainly the revenue and costs of the business of Moutai
International Hotel and ice cream business.
B. Description of performance obligation
√Applicable □N/A
The revenue is confirmed when the customer acquires the control of the goods agreed in the contract and
the Company fulfills the contract performance obligation.
C. Description of allocation to the remaining performance obligations
√Applicable □N/A
The revenue of the performance obligations which have been contracted but not fulfilled or not
completely fulfilled in the current reporting period is CNY 1,179,446.26.
13.5 Investment income
√Applicable □N/A
Unit: CNY
Item Current period Prior period
Income from long-term equity investments under
47,596,490,707.35 44,741,153,786.43
cost method
Income from long-term equity investments under
equity method
Investment income on disposal of long-term equity
investments
Investment income from holding held-for-trading
financial assets
156 / 158
ANNUAL REPORT 2022
Dividend income from holding investments in other
equity instruments
Interest income from holding debt investments
Interest income from holding other debt investments
Investment income from disposal of held-for-trading
financial assets
Investment income from disposal of investments in
other equity instruments
Investment income from disposal of debt
investments
Investment income from disposal of other debt
investments
Income from debt reconstruction
Investment income from disposal of other debt
-1,505,395.94
investments
Interest income from holding large-amount deposits 63,840,000.00 59,761,333.33
Total 47,660,330,707.35 44,799,409,723.82
14. Supplementary information
14.1 Details of current non-recurring profit and loss
√Applicable □N/A
Unit: CNY
Item Amount Description
Gains and losses on disposal of non-current assets -20,567,757.19
Government grant included in the current profit and loss (except
for the government grant which are closely related to the business
14,973,304.55
of the company and are in accordance with the national unified
standard quota)
Other non-operating income and expenses except the above items -157,251,041.33
Other profit and loss items conforming to the definition of non-
63,840,000.00
recurring profit and loss
Less: The impact of income tax -24,751,373.49
The impact on non-controlling interests(After tax) 1,174,838.97
Total -75,428,959.45
The reasons shall be explained for the non-recurring profit and loss items defined by the company
according to the definition of “explanatory Announcement No. 1 of information disclosure of companies
offering securities to the public - non recurring profit and loss” and the items of non-recurring profit and
loss listed in the explanatory announcement of information disclosure of companies offering securities to
the public No. 1 - non recurring profit and loss as recurring profit and loss items.
□Applicable √N/A
14.2 Return on net assets and earnings per share
√Applicable □N/A
Earnings per share
Weighted
Profit in the reporting period Average return on Diluted
Basic earnings per
net assets (%) earnings per
share
share
Net profit attributable to ordinary
30.26 49.93 49.93
shareholders of the company
Net profit attributable to ordinary
shareholders of the company after 30.29 49.99 49.99
deducting non-recurring profit and loss
157 / 158
ANNUAL REPORT 2022
14.3 Differences of accounting data under domestic and foreign accounting standards
□Applicable √N/A
Chairman: Ding Xiongjun
Date of approval and submission by the Board: March 29, 2023
Amendment
□Applicable √N/A
158 / 158
