ANNUAL REPORT 2023

Stock Code: 600519 Stock Abbr.: Kweichow Moutai

KWEICHOW MOUTAI CO. LTD.ANNUAL REPORT 2023

1 / 175ANNUAL REPORT 2023

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 1256197800 shares by the end of 2023 all shareholders will be

distributed a cash dividend of RMB 308.76 (before tax) for every 10 shares with a total profit distribution

of RMB 38786363272.80. 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

2 / 175ANNUAL REPORT 2023

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 PromptsThe Company has elaborated the potential risks in the chapter of “The Company Discussion andAnalysis 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

recorded 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.

3 / 175ANNUAL REPORT 2023

Contents

Section I Definitions ............................... 5

Section II Company Profile and Key Financial Resul... 5

Section III Management’s Discussion and Analysis .... 9

Section IV Corporate Governance .................... 28

Section V Environment and Social Responsibility .... 47

Section VI Significant Events ...................... 53

Section VII Changes in Shares and Information abou.. 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.

4 / 175ANNUAL REPORT 2023

Section I Definitions

I. 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 2023

This report the report refers to Annual Report 2023

Section II Company Profile and Key Financial Results

I. 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

II. 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

III. 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

IV. 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

5 / 175ANNUAL REPORT 2023

V. 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

VI. 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 Tang Hongchun Liu Zonglei Yang Shu

accountant

VII. Key Accounting Data and Financial Indicators in the past three years

(I) Key accounting data

Monetary Unit: Yuan Currency: RMB

Year-on-

2022 years year 2021 years

Key accounting increase

2023 years

data of

After adjustment Before adjustment decrease After adjustment Before adjustment

(%)

Operating

147693604994.14124099843771.99124099843771.9919.01106190154843.76106190154843.76

revenue

Net profit

attributable to

shareholders of 74734071550.75 62717467870.12 62716443738.27 19.16 52435506622.16 52460144378.16

the listed

company

Net profits

deducting non-

recurring profits

and losses

74752564425.5262792896829.5762791872697.7219.0552556464900.2452581102656.24

attributable to

shareholders of

the listed

company

Net cash flows

from operating 66593247721.09 36698595830.03 36698595830.03 81.46 64028676147.37 64028676147.37

activities

Increase

At the end of 2022 or At the end of 2021

decrease

at the end

of the

current

period

At the end of 2023

compared

After adjustment Before adjustment with the After adjustment Before adjustment

same

period of

the

previous

year

Net assets

attributable to

shareholders of 215668571607.43 197480041239.46 197506672396.00 9.21 189511713508.90 189539368797.29

the listed

company

6 / 175ANNUAL REPORT 2023

Total assets 272699660092.25 254500826096.02 254364804995.25 7.15 255315103017.82 255168195159.90

Share capital 1256197800.00 1256197800.00 1256197800.00 1256197800.00 1256197800.00

Note: In accordance with the "Enterprise Accounting Standards Interpretation No. 16" issued by the

Ministry of Finance on November 30 2022 the relevant content regarding the accounting treatment of

"deferred income taxes related to assets and liabilities arising from individual transactions not applicable

to initial recognition exemptions" shall be implemented as of January 1 2023. The Company has

retroactively adjusted the relevant financial data for the comparative period as detailed in Section 10 of

the financial report specifically in Part 5 "Important Accounting Policies and Accounting Estimates"

Subsection 24 "Changes in Important Accounting Policies and Estimates." The relevant financial data

mentioned in the remainder of this annual report are all retroactively adjusted data.(II) Key financial indicators

Year-on-

2022 2021 years

year

Key financial indicators 2023 increase

After Before After Before

/decrease

adjustment adjustment adjustment adjustment

(%)

Basic earnings per share

59.4949.9349.9319.1641.7441.76

(RMB/share)

Diluted earnings per share

59.4949.9349.9319.1641.7441.76

(RMB/share)

Basic earnings per share

after deducting non-

59.5149.9949.9919.0541.8441.86

recurring profits and

losses (RMB/share)

Increase

Weighted average rate of by 3.93

34.1930.2630.2629.8929.90

return on net assets (%) percentage

point(s)

Weighted average rate of Increase

return on net assets after by 3.91

34.2030.2930.2929.9529.97

deduction of non- percentage

recurring profits or losses point(s)

Description of the Company's main accounting data and financial indicators for the recent three years at

the end of the reporting period

□Applicable √N/A

VIII. Differences in accounting data by domestic and overseas accounting standards

(I) 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

(II) 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

(III) Explanations for above accounting data differences

□Applicable √N/A

7 / 175ANNUAL REPORT 2023

IX. Quarterly key financial data in 2023

Monetary Unit: Yuan Currency: RMB

Q1 Q2 Q3 Q4

(Jan.-Mar.) (Apr.-Jun.) (Jul.-Sept.) (Oct.-Dec.)

Operating revenue 38755812096.89 30820207348.88 33692335242.67 44425250305.70

Net profit

attributable to

20794882754.5515185532336.2216895801973.3521857854486.63

shareholders of the

listed company

Net profits

deducting non-

recurring profits and

20778475545.6115168973659.8416868191551.4121936923668.66

losses attributable to

shareholders of the

listed company

Net cash flows from

5244796293.9325142381901.0319614828823.7016591240702.43

operating activities

Explanations for the differences between quarterly data and those disclosed in previous periodical

reports

□Applicable √N/A

X. Non-recurring Items and Their Gains/Losses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Amount in Notes (if Amount in Amount in

Non-recurring gains and losses

2023 applicable) 2022 2021

Profit or loss of disposal of non-current

assets (including the offset amount where

1152516.17-20567757.19-11920829.77

provision for asset impairment has been

made)

Government grants included in the

current profit or loss (except for

government grants closely related with

the normal business of the Company

obtained based on the established 17137523.89 14973304.55 4616000.00

standard in accordance with national

policies and provisions and having the

continuous influence on the profits or

losses of the Company)

The profit or loss from changes in the fair

value of financial assets and financial

liabilities held by non-financial

enterprises and the profit or loss from the

2439902.57-3750122.23

disposal of financial assets and finanical

liabilities except the effective hedging

relevant to the Company’s normal

business

Other non-operating revenues and

expenses except for the above-mentioned -47733771.71 -157251041.33 -210928052.99

items

Other items of profit or loss subject to the

4710466.6763840000.0061031069.26

definition of non-recurring profit or loss

Less: Influenced amount of income tax -5573340.60 -24751373.49 -40237983.93

Adjustment of non-controlling equity

1772852.961174838.97244326.28

(after tax)

Total -18492874.77 -75428959.45 -120958278.08

8 / 175ANNUAL REPORT 2023

Where the Company recognizes the items not listed in the Explanatory Notice on Information Disclosure

of Companies that Issue Securities Publicly No.1 - Non-recurring Profit or Loss as the non-recurring profit

or loss items with the significant amount or defines the non-recurring profit and loss items listed in

Explanatory Notice on Information Disclosure of Companies that Issue Securities Publicly No.1 - Non-

recurring Profit or Loss as recurring profit or loss items reasons shall be given.□Applicable √N/A

XI. Items measured at fair value

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance

Affected

at the

Balance at the end Increase/decrease in amount of the

Item beginning

of the period the period profit of the

of the

period

period

Held-for-trading financial

400712059.93400712059.9324072241.71

assets

Other non-current

4002439902.574002439902.572439902.57

financial assets

Total 4403151962.50 4403151962.50 26512144.28

XII. Others

□Applicable √N/A

Section III Management’s Discussion and Analysis

I. Discussion and analysis of business situation

In 2023 under the leadership of the Board of Directors the company adhered to the guidance of Xi Jinping

Thought on Socialism with Chinese Characteristics for a New Era thoroughly studied and implemented

the spirit of the 20th National Congress of the Communist Party of China and the important speech of

General Secretary Xi Jinping's inspection tour in Guizhou. The Board actively seized the opportunity

presented by the State Council Document No. 2 [2022] fully implemented the deployment of the

provincial party committee and provincial government and focused on the strategic goal of 'double world-

leading three breakthroughs and five leaps' set by the group company. With Moutai aesthetics as the core

value the Board guided the company to continue walking the high-quality development path of 'five lines'.Through collective efforts and perseverance which named "Qixin"in Moutai the company successfully

achieved various targets and tasks made significant progress in promoting high-quality development and

took solid steps towards modernization.II. Industry sector situation in the reporting period

See “Industry profile” and “Industry pattern and trend” in this report.III. 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 one of the three famous distilled liquors in the world and it

is also a liquor brand integrating national geographical indication products organic food and national

intangible cultural heritage. 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.

9 / 175ANNUAL REPORT 2023

The Company's business model is as follows: raw material procurement - product manufacturing - product

sales. The raw material procurement model specifically involves: sorghum for Moutai liquor is procured

through a "company + local government + supplier + cooperative or farmer" model while wheat is

procured through a "company + supplier + cooperative or farm" model. The procurement of other raw and

auxiliary materials as well as packaging materials is primarily based on the company's production and

sales plans and is conducted through centralized procurement in the market. The production process flow

involves: yeast making - Chinese Baijiu making – cellaring - blending - packaging. The sales model

includes both Direct selling and wholesale distribution channels. Direct selling channels refer to self-

operated sales and digital marketing platforms such as "i Moutai" while wholesale distribution channels

involve social dealers supermarkets e-commerce platforms and other channels.IV. Analysis of core competitiveness

√Applicable □N/A

The Company possesses "five core competences" composed of environment engineering quality brand

and culture as well as "four core potentials" consisting of unique origin protection unreplicable microbial

colonies unique brewing techniques handed down for thousands of years and long-term stored base liquor

resources. During the reporting period there were no significant changes in the company's core

competences.V. Business operation briefing for the reporting period

Firstly the company's business performance reached new heights. During the year the company achieved

a total operating revenue of 150.56 billion yuan an increase of 18.04% year-on-year. Net profit

attributable to shareholders of the listed company amounted to 74.734 billion yuan an increase of 19.16%

year-on-year. The main economic indicators maintained double-digit growth and the company achieved

remarkable development results once again. Kweichow Moutai the world's only liquor brand with a

revenue exceeding 100 billion yuan continued to consolidate its position. Moutai 1935 created an

"industry miracle" and became a product with a revenue exceeding RMB 10 billion within just two years

of its launch. The revenue of Moutai Prince exceeded 4 billion yuan while the revenue of Hanjiang

Guizhou Daqu and Laimao exceeded 1 billion yuan respectively forming a product matrix of billion

hundred million and ten million-level products.Secondly the company's brand influence continued to grow. The company's market capitalization

remained stable above 2 trillion yuan ranking first among A-share listed companies. Moutai ranked 24th

on the "Brand Finance 2024 Global Brand Value Top 500" list with a brand value of 50.1 billion US

dollars and third on the "2023 Brand Z Top 100 Most Valuable Chinese Brands" list with a brand value

of 88.427 billion US dollars (ranked 18th globally) firmly maintaining its position at the top of the

"world's liquor brands". With a brand value of 1.05 trillion yuan and the absolute advantage of being the

only trillion-level brand Moutai topped the Hurun Report's "Most Valuable Chinese Brands" list for the

sixth time.Thirdly the company's corporate governance has been continuously improved. The board of directors

successfully completed its reelection and the new board members are diverse and complementary in their

expertise ensuring the scientific decision-making of the board from diversified perspectives. During the

year the board of directors convened three shareholder meetings to review and approve 17 proposals and

held 13 board meetings to review and approve 45 proposals strictly implementing the "six major powers"

of the board. The company has promoted the construction of a comprehensive risk management system

and the risk management ecosystem has taken shape. It was successfully selected as one of the new batch

of "Double Hundred Enterprises" by the State-owned Assets Supervision and Administration Commission

of the State Council awarded the Best Practice in Corporate Governance by the China Association for

Public Companies won the National Quality Award for the third time and the European Quality Award

for the first time. The management foundation has been further consolidated and the company's modern

governance capabilities and level have been further enhanced.Fourthly ESG management improved quality and efficiency. ESG concept was practised in an all-round

manner and deeply integrated into production operation reform and development. In order to improve

ESG governance framework the Company established an ESG Promotion Committee including

10 / 175ANNUAL REPORT 2023

Environment Sub-committee Society Sub-committee and Governance Sub-committee and nine working

groups. The Company systematically sorted out core issues and key projects in four steps of topic

identification overall planning integration and implementation and improvement and innovation in line

with international norms national policies and advanced practices. Therefore the Company has optimized

its overall ESG management system fully leveraged the effectiveness of management mechanisms and

continuously empowered the implementation and effectiveness of ESG.Fifthly shareholder returns have been stable with a slight increase. The company has effectively improved

the quality of information disclosure enhancing its pertinence effectiveness and readability. Through

voluntary disclosures such as production and operation data it has promptly demonstrated the status of its

high-quality development to the market earning an A-level (excellent) evaluation for information

disclosure from the Shanghai Stock Exchange. With a candid and open attitude the company has actively

communicated with investors achieving the highest frequency in recent years. It participated in investor

exchange activities abroad for the first time and held an earnings presentation in the trading hall of the

Shanghai Stock Exchange with the number of video views ranking among the top in A-share companies.The company was awarded the Best Practice for Earnings Presentation by the China Association for Public

Companies. During the year the company once again implemented a special dividend distributing a total

of 56.55 billion yuan in cash dividends accounting for 75.67% of the company's net profit attributable to

shareholders in 2023. The dividend amount increased by approximately 1.8 billion yuan compared to the

previous year reaching a new high rewarding investors with practical actions.(I) Main business analysis

1. Analysis of accounting item changes related to the income statement and the cash flow statement

Monetary Unit: Yuan Currency: RMB

Amount in the same

Amount in the YoY Change

Item reporting period of

reporting period (%)

last year

Operating revenue 147693604994.14 124099843771.99 19.01

Operating costs 11867273851.78 10093468616.63 17.57

Selling and distribution expenses 4648613585.82 3297724190.94 40.96

General and administrative expenses 9729389252.31 9012191073.63 7.96

Financial expenses -1789503701.48 -1391805826.72 N/A

Research and development expenses 157371873.01 135185680.40 16.41

Net cash flows from operating

66593247721.0936698595830.0381.46

activities

Net cash flows from investing

-9724414015.16 -5536826334.90 N/A

activities

Net cash flows from financing

-58889101991.94 -57424528979.83 N/A

activities

Reasons for the changes in operating revenue: mainly due to the increase of sales volume the change in

the selling channel and product structure and the adjustment to the selling prices of main products in the

current period.Reasons for the changes in operating costs: mainly due to the increase in sales volume and production cost

and changes in product structure in the current period.Reasons for changes in selling and distribution expenses: mainly due to the increase in advertising and

marketing fees in the current period.Reasons for changes in general and administrative expenses: mainly due to the increase in trademark

license fees and depreciation of fixed assets in the current period.Reasons for changes in financial expenses: mainly due to the increase in the interest income from deposits

with commercial banks in the current period.

11 / 175ANNUAL REPORT 2023

Reasons for changes in research and development expenses: mainly due to increase in research and

development projects in the current period.Reasons for changes in net cash flow from operating activities: mainly due to the increase in cash received

from the company's sales of goods in the current period and the decrease in the net increase in term deposits

that cannot be withdrawn in advance by the company's holding subsidiary Kweichow Moutai Group

Finance Co. Ltd.Reasons for changes in the net cash flows from investing activities: mainly due to in the increase in

acquisition of negotiable certificate of deposits by the Company’s holding subsidiary Kweichow Moutai

Group Finance Co. Ltd. and the Company’s additional investment in industrial development fund in the

current period.Reasons for changes in net cash flows from financing activities: mainly due to the increase in cash

dividends distributed in the current period.Detailed explanation of major changes in the Company's business type profit composition or profit source

in the current period

□Applicable √N/A

2. Income and cost analysis

√Applicable □N/A

(1) Main business grouped by business segment by product by region and by sales model.

Monetary Unit: Yuan Currency: RMB

Main business grouped by business segment

YoY YoY

YoY

Change change

Gross change

Operating of of gross

Operating revenue Operating costs profit of

revenue operating profit

margin operating

revenue margin

costs (%)

(%)(%)

Liquor 147218996281.04 11620203653.32 92.11 18.94 17.42 0.11

Primary business (by product)

Increase Increase Increase

or or or

decrease decrease decrease

Gross

in in in gross

profit

Product Operating revenue Operating costs operating operating profit

margin

revenue costs margin

(%)

over the over the over the

previous previous previous

year (%) year (%) year (%)

Moutai 126589066691.89 7445470669.11 94.12 17.39 18.83 -0.07

Other

20629929589.154174732984.2179.7629.4315.002.54

liquor

Main business grouped by region

YoY YoY

YoY

Change change

Gross change

of of gross

Region Operating revenue Operating costs profit of

operating profit

margin operating

revenue margin

costs (%)

(%)(%)

Domestic 142868885823.91 11280212551.30 92.10 19.52 18.01 0.10

Overseas 4350110457.13 339991102.02 92.18 2.61 0.76 0.14

12 / 175ANNUAL REPORT 2023

Main business condition by sales model

YoY YoY

YoY

Change change

Gross change

Sales of of gross

Operating revenue Operating costs profit of

model Operating profit

margin operating

revenue margin

costs (%)

(%)(%)

Wholesale

79986119397.908569360111.6689.297.526.820.07

agency

Direct

67232876883.143050843541.6695.4636.1662.78-0.74

sales

(2) 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 100141.15 73274.04 293790.03 8.98 7.48 6.21

(3) Execution situation of major acquisition contracts and major sales contracts

□Applicable √N/A

(4) Cost Analysis Table

Monetary Unit: RMB

Condition by business segment

As % of

As % Amount in the

Main total

By Amount in the of same YoY Descriptio

breakdow cost in

business reporting total reporting chang n of

n items of previou

segment period cost period of e (%) reasons

cost s year

(%) previous year

(%)

11620203653.3100.09896113336.8

Liquor 100.00 17.42

200

Condition by product

As % of

As % Amount in the

cost Descriptio

By Main Amount in the of same YoY

in n of

produc breakdown reporting total reporting chang

previou reasons

t items of cost period cost period of e (%)

s year

(%) previous year

(%)

Direct

5344548452.2

materials 5984160283.88 51.50 54.00 11.97

4

costs

Direct labor 3395434595.8

4372013596.0837.6334.3128.76

costs 5

Manufacturin

640613571.245.51558168244.615.6414.77

Liquor g costs

Fuels and

351386305.233.02342073450.403.462.72

energies

Transportatio

272029896.892.34255888593.702.596.31

n costs

11620203653.3100.09896113336.8

Total 100.00 17.42

200

13 / 175ANNUAL REPORT 2023

(5) Any share changes of subsidiaries merger scope changes in the reporting period

□Applicable √N/A

(6) Information about significant changes or adjustments of the Company’s businesses products

or services

□Applicable √N/A

(7) Major customers and suppliers

A. Major customers

√Applicable □N/A

The sales of the top five customers amounted to RMB 14709.4568 million accounting for 9.99% of the

total annual sales; among the sales of the top five customers the sales of related parties amounted to RMB

5508.9263 million accounting for 3.74% of the total annual sales.

During the reporting period the sales proportion to a single customer exceeded 50% of the total or there

were new customers among the top five customers or there was a situation of heavy reliance on a few

customers.□Applicable √N/A

B. Major suppliers

√Applicable □N/A

The purchase amount of the top five suppliers amounted to RMB 2907.6931 million accounting for 36.45%

of the total annual purchase amount; in which the purchase amount of related parties amounted to RMB

1146.8131 million in the purchase amount of the top five suppliers accounting for 14.38% of the total

annual purchase amount.During the reporting period the proportion of purchases from a single supplier exceeded 50% of the total

or there were new suppliers among the top five suppliers or there was a situation of heavy reliance on a

few suppliers.□Applicable √N/A

3. Expenses

√Applicable □N/A

The selling and distribution expenses amounted to RMB 4648613585.82 in the current period and RMB

3297724190.94 in the previous period. The year-on-year increase was mainly caused by the increase in

advertising expenditure and market investment in the current period.The financial expenses amounted to RMB -1789503701.48 in the current period and RMB -

1391805826.72 in the previous period. The year-on-year change was is mainly caused by the increase

in interest income from deposits with commercial banks in the current period.

4. R&D expenses

(1) Statement of R&D expenses

√Applicable □N/A

Monetary Unit: RMB

R&D expenses in this period 477957725.95

Capitalized research and development

143549809.92

investment in the reporting period

Total R&D expenses 621507535.87as（%）in operating revenue 0.42

Proportion of capitalization of research

23.10

and development investment (%)

14 / 175ANNUAL REPORT 2023

Note: The R&D expenses in this period include the R&D expenses listed in the operating costs and the

compensation of scientific researchers.

(2) Statement of R&D employee

√Applicable □N/A

Number of R&D employees 800

as (%) in the total number of the Company’s employees 2.40

Educational background structure of R&D employees

Number in each educational

Educational background structure type

background structure

Doctorate 85

Master’s degree 178

Undergraduate 460

Junior college 63

High school and below 14

Age structure of R&D employee

Age structure type Number in each age structure

under 30 (excluding 30) 154

30-40 (including 30 but excluding 40) 422

40-50 (including 40 but excluding 50) 157

50-60 (including 50 but excluding 60) 52

over 60 15

(3) Explanation

□Applicable √N/A

(4) Reasons for the significant changes in R&D employees and their impacts on the Company’s

future development

□Applicable √N/A

5. Cash flows

√ applicable□ not applicable

Monetary Unit: Yuan Currency: RMB

Amount in this Amount in last

Item Change (%)

period period

△Net increase in customer bank deposits and

placement from banks and other financial -810223002.76 -8916033228.67 N/A

institutions

Refunds of taxes and surcharges received 1500047.04 33191912.56 -95.48

Cash paid for purchase of goods or receipt of

11029476036.218357859151.0331.97

services

△Net increase in loans and advances to customers -2051930316.19 723778672.00 N/A

Net increase in loans to banks and other financial

2500000000.00 N/A

institutions

△Net increase in deposits in central bank other

1570003429.0113037761321.90-87.96

banks and financial institutions

△Cash paid for interest handling charges and

142896151.2179226410.9880.36

commissions

Cash paid for other operating activities 7943709518.14 5123087432.89 55.06

Cash received from disposal of investments 7549947301.15 N/A

Cash received from investment income 140715000.00 5880000.00 2293.11

Net cash received from disposal of fixed assets

24948352.95355149.006924.76

intangible assets and other long-term assets

15 / 175ANNUAL REPORT 2023

Cash paid to acquire and construct fixed assets

2619755888.795306546416.54-50.63

intangible assets and other long-term assets

Cash paid for investments 14817852800.00 210000000.00 6956.12

Cash paid for other investing activities 7021867.10 31486829.54 -77.70

Cash paid for other financing activities 134315261.93 54332788.37 147.21

Effect of fluctuation in exchange rate on cash and

1718255.65911088.0188.59

cash equivalents

(1) The change in net increase in customer deposits and deposits from other banks and financial institutions

is mainly due to the transfer of equity of Guizhou Xijiu Co. Ltd. by the group company in the prior period

by which Guizhou Xijiu Co. Ltd. creased to be a member company of the Company's holding subsidiary

Kweichow Moutai Group Finance Co. Ltd. and the Company's absorption of deposits in the prior period

decreased a lot.

(2) The decrease in refunds of taxes and surcharges received mainly refers to the tax rebates retained

received by the Company's holding subsidiary Kweichow Moutai Sales Co. Ltd. in the prior period.

(3) The increase in cash paid for purchase of goods or receipt of services is mainly due to the increase in

cash paid by the Company for the purchase of materials.

(4) The decrease in the net increase in loans and advances to customers is mainly due to the recovery of

loans distributed by the Company's holding subsidiary Kweichow Moutai Group Finance Co. Ltd.

(5) The increase in the net increase in loans to banks and other financial institutions is mainly due to the

increase of Kweichow Moutai Group Finance Co. Ltd. the holding subsidiary of the Company in making

loans to banks and other financial institutions.

(6) The decrease in the net increase in deposits with the Central Bank and interbank funds is mainly due

to the decrease in the net increase in non drawable interbank time deposits deposited by the company's

holding subsidiary Kweichow Moutai Group Finance Co. Ltd. compared with the previous period.

(7) The increase in the cash paid for interest handling fee and commission is mainly due to the increase

in the cash paid for interests by Kweichow Moutai Group Finance Co. Ltd. a holding subsidiary of the

Company in the current period compared with the prior period.

(8) The increase in cash related to other operating activities is mainly due to the payment of market inputs.

(9) The increase in cash received from disinvestment refers to the withdrawal of certificates of deposits of

the Company and the NCD of Kweichow Moutai Group Finance Co. Ltd..

(10) The increase in the cash received from investment income is mainly due to the increase in the interest

on certificates of deposits received by the Company.

(11) The increase in the net cash received from disposal of fixed assets intangible assets and other long-

term assets is mainly due to the increase in the cash received from disposal of fixed assets in the current

period compared with the prior period.

(12) The decrease in the cash paid to acquire and construct fixed assets intangible assets and other long-

term assets is mainly due to the decrease in the cash paid for capital construction projects in the current

period compared with the prior period.

(13) The increase in cash paid for investments is mainly due to the increase in acquisition of NCDs by the

Company’s holding subsidiary Kweichow Moutai Group Finance Co. Ltd. and the Company’s additional

investment in industrial development fund in the current period

(14) The decrease in the cash paid for other investing activities is mainly due to the decrease in the capital

construction performance bond refunded compared with the previous period.

16 / 175ANNUAL REPORT 2023

(15) The increase in the cash paid for other financing activities is mainly due to the increase in the cash

for lease fees in the current period compared with the previous period.

(16) The increase in the effect of fluctuation in exchange rate on cash and cash equivalents refers to the

difference in foreign currency conversion caused by the translation of financial statements of overseas

operations of Kweichow Moutai Paris Trading Co. Ltd. a wholly-owned subsidiary of the Company into

the functional currency statements.(II) Reasons for significant changes of profit caused by non-core business

□Applicable √N/A

(III) Analysis of assets and liabilities

√Applicable □N/A

1. Assets and liabilities

Monetary Unit: RMB

As % of As % of

Amount by the Amount by the Change in

total total Explanation about

Item end of this end of last percentage

assets assets any material change

period period (%)

(%)(%)

Cash and cash

69070136376.1225.3358274318733.2322.9018.53

equivalents

Mainly the additional

investment of Kweichow

Moutai Group Finance

Held-for-trading

400712059.93 0.15 N/A Co. Ltd. a holding

financial assets

subsidiary of the

Company in debt

instruments

Mainly the decrease in

the sales business with

bank acceptance bills of

the Company's wholly-

Notes receivable 13933440.00 0.01 105453212.00 0.04 -86.79

owned subsidiary

Kweichow Moutai-

Flavor Liquor Marketing

Co. Ltd.Mainly the sales of

Kweichow Moutai Sales

Co. Ltd. a controlling

company of the

Accounts receivable 60373410.41 0.02 20937144.00 0.01 188.36 Company via an online

platform where the

system adopts the T+7

model for the settlement

of payments for goods.Mainly the

transformation from

Prepayments 34585111.79 0.01 897377162.27 0.35 -96.15

advanced land payments

to intangible assets

The purchase of reverse

repo of treasury bonds

was made by Guizhou

Redemptory Monetary

3504849885.05 1.29 N/A Maotai Group Finance

Capital for Sale

Co. Ltd. a holding

subsidiary of the

company.Inventories 46435185061.53 17.03 38824374236.24 15.26 19.60

Mainly the decrease in

Other current assets 71403906.57 0.03 160843674.42 0.06 -55.61

input VAT retained

Non-current assets Mainly the maturity of

maturing within one 2123601333.33 0.83 -100.00 certificates of deposits

year

Mainly the recovery of

loans distributed to

member units by the

Loans and payments 2130818189.27 0.78 4134744407.92 1.62 -48.47 Company's holding

subsidiary Kweichow

Moutai Group Finance

Co. Ltd.Debt investment 5323002071.02 1.95 380685319.09 0.15 1298.27 Mainly the purchase of

17 / 175ANNUAL REPORT 2023

bonds by Kweichow

Moutai Group Finance

Co. Ltd. a holding

subsidiary of the

Company

Fixed assets 19909280655.97 7.30 19742622547.86 7.76 0.84

The additional

Other non-current investment of the

4002439902.57 1.47 N/A

financial assets Company in

industrial funds

The newly-added

Other non-current

109563497.23 0.04 N/A informatization project

assets

in progress

Non-current liabilities The payment for rental

maturing within one 57054879.48 0.02 109351155.28 0.04 -47.82 expenses

year

The influence of the

implementation of the

Interpretation No. 16 of

Deferred tax liabilities 78943062.19 0.03 162628090.99 0.06 -51.46

the Accounting

Standards for Business

Enterprises

The difference arising

from the translation of

financial statements of

overseas operations of

Kweichow Moutai Paris

Other comprehensive

-6061727.51 -10776907.33 N/A Trading Co. Ltd. a

income

wholly-owned

subsidiary of the

Company into the

functional currency

statements

2. Main assets overseas

√Applicable □N/A

(1) Asset size

Including: overseas assets of RMB 87432153.36 accounting for 0.03% of the total assets.

(2) Description of overseas assets with a higher proportion

□Applicable √N/A

3. Restricted assets rights as of the end of this reporting period

□Applicable √N/A

4. Other description

□Applicable √N/A

(IV) Analysis of operating information in the industry

√Applicable □N/A

Analysis of operating information in the liquor production industry

1 Industry profile

√Applicable □N/A

According to data from the National Bureau of Statistics and the China Alcoholic Drinks Association in

2023 the total production volume of liquor enterprises above designated size nationwide reached 4.492

million kiloliters a year-on-year decrease of 2.8%; sales revenue amounted to 756.3 billion yuan an

increase of 9.7% year-on-year; and total profits reached 232.8 billion yuan an increase of 7.5% year-on-

year.

2 Production Capacity

Current capacity

18 / 175ANNUAL REPORT 2023

√Applicable □N/A

Main Factories Designed Capacity Actual Capacity

Chinese Baijiu production workshop of Moutai 42795.00 57204.11

Series liquor production workshop 44460.00 42937.04

Note: (1) TheMoutai base liquor of Moutai liquor reached a designed production capacity of 42795.00

tons in 2023 with a year-on-year increase of 52.50 tons of base liquor production capacity. The new

production capacity was put into operation in October 2023. Due to the production process characteristics

of Moutai liquor it will be released in 2024. The base liquor of serial liquors reached a designed production

capacity of 44460.00 tons in 2023 with a year-on-year increase of 6400.00 tons of base liquor production

capacity. The new production capacity was put into operation in November 2023. Due to the production

process characteristics of the serial liquors it will be released in 2024. (2) According to the practice of the

Company the designed and actual production capacity in this report is measured in "ton".Capacity under Construction

√Applicable □N/A

Monetary Unit: RMB '0000 Currency: RMB

Amount

Planned Accumulated

invested in this

Name of the Capacity under Construction investment investment

reporting

amount amount

period

30000-ton Moutai-flavored series liquor technical

838400.0063490.00550116.00

renovation project and its supporting facilities

First Phase Construction Project of the "14th Five-

411000.0045310.0088160.00

Year Plan" Maotai-flavor Liquor Xishui Tongminba

Technical transformation and construction project of

1551600.00120203.00120288.00

Moutai Liquor during the 14th Five-Year Plan 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.

3 Inventory at the end of the reporting period

√Applicable □N/A

Unit: Ton

Finished liquor Semi-finished liquor (including base liquor)

13985.07279804.96

Note: The finished liquor is the Company’s packaged inventory stock (including Moutai-flavor series

liquor).Inventory Impairment Risk Warning

□Applicable √N/A

4 Product profile

√Applicable □N/A

Monetary Unit: RMB '0000 Currency: RMB

Chang

e ProduChange Change

ction- Main

Product Production （% （%） （%）

Sales (tons) sales Sales revenue representinggrade (ton) ） Same same

ratio brand

Same period period (%)

Period

Moutai 57204.11 0.69 42109.50 11.10 12658906.67 17.39 Moutai

19 / 175ANNUAL REPORT 2023

Moutai

Wangzi

liquor

Other

Moutai

series 42937.04 22.41 31164.54 2.94 2062992.96 29.43

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 ofcraftsmanship and adheres to the principle of “honoring the principles abiding by the rules sticking tothe 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.Changes in the product structure and business strategy

□Applicable √N/A

5 Raw material purchase

(1) purchase model

√Applicable □N/A

The sorghum used in Moutai liquor was purchased in the "company + local government + supplier +

cooperative or farmer" model while the wheat was purchased in the "company + supplier + cooperative

or farm" model. Other raw materials and packaging materials were purcahsed from the market through

centralized procurement according to the company's production and sales plans.

(2) purchase amount

√Applicable □N/A

Monetary Unit: RMB '0000 Currency: RMB

Purchase amount in Purchase amount in as % in total purchase

Raw materials type

this period last period amount

Liquor brewing raw

352140.58248398.9244.15

materials

Packaging materials 396702.84 290243.05 49.73

Energies 35724.12 48982.94 4.48

Workshop auxiliary

13122.596898.381.36

materials

6 Sales

(1) 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.

(2) Sales channel

√Applicable □N/A

20 / 175ANNUAL REPORT 2023

Monetary Unit: RMB '0000 Currency: RMB

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 6723287.69 4937873.77 15634.95 11186.57

Wholesale agency 7998611.94 7439359.47 57639.09 56989.75

(3) Regional situation

√Applicable □N/A

Monetary Unit: RMB '0000 Currency: RMB

Sales Sales

as % in as % in the

Region Sales revenue in Sales revenue in volume in volume in

the total total

Name this period last period this period last period

amount volume

(ton) (ton)

Domesti

14286888.5811953275.2997.0571295.4366162.4197.30

c

Overseas 435011.05 423957.95 2.95 1978.61 2013.91 2.70

Regional division standards

□Applicable √N/A

(4) Distributor Situation

√Applicable □N/A

Unit: unit

Number of distributors

Number increased in Number decreased in

Region Name by the end of the

the reporting period the reporting period

reporting period

Domestic 2080 1 5

Overseas 106 1

Explanation

□Applicable √N/A

Management of distributors

□Applicable √N/A

(5) Online-sales situation

√Applicable □N/A

Monetary Unit: RMB '0000 Currency: RMB

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 2237432.35 1188270.28 88.29 96.09

platform liquor

channel

Other digital Medium and

marketing high-grade 183125.55 N/A 95.95

platforms liquor

Future online business strategy

□Applicable √N/A

7 Analysis of the Company’s revenue and cost

21 / 175ANNUAL REPORT 2023

(1) he composition of the company’s main business by different types

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Gross

Chang Chang profit Chang

Type Operating revenue e Operating costs e rate e

（%）（%）（%（%）

）

By class of product

126589066691.8

Moutai 17.39 7445470669.11 18.83 94.12 -0.07

9

Other series

20629929589.1529.434174732984.2115.0079.762.54

liquor

147218996281.011620203653.3

Subtotal 18.94 17.42 92.11 0.11

42

By sales channel

Wholesale agency 79986119397.90 7.52 8569360111.66 6.82 89.29 0.07

Direct selling 67232876883.14 36.16 3050843541.66 62.78 95.46 -0.74

147218996281.011620203653.3

Subtotal 18.94 17.42 92.11 0.11

42

By regional segment

142868885823.911280212551.3

Domestic 19.52 18.01 92.10 0.10

10

Overseas 4350110457.13 2.61 339991102.02 0.76 92.18 0.14

147218996281.011620203653.3

Subtotal 18.94 17.42 92.11 0.11

42

Explanation

□Applicable √N/A

(2) Costs

√Applicable □N/A

Explanation

√Applicable □N/A

See Statement of Cost Analysis of main business Section III Management’s Discussion and Analysis.(V) Analysis of investment situation

Total investment

□Applicable √N/A

1. Significant equity investment

□Applicable √N/A

2. 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)

According to the resolution of the Company’s 2011 annual shareholders’ meeting the Company has

planned to invest RMB 3583.16 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 RMB 2053.55 million had been invested.

22 / 175ANNUAL REPORT 2023

3. Financial assets measured at fair value

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Provision

Amount Accumulated

Profit or loss for

at the changes in Selling / redemption

Type of from changes in impairment Purchase amount in Other Amount at the end

beginning fair value amount in the

assets fair value in the made in the current period changes of the period

of the included in current period

current period the current

period equity

period

Bonds 24072241.71 3900000000.00 3523360181.78 400712059.93

Private

2439902.574000000000.004002439902.57

equity

Total 26512144.28 7900000000.00 3523360181.78 4403151962.50

Portfolio investment

□Applicable √N/A

Description of portfolio investment

□Applicable √N/A

Private equity investment

√Applicable □N/A

1. Moutai Jinshi (Guizhou) Industrial Development Fund. The filing of the private equity for record has

been completed. Visit the site: www.sse.com.cn. and read the Company's announcements (Lin 2023-014

and Lin 2023-028) for details;

2. Moutai Zhaohua (Guizhou) Industrial Development Fund. The filing of the private equity for record

has been completed. Visit the site: www.sse.com.cn. and read the Company's announcements (L 2023-

014 and L 2023-028) for details.

Investment in derivatives

□Applicable √N/A

23 / 175ANNUAL REPORT 2023

4. Specific progress of major assets reorganization and integration during the reporting period

□Applicable √N/A

(VI) Specific progress of major assets reorganization and integration during the reporting period

□Applicable √N/A

(VII) Analysis of major holding companies

√Applicable □N/A

Monetary Unit: RMB '0000 Currency: RMB

Registered Operating Operating

Company name Industry Total assets Net assets Net profit

capital revenue profit

Liquor

Kweichow

beverages

Moutai Sales 1000.00 8774200.15 5457173.45 12225461.71 5680845.69 4259628.69

and tea

Co. Ltd.wholesale

(VIII) Structured entities controlled by the Company

□Applicable √N/A

VI. Discussion and analysis of the Company’s future development

(I) Pattern and trend in the industry

√Applicable □N/A

1. Industry pattern and trend

In the macroscopic aspect the basic trend of China's economic recovery with a long-term improvement

has not changed and will not change. With the strengthening of macro-control which has promoted the

continuous improvement of economic operation the effect of promoting consumption policies continues

to appear the consumption scene continues to expand residents' income continues to grow and

consumption will continue to maintain steady and rapid growth and these are conducive to liquor

consumption. In terms of the industry since 2016 the national liquor production and sales have declined

year by year and the liquor industry has entered a period of "stock competition" where favorable

conditions are stronger than the unfavorable factors though the industry has been facing many problems

and the overall development trend of the industry is good.

2. Competitive advantages of the Company

First excellent product quality. The Company adheres to the principle that quality is the soul of life as

well as the concept of "five-artisan quality" and has implemented strict quality control throughout the full

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 high brand reputation. 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

RMB over 100 billion and a market value of over RMB 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.

24 / 175ANNUAL REPORT 2023

Third strong cultural radiation. Moutai culture was 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 builta communication matrix of “Mass response online and offline" told a good brand story spread the voiceof Moutai and made the unique Moutai culture sparkling.Fourth unique 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 analyzed the scientific connotation of traditional techniques and concluded the

process system of koji-making liquor-making storage and blending and established five core technical

systems to keep the vitality of traditional process methods forever.Fifth unreplicable ecological environment. 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 andtechnological innovation and green low-carbon life and built a life community of “mountain water forestsoil 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.(II) Development strategy

√Applicable □N/A

2024 will be a crucial year to achieve goals of the "14th Five-Year Plan". The Company will adhere to the

guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era thoroughly

study and implement the spirit of the 20th Party Congress and the important speech addressed by the

General Secretary Xi Jinping during the inspection in Guizhou the spirit of the Party Congress of the

Group company and the overall deployment adhere to the overall high-quality development actively

integrate into the new development pattern uphold the concept of "quality is the soul of life" focus on the

group company's targets of "double world-leading three breakthroughs and five spans" deeply implement

ESG concept and comprehensively optimize strategy budget process performance and risk management

continue to take the "five-line" high-quality development road by taking Moutai aesthetics as its value

connotation attach importances to the main business of "liquor" strengthen the three driving forces of

reform opening up and innovation promote the integration of the innovation chain industrial chain and

talent chain highlight the three tasks of value creation value management and value sharing strengthen

the strategic coordination promote work coordination and fully advance the high-quality development

and modernization of Moutai.

25 / 175ANNUAL REPORT 2023

(III) Business plan

√Applicable □N/A

The main objective for 2024 is to achieve an increase of approximately 15% in total operating revenue

compared to the previous year and complete fixed asset investment of RMB 6.179 billion. Focusing on

the annual targets and tasks the following key works will be emphasized:

(I) Uphold the "blue line" path and continue the strong momentum of our main business. The first is to

focus on enhancing industry leadership brand influence and channel control continuously consolidate

the position of Moutai liquor as a 100 billion level key product and continuously enhance the "leadership"

of the high-end market and strengthen the brand building of Moutai-flavor liquor enterprises and

consolidate the cultivation and promotion of key product brands. The second is to uphold the principle

that quality is the soul of life continue to practice the "five craftsmen" quality concept improve the "365"

quality management system (the party congress is included in the green line) and continue to improve the

progressiveness and applicability of the "Moutai Standard" in all links of the whole chain from raw

material supply to production quality. The third is to continue to practice the "Five-in-One Marketing

Method" uphold the "four ends" of products channels brands and terminals and jointly build the "three

forms" of terminal form business format and ecology and make endless efforts to explore new markets

with endless beauty and strengthen the reform of international market institutions and team building and

uphold the principle of "one country one policy" and enhance the level of internationalization. The fourth

is to uphold the high starting point planning high standard design high-quality construction and high-

level management accelerate the construction of major projects such as Zhonghua Village Moutai Liquor

Technical Renovation Project Moutaiin "14th Five Year Plan" Packaging Logistics Park in Tanchang

Subdistrict Office and the project in Tongmin Town of Xishui County and strengthen the life-cycle

management of projects.(II) Uphold the "green line" path and create sustainable development samples. The responsibilities and

functions of the ESG Promotion Committee will be leveraged fully to develop an overall plan and strive

to improve the overall evaluation level. In terms of environment every effort is made to deeply implement

the concept of the life community of "mountains waters forests soil rivers and microorganisms" focus

on the goal of "carbon peaking and carbon neutrality" continuously optimize the layout of the "production

space living space and ecological space" in the park strengthen water conservation drainage water

treatment and reuse of reclaimed water focus on energy conservation and energy structure adjustment

promote the research and application of advanced green low-carbon and energy-saving technologies and

build a national level "clear waters and green mountains are as good as mountains of gold and silver"

practice and innovation base with high quality. In terms of society every effort is made to lead the industry

in improving technical standards and promoting the integration of occupational health and safety for all

employees based on key aspects such as product quality and safety occupational health and safety

stakeholder interests and responsible marketing and actively engage in social welfare cultural protection

and rural revitalization vigorously advocate rational drinking adhere to integrity and innovation and tell

the story of Chinese liquor culture well. In terms of governance every effort is made to focus on corporate

governance business ethics risk management and other aspects perfect corporate governance from the

perspective of "Shareholders' Meeting Board of Directors Supervisory Board and Senior Management"

and improve the "six major risks" management mechanism and deepen the digital transformation in areassuch as business and finance integration decision-making system of “major issues importantappointments and removals major projects and the use of large amounts of money” audit supervision

and smart parks empower ESG implementation and effectiveness drive partners to jointly practice ESG

concepts and comprehensively enhance value creation capabilities.(III) Uphold the "white line" path and enhance the momentum of reform and innovation. In terms of

technological innovation every effort is made to deeply practice the beauty of "scientific inheritance and

technological innovation" focus on "making inheritance more traditional and innovation more modern"

continuously strengthen the construction of "two rooms two centers and one station" vigorously promote

the corporatization of technology centers strengthen the introduction of high-level talents improve the

talent training and incentive mechanism system and build a high-quality team of scientific and

technological innovation talents. In terms of digital empowerment in accordance with the top-level plan

of "Smart Moutai 2.0" every effort is made to implement projects such as digital marketing system supply

chain management system and total quality management system further open up the integrated supply

26 / 175ANNUAL REPORT 2023

chain system promote the scale application of industrial Internet demonstration scenarios promote "one-

code management" integrate anti-counterfeiting traceability industrial chain collaboration and other

scenario applications and improve the ability to link upstream and downstream industries. In terms of

deepening reform every effort is made to firmly grasp the opportunity of the new round of state-owned

enterprise reform and upgrading actions adhere to benchmarking against world-class standards

continuously optimize and improve the strategic management system comprehensively strengthen process

management operate organizational performance indicator measurement and analysis and a new

performance evaluation system implement salary system reform to enhance the modern corporate

governance ability and level. In terms of talent team construction every effort is made to coordinate the

development of the company's human resources plan and improve the equivalent density of professional

talents by expanding channels for attracting and selecting talents increasing training and education efforts

for talents highlighting employment effects and improving talent retention mechanisms and promote the

development of talent in enterprises and promote mutual progress between talents and enterprises.(IV) Uphold the "purple line" path and build a highland of brand culture. Every effort is made to uphold

the "Moutai Aesthetics" as the corporate philosophy deeply explore corporate culture and brand culture

continuously promote the construction of the "Nine Series" of Moutai culture continuously enriched the

expression forms value connotations and experience scenes of Moutai culture and accumulated strong

cultural momentum and continue to explore the essence of traditional Chinese culture such as the 24 solar

terms zodiac signs and traditional festivals and promote the organic integration of corporate culture

product culture traditional culture and Moutai culture and carefully develop cultural and creative

products and hold traditional activities such as Qingming Thanksgiving Dragon Boat Festival wheat

worship and Double Ninth Festival liquor worship to high standards and apply the theme colors of the

Chinese New Year in various activities continue to conduct research on the color system of Eastern

aesthetics and promote the creative transformation and innovative development of Chinese traditional

culture liquor culture and Moutai culture and continue to organize cultural IP activities such as "Moutai

Funs Carnival" and "Dinner Night" to tell the story of Moutai well and actively integrate into the national

"the Belt and Road" initiative and the "Brand Power Project" take the initiative to appear at important

conferences and activity platforms at home and abroad participate in global dialogue output Moutai's

views and convey Moutai's voice.(V) Uphold the "red line" path and ensure the essential safety of enterprises. Every effort is made to focus

on the "six major risks" and promote the construction of an enterprise risk management system from top-

level design to post end comprehensive risk management to ensure the safe and stable operation of

production and operation. In terms of safety production every effort is made to deepen the risk

classification and dynamic management of safety production around the seven major areas of fire

electricity soil housing water vehicles and materials and continuously consolidate the achievements of

special inspections and rectification of safety production and implement the "Smart Security" and "Smart

Fire Protection" projects integrate the construction of civil defense physical defense and technical

defense and comprehensively improve the professional level of safety management. In terms of compliant

operation every effort is made to focus on key tasks such as legal governance risk prevention compliance

management rights protection and team building further improve the five systems of legal construction

and continuously enhance the five capabilities of governing enterprises in accordance with the law and

continue to perfect the risk management system improve the construction of risk libraries in key areas

and timely and effectively prevent and resolve various risk challenges.(IV) Possible confronting risk

√Applicable □N/A

The first is the risk of macroeconomic downturn; The second is security risk; The third is public opinion

risk; The fourth is environmental protection risk.(V) Others

□Applicable √N/A

27 / 175ANNUAL REPORT 2023

VII. 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

I. 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 to standardize 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.

1. 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 2023 the Company held three general meetings

of shareholders deliberated and approved 17 proposals and all resolutions had been seriously

implemented.

2. 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 and Compliance Management Committee Nomination

Committee Remuneration and Appraisal Committee with clear division of labor clear 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.

3. 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.

4. 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.

28 / 175ANNUAL REPORT 2023

In 2023 the production and operation reform and development were successfully completed and the role

of operation implementation and management worked effectively.

5. 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.

6. 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 42 temporary

announcements and 4 regular reports. After comprehensive evaluation by Shanghai Stock Exchange the

evaluation result of the Company's information disclosure from 2022 to 2023 is A (Excellent).

7. 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.

8. 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 provisions of CSRC on corporate governance of listed companies; If there is any

significant difference the reasons shall be given

□Applicable √N/A

II. 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

III. Introduction of shareholders’ Meeting

Query index of the Date of

Session of the Date of designated website disclosure of

Meeting resolution

meeting convening published in the the

resolution publication of

29 / 175ANNUAL REPORT 2023

the resolution

Please refer to the

Announcement on

Annual General Resolution of 2022 Annual

The Shanghai Stock

Meeting of General Meeting of

2023-06-13 Exchange 2023-06-14

Shareholders of Shareholders of Kweichow

www.sse.com.cn

2022 Moutai (Announcement

No.: Lin 2023-016) for

details.Please refer to the

First Announcement on

extraordinary Resolution of the First

The Shanghai Stock

general Extraordinary General

2023-09-07 Exchange 2023-09-08

meeting of Meeting of Shareholders of

www.sse.com.cn

shareholders in Kweichow Moutai in 2023

2023 (Announcement No.: Lin

2023-029) for details.

Please refer to the

Second Announcement on

extraordinary Resolution of the Second

The Shanghai Stock

general Extraordinary General

2023-12-06 Exchange 2023-12-07

meeting of Meeting of Shareholders of

www.sse.com.cn

shareholders in Kweichow Moutai in 2023

2023 (Announcement No.: Lin

2023-039) 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

30 / 175ANNUAL REPORT 2023

IV. Situation of directors supervisors and senior officers

(I) 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

Number The

Number Cause remuneration Whether to

of increase

of shares of The obtained get paid

shares or

held at increase from the from the

Start Date of Termination date held at decrease

Full Name Position Gender Age the or Company related

Term of term the end of

beginning decrease during the parties of

of the shares

of the of reporting the

year within

year shares period company

the year

(RMB 0'000)

Secretary of the

September 28

party

Ding 2022

committee Male 49 0 Yes

Xiongjun

Chairman September 24

director 2021

Deputy

August 17

Secretary of

2023

CPC

September 07

Wang Li Director Female 51 0 Yes

2023

Acting as

August 19

general

2023

manager

Guo Independent

Male 55 June 16 2022 20 No

Tianyong director

Sheng Independent

Male 53 June 16 2022 20 No

Leiming director

Independent December 06

Wang Xin Male 46 1.41 No

director 2023

Liu Independent

Male 48 June 16 2022 0 Yes

Shizhong director

Xie Employee Female 41 October 07 96.27 No

31 / 175ANNUAL REPORT 2023

Qinqing director 2022

Deputy

Secretary of

October 07

CPC and

2022

chairman of the

You Yalin trade union Male 54 84.17 No

Chairman of

the Board of March 20

Supervisors 2020

Supervisor

Li

Supervisor Male 42 June 13 2023 85.86 No

Qiangqing

Employee

Wen Yong Male 41 June 13 2023 81.39 No

supervisor

Member of the

November 03

party

2022

Tu Huabin committee Male 48 71.12 Yes

Deputy General February 27

Manager 2020

Member of the

November 03

party

Wang 2022

committee Male 52 71.12 Yes

Xiaowei

Deputy General February 27

Manager 2020

Member of the

November 03

party

Zhong 52 2022

committee Male 83.94 No

Zhengqiang

Deputy General

July 13 2015

Manager

Member of the

November 03

party

2022

committee

Jiang Yan Female 46 84.18 No

Deputy General

November 15

Manager Chief

2021

Financial

32 / 175ANNUAL REPORT 2023

Officer

Secretary of the

January 25

Board of

2022

Directors

Deputy

November 03

Secretary of August 17 2023

2022

CPC

November 28

Li Jingren Director Male 59 0 Yes

2018

Acting as August 19 2023

general July 02 2019

manager

Jiang Independent December 06

Male 52 June 16 2022 15 No

Guohua director 2023

Che

Supervisor Male 56 June 10 2020 June 13 2023 82.28 No

Xingyu

Liu Employee

Male 46 June 10 2020 June 13 2023 92.17 No

Chenglong supervisor

Total / / / / / / 888.91 /

Descriptions: 1. The remunerations obtained by the above-mentioned directors (excluding independent directors) supervisors and senior executives refer to the total

remunerations before tax they obtained from the Company during the reporting period including the basic annual pay (or basic salary) for individual and the salary

(or bonus) for performance as well as the social security funds enterprise annuity supplementary medical insurance premium and housing provident funds paid by

the Company. 2. The remunerations obtained by independent directors refer to all subsidies before tax obtained from the Company durting the reporting period. 3.Ding Xiongjun Wang Li and Li Jingren obtained their remunerations from Moutai Group the controlling shareholder of the Company other than the Company; Liu

Shizhong obtain the remuneration from a subsidiary of Moutai Group the controlling shareholder of the Company other than the Company. 4. Tu Huabin and Wang

Xiaowei have received compensation from Moutai Group the controlling shareholder of the company since September 2023 and do not receive compensation from

this company.Full Name Main work experience

Served as the Deputy Secretary General of Guizhou Provincial Government member of the Party Group of the General Office Deputy Director of

the Office of the Leading Group for Continuing the Reform Comprehensively of Guizhou Provincial Party Committee member of the Standing

Ding Committee of the Municipal Party Committee of Bijie Guizhou Province Deputy Mayor (in charge of the routine work of the municipal government)

Xiongjun Party Secretary and Director of Guizhou Energy Administration. Currently serves as the secretary of the Party Committee Chairman of the Board of

Directors and director of China Kweichow Moutai Distillery (Group) Co. Ltd. secretary of the Party Committee Chairman of the Board of Directors

and director of Kweichow Moutai Co. Ltd. and Chairman of the Board of Directors and director of Moutai College.

33 / 175ANNUAL REPORT 2023

Had been the Deputy General Manager and Chief Engineer of China Kweichow Moutai Distillery (Group) Co. Ltd. as well as the Deputy General

Manager and Chief Engineer of Kweichow Moutai Co. Ltd. Currently he serves as the Deputy Secretary of the Party Committee Vice Chairman

Wang Li

Director and General Manager of China Kweichow Moutai Distillery (Group) Co. Ltd. and the Deputy Secretary of the Party Committee Director

and Acting General Manager of Kweichow Moutai Co. Ltd.Had served the People's Bank of China Yantai Branch. Currently serves as a professor and doctoral supervisor at the School of Finance of the Central

Guo

University of Finance and Economics an independent non-executive director in Ping An Healthcare and Technology Company Limited an

Tianyong

independent director in Ping An Bank Co. Ltd. and an independent director in Kweichow Moutai Co. Ltd.Had served as a lawyer in Shanghai Zhongmao Law Firm. Currently serves as a lawyer in Beijing Guantao (Shanghai) Law Firm the vice president

Sheng

of All-China Lawyers Association and the independent director of Shanghai Zhenhua Heavy Industries Co. Ltd. Tsingtao Brewery Co. Ltd. FSG

Leiming

Shanghai United Imaging Healthcare Co. Ltd. and Kweichow Moutai Co. Ltd..Had been a teacher in CUHK (Chinese University of Hong Kong). Currently serves as the head of the Department of Accounting and Law and the

Wang Xin accounting professor at the School of Economics and Management (SEM) of the University of Hong Kong and the independent non-executive

director in Shoucheng Holdings Limited. and the independent director of Kweichow Moutai Co. Ltd..Served as the director of the Department of Legal Intellectual Property Protection of China Kweichow Moutai Distillery (Group) Co. Ltd. and the

Liu director of the Department of Legal Intellectual Property Protection of Kweichow Moutai Co. Ltd. Currently serves 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 Guizhou Moutai Winery (Group) Guiyang Business Co. Ltd. and director of Kweichow Moutai Co. Ltd.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 of party committee director and chairman of the labor union of Kweichow Moutai-

Qinqing Flavor Liquor Marketing Co. Ltd. Currently serves as the director of the Enterprise Management Department of China Kweichow Moutai Distillery

(Group) Co. Ltd. and the employee director and Director of the Enterprise Management Department of Kweichow Moutai Co. Ltd.Served as the 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 Office for Complaint Letter and Visit of China Kweichow Moutai Distillery

You Yalin

(Group) Co. Ltd. Currently serves as the Deputy Secretary of the Party Committee Chairman of the Board of Supervisors supervisor and chairman

of the labor union of Kweichow Moutai Co. Ltd.Had been the deputy director of the general office deputy director of the Party Committee Office director of the Office of the Board of Directors

and the director of the Digital and Information Management Center in China Kweichow Moutai Distillery (Group) Co. Ltd. and the member and

Li

deputy secretary of the party committee director and the General Manager of Kweichow Moutai-Flavor Liquor Marketing Co. Ltd. Currently serves

Qiangqing

as the member of the Committee for Discipline Inspection director of the Party Committee Office (General Office of the Company) the member of

the party committee and permanent deputy secretary of Kweichow Moutai Co. Ltd.Had been the principal staff member at level 1 and the researcher at level 4 of Guizhou Provincial Party Committee Office under the Chinese

Communist Youth League the deputy head of the Legal and Compliance Department of China Kweichow Moutai Distillery (Group) Co. Ltd. and

Wen Yong

the deputy head of the Legal and Compliance Department of kweichow Moutai Co. Ltd. Currently serves as the employee supervisor and the head

of the Legal and Compliance Department of Kweichow Moutai Co. Ltd.Served as the general manager assistant director of the Production Management Department leader of New Workshop Preparatory Group and

Tu Huabin

secretary of the party branch of production of Kweichow Moutai Co. Ltd. general manager assistant of China Kweichow Moutai Distillery (Group)

34 / 175ANNUAL REPORT 2023

Co. Ltd. deputy secretary of Party Committee vice chairman of the Board of Directors and general manager of Kweichow Moutai Distillery (Group)

Xijiu Co. Ltd. and general manager of Kweichow Moutai Co. Ltd. Heyixing Liquor Branch. He is currently a member of the Party Committee and

Deputy General Manager of China Kweichow Moutai Distillery (Group) Co. Ltd. and a member of the Party Committee and Deputy General

Manager of Kweichow Moutai Liquor Co. Ltd.Served as the deputy secretary of the Party branch and deputy director of the fourth liquor-making workshop of Kweichow Moutai Co. Ltd. the

secretary of the Party branch and deputy director of the 23rd liquor-making workshop of Kweichow Moutai Co. Ltd. and the secretary of the Party

Wang branch and deputy director of the 25th liquor-making workshop of Kweichow Moutai Co. Ltd. He is currently a member of the Party Committee

Xiaowei and Deputy General Manager of China Kweichow Moutai Distillery (Group) Co. Ltd. a member of the Party Committee and Deputy General

Manager of Kweichow Moutai Co. Ltd. a secretary of the Party Committee and chairman of the board of directors of Kweichow Moutai Sales Co.Ltd.Served as the director and deputy secretary of the 13th liquor-making workshop assistant to the general manager and director of the Production

Zhong

Management Department of Kweichow Moutai Co. Ltd. Currently serves as a member of the Party Committee and deputy general manager of

Zhengqiang

Kweichow Moutai Co. Ltd.Served as the chairman of the board of directors and general manager of Moutai (Guizhou) Private Equity Fund Management Co. Ltd. the chairman

of the board of directors and the secretary of Party Branch of Moutai (Shanghai) Financial Leasing Co. Ltd. and the vice chairman of the board of

Jiang Yan directors of Guiyang GY Financial Leasing Co. Ltd. Currently serves as a member of the Party Committee deputy general manager chief financial

officer 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

35 / 175ANNUAL REPORT 2023

(II) The current and outgoing directors supervisors and senior management personnel during the

reporting period

1. Appointment in shareholder entity

√Applicable □N/A

Name of Positions held in Start date of End date of

Name of shareholder units

incumbent shareholder units term of service term of service

Ding China Kweichow Moutai Party secretary

August 2021

Xiongjun Distillery (Group) Co. Ltd. chairman and director

Deputy Secretary of

the Party Committee

China Kweichow Moutai

Wang Li Deputy Chairman August 2023

Distillery (Group) Co. Ltd.Director and General

Manager

Member of the Party

China Kweichow Moutai Committee and

Tu Huabin August 2023

Distillery (Group) Co. Ltd. Deputy General

Manager

Member of the Party

Wang China Kweichow Moutai Committee and

August 2023

Xiaowei Distillery (Group) Co. Ltd. Deputy General

Manager

Director of the

Xie China Kweichow Moutai Enterprise December

Qinqing Distillery (Group) Co. Ltd. Management 2021

Department

2. Appointment in other units

√Applicable □N/A

Start date of End date of

Name of Positions held in

Name of other units term of term of

incumbent other units

service service

Chairman of the

Ding Board of

Moutai Institute March 2022

Xiongjun Directors

director

A professor and

doctoral

Central University of Finance and September

supervisor at the

Economics 1999

School of

Guo Finance

Tianyong Independent

Ping An Bank Co. Ltd. August 2016

director

Independent

Ping An Healthcare and Technology

non-executive May 2018

Company Limited

director

Beijing Guantao (Shanghai) Law

Lawyer April 2016

Firm

Shanghai Zhenhua Heavy Industries Independent

June 2019

Co. Ltd. director

Sheng Independent

Tsingtao Brewery Co. Ltd. June 2020

Leiming director

Independent September

FSG

director 2021

Shanghai United Imaging Healthcare Independent November

Co. Ltd. director 2020

Wang Xin University of Hong Kong Professor April 2019

36 / 175ANNUAL REPORT 2023

Independent non-

Shoucheng Holdings Limited executive May 2018

director

Kweichow Moutai Distillery (Group)

Chairman

Real Estate Investment Development

Liu director

Co. Ltd. May 2020

Shizhong

Guizhou Moutai Winery (Group) Chairman

Guiyang Business Co. Ltd. director

Xie Guizhou Guiyang Longdongbao

Director April 2023

Qinqing International Airport Co. Ltd.Guizhou Zunyi Moutai Airport Co.Director April 2022

Wen Ltd.Yong Kweichow Moutai-Flavor Liquor

Director January 2024

Marketing Co. Ltd.Secretary of the

Kweichow Moutai Group Finance Party Branch

Jiang Yan June 2022

Co. Ltd. Director and

Chairman

(III) Remuneration of directors supervisors and senior management personnel

√Applicable □N/A

The remuneration decision-making procedures for directors supervisors

and senior executives who receive remuneration from the Company: first

the renumeration for senior executives is determined upon deliberation

Decision-making by the Board of Directors of the Company in the light of the Company's

procedure of the annual state of operation and performance assessment results; second the

remuneration of directors renumeration for independent directors is determined at the general

supervisors and senior meeting of shareholders of the Company upon deliberation; third the

executives remunerations for employee directors and supervisors who get payment

from the Company are determined based on their posts held concurrently

in the Company under the renumeration management system of the

Company in the light of the individual performance assessment results.

1. The Administrative Measures for the Performance Appraisal of

Members of the Management the Administrative Measures for

Basis for determining the Remuneration of Members of the Management and the Letter of

remuneration of directors Commitment on Business Performanceissued by the Company;

supervisors and senior 2. the Measures for the Implementation of Salary Management of the

managers Company;

3. The renumeration for independent directors is determined at the

general meeting of shareholders.Actual payment ofFor details please refer to “Shareholding changes and remuneration ofremuneration of directors

outgoing directors supervisors and senior managers currently and during

supervisors and seniorthe reporting period” in this report.management personnel

Total actual remuneration

received by all directorsFor details please refer to “Shareholding changes and remuneration ofsupervisors and senior

outgoing directors supervisors and senior managers currently and

management personnel atduring the reporting period” in this report.the end of the reporting

period

(IV) Changes in directors supervisors and senior management personnel of the company

√Applicable □N/A

Situation

Name Position Reasons of change

of change

37 / 175ANNUAL REPORT 2023

Election of the general meeting of shareholders. Please refer

to the Announcement on Resolution of the First

Director Election Extraordinary General Meeting of Shareholders of

Kweichow Moutai in 2023 (Announcement No.: Lin 2023-

Wang Li 029) disclosed on September 8 2023 for details.by the Board of Directors Please refer to the Announcement

Acting as

Currently of Kweichow Moutai on the Resolution of the Third Meeting

general

hired of the Fourth Board of Directors in 2023 (Announcement

manager

No.: Lin 2023-025) disclosed on August 21 2023 for details.Election of the general meeting of shareholders. Please refer

to the Announcement of Kweichow Moutai on the Resolution

Independent

Wang Xin Election of the Second Extraordinary General Meeting of

director

Shareholders in 2023 (Announcement No.: Lin 2023-039)

disclosed on December 7 2023 for details.Election of the general meeting of shareholders. Please refer

to the Announcement of Kweichow Moutai on the Resolution

Li

Supervisor Election of 2022 Annual General Meeting of Shareholders

Qiangqing

(Announcement No.: Lin 2023-016) disclosed on June 14

2023 for details.

Employee representative election. Please refer to the

Employee Announcement of Kweichow Moutai on the Election Results

Wen Yong Election

supervisor of Employee Directors (Announcement No.: Lin 2023-020)

disclosed on June 14 2023 for details.Director Resignation. Please refer to the Announcement of Kweichow

and acting Moutai on Resignation of Directors (Announcement No.:

Li Jingren Off-office.general Lin 2023-027) disclosed on August 21 2023 for details.manager

Resignation. Please refer to the Announcement of Kweichow

Jiang Independent Moutai on Resignation of Independent Directors

Off-office.Guohua director (Announcement No.: Lin 2023-031) disclosed on October

27 2023 for details.

Che

Supervisor Off-office.Xingyu Leaving his post during the election at the office term

Liu Employee expiration of the Board of Supervisors

Off-office.Chenglong supervisor

(V) Explanation of punishment by securities regulatory agencies in recent three years

□Applicable √N/A

(VI) Others

□Applicable √N/A

V. Board meetings during reporting period

Session of the

Date of convening Meeting resolution

meeting

Please refer to the Announcement of Kweichow Moutai

First meeting of the

on the Resolution of the First Meeting of the Third

third Board of March 29 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-002) disclosed on March 31 2023 for details.

Second meeting of Adopted upon deliberation the Proposal on the

the third Board of April 07 2023 Investment and Construction of the Integration of

Directors in 2023 industry and finance at the meeting

Third meeting of the

Please refer to the Announcement of Kweichow Moutai

third Board of April 24 2023

on the Resolution of the Third Meeting of the Third

Directors in 2023

38 / 175ANNUAL REPORT 2023

Board of Directors in 2023 (Announcement No.: Lin

2023-008) disclosed on April 26 2023 for details.

Please refer to the Announcement of Kweichow Moutai

Fourth meeting of

on the Resolution of the Fourth Meeting of the Third

the third Board of May 17 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-011) disclosed on May 19 2023 for details.

Please refer to the Announcement of Kweichow Moutai

First meeting of the

on the Resolution of the First Meeting of the Fourth

fourth Board of June 13 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-017) disclosed on June 14 2023 for details.

Please refer to the Announcement of Kweichow Moutai

Second meeting of

on the Resolution of the Second Meeting of the Fourth

the fourth Board of August 01 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-024) disclosed on August 3 2023 for details.

Please refer to the Announcement of Kweichow Moutai

Third meeting of the

on the Resolution of the Third Meeting of the Fourth

fourth Board of August 19 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-025) disclosed on August 21 2023 for details.

Please refer to the Announcement of Kweichow Moutai

Fourth meeting of

on the Resolution of the Fourth Meeting of the Fourth

the fourth Board of September 07 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-030) disclosed on September 8 2023 for details.

Adopted upon deliberation the Report of Kweichow

Moutai for the Thitd Quarter of 2023 the Proposal on

Fifth meeting of the Deliberating the Assessment Results of Members of the

fourth Board of October 20 2023 Management in 2022 and the Letter of Responsibility of

Directors in 2023 Business Performance for 2023 and the Proposal on

Purchasing the Right of Use of the Land for Building the

Comprehensive Traffic Parking Lot at the meeting.Please refer to the Announcement of Kweichow Moutai

Sixth meeting of the

on the Resolution of the Sixth Meeting of the Fourth

fourth Board of November 20 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-033) disclosed on November 21 2023 for details.

Adopted upon deliberation the Proposal on the

Seventh meeting of Adjustment of Special Committee Members under the

the fourth Board of December 06 2023 Board of Directors and the Proposal on Deliberating the

Directors in 2023 Implementation of Gross Payroll Budget in 2022 and the

Gross Payroll Budget Plan for 2023 at the meeting

Adopted upon deliberation the Proposal on the

Eighth meeting of Rectification of the Ethanol Concentration Detection

the fourth Board of December 19 2023 and Alarm Device and the Linked Draught Fan System

Directors in 2023 in the Stock Area for Liquor Blending and Filling at the

meeting

Please refer to the Announcement of Kweichow Moutai

Ninth meeting of the

on the Resolution of the Ninth Meeting of the Fourth

fourth Board of December 19 2023

Board of Directors in 2023 (Announcement No.: Lin

Directors in 2023

2023-041) disclosed on December 20 2023 for details.

VI. Performance of duties by the directors

(I) The directors attend the board of directors and the general meeting of shareholders

director Joining the

Whether

surname shareholder

an Participation in the Board of Directors

and s’ general

independe

personal meeting

nt director

name Number Number Number of Number of Absenc Did not Number of

39 / 175ANNUAL REPORT 2023

of board of in- participation commissione e personall attendance

attendanc person by d attendance number y attend at

e this attendanc communicatio the shareholder

year e n meeting s’ meetings

for twice

in a row

Ding

Xiongju No 13 13 5 0 0 No 3

n

Wang Li No 6 6 4 0 0 No 1

Guo

Tianyon Yes 13 13 10 0 0 No 3

g

Sheng

Yes 13 13 9 0 0 No 3

Leiming

Wang

Yes 3 3 2 0 0 No 0

Xin

Liu

Shizhon No 13 13 7 0 0 No 3

g

Xie

No 13 13 5 0 0 No 3

Qinqing

Li

No 7 7 2 0 0 No 1

Jingren

Jiang

Yes 10 10 8 0 0 No 2

Guohua

Failure to personally attend board meetings for two consecutive occasions

□Applicable√N/A

Number of board meetings held within the year 13

Including: the number of live meetings 3

Number of meetings held by communication mode 5

The number of meetings were held on site combined

5

with communication methods

(II) Explanation of directors' objections to company-related matters

□Applicable √N/A

(III) Others

□Applicable √N/A

VII. Situation of a special committee under the Board of Directors

√Applicable □N/A

(I) The members of a special committee under the Board of Directors

Special Committee

Member name

category

The Audit committee Wang Xin Guo Tianyong Sheng Leiming

The Nomination committee Sheng Leiming Ding Xiongjun Guo Tianyong

The Salary and Assessment

Guo Tianyong Wang Xin Liu Shizhong

Committee

Ding Xiongjun Wang Li Guo Tianyong Sheng Leiming wang Xin Liu

The Strategy Committee

Shizhong Xie Qinqing

The Risk and Compliance

Wang Li Sheng Leiming Wang Xin

Management Committee

40 / 175ANNUAL REPORT 2023

(II) The audit committee held four meetings during the reporting period

Date of

content of meeting Important comments and suggestions

convening

Deliberated and approved the Report on the Performance of

the Audit Committee under the Board of Directors in 2022

the Annual Report of 2022 (Full Text and Abstract) the

Annual Report on Final Accounts in 2022 the Annual

Financial Budget Plan of 2023 the Report on the Evaluation

First meeting of the

March 29 of Internal Control of 2022 the Internal Control Audit

third Audit Committee

2023 Report of 2022 the Proposal on Hiring Financial Audit

in 2023

Institutions and Internal Control Audit Institutions in 2023

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.April 23 Second meeting of the Adopted upon deliberation the Report of Kweichow Moutai

2023 third Audit Committee for the First Quarter of 2023 and agreed to submit relevant

in 2023 proposals to the Board of Directors of the Company for

deliberation as required.Deliberated and approved the Proposal on Signing a

Trademark License Agreement with a Related Party and the

Third meeting of the

May 16 Proposal on Making Capital Contribution to Establishing the

third Audit Committee

2023 Industrial Development Fund and agreed to submit the

in 2023

relevant proposals to the Board of Directors of the Company

for deliberation as required.July 31 First meeting of the Deliberated and approved the Semi-annual Report in 2023

2023 fourth Audit Committee and agreed to submit the relevant proposals to the Board of

in 2023 Directors of the Company for deliberation as required.October 19 Second meeting of the Adopted upon deliberation the Report of Kweichow Moutai

2023 fourth Audit Committee for the First Quarter of 2023 and agreed to submit relevant

in 2023 proposals to the Board of Directors of the Company for

deliberation as required.(III) The nominating committee held three meeting during the reporting period

Date of convening content of meeting Important comments and suggestions

Adopted upon deliberation the Proposal on the

First meeting of the third General Election of the Board of Directors and

May 16 2023 Nomination Committee agreed to submit relevant proposals to the Board

in 2023 of Directors of the Company for deliberation as

required.Adopted upon deliberation the Proposal on

Nominating Candidates for Directors and the

First meeting of the

Proposal on Determining the Candidate Acting as

August 19 2023 fourth Nomination

the General Manager and agreed to submit

Committee in 2023

relevant proposals to the Board of Directors of the

Company for deliberation as required.Deliberated and approved the Proposal on

Second Meeting of the Nominating Candidates for Independent Directors

November 19 2023 Fourth Nomination and agreed to submit relevant proposal to the

Committee in 2023 Board of Directors of the Company for

deliberation as required.(IV) The Remuneration and Appraisal Committee held two meetings during the reporting period

Date of convening content of meeting Important comments and suggestions

41 / 175ANNUAL REPORT 2023

Adopted upon deliberation the Proposal on

Deliberating the Assessment Results of Members of

First meeting of the

the Management in 2022 and the Letter of

Fourth Remuneration

October 19 2023 Responsibility of Business Performance for 2023

and Appraisal

and agreed to submit relevant proposal to the Board

Committee in 2023

of Directors of the Company for deliberation as

required.Adopted upon deliberation the Proposal on

Second meeting of the Deliberating the Implementation of Gross Payroll

Fourth Remuneration Budget in 2022 and the Gross Payroll Budget Plan

December 5 2023

and Appraisal for 2023 and agreed to submit relevant proposal to

Committee in 2023 the Board of Directors of the Company for

deliberation as required.(V) The Strategy Committee held seven meetings during the reporting period

Date of convening content of meeting Important comments and suggestions

Adopted upon deliberation the Proposal on the

First meeting of the Investment and Construction of the Integration of

April 06 2023 Third Strategy Industry and Finance and agreed to submit relevant

Committee in 2023 proposal to the Board of Directors of the Company

for deliberation as required.Adopted upon deliberation the Liquidation Scheme

Second meeting of the of Guojiu Moutai Customized Marketing (Guizhou)

April 23 2023 Third Strategy Co. Ltd. and agreed to submit relevant proposal to

Committee in 2023 the Board of Directors of the Company for

deliberation as required.Adopted upon deliberation the Proposal on Making

Third meeting of the Capital Contribution to Establishing the Industrial

May 16 2023 Third Strategy Development Fund and agreed to submit relevant

Committee in 2023 proposal to the Board of Directors of the Company

for deliberation as required.Adopted upon deliberation the Proposal on the

Investment and Construction of 60000-ton Liquor

First meeting of the

Blending Center and Comprehensive Parking Lot

July 31 2023 Fourth Strategy

for General Dangerous Goods in China and agreed

Committee in 2023

to submit relevant proposal to the Board of Directors

of the Company for deliberation as required.Adopted upon deliberation the Proposal on

Second meeting of the Purchasing the Right of Use of the Land for Building

October 19 2023 Fourth Strategy the Comprehensive Traffic Parking Lot and agreed

Committee in 2023 to submit relevant proposal to the Board of Directors

of the Company for deliberation as required.Adopted upon deliberation the Proposal on

Third meeting of the Purchasing the Laboratory Instruments and

November 19 2023 Fourth Strategy Equipment in 2023 and agreed to submit relevant

Committee in 2023 proposal to the Board of Directors of the Company

for deliberation as required.Adopted upon deliberation the Proposal on the

Rectification of the Ethanol Concentration

Fourth meeting of the Detection and Alarm Device and the Linked

December 18 2023 Fourth Strategy Draught Fan System in the Stock Area for Liquor

Committee in 2023 Blending and Filling and agreed to submit relevant

proposal to the Board of Directors of the Company

for deliberation as required.

42 / 175ANNUAL REPORT 2023

(VI) The Risk and Compliance Management Committee held three meetings during the reporting

period

Date of convening content of meeting Important comments and suggestions

Adopted upon deliberation the Report on Internal

Control Assessment in 2022 and the Report on

First meeting of the Third

Internal Control Audit in 2022 and agreed to

March 28 2023 Risk Management

submit relevant proposals to the Board of

Committee in 2023

Directors of the Company for deliberation as

required.Adopted upon deliberation the Proposal on

Formulating the Measures for the Comprehensive

Second meeting of the Risk Management and the Proposal on

April 23 2023 Third Risk Management Formulating the Measures for Compliance

Committee in 2023 Management and agreed to submit relevant

proposals to the Board of Directors of the

Company for deliberation as required.Adopted upon deliberation the Proposal on

Changing the Name and Rules of Procedure of

First meeting of the

the Risk Management Committee under the

July 31 2023 Fourth Risk Management

Board of Directors and agreed to submit relevant

Committee in 2023

proposal to the Board of Directors of the

Company for deliberation as required.(VII) Specific circumstances where objections exist

□Applicable √N/A

VIII. Explanation that the Board of Supervisors finds the risks of the Company

□Applicable √N/A

The Board of Supervisors has no objection to the supervision matters during the reporting period.IX. Report on the employees of the parent company and its main subsidiaries at the end of the period

(I) Employee condition

Number of active employees in the parent company 31916

Number of active employees in the main subsidiary 1386

Total number of current employees 33302

The number of retired employees of the parent company

2074

and its main subsidiary that shall bear the expenses

Professional composition

Professional composition category Number of majors

operating personnel 27616

salesman 1198

artisan 740

financial staff 261

clerical staff 1867

other personnel 1620

Total 33302

Educational background

Education background type Quantity (person)

graduate degree or above 491

bachelor degree 10535

college degree 4402

technical secondary school high school and below 17874

Total 33302

43 / 175ANNUAL REPORT 2023

(II) Compensation policy

√Applicable □N/A

First senior executives are subject to the annual salary system under which the annual salary consists of

three parts: basic annual salary performance annual salary and incentive during tenure. In principle they

may not enjoy other expenditures for wages such as allowance and subsidies; Second mid-level managers

are subject to the quasi-annual salary system under which the remuneration level are comprehensively

determined in accordance with the work nature responsibilities and rights risks performances and other

factors of different systems. Third general employees are mainly subject to the post performance salary

system under which the remuneration level is determined according to the technical content knowledge

content personal ability work performance and labor intensity of different positions.(III) Training plan

√Applicable □N/A

The Company’s training plan consists of 124 items (238 phases) in 2024 including 43 company-level

trainings and 81 department-level trainings. A company-level training refers to a training organized at the

company level while a department-level training refers to the training organized and implemented by any

department in the light of the actual situation of the department and its employee growth need. These

trainings are divided into three categories consisting of 6 special talent trainings 10 general skill trainings

and 108 professional skill trainings. Special talent trainings focus on strengthening the training of key

talents including the "succession plan" personnel middle managers internal trainers reserve talents for

product evaluation and backup backbones of production systems so as to continuously improve their

ability quality and technical skills. General skill trainings by focusing on improving staff general ability

and quality establish general training courses that are available for reuse and have a wide range of

participating groups and higher standardization level including the comprehensive quality training laws

and rules training and cultural and education training. Professional skill trainings. Focusing on promoting

the professional ability and quality of employees and based on the job characteristics having an overall

planning for the professional trainings in 19 kinds including safety management finance procurement

management supply management discipline inspection and supervision technology research and

development product evaluation skills equipment management production process quality management

qualification and forensics ecological environmental protection human resources and digital and

information.(IV) Labor service outsourcing condition

√Applicable □N/A

In 2023 the total compensation paid by the Company for labor outsourcing was RMB 347 million

(including tax).X. Profit distribution or capital reserve conversion plan

(I) The formulation implementation or adjustment of the cash dividend policies

√Applicable □N/A

The Articles of Association of the Company defines the principles conditions methods periods cash

dividend ratio decision-making and adjustment procedures and mechanisms and other aspects for profit

distribution.

1. According to the Annual Profit Distribution Plan for 2022 adopted upon deliberation at the annual

general meeting of shareholders in 2022 of the Company on the basis of the total share capital amounting

to 1256197800 shares the Company distributed cash dividends of RMB 259.11 (tax included) 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 non-controlling shareholders were counted separately when

the general meeting of shareholders deliberated the proposal. The profit distribution was completed in

June 2023.

44 / 175ANNUAL REPORT 2023

2. According to the Special Dividend Plan for Returning Shareholders adopted upon deliberation at the

second extraordinary general meeting of shareholders in 2023 the Company distributed the cash dividends

of RMB 191.06 (tax included) to all shareholders of the Company for every 10 shares based on the total

share capital amounting to 1256197800 shares registered on the registration date for the implementation

of equity distribution. The plan was adopted upon deliberation 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 non-controlling shareholders were counted separately when the general meeting of

shareholders deliberated the proposal. The profit distribution was completed in December 2023.During the reporting period the profit distribution of the Company met the provisions of the Articles of

Association of the Company.(II) 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 non-controlling shareholders have the opportunity to fully express

their opinions and appeals and whether their legitimate rights and interests √Yes □No

have been fully protected

(III) 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 retained earnings

□Applicable √N/A

(IV) Profit distribution and conversion of capital reserves into share capital during the reporting

period

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Dividend payout for every 10 shares (RMB) (tax

308.76

included)

Amount of cash dividends (tax included) 38786363272.80

Net profit attributable to ordinary shareholders of

listed companies in the consolidated statement 74734071550.75

for the year of dividends distribution

Proportion of the net profit attributable to

ordinary shareholders of listed companies in the 51.90

consolidated statement (%)

XI. Situation and impact of the Company’s equity incentive plan employee stock ownership plan

or other employee incentive measures

(I) 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

(II) Incentives if not disclosed or with subsequent progress in the interim announcement

Equity incentive

□Applicable √N/A

45 / 175ANNUAL REPORT 2023

Other specifications

□Applicable √N/A

Employee stock ownership plan condition

□Applicable √N/A

Other incentives

□Applicable √N/A

(III) The equity incentive situation granted by the directors and senior managers during the

reporting period

□Applicable √N/A

(IV) The evaluation mechanism of senior management personnel and the establishment and

implementation of the incentive mechanism during the reporting period

√Applicable □N/A

According to relevant provisions of the Administrative Measures for the Remuneration of the Persons in

Charge of the Enterprises Supervised by Guizhou Provincial State-owned Assets Supervision and

Administration Commission and the Measures for Assessing the Operating Performance of the Persons in

Charge of the Enterprises Supervised by Guizhou Provincial State-owned Assets Supervision and

Administration Commission 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 Company has signed the Letter of Responsibility of Business

Performance with senior executives and comprehensively determined the renumeration of senior

executives in combination with the assessment indicators specified in the letter and the completion of

performance.XII. 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 2023 (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) 2023 Internal Control Evaluation Report.Notes to major defects in internal control during the reporting period

□Applicable √N/A

XIII. Management and control of the subsidiaries during the reporting period

√Applicable □N/A

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 reviewingthe 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.

46 / 175ANNUAL REPORT 2023

XIV. Relevant information description of the internal control audit report

√Applicable □N/A

Please refer to the 2023 Annual Internal Control Audit Report of the Company disclosed together with

the report on the website of Shanghai Stock Exchange (website: www.sse.com.cn) for details.Whether the internal control audit report has been disclosed or not:Yes

Types of opinions in internal control audit reports: standard and unqualified

XV. Rectification of self-inspection problems in the special action of governance of listed companies

According to the requirements of the Announcement of the China Securities Regulatory Commission on

Launching Special Actions on Corporate Governance of Listed Companies and the Circular of the

Securities Regulatory Bureau of Guizhou Province on Matters concerning Governance Self-inspection of

Listed Companies the Company earnestly carried out the special self-inspection work of governance

against the special self-inspection list for 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 two problems: one the controlling shareholders failed

to fulfill the commitment to implement the equity incentive plan; two any senior executive of the

Company works concurrently serves the controlling shareholder. The Company will as required continue

to 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.XVI. Others

□Applicable √N/A

Section V Environment and Social Responsibility

I. Environmental information situation

Whether relevant mechanisms for environmental

Yes

protection are established

Environmental protection funds invested during

20836.99

the reporting period (Unit: RMB '0000)

(I) Environmental information of the company and its major subsidiaries that are key emission units

announced by the environmental protection authorities

√Applicable □N/A

1. Emission information

√Applicable □N/A

(1) Main pollutants: waste water waste gas and solid waste.

(2) Names of particular pollutants: COD ammonia nitrogen total phosphorus total nitrogen sulfur

dioxide nitrogen oxides smoke (dust).

(3) Discharge of pollutants in 2023:

* Waste water

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.Sewage

Ammonia- Total Execut

treatment COD Total nitrogen

nitrogen phosphorus ive

plant

47 / 175ANNUAL REPORT 2023

Name Total Total Total Total standa

Mean Mean Mean Mean

amo amo amo amo rds

emissio emissio emissio emissio

unt unt unt unt

n n n n

of of of of

concent concent concent concent

disch disch disch disch

ration ration ration ration

arge arge arge arge

7000t (ton) (ton) (ton) (ton)

/d Discha

Sewa rge

19.05414.70.060.031.96

ge 0.0954 0.0451 2.8729 Standa

1365123983

treat rd of

Headq ment Water

uarters plant Polluta

of 4000t nts for

Moutai /d Ferme

Sewa ntation

26.213

ge 8.71 0.7886 0.27 0.0851 0.03 6.1055 2.09 Alcoho

4

treat l and

ment Distille

plant d

Xinz Spirits

hai Industr

Sewa y

14.90.270.052.65

ge 28.62 0.53 0.117 5.019 (GB27

86176

Treat 631-

ment 2011)

Plant Table 3

Dadi Standa

Sewa rds for

ge 7.39 0.06 0.01 1.21 Direct

25.150.200.0464.307

Treat 5 1 2 7 Discha

ment rge

Plant

Discha

rge

Standa

rd of

Heyixi

Water

ng

Polluta

Liquor

nts for

Branch

Ferme

ntation

Erhe Alcoho

Sewa l and

ge 0.03 2.32 Distille

21.937.691.370.480.1006.625

Treat 5 3 d

ment Spirits

Plant Industr

y

(GB27

631-

2011)

Table 2

Standa

rds for

Indirec

t

48 / 175ANNUAL REPORT 2023

Discha

rge;

First-

grade

A in

Standa

rds for

Polluta

nt

Discha

rge of

Urban

Sewag

e

Treatm

ent

Plants

* Exhaust 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 Oxynitride Smoke (dust)

Executiv

Mean Mean Mean

Dischar Dischar e

Region emission emission Discharge emission ge ge

concentr concentr amount concentr standar

amount amount

ation ation (ton) ation

(ton) (ton) ds

(Mg/m3) (Mg/m3) (Mg/m3)

Headquarters

of Moutai

(Old area and 4.5 3.48 66.36 52.66384 4.7 7.064

Zhonghua Table 2 of

Area) Emission

Xinzh Standards

ai 3 0.8682 53.25 15.63306 10.88 2.24432 for Air Heyi

Area Pollutants xing

from Boiler

Liqu Dadi

3 0.26593 50.79 4.08931 10.09 0.72944 (GB13271-

or Area

2014)

Bran

ch Erhe

30.2701255.034.9979510.610.99872

Area

* Solid waste treatment

The Company hands over the solid waste including distiller's grains waste pit mud and waste wheatgrass

to Kweichow Moutai Distillery (Group) Circular Economy Industrial Development Co. Ltd. for

comprehensive utilization and disposal entrusts a third-party company to transport the domestic garbage

to the incineration power plant and other units for incineration disposal and entrusts a qualified company

to dispose of hazardous wastes in a normalized way.

(4) Approved total amount of discharge

The company has applied for and obtained emission permits for various areas in accordance with the

Measures for the Administration of Emission Permits (Trial) and relevant requirements. The approved

total emission volume during the reporting period is as follows: COD 66.648 tons; ammonia nitrogen

6.665 tons; total phosphorus 0.667 tons; total nitrogen 19.994 tons; nitrogen oxides 231.001 tons; sulfur

dioxide and dust (powder) are subject to concentration control in accordance with the standards specified

49 / 175ANNUAL REPORT 2023

in Table 2 of the Emission Standard of Air Pollutants for Boilers (GB13271-2014).

2. Construction and operation of pollution prevention facilities

√Applicable □N/A

The pollution prevention facilities of Kweichow Moutai Liquor Co. Ltd. mainly include waste water

waste gas and other pollution prevention facilities which are in normal operation. In 2023 the Company

piloted the upgrading and renovation of its wastewater pollution prevention and control facilities to lay a

solid foundation for further reducing pollutant emissions and continued to carry out low nitrogen

transformation of gas boilers for the waste gas pollution prevention and control facilities to effectively

reduce the emissions of major pollutants from the source.

3. 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 rebuilt and expanded projects in

accordance with the law and obtained 3 administrative licenses for environmental impact assessment in

2023.

(2) The Company carried out environmental protection acceptance of completed projects according to law

and completed online filing. In 2023 7 projects had been completed.

4. Emergency response plan for environmental emergencies

√Applicable □N/A

According to the relevant documents such as the "Measures for the Administration of Filing of Emergency

Plans for Environmental Emergencies in Enterprises and Institutions (for trial implementation)" (HF [2015]

No. 4) issued by the Ministry of Environmental Protection both the Company’s headquarters and Yixing

Liquor Industry Branch have prepared emergency plans for sudden environmental incidents and submitted

them to the ecological environment regulatory department for filing and organized emergency drills for

the year 2023 to improve the company's emergency response capabilities.

5. Self-monitoring environmental program

√Applicable □N/A

In accordance with the requirements of the "Measures for Environmental Information Disclosure of

Enterprises and Institutions" (Order No. 31 of the Ministry of Environmental Protection) and the "General

Guidelines for Self monitoring Technology of Polluting Units" (HJ819-2017) the Company has

developed a self monitoring plan to grasp the emission status of pollutants from its own enterprise and its

impact on the quality of the surrounding environment fulfill its legal obligations and social responsibilities

and ensure that self monitoring meets environmental management requirements.

6. Administrative penalties for environmental issues during the reporting period

□Applicable √N/A

7. Other environmental information that should be made public

□Applicable √N/A

(II) Environmental information of the company other than key emission units

□Applicable √N/A

(III) Relevant information conducive to ecological protection pollution prevention and control and

environmental responsibility fulfillment

√Applicable □N/A

50 / 175ANNUAL REPORT 2023

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the company has

been deeply implementing Xi Jinping's thought on ecological civilization actively practicing the concept

of "Clear Waters and Green Mountains as Good as Mountains of Gold and Silver" and adhering to the

two bottom lines of development and ecology. Centering on the overall requirements of ecological priority

and green development and focusing on the overall goal of "one base and one benchmark" the company

has deeply advanced various work such as top-level design pollution prevention and control and carbon

neutrality management. As a result the company has successfully established an innovative practice base

for the concept of "Clear Waters and Green Mountains as Good as Mountains of Gold and Silver" and

successfully applied for and obtained the national and provincial titles of "Green Factory".(I) Enhancing pollution prevention and control level. In accordance with the approach of "grading and

classification classified treatment and resource utilization" we have systematically constructed and

upgraded the pipeline network and wastewater treatment facilities within the factory area achieving a

daily treatment capacity of 23000 tons of wastewater. At the same time we are planning and constructing

the Zhonghua Ecological Wetland to purify and reuse the treated "tailwater" thus reducing the ecological

impact on the Chishui River and ensuring the effectiveness of pollution prevention and control.Additionally we have conducted in-depth research on the characteristics of production wastewater

comprehensive utilization of high-concentration sewage ultra-low nitrogen retrofit of gas-fired boilers

and green and low-carbon aspects aiming to enhance technical capabilities master key core technologies

and lay a foundation for improving pollutant treatment..(II) Strengthening process supervision and control. Following the approach of "online monitoring + self-

monitoring + hierarchical monitoring" we have established monitoring stations at key nodes such as the

effluent discharge outlet of the wastewater treatment plant the flue gas discharge outlet of the boilers and

the stormwater discharge outlet of the factory area. Additionally we have constructed a field scientific

observation and research station in the Chishui River Basin to systematically establish an integrated "sky-

ground" ecosystem monitoring network and an environmental monitoring comprehensive data

management platform.(III) Strengthening ecological and environmental restoration. We actively engage in exchanges and

cooperation with top domestic design institutions to conduct overall ecological design for the factory area.(IV) 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

52297.65

emission (unit: ton)

The Company continues to optimize the energy use

structure actively develop energy-saving and

Types of carbon reduction measures environmental protection technologies formulate carbon

(such as using clean energy to for power emission management plans and build and improve a new

generation using carbon reduction power system taking new energy as the main part. The

technology in the production process Company responded to the national dual carbon strategy

developing and producing new products and issued the "Carbon Peak and Carbon Neutrality" action

that support carbon reduction etc.) plan in December 2023. Through the implementation of

nine key tasks various emission reduction measures were

gradually refined and decomposed.Specific description

□Applicable √N/A

II. Social Responsibility Work

(I) Whether there is any social responsibility report sustainable development report or ESG report

disclosed separately

√Applicable □N/A

51 / 175ANNUAL REPORT 2023

For details please refer to our “Social Responsibility and ESG Report 2023” disclosed on the website of

Shanghai Stock Exchange (URL: www.sse.com.cn) at the same time as this report.(II) Specific information on social responsibilities

□Applicable √N/A

Specific description

□Applicable √N/A

III. Specific work on consolidating and expanding the progress in poverty alleviation and rural

revitalization

√Applicable □N/A

For details please refer to our “Social Responsibility and ESG Report 2023” disclosed on the website of

Shanghai Stock Exchange (URL: www.sse.com.cn) at the same time as this report.Specific description

□Applicable √N/A

52 / 175ANNUAL REPORT 2023

Section VI Significant Events

I. Undertakings of Commitment Fulfillment

(I) 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

Whet Specifi

Next

Whethe her it c

plan

r there is reasons

Backgro Party Commi for any

Commi Commit Commi is a strictl for any

und of making tment failure

tment ment tment deadlin y failure

commit commit time in

Type Content time e for perfor in

ments ment limit timely

perfor med timely

perfor

mance in perfor

mance

time mance

Commit Others China Equity Yes Before No Superio

ments Kweich incentiv the end r

related ow e of authorit

to share Moutai commit Decem ies

reform Distille ment: ber have

ry After 2017 not

(Group the the issued

) Co. complet Compa relevan

Ltd. ion of ny t

split- promot guiding

share ed the opinion

reform formula s and

the tion of specific

Compa equity measur

ny will incentiv es.formula es

te measur

equity es for

incentiv the

e manage

measur ment

es for and

the core

manage technic

ment al

and teams

core of the

technic Compa

al teams ny.accordi

ng to

relevant

national

policies

and

regulati

ons.

53 / 175ANNUAL REPORT 2023

(II) 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

(III) The completion of performance commitments and their impact on the goodwill impairment

test

□Applicable √N/A

II. Non-operating appropriation of funds by controlling shareholders and other related parties

during the reporting period

□Applicable √N/A

III. Non-compliance with guarantees

□Applicable √N/A

IV. Explanation of the board of directors regarding the “Non-standard audit opinion” by the CPA

firm

□Applicable √N/A

V. Analysis of the reasons for and effects of changes in accounting policies accounting estimates or

corrections of significant accounting errors by the Company

(I) Analysis of the reasons for and effects of changes in accounting policies and accounting estimates

□Applicable √N/A

(II) Analysis of the reasons for and effects of corrections of significant accounting errors by the

Company

□Applicable √N/A

(III) Communication with the previous CPA firm

□Applicable √N/A

(IV) Procedures for examination and approval and other descriptions

□Applicable √N/A

VI. Engagement and disengagement of CPA firms

Monetary Unit: RMB '0000 Currency: RMB

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 6

Accumulated working years of the certified public

5

accountant of a domestic accounting firm

Name Remuneration

Internal control audit CPA firm Baker Tilly China CPAs 41

Note on the engagement and disengagement of CPA firms

□Applicable √N/A

54 / 175ANNUAL REPORT 2023

Note on reappointing the CPA firm during the audit

□Applicable √N/A

Description of the decrease in audit fee by over 20% (excluding) compared with that in the prior year

□Applicable √N/A

VII. Cases facing the risk of delisting

(I) Reasons of delisting risk warnings

□Applicable √N/A

(II) Measures to be taken by the Company in response

□Applicable √N/A

(III) Circumstances and reasons for facing termination of listing

□Applicable √N/A

VIII. Matters related to bankruptcy restructuring

□Applicable √N/A

IX. 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

X. 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

XI. 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.XII. Significant related party transactions

(I) Related party transactions related to daily operations

1. Matters that have been disclosed in the interim announcement with no progress or changes in

subsequent implementation

□Applicable √N/A

2. Matters that have been disclosed in the interim announcement with progress or changes in

subsequent implementation

□Applicable √N/A

3. 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

Monetary Unit: Yuan Currency: RMB

Reason

Proportion

Conne s for

Type of Content of of the Settlement Mar

Pricing Principles for cted large

Relationshi Related Related Amount of Related amount of of Related ket

Name of related parties Related party transa differe

p party party party transactions similar party Pric

transactions ction nces

transactions transactions transactions transactions e

price betwee

(%)

n

55 / 175ANNUAL REPORT 2023

transac

tion

prices

and

market

referen

ce

prices

Holding

Cargo Refer to the

Kweichow Moutai Distillery subsidiary Receipt of Cash

transportati independent third-party 216497975.59 64.45

(Group) Logistics Co. Ltd. of the parent services payment

on services transaction price

company

Purchase price is the

Chinese-Foreign Venture same as the supply

Purchase of Purchase of Cash

Dragon and Lion Cap Co. Others price of other non- 353391541.98 10.52

goods goods payment

Ltd. Zhuhai S.E.Z affiliated suppliers of

the Company

Purchase price is the

Guizhou Renhuai Shenren same as the supply

Purchase of Purchase of Cash

Packaging and Printing Co. Others price of other non- 259369377.21 7.72

goods goods payment

Ltd. affiliated suppliers of

the Company

Wholly-

Guizhou Moutai Brewery

owned

(Group) Circular Economy Purchase of Purchase of Cash

subsidiary Negotiated price 141561000.00 100.00

Industrial Investment goods goods payment

of the parent

Development Co. Ltd.company

Purchase price is the

Kweichow Moutai Logistics same as the supply

Purchase of Purchase of Cash

Park Grain Collection and Others price of other non- 125734378.80 2.52

goods goods payment

Storage Co. Ltd. affiliated suppliers of

the Company

Purchase price is the

same as the supply

Guizhou Fuminghang Purchase of Purchase of Cash

Others price of other non- 79633744.86 2.37

Packaging Co. Ltd. goods goods payment

affiliated suppliers of

the Company

Purchase price is the

same as the supply

Guizhou Xinhuaxi Glass Purchase of Purchase of Cash

Others price of other non- 74837333.43 2.23

Co. Ltd. goods goods payment

affiliated suppliers of

the Company

Kweichow Moutai Distillery Purchase price is the

Holding

(Group) Hongyingzi same as the supply

subsidiary Purchase of Purchase of Cash

Agriculture Science and price of other non- 50223736.00 1.01

of the parent goods goods payment

Technology Development affiliated suppliers of

company

Co. Ltd. the Company

Purchase of Purchase of Cash

Kweichow Moutai Hospital Others Negotiated price 29504681.72 98.14

goods goods payment

Wholly-

China Kweichow Moutai owned

Purchase of Purchase of Cash

Distillery (Group) Cultural subsidiary Negotiated price 26270887.61 0.78

goods goods payment

Tourism Co. Ltd. of the parent

company

The purchase price is

Kweichow Moutai Distillery

Purchase of Purchase of the same as the price Cash

(Group) Health Care Wine Others 2656847.80 45.77

goods goods offered by the related payment

Industry Sales Co. Ltd.party to the distributor

The purchase price is

ChangLi Moutai Wine Trade Purchase of Purchase of the same as the price Cash

Others 2656035.41 45.76

Co. Ltd. goods goods offered by the related payment

party to the distributor

The purchase price is

Kweichow Moutai

Purchase of Purchase of the same as the price Cash

Ecological Agriculture Sales Others 951669.03 16.40

goods goods offered by the related payment

Co. Ltd.party to the distributor

Purchase price is the

same as the supply

China Kweichow Moutai Parent Purchase of Purchase of Cash

price of other non- 21875.33 0.001

Distillery (Group) Co. Ltd. company goods goods payment

affiliated suppliers of

the Company

Wholly-

Kweichow Moutai Distillery owned

Receipt of Labor Cash

(Group) Health Care Liquor subsidiary Negotiated price 284953843.63 21.11

services services fee payment

Co. Ltd. of the parent

company

Xunfeng Technology Receipt of Labor Cash

Others Negotiated price 108936867.84 8.07

(Guizhou) Co. Ltd. services services fee payment

Wholly-

Kweichow Moutai Distillery owned

Receipt of Labor Cash

(Group) Hotel Management subsidiary Negotiated price 74332293.77 5.51

services services fee payment

Co. Ltd. of the parent

company

Receipt of Labor Cash

Kweichow Moutai Hospital Others Negotiated price 62578627.93 4.64

services services fee payment

Kweichow Moutai Logistics

Receipt of Labor Cash

Park Grain Collection and Others Negotiated price 60334658.08 4.47

services services fee payment

Storage Co. Ltd.China Kweichow Moutai Wholly-

Receipt of Labor Cash

Distillery (Group) Cultural owned Negotiated price 51569712.68 3.82

services services fee payment

Tourism Co. Ltd. subsidiary

56 / 175ANNUAL REPORT 2023

of the parent

company

Kweichow Moutai (Group)

Receipt of Labor Cash

International Travel Agency Others Negotiated price 40540182.49 3.00

services services fee payment

Co. Ltd.Wholly-

Guizhou Moutai Brewery

owned

(Group) Circular Economy Receipt of Labor Cash

subsidiary Negotiated price 4485361.28 0.33

Industrial Investment services services fee payment

of the parent

Development Co. Ltd.company

Receipt of Labor Cash

Moutai College Others Negotiated price 2065849.07 0.15

services services fee payment

Holding

Guizhou Zunyi Moutai subsidiary Receipt of Labor Cash

Negotiated price 610344.02 0.05

Airport Co. Ltd. of the parent services services fee payment

company

China Kweichow Moutai Parent Receipt of Labor Cash

Negotiated price 136649.00 0.01

Distillery (Group) Co. Ltd. company services services fee payment

Kweichow Moutai Distillery

(Group) Guiyang Gaoxin Receipt of Labor Cash

Others Negotiated price 116120.77 0.01

Real Estate Investment services services fee payment

Development Co. Ltd.Wholly-

Kweichow Moutai Distillery owned

Receipt of Labor Cash

(Group) Technology subsidiary Negotiated price 25429.03 0.002

services services fee payment

Development Co. Ltd. of the parent

company

Kweichow Moutai Distillery

Holding

(Group) Hongyingzi

subsidiary Receipt of Labor Cash

Agriculture Science and Negotiated price 10000.00 0.001

of the parent services services fee payment

Technology Development

company

Co. Ltd.Holding

Huagui Life Insurance Co.subsidiary Purchase of Purchase of Cash

Ltd. Negotiated price 512911.13 2.01

of the parent insurance insurance payment

company

Lease-in

China Kweichow Moutai Parent Rental Cash

and lease- Negotiated price 42906029.72 31.81

Distillery (Group) Co. Ltd. company expenses payment

out

Kweichow Moutai Distillery

Lease-in

(Group) Guiyang Gaoxin Rental Cash

Others and lease- Negotiated price 4136575.64 3.07

Real Estate Investment expenses payment

out

Development Co. Ltd.Kweichow Moutai Distillery Lease-in

Rental Cash

(Group) Sanya Investment Others and lease- Negotiated price 1507254.44 1.12

expenses payment

Industrial Co. Ltd. out

Other

utilities

expenses

Kweichow Moutai Distillery Receipt of

such as

(Group) Guiyang Gaoxin water Cash

Others water Negotiated price 43442.45 0.05

Real Estate Investment supply payment

electricity

Development Co. Ltd. services

and steam

charges

(purchase)

Wholly- Sales price is the same

owned as the purchase price of

Kweichow Moutai Group Sales of Sales of Cash

subsidiary other non-affiliated 5384603095.58 3.66

Marketing Co. Ltd. goods goods payment

of the parent distributors of the

company Company

Wholly- Sales price is the same

Kweichow Moutai Distillery owned as the purchase price of

Sales of Sales of Cash

(Group) Hotel Management subsidiary other non-affiliated 38081330.95 0.03

goods goods payment

Co. Ltd. of the parent distributors of the

company Company

Wholly- Sales price is the same

CHINA GUIZHOU

owned as the purchase price of

MOUTAI BREWERY Sales of Sales of Cash

subsidiary other non-affiliated 23478824.28 0.02

TRADING (H.K.) goods goods payment

of the parent distributors of the

LIMITED

company Company

Wholly- Sales price is the same

China Kweichow Moutai owned as the purchase price of

Sales of Sales of Cash

Distillery (Group) Cultural subsidiary other non-affiliated 15409493.26 0.01

goods goods payment

Tourism Co. Ltd. of the parent distributors of the

company Company

Wholly- Sales price is the same

owned as the purchase price of

Shanghai Kweichow Moutai Sales of Sales of Cash

subsidiary other non-affiliated 13524966.35 0.01

Industrial Co. Ltd. goods goods payment

of the parent distributors of the

company Company

Sales price is the same

Kweichow Moutai Distillery as the purchase price of

Sales of Sales of Cash

(Group) Sanya Investment Others other non-affiliated 12807170.94 0.01

goods goods payment

Industrial Co. Ltd. distributors of the

Company

Sales price is the same

Holding

as the purchase price of

Guizhou Zunyi Moutai subsidiary Sales of Sales of Cash

other non-affiliated 8999745.12 0.01

Airport Co. Ltd. of the parent goods goods payment

distributors of the

company

Company

57 / 175ANNUAL REPORT 2023

Wholly- Sales price is the same

owned as the purchase price of

Beijing Moutai Trade Co. Sales of Sales of Cash

subsidiary other non-affiliated 6364991.14 0.004

Ltd. goods goods payment

of the parent distributors of the

company Company

Sales price is the same

as the purchase price of

Xunfeng Technology Sales of Sales of Cash

Others other non-affiliated 4969911.50 0.003

(Guizhou) Co. Ltd. goods goods payment

distributors of the

Company

Sales price is the same

as the purchase price of

China Kweichow Moutai Parent Sales of Sales of Cash

other non-affiliated 686773.73 0.0005

Distillery (Group) Co. Ltd. company goods goods payment

distributors of the

Company

Wholly-

Kweichow Moutai Distillery owned

Rendering Labor Cash

(Group) Health Care Liquor subsidiary Negotiated price 432178.18 45.62

of services services fee payment

Co. Ltd. of the parent

company

Kweichow Moutai Distillery

Rendering Labor Cash

(Group) Health Care Wine Others Negotiated price 258066.00 27.24

of services services fee payment

Industry Sales Co. Ltd.China Kweichow Moutai Parent Rendering Labor Cash

Negotiated price 89391.24 9.44

Distillery (Group) Co. Ltd. company of services services fee payment

Wholly-

China Kweichow Moutai owned

Rendering Labor Cash

Distillery (Group) Cultural subsidiary Negotiated price 84696.23 8.94

of services services fee payment

Tourism Co. Ltd. of the parent

company

Kweichow Moutai (Group)

Rendering Labor Cash

International Travel Agency Others Negotiated price 38254.72 4.04

of services services fee payment

Co. Ltd.Wholly-

owned

Kweichow Moutai Group Rendering Labor Cash

subsidiary Negotiated price 28516.98 3.01

Marketing Co. Ltd. of services services fee payment

of the parent

company

Xunfeng Technology Rendering Labor Cash

Others Negotiated price 13913.21 1.47

(Guizhou) Co. Ltd. of services services fee payment

ChangLi Moutai Wine Trade Rendering Labor Cash

Others Negotiated price 2353.47 0.25

Co. Ltd. of services services fee payment

Wholly-

owned Lease-in

Kweichow Moutai Group Rental Cash

subsidiary and lease- Negotiated price 371359.82 45.97

Marketing Co. Ltd. expenses payment

of the parent out

company

Lease-in

ChangLi Moutai Wine Trade Rental Cash

Others and lease- Negotiated price 201834.86 24.99

Co. Ltd. expenses payment

out

Lease-in

China Kweichow Moutai Parent Rental Cash

and lease- Negotiated price 234564.22 29.04

Distillery (Group) Co. Ltd. company expenses payment

out

Expenses on

China Kweichow Moutai Parent Other Cash

transfer of Negotiated price 13925889.91 100.00

Distillery (Group) Co. Ltd. company inflows payment

assets

Total / / 7627720559.42 / / /

Details of large return of goods sold

Description of related transactions

(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 RMB 1805818609.89.

(3) Related transactions with other related parties

A. The Company's year-end deposit balance with Guizhou Bank was RMB 24.0969 billion with interest

income of RMB 653.4299 million and investment income of RMB 4.0787 million from mature large

deposit certificates. Kweichow Moutai Group Finance Co. Ltd. a holding subsidiary of the Company

purchased the bonds issued by Bank of Guizhou Co. Ltd. from the open market with the total price of

RMB 500 million. The interest income recognized in the current period amounted to RMB 16226700.As of the end of the period the balance of the provision for impairment of Debt investment was RMB

103700 the balance of accrued interest was RMB 6.3021 million and the book value was RMB 506.1984

million. Kweichow Moutai Group Finance Co. Ltd. a holding subsidiary of the Company entrusted

Guizhou Bank to collect and pay as an agent the service charge of RMB 73374700 for transactions via

the third-party payment channel on “I Moutai” digital marketing platform.

58 / 175ANNUAL REPORT 2023

B. The Company purchased packaging materials from Shanghai Rencai Printing Co. Ltd. with an amount

of RMB 106700 incurred in this period.(II) Affiliated transactions arising from the acquisition or sale of assets or equity

1. Matters disclosed in the interim announcement but without progress or change in subsequent

implementation

□Applicable √N/A

2. Matters disclosed in the interim announcement but without progress or change in subsequent

implementation

□Applicable √N/A

3. Matters not disclosed in the interim announcement

□Applicable √N/A

4. If performance agreement is involved the realization of performance during the reporting period

shall be disclosed

□Applicable √N/A

(III) Important related party transactions jointly invested

1. Matters disclosed in the temporary announcement without subsequent progress or change

□Applicable √N/A

2. Matters disclosed in the temporary announcement with subsequent progress or change

√Applicable □N/A

Balance at

the

Investment Changes in fair value Balance at the end of

Item beginning

amount in 2023 in 2023 the period

of the

period

Moutai Zhaohua (Guizhou)

Industrial Development Fund

2000000000.001383129.222001383129.22

Partnership (Limited

Partnership)

Moutai Jinshi (Guizhou)

Industrial Development Fund

2000000000.001056773.352001056773.35

Partnership (Limited

Partnership)

Total 4000000000.00 2439902.57 4002439902.57

3. Matters not disclosed in the temporary announcement

□Applicable √N/A

(IV) Related debt transactions

1. Matters disclosed in the temporary announcement without subsequent progress or change

□Applicable √N/A

2. Matters disclosed in the temporary announcement with subsequent progress or change

□Applicable √N/A

59 / 175ANNUAL REPORT 2023

3. Matters not disclosed in the temporary announcement

□Applicable √N/A

(V) 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

1. Deposit business

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Maxi Amount in the current period

Scope of

mum Balance at the

Related deposit Total amount Total amount Balance at the end of

Related parties daily beginning of

relationship interest deposited in the withdrawn in the the period

deposi the period

rate current period current period

t limit

China Kweichow

Parent 3334281673

Moutai Distillery 252535693870.38 252397840528.93 3472135014.73

company .28

(Group) Co. Ltd.Wholly-

owned

Kweichow Moutai

subsidiary 4349581600

Group Marketing Co. 8299958412.44 10321234198.33 2328305814.53

of the .42

Ltd.parent

company

Wholly-

Kweichow Moutai owned

Distillery (Group) subsidiary 1655007713

6499906475.486299814668.621855099519.88

Technology of the .02

Development Co. Ltd. parent

company

Wholly-

Kweichow Moutai

owned

Distillery (Group)

subsidiary

Real Estate 23867085.01 726878978.96 252979804.19 497766259.78

of the

Investment

parent

Development Co. Ltd.company

Guizhou Zunpeng 294795599.0

Others 2905934358.27 2733713361.46 467016595.82

Liquor Co. Ltd. 1

Wholly-

China Kweichow owned

Moutai Distillery subsidiary 300901972.6

1442906657.771289566178.70454242451.69

(Group) Cultural of the 2

Tourism Co. Ltd. parent

company

ChangLi Moutai Wine 233713993.2

Others 1595534063.80 1510134457.11 319113599.89

Trade Co. Ltd. 0

Xunfeng Technology

Others - 451308247.64 200103157.21 251205090.43

(Guizhou) Co. Ltd.Wholly-

Guizhou Moutai

owned

Brewery (Group)

subsidiary 244758921.6

Circular Economy 695719399.82 705060995.42 235417326.01

of the 1

Industrial Investment

parent

Development Co. Ltd.company

Kweichow Moutai

Ecological Agriculture Others 19698475.42 1200322459.99 998324821.18 221696114.23

Sales Co. Ltd.Holding

Guizhou Zunyi subsidiary

286597483.8

Moutai Airport Co. of the 817234168.50 889889546.75 213942105.61

6

Ltd. parent

company

Kweichow Moutai

208380623.0

Chun Marketing Others 2539428.72 16874886.70 194045165.03

Company

Guizhou Renhuai

Renshuai Liquor Co. Others 11670729.18 433151519.46 286847303.41 157974945.23

Ltd.Wholly-

owned

Beijing Moutai Trade subsidiary 113853429.5

843204744.74819949743.53137108430.79

Co. Ltd. of the 8

parent

company

Kweichow Moutai

Distillery (Group)

633074824.5

Health Care Wine Others 3786747745.10 4293028444.09 126794125.52

1

Industry Sales Co.Ltd.Kweichow Moutai Holding

6874199.52736461977.00617570013.24125766163.28

Distillery Group subsidiary

60 / 175ANNUAL REPORT 2023

Changli Winery Co. of the

Ltd. parent

company

Guizhou Renhuai

152061971.1

Shenren Packaging Others 958067031.87 990996370.26 119132632.79

8

and Printing Co. Ltd.Wholly-

Kweichow Moutai owned

Distillery (Group) subsidiary 157012780.2

5246540909.415288416827.08115136862.55

Health Care Liquor of the 2

Co. Ltd. parent

company

Wholly-

owned

Shanghai Kweichow

subsidiary

Moutai Industrial Co. 43579726.72 422872926.11 368627431.93 97825220.90

of the

Ltd.parent

company

Holding

Kweichow Moutai subsidiary

382233628.9

Distillery (Group) of the 1893596780.09 2180145571.97 95684837.10

8

Logistics Co. Ltd. parent

company

Shanghai Moutai

Others 52064594.69 542318554.66 509841849.44 84541299.91

Trading Co. Ltd.Wholly-

Kweichow Moutai owned

(Group) Ecological subsidiary

208512.26144907430.0264020779.4081095162.88

Agriculture Industry of the

Development Co. Ltd. parent

company

Wholly-

Kweichow Moutai owned

Distillery (Group) subsidiary

50995943.44103583795.7576160438.2278419300.97

Hotel Management of the

Co. Ltd. parent

company

Chinese-Foreign

Venture Dragon and

Others 48833771.36 217903822.27 204551721.96 62185871.67

Lion Cap Co. Ltd.Zhuhai S.E.Z

Guizhou Shuanglong

Feitian Supply Chain Others - 240693026.57 193251441.72 47441584.85

Management Co. Ltd.Kweichow Moutai

(Group) International

Others 26094729.25 137195605.54 119428716.37 43861618.42

Travel Agency Co.Ltd.Kweichow Moutai

Others - 100354955.39 58092528.49 42262426.90

Hospital

Guizhou Jiuyuan

Others 29753148.43 61927854.22 63101720.16 28579282.49

Property Co. Ltd.Guizhou Fuminghang

Others 11394642.58 108772469.02 95970295.15 24196816.45

Packaging Co. Ltd.Kweichow Moutai

Distillery (Group)

Others 89086167.96 153388809.08 219281050.40 23193926.64

Sanya Investment

Industrial Co. Ltd.Kweichow Moutai

Logistics Park Grain

Others 7340557.09 277270775.22 271358002.81 13253329.50

Collection and Storage

Co. Ltd.Guizhou Xinhuaxi

Others 24457923.23 121836019.69 136464129.76 9829813.16

Glass Co. Ltd.Kweichow Moutai

Distillery (Group)

Others 60916598.81 542500251.89 597215918.04 6200932.66

Guiding Jingqi Glass

Products Co. Ltd.Kweichow Moutai

Group Health Industry Others 19125210.06 121127127.23 137210898.79 3041438.50

Co. Ltd.Wholly-

Guizhou Moutai owned

Winery (Group) subsidiary

1094520.85727295.981192966.24628850.59

Guiyang Business Co. of the

Ltd. parent

company

Kweichow Moutai

Holding

Distillery (Group)

subsidiary

Hongyingzi

of the 5107.60 150397054.08 150198516.90 203644.78

Agriculture Science

parent

and Technology

company

Development Co. Ltd.Moutai College Others - 407444159.82 407305203.00 138956.82

Wholly-

Moutai CCB owned

(Guizhou) Investment subsidiary

5287.91145.9322.935410.91

Fund Management of the

Co. Ltd. parent

company

61 / 175ANNUAL REPORT 2023

Holding

Moutai (Guizhou) subsidiary

Private Fund of the 4032.97 34.44 17.20 4050.21

Management Co. Ltd. parent

company

Holding

Moutai (Guizhou)

subsidiary

Investment Fund

of the 846.41 7.23 3.61 850.03

Partnership (Limited

parent

Partnership)

company

Guizhou Moutai

Distillery (Group)

Others 711787.31 2085863.99 2797613.55 37.75

Lvsheng Organic

Fertilizer Co. Ltd.Guizhou Hengdao

Danlin Agricultural

Others 27.95 0.24 0.12 28.07

Technology

Development Co. Ltd.Guizhou Zunyi

Moutai Airport

Ecological Park Others 3514.91 11845112.76 11848627.67

Investment and

Development Co. Ltd.

1287404335

Total / / / 294940860326.57 295780410772.04 12034492909.95

5.42

Note: The above deposit interest rate ranges from 0.35% to 1.50%.Interest paid to related parties

Related party This reporting period

Kweichow Moutai Distillery (Group) Technology Development Co.

31339938.02

Ltd.China Kweichow Moutai Distillery (Group) Co. Ltd. 29708003.52

Kweichow Moutai Group Marketing Co. Ltd. 21399365.25

Guizhou Zunpeng Liquor Co. Ltd. 4017175.57

Kweichow Moutai Distillery (Group) Logistics Co. Ltd. 3189584.79

Guizhou Moutai Brewery (Group) Circular Economy Industrial

3111083.63

Investment Development Co. Ltd.ChangLi Moutai Wine Trade Co. Ltd. 2458664.23

Kweichow Moutai Chun Marketing Company 2425584.26

China Kweichow Moutai Distillery (Group) Cultural Tourism Co.

2052349.58

Ltd.Guizhou Zunyi Moutai Airport Co. Ltd. 1970595.88

Kweichow Moutai Ecological Agriculture Sales Co. Ltd. 1636584.81

Guizhou Renhuai Shenren Packaging and Printing Co. Ltd. 1619805.58

Xunfeng Technology (Guizhou) Co. Ltd. 1205090.43

Kweichow Moutai Distillery (Group) Health Care Wine Industry

1036722.16

Sales Co. Ltd.Shanghai Kweichow Moutai Industrial Co. Ltd. 934193.97

Kweichow Moutai Distillery Group Changli Winery Co. Ltd. 840830.43

Beijing Moutai Trade Co. Ltd. 600646.94

Shanghai Moutai Trading Co. Ltd. 535645.74

Kweichow Moutai Distillery (Group) Health Care Liquor Co. Ltd. 466072.54

Guizhou Jiuyuan Property Co. Ltd. 446008.34

Kweichow Moutai Distillery (Group) Guiding Jingqi Glass Products

391570.92

Co. Ltd.Moutai College 321413.03

Kweichow Moutai Distillery (Group) Real Estate Investment

278820.47

Development Co. Ltd.Chinese-Foreign Venture Dragon and Lion Cap Co. Ltd. Zhuhai

200840.35

S.E.Z

Kweichow Moutai Distillery (Group) Hongyingzi Agriculture

198537.18

Science and Technology Development Co. Ltd.Kweichow Moutai Logistics Park Grain Collection and Storage Co.

194364.37

Ltd.Kweichow Moutai Distillery (Group) Sanya Investment Industrial 180636.29

62 / 175ANNUAL REPORT 2023

Co. Ltd.Kweichow Moutai Distillery (Group) Hotel Management Co. Ltd. 151598.58

Guizhou Fuminghang Packaging Co. Ltd. 139139.95

Guizhou Shuanglong Feitian Supply Chain Management Co. Ltd. 119459.65

Guizhou Renhuai Renshuai Liquor Co. Ltd. 87955.56

Kweichow Moutai (Group) International Travel Agency Co. Ltd. 68154.66

Guizhou Xinhuaxi Glass Co. Ltd. 36615.62

Kweichow Moutai Hospital 75730.99

Kweichow Moutai Group Health Industry Co. Ltd. 27025.67

Kweichow Moutai (Group) Ecological Agriculture Industry

26650.62

Development Co. Ltd.Guizhou Moutai Winery (Group) Guiyang Business Co. Ltd. 7050.74

Guizhou Moutai Distillery (Group) Lvsheng Organic Fertilizer Co.

570.90

Ltd.Moutai CCB (Guizhou) Investment Fund Management Co. Ltd. 23.00

Moutai (Guizhou) Private Fund Management Co. Ltd. 17.24

Guizhou Zunyi Moutai Airport Ecological Park Investment and

4.46

Development Co. Ltd.Moutai (Guizhou) Investment Fund Partnership (Limited

3.62

Partnership)

Guizhou Hengdao Danlin Agricultural Technology Development

0.12

Co. Ltd.Total 113500129.66

2. Loan business

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Scope Amount in the current period

of Balance at the Total repayment

Related Total loan Balance at the

Related parties Loan limit loan beginning of the amount in the

relationship amount in the end of the period

intere period current period

current period

st rate

China Kweichow Moutai

Parent

Distillery (Group) Co. 3500000000.00 3.65% 3500000000.00 3500000000.00

company

Ltd.Wholly-

owned

Kweichow Moutai

subsidiary

Distillery (Group) Health 499963530.81 2.30% 499963530.81 499963530.81

of the

Care Liquor Co. Ltd.parent

company

Kweichow Moutai

Logistics Park Grain

Others 78180000.00 3.65% 57730000.00 20450000.00 20140000.00 58040000.00

Collection and Storage

Co. Ltd.Total / / / 3557730000.00 520413530.81 3520140000.00 558003530.81

Interest charged to related parties

Item Related parties Current reporting period

Interest income China Kweichow Moutai Distillery (Group)

60502489.52

on loans Co. Ltd.Interest income Kweichow Moutai Distillery (Group) Health

2732535.18

on loans Care Liquor Co. Ltd.Interest income Kweichow Moutai Logistics Park Grain

2019139.63

on loans Collection and Storage Co. Ltd.Total 65254164.33

3. Credit business or other financial business

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Related parties Related Business Total amount Amount actually

63 / 175ANNUAL REPORT 2023

relationship type occurred

Kweichow Moutai Holding

Distillery (Group) subsidiary

Credit

Hongyingzi Agriculture of the 150000000.00

loans

Science and Technology parent

Development Co. Ltd. company

Kweichow Moutai

Logistics Park Grain Pledge

Others 285000000.00 58040000.00

Collection and Storage loans

Co. Ltd.Wholly-

owned

Kweichow Moutai

subsidiary Credit

Distillery (Group) Health 2000000000.00 499963530.81

of the loans

Care Liquor Co. Ltd.parent

company

Wholly-

Kweichow Moutai owned

(Group) Ecological subsidiary Credit

10000000.00

Agriculture Industry of the loans

Development Co. Ltd. parent

company

4. Other instructions

√Applicable □N/A

Kweichow Moutai Group Finance Co. Ltd. a holding subsidiary of the Company purchased the bonds

issued by Guiyang GY Financial Leasing Co. Ltd. from the open market with the total price of RMB

20.00 million for which the interest income recognized in the current period amounted to RMB 706800.

As of the end of the period the Debt investment and interest receivable had been collected in full.(VI) Others

□Applicable √N/A

XIII. Significant contracts and their performance

(I) Trusteeship contracting and leasing

1. Trusteeship

□Applicable √N/A

2. Contracting

□Applicable √N/A

3. Leasing

□Applicable √N/A

64 / 175ANNUAL REPORT 2023

(II) Major guarantees

□Applicable √N/A

(III) Entrusting others to manage cash assets

1. Entrusted assets management

(1) Overview of entrusted assets management

□Applicable √N/A

Other information

□Applicable √N/A

(2) Single entrusted wealth management

□Applicable √N/A

Other information

□Applicable √N/A

(3) Principal entrusted assets management

□Applicable √N/A

2. Entrusted loans

(1) Overview of entrusted loans

□Applicable √N/A

Other information

□Applicable √N/A

(2) Principal entrusted loans

□Applicable √N/A

Other information

□Applicable √N/A

(3) Provision for impairment of entrusted loans

□Applicable √N/A

3. Other information

□Applicable √N/A

(IV) Other significant contracts

□Applicable √N/A

XIV. Description of the use progress of the funds raised

□Applicable √N/A

XV. Instruction of other major events that have a significant impact on investors’ value judgments

and investment decisions

□Applicable √N/A

65 / 175ANNUAL REPORT 2023

Section VII Changes in Shares and Information about Shareholders

I. Changes in share capital

(I) Changes in shares

1. Changes in shares

During the reporting period there is no change to the total number of shares and share capital structure

of the Company.

2. Explanation of changes in shares

□Applicable √N/A

3. 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

4. Other contents deemed necessary by the Company or required by securities regulators to disclose

□Applicable √N/A

(II) Changes in restricted shares

□Applicable √N/A

II. Securities issuance and listing

(I) 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

(II) Changes in the Company’s total shares and shareholder structure and changes in the

Company’s asset and liability structure

□Applicable √N/A

(III) Existing employees’ shares

□Applicable √N/A

III. Shareholders and actual controllers

(I) Total number of shareholders

The total number of ordinary shareholders as of

161640

the end of the reporting period

The total number of ordinary shareholders at the

end of the previous month before the disclosure 161009

date of the annual report

(II) 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

Shareholding of the top 10 shareholders (excluding the shares lent through refinancing)

66 / 175ANNUAL REPORT 2023

Numbe Pledge

r of marking or

shares freezing Natur

Changes in Number of

with e of

Name of shareholder the shares held at Ratio

trading share

(Full name) reporting the end of the (%) Qua

limited Stock holde

period period ntit

conditi status r

y

ons

held

State-

owne

China Kweichow Moutai d

919621 679211576 54.07 None

Distillery (Group) Co. Ltd. legal

perso

n

Hong Kong Securities Unknow Unkn

1514277863129196.87

Clearing Company Ltd. n own

State-

owne

Guizhou State-owned Unknow d

0569967774.54

Capital Operation Co. Ltd. n legal

perso

n

State-

Kweichow Moutai owne

Distillery (Group) d

37600 27849688 2.22 None

Technology Development legal

Co. Ltd. perso

n

State-

owne

Central Huijin Asset Unknow d

103971040.83

Management Co. Ltd. n legal

perso

n

China Securities Finance Unknow Unkn

80394470.64

Corporation Limited n own

Shenzhen Jinhui

Rongsheng Wealth

Management Co. Ltd.- Unknow Unkn

31819979224780.63

Jinhui Rongsheng No.3 n own

Private Equity Investment

Fund

Industrial and Commercial

Bank of China - SSE 50 Unknow Unkn

227524276544020.61

Trading Open Index n own

Securities Investment Fund

Zhuhai Ruifeng Huibang

Assets Management Co.Unknow Unkn

Ltd.-Ruifeng Huibang -752637 6751030 0.54

n own

No.3 Private Equity

Investment Fund

Bank of China Limited -

Unknow Unkn

LOF Graded Securities -523086 4922717 0.39

n own

Investment Fund

Shareholding of top ten shareholders without sales restriction

67 / 175ANNUAL REPORT 2023

Category and quantity of

Quantity of the circulating shares shares

Name of shareholder

without sales restriction Catego

Quantity

ry

RMB

China Kweichow Moutai Distillery Ordina

679211576679211576

(Group) Co. Ltd. ry

shares

RMB

Hong Kong Securities Clearing Company Ordina

8631291986312919

Ltd. ry

shares

RMB

Guizhou State-owned Capital Operation Ordina

5699677756996777

Co. Ltd. ry

shares

RMB

Kweichow Moutai Distillery (Group) Ordina

2784968827849688

Technology Development Co. Ltd. ry

shares

RMB

Central Huijin Asset Management Co. Ordina

1039710410397104

Ltd. ry

shares

RMB

China Securities Finance Corporation Ordina

80394478039447

Limited ry

shares

RMB

Shenzhen Jinhui Rongsheng Wealth

Ordina

Management Co. Ltd.- Jinhui Rongsheng 7922478 7922478

ry

No.3 Private Equity Investment Fund

shares

RMB

Industrial and Commercial Bank of China

Ordina

- SSE 50 Trading Open Index Securities 7654402 7654402

ry

Investment Fund

shares

RMB

Zhuhai Ruifeng Huibang Assets

Ordina

Management Co. Ltd.-Ruifeng Huibang 6751030 6751030

ry

No.3 Private Equity Investment Fund

shares

RMB

Bank of China Limited - LOF Graded Ordina

49227174922717

Securities Investment Fund ry

shares

Among the above shareholders there is related relationship

between China Kweichow Moutai Distillery (Group) Co. Ltd.Notes to relations among the above-

and Kweichow Moutai Distillery (Group) Technology

mentioned shareholders or acting in

Development Co. Ltd. Apart from that the Company does not

concert

know any related relationship among other shareholders and

any parties acting in concert.Shares lent by top 10 shareholders through refinancing

√Applicable □N/A

The status of the top ten shareholders' participation in securities lending and borrowing transactions

Shareholde Holdings in Shares borrowed Holdings in Shares borrowed

r name ordinary account for securities ordinary account for securities

68 / 175ANNUAL REPORT 2023

(full name) and credit account lending at the and credit account lending at the end

at the beginning of beginning of the at the end of the of the period and

the period period and have not period have not yet been

yet been returned returned

Total Total Total Total

Proportio Proportio Proportio Proportio

quantit quantit quantit quantit

n (%) n (%) n (%) n (%)

y y y y

Industrial

and

Commerci

al Bank of

China -

Shanghai

Stock

Exchange

53791600.430076544020.61544000.0043

50

Exchange

Traded

Open-End

Index

Securities

Investment

Fund

Changes in top 10 shareholders compared with the prior period

□Applicable √N/A

Shareholding quantity of top ten shareholders with sales restriction and the sales restriction

□Applicable √N/A

(III) Strategic investors or general legal persons become the top 10 shareholders due to placement

of new shares

□Applicable √N/A

IV. Controlling shareholders and actual controllers

(I) Controlling shareholders

1 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 beverages; catering

Main business

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% shares of Bank of Communications Co. Ltd.;

Shareholdings of other domestic

Holding 3.97% shares of Huachuang Yunxin Digital Technology Co.and overseas listed companies

Ltd.; Holding 1.45% shares of Bank of Guiyang Co. Ltd.; Holding

that controlled and participated

10.05% shares of Guizhou BC&TV Information Network Co. Ltd.;

in during the reporting period

Holding 12% shares of Bank of Guizhou Co. Ltd.

2 Natural person

□Applicable √N/A

69 / 175ANNUAL REPORT 2023

3 Special explanation that the Company does not have any controlling shareholder

□Applicable √N/A

4. Notes to the changes in the controlling shareholders during the reporting period

□Applicable √N/A

5 Block diagram of the property right and control relationship between the Company and the

controlling shareholders

√Applicable □N/A

(II) The actual controller

1 Legal person

√Applicable □N/A

State-owned Assets Supervision and Administration Commission

Name

of Guizhou Province

The person in charge or the legal

Yang Xiangdong

representative of the entity

2 Natural person

□Applicable √N/A

3 Special instructions for the fact that the Company does not have an actual controller

□Applicable √N/A

4 Explanation on the change of the Company’s control during the reporting period

□Applicable √N/A

5 Block diagram of the property rights and control relationship between the Company and the

actual controller

√Applicable □N/A

70 / 175ANNUAL REPORT 2023

6 The actual controller controls the Company through trust or other asset management methods

□Applicable √N/A

(III) Other information about the controlling shareholder and actual controller

□Applicable √N/A

V. 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

VI. Other legal person shareholders holding more than 10% of the shares

□Applicable √N/A

VII. Explanation of share restriction and reduction

□Applicable √N/A

VIII. 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

I. Corporate bonds company bonds and non-financial corporate debt financing instruments

□Applicable √N/A

II. Convertible corporate bonds

□Applicable √N/A

Section X Financial Report

I. Audit report

√Applicable □N/A

Baker Tilly China [2024] No.23234

To the shareholders of Kweichow Moutai Co. Ltd.Ⅰ. Opinion

We have audited the financial statements of Kweichow Moutai Co. Ltd. (hereinafter referred to as the

“Kweichow Moutai”) which comprise the consolidated balance sheet as at December 312023

consolidated income statement consolidated cash flow statement consolidated statement of changes in

shareholders' equity for the year then ended and consolidated notes to the financial statements.In our opinion the consolidated financial statements present fairly in all material respects the

consolidated financial position of the Kweichow Moutai as at December 312023 and the result of

operations and the consolidated cash flows for the year then ended in accordance with Accounting

Standards for Business Enterprises and Accounting System for Business Enterprises.

71 / 175ANNUAL REPORT 2023

Ⅱ. Basis of opinion

We have conducted the audit in accordance with the regulations of Auditing Standards for Chinese

Certified Public Accountants. The part of “Auditor’s responsibility” of the report further stated our

responsibilities under the standards.According to the code of professional ethics for the Chinese Certified Public Accountants we are

independent of the Kweichow Moutai and perform other responsibilities in the field of professional ethics.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.Ⅲ. Emphasis of Matter

Key audit matters are those matters that in our professional judgment were of most significance in our

audit of the consolidated financial statements of the current period. These matters were addressed in the

context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon

and we do not provide a separate opinion on these matters.Key audit matters identified in our audit are summarized as follows:

Recognition of the operating revenue

Disclosure of the relationship and transactions with related parties

72 / 175ANNUAL REPORT 2023

Auditor’s Report(Continued)

Baker Tilly China [2024] No.23234

Key Audit Matters How these matters were addressed in the audit

(I) Recognition of the operating revenue

The procedures we performed during the audit of the 2023 financial

For relevant disclosures please statements consisted primarily of:

refer to the notes to the financial 1. Understanding and evaluating the design of key internal control

statements "3.19 Revenue" and of the management related to the revenue recognition and testing the

"6.39 Operating revenue". operational effectiveness thereof;

In 2023 the operating revenue 2. Conducting a sampling inspection of the sales contract to identify

presented in the financial statements the conditions and terms relevant to the transfer of the control over

was RMB147693605000.00. The goods and assess whether the time-point for revenue recognition meets

revenue from the sale of Maotai the requirements of the Accounting Standards for Business

liquor and Maotai series liquor is Enterprises;

recognized when the control of the 3. Analyzing the revenue and gross profit in light of the product

goods has been transferred to the type and making judgment on whether there is the abnormal

customer specifically at the time of fluctuation in the revenue amount in the current period;

confirmation of the receipt of the 4. Selecting a sample of revenue transactions recorded during the

goods by the customer according to year verifying the original documents (including invoices sales

the agreement of the sales contract. contracts and warehouse receipts) at the time of revenue recognition

As operating revenue is one of the and evaluating the reasonableness of the related revenue recognition

Kweichow Moutai's key policies;

performance indicators we consider 5. Selecting a sample of sales transactions conducted near the year

the recognition of the Kweichow end and examining relevant supporting documentation (including

Moutai's operating revenue as a key delivery notes or documentation from customers confirming receipt of

audit matter. goods) to assess whether the revenue is recognized in the appropriate

accounting period.(II) Disclosure of the relationship and transactions with related parties:

73 / 175ANNUAL REPORT 2023

The procedures we performed during the audit of the 2023 financial

statements consisted primarily of:

1. Understanding the Kweichow Moutai's process for identifying

related parties evaluating and testing the Kweichow Moutai's internal

control over the identification and disclosure of related-party

For relevant disclosures please relationships and transactions.refer to the notes to the financial 2. Obtaining information from the management and those charged

statements "13 Relationship and with governance to identify the names of all known related parties and

transactions with related parties". performing the following audit procedures in respect of such

The Kweichow Moutai's related information's completeness:

transactions with its related parties (1) Checking it with the related-party relationship statements derived

in 2023 involved significant from the financial system and the information obtained from other

amounts and different transaction public sources;

categories including sales of goods (2) Reviewing significant sales purchases and other contracts to

to purchases of raw materials and identify the existence of undisclosed related-party relationships; and

acceptance of labor services from (3) Reviewing statutory records such as shareholders' records

acquisition of funds (absorption of register of shareholders minutes of shareholders' or governance

deposits) from and provision of meetings etc. to identify whether there are related parties that the

loans to related parties. management has not informed.The identification of related party 3. Acquiring a breakdown of related-arty transaction amounts and

relationships and the completeness balances from the management and implementing the following

of disclosure of related transactions procedures:

are the key audit matters. We have (1) Reconciling them with the financial records;

therefore identified the related-party (2) Sampling and checking the reconciliation results of the related-

relationships the transaction arty transaction amounts and balances; and

fairness and the disclosure (3) Certify the related-arty transaction amounts and balances by

completeness as the key audit sampling.matters. 4. Checking whether the related-party relationships and transactions

have been fully disclosed in accordance with the requirements of the

Accounting Standards for Business Enterprises.

5. Comparing the transaction prices of related parties with those of

non-related parties to verify the fairness of the related-party

transactions.Ⅳ. Emphasis of Matter

The directors of the Kweichow Moutai are responsible for the other information. The other information

comprises the information included in the annual report but does not include the financial statements

and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any

form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other

information and in doing so consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit or otherwise appears to be materially

misstated.If based on the work we have performed we conclude that there is a material misstatement of this other

information we are required to report that fact. We have nothing to report in this regard.Ⅴ. Responsibilities of directors and those charged withgovernance for the financial statements

The directors of the Kweichow Moutai are responsible for the preparation of the financial statements

that give a true and fair view in accordance with the disclosure requirements of Accounting Standards

for Business Enterprises and designing implementing and maintaining internal control that is necessary

to ensure the financial statements are free from material misstatement whether due to fraud or error.In preparing the financial statements the directors are responsible for assessing the Kweichow Moutai’s

ability to continue as a going concern disclosing as applicable matters related to going concern and

using the going concern basis of accounting unless the directors either intend to liquidate the Kweichow

Moutai or to cease operations or have no realistic alternative but to do so.

74 / 175ANNUAL REPORT 2023

Those charged with governance are responsible for overseeing the Kweichow Moutai’s financial

reporting process.Ⅵ. Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement whether due to fraud or error and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an

audit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the

aggregate they could reasonably be expected to influence the economic decisions of users taken on the

basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements whether due to

fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence

that is sufficient and appropriate to providea basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error as fraud may involve

collusion forgery intentional omissions misrepresentations or the override of internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.

(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and

based on the audit evidence obtained whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Kweichow Moutai’s ability to continue as a going

concern. If we conclude that a material uncertainty existswe are required to draw attention in our

auditor’s report to the related disclosures in the financial statements or if such disclosures are

inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the

date of our auditor’s report. However future events or conditions may cause the Kweichow Moutai to

cease to continue as a going concern.

(5) Evaluate the overall presentation structure and content of the financial statements and whether the

financial statements represent the underlying transactions and events in a manner that achieves fair

presentation.

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or

business activities within the Kweichow Moutai to express an opinion on the financial statements. We

are responsible for the direction supervision and performance of the group audit. We remain solely

responsible for our audit opinion.We communicated with governance level about the planned audit scope and schedule and significant

audit findings including communicating the notable internal control flaws we identified in the audit.We also provide the governance with a statement that we have complied with relevant ethical

requirements regarding independence and to communicate with them all relationships and other matters

that may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with the governance we determine those matters that were of most

significance in the audit of the consolidated financial statements of the current period and are therefore

the key audit matters. We describe these matters in our auditor’s report unless law or regulation

precludespublic disclosure about the matter or when in extremely rare circumstances we determine that

a matter should not be communicated in our report because the adverse consequences of doing so would

reasonably be expected to outweigh the public interest benefits of such communication.Beijing China Chinese Certified Public

April 2 2024 Accountant:

(Project Partner):

75 / 175ANNUAL REPORT 2023

Chinese Certified Public

Accountant:

Chinese Certified Public

Accountant:

II. Financial statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

December 31 2023

Prepared by: Kweichow Moutai Co. Ltd.Monetary Unit: Yuan Currency: RMB

Item Notes 31-Dec-23 31-Dec-22

Current assets:

Cash and Cash equivalents 1 69070136376.12 58274318733.23

Settlements Provision

Loans to banks and other

2105553836462.58116172711554.59

financial institutions

Held-for-trading financial

3400712059.93

assets

Derivative financial assets

Notes receivable 4 13933440.00 105453212.00

Accounts receivable 5 60373410.41 20937144.00

Financing receivables

Prepayments 6 34585111.79 897377162.27

Insurance premium

receivable

Due from reinsurers

Reinsurance contract

reserves receivable

Other receivables 7 27502107.30 31818622.84

Including: Interest receivable

Dividends receivable

Financial assets purchased

83504849885.05

under agreements to resell

Inventories 9 46435185061.53 38824374236.24

Contract assets

Assets classified as held for

sale

Current portion of non-

102123601333.33

current assets

Other current assets 11 71403906.57 160843674.42

Total current assets 225172517821.28 216611435672.92

Non-current assets:

Loans and advances 12 2130818189.27 4134744407.92

Debt investment 13 5323002071.02 380685319.09

Other debt investments

76 / 175ANNUAL REPORT 2023

Long-term receivables

Long-term equity

investments

Other equity instruments

investments

Other non-current financial

144002439902.57

assets

Investment properties 15 4138545.33 5335046.99

Fixed assets 16 19909280655.97 19742622547.86

Construction in progress 17 2137464700.45 2208329892.95

Productive biological assets

Oil and gas assets

Right-of-use asset 18 314205484.56 402551533.46

Intangible assets 19 8572267313.84 7083177226.45

Development expenditures 20 218015555.49 190536632.60

Goodwill

Long-term prepaid expenses 21 160058930.14 146455346.90

Deferred tax assets 22 4645887425.10 3594952468.88

Other non-current assets 23 109563497.23

Total non-current assets 47527142270.97 37889390423.10

Total assets 272699660092.25 254500826096.02

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 25 3093091103.67 2408371053.69

Receipts in advance

Contract liabilities 26 14125755802.29 15471920924.98

Financial assets sold under

agreements to buy

Customer deposits and

balances from banks and other 27 12034492909.95 12874043355.42

financial institutions

Customer brokerage

deposits

Securities underwriting

brokerage deposits

Payroll and employee

285401921213.774782311242.41

benefits payable

Taxes payable 29 6949663893.87 6896555423.83

Other payables 30 5213133685.87 4543842833.87

Including: Interest payable

Dividend payable

Fees and commission

payable

Payable reinsurance

77 / 175ANNUAL REPORT 2023

Liabilities classified as held

for sale

Current portion of non-

3157054879.48109351155.28

current liabilities

Other current liabilities 32 1822498012.30 1979272808.90

Total current liabilities 48697611501.20 49065668798.38

Non-current liabilities:

Insurance reserves

Long-term borrowings

Bonds payable

Including: Preference share

Perpetual debt

Lease liabilities 33 266636234.04 334447942.79

Long-term Payable

Long-term payroll and

employee benefits payable

Provisions

Deferred income

Deferred tax liabilities 22 78943062.19 162628090.99

Other non-current liabilities

Total non-current

345579296.23497076033.78

liabilities

Total liabilities 49043190797.43 49562744832.16

Owners' equity (or shareholders' equity):

Paid-in capital 34 1256197800.00 1256197800.00

Other equity instruments

Including: Preference share

Perpetual debt

Capital reserve 35 1374964415.72 1374964415.72

Less: treasury shares

Other comprehensive

36-6061727.51-10776907.33

income

Special reserve

Surplus reserve 37 38998763095.13 32520123399.97

General reserve 38 1061529724.00 1061529724.00

Retained earnings 39 172983178300.09 161278002807.10

Equity attributable to

215668571607.43197480041239.46

owners of the parent

Non-controlling interests 7987897687.39 7458040024.40

Total shareholders’ equity 223656469294.82 204938081263.86

Total liabilities and

272699660092.25254500826096.02

shareholders' equity

Legal Representative: Ding Xiongjun

Chief Accountant: Jiang Yan

Head of the Accounting Department: Cai Congying

COMPANY STATEMENT OF FINANCIAL POSITION

December 31 2023

Prepared by: Kweichow Moutai Co. Ltd.Monetary Unit: Yuan Currency: RMB

Item Notes 31-Dec-23 31-Dec-22

Current assets:

Cash and Cash equivalents 72639127443.08 69397227501.61

78 / 175ANNUAL REPORT 2023

Held-for-trading financial

assets

Derivative financial assets

Notes receivable

Accounts receivable 1 17178545925.65 20670923010.62

Financing receivables

Prepayments 18614923.06 883947665.69

Other receivables 2 15880057.16 15092761.22

Including: Interest

receivable

Dividends receivable

Inventories 44516042266.73 37214843706.27

Contract assets

Assets classified as held for

sale

Current portion of non-

2123601333.33

current assets

Other current assets 6651365.50 127580648.65

Total current assets 134374861981.18 130433216627.39

Non-current assets:

Debt investment

Other debt investments

Long-term receivables

Long-term equity

31610535587.551624535587.55

investments

Other equity instruments

investments

Other non-current financial

4002439902.57

assets

Investment properties 4138545.33

Fixed assets 19465206198.98 19278963775.03

Construction in progress 2095013288.53 2151379751.61

Productive biological assets

Oil and gas assets

Right-of-use asset 157783819.40 207871591.22

Intangible assets 8567282703.63 7077311242.16

Development expenditures 218015555.49 190536632.60

Goodwill

Long-term prepaid expenses 125398509.50 127500000.29

Deferred tax assets 854127274.69 789682773.38

Other non-current assets 109563497.23

Total non-current assets 37209504882.90 31447781353.84

Total assets 171584366864.08 161880997981.23

Current liabilities:

Short-term borrowings

Financial liabilities held for

trading

Derivative financial

liabilities

Notes payable

Accounts payable 2986351679.18 2407574612.21

Receipts in advance

Contract liabilities 21950467.31 1179446.26

79 / 175ANNUAL REPORT 2023

Payroll and employee

5211529941.774617577969.34

benefits payable

Taxes payable 4148263488.21 3875939323.83

Other payables 2100265480.39 1938855202.90

Including: Interest payable

Dividend payable

Liabilities classified as held

for sale

Current portion of non-

15940845.5860493144.20

current liabilities

Other current liabilities 2853560.75 153328.01

Total current liabilities 14487155463.19 12901773026.75

Non-current liabilities:

Long-term borrowings

Bonds payable

Including: Preference share

Perpetual debt

Lease liabilities 154907818.31 195899845.16

Long-term Payable

Long-term payroll and

employee benefits payable

Provisions

Deferred income

Deferred tax liabilities 39445954.85 116608070.57

Other non-current liabilities

Total non-current

194353773.16312507915.73

liabilities

Total liabilities 14681509236.35 13214280942.48

Owners' equity (or shareholders' equity):

Paid-in capital 1256197800.00 1256197800.00

Other equity instruments

Including: Preference share

Perpetual debt

Capital reserve 1374303082.72 1374303082.72

Less: treasury shares

Other comprehensive

income

Special reserve

Surplus reserve 38998763095.13 32520123399.97

Retained earnings 115273593649.88 113516092756.06

Total shareholders’ equity 156902857627.73 148666717038.75

Total liabilities and

171584366864.08161880997981.23

shareholders' 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 2023

Prepared by: Kweichow Moutai Co. Ltd.Monetary Unit: Yuan Currency: RMB

Item Notes 2023 2022

80 / 175ANNUAL REPORT 2023

I. Total revenue 150560330316.45 127553959355.97

Including: Operating revenue 40 147693604994.14 124099843771.99

Interest income 41 2866725322.31 3454115583.98

Net earned premiums

Net fee and commission revenue

II. Total operating costs 46960889468.54 39748309616.85

Including: Operating costs 40 11867273851.78 10093468616.63

Interest expenses 41 113500129.93 105584206.24

Fees and commission expenses 41 68578.57 143141.51

Surrenders

Net payments for insurance claims

Net provision of insurance reserve

Policyholder dividends

Reinsurance expenses

Taxes and surcharges 42 22234175898.60 18495818534.22

Selling expenses 43 4648613585.82 3297724190.94

General and administrative

449729389252.319012191073.63

expenses

R&D expenses 45 157371873.01 135185680.40

Financial expenses 46 -1789503701.48 -1391805826.72

Including: Interest expense 12624628.35 12023204.77

Interest income 1942301920.98 1475422303.64

Add: Other income 47 34644873.86 24505353.83

Investment income/(loss) 48 34025967.82 63840000.00

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

493151962.50

value

Credit impairment losses 50 37871293.26 -14686546.25

Assets impairment losses

Gain/ (loss) from disposal of

51-479736.97213235.69

assets

III. Operating profit 103708655208.38 87879521782.39

Add: Non-operating income 52 86779655.95 70852285.40

Less: Non-Operating expenses 53 132881174.52 248884319.61

IV. Profit/(loss) before tax 103662553689.81 87701489748.18

Less: Income tax expense 54 26141077412.01 22325449790.30

V. Net profit /(loss) 77521476277.80 65376039957.88

(1) Categorized by operation continuity

1. Net profit from continuing

77521476277.8065376039957.88

operations

2. Net profit from discontinuing

operations

(2) Categorized by ownership

1. Net profit attributable to owners

74734071550.7562717467870.12

of the parent

2. Net profit attributable to non-

2787404727.052658572087.76

controlling interests

VI. Other comprehensive income net of

554715179.822240973.45

tax

81 / 175ANNUAL REPORT 2023

(1) Other comprehensive income net

4715179.822240973.45

of tax 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

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

4715179.822240973.45

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 foreign currency financial 4715179.82 2240973.45

statements

2.7 Others

(2) Other comprehensive income net of

tax attributable to non-controlling

interests

VII. Total comprehensive income 77526191457.62 65378280931.33

(1) Total comprehensive income

74738786730.5762719708843.57

attributable to owners of the parent

(2) Total comprehensive income

2787404727.052658572087.76

attributable to non-controlling interests

VIII. Earnings per share

(1) Basic earnings per share (CNY /

59.4949.93

share)

(2) Diluted earnings per share (CNY /

59.4949.93

share)

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 2023

Prepared by: Kweichow Moutai Co. Ltd.Monetary Unit: Yuan Currency: RMB

Item Notes 2023 2022

I. Total revenue 4 81415570788.59 71301796876.93

Less: Total operating costs 4 12072158914.05 10420242137.46

Taxes and surcharges 21084932938.46 17592050587.39

Selling expenses 1103737062.73 838175269.31

82 / 175ANNUAL REPORT 2023

General and administrative expenses 8986759635.56 8342403894.00

Research and development expenses 157371873.01 135185680.40

Finance expenses -1466635084.72 -1363150442.27

Including: Interest expenses (expressed

6516690.607612746.94

with positive value)

Interest income (expressed

1480404867.751437004178.70

with positive value)

Add: Other income 16495748.00 9460960.94

Investment income/(loss) 5 35364314663.45 47660330707.35

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)

Gain/ (loss) on the changes in fair

2439902.57

value

Credit impairment losses -65274.04 2489064.82

Assets impairment losses

Gain/ (loss) from disposal of assets -3223587.40 343183.91

II. Operating profit/Loss 74857206902.08 83009513667.66

Add: Non-operating income 73556271.04 66605379.09

Less: Non-operating expenses 128519882.50 242611517.77

III.Profit/(loss) before tax 74802243290.62 82833507528.98

Less: Income tax expense 10015846339.04 9030426386.98

IV. Net profit /(loss) 64786396951.58 73803081142.00

(1) Net profit from continuing operations 64786396951.58 73803081142.00

(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 64786396951.58 73803081142.00

VII. Earnings per share

83 / 175ANNUAL REPORT 2023

(1) Basic earnings per share (CNY /

51.5758.75

share)

(2) Diluted earnings per share (CNY /

51.5758.75

share)

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 2023

Prepared by: Kweichow Moutai Co. Ltd.Monetary Unit: Yuan Currency: RMB

Item Notes 2023 2022

I. Cash flows from operating activities

Cash receipts from the sale of goods

163699909417.62140691678592.00

and the rendering of services

Net increase in customer bank deposits

and due to banks and other financial -810223002.76 -8916033228.67

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

3018786023.423247615476.04

commission

Net increase in funds deposit

Net increase in repurchase business

funds

Net income from securities trading

brokerage business

Tax refunds received 1500047.04 33191912.56

Cash received relating to other

56(1)2346196470.632759422171.88

operating activities

Sub-total of cash inflows 168256168955.95 137815874923.81

Cash paid for purchase of goods and

11029476036.218357859151.03

services

Net increase in loans and payments on

-2051930316.19723778672.00

behalf of customers

Net increase in deposits with central

1570003429.0113037761321.90

bank and other financial institutions

Payments for claims for original

insurance contracts

Net increase in funds lent 2500000000.00

Cash paid for interest fees and

142896151.2179226410.98

commission

Commissions on insurance policies

paid

Cash paid to and on behalf of employee 13845293907.26 11752241598.62

84 / 175ANNUAL REPORT 2023

Cash paid for taxes 66683472509.22 62043324506.36

Cash paid relating to other operating

56(1)7943709518.145123087432.89

activities

Sub-total of cash outflows 101662921234.86 101117279093.78

Net cash flows from operating

66593247721.0936698595830.03

activities

II. Cash flows from investing activities

Cash received from disposal of

56(2)7549947301.15

investments

Cash received from investment income 140715000.00 5880000.00

Net proceeds from disposal of property

plant and equipment intangible assets and 24948352.95 355149.00

other long-term assets

Cash received from disposal of

subsidiaries and other business units

Cash received relating to other

56(2)4605886.634971762.18

investing activities

Sub-total of cash inflows 7720216540.73 11206911.18

Purchase of property plant and

equipment intangible assets and other 2619755888.79 5306546416.54

non-current assets

Cash paid for investments 56(2) 14817852800.00 210000000.00

Net increase in secured loans

Net cash paid for acquisition of a

subsidiary and other operating units

Cash paid relating to other investing

56(2)7021867.1031486829.54

activities

Sub-total of cash outflows 17444630555.89 5548033246.08

Net cash flows from investing

-9724414015.16-5536826334.90

activities

III. Cash flows from financing activities

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

58754786730.0157370196191.46

dividends or profit and interest expenses

Including: Dividends or profit paid to

non-controlling shareholders of 2204530367.41 2618815078.45

subsidiaries

Cash payments relating to other

56(3)134315261.9354332788.37

financing activities

Subtotal of cash outflows 58889101991.94 57424528979.83

Net cash flows from financing

-58889101991.94-57424528979.83

activities

IV. Effect of exchange rate changes on

1718255.65911088.01

cash and cash equivalents

V. Net increase in cash and cash

-2018550030.36-26261848396.69

equivalents

Add: Cash and cash equivalents at

152378738982.83178640587379.52

beginning of year

VI. Cash and cash equivalents at end of

150360188952.47152378738982.83

year

85 / 175ANNUAL REPORT 2023

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 2023

Prepared by: Kweichow Moutai Co. Ltd.Monetary Unit: Yuan Currency: RMB

Item Notes 2023 2022

I. Cash flows from operating activities

Cash receipts from the sale of

goods and the rendering of 94747549529.72 60627778647.24

services

Tax refunds received

Cash received relating to other

2257446106.711869230100.75

operating activities

Sub-total of cash inflows 97004995636.43 62497008747.99

Cash paid for purchase of goods

11054477987.648247604843.54

and services

Cash paid to and on behalf of

13029936131.1411019897320.84

employee

Cash paid for taxes 39639038426.44 37873356637.22

Cash paid relating to other

4384891703.902876686272.05

operating activities

Sub-total of cash outflows 68108344249.12 60017545073.65

Net cash flows from operating

28896651387.312479463674.34

activities

II. Cash flows from investing activities

Cash received from disposal of

2014000000.00

investments

Cash received from investment

35474191055.5147596490707.35

income

Net proceeds from disposal of

property plant and equipment

16093650.00317509.00

intangible assets and other long-

term assets

Cash received from disposal of

subsidiaries and other business

units

Cash received relating to other

4605886.634971762.18

investing activities

Sub-total of cash inflows 37508890592.14 47601779978.53

Purchase of property plant and

equipment intangible assets and 2589885182.75 5252006054.93

other non-current assets

Cash paid for investments 4000000000.00

Cash Paid for disposal of

subsidiaries and other business

units

Cash paid relating to other

7021867.1031486829.54

investing activities

Sub-total of cash outflows 6596907049.85 5283492884.47

Net cash flows from

30911983542.2942318287094.06

investing activities

III. Cash flows from financing activities

86 / 175ANNUAL REPORT 2023

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 or profit and interest 56550256362.60 54751381113.01

expenses

Cash payments relating to other

71050469.5019713859.66

financing activities

Subtotal of cash outflows 56621306832.10 54771094972.67

Net cash flows from

-56621306832.10-54771094972.67

financing activities

IV. Effect of exchange rate

changes on cash and cash

equivalents

V. Net increase in cash and cash

3187328097.50-9973344204.27

equivalents

Add: Cash and cash equivalents

67960589067.5377933933271.80

at beginning of year

VI. Cash and cash equivalents at

71147917165.0367960589067.53

end of year

Company Principal: Ding Xiongjun

Accounting Principal: Jiang Yan

Head of the Accounting Department: Cai Congying

87 / 175ANNUAL REPORT 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

January to December 2023

Prepared by: Kweichow Moutai Co. Ltd.Monetary Unit: Yuan Currency: RMB

2023

Equity attributable to owners of the parent

Other equity Less

Item instruments : Other Non-controlling Total shareholders’

interests equity

Capital treas comprehen Special Oth

Subtotal

Share capital prefer Perp Ot Surplus reserve General reserve Retained earnings ers

reserve ury sive reserve

ence etual her

shar income

share debt s

es

1. Balance at the -

end of previous year 1374964415 1077690 32522779178.8

1256197800.001061529724.00161301978184.73197506672396.007458015858.08204964688254.08.727.338

Add: changes in

-2655778.91-23975377.63-26631156.5424166.32-26606990.22

accounting policies

Corrections of

prior period errors

Others

2. Balance at the -

beginning of the 1374964415 1077690 32520123399.9

1256197800.001061529724.00161278002807.10197480041239.467458040024.40204938081263.86

year .72 7.33 7

3.

4715179.

Increase/(decrease) 6478639695.16 11705175492.99 18188530367.97 529857662.99 18718388030.96

82

during the period

(1) Total

4715179.

comprehensive 74734071550.75 74738786730.57 2787404727.05 77526191457.62

82

income

(2) Shareholders’

contributions and -6000000.00 -6000000.00

reduction

(i) Shareholders

‘contributions in

ordinary share

(ii) Other equity

instruments

contributions

(iii) Amount of

share-based

payments

recognized in equity

(iv) Others -6000000.00 -6000000.00

(3) Profit

6478639695.16-63028896057.76-56550256362.60-2251547064.06-58801803426.66

distribution

(i) Transfer to

6478639695.16-6478639695.16

surplus reserve

88 / 175ANNUAL REPORT 2023

(ii) Transfer to

general reserve

(iii) Distribution to

-56550256362.60-56550256362.60-2251547064.06-58801803426.66

shareholders

(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 -

137496441538998763095.1

1256197800.006061727.1061529724.00172983178300.09215668571607.437987897687.39223656469294.82.723

51

2022

Equity attributable to owners of the parent

Non-controlling Total shareholders’

Item Other equity Other Capita

Sha interests equity

Share instruments Capital Share equity l Other equity re Other equity Capital reserve Share capital

prefer Perp Ot Share capital Capital reserve cap instruments

capital reserve capital instrume reserv instruments

ence etual her ital

share debt s nts e

1. Balance at the -

1256197800137496441525142832818.1

end of previous 1301788 1061529724.00 160716861920.19 189539368797.29 7418137908.05 196957506705.34.00.726

year 0.78

Add: changes in -3017532.39 -24637756.00 -27655288.39 145107.04 -27510181.35

accounting

policies

Corrections

of prior period

errors

Others

2. Balance at the -

1256197800137496441525139815285.7

beginning of the 1301788 1061529724.00 160692224164.19 189511713508.90 7418283015.09 196929996523.99.00.727

year 0.78

3.2240973.

7380308114.20585778642.917968327730.5639757009.318008084739.87

Increase/(decreas 45

89 / 175ANNUAL REPORT 2023

e) during the

period

(1) Total

2240973.

comprehensive 62717467870.12 62719708843.57 2658572087.76 65378280931.33

45

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

7380308114.20-62131689227.21-54751381113.01-2618815078.45-57370196191.46

distribution

(i) Transfer to

7380308114.20-7380308114.20

surplus reserve

(ii) Transfer to

general reserve

(iii) Distribution

-54751381113.01-54751381113.01-2618815078.45-57370196191.46

to shareholders

(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

90 / 175ANNUAL REPORT 2023

(ii) Utilisation

(6) Others

4. Closing -1256197800 1374964415 32520123399.9

balance 1077690 1061529724.00 161278002807.10 197480041239.46 7458040024.40 204938081263.86 .00 .72 7

7.33

Company Principal: Ding Xiongjun

Accounting Principal: Jiang Yan

Head of the Accounting Department: Cai Congying

COMPANY STATEMENT OF CHANGES IN EQUITY

January to December 2023

Monetary Unit: Yuan Currency: RMB

Year 2023

Other equity

instruments

pr

Pe

ef Other Specia

rp Less:

Item er comprehe l Total shareholders’

Share capital et Ot Capital reserve treasury Surplus reserve Retained earnings

en nsive reserv equity

ua he shares

ce income e

l rs

sh

de

ar

bt

e

1. Balance at the end of

1256197800.001374303082.7232522779178.88113539994766.29148693274827.89

previous year

Add: changes in accounting

-2655778.91-23902010.23-26557789.14

policies

Corrections of prior

period errors

Others

2. Balance at the beginning

1256197800.001374303082.7232520123399.97113516092756.06148666717038.75

of the year

3. Increase/(decrease) during

6478639695.161757500893.828236140588.98

the period

(1) Total comprehensive

64786396951.5864786396951.58

income

(2) Shareholders’

contributions and reduction

(i)Shareholders’

contributions in ordinary

share

91 / 175ANNUAL REPORT 2023

(ii) Other equity

instruments contributions

(iii) Amount of share-based

payments recognized in

equity

(iv) Others

(3). Profit distribution 6478639695.16 -63028896057.76 -56550256362.60

(i) Transfer to surplus

6478639695.16-6478639695.16

reserve

(ii) Distribution to

-56550256362.60-56550256362.60

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 1256197800.00 1374303082.72 38998763095.13 115273593649.88 156902857627.73

2022

Other equity

Other

instruments

compr Speci

pr Pe Less:

Item ehensi al Total shareholders’

Share capital ef rp Ot Capital reserve treasury Surplus reserve Retained earnings

ve reserv equity

er et he shares

incom e

en ua rs

e

ce l

92 / 175ANNUAL REPORT 2023

sh de

ar bt

e

1. Balance at the end of

1256197800.001374303082.7225142832818.16101871858632.84129645192333.72

previous year

Add: changes in accounting

-3017532.39-27157791.57-30175323.96

policies

Corrections of prior

period errors

Others

2. Balance at the beginning

1256197800.001374303082.7225139815285.77101844700841.27129615017009.76

of the year

3. Increase/(decrease)

7380308114.2011671391914.7919051700028.99

during the period

(1) Total comprehensive

73803081142.0073803081142.00

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 7380308114.20 -62131689227.21 -54751381113.01

(i) Transfer to surplus

7380308114.20-7380308114.20

reserve

(ii) Distribution to

-54751381113.01-54751381113.01

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

93 / 175ANNUAL REPORT 2023

(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 1256197800.00 1374303082.72 32520123399.97 113516092756.06 148666717038.75

Company Principal: Ding Xiongjun

Accounting Principal: Jiang Yan

Head of the Accounting Department: Cai Congying

94 / 175ANNUAL REPORT 2023

III. Company profile

1. 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 201999. Its registered capital at its establishment was RMB

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 71500000 A shares (including

6500000 state-owned shares) at Shanghai Stock Exchange on July 31 2001 marking a total capital of

its shares at 250000000 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- 250000000 shares as the baseline and distributed dividends (RMB 6 yuan every 10 shares tax

inclusive) to all shareholders and converted capital reserves into increased share capital at a 10:1 ratio

totally increasing 25000000 shares. After this profit distribution the total capital share increased from

250000000 shares to 275000000 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- 275000000 shares as the baseline and

distributed dividends (RMB 2 yuan 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 275000000 shares to 302500000 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- 302500000 shares as the baseline and distributed dividends (RMB 3 yuan 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 302500000 shares to 393250000

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- 393250000 shares as the baseline and distributed dividends (RMB 5 yuan 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 393250000 shares to 471900000

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- 471900000 shares as the baseline and

converted every 10 capital reserves into 10 increased share capital. After this profit distribution the total

capital share increased from 471900000 shares to 943800000 shares. On November 172006 the

95 / 175ANNUAL REPORT 2023

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- 943800000 shares as the baseline

and distributed dividends (RMB 23 yuan 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

943800000 shares to 1038180000 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- 1038180000 shares as the baseline

and distributed dividends (RMB 43.74 yuan 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

1038180000 shares to 1141998000 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- 1141998000 shares as the baseline

and distributed dividends (RMB 43.74 yuan 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 1141998

000 shares to 1256197800 shares. On October 292015 the corporation completed registration for

alternation of registered capital from Administration for Industry& Commerce of Guizhou Province.Business scope of the Company: 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 vehicle transporting (dangerous chemicals not

included) and maintenance and the second category of value-added telecommunications services.IV. Basis for the preparation of the financial statements

1. Basis of preparation of financial statements

The company has prepared its financial statements on a going concern basis.

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.V. Significant accounting policies and accounting estimates

Specific accounting policies and accounting estimates:

√Applicable □N/A

1. Statement on 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.

2. Accounting period

The accounting year of the Company is from 1 January to 31 December.

3. Operating cycle

√Applicable □N/A

The Company adopts 12 months as an operating cycle.

96 / 175ANNUAL REPORT 2023

4. Functional currency

The Company adopts RMB as its functional currency.

5. Determination method and selection basis of materiality criteria

√Applicable □N/A

Item Materiality criteria

The amount of bad debt provision assessed

Significant bad debt provision assessed individually accounts for over 10% of the total

individually of accounts receivable amount of bad debt provision of accounts

receivable and exceeds RMB 50 million.The amount of individual recovery or reversal

Significant recovery or reversal of bad debt

accounts for over 10% of the total amount of

provision of accounts receivable

accounts receivable and exceeds RMB 50 million.The amount of individual write-off accounts for

over 10% of the total amount of bad debt provision

Significant write-off of accounts receivable

of accounts receivable and exceeds RMB 50

million.The budget of individual construction in progress

Significant construction in progress

investment exceeds RMB 1 billion.The budget amount of individual research and

development project which is capitalized accounts

Significant capitalization of research and for over 10% of the total budget of current

development expenditures research and development projects and the

capitalized amount incurred in the current period

exceeds RMB 50 million.investment budget for a single construction in

important projects of construction in progress

progress exceeding RMB 1 billion

The amount of individual accounts payable or

other payables with the aging over 1 year accounts

Significant accounts payable and other payables for over 10% of the total amount of accounts

payable or other payables and exceeds RMB 100

million.The subsidiaries with non-controlling

shareholders holding 5% and more than 5% of

shares and the amount of total assets net assets

Significant non-wholly owned subsidiaries

operating revenue and net profit accounts for

over 10% of the corresponding items in the

consolidated financial statements.

6. 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

97 / 175ANNUAL REPORT 2023

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

value of the net identifiable asset acquired from the acquiree through combination include the difference

in the current profits or losses.

7. Judgment criteria for control and basis of consolidated financial statements

√Applicable □N/A

(1) Judgment criteria for control

The consolidation scope of the consolidated financial statements is determined on the basis of control.The control over an investee will be identified when an investor: has the power over the investee is

exposed to variable returns from its involvement with the investee and has the ability to to affect those

returns through its power over the investee.

(2) Basis of consolidated financial statements

The consolidated financial statements of the Company are prepared in accordance with the Accounting

Standards for Business Enterprises No.33 --Consolidated Financial Statements and relevant regulations.All major internal transactions and current accounts within the scope of the consolidate have been offset

at the time of consolidation. The part of shareholders' equity of a subsidiary that is not owned by the parent

company shall be presented separately as non-controlling equity under shareholders’ equity in the

consolidated financial statements. When preparing the consolidated financial statements where

accounting policies and accounting periods adopted by subsidiaries are inconsistent with those of the

Company necessary adjustments should be made to the financial statements of subsidiaries according to

the accounting policy and accounting period adopted by the Company. For the subsidiaries acquired

through business combination under common control their operating results and cash flows shall be

included in the consolidated financial statements from the beginning of the current consolidation period.When preparing the comparative consolidated financial statements related items in the financial

statements of the previous year are adjusted accordingly and it is deemed that after the combination the

reporting entity has been in existence since the point when the ultimate controlling party began to control.For the subsidiaries acquired through business combination not under common control their operating

results and cash flows shall be included in the consolidated financial statements as from the date of

obtaining the control right by the Company.

8. 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.

98 / 175ANNUAL REPORT 2023

9. Foreign operations and foreign currency translation

√Applicable □N/A

(1) Foreign currency operations

The amount in the foreign currency shall be translated into RMB 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 RMB currency according to the middle rate

of exchange rate at the end of the period. The difference between the translated RMB 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 “retained earnings” 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.

10. Financial Instruments

√Applicable □N/A

(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.The financial assets of the Company are classified according to the business model of the company's

management of financial assets and the cash flow characteristics of financial assets.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

99 / 175ANNUAL REPORT 2023

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. Investment in debt instruments measured 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. Investment in equity instruments measured at fair value through other comprehensive income

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 measured at fair value through profit or loss

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

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.

100 / 175ANNUAL REPORT 2023

B. Financial liabilities measured at fair value through profit or loss

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) Offset 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

theweight 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 acceptance bill portfolio Bank acceptance bills

Accounts receivable portfolio Accounts receivable of related parties within the scope of

consolidation

101 / 175ANNUAL REPORT 2023

Portfolio of other receivables Reserve funds deposits and security deposit and other receivables

with low credit risk

Portfolio of other receivables Other receivables of related parties within the scope of

consolidation

Other portfolios Other payments except the 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 income the

Company calculates impairment losses or income into profits/ losses of the current period while adjusting

other comprehensive income.

(6) Transfer of financial assets

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.

11. Inventories

√Applicable □N/A

Classification of inventory measurement method of dispatched inventories inventory system and

amortization method of low-cost consumables and packing materials

√Applicable □N/A

(1) Classification of inventories

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 goodsshall be accounted according to the actual cost and the moving weighted average

method shall be used in accounting for costs of sales.

102 / 175ANNUAL REPORT 2023

(3) Inventory system

Perpetual inventory system

(4) Amortization method of low-cost consumables and packing materials

One-off amortization method

Determination basis and method of provision for inventories

√Applicable □N/A

At the end of the period the inventories shall be measured at the lower of cost and net realizable value:

the provision for inventories shall be made at the excess of cost of the individual inventory over its net

realizable value.The category and determination basis of the provision for inventories assessed by portfolio and

the determination basis of net realizable value of different categories

□Applicable √N/A

The calculation method and determination basis of net realizable value of inventories categorized

by aging

□Applicable √N/A

12. Long-term equity investments

√Applicable □N/A

(1) Judgment criteria for control and significant influence:

The long-term equity investments of the Company are mainly investments in 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) Recognition of investment cost:

A. Long-term equity investment acquired through business combination:

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 acquisition

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 acquisition 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 acquisition date the combination cost

according to the Accounting Standards for Business Enterprises No.20 - Business Combination should be

calculated as the initial investment cost of long-term equity investment.B. For long-term equity investments obtained by means other than business 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.

103 / 175ANNUAL REPORT 2023

(3) Subsequent measurements and recognition of profit or loss

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.

13. Investment properties

(1) Investment properties measured at cost:

Depreciation and amortization methods

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).

14. Fixed assets

(1) 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.

(2) Depreciation method

√Applicable □N/A

Depreciation Estimated useful Residual value Annual

Category

method life (year) rate depreciation rate

Buildings Straight-line

205%4.75%

method

Machinery Straight-line

105%9.5%

equipment method

Electronic Straight-line

55%19%

equipment method

104 / 175ANNUAL REPORT 2023

Vehicles Straight-line

55%19%

method

A. For the newly purchased instruments and equipment specially used for research and development

after January 1 2014 the amount less than RMB 1 million will be included in the current costs and

expenses in a lump.B. The depreciation year of the newly purchased instruments and equipment with the amount exceeding

RMB 1 million specially used for research and development after January 1 2014 is as follows:

Asset category Estimated useful life

Machinery equipment 6 years

Electronic equipment 2 years

(3) Methods of test for impairment of fixed assets and provision for impairment

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.

15.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.

(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.

16. 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:

105 / 175ANNUAL REPORT 2023

(1) Commencement of capitalization: borrowing costs can only begin to be capitalized if the following

three conditions are all met simultaneously:

A. The asset expenditures have already incurred;

B. Borrowing costs have already been incurred;

C. The acquisition and construction or production activities which are necessary to prepare the assets for

their intended use or sale have been in progress.

(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) Cease of capitalization: When the acquired and constructed fixed assets reach the intended usable

state stop the capitalization of borrowing costs.The calculation method of capitalized amounts of borrowing costs:

A. 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;

B. 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 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.

17. Intangible assets

(1). Useful life and determination basis estimate amortization method orreview procedures

√Applicable □N/A

A. Valuation 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 feasible technically to finish intangible assets for use or sale.b. It is intended to finish and use or sell the intangible asset.c. The method that the intangible assets generate economic benefits including the existence of a market

for products produced by the intangible assets or for the intangible assets themselves;

d. There is sufficient support in technology financial resource and other resources to complete the

development of the intangible asset and it is able to use or sell the intangible asset;

e. The expenditures 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.

(2). Collection scope of research and development expenses and relevant accounting treatment

√Applicable □N/A

A. The scope of R&D expenses is mainly determined based on the Company's research and development

projects including labor costs for R&D personnel direct investment costs depreciation and long-term

106 / 175ANNUAL REPORT 2023

deferred expenses amortization of intangible assets design costs equipment debugging and testing costs

commissioned external research and development costs and other expenses.B. The Company's R&D expenses are distinguished between expenses in the research phase and expenses

in the development phase. Research refers to the creative and planned investigation conducted to acquire

and understand new scientific or technological knowledge. Development phase: Development refers to

the stage when the research achievements and other knowledge are applied to a plan or design prior to the

commercial production or use so as to produce any new or substantially improved material device or

product.C. The expenses during the research phase are recognized in the current period's profit and loss when

incurred; Expenses during the development phase that meet the following conditions are recognized as

intangible assets or recognized in the current period's profit and loss:

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. For the intangible assets is to be used internally the usefulness

itself of should be proved;

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.

18. Long-term deferred 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.

19. Employee compensation

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 compensation

√Applicable □N/A

Short-term compensation refers to 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

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

107 / 175ANNUAL REPORT 2023

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 dismissal benefits

√Applicable □N/A

As to providing employees dismissal benefits employee compensation incurred from dismissal benefits

should be recognized as liabilities and included in the current profit or loss on the date when the Company

is unable to unilaterally withdraw the dismissal benefits provided in the plan on the cancellation of labor

relationship or the layoff proposal or when the Company recognizes the cost or expenses related to

restructuring concerning payment of dismissal benefits (whichever is earlier).

(4) Accounting treatment of other long-term employee benefits

□Applicable √N/A

20. Revenue

(1) Accounting policies for revenue recognition and measurement disclosed by the business type

√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.The Company recognizes revenue when its performance obligations as stipulated in the contract are

fulfilled that is when the customer obtained control of the related goods. Acquiring the control over

relevant goods means being able to dominate the use of such goody and obtain almost all the economic

benefits therefrom. After the Company delivers the products to the customers according to the contract

the revenue will be recognized according to the net amount after deducting the consideration payable to

the customers. Before signing a contract with a customer and receiving an order but not delivering the

product to the customer the Company will recognize the contract consideration received from the

customer as a contract liability.

(2). Businesses with the same nature that adopt different operating approaches apply different

recognition and measurement methods of revenue.□Applicable √N/A

21. Government grants

√Applicable □N/A

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 or accounting treatment method for government grants related to assets

The government grants related to assets shall be used to offset the book value of relevant assets or

recognized as deferred income. If government grants relating to assets are recognized as deferred income

they shall be included in profit or loss by stages by a reasonable and systematic method within the useful

108 / 175ANNUAL REPORT 2023

lives of relevant assets. Government grants measured at nominal amount are directly included in the

current profit or loss. If relevant assets are sold transferred scrapped or damaged before the end of the

useful life the unallocated balance of relevant deferred income shall be transferred to the current profit or

loss.

(2) Judgment basis or accounting treatment method for government grants related to income

Government grants related to income should be dealt with in the following ways:

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 enterprises shall be included in other income or

used to offset related cost according to the essence of business. Government grants irrelevant to the routine

activities of the Company are included in the non-operating revenue and expenditure.

22. Deferred tax assets and Deferred tax liabilities

√Applicable □N/A

On the balance sheet date the amount of deferred tax assets and Deferred tax liabilities shall be calculated

at the applicable tax rate according to the deductible temporary differences and taxable temporary

differences of items of assets and liabilities.

23. Lease

√Applicable □N/A

As the lessee judgment basis and accounting treatment adopted for the simplified treatment for

short-term and low-value asset leases

√Applicable □N/A

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 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.

109 / 175ANNUAL REPORT 2023

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.As the lessor lease classification standard and accounting treatment

√Applicable □N/A

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.

24. Changes in significant accounting policies and accounting estimates

(1). Changes in significant accounting policies

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Items under great Amount

Amount

Content of and reason for changes in impact impacted

impacted

accounting policies (Parent

(Consolidation)

company)

Deferred tax

136021100.7790050281.43

The Ministry of Finance issued the assets

Interpretation No.16 of Accounting Standards Deferred tax

162628090.99116608070.57

for Business Enterprises on November 30 liabilities

2022 in which the content that the accounting Surplus reserves -2655778.91 -2655778.91

treatment of exempting the initial recognition Retained

-23975377.63-23902010.23

does not apply to the deferred income tax earnings

relevant to the assets and liabilities arising Non-controlling

24166.32-

from any individual transaction has been interests

implemented as of January 1 2023. Income tax

903191.13-3617534.82

expenses

Other note:

The Company has implemented such provision as of January 1 2023 and made the retroactive adjustment

to the amounts in the comparative statement and the cumulative amounts impacted by the taxable

temporary differences and deductible temporary differences arising from the lease liabilities and right-of-

use assets on the first implementation date. As for any individual transaction before January 1 2022 if

the temporary difference still exists between relevant assets and liabilities on January 1 2022 the

Company will recognize the deferred tax assets and deferred tax liabilities on January 1 2022 and adjust

the difference to the retained earnings on January 1 2022. The impact of such matter on the financial

statements on December 31 2022 and for the year ended December 31 2022 is shown in the table above.

110 / 175ANNUAL REPORT 2023

(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 2023

□Applicable √N/A

25. Others

□Applicable √N/A

VI. Taxation

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%、RMB 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

Notes to disclosure of enterprises with different enterprise income tax rates:

□Applicable √N/A

2. Tax preference

□Applicable √N/A

3. Others

□Applicable √N/A

VII. Notes to the items of the consolidated financial statements

1. Cash and cash equivalents

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of

Item

period the period

Cash on hand 162802.00 12740.70

Bank deposits 69069973574.12 58274305992.53

Other Cash and cash equivalents

Deposits in finance companies

Total 69070136376.12 58274318733.23

Including: Total amount deposited

27433842.0729007671.59

overseas

Cash and cash equivalents restricted for use

Amount at the end of the Amount at the beginning of

Item

period the period

111 / 175ANNUAL REPORT 2023

Amount in RMB Amount in RMB

Legal deposit reserve in the central 5991813679.87 6418765887.71

bank

2. Loans to banks and other financial institutions

Monetary Unit: Yuan Currency: RMB

Item Balance at the end of the period Balance at the beginning of the

period

Deposits with banks and other 103060963177.98 116176621670.01

financial institutions

Loans to banks and other 2508579166.67

financial institutions

Less: provision for impairment 15705882.07 3910115.42

Book value 105553836462.58 116172711554.59

Loans to banks and other financial institutions restricted for use

Balance at the end of the period Balance at the beginning of the

Item period

Amount in RMB Amount in RMB

Interbank deposit with 16000000000.00 14000000000.00

restrictions on withdrawal

3. Held-for-trading financial assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the Designation reason

Balance at the end of

Item beginning of the and basis

the period

period

Financial assets measured at 400712059.93 /

fair value through profit or

loss

Including:

investment in debt instrument 400712059.93 /

Financial assets designated to

be measured at fair value

through profit or loss

Total 400712059.93 /

4. Notes receivable

(1) Presentation of notes receivable by category

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the beginning of the

Item Balance at the end of the period

period

Bank acceptance bills 13933440.00 105453212.00

Total 13933440.00 105453212.00

(2) Pledged notes receivable of the Company as at December 31 2023

□Applicable √N/A

112 / 175ANNUAL REPORT 2023

(3) Notes receivable of the Company as at December 31 2023 that have been endorsed or discounted

but not matured on the balance sheet date

□Applicable √N/A

(4) Disclosure by category based on the method for provision for bad debts

□Applicable √N/A

(5) Provision for bad debts

□Applicable √N/A

(6) Notes receivable write-off in the current period

□Applicable √N/A

5. Accounts receivable

(1) Disclosure by aging

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Book balance as at the end of Book balance at the beginning

Aging

the period of the period

Within 1 year 60373410.41 20937144.00

Sub-total within 1 year 60373410.41 20937144.00

1 - 2 years

2 - 3 years

Over 3 years

3 - 4 years

4 - 5 years

Over 5 years 1808530.62 2681973.01

Total 62181941.03 23619117.01

(2) Disclosure by category based on the method for provision for bad debts

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the period Balance at the beginning of the period

Book balance Provision for bad debts Book balance Provision for bad debts

Type Proportio Book ProportioRati Rati Book

n of n of

Amount o Amount value Amount o Amount value

provision provision

(%)(%)

(%)(%)

Provision

for bad

debts

accrued

on an

individua

l basis

Bad debt

provision

62181941.01808530.660373410.423619117.02681973.020937144.0

assessed 100 2.91 100 11.36

321110

by

portfolio

Including:

Bad debt

provision

62181941.01808530.660373410.423619117.02681973.020937144.0

assessed 100 2.91 100 11.36

321110

by

portfolio

62181941.0/1808530.6/60373410.423619117.0/2681973.0/20937144.0

Total

321110

Bad debt provision assessed by portfolio:

√Applicable □N/A

113 / 175ANNUAL REPORT 2023

Items with provision by portfolio: aging analysis method

Monetary Unit: Yuan Currency:

RMB

Balance at the end of the period

Name Proportion of provision

Accounts receivable Provision for bad debts

(%)

Within 1 year 60373410.41

1 - 2 years

2 - 3 years

3 - 4 years

4 - 5 years

Over 5 years 1808530.62 1808530.62 100.00

Total 62181941.03 1808530.62 2.91

Description of provision for bad debts made by portfolio:

□Applicable √N/A

(3) Provision for bad debts

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Change in this period

Balance at the Balance at

Write-off

Type beginning of Recovery Other the end of

Provision or charge-

the period or reversal changes the period

off

Provision for

bad debts

accrued on 2681973.01 873442.39 1808530.62

the basis of

portfolio

Total 2681973.01 873442.39 1808530.62

Reversal or recovery of significant amount of provision for bad debts in the current period:

□Applicable √N/A

(4) Accounts receivable write off in 2023

□Applicable √N/A

(5) Top 5 of accounts receivable presented by debtor and contract assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Proportion

in the total

of balances

Ending Ending

Ending of accounts

balance balances of Ending balance

balance of receivable

Entity name of accounts of provision

accounts and contract

contract receivable and for bad debts

receivable assets at the

assets contract assets

end of the

period

（%）

Xunfeng Technology (Guizhou)

60373410.4160373410.4197.09

Co. Ltd.Tianjin Feimeng Industrial Co.

784900.00784900.001.26784900.00

Ltd.Shanghai International Wine

375776.00375776.000.61375776.00

Development Co. Ltd.

114 / 175ANNUAL REPORT 2023

Shenzhen Friendship Shopping

194200.00194200.000.31194200.00

Mall

Shenzhen Grain and Oil Import and

109504.86109504.860.18109504.86

Export Co. Ltd. Beijing Branch

Total 61837791.27 61837791.27 99.45 1464380.86

6. Prepayments

(1) Presentation of prepayments by aging

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the period Balance at the beginning of the period

Aging

Amount Ratio (%) Amount Ratio (%)

Within 1

25484238.3873.69684728825.9276.31

year

1 - 2 years 8118647.00 23.47 204055296.64 22.74

2 - 3 years 233459.62 0.68 401806.42 0.04

Over 3 years 748766.79 2.16 8191233.29 0.91

Total 34585111.79 100.00 897377162.27 100.00

(2) Top 5 of prepayments presented by supplier

√Applicable □N/A

Balance at the Proportion in the total

Entity name end of the ending balance of

period Prepayments (%)

China Kweichow Moutai Distillery (Group)

10495000.0030.34

Cultural Tourism Co. Ltd.People’s Government of Renhuai City 8000000.00 23.13

Sinopec Sales Co. Ltd. Guizhou Zunyi Petroleum

4090223.3411.83

Branch

Beijing Aimu Youxue Trade Co. Ltd. 2800733.29 8.10

Mars Wrigley Confectionery (China) Ltd. 1133423.99 3.28

Total 26519380.62 76.68

7. Other receivables

Presentation of items

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of the

Item

period period

Interest receivable

Dividends receivable

Other receivables 27502107.30 31818622.84

Total 27502107.30 31818622.84

Other receivables

(1) Disclosure by aging

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Book balance as at the end of Book balance at the beginning

Aging

the period of the period

115 / 175ANNUAL REPORT 2023

Within 1 year 11715649.28 27748377.88

Sub-total within 1 year 11715649.28 27748377.88

1 - 2 years 13852727.47 2154433.82

2 - 3 years 600382.00 25223.08

3 - 4 years 500.00 984867.43

4 - 5 years 593258.43 967917.47

Over 5 years 905012.22 37951.22

Total 27667529.40 31918770.90

(2) Classification by nature of payment

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Book balance as at the end of Book balance at the beginning

Nature of payment

the period of the period

Petty cash 6265395.91 11519390.69

Current payment 21402133.49 20399380.21

Total 27667529.40 31918770.90

(3) Provision for bad debts

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Stage I Stage II Stage III

Provision for bad 12-month Lifetime expected Lifetime expected

Total

debts expected credit loss (without credit loss (with

credit loss credit impairment) credit impairment)

Balance as at

5500.0294648.04100148.06

January 1 2023

Balance as at

January 1 2023

in the current

period

- Transfer to

-5500.025500.02

Stage II

- Transfer to

Stage III

- Reversal from

Stage II

- Reversal from

Stage I

Provision in the

8482.8668556.9677039.82

current period

Reversal in the 11300.00

465.7811765.78

current period

Charge-off in the

current period

Write-off in the

current period

Other changes

Balance as at 165422.10

December 31 8017.08 157405.02

2023

Notes to the obvious changes in the book balance of other receivables with changes in provision for losses

116 / 175ANNUAL REPORT 2023

in the current period:

□Applicable √N/A

(4) Provision for bad debts

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at Change in this period

the Write- Balance at

Type beginning Recovery off or Other the end of

Provision

of the or reversal charge- changes the period

period off

Provision for the 100148.06 77039.82 11765.78 165422.10

bad debts accrued

on the basis of aging

portfolio

Total 100148.06 77039.82 11765.78 165422.10

(5) Other receivables write off in the current period

□Applicable √N/A

Specifically significant other receivables to be written off:

□Applicable √N/A

Notes to write-off of other receivables:

□Applicable √N/A

(6) Top 5 of other receivables presented by debtor

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Provision

Proportion in

for bad

Balance at the the total ending

Nature of debts

Entity name end of the balance of Aging

payment Balance at

period other

the end of

receivables (%)

the period

China Railway

Current Within 1

22nd Bureau 2662173.76 9.62

payment year

Group Co. Ltd.Guizhou Airport

Passenger &

Current Within 1

Cargo 603459.00 2.18

payment year

Transportation

Sales Co. Ltd.Tianjin

Kaixuanmen Current

600000.00 2.17 1 - 2 years

Department Store payment

Co. Ltd.Luo Meng Within 1

596879.35 2.16 Petty cash

year

Jiangsu Jingsai

Current

Wine Industry Within 1

581370.00 2.10 payment

Development Co. year

Ltd.Total 5043882.11 18.23 / /

117 / 175ANNUAL REPORT 2023

A. Receivables of China Railway 22nd Bureau Group Co. Ltd. refer to the water and electricity charges

at Xinzhai and Dadi production areas paid by Heyixing Liquor Branch of Kweichow Moutai Co. Ltd.on the Company's behalf.B. Receibales of Guizhou Airport Passenger and Cargo Transportation Sales Co. Ltd. refer to the

prepayment for air tickets of Guizhou Laymau Liquor Industry Co. Ltd. a controlling subsidiary of the

Company.C. Receivables of Tianjin Kaixuanmen Department Store Co. Ltd. refer to the rent deposit paid by

Kweichow Moutai Sales Co. Ltd. a controlling subsidiary of the Company.D. Luo Meng is an employee of the Company and the loans are for litigation and market rights

protection.E. Receivables of Jiangsu Jingsai Wine Industry Development Co. Ltd. refer to the security deposit paid

by Beijing Friendship Messenger Trading Co. Ltd. a holding subsidiary of the Company.

8. Redemptory Monetary Capital for Sale

(1) By the type of counterparty

Monetary Unit: Yuan Currency: RMB

Item Balance at the end of the period Balance at the beginning of the

period

Bank

Other financial institutions 3504953059.15

Sub-total 3504953059.15

Less: provision for impairment 103174.10

Total 3504849885.05

(2) By the type of guaranty

Item Balance at the end of the period Balance at the beginning of the

period

Bond 3504953059.15

Notes

Sub-total 3504953059.15

Less: provision for impairment 103174.10

Total 3504849885.05

9. Inventories

(1) Classification of inventories

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the period Balance at the beginning of the period

Provision for Provision for

inventory inventory

depreciation depreciation

Item reserve/provision reserve/provision

Book balance Book value Book balance Book value

for impairment for impairment

of contract of contract

performance performance

costs costs

Raw materials 3364894351.00 3364894351.00 3917462473.00 3917462473.00

Goods in 1283984.83 1283984.83

22150516271.9822149232287.1517311447077.8317310163093.00

progress

Commodity

2213035622.062213035622.061814110748.171814110748.17

stocks

Self-

manufactured

18708022801.3218708022801.3215782637922.0715782637922.07

semi-finished

products

Total 46436469046.36 1283984.83 46435185061.53 38825658221.07 1283984.83 38824374236.24

118 / 175ANNUAL REPORT 2023

(2) Provision for inventory depreciation and provision for impairment of contract performance costs

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Increase in the Decrease in the

Balance at the current period current period Balance at the

Item beginning of the Reversal end of the

Other Other

period Provision or write- period

s s

off

Goods in progress 1283984.83 1283984.83

Total 1283984.83 1283984.83

10. Non-current assets maturing within one year

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of

Item

period the period

Other non-current assets maturing 2123601333.33

within one year

Total 2123601333.33

11. Other current assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of

Item

period the period

Value-added tax not deducted at

40142035.75159246337.97

the end of the period

Prepaid income tax 31261870.82 1597336.45

Total 71403906.57 160843674.42

12. Loans and payments

Monetary Unit: Yuan Currency: RMB

Item Amount at the end of the period Amount at the beginning of the

period

Loans and payments 2130818189.27 4134744407.92

Item Amount at the end of the period Amount at the beginning of the

period

Total loans and advances to 2187006375.03 4240663874.72

customers

Less: Provision for impairment 56188185.76 105919466.80

of loans

Book value of loans and 2130818189.27 4134744407.92

advances to customers

13. Debt investment

(1) Information on Debt investment

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

119 / 175ANNUAL REPORT 2023

Balance at the end of the period Balance at the beginning of the period

Item Provision Provision

Book balance for Book value Book balance for Book value

impairment impairment

Ministry of Finance of the People's

510466944.94510466944.94

Republic of China (National debt)

Bank of Guiyang Co. Ltd. 3213667940.23 657943.12 3213009997.11 60323095.93 34290.00 60288805.93

Bank of Guizhou Co. Ltd. 506302054.81 103656.62 506198398.19 300425342.45 170550.00 300254792.45

Agricultural Bank of China Limited 102003836.17 20883.53 101982952.64

China Minsheng Banking Corp. Ltd.

991546780.25203002.11991343778.14

Guiyang Branch

Guiyang GY Financial Leasing Co.

20153150.7111430.0020141720.71

Ltd.Total 5323987556.40 985485.38 5323002071.02 380901589.09 216270.00 380685319.09

Changes in the provision for impairment of debt investment in the current period

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at

the Decrease in Balance at

Increase in

Item beginning current the end of

current period

of the period the period

period

Bank of Guiyang Co. Ltd. 34290.00 623653.12 657943.12

Bank of Guizhou Co. Ltd. 170550.00 66893.38 103656.62

Guiyang GY Financial Leasing Co.

11430.0011430.00

Ltd.Agricultural Bank of China Limited 20883.53 20883.53

China Minsheng Banking Corp. Ltd.

203002.11203002.11

Guiyang Branch

Total 216270.00 847538.76 78323.38 985485.38

(2) Important Debt investment at the end of the period

□Applicable √N/A

(3) Provision for impairment

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Stage I Stage II Stage III

Provision for 12-month Lifetime expected Lifetime expected

Total

impairment expected credit credit loss (without credit loss (with

loss credit impairment) credit impairment)

Balance as at

216270.00216270.00

January 1 2023

Balance as at

January 1 2023

in the current

period

- Transfer to

Stage II

- Transfer to

Stage III

- Reversal from

Stage II

- Reversal from

Stage I

Provision in the

847538.76847538.76

current period

Reversal in the

78323.3878323.38

current period

120 / 175ANNUAL REPORT 2023

Charge-off in the

current period

Write-off in the

current period

Other changes

Balance as at 985485.38 985485.38

December 31

2023

Notes to the obvious changes in the book balance of Debt investment with changes in provision for losses

in the current period:

□Applicable √N/A

14. Other non-current financial assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of

Item

period the period

Financial assets measured at fair value

4002439902.57

through profit or loss

Including: other equity instrument

4002439902.57

investments

Total 4002439902.57

Other notes:

√Applicable □N/A

Details:

Item Balance at the end of Balance at the

the period beginning of the

period

Moutai Zhaohua (Guizhou) Industrial Development 2001383129.22

Fund Partnership (Limited Partnership)

Moutai Jinshi (Guizhou) Industrial Development Fund 2001056773.35

Partnership (Limited Partnership)

Total 4002439902.57

15. Investment property

Measurement method of investment properties

(1) Investment properties measured at cost

Monetary Unit: Yuan Currency: RMB

Buildings and Construction in

Item Land use right Total

constructions progress

I. Original book value

1. Balance at the

6486158.396486158.39

beginning of the period

2. Increase in the current

9722908.429722908.42

period

(1) Outsourcing

(2) Transfer of inventory 9722908.42 9722908.42

fixed assets and construction

in progress

(3) Increase in business

combination

121 / 175ANNUAL REPORT 2023

3. Decrease in the current

6486158.396486158.39

period

(1) Disposal 5654373.87 5654373.87

(2) Other transfer-out 831784.52 831784.52

4. Balance at the end of 9722908.42 9722908.42

the period

II. Accumulated depreciation and accumulated amortization

1. Balance at the

1151111.401151111.40

beginning of the period

2. Increase in the current

5795934.165795934.16

period

(1) Provision or

570030.76570030.76

amortization

(2) Transfer of inventory 5225903.40

fixed assets and construction 5225903.40

in progress

3. Decrease in the

1362682.471362682.47

current period

(1) Disposal 1215300.57 1215300.57

(2) Other transfer-out 147381.90 147381.90

4. Balance at the end of 5584363.09 5584363.09

the period

III. Provision for impairment

1. Balance at the

beginning of the period

2. Increase in the current

period

(1) Provision

3. Decrease in the

current period

(1) Disposal

(2) Other transfer-out

4. Balance at the end of

the period

IV. Book value

1. Book value at the end

4138545.334138545.33

of the period

2. Book value at the

5335046.995335046.99

beginning of the period

(2) Investment properties with pending certificate of title

□Applicable √N/A

(3) Impairment test on investment properties measured at cost

□Applicable √N/A

16. Fixed assets

Presentation of items

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of

Item

period the period

Fixed assets 19909280655.97 19742622547.86

122 / 175ANNUAL REPORT 2023

Disposal of fixed assets

Total 19909280655.97 19742622547.86

Fixed assets

(1) Fixed assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Buildings and Transportation Electronic equipment

Item Machinery equipment Total

constructions facilities and others

I. Original book value:

1. Balance at

the beginning of 27590962317.46 2443079166.06 384643338.97 898653619.30 31317338441.79

the period

2. Increase in

1508749513.35150949940.5555003468.57155749548.891870452471.36

the current period

(1)

12705636.655375039.3943983653.2779850866.70141915196.01

Purchase

(2)

Transferred from

1491410284.09145574901.1611019815.3075896410.011723901410.56

construction in

progress

(3) Increase

in business

combination

(4) Translation of

foreign currency 3801808.09 2272.18 3804080.27

statements

(5) Transferred

from investment 831784.52 831784.52

properties

3. Decrease in

79073214.3615757596.044190028.2937654047.44136674886.13

the current period

(1) Disposal

59311698.2215757596.044190028.2937654047.44116913369.99

or scrapping

(2) Translation of

foreign currency

statements

(3)

Transferred to

investment

19761516.1419761516.14

properties/

construction in

progress

4. Balance at

the end of the 29020638616.45 2578271510.57 435456779.25 1016749120.75 33051116027.02

period

II. Accumulated depreciation

1. Balance at

the beginning of 9134918120.82 1504770035.40 233468705.45 700491815.46 11573648677.13

the period

2. Increase in

1366997777.14166683280.6044315763.3673951522.631651948343.73

the current period

(1)

1365909652.72166683280.6044315763.3673950264.761650858961.44

Provision

(2)

Translation of

940742.521257.87942000.39

foreign currency

statements

(5)

Transferred from

147381.90147381.90

investment

properties

3. Decrease in

32208545.7212574674.263948968.9036096677.7384828866.61

the current period

(1) Disposal

26068710.6412574674.263948968.9036096677.7378689031.53

or scrapping

(2)

Translation of

foreign currency

statements

(3)

Transferred to

investment

6139835.086139835.08

properties/

construction in

progress

4. Balance at

the end of the 10469707352.24 1658878641.74 273835499.91 738346660.36 13140768154.25

period

III. Provision for impairment

123 / 175ANNUAL REPORT 2023

1. Balance at

the beginning of 1060865.02 6351.78 1067216.80

the period

2. Increase in

the current period

(1)

Provision

(2)

Translation of

foreign currency

statements

3. Decrease in

the current period

(1) Disposal

or scrapping

(2)

Translation of

foreign currency

statements

4. Balance at

the end of the 1060865.02 - 6351.78 1067216.80

period

IV. Book value

1. Book value

at the end of the 18550931264.21 918332003.81 161621279.34 278396108.61 19909280655.97

period

2. Book value

at the beginning of 18456044196.64 937248265.64 151174633.52 198155452.06 19742622547.86

the period

(2). Fixed assets leased under operating lease

□Applicable √N/A

(3). Fixed assets with pending certificates of title

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Reason for pending certificates

Item Book value

of title

Newly added Technical transformation

project of 2500 tons of Moutai liquor in the

second phase of the 10000-ton Moutai 558732546.81 It is being processed.liquor Project during the "Twelfth Five-Year Plan” (2012)

2000-ton Moutai Prince liquor-making

technical transformation project and 347096637.47 It is being processed.supporting facilities project in 2011

Newly added 2800-ton Moutai Prince

liquor-making technical transformation 217303556.07 It is being processed.project and supporting facilities in 2012

Moutai Huanshan Liquor Storage Area

473176627.15 It is being processed.

Project

Technical transformation project and

supporting facilities for the Making of 1013808067.72 It is being processed.Moutai-flavor Series Liquor

17. Construction in progress

Presentation of items

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

124 / 175ANNUAL REPORT 2023

Balance at the end of the Balance at the beginning of the

Item

period period

Construction in progress 2137464700.45 2208329892.95

Project materials

Total 2137464700.45 2208329892.95

Construction in progress

(1) Construction in progress

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the period Balance at the beginning of the period

Provision Provision

Item

Book balance for Book value Book balance for Book value

impairment impairment

Construction in 2137464700.45 2137464700.45 2208329892.95 2208329892.95

progress

Total 2137464700.45 2137464700.45 2208329892.95 2208329892.95

(2). Changes in important construction in progress in the current period

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Capi

taliz

Includin

ation

g:

Accumu rate

capitaliz

Proportion of lated of

Amount Other Progress ation Sour

accumulative capitaliz inter

Beginning Increase in the transferred into decreases in Ending of amount ce of

Item Budget amount project ation est

Balance current period fixed assets in the current Balance construc of fund

investments in amount in

current period period tion interest s

budget (%) of curre

in the

interest nt

current

perio

period

d

(%)

Technical Self-

transformation raise

project of Moutai d

liquor and its

3559000000.2501307824472654

supporting 29851773.33 35256011.55 85 100%

002.964.74

facilities in

Zhonghua Area

during the 13th

Five-Year Plan

Technical Self-

transformation raise

project of 30000- d

8384000000.1366003110723270

ton Moutai-flavor 591561177.01 885237350.65 65 90%

0084.1210.48

series wine and its

supporting

facilities

Phase I Project of Self-

Packaging 7833000000. 3716801.9 74645824. raise

70929022.56510%

Logistics Park 00 2 48 d

Project

First Phase Self-

Construction raise

Project of the d

4110000000.3603511.825265624

"14th Five-Year 249052730.65 21 30%

0022.47

Plan" Moutai-

flavor Liquor

Xishui Tongminba

Technical Self-

transformation and raise

construction d

155160000008085819.5

project of Moutai 805658.85 7280160.70 8 19%.005

Liquor during the

14th Five-Year

Plan period

Construction of 30 Self-

blocks of wine 1587000000. 15116429 raise

151164296.131241%

storehouses in 00 6.13 d

Zhonghua Area

Technical Self-

transformation raise

project and d

supporting

3454160000.

facilities project 60 100%

00

for the Making of

Moutai-flavor

Series Liquor

(6400 tons)

44443160000162425991099839160.18036057//

Total 920493362.20 / /.0039.673837.85

125 / 175ANNUAL REPORT 2023

18. Right-of-use assets

(1) Details of right-of-use assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Buildings and

Item Machinery equipment Total

constructions

I. Original book value

1. Balance at the beginning

514662162.669525145.70524187308.36

of the period

2. Increase in the current 38133874.04

38133874.04

period

(1) Lease-in 38133874.04 38133874.04

3. Decrease in the 125458409.35 125458409.35

current period

(1) Disposal 125458409.35 125458409.35

4. Balance at the end of 427337627.35 9525145.70 436862773.05

the period

II. Accumulated depreciation

1. Balance at the

117825716.603810058.30121635774.90

beginning of the period

2. Increase in the current

70538810.051905029.1672443839.21

period

(1) Provision 70538810.05 1905029.16 72443839.21

3. Decrease in the 71422325.62 71422325.62

current period

(1) Disposal 71422325.62 71422325.62

4. Balance at the end of 122657288.49

116942201.035715087.46

the period

III. Provision for impairment

1. Balance at the

beginning of the period

2. Increase in the current

period

(1) Provision

3. Decrease in the

current period

(1) Disposal

4. Balance at the end of

the period

IV. Book value

1. Book value at the end of

310395426.323810058.24314205484.56

the period

2. Book value at the

396836446.065715087.40402551533.46

beginning of the period

19 Intangible assets

(1) Details of intangible assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Software

Item Land use right Total

development

I. Original book value

126 / 175ANNUAL REPORT 2023

1. Balance at the beginning

8001712205.4056730121.328058442326.72

of the period

2. Increase in the

1530747028.00154999926.121685746954.12

current period

(1) Purchase 1530747028.00 38929039.09 1569676067.09

(2) Internal research 116070887.03 116070887.03

and development

(3) Increase in

business combination

3. Decrease in the current

period

(1) Disposal

4. Balance at the end of the

9532459233.40211730047.449744189280.84

period

II. Accumulated amortization

1. Balance at the

931455433.1243809667.15975265100.27

beginning of the period

2. Increase in the

185724451.6910932415.04196656866.73

current period

(1) Provision 185724451.69 10932415.04 196656866.73

3. Decrease in the

current period

(1) Disposal

4. Balance at the end

1117179884.8154742082.191171921967.00

of the period

III. Provision for impairment

1. Balance at the

beginning of the period

2. Increase in the

current period

(1) Provision

3. Decrease in the

current period

(1) Disposal

4. Balance at the end

of the period

IV. Book value

1. Book value at the end of

8415279348.59156987965.258572267313.84

the period

2. Book value at the

7070256772.2812920454.177083177226.45

beginning of the period

(2) Land use right with pending certificates of title

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Reason for pending

Item Book value

certificates of title

Moutai Huanshan Liquor Storage Area Project 144000000.00 It is being processed

Phase I and Phase II Moutai liquor technical transformation project

2141855569.18 It is being processed

in Zhonghua Area

Newly added Technical transformation project of 2500 tons of

Moutai liquor in the second phase of the 10000-ton Moutai liquor 330000000.00 It is being processedProject during the "Twelfth Five-Year Plan” (2012)

127 / 175ANNUAL REPORT 2023

First batch of construction projects at Tanchang Area in Recycling

428000000.00 It is being processed

Economy Science and Technology Demonstration Park

Technical transformation project and supporting facilities for the

352681578.55 It is being processed

Making of Moutai-flavor Series Liquor

Technical transformation project for 2000 tons of Moutai Prince

Liquor and technical transformation project for 2800 tons of 30000000.00 It is being processed

Moutai Prince Liquor

Technical transformation project of Moutai liquor and its

supporting facilities in Zhonghua Area during the 13th Five-Year 215259100.00 It is being processed

Plan

Technical transformation project of 30000-ton Moutai-flavor Construction in

998256302.95

series wine and its supporting facilities progress

20. Development expenses

Monetary Unit: Yuan Currency: RMB

Increase in the current

Decrease in the current period

period

Balance at the Transferre

Balance at the

Item beginning of the d in

Internal R&D Other Recognized as end of the period

period current

expenses s intangible assets

profit or

loss

Project

research

190536632.6143549809.9116070887.0218015555.4

and

0239

developmen

t

190536632.6143549809.9116070887.0218015555.4

Total

0239

21. Long-term deferred expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the Amortization in

Increase in the Other Balance at the

Item beginning of the the current

current period decreases end of the period

period period

Reconstruction project

of road from central 127500000.29 9999999.96 117500000.33

city to Moutai

Overhaul expenses of

14592803.0022610187.145526598.9531676391.19

fixed assets

Renovation of office

4362543.617880004.961360009.9510882538.62

building

Total 146455346.90 30490192.10 16886608.86 160058930.14

Remark: the reconstruction project of road from central city to Moutai is based on the resolution made at

the third meeting of the second Board of Directors in 2013. The Company and Renhuai Urban

Development and Construction Investment Management Co. Ltd. jointly completed the road

reconstruction project from the central city to Moutai and transferred the project for amortization.

22. Deferred tax assets / Deferred tax liabilities

(1) Deferred tax assets without offset

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the period Balance at the beginning of the period

Item Deferred income Deductible temporary Deductible temporary Deferred income tax

tax

differences differences assets

assets

128 / 175ANNUAL REPORT 2023

Provision for

asset 30956286.95 7739071.75 71744171.40 17936042.85

impairment

Unrealized

profits of

14956404209.033739101052.2610912264732.272728066183.07

internal

transactions

Achievements-

related wages

that shall be 214872045.38 53718011.35 214872045.38 53718011.35

distributed but

not distributed

Others 3381317159.02 845329289.74 3180928926.43 795232231.61

Total 18583549700.38 4645887425.10 14379809875.48 3594952468.88

(2) Deferred tax liabilities without offset

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the beginning of the

Balance at the end of the period

period

Item Taxable Deferred Taxable Deferred income

temporary income tax temporary tax

differences Liabilities differences Liabilities

Others 315772248.74 78943062.19 650512363.93 162628090.99

Total 315772248.74 78943062.19 650512363.93 162628090.99

(3) Deferred tax assets or liabilities presented by net amount after offset

□Applicable √N/A

(4) Details of unrecognized deferred tax assets

□Applicable √N/A

(5) Deductible losses of unrecognized deferred tax assets will be expired in the following years

□Applicable √N/A

23. Other non-current assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the period Balance at the beginning of the

period

Item Book balance Provision Book Provision

Book

for Book value balance for

value

impairment impairment

Investment in 68604129.75 68604129.75

information-

based

construction

Others 40959367.48 40959367.48

Total 109563497.23 109563497.23

24. Assets with restrictions on the ownership or use right

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

129 / 175ANNUAL REPORT 2023

Ending Beginning

Book balance Book value Type of Restrictio Book balance Book value Type of Restrictio

Item

restrictio n restrictio n

n n

Cash and Others Others

cash 5991813679.8 5991813679.8 6418765887.7 6418765887.7

equivalen 7 7 1 1

ts

Loans to Others Others

banks and

other 16000000000. 16000000000. 14000000000. 14000000000.financial 00 00 00 00

institution

s

Total 21991813679. 21991813679. / / 20418765887. 20418765887. / /

87877171

25. Accounts payable

(1) Presentation of accounts payable

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Balance at the end of the Balance at the beginning of the

period period

Payables for goods 3093091103.67 2408371053.69

Total 3093091103.67 2408371053.69

26. Contract liabilities

(1) Details of contract liabilities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Balance at the beginning of the

Balance at the end of the period

period

Advances from customers for

14125755802.2915471920924.98

goods

Total 14125755802.29 15471920924.98

(2) Significant contract liabilities with aging of more than 1 year

□Applicable √N/A

(3) Amounts with and reasons for significant changes in book values during the reporting period

□Applicable √N/A

27. Absorption of deposits and interbank deposits

Monetary Unit: Yuan Currency: RMB

Item Amount at the end of the period Amount at the beginning of the

period

Absorption of deposits 12034492909.95 12874043355.42

Total 12034492909.95 12874043355.42

28. Employee compensation payable

(1) Presentation of employee compensation payable

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

130 / 175ANNUAL REPORT 2023

Balance at the

Increase in current Decrease in current Balance at the end of

Item beginning of the

period period the period

period

I. Short-term compensation 4779361358.86 12860471170.25 12240749239.20 5399083289.91

II. Post-departure benefits - defined

2874310.911865864052.331865900439.382837923.86

contribution plans

III. Dismissal welfare 75572.64 27658007.53 27733580.17

IV. Other benefits due within one year

Total 4782311242.41 14753993230.11 14134383258.75 5401921213.77

(2) Presentation of short-term compensation

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the

Increase in current Decrease in current Balance at the end of

Item beginning of the

period period the period

period

I. Wages bonus allowances and

4684139634.8610017696441.869416093573.405285742503.32

subsidies

II. Employee welfare expenses 1383779.27 727508797.04 727600621.28 1291955.03

III. Social insurance premiums 50294294.97 1045581463.19 1030797147.64 65078610.52

Including: medical insurance premium 50292546.01 985396665.14 970616022.64 65073188.51

Work-related injury insurance

1748.9660184798.0560181125.005422.01

premium

IV. Housing provident funds 813883498.44 813878555.64 4942.80

V. Labor union expenditure and

40495555.66229830619.53223460899.9046865275.29

employee education expenses

VI. Short-term compensated absences

VII. Short-term profit sharing plan

Others 3048094.10 25970350.19 28918441.34 100002.95

Total 4779361358.86 12860471170.25 12240749239.20 5399083289.91

(3) Presentation of defined contribution plans

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the

Increase in current Decrease in current Balance at the end of

Item beginning of the

period period the period

period

1. Basic endowment insurance

76691.161091394100.231091239089.30231702.09

premiums

2. Unemployment insurance

2330.7347667888.7547662682.717536.77

premiums

3. Enterprise annuity payment 2795289.02 726802063.35 726998667.37 2598685.00

Total 2874310.91 1865864052.33 1865900439.38 2837923.86

29. Taxes and surcharges payable

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the beginning of the

Item Balance at the end of the period

period

Value-added tax 1881581299.52 2034610620.24

Consumption tax 1874912035.57 1570075010.07

Enterprise income tax 2638540568.21 2769448025.03

Individual income tax 66986409.63 69096434.63

Urban maintenance and

274746590.57258837607.08

construction tax

Educational surtax 106206290.71 99389745.34

Local education surtax 72099890.91 67552876.94

Stamp duty 33237230.00 25330539.79

House property tax 1097614.29 809379.99

Land use tax 10856.32 11682.07

Environmental protection tax 15276.52 22267.77

Others 229831.62 1371234.88

131 / 175ANNUAL REPORT 2023

Total 6949663893.87 6896555423.83

30. Other payables

(1) Presentation of items

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of

Item

period the period

Interest payable

Dividends payable

Other payables 5213133685.87 4543842833.87

Total 5213133685.87 4543842833.87

(2) Other payables

Presentation of other payables by nature

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Balance at the end of the Balance at the beginning of the

period period

Materials quality guarantee

262341068.61318075043.18

deposit

Engineering quality guarantee

179215172.34173047548.78

deposit

Security deposits of dealers 2147103416.18 1897194013.05

Current payment 2624474028.74 2155526228.86

Total 5213133685.87 4543842833.87

Other significant payables aging over 1 year or overdue

□Applicable √N/A

31. Non-current liabilities maturing within one year

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Balance at the end of the period Balance at the beginning of the

period

Lease liabilities maturing

57054879.48109351155.28

within one year

Total 57054879.48 109351155.28

32. Other current liabilities

Details of other current liabilities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the period Balance at the beginning of the

Item period

Output tax to be carried

1822498012.301979272808.90

forward

Total 1822498012.30 1979272808.90

132 / 175ANNUAL REPORT 2023

33. Lease liabilities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of the

Item

period period

Long-term lease liabilities 266636234.04 334447942.79

Total 266636234.04 334447942.79

34. Share capital

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Changes (+ -)

Balance at the Provident

Issue Balance at the

beginning of the Share funds Sub-

of new Others end of the period

period donation Share total

shares

conversion

Total 1256197800.00 1256197800.00

shares

35. Capital reserves

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the

Increase in Decrease in Balance at the

Item beginning of the

current period current period end of the period

period

Capital

premium (share 1374048653.54 1374048653.54

premium)

Other capital

915762.18915762.18

reserves

Total 1374964415.72 1374964415.72

36. Other comprehensive income

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Amount in the current period

Less: amount Less: amount

previously previously

included in included in

Amount Attributable

Beginning other other Less: Attributable

Item before to non-

Ending

Balance comprehensive comprehensive income to parent income tax controlling Balance

income and income and tax company

in the current shareholders

currently currently expenses after tax

period after tax

transferred to transferred to

the profit or the retained

loss earnings

I. Other

comprehensive income

that cannot be

reclassified into profit

or loss

Including: changes in

re-measurement of the

defined benefit plan

Other comprehensive

income that cannot be

transferred into profit

or loss under equity

method

133 / 175ANNUAL REPORT 2023

Changes in fair

value of other equity

instruments

Changes in the fair

value of the

Company's own credit

risk

II. Other

comprehensive income

-10776907.334715179.824715179.82-6061727.51

that will be reclassified

into profit or loss

Including: other

comprehensive income

that can be transferred

to profit or loss under

the equity method

Changes in fair

value of other Debt

investments

Amount of financial

assets reclassified into

other comprehensive

income

Provision for credit

impairment of other

Debt investments

Cash flow hedge

reserve

Translation differences

of foreign currency -10776907.33 4715179.82 4715179.82 -6061727.51

financial statements

Total of other

-10776907.334715179.824715179.82-6061727.51

comprehensive income

37. Surplus reserves

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Balance at the Increase in current Decrease in Balance at the end of

beginning of the period period current period the period

Statutory 38998763095.13

surplus 32520123399.97 6478639695.16

reserves

Discretionary

surplus

reserves

Reserve funds

Enterprise

expansion

funds

Others

Total 32520123399.97 6478639695.16 38998763095.13

38. General risk reserves

Monetary Unit: Yuan Currency: RMB

Item Amount at the Increase in Decrease in Amount at the end

beginning of the current period current period of the period

period

General risk 1061529724.00 1061529724.00

reserves

Total 1061529724.00 1061529724.00

Remark: General risk reserves are accrued by Kweichow Moutai Group Finance Co. Ltd. a holding

subsidiary of the Company in accordance with the Administrative Measures for the Withdrawal of

Reserves by Financial Enterprises (CJ [2012] No.20) issued by the Ministry of Finance.

39. Retained earnings

√Applicable □N/A

134 / 175ANNUAL REPORT 2023

Monetary Unit: Yuan Currency: RMB

Item Current period Previous period

Retained earnings at the end of the

161301978184.73160716861920.19

previous period before adjustment

Adjustment to total retained earning

at the beginning of the period (+ for -23975377.63 -24637756.00

increase and - for decrease)

Retained earnings as at the beginning

161278002807.10160692224164.19

of the period after adjustment

Plus: net profit attributable to owners

of the parent company in the current 74734071550.75 62717467870.12

period

Less: withdrawal of statutory surplus

6478639695.167380308114.20

reserves

Withdrawal of discretionary

surplus reserves

Withdrawal of general risk

reserves

Common stock dividends

56550256362.6054751381113.01

payable

Common stock dividends

transferred to share capital

Retained earnings at the end of the

172983178300.09161278002807.10

period

Details of adjustment to the beginning balance of retained earnings:

Due to the retroactive adjustment made according to the Accounting Standards for Business Enterprises

and relevant new provisions the affected beginning balance of retained earnings amount to RMB -

23975377.63.

40. Operating revenue and operating costs

(1) Operating revenue and operating costs

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Amount in the current period Amount in the prior period

Item

Income Cost Income Cost

Primary

147218996281.0411620203653.32123772332348.719896113336.80

business

Other

474608713.10247070198.46327511423.28197355279.83

business

Total 147693604994.14 11867273851.78 124099843771.99 10093468616.63

Remark: Other business revenue and costs are mainly the revenue and costs of hotel business and ice

cream business.

135 / 175ANNUAL REPORT 2023

(2) Breakdown of operating revenue and operating costs

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Total

Contract classification

Operating revenue Operating costs

By product:

Moutai 126589066691.89 7445470669.11

Other series liquor 20629929589.15 4174732984.21

Other business 474608713.10 247070198.46

By regional segment:

Domestic 143333311961.67 11527282749.76

Overseas 4360293032.47 339991102.02

By sales channel:

Wholesale agency 80336795633.78 8699117400.66

Direct selling 67356809360.36 3168156451.12

Total 147693604994.14 11867273851.78

(3) Description of performance obligations

√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.

(4) Notes to allocation to remaining performance obligations

√Applicable □N/A

At the end of the reporting period the revenue corresponding to the performance obligations under signed

contracts that have not fulfilled or not completed yet amounted to RMB 14125755802.29 in which:RMB

14125755802.29 will be expected to be recognized in 2024 as revenue.

(5) Significant contract change or price adjustment of major transaction

□Applicable √N/A

41. Interest income interest expenses handling charges and commission revenue and expenses on

handling charges and commission

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Interest income 2866725322.31 3454115583.98

Revenue from handling charges

and commissions

Interest expenses 113500129.93 105584206.24

Handling charge and

68578.57143141.51

commission expenses

42. Taxes and surtaxes

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Consumption tax 17625306476.94 14628644881.34

Urban maintenance and

2467887318.972055705281.43

construction tax

Educational surtax 1057591004.14 880939077.72

Local education surtax 705060669.63 587292717.26

House property tax 181676451.33 170186626.63

136 / 175ANNUAL REPORT 2023

Land use tax 52832783.40 47733684.72

Vehicle and vessel use tax 444846.26 420334.81

Stamp duty 140645106.42 121037737.02

Tax for environmental

211744.75212923.35

protection

Others 2519496.76 3645269.94

Total 22234175898.60 18495818534.22

43. Selling and distribution expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Expenses for advertising publicity

3640663233.922887804740.39

and market expansion

Transportation expenses and

17040929.9514658723.67

transportation insurance premiums

Travel expenses for marketing and

86810053.1569828805.38

office expenses

Others 904099368.80 325431921.50

Total 4648613585.82 3297724190.94

44. General and administrative expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current Amount in the prior

period period

Expenses for employee compensation 4350082411.58 4348853737.71

Trademark licensing fee 1805818609.89 1639842153.56

Depreciation fee of fixed assets 612246297.65 495038952.17

Environmental remediation expenses 234607957.43 191513496.34

Company expenses 178180760.41 177404050.78

Amortization of intangible assets 196656866.73 156016278.90

Property insurance 62309546.95 51390201.61

Cost of raw material base 190898203.62 144152150.24

House rental fees 20301085.12 24919167.73

Entertainment expenses 9045359.07 13625245.10

Intermediary fees 113426391.89 37289937.20

Land use rent 2690532.60 2690532.60

Expenses of the Board of Directors 12473560.59 4278509.19

Others 1940651668.78 1725176660.50

Total 9729389252.31 9012191073.63

45. Research and development expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current Amount in the prior

period period

Expenses for employee compensation 73934535.18 66492415.10

Consumables 5544817.57 7893622.73

Expenses for research and development

45969566.9633128020.95

cooperation

Depreciation fee of fixed assets 18212579.23 21067522.53

Company expenses 1741589.48 984742.75

Others 11968784.59 5619356.34

137 / 175ANNUAL REPORT 2023

Total 157371873.01 135185680.40

46. Financial expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current Amount in the prior

period period

Interest expenses 12624628.35 12023204.77

Including: lease liabilities 12624628.35 12023204.77

Interest income -1942301920.98 -1475422303.64

Others 140173591.15 71593272.15

Total -1789503701.48 -1391805826.72

47. Other income

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Classification by nature of

Amount in the current period Amount in the prior period

payment

Return of handling charges for

withholding individual income 16791097.40 9422570.66

tax

Income-related government

17137523.8913646004.55

grants

Asset-related government

grants

Others 716252.57 1436778.62

Total 34644873.86 24505353.83

48. Investment income

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Amount in the current

Item Amount in the prior period

period

Investment income from disposal of 29947301.15

Held-for-trading financial assets

Investment income obtained from

disposal of other equity instruments

Investment income from the disposal of

Debt investment

Investment income from the disposal of

other Debt investment

Income from debt restructuring

Investment returns of industrial funds

during their holding period

Income from long-term equity

investments under the cost method

Interest income from certificates of

4078666.6763840000.00

deposits during the holding period

Total 34025967.82 63840000.00

49. Income from changes in fair value

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

138 / 175ANNUAL REPORT 2023

Sources of income from changes in

Amount in the current period Amount in the prior period

fair value

Held-for-trading financial assets 3151962.50

Including: income from changes in

fair value of derivative financial

instruments

Financial liabilities held for trading

Investment properties measured at

fair value

Total 3151962.50

50. Losses from credit impairment

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Amount in the current

Item Amount in the prior period

period

Losses from bad debts of notes

receivable

Losses from bad debts of accounts

873442.39415705.24

receivable

Losses from bad debts of other

-65274.042502655.82

receivables

Losses from impairment of Debt

-769215.38-119880.00

investment

Impairment losses from other Debt

investment

Losses from bad debts of long-term

receivables

Impairment on financial guarantee

Others 37832340.29 -17485027.31

Total 37871293.26 -14686546.25

Remark: others refer to the provision for impairment made for the loans issued by Kweichow Moutai

Group Finance Co. Ltd. a controlling shareholder of the Company.

51. Gains from disposal of assets

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Gains or losses from disposal of

2574728.71-129948.22

fixed assets

Gains or losses from disposal of

-3054465.68343183.91

right-of-use assets

Total -479736.97 213235.69

52. Non-operating revenue

Non-operating revenue

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Amount included in

Amount in the current Amount in the prior non-recurring profit or

Item

period period loss in the current

period

139 / 175ANNUAL REPORT 2023

Total gains from

disposal of non- 8829933.38 282981.41 8829933.38

current assets

Including: gains from

disposal of fixed 8829933.38 282981.41 8829933.38

assets

Gains from disposal

of intangible assets

Gains from exchange

of non-monetary

assets

Donations received

Government grants

Gains from fines and

62293021.8965421527.1562293021.89

compensation

Others 15656700.68 5147776.84 15656700.68

Total 86779655.95 70852285.40 86779655.95

53. Non-operating expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Amount included in

Amount in the current Amount in the prior non-recurring profit or

Item

period period loss in the current

period

Total losses from

disposal of non- 7197680.24 21063974.29 7197680.24

current assets

Including: losses

from disposal of 7197680.24 21063974.29 7197680.24

fixed assets

Losses from

disposal of

intangible assets

Losses from

exchange of non-

monetary assets

Donations made 119247336.70 225431100.98 119247336.70

Others 6436157.58 2389244.34 6436157.58

Total 132881174.52 248884319.61 132881174.52

54. Income tax expenses

(1) Table of income tax expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Current income tax expenses 27275697397.04 23548077905.70

Deferred income tax expenses -1134619985.03 -1222628115.40

Total 26141077412.01 22325449790.30

(2) Adjustment process of accounting profits and income tax expenses

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period

140 / 175ANNUAL REPORT 2023

Total profits 103662553689.81

Income tax expenses calculated at

25915638422.45

statutory/applicable tax rate

Effect of different tax rates applicable to

subsidiaries

Effect of adjustments to the income tax for the

prior years

Effect of non-taxable income -11194606.11

Effect of non-deductible costs expenses and 236633595.67

losses

Effect of deductible losses from using the

deferred tax assets unrecognized in previous

periods

Effect of deductible temporary differences or

losses from deferred tax assets unrecognized in

the current period

Income tax expenses 26141077412.01

55. Other comprehensive income

√Applicable □N/A

Please refer to Note 36 Other comprehensive income for details

56. Items in the statement of cash flows

(1) Cash relating to operating activities

Cash received from other operating activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Interest income from self-owned

599047232.23886579338.69

funds

Other revenue received 1747149238.40 1872842833.19

Total 2346196470.63 2759422171.88

Cash paid for other operating activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Cash paid for advertising and

1747846108.161177149398.36

publicity expenses

Cash paid for transportation

expenses and transportation 231907323.70 205887269.67

insurance premiums

Cash paid for property insurance

47413768.4345179150.27

premiums

Cash paid for other expenses 5916542317.85 3694871614.59

Total 7943709518.14 5123087432.89

(2) Cash relating to investing activities

Cash received from significant investing activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

23 Postal Savings Bank CD098

2000000000.00

(Interbank Certificate of Deposit)

141 / 175ANNUAL REPORT 2023

Large-amount deposit 2127680000.00

Total 4127680000.00

Cash paid for significant investing activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the Amount in the

current period prior period

Moutai Zhaohua (Guizhou) Industrial Development Fund

2000000000.00

Partnership (Limited Partnership)

Moutai Jinshi (Guizhou) Industrial Development Fund

2000000000.00

Partnership (Limited Partnership)

23 Postal Savings Bank CD098 (Interbank Certificate of

1996364000.00

Deposit)

Technical transformation project of Moutai liquor and its

supporting facilities in Zhonghua Area during the 13th Five- 32088126.54 63374372.75

Year Plan

Technical transformation project of 30000-ton Moutai-

634899976.94995745800.00

flavor series wine and its supporting facilities

Phase I Project of Packaging Logistics Park Project 74327720.47 10170110.00

First Phase Construction Project of the "14th Five-Year

307440011.31373960827.28

Plan" Moutai-flavor Liquor Xishui Tongminba

Technical transformation and construction project of Moutai

456567050.94852639.99

Liquor during the 14th Five-Year Plan period

Construction of 30 blocks of wine storehouses in Zhonghua

184195788.00

Area

Total 7685882674.20 1444103750.02

Cash received from other investing activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Received performance bond for

4605886.634971762.18

capital construction projects

Total 4605886.63 4971762.18

Cash paid for other investing activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Refunded performance bond for

7021867.1031486829.54

capital construction projects

Total 7021867.10 31486829.54

(3) Cash relating to financing activities

Cash received from other financing activities

□Applicable √N/A

Cash paid for other financing activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current period Amount in the prior period

Cash for repayment of lease

122315261.9354332788.37

liabilities

142 / 175ANNUAL REPORT 2023

Disposal of equity in secondary

6000000.00

subsidiaries

Others 6000000.00

Total 134315261.93 54332788.37

Changes in various liabilities arising from financing activities

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the Increase in current period Decrease in current period

Balance at the

Item beginning of the Cash Non-cash Cash change Non-cash

end of the period

period change change change

Lease

liabilities

(including the

444219465.0458365684.31114805234.0664088801.77323691113.52

part maturing

within one

year)

Total 444219465.04 58365684.31 114805234.06 64088801.77 323691113.52

(4) Description of cash flows presented at net amount

□Applicable √N/A

(5) Significant activities and financial effect not involving with the current cash deposit and

withdrawal but affecting the financial position of the enterprise or affecting the cash flow of

the enterprise in the future

□Applicable √N/A

57. Supplementary information to the statement of cash flows

(1) Supplementary information to the statement of cash flows

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Supplementary information Current period Prior period

1． Net profit adjusted to cash flows from operating activities：

Net profit 77521476277.80 65376039957.88

Plus: provision for impairment of

assets

Losses from credit impairment -37871293.26 14686546.25

Depreciation of fixed assets

depletion of oil and gas assets

1651428992.201443574818.50

depreciation of productive biological

assets

Amortization of right-of-use assets 72443839.21 77371590.63

Amortization of intangible assets 196656866.73 156016278.90

Amortization of long-term deferred

16886608.8611487619.04

expenses

Losses from disposal of fixed assets

intangible assets and other long-term 479736.97 -213235.69

assets ("-" for gains)

Losses from scrapping of fixed assets

-1632253.1420780992.88

("-" for gains)

Losses from changes in fair value ("-

-3151962.50

" for income)

Financial expenses ("-" for income) 12624628.35 12023204.77

Investment losses ("-" for gains) -34025967.82 -63840000.00

143 / 175ANNUAL REPORT 2023

Decreases in deferred tax assets ("-" -1210838167.12

-1050934956.22

for increases)

Increases in Deferred tax liabilities -11789948.28

-83685028.80

("-" for decreases)

Decreases in inventories ("-" for

-7610810825.29-5430009151.41

increases)

Decreases in operating receivables

-3465130974.53-15051874095.80

("-" for increases)

Increases in operating payables ("-"

-591505967.47-8644820580.52

for decreases)

Others

Net cash flows from operating

66593247721.0936698595830.03

activities

2． Significant investing and financing activities not involving in cash inflow and outflow:

Conversion of debt into capital

Convertible corporate bonds

maturing within one year

Fixed assets acquired under finance

lease

3． Net change in cash and cash equivalents:

Ending balance of cash 147360188952.47 152378738982.83

Less: balance of cash as at the

152378738982.83178640587379.52

beginning of the period

Plus: ending balance of cash 3000000000.00

equivalents

Less: beginning balance of cash

equivalents

Net increase in cash and cash

-2018550030.36-26261848396.69

equivalents

(2) Net cash paid for the acquisition of subsidiaries in the current period

□Applicable √N/A

(3) Net cash received from disposal of subsidiaries in the current period

□Applicable √N/A

(4) Breakdown of cash and cash equivalents

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Balance at the end of the Balance at the beginning of

Item

period the period

1. Cash 147360188952.47 152378738982.83

Including: cash on hand 162802.00 12740.70

Unrestricted bank deposit 59924161952.72 48074557886.36

Other unrestricted cash and

cash equivalents

Deposits with central bank

601237204.812568410342.65

available for payments

Deposits with banks and other

86834626992.94101735758013.12

financial institutions

Loans to banks and other

financial institutions

II. Cash equivalents 3000000000.00

144 / 175ANNUAL REPORT 2023

Including: bond investments

maturing within three months

Redemptory Monetary Capital for 3000000000.00

Sale

III. Ending balance of cash and cash

150360188952.47152378738982.83

equivalents

Including: cash and cash equivalents

restricted for use by the parent

company or subsidiaries within the

group

(5) Items with restricted use but still presented as cash and cash equivalents

□Applicable √N/A

(6) Cash and cash equivalents not belonging to cash and cash equivalents

√Applicable □N/A

Amount in the current Amount in the prior

Item Reason

period period

Statutory deposit reserve 5991813679.87 6418765887.71 Restricted in use

Total 5991813679.87 6418765887.71

58. Notes to items of statement of changes in owners’ equity

Description of project names of "others" adjusted in terms of the ending balance in the previous year and

the adjusted amount:

□Applicable √N/A

59. Foreign currency monetary items

(1) Foreign currency monetary items

√Applicable □N/A

Monetary Unit: RMB

Balance in RMB

Balance in foreign

converted at the end

Item currency as at the Rate of translation

of the period

end of the year

Balance

Cash and cash equivalents - -

Including: USD

EUR 3443197.68 7.8592 27060779.21

HKD

(2)Description of overseas operating entities including for important overseas operating entities

should disclose their major overseas business locations bookkeeping base currency and

selection basis and the reasons for the change in the functional currency

√Applicable □N/A

The registration place of Kweichow Moutai Paris Trading Co. Ltd. a wholly-owned subsidiary of the

Company is Paris France and its functional currency is Euro.

60. Leases

(1) Acting as the lessee

√Applicable □N/A

Variable lease payment not included in the lease liabilities for measurement

145 / 175ANNUAL REPORT 2023

□Applicable √N/A

Rental expenses for short-term leases and leases of low-value assets subject to simplified treatment

√Applicable □N/A

RMB 31990126.58

Leaseback and judgment basis

□Applicable √N/A

Total cash outflows relevant to leases 154949164.53 (Unit: Yuan Currency: RMB)

(2) Acting as the lessor

Operating lease of the Company acting as the lessor

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Including: Income from

Item Leasehold income variable lease payment not

included in lease collections

Commercial housing at

55045.87

Guiyang Zuanshi Plaza

Rooms 307-308 3/F No. 8

Sijiqing Road Haidian District 201834.86

Beijing

Nan’ao Visitor Center in

371359.82

Maotai Town

23rd floor Unit 1 Building A

Moutai International Business

234564.22

Center High-tech Zone

Guiyang City

Total 862804.77

(3) Recognition of profit or loss from sales of financing lease as the producer or distributor

□Applicable √N/A

VIII. Breakdown by nature

(1) Presentation by nature

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Item Amount in the current Amount in the prior

period period

Labor cost 175587021.98 158666649.70

Direct expenses invested 171763316.33 118890701.12

Depreciation costs and long-term deferred

84708560.5932137066.71

expenses

Expenses on the research and development

151719367.21206954999.10

entrusted to the external

Other expenses 37729269.76 42320810.13

Total 621507535.87 558970226.76

Including: research and development

477957725.95368433594.16

expenses

Capitalized research and

143549809.92190536632.60

development expenses

146 / 175ANNUAL REPORT 2023

(2) Development expenses qualified for capitalization

√Applicable □N/A

Monetary Unit: Yuan Currency: RMB

Increase in the current

Decrease in the current period

period