2023 Interim Report of Luzhou Laojiao Co. Ltd.
Luzhou Laojiao Co. Ltd.2023 Interim Report
August 2023
12023 Interim Report of Luzhou Laojiao Co. Ltd.
Section I Important Statements Contents and Definitions
The Board of Directors Board of Supervisors directors supervisors and senior management guarantee
that the information presented in this report is free of any false records misleading statements or
material omissions and shall individually and together be legally liable for truthfulness accuracy and
completeness of its contents.Liu Miao responsible person for the Company Xie Hong responsible person for accounting work and
Yan Li responsible person for the Company’s financial affairs (Accounting Supervisor) have warranted
that the financial statements in this report are true accurate and complete.Other directors attended the board meeting to deliberate this report by themselves except the following
directors.Position of directors who
Name of directors who did not Reason for not attending
did not attend the meeting Name of deputies
attend the meeting in person the meeting in person
in person
Wang Hongbo Director Work Lin Feng
Ying Hanjie Director Work Liu Miao
Affected by risks uncertainties and assumptions the forward-looking statements concerning business
objectives and future plans made in this report based on the subjective assumptions and judgments of
the future policies and economic conditions may be significantly different from the actual results. Such
statements shall not be considered as virtual promises of the Company to investors and the investors
and relevant persons shall maintain adequate risk awareness and shall understand the differences
between plans forecasts and commitments.In this report the potential risks in the operation of the Company have been disclosed. Investors are
kindly reminded to pay attention to possible investment risks.The Company has no interim dividend plan either in the form of cash or stock.This report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.
22023 Interim Report of Luzhou Laojiao Co. Ltd.
Contents
Section I Important Statements Contents and Defini... 2
Section II Company Profile and Key Financial Resul... 6
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance .................... 28
Section V Environmental and Social Responsibility .. 32
Section VI Significant Events ...................... 40
Section VII Changes in Shares and Information abou.. 47
Section VIII Preferred Shares ...................... 54
Section IX Information about Bond .................. 55
Section X Financial Report ......................... 58
32023 Interim Report of Luzhou Laojiao Co. Ltd.
Documents Available for Reference
1. Financial statements signed and stamped by the responsible person for the Company the
responsible person for accounting work and the responsible person for the Company’s financial affairs
(Accounting Supervisor); and
2. The originals of all company documents and announcements that are disclosed to the public during
the reporting period.
42023 Interim Report of Luzhou Laojiao Co. Ltd.
Definitions
Term Reference Definition
Company the Company Luzhou
Refer to Luzhou Laojiao Co. Ltd.Laojiao
Laojiao Group Refer to Luzhou Laojiao Group Co. Ltd.XingLu Group Refer to Luzhou XingLu Investment Group Co. Ltd.State-owned Assets Supervision and Administration
SASAC of Luzhou Refer to
Commission of Luzhou
Huaxi Securities Refer to Huaxi Securities Co. Ltd.Sales Company Refer to Luzhou Laojiao Sales Co. Ltd.Brewing Company Refer to Luzhou Laojiao Brewing Co. Ltd.
52023 Interim Report of Luzhou Laojiao Co. Ltd.
Section II Company Profile and Key Financial Results
1. Corporate information
Stock abbreviation Luzhou Laojiao Stock code 000568
Stock exchange where
the shares of the Shenzhen Stock Exchange
Company are listed
Name of the Company 泸州老窖股份有限公司
in Chinese
Abbr. of the Company
name in Chinese (if 泸州老窖
any)
Name of the Company
Luzhou Laojiao Co. Ltd.in English (if any)
Abbr. of the Company
name in English (if LZLJ
any)
Legal representative Liu Miao
2. Contact us
Representative for securities
Secretary of the board
affairs
Name Li Yong Wang Chuan
Luzhou Laojiao Command Center Nanguang Road Luzhou City
Address
Sichuan Province China
Tel. （0830）2398826 （0830）2398826
Fax （0830）2398864 （0830）2398864
E-mail dsb@lzlj.com dsb@lzlj.com
3. Other Information
3.1. Contact Information of the Company
Whether any change occurred to the registered address office address and their zip codes website
address email address and other contact information of the Company in the reporting period.□ Applicable □ N/A
No change occurred to the said information in the reporting period which can be found in the 2022
Annual Report.
3.2. Information disclosure and place where the interim report is kept
Whether any change occurred to the information disclosure and place where the interim report is kept.
62023 Interim Report of Luzhou Laojiao Co. Ltd.
□ Applicable □ N/A
No change occurred to the website of the stock exchange media and other websites designated by
the Company for information disclosure as well as to the place where the disclosed documents are
kept in the reporting period. The said information can be found in the 2022 Annual Report.
3.3. Other information
Whether any change occurred to other information in the reporting period.□ Applicable □ N/A
4. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data.□ Yes □ No
H1 2023 H1 2022 Change
Operating revenues (CNY) 14593051774.14 11664377552.94 25.11%
Net profits attributable to
shareholders of the 7090426787.07 5531926340.44 28.17%
Company (CNY)
Net profits attributable to
shareholders of the
Company before non- 7040938575.63 5496265842.50 28.10%
recurring gains and losses
(CNY)
Net cash flows from
5647760797.044077014965.3438.53%
operating activities (CNY)
Basic earnings per share
4.823.7628.19%
(CNY/share)
Diluted earnings per share
4.823.7628.19%
(CNY/share)
Weighted average ROE 18.79% 17.96% 0.83%
30 June 2023 31 December 2022 Change
Total assets (CNY) 61524708713.71 51385481354.52 19.73%
Net assets attributable to
shareholders of the 35086468059.34 34207871130.03 2.57%
Company (CNY)
5. Differences in accounting data under domestic and overseas
accounting standards
5.1. Differences in the net profits and net assets disclosed in the financial reports
prepared under the international and China accounting standards
□ Applicable □ N/A
No such differences for the reporting period.
72023 Interim Report of Luzhou Laojiao Co. Ltd.
5.2. Differences in the net profits and net assets disclosed in the financial reports
prepared under the overseas and China accounting standards
□ Applicable □ N/A
No such differences for the reporting period.
6. Non-recurring gains and losses
□ Applicable □ N/A
Unit: CNY
Item Amount Note
Gain or loss from disposal of non-
current assets (including the write-off -477479.38 See "Section X Note 5.46" for details.portion of the impairment provision)
Government grants accounted for in
the profit or loss for the current
period (except for the government
grants closely related to the business See "Section X Note 5.42 and 5.47"
21166337.88
of the Company and consistently for details.given at a fixed amount or quantity in
accordance with the national policies
or standards)
Gain or loss on fair-value changes on
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and
See "Section X Note 5.43 and 5.44"
liabilities and available-for-sale 37839310.52
for details.financial assets (exclusive of the
effective portion of hedges that arise
in the Company’s ordinary course of
business)
Other non-operating income and
See "Section X Note 5.47 and 5.48"
expenditure except above-mentioned 7506932.03
for details.items
Less: Corporate income tax 16427670.44
Minority interests (after tax) 119219.17
Total 49488211.44
Other items that meet the definition of non-recurring gain/loss:
□ Applicable □ N/A
No such cases for the reporting period.Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to
the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.□ Applicable □ N/A
No such cases for the reporting period.
82023 Interim Report of Luzhou Laojiao Co. Ltd.
Section III Management Discussion and Analysis
1. Business scope in the reporting period
The Company operates within the baijiu subdivision industry which belongs to the liquor & wine
beverage and refined tea production industry with specialized baijiu product design production and
sales as its main business model. Its primary products include baijiu series such as "National Cellar
1573" and "Luzhou Laojiao" and its main comprehensive performance indicators rank high in the
baijiu industry.Affected by the population size demographic structure as well as changes in supply and demand the
baijiu industry has entered into an era of competition for existing customers facing multiple pressures
such as consumption downturn and intensified competition. Since the beginning of the year the
domestic consumer market has been recovering. With favorable national policies for expanding
domestic demand and boosting consumption the demand side may continue to improve and bring
new development opportunities for the industry.The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Sel f-regulation of
Listed Companies—Industry-specific Information Disclosure.The Company holds five food business licenses and its production model is self-production. The
Company’s main business is the research and development production and sales of baijiu series
such as "National Cellar 1573" and "Luzhou Laojiao".During the Reporting Period with a focus on the development theme of "promoting reform enhancing
collaboration focusing on main areas and achieving leapfrog development" the Company seized the
opportunities and went all out with a pragmatic and progressive attitude to promote the development
of the Company to a new level. For H1 2023 operating revenue amounted to CNY 14.593 billion up
25.11% year on year; and the net profit attributable to the shareholders of the listed company reached
CNY 7.09 billion up 28.17% year on year maintaining good and rapid growth.A. Main operations and results in the Reporting Period
a. Actively innovating marketing strategy and steadily enhancing market share and market
competitiveness
The Company continuously focused on consumer cultivation strategic market building and key
project support. The offline consumer operation system was continuously improved the construction
of the online sales shop matrix was completed the "Hundred Cities Program" was steadily promoted
and the Chunlei Action was effective. The Company's ability to enhance market share and market
competitiveness has improved dramatically.
92023 Interim Report of Luzhou Laojiao Co. Ltd.
b. Continuously enhancing the brand connotation and achieving effective brand development
Relying on mainstream media the Company further enhanced the brand's influence through public
relations communication on the themes of "Living Dual National Treasures" and technological
innovation. The brand's reputation was further improved by constructing emotional resonance with
consumers through the Fengcang Dadian the poetic drama tour of "Yellow River" and other activities.The brand image of Luzhou Laojiao was comprehensively established by integrating Luzhou Laojiao's
branding activities and integrating online and offline information dissemination.c. Continuously strengthening the reform of scientific research and making fruitful innovations and
breakthroughs
The Company launched the construction of a scientific research center platform to promote the win-
win development of the university and enterprises conducted analysis and inventory of the
effectiveness of scientific and technological projects to enhance result orientation and boosted
technological publicity and promotion to achieve technology-empowered brand marketing. In the first
half of 2023 the Company declared nine vertical scientific research projects at all levels and won
seven honors of scientific and technological awards from associations including China National Light
Industry Council and China Alcoholic Drinks Association. It participated in the formulation and revision
of two national standards and five group standards and was granted 42 patents. In addition 17
scientific research papers of the Company were published.d. Making every effort to promote the development of major projects to a new level
The Company accelerated the construction of the Technical Upgrade Project of Intelligent Brewing
completed the overall project plan design preliminary design of the first phase of the project bidding
for participating units and project investigation. Major projects such as the display platform of the
production scheduling command center and the Qu-preparation MES system of the Huangyi Brewery
Eco-Park were advanced. The Company's intelligent brewing and supply chain system security
achieved a higher level.e. Firmly fulfilling social responsibilities and achieving preliminary results in party building
empowerment
The Company continuously practiced the corporate philosophy of "Baijiu for the World a Shared
Future" and deeply implemented rural revitalization arrangements. The Company's village members
stationed in Guntang Village Maiwa Township Hongyuan County were awarded the "Excellent
Village Members in Aba Prefecture" and Guntang Village under the paired assistance of the
Company was awarded the "Excellent Key Village of Rural Revitalization in Aba Prefecture". The
Company continuously played the integration role of party building position and achieved preliminary
results in "1 + N" party building clustering. The party group service center was upgraded and a
unique brand culture of party building was gradually formed.B. Priorities in the second half of the year
a. Strengthening marketing and accelerating the layout of intelligent empowerment
102023 Interim Report of Luzhou Laojiao Co. Ltd.
By continuously following the marketing theme of "strategic concentration accelerated breakthrough
operation upgrade and full personnel activation" the Company will effectively promote the
development of business standards. It will comprehensively advance the effective implementation of
the "Hundred Cities Program" and fully integrate resources. With a focus on the digital upgrade of the
front-line business the Company will continuously improve the marketing service and guarantee
capacity. Additionally it will constantly boost digital empowerment for consumer development adhere
to the healthy and benign development of the market and make every effort to promote sales
expansion.b. Strengthening culture cultivation and boosting brand empowerment
The Company will continuously integrate thematic marketing to effectively build consumer empathy
and publicize brand stories. Activities such as poem and baijiu culture will be continuously organized
to stimulate public resonance and enhance the enterprise's reputation. Platforms such as the mobile
museum will be fully leveraged to revitalize the cultural communication of Luzhou Laojiao and shape
a tangible and emotional brand culture. The publicity effect of creative activities will be strengthened
to increase brand popularity and enhance consumer loyalty.c. Strengthening the management model and enhancing collaboration efficiency
The Company will accelerate the formation of an integrated online and offline digital collaboration
support system to promote professional systematic and intelligent decision-making by the
management. Centering on the actual needs of sales and production the Company will make every
effort to optimize procedures and policies. Information-based management will be enhanced to
realize the empowerment of big data. The Company will strengthen the lean organization and
management to improve collaboration efficiency.d. Boosting project construction and supporting industrial upgrade
The Company will continue to promote the construction of major projects such as the Luzhou Laojiao
Technical Upgrade Project of Intelligent Brewing the conservation and restoration of cultural cellar
caves of baijiu production workshops of Luzhou Laojiao in Xiaoshi region the baijiu culture scenario
building and the surrounding environment improvement project and accelerate the layout of
intelligent brewing intelligent production as well as culture and tourism integration to consolidate and
expand the advantages of Luzhou Laojiao in production capacity guarantee and brand culture.e. Strengthening talent efficiency gains and promoting talent development
Adhering to dynamic and fine management the Company will continuously optimize talent allocation
to support business development. Adhering to quality improvement and efficiency enhancement the
Company will continuously optimize the selection and appointment of talent to create a talent base.Adhering to the enhancement of personnel efficiency the Company will optimize the talent structure
and strengthened echelon building. Adhering to a multi-dimensional orientation the Company will
optimize talent incentives and stimulated self-motivation. Adhering to a people-oriented spirit the
Company will optimize employee services to create a harmonious corporate atmosphere.f. Enhancing the leadership of party building to boost the development of the Company
112023 Interim Report of Luzhou Laojiao Co. Ltd.
The Company will further play the integration role of party building position and create a benchmark
position in sales production and other grassroots front lines to provide better education-based
guidance and services to party members and present the Company's development achievements in a
three-dimensional manner. It will refine work to support rural revitalization and social welfare strongly
promote regional development and make due contribution to consolidating and expanding poverty
alleviation results and comprehensively boosting rural revitalization.Brand operation
The Company has always insisted on "dual brands three product series and major single products":
The National Cellar 1573 series has been one of the three high-end baijiu products in China; Luzhou
Laojiao's brand rejuvenation plan saw remarkable results and the product series showed a good
momentum of development; innovative products such as Health Gogoon and Chinese-style fruit
baijiu continued to be cultivated and have become the driving force for the Company's young
fashionable healthy and international development.Main sales models:
Currently the Company has two main sales models:
1. Traditional channel operation model: It is mainly authorized distribution of the offline distributors. The
Company establishes cooperative relationships with the distributors by product lines and regions. The
Company directly supplies goods to the distributors and then distributors sell them to consumers and
terminal outlets.
2. Emerging channel operation model: It is mainly online sales operations. The Company establishes
cooperative relationships with e-commerce platforms self-media and webcasters and sells the goods
to consumers through flagship stores specialty stores live streaming rooms on online platforms and
other network terminals.Distribution models:
□ Applicable □N/A
1. Main sales models
Unit: CNY
YoY YoY
Gross YoY change
change of change of
Operating revenue Cost of sales profit of operating cost of gross profit
margin revenue
sales margin
By sales model
Traditional channel
operation model 13960908535.33 1498640545.49 89.27% 28.82% 1.93% 2.84%
Emerging channel
operation model 550076103.08 171370733.31 68.85% -22.73% 36.69% -13.54%
2. Distributors
Unit: Number
Region Number of Increased Decreased YoY change of Reason for any
122023 Interim Report of Luzhou Laojiao Co. Ltd.
distributors at the number during number during number of significant
end of the the reporting the reporting distributors (%) change
reporting period period period
Domestic 1701 13 15 11.47%
Overseas 111 0 15 -0.89%
3. Main settlement method for distributors and distribution method
The Company's main settlement method for distributors is payment before delivery. The distribution
method is authorized distribution.
4. Top five distributors
Total sales to top five customers（CNY） 9102705218.08
Total sales to top five customers as % of the total sales 62.38%
Total sales to related parties among top five customers as % of the total
0.00%
sales
The Company had no accounts receivable from the top five distributors at the end of the period.
5. Information on top five distributors
As % of the total
No. Customer Sales amount (CNY) sales for the
reporting period
1 Customer A 6911120831.82 47.36%
2 Customer B 751936693.91 5.15%
3 Customer C 636824277.10 4.36%
4 Customer D 501692179.67 3.44%
5 Customer E 301131235.58 2.07%
Total -- 9102705218.08 62.38%
Store sales terminals accounted for more than 10%
□ Applicable □ N/A
Online direct sales
□ Applicable □N/AFor the main sales models of the Company please refer to the contents under the heading “Distributionmodels” in “1. Business scope in the reporting period” of Section III. For the sales of the Company's
main products please refer to the contents under the heading "Business segment products orgeographical segments contributing over 10% of the operating revenues or profits" in “3. Analysis ofmain business” of Section III. The Company's main products are sold online. Its main cooperation
platforms include JD.com and Tmall.Sales price of main products contributing over 10% of the total operating revenues for the current
period changed by more than 30% from the previous reporting period
□ Applicable □ N/A
Purchase model and purchase content
Unit: CNY
132023 Interim Report of Luzhou Laojiao Co. Ltd.
Purchase model Purchase content Amount of main purchase content
Organic raw grains are purchased
through cooperative model and
supplied by organic raw grain bases;
Raw materials 1904661332.91
other raw grains and packaging
materials are purchased through bid
invitation
Purchase based on the unified
pricing of the Development and
Reform Commission of Luzhou and Fuels and energies 92495405.92
the Price Bureau of Luzhou and
purchase through bid invitation
Purchase through bid invitation Low-value consumables 24502517.66
The purchase of raw materials from cooperatives or farmers accounted for more than 30% of the total
purchase amount
□ Applicable □ N/A
The price of main raw materials purchased externally changed by more than 30% year-on-year
□ Applicable □ N/A
Main production model:
The Company's main production model is self-production.Commissioned processing and production
□ Applicable □ N/A
Main breakdown items of cost of sales
Unit: CNY
H1 2023 H1 2022
By business
Item As % of cost of As % of cost of YoY Change segment Amount Amount
sales sales
Baijiu Raw materials 1411571489.11 84.52% 1362639995.08 85.40% 3.59%
Baijiu Labor costs 117395758.18 7.03% 97048667.74 6.08% 20.97%
Manufacturing
Baijiu 141044031.51 8.45% 135902902.04 8.52% 3.78%
overhead
Production volume and inventory
1. Production volume sales volume and inventory of main products
YoY change YoY change
Production
Product Sales volume Inventory of production of sales YoY change Description of
volume
classification (ton) (ton) volume volume of inventory major changes
(ton)
(%)(%)
Mid- and high-
16156.9716930.1742103.81-25.10%-3.00%-2.75%
end baijiu
Other baijiu 25552.95 26485.26 10763.18 12.28% 21.20% -26.19%
2. Inventory at the end of the reporting period
Unit: Ton
Finished baijiu Semi-finished baijiu (including base baijiu)
52866.99431179.15
142023 Interim Report of Luzhou Laojiao Co. Ltd.
3. Capacity
Unit: Ton
Main products Design capacity Actual capacity Capacity in progress
Baijiu 170000 170000 80000
2. Analysis of core competitiveness
A. Geographical advantage
Luzhou City where the Company is located sits in the transitional area between the southern rim of the
Sichuan Basin and the Yunnan-Guizhou Plateau featuring a warmer and more humid sub-tropical
climate compared to other areas at the same latitude with a temperature above 0℃ throughout the
year. The unique climate and soil are agreeable to grow grains for baijiu brewing. The glutinous red
sorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.The cellars in which the Company brews its baijiu are made of the local loessal clay characterized by
strong viscosity rich minerals and excellent moisture retention. In addition the abundant and quality
water in the region creates a unique geographical advantage for the production of the Company’s baijiu.B. Advantage of cellars and brewing technique
Aged cellars are the most essential condition for a strong aromatic baijiu maker to produce good quality
baijiu. The Cellars of National Treasure 1573 founded in 1573 was granted by the State Council as the
first Cultural Relic of National Importance in the industry under the Protection of the State in December
1996. 1619 cellars of Luzhou Laojiao which have been continuously used for over 100 years together
with its 16 ancient brewing workshops and three natural cellar holes were all selected as the fourth
batch of Cultural Relics of National Importance under the Protection of the State in 2013. They are
unique resources that cannot be replicated. In both 2006 and 2012 Luzhou Laojiao Daqu Cellars were
twice selected into the preliminary list of China for World Heritage. In November 2018 Luzhou Laojiao
Cellars and Brewing Workshops were selected into China’s Industrial Heritage List. The time-honored
Traditional Brewing Technique of Luzhou Laojiao is a 24-generation inheritance and a classic brewing
technique for strong aromatic baijiu. This technique was selected as the first batch of National
Intangible Cultural Heritage in May 2006. The Cellars of National Treasure 1573 and the Traditional
Brewing Technique of Luzhou Laojiao together provide the most essential basis and assurance for the
quality of the product series of National Cellar 1573 and Luzhou Laojiao. Additionally Huangyi Brewery
Eco-Park has moved into full production in late 2020. Upholding the cultural connotations of
“inheritance of ancient ways pure-grain brewing traditional techniques and intelligent technologies”
the Company carried out brewing technical renovation featuring automatic intelligent and information
technology-based transformation. As such it has established a baijiu brewery eco-park comprising
brewing workshops leaven making workshops and base baijiu storage cellars along with energy and
sewage treatment facilities. This brewery eco-park brings with it new production capacities of 100000
tons of quality pure-grain solid baijiu and 100000 tons of leaven in addition to a new storage capacity of
380000 tons of baijiu per year marking a substantial increase in the Company’s production capacity.
C. Brand advantage
Brand is a key business resource for baijiu producers. The Company’s reputation is greatly built on its
superiority in brand. National Cellar 1573 which is of a connoisseurship level is a world-famous high-
152023 Interim Report of Luzhou Laojiao Co. Ltd.
end brand. Luzhou Laojiao Tequ a classic brand for strong aromatic baijiu was selected in 1952 by the
first national tasting competition judges as one of the four most famous baijiu brands in China. It is the
only strong aromatic baijiu brand that won the title of “National Famous Baijiu” for five consecutive times
as well as the pioneer with regard to the “Tequ” variety of baijiu. In recent years the Company hassuccessfully put in place a brand system of “dual brands three product series and major singleproducts” with great clarity and focus. The programs carried out to promote the brand of National Cellar
1573 and revive the brand of Luzhou Laojiao have produced remarkable results with significant
improvement in brand influence. The Company’s baijiu is increasingly known by consumers as a
national brand of strong aromatic baijiu and of authentic flavor.D. Quality and R&D advantageThe Company is committed to producing high-quality baijiu advocating a healthy lifestyle and “makingthe quality visible”. The first “Organic Sorghum Planting Base” was established and the six-factor
management system (including organic quality safety environment measurement and energy) was
built and improved. The research platforms are established including National Engineering Research
Center of Solid-State Brewing National Liquor Test Center National Postdoctoral Workstation etc
which all support the innovation and upgrading of products with their strong technical force. In recent
years the Company has put in a lot of efforts in researching Tequ production brewing informatization &
automation. Relying on the technological innovation platforms such as the National Industrial Design
Center and continuously deepening the cooperation with universities and scientific research institutes
including the Chinese Academy of Sciences and the Jiangnan University the Company has undertaken
dozens of national- or provincial-level projects and has been granted hundreds of invention or utility
model patents. And remarkable results have been achieved with respect to improvement of the quality
of base Baijiu as well as production efficiency improvement.E. Talent advantage
The Company has 1 inheritor of national intangible cultural heritage 4 masters of Chinese brewing 2
masters of Chinese baijiu 2 Chinese liquor connoisseurs 1 master of Chinese baijiu technique 11
senior professor engineers 7 experts who receive special allowances from the State Council 4 national
technicians 2 national model workers 5 national Labor Day Medal winners 3 academic and
technologic leaders of Sichuan province 1 expert with outstanding contribution in Sichuan province 1
innovation leader of Tianfu 1 excellent engineer of Tianfu 3 craftsmen of Tianfu 2 craftsmen of
Sichuan province 1 technological elite of Tianfu 4 technicians of Sichuan province as well as
hundreds of highly skilled personnel including national baijiu judges senior brewing technicians and
brewing technicians. The comprehensive and professional personnel system assures the sound
development of the Company.
3. Analysis of main business
Overview
See contents under the heading “1. Business scope in the reporting period” above.
162023 Interim Report of Luzhou Laojiao Co. Ltd.
Year-on-year changes in key financial data
Unit：CNY
YoY Reason for any significant
H1 2023 H1 2022
Change change
Operating revenues 14593051774.14 11664377552.94 25.11%
Cost of sales 1700263105.68 1642310550.61 3.53%
Selling and
1463196830.611213861984.6620.54%
distribution expenses
General and
administrative 539879241.31 542666754.49 -0.51%
expenses
Finance expenses -125783791.43 -126988421.10
Mainly due to the increased
Corporate income
2385359516.12 1800020542.39 32.52% sales revenue from baijiu
tax
resulting in the increased profit
R&D investments 85012075.06 93892252.85 -9.46%
Mainly due to the increased
Net cash flows from
5647760797.04 4077014965.34 38.53% cash received from sale of
operating activities
goods in the current period
Mainly due to the redemption of
wealth management product
Net cash flows from
732254553.22 -1158401612.09 (collective asset management
investing activities
plan) from securities firm in the
current period
Net cash flows from Mainly due to the bank loans
6194950118.71579368826.99969.26%
financing activities received in the current period
Mainly due to the increased net
Net increase in cash cash flows from operating
12582529016.133512307170.67258.24%
and cash equivalents investing and financing activities
in the current period
Significant changes to the profit structure or sources of the Company in the reporting period
□ Applicable □ N/A
No such changes in the Reporting Period.Breakdown of operating revenues
Unit：CNY
H1 2023 H1 2022
As % of As % of YoY Change
Amount operating Amount operating
revenues revenues
Total 14593051774.14 100% 11664377552.94 100% 25.11%
By business segment
Baijiu 14510984638.41 99.44% 11549327272.44 99.01% 25.64%
Other revenues 82067135.73 0.56% 115050280.50 0.99% -28.67%
By product
Mid- and high-
12990085081.5089.02%10372408380.4588.92%25.24%
end baijiu
Other baijiu 1520899556.91 10.42% 1176918891.99 10.09% 29.23%
Other revenues 82067135.73 0.56% 115050280.50 0.99% -28.67%
By geographical segment
Domestic 14516179307.86 99.47% 11570386785.08 99.19% 25.46%
Overseas 76872466.28 0.53% 93990767.86 0.81% -18.21%
172023 Interim Report of Luzhou Laojiao Co. Ltd.
Business segment products or geographical segments contributing over 10% of the operating
revenues or profits
□ Applicable □ N/A
Unit：CNY
Gross YoY change YoY change YoY change
Operating revenue Cost of sales profit of operating of cost of of gross profit
margin revenue sales margin
By business segment
Baijiu 14510984638.41 1670011278.80 88.49% 25.64% 4.66% 2.31%
By product
Mid- and high-
12990085081.50975940155.3392.49%25.24%-2.31%2.12%
end baijiu
Other baijiu 1520899556.91 694071123.47 54.36% 29.23% 16.35% 5.05%
By geographical segment
Domestic 14516179307.86 1688065142.75 88.37% 25.46% 5.72% 2.17%
Under the circumstances that the statistical standards for the Company’s main business data were
adjusted in the reporting period the Company’s main business data in the current period is calculated
based on adjusted statistical standards at the end of the reporting period
□ Applicable □ N/A
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Sel f-regulation of
Listed Companies—Industry-specific Information Disclosure.A. Breakdown of selling and distribution expenses
Unit：CNY
Selling and
Reason for any significant
distribution H1 2023 H1 2022 YoY Change
change
expenses
Advertising
585741219.56691914456.49-15.34%
expenses
Sales promotion Increased sales promotion 486391918.30 142494942.50 241.34%
expenses activities in the current period
Warehousing
and logistics 95488340.44 63874054.36 49.49% Increased stock for sale
expenses
Labor costs 210781737.74 204443388.51 3.10%
Other 84793614.57 111135142.80 -23.70%
B. Breakdown of advertising expenses
Unit：CNY
Advertising Expenses
182023 Interim Report of Luzhou Laojiao Co. Ltd.
Online advertising (exclusive of TV advertising) 53376655.14
Offline advertising 161825375.75
TV advertising 138219714.09
Other (inclusive of branding ideas exhibitions &
showcases advertising materials activity planning 232319474.58
etc.)
4. Analysis of non-core business
□ Applicable □ N/A
5. Assets and liabilities
5.1. Significant change of asset items
Unit：CNY
30 June 2023 31 December 2022
Change in Explanation about any
As % of total As % of total
Amount Amount percentage material change
assets assets
Mainly due to the
positive net cash
Cash and cash flows from operating
equivalents 30344475538.13 49.32% 17757528211.25 34.56% 14.76% activities and bank
loans received in the
current period
Accounts
receivable 14720743.59 0.02% 5939420.78 0.01% 0.01%
Inventories 10794156136.00 17.54% 9840742374.85 19.15% -1.61%
Investment
38467435.500.06%39149454.220.08%-0.02%
property
Long-term equity
investments 2721676735.14 4.42% 2667500553.17 5.19% -0.77%
Fixed assets 8616388591.11 14.00% 8856258598.78 17.23% -3.23%
Construction in
progress 1209595255.85 1.97% 808919047.21 1.57% 0.40%
Right-of-use
assets 29616062.33 0.05% 39952525.63 0.08% -0.03%
Contract
liabilities 1933610554.94 3.14% 2566374718.76 4.99% -1.85%
Mainly due to the
Long-term loans 9515100000.00 15.47% 3179600000.00 6.19% 9.28% bank loans received
in the current period
Lease liabilities 26095309.94 0.04% 29096969.66 0.06% -0.02%
5.2. Main assets overseas
□ Applicable □ N/A
5.3. Assets and liabilities measured at fair value
□ Applicable □ N/A
192023 Interim Report of Luzhou Laojiao Co. Ltd.
Unit：CNY
Changes in
Changes in
cumulative
Opening fair value Provision for Amount of Amount of Other Closing
Item fair value
balance through impairment purchase sale changes balance
recorded
profit or loss
into equity
Financial
asset
1.Held-for-
trading
financial
assets 10734667 32781678. 200000000 11061917 200056716
(exclusive of 80.37 42 .00 42.66 .13
derivative
financial
assets)
4.Investmen
ts in other 11367369 189135818 391086685 445414722
equity 78.11 .57 .52 .85
instruments
Accounts -45833525 27653300
receivables 18180224
financing 03.37 12.77
90.60
Subtotal of -
6793556232781678.1891358182000000001497278434108014
financial 18180224
assets 61.85 42 .57 .00 28.18 51.75
90.60
-
6793556232781678.1891358182000000001497278434108014
Total 18180224
61.8542.57.0028.1851.75
90.60
Financial
liability 0.00 0.00
Information about other changes
N/A
Whether measurement attribution of main assets changes significantly in the reporting period
□Yes □ No
5.4. Restricted asset rights as of the end of this reporting period
Unit：CNY
Closing
Item Reason
Balance
Accrued interest on term deposits and amount frozen by
Bank deposits 22939930.13
court of law
Other cash and cash
10000000.00 Bank guarantees
equivalents
Total 32939930.13
6. Investment
6.1. Total investment
□ Applicable □ N/A
202023 Interim Report of Luzhou Laojiao Co. Ltd.
Investment made in the Investment made in the same
YoY change
reporting period (CNY) period of last year (CNY)
686415706.041669795904.73-58.89%1
Note 1: Mainly due to the purchase of a larger amount of wealth management product (collective
asset management plan product) from securities firm in the same period of last year.
6.2. Significant equity investment made in the reporting period
□ Applicable □ N/A
6.3. Significant ongoing non-equity investment in the reporting period
□ Applicable □ N/A
Unit: CNY
Accum
Accum Reason
ulated
ulated s for
actual
Whethe Amount actual not Date
Industr input
r it is a of input income meetin of
Invest y of the amount Project Project Disclosur
fixed in the Capital by the g the disclo
Item ment investm by the progres ed e index
asset reportin source end of schedul sure
form ent end of s income (if any)
investm g the e and (if
project the
ent period reportin project any)
reportin
g ed
g
period income
period
Announc
ement
No.on the
Luzhou Impleme
Laojiao ntation of
Technical Luzhou
59349 Self- 13
Upgrade Self- 10193 Laojiao
Yes Baijiu
built 3579.5 financin 1.00% N/A N/A N/A July Project of 333.83 Technical
0 g 2022
Intelligen Upgrade
t Brewing Project of
(Phase I) Intelligen
t Brewing
(Phase I)
by
Subsidiar
y
59349
10193
Total -- -- -- 3579.5 -- -- N/A N/A -- -- --
333.83
0
212023 Interim Report of Luzhou Laojiao Co. Ltd.
6.4. Financial assets investment
6.4.1. Securities investment
□ Applicable □ N/A
Unit: CNY
Chang
Chang es in Profit
es in the and
Abbre Accou Beginn
Categ Initial fair cumul Amou loss Closin
viation nting ing Amou Accou
ory of Stock invest value ative nt of during g book Capital
of measu book nt of nting
securit code ment recogn fair purcha the balanc source
securit rement balanc sale item
ies cost ized in value se reporti e
ies model e
profit record ng
or loss ed into period
equity
Invest
Dome ments
stic 12719
Fair 16004 15204 16476
60121 in value 6241 Own
and GTJA 156.7 measu 9389. 1031. 0188.other
foreign 1 808.41
fund
equity
6 rement 21 25 01
stock instru
ments
Invest
Dome ments
Fair
stic 14931 13761 1479100224 1030 78177 in value Own
and SNC 950.2 230.2 230.2 other
foreign 6 000.00
measu .75 fund equity
rement 4 9 9
stock instru
ments
Invest
Dome ments
stic 51120
Fair 12015 60898 11201 in
LZBA value Own
and 01983 NK 000.0 measu 8392. 357.2 8357.other
fund
foreign equity
0 rement 72 7 27
stock instru
ments
Invest
Dome
Fair -
ments
stic CTG 54228 80713 39108 11938
value 31811 97728
in
Own
and 01880 Duty- 5380. measu 9120. 6685. 6821.other
fund
foreign 873.8 0.00 equity
Free 80 rement 07 52 41
stock 7 instru
ments
607151102194883910841095
7297
Total 4537. -- 27885 0.00 8744. 0.00 6685. 6596. -- --
266.16
562.24945298
6.4.2. Derivative investment
□Applicable □ N/A
No such cases in the reporting period
6.5. Use of funds raised
□ Applicable □ N/A
222023 Interim Report of Luzhou Laojiao Co. Ltd.
6.5.1. General use of funds raised
□ Applicable □ N/A
Unit：CNY 10000
Total Accumula
Total Total
amount ted re- Amount
amount Accumula amount Purpose
of re- purposed Total of funds
Total of raised ted of and
purposed funds amount raised
amount funds amount accumula direction
Year Method funds raised of unused idle for
of funds used in of raised ted re- of unused
raised in as % of funds more
raised the funds purposed funds
the total raised than two
reporting used funds raised
reporting funds years
period raised
period raised
Deposite
Public
d in
offering 12139.3 59296.1 special
2020 of 149400 98243.6 0 0 0.00% account 0
corporate 7 6
for raised
bond
funds
Public
offering
2022 of 149880 0 149880 0 0 0.00% 0 N/A 0
corporate
bond
12139.3248123.59296.1
Total -- 299280 0 0 0.00% -- 0
766
Notes for general use of funds raised
The total amounts of used and unused funds raised include interest on the funds.
6.5.2. Fund raised for committed projects
□ Applicable □ N/A
Unit：CNY 10000
Committe
Date of Whether
d Whether Total Investme
Accumula the Whether the
investme the amount Investme nt Realized
Adjusted ted input progress projects the feasibility nt project of funds nt benefits
Investme by the by the reach the expected of the projects has been raised for amount in during
nt total end of end of working benefits project and changed committe the the
amount the condition have has
direction (including d reporting reporting reporting
(1) reporting for their been changed
of over- partial investme period period (3) period
period (2) ＝(2)/(1) intended achieved significanraised change) nt
use tly
funds
Committed investment projects
Technical
Renovati
on 325002. 30 June
No
Project of 11074.11 Yes No 74 2021
Brewing
(Phase II)
Project of
Intelligent
Upgradin
g and
Building
of the No 398400 398400 1065.26 9299.15 88.18% N/A N/A N/A No
Informati
on
Manage
ment
System
Project of
Acquiring
Sealing 30 June
No
Equipme 0 12043.3 Yes No 2021
nt for the
Cellar of
232023 Interim Report of Luzhou Laojiao Co. Ltd.
Huangyi
Brewing
Base
Project of
Acquiring
Accessor
y
Equipme
nt for 30 June
No
Leaven 0 4980.25 Yes No 2021
Making
for
Huangyi
Brewing
Base
Subtotal
of
committe 12139.3 351325.d -- 3984001 398400 -- -- N/A -- --
investme 7 44
nt
projects
Use of over-raised funds
None No
12139.3351325.
Total -- 398400 398400 -- -- N/A -- --
744
Explain
project by
project
the
situation
and
reason
for not
reaching
plan
progress
or
expected
benefits N/A
(including
reason
for
inputting
“N/A” for“Whetherthe
expected
benefits
have
beenachieved”
)
Significan
t changes
N/A
of project
feasibility
Amount
purpose
and
progress N/A
of over-
raised
funds
Change
of
implemen
tation site
N/A
of
investme
nt
projects
Adjustme
nt of the
implemen
N/A
tation
mode of
raised
242023 Interim Report of Luzhou Laojiao Co. Ltd.
funds
investme
nt
projects
Applicable
On 14 May 2019 the Company held the First Extraordinary General Meeting of Shareholders of 2019 which considered and
Situation approved the Proposal on Requesting the Company’s General Meeting of Shareholders to Fully Authorize Chairman of the
of
advance Board or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond.investme According to the Proposal in the event of inconsistency between the payment of the raised funds and the progress of the project
nt and
replacem implementation the Company may make advance investments using other funds (including self-owned funds bank project
ent loans etc.) according to the actual situation and replace fund investment other than capital funds when the raised funds are in
place. As of 30 June 2023 the Company had replaced advance investments of self-pooled funds of CNY 573178496.64 using
the raised funds.Idle
raised
funds
used for
temporar N/A
y
suppleme
ntary
liquidity
Amount
and
reason
for N/A
surplus of
funds
raised
Purpose
and The idle raised funds are deposited in the special account No. 9550880046723000135 for raised funds in the Chengdu Branch
whereabo of China Guangfa Bank Co. Ltd. the special account No. 517517460013000000860 for raised funds in the Luzhou Branch of
uts of
unused Bank of Communications Co. Ltd. and the special account No. 631395395 for raised funds in the Chengdu Branch of China
funds Minsheng Banking Corp. Ltd.raised
Problems
and other
situation
when
N/A
raised
funds are
used and
disclosed
Note 1: The subtotal of funds raised for committed projects was CNY 3984 million which was the
combined amount of CNY 4000 million (CNY 2500 million of corporate bonds issued in August 2019
plus CNY 1500 million of corporate bonds issued in March 2020) minus the total issuance costs of
CNY 16 million.Note 2: Because there are uncertainties in the approval and issue time for bond in order to ensure
smooth progress of the projects and protect the interests of the Company’s shareholders the
investment sequence and specific amounts of the corresponding raised funds should be determined
by the Chairman of the Board as authorized by the general meeting of shareholders or other persons
as authorized by the Board of Directors within the scope of the four raised funds investment projects
according to the actual needs provided that the capital funds for each project is no less than 20% of
the total investment.Note 3: As of 30 June 2023 the Project of Intelligent Upgrading and Building of the Information
Management System was in the process.
252023 Interim Report of Luzhou Laojiao Co. Ltd.
Note 4: These raised funds investment projects have helped further expand the Company’s
production and sales and increase its comprehensive competitiveness. The economic benefits of
these projects cannot be measured separately.
6.5.3. Re-purposed funds raised
□ Applicable □ N/A
No such cases in the reporting period
7. Sale of major assets and equity interests
7.1. Sale of major assets
□ Applicable □ N/A
No such cases in the reporting period.
7.2. Sale of major equity interests
□ Applicable □ N/A
8. Analysis of major subsidiaries
□ Applicable □ N/A
Main subsidiaries and joint companies with an over 10% influence on the Company’s net profit
Unit：CNY
Company Company Business Registere Total Operating Operating
Net assets Net profit
name type scope d capital assets revenue profit
Luzhou
Laojiao
Luzhou
series
Laojiao 1000000 1130345 7572099 1404711 6996142 5241722
Subsidiary unified
Sales Co. 00.00 9162.06 954.44 1152.15 338.04 614.521
package
Ltd.Baijiu
sales
Note 1: Operating profit and net profit increased year on year mainly due to the increased sales
revenue in the current period.Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ N/A
262023 Interim Report of Luzhou Laojiao Co. Ltd.
Notes for major holding companies and joint stock companies
There were no major holding companies or joint stock companies during the reporting period of which
information shall be disclosed.
9. Structured entities controlled by the Company
□ Applicable □ N/A
10. Risks facing the Company and countermeasures
A. Macroeconomic risk. The baijiu industry has a strong relevance with the macroeconomy. At present
the economy is in a major process of factor-driven shift to high-quality development and there are
problems such as insufficient domestic demand complex and severe external environment and
tortuous economic recovery which may have an impact on the industry and enterprises. In this regard
the Company will face up to the impact of the economic environment maintain strategic
determination boost confidence in development strengthen the spirit of optimism competition
innovation and solidarity and endeavor to embark on a new journey of high-quality development.B. Risk of aggravating industrial competition. In recent years the baijiu output and the number of
large enterprises have declined while the concentration has climbed continuously intensifying the
industry competition. To this end the Company will adhere to the blueprint always move forward in
the right direction with exertion courage and determination and compete for new development
opportunities in industry concentration and brand competition with a long history deep culture strong
technology and excellent quality.
272023 Interim Report of Luzhou Laojiao Co. Ltd.
Section IV Corporate Governance
1. Annual and extraordinary general meeting of shareholders
convened during the reporting period
1.1 General meeting of shareholders convened during the reporting period
Investor Date of the Date of Resolution of the
Meeting Type
participation ratio meeting disclosure meeting
Announcement
No.: 2023-19 of
Luzhou Laojiao
Co. Ltd. on
The 2022 Annual Annual General
Resolutions of
General Meeting Meeting of 63.51% 29 June 2023 30 June 2023
the 2022 Annual
of Shareholders Shareholders
General Meeting
of Shareholders
(http://www.cninf
o.com.cn/)
1.2 Extraordinary general meetings of shareholders convened at the request of
preference shareholders with resumed voting rights
□ Applicable □ N/A
2. Changes in directors supervisors and senior management
□ Applicable □ N/A
Name Title Type Date Reason
Li Yong Secretary of the board Appointed 9 March 2023
Wang Hongbo Secretary of the board Resignation 3 March 2023 Voluntary resignation
3. Profit distribution and converting capital reserves into share capital
for the reporting period
□ Applicable □ N/A
The Company has no interim dividend plan either in the form of cash or stock.
282023 Interim Report of Luzhou Laojiao Co. Ltd.
4. Implementation of any equity incentive plan employee stock
ownership plan or other incentive measures for employees
□ Applicable □ N/A
4.1. Equity incentives
A. On 26 September 2021 relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co. Ltd. were approved at the Seventh Meeting
of the 10th Board of Directors and the Third Meeting of the 10th Board of Supervisors of the Company
respectively.B. On 2 December 2021 the Company received the Approval of Luzhou State-owned Assets
Supervision and Administration Commission on the Implementation of the Second Phase of the Equity
Incentive Plan for Listed Companies by Luzhou Laojiao Co. Ltd. (L.G.Z.K.P. [2021] No. 62) from the
Luzhou State-owned Assets Supervision and Administration Commission which approved in principle
to the implementation of the Restricted Share Incentive Plan by the Company.C. On 24 December 2021 the Board of Supervisors of the Company issued the review opinion i.e.Explanation on the Review and Announcement of the List of Awardees of the 2021 Restricted Share
Incentive Plan.D. On 29 December 2021 the relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co. Ltd. were approved at the First
Extraordinary General Meeting of Shareholders of 2021. Meanwhile a self-inspection on the trading of
the Company's shares by insiders of the Incentive Plan and the proposed awardees was conducted
and the Self-Inspection Report on the Trading of the Company's Shares by Insiders and Awardees in
the 2021 Restricted Share Incentive Plan was disclosed.E. On 29 December 2021 the Company held the 12th Meeting of the 10th Board of Directors and the
Sixth Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant
of Restricted Shares to Awardees respectively. The independent directors consented to the relevant
matters.F. On 21 February 2022 the Company disclosed the Announcement on the Completion of Registration
of Restricted Share Grant completed the registration of the first grant of restricted shares. Upon the
registration of the grant 6862600 restricted shares were granted to 437 objects the grant price was
CNY 92.71 per share and the listing date was 22 February 2022.G. On 25 July 2022 the Company held the 18th Meeting of the 10th Board of Directors and the Ninth
Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
292023 Interim Report of Luzhou Laojiao Co. Ltd.
matter.H. On 4 August 2022 the Board of Supervisors of the Company issued the review opinion i.e.Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.I. On 2 September 2022 the Company held the 22nd Meeting of the 10th Board of Directors and the
13th Meeting of the 10th Board of Supervisors at which the Proposal on the Repurchase and
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal on
the Adjustment of the Granted Price of Reserved Restricted Shares of 2021 Restricted Share Incentive
Plan were reviewed and approved respectively. In accordance with the relevant provisions of the
incentive plan of the Company and the authorization of the First Extraordinary General Meeting of
Shareholders of 2021 the Board of Directors of the Company agreed to adjust the grant price and
repurchase price of the reserved restricted shares under the incentive plan from CNY 92.71 per share
to CNY 89.466 per share in view of the implementation of the Company's profit distribution plan for
2021. The independent directors consented to this matter.
J. On 3 September 2022 the Company disclosed the Announcement on the Repurchase and
Cancellation of Some Restricted Shares to Reduce Registered Capital and Notice to Creditors. By the
expiration of the declaring period the Company had not received any declaration from the relevant
creditors for early payout of debts or provision of guarantee.K. On 26 September 2022 the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares 342334 restricted shares
were granted to 46 objects the grant price was CNY 89.466 per share and the listing date was 28
September 2022.L. On 29 November 2022 the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Some Restricted Shares. The Company proposed to repurchase and
cancel a total of 62310 restricted shares granted but not lifted from restricted sales. As at 29 November
2022 the Company completed the aforesaid repurchase and cancellation of restricted shares.
M. On 29 December 2022 the Company held the 26th Meeting of the 10th Board of Directors and the
15th Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.N. On 13 January 2023 the Board of Supervisors of the Company issued the review opinion i.e.Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.O. On 16 February 2023 the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
302023 Interim Report of Luzhou Laojiao Co. Ltd.
Plan. Upon the registration of the grant of the reserved restricted shares 92669 restricted shares were
granted to 17 objects the grant price was CNY 89.466 per share and the listing date was 17 February
2023.
4.2. Implementation of employee stock ownership plans
□ Applicable □ N/A
4.3. Other incentive measures for employees
□ Applicable □ N/A
312023 Interim Report of Luzhou Laojiao Co. Ltd.
Section V Environmental and Social Responsibility
1. Information about environment protection
Whether the listed company and its subsidiaries belong to heavy polluting industries prescribed by
the environmental protection department
□ Yes □ No
Policies and industry standards on environmental protection
In the process of production and operation the Company strictly follow the laws regulations and
industry standards related to environmental protection such as the Environmental Protection Law of
the People's Republic of China Law of the People's Republic of China on Environmental Impact
Assessment Law of the People's Republic of China on Atmospheric Pollution Prevention and Control
Law of the People's Republic of China on Water Pollution Prevention and Control Administrative
Measures for the Legal Disclosure of Enterprise Environmental Information Regulations on the
Administration of Environmental Protection of Construction Projects of the People's Republic of China
Regulations on Administration of Pollutant Discharge Permits Policies and Industry Standards on
Environmental Protection Standard for Pollution Control on Hazardous Waste Storage Standards for
the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry Regulations on the
Prevention and Control of Environmental Pollution by Solid Waste in Sichuan Province and
Regulations on Environmental Protection of Sichuan Province.Environmental protection administrative permission
In the first half of 2023 the Company obtained six ecological and environmental administrative
permits including a total of three permits for change and renewal of discharge permits and three
approval of environmental impact assessment reports.Review and
Name of Acquiring
Administrative permit No. issuance Valid term Permitted matter Remark
permit time
authority
Concentration limit on
Discharge
Luzhou fugitive emission of air
Permit for
Municipal pollutants: 2.0 mg/Nm3 for
Luzhou Laojiao 17 April
91510500204706718H002V Ecology and 5 years non-methane hydrocarbon Change
Co. Ltd. 2023
Environment (NMHC) and 20
(Xiaoshi
Bureau dimensionless for odor
Brewery Base)
concentration.Discharge Permitted annual discharge
Luzhou
Permit for limits for wastewater:
Municipal
Luzhou Laojiao 6 June 440.18t/a for chemical Re-
91510500204706718H004Q Ecology and 5 years
Co. Ltd. 2023 oxygen demand (COD) application
Environment
(Huangyi 33.01t/a for ammonia
Bureau
Brewery Eco- nitrogen 55.02t/a for total
322023 Interim Report of Luzhou Laojiao Co. Ltd.
Park) nitrogen (TN) and 3.3t/a for
total phosphorus (TP).Luzhou Laojiao Permitted annual organized
Brewing Co. Luzhou emission limits for air
Ltd. (Energy Municipal pollutants: 8.64t/a for
30 March
Center of 91510500204755181G002V Ecology and 5 years particulate matters 18.88t/a Change
2023
Sichuan Luzhou Environment for sulfur dioxide and
Baijiu Industrial Bureau 136.08t/a for nitrogen
Park) oxides.In the 19# and 20#
workshops in the south area
of Sichuan Luzhou Baijiu
Industrial Park three 7000-
bottle/h manual filling
Reply to the
production lines were
Report of
utilized and supported with
Luzhou Laojiao
new equipment such as
on the Luzhou
code-scanning devices for
Environmental Municipal
1 March the production of small- Newly
Impact of Phase L.SH.H.J.H. [2023] No. 21 Ecology and Permanent
2023 scale and customized baijiu acquired
I Construction Environment
products and one 24000-
Project of Bureau
bottle/h filling line was newly
Flexible
added for the production of
Intelligent Filling
a wide range of small-
Pilot Line
volume products. After the
project is completed and put
into production a baijiu
filling capacity of 27000
tons/year will be developed.A 5000-bottle/h filling line
Reply to the
was constructed in 18#
Report of
workshop in the south area
Luzhou Laojiao
of Sichuan Luzhou Baijiu
on the Luzhou
Industrial Park for the
Environmental Municipal
1 March automated production of Newly
Impact of Phase L.SH.H.J.H. [2023] No. 19 Ecology and Permanent
2023 small-scale and customized acquired
II Construction Environment
gift-boxed products. After
Project of Bureau
the project is completed and
Flexible
put into production a baijiu
Intelligent Filling
filling capacity of 9600
Pilot Line
tons/year will be developed.An 8000-bottle/h of
Reply to the
conventional production and
Report of
packaging line for custom
Luzhou Laojiao
products a 3000-bottle/h of
Custom Liquor
production and packaging
Co. Ltd. on the
line for shaped-bottle
Environmental Luzhou
custom products and a box
Impact of No. Municipal
1 March packaging line for small Newly
21 Production L.SH.H.J.H. [2023] No. 20 Ecology and Permanent
2023 single personalized custom acquired
Workshop Environment
products were constructed
Renovation Bureau
in 21# workshop in the
Project in the
south area of Sichuan
South Area of
Luzhou Baijiu Industrial
Huangyi
Park. After the project is
Brewery Eco-
completed and put into
Park
production a baijiu filling
332023 Interim Report of Luzhou Laojiao Co. Ltd.
capacity of 7000 tons/year
will be developed.Industry discharge standards and pollutants in producing and operating activities
Type of Name of
main main Number Distributi Emission
Discharg Pollution Approved Excessiv
Company pollutant pollutant of on of concentra Total
e discharge total e
name and and discharge discharge tion/inten emission
type standard emission discharge
particular particular outlet outlet sity
pollutant pollutant
Luzhou Water Luohan Direct 21.72mg/
Laojiao COD 1 Brewery
discharge 50mg/L 4.2256t 23.183t/a No
Co. Ltd. pollutant Eco-Park L
Luzhou Luohan
Water Ammonia Direct
Laojiao 1 Brewery
nitrogen discharge 0.34mg/L 5mg/L 0.0385t 2.017t/a No
Co. Ltd. pollutant Eco-Park
Luzhou Water Luohan Total Direct
Laojiao 1 Brewery
nitrogen discharge 5.72mg/L 15mg/L 1.1287t 5.796t/a No
Co. Ltd. pollutant Eco-Park
Luzhou Total Luohan
Water Direct
Laojiao phosphor 1 Brewery
discharge 0.07mg/L 0.5mg/L 0.0116t 0.232t/a No
Co. Ltd. pollutant us Eco-Park
Luzhou Air Organize Luohan
Laojiao PM d 2 Brewery 0.95mg/L 20mg/m3 0.0640t 3.900t/a No
Co. Ltd. pollutant discharge Eco-Park
Luzhou Organize Luohan
Air Sulfur
Laojiao d 2 Brewery
dioxide 0.62mg/L 50mg/m
3 0.0474t 11.500t/a No
Co. Ltd. pollutant discharge Eco-Park
Luzhou Organize Luohan
Air Oxynitrid 34.06mg/ 150mg/m
Laojiao d 2 Brewery
e 2.3940t 45.400t/a No
Co. Ltd. pollutant
3
discharge Eco-Park L
Luzhou Water Huangyi Indirect 29.30mg/ 440.180t/
Laojiao COD 1 Brewery
discharge 400mg/L 8.1865t No
Co. Ltd. pollutant Eco-Park L a
Luzhou Huangyi
Water Ammonia Indirect
Laojiao 1 Brewery
nitrogen discharge 0.57mg/L 30mg/L 0.1662t 33.010t/a No
Co. Ltd. pollutant Eco-Park
Luzhou Water Huangyi Total Indirect 16.94mg/
Laojiao 1 Brewery 50mg/L 4.7322t 55.020t/a No
Co. Ltd. pollutant
nitrogen discharge
Eco-Park L
Luzhou Total Huangyi
Water Indirect
Laojiao phosphor 1 Brewery 0.74mg/L 3.0mg/L 0.2080t 3.300t/a No
Co. Ltd. pollutant
discharge
us Eco-Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air
Dust d 2 Luzhou 3
Brewing 1.12mg/L 5mg/m 0.4049t 5.640t/a No pollutant discharge Baijiu
Co. Ltd.Industrial
Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air
PM d 1 Luzhou 3
Brewing 0 20mg/m 0 3.000t/a No pollutant discharge Baijiu
Co. Ltd.Industrial
Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air Sulfur
d 2 Luzhou
Brewing dioxide 0.49mg/L 35mg/m
3 0.1578t 16.680t/a No
pollutant discharge Baijiu
Co. Ltd.Industrial
Park
Energy
Center of
Luzhou
Air Organize Sichuan Laojiao Sulfur
d 1 Luzhou 3
Brewing dioxide 0 50mg/m 0 2.200t/a No pollutant discharge Baijiu
Co. Ltd.Industrial
Park
Energy
Luzhou Center of
Organize
Laojiao Air Oxynitrid Sichuan 42.53mg/ 100mg/m
d 2
Brewing e Luzhou 15.1651t 113.400/a No pollutant 3discharge L
Co. Ltd. Baijiu
Industrial
342023 Interim Report of Luzhou Laojiao Co. Ltd.
Park
Energy
Center of
Luzhou
Air Organize Sichuan Laojiao Oxynitrid 150mg/m 22.680
d 1 Luzhou
Brewing e 0 0 / pollutant 3discharge Baijiu t/a
Co. Ltd.Industrial
Park
Treatments of pollutants
A. Waste water: Areas of the Company that produce wastewater are National Cellar Zaojiaoxiang
Brewery Base Xiaoshi Brewery Base Anning Technology Park Luohan Brewery Eco-Park and
Huangyi Brewery Eco-Park. In National Cellar Zaojiaoxiang Brewery Base Xiaoshi Brewery Base and
Anning Technology Park the high-concentration brewing wastewater is temporarily collected in pools
(or tanks) and is later transferred to the wastewater treatment station of Huangyi Brewery Eco-Park by
truck for treatment. The wastewater treatment stations of Luohan Brewery Eco-Park and Huangyi
Brewery Eco-Park are equipped with online monitors to automatically monitor COD ammonia nitrogen
total phosphorus total nitrogen pH value and flows and transmit the monitoring data to the supervision
platform of the higher authority. The Company's facilities for prevention and control of wastewater
pollution are under normal operations ensuring up-to-standard discharge through general discharging
outlets. Compared with last year suspended matter discharge was reduced by 50.36% and COD
discharge by 6.36%.B. Waste gas: Areas of the Company that produce exhaust gas are National Cellar Zaojiaoxiang
Brewery Base Xiaoshi Brewery Base Luohan Brewery Eco-Park and Huangyi Brewery Eco-Park. In
National Cellar Brewery Base natural gas boilers are used while in Xiaoshi Brewery Base and
Zaojiaoxiang Brewery Base direct-fired bottom boilers are used. The natural gas boilers of Luohan
Brewery Eco-Park (20t/h 30t/h) and the natural gas boilers of Huangyi Brewery Eco-Park (20t/h 75t/h
75t/h) are equipped with online monitors to automatically monitor exhaust gas and transmit the
monitoring data to the supervision platform of the higher authority. Low NOx combustion technology is
adopted for the natural gas boilers. The Company's facilities for prevention and control of exhaust gas
pollution are under normal operations ensuring up-to-standard emission of exhaust gas through outlets.Compared with last year PM discharge was reduced by 24.96% and sulphur dioxide discharge by
9.64%.
Emergency plan for environmental emergencies
In the first half of 2023 the Company organized the revision and issuance of the Contingency Plan for
Environmental Emergencies in Jiangyang District of Luzhou Laojiao Co. Ltd. (2023) the Contingency
Plan for Environmental Emergencies in Longmatan District of Luzhou Laojiao Co. Ltd. (2023) and
completed the corresponding Report on Environmental Emergency Resource Investigation
Environmental Risk Assessment Report Special Contingency Plan and On-site Disposal Plan.Input in environmental management and protection and the payment of environmental protection-
related taxes
During the Reporting Period more than CNY 4.9 million was input in environmental governance and
protection and CNY 83.2 thousand was paid in environmental protection tax as required.
352023 Interim Report of Luzhou Laojiao Co. Ltd.
Environmental self-monitoring plan
Monitoring
Monitoring Implementation Monitoring Monitoring
Monitoring site Emission limit compliance rate
indicator standard frequency form
in H1 2023
Odor
concentration Emission Standards
20 (dimensionless)
for Odor Pollutants
Hydrogen sulfide 0.06 mg/m3
Unorganized (GB14554- 93)
Ammonia 1.5 mg/m3
monitoring
points 1#-4# for Sichuan Emission
the exhaust gas Control Standard for 3 1 time/half-year Manual 100%
emission outlets NMHC Volatile Organic 2 mg/m
of Luohan Compounds
Brewery Eco- (DB51/2377-2017)
Park Integrated Emission
Particulate Standards for Air
1 mg/m3
matters Pollutants (GB16297-
1996)
Exhaust gas Ringelman
≤ 1 Manual
emission outlets emittance
Emission Standards
DA022 DA021 Nitrogen oxide for Air Pollutants for 150 mg/m
3
(unused) and Particulate 1 time/quarter 100% Boiler (GB13271-
DA020 of 20 mg/m
3
matters 2014) Automatic
Luohan Brewery
Eco-Park Sulfur dioxide: 50 mg/m
3
15000
Exhaust gas Hydrogen sulfide /
emission outlet Emission Standards
/
DA019 of Ammonia for Odor Pollutants 1 time/half-year Manual 100%
1.8 kg/h
Luohan Brewery (GB14554- 93)
Eco-Park Odor /
concentration 27 kg/h
240 mg/m3
Sulfur dioxide:
Integrated Emission 0.77 kg/h
Particulate Standards for Air 120 mg/m3
Exhaust gas matters Pollutants (GB16297- 3.5 kg/h
emission outlet 1996) 550 mg/m3
DA018 of Nitrogen oxide 2.6 kg/h 1 time/quarter Manual 100%
Luohan Brewery
Sichuan Emission
Eco-Park
Control Standard for
Volatile organic 60 mg/m3
Volatile Organic
compounds 3.4 kg/h
Compounds
(DB51/2377-2017)
Exhaust gas Sichuan Emission
emission outlet Control Standard for
60 mg/m3
DA017 of NMHC Volatile Organic 1 time/quarter Manual 100%
3.4 kg/h
Luohan Brewery Compounds
Eco-Park (DB51/2377-2017)
Exhaust gas
emission outlets Integrated Emission
DA001-DA016 Particulate Standards for Air
120 mg/m3 1 time/half-year Manual 100%
of Luohan matters Pollutants (GB16297-
Brewery Eco- 1996)
Park
Flow /
PH value 6-9
Main outlet COD Standards for the 50 mg/L
DW001 of the 1 time/quarter Automatic Ammonia Emission of Water
wastewater 5 mg/L nitrogen Pollutants in the
treatment station 100%
Fermented Alcohol
of Luohan TP 0.5 mg/L
TN and Baijiu Industry Brewery Eco- 15 mg/L
(GB27931-2011)
Park Suspended
20 mg/L
solids
1 time/month Manual
Five-day BOD 20mg/L
Chroma 20
Suspended Standards for the
Rainwater 20 mg/L 1 time/month (1
solids Emission of Water
outlets DW002- time/quarter in
Pollutants in the
DW006 of case of no Manual 100%
Fermented Alcohol
Luohan Brewery COD 50 mg/L abnormalities and Baijiu Industry
Eco-Park monitored)
(GB2731-2011)
Noise monitoring Emission Standard Daytime: 60 dB (A);
Boundary noise 1 time/quarter Manual 100%
points 1-4# at for Noise of Industrial nighttime: 50 dB (A)
362023 Interim Report of Luzhou Laojiao Co. Ltd.
the boundary of Enterprises at
Luohan Brewery Boundary (GB12348-
Eco-Park 2008)
Circulating
cooling water
outlet DW002 of
the Energy PH value COD
/ / 1 time/quarter Manual 100%
Center of TP
Sichuan Luzhou
Baijiu Industrial
Park
PH value 6-9
Total dissolved
/
Wastewater solids (TDS)
outlet DW001 of Suspended
solids Integrated
140 mg/L
the Energy
Center of Five-day BOD
Wastewater 80 mg/L 1 time/quarter Manual 100%
Discharge Standard
Sichuan Luzhou COD 400 mg/L
(GB8978-1996)
Baijiu Industrial TN 50 mg/L
Park Ammonia
30 mg/L
nitrogen
TP 3 mg/L
Boiler exhaust Ringelman
≤ 1 Manual
gas vents emittance
Emission Standard of
DA001-DA002 Nitrogen oxide 3Air Pollutants for 100 mg/m
of the Energy Soot 3Thermal Power 5 mg/m 1 time/quarter 100%
Center of
Plants (GB13223- Automatic
Sichuan Luzhou
2011)3
Baijiu Industrial Sulfur dioxide: 35 mg/m
Park
Boiler exhaust Ringelman
≤ 1 Manual
gas vent DA003 emittance
Emission Standards
of the Energy Nitrogen oxide 3for Air Pollutants for 150 mg/m 1 time/quarter
Center of Particulate 100% Boiler (GB13271- 3
Sichuan Luzhou 20 mg/m matters 2014) Automatic
Baijiu Industrial
Park Sulfur dioxide: 50 mg/m
3
Rainwater Suspended Standards for the
50 mg/L 1 time/month (1
outlets DW004- solids Emission of Water
time/quarter in
DW010 of Pollutants in the
case of no Manual 100%
Huangyi Fermented Alcohol
Brewery Eco- COD and Baijiu Industry 100 mg/L
abnormalities
monitored)
Park (GB2731-2011)
Odor
Emission Standards 20 (dimensionless) concentration
for Odor Pollutants
Hydrogen sulfide 0.06 mg/m3
(GB14554-93)
Unorganized Ammonia 1.5 mg/m3
monitoring Sichuan Emission
points 1#-4# at Control Standard for
the boundary of NMHC Volatile Organic 2 mg/m3 1 time/quarter Manual 100%
Huangyi Compounds
Brewery Eco- (DB51/2377-2017)
Park Integrated Emission
Particulate Standards for Air
1 mg/m3
matters Pollutants (GB16297-
1996)
DA041 and Odor 2000
DA042 of concentration Emission Standards (dimensionless)
Huangyi Ammonia for Odor Pollutants 4.9 kg/h 1 time/half-year Manual 100%
Brewery Eco- (GB14554- 93)
Park Hydrogen sulfide 0.33 kg/h
DA087 DA096-
Sichuan Emission
DA097 and
Control Standard for
DA072-DA075 60 mg/m3
NMHC Volatile Organic 1 time/quarter Manual 100%
of Huangyi 4.76 kg/h
Compounds
Brewery Eco-
(DB51/2377-2017)
Park
DA034-DA040
DA043-DA070
DA076-DA086
Integrated Emission
DA088-DA095
Particulate Standards for Air
DA098 and 120 mg/m3 1 time/half-year Manual 100%
matters Pollutants (GB16297-
DA099 of
1996)
Huangyi
Brewery Eco-
Park
Main outlet of Flow Standards for the / 1 time/quarter Automatic
100%
the wastewater PH value Emission of Water 6-9
372023 Interim Report of Luzhou Laojiao Co. Ltd.
treatment station COD Pollutants in the 400 mg/L
of Huangyi Ammonia Fermented Alcohol
Brewery Eco- 30 mg/L nitrogen and Baijiu Industry
Park TP (GB2731-2011) 3 mg/L
TN 50 mg/L
Suspended
140 mg/L
solids
1 time/month Manual
Five-day BOD 80 mg/L
Chroma 80
Noise monitoring
Emission Standard
points 1-4# at
for Noise of Industrial
the boundary of Daytime: 65 dB (A);
Boundary noise Enterprises at 1 time/quarter Manual 100%
Huangyi nighttime: 55 dB (A)
Boundary (GB12348-
Brewery Eco-
2008)
Park
Emission Standards
Odor
for Odor Pollutants 20
Unorganized concentration
(GB14554- 93)
monitoring
points 1#-7# at Sichuan Emission 1 time/half-year Manual 100%
Xiaoshi Brewery Control Standard for
NMHC Volatile Organic 2.0 mg/m3
Base
Compounds
(DB51/2377-2017)
Boiler exhaust Ringelman
emittance Emission Standards
≤1
gas vents
for Air Pollutants for 1 time/year
DA001-DA010 Soot 20 mg/m3 Manual 100%
Boiler (GB13271-
of Xiaoshi Sulfur dioxide: 32014) 50 mg/m
Brewery Base Nitrogen oxide 150 mg/m3 1 time/month
Noise monitoring Emission Standard
points at the for Noise of Industrial
boundary of Boundary noise Enterprises at Daytime: 60 dB (A) 1 time/quarter Manual 100%
Xiaoshi Brewery Boundary (GB12348-
Base 2008)
Emission Standards
Unorganized Odor
for Odor Pollutants 20
monitoring concentration (GB14554- 93)
points of
National Cellar Sichuan Emission 1 time/half-year Manual 100%
Control Standard for
and
Zaojiaoxiang NMHC Volatile Organic 2.0 mg/m
3
Compounds
Brewery Bases
(DB51/2377-2017)
Boiler exhaust Ringelman
≤1
gas vents emittance
Emission Standards
DA001-DA003 3 1 time/year Soot for Air Pollutants for 20 mg/m
of National Sulfur dioxide: 3 Manual 100% Boiler (GB13271- 50 mg/m
Cellar and
2014)
Zaojiaoxiang Nitrogen oxide 150 mg/m3 1 time/month
Brewery Bases
Noise monitoring
points at the Emission Standard
boundary of for Noise of Industrial
National Cellar Boundary noise Enterprises at Daytime: 60 dB (A) 1 time/quarter Manual 100%
and Boundary (Class 4
Zaojiaoxiang for street frontage)
Brewery Bases
Rainwater outlet Suspended Standards for the
20 mg/L 1 time/month (1
DW003 of solids Emission of Water
time/quarter in
National Cellar Pollutants in the
case of no Manual 100%
and Fermented Alcohol
COD 50 mg/L abnormalities
Zaojiaoxiang and Baijiu Industry
monitored)
Brewery Bases (GB2731-2011)
Administrative penalties received in the reporting period due to environmental issues
The Company or Reason for Impact on the
Regulation violated Penalties Rectification
subsidiary penalties Company
N/A
Other information about environmental protection that should be disclosed
N/A
382023 Interim Report of Luzhou Laojiao Co. Ltd.
Measures taken to reduce carbon emissions during the reporting period and the results
□ Applicable □ N/A
The Company reduced CO2 emissions through resource recycling. It developed a WSR energy-
saving system for bran steamers and achieved the pressure recovery and utilization of waste heat
steam through the exchange of waste heat steam of the bran steamer. During the Reporting Period
the energy-saving system saved steam of approximately 7995 tons and reduced carbon dioxide of
approximately 1900 tons. The Company recycled the marsh gas generated from the wastewater
treatment process as boiler fuel with more than 1.7 million cubic meters of marsh gas recycled during
the Reporting Period and more than 25000 tons of carbon dioxide emissions were reduced.Other information about environment protection
N/A
2. Social responsibility
The Company effectively enhanced its political and social responsibilities thoroughly implemented
the arrangements and deployments by the Party committees at all levels for rural revitalization
consolidated and expanded the results of poverty alleviation with high quality and solidly promoted
comprehensive rural revitalization. In the first half of 2023 the Company went to Xiangtian Village
Longshan Township Gulin County to carry out 2023 Chinese New Year greeting activities
distributing cash and supplies to 467 poverty-stricken households needy households and ordinary
farmers. It launched the 2022 Leaders in Rural Revitalization and Moral Awards as well as Advanced
Models to select excellent contributors and distribute incentives to them. In addition the Company
launched public welfare activities such as the Public Service Action of the National Team and the
"Rural Revitalization" Public Welfare Project of Luzhou Laojiao as well as the distribution of chicks in
2023. The Company visited Guntang Village Maiwa Township Hongyuan County for the 2023
Chinese New Year greeting activities distributing cash and supplies to 101 assisted households. CNY
670000 was donated to support rural revitalization projects such as infrastructure construction. The
Company continuously carried out the activity of "purchase instead of donation" by buying designated
supported agricultural products with CNY 1011200. The Company's village members stationed in
Guntang Village Maiwa Township Hongyuan County were awarded the "Excellent Village Members
in Aba Prefecture" and Guntang Village under the paired assistance of the Company was awarded
the "Excellent Key Village of Rural Revitalization in Aba Prefecture".
392023 Interim Report of Luzhou Laojiao Co. Ltd.
Section VI Significant Events
1. Undertakings of the Company's actual controller shareholders
related parties and acquirer 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
No such cases in the reporting period.
2. Occupation of the Company's fund by the controlling shareholder or
its related parties for non-operating purposes
□ Applicable □ N/A
No such cases in the reporting period.
3. Irregularities in the provision of guarantees
□ Applicable □ N/A
No such cases in the reporting period.
4. Engagement and disengagement of CPAs firm
Are the interim financial statements audited
□ Yes □ No
The interim financial statements are not audited.
402023 Interim Report of Luzhou Laojiao Co. Ltd.
5. Explanation of the board of directors and the board of supervisors
regarding the "Non-standard audit opinion" for the reporting period
□ Applicable □ N/A
6. Explanations of the board of directors regarding the "Non-standard
audit opinion" of Last Year
□ Applicable □ N/A
7. Bankruptcy and reorganization
□ Applicable □ N/A
No such cases in the reporting period.
8. Litigation
Material litigation and arbitration
□ Applicable □ N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
10000) liability (arbitration) (arbitration)
The Company The Company
filed a lawsuit For the losses applied to
with ABC that the Hunan
Changsha Company Province
Yingxin cannot Higher
Branch over a recover People's Court
deposit through for
dispute and criminal enforcement
the case has execution of the verdict.been The second procedures Hunan
completed in trial has been 40% shall be Province
See Section
the first concluded borne by ABC Higher
15 October VI “Otherinstance of 14942.5 No and the case Changsha
People's Court
Hunan is now at the Yingxin ruled that
2014 significantHunan events” Province stage of Branch 20%
Higher enforcement. shall be borne Changsha
People's Court by ABC Intermediate
and the final Changsha People’s Court
trial of the Hongxin should see to
Supreme Branch and the execution
People's the rest shall of the verdict.Court. The be borne by Upon the
case is now at the Company enforcement
the stage of itself. the banks
enforcement. have paid part
of the
412023 Interim Report of Luzhou Laojiao Co. Ltd.
compensation
s.The banks
have paid part
of the
compensation
s. As there
ICBC
was a dispute
The Company Nanyang
over the
filed a lawsuit Zhongzhou
verdict the
with ICBC Branch ICBC
Company
Nanyang Nanyang
applied to
Zhongzhou Branch and
Henan
Branch over a Sanya Rural
Province
deposit Commercial
Higher
dispute and Bank Hongsha
People's Court
the case has Branch shall
for
been The second pay
enforcement
completed in trial has been compensation
of the verdict. See Section
the first concluded s of CNY 75Henan 10 January VI “Otherinstance of 15000 No and the case million CNY Province 2015 significant
Henan is now at the 7.5 million andHigher events”
Province stage of CNY 6.105
People's Court
Higher enforcement. million
ruled that
People's Court respectively
Nanyang
and the final with the
Intermediate
trial of the relevant
People’s Court
Supreme interest to the
should see to
People's Company and
the execution
Court. The the rest of the
of the verdict.case is now at loss shall be
The case is
the stage of borne by the
now at the
enforcement. Company
stage of
itself.enforcement
by Nanyang
Intermediate
People’s
Court.Other litigation
□ Applicable □ N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
10000) liability (arbitration) (arbitration)
Other
litigations that
do not meet
the standard No significant
539.08 No Pending Pending
of a material impact
litigation which
is required to
be disclosed
9. Punishments and rectifications
□ Applicable □ N/A
422023 Interim Report of Luzhou Laojiao Co. Ltd.
10. Credit conditions of the Company as well as its controlling
shareholder and actual controller
□ Applicable □ N/A
11. Significant related party transactions
11.1. Related party transactions arising from routine operation
□ Applicable □ N/A
No such cases in the reporting period.
11.2. Related party transactions regarding purchase or sales of assets or equity
interests
□ Applicable □ N/A
No such cases in the reporting period.
11.3. Related party transitions arising from joint investments in external parties
□ Applicable □ N/A
No such cases in the reporting period.
11.4. Credits and liabilities with related parties
□ Applicable □ N/A
No such cases in the reporting period.
11.5. Transactions with related finance companies
□ Applicable □ N/A
The Company did not make deposits in receive loans or credit from and was not involved in any
other finance business with any related finance company or any of its related parties.
432023 Interim Report of Luzhou Laojiao Co. Ltd.
11.6. Transactions between finance companies controlled by the Company and
related parties
□ Applicable □ N/A
No related parties made deposits in received loans or credit from or was involved in any other
finance business with any finance company controlled by the Company.
11.7. Other significant related party transactions
□ Applicable □ N/A
No such cases in the reporting period.
12. Significant contracts and their execution
12.1. Trusteeship contracting and leasing
12.1.1. Trusteeship
□ Applicable □ N/A
No such cases in the reporting period.
12.1.2. Contracting
□ Applicable □ N/A
No such cases in the reporting period.
12.1.3. Leasing
□ Applicable □ N/A
No such cases in the reporting period.
12.2. Major guarantees
□ Applicable □ N/A
No such cases in the reporting period.
442023 Interim Report of Luzhou Laojiao Co. Ltd.
12.3. Entrust assets management
□ Applicable □ N/A
Unit: CNY 10000
Impairment
Fund source for Amount of Overdue allowances for
Type entrusted assets entrusted assets Undue balance outstanding the overdue
management management amount outstanding
amount
Wealth
management
product of Own funds 60000 20000 0 0
securities
company
Wealth
management
Own funds 30000 0 0 0
product of trust
company
Others Own funds 20000 0 0 0
Total 110000 20000 0 0
Particulars of high risk wealth management products with a significant single amount low security
poor liquidity or no principal protection
□ Applicable □ N/A
Expected inability to recover the principal of entrusted assets management or other circumstances
that may result in impairment
□ Applicable □ N/A
12.4. Other significant contracts
□ Applicable □ N/A
No such cases in the reporting period.
13. Other significant events
□ Applicable □ N/A
The Company disclosed in October 2014 and January 2015 respectively the contract disputes
involving three savings deposits of CNY 500 million in total with banks including ABC Changsha
Yingxin Branch and ICBC Nanyang Zhongzhou Branch. Upon criminal booty recovery criminal and
civil enforcement as of the date of this Report the Company had recovered a total amount of CNY
371 million for the three disputes.
See details in the Company’s announcements:
Date of announcement No. Catalogue Official website
Announcement of significant http://www.cninfo.com.cn/ 15 October 2014 2014-35
litigation
452023 Interim Report of Luzhou Laojiao Co. Ltd.
Announcement of significant 12 November 2014 2014-41
litigation progress
Announcement of significant
6 December 2014 2014-43
litigation progress part II
Announcement of significant
10 January 2015 2015-1
events
Announcement of significant 4 February 2015 2015-4
events progress
Announcement of significant 25 March 2015 2015-11
litigation progress part III
Announcement of significant 18 April 2015 2015-20
litigation progress part IV
Announcement of significant
22 April 2015 2015-21
events progress part II
Announcement of significant
24 April 2015 2015-25
litigation progress part V
Announcement of significant 15 July 2015 2015-44
litigation progress part VI
Announcement of significant 22 July 2015 2015-45
litigation progress part VII
Announcement of significant
6 June 2018 2018-17
litigation progress part VIII
Announcement of significant 7 May 2019 2019-11
litigation progress part IX
Announcement of significant
17 May 2019 2019-13
litigation progress part X
Announcement of significant 24 March 2020 2020-6
litigation progress part XI
Announcement of significant 6 May 2020 2020-14
litigation progress part XII
Announcement of significant 7 November 2020 2020-34
litigation progress part XIII
Announcement of significant 6 July 2021 2021-30
litigation progress part XIV
Announcement of significant 15 December 2021 2021-57
litigation progress part XV
Announcement of significant
30 December 2021 2021-64
litigation progress part XVI
14. Significant events of subsidiaries
□ Applicable □ N/A
The Company invested in the technical upgrade program of intelligent brewing (Phase I) with the
wholly-owned subsidiary Brewing Company as the implementer. The total investment amount
approximated CNY 4782.5090 million. For further information see Announcement No. 2022-24 on
the Implementation of Luzhou Laojiao’s Technical Upgrade Program of Intelligent Brewing (Phase I)
by Subsidiary. The program is currently under construction.
462023 Interim Report of Luzhou Laojiao Co. Ltd.
Section VII Changes in Shares and Information about
Shareholders
1. Changes in shares
1.1 Changes in shares
Unit：Share
Before Changes in this period (＋，－) AfterIssuanc Capitalizati
Proportio e of Bonus on of Proportio
Number Other Subtotal Number
n new shares capital n
shares reserves
I.Restricted 7390545 0.50% 92669 -14625 78044 7468589 0.51%
shares
1. Shares
held by the
state
2. Shares
held by
state-
owned
corporatio
ns
3. Shares
held by
other 7390545 0.50% 92669 -14625 78044 7468589 0.51%
domestic
investors
Of which:
shares
held by
domestic
corporatio
ns
Shares
held by
domestic 7390545 0.50% 92669 -14625 78044 7468589 0.51%
individuals
4. Shares
held by
foreign
corporatio
ns
Of which:
shares
held by
foreign
corporatio
ns
Shares
held by
foreign
individuals
II. Non-
restricted 1464504555 99.50% 14625 14625 1464519180 99.49%
shares
1.CNY
common 1464504555 99.50% 14625 14625 1464519180 99.49%
shares
2.
Domestical
ly listed
foreign
shares
3.
Overseas
listed
foreign
shares
4. Other
472023 Interim Report of Luzhou Laojiao Co. Ltd.
III. Total
shares 1471895100 100.00% 92669 92669 1471987769 100.00%
Reasons for the change in shares
□ Applicable □ N/A
The Company’s reserved restricted shares for 2021 Restricted Share Incentive Plan were listed on 17
February 2023 and 92669 restricted shares were added.
14625 locked-up shares of senior management of the Company’s Deputy General Manager Mr.
Shen Caihong were lifted from restricted sales on 3 January 2023.Approval of share changes
□ Applicable □ N/A
On 29 December 2022 the Proposal on the Grant of Reserved Restricted Shares to Awardees was
deliberated and approved at the 26th Meeting of the 10th Board of Directors and the 15th Meeting of
the 10th Board of Supervisors respectively. As such it was decided to grant the restricted shares to
eligible awardees and the grant was completed and registered on 16 February 2023. A total of 92669
restricted shares were granted to 17 awardees as registered which were listed on 17 February 2023.Transfer of share ownership
□ Applicable □ N/A
Implementation progress of shares repurchases
□ Applicable □ N/A
Implementation progress of share buyback reduction through centralized bidding
□ Applicable □ N/A
Effects of changes in shares on the basic EPS diluted EPS net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and the last
reporting period
□ Applicable □ N/A
Other contents that the Company considers it necessary or required by the securities regulatory
authorities to disclose
□ Applicable □ N/A
1.2 Changes in restricted shares
□ Applicable □ N/A
Unit：Share
Number of Decrease in Increase in Number of
Name of Reason for Date of
restricted restricted restricted restricted
shareholder restriction unlocking
shares held at shares during shares during shares held at
482023 Interim Report of Luzhou Laojiao Co. Ltd.
the beginning the reporting the reporting the end of the
of the period period reporting
reporting period
period
For locked-up
shares of
senior
management
25% of such
shares are
unlocked and
become
Locked-up
transferable
shares of
on a yearly
senior
basis as
management
legally
Shen Caihong 180481 14625 0 165856 and shares
allowed. For
granted under
restricted
restricted
shares see
share
Announcemen
incentive plan
t No. 2022-1
on the
Completion of
the Grant of
Restricted
Shares for the
unlocking
dates.In accordance
with the
relevant
provisions
governing
2021 Restricted
lifting the
Restricted shares for
7142624 0 92669 7235293 restriction of
Share equity
the
Incentive Plan incentive
Company’s
2021
Restricted
Share
Incentive Plan
Total 7323105 14625 92669 7401149 -- --
2. Issuance and listing of securities
□ Applicable □ N/A
Name of Offering Number Date of Index to
stock and Date of price (or Number Date of approved terminatio disclosed Date of
derivative offering interest offered listing for public n of informatio disclosure
securities rate) trading trading n
Stocks
CNY 17 Announce 16
Restricted
89.466/sh 92669 February 92669 ment No. February
shares
are 2023 2023-3 on 2023
492023 Interim Report of Luzhou Laojiao Co. Ltd.
the
Completio
n of the
Grant of
Reserved
Restricted
Shares for
2021
Restricted
Share
Incentive
Plan
disclosed
on
www.cninf
o.com.cn
Convertible corporate bonds convertible corporate bonds with warrants or corporate debt
Other derivative securities
Notes to the offering of securities during the reporting periodSee “4. Implementation of any equity incentive plan employee stock ownership plan or otherincentive measures for employees” in “Section IV Corporate Governance”.
3. Total number of shareholders and their shareholdings
Unit：Share
Total number of common Total number of preferred shareholders with
shareholders at the end of 94905 resumed voting rights by the end of the 0
the reporting period reporting period (if any)(see Note 8)
Shareholdings of common shareholders with a shareholding percentage over 5% or the top 10 common shareholders
Total Pledged marked or frozen
common Increase/de Number of Number of shares
Shareholdin shares held crease holding holding non-
Name of Nature of
g by the end during the restricted restricted
shareholder shareholder Status of Number of
percentage of the reporting common common
shares shares
reporting period shares shares
period
Luzhou
Laojiao State-owned
Group Co. corporation 25.89% 381088389 0 0 381088389
Ltd.Luzhou
XingLu
State-owned
Investment
corporation 24.86% 365971142 0 0 365971142
Group Co.Ltd.Hong Kong
Securities
Outbound
Clearing
corporation 3.76% 55338732 9726076 0 55338732
Company
Limited
Bank of
China Co.Ltd. – Baijiu
index
classification
securities Other 2.33% 34242713 -11833513 0 34242713
investment
fund by
China
Merchants
Fund
502023 Interim Report of Luzhou Laojiao Co. Ltd.
China
Securities
Finance Other 2.30% 33842059 0 0 33842059
Corporation
Limited
Bank of
China Co.Ltd.－Blue
chip
selected Other
hybrid 1.48% 21800000 -1130000 0 21800000
securities
investment
fund by E
Fund
Industrial
and
Commercial
Bank of
China Co.Ltd.-Newly
growth Other 1.01% 14929100 -2744677 0 14929100
hybrid
securities
investment
fund by
Invesco
Great Wall
Central
Huijin Asset State-owned
Managemen corporation 0.92% 13539862 0 0 13539862
t Co. Ltd.China Life
Insurance
Company
Limited-
Tradition-
common Other 0.67% 9879080 1285066 0 9879080
insurance
product-
005L－
CT001 Hu
Agricultural
Bank of
China Co.Ltd. -
Consumptio
n industry
Other
stock - 0.64% 9432832 -1140461 0 9432832
based
securities
investment
fund by E
Fund
Strategic investors or
general corporations
become the top-ten
shareholders due to placing N/A
of new shares（if any）（seenote 3）
1. Luzhou Laojiao Group Co. Ltd. and Luzhou XingLu Investment Group Co. Ltd. are both holding state-
owned companies under the jurisdiction of SASAC of Luzhou. The two companies signed the agreement of
persons acting in concert on 31 December 2015. For details please refer to the announcement of the
Company on 5 January 2016 - Announcement on the agreement of persons acting in concert signed by
Related parties or acting-in- shareholders. The announcement number is 2016-1 (http://www.cninfo.com.cn/). The two companies signed
concert the renewed agreement of persons acting in concert on 27 May 2021. For details please refer to the
announcement of the Company on 29 May 2021 - Announcement on the renewed agreement of persons
acting in concert signed by shareholders. The announcement number is 2021-18 (http://www.cninfo.com.cn/).
2. In addition whether there is an association between the remaining shareholders or they belong to persons
acting in concert is unknown.Explain if any of the
shareholders above was
involved in entrusting/being
entrusted with voting rights N/A
or waiving voting rights
Special account for
repurchased shares among N/A
the top 10 shareholders (if
512023 Interim Report of Luzhou Laojiao Co. Ltd.
any) (see note 11)
Shareholdings of the top 10 non-restricted shareholders
Type of shares
Name of shareholder Number of non-restricted shares held in by the end of the reporting period
Type Number
CNY
Luzhou Laojiao Group Co.Ltd. 381088389
common 381088389
shares
CNY
Luzhou XingLu Investment
Group Co. Ltd. 365971142
common 365971142
shares
CNY
Hong Kong Securities
55338732 common Clearing Company Limited 55338732
shares
Bank of China Co. Ltd. –
CNY
Baijiu index classification
common
securities investment fund 34242713 34242713
shares
by China Merchants Fund
CNY
China Securities Finance
Corporation Limited 33842059
common 33842059
shares
Bank of China Co. Ltd.－
CNY
Blue chip selected hybrid
securities investment fund 21800000
common 21800000
shares
by E Fund
Industrial and Commercial
Bank of China Co. Ltd.- CNY
Newly growth hybrid 14929100 common 14929100
securities investment fund shares
by Invesco Great Wall
CNY
Central Huijin Asset
13539862 common Management Co. Ltd. 13539862
shares
China Life Insurance
Company Limited-Tradition- CNY
common
common insurance product- 9879080 9879080
shares
005L－CT001 Hu
Agricultural Bank of China
Co. Ltd. - Consumption CNY
industry stock - based 9432832 common 9432832
securities investment fund shares
by E Fund
The statement of association
or acting-in-concert between
the top 10 shareholders of
unrestricted shares and
between the top 10 See the table above
shareholders of unrestricted
shares and top 10
shareholders
Top 10 common
shareholders participating in
securities margin trading (if N/A
any) (see note 4)
Did any of the top 10 common shareholders or the top non-restricted common shareholders of the
Company conduct any promissory repurchase during the reporting period.□ Yes □ No
The top 10 non-restricted common shareholders the top10 common shareholders did not conduct
any promissory repurchase during the reporting period.
522023 Interim Report of Luzhou Laojiao Co. Ltd.
4. Changes in shares held by directors supervisors and senior
management
□ Applicable □ N/A
Decrease
Increase in Restricted
in Opening Closing
shareholdi shares
Opening shareholdi Closing restricted restricted
Incumbent/ ng in the granted in
Name Office title shareholdi ng in the shareholdi shares shares
former current the current
ng (share) current ng (share) held held
period period
period (share) (share)
(share) (share)
(share)
Deputy
Shen
general Incumbent
Caihong 195575 0 15094 180481 0 0 0
manager
Total -- -- 195575 0 15094 180481 0 0 0
5. Change of controlling shareholder or actual controller
Change of the controlling shareholder during the reporting period
□ Applicable □ N/A
No such cases in the reporting period.Change of the actual controller during the reporting period
□ Applicable □ N/A
The actual controller of the Company has not changed during the reporting period.
532023 Interim Report of Luzhou Laojiao Co. Ltd.
Section VIII Preferred Shares
□ Applicable □ N/A
No preferred stock in the Company during the reporting period.
542023 Interim Report of Luzhou Laojiao Co. Ltd.
Section IX Information about Bond
□ Applicable □ N/A
1. Enterprise bonds
□ Applicable □ N/A
No such cases in the reporting period.
2. Corporate bonds
□ Applicable □ N/A
2.1. Basic information about the corporate bond
Unit: CNY
Way of
Bond Interest Place of
Name Abbr. Code Issue date Value date Due date redemptiobalance rate trading
n
In terms of
the bonds
of this
phase
interests
will be paid
by year
2020 and the
Public principal
Offering of will be
Corporate repaid in
Bond of lump sum
Shenzhen
Luzhou 20 Lao 16 March 17 March 17 March at maturity.Stock
Laojiao Jiao 01 149062.SZ 150000 3.50% 2020 2020 2025 The Exchange
Co. Ltd. interests
for will be paid
Qualified once every
Investors year and
(Phase I) the
interests
for the last
installment
will be paid
together
with the
principal.In terms of
2022 the bonds
Public of this
Offering of phase
Corporate interests
Bond of will be paid
Luzhou 2 2 2 by year Shenzhen 22 Lu Jiao
Laojiao 148133.SZ December December December Stock 01 150000 2.85% and the
Co. Ltd. 2022 2022 2025 principal Exchange
for will be
Profession repaid in
al lump sum
Investors at maturity.(Phase I) The
interests
552023 Interim Report of Luzhou Laojiao Co. Ltd.
will be paid
once every
year and
the
interests
for the last
installment
will be paid
together
with the
principal.The bonds are applicable to eligible investors who have qualified securities accounts with
Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. are permitted to engage
in the subscription and transfer of corporate bonds in accordance with the Management Measures
Appropriate arrangement of the for the Issue and Transaction Management of Corporate Bonds Management Measures for the
investors (if any) Suitability of Securities and Futures Investors Management Measures of Shenzhen Stock
Exchange for the Suitability of Securities Market Investors and relevant laws and regulations and
have the corresponding risk identification and bearing capacity (excluding those prohibited by laws
and regulations)
Trading systems applicable Tradable by way of bidding offering inquiry and agreement
Risk of termination of listing and trading
N/A
(if any) and countermeasures
Overdue bonds
□ Applicable □ N/A
2.2. Triggering and execution of issuer or investor option clauses and investor
protection clauses
□ Applicable □ N/A
2.3. Changes in credit ratings in the reporting period
□ Applicable □ N/A
2.4. Execution and changes with respect to guarantees repayment plans and
other repayment-ensuring measures in the reporting period as well as the impact
on the interests of bond holders
□ Applicable □ N/A
3. Debt instruments as a non-financial enterprise
□ Applicable □ N/A
No such cases in the reporting period.
4. Convertible corporate bonds
□ Applicable □ N/A
562023 Interim Report of Luzhou Laojiao Co. Ltd.
No such cases in the reporting period.
5. Consolidated loss of the reporting period over 10% of net assets as
at the end of last year
□ Applicable □ N/A
6. The major accounting data and the financial indicators of the recent
2 years of the company as of the end of the reporting period
Unit：CNY 10000
Item 30 June 2023 31 December 2022 Change
Current ratio 3.26 3.15 3.49%
Debt/asset ratio 42.72% 33.19% 9.53%
Quick ratio 2.45 2.20 11.36%
H1 2023 H1 2022 Change
Net profits before non-
704093.86549626.5828.10%
recurring gains and losses
EBITDA/debt ratio 80.25% 190.37% -110.12%
Interest cover (times) 37.35 62.60 -40.34%
EBITDA-to-interest cover
38.6465.13-40.67%
(times)
572023 Interim Report of Luzhou Laojiao Co. Ltd.
Section X Financial Report
1. Auditor’s report
Are these interim financial statements audited by an independent auditor
□Yes □ No
The interim financial statements are not audited by an independent auditor.
2. Financial statements
Monetary unit for the financial statements and the notes thereto: CNY
Prepared by: Luzhou Laojiao Co. Ltd.Consolidated balance sheet
As at 30 June 2023
Monetary Unit: CNY
Item Balance as at 30 June 2023 Balance as at 1 January 2023
Current assets:
Cash and cash equivalents 30344475538.13 17757528211.25
Settlement reserves
Lending funds
Held-for-trading financial assets 200056716.13 1073466780.37
Derivative financial assets
Notes receivables
Accounts receivables 14720743.59 5939420.78
Accounts receivables financing 2765330012.77 4583352503.37
Prepayment 182055446.82 114257506.26
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 31543283.03 23396533.98
Including：Interests receivable
Dividends receivable 15482200.48
Buying back the sale of financial
assets
Inventories 10794156136.00 9840742374.85
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 109151844.19 153035946.94
Total current assets 44441489720.66 33551719277.80
Non-current assets:
Disbursement of loans and advances
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2721676735.14 2667500553.17
Investments in other equity 445414722.85 1136736978.11
582023 Interim Report of Luzhou Laojiao Co. Ltd.
instruments
Other non-current financial assets
Investment property 38467435.50 39149454.22
Fixed assets 8616388591.11 8856258598.78
Construction in progress 1209595255.85 808919047.21
Productive biological assets
Oil and gas assets
Use right assets 29616062.33 39952525.63
Intangible assets 3057058000.96 3083271852.79
Development expenses
Goodwill
Long-term deferred expenses 449989.24 710010.92
Deferred tax assets 667166561.57 1005167353.80
Other non-current assets 297385638.50 196095702.09
Total non-current assets 17083218993.05 17833762076.72
Total assets 61524708713.71 51385481354.52
Current liabilities:
Short-term loans
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 2164798164.42 2311665585.04
Advance from customer
Contract liabilities 1933610554.94 2566374718.76
Financial assets sold for repurchase
Deposits from customers and inter-
bank
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee benefits payable 512496183.96 675034885.31
Taxes payable 1266525574.18 3481150728.98
Other payable 7411558110.90 1202409278.49
Including：Interests payable
Dividends payable 6235743174.61 16594850.58
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
80331921.5781879466.63
year
Other current liabilities 251369372.14 333627225.47
Total current liabilities 13620689882.11 10652141888.68
Non-current liabilities:
Insurance contract reserves
Long-term loans 9515100000.00 3179600000.00
Bonds payable 2996918980.27 2996099571.86
Including：Preferred shares
Perpetual bonds
Lease liabilities 26095309.94 29096969.66
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 29474054.74 33704323.80
Deferred tax liabilities 92383522.19 166043663.88
Other non-current liabilities
592023 Interim Report of Luzhou Laojiao Co. Ltd.
Total non-current liabilities 12659971867.14 6404544529.20
Total liabilities 26280661749.25 17056686417.88
Owners' equity
Share capital 1471987769.00 1471895100.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 5004570088.84 4800154468.99
Less: treasury stock 616743610.59 639021998.78
Other comprehensive income 95067381.86 330751245.84
Special reserves
Surplus reserves 1471895100.00 1471895100.00
General risk reserve
Undistributed profits 27659691330.23 26772197213.98
Total equity attributable to owners of
35086468059.3434207871130.03
the parent company
Non-controlling interests 157578905.12 120923806.61
Total owners' equity 35244046964.46 34328794936.64
Total liabilities and owners' equity 61524708713.71 51385481354.52
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Yan Li
Balance sheet of parent company
As at 30 June 2023
Monetary Unit: CNY
Item Balance as at 30 June 2023 Balance as at 1 January 2023
Current assets:
Cash and cash equivalents 29113981970.11 17009231873.64
Held-for-trading financial assets 200056716.13 974505894.18
Derivative financial assets
Notes receivables
Accounts receivables 268133.64 47500.00
Accounts receivables financing
Prepayment 31417459.45 2141256.01
Other receivables 14222162555.22 12042401844.84
Including：Interests receivable
Dividends receivable 15482200.48
Inventories 2109542.02 2499333.08
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 1583315.11 34163.66
Total current assets 43571579691.68 30030861865.41
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 6441833480.01 6278966093.87
Investments in other equity
445110801.221136433056.48
instruments
Other non-current financial assets
Investment property 38467435.50 39149454.22
602023 Interim Report of Luzhou Laojiao Co. Ltd.
Fixed assets 984217783.36 1021509077.72
Construction in progress 53342460.87 49136390.14
Productive biological assets
Oil and gas assets
Use right assets 394608.65 600190.05
Intangible assets 605083818.49 617211243.56
Development expenses
Goodwill
Long-term deferred expenses 311133.65 548507.41
Deferred tax assets 165886388.87 147351049.81
Other non-current assets 26051835.42 14808459.12
Total non-current assets 8760699746.04 9305713522.38
Total assets 52332279437.72 39336575387.79
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 14098047.06 51174790.68
Advance from customer
Contract liabilities 2369943.95 1510508.26
Employee benefits payable 234339145.78 241471148.70
Taxes payable 205614877.02 381259266.93
Other payables 14293353474.50 1730335596.91
Including：Interests payable
Dividends payable 6219148324.03
Liabilities held for sale
Non-current liabilities due within one
71289637.5867673936.27
year
Other current liabilities 308092.71 196366.07
Total current liabilities 14821373218.60 2473621613.82
Non-current liabilities:
Long-term loans 9515100000.00 3179600000.00
Bonds payable 2996918980.27 2996099571.86
Including：Preferred shares
Perpetual bonds
Lease liabilities 205664.46 203920.20
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income
Deferred tax liabilities 59507481.05 132565131.74
Other non-current liabilities
Total non-current liabilities 12571732125.78 6308468623.80
Total liabilities 27393105344.38 8782090237.62
Owners' equity
Share capital 1471987769.00 1471895100.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 4996441364.97 4789603151.65
Less: treasury stock 616743610.59 639021998.78
Other comprehensive income 91695375.87 328542995.36
Special reserves
Surplus reserves 1471895100.00 1471895100.00
Undistributed profits 17523898094.09 23131570801.94
Total owners' equity 24939174093.34 30554485150.17
612023 Interim Report of Luzhou Laojiao Co. Ltd.
Total liabilities and owners' equity 52332279437.72 39336575387.79
Consolidated income statement
Monetary Unit: CNY
Item H1 2023 H1 2022
1. Total operating revenue 14593051774.14 11664377552.94
Including: Operating revenue 14593051774.14 11664377552.94
Interest income
Earned premium
Fee and commission
income
2. Total operating costs 5234429060.11 4392197692.56
Including: Cost of sales 1700263105.68 1642310550.61
Interest expense
Handling charges and
commission expenses
Refunded premiums
Net payments for
insurance claims
Net provision for
insurance contracts
Bond insurance expense
Reinsurance Expenses
Taxes and surcharges 1593958974.95 1045859768.74
Selling and distribution
1463196830.611213861984.66
expenses
General and administrative
539879241.31542666754.49
expenses
Research and Development
62914698.9974487055.16
expenses
Financial expenses -125783791.43 -126988421.10
Including：Interest expenses 261543693.36 119589682.10
Interest income 384116432.10 237072806.72
Plus: Other income 23395940.16 10744728.17
Investment income ("-" for losses) 85024194.55 57499481.86
Including: income from
investment in associates and joint 70278286.49 37796914.64
ventures
Income from the
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Foreign exchange gains ("-"
for losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
32781678.425862846.29values(“-“ for losses)Credit impairment losses (“-”
130161.94-584263.98
for losses)Impairment losses(“-“ forlosses)
Gains from disposal of
-477479.3819789402.07
assets("-" for losses)
3. Operating profits ("-" for losses) 9499477209.72 7365492054.79
Plus: non-operating income 14479518.98 11135733.33
Less: non-operating expenses 6972586.95 1949009.51
622023 Interim Report of Luzhou Laojiao Co. Ltd.
4. Total profits before tax ("-" for
total losses) 9506984141.75 7374678778.61
Less: income tax expenses 2385359516.12 1800020542.39
5. Net profit ("-" for net loss) 7121624625.63 5574658236.22
5.1 By operating continuity
5.1.1 Net profit from continuing
7121624625.635574658236.22
operation ("-" for losses)
5.1.2 Net profit from discontinued
operation ("-" for losses)
5.2 By ownership
1) Attributable to shareholders of the
7090426787.075531926340.44
parent company ("-" for losses)
2) Attributable to non-controlling
31197838.5642731895.78
interests ("-" for losses)
6. Net of tax from other
comprehensive income -218514527.93 -25120502.64
Net of tax from other comprehensive
income to the owner of the parent -219468210.77 -26408043.89
company
6.1 Other comprehensive income
cannot reclassified into the profit and -221898677.10 -18914133.57
loss:
1) Remeasure the variation of net
indebtedness or net asset of defined
benefit plans
2) Share in other comprehensive
income that cannot be classified into 131244.39
profit and loss under equity method
3) Changes in fair value of
investments in other equity -222029921.49 -18914133.57
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
6.2 Other comprehensive income
that will be reclassified into the profit 2430466.33 -7493910.32
and loss
1) Share in other comprehensive
income that will be classified into 1266710.82 -9066533.27
profit and loss under equity method
2) Changes in fair value of
investments in other debt obligations
3) Other comprehensive income
arising from the reclassification of
financial assets
4) Allowance for credit impairments in
investments in other debt obligations
5) Reserve for cash-flow hedge
6) Balance arising from the
translation of foreign currency 1163755.51 1572622.95
financial statements
7) Others
Net of tax from other comprehensive
953682.841287541.25
income to non-controlling interests
7. Total comprehensive income 6903110097.70 5549537733.58
Total comprehensive income
attributable to owners of the parent 6870958576.30 5505518296.55
company
Total comprehensive income
attributable to non-controlling 32151521.40 44019437.03
interests
8. Earnings per share
(1) Basic earnings per share 4.82 3.76
(2) Diluted earnings per share 4.82 3.76
632023 Interim Report of Luzhou Laojiao Co. Ltd.
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Yan Li
Income statement of parent company
Monetary Unit: CNY
Item H1 2023 H1 2022
1. Operating revenue 4014540328.02 2067048989.06
Less: Cost of sales 3042254948.12 1385687450.52
Taxes and surcharges 37573415.96 21846321.17
Selling and distribution expenses
General and administrative
461675917.45471587969.18
expenses
Research and Development
26515628.8121774399.61
expenses
Financial expenses -227960702.16 -213866445.14
Including：Interest expenses 160806004.01 22117787.32
Interest income 389316203.47 236000565.63
Plus: Other income 15751969.90 2964466.60
Investment income ("-" for
69703790.6152812442.16
losses)
Including: income from
investment in associates and joint 55379409.84 25579283.02
ventures
Income from the
derecognition of financial assets at
amortized cost (“-” for losses)
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
30742662.635862846.29values(“-“ for losses)Credit impairment losses (“-”
930108.70-103576.90
for losses)
Asset impairment losses (“-”
for losses)
Gains from disposal of assets("-"
-651767.4819786813.38
for losses)
2. Operating profits ("-" for losses) 790957884.20 461342285.25
Plus: non-operating income 11214036.19 5439905.79
Less: non-operating expenses 5679506.55 1671093.97
3. Total profits before tax ("-" for
total losses) 796492413.84 465111097.07
Less: income tax expenses 201232450.87 85788728.92
4. Net profit ("-" for net loss) 595259962.97 379322368.15
4.1 Net profit from continuing
595259962.97379322368.15
operation ("-" for losses)
4.2 Net profit from discontinued
operation ("-" for losses)
5. Net of tax from other
comprehensive income -220631966.28 -27980666.84
5.1 Other comprehensive income
cannot reclassified into the profit and -221898677.10 -18914133.57
loss:
1) Remeasure the variation of net
indebtedness or net asset of defined
benefit plans
2) Share in other comprehensive
131244.39
income that cannot be classified into
642023 Interim Report of Luzhou Laojiao Co. Ltd.
profit and loss under equity method
3) Changes in fair value of
investments in other equity -222029921.49 -18914133.57
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
5.2 Other comprehensive income
that will be reclassified into the profit 1266710.82 -9066533.27
and loss
1) Share in other comprehensive
income that will be classified into 1266710.82 -9066533.27
profit and loss under equity method
2) Changes in fair value of
investments in other debt obligations
3) Other comprehensive income
arising from the reclassification of
financial assets
4) Allowance for credit impairments in
investments in other debt obligations
5) Reserve for cash-flow hedge
6) Balance arising from the
translation of foreign currency
financial statements
7) Others
6. Total comprehensive income 374627996.69 351341701.31
7. Earnings per share
(1) Basic earnings per share 0.39 0.24
(2) Diluted earnings per share 0.39 0.24
Consolidated statement of cash flows
Monetary Unit: CNY
Item H1 2023 H1 2022
1. Cash flows from operating
activities
Cash received from sale of goods
17584367655.4215086273014.66
and rendering of services
Net increase in customer bank
deposits and placement from banks
and other financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received from original
insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interest handling
charges and commissions
Net increase in placements from
other financial institutions
Net capital increase in repurchase
business
Net cash received from customer
brokerage deposits
Refunds of taxes and surcharges 268904.22 89261122.49
652023 Interim Report of Luzhou Laojiao Co. Ltd.
Cash received from other operating
459253580.98287930011.44
activities
Subtotal of cash inflows from
operating activities 18043890140.62 15463464148.59
Cash paid for goods purchased and
3091976431.753622026296.99
services received
Net increase in loans and advances
to customers
Net increase in deposits in central
bank and other banks and financial
institutions
Cash paid for original insurance
contract claims
Net increase in lending funds
Cash paid for interests handling
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
742681965.47699560416.16
employees
Cash paid for taxes and surcharges 7376131406.36 5713535332.59
Cash paid for other operating
1185339540.001351327137.51
activities
Subtotal of cash outflows from
operating activities 12396129343.58 11386449183.25
Net cash flows from operating
activities 5647760797.04 4077014965.34
2. Cash flows from investing
activities
Cash received from disposal of
1502335883.94814171770.96
investments
Cash received from returns on
2391009.806795921.96
investments
Net cash received from disposal of
fixed assets intangible assets and 6151397.95 47943500.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities 1510878291.69 868911192.92
Cash paid to acquire and construct
fixed assets intangible assets and 578623738.47 587312805.01
other long-term assets
Cash paid for investments 200000000.00 1440000000.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities 778623738.47 2027312805.01
Net cash flows from investing
activities 732254553.22 -1158401612.09
3. Cash flows from financing
activities
Cash received from investors 10373040.14 636231646.00
Including: cash received by
subsidiaries from investments by 2082314.40
minority shareholders
Cash received from borrowings 6350000000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 6360373040.14 636231646.00
662023 Interim Report of Luzhou Laojiao Co. Ltd.
Cash paid for debt repayments 10100000.00
Cash paid for distribution of
dividends and profits or payment of 154205652.79 52502625.00
interest
Including: dividends and profits paid
to minority shareholders by
subsidiaries
Cash paid for other financing
1117268.644360194.01
activities
Subtotal of cash outflows from
financing activities 165422921.43 56862819.01
Net cash flows from financing
activities 6194950118.71 579368826.99
4. Effect of fluctuation in exchange
rate on cash and cash equivalents 7563547.16 14324990.43
5. Net increase in cash and cash
equivalents 12582529016.13 3512307170.67
Plus: balance of cash and cash
equivalents at the beginning of the 17729006591.87 13402528941.83
period
6. Balance of cash and cash
equivalents at the end of the 30311535608.00 16914836112.50
period
Cash flow statements of parent company
Monetary Unit: CNY
Item H1 2023 H1 2022
1. Cash flows from operating
activities
Cash received from sale of goods
4537069372.712334856499.28
and rendering of services
Refunds of taxes and surcharges
Cash received from other operating
4098127059.263758977124.59
activities
Subtotal of cash inflows from
operating activities 8635196431.97 6093833623.87
Cash paid for goods purchased and
2851101478.661596587859.22
services received
Cash paid to and on behalf of
238227114.39639918889.87
employees
Cash paid for taxes and surcharges 634932605.73 451760425.43
Cash paid for other operating
134540090.19120449483.46
activities
Subtotal of cash outflows from
operating activities 3858801288.97 2808716657.98
Net cash flows from operating
activities 4776395143.00 3285116965.89
2. Cash flows from investing
activities
Cash received from disposal of
1400914454.67814131144.12
investments
Cash received from returns on
2391009.806795921.96
investments
Net cash received from disposal of
fixed assets intangible assets and 271899.30 47943500.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
672023 Interim Report of Luzhou Laojiao Co. Ltd.
Subtotal of cash inflows from
investing activities 1403577363.77 868870566.08
Cash paid to acquire and construct
fixed assets intangible assets and 52057717.59 53052249.25
other long-term assets
Cash paid for investments 220000000.00 1440000000.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities 272057717.59 1493052249.25
Net cash flows from investing
activities 1131519646.18 -624181683.17
3. Cash flows from financing
activities
Cash received from investors 8290725.74 636231646.00
Cash received from loans 6350000000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 6358290725.74 636231646.00
Cash paid for debt repayments 10100000.00
Cash paid for distribution of
dividends and profits or payment of 154205652.79 52502625.00
interest
Cash paid for other financing
76680.00261142.60
activities
Subtotal of cash outflows from
financing activities 164382332.79 52763767.60
Net cash flows from financing
activities 6193908392.95 583467878.40
4. Effect of fluctuation in exchange
290791.42
rate on cash and cash equivalents
5. Net increase in cash and cash
equivalents 12102113973.55 3244403161.12
Plus: balance of cash and cash
equivalents at the beginning of the 16991891937.50 12938983758.82
period
6. Balance of cash and cash
equivalents at the end of the 29094005911.05 16183386919.94
period
Consolidated statement of changes in owners' equity
For the six months ended 30 June 2023
Monetary Unit: CNY
H1 2023
Equity attributable to owners of the parent company
Other equity Othe Non- Tota
instruments Less r
Gen Undi cont l
Item Shar Capi ： Com Spe SurpPref Perp eral strib rolli own
e tal preh cial lus Othe Subt
erre etua Trea risk uted ng ers'
capi Othe rese
d l sury
ensi rese rese r otal
rese profi inter equi
tal r rve stoc ve rve rve stoc bon rve t ests ty
Inco
k d k
me
267342343
147480639330147120
1. Balance as 721 078 287
at 31 189 015 021 751 189 923
December of 972 711 949510 446 998. 245. 510 806.last year 13.9 30.0 36.6
0.008.9978840.0061
834
Plus:
adjustments
682023 Interim Report of Luzhou Laojiao Co. Ltd.
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Business
combinations
under
common
control
Others
267342343
2. Balance as 147 480 639 330 147 120721 078 287
at 1 January 189 015 021 751 189 923
of the current 972 711 949510 446 998. 245. 510 806.year 13.9 30.0 36.6
0.008.9978840.0061
834
3.Increases/d - -
204887878366915
ecreases in 926 222 235
the current 415 494 596 550 252
period (“-” 69.0 783 683 619. 116. 929. 98.5 027.for 0 88.1 863.decreases) 85 25 31 1 82 9 98
-
709687321690
(1) Total 219
042095515311
comprehensiv 468
e income 678 857 21.4 009
210.
7.076.3007.70
77
-
(2) Capital 204 226 231926 222 450
contributed or 415 786 290
reduced by 69.0 783 357619. 677. 254.owners 0 88.1 7.11
850415
9
Capital 926 819 829 208 208
contributions 69.0 805 072 231 231
by owners
05.744.744.404.40
Capital
contributions
by other
equity
instruments
holders
-
Amounts of 196 226 229
share-based 305 242
217786207
payments 691 126
recognized in 564. 677. 939.owners' equity 12.9 2.71 11 04 75
3
Others
---
621621621
(3) Profit
distribution 914 914 914
832832832
4.034.034.03
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
Profit - - -
distributed to 621 621 621
owners (or 914 914 914
shareholders)
832832832
692023 Interim Report of Luzhou Laojiao Co. Ltd.
4.034.034.03
Others
-
162
(4) Internal 162
carry-forward 156
of owners' 156 53.2
equity 53.2
1
1
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward -
of retained 162162
earnings from 156
other 156 53.2
comprehensiv 53.2
e income 1 1
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
276350352
147500616950147157
4. Balance as 596 864 440
at 30 June of 198 457 743 673 189 578
the current 913 680 469776 008 610. 81.8 510 905.year 30.2 59.3 64.4
9.008.845960.0012
346
For the six months ended 30 June 2022
Monetary Unit: CNY
H1 2022
Equity attributable to owners of the parent company
Other equity Othe Non- Tota
instruments Less r
： Gen Undi
cont l
Item Shar Capi Com Spe SurpPref Perp eral strib rolli own
e tal
erre etua Trea
preh cial lus Othe Subt
risk uted ng ers'
capi Othe rese sury ensi rese rese r otal d l rese profi inter equi
tal r rve stoc ve rve rve stoc bon rve t ests ty
k Incok d
me
211280281
1. Balance as 146 375 167 146 970878 402 372
at 31 475 535 527 475 141
December of 602 470 611247 466 152. 247 16.8
last year 35.8 05.9 22.8
6.005.73326.009
943
Plus:
adjustments
for changes in
accounting
702023 Interim Report of Luzhou Laojiao Co. Ltd.
policies
Adjustments
for correction
of accounting
errors in prior
year
Business
combinations
under
common
control
Others
211280281
2. Balance as 146 375 167 146 970878 402 372
at 1 January 475 535 527 475 141
of the current 602 470 611247 466 152. 247 16.8
year 35.8 05.9 22.8
6.005.73326.009
943
3.Increases/d -
ecreases in 817 613 758 942 462 988686 264
the current 869 969 022 377 601 637
period (“-” 260 080 393. 371. 660. 238. 43.5 382.for 0.00 43.8
decreases) 67 60 74 92 6 48 9
-
553550440554
(1) Total 264
192551194953
comprehensiv 080
e income 634 829 37.0 773
43.8
0.446.5533.58
9
(2) Capital 817 613 210 213686 224
contributed or 869 969 762 003
reduced by 260 070393. 371. 622. 328.owners 0.00 6.53
67600760
629636--
Capital 369 231 686 686
contributions
by owners 046. 646. 260 260
00000.000.00
Capital
contributions
by other
equity
instruments
holders
-
Amounts of 188 217 219
share-based 686 222 224
500625865
payments 260 622 070
recognized in 347. 222. 928.owners' equity 0.00 74.4 6.53 67 07 60
0
Others
---
477477477
(3) Profit
distribution 391 391 391
930930930
6.546.546.54
Withdrawal of
surplus
reserves
Withdrawal of
general risk
reserve
---
Profit 477 477 477
distributed to
owners (or 391 391 391
shareholders) 930 930 930
6.546.546.54
712023 Interim Report of Luzhou Laojiao Co. Ltd.
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
156156156
(6) Others 26.8 26.8 26.8
444
219289291
4. Balance as 147 457 613 141 146 143458 826 258
at 30 June of 161 322 969 119 475 274
the current 828 242 985507 405 371. 108. 247 260.year 96.6 44.8 05.3
6.009.4060436.0045
361
Statement of changes in owners' equity of parent company
For the six months ended 30 June 2023
Monetary Unit: CNY
H1 2023
Other equity instruments Less Other
Capita ： Compr Specia Surplu Undist Total Item Share Prefer Perpet l ehensi l s ribute ownerOther
capital reserv Treasured ual Other ve reserv reserv d s'
stock bond e
ry Incom e e profit equity
stock e
1. Balance as 1471 4789 63902 32854 1471 23131 30554
at 31
December of 89510 60315 1998. 2995. 89510 5708 4851
last year 0.00 1.65 78 36 0.00 01.94 50.17
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
722023 Interim Report of Luzhou Laojiao Co. Ltd.
errors in prior
year
Others
2. Balance as 1471 4789 63902 32854 1471 23131 30554
at January 1
of the current 89510 60315 1998. 2995. 89510 5708 4851
year 0.00 1.65 78 36 0.00 01.94 50.17
3.Increases/d
ecreases in - - - -20683
the current 92669 22278 23684 5607 5615
period (“-” 8213. .00 388.1 7619. 67270 31105
for 32
decreases) 9 49 7.85 6.83
-
(1) Other 59525 3746222063
comprehensiv 9962. 7996.e income 1966.
9769
28
-
(2) Capital 20683 22920
contributed or 92669 22278
reduced by 8213. 9270..00 388.1
owners 32 51
9
Capital 92669 8198 8290
contributions 0.00
by owners .00 055.74 724.74
Capital
contributions
by other equity
instruments
holders
Amounts of -
share-based 19864 22920
30569
payments 0157. 9270.recognized in 112.9
owners' equity 58 51 3
Others
--
(3) Profit 6219 6219
distribution 14832 14832
4.034.03
Withdrawal of
surplus
reserves
Profit - -
distributed to 6219 6219
owners (or 14832 14832
shareholders)
4.034.03
Others
-
(4) Internal 16215
carry-forward 16215
of owners' 653.2 653.2
equity 1
1
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward - 16215
732023 Interim Report of Luzhou Laojiao Co. Ltd.
of retained 16215 653.2
earnings from
other 653.2 1
comprehensiv 1
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as 1471 4996 61674 91695 1471 17523 24939
at 30 June of
the current 98776 44136 3610. 375.8 89510 8980 1740
year 9.00 4.97 59 7 0.00 94.09 93.34
For the six months ended 30 June 2022
Monetary Unit: CNY
H1 2022
Other equity instruments Less Other
Capita ： Compr Specia Surplu Undist Total Item Share Prefer Perpet l ehensi l s ribute ownerTreasu Other capital red ual Other reserv ve reserv reserv d s'
stock bond e
ry Incom e e profit equity
stock e
1. Balance as 1464 3739 16757 1464 18872 25709
at 31
December of 75247 66610 2013. 75247 7927 5358
last year 6.00 8.27 86 6.00 75.01 49.14
Plus:
adjustments
for changes in
accounting
policies
Adjustments
for correction
of accounting
errors in prior
year
Others
2. Balance as 1464 3739 16757 1464 18872 25709
at January 1
of the current 75247 66610 2013. 75247 7927 5358
year 6.00 8.27 86 6.00 75.01 49.14
3.Increases/d
ecreases in - - -81995 61396
the current 6862 27980 4394 4209
period (“-” 2517. 9371. 600.00 666.8 59693 73185
for 52 60
decreases) 4 8.39 9.31
-
(1) Other 37932 3513427980
comprehensiv 2368. 1701.e income 666.8
1531
4
(2) Capital 81995 61396 21284
contributed or 6862
reduced by 2517. 9371. 5745.600.00
owners 52 60 92
Capital 62936 63623 -
contributions 9046. 1646. 6862
by owners
0000600.00
Capital
contributions
by other equity
instruments
holders
Amounts of 6862 19058 - 21970
share-based
payments 600.00 3471. 22262 8345.
742023 Interim Report of Luzhou Laojiao Co. Ltd.
recognized in 52 274.4 92
owners' equity
0
Others
--
(3) Profit 4773 4773
distribution 91930 91930
6.546.54
Withdrawal of
surplus
reserves
Profit - -
distributed to 4773 4773
owners (or 91930 91930
shareholders)
6.546.54
Others
(4) Internal
carry-forward
of owners'
equity
Conversion of
capital
reserves into
paid-in capital
Conversion of
surplus
reserves into
paid-in capital
Surplus
reserves
offsetting
losses
Carry-forward
of retained
earnings from
changes in
defined
benefit plans
Carry-forward
of retained
earnings from
other
comprehensiv
e income
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as 1471 4559 61396 13959 1464 14478 21499
at 30 June of
the current 61507 61862 9371. 1347. 75247 1958 8039
year 6.00 5.79 60 02 6.00 36.62 89.83
3. Company Profile
3.1 Company Overview
Luzhou Laojiao Co. Ltd. (hereinafter referred to as "Company" or "the Company") formerly known as
Luzhou Laojiao Brewery was established in March 1950. On 20 September 1993 Luzhou Laojiao
brewery established a joint-stock limited company with fund-raising exclusively from its operational
assets. On 25 October 1993 the public offering of shares was approved by Sichuan Provincial People's
Government and CSRC with two documents of ChuanFuHan (1993) No.673 and FaShenZi (1993)
No.108. After the offering the total share capital was 86880000 shares which were listed and traded
in Shenzhen stock exchange on 9 May 1994.
752023 Interim Report of Luzhou Laojiao Co. Ltd.
As the end of 31 December 2004 the Company's total share capital reached 841399673 shares after
multiple rights issues among which the controlling shareholder State Assets Management Bureau of
Luzhou (later renamed as State-owned Assets Supervision and Administration Commission of Luzhou
hereinafter referred to as "SASAC of Luzhou") held 585280800 shares of the Company with a
shareholding ratio of 69.56%.On 27 October 2005 the Company implemented the non-tradable share reform. After the
implementation the total share capital remained unchanged and the shareholding ratio of SASAC of
Luzhou decreased from 69.56% to 60.43%.In November 2006 the Company implemented private placement and the total share capital increased
from 841399673 shares to 871399673 shares. The shareholding ratio of SASAC of Luzhou
decreased from 60.43% to 58.35%.As the end of 27 February 2007 SASAC of Luzhou sold 42069983 shares of the Company and after
the sale it still held 466375156 shares of the Company with its shareholding ratio reduced to 53.52%.On 19 May 2008 the Company increased 522839803 shares of capital stock resulting from capital
reserve and undistributed profits transferred to increase capital stock. After the implementation the total
share capital reached 1394239476 shares among which SASAC of Luzhou held 746200250 shares
of the Company and the shareholding ratio was still 53.52%.On 3 September 2009 the 300000000 shares and the 280000000 shares held by SASAC of Luzhou
were separately transferred to Luzhou Laojiao Group Co. Ltd. (hereinafter referred to as the "Laojiao
Group") and Luzhou XingLu Investment Group Co. Ltd. (hereinafter referred to as the "Xinglu Group").After the transfer Laojiao Group Xinglu Group and SASAC of Luzhou respectively held 300000000
shares 280000000 shares and 166200250 shares. So far Laojiao Group became the first majority
shareholder and SASAC of Luzhou was the actual controller.From 6 June 2012 to 20 November 2013 the first and second phases of the Company's equity
incentive plan were exercised. After the exercise the total share capital of the Company was changed
to 1402252476 shares.On 10 April 2014 and 18 July 2016 SASAC of Luzhou transferred 81088320 shares and 84000000
shares to Laojiao Group and Xinglu Group respectively. In addition Laojiao Group has increased its
equity stake through the secondary market of 13137100 shares. So far Laojiao Group Xinglu Group
and SASAC of Luzhou held 394225489 shares 365971142 shares and 1111930 shares
respectively with the shareholding ratios of 28.11% 26.10% and 0.08% respectively.On 23 August 2017 the Company issued CNY 62500000 ordinary shares (A shares) privately raising
a total capital of CNY 3000000000. After the additional issuance the total capital stock of the
Company was changed to 1464752476 shares. In addition from 2017 to 2018 Laojiao Group
decreased 13137100 shares that were increased through the secondary market from April 2014 to
762023 Interim Report of Luzhou Laojiao Co. Ltd.
December 2015. After share reduction Laojiao Group Xinglu Group and SASAC of Luzhou held
381088389 shares 365971142 shares and 1111930 shares respectively with the shareholding
ratios of 26.02% 24.99% and 0.08% respectively. Laojiao Group still was the first majority shareholder
and SASAC of Luzhou still was the actual controller.In February 2022 the registration of 6862600 shares of the Restricted Share Incentive Plan granted
by the Company for the first time were completed; in September 2022 the Company granted 342334
shares of the Restricted Share Incentive Plan for the second time; in September 2022 with seven
awardees no longer eligible the Company decided to repurchase and retire the 62310 restricted
shares of them which had been granted but not lifted from restricted sales; in December 2022 the
Company granted 92669 shares of the Restricted Share Incentive Plan for the third time; so far the
above grant and repurchase of the Restricted Share Incentive Plan had all been registered and the total
shares of the Company changed to 1471987769 shares. The grant and repurchase of the Restricted
Share Incentive Plan this year caused no changes in the controlling shareholders and the actual
controller of the Company.
3.2 Registered address of the Company company type and headquarter address
Registered address and headquarter address of the Company are located in Sichuan Luzhou Laojiao
Square and company type is other incorporated company (Listed).
3.3 Business nature of the Company and main business activity
Industry of the Company is the baijiu subdivision industry of the liquor and wine beverage and refined
tea production industry.The main activity are research and development production and sales of “National Cellar
1573””Luzhou Laojiao” and other baijiu series.
The main products are: “National Cellar 1573 Series” ”Century-old Luzhou Laojiao JiaolingSeries” ”Luzhou Laojiao Tequ” ”Touqu” ”Hey Guys” and other baijiu series.
3.4 Approval and submission of the financial report and its date
The financial report is approved and submitted by the board of directors of the Company on 28
August 2023.
3.5 The name of the controlling shareholder and the ultimate substantive
controller
The controlling shareholder is Luzhou Laojiao Group Co. Ltd.; the ultimate substantive control is
SASAC of Luzhou.
3.6 Consolidated financial statement scope and their changes
(1) The 25 subsidiaries included in the consolidated financial statements for the current period
are listed as follows:
Shareholding proportion(%)
Name of subsidiary Abbreviation
Direct Indirect Voting rights (%)
Luzhou Laojiao Brewing Co. Ltd. Brewing Company 100.00 100.00
Luzhou Red Sorghum Modern Agricultural Development Red Sorghum
60.0060.00
Co. Ltd. Company
772023 Interim Report of Luzhou Laojiao Co. Ltd.
Luzhou Laojiao Sales Co. Ltd. Sales Company 100.00 100.00
Luzhou Laojiao Nostalgic Liquor Marketing Co. Ltd. Nostalgic Company 100.00 100.00
Custom Liquor
Luzhou Laojiao Custom Liquor Co. Ltd. Note 1 15.00 60.00 Company
Luzhou Laojiao Selected Supply Chain Management Co.Selected Company 100.00 100.00 Ltd.Guangxi Imported
Guangxi Luzhou Laojiao Imported Liquor Industry Co. Ltd. 100.00 100.00 Liquor Industry
Luzhou Dingli Liquor Industry Co. Ltd. Dingli Company 100.00 100.00
Luzhou Dingyi Liquor Industry Sales Co. Ltd. Note 2 Dingyi Company 100.00 100.00
New Liquor Industry
Luzhou Laojiao New Liquor Industry Co. Ltd. 100.00 100.00
Company
Luzhou Laojiao I & E Co. Ltd. I & E Company 100.00 100.00
Luzhou Laojiao Boda Liquor Industry Marketing Co. Ltd. Boda Marketing 75.00 75.00
Luzhou Laojiao Fruit Wine industry Co. Ltd. Note 3 Fruit Wine Industry 41.00 60.00
Mingjiang Co. Ltd. Mingjiang Company 54.00 54.00
Luzhou Laojiao International Trade (Hainan) Co. Ltd. Hainan Company 100.00 100.00
Luzhou Pinchuang Technology Co. Ltd. Pinchuang Company 100.00 100.00
Luzhou Laojiao International Development（Hong Kong）
Hong Kong Company 55.00 55.00
Co. Ltd.Luzhou Laojiao Commercial Development (North America) North America
55.0055.00
Co. Ltd. Company
Electronic Commerce
Luzhou Laojiao Electronic Commerce Co. Ltd. 90.00 90.00 Company
Luzhou Laojiao Whitail Liquor Industry Co. Ltd. Note 4 Whitail Liquor Industry 31.50 60.00
Luzhou Baonuo Biotechnology Co. Ltd. Baonuo Biotechnology 100.00 100.00
Luzhou Laojiao Health Liquor Industry Co. Ltd. Health Liquor Industry 100.00 100.00
Luzhou Laojiao Health Sales Co. Ltd. Health Sales 100.00 100.00
Luzhou Laojiao New Retail Co. Ltd. New Retail Company 40.00 100.00 100.00
Technology
Luzhou Laojiao Technology Innovation Co. Ltd. 40.00 100.00 100.00
Innovation Company
Note 1: Although the Company holds less than 51% of the equity of Custom Liquor Company among the five
members of the board of directors the Company has sent three people. The Company has actual control over Custom
Liquor Company so it is included in the scope of consolidation.Note 2: Luzhou Dingyi Liquor Industry Sales Co. Ltd. was renamed Luzhou Laojiao Chateau Qiankun Custom Liquor
Sales Co. Ltd. in July 2023.Note 3: Although the Company holds less than 51% of the equity of Fruit Wine Industry among the five members of
the board of directors the Company has sent three people and the chairman of the board (legal representative) is the
director sent by the Company. The Company has actual control over Fruit Wine Industry so it is included in the scope
of consolidation.Note 4: Although the Company holds less than 51% of the equity of Whitail Liquor Industry among the seven
members of the board of directors the Company has sent five people. The Company has actual control over Whitail
Liquor Industry and its subsidiaries so it is included in the scope of consolidation.Details of the subsidiaries incorporated into the consolidated financial statements show on “7.1.Interests in subsidiaries”
(2) Subsidiaries that are newly incorporated into the scope of consolidation in this period
N/A
(3) Liquidation and cancellation for subsidiaries in this period
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N/ADetails of changes in the scope of consolidation show on “6.5. Changes in consolidated scope forother reasons”.
4. Basis of preparation of financial statements
4.1. Basis of preparation of financial statements
The Company has prepared its financial statements on a going concern basis and the preparation is
based on actual transactions and events in compliance with Accounting Standards for Business
Enterprises and relevant guidance and explanation (the following called the ASBE) issued by Ministry of
Finance and Rules on Company Information Disclosure and Preparation of Publicly Issued Securities
No.15- General Rules on Financial Reporting Rules (2014 Revision) issued by CSRC.
4.2. Going concern
The Company’s business activities have adequate financial support. Based on the current information
obtained by the Company comprehensively considering factors such as macro-policy risk market
operation risk current or long-term profitability debt repayment ability of the Company as well as its
resource of financial support the Company believes that it is reasonable to prepare the financial
statements on a going concern basis and there are no events or situations resulting in significant
doubts over going concern for at least 12 months.
5. Significant accounting policies and accounting estimates
The disclosure requirements for related food and wine manufacturing business in the Self-regulatory
Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure
shall be observed by the Company.
5.1 The declaration about compliance with ASBE
The financial statements of the Company have been prepared in accordance with ASBE and present
truly and completely the financial position and the Company’s and results of operations changes in
shareholders’ equity and cash flows. In addition in all material respects the financial statements of the
Company comply with disclosure requirements of the financial statements and their notes in
accordance with Rules on Company Information Disclosure and Preparation of Publicly Issued
Securities No.15- General Rules on Financial Reporting Rules revised by CSRC in 2014.
792023 Interim Report of Luzhou Laojiao Co. Ltd.
5.2 Accounting period
The Company adopts the calendar year as its accounting year i.e. from 1st January to 31st December.
5.3 Business Cycle
The Company’s business cycle is 12 months.
5.4 Functional currency
The Company has adopted China Yuan (CNY) as functional currency.
5.5 The accounting treatment of business combinations involving enterprises under
common control and business combinations not involving enterprises under
common control
(1) Business combination under common control
Assets and liabilities obtained by the Company from the combine through business combination under
common control shall be measured at the book value as stated in the consolidated financial statements
of ultimate controlling party at the combination date. The share of the book value of the merged party’s
owner’s equity in the consolidated financial statements is taken as the initial investment cost of long-
term equity investments in individual financial statements. 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
Assets paid liabilities incurred or assumed and the equity securities issued as consideration for
combination shall be measured based on fair value on the acquisition date the difference between fair
value and its book value shall be included in current profit and loss. 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 profit and loss.Fees commissions and other transaction expenses paid on issuance of equity securities as
combination consideration in the business combination shall be included in the initial measurement
amount of equity securities.
5.6 Preparation of consolidated financial statements
(1) Consolidated Financial Statement Scope
The scope of the Company’s consolidated financial statements is based on control and all subsidiaries
802023 Interim Report of Luzhou Laojiao Co. Ltd.
controlled are included in the consolidation scope of the consolidated financial statements.
(2) Consolidation procedures
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries and are prepared by the parent company with other relevant information. When preparing
consolidated financial statement the Company considers the Group as an accounting entity adopts
unified accounting policies and applies the requirements of ASBE related to recognition measurement
and presentation to reflect the Group’s financial position operating results and cash flows.All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the
same accounting policies and accounting periods as those of the Company. If the accounting policies or
accounting periods of a subsidiary are different from those of the Company the financial statements of
the subsidiary upon preparation of consolidated financial statements shall be made necessary
adjustment based on its own accounting policies and accounting periods of the Company. For
subsidiaries acquired from the business combination not under common control the financial
statements shall be adjusted on the basis of the fair value of identifiable net assets on the date of
purchase. For the subsidiary acquired from the business combination under common control its assets
and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
controlling party) shall be adjusted on the basis of the book value in the consolidated statements of the
ultimate controlling party.The portion of a subsidiary’s equity the current net profit and loss of subsidiaries and the current
comprehensive income attributable to non-controlling interests shall be separately presented as non-
controlling interests in consolidated balance sheet within owners' equity below the net profit line item
and below the total comprehensive income line item in the consolidated income statement respectively.When the amount of current loss attributable to non-controlling shareholders of a subsidiary exceeds
the balance of the non-controlling shareholders’ portion in the opening balance of owner's equity of the
subsidiary the excess shall be allocated against the non-controlling interests.Acquisition of subsidiaries or business
During the reporting period if the Company acquires subsidiaries from the business combination under
common control the opening balance in the consolidated balance sheet shall be adjusted. The income
expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reporting
period shall be included in the consolidated income statement. The cash flows of the newly acquired
subsidiaries from the beginning to the end of the reporting period shall be included in the consolidated
statement of cash flows. At the same time the relevant items of the comparative information shall be
adjusted as the combined entity existed since the control point of the ultimate controlling party.
812023 Interim Report of Luzhou Laojiao Co. Ltd.
If the Company can control the investee from the business combination under common control due to
additional investment or other reasons the parties involved in the combine shall be deemed to adjust in
the current state when the ultimate controlling party starts to control them. For the equity investment
before obtaining control of the investee the recognized relevant profit or loss and other comprehensive
income and other changes in net assets between the later of acquisition date of previous equity and the
date on which both the investor and the investee are under common control and the combination date
shall respectively write-down the beginning retained earnings or current profits and losses during the
period of comparative information.During the reporting period if the Company acquires subsidiaries from the business combination not
under common control the opening balance in the consolidated balance sheet shall not be adjusted.The income expenses and profits of the newly acquired subsidiaries from the acquisition date to the
end of the reporting period shall be included in the consolidated income statement. The cash flows of
the newly acquired subsidiaries from the acquisition date to the end of the reporting period shall be
included in the consolidated statement of cash flows.When the Company becomes capable of exercising control over an investee not under common control
due to additional investment or other reasons the Company shall re-measure the previously held equity
interests to its fair value on the acquisition date and the difference shall be recognized as investment
income. When the previously held equity investment is accounted for under equity method any other
comprehensive income previously recognized and other equity changes (excluding other
comprehensive net profit and loss and profit distribution ) in relation to the acquiree’s equity changes
shall be transferred to profit and loss for the current period when acquisition took place except for other
comprehensive income resulting from changes in net liabilities or net assets due to re-measurement of
defined benefit plan by investee.Disposal of subsidiaries and business
General treatments
During the reporting period if the Company disposes subsidiaries the income expenses and profits of
the newly disposed subsidiaries from the beginning to the disposal date shall be included in the
consolidated income statement. The cash flows from the beginning to the disposal date shall be
included in the consolidated statement of cash flows.In case of loss of control over the investee due to partial disposal of the equity investment or other
reasons the Company shall re-measure the remaining equity investment at its fair value at the date of
loss of control. The amount of the consideration obtained from the disposal of the equity and the fair
822023 Interim Report of Luzhou Laojiao Co. Ltd.
value of the remaining equity minus the net asset shares calculated continuously from the acquisition
date based on the previous shareholding proportion and the goodwill the difference shall be included in
the investment income of the period when the control is lost. Other comprehensive income related to
the former subsidiary’s equity investment of or other changes in owners' equity excluding net profit and
loss other comprehensive income and profit distribution shall be transferred to investment income for
the current period when control is lost. Other comprehensive income resulting from changes in net
liabilities or net assets due to re-measurement of defined benefit plan by investee is excluded.Disposal of subsidiaries by step
If the Company loses control of a subsidiary is through multiple transactions by steps the terms
conditions and economic impact of the disposal transaction shall be considered. When one or more of
the following conditions may indicate that multiple transactions should be treated as a package of
transactions for accounting treatment:
a.These arrangements were entered into at the same time or in contemplation of each other;
b.These arrangements work together to achieve an overall commercial effect;
c.The occurrence of one arrangement depends on the occurrence of at least one other arrangement;
d.One arrangement alone is not economically justified but it is economically justified when considered
together with other arrangements
If the transactions of the disposal of the equity investment of the subsidiary until the loss of control
belong to a package transaction the Company shall account for as a transaction; However the
difference between each disposal consideration received and the corresponding proportion of the
subsidiary’s net assets before the loss of control shall be recognized as other comprehensive income in
the consolidated financial statements and transferred into the profit and loss of the current period when
the control is lost.If the transactions from the disposal of the equity investment of the subsidiary to the loss of control are
not considered as a package transactions the accounting treatment shall be conducted according to
the relevant policies on the partial disposal of the equity investment of the subsidiary where control is
retained before the loss of control. When the control is lost the disposal shall be accounted for
according to the general treatment.Purchase of non-controlling interests
The difference between the increase in the cost of long-term equity investment result from acquisition of
non-controlling shareholders and the share of net assets of the subsidiary calculated continuously from
the acquisition date or combination date based on newly shareholding proportion shall be adjusted to
equity (share) premium of capital reserves in the consolidated balance sheet. If the capital reserve is
832023 Interim Report of Luzhou Laojiao Co. Ltd.
insufficient any excess shall be adjusted against retained earnings.Partial disposals of equity investment in subsidiaries without loss of control
When the Company disposes of a portion of a long-term equity investment in a subsidiary without loss
of control the difference between disposal consideration and net assets of the subsidiary calculated
continuously since the acquisition date or the combination date related to the disposal of long-term
equity investment shall be adjusted to equity (share) premium of capital reserves in the consolidated
balance sheet. If the capital reserve is insufficient any excess shall be adjusted against retained
earnings.
5.7 Classification of joint venture arrangements and the accounting treatment
method of common operation
(1) Classification of joint venture arrangements
A joint arrangement is classified as either a joint operation or a joint venture according to the structure
legal form agreed terms and other facts and conditions of a joint arrangement. A joint arrangement that
is structured through a separate vehicle is usually classified as a joint venture. However when a joint
arrangement provides clear evidence that it meets any of the following requirements and complies with
applicable laws and regulations as a joint operation:
a. The legal form of the joint arrangement indicates that the parties that have joint control have rights to
the assets and obligations for the liabilities relating to the arrangement.b. The terms of the joint arrangement specify that the parties that have joint control have the rights to
the assets and the obligations for the liabilities relating to the arrangement.c. Other facts and circumstances indicate that the parties that have joint control have rights to the
assets and the obligations for the liabilities relating to the arrangement.The parties that have joint control have rights to substantially all of the output of the arrangement and
the arrangement depends on the parties that have joint control on a continuous basis for settling the
liabilities of the arrangement.
(2) Accounting by parties of a joint operator
A joint operator shall recognize the following items in relation to its interest in a joint operation and
account for them in accordance with relevant accounting standards:
a. Its solely-held assets and its share of any assets held jointly;
b. Its solely-assumed liabilities and its share of any liabilities incurred jointly;
c. Its revenue from the sale of its share of the output arising from the joint operation;
d. Its share of the revenue from sale of the output by the joint operation; and
e. Its solely-incurred expenses and its share of any expenses incurred jointly.
842023 Interim Report of Luzhou Laojiao Co. Ltd.
The Company shall only recognize the portion of the profit and loss attributable to other participants in
the joint venture resulting from investment or sale of assets to the joint venture by the Company
(excluding those assets constituting the business) prior to the sale of such assets to a third party. The
Company shall fully recognize impairment loss when there is any impairment loss of invested or sold
assets occurring in accordance with the ASBE No.8-Asset Impairment. The Company shall only
recognize the part of the profit and loss attributable to other participants in the joint venture before
selling the assets and other assets purchased from the joint venture (excluding those assets
constituting the business) to a third party. When the impairment loss of the purchased assets is in
accordance with the ASBE No.8-Asset Impairment the Company shall recognize such losses
according to its share. When the Company does not have common control over the joint venture if the
Company enjoys the assets related to the joint venture and assumes the liabilities related to the joint
venture the accounting treatment shall be conducted according to the above principles. Otherwise the
accounting treatment shall be conducted in accordance with the relevant accounting standards.
5.8 Cash and cash equivalents
When preparing the cash flow statement the Company recognizes cash on hand and deposits that can
be readily withdrawn on demand as cash. Cash equivalents are the Company’s short-term (due within 3
months from purchase date) highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value. Restricted bank deposits are not
recognized as cash and cash equivalents in the cash flow statement.
5.9 Foreign currency transactions and translation of foreign currency statements
(1) Foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company the amount in the
foreign currency shall be translated into the amount in CNY currency at the spot exchange rate of the
transaction date. For the monetary items of foreign currencies the translation is done according to spot
rate of the balance sheet date. The exchange difference generated from the difference of spot rate of
the current balance sheet date and the time of initial recognition of a foreign currency or the previous
balance sheet date is charged to the profit or loss of the current period except that the exchange
difference generated from foreign currency borrowings relating to assets of which the acquisition or
production satisfies the capitalization conditions is capitalized.Non-monetary items measured at fair value that is reflected in foreign currency at the end of the period
the Company shall firstly translate the foreign currency into the amount in functional currency at the
spot exchange rate on the date when the fair value is determined and then compare it with the original
functional currency amount. Difference between the translated functional currency amount and the
original functional currency amount is treated as profit or loss from changes in fair value (including
changes in exchange rate) and is recognized in current profit and loss. If there is a non-monetary item
852023 Interim Report of Luzhou Laojiao Co. Ltd.
of available-for-sale financial assets the differences are recorded into other comprehensive income.
(2) Translation of foreign currency statements
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance
sheet date. Shareholders’ equity items except for the item of "undistributed profits" are translated at
the spot exchange rates on the dates when the transactions occur. Revenue and expense items in the
income statement are translated at the spot exchange rates on the dates when the transactions occur
or at the exchange rate determined in a systematical and reasonable method and similar to the spot
exchange rate on the day when the transactions occur. Differences arising from the above translations
of foreign currency financial statements are separately listed under other comprehensive income in the
consolidated balance sheet. If the overseas business is partly disposed of the foreign currency
financial statements exchange difference shall be calculated in proportion to the percentage of disposal
and transferred to gain or loss on disposal for the current period.Foreign currency cash flow and cash flow of foreign subsidiaries shall be translated at approximate
exchange rate of spot rate on the date of cash flow.
5.10 Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. When the Company becomes a party to a financial
instrument contract the related financial asset or financial liability should be recognized.
(1) Classification recognition 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.At the initial recognition financial assets are measured at fair value. For financial assets measured at
fair value with their changes included into current profits/losses the expenses involved in the
transaction are directly recorded into current profits/losses; for other financial liabilities the expenses
involved in the transaction are recorded into the initially recognized amount.
1) 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
862023 Interim Report of Luzhou Laojiao Co. Ltd.
generated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial interests
performs subsequent measurement of them at amortized cost and includes the gains or losses from
derecognition changes or impairment of them into current profits/losses.
2) Financial assets measured at fair value with their changes included into other comprehensive income
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.At the initial recognition the Company may specify non-trading equity instrument investment as a
financial asset measured at fair value with its changes included into other comprehensive income and
should recognize the dividend income according to regulations; the specification is irrevocable once
made. When the financial asset is derecognized the cumulative gains or losses previously included into
other comprehensive income should be transferred into retained earnings.
3) Financial assets measured at fair value with their changes included into current profits/losses
For financial assets other than the above financial assets measured at amortized cost and financial
assets measured at fair value with their changes included into other comprehensive income the
Company classifies them as financial assets measured at fair value with their changes included into
current profits/losses. In addition at the initial recognition the Company specifies partial financial
assets as financial assets measured at fair value with their changes included into current profits/losses
in order to 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.
(2) Classification recognition and measurement of financial liabilities
At their initial recognition financial liabilities are divided into financial liabilities measured at fair value
with their changes included into current profits/losses and other financial liabilities. For financial
liabilities measured at fair value with their changes included into current profits/losses the expenses
involved in the transaction are directly recorded into the current profits/losses. For other financial
liabilities the expenses involved in the transaction are recorded into the initially recognized value.
1) Financial liabilities measured at fair value with their changes included into current profits/losses
872023 Interim Report of Luzhou Laojiao Co. Ltd.
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.Trading financial liabilities (including derivatives classified as financial liabilities) are subsequently
measured at fair value with changes in fair value recorded into current profits/losses except for those
related to hedge accounting.For those specified as financial liabilities measured at fair value with their changes included into current
profits/losses changes in the fair value of such liabilities caused by changes in the Company’s own
credit risk should be included into other comprehensive income. In derecognition of such liabilities
cumulative changes in their value caused by the Company’s own credit risk that have been recorded
into other comprehensive income should be transferred into retained earnings. Other changes in their
fair value should be recorded into current profits/losses. If treatment of the impact of the Company’s
own credit risk changes of such financial liabilities in the above manner causes or expands accounting
mismatch in profits/losses the Company will include all gains or losses of such financial liabilities
(including the amount of the impact of the Company’s own credit risk changes) into current
profits/losses.
2) Other financial liabilities
Financial liabilities other than those formed from the transfer of financial assets not meeting
derecognition conditions or continuous involvement into transferred financial assets and those outside
financial guarantee contracts are classified as financial liabilities measured at amortized cost. Such
financial liabilities should be subsequently measured at amortized cost and the gains or losses from
derecognition or amortization should be included into current profits/losses.
(3) Recognition basis and measurement method of transfer of financial assets
If a financial asset meets any of the following conditions it shall be derecognized: 1)The contractual
right for collecting the cash flow of the financial asset has been terminated; 2)The financial asset has
been transferred and almost all the risks and remunerations in respect of the ownership of the financial
asset has been transferred to the transferee; 3)The financial asset has been transferred and although
the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset it has abandoned its control over the asset.If the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset and does not abandon its control over the asset the involved financial
882023 Interim Report of Luzhou Laojiao Co. Ltd.
asset shall be recognized according to the level of continuous involvement of the transferred financial
asset and the relevant liabilities shall be recognized accordingly. The level of continuous involvement of
the transferred financial asset refers to the level of risk faced by the enterprise due to changes in the
value of the financial asset.If the overall transfer of the financial asset meets the recognition conditions the difference between the
carrying value of the transferred financial asset as well as the consideration received from the transfer
and the cumulative amount of fair value changes originally-recorded into other comprehensive incomes
shall be recorded into the current profits/losses.If partial transfer of the financial asset meets the recognition conditions the carrying value of the
transferred financial asset shall be apportioned at the relative fair value between the derecognition and
underecognition part. The difference between the summation of the consideration received from the
transfer and the cumulative amount of fair value changes originally-recorded into other comprehensive
incomes that should be apportioned to the derecognition part and the apportioned aforementioned
carrying value shall be recorded into the current profits/losses.For a financial asset sold with the right of recourse or with the transfer of the financial asset
endorsement the Company shall decide whether almost all the risks and remunerations in respect of
the ownership of the financial asset should be transferred. If they are transferred the financial asset
shall be derecognized; if they are retained the financial asset shall not be derecognized; if they are
neither transferred nor retained the Company will continue to decide whether the enterprise should
retain control over the asset and perform the accounting treatment according to the principles stated in
previous paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part of it) is relieved the Company will
derecognize the financial liability (or the part of it). When the Company (borrower) signs an agreement
with a lender to replace an original financial liability in the form of bearing a new financial liability and
the contract terms for the new financial liability differ from those for the original in substance the
original financial liability should be derecognized and the new one should be recognized. When the
Company makes substantial changes to the contract terms of an original financial liability (or a part of it)
the original financial liability should be derecognized and a new financial liability should be recognized
according to the amended contract terms.When a financial liability (or a part of it) is derecognized the Company will include the difference
between its carrying value and the consideration paid (including non-cash assets or liabilities borne that
892023 Interim Report of Luzhou Laojiao Co. Ltd.
are transferred out) into current profits/losses.
(5) Offsetting of financial assets and financial liabilities
When 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 the
financial assets and the financial liabilities which are presented in the net amount after the mutual offset
in the balance sheet. Other than that they shall be presented separately in the balance sheet without
the mutual offset.
(6) Method of determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can receive for selling an asset or transferring a
liability in an orderly transaction on the measurement date. For an existing financial instrument in an
active market the Company adopts the quotations in the active market to determine its fair value.Quotations in the active market refer to prices that can be easily obtained from exchanges brokers
industrial associations and pricing service institutions and represent the actual prices in the market
transactions happening in a fair trade. For a non-existing financial instrument in an active market the
Company adopts the valuation technique to determine its fair value. The valuation technique includes
references to familiar situations and the prices used by the parties voluntarily participating in the recent
market transactions as well as references to the present fair value of other financial instruments of the
same nature discounted cash flow method and options pricing model. In the valuation the Company
uses a valuation technique that is applicable in the current situation with sufficient data available and
other information support chooses input values that are consistent with the asset or liability
characteristics considered by market players in related asset or liability transactions and make
maximum effort to use related observable input values on a preferential basis. When it is unable or
unfeasible to obtain related observable input values unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets after
the deduction of all liabilities. The Company’s issuance (including refinancing) repurchase sale or
cancellation of equity instruments serve as the change treatment of equity. Transaction expenses
related to the equity transactions are deducted from the equity. The Company does not recognize
changes in the fair value of equity instruments.Dividends from the Company’s equity instruments distributed during the validity (including the “interests”
from instruments classified as equity instruments) are treated as profit distribution.
902023 Interim Report of Luzhou Laojiao Co. Ltd.
(8) Impairment of financial instruments
Based on the expected credit loss the Company treats financial assets measured at amortized cost
and debt instrument investment measured at fair value with its changes included into other
comprehensive income by impairment and recognizes the provision for loss.Credit loss means the difference between all contract cash flow discounted at the original effective
interest rate to be received according to contracts and all contract cash flow expected to be received
namely the present value of all cash shortage. For a financial asset with credit impairment purchased
by or originated from the Company it should be discounted by the effective interest rate after credit
adjustment to the financial asset.For accounts receivable that do not contain significant financing components the Company adopts
simplified measurement to measure loss provisions according to the amount equivalent to the expected
credit loss for the entire duration.For a financial asset other than those using the above simplified measurement the Company assesses
on each balance sheet date whether its credit risk has substantially increased since the initial
recognition. If it has not and is in the first stage the Company will measure the loss provision at the
amount equivalent to the expected credit loss for the next 12 months and calculate the interest income
according to the book balance and the effective interest rate; if it has substantially increased since the
initial recognition without credit impairment and is in the second stage the Company will measure the
loss provision at the amount equivalent to the expected credit loss for the entire duration and calculate
the interest income according to the book balance and the effective interest rate; if credit impairment
has occurred since the initial recognition and is in the third stage the Company will measure the loss
provision by the amount equivalent to the expected credit loss for the entire duration and calculate the
interest income according to the amortization cost and the effective interest rate. For financial
instruments with low credit risks on balance sheet dates the Company assumes that their credit risks
have not substantially increased since the initial recognition.The Company assesses expected credit losses of financial instruments based on individual and group
assessment. The Company considers the credit risk characteristics of different customers and
assesses the expected credit losses of accounts receivable and other receivables based on account
age portfolio. When assessing expected credit losses the Company considers reasonable and well-
founded information on past matters present conditions and forecast of future economic conditions.
912023 Interim Report of Luzhou Laojiao Co. Ltd.
When it no longer reasonably expects to recover all or part of the contract cash flow of financial assets
the Company will directly write down the book balance of such financial assets.
5.11 Notes receivable
The method of determining the expected credit loss of notes receivables and accounting treatment
method:
Divide notes receivables into various portfolios according to common risk characteristics based on the
credit risk characteristics of acceptors and determine the accounting estimate policies of expected
credit loss：
Portfolio name Provision method
Bank acceptance bill The management evaluates that this type has low credit risk and its fixed bad
portfolio debt provision ratio is 0%.Trade acceptance The provision for impairment is made according to the expected loss rate with
portfolio the same portfolio classification of accounts receivables
5.12 Accounts receivables
The method of determining the expected credit loss of accounts receivables and accounting treatment
method:
As for accounts receivables regardless of whether there is a significant financing component the
Company always measures the provision for loss based on the amount equivalent to the expected
credit loss over the entire life and the resulting increase or reversal of provision for loss shall be
included in the current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment
the Company shall make bad debt provision for the account receivable and recognize the expected
credit loss.
(2) 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:
Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control the recovery of which are controllable with no risks. Thus no bad debt provision was
made.The Company combines the accounts receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging) and calculates the expected credit loss through the exposure at
default and expected credit loss rate over the entire life based on the current situation and prediction of
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future economic situation consulting historical credit loss experience. The comparative table of the
credit loss rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
1-2 years 10
2-3 years 20
3-4 years 40
4-5 years 80
Over 5 years 100
5.13 Accounts receivables financing
The accounts receivables financing of the Company refer to the notes receivables measured at fair
value through other comprehensive income on the balance sheet date. For more details see Note 5.10
Financial instruments.
5.14 Other receivables
The method of determining the expected credit loss of other receivables and accounting treatment
method:
As for other receivables regardless of whether there is a significant financing component the Company
always calculates the expected credit loss through the exposure at default and expected credit loss rate
in the next 12 months or over the entire life based on the current situation and prediction of future
economic situation consulting historical credit loss experience and the resulting increase or reversal of
provision for loss shall be included in the current profit or loss as gains or losses on impairment. The
accrual method is as follows:
(1) When there is objective evidence showing that the other receivable has incurred credit impairment
the Company shall make bad debt provision for the other receivable and recognize the expected credit
loss.
(2) 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 other receivables portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios.Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under the
same control the recovery of which are controllable with no risks. Thus no bad debt provision was
made.The Company combines the other receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging) and calculates the expected credit loss through the exposure at
932023 Interim Report of Luzhou Laojiao Co. Ltd.
default and expected credit loss rate in the next 12 months or over the entire life based on the current
situation and prediction of future economic situation consulting historical credit loss experience. The
comparative table of the credit loss rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
1-2 years 10
2-3 years 20
3-4 years 40
4-5 years 80
Over 5 years 100
5.15 Inventory
(1) Classification of inventory
Inventories are classified as: raw materials goods in progress (including semi-finished goods) stock
commodities and dispatched inventories.
(2) Measurement method of dispatched inventories
The standard 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 standard cost into the actual cost; The goods
in progress (including semi-finished goods) shall be accounted according to the actual cost and the
weighted average method shall be used when they are received and delivered. The actual cost of the
inventory at the end of the month above shall be taken as the standard cost and the delivery shall be
priced according to the standard cost. At the end of the month the standard cost of the inventory at the
end of the month shall be adjusted into the actual cost through the cost-sharing difference.
(3) Basis to determine net realizable values of inventories and method of provision for stock
obsolescence
At the end of the period inventory is measured according to the lower of cost and net realizable value.The difference between inventory cost and net realizable value is higher than the provision for stock
obsolescence which is recorded into current profit and loss. For inventories that are related to product
ranges produced and sold in the same district or used for the same or similar ultimate purpose and are
difficult to be measured separately from other inventories the Company provides for stock
obsolescence as a whole. For inventories that have large quantities but low value the Company
provides for stock obsolescence on a category basis.The materials held for production shall be measured at cost if the net realizable value of the finished
products is higher than the cost. If a decline in the value of materials shows that the net realizable value
of the finished products is lower than the cost the materials shall be measured at the net realizable
942023 Interim Report of Luzhou Laojiao Co. Ltd.
value.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Amortization method of packing materials and low-cost consumables
It is amortized in full at once.
5.16 Contract assets
The Company presents contract assets or contract liabilities on the balance sheet according to the
relationship between the fulfillment of its contract performance obligations and its customers’ payment.Considerations that the Company has the right to collect for commodities transferred or services
provided to customers (and such right depends on other factors than time lapses) are presented as
contract assets. The Company presents the right possessed to collect consideration from customersunconditionally (only depending on the passing of time) as accounts receivable. Refer to “The methodof determining the expected credit loss of accounts receivables and accounting treatment method” for
the detail on the Company’s method of determining the expected credit loss of contract assets and
accounting treatment method.
5.17 Contract costs
Contract costs comprise incremental costs incurred as the Company obtains a contract and costs for
contract performance. Incremental costs incurred as the Company obtains a contract refer to those
costs which will not incur without entering into a contract (such as sales commission). If it is expected
that the costs are recoverable the Company will recognize the costs incurred to obtain a contract as
one form of assets. In case that the term of asset amortization is shorter than one year or one normal
operating cycle the costs will be recognized as profit and loss of the current period after occurrence.If the costs incurred from contract performance fall outside the inventory or the scope of other
enterprise accounting standards and satisfy all of the following conditions the Company will recognize
the costs for contract performance as assets: a) The costs are directly related to one existing contract
or contract that is expected to be obtained; b) The costs enrich the Company's resources for future
contract performance (including continual fulfillment); c) The costs are estimated to be recovered.Assets recognized from costs incurred to obtain a contract and costs for contract performance
(hereinafter referred to as "assets related to contract costs") will be amortized based on the basis the
same with the income from commodities or services related to the assets and will be recognized as
profit and loss of the current period. In case that the book value of assets related to contract costs is
952023 Interim Report of Luzhou Laojiao Co. Ltd.
higher than the difference of the two items below the Company will set aside provisions for assets
impairment to deal with the extra part and recognize that part as impairment losses: a) Estimated
residual consideration to be obtained from transfer of commodities or services related to the assets; b)
Estimated costs incurred from transfer of the relevant commodities or services.
5.18 Assets held for sale
(1) Classification of non-current assets held for sale or disposal groups
The Company shall classify the non-current assets or disposal group meeting the following conditions
into the held-for-sale category: The assets (or disposal group) must be available for immediate sale in
its present condition subject only to terms that are usual and customary for sales of such assets (or
disposal groups); Its sale must be highly probable.; The Company has already made a decision to
dispose the component and has a commitment from the purchaser the transfer will be completed within
one year.The non-current assets or disposal group acquired by the Company for resale shall be divided into the
held-for-sale category on the acquisition date if it meets the condition that "the sale is expected to be
completed within one year" and if it is likely to meet other conditions for the held-for-sale category within
a short period (usually three months).Due to one of the following reasons that the Company is unable to control leading to the transactions
uncompleted with non-related party within one year and the Company still commits to sale non-current
assets or disposal groups it can continue to account for non-current assets or disposal groups as held-
for-sale: the buyer or any other party accidentally set sale extension condition. The Company has to
take action in time according to these conditions and the extension problem is expected to be solved
within one year; In rare cases the Company has taken the necessary steps and re-satisfy the hold for
sale category condition within the first year for the new circumstances which caused it unable to
complete the sale of the non-current assets or disposal group within one year.
(2) Measurement of non-current assets or disposal groups held for sale
a. Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
at balance sheet date subsequently the impairment loss should be recognized if the book value is
higher than fair value less costs to sell at the amount of the difference of these two in profit and loss
the provision for assets held for sale need to be recognized at the same time.For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date
they shall be measured as the lower of the initial measurement amount and the net amount after
962023 Interim Report of Luzhou Laojiao Co. Ltd.
deducting the selling expenses from the fair value under the assumption that it is not divided into held-
for-sale categories at the initial measurement. Except for the non-current assets or the disposal groups
obtained in the enterprise merger the difference caused by the non-current assets or the disposal
groups taking the net amount after the fair value minus the selling expenses as the initial measurement
amount shall be recorded into the current profit and loss.For the impairment of disposal group it should write off goodwill if existing and then write down the
related assets proportionally.Depreciation or amortization should cease for the non-current asset held for sale. Interest and other
charges on liabilities in the disposal groups held for sale continue to be recognized.b. Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet date
increases after the fair value minus the selling expenses the amount previously written down shall be
reversed and the amount of the impairment loss recognized after being classified as the held-for-sale
shall be reversed and the reversed amount shall be included in the current profit and loss. The
impairment loss recognized before the classification of the held-for-sale shall not be reversed.If the net amount of the disposal groups held for sale on the subsequent balance sheet date increases
after the fair value deducting the selling expenses the amount previously written down shall be
reversed and the amount of the impairment loss recognized as non-current assets after being
classified as the held-for-sale shall be reversed and the reversed amount shall be included in the
current profit and loss. The book value of the goodwill that has been written down and the impairment
losses recognized before the classification of the held-for-sale shall not be reversed.The subsequent reversed amount of the impairment loss recognized by the disposal groups held for
sale shall be increased in proportion to the book value of non-current assets except goodwill in the
disposal groups.c. The accounting treatment that does not continue to be classified as held-for-sale and the termination
of recognition
Non-current assets or disposal groups that are no longer divided into held-for-sale category or non-
current assets are removed from disposal groups held for sale because of no longer meeting the
condition of classification of held-for-sale they are measured at lower of the following two: book value
before being classified as the held-for-sale considering depreciation amortization or impairment that
should have been recognized under the assumption that it is not divided into held-for-sale categories;
972023 Interim Report of Luzhou Laojiao Co. Ltd.
and recoverable amount.When terminating the recognition of the non-current assets held for sale or the disposal groups the
unrecognized gains or losses shall be recorded into the current profit and loss.
5.19. Investments in debt obligations
N/A
5.20 Investments in other debt obligations
N/A
5.21 Long-term receivables
For more details see Note 5.10 Financial instruments.
5.22 Long-term equity investment
(1) Judgment criteria of common control and significant influence
Common control on an agreement with other participants refers to the Company share control with
other participants on an arrangement according to relevant conventions which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.This arrangement belongs to joint venture. Where the joint venture arrangement is made by a separate
entity and the Company is judged to have rights to the net assets of such a separate entity according to
the relevant conventions. Such a separate entity shall be regarded as a joint venture and accounted by
the equity method. If the Company is judged to be not entitled to the net assets of the separate entity
according to relevant conventions the separate entity shall be regarded as a joint venture and the
Company shall recognize the items related to the shares of the joint venture and perform accounting
treatment in accordance with relevant accounting standards.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. The Company judges that it has a significant impact on the invested entity through one or more
of the following situations and taking all the facts and circumstances into consideration:
a. Dispatch representatives to the board of directors or similar authorities of the investee.b. To participate in the financial and business policy making process of the investee.c. Significant transactions with the investee.d. Dispatch management personnel to the investee.e. To provide key technical data to the investee.
982023 Interim Report of Luzhou Laojiao Co. Ltd.
(2) Determination of the initial investment cost
a. Long-term equity investment resulting from combination
Business combination under common control：
For the long-term equity investments obtained by cash paid non-monetary assets paid or assumed
liabilities and the equity securities issued by the acquirer on the merger date the initial investment cost
of long-term equity investment shall be taken as the share of the owner's equity of the investee in the
book value of the final control party's consolidated financial statements. If the investee under business
combination under common control can be controlled due to additional investment or other reasons the
initial investment cost of long-term equity investment shall be determined on the merger date according
to the share of the net assets of the investee in the book value of the final control party's consolidated
financial statements. The difference between the initial investment cost of the long-term equity
investment on the merger date and sum of the book value of the long-term equity investment before the
merger and the new consideration of acquiring shares on the merger date shall be recorded to adjust
the equity premium. If the equity premium is insufficient to be written down the retained earnings shall
be written down.Business combination not under common control：The Company takes the initial investment cost of
long-term equity investment as the merger cost determined on the purchase date. If the investee can be
controlled under business combination not under common control due to additional investment or other
reasons the previous book value of the equity investment held plus the sum of the newly added
investment cost shall be taken as the initial investment cost calculated according to the cost method.b. Long-term equity investment obtained by other means
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.For long-term equity investments obtained by non-monetary assets exchange under the condition that
an exchange of non-monetary assets is of commerce nature and the fair value of assets exchanged
can be reliably measured non-monetary assets traded in is initially stated at the fair value of the assets
traded out unless there is conclusive evidence indicating that the fair value of the assets traded in is
more reliable; if the above conditions are not satisfied initial investment costs of long-term equity
investments traded in shall be recognized at the book value of the assets traded out and the relevant
taxes and surcharges payable.
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For long-term equity investments obtained by debt restructuring the Company recognizes the fair value
of shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
a. Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
long-term equity investments accounted at the cost method except cash dividends or profits declared
but not yet distributed which are included in the actual payments or the consideration actually paid for
the investment the cash dividends or profits declared by the investee shall be recognized as the
investment income irrespective of net profits realized by the investee before investment or after
investment.b. Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee the
equity method is adopted for accounting. For long-term equity investments measured at 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 no adjustment will be made to the initial costs of the long-term
equity investments; 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 difference shall be recognized in current profit and
loss.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 and adjust the book value of the long-term equity investments. When recognizing the net
profits and losses and other comprehensive income of the investee that the Company shall enjoy or
bear the Company shall make a recognition and calculation based on the net book profits and losses of
the investee after appropriate adjustments. However where the Company is unable to obtain the
relevant information due to failure to reasonably determine the fair value of the investee’s identifiable
assets minor difference between the investee’s identifiable assets and the book value thereof or other
reasons the profits or losses on the investments shall be directly calculated and recognized based on
the net book profits and losses of the investee. The Company shall calculate the part distributed from
cash dividends or profits declared by the investee and correspondingly reduce the book value of the
long-term equity investments. When recognizing the income from investments in associates and joint
ventures the Company shall write off the part of incomes from internal unrealized transactions between
the Company and associates and joint ventures which are attributable to the Company and recognize
the profit and loss on investments on such basis. Where the losses on internal transactions between
the Company and the investee are impairment of related assets full amounts of such losses shall be
1002023 Interim Report of Luzhou Laojiao Co. Ltd.
recognized. Profit and loss from internal unrealized transactions between the Company’s subsidiaries
included into the combination scope and associates and joint ventures shall be written off according to
the above principles and the profit and loss on investments thereafter shall be recognized on such basis.When the share of net loss of the investee attributable to the Company is recognized it is treated in the
following sequence: Firstly write off the book value of the long-term equity investments; where the book
value of the long-term equity investments is insufficient to cover the loss investment losses are
recognized to the extent that book value of long-term equity which form net investment in the investee
in other substances and the book value of long-term receivables shall be written off; after all the above
treatments if the Company still assumes additional obligation according to investment contracts or
agreements the obligation expected to be assumed should be recognized as provision and included
into the investment loss in the current period. If the investee is profitable in subsequent accounting
periods the Company shall treat the loss in reverse order against that described above after deducting
unrecognized share of loss: i.e. write down the book value of the recognized provision then restore the
book value of long-term interests which substantially form net investments in the investee then restore
the book value of long-term investments and recognize investment income at the same time.
5.23 Investment property
Measurement model of investment property
Cost model
Method of depreciation or amortization
Investment property is the property that is held to earn rent or capital appreciation or both and can be
measured and sold separately. The Company’s investment property includes land use right already rent
land use right held for appreciation and then sold and buildings already rent.
(1) Initial Recognition
When the Company can obtain the rental income or value-added income related to the investment
property and the cost of the investment property that can be measured reliably the Company will
initially measure it according to the actual expenditure of purchase or construction:
The cost of the purchased investment property includes the purchase price and related taxes directly
attributable to the asset;
The cost of self-built investment property consists of the necessary expenses incurred before the asset
reaches the intended use condition;
The cost of the investment property obtained by other means shall be recognized in accordance with
relevant accounting standards.
(2) Subsequent measurement
In general the Company adopts the cost model to measure the follow-up expenditure of investment
property. The depreciation or amortization of investment property shall be carried out in accordance
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with the accounting policies for the Company's fixed assets or intangible assets.If there is solid evidence suggests that the investment property acquired can be measured at fair value
continuously and reliably the Company can use fair value model for subsequent measurement. For the
investment property measured at fair value model the Company does not provide depreciation or
amortization and adjusts its book value based on the fair value of investment property at the balance
sheet date. The difference between the fair value and book value is recorded into current profit or loss.
(3) When the Company changes the use of investment property the relevant investment property will
be transferred to other assets.
5.24. Fixed assets
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities providing
services renting or business management with useful life exceeding one accounting year. Fixed
assets are recognized when the following criteria are satisfied simultaneously: It is probable that the
economic benefits relating to the fixed assets will flow into the Company; the cost of the fixed assets
can be measured reliably.
(2) Depreciation of fixed assets
Estimated Annual
Depreciation Estimated useful
Category residual value depreciation rate
method life (Year)
rate (%) (%)
Buildings and Straight-line
10-455%9.50%－2.11%
Constructions
method
Special Straight-line
5-355%19.00%－2.71%
equipment
method
Universal Straight-line
4-255%23.75%－3.80%
equipment
method
Transportation Straight-line
65%15.83%
equipment
method
Straight-line
Other equipment 4-16 5% 23.75%－5.94% method
Except for fixed assets still in use after full depreciation the Company depreciates all fixed assets and
calculates the depreciation in the straight-line depreciation method.Based on the nature and use of fixed assets the Company determines their service life and
estimated net salvage value and reviews their service life estimated net salvage value and
1022023 Interim Report of Luzhou Laojiao Co. Ltd.
depreciation method at the end of the year. Changes in the service life estimated net salvage value
and depreciation method of the same type of assets are treated as changes in accounting estimation.
(3) Recognition standard valuation method and depreciation method for fixed assets acquired
under financing lease
A finance lease refers to a lease where almost all the risks and rewards related to the ownership of
the leased asset are substantially transferred regardless of whether the ownership is eventually
transferred or not. The policy for the accrual of the depreciation of the leasehold property for the fixed
assets acquired under the finance lease was consistent with that adopted for the Company's fixed
assets. If there is reasonable assurance that the Company will obtain the ownership of the leased
assets when the lease term expires the leased assets should be depreciated over its useful life; if
there is no reasonable assurance that the Company will obtain the ownership of the leased assets
when the lease term expires the leased assets should be depreciated over the shorter of the lease
term or the useful life of the leased assets.
(4) Impairment test method and impairment provision accrued method of fixed assets
At the end of the period the fixed assets shall be measured at the lower of the book value and the
recoverable amount. If the recoverable amount of fixed assets is lower than the book value due to a
continuous decline in the market value or technological obsolescence damage or long-term idleness
a provision for impairment of the fixed assets shall be made for the difference between the recoverable
amount and the book value of individual fixed assets. If the recoverable amount of the individual asset
is difficult to estimate the Company will determine the recoverable amount of the asset group based on
the asset group to which the asset belongs. The impairment losses on fixed assets must not be
reversed in subsequent accounting periods once recognized.For fixed assets for which depreciation provision has been made the depreciation rate and depreciation
amount shall be remeasured according to the book value of the fixed assets (the original price of fixed
assets minus accumulated depreciation and provision for impairment) and the remaining service life.On the balance sheet date the fixed assets shall be measured at the lower of the book value and the
recoverable amount.
5. 25. Construction in progress
(1) Construction in progress refers to various construction and installation works carried out for the
construction or repair of fixed assets including the actual expenditure incurred in new construction
reconstruction and expansion and the net value of fixed assets transferred from the reconstruction and
expansion projects.
(2) Construction in progress is accounted on an individual project basis with actual cost valuation
method. The borrowing costs incurred before the projects reach the intended use condition shall be
1032023 Interim Report of Luzhou Laojiao Co. Ltd.
included in the project cost. The fixed assets shall be carried forward in the month when the project is
qualified for acceptance and delivery for use. For those that have reached the intended use condition
but have not yet completed the final account from the date of reaching the intended use condition
according to the project budget construction cost or the actual cost of the project the cost transferred
to the fixed assets shall be determined according to the estimated value and the depreciation shall be
recognized; After the completion of the final account the original provisional value shall be adjusted
according to the actual cost but the amount of depreciation accrued shall not be adjusted.
(3) The loan interest and related expenses incurred during the construction period shall be capitalized
into the cost of the construction in Progress.
(4) On the balance sheet date the construction in progress is recognized at the lower of book value and
recoverable amount.
5. 26. Borrowing costs
(1) Scope of borrowing costs and its capitalization conditions
The Company’s borrowing costs capitalized during period of capitalization are relevant loan expenses
directly attributable to the assets eligible for capitalization including interest thereon amortization of
discounts or premiums ancillary expenses and exchange differences incurred from foreign currency
loan etc.Borrowing costs are capitalized when the following three conditions are met simultaneously: * the
asset expenditure has occurred * the borrowing costs have occurred * the purchase and
construction activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed for
acquiring and constructing or producing assets eligible for capitalization borrowing costs of special loan
actually incurred in the current period less the interest income of the loans unused and deposited in
bank or return on temporary investment should be recognized as the capitalization amount of borrowing
costs. As for general loans used for acquiring and constructing or producing assets eligible for
capitalization the interest of general loans to be capitalized should be calculated by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements in excess of
special loans by the capitalization rate of used general loans. During the period of capitalization the
capitalized amount of interest of each accounting period shall not exceed the current actual interest of
the relevant loans. Where there are discounts or premiums on loans the amounts of interest for each
accounting period should be adjusted taking account of amortizable discount or premium amounts for
the period by effective interest method. Auxiliary expenses incurred from special loans before the
acquired or constructed assets eligible for capitalization reach the working condition for their intended
use or sale should be capitalized when they incur and charged to the costs of assets eligible for
1042023 Interim Report of Luzhou Laojiao Co. Ltd.
capitalization; those incurred after the acquired or constructed assets eligible for capitalization reach the
working condition for their intended use or sale should be recognized as costs according to the
amounts incurred when they incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
For a special loan for the purchase and construction of fixed assets the capitalization rate is the
interest rate of the loan;
For more than one special loan for the acquisition and construction of fixed assets the capitalization
rate is a weighted average interest rate of these loans.
(4) Capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months the capitalization of
borrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
profit or loss for the current period and the capitalization of borrowing costs continues when the
acquisition and construction or production activities of the asset resume.
(5) Capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets
eligible for capitalization have reached the working condition for their intended use or sale. Borrowing
costs incurred after the assets eligible for capitalization have reached the working condition for their
intended use or sale should be recognized as the current profit and loss when they incur. If parts of the
acquired and constructed or produced assets are completed separately but the assets cannot be used
or sold externally until overall completion the capitalization of borrowing costs should cease at the time
of overall completion of the said assets.
5.27. Biological assets
N/A
5.28. Oil and gas assets
N/A
5. 29. Using right assets
Refer to Note 5.42 Lease for the detail.
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5. 30. Intangible assets
(1) Measurement method useful life impairment test
Intangible assets refer to identifiable non-monetary assets that are owned or controlled by the Company
without a physical form.Measurement method
a. Costs of intangible assets purchased include purchase price related tax and expenses and other
expenditure that can be distributed to the asset directly to reach its expected use.b. Intangible assets invested by investors shall be valued at the value agreed upon in the investment
contract or agreement;
c. Expenses on the research phase of internally researched and developed intangible assets shall be
included in the current profit and loss when they incur; The expenditures incurred in the development
stage of the internal research and development projects shall be recognized as intangible assets when
the following conditions are met; otherwise they shall be recorded into the current profit and loss when
they incur.i. It is technically feasible to finish intangible assets for use or sale;
ii. It is intended to finish and use or sell the intangible assets;
iii. The usefulness of methods for intangible assets to generate economic benefits shall be proved
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets themselves or
the intangible assets will be used internally;
iv. 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.v. The expenditure attributable to the intangible asset during its development phase can be
measured reliably.d. If payment of the purchase price of intangible assets can be deferred and exceeds normal credit
conditions the purchase has the nature of finance in fact and cost of the intangible asset shall be
determined on the basis of present value of the purchase price. The difference between the amount
actually paid and the present value of the purchase price should be recorded into current profit or loss
other than those should be capitalized during the credit period.Useful life and amortization method
For intangible assets with limited useful life amortization shall be carried out according to the straight-
line method within the period that brings economic benefits to the enterprise. At the end of each period
the useful life and amortization method of intangible assets with limited service life shall be reviewed. If
there are differences with the original estimates corresponding adjustments shall be made.
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Intangible assets whose useful life is uncertain shall be regarded as intangible assets if it is impossible
to foresee the term in which intangible assets bring economic benefits to the enterprise. Intangible
assets with uncertain useful life shall not be amortized during the holding period and the life of
intangible assets shall be reviewed at the end of each period. If it is still uncertain after the review at the
end of the period the impairment test shall continue during each accounting period. At the end of each
period the useful life of intangible assets with uncertain service life shall be reviewed.Impairment test
On the balance sheet date intangible assets are valued at the lower of book value and recoverable
amount.
(2) Internal research and development expenditure accounting policy
The expenditures incurred in the development stage of the internal research and development projects
shall be recognized as intangible assets when the following conditions are met; otherwise they shall be
recorded into the current profit and loss when they occur.a. It is technically feasible to finish intangible assets for use or sale;
b. It is intended to finish and use or sell the intangible assets;
c. The usefulness of methods for intangible assets to generate economic benefits shall be proved
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
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.Development expenditures that have been recorded into profit and loss in previous periods are not
recognized as assets in subsequent periods. The capitalized expenditure in the development stage is
listed as development expenditure in the balance sheet and it will be recorded into intangible assets
from the date when the project reaches its intended purpose.
5. 31. Long-term assets impairment
On the balance sheet date the Company makes a judgment on whether there are signs of possible
impairment of long-term assets. If there are impairment indicators of non-current assets the Company
estimates the recoverable amount based on individual asset. If recoverable amount of individual asset
is difficult to be estimated the Company should recognize the recoverable amount of the asset group
which the individual asset belongs to.
1072023 Interim Report of Luzhou Laojiao Co. Ltd.
The recoverable amount is the higher of fair values less costs of disposal and the present values of the
future cash flows expected to be derived from the asset.If the measurement result of recoverable amount shows that recoverable amount of the non-current
assets is less than its book value the book value shall be written down to the recoverable amount and
the amount written down shall be recognized as the impairment loss of assets recorded into the current
profit and loss and the corresponding impairment provision of assets shall be made at the same time.Once impairment loss stated above is recognized reversal is not allowed in the subsequent accounting
periods.After the recognition of the impairment loss the depreciation or amortization expense of the impairment
asset shall be adjusted accordingly in the future period so as to systematically apportion the adjusted
book value of the asset (deducting the expected net salvage value) within the remaining service life of
the asset.The Company should perform impairment test for goodwill and intangible assets with indefinite life at
least at each year end no matter whether there is impairment indicator.Goodwill shall be combined with its related asset group or asset group portfolio so as to perform an
impairment test. When the Company performs an impairment test on relevant asset group or asset
group portfolio including goodwill if there are signs of impairment the Company shall firstly perform an
impairment test on asset group or asset group portfolio excluding goodwill and calculate the
recoverable amount and compare with the related book value recognize the corresponding impairment
loss. Then the Company performs an impairment test on relevant asset group or asset group portfolio
including goodwill and compares the book value of the relevant asset groups or asset group portfolio
(including proportional book value of goodwill) with its recoverable amount. If the recoverable amount of
relevant asset group or asset group portfolio is less than its book value the Company shall recognize
impairment loss of goodwill.
5. 32. Long-term deferred expenses
Long-term deferred expenses shall be initially measured according to the actual costs incurred. It is
amortized using the straight-line method over the beneficial period. If it cannot benefit the following
accounting period the amortized value of the item that has not been amortized will be transferred to the
current profit and loss.
5. 33. Contract liabilities
The recognition method of contract liabilities: The Company presents contract assets or contract
liabilities on the balance sheet according to the relationship between the fulfillment of its contract
performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of
transferring commodities or providing services to customers as the Company has received or should
receive customers’ considerations are presented as contract liabilities.
1082023 Interim Report of Luzhou Laojiao Co. Ltd.
5. 34. Employee benefits
(1) Accounting treatment method of short-term benefits
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the
reporting period in which the employee provided relevant services excluding the compensation for
employment termination. Accrued short term benefits will be recognized as liability during the
accounting period in which the employee is providing the relevant service to the Company. The liability
will be included in the current profit and loss or the relevant assets cost.
(2) Accounting treatment method of post-employment benefits
a. Defined contribution plan
The defined contribution plan of the Company includes payments of basic pension and unemployment
insurance calculated according to the local payment base and proportion. The amount shall be included
into the profit and loss or the relevant assets cost for the accounting period in which the employee
provides the service to the Company.b. Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method the
Company will record the benefit obligation generated by the defined benefit plan belonging to the period
during in which the employee provides the service into the current profit and loss or the relevant assets
cost.The deficit or surplus resulting from the present value minus the fair value of the assets of a defined
benefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in the
defined benefit plan the net assets of the defined benefit plan shall be measured at the lower of the
surplus and the upper limit of assets of the defined benefit plan.All defined benefit plan obligations including those expected to be paid within the twelve months
following the end of the annual reporting period in which the employee provides the service are
discounted based on the market yield and high quality corporate bonds in an active market that match
the duration and currency of defined benefit plan obligations on the balance sheet date.The service costs generated by the defined benefit plan and the net interest on net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or relevant assets cost;
Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan are
included in other comprehensive income and are not reversed to profit and loss in subsequent
accounting periods.At the time of settlement of the defined benefit plan the settlement gains or losses shall be recognized
according to the difference between the present value of the obligations of the defined benefit plan and
the settlement price determined on the settlement date.
1092023 Interim Report of Luzhou Laojiao Co. Ltd.
(3) Accounting treatment method of termination benefits
Employee benefits liabilities shall be recognized and included into profit or loss for the current period on
the earlier date of the two following circumstances:
a. When the Company is not able to withdraw the benefits from termination of employment or
resignation persuasion unilaterally;
b. When the Company recognizes costs and fees relevant to reforming the termination benefits
payment.As for the termination benefits that cannot be fully paid within 12 months after the end of the annual
report period the Company shall choose an appropriate discount rate and record it into current profit
and loss based on it.
(4) Accounting treatment method of other long-term employee benefits
Other long-term employee benefits are all employee benefits other than short-term benefits post-
employment benefits and termination benefits.Other long-term employee benefits provided by the Company to the employee that meet the conditions
of the defined contribution plan shall be treated in accordance with the same principles of the defined
contribution plan; If the conditions for defined benefits are met net liabilities or net assets of other long-
term employee benefits shall be recognized and measured in accordance with the relevant principles of
the defined benefits plan.
5. 35. Lease liabilities
Refer to the Note 5.42 Lease for details.
5. 36. Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the contingent obligations meet the following conditions simultaneously the Company shall recognize
it as an estimated liability:
This obligation is the Company's current obligation; the performance of this obligation is highly likely to
result in an outflow of economic benefits from the Company; The amount of the obligation can be
measured reliably.
(2) Measurement method of estimated liabilities
The Company's estimated liabilities are initially measured in terms of the best estimate of the
expenditure of fulfilling the relevant current obligations.For determining the best estimate the Company takes various factors into account such as the risk
1102023 Interim Report of Luzhou Laojiao Co. Ltd.
uncertainty and time value of money related to contingencies. If the time value of money has a
significant impact the best estimate is determined by discounting the relevant future cash outflows.The best estimate is processed as follows:
Where there is a continuous range (or range) of required expenditures and the probability of the
occurrence of various results within the range is same the best estimate is determined according to the
mean of the middle value of the range namely the mean value of the upper and lower limits.Where there is no continuous range (or range) of required expenditures or where there is a continuous
range but the possibility of various outcomes within the range is different if the contingencies involve a
single item the best estimate is determined according to the most likely amount; If the contingencies
involve more than one item the best estimate is calculated and determined according to various
possible results and relevant probabilities.Where all or part of the expenses required for the liquidation of the estimated liabilities of the Company
are expected to be compensated by a third party the amount of compensation shall be recognized as
an asset when it is basically confirmed that it can be received and the confirmed amount of
compensation shall not exceed the book value of the estimated liabilities.
5. 37. Share-based payment
(1) The type of share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-
based payment.
(2) The method of determining the fair value of equity instruments
For equity-settled share-based payment related with employees the equity instrument is measured at
fair value. The cash-settled share-based payment shall be measured according to the fair value of the
liabilities calculated and determined on the basis of shares or other equity instruments undertaken by
the Company.For the fair value of the stock option granted the fair value is determined by using the stock option
pricing model and the following factors are taken into account: the current price of the underlying
shares the exercise price of the option the risk-free interest rate within the period of the option the
option life and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercised
For the equity-settled share-based payment settled immediately after the grant the fair value of the
equity instrument shall be included in the relevant costs or expenses on the grant date and the capital
reserve shall be increased accordingly. Grant date means the date on which the share-payment
agreement is approved.For the equity-settled share-based payment in which the services during waiting period are completed
1112023 Interim Report of Luzhou Laojiao Co. Ltd.
and the performance conditions are met in return for services of employees on each balance sheet
date during waiting period the current obtained service shall be included in the relevant costs or
expenses and the capital reserves in accordance with the fair value of the equity instruments on the
grant date based on best estimate of the number of vested equity instruments and the subsequent
changes in fair value shall not be recognized. On each balance sheet date during waiting period the
Company makes the best estimate based on the latest available employee number change and other
subsequent information and modifies the number of equity instruments for the estimated vesting. On
the vesting date the final expected number of vesting instruments is the same as the actual number of
vesting instruments.
(4) Relevant accounting treatment of implement modification and termination of share-based payment
plan
For equity-settled share-based payment no adjustments will be made to the recognized costs and total
owners' equity after the vesting date. On the vesting date the Company shall recognize the share
capital and the equity premium according to the exercise situation and carry forward the capital reserve
recognized in the waiting period.No matter how it modifies the terms and conditions of the granted equity instruments or it cancels the
granted equity instruments or its settlement the equity instruments granted by the Company shall be
recognized at fair value on the grant date and it measures obtained the corresponding services unless
it cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
5.38. Other financial instruments such as preferred shares and perpetual bonds
N/A
5. 39. Revenue
Accounting policies for recognition and measurement of revenue
(1) Basic principles of revenue identification
The Company recognizes revenue when it has fulfilled the performance obligations under the contract
that is when the customers obtain the control of relevant goods or services at the transaction price
allocated to the performance obligations.Performance obligations refer to the Company's promise that it will transfer clearly distinguishable
goods or services to customers under the contract.Obtaining control of related goods refers to that customers can control the use of the goods and obtain
almost all the economic benefits from the goods.The Company will evaluate the contract on the contract start date identify each individual performance
obligation contained in the contract and judge whether each individual performance obligation will be
1122023 Interim Report of Luzhou Laojiao Co. Ltd.
performed within a certain period of time or at a certain point in time. If one of the following conditions is
met and the performance obligation are performed within a certain period of time the Company will
identify revenue within a period of time according to the performance progress: a. The customers obtain
and consume the economic profits while the Company performs the contract. b. The customers can
control the products under construction during the performance of the Company; c. The products
produced during the performance of the Company cannot be replaced and the Company has the right
to collect payment for the completed performance accumulated during the entire contract period.Otherwise the Company will identify revenue when the customers obtain control rights of the relevant
goods or services.For the performance obligations performed within a certain period of time the Company will apply the
input-output method to identify the appropriate performance progress based on the nature of the goods
and services. The input-output method is to identify the performance progress based on the value of the
goods that have been transferred to the customers to the customers. When the performance progress
cannot be reasonably identified and the Company's incurred costs are expected to be compensated
the Company will identify the revenue according to the amount of the incurred costs until the
performance progress can be reasonably identified.
(2) The methods of revenue identification
The Company mainly sells alcoholic products which is a performance obligation performed at a certain
point in time. The revenue identification of domestic products must meet the following requirements: a.The Company has delivered the products to the purchasers according to the contract and the
purchasers have signed and confirmed the receipts. b. The amount of sales revenue has been
identified. c. The payment has been received; the receipt of the document of title has been obtained
and the relevant economic benefits are likely to flow in. d. The product-related costs can be reliably
calculated. The following requirements must be met to confirm the revenue of export products: a. The
Company has declared the products in accordance with the contract obtained the bills of lading
received the payment or obtained the receipt of payment and related economic benefits that are likely
to flow in. b. The main risks and rewards of the product ownership have been transferred. c. The legal
ownership of the goods has been transferred.
5. 40. Government grants
Government grants are monetary assets and non-monetary assets acquired free of charge by the
Company from the government like fiscal subsidies.
(1) Judgment basis and accounting treatment method of government grants related to assets
Government grants related to assets are government grants that are acquired by the Company and
used for forming long-term assets through purchasing and constructing or other ways. If the
1132023 Interim Report of Luzhou Laojiao Co. Ltd.
government documents do not clearly specify the target of the subsidy the Company shall separately
explain judgment basis of classifying the government grants into the government grants related to
assets or income.Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives
(the period of depreciation and amortization) of the relevant assets from the month of commence of
depreciation or amortization when the relevant assets reaching the intended use condition and
included in the current profit or loss. However government grants measured at the nominal amount
shall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income are government grants other than government grants related to
assets;
Accounting method:
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 on acquisition or written off of the related costs.c. Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for the
government grants and the Company can receive the grants.d. Measurement of government grants
If a government grant is a monetary asset it shall be measured in the light of the received or receivable
amount. If a government grant is a non-monetary asset it shall be measured at its fair value; and if its
fair value cannot be obtained in a reliable way it shall be measured at a nominal amount.
5. 41. Deferred tax assets or deferred tax liabilities
The Company adopts the balance sheet liability method to account for income tax.The Company recognizes deferred tax assets when the following conditions are met simultaneously:
i. Temporary differences are highly likely to be reversed in the foreseeable future;
ii. Taxable income that may be used to offset the deductible temporary difference is likely to be
obtained in the future and is limited to the amount of taxable income that is likely to be obtained.On each balance sheet date the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
1142023 Interim Report of Luzhou Laojiao Co. Ltd.
expected to be recovered or the liabilities are expected to be settled.The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income except for the income tax generated from the enterprise merger
transactions or events directly recognized in the owner's equity.
5. 42. Lease
(1) Lease
From the effectiveness date of a contract the Company assessed whether the contract was a lease or
includes any lease. If a party to the contract transferred the right allowing the control over the use of
one or more assets that had been identified within a certain period in exchange for a consideration
such contract was a lease or includes a lease.
(1) Accounting treatment with the Company as lessee
On the commencement date of the lease term the Company recognizes the right-of-use assets and
lease liabilities for the lease unless it is a simplified short-term lease or a low-value asset lease.Right-of-use assets are initially measured at costs including: A. The initial measurement amount of
lease liabilities; B. If there is a lease incentive for the lease payment paid on or before the start date of
the lease term the relevant amount of the lease incentive already enjoyed shall be deducted; C. Initial
direct expenses incurred by the Company; D. The expected cost to be borne by the Company in order
to dismantle and remove the assets leased restore original state of the place where the assets leased
are in or restore the assets leased to the state stipulated in the lease terms.The Company initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term. When calculating the present value of lease
payments the Company uses the interest rate implicit in lease as the rate of discount. If the interest
rate implicit in lease cannot be determined the Company’s incremental lending rate is used as the rate
of discount.After the commencement of the lease term the Company uses the cost model for subsequent
measurement of right-of-use assets depreciates right-of-use assets on a straight-line basis calculates
the interest expense on the lease liability within the lease term and includes it in the current profit or
loss unless such interest charge is stipulated to be included in the underlying asset cost. Variable lease
payments that are not included in the measurement of the lease obligation should be included in the
current profit or loss when they are actually incurred unless such payments are stipulated to be
included in the underlying asset cost.After the commencement of the lease term the Company remeasures the lease liability and adjusts the
corresponding right-of-use asset and if the carrying value of the right-of-use asset has been reduced to
zero but the lease liability is subject to further reduction the difference is recorded in current profit or
1152023 Interim Report of Luzhou Laojiao Co. Ltd.
loss: (1) When there is a change in the valuation of the purchase option renewal option or termination
option or actual exercise the Company remeasures the lease liabilities at the present value of the
lease payments after the change and the revised discount rate; (2) When there is a change in the
actual fixed payment the estimated payable of the residual value of the guarantee the index or rate
used to confirm the lease payment the Company calculated the present value based on the changed
lease payment amount and the original discount rate to remeasure the lease liabilities. However where
changes in lease payments arise from changes in floating interest rates a revised discount rate was
used to calculate the present value.The Company does not recognize the right-of-use assets and lease liabilities for short-term leases and
leases of low-value assets which are included in the profit or loss for the current period or the cost of
relevant assets on a straight-line basis during each period of the lease term.
(2) Accounting treatment with the Company as lessor
* Lease classification
The Company classifies leases into finance leases and operating leases at the inception of leases. A
finance lease refers to a lease where almost all the risks and rewards related to the ownership of the
leased asset are substantially transferred regardless of whether the ownership is eventually
transferred or not. All leases other than finance leases are classified as operating leases.* Accounting treatment of finance leases
On the commencement date of the lease term the Company recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. In the initial measurement
of finance lease receivables the sum of the unsecured residual value and the present value of the
lease payments receivable not yet received on the commencement date of the lease term discounted at
the interest rate implicit in lease is the entry value of the finance lease receivables. The Company
calculates and recognizes the interest income in each period within the lease term at a fixed interest
rate implicit in the lease. The received variable lease payments that are not included in the
measurement of the net investment in the lease are included in profit or loss for the current period when
they are actually incurred.* Accounting treatment of operating leases
The Company recognizes the lease payments receivable of the operating lease as rental earnings in
each period within the lease term on a straight-line basis or according to other systematic and
reasonable methods. The initial direct costs related to the operating lease are capitalized amortized
within the lease term on the same basis as the recognition of rental earnings and included in profit or
loss for the current period. The received variable lease payments related to the operating lease that are
not included in the lease payments receivable are included in profit or loss for the current period when
they are actually incurred.
1162023 Interim Report of Luzhou Laojiao Co. Ltd.
5.43. Income tax expenses
The Company adopts the balance sheet liability method to account for income tax.The Company recognizes deferred tax assets when the following conditions are met simultaneously:
1. Temporary differences are highly likely to be reversed in the foreseeable future;
2. Taxable income that may be used to offset the deductible temporary difference is likely to be obtained
in the future and is limited to the amount of taxable income that is likely to be obtained.On each balance sheet date the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and
loss as income tax expense or income except for the income tax generated from the enterprise
merger transactions or events directly recognized in the owner's equity.
5. 44 Changes in significant accounting policies and accounting estimates
5.44.1. Changes in significant accounting policies
□Applicable □ N/A
5.44.2. Changes in significant accounting estimates
□Applicable □ N/A
5.44.3. Adjustments to Financial Statement Items at the Beginning of the Year of the First
Implementation of the New Accounting Standards Implemented since 2023
□Applicable □ N/A
5.45. Other
N/A
6. Taxes
6.1. Major tax types and rates
Tax type Tax base Tax rate
Value-added tax Taxable sales income 13 % 9% 6%
Urban maintenance and construction
Taxable turnover tax 7%
tax
1172023 Interim Report of Luzhou Laojiao Co. Ltd.
Corporate income tax Taxable income 25% 15% 16.5% 9% 0%
Consumption tax (based on price) Baijiu tax price or ex-factory price 20%
Consumption tax (based on quantity) Quantity of baijiu CNY 1.00/kg
Education surcharge Taxable turnover tax 3%
Local education surcharge Taxable turnover tax 2%
Original value of the property*70%;
Property tax 1.2% 12%
house rent
Land use tax Land area CNY 5-18.00/m2
Others According to national regulation
Tax payment subject using different corporate income tax rates the corporate income tax rates are as
follows:
Company name Corporate income tax rate
Luzhou Pinchuang Technology Co. Ltd. 15%
Luzhou Laojiao International Development (Hong Kong)
16.5%
Co. Ltd.Luzhou Laojiao Commercial Development (North
21%-40%
America) Co. Ltd.Mingjiang Co. Ltd. 21%-40%
Luzhou Red Sorghum Modern Agricultural Development
Exempted from corporate income tax
Co. Ltd.Guangxi Luzhou Laojiao Imported Liquor Industry Co.
9%
Ltd.Luzhou Laojiao International Trade (Hainan) Co. Ltd. 15%
6.2. Tax preferences
(1) According to Announcement of the Ministry of Finance State Taxation Administration and
National Development and Reform Commission on Continuing the Corporate Income Tax Policies
Concerning the Western Development Strategy (No. 23 in 2020 Ministry of Finance) the Company's
wholly-owned subsidiary Luzhou Pinchuang Technology Co. Ltd. whose primary business income
meet the requirements of scope and standard of the Catalogue of Encouraged Industries in the
Western Region is paid at the rate of 15% for corporate income tax.
(2) According to Article 27 of the Corporate Income Tax Law of the People's Republic of China and
Article 86 Item 1 of the Implementation Regulations of the Corporate Income Tax Law companies are
exempted from enterprise income tax when they engage in agricultural forestry animal husbandry and
fishery industries. The holding subsidiary of the Company Luzhou Red Sorghum Modern Agricultural
Development Co. Ltd. is engaged in the cultivation and sale of organic sorghum and enjoys the
reduction of corporate income tax preferences.
(3) According to the Article 15 Item 1 of the Provisional Regulations on Value-Added Tax agricultural
producers sell self-produced agricultural products exempt from value-added tax. The holding subsidiary
of the Company Luzhou Red Sorghum Modern Agricultural Development Co. Ltd. is engaged in the
cultivation and sale of organic sorghum and enjoys the value-added tax exemption.
1182023 Interim Report of Luzhou Laojiao Co. Ltd.
(4) According to the Article 3 Item 7 of the Notice on Revise of Interim Measures of Accelerating the
Development in Headquarters Economy of China-Malaysia Qinzhou Industrial Park till 31 December
2025 the enterprises in the Qinzhou Industrial Park that enjoy 15% of tax rate of Western
Development with the half reduction in the tax period of preferential policies shall enjoy the local
share of corporate income tax exemption (namely 40% of corporate income tax was exempted and
the proportion adjusted by the state shall be executed according to new proportion); Guangxi Luzhou
Laojiao Imported Liquor Industry Co. Ltd. the wholly-owned subsidiary of the Company pays
corporate income tax at the rate of 9% according to the tax preference policies.
(5) According to Announcement on Preferential Corporate Income Tax Policies in Hainan Free Trade
Port (Cai Shui [2020] No. 31) the Company's wholly-owned subsidiary Luzhou Laojiao International
Trade (Hainan) Co. Ltd. whose primary business income meet the requirements of scope and
standard of the Catalogue of Encouraged Industries in Hainan Free Trade Port is paid at the rate of
15% for corporate income tax.
7. Notes to the main items of the consolidated financial statements (All
currency unit is CNY except other statements)
7.1. Cash and cash equivalents
Monetary Unit: CNY
Item Closing Balance Opening Balance
Cash 34319.35 28711.93
Bank deposit 30324182733.78 17729643050.90
Other cash and cash equivalents 20258485.00 27856448.42
Total 30344475538.13 17757528211.25
Including: Total deposit outbound 81637756.42 68948954.39
Total amount with
restriction to use due to mortgage 32939930.13 28521619.38
pledge or freeze
Other statements:
Note 1: The deposit outbound is the balance of cash and cash equivalents of the foreign holding
subsidiary of the Company.Note 2: The closing balance of other cash and cash equivalents is the balance of CNY 10258485.00
deposited by the subsidiary Luzhou Laojiao Electronic Commerce Co. Ltd. Luzhou Laojiao Selected
Supply Chain Management Co. Ltd. and Luzhou Laojiao Nostalgic Liquor Marketing Co. Ltd. on the
third-party e-commerce platform and guaranty letter deposit of CNY 10000000.00 by the subsidiary
Luzhou Laojiao Sales Co. Ltd. in the bank.Note 3: The closing balance increased by CNY 12586947326.88 up 70.88% compared with the
beginning of the period which was mainly due to the combined effect of net positive cash flows from
operating activities and the acquisition of bank borrowings in the current period.Note 4: There is no special benefit arrangement such as establishing a fund co-management account
with related parties in the current period.Liquor and wine manufacturing companies shall disclose in detail whether there are special interest
arrangements such as establishing co-management accounts with related parties.
1192023 Interim Report of Luzhou Laojiao Co. Ltd.
□Applicable □ N/A
7.2. Held-for-trading financial assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
Financial assets measured at fair
value with their changes included into 200056716.13 1073466780.37
current profits/losses
Including:
Wealth management products
measured at fair value with their
200056716.131073466780.37
changes included into current
profits/losses
Including:
Total 200056716.13 1073466780.37
Other statements:
Note 1: The closing balance is the Company’s wealth management products of the collective asset
management plan purchased from securities-type companies which are measured at fair value based
on the amount calculated on the basis of the net value of relevant asset units published on the official
website of the asset manager.Note 2: The closing balance decreased by CNY 873410064.24 down 81.36% compared with the
beginning of the period which was mainly due to the redemption of wealth management products of
the collective asset management plan from securities-type companies in the current period.
7.3. Accounts receivable
7.3.1. Classification of accounts receivable
Monetary Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Includin
g:
Account
s
receiva
ble
tested 15537 100.00 816382 14720 62658 100.00 326470 59394
5.25%5.21%
for 126.37 % .78 743.59 90.81 % .03 20.78
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
ble
15537100.008163821472062658100.0032647059394
tested 5.25% 1 5.21%
for 126.37 % .78 743.59 90.81 % .03 20.78
impairm
ent on
the
1202023 Interim Report of Luzhou Laojiao Co. Ltd.
portfolio
with
charact
eristics
of credit
risk
15537100.008163821472062658100.0032647059394
Total 5.25% 5.21%
126.37%.78743.5990.81%.0320.78
Note: 1. The closing book value increased by CNY 8781322.81 up 147.85% compared with the
opening book value which was mainly due to the sales of overseas business.Accounts receivable tested for impairment on the portfolio:
Monetary Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 15537126.37 816382.78 5.25%
Other portfolio
Total 15537126.37 816382.78
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable
□Applicable □ N/A
Disclosure by aging
Monetary Unit: CNY
Aging Closing balance
Within 1 year (including 1 year) 15273616.57
2-3 years 263509.80
Total 15537126.37
7.3.2. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening Closing
Type
Balance Reversal or Allowance Write-off Other Balance
recovery
Provision
allowance by 326470.03 489912.75 816382.781
risk portfolio
Total 326470.03 489912.75 816382.78
Note: There is no significant provision in accounts receivable reversed or recovered in the reporting
period.
7.3.3. Top five entities with the largest balances of accounts receivable
Monetary Unit: CNY
1212023 Interim Report of Luzhou Laojiao Co. Ltd.
Proportion to total closing
Closing balance of
Company name Closing Balance balance of accounts
provision for bad debt
receivable
China Duty Free
12586453.7881.01%629322.69
International LTD
Sazerac Distiller LLC 1226993.73 7.90% 61349.69
BAIWAN WINES INC. 720621.23 4.64% 36031.06
Tai Fung Castelmor. Ltd 361259.42 2.33% 18062.97
Beijing Secoo Trading
263509.801.70%52701.96
Limited
Total 15158837.96 97.58%
7.4. Accounts receivable financing
Monetary Unit: CNY
Item Closing Balance Opening Balance
Bank acceptance bill 2765330012.771 4583352503.37
Total 2765330012.77 4583352503.37
Note: 1. The business mode to manage notes receivable aims to collect contract cash flow as well as
to sell the financial assets and thus the notes receivable is presented as accounts receivable
financing; since the timing and price of bills discounted may not be reliably estimated due to the short
maturity of the bills all being less than one year and the endorsement of the negotiable bills being
valued at book value the face value is regarded as the fair value of accounts receivable financing by
the Company.
2. There was no allowance of provision for bad debt at the end of the reporting period.
3. The closing balance decreased by CNY 1818022490.60 down 39.67% compared with the
opening balance which was mainly due to the impact of bill discount and remittance of bills for
collection at maturity.Changes in accounts receivable financing in the reporting period and fair value:
□Applicable □ N/A
Please refer to the relevant information of disclosure of impairment provision of other accounts
receivable if adopting the general mode of expected credit loss to withdraw impairment provision of
accounts receivable financing.□Applicable □ N/A
Other statements:
(1) There was no accounts receivable financing pledge at the end of the period.
(2) There is CNY 11948776869.96 as follows of accounts receivable financing that have been
endorsed to other parties by the Company but have not expired at the end of the period:
Item Derecognition at period-end Not derecognition at period-end
Bank acceptance bill 11948776869.96
Subtotal 11948776869.96
Note: The acceptor of the bank acceptance bill is a commercial bank. The probability of not being paid
due is very low and the possibility of being recourse is very low so the confirmation has been
terminated.
(3) There are no accounts receivable financing transferred to accounts receivable due to the non-
1222023 Interim Report of Luzhou Laojiao Co. Ltd.
performance of the agreements by the issuers.
(4) There are no accounts receivable financing actually written off during the reporting period.
7.5. Prepayment
7.5.1. Aging analysis
Monetary Unit: CNY
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 176583433.39 97.00% 108917843.70 95.33%
1-2 years 4448878.90 2.44% 3541174.81 3.10%
2-3 years 894649.47 0.49% 1633422.20 1.43%
Over 3 years 128485.061 0.07% 165065.55 0.14%
Total 182055446.82 114257506.26
Note: 1. The Closing balance increased by CNY 67797940.56 up 59.34% compared with the
opening balance which was mainly due to the increase in prepayments for suppliers.Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There is no significant prepayment whose aging is longer than 1 year.
7.5.2. Top five entities with the largest balances of prepayment
Proportion to the total closing
Company Name Closing Balance
balance of prepayment
Shanghai Merlot Advertising Co. Ltd. 62911313.05 34.56%
Sichuan Branch of Taiping Pension Co.Ltd. 22085460.00 12.13%
Luzhou Western Gas Co. Ltd. 18236095.48 10.02%
Luzhou Power Supply Company of State Grid
6984742.47 3.84% Sichuan Electric Power Company
Beijing Jingshi Satellite Media Co. Ltd. 5885135.14 3.23%
Subtotal 116102746.14 63.78%
7.6. Other receivables
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividend receivable 15482200.48
Other receivables 16061082.55 23396533.98
Total 31543283.03 23396533.98
7.6.1. Dividend receivable
7.6.1.1. Classification of dividend receivable
Monetary Unit: CNY
Item (investee) Closing Balance Opening Balance
Guotai Junan Securities Co. Ltd. 6241808.41
Huaxi Securities Co. Ltd. 8184934.32
1232023 Interim Report of Luzhou Laojiao Co. Ltd.
North Chemical Industries Co. Ltd. 78177.75
China Tourism Group Duty Free
977280.00
Corporation Limited
Total 15482200.48
7.6.1.2. Allowance of provision for bad debt
□Applicable □ N/A
Other statements:
There was no allowance of provision for bad debt at the end of the reporting period.
7.6.2. Other receivables
7.6.2.1. Other receivables disclosed by nature
Monetary Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds and others 10522277.29 18516591.35
Petty cash 698041.59 326785.39
Saving deposits involving contract
1 128717028.72 129049496.98 disputes
Total 139937347.601 147892873.72
Note 1: The saving deposits involving contract disputes are three deposits amounting to CNY
500000000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and Nanyang
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement in
contract disputes and have thus been transferred into “other receivables”.
7.6.2.2. Allowance of provision for bad debt
Monetary Unit: CNY
First stage Second stage Third stage
Provision for bad Expected loss in the Expected credit loss Expected loss in the
debt duration (credit
Total
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of 1 January
4496339.74120000000.00124496339.74
2023
Balance of 1 January
2023 in the current
period
Recovery 620074.69 620074.69
Balance of 30 June
3876265.05120000000.00123876265.05
2023
Changes of book balance with significant amount changed of loss provision in the current period
□Applicable □ N/A
1242023 Interim Report of Luzhou Laojiao Co. Ltd.
Disclosure by aging
Monetary Unit: CNY
Aging Closing balance
Within 1 year (including 1 year) 7268179.00
1-2 years 159551.76
2-3 years 331759.00
Over 3 years 132177857.84
3-4 years 13800.00
4-5 years 110000.00
Over 5 years 132054057.84
Total 139937347.60
7.6.2.3. Provision and recovery for bad and doubtful other receivables in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Type Opening Balance Reversal or Closing Balance
Allowance Write-off Other
recovery
Other
receivables
tested for 120000000.00 120000000.00
impairment
individually
Other
receivables
tested for 4496339.74 620074.69 3876265.05
impairment by
the portfolio
Total 124496339.74 620074.69 123876265.05
Of which bad debt provision recovered or reversed with significant amount:
No changes with significant amount of loss provision in the current period.
7.6.2.4. Top five entities with the largest balances of the other receivables
Monetary Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Agricultural Bank
of China
Changsha
Yingxin Sub-
branch Industrial Saving deposits
and Commercial involving 128717028.72 Over 5 years 91.98% 120000000.00
Bank of China contract disputes
Nanyang
Zhongzhou Sub-
branch and
another bank
Longmatan
Power Supply
Bureau of Security deposit 1520000.00 Over 5 years 1.09% 1520000.00
Luzhou Power
Bureau
Online Banking Security deposit 300000.00 2-3 years 4-5 0.21% 120000.00
1252023 Interim Report of Luzhou Laojiao Co. Ltd.
(Beijing) years
Technology Co.Ltd.Luzhou Aopulan
Security deposit 300000.00 Over 5 years 0.21% 300000.00
Beer Co. Ltd.Beijing Jingdong
Century Trading Security deposit 100000.00 Over 5 years 0.07% 100000.00
Co.Ltd.Total 130937028.72 93.56% 122040000.00
7.7. Inventories
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
7.7.1. Categories of Inventories
Monetary Unit: CNY
Closing Balance Opening Balance
Pro
visi
on
for
Provi stoc
sion k
for obs
stock oles
obsol cen
escen ce
ce or or
Category impair imp
Book Balance ment Book Value Book Balance airm Book Value
provis ent
ion of prov
contr isio
act n of
perfor cont
manc ract
e perf
costs orm
anc
e
cost
s
Raw
65344880.1465344880.14128252608.95128252608.95
materials
Goods in
8352044350.698352044350.697305642685.287305642685.28
progress
Finished
2364086883.352364086883.352382939263.972382939263.97
goods
Goods in
12680021.8212680021.8223907816.6523907816.65
transit
Total 10794156136.001 10794156136.00 9840742374.85 9840742374.85
Note: 1. The closing balance of inventories included no capitalized amount of borrowing expenses.
2. The closing balance included no restricted balance.
3. There were no unsettled assets of finished job caused by the construction contract at the end of
the period.
1262023 Interim Report of Luzhou Laojiao Co. Ltd.
7.8. Other current assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 96411696.20 139165221.10
Corporate income tax 7333423.79 9447204.77
Other taxes 5406724.20 4423521.07
Total 109151844.19 153035946.94
Other statements:
The value-added tax expected to be deducted in the subsequent accounting period and corporate
income tax and other taxes are disclosed in other current assets.
7.9. Long-term equity investments
Monetary Unit: CNY
Changes in current period
Closin
Openin Gain Adjust Closin g
g or loss ments Cash g Balanc
Investe Balanc recogn of Other divided Provisi Balanc e of
e e Increa Decrea ized other chang or on for Other e provisi
(book se se under compr es in profit impair (book on for
value) equity ehensi equity declar ment value) impair
metho ve ed ment
d income
1. Joint Ventures
2. Associate
Huaxi
Securit 2497 54493 2545
139781842567
ies 54059 747.5 24736
Co. 955.21 934.32 098.80 2.05 7 0.51
Ltd.Luzho
u
Laojiao
Postdo
ctoral
Workst 40185 - 39686
ation 894.7 49983 064.5
Techno 7 0.20 7
logy
Innova
tion
Co.Ltd.Sichua
n
Develo
pment
58895159.5894
Wine
Invest 654.24 39 813.63
ment
Co.Ltd.Sichua
n
Tongni 8086 6025. 8092
ang
855.9199881.90
Baijiu
Industr
y
1272023 Interim Report of Luzhou Laojiao Co. Ltd.
Techno
logy
Resear
ch
Institut
e Co.Ltd.Note
CTS
Luzho
u
Laojiao
Cultura 11579 12275
l 6958
7556.5614.
Touris 058.33
m 20 53
Develo
pment
Co.Ltd.
2667609632721
Subtot 1397 8184 2567
50055161.067673
al 955.21 934.32 098.80
3.1785.14
2667609632721
139781842567
Total 50055 161.0 67673
955.21934.32098.80
3.1785.14
7.10. Other equity instrument investment
Monetary Unit: CNY
Item Closing Balance Opening Balance
Financial assets designated to be
measured at fair value through other
comprehensive income
Including:
China Tourism Group Duty Free
119386821.41807139120.07
Corporation Limited
Guotai Junan Securities Co. Ltd. 164760188.01 160049389.21
Luzhou Bank Co. Ltd. 112018357.27 120158392.72
Guotai Junan Investment
22611834.2422611834.24
Management Co. Ltd.North Chemical Industries Co.Ltd. 14791230.29 14931950.24
Guojiu Big Data Co. Ltd. 10000000.00 10000000.00
Sichuan China Baijiu Golden Triangle
Brand Operation Development Co.
1846291.631846291.63
Ltd. and other equity instrument
investments
Total 445414722.85 1136736978.11
Note: 1. The closing balance decreased by CNY 691322255.26 down 60.82% compared with the
opening balance which was mainly due to the partial disposal of H shares of China Tourism Group
Duty Free Corporation Limited held in the current period.Categories of non-trading equity instrument investment in the current period:
Monetary Unit: CNY
Item Recognized Accumulative Accumulative Amount of Reason for Reason of
1282023 Interim Report of Luzhou Laojiao Co. Ltd.
dividends gains losses other assigning other
income comprehensiv to measure comprehensiv
e income at fair value e income
transferred to and transferred to
retained changes retained
earnings recorded earnings
into other
comprehen
sive income
According
China Tourism to the mode
Group Duty of Partial
Free 977280.00 31811873.87 16215653.21 managing
disposal
Corporation assets by
Limited manageme
nt layer
According
to the mode
Guotai Junan of
Securities 6241808.41 152041031.25 managing
Co. Ltd. assets by
manageme
nt layer
According
to the mode
of
Luzhou Bank
60898357.27 managing
Co. Ltd.assets by
manageme
nt layer
According
to the mode
Guotai Junan of
Investment
managing
Management
Co. Ltd. assets by
manageme
nt layer
According
to the mode
North of
Chemical
78177.75 13761230.29 managing
Industries
Co.Ltd. assets by
manageme
nt layer
According
to the mode
of
Guojiu Big
managing
Data Co. Ltd.assets by
manageme
nt layer
According
to the mode
Shenzhen
of
Xingangfeng
2354000.00 managing
Development
Co. Ltd. assets by
manageme
nt layer
Sichuan 2000000.00 According
1292023 Interim Report of Luzhou Laojiao Co. Ltd.
Deyang Jintai to the mode
Hotel of
managing
assets by
manageme
nt layer
According
Hainan to the mode
Huitong of
International 1000000.00 managing
Trust assets by
Company manageme
nt layer
Sichuan
China Baijiu
According
Golden
Triangle to the mode
Brand of
Operation 398926.37 managing
Development assets by
Co. Ltd. and manageme
other equity
nt layer
instrument
investments
Subtotal 7297266.16 226700618.81 37564800.24 16215653.21
7.11. Investment property
7.11.1. Investment property with cost measurement model
□Applicable □ N/A
Monetary Unit: CNY
Buildings and Construction in
Item Land use right Total
constructions progress
I. Original cost:
1.Opening balance 47321613.93 9566480.21 56888094.14
2.Increase in current
period
(1) External
purchase
(2) Transfer from
inventories/fixed
assets/construction
in progress
(3) Increase from
business
combination
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance 47321613.93 9566480.21 56888094.14
II. Accumulated
depreciation and
amortization
1302023 Interim Report of Luzhou Laojiao Co. Ltd.
1.Opening Balance 15125126.70 2613513.22 17738639.92
2.Increase in current
331448.96350569.76682018.72
period
(1) Provision or
331448.96350569.76682018.72
amortization
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance 15456575.66 2964082.98 18420658.64
III. Provision for
impairment
1.Opening Balance
2.Increase in current
period
(1) Provision
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance
IV. Book Value
1.Closing Book Value 31865038.27 6602397.23 38467435.50
2.Opening Book
32196487.236952966.9939149454.22
Value
7.11.2. Investment property adopting the fair value measurement mode
□Applicable □ Not applicable
7.11.3. Investment property without certification of right
Monetary Unit: CNY
Reason for not having the
Item Book value
certification of right
Buildings of the Company 31865038.27 In procedure
7.12. Fixed assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
Fixed assets 8599184607.11 8853348204.83
Disposal of fixed assets 17203984.00 2910393.95
Total 8616388591.11 8856258598.78
7.12.1. Details of fixed assets
Monetary Unit: CNY
Buildings and Specialized General Transportation Other
Item Total
constructions equipment equipment equipment equipment
1312023 Interim Report of Luzhou Laojiao Co. Ltd.
I. Original
cost:
1.Opening 7584141471 1174111092 1093021145 1604593254 1150223155
46364595.04
balance .95 .25 .63 .93 9.80
2.Increase in
7989453.435862704.0035363784.86128300.8916193648.3565537891.53
current period
(1) External
133529.11434513.284509914.68128300.892350442.427556700.38
purchase
(2) Transfer
from
9928575.774409380.4929556708.2214465281.2158359945.69
construction in
progress
(3) Increase
from business
combination
(4) Adjustment
for completion -2072651.45 1018810.23 1266947.89 -622075.28 -408968.61
settlement
(5) Changes
of exchange 30214.07 30214.07
rates
3.Decrease in
74568052.453839252.3910684164.034734301.1293825769.99
current period
(1) Disposal
74568052.453839252.3910684164.034734301.1293825769.99
or retirement
4.Closing 7517562872 1176134543 1117700766 1616052602 1147394368
46492895.93
Balance .93 .86 .46 .16 1.34
II.Accumulated
depreciation
1.Opening 956719104.1 470768377.6 426894845.3 761612077.9 2648260414
32266009.80
Balance 8 5 7 0 .90
2.Increase in 124927931.5 291924927.9
68724090.3063162919.791501935.3833608050.98
current period 2 7
124927931.5291902202.1
(1) Provision 68724090.30 63140194.01 1501935.38 33608050.98
29
(2) Changes
of exchange 22725.78 22725.78
rates
3.Decrease in
48686667.202814782.9010075878.444471880.1766049208.71
current period
(1) Disposal
48686667.202814782.9010075878.444471880.1766049208.71
or retirement
4.Closing 1032960368 536677685.0 479981886.7 790748248.7 2874136134
33767945.18
Balance .50 5 2 1 .16
III. Provision
for impairment
1.Opening
622940.07622940.07
Balance
2.Increase in
current period
(1) Provision
3.Decrease in
current period
(1) Disposal
or retirement
4.Closing
622940.07622940.07
Balance
IV. Book Value
1.Closing 6483979564 639456858.8 637718879.7 825304353.4 8599184607
Book Value 12724950.75 .36 1 4 5 .11
2.Opening
6626799427703342714.6666126300.214098585.24842981177.08853348204
Book Value
1322023 Interim Report of Luzhou Laojiao Co. Ltd..70063.83
7.12.2. Fixed assets leased out through operating lease
Monetary Unit: CNY
Item Closing book value
Buildings and constructions 22719987.17
Equipment 13027819.00
7.12.3. Fixed assets without certification of right
Monetary Unit: CNY
Reason for not having the
Item Book value
certification of right
The property ownership certificate
has not been processed yet for the
Buildings of the Company 23174737.57 historical reasons and it plans to be
processed after gradually improving
procedures.Buildings of the Company 229630310.67 In procedure
Buildings of the subsidiary-brewing
4354608197.50 In procedure
company
Buildings of the subsidiary- Guangxi
58393017.56 In procedure
Imported Liquor Industry
Subtotal 4665806263.30
7.12.4. Disposal of fixed assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
Disposal and retirement of assets 17203984.00 2910393.95
Total 17203984.00 2910393.95
7.13. Construction in progress
Monetary Unit: CNY
Item Closing Balance Opening Balance
Construction in progress 1209595255.85 808919047.21
Total 1209595255.85 808919047.21
7.13.1. Details of the construction in progress
Monetary Unit: CNY
Closing Balance Opening Balance
Provisi Provisi
Item on for on for
Book balance Book value Book balance Book value
impair impair
ment ment
Technical
renovation of 900179496.39 900179496.39 638798849.16 638798849.16
Luzhou
1332023 Interim Report of Luzhou Laojiao Co. Ltd.
Laojiao
Intelligent
packaging
center
Technical
renovation
project of
Luzhou 22477396.18 22477396.18 12284062.35 12284062.35
Laojiao
intelligent
brewing (I)
Other projects 286938363.28 286938363.28 157836135.70 157836135.70
1
Total 1209595255.85 1209595255.85 808919047.21 808919047.21
Note: 1. The closing balance increased by CNY 400676208.64 up 49.53% compared with the
opening balance which was mainly due to the increase in input in the technical renovation of Luzhou
Laojiao Intelligent packaging center in the current period.
7.13.2. Significant changes in construction in progress
Monetary Unit: CNY
Propo
rtion
Includi
of Accu
ng: Capita
Increa accu mulati
Openi Transf Closin Capita lizatio
se in Other mulati Progr ve Sourc
Budge ng er into g lized n rate
Item curren decre ve ess capital e of
t Balan fixed Balan intere for the
t ases projec (%) ized funds
ce assets ce st for period
period t input intere
the (%)
in st
period
budge
t
Techni
cal
renov
ation
of
Luzho
1886638726249001
u 5074 6062 51.66 60.00 1507
1760988494357949
Laojia 80.08 27.42 % % 69.29 Other
00.009.164.736.39
o
Intellig
ent
packa
ging
center
Techni
cal
renov
ation
projec 4782 1228 1019 2247
12.28
t of 5090 4062. 3333. 7396. 1.00%
% Other
Luzho 00.00 35 83 18
u
Laojia
o
intellig
1342023 Interim Report of Luzhou Laojiao Co. Ltd.
ent
brewi
ng (I)
6668651027269226
507460621507
Total 6850 8291 8768 5689
80.0827.4269.29
00.001.518.562.57
7.14. Right-of-use assets
Monetary Unit: CNY
Item Land use right Buildings and constructions Total
I. Original cost
1. Opening Balance 32680786.33 24896637.03 57577423.36
2. Increase in current
764273.41764273.41
period
(1) Lease in 320211.86 320211.86
(2) Changes of exchange
444061.55444061.55
rates
3. Decrease in current
13862366.9113862366.91
period
(1) Adjustment for change
13862366.9113862366.91
of lease term
4. Closing Balance 32680786.33 11798543.53 44479329.86
II. Accumulated
amortization
1. Opening Balance 7269825.40 10355072.33 17624897.73
2. Increase in current
1817456.354423463.026240919.37
period
(1) Provision 1817456.35 4153704.36 5971160.71
(2) Changes of exchange
269758.66269758.66
rates
3. Decrease in current
9002549.579002549.57
period
(1) Disposal
(1) Adjustment for change
9002549.579002549.57
of lease term
4. Closing Balance 9087281.75 5775985.78 14863267.53
III. Provision for impairment
1. Opening Balance
2. Increase in current
period
(1) Provision
3. Decrease in current
period
(1) Disposal
4. Closing Balance
IV. Book Value
1. Closing Book Value 23593504.58 6022557.75 29616062.33
2. Opening Book Value 25410960.93 14541564.70 39952525.63
1352023 Interim Report of Luzhou Laojiao Co. Ltd.
7.15. Intangible assets
7.15.1. Details of intangible assets
Monetary Unit: CNY
No-patent
Computer Trademark
Item Land use right Patent right right Total
software right
technology
I. Original cost
1. Opening 3288142671 3355293864
1700050.4463336227.722114914.82
Balance .29 .27
2. Increase in
14120082.6314120082.63
current period
(1) Acquired 1540088.66 1540088.66
(2) Internal
developed
(3) Business
combination
(4)
Transferred
from 12579993.97 12579993.97
construction in
progress
(5) Adjustment
for completion
settlement
3. Decrease in
1984960.84247433.632232394.47
current period
(1) Disposal 1984960.84 1984960.84
(2) Other 247433.63 247433.63
4. Closing 3286157710 3367181552
1700050.4477208876.722114914.82
Balance .45 .43
II.Accumulated
amortization
1. Opening 236908207.7 272022011.4
830609.0932408087.271875107.41
Balance 1 8
2. Increase in
36286981.7765002.522838932.0319984.8139210901.13
current period
(1) Provision 36286981.77 65002.52 2838932.03 19984.81 39210901.13
3. Decrease in
1109361.141109361.14
current period
(1) Disposal 1109361.14 1109361.14
4. Closing 272085828.3 310123551.4
895611.6135247019.301895092.22
Balance 4 7
III. Provision
for impairment
1. Opening
Balance
2. Increase in
current period
(1) Provision
3. Decrease in
current period
(1) Disposal
4. Closing
Balance
IV. Book Value
1. Closing 3014071882 3057058000
804438.8341961857.42219822.60
Book Value .11 .96
2. Opening 3051234463 869441.35 30928140.45 239807.41 3083271852
1362023 Interim Report of Luzhou Laojiao Co. Ltd.
Book Value .58 .79
There is no proportion of intangible assets formed by internal development to the balance of
intangible assets at the period-end.
7.16. Long-term deferred expense
Monetary Unit: CNY
Item Opening Balance Increase Amortization Other decrease Closing Balance
Improvement
expense of
710010.92262861.76-2840.08449989.24
rented fixed
assets
Total 710010.92 262861.76 -2840.081 449989.24
Note: 1 Other decrease was generated from changes of exchange rates.
7.17. Deferred tax assets/ deferred tax liabilities
7.17.1. Deferred tax assets before offset
Monetary Unit: CNY
Closing Balance Opening Balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
128783512.3231786044.68128012783.3631895371.12
impairment
Unrealized profits
from internal 1487258579.16 371814644.79 2839779249.07 709944812.27
transactions
Deductible losses 9102050.75 2275512.69 9551262.70 2312572.68
Impact from salary 497857634.85 122138335.07 630936117.63 155191186.34
Impact from deferred
29474054.747368513.6933704323.808426080.95
earnings
Impact from fixed
670245.94110590.58227859.6237596.84
assets depreciation
Recognition costs of
restricted shares for
477842964.45116997834.101367875588.3289288197.09
equity incentive in
the vesting period
Impact from fair
value changes of
other equity 54989996.72 13747499.18 5752926.37 1438231.59
instrument
investment
Impact of income tax
from fair value
changes of held-for- 26533219.63 6633304.92
trading financial
assets
Lease liabilities 4855478.17 927586.79
Total 2690834517.10 667166561.57 4042373330.50 1005167353.80
Note: 1. Deductible temporary differences of CNY 477842964.45 of costs and expenses recognized
during the vesting period of restricted shares for share incentives represent the estimated future pre-
tax deductible amounts based on the Company's share price less the grant price at the end of the
1372023 Interim Report of Luzhou Laojiao Co. Ltd.
period.
2. The closing balance decreased by CNY 338000792.23 down 33.63% compared with the opening
balance which was mainly due to decline in unrealized profits of internal transactions.
7.17.2. Deferred tax liabilities before offset
Monetary Unit: CNY
Closing Balance Opening Balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Fair value changes
of other equity
226700618.8156675154.71495124314.68123781078.67
instrument
investment
Fair value changes
of held-for-trading 56716.13 14179.04
financial assets
Impact from the
policy of one-time
142720543.4435056395.58172516000.0742262585.21
pre-tax deduction of
fixed assets
Right-of-use assets 3559187.35 637792.86
Total 373037065.73 92383522.191 667640314.75 166043663.88
Note: 1. The closing balance decreased by CNY 73660141.69 down 44.36% compared with the
opening balance which was mainly due to the decline in fair value of equity investments.
7.17.3. Details of unrecognized deferred tax assets
Monetary Unit: CNY
Item Closing Balance Opening Balance
Deductible losses 158312771.24 72503754.75
Credit impairment losses and Asset
93109.3765.28
impairment losses
Impact from employee benefits
2369328.86
payable
Recognition costs of restricted
shares for equity incentive in the 9725391.12
lock-up period
Total 168131271.73 74873148.89
7.17.4. Deductible losses from unrecognized deferred tax assets will due on the following
years
Monetary Unit: CNY
Year Closing Amount Opening Amount Notes
The 1st year 6496423.50 6496423.50
The 2nd year 14491365.44 14491365.44
The 3rd year 21641111.94 21651366.58
The 4th year 11572224.60 11572224.60
The 5th year 104111645.76 18292374.63
1382023 Interim Report of Luzhou Laojiao Co. Ltd.
Total 158312771.24 72503754.75
7.18. Other non-current assets
Monetary Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepaid
equipment 278333803.0 278333803.0 196095702.0 196095702.0
and land 8 8 9 9
expense
Cultural relics
19051835.4219051835.42
assets
297385638.5297385638.5196095702.0196095702.0
Total
01099
Note: 1. The closing balance increased by CNY 101289936.41 up 51.65% compared with the
opening balance which was mainly due to the increase in prepayments for equipment to suppliers
and lands in the current period.
7.19. Accounts payable
7.19.1. Presentation of accounts payable
Monetary Unit: CNY
Category Closing Balance Opening Balance
Materials and service expense 879280312.67 1042394395.05
Engineering equipment expense 1285517851.75 1269271189.99
Total 2164798164.42 2311665585.04
7.19.2. Significant accounts payable whose aging is longer than 1 year
Monetary Unit: CNY
Reason for not payment or carrying
Category Closing Balance
forward
China Construction First Group
323441430.59 Within the contract settlement period
Corporation Limited
Total 323441430.59
7.20. Contract liabilities
Monetary Unit: CNY
Category Closing Balance Opening Balance
Within 1 year 1904776798.39 2540635630.98
1-2 years 13310795.06 10654577.66
2-3 years 1868476.86 1199843.23
Over 3 years 13654484.63 13884666.89
Total 1933610554.94 2566374718.76
1392023 Interim Report of Luzhou Laojiao Co. Ltd.
7.21. Employee benefits payable
7.21.1. Employee benefits payable shown as follows
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Short-term
655612131.74512694515.63680657948.81487648698.56
benefits
2. Post-employment
benefits- defined 19413782.04 75165629.22 69740897.39 24838513.87
contribution plans
3. Termination
8971.5341863.7541863.758971.53
benefits
Total 675034885.31 587902008.60 750440709.95 512496183.96
7.21.2. Short-term employee benefits payable shown as follows
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Wages bonuses
allowances and 611845393.45 425110167.32 604710266.01 432245294.76
grants
2. Employees’
7328956.827328956.82
welfare
3. Social insurance
2037299.4733619920.2023465176.7812192042.89
premiums
Including: Medical
1527048.7631894383.9622185955.5111235477.21
insurance premium
Work-related injury
510250.711725536.241279221.27956565.68
insurance
4. Housing funds 2088245.59 35071357.38 32809476.91 4350126.06
5. Labor union
expenditures and
39641193.2311564113.9112344072.2938861234.85
employee education
funds
Total 655612131.74 512694515.63 680657948.81 487648698.56
7.21.3. Defined contribution plan shown as follows
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Basic endowment
18361778.9646536369.7143353890.3121544258.36
insurance premium
2. Unemployment
326819.861800869.681802420.95325268.59
insurance premium
3. Enterprise annuity 725183.22 26828389.83 24584586.13 2968986.92
Total 19413782.04 75165629.22 69740897.39 24838513.87
7.22. Taxes payable
Monetary Unit: CNY
1402023 Interim Report of Luzhou Laojiao Co. Ltd.
Item Closing Balance Opening Balance
Value-added tax 150481155.11 502641326.22
Consumption tax 74507439.63 1386271621.60
Enterprise income tax 1002960198.35 1345243541.07
Individual income tax 5129262.42 10295445.63
Urban maintenance and construction
15224919.52131841222.44
tax
Education surcharge 6502982.95 56445651.96
Local education surcharge 4443544.51 37733654.17
Stamp duty 6487529.28 9937931.91
Land use tax 437618.74 437618.74
Others 350923.67 302715.24
Total 1266525574.18 3481150728.98
Other statements:
The closing balance decreased by CNY 2214625154.80 down 63.62% compared with the opening
balance mainly due to the taxes of the end of last year put into the treasury in the current period.
7.23. Other payables
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividend payable 6235743174.61 16594850.58
Other payables 1175814936.29 1185814427.91
Total 7411558110.90 1202409278.49
7.23.1. Dividend payable
Monetary Unit: CNY
Item Closing Balance Opening Balance
Ordinary share dividends 6205174061.68 16594850.58
Dividend of restricted shares 30569112.93
Total 6235743174.61 16594850.58
7.23.2. Other payables
7.23.2.1. Categories by nature
Monetary Unit: CNY
Item Closing Balance Opening Balance
Security deposit 537787761.78 527881969.37
Intercourse funds 10271629.19 10226769.10
Repurchase obligations of restricted
616743610.59639021998.78
shares
Others 11011934.73 8683690.66
Total 1175814936.29 1185814427.91
7.23.2.2. Significant other payables whose aging are longer than 1 year
Other statements:
1412023 Interim Report of Luzhou Laojiao Co. Ltd.
Other payables whose aging are longer than 1 year are mainly security deposits collected from
dealers.
7.24. Non-current liabilities due within one year
Monetary Unit: CNY
Item Closing Balance Opening Balance
Long-term loans due within one year 24800000.00 20400000.00
Lease liabilities due within one year 9311083.99 14530370.36
Interest of long-term loans due within
6666043.061984027.78
one year
Interest of bonds payable due within
39554794.5244965068.49
one year
Total 80331921.57 81879466.63
7.25. Other current liabilities
Monetary Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 251369372.14 333627225.47
Total 251369372.14 333627225.47
7.26. Long-term loans
7.26.1. Long-term loans
Monetary Unit: CNY
Item Closing Balance Opening Balance
Credit loans 9539900000.00 3200000000.00
Less: Long-term loans due within one
-24800000.00-20400000.00
year
Total 9515100000.00 3179600000.00
7.27. Bonds payable
7.27.1. Bonds payable
Monetary Unit: CNY
Item Closing Balance Opening Balance
Corporate bonds in 2020 (Phase I) 1498077519.80 1497461348.61
Corporate bonds in 2022 (Phase I) 1498841460.47 1498638223.25
Total 2996918980.27 2996099571.86
7.27.2. Increase/decrease of bonds payable (excluding other financial instrument classified as
financial liabilities such as preferred shares and perpetual bonds)
Monetary Unit: CNY
Bond Par Issuing Duratio Issuing Openin Issued Withdr Amorti Repayme Closing
name value date n amoun g in the awal of zation nt in the Balance
1422023 Interim Report of Luzhou Laojiao Co. Ltd.
t Balanc current interes of reporting
e period t by premiu period
par m and
value deprec
iation
Corpor
ate
bonds 1500 16 1494 1497 25890
616171498077519
in 00000 March 5 00000 46134 410.9
20201.19.800.000.008.616
(Phase 2020
I)
Corpor
ate 2
bonds 1500 1498 1498 21199
Decem 20323 1498841460
in 00000 3 80000 63822 315.0
2022 ber 7.22 .47 0.00 0.00 3.25 7
(Phase 2022
I)
2992299647089
819402996918980
Total 80000 09957 726.0
8.41.27
0.001.863
7.28. Lease liabilities
Monetary Unit: CNY
Item Closing Balance Opening Balance
Lease payment 39764571.57 48776000.46
Less: unrecognized financing cost -4358177.64 -5148660.44
Lease liabilities due within one year -9311083.99 -14530370.36
Total 26095309.94 29096969.66
7.29. Deferred income
Monetary Unit: CNY
Increase in Decrease in
Item Opening Balance Closing Balance Reason
current period current period
Reception of
Government
33704323.80 364559.08 4594828.14 29474054.74 financial
grants
allocation
Total 33704323.80 364559.08 4594828.14 29474054.74
Details:
Monetary Unit: CNY
Non-
Other Cost
Increase operating Related to
Liability Opening income in reduction Other Closing
in current income in assets/
Item Balance current in current changes Balance
period current income
period period
period
New
mode
applicatio
4684300. 364559.0 776747.5 4272111. Related to
n project
00 8 5 53 assets
of digital
workshop
for solid
1432023 Interim Report of Luzhou Laojiao Co. Ltd.
state
baijiu
production
Constructi
on project
of cellar of
Luzhou 4550000. 700000.0 3850000. Related to
Laojiao 00 0 00 assets
brewing
technical
renovation
Luzhou
Laojiao
automatic
wine
1135238. 174652.0 960586.0 Related to
production
10 2 8 assets
line
technical
renovation
project
Boiler
reconstruc
tion
project of
6321428. 632142.8 5689285. Related to
Luohan
56 6 70 assets
Brewing
Base of
Luzhou
Laojiao
Brewing
wastewate
1114285 1714285. 9428571. Related to
r
7.14 71 43 assets
treatment
project
Improvem
ent and
technical
renovation
5870500. 597000.0 5273500. Related to
project of
00 0 00 assets
Luzhou
Laojiao
production
supporting
3370432364559.04594828.2947405
Total
3.808144.74
7.30. Share capital
Monetary Unit: CNY
Increases/decreases in the current period (+ -)
Issuance Conversion
Opening Balance of Bonds of reserves Closing Balance
Others Subtotal
new share funds into
shares shares
Total
1471895100.0092669.0092669.0011471987769.00
number of
1442023 Interim Report of Luzhou Laojiao Co. Ltd.
shares
Note: 1. In February 2023 the registration of 92669 shares of the Restricted Share Incentive Plan
granted by the Company for the third time was completed. So far the total number of shares of the
Company changed to 1471987769 shares.
7.31. Capital reserves
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Share premium
4197109156.668198055.7414205307212.40
(capital premium)
Other capital
603045312.33196217564.112799262876.44
reserves
Total 4800154468.99 204415619.85 5004570088.84
Note: 1. The increase of capital premium of the period is the premium payment received for the grant
of restricted shares.
2. The increase in other capital reserves for the period was mainly due to the costs and expenses to
be recognized in the period for the issuance of restricted shares.
7.32. Treasury shares
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Perform the
repurchase
639021998.788290724.7430569112.93616743610.59
obligations under the
equity incentive
Total 639021998.78 8290724.74 30569112.93 616743610.59
Other statements including notes to increase and decrease during the reporting period and the
reasons for changes:
The Company recognized restricted shares repurchase obligations in the current period raising the
treasury stock by CNY 8290724.74; and the treasury stock was down by CNY 30569112.93 due to
the expected cash dividend of unlockable restricted shares.
7.33. Other comprehensive income
Monetary Unit: CNY
Current Period
Less:
Less:
Previously
Previously
recognize Amount
Amount in recognize
d in other Amount attribute to
Opening current d in other comprehe Less: attribute to non- Closing Item
Balance period comprehe nsive Income parent controlling Balance
before nsive
income tax company sharehold
income income
transferre after tax ers after
tax transferre
d to tax
d to profit
retained
and loss
earnings
I. Other 3669785 - 1621565 - 1288642
1452023 Interim Report of Luzhou Laojiao Co. Ltd.
comprehe 41.23 2218986 3.21 2381143 10.92
nsive 77.10 30.31
income
that will
not be
reclassifie
d into
profit and
loss
Other
comprehe
nsive
income
that will
not be 131244.3 131244.3 131244.3
reclassifie 9 9 9
d into
profit and
loss under
equity
method
Fair value
changes
of other - -
366978516215651287329
equity 2220299 2382455
instrument 41.23 3.21 66.53 21.49 74.70
investmen
t
II. Other
comprehe
nsive
income - -
3384149.2430466.953682.8
that will be 3622729 3379682
reclassifie 17 33 4 5.39 9.06
d into
profit and
loss
Including:
Other
comprehe
nsive
income - -
that will be 1266710. 1266710.
38784743751802
reclassifie 82 82
d into 0.65 9.83
profit and
loss under
equity
method
Difference
from
conversio
n of 2557445. 2117438. 1163755. 953682.8 3721200.financial
statement 26 35 51 4 77
s in
foreign
currency
--
33075121621565953682.89506738
Total 2185145 2356838
45.843.2141.86
27.9363.98
1462023 Interim Report of Luzhou Laojiao Co. Ltd.
Other statements including the adjustment of the effective gain/loss on cash flow hedges to the initial
recognized amount:
Note: The closing balance decreased by CNY 235683863.98 down 71.26% compared with the
opening balance which was mainly due to the decline in fair value of equity investments.
7.34. Surplus reserves
Monetary Unit: CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Statutory surplus
1471895100.001471895100.00
reserves
Total 1471895100.00 1471895100.00
7.35. Undistributed profits
Monetary Unit: CNY
Item Current Period Previous Period
Undistributed profit before
26772197213.9821187860235.89
adjustment at the end of the last year
Undistributed profit after adjustment
26772197213.9821187860235.89
at the beginning of year
Plus: Net profit attributable to owners
of the parent company for the current 7090426787.07 5531926340.44
period
Ordinary share dividends payable 6219148324.03 4773919306.54
Plus: Other transfer in 16215653.211 15626.84
Undistributed profits at the end of the
27659691330.2321945882896.63
period
Note: 1. Other transfers were the disposal of other equity instrument investments in the current period
which was due to the impact of transfers to retained earnings of relevant changes in fair value.
7.36. Operating revenue and cost of sales
Monetary Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 14369036994.33 1591479349.36 11549327272.44 1595591564.86
Other business 224014779.81 108783756.32 115050280.50 46718985.75
Total 14593051774.14 1700263105.68 11664377552.94 1642310550.61
Details:
Monetary Unit: CNY
Contract category Liquor sales Total
Commodity type
Including:
Medium and high
12990085081.5012990085081.50
grade liquor
1472023 Interim Report of Luzhou Laojiao Co. Ltd.
Other liquor 1520899556.91 1520899556.91
By operating
segment
Including:
Domestic 14434112172.13 14434112172.13
Outbound 76872466.28 76872466.28
Market or customer
type
Including:
Contract type
Including:
Commodity sales
14510984638.4114510984638.41
contract
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 14510984638.41 14510984638.41
Information on performance obligation:
N/A
Other statements
N/A
7.37. Business taxes and surcharges
Monetary Unit: CNY
Item Current Period Previous Period
Consumption tax 1203032837.64 759217972.85
Urban maintenance and construction
187840939.62131976380.41
tax
Educational surcharge 80502780.15 56558689.68
Property tax 39107945.82 34169290.28
Land use tax 17656012.34 17874337.59
Stamp duty 12043066.53 8264059.53
Local education surcharge 53668728.47 37706254.75
Others 106664.38 92783.65
Total 1593958974.95 1045859768.74
Other statements:
Note: The current period increased by CNY 548099206.21 up 52.41% compared with the previous
period which was mainly due to the increase in consumption tax for the current period.
1482023 Interim Report of Luzhou Laojiao Co. Ltd.
7.38. Selling and distribution expenses
Monetary Unit: CNY
Item Current Period Previous Period
Advertising promotion expense 585741219.56 691914456.49
Promotion expense 486391918.30 142494942.50
Employee compensation 210781737.74 204443388.51
Storage and logistics costs 95488340.44 63874054.36
Others 84793614.57 111135142.80
Total 1463196830.61 1213861984.66
7.39. General and administrative expenses
Monetary Unit: CNY
Item Current Period Previous Period
Employee compensation 234498550.74 260100920.11
Depreciation and amortization 56042880.60 55428718.37
Management fee and service
27605235.7215223826.86
expense
Others 221732574.25 211913289.15
Total 539879241.31 542666754.49
7.40. Research and development expenses
Monetary Unit: CNY
Item Current Period Previous Period
Comprehensive research and
62914698.9974487055.16
development expenses
Total 62914698.99 74487055.16
7.41. Financial expenses
Monetary Unit: CNY
Item Current Period Previous Period
Interest expenses 261543693.36 119589682.10
Less: Interest income 384116432.10 237072806.72
Losses from currency exchange -5091874.65 -10795717.36
Handling charges 1233960.31 913004.25
Amortization of unrecognized
646861.65377416.63
financing costs
Total -125783791.43 -126988421.10
7.42. Other income
Monetary Unit: CNY
Item Current Period Previous Period
Government grants 21166337.88 9141196.38
Other refund 2229602.28 1603531.79
Total 23395940.161 10744728.17
1492023 Interim Report of Luzhou Laojiao Co. Ltd.
Note: 1. The current period increased by CNY 12651211.99 up 117.74% compared with previous
period which was mainly due to the increase in government grants received in the current period.
7.43. Investment income
Monetary Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under the equity 70278286.49 37796914.64
method
Investment income gained during the
period of holding held-for-trading 2391009.80 6795921.96
financial assets
Investment income from disposal of
5057632.104827927.32
held-for-trading financial assets
Dividend income gained during the
period of holding other equity 7297266.16 8078717.94
instrument investment
Total 85024194.55 57499481.86
Other statements:
Note: 1. There is no major restriction on the repatriation of the Company's investment income.
2. The current period increased by CNY 27524712.69 up 47.87% compared with previous period
which was mainly due to the increase in profitability of the investee Huaxi Securities Co. Ltd.
7.44. Gain on changes in fair value
Monetary Unit: CNY
Item Current Period Previous Period
Held-for-trading financial assets 32781678.421 5862846.29
Total 32781678.42 5862846.29
Note: 1. The current period increased by CNY 26918832.13 compared with previous period which
was mainly due to the increase in fair value of held-for-trading financial assets in the current period.
7.45. Credit impairment loss
Monetary Unit: CNY
Item Current Period Previous Period
Bad debt loss of other receivables 620074.69 -581432.64
Bad debt loss of accounts receivable -489912.75 -2831.34
Total 130161.94 -584263.98
7.46. Gains from disposal of assets
Monetary Unit: CNY
Item Current Period Previous Period
Gains from disposal of non-current
-477479.3819789402.07
assets
Including: Gains from disposal of 223832.22 2588.69
1502023 Interim Report of Luzhou Laojiao Co. Ltd.
fixed assets
Gains from disposal of intangible
-875599.7019786813.38
assets
Gains from disposal of use right
174288.10
assets
Total -477479.381 19789402.07
Note: 1. The current period decreased by CNY 20266881.45 down 102.41% compared with
previous period which was mainly due to the decrease in gains from disposal of intangible assets in
the current period.
7.47. Non-operating income
Monetary Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Compensation for default 2393459.62 3384765.95 2393459.62
Others 12086059.36 7750967.38 12086059.36
Total 14479518.98 11135733.33 14479518.98
Other statements:
Note: The current period increased by CNY 3343785.65 up 30.03% compared with previous period
which was mainly due to receiving income from anti-counterfeiting claims.
7.48. Non-operating costs
Monetary Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Donation 4171120.00 1500000.00 4171120.00
Losses from damage
retirement of non-current 1164068.35 70762.97 1164068.35
assets
Others 1637398.60 378246.54 1637398.60
Total 6972586.95 1949009.51 6972586.95
7.49. Income tax expense
7.49.1. Statement of income tax expense
Monetary Unit: CNY
Item Current Period Previous Period
Current period income tax 2041614849.971 1366370466.01
Deferred income tax 2343744666.15 433650076.38
Total 2385359516.12 1800020542.39
Note: 1. The current period increased CNY 585338973.73 compared with previous period with an
increase by 32.52% mainly due to the increase in profits with the increase in sales revenue of baijiu.
2. Details of income tax rates were shown on “6. Taxes”.
1512023 Interim Report of Luzhou Laojiao Co. Ltd.
7.49.2. Adjustment for accounting profit and income tax expense
Monetary Unit: CNY
Item Current Period
Total profit 9506984141.75
Income tax expenses determined by statutory/applicable
2376746035.44
tax rate
Impact from subsidiaries’ different tax rates -250901.57
Impact from adjust for impact from income tax expense in
-1041798.80
previous period
Impact from non-taxable income -19393285.57
Impact from non-deductible costs expenses and losses 2138983.12
Impact from deductible loss of unrecognized deferred
-2261434.67
income tax assets in prior period
Impact from deductible temporary difference or losses
16561687.70
due to unrecognized deferred tax asset in current period
Income tax impact of expected pre-tax deductible
amounts of restricted shares in future periods that are 18617925.26
less than the recognized cost and expenses
Deduction of research and development costs -5757694.79
Income tax expense 2385359516.12
7.50. Other comprehensive income
Details in Note 7.33. Other comprehensive income.
7.51. Notes to the statement of cash flow
7.51.1. Cash received from other operation activities
Monetary Unit: CNY
Item Current Period Previous Period
Recovery of saving deposits
332468.262218722.45
involving contract disputes
Government grants 16936068.82 5906207.21
Interest income from bank deposit 385402604.30 210646002.01
Others 56582439.60 69159079.77
Total 459253580.98 287930011.44
7.51.2. Cash paid for other operating activities
Monetary Unit: CNY
Item Current Period Previous Period
Cash paid for expenses 1185339540.00 1351327137.51
Total 1185339540.00 1351327137.51
7.51.3. Cash paid for other financing activities
Monetary Unit: CNY
Item Current Period Previous Period
1522023 Interim Report of Luzhou Laojiao Co. Ltd.
Cash paid for rent of right-of-use
1117175.974353331.41
assets
Registration fee for equity incentive
92.676862.60
stocks
Total 1117268.64 4360194.01
7.52. Supplementary information to statement of cash flow
7.52.1. Supplementary information to statement of cash flow
Monetary Unit: CNY
Item Current Period Previous Period
1. Reconciliation of net profit to cash
flow from operating activities:
Net profit 7121624625.63 5574658236.22
Plus: Provision for asset impairment -130161.94 584263.98
Depreciation of fixed asset oil and
gas assets and productive biological 291902202.19 261325836.44
assets
Depreciation of right-of-use assets 5971160.71 7440461.35
Amortization of intangible assets 39210901.13 33148347.68
Amortization of long-term deferred
262861.76421016.50
expense
Losses from disposal of fixed assets
intangible assets and other long-term 477479.38 -19789402.07
assets (Gains use “-”)
Losses from retirement of fixed
assets (Gains use “-”)
Losses from change in fair value
-32781678.42-5862846.29
(Gains use “-”)
Financial expenses (Gains use “-”) -125783791.43 -126988421.10Losses on investments (Gains use “--85024194.55-57499481.86
”)
Decrease in deferred income tax
350308835.48433730715.02
assets (Increase uses “-”)
Increase in deferred income tax
-6554217.73
liabilities (Decrease uses “-”)
Decrease in inventories (Increase
-953413761.15-1435707467.48
use “-”)
Decrease in operating receivables
1792662781.413179384157.51
(Increase use “-”)
Increase in operating payables
-2750972245.43-3767830450.56
(Decrease use “-”)
Others
Net cash flows from operating
5647760797.044077014965.34
activities
2. Significant investing and financing
activities not involving cash:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets under financing lease
3.Net change in cash and cash
1532023 Interim Report of Luzhou Laojiao Co. Ltd.
equivalents:
Closing balance of cash 30311535608.00 16914836112.50
Less: Opening balance of cash 17729006591.87 13402528941.83
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net change in cash and cash
12582529016.133512307170.67
equivalents
7.52.2. Composition of cash and cash equivalent
Monetary Unit: CNY
Item Opening Balance Closing Balance
1. Cash 30311535608.00 17729006591.87
Including: Cash on hand 34319.35 28711.93
Unrestricted bank deposit 30301242803.65 17711121431.52
Other unrestricted cash and
10258485.0017856448.42
cash equivalents
3. Closing balance of cash and cash
30311535608.0017729006591.87
equivalents
Including: Cash and cash equivalent
with restriction to use of parent 32939930.131 28521619.38
company and subsidiaries
Note: 1. The cash and cash equivalent with restriction to use are CNY 32939930.13 of which CNY
10000000.00 is the bank cash deposits for L/G CNY 21982447.95 is provision for fixed deposit
interest on an accrual basis and CNY 957482.18 is the frozen fund by the court.
7.53. Assets with restricted ownership or use rights
Monetary Unit: CNY
Item Closing book balance Reason for restriction
Provision for fixed deposit interest on
Cash and cash equivalents 21982447.95
an accrual basis
Cash and cash equivalents 10000000.00 Bank cash deposits for L/G
Cash and cash equivalents 957482.18 Frozen fund by the court 1
Total 32939930.13
Note: 1. According to the civil ruling issued by People's Court of Dongchangfu District Liaocheng City
Shandong Province a total of CNY 957482.18 bank deposits of Boda Marketing Company a
subsidiary of the Company were frozen in accordance with laws for the case of contractual dispute.On 4 August 2023 People's Court of Dongchangfu District Liaocheng City Shandong Province made
a ruling of first instance and rejected the claims of the plaintiff Liaocheng Shunkang Import and Export
Co. Ltd. The frozen fund has been released in August.
7.54. Foreign currency transactions
7.54.1. Foreign currency transactions
Monetary Unit: CNY
Closing Balance in Foreign
Item Exchange Rate Closing Balance in CNY
Currency
1542023 Interim Report of Luzhou Laojiao Co. Ltd.
Cash at Bank and on Hand
Including: USD 33841630.75 7.2258 244532855.47
EUR 11706.91 7.8771 92216.50
HKD 2121252.23 0.9220 1955794.56
GBP 39.89 9.1432 364.72
AUD 2367.12 4.7992 11360.28
Accounts Receivable
Including: USD 191311.93 7.2258 1382381.75
EUR
HKD 14083424.85 0.9220 12984917.71
Long-term Loans
Including: USD
EUR
HKD
Other Receivables
Including: HKD 31660.81 0.9220 29191.27
Accounts Payable
Including: USD 273541.40 7.2258 1976555.45
HKD 707457.29 0.9220 652275.62
Other Payables
Including: HKD 17821977.82 0.9220 16431863.55
Non-current liabilities due
within one year
Including: USD 61439.22 7.2258 443947.54
HKD 2891683.10 0.9220 2666131.82
Lease liabilities
Including: USD 177499.09 7.2258 1282572.96
HKD
7.54.2. Description of the foreign business entity including the important foreign business
entity shall disclose its main foreign business place bookkeeping standard currency and
selection basis and shall also disclose the reason for the change of the bookkeeping
standard currency
□ Applicable □ N/A
Bookkeeping
Company Operation site Choosing Reason
currency
Luzhou Laojiao International Development Currency in the registration
Hong Kong China HKD
(Hong Kong) Co. Ltd. place
Luzhou Laojiao Commercial Development Currency in the registration
USA USD
(North America) Co. Ltd. place
Currency in the registration
Mingjiang Co. Ltd. USA USD
place
7.55. Government grants
7.55.1. Details of government grants
Monetary Unit: CNY
1552023 Interim Report of Luzhou Laojiao Co. Ltd.
Amount included in profit or
Item Amount Presentation
loss of the current period
Related to assets 29474054.74 Deferred income 4594828.14
Related to income 16571509.74 Other income 16571509.74
Total 46045564.48 21166337.88
7.55.2. Return of government grants
□Applicable □ N/A
8. Changes in consolidated scope
8.1. Business combination not under common control
8.1.1. Business combination not under common control during current period
Other statements:
There is no business combination not under common control during current period.
8.2. Business combination under common control
8.2.1. Business combination under common control during current period
Other statements:
There is no business combination under common control during current period.
8.3. Reverse purchase
The basic information of the transaction the basis of the transaction constitutes the reverse purchase
whether the assets and liabilities retained by the listed company constitute the business and its basis
the determination of the merger cost and the adjustment of the equity amount and its calculation
according to the equity transaction:
There is no reverse purchase during current period.
8.4. Disposing subsidiaries
Whether there is a situation of losing control after disposing the investment in the subsidiary only
once
□ Yes □No
Whether there is a situation of disposing the investment in the subsidiary through several transactions
step by step and losing control during the period
□ Yes □No
8.5. Consolidated scope changes due to other reasons
Explain other reasons for changing consolidated scope (such as establishing a new subsidiary
liquidating a subsidiary) and its related situation:
1562023 Interim Report of Luzhou Laojiao Co. Ltd.
There are no consolidated scope changes due to other reasons during current period.
9. Interests in other entities
9.1. Interests in subsidiaries
9.1.1. Group composition
Major Shareholding Proportion
Name of Place of Nature of Acquisition
business
Subsidiaries registration business Direct Indirect method location
Luzhou
Baijiu
Laojiao
Luzhou Luzhou manufacture 100.00% Investment
Brewing Co.and sales
Ltd.Luzhou Red
Business
Sorghum Agricultural
combination
Modern product
Luzhou Luzhou 60.00% under
Agricultural planting and
common
Development sales
control
Co. Ltd.Luzhou
Laojiao Sales Luzhou Luzhou Baijiu sales 100.00% Investment
Co. Ltd.Luzhou
Laojiao
Nostalgic
Luzhou Luzhou Baijiu sales 100.00% Investment
Liquor
Marketing
Co. Ltd.Luzhou
Laojiao
Custom Luzhou Luzhou Baijiu sales 15.00% Investment
Liquor Co.Ltd. Note
Luzhou
Laojiao
Selected
Luzhou Luzhou Baijiu sales 100.00% Investment
Supply Chain
Management
Co. Ltd.Guangxi
Luzhou
Laojiao Red wine
Imported Qinzhou Qinzhou production 100.00% Investment
Liquor and sales
Industry Co.Ltd.Luzhou Dingli
Liquor
Luzhou Luzhou Baijiu sales 100.00% Investment
Industry Co.Ltd.Luzhou Dingyi
Liquor
Luzhou Luzhou Baijiu sales 100.00% Investment
Industry Sales
Co. Ltd.Luzhou
Laojiao New Luzhou Luzhou Baijiu sales 100.00% Investment
Liquor
1572023 Interim Report of Luzhou Laojiao Co. Ltd.
Industry Co.Ltd.Luzhou Wine import
Laojiao I & E Luzhou Luzhou and export 100.00% Investment
Co. Ltd. trade
Luzhou
Laojiao Boda
Liquor
Luzhou Luzhou Baijiu sales 75.00% Investment
Industry
Marketing
Co. Ltd.Luzhou
Laojiao Fruit Fruit wine
Luzhou Luzhou 41.00% Investment
Wine Industry sales
Co. Ltd. Note
Mingjiang Co.America America Baijiu sales 54.00% Investment
Ltd.Luzhou
Laojiao
International Food import
Hainan Hainan 100.00% Investment
Trade and export
(Hainan) Co.Ltd.Luzhou
Technology
Pinchuang
Luzhou Luzhou development 100.00% Investment
Technology
and service
Co. Ltd.Luzhou
Laojiao
International
Hong Kong Hong Kong Wine sales 55.00% Investment
Development
(Hong Kong)
Co. Ltd.Luzhou
Laojiao
Commercial
Business
Development America America 55.00% Investment
development
(North
America) Co.Ltd.Luzhou
Laojiao
Electronic Luzhou Luzhou Wine sales 90.00% Investment
Commerce
Co. Ltd.Luzhou
Laojiao
Whitail Liquor Luzhou Luzhou Wine sales 31.50% Investment
Industry Co.Ltd. Note
Luzhou
Fermented
Baonuo
Luzhou Luzhou product 100.00% Investment
Biotechnology
manufacture
Co. Ltd.Luzhou Business
Health care
Laojiao Health combination
wine
Liquor Luzhou Luzhou 100.00% under
manufacture
Industry common
and sales
Co.Ltd. control
Luzhou Health care Business
Laojiao Health Luzhou Luzhou 100.00% wine sales combination
Sales Co. under
1582023 Interim Report of Luzhou Laojiao Co. Ltd.
Ltd. common
control
Luzhou
Laojiao New
Luzhou Luzhou Baijiu sales 40.00% 100.00% Investment
Retail Co.Ltd.Luzhou
Laojiao Technology
Technology Chengdu Chengdu development 40.00% 100.00% Investment
Innovation and service
Co. Ltd.Statement for that the proportion of share-holding is different from the proportion of voting rights:
Note: As the Note 3.6 the Company holds less than 51% shares of Luzhou Laojiao Custom Liquor
Co. Ltd. Luzhou Laojiao Fruit Liquor Industry Co. Ltd. and Luzhou Laojiao Whitail Liquor Industry
Co. Ltd. but in these companies’ board members two thirds or more are dispatched by the Company.The Company has substantial control over these companies so they are included in the consolidation
scope.
9.1.2. Important non-wholly-owned subsidiaries
Monetary Unit: CNY
Gains and losses
Proportion of share Dividends paid to
attributable to non- Closing balance of
holdings of non- non-controlling
Name of subsidiary Controlling non-controlling
Controlling shareholders during
shareholders during shareholders interest
shareholders current period
current period
Luzhou Laojiao Boda
Liquor Industry 25.00% 5962144.09 67806016.38
Marketing Co. Ltd.
9.1.3. Major financial information of important non-wholly-owned subsidiaries
Monetary Unit: CNY
Closing Balance Opening Balance
Name Non- Non-
of Non- Curre Non- CurreCurre curren Total Curre curren Total
subsid curren Total nt curren Total nt nt t liabiliti nt t liabiliti
iary t assets liabiliti t assets liabilitiassets liabiliti es assets liabiliti es
assets es assets es
es es
Luzho
u
Laojia
o
Boda
53445344263226322754275428042804
Liquor
3845384514381438194219423931.3931.
Indust
3.083.087.587.581.121.129797
ry
Marke
ting
Co.Ltd.Monetary Unit: CNY
Current Period Previous Period
Name of
subsidiary Operating Total Operating Operating Operating Net profit Net profit Total
revenue comprehe cash flow revenue comprehe cash flow
1592023 Interim Report of Luzhou Laojiao Co. Ltd.
nsive nsive
income income
Luzhou
Laojiao
Boda -
1751255238485723848572204602646067371068507106850
Liquor 4572218.
21.076.356.353.553.541.831.83
Industry 59
Marketing
Co. Ltd.
9.1.4. Significant restrictions on using the assets and liquidating the liabilities of the Company
No such cases for the reporting period.
9.1.5. Financial support or other supports provided to structural entities incorporated into the
scope of consolidated financial statements
There is no structural entity incorporated into the scope of consolidated financial statements in the
reporting period.
9.2. Interests in joint ventures and associates
9.2.1. Important joint ventures and associates
Name of joint Major Shareholding proportion
Place of Business Accounting
venture/associ business
registration nature Direct Indirect Method ates location
Important joint
ventures:
none
Important
associates:
Huaxi
Chengdu Chengdu Equity
Securities Securities 10.39%
Sichuan Sichuan 1
Co. Ltd. method
Note: 1. The Company has the substantive decision-making power so the Company still has
significant influence on Huaxi Securities.
9.2.2. Major financial information of important associates
Monetary Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Current assets 91527562209.66 89547378203.44
Non-current assets 5780617417.09 8199779781.47
Total assets 97308179626.75 97747157984.91
Current liabilities 55374217751.79 54767331978.36
Non-current liabilities 19026581515.10 20539402724.68
Total liabilities 74400799266.89 75306734703.04
Non-controlling shareholder interest 20333266.99 22000726.84
1602023 Interim Report of Luzhou Laojiao Co. Ltd.
Shareholder interest attributable to
22887047092.8722418422555.03
parent company
Share of net assets calculated based
2378780663.292330073856.15
on shareholding proportion
Adjusted
--Goodwill
--Unrealized profits of internal
transactions
--Others 167466735.90 167466735.90
Book value of equity investments in
2545247360.512497540592.05
associate companies
Fair value of equity investments in
associate companies that have public 2267226806.64 2054418514.32
quote
Operating revenue 2021251360.10 1749801559.42
Net profit 522815192.43 290468284.96
Net profit from discontinued
operation
Other comprehensive income 22891885.56 -77784068.34
Total comprehensive income 545707077.99 212684216.62
Dividends from associate companies
this year
9.2.3. Financial information summarized of unimportant joint ventures and associate
companies
Monetary Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Joint ventures:
Total following items calculated on
the basis of shareholding proportion
Associate companies:
Total book value of investments 176429374.63 169959961.12
Total following items calculated on
the basis of shareholding proportion
--Net profit 2204555.93 -11746550.86
-- Total comprehensive income 2204555.93 -11746550.86
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co. Ltd. Sichuan Development Wine Investment Co. Ltd. Sichuan Tongniang Baijiu
Industry Technology Research Institute Co. Ltd. and CTS Luzhou Laojiao Cultural Tourism
Development Co. Ltd.
9.2.4. Notes to the significant restrictions on the ability of joint ventures or associate
companies to transfer funds to the Company
None
1612023 Interim Report of Luzhou Laojiao Co. Ltd.
9.2.5. The excess loss of joint ventures or associate companies
Other statements
None
9.2.6. The unrecognized commitment related to investment to joint ventures
None
9.2.7. Contingent liabilities related to investment to joint ventures or associate companies
None
9.3. Significant common operation
Statement for that the proportion of shareholdings or shares in common operation is different from the
proportion of voting rights:
None
9.4. Equity in the Structured Entity Excluded in the Scope of Consolidated
Financial Statements
Statement for the structured entity excluded in the scope of consolidated financial statements:
None
10. Risks related to financial instruments
The Company's primary financial instruments include monetary capital trading financial assets
accounts receivable receivables financing receivables other than tax refundable other equity
instruments bills payable accounts payable other payables lease liabilities some other current
liabilities and loans. A detailed description of each financial instrument is set out in Note V and notes to
the Consolidated Financial Statement.Risks related to these financial instruments and risk management policies the Company has adopted
to reduce these risks are described as follows. The Company management manages and monitors the
risk exposure to ensure the above risks are controlled in a limited scope.The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk variable
rarely changes in isolation and the correlation between variables will have a significant effect on the
final impact amount of the change of a risk variable the following content is based on the assumption
that the change of each variable is independent.Risk management objective: The Company strikes an appropriate balance between risk and return and
strives to minimize the negative impact of risk on the Company's operating performance and maximize
1622023 Interim Report of Luzhou Laojiao Co. Ltd.
the interests of shareholders and other equity investors.Risk management policy: The Board of Directors shall be responsible for planning and establishing a
risk management framework formulating risk management policies and related guidelines and
supervising the implementation of risk management measures. The Risk Management Committee shall
carry out risk management through close collaboration (including the identification evaluation and
avoidance of relevant risks) with other business units of the Company in accordance with the policies
approved by the Board of Directors. The internal audit department shall conduct regular audits on risk
management controls and procedures and report the results to the Audit Committee.The Company has formulated risk management policies to identify and analyze the risks it faces
clarifying specific risks and covering many aspects such as credit risk liquidity risk and market risk
management. On a regular basis the Company evaluates the specific marketing environment and
various changes in the Company's business operations to determine whether any risk management
policy and system should be updated. The Company diversifies the risks to financial instruments
through appropriately diversified investments and business portfolios and reduces the risk of
concentration in any single industry specific geographic area or specific counterparty by formulating
appropriate risk management policies.
10.1. Credit risk
Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations
causing financial losses to the other party. The Company only trades with recognized reputable and
large third parties. In accordance with the Company's policy the terms of sale with customers are
based on transactions of payment before delivery with only a small amount of credit transactions and
credit review for all customers who require credit to trade. In addition the Company continuously
monitors and controls the balance of the receivables to ensure that the Company does not face
significant bad debt risks. In addition the Company makes full provision for expected credit losses at
each balance sheet date based on the collection of receivables. Therefore the Company's
management believes that the Company's credit risk has been greatly reduced.The Company's working capital is deposited in banks with high credit rating so the credit risk of working
capital is low.The Company's risk exposures are spread across multiple contract parties and customers in multiple
geographies with customers in the commerce industry in addition to the alcohol distribution industry
(the main industry). No systemic risk has been identified in the relevant industries. Therefore the
Company has no significant credit concentration risk. As at 30 June 2023 the balance of the top five
customers of the Company's accounts receivable amounted to CNY 15158800 accounting for 97.58%
of the balance of the Company's accounts receivable.
10.2. Liquidity risk
Liquidity risk refers to the risk unable to obtain sufficient funds in time to meet business development
1632023 Interim Report of Luzhou Laojiao Co. Ltd.
needs or to repay debts due and other payment obligations. The Company has sufficient working
capital. The liquidity risk is extremely small. The Company's objective is to use a variety of financing
instruments such as bank clearing and bank loans to maintain a balance between financing
sustainability and flexibility. As at 30 June 2023 the Company has been able to meet its own continuing
operation requirements through the use of cash flow from operations.The analysis of the financial liabilities held by the Company based on the maturity period of the
undiscounted remaining contractual obligations is as follows:
Closing Balance
Item Contract
Book value amount not Within 1 year 1-2 years 2-3 years Over 3 years
discounted
Notes
payable
Accounts
2164798164.422164798164.422164798164.42
payable
Other
1175814936.291175814936.291175814936.29
payable
Non-
current
liabilities
80331921.5780331921.5780331921.57
due
within
one year
Other
current 251369372.14 251369372.14 251369372.14
liabilities
Long-
term 9515100000.00 9515100000.00 24800000.00 8260300000.00 1230000000.00
loans
Bonds
2996918980.273000000000.001500000000.001500000000.00
payable
Lease
26095309.9430453487.585697572.625195257.7419560657.22
liabilities
Subtotal 16210428684.63 16217867882.00 3672314394.42 1530497572.62 9765495257.74 1249560657.22
10.3. Market risk
10.3.1. Foreign exchange risk
The foreign exchange risk refers to the risk of loss due to exchange rate changes. Apart from the three
subsidiaries of the Company which make purchases and sales in USD and HKD the other major
business activities are denominated and settled in CNY. The Company closely monitors the impact of
exchange rate movements on the Company's foreign exchange risk. As at 30 June 2023 the
Company's assets and liabilities are mainly in CNY balance. The Company's management considers
the impact of changes in foreign exchange risk on the Company's financial statements to be minimal.
10.3.2. Rate risk
The Company's interest rate risk mainly arises from the borrowings. Financial liabilities based on the
floating interest rate will cause the cash flow interest rate risk to the Company and financial liabilities
based on the fixed interest rate the fair value interest rate risk. The Company will determine the
corresponding proportion between the contracts with fixed interest rate and those with floating interest
rate in combination with current market condition.
10.3.3. Other price risks
Other price risk refers to the risk of fluctuation caused by market price changes other than foreign
exchange risk and interest rate risk whether these changes are caused by factors related to a single
1642023 Interim Report of Luzhou Laojiao Co. Ltd.
financial instrument or its issuer or all similar financial instruments traded in the market. Other price
risks faced by the Company mainly come from investments in other equity instruments measured at
fair value.
11. Fair value disclosure
11.1. Closing fair value of assets and liabilities measured at fair value
Monetary Unit: CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
1. Continuous
measurement at fair -- -- -- --
value
1.1 Held-for-trading
200056716.13200056716.13
financial assets
1.1.1 Financial
assets measured at
fair value with their
200056716.13200056716.13
changes included
into current
profits/losses
1.1.1.4 Wealth
management 200056716.13 200056716.13
products
1.3 Investments in
other equity 410956596.98 34458125.87 445414722.85
instruments
1.6 Accounts
2765330012.772765330012.77
receivable financing
Total assets
continuously
410956596.982999844854.773410801451.75
measured at fair
value
2. Discontinuous
measurement at fair -- -- -- --
value
11.2. Determination basis of the market value of items measured continuously and
discontinuously within Level 1 of the fair value hierarchy
The listed companies in mainland China determine the fair value of other equity instrument investment
according to the closing price on the last trading day of Shenzhen Stock Exchange or Shanghai Stock
Exchange at the period-end. The companies listed in Hong Kong determine the fair value of other
equity instrument investment according to the closing price of Hong Kong Dollar on the last trading day
of Hong Kong Stock Exchange at the period-end and the median price of CNY exchange rate disclosed
on the same day by China Foreign Exchange Trade System.
11.3. Valuation technique adopted and nature and amount determination of
important parameters for continuously and discontinuously within Level 2 of the fair
value hierarchy
None
1652023 Interim Report of Luzhou Laojiao Co. Ltd.
11.4. Valuation technique adopted and nature and amount determination of
important parameters for continuously and discontinuously within Level 3 of the fair
value hierarchy
Trading financial assets are wealth management products of the collective asset management plan and
are measured at fair value based on the amount calculated on the basis of the net unit value of the
underlying assets as published on the official website of the asset manager.Accounts receivable financing: As the timing and price of bills discounted may not be reliably estimated
due to the short maturity of the bills all being less than one year and the endorsement of the negotiable
bills being valued at book value the Company measures the bills receivable at their book value as a
reasonable estimate of fair value.Other equity instrument investment: Due to no significant changes in business environment business
condition and financial situation of invested companies the Company shall measure the fair value
according to the lower one between investment cost and the share of net assets enjoyed by invested
companies on the base date as the reasonable estimation.
11.5. Continuous fair value measurement items at level 3 adjustment between the
beginning carrying value and the ending carrying value and sensitivity analysis on
unobservable parameters
None
11.6. Explain the reason for conversion and the policy governing when the
conversion happens if conversion happens among continuous fair value
measurement items at different level
None
11.7. Changes in valuation techniques in the reporting period and reasons for the
changes
None
11.8. Fair value of financial assets and liabilities not measured at fair value
None
12. Related parties and related party transactions
12.1. The parent company of the Company
Voting rights
Registration Shareholding
Parent company Business nature Registered capital
place proportion by
proportion by the
the parent parent company
1662023 Interim Report of Luzhou Laojiao Co. Ltd.
company
Investment and
Luzhou Laojiao
Luzhou Sichuan asset 2798818800.00 25.89% 50.75%
Group Co. Ltd.management
Statements for situation of parent company:
Note: The reason for the inconsistency between the shareholding proportion and voting rights
proportion by the parent company is that on 27 May 2021 Laojiao Group and XingLu Investment
Group the second biggest shareholder renewed the concerted action agreement which is valid as of
1 June 2021 and ends on 31 May 2024. The agreement: when the parties in deal with the Company’s
business development and make decisions by shareholders meeting and board of directors according
to the company law and other relevant laws and regulations and the articles of association the
parties should adopt the consistent actions. During the effective period of this agreement before any
party submits proposals involving the major issues of the Company's business development to the
shareholders meeting or exercise the voting rights at the shareholders meeting and the board of
directors the internal coordination for relevant proposals and voting events shall be conducted by
persons acting in concert. If there are different opinions it will be subject to Laojiao Group’s opinion.The nature of parent company: Limited liability company (state-owned); Registration place: Ai
Rentang Square China Baijiu Golden Triangle Liquor Industry Park Luzhou Sichuan Province;
Business Scope: General project: Social economy consulting services; business management
consulting; financial consulting; business headquarters management; import and export agency; trade
brokerage; crops planting services; trees planting operation; elder care services; tourism
development project planning and consulting; technical agency services; engineering and
technological research and experimental development; display device manufacturing; supply chain
management services; technical services technical development technical consulting technical
communication technical transfer and technical promotion; domestic freight transport agency; and
equity fund-invested asset management services. It shall also include licensed projects (business
activities can be carried out legally and independently with business license in addition to projects
that must be approved by law): Agency bookkeeping; career intermediary activities; food production;
food sales; medical services passenger ticket agent and business agency service. (business
activities that require approval in accordance with laws can be carried out upon approval of relevant
authorities and the specific business projects shall be subject to the approval document or license of
relevant departments)
The final control party of the Company is SASAC of Luzhou.
12.2. Subsidiaries of the Company
For details please see Note 9.1. Interests in subsidiaries.
12.3. Joint ventures and associates of the Company
For details please see Note 9.3. Interests in joint ventures and associates.
12.4. Other related party of the Company
Name of Other Related Party Relationship with the Company
1672023 Interim Report of Luzhou Laojiao Co. Ltd.
Luzhou Jiachuang Wine Supply Chain Management Co.The same parent company
Ltd.Luzhou Laojiao Zhitong Trading Co. Ltd. The same parent company
Sichuan Hongxin Financing Guarantee Co. Ltd. The same parent company
Sichuan Lianzhong Supply Chain Service Co. Ltd. The same parent company
New Shottes Brook Private Company The same parent company
Guangzhou Zhongying Gongyuan Energy Saving
Sub-subsidiary of parent company
Technology Co. Ltd.Sichuan Yukun Logistics Co. Ltd. Sub-subsidiary of parent company
Sichuan Kangrun Group Construction and Installation
Sub-subsidiary of parent company
Engineering Co. Ltd.Luzhou Qingxigu Scenic Area Management Co. Ltd. Sub-subsidiary of parent company
Luzhou Yuanhai Lianzhong Supply Chain Co. Ltd. Sub-subsidiary of parent company
Luzhou Sanrenxuan Liquor Industry Co. Ltd. Joint venture of parent company
CTS Luzhou Laojiao Cultural Tourism Development Co.Joint venture
Ltd.Luzhou XingLu Water (Group) Co. Ltd. Subsidiary of the second largest shareholder
Luzhou China Resources Xinglu Gas Co. Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Property Management Co. Ltd. Subsidiary of the second largest shareholder
Sichuan Meihe Winery Industry Co.Ltd. Minority shareholder of the subsidiary Fruit Wine Industry
Luzhou Public Transport Group Co. Ltd. Subsidiary of the second largest shareholder
Other subsidiaries of Luzhou XingLu Investment Group
Other subsidiary of the second largest shareholder
Co. Ltd.Other subsidiaries of Luzhou Laojiao Group Co. Ltd. Other subsidiary of parent company
Other statements:
Note: As the Note 10.1 the Company will disclose the transactions with XingLu Investment Group
and its controlling enterprises as other related parties of the Company.
12.5. Related transactions
12.5.1. Related transactions of purchase and sales of goods / rendering and receipt of
services
Table of purchase of goods / receipt of services
Monetary Unit: CNY
Whether over
Name of Related Amount in Approved trading Amount in
Transaction approved trading
Party current period amount previous period
amount
Receipt of
services:
Luzhou XingLu
Investment Property service
Group Co. Ltd. advertising 13051954.87 11777837.70
and its other service etc.subsidiaries
Training
accommodation
Laojiao Group
warehousing
and its other 24310894.35 10038101.46
transportation
subsidiaries
services and
property costs
1682023 Interim Report of Luzhou Laojiao Co. Ltd.
etc.CTS Luzhou
Laojiao Cultural Conference fees
Tourism travel service 4694551.04 43818.00
Development fee etc.Co. Ltd.Purchase of
goods:
Laojiao Group Raw materials
and its other water power 92192358.30 15407103.04
subsidiaries etc.Luzhou XingLu
Investment
Group Co. Ltd. Gas water 7936512.69 6281248.54
and its other
subsidiaries
Total 142186271.25 43548108.74
Table of sales of goods and rendering of service
Monetary Unit: CNY
Name of Related Party Transaction Amount in current period Amount in previous period
Sales of goods:
Laojiao Group and its
Wine water power etc. 25081222.00 52806.72
subsidiaries
Luzhou Sanrenxuan Liquor
Wine 1572136.80 32528587.08
Industry Co. Ltd.CTS Luzhou Laojiao
Cultural Tourism Wine 36413711.34 30708670.79
Development Co. Ltd.Total 63067070.14 63290064.59
12.5.2. Related party leasing
The Company as lessor:
Monetary Unit: CNY
Leasing income recognized Leasing income recognized
Name of lessee Type of leased asset
during current period during previous period
Laojiao Group and its
House lease 1070040.00 1111300.02
subsidiaries
Total 1070040.00 1111300.02
The Company as lessee:
Monetary Unit: CNY
Rental expenses Variable lease
of short-term payments not
Income expense
lease simplified included in the Increased use
Paid rent of lease liabilities
Type treated and low- measurement of right assets
undertaken
Name value asset lease lease liabilities (if
of
of (if applicable) applicable)
lessor assets Amoun Amoun Amoun Amoun Amoun
Amoun Amoun Amoun Amoun Amoun
leased t in t in t in t in t in t in t in t in t in t in
previo previo previo previo previo
current current current current current
us us us us us
period period period period period
period period period period period
Laojiao House 44632
1692023 Interim Report of Luzhou Laojiao Co. Ltd.
Group lease 8.00
and its
subsidi
aries
44632
Total 8.00
12.5.3. Key management compensation
Monetary Unit: CNY
Item Amount in current period Amount in previous period
Key management 3760964.30 3813084.72
12.6. Receivables and payables of related parties
12.6.1. Receivables
Monetary Unit: CNY
Closing Balance Opening Balance
Item Related party Provision for bad Provision for bad
Book value Book value
debt debt
CTS Luzhou
Laojiao Cultural
Accounts
Tourism 14000.00 700.00
receivable
Development
Co. Ltd.CTS Luzhou
Laojiao Cultural
Prepayment Tourism 2379.50 2379.50
Development
Co. Ltd.Luzhou Laojiao
Prepayment 3528831.55
Group Co. Ltd.Luzhou China
Resources
Prepayment 31289.09
Xinglu Gas Co.Ltd.Luzhou XingLu
Prepayment Water (Group) 807625.52
Co. Ltd.Luzhou Public
Prepayment Transport Group 258393.78
Co. Ltd.Sichuan Meihe
Prepayment Winery Industry 2961479.50 2961479.50
Co.Ltd.CTS Luzhou
Laojiao Cultural
Other
Tourism 70025.33 3501.27 5111743.43 780587.17
receivables
Development
Co. Ltd.Other Luzhou Laojiao
7877.23393.86
receivables Group Co. Ltd.
1702023 Interim Report of Luzhou Laojiao Co. Ltd.
12.6.2. Payables
Monetary Unit: CNY
Item Related party Closing Balance Opening Balance
Sichuan Lianzhong Supply
Accounts payable 16498808.48 6993503.13
Chain Service Co. Ltd.Luzhou Public Transport
Accounts payable 469479.45
Group Co. Ltd.CTS Luzhou Laojiao
Accounts payable Cultural Tourism 168775.00
Development Co. Ltd.Contractual liabilities (tax Luzhou Sanrenxuan Liquor
2424657.481621994.29
inclusive) Industry Co. Ltd.Contractual liabilities (tax Sichuan Lianzhong Supply
73608.7951114.78
inclusive) Chain Service Co. Ltd.Luzhou Jiachuang Wine
Contractual liabilities (tax
Supply Chain Management 5109850.00 4525508.00
inclusive)
Co. Ltd.CTS Luzhou Laojiao
Contractual liabilities (tax
Cultural Tourism 4295273.48 6070341.82
inclusive)
Development Co. Ltd.Luzhou Laojiao Qingxigu
Contractual liabilities (tax
Cultural Tourism 3861920.00
inclusive)
Investment Co. Ltd.Contractual liabilities (tax Sichuan Zhitong Data
45704.00
inclusive) Information Co. Ltd.Contractual liabilities (tax Yuanquan Cultural Tourism
2043896.00
inclusive) Co. Ltd.Luzhou Jiachuang Wine
Other payables Supply Chain Management 360000.00
Co. Ltd.Luzhou Sanrenxuan Liquor
Other payables 150000.00 150000.00
Industry Co. Ltd.Sichuan Lianzhong Supply
Other payables 36790948.00 17633148.00
Chain Service Co. Ltd.Luzhou Laojiao Group Co.Other payables 80000.00
Ltd.Guangzhou Zhongying
Other payables Gongyuan Energy Saving 140444.35
Technology Co. Ltd.CTS Luzhou Laojiao
Other payables Cultural Tourism 1050000.00 750000.00
Development Co. Ltd.Luzhou Xinglu Property
Other payables 154920.20
Management Co. Ltd.
12.7. Commitments of the related parties
None
1712023 Interim Report of Luzhou Laojiao Co. Ltd.
13. Stock payment
13.1. The overall situation of share-based payments
□ Applicable □ N/A
Monetary Unit: CNY
Total equity instruments granted by the Company in the
0.00
reporting period
Total equity instruments exercised by the Company in the
0.00
reporting period
Total equity instruments of the Company expired in the
0.00
reporting period
Scope of the exercise price of outstanding stock options
of the Company at the end of the reporting period and N/A
remaining contract term
Scope of the exercise price of other outstanding equity
instruments of the Company at the end of the reporting N/A
period and remaining contract term
Other statements
The Company granted 92669 shares of the Restricted Share Incentive Plan for the third time in
December 2022 and completed the registration in February 2023.
13.2. Equity-settled share-based payments
□ Applicable □ N/A
Monetary Unit: CNY
Method of determining the fair value of equity instruments The closing price of restricted stocks on the grant date
on the grant date deducted the grant price thereof
Basis to determine number of equity instrument that can Making the best estimate based on the latest number of
be exercised persons who can exercise rights
Reason for remarkable difference between the estimate
of the current period and that of previous period N/A
Total amount of equity-settled share-based payments
1281793025.71
included into capital reserves
Total costs of recognizing equity-settled share-based
198641381.90
payments in the current period
13.3. Cash-settled share-based payments
□ Applicable □ N/A
13.4. Modification and termination of share-based payments
None
1722023 Interim Report of Luzhou Laojiao Co. Ltd.
14. Commitments and contingencies
14.1. Commitments
Significant commitments at the balance sheet date
None
14.2. Contingencies
14.2.1. Significant contingencies at the balance sheet date
On 15 October 2014 and 10 January 2015 the Company disclosed three saving deposits involving
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank with a total amount of
CNY 500 million. The public security organization has investigated and the investigation of related
cases and the preservation of assets are under way. The Company has initiated a civil procedure to
recover the loss from the responsible unit. As of the period-end the Company has recovered the
abovementioned saving deposits involving contract disputes with CNY 371283000.Except for the above matters the Company has no other significant contingencies that need to be
disclosed as the end of 30 June 2023.
14.2.2. Explanation shall be given even if there is no significant contingency for the Company
to disclose
There was no significant contingency in the Company to disclose.
15. Post balance sheet event
15.1. Profit distribution
In accordance with resolutions of shareholders’ meeting
a cash dividend of CNY 42.25 (tax inclusive) will be
Profit distribution plan
distributed for every 10 existing shares held which has
been carried out on 28 August 2023.
15.2. Sales return
There are no important sales returning after balance sheet date.
15.3. Statement for other post balance sheet events
None
1732023 Interim Report of Luzhou Laojiao Co. Ltd.
16. Other important information
16.1. Annuity plan
The Company carried out the enterprise annuity payment work normally during the reporting period.The enterprise annuity funds are paid by both the Company and employees. The Company's
contribution shall not exceed 8% of the Company's total salary in the previous year as stipulated by the
state and the individual contribution shall be withheld by the Company according to 1% of total salary
of the employee in the previous year.
16.2. Segment information
16.2.1 Recognition basis and accounting policies of reportable segment
Except for the business on wine sales the Company does not operate other businesses that have a
significant impact on operation results. In addition the Company operates mainly from China and
main assets also located in China so the Company does not need to disclose segment data.
16.3. Other significant events that can affect investors’ decision
Saving deposits involving contract disputes: As stated in Note 12.2 three saving deposits involved
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank with a total amount of
CNY 500 million. At present the investigation of related cases and the preservation of assets have
been under way. The Company has initiated a civil procedure to recover the loss from the responsible
unit.Taking into account the current amount of assets preserved by the public security authorities and the
contents of the professional legal opinion issued by Beijing Weiheng (Chengdu) Law Firm on 24February 2023 that “given that since the issuance of the previous legal opinion a few recovery hasbeen achieved through the criminal and civil execution totalling CNY 371 million. At the same time it
is suggested that the total amount of bad debt provision for the three aforementioned places remainCNY 120 million” the Company has made a bad debt provision of CNY 120 million for savings
deposit involved in contractual disputes as of the end of the period and the amount of the bad debt
provision may be adjusted in the future based on the litigation process and recovery.Except for the above matters the Company has no other significant events that can affect investors’
decision that need to be disclosed as of 30 June 2023.
1742023 Interim Report of Luzhou Laojiao Co. Ltd.
17. Notes to the main Items of the financial statements of parent
company (all currency unit is CNY except other statements)
17.1. Accounts receivable
17.1.1. Analysis by categories
Monetary Unit: CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Type Book balance Book balance
debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Includin
g:
Account
s
receiva
bles
tested 271333 100.00 3200.0 268133 50000. 100.00 2500.0 47500.
1.18%5.00%
for .64 % 0 .64 00 % 0 00
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
bles
tested
for
impairm
271333100.003200.026813350000.100.002500.047500.
ent on 1.18% 5.00%
the .64 % 0 .64 00 % 0 00
portfolio
with
charact
eristics
of credit
risk
271333100.003200.026813350000.100.002500.047500.
Total 1.18% 5.00%.64%0.6400%000
Please refer to the relevant information of disclosure of provision for bad debt of other accounts
receivable if adopting the general mode of expected credit loss to withdraw provision for bad debt of
accounts receivable.□ Applicable □N/A
Accounts receivables tested for impairment by the portfolio:
Closing Balance
Item
Book balance Provision for bad debt Proportion
Risk portfolio 64000.08 3200.00 5.00%
1752023 Interim Report of Luzhou Laojiao Co. Ltd.
Other
207333.560.000.00%
portfolios
Total 271333.64 3200.00 1.18%
Disclosure by aging
Monetary Unit: CNY
Aging Book balance
Within 1 year (including 1 year) 271333.64
Total 271333.64
17.1.2. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Opening Closing
Type
Balance Reversal or Allowance Write-off Other Balance
recovery
Accounts
receivables
tested for 2500.00 700.00 3200.00
impairment by
the portfolio
Total 2500.00 700.00 3200.001
Note: 1. There is no accounts receivable reversed or recovered with significant amount during the
reporting period.
17.1. 3. Top five entities with the largest balances of accounts receivable
Monetary Unit: CNY
Proportion to total closing
Closing Balance of
Company Name Closing Balance balance of accounts
provision for bad debt
receivable
Luzhou Laojiao Custom
207333.5676.41%
Liquor Co. Ltd.CTS Luzhou Laojiao
Cultural Tourism 14000.00 5.16% 700.00
Development Co. Ltd.One-time sporadic
50000.0818.43%2500.00
customers
Total 271333.64 100.00%
17.2. Other receivables
Monetary Unit: CNY
Item Closing Balance Opening Balance
Dividends receivable 15482200.48
Other receivables 14206680354.74 12042401844.84
Total 14222162555.22 12042401844.84
1762023 Interim Report of Luzhou Laojiao Co. Ltd.
17.2.1. Dividend receivable
17.2.1.1. Classification of dividend receivable
Monetary Unit: CNY
Item Closing Balance Opening Balance
Guotai Junan Securities Co. Ltd. 6241808.41
Huaxi Securities Co. Ltd. 8184934.32
North Chemical Industries Co.Ltd. 78177.75
China Tourism Group Duty Free
977280.00
Corporation Limited
Total 15482200.48
17.2.2. Other receivables
17.2.2.1. Other receivables disclosed by nature
Monetary Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds of subsidiaries
14195106499.9612023243459.84
receivable
Intercourse funds and others 3074745.95 11257616.61
Saving deposits involving contract
128717028.721129049496.98
disputes
Total 14326898274.63 12163550573.43
Note: 1. The saving deposits involving contract disputes refer to three deposits amounting to CNY
500000000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and Nanyang
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement in
contract disputes and have thus been transferred into “other receivables”. As of 30 June 2023 the
closing balance of that fund was CNY 128717028.72.
17.2.2.2. Provision for bad and doubtful other receivables in the current period
Monetary Unit: CNY
First stage Second stage Third stage
Provision for bad Expected loss in the Expected credit loss Expected loss in the
debt duration (credit
Total
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of 1 January
1148728.59120000000.00121148728.59
2023
Balance of 1 January
2023 in the current
period
Recovery 930808.70 930808.70
Balance of 30 June
217919.89120000000.00120217919.89
2023
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable □ N/A
Disclosure by aging
1772023 Interim Report of Luzhou Laojiao Co. Ltd.
Monetary Unit: CNY
Aging Closing balance
Within 1 year (including 1 year) 14198050594.15
1-2 years 39751.76
2-3 years 18100.00
Over 3 years 128789828.72
3-4 years 12800.00
4-5 years 10000.00
Over 5 years 128767028.72
Total 14326898274.63
17.2.2.3. Provision and recovery for bad and doubtful other receivables in the current period
Allowance of provision for bad debt:
Monetary Unit: CNY
Current Period
Type Opening Balance Allowanc Reversal or Closing Balance
Write-off Other
e recovery
Other
receivables
tested for 120000000.00 120000000.00
impairment
individually
Other
receivables
tested for 1148728.59 930808.70 217919.89
impairment by
the portfolio
Total 121148728.59 930808.70 120217919.89
17.2.2.4. Top five entities with the largest balances of the other receivables
Monetary Unit: CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Luzhou Laojiao Internal
13180347168.61
Brewing Co. Ltd. transactions Within 1 year
92.00%
Luzhou Dingyi
Internal
Liquor Industry 541438112.66
transactions Within 1 year
3.78%
Sales Co. Ltd.Luzhou Laojiao
Electronic Internal
286577336.91
Commerce Co. transactions Within 1 year
2.00%
Ltd.Agricultural Bank
of China
Changsha
Yingxin Sub-
branch Industrial Saving deposits
and Commercial involving 128717028.72 Over 5 years 0.90% 120000000.00
Bank of China contract disputes
Nanyang
Zhongzhou Sub-
branch and
another bank.Luzhou Laojiao Internal
122233953.48 Within 1 year 0.85%
Import and transactions
1782023 Interim Report of Luzhou Laojiao Co. Ltd.
Export Trade
Co. Ltd.Total 14259313600.38 99.53% 120000000.00
17.3. Long-term equity investments
Monetary Unit: CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 3725838104 3725838104 3611563148 3611563148
subsidiary .37 .37 .96 .96
Investment in
associates 2718562474 2715995375 2669970043 2667402944
2567098.802567098.80
and joint .44 .64 .71 .91
venture
6444400578644183348062815331926278966093
Total 2567098.80 2567098.80.81.01.67.87
17.3.1. Investment in subsidiary
Monetary Unit: CNY
Opening Changes in current period Closing Closing
Balance Provision Balance balance of Investee
(book Increase Decrease for Other (book provision for
value) impairment value) impairment
Luzhou
Pinchuang 76953725. 9309400.9 86263126.Technology 32 8 30
Co. Ltd.Luzhou
Laojiao 20576505 46077237. 25184229
Sales Co. 5.56 40 2.96
Ltd.Luzhou
Laojiao 32341792 30451978. 32646312
Brewing 28.31 18 06.49
Co. Ltd.Luzhou
Laojiao
Internationa
l 9023636.9 1926237.7 10949874.Developme 6 8 74
nt (Hong
Kong) Co.Ltd.Luzhou
Laojiao
59948387.60483795.
Electronic 535408.14
Commerce 34 48
Co. Ltd.Luzhou
Baonuo 20000000. 20000000.Biotechnolo 00 00
gy Co. Ltd.Luzhou 5693115.4 2344366.2 8037481.7
Laojiao 7 5 2
1792023 Interim Report of Luzhou Laojiao Co. Ltd.
Health
Liquor
Industry
Co. Ltd.Note
Luzhou
Laojiao 20000000. 3630326.6 23630326.New Retail 00 8 68
Co. Ltd.
3611563120000000.94274955.37258381
Total
48.960041104.37
Note: 1. The other increase in the current period is due to the Company's restricted share incentive
business where the parent company (the settlement enterprise) is an investor in the recipient
subsidiary (the service enterprise) and is recognized as a long-term equity investment in the
subsidiary (the recipient service enterprise) based on the fair value of the equity instruments at the
date of grant and the capital reserve (other capital reserves) is recognized at the same time.
17.3.2. Investment in associate and joint venture
Monetary Unit: CNY
Changes in current period
Closin
Openin Gain Adjust Closin g
g or loss ments Cash g Balanc
Investe Balanc recogn of Chang divided Provisi Balanc e of
e e Increa Decrea ized other es in or on for Other e provisi
(book se se under compr other profit impair (book on for
value) equity ehensi equity declar ment value) impair
metho ve ed ment
d income
1. Joint Venture
2. Associate
Huaxi
Securit 2497 54493 2545
139781842567
ies 54059 747.5 24736
Co. 955.21 934.32 098.80 2.05 7 0.51
Ltd.Luzho
u
Laojiao
Postdo
ctoral
Workst 40185 - 39686
ation 894.7 49983 064.5
Techno 7 0.20 7
logy
Innova
tion
Co.Ltd.Sichua
n
Develo
pment
58895159.5894
Wine
Invest 654.24 39 813.63
ment
Co.Ltd.CTS 12378 1380 12516
1802023 Interim Report of Luzhou Laojiao Co. Ltd.
Luzho 6803. 333.08 7136.u 85 93
Laojiao
Cultura
l
Touris
m
Develo
pment
Co.Ltd.
2667553792715
Subtot 1397 8184 2567
40294409.899537
al 955.21 934.32 098.80
4.9145.64
2667553792715
139781842567
Total 40294 409.8 99537
955.21934.32098.80
4.9145.64
17.4. Operating revenue and cost of sales
Monetary Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 3999775395.42 3041281547.34 2054885320.69 1385149822.80
Other business 14764932.60 973400.78 12163668.37 537627.72
Total 4014540328.02 3042254948.12 2067048989.06 1385687450.52
Details:
Monetary Unit: CNY
Contract category Liquor sales Total
Commodity type
Including:
Medium and high
3990677380.303990677380.30
grade liquor
Other liquor 9098015.12 9098015.12
By operating
segment
Including:
Domestic 3999775395.42 3999775395.42
Outbound
Market or customer
type
Including:
Contract type
Including:
Commodity sales
3999775395.423999775395.42
contract
By commodity
transfer time
Including:
By contract term
Including:
1812023 Interim Report of Luzhou Laojiao Co. Ltd.
By sales channel
Including:
Total 3999775395.42 3999775395.42
Information on performance obligation:
None
Other statements:
None
17.5. Investment income
Monetary Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under cost 7530591.92
method
Investment income from long-term
equity investments under equity 55379409.841 25579283.02
method
Investment income gained during the
period of holding held-for-trading 2391009.80 6795921.96
financial assets
Investment income from disposal of
4636104.814827927.32
held-for-trading financial assets
Dividends income gained during the
period of holding other equity 7297266.16 8078717.94
instrument investment
Total 69703790.61 52812442.16
Note: 1. There is no major restriction on the repatriation of the Company's investment income.
18. Supplementary information
18.1. Detailed statement of non-recurring gains and losses in the current period (+
for gain - for loss)
□ Applicable □ N/A
Monetary Unit: CNY
Item Amount Note
Gains or losses on disposal non-
current assets (including the write-off -477479.38 For details please see Note 7.46
portion of the impairment provision)
Government grants included into
current profits and losses (other than
government grants closely related to For details please see Note 7.42 and
21166337.88
enterprise business and granted by Note 7.47
quota or quantity according to
national unified standard)
Gain or loss on fair-value changes on
For details please see Note 7.43 and
held-for-trading financial assets and 37839310.52
Note 7.44
liabilities & income from disposal of
1822023 Interim Report of Luzhou Laojiao Co. Ltd.
held-for-trading financial assets and
liabilities and available-for-sale
financial assets (exclusive of the
effective portion of hedges that arise
in the Company’s ordinary course of
business)
Other non-operating income and For details please see Note 7.47 and
7506932.03
costs other than above items Note 7.48
Less: Impact from income tax 16427670.44
Impact from non-controlling
119219.17
shareholders’ equity
Total 49488211.44 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable □ N/A
No such cases for the reporting period.Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities
to the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.□ Applicable □ N/A
18.2. Return on equity and earnings per share
Profit during reporting EPS (CNY/Share)
Weighted average ROE
period Basic EPS Diluted EPS
Net profits attributable to
common shareholders of 18.79% 4.82 4.82
the Company
Net profits attributable to
common shareholders of
18.66%4.794.79
the Company before non-
recurring gains and losses
18.3. Differences between accounting data under domestic and overseas
accounting standards
18.3.1. Differences of net profit and net assets disclosed in financial reports prepared under
international and Chinese accounting standards
□ Applicable □ N/A
18.3.2. Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
□ Applicable □ N/A
18.3.3. Explain reasons for the differences between accounting data under domestic and
overseas accounting standards; for any adjustment made to the difference existing in the data
audited by the foreign auditing agent such foreign auditing agent’s name shall be clearly
stated
183
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