2025 Annual Report of Luzhou Laojiao Co. Ltd.
Luzhou Laojiao Co. Ltd.2025 Annual Report
【April 2026】
12025 Annual Report of Luzhou Laojiao Co. Ltd.
2025 Annual Report
Section I Important Statements Contents and Definitions
The Board of Directors as well as directors 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
Song Ying 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.Name of directors who did not Position of directors who
attend the meeting in person did not attend the meeting
Reason for not attending
the meeting in person Name of deputiesin person
Liu Miao Chairman of the board Work Lin Feng
Chen You’an Non-executive director Work Li Guowang
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 profit distribution plan approved by the board of directors: based on 1471941963 shares a
cash dividend of CNY 44.17 (tax inclusive) will be distributed for every 10 existing shares held 0
shares of bonus shares (tax inclusive) and reserves would not be converted into share capital.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.
22025 Annual 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.......12
Section IV Governance Environmental and Social Inf...48
Section V Significant Events.........................79
Section VI Changes in Shares and Information about...93
Section VII Information about Bond................. 105
Section VIII Financial Report.......................111
32025 Annual 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);
2. The original of the auditor’s report with the seal of the accounting firm and signed and stamped by
CPAs; and
3. The originals of all company documents and announcements that are disclosed to the public during
the reporting period.
42025 Annual Report of Luzhou Laojiao Co. Ltd.
Definitions
Term Reference Definition
Company the Company Luzhou
Laojiao Refer to Luzhou Laojiao Co. Ltd.Laojiao Group Refer to Luzhou Laojiao Group Co. Ltd.XingLu Group Refer to Luzhou XingLu Investment Group Co. Ltd.SASAC of Luzhou Refer to State-owned Assets Supervision and AdministrationCommission of Luzhou
Huaxi Securities Refer to Huaxi Securities Co. Ltd.Luzhou Bank Refer to Luzhou Bank Co. Ltd.Sales Company Refer to Luzhou Laojiao Sales Co. Ltd.Baijiu Production Company Refer to Luzhou Laojiao Baijiu Production Co. Ltd.Golden Rudder Refer to Sichuan Golden Rudder Investment Co. Ltd.
52025 Annual 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
in Chinese 泸州老窖股份有限公司
Abbr. of the Company
name in Chinese 泸州老窖
Name of the Company
in English (if any) Luzhou Laojiao Co. Ltd.Abbr. of the Company
name in English (if any) LZLJ
Legal representative Liu Miao
Registered address Guojiao Square Luzhou City Sichuan Province China
Postal code 646000
Past changes of The Company’s registered address has changed from 46 Guihua Street
registered address Luzhou City Sichuan Province China to Guojiao Square Luzhou CitySichuan Province China in 2000.Business address Luzhou Laojiao Command Center 71 Nanguang Road Luzhou City SichuanProvince China
Postal code 646000
Company website www.lzlj.com
E-mail lzlj@lzlj.com
2. Contact us
Representative for securities
Secretary of the board
affairs
Name Li Yong Wang Chuan
Address Luzhou Laojiao Command Center 71 Nanguang Road LuzhouCity Sichuan Province China
Tel. (0830)2398826 (0830)2398826
Fax (0830)2398864 (0830)2398864
E-mail dsb@lzlj.com dsb@lzlj.com
62025 Annual Report of Luzhou Laojiao Co. Ltd.
3. Information disclosure and place where the annual report is kept
Stock exchange website where this
Report is disclosed China Securities Journal Securities Times Securities Daily
Media and website where this Report
is disclosed http://www. cninfo.com.cn
Place where the annual report of the
Company is kept Board office
4. Company registration and alteration
Unified social credit code 91510500204706718H
Changes in main business activities
since the Company was listed (if None
any)
Before September 2009 the controlling shareholder was the
Changes of controlling shareholders SASAC of Luzhou. After the equity transfer in September 2009
of the Company (if any) the controlling shareholder was changed to Laojiao Group but the
actual controller is still the SASAC of Luzhou.
5. Other relevant information
Accounting firm engaged by the Company
Name of the accounting
firm ShineWing Certified Public Accountants
Business address of the 8/F Tower A Fuhua Building 8 Chaoyangmen North Street Dongcheng
accounting firm District Beijing China
Name of accountants for
writing signature Wang Xiaodong and Ouyang Lihua
Sponsors engaged by the Company to continuously perform its supervisory function during the
reporting period
□ Applicable □ N/A
Financial adviser engaged by the Company to continuously perform its supervisory function during
the reporting period.□ Applicable □ N/A
72025 Annual Report of Luzhou Laojiao Co. Ltd.
6. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data.□ Yes □ No
2025 2024 YoY Change 2023
Operating revenues
25731010647.3231196248208.33-17.52%30233301388.26
(CNY)
Net profits
attributable to
10830713936.1413472986476.01-19.61%13246394700.59
shareholders of the
Company (CNY)
Net profits
attributable to
shareholders of the
10760038787.7613399514669.49-19.70%13150392806.65
Company before
non-recurring gains
and losses (CNY)
Net cash flows from
operating activities 7123218677.88 19181768363.65 -62.86% 10648364935.46
(CNY)
Basic earnings per
7.369.18-19.83%9.02
share (CNY/share)
Diluted earnings per
7.369.18-19.83%9.02
share (CNY/share)
Weighted average
22.66%30.44%-7.78%35.07%
ROE
At the end of 2025 At the end of 2024 YoY Change At the end of 2023
Total assets (CNY) 64794994851.27 68334595564.58 -5.18% 63294455201.60
Net assets
attributable to
49780293635.7447388500553.465.05%41391410494.89
shareholders of the
Company (CNY)
Whether the lower of the net profits before and after non-recurring gains and losses was negative for
the last three accounting years and the latest auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern
□ Yes □ No
Whether the lowest of the audited total profits before tax net profits and net profits before non-
recurring gains and losses for the reporting period was negative
□ Yes □ No
7. Differences in accounting data under domestic and overseas
82025 Annual Report of Luzhou Laojiao Co. Ltd.
accounting standards
7.1. 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.
7.2. 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.
8. Key financial results by quarter
Unit: CNY
Q1 Q2 Q3 Q4
Operating revenues 9352165445.50 7101567459.15 6673726997.48 2603550745.19
Net profits
attributable to
4592780509.903070127303.083099486836.3468319286.82
shareholders of the
Company
Net profits
attributable to
shareholders of the
4595090018.423054914449.633091592912.4518441407.26
Company before
non-recurring gains
and losses
Net cash flows from
3307744331.602756725698.553758120702.84-2699372055.11
operating activities
Whether there are any material differences between the financial indicators above or their summations
and those which have been disclosed in quarterly or semi-annual reports
□ Yes □ No
9. Non-recurring profits and losses
□ Applicable □ N/A
Unit: CNY
Item 2025 2024 2023 Note
92025 Annual Report of Luzhou Laojiao Co. Ltd.
Profit or loss from
disposal of non-
current assets
(including the write- -534054.68 1058750.22 44694238.37
off 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 of the
Company and given 50033249.88 41225885.28 51950003.11
in accordance with
defined criteria and
in compliance with
government policies
and have a
continuing impact on
the Company's profit
or loss)
Gain or loss on fair-
value changes in
financial assets and
liabilities held by a
non-financial
enterprise as well as
on disposal of
35768978.7154342655.4668181502.73
financial assets and
liabilities (exclusive
of the effective
portion of hedges
that is related to the
Company's normal
business operations)
Reversed portions of
impairment
allowances for
receivables which 40000000.00 422217.14
are tested
individually for
impairment
Other non-operating
income and
expenditure except -30596009.53 -1550111.21 -35875412.66
above-mentioned
items
Less: Corporate
23034464.4420932166.5431697444.12
income tax
Minority
962551.561095423.831250993.49
interests (after tax)
Total 70675148.38 73471806.52 96001893.94 --
102025 Annual Report of Luzhou Laojiao Co. Ltd.
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.
112025 Annual Report of Luzhou Laojiao Co. Ltd.
Section III Management Discussion and Analysis
1. Business scope in the reporting period
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 Self-regulation of
Listed Companies—Industry-specific Information Disclosure.Holding three food business licenses 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. The Company’s primary
products are baijiu series such as "National Cellar 1573" and "Luzhou Laojiao" and its main
comprehensive performance indicators rank high in the baijiu industry. For the reporting period
operating revenue amounted to CNY 25.731 billion; and the net profit attributable to the shareholders
of the listed company reached CNY 10.831 billion.For the Company's brand operations please refer to "4.1 Overview" under “4. Analysis of mainbusiness” in this section. The Company’s main products are classified as follows:
Main product types Classification criteria Representative brand name
Mid- and high-end baijiu Tax-inclusive sales price ≥ National Cellar 1573 Luzhou Laojiao Tequ andCNY 150 per bottle Century-old Luzhou Laojiao Jiaoling Baijiu
Other baijiu Tax-inclusive sales price < Luzhou Laojiao Touqu Luzhou Laojiao · HeyCNY 150 per bottle Guys and Luzhou Laojiao Erqu
122025 Annual Report of Luzhou Laojiao Co. Ltd.
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
Gross YoY change of YoY change of
Operating revenue Cost of sales profit operating YoY change of
margin revenue cost of sales
gross profit
margin
By sales model
Traditional channel
operation model 24220039994.92 3158388332.33 86.96% -18.10% -11.04% -1.04%
Emerging channel
operation model 1385502058.29 239020780.41 82.75% -6.34% -18.76% 2.64%
2. Distributors
Number of Increasednumber Decreased YoY change of
Region distributors at during the number duringthe end of the reporting the reporting
number of Reason for any significant change
reporting period period period
distributors (%)
Domestic 1695 209 215 -0.35
Overseas 93 19 11 9.41
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
The Company had no accounts receivable from the top five distributors at the end of the period. For
details please refer to Section III 4.2.8. "Main customers and suppliers".Store sales terminals accounted for more than 10%
□ Applicable □ N/A
132025 Annual Report of Luzhou Laojiao Co. Ltd.
Online direct sales
□ Applicable □N/A
For the sales of the Company's main products please refer to Section III 4.2.1. "Breakdown of
operating revenues". The Company's complete series of 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
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 3936169970.79
other raw grains and packaging
materials are purchased through bid
invitation
Purchase based on the unified
pricing of the National Development
and Reform Commission and the Fuels and energies 195468129.63
price bureau and purchase through
bid invitation
Purchase through bid invitation Low-value consumables 55627862.64
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
For details please refer to Section III 4.2.5. “Breakdown of cost of sales”.Production volume and inventory
1. Production volume sales volume and inventory of main products
Product Production Sales volume Inventory YoY change YoY change YoY change Description of major
classification volume (ton) (ton) of production of sales of inventory changes
142025 Annual Report of Luzhou Laojiao Co. Ltd.
(ton) volume volume
(%)(%)
Mid- and
high-end 46076.64 37304.70 41774.53 16.82% -13.23% 26.58%
baijiu
The inventory
increased by 39.91%
year on year mainly
Other baijiu 52917.48 48784.62 14488.74 -19.12% -19.72% 39.91%due to the increased
stock of Touqu and
Erqu products for the
year-end period
2. Inventory at the end of the reporting period
Unit: Ton
Finished baijiu Semi-finished baijiu (including base baijiu)
56263.27440736.84
3. Capacity
Unit: Ton
Main products Design capacity Actual capacity Capacity in progress
Baijiu 170000 170000 80000
2. Industry overview for the reporting period
In 2025 the baijiu industry entered a new round of policy adjustment consumption structure
transformation and intensifying competition. A host of contradictions have become prominent
including expanding production capacity amid slowing demand weakening consumption momentum
alongside falling prices a shrinking number of distributors paired with rising inventory levels and
price conflicts between traditional sales channels and e-commerce platforms. The industry is likely to
remain under pressure for a period of time. Nevertheless opportunities will still outweigh challenges
for the baijiu industry in the medium to long term. High-quality development remains the overarching
theme of China’s economy and the fundamentals sustaining long-term economic prosperity remain
unchanged. The current industry adjustment will allow outstanding enterprises with genuine strengths
in brand presence channel layout innovation capability and operational management to stand out.
3. 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 production. 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 produces 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.
152025 Annual Report of Luzhou Laojiao Co. Ltd.
B. Advantage of cellars and the baijiu production 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 baijiu production 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 Baijiu Workshops were selected into China’s Industrial Heritage List. The time-
honored Traditional Baijiu Production Technique of Luzhou Laojiao is a 24-generation inheritance and a
classic production 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 Baijiu Production 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 Baijiu Production Eco-Park has moved into full production in late 2020. Upholdingthe cultural connotations of “inheritance of ancient ways pure-grain based production traditionaltechniques and intelligent technologies” the Company carries out production technique renovation
featuring automatic intelligent and information technology-based transformation. As such it has
established a baijiu production eco-park comprising distillation workshops leaven making workshops
and base baijiu storage cellars along with energy and sewage treatment facilities. This baijiu
production 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.
162025 Annual Report of Luzhou Laojiao Co. Ltd.
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-
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 Distillation National Baijiu 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 informatization and
intelligent transformation of production and packaging. Relying on the technological innovation
172025 Annual Report of Luzhou Laojiao Co. Ltd.
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 baijiu
distillation 2 masters of Chinese baijiu 2 Chinese liquor connoisseurs 1 master of Chinese baijiu
technique 18 senior professor engineers 8 experts who receive special allowances from the State
Council 4 national technicians 3 national model workers 5 national Labor Day Medal winners 4
academic and technologic leaders of Sichuan province 1 expert with outstanding contribution in
Sichuan province 1 technology leader of Tianfu 1 excellent engineer of Tianfu 1 skills leader of Tianfu
3 craftsmen of Tianfu 5 craftsmen of Sichuan province 1 technological elite of Tianfu 2 young science
and technology talents of Tianfu 4 technicians of Sichuan province 7 model workers of Sichuan
province as well as hundreds of highly skilled personnel including national baijiu judges as well as
master technicians senior technicians and technicians in baijiu production and tasting. The
comprehensive and professional personnel system assures the sound development of the Company.
182025 Annual Report of Luzhou Laojiao Co. Ltd.
4. Analysis of main business
4.1. Overview
2025 marked the 110th anniversary of Chinese strong aromatic baijiu going global and it was also the
final year of the Company’s 14th Five-Year Plan strategy. Closely centering on the annual developmenttheme of “Building Momentum for Breakthroughs Advancing Stable Growth through IntensiveCultivation; Seizing Opportunities to Drive Development through Reform and Innovation” the Company
continued to strengthen its endogenous growth drivers and vigorously build long-term momentum to
navigate cycles and secure future success. Over the past year the Company achieved the following
key results:
A. A steadily strengthened market foundation
The Company remained market-oriented and consumer-centric and advanced its marketing initiatives
on all fronts. Its brand strategy was effectively implemented. The Company firmly pursued its
strategy of “dual brands three product series and major single products” with brand recognition and
brand value continuing to increase. National Cellar 1573 maintained its position in the high-end
segment while the Luzhou Laojiao series achieved comprehensive coverage across the sub-
premium mid-range and mass-market price bands. Health care baijiu innovative baijiu new retail
and overseas markets were cultivated with precision. The Company made further breakthroughs
in its nationwide market presence. Strategic initiatives such as the “Hundred Cities Program” the
“East China Strategy” and the “Double Hundred Project” were implemented in depth with a
continued focus on breakthroughs in core regions and the expansion of the sales network into lower-
tier markets. As a result channel control and market penetration were significantly enhanced. Digital
and intelligent marketing delivered remarkable results. Supported by the “Five Codes in One”
system and multidimensional scan-code data the Company deeply advanced full-chain digital
management and refined operations achieving a genuine transformation toward consumer-centric
digital and intelligent operations.B. Brand leadership driving value growthThe Company firmly upheld the philosophy that “a brand of ten years depends on marketing a brandof one hundred years depends on quality and a brand of one thousand years depends on culture” to
promote the continuous recovery of the value of Luzhou Laojiao as a famous baijiu brand. The
Company further enriched its cultural foundations. The Luzhou Laojiao Archive Documents 1771-
1983 was successfully included in the China Documentary Heritage Catalogue of the Memory of the
World Program becoming the first documentary heritage project in the baijiu industry. The Companyalso successfully held themed activities such as the “110th Anniversary of Chinese Strong AromaticBaijiu Going Global” while continuing to refine its corporate culture expression system. Brand
activities were vibrant and diverse. The Company continued to develop distinctive IP events such
as the “Baijiu Seal-off Ceremony” the “International Festival of Poetry & Baijiu” and the “CellarOwner Festival” while engaging with major sporting events including the ITTF World Cup the
Australian Open and the China Open. These initiatives further enhanced brand vitality. The
Company also advanced the integrated development of baijiu culture and tourism across
multiple scenarios. Cultural tourism projects such as the China Baijiu Museum and the new
Chunyang Cave Scenario continued to progress steadily. The Luzhou Laojiao Scenic Area was
192025 Annual Report of Luzhou Laojiao Co. Ltd.
selected as a National Tourism Technology Demonstration Park and was recognized as an
outstanding case in the 2025 Blue Book on the Integrated Development of Intangible Cultural
Heritage and Tourism issued by the China Intangible Cultural Heritage Safeguarding Association.C. Craftsmanship supporting intelligent and digital transformation
The Company remained committed to craftsmanship and quality and continued to build a full-chain
quality assurance system covering raw grain distillation production and the supply chain earning
market trust through exceptional quality. Quality control continued to be refined. Guided by the
philosophy of “making the quality visible” the Company improved its grid-based Chief Quality Officer
system and established a full-industry-chain fully traceable and full-lifecycle quality and safety
management system from field to table. The Company has passed organic certification for 18
consecutive years and established eight organic sorghum bases. Intelligent production helped
reduce costs and improve efficiency. The Huangyi Baijiu Production Eco-Park entered full
operation. Through the application of artificial intelligence big data and other technologies the park
achieved significant improvements in baijiu yield and the acceptance rate of premium-grade baijiu
while continuously reducing water use and carbon emissions. The equipment management system
baijiu production and leaven making MES systems were stably launched and put into operation and
the levels of digital intelligence informatization and automated production in baijiu production
continued to rise steadily.D. A fully formed innovation ecosystem
The Company actively developed an “innovative Luzhou Laojiao” embedding innovative thinking
across all processes of corporate operations. A strong atmosphere of innovation took shape. The
successful hosting of the first “Chinese-Style Mixology Competition” brought the Company’s
innovative drinking model to nationwide attention. New consumption scenarios such as camping
skiing and music festivals were successfully developed expanding the boundaries of baijiu
consumption in all dimensions. Scientific and technological innovation produced strong results.The Company established the industry’s first science and technology museum and worked with
universities and research institutes to conduct research and application in key common technologiesand frontier technologies forming a thriving integrated ecosystem of “industry academia researchand application”. Cross-sector integration also generated strong momentum. The Company
actively launched cross-sector brand collaborations engaging with fields such as sports art and
fashion and it introduced derivative products including co-branded products with China’s national
teams. It also explored innovative cross-industry cooperation and established strategic partnerships
with leading enterprises further deepening market penetration.E. Multi-dimensional strengthening of headquarters capabilities
The Company comprehensively advanced scientific standardized and information-based
development building a lean efficient strongly controlled and value-creating headquarters. Orderly
coordination was achieved across the headquarters ecosystem. The marketing production
supply chain and management systems worked together to create strong synergies providing solid
organizational support for the Company to remain competitive in a complex environment. Guided by
the “one framework five transformations and five connected flows” approach headquarters systems
strengthened cross-departmental process alignment and information sharing. Corporate
202025 Annual Report of Luzhou Laojiao Co. Ltd.
governance remained well-regulated and orderly. The Company received the highest A rating in
the Shenzhen Stock Exchange’s information disclosure assessment for the sixth consecutive year
and won the “Best Practice Case of the Board of Directors of Listed Companies” award from the
China Association for Public Companies. The Company advanced team renewal in both scale and
quality. Applying systematic thinking the Company reshaped its talent ecosystem and empowered
its workforce through both institutional innovation and digital transformation building a talent
ecosystem in which the leadership team is aligned middle management is united and employees are
fully engaged.F. Harmonious inclusive and green development
Upholding the corporate philosophy of “Baijiu for the World a Shared Future” the Company
continued to shape itself as a responsible enterprise that dares to take responsibility and acts with
purpose. The Company actively fulfilled its social responsibilities. It implemented projects
covering rural infrastructure construction and industrial assistance to consolidate the achievements of
rural revitalization. It also carried out public welfare activities such as the “Little Schoolbag Big Love”
initiative benefiting nearly 10000 teachers and students. The Company advanced green safe and
sustainable development. Guided by the safety philosophy of “Life First Happiness for All” the
Company achieved “zero workplace safety accidents”. It continued to promote low-carbon and clean
production achieving significant cost reduction and efficiency gains in water heat and waste
management. The Company remained committed to jointly creating and sharing the benefits of
development. It formulated the 2024-2026 Shareholder Dividend Plan. Cumulative dividends since
its listing have reached CNY 60.56 billion representing a high dividend payout ratio of 63.50% (after
the implementation of the 2025 final dividend distribution). The Company’s ESG ratings continued to
improve and it was included in the “2024 China Alcoholic Drinks Industry ESG List”.
4.2. Revenues and cost of sales
4.2.1. Breakdown of operating revenues
Unit: CNY
20252024
As % of As % of YoY Change
Amount operating Amount operating
revenues revenues
Total 25731010647.32 100% 31196248208.33 100% -17.52%
By business segment
Baijiu 25605542053.21 99.51% 31052653337.55 99.54% -17.54%
Other revenues 125468594.11 0.49% 143594870.78 0.46% -12.62%
By product
Mid- and high-
22967954695.5989.26%27585319704.6288.43%-16.74%
end baijiu
Other baijiu 2637587357.62 10.25% 3467333632.93 11.11% -23.93%
Other revenues 125468594.11 0.49% 143594870.78 0.46% -12.62%
By geographical segment
Domestic 25534165136.80 99.23% 31010093741.29 99.40% -17.66%
Overseas 196845510.52 0.77% 186154467.04 0.60% 5.74%
By sales model
Traditional 24220039994.92 94.13% 29573326673.25 94.80% -18.10%
212025 Annual Report of Luzhou Laojiao Co. Ltd.
channel
operation model
Emerging
channel 1385502058.29 5.38% 1479326664.30 4.74% -6.34%
operation model
Other revenues 125468594.11 0.49% 143594870.78 0.46% -12.62%
4.2.2. Business segments products geographical segments or sales models
contributing over 10% of the operating revenues or profits
□ Applicable □ N/A
Unit: CNY
YoY
Gross YoY change YoY change
change of
Operating revenue Cost of sales profit of cost of of gross
operating
margin sales profit margin
revenue
By business segment
Baijiu 25605542053.21 3397409112.74 86.73% -17.54% -11.63% -0.89%
By product
Mid- and high-
22967954695.592080399388.3390.94%-16.74%-7.46%-0.91%
end baijiu
Other baijiu 2637587357.62 1317009724.41 50.07% -23.93% -17.50% -3.89%
By geographical segment
Domestic 25534165136.80 3412604641.73 86.64% -17.66% -11.65% -0.90%
By sales model
Traditional
channel
24220039994.923158388332.3386.96%-18.10%-11.04%-1.04%
operation
model
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 year is calculated
based on adjusted statistical standards at the end of the reporting period
□ Applicable □ N/A
4.2.3. Whether revenue from sales of goods is higher than revenue of rendering
services
□ Yes □ No
By business
Item Unit 2025 2024 YoY Change
segment
Sales volume Ton 86089.32 103761.06 -17.03%
Production
Baijiu Ton 98994.12 104868.66 -5.60%
volume
Inventory Ton 56263.27 43358.47 29.76%
Reason for any over 30% YoY movements in the data above
□ Applicable □ N/A
222025 Annual Report of Luzhou Laojiao Co. Ltd.
4.2.4. Execution of significant sales or purchase contracts in the reporting period
□ Applicable □ N/A
4.2.5. Breakdown of cost of sales
By business segment
Unit: CNY
20252024
By business
Item As % of As % of YoY Change
segment Amount cost of Amount cost of
sales sales
Baijiu Raw materials 2667985376.23 78.53% 3088023001.56 80.32% -13.60%
Baijiu Labor costs 278927288.16 8.21% 292097887.79 7.60% -4.51%
Manufacturing
Baijiu 450496448.35 13.26% 464297041.59 12.08% -2.97%
overhead
Note:
None.
4.2.6. Change in the scope of the consolidated financial statements for the
reporting period
□ Yes □ No
In August 2025 the Company invested in and established a wholly-owned subsidiary namely Luzhou
Laojiao Cultural Tourism Development Co. Ltd.
4.2.7. Major changes in the business products or services in the reporting period
□ Applicable □ N/A
4.2.8. Main customers and suppliers
Sales to main customers of the Company
Total sales to top five customers（CNY） 19222822763.18
Total sales to top five customers as % of the total
sales 74.71%
Total sales to related parties among top five
customers as % of the total sales 0.00%
Information on top five customers
No. Customer Sales amount (CNY) As % of the total salesfor the year
1 Customer A 12586933118.21 48.92%
2 Customer B 3204322726.71 12.45%
3 Customer C 2296944493.54 8.93%
4 Customer D 596456036.47 2.32%
232025 Annual Report of Luzhou Laojiao Co. Ltd.
5 Customer E 538166388.25 2.09%
Total -- 19222822763.18 74.71%
Other information on main customers
□ Applicable □ N/A
Main suppliers of the Company
Total purchases from top five suppliers（CNY） 1454050675.99
Total purchases from top five suppliers as % of
the total purchases 34.73%
Total purchases from related parties among top
five suppliers as % of the total purchases 6.34%
Information on top five suppliers
No. Supplier Purchases (CNY) As % of the totalpurchases for the year
1 Supplier A 409267306.14 9.77%
2 Supplier B 335876137.00 8.02%
3 Supplier C 265629470.88 6.34%
4 Supplier D 252958673.55 6.04%
5 Supplier E 190319088.42 4.55%
Total -- 1454050675.99 34.73%
Other information on main suppliers
□ Applicable □ N/A
Whether the Company’s trading revenue accounted for more than 10% of its total operating revenue
in the reporting period
□ Applicable □ N/A
4.3. Expenses
Unit: CNY
Reason for any
2025 2024 YoY Change
significant change
Selling and
3237149369.153538382615.99-8.51%
distribution expenses
General and
administrative 962421600.80 1100779964.56 -12.57%
expenses
Finance expenses -511995793.73 -488521059.32
R&D expenses 215855671.81 260975311.10 -17.29%
242025 Annual Report of Luzhou Laojiao Co. Ltd.
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 Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
4.3.1. Breakdown of selling and distribution expenses
Unit: CNY
Selling and distribution
expenses 2025 2024 YoY Change Reason for any significant change
Advertising expenses 1275745184.28 1548153847.96 -17.60%
Sales promotion
expenses 1281434004.00 1109741814.61 15.47%
Warehousing and
logistics expenses 140429747.50 162568387.89 -13.62%
Labor costs 323502036.15 387418851.76 -16.50%
Other 216038397.22 330499713.77 -34.63%Mainly due to the decreasedconference and other expenses
4.3.2. Breakdown of advertising expenses
Unit: CNY
Advertising Expenses
Online advertising (exclusive of TV advertising) 191763884.02
Offline advertising 201775642.12
TV advertising 430685900.55
Other (inclusive of branding ideas exhibitions & showcases advertising materials activity
planning etc.) 451519757.59
4.4. R&D investments
□ Applicable □ N/A
Expected impact on
Major R&D projects Purpose Progress Specific objectives
the Company
Focusing on To develop an
The project aims to distillation waste intelligent equipment
realize the energy- (discarded grains) as system with
and resource-based the research subject packaged technology
utilization of the project adopted for the resource- and Realize a large-scale
Thermochemical distillation waste with technologies such as energy-based resource- and
Energy- and thermochemical high-efficiency drying utilization of energy-based
Resource-based technology and and thermochemical distillation waste utilization of
Coupled Utilization develop a complete conversion of successfully build a distillation waste and
Technology of set of intelligent biomass to thermally demonstration base achieve both
Distillation Waste equipment systems decompose the for the project ecological and
for the resource- and discarded grains into industrialization and economic benefits.energy-based pyrolysis gas and achieve resource-
utilization of biochar. The and energy-based
distillation waste. pyrolysis gas is utilization of
reused as energy in distillation waste to
252025 Annual Report of Luzhou Laojiao Co. Ltd.
the distilling process ensure the low-
while the biochar carbon green
serves as an organic development of the
fertilizer for sorghum Chinese baijiu
cultivation. The industry.project has
completed the
construction of a
100000 tons/year
energy- and
resource-based
coupled utilization
project and a
200000-mu green
planting
demonstration base.It has achieved a
resource utilization
rate of over 90% for
distillation waste and
a gas energy
recycling rate of over
95% filling the
technological gap in
thermochemical
treatment of
distillation waste
(discarded grains)
and promoting
breakthroughs in key
general technologies
for the efficient
conversion and safe
disposal of organic
solid waste under the
solid waste resource
utilization initiative.The project is to The Company The Company has
implement national continuously strengthened the
standards for improved the close integration of
intellectual property intellectual property intellectual property
management and management creation and
The Company has
achieve efficient system and obtained protection with the
established a sound
management of the certification in the whole process of
intellectual property
Company in the Enterprise technological
management
creation application intellectual property innovation enhanced
High-value Patent system
and protection of compliance the capability of the
Incubation Center strengthened the
intellectual property. management enterprise to create
Project of Luzhou creation and
An all-round layout of system— intellectual property
Laojiao protection of
intellectual property Requirements (GB/T and prevent potential
intellectual property
is made around the 29490-2023) as well intellectual property
and enhanced the
core key as graded evaluation risks. The Company
core competitiveness
technologies of the under the has strengthened the
of the enterprise.industrial chain to international analysis and
promote the creation standard Innovation application of patent
of high-quality management — information laid out
patents and build a Tools and methods and explored
patent pool for core for intellectual intellectual property
262025 Annual Report of Luzhou Laojiao Co. Ltd.
technologies. property around core key
management — technologies and
Guidance (ISO formed a series of
56005). Focusing on high-value patents
key distillation with technical
technologies the economic and legal
Company fully value.utilized patent
analysis tools to
conduct competitive
situation analysis
and layout analysis.Patent risk warning
measures were
reinforced through
regular monitoring
and analysis of key
technical outcomes
in relevant branches.The Company also
organized high-value
patent cultivation
training and mining
workshops
comprehensively
enhancing R&D
personnel’s
awareness of
innovation drafting
competence and
protection
capabilities.The project aims to The Company
carry out integrated carried out the
research on major breeding of new
new green and high- sorghum varieties
Through
efficiency varieties dedicated to baijiu
industrialization
dedicated to production and
demonstration the
distillation and successfully The project is
project aims to fully
supporting developed one new expected to help
leverage the
technologies. It sorghum variety for ensure a high-quality
advantages of
seeks to establish a baijiu production. It and stable supply of
Selection and combining the
comprehensive established two high- sorghum for baijiu
Breeding of New varieties developed
integrated innovation quality sorghum seed production at the
Varieties for Baijiu under the project
demonstration base breeding bases in source laying a
Production and with supporting
for new varieties and Hainan and Luzhou foundation for
Integrated technologies and
supporting and built one Luzhou Laojiao’s
Demonstration of promote the
technologies comprehensive long-term quality
New Technologies development of a
develop core integrated innovation upgrading cost
modern agricultural
demonstration plots demonstration base control and
industry system that
jointly involving baijiu for major new coordinated industrialintegrates “varietycompanies seed sorghum varieties development.breeding seed
companies research and technologies
multiplication and
institutions and new dedicated to baijiupromotion”.types of business production. Average
entities and form a yield per unit
technology increased by 11.6%
transformation and new sorghum
272025 Annual Report of Luzhou Laojiao Co. Ltd.
mechanism linking varieties for baijiu
new varieties production were
supporting promoted for
technologies cultivation on 72000
demonstration and mu of farmland in
promotion. Luzhou.In research areas
such as distillation
process
intelligentization
fermentation
mechanisms and
microbiology as well
as flavor and health
Sichuan Innovation
Center for Solid-state
Distillation
Technologies
continuously
advanced innovation
R&D and application
of key common
Luzhou Laojiao took
technologies and To gather innovative
the lead to jointly
cutting-edge leading resources in solid-
build the Sichuan
technologies across state distillation
Innovation Center for
the industry chain. create an innovation
Solid-state
These efforts alliance in the solid- Successfully build a
Distillation
supported solid-state state distillation technological
Technologies with
Establishment of distillation technology sector make innovation platform
several universities
Sichuan Innovation research industry breakthroughs in thereby improving
institutes and other
Center for Solid-state exchanges result core key the Company's
enterprises aiming
Distillation transformation and technologies in the scientific and
to overcome a batch
Technologies talent training. It solid-state distillation technological
of core technological
organized and sector and form a innovation
challenges in solid-
convened the 2025 science and capabilities and level.state distillation and
Annual Work technology
facilitate the
Meeting of Sichuan innovation center
development of the
Innovation Center for with national
solid-state distillation
Solid-state influence.sector.Distillation
Technologies to
discuss the industrial
technological
orientation and
development paths.Focusing on key
common technical
challenges of the
industry it released
the 2025 Application
Guidelines for
Alliance Open
Projects with 12 new
projects approved
and initiated.A Study on the By applying modern Luzhou Laojiao To build an intelligent Level up the
Optimization of Key technologies such as carried out industry- demonstration Company's intelligent
Intelligent Equipment intelligent sensing university-research production line. production and
282025 Annual Report of Luzhou Laojiao Co. Ltd.
and the System image recognition cooperation with promote the
Control for Baijiu spectral technology universities and transformation and
Production and bio-chips the research institutes in upgrading of the
project aims to the field of intelligent traditional baijiu
develop core production deeply production industry.technologies for each analyzed traditional
link of production production processes
including and fermentation
fermentation principles
vinasse-based innovatively applied
ingredient making simulation
distillation of grains technology
in vats and baijiu automation
selection and build technology online
intelligent production testing industrial
lines with robots big data
independent analysis intelligent
optimization decision-making and
production decision- other technologies to
making and the production
execution capabilities engineering
to comprehensively renovation project of
upgrade the solid- Luzhou Laojiao. The
state distillation Company has
technologies in the mastered core
baijiu industry. technologies such as
automated robot-
based steam
detection and vat
filling graded baijiu
selection by quantity
and quality and
intelligent cellar
management. It has
also independently
developed
supporting
equipment and
system integration
for baijiu distillation
processes including
sorghum
pretreatment
proportioning and
material mixing
created intelligent
decision-making
modules covering the
entire distillation
workflow and
realized precise
control and
optimization of the
production process.Construction of the The project aims to Luzhou Laojiao To establish a baijiu Master the core
Baijiu Production carry out collection of carried out industry- production microbial resources of baijiu
Microbial Resources baijiu production university-research strain bank of a production
and Data Platform microbial resources cooperation with certain scale which microorganisms and
292025 Annual Report of Luzhou Laojiao Co. Ltd.
rapid isolation universities and can achieve long- enhance the
authentication based on the term safe Company's ability to
review and transfer analysis of the preservation of protect and utilize
of microbial metabolic strains and is baijiu production
resources in the mechanisms of the supplemented by microbial resources.production process microbial flora in the special information
of baijiu and mud of the 400-year- technology to
development of old national treasure manage strain
excellent strains for fermentation pit information.industrial use completed diversity
establish a baijiu analysis on 1394
production microbial baijiu samples
strain library and preserved 3300
related enzymology microbial strains and
library and promote obtained flavor
the protection compound data for
sharing and 315 strains and
sustainable utilization whole-genome
of baijiu production sequencing data for
microbial resources. 310 strains. The
Company screened
and obtained a
series of new
species and key
functional
microorganisms suchas the “LaojiaoLactobacillus”“LaojiaoSyntrophococcus”and “LaojiaoClostridium” and
filed 24 applications
for invention patents
related to functional
strains of which 15
have been granted.Information about R&D personnel
2025 2024 YoY Change
Number of R&D
personnel 480 475 1.05%
R&D personnel as % of
total employees 12.27% 12.40% -0.13%
Educational backgrounds of R&D personnel
Bachelor’s degree 237 276 -14.13%
Master’s degree 193 149 29.53%
Doctoral degree
(including postdoctoral 50 50 0.00%
workstations)
Age structure of R&D personnel
Below 30 194 188 3.19%
30~402242078.21%
302025 Annual Report of Luzhou Laojiao Co. Ltd.
Information about R&D investments
2025 2024 YoY Change
R&D investments
(CNY) 220140589.52 280166160.16 -21.42%
R&D investments as %
of operating revenues 0.86% 0.90% -0.04%
Capitalized R&D
investments (CNY) 4284917.71 0.00 0.00%
Capitalized R&D
investments as % of 1.95% 0.00% 1.95%
total R&D investments
Reason for any significant change in the composition of R&D personnel and the impact
□ Applicable □ N/A
Reason for any significant YoY change in the percentage of the R&D investments in the operating
revenues
□ Applicable □ N/A
Reason for any sharp variation in the percentage of the capitalized R&D investments and rationale
□ Applicable □ N/A
4.5. Cash flows
Unit: CNY
Item 2025 2024 YoY Change
Subtotal of cash
inflows from operating 28520870603.68 41014285259.97 -30.46%
activities
Subtotal of cash
outflows from operating 21397651925.80 21832516896.32 -1.99%
activities
Net cash flows from
operating activities 7123218677.88 19181768363.65 -62.86%
Subtotal of cash
inflows from investing 2296764566.58 2277579273.71 0.84%
activities
Subtotal of cash
outflows from investing 4032762969.97 3660085206.26 10.18%
activities
Net cash flows from
investing activities -1735998403.39 -1382505932.55
Subtotal of cash 408166310.93 2000079496.11 -79.59%
inflows from financing
312025 Annual Report of Luzhou Laojiao Co. Ltd.
activities
Subtotal of cash
outflows from financing 12228285214.29 12328932533.79 -0.82%
activities
Net cash flows from
financing activities -11820118903.36 -10328853037.68
Net increase in cash
and cash equivalents -6442574052.64 7474638736.60 -186.19%
Explanation of why the data above varied significantly
□ Applicable □ N/A
Net cash flows from operating activities decreased by 62.86% mainly due to the decreased cash
received from sales of goods and discounted notes in the current period.Explanation of main reasons leading to the material difference between net cash flows from operating
activities during the reporting period and net profit for the year
□ Applicable □ N/A
This is mainly due to the advance collection of part of current-year revenue in the prior year as a
result of the accrual basis of accounting and the increased inventory in the current year.
5. Analysis of non-core business
□ Applicable □ N/A
6. Assets and liabilities
6.1. Significant change of asset items
Unit: CNY
At the end of 2025 At the beginning of 2025 Reason for any
Change in
As % of total As % of total significant
Amount Amount percentage
assets assets change
Cash and cash
27341566698.3742.20%33578396831.3349.14%-6.94%
equivalents
Accounts
6075570.660.01%11022302.310.02%-0.01%
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 15396031707.35 23.76% 13392794475.96 19.60% 4.16%
Investment
47892751.080.07%50246694.160.07%0.00%
property
Long-term equity
2930804469.774.52%2801252317.934.10%0.42%
investments
Fixed assets 8523891404.03 13.16% 9131776915.51 13.36% -0.20%
322025 Annual Report of Luzhou Laojiao Co. Ltd.
Construction in
2064766283.243.19%807233988.901.18%2.01%
progress
Right-of-use
19863214.190.03%29254214.230.04%-0.01%
assets
Short-term loans 0.00% 0.00% 0.00%
Contract
3367443727.835.20%3978131528.885.82%-0.62%
liabilities
Mainly due to the
repayment of
loans and the
reclassification of
Long-term loans 2627166310.93 4.05% 6279900000.00 9.19% -5.14% loans due within
one year as non-
current liabilities
due within one
year
Lease liabilities 15693190.61 0.02% 24528519.13 0.04% -0.02%
Whether overseas assets account for a larger proportion in total assets
□ Applicable □ N/A
6.2. Assets and liabilities measured at fair value
□ Applicable □ N/A
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 16942822 7777112.4 21000000 22172874 15847719
(exclusive of 95.97 9 00.00 49.09 59.37
derivative
financial
assets)
4.Investmen
ts in other 407194706 219220333 475499237
equity .55 .62 .90
instruments
6. Accounts -
1801947414664949
receivable 335452481
55.7873.96
financing .82
Subtotal of -
390342447777112.4219220333210000002217287435267661
financial 335452481
58.309.6200.0049.0971.23
assets .82
332025 Annual Report of Luzhou Laojiao Co. Ltd.
-
390342447777112.4219220333210000002217287435267661
Total 335452481
58.309.6200.0049.0971.23.82
Financial
0.000.00
liability
Contents of other changes
None
Whether measurement attribution of main assets changes significantly in this year
□ Yes □ No
6.3. Restricted asset rights as of the end of this reporting period
Unit: CNY
Item Closing balance Reason
Cash and cash
equivalents 393834614.88Accrued interest on term deposits
Cash and cash
equivalents 10000053.87
Under management in accordance with the management
measures for the use of special project funds
Cash and cash
equivalents 10023572.23Security deposits for bank guarantees
Cash and cash
equivalents 1404495.57Security deposits at e-commerce platforms
Cash and cash
equivalents 1200000.00Funds frozen by court order
Cash and cash
equivalents 10000.00Funds frozen for other reasons
Total 416472736.55
7. Investment
7.1. Total investment
□ Applicable □ N/A
Investment made in the Investment made in the prior
reporting period (CNY) year (CNY) YoY change
3543132798.332954722709.6619.91%
7.2. Significant equity investment made in the reporting period
□ Applicable □ N/A
342025 Annual Report of Luzhou Laojiao Co. Ltd.
7.3. 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
Industr input
r it is a of input income meetin Date of Disclos
Investm y of the amount Project Project
fixed in the Capital by the g the disclos ure
Item ent investm by the progres ed
asset reportin source end of schedul ure (if index
form ent end of s income
investm g the e and any) (if any)
project the
ent period reportin project
reportin
g ed
g
period income
period
Announ
cement
on the
Implem
Luzhou entatio
Laojiao n of
Technic Luzhou
al Laojiao
Renova Technic
tion al
Project 99605 20734 Self- Renova
Self- July 13
of Yes Baijiu 9128.1 57683. financin 56.00% 0.00 0.00 N/A tion
built 2022
Intellige 8 07 g Project
nt of
Baijiu Intellige
Product nt
ion Baijiu
(Phase Product
I) ion
(Phase
I) by
Subsidi
ary
9960520734
Total -- -- -- 9128.1 57683. -- -- 0.00 0.00 -- -- --
807
7.4. Financial assets investment
7.4.1. Securities investment
□ Applicable □ N/A
Unit: CNY
Categ Abbre Initial Accou Beginn Chang Chang Amou Amou Profit Closin Accou
Stock Capital
ory of viation invest nting ing es in es in nt of nt of and g book nting
code source
securit of ment measu book fair the purcha sale loss balanc item
352025 Annual Report of Luzhou Laojiao Co. Ltd.
ies securit cost rement balanc value cumul se during e
ies model e recogn ative the
ized in fair reporti
profit value ng
or loss record period
ed into
equity
Invest
Dome ments
Fair
stic 12719 21964 22929 24201 in
60121 value 5064 Own
and GTHT 156.7 0994. 8131. 7288. other
1 measu 108.71 fund
foreign 6 03 57 33 equity
rement
stock instru
ments
Invest
Dome ments
Fair
stic 15870 27145 28175 in
00224 1030 value 62542 Own
and SNC 083.2 261.0 261.0 other
6 000.00 measu .20 fund
foreign 4 9 9 equity
rement
stock instru
ments
Invest
Dome ments
Fair
stic 51120 78356 33927 85047 in
LZBA value 5207 Own
and 01983 000.0 318.9 773.2 773.2 other
NK measu 040.00 fund
foreign 0 9 7 7 equity
rement
stock instru
ments
Invest
Dome ments
Fair -
stic CTG 54228 60069 87001 in
value 64197 1282 Own
and 01880 Duty- 5380. 399.6 004.5 other
measu 690.7 673.77 fund
foreign Free 80 4 6 equity
rement 2
stock instru
ments
6071537393226171161644224
Total 4537. -- 6795. 0.00 3475. 0.00 0.00 364.6 1327. -- --
569021825
7.4.2. Derivative investment
□ Applicable □ N/A
No such cases in the reporting period
8. Sale of major assets and equity interests
8.1. Sale of major assets
□ Applicable □ N/A
No such cases in the reporting period.
362025 Annual Report of Luzhou Laojiao Co. Ltd.
8.2. Sale of major equity interests
□ Applicable □ N/A
9. 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
Sales of
baijiu
series
Luzhou
such as
Laojiao 1000000 6874023 2465752 2482203 9393409 6927511Subsidiary “NationalSales Co. 00.00 782.55 852.94 7200.58 955.36 027.75
Cellar
Ltd.
1573” and“LuzhouLaojiao”
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ N/A
Notes for major holding companies and joint stock companies
None
10. Structured entities controlled by the Company
□ Applicable □ N/A
11. Outlook for the future development of the Company
11.1. Industry landscape and trends
A. According to data from the National Bureau of Statistics in 2025 baijiu enterprises above the
designated size nationwide produced a total of 3.5490 million kiloliters of baijiu representing a year-
on-year decrease of 12.10%. In recent years the output of baijiu enterprises above the designated
size nationwide has continued to decline and the baijiu industry is shifting from scale expansion to
deeper value creation.
372025 Annual Report of Luzhou Laojiao Co. Ltd.
B. Consumption logic is being reshaped. Against the macro backdrop of a transition between old and
new growth drivers in economic development the driving paradigm and value anchors of baijiu
consumption are being redefined. Consumer demand is shifting from satisfying quantity-based needs
to pursuing quality and the industry’s core focus is moving from “company-defined value” to
“consumer-defined value”. Going forward the baijiu industry will place greater emphasis on both the
hard strength of product quality and the soft strength of services.C. The consumption structure is changing. With the rise of younger consumer groups the
consumption structure of the baijiu industry is undergoing subtle changes. Specifically business and
managerial consumers remain the mainstay of baijiu consumption while “youth-oriented consumption”is gradually becoming a development trend in the baijiu industry. “Lower alcohol content youth-oriented consumption and scenario-based consumption” will become important themes for baijiu
enterprises as they explore future development.
11.2. The Company’s development strategy
11.2.1. Development opportunities in the future
A. In October 2025 the Ministry of Industry and Information Technology included baijiu production in
the category of “time-honored classic industries” for the first time placing it alongside industries such
as silk tea and porcelain. This has injected strong momentum into the industry. In the long run fine
baijiu will always be an important part of a better life and baijiu culture is also an important
component of Chinese civilization. With further policy support and resource allocation in the future
the baijiu industry still has broad room for development.B. In recent years the digital transformation of the baijiu industry has moved from the initial stage of
building foundational systems into a critical phase of deep integration across the entire business
chain. As cutting-edge technologies such as artificial intelligence blockchain and the Internet of
Things are increasingly applied in practical scenarios within the baijiu industry more breakthroughs
are expected in both intelligent upgrades on the production side and personalized services on the
consumer market side. These developments will drive higher-quality development of the baijiu
industry.C. During the 14th Five-Year Plan period the Company steadily advanced its supply chain operation
strategy and successfully completed its strategic transformation from a traditional baijiu enterprise to
a high-tech baijiu enterprise. The Company has developed strong advantages as a supply chain
leader. Looking ahead to the 15th Five-Year Plan period the Company will unswervingly advance its
“ecosystem chain operation strategy”. Through forward-looking strategic planning strong
technological empowerment and efficient ecosystem collaboration the Company will
comprehensively promote Luzhou Laojiao’s high-quality development to a new level.
11.2.2. Possible challenges and risks in the future
A. Risk of a slower-than-expected recovery in consumption. At present and for some time to come
the domestic and international environments are becoming more complex and uncertain and the
consumer market faces multiple pressures including contracting demand supply shocks and
weakening expectations. As a typical pro-cyclical industry the baijiu industry is highly correlated with
consumer sentiment. If the recovery of the consumer market falls short of expectations the industry
may remain in an adjustment period for an extended time.
382025 Annual Report of Luzhou Laojiao Co. Ltd.
B. Risk of intensified price competition. The supply-demand imbalances accumulated during the
period of rapid growth in the baijiu industry have continued to emerge and market price inversion has
become widespread. If the supply-demand structure cannot be effectively improved further price-
based competition may occur affecting revenue and profit margins across the entire industry chain.C. Risk arising from generational changes in consumers. Younger consumer groups have more
diversified preferences and the industry faces challenges in scenario innovation taste adaptation
and cultural identification. If the baijiu industry cannot effectively reach young consumers and build
emotional connections through innovation in products marketing and consumption scenarios it may
lead to weakened growth momentum and a diversion of market share.
11.2.3. The Company's "15th five-year" development strategyGuided by the development approach of “staying focused on returning to the top three in the industrytackling key challenges through coordination and pursuing steady long-term progress” the
Company formulated after careful study its strategic plan for the 15th Five-Year Plan period: the
“156” Strategy.Firmly pursuing “1” development goalThe Company will remain firmly committed to the strategic goal of “returning to the top three in theindustry” and will follow through on this blueprint with consistency. It will strive to enter the first tier of
China’s baijiu industry across key areas including business scale profitability quality production
capacity brand value and digital and intelligent innovation.Upholding “5” development philosophies
First the Company will uphold a long-term philosophy and remain firmly consumer-centric. Bypursuing the corporate vision of “Luzhou Laojiao moves the world and National Cellar 1573 bringsthe taste of China to the world” the Company aims to grow into a great enterprise capable of
navigating cycles and achieving steady long-term development.Second the Company will uphold a quality philosophy and remain firmly committed to quality as itsbelief. By practicing the baijiu production culture of “A lifetime devoted to one craft: Producing finebaijiu” the Company is committed to making the quality of Chinese baijiu visible and setting a quality
benchmark that leads the industry.Third the Company will uphold a value philosophy and remain firmly driven by value creation. The
Company is committed to building an internal and external ecosystem for value co-creation delivering
outstanding returns to shareholders and partners externally and providing a platform for employee
growth internally thereby creating a virtuous cycle of value co-creation and shared outcomes.Fourth the Company will uphold an innovation philosophy and remain firmly committed to innovationgrounded in tradition. By carrying forward the corporate spirit of “daring to be the first striving with joyrespecting people and work and pursuing innovation and excellence” the Company will promote
innovation-driven development across its major systems and continuously strengthen its internal
growth momentum.Fifth the Company will uphold a philosophy of coexistence and remain firmly committed to the
mission of “producing happiness”. By practicing the corporate philosophy of “Baijiu for the World aShared Future” the Company will move forward with society stay in harmony with the environment
and coexist with humanity while continuing to build an ecosystem and platform for coexistence.Building “6” excellent systems
392025 Annual Report of Luzhou Laojiao Co. Ltd.
First the Company will focus on building an excellent system for market expansion and consumption
innovation. It will respond precisely to market demand upgrade its marketing model innovate
consumption scenarios and optimize service experiences.Second the Company will focus on building an excellent system for cultural empowerment and brand
management. It will highlight the core role of culture deepen cultural expression enhance brandvalue and expand brand communication. It will also promote the deeper operation of “dual brandsthree product series and major single products” advance the integrated development of baijiu culture
and tourism and build a “baijiu culture plus” industrial ecosystem. The goal is to establish Luzhou
Laojiao’s position as a cultural leader.Third the Company will focus on building an excellent system for quality production capacity and
supply assurance. It will uphold exceptional quality and organic standards remain committed to pure-
grain solid-state distillation maintain vintage storage and strengthen its production system
underpinned by high-quality capacity. It will adhere to the principle of dynamic and balanced
production build an efficient and agile supply assurance system and become a leader in supply
assurance in the industry.Fourth the Company will focus on building an excellent system for digital and intelligent integration
and efficiency improvement. It will comprehensively develop new quality productive forces driven by
digital and intelligent technologies continue to tackle key challenges in intelligent production
technologies optimize its smart marketing platform and strengthen its digital and intelligent
management hub. It will also unlock the value of data assets promote the management of data
applications and empower key business processes thereby reducing costs while improving
efficiency across the value chain.Fifth the Company will focus on building an excellent system for organizational vitality and talent
development. It will build a battle-ready marketing force cultivate a production team capable of
overcoming tough challenges and develop an administrative team that creates value. The Company
will continue to deepen its nationwide talent deployment and professional talent development and
build an agile value-creating organization with a sound structure lean operations and high efficiency.Sixth the Company will focus on building an excellent system for coordinated industrial development
and ecosystem co-development. It will focus on building a business ecosystem of mutual growth and
shared success deepen co-creative and win-win partnerships strengthen its leading role as the
“chain leader” in the industrial chain fulfill its social responsibilities as a state-owned enterprise and
build sound relationships with local communities governments and the public.
11.3. Completion of the business plan in 2025
In 2025 the Company recorded operating revenue of CNY 25.731 billion down 17.52% year on year
and a net profit attributable to its shareholders of CNY 10.831 billion down 19.61% year on year. This
was mainly because the baijiu industry as a whole entered a new round of adjustment characterizedby lower volume and higher quality reflected in “contracting external demand the pains of internaladjustment and increasingly intense competition”. Under the combined impact of these pressures
baijiu enterprises saw weaker overall growth momentum and pressure on profitability. Going forward
the Company will remain firmly focused on its “ecosystem chain operation strategy”. It will
concentrate on key areas and take targeted actions to ensure a strong start laying a solid foundation
for high-quality development.
402025 Annual Report of Luzhou Laojiao Co. Ltd.
11.4. Business plan in 2026
According to the 2026 Production and Operation Guidelines reviewed and approved by the Board of
Directors the Company will steadfastly implement the “156” development strategy and further
advance the “ecosystem chain operation strategy”. Upholding the general principle of pursuing
progress while ensuring stability the Company will unite its efforts act with pragmatism and
determination and make every effort to win the critical battle in the first year of the strategy. (The
business plan in 2026 is formulated by the Company according to the 15th five-year strategic plan
and based on its business capabilities. It does not represent the Company's profit forecast for 2026
and is not a commitment by the Company. Whether it can be achieved depends on many factors
such as changes in market conditions and efforts of the operation team. There are great uncertainties.Investors are kindly reminded to pay special attention). The main measures are as follows:A. Maintaining the development pace of “pursuing progress efficiency and returns whileensuring stability”
On the marketing front the Company will pursue progress while maintaining stability. On the
basis of stabilizing market pricing and channel margins the Company will make every effort to
stimulate actual consumer consumption expand channel presence and broaden market coverage. It
will advance channel penetration and refined digital and intelligent marketing operations in an orderly
manner to further strengthen its market fundamentals. The Company will also steadily advance its
international presence and explore marketing models tailored to local consumer preferences. On the
support front the Company will pursue efficiency while maintaining stability. It will continue to
promote standardized management lean processes systematic institutional development and digital
and intelligent operations. Through the development of platforms such as business-finance
integration supply chain collaboration and data middle platforms the Company will enable more
efficient resource allocation and more precise decision-making and execution. On the production
front the Company will pursue returns while maintaining stability. Driven by both traditional
capabilities and digital and intelligent technologies the Company will continue to improve lean
production data application capabilities product quality assurance and resource utilization efficiency
further strengthening the quality foundation for high-quality development.B. Advancing the three major initiatives of “brand enhancement cultural empowerment andtalent quality improvement”For brand enhancement the Company will focus on its “dual brands three product series andmajor single products” continuously optimize its product portfolio and enhance product
distinctiveness. It will effectively integrate scarce resources in culture art sports and other fields to
systematically communicate the brand values of “scarcity premium quality fashion and health”
thereby strengthening consumers’ value recognition. For culture empowerment the Company will
center on its corporate culture framework of “Philosophy of Symbiosis” and promote the integration of
cultural concepts into management systems business processes and codes of conduct. Through
cultural training role-model recognition and the sharing of exemplary stories the Company will help
employees internalize the culture and reflect it in their actions. For talent quality improvement the
Company will respond to the needs of its international digital and intelligent and youth-oriented
transformation by accelerating the development of leading technical R&D talent interdisciplinary
professionals and innovative young talent. In doing so it will build a talent system with a sound
structure well-matched capabilities and strong vitality.
412025 Annual Report of Luzhou Laojiao Co. Ltd.C. Achieving three major breakthroughs in “project tackling public relations empowermentand headquarters coordination”
The Company will focus on project tackling and continue to promote the smooth and orderly
implementation of major projects. It will continue to advance the integrated development of baijiu
culture with tourism urban development with tourism and culture with tourism further create baijiu
consumption and experience scenarios and steadily promote the construction of production-related
projects injecting new momentum into quality assurance. The Company will deepen public
relations empowerment and continue to enhance brand awareness and influence. It will
systematically advance market public relations public opinion management and targeted
engagement with key communities. By strengthening multidimensional interaction with well-known
enterprises think tanks organizations media outlets and consumers the Company will convert
public relations momentum into brand trust. The Company will strengthen headquarters
coordination and build a professional and refined service support system. By integrating internal and
external resources it will continue to improve the service support capabilities of its headquarters.
12. Visits paid to the Company for purposes of research
communication interview etc. in the reporting period
□ Applicable □ N/A
Main inquiry
Index to main
information
Date of visit Place of visit Way of visit Type of visitor Visitor inquiry
and materials
information
provided
Conference Industry
March 21 Center of Institutional trends and http://www.cni
Field survey Institution
2025 Huaxi investor company nfo.com.cn/
Securities performance
Communicatio
Company n through an Institutional Company http://www.cni
April 29 2025 Institution
Headquarters online investor performance nfo.com.cn/
platform
Communicatio Industry
Company n through an trends and http://www.cni
May 16 2025 Other All investors
Headquarters online company nfo.com.cn/
platform performance
Institutional Industry
Company and individual trends and http://www.cni
June 27 2025 Field survey Institution
Headquarters investors and company nfo.com.cn/
media performance
Communicatio Industry
September 1 Company n through an Institutional trends and http://www.cni
Institution
2025 Headquarters online investor company nfo.com.cn/
platform performance
Communicatio Industry
September Company n through an trends and http://www.cni
Other All investors
12 2025 Headquarters online company nfo.com.cn/
platform performance
October 31 Company Communicatio Institution Institutional Industry http://www.cni
422025 Annual Report of Luzhou Laojiao Co. Ltd.
2025 Headquarters n through an investor trends and nfo.com.cn/
online company
platform performance
Institutional Industry
December 24 Company and individual trends and http://www.cni
Field survey Institution
2025 Headquarters investors and company nfo.com.cn/
media performance
13. Development and implementation of market value management rules and
valuation enhancement plan
Indicate whether the Company has developed market value management rules.□ Yes □ No
Indicate whether the Company has disclosed its valuation enhancement plan.□ Yes □ No
In order to strengthen the Company's market value management effectively promote the Company to
enhance investment value enhance investor returns and safeguard investor interests in accordance
with the Company Law of the People's Republic of China the Securities Law of the People's Republic
of China the Information Disclosure Management Measures for Listed Companies the Listed
Company Regulatory Guideline No. 10 - Market Value Management and other applicable laws
regulations normative documents and the Company's Articles of Association etc. the Market Value
Management Rules of Luzhou Laojiao Co. Ltd. have been formulated upon approval at the Sixth
Meeting of the11th Board of Directors.
14. Implementation of the action plan for "Dual Enhancement of
Development Quality and Shareholder Returns"
Indicate whether the Company has disclosed its action plan for "Dual Enhancement of Development
Quality and Shareholder Returns".□ Yes □ No
In accordance with the guiding ideology of "further invigorating the capital market and boosting investor
confidence" proposed at the Political Bureau meeting of the CPC Central Committee and "vigorously
improving the quality and investment value of listed companies taking more powerful and effective
measures and focusing on stabilizing the market and confidence" proposed at the State Council
Executive Meeting in order to safeguard the interests of all shareholders boost investor confidence
and promote the long-term healthy and sustainable development of the Company Luzhou Laojiao Co.Ltd. (hereinafter referred to as "the Company") has formulated its action plan for "Dual Enhancement of
Development Quality and Shareholder Returns" in combination with the Company's development
strategy business picture and financial condition. The specific measures are as follows:
432025 Annual Report of Luzhou Laojiao Co. Ltd.
A. Strengthening confidence in strategic planning and aiming at the Company's development
goals
The Company has formulated the "136" strategic plan for the 14th Five-Year Plan based on the
development idea of "giving play to advantages tackling areas of weaknesses improving quality
building strength and seeking rejuvenation". Specifically "1" refers to one development goal namely
firmly insisting on the goal of regaining the "Top 3" ranking among the Chinese baijiu industry; "3" refers
to three major development principles namely insisting on brand leadership and fully enhancing the
value of Chinese famous baijiu brands insisting on taking quality as foundation and sparing no efforts
to build a core production area of world famous baijiu and insisting on taking culture as the foundation
and striving to build a pilgrimage site for Chinese baijiu culture; "6" refers to "Six-in-One" Luzhou
Laojiao namely building a strong-brand Luzhou Laojiao a quality Luzhou Laojiao a cultural Luzhou
Laojiao an innovative Luzhou Laojiao a digital and intelligent Luzhou Laojiao and a harmonious
Luzhou Laojiao. Since the 14th Five-Year Plan period the Company has firmly implemented the "136"
development strategy won key battles such as expanding production capacity upgrading brands and
strengthening teams and has entered a stage of high-quality development. The National Cellar 1573
brand achieved comprehensive coverage in the domestic market and was fully expanding in overseas
markets; the Luzhou Laojiao brand built a strong basis in the granary market and has gained a stable
and penetrating presence in the opportunity market with much good news of the revival of famous
baijiu; the breakthrough project of expanding key sales areas has been deeply promoted market
consumption has been further activated and market share has been further increased. In terms of
digital marketing and brand building channel development and public relations empowerment online
expansion and offline integration and overseas layout and domestic boosting a clearer and more
effective path has been created with the characteristics of Luzhou Laojiao which has made
contributions to the healthy and rapid development of the Company. During the 14th Five-Year Plan
period the compound growth rate of the Company's net profit attributable to the parent company
reached 12.52%. Going forward the Company will continue to steadfastly implement the principle of
"growing as fast as possible on the basis of healthy development" and resolutely "compete" for better
performance while benchmarking against outstanding enterprises in the industry and main competitors
and move towards the established goals prudently and meticulously.B. Deeply promoting technological innovation and strengthening the transformation of scientific
research achievements
In recent years the Company has attached great importance to the development mode of innovation
leading progress integrated innovation forces gathered innovation resources tackled the frontier and
common key technologies of the baijiu industry and promoted the transfer and transformation of
achievements and industry sharing thus promoting the transformation of the baijiu industry from
experience oriented to technological oriented. This has made important contributions to the
technological innovation transformation and upgrading of the baijiu industry in China. First the
Company has successfully established multiple major national-level technological innovation platforms
including the National Engineering Research Centre of Solid-State Distillation the National Industrial
Design Centre and the National Postdoctoral Workstation. The Company has formed a comprehensive
technological innovation platform system with the National Engineering Research Centre of Solid-State
Distillation as the R&D core covering basic R&D talent cultivation and engineering transformation in
multiple fields and has built a highland for technological innovation in the entire industry. Second the
442025 Annual Report of Luzhou Laojiao Co. Ltd.
Company has continuously increased investment in technological innovation research and
development and continuously enhanced its independent innovation capabilities. In the past five years
the total R&D investment reached CNY 1138.8705 million and the compound annual growth rate of
innovation R&D investment reached 6.29%. Third the Company has actively carried out collaborative
innovation between the Company universities and research institutions establishing cooperative
relationships with more than 30 universities and institutions such as Tsinghua University and Shanghai
Jiao Tong University. Through various forms including joint laboratory building joint undertaking of
major projects joint training of talents and establishment of open projects the Company has carried
out extensive technical exchange and cooperation forming a good pattern of diversified cooperation
innovative development and mutual benefit between universities and the Company. Fourth the
Company has attached great importance to the creation and protection of intellectual property rights
and regarded intellectual property building as an important development strategy for the Company. The
number of applications and authorizations for invention and utility model patents has maintained a rapid
growth. Up to now the Company has been granted 304 patents including 93 invention patents and 211
utility models both of which are at the forefront of the industry. In the future the Company will continue
to leverage its advantages in scientific research platforms talent and publicity to comprehensively
consolidate Luzhou Laojiao's leading position in scientific research.C. Highly valuing standardized operations and improving corporate governance level
The Company has continuously consolidated the foundation of corporate governance improved the
corporate governance structure actively studied laws and regulations and the latest regulatory policies
and standardized the Company's management system. The Company has also clearly defined the
responsibilities and authorities of the Board of Directors the Board of Supervisors meetings of
shareholders and the management in decision-making execution and supervision and regulated the
rights and obligations of the Company and shareholders. The Company has vigorously promoted the
systematization standardization and digitalization of corporate governance synchronously enhanced
the information-based level in the Board of Directors the Board of Supervisors and meetings of
shareholders and incorporated the building of the integrated securities business platform into the
"digital and intelligent Luzhou Laojiao" system to continuously improve the level of corporate
governance. In order to further improve the Company's risk management system and ensure that the
directors supervisors and senior management of the Company fully perform their duties within their
scope of responsibilities the Company has actively promoted the purchase of liability insurances for
directors supervisors and senior management. Meanwhile the Company has become the first listed
company in the industry to sign a liability insurance agreement for directors supervisors and senior
management which has been approved by a meeting of shareholders. In the future the Company will
continue to promote information technology building to empower corporate governance continuously
improve operational efficiency and scientific decision-making level.D. Fulfilling the information disclosure obligation compliantly and strictly guarding the defense
line of insider trading
The Company takes standardized information disclosure as the bottom line conducts information
disclosure with high standards and effectively respects and safeguards the legitimate rights and
interests of investors. First the Company has established and improved a management system
centered on major information internal reporting system temporary and periodic report preparation
452025 Annual Report of Luzhou Laojiao Co. Ltd.
procedure insider information management system and other policy documents and continuously
promoted the standardized and procedural business work to ensure accurate and rigorous information
disclosure. Second the Company has adhered to investor demand orientation actively promoted
voluntary information disclosure attached importance to the pertinence readability and effectiveness
of disclosure content and continuously improved the transparency of information disclosure of the
Company. The Company has been awarded the highest A grade in the information disclosure
assessment of listed companies on the Shenzhen Stock Exchange for several consecutive years. In the
future the Company will continuously improve the transparency of information disclosure and
continuously display information on the Company's operations at multiple levels angles and
dimensions.E. Efficiently carrying out investor relations activities and conveying the Company's investment
value
The Company has actively adapted to the needs of investor research and carried out investor
relationship management through a combination of "inviting in" and "going out" models. It has actively
communicated with investors on industry hot topics the Company's business picture and development
strategies through the Shenzhen Stock Exchange investor interaction platform establishment of
investor hotlines improvement of investor relationship websites hosting online collective reception
days and on-site investor surveys. In doing so the Company has conveyed its investment value and
safeguarded investors' right to know. At the same time the Company has adhered to investor demand
orientation. Based on the continuous growth of overseas shareholders in recent years the Company
has innovatively used overseas accounts such as Facebook Twitter and IG to simultaneously publish
the Company's performance promotion shortened the disclosure time interval between Chinese and
English versions and conducted overseas roadshows to ensure the timeliness of information
acquisition for overseas investors. Going forward the Company will continue to build a two-way
communication mechanism for a deep understanding and positive interaction with the capital market to
transmit the Company's value. (Investors are welcome to visit the Company's investor relations website
at https://000568.ir-online.cn/).F. Improving shareholder returns and safeguarding the legitimate rights and interests of
shareholders
The Company adheres to the implementation of an active profit distribution policy attaches importance
to reasonable returns to investors while considering the sustainable development of the Company and
maintains the continuity and stability of profit distribution. The Company clearly stipulates in its Articles
of Association that the Company may distribute dividend in cash or stocks and the dividend should not
be less than 50% of the distributable profit realized for that year and the profit to be distributed in cash
should not be less than 30% of the distributable profit realized for that year. Cumulative dividends since
its listing have reached CNY 60.56 billion representing a high dividend payout ratio of 63.50% (after the
implementation of the 2025 final dividend distribution) ranking among the top among more than 5000
listed companies in the Shanghai and Shenzhen stock markets. This has allowed all shareholders to
fully share the Company's development achievements and effectively maintained the Company's good
image in the capital market. In order to further improve the profit distribution policy establish a
scientific sustained and consistent shareholder return mechanism and enhance investment value the
Company has formulated the 2024-2026 Shareholder Dividend Plan. The Company's annual cash
462025 Annual Report of Luzhou Laojiao Co. Ltd.
dividends shall account for no less than 65% 70% and 75% of the net profit attributable to shareholders
of the listed company in 2024 2025 and 2026 respectively and shall not be less than CNY 8.5 billion.In principle cash dividends can be paid twice a year. Going forward while safeguarding normal
business operations and long-term corporate development the Company will adopt a sound profit
distribution policy to ensure investors duly share in the fruits of its growth.G. Encouraging the controlling shareholder to actively increase its shareholdings to maintain
the stability of the capital market
Based on its recognition of the Company's long-term value and its firm belief in the Company's
development prospects the controlling shareholder of the Company Luzhou Laojiao Group Co. Ltd.increased its holdings in the Company by 1140200 shares in total with its own funds through call
auction trading during the period from December 15 2023 to June 15 2024 with a total amount of
approximately CNY 200.9629 million. In 2025 Laojiao Group increased its shareholdings in the
Company by 2345250 shares with special loans and its own funds through call auction trading
representing a total amount of approximately CNY 299.9973 million.Moving forward the Company will focus on the development theme of “Boosting ConfidenceMaintaining Steady Pace Forging ahead With Concerted Efforts and Pursuing Breakthroughs” actively
take responsibility keep diligent and make solid progress while striving for high-quality development.The Company will also firmly establish a sense of return to shareholders effectively implement the
"dual enhancement of development quality and shareholder returns" action plan significantly enhance
investors' satisfaction and actively contribute to stabilizing the capital market and investor confidence.
472025 Annual Report of Luzhou Laojiao Co. Ltd.
Section IV Governance Environmental and Social Information
1. Basic situation of corporate governance
Since it was listed in accordance with the Corporate Law the Securities Law The Listed Company
Governance Standards and other laws administrative regulations and departmental rules and
normative documents the Company has constantly perfected corporate governance structure
standardized its operation established the rules and system on the basis of the Company's articles of
association whose main framework is the rules of procedure of the shareholders' meeting and rules
of procedure of the board of directors which forms the management system of which the main
structure is the shareholders’ meeting board of directors and management. During the reporting
period in accordance with the relevant arrangements of the China Securities Regulatory Commission
for the implementation of supporting rules under the newly revised Company Law and in compliance
with the requirements set forth in the Implementation Plan for Deepening the Reform of the Board of
Supervisors of State-owned Enterprises issued by the State-owned Assets Supervision and
Administration Commission of the State Council (SASAC) the Company abolished the Board of
Supervisors in accordance with laws and regulations and completed the reform of the Board of
Supervisors.Any incompliance with the applicable laws and administrative regulations as well as regulations
related to the governance of listed companies issued by the CSRC
□ Yes □ No
There is no incompliance with the applicable laws and administrative regulations as well as
regulations related to the governance of listed companies issued by the CSRC.
2. Independency of assets personnel finance organizations and
businesses which are separated from the controlling shareholder and
the actual controller
The Company has an independent and complete production and operation system and independent
decision-making ability. There is no horizontal competition between the Company and the controlling
shareholders and its subsidiaries. The related party transactions arising from routine operation
between the Company and the controlling shareholder and its majority-owned subsidiaries are
resulted from the need of rational allocation of resources and do not affect the independence of the
Company. The Company has strictly fulfilled the relevant decision-making procedures and information
disclosure obligations and implemented the system of non-executive directors' prior examination and
avoidance system of related directors (shareholders).
2.1. In the aspect of assets
Asset integrity. There are clear ownership and independency of the Company's assets invested by
controlling shareholders. The Company has an independent and complete production supply sales
482025 Annual Report of Luzhou Laojiao Co. Ltd.
system and auxiliary production system and supporting facilities. The industrial property rights
trademarks and non-patented technology and other intangible assets are owned by the Company.There is no situation that the controlling shareholders occupy and transfer the assets of the company.
2.2. In the aspect of business
Business separation: The Company is totally independent in the operation production and sales of
baijiu series of “National Cellar 1573” and “Luzhou Laojiao” . It has the ability to operate
independently in the market. The board of directors and the management can independently make
production and operation decisions within the corresponding authority.
2.3. In the aspect of personnel
The Company has established independent labor management personnel management and salary
management. The Company has established a relatively complete labor management system and
post responsibility system. Meanwhile the Company's senior management personnel all receive
salary in the Company but not at the controlling shareholders.
2.4. In the aspect of organization
Organization independence. The Company has independent production management organization
and system independent office and production management place and independent management
organization functional organization and branch.
2.5. In the aspect of finance
Financial independence. The Company has an independent financial and accounting department.Independent accounting system and financial management are established. The Company separately
sets bank accountants conducts external settlement and pays taxes according to law.
3. Horizontal competition
□Applicable □ N/A
4. Directors and senior management
4.1. General information
Shares Shar Shares Other
Shares
held by the es decrea increa Reas
held by the
Incumb beginning incre sed se/ on for
end of the
Name Gender Age Title ent/ Period of service of the ased during decre share
reporting
Former reporting durin the ase chan
period
period g the reportin (shar ges
(share)
(share) report g e)
492025 Annual Report of Luzhou Laojiao Co. Ltd.
ing period
perio (share)
d
(shar
e)
Chairman
Liu June 30 2015 to
Male 56 of the Current 288087 288087
Miao June 27 2027
board
Director
Lin June 30 2015 to
Male 52 General Current 95900 95900
Feng June 27 2027
manager
Director
December 29
Zhang Deputy
Male 54 Current 2015 to June 27 76700 76700
Suyi general
2027
manager
Director
Xiong
Deputy June 29 2021 to
Pingtin Female 50 Current 62800 62800
general June 27 2027
g
manager
Non-
Chen June 29 2021 to
Male 68 executive Current
You’an June 27 2027
director
Non-
Lyu June 29 2021 to
Male 62 executive Current
Xianpei June 27 2027
director
Li Non-
June 29 2022 to
Guowa Male 62 executive Current
June 27 2027
ng director
Li Non-
June 27 2024 to
Liangch Male 51 executive Current
June 27 2027
en director
Non- December 24
Yi Zhi Male 54 executive Current 2025 to June 27
director 2027
Chen Non- December 24
Guoxia Male 63 executive Current 2025 to June 27
ng director 2027
Qian Resign June 30 2015 to
Male 62 Director
Xu ation May 29 2025
September 13
Ying Resign 2016 to
Male 56 Director
Hanjie ation December 4
2025
Xiong June 27 2024 to
Male 49 Director Current
Bo June 27 2027
Tang Deputy December 24
Donglia Male 48 general Current 2024 to June 27
ng manager 2027
Shen Deputy June 30 2002
Caihon Male 60 general Current to June 27 180481 180481
g manager 2027
Xie March 6 2015 to
Female 56 CFO Current 76700 76700
Hong June 27 2027
Deputy
He June 30 2015 to
Male 59 general Current 76700 76700
Cheng June 27 2027
manager
Li Yong Male 49 Deputy Current September 20 62800 62800
502025 Annual Report of Luzhou Laojiao Co. Ltd.
general 2021 to June 27
manager 2027
Secretary
of the
board
Zhao Deputy
August 2 2024
Bingku Male 46 general Current 30000 30000
to June 27 2027
n manager
Total -- -- -- -- -- -- 950168 0 0 950168 --
Whether any director or senior management resigned before the expiry of their periods of service
during the reporting period
□ Yes □ No
During the reporting period Mr. Qian Xu and Mr. Ying Hanjie resigned as directors for personal
reasons on May 29 2025 and December 4 2025 respectively.Changes in directors and senior management
□ Applicable □ N/A
Name Title Type Date Reason
Qian Xu Director Resignation May 29 2025 Personal reasons
Ying Hanjie Director Resignation December 4 2025 Personal reasons
4.2. Employment information
Professional background work experience and major duties of current directors and senior
management.Mr. Liu Miao male born in 1969 MBA of Wright State University in the USA Master of Chinese
Baijiu Distillation professorate senior engineer and senior marketing specialist. He used to serve as
planning minister general manager of Sales Company general manager assistant and deputy
general manager of the Company. At present he is secretary of the party committee and chairman of
the board in Laojiao Group secretary of the party committee and chairman of the board in the
Company as well as chairman of the board in Luzhou Sanrenxuan Liquor Industry Co. Ltd.Mr. Lin Feng male born in 1973 Master degree professorate senior economist senior marketing
specialist. He was deputy general manager and general manager of Sales Company director of
marketing director of human resources chief dispatcher deputy general manager of the Company.At present he is deputy secretary of the party committee director and general manager of the
Company.Mr. Zhang Suyi male born in 1971 PhD professorate senior engineer representative inheritor of
Sichuan Intangible Cultural Heritage. He was a worker production team leader and assistant
superintendent at Distillation Workshop No. 6 vice director and director of Gouchu Center and
deputy chief engineer of the Company as well as deputy general manager and director of the Baijiu
Body Design Centre of Baijiu Production Company. At present he is director deputy general
512025 Annual Report of Luzhou Laojiao Co. Ltd.
manager and director of safety and environmental protection of the Company.Ms. Xiong Pingting female born in 1975 holds a master's degree and the titles of Professorate
Human Resource Management Professional and Political Mentor. Positions previously held by her
include Deputy Director and Director of the Office of Luzhou Laojiao Sales Co. Ltd. Deputy Director
of the Office of Jiangyang District People's Government of Luzhou (temporary) Deputy Director of the
Human Resources Department and Corporate Management Department of Luzhou Laojiao Co. Ltd.General Manager of the Brand Operation Department Director of the Office (concurrently) Secretary
of the general Party branch and Deputy General Manager of Luzhou Laojiao Sales Co. Ltd. At
present she is member of the Party Committee Director Deputy General Manager and Chairman of
the Labor Union of the Company.Mr. Chen You'an male born in 1958 holds an Eng.D. degree in management science and
engineering and is a Senior Engineer. Currently he is Independent Director of Hexie Health
Insurance Co. Ltd. CPIC Fund Management Co. Ltd. and Tech-bank Food Co. Ltd. He has served
as a non-executive director of the Company since June 2021.Mr. Lyu Xianpei male born in 1964 holds a Ph.D. degree in accounting. Positions previously held by
him include Vice Dean at the School of Accounting and Director at the Auditing Department of
Southwestern University of Finance and Economics. Currently he serves as Professor and Doctoral
Supervisor at Southwestern University of Finance and Economics Chairman of Sichuan Society of
Education Audit Director of Sichuan State-owned Assets Operation Puhui Financing Guarantee Co.Ltd. as well as Independent Director of Sichuan Teway Food Group Co. Ltd. and North Chemical
Industries Co. Ltd. He has served as a non-executive director of the Company since June 2021.Mr. Li Guowang male born in 1963 holds a postgraduate degree and is a senior economist. He
once served as the Deputy Director of the Information Center of the Ministry of Commerce Deputy
General Manager of Futures Brokerage Co. Ltd. under China Banking and Insurance Information
Technology Management Co. Ltd. General Manager of the Shanghai Securities Business
Department of China Banking and Insurance Information Technology Management Co. Ltd. Director
of the Strategic Development Department of the R&D Center of China Galaxy Securities Co. Ltd.General Manager of the R&D Center of Shanghai Securities Co. Ltd. Marketing Director of Galaxy
Asset Management Co. Ltd. Director of the Research Institute of Hwa Bao Securities Co. Ltd. Chief
Economist and Director of the Research Institute of Zhongshan Securities Co. Ltd. Chief Economist
of Shanghai Dalu Futures Co. Ltd. and Deputy Director of the Green Finance Committee of the
Jiangsu Financial Association. Currently he is a member of the Association of Zhejiang Talent in
Shanghai. He has served as a non-executive director of the Company since June 2022.Mr. Li Liangchen male born in 1974 MBA. He used to be senior partner of Shanghai AllBright
(Hangzhou) Law Offices lawyer of Beijing Tianyuan (Hangzhou) Law Firm and partner of Beijing
Zhong Lun (Hangzhou) Law Firm. Currently he is partner of Beijing Dentons (Hangzhou) Law Firm
as well as non-executive director of Zhuhai Zhumian Group Co. Ltd. Sijin Intelligent Forming
Machinery Co. Ltd. Ningbo FLK Technology Co. Ltd. (non-listed) and Sichuan Yingfa Ruineng
522025 Annual Report of Luzhou Laojiao Co. Ltd.
Technology Co. Ltd. (non-listed). He has served as a non-executive director of the Company since
June 2024.Mr. Chen Guoxiang male born in 1963 holds a PhD in Science. He previously served as Vice Dean
of the School of Life Sciences at Nanjing Normal University Deputy Director and Director of the
Science and Technology Department of Nanjing Normal University Vice President of Nanjing Normal
University Secretary of the Party Committee and President of Nanjing Sport Institute and President
and Deputy Secretary of the Party Committee of Nanjing Normal University. Currently he is a
Professor at Nanjing Normal University and Director of the Carbon Peak and Carbon Neutralization
Strategy Institute of Jiangsu Province. He has served as a non-executive director of the Company
since December 2025.Mr. Yi Zhi male born in 1971 holds a PhD in Economics and is a postdoctoral fellow of the Institute
of Finance and Trade Economics under the Chinese Academy of Social Sciences. He graduated from
Zhejiang University and Shanghai University of Finance and Economics. He previously served as a
reporter and editor in the Special Topics Department and Deputy Director of the Research
Department of the Shanghai Securities News and an Associate Professor at the School of Finance
Zhejiang Gongshang University. Currently he is a Professor and Doctoral Supervisor at the School of
Finance of Zhejiang University of Finance & Economics a research fellow at the Institute for Public
Policy of Zhejiang University and a non-executive director of UniTTEC Co. Ltd. He has served as a
non-executive director of the Company since December 2025.Mr. Xiong Bo male born in 1976 Master of Public Administration. He used to be deputy chief and
chief of the Policy Regulations and Talent Planning and Development Department of Luzhou
Municipal Human Resources Bureau deputy chief of Secretary Department I of Luzhou Municipal
Government Office deputy director of office and chief of the Procurement Department of Luzhou
Municipal Finance Bureau director of Luzhou Financial Supervision and Inspection Bureau as well
as member of the party committee and deputy director of the State-owned Assets Supervision and
Administration Commission of Luzhou. At present he is party secretary and chairman of the board of
Luzhou State-owned Capital Management Service Co. Ltd. as well as full-time external director of
Laojiao Group Luzhou Development Holding Group Co. Ltd. and Luzhou Development Group Co.Ltd. He has served as a director of the Company since June 2024.Mr. Tang Dongliang male born in 1977 holds a postgraduate degree. He used to be the deputy head
of the People’s Government of Longmatan District Luzhou City; a member of the standing committee
of the Communist Party of China of Jiangyang District Luzhou City and an executive vice mayor of
the people’s government of Jiangyang District; and the deputy secretary of the committee of the
Communist Party of China of Jiangyang District Luzhou City and the mayor of the people’s
government of Jiangyang District. He is now a deputy general manager of the Company.Mr. Shen Caihong Male born in 1966 Master degree professor-level senior engineer one of the
first batch of representative inheritors of national intangible cultural heritage one of the first batch of
“Master of Chinese Baijiu Distillation” and one of the first batch of "Sichuan craftsmen". He was
532025 Annual Report of Luzhou Laojiao Co. Ltd.
manager of the Company’s leaven-making branch manager of base baijiu company general
manager assistant and director of production department. At present he is deputy general manager
chief engineer director of national solid-state distillation engineering technology research center and
chairman of the board of Luzhou Pinchuang Technology Co. Ltd.Ms. Xie Hong female born in 1969 Master degree senior accountant and professorate senior
economist. She was section chief of Treasury Section of the Finance Bureau section chief of Non-tax
Revenue Collection Management Section director of Luzhou Municipal Finance Treasury Payment
Center chief accountant of Luzhou Finance Bureau. At present she is a member of the party
committee and CFO of the Company.Mr. He Cheng male born in 1966 Master of Management Economics of Nanyang Technological
University senior engineer expert who receives special allowances from the State Council Master of
Chinese Baijiu and Master of Chinese Baijiu Distillation. He was chief dispatcher of the Company
general manager of Baijiu Production Company as well as director of the business administration
department director of the human resources department director of the quality department and
director of the dispatching center of the Company. At present he is a member of the party committee
deputy general manager chief quality officer and director of food safety of the Company.Mr. Li Yong male born in 1977 holds a postgraduate degree and is a distillation engineer. He once
worked in the education sector at the Party and government organizations at the township level as
well as departments at the county and municipal levels. Also he used to be Director of the Group
Office of Luzhou Laojiao Group Director of the General Manager’s Office of the Company as well as
Deputy Secretary of the Party Committee Secretary of the Discipline Inspection Committee and
Deputy General Manager of Sales Company. Currently he is Deputy General Manager Secretary of
the Board and member of the Discipline Inspection Committee of the Company as well as Chairman
of the Board of Luzhou Laojiao Technology Innovation Co. Ltd.Mr. Zhao Bingkun male born in 1979 holds a university degree and is Senior Professional Engineer
and Level 1 Baijiu Taster. He used to be head of office and deputy general manager of Baijiu
Production Company deputy head (temporary) of the People's Government of Longmatan District
Luzhou City and general manager of the Packaging Materials Sourcing Centre of the Company. At
present he is deputy general manager of the Company.Whether the controlling shareholder or actual controller concurrently serves as the chairman of the
board or general manager of the Company
□ Applicable □ N/A
Position in shareholder-holding companies
□ Applicable □ N/A
Name of Position in Beginning date Ending date of Any
Name shareholder- shareholder- of term term remunerations
holding holding received from
542025 Annual Report of Luzhou Laojiao Co. Ltd.
companies companies shareholder-
holding
companies
Secretary of the
party committee
Liu Miao Laojiao Group 11 March 2022 No
Chairman of the
board
Full-time external
Xiong Bo Laojiao Group July 5 2023 No
director
Position in other companies
□ Applicable □ N/A
Any
Name of other Position in other Beginning date Ending date of remunerations
Name
companies companies of term term received from
other companies
Luzhou
Sanrenxuan Chairman of the
Liu Miao No
Liquor Industry board
Co. Ltd.Hexie Health
Insurance Co.Ltd. CPIC Fund
Non-executive
Chen You’an Management
director
Co. Ltd. and
Tech-bank Food
Co. Ltd.Southwestern
University of
Lyu Xianpei Professor
Finance and
Economics
Sichuan Society
Lyu Xianpei of Education Chairman
Audit
Sichuan State-
owned Assets
Operation Puhui
Lyu Xianpei Director
Financing
Guarantee Co.Ltd.Sichuan Teway
Food Group Co.Ltd. and North Non-executive
Lyu Xianpei
Chemical director
Industries Co.Ltd.Association of
Li Guowang Zhejiang Talent Director
in Shanghai
Beijing Dentons
Li Liangchen (Hangzhou) Law Partner
Firm
Zhuhai Zhumian
Non-executive
Li Liangchen Group Co. Ltd.director
Sijin Intelligent
552025 Annual Report of Luzhou Laojiao Co. Ltd.
Forming
Machinery Co.Ltd. Ningbo FLK
Technology Co.Ltd. (non-listed)
and Sichuan
Yingfa Ruineng
Technology Co.Ltd. (non-listed)
Luzhou State-
Party secretary
owned Capital
Xiong Bo chairman of the Yes
Management
board
Service Co. Ltd.Luzhou
Development
Holding Group
Full-time external
Xiong Bo Co. Ltd. and
director
Luzhou
Development
Group Co. Ltd.Nanjing Normal
Chen Guoxiang Professor
University
Carbon Peak
and Carbon
Neutralization
Chen Guoxiang Director
Strategy Institute
of Jiangsu
Province
School of
Finance of
Zhejiang
Yi Zhi Professor
University of
Finance &
Economics
Institute for
Public Policy of
Yi Zhi Research fellow
Zhejiang
University
UniTTEC Co. Non-executive
Yi Zhi
Ltd. director
Punishments imposed in the recent three years by the securities regulators on the incumbent
directors and senior management as well as those who left in the reporting period
□ Applicable □ N/A
4.3. Remuneration of directors and senior management
The following describes the decision-making procedures grounds on which decisions are made and
actual remuneration payment of directors and senior management.Decision-making procedures for directors and senior management: The remuneration of non-
executive directors and external directors shall be determined by the meeting of shareholders; and
562025 Annual Report of Luzhou Laojiao Co. Ltd.
the remuneration of directors and senior management who hold positions within the Company shall
be determined by relevant rules of SASAC of Luzhou and the Appraisal and Management Measures
for Remunerations of the Management reviewed and approved by the Company’s meeting of
shareholders.Grounds on which decisions are made of directors and senior management: Calculate according to
the Appraisal and Management Measures for Remunerations of the Management.Actual remuneration payment of directors and senior management: Details refer to “Remuneration ofdirectors and senior management during the reporting period”.Remuneration of directors and senior management during the reporting period
Unit: CNY 10000
Total before-
Remuneration
tax
Incumbent/ from related
Name Gender Age Title remuneration
Former parties of the
from the
Company
Company
Chairman of
Liu Miao Male 56 Current 118.43 No
the board
Director
Lin Feng Male 52 General Current 117.41 No
manager
Director
Deputy
Zhang Suyi Male 54 Current 93.93 No
general
manager
Director
Deputy
Xiong Pingting Female 50 Current 93.3 No
general
manager
Non-executive
Chen You’an Male 68 Current 9.52 No
director
Non-executive
Lyu Xianpei Male 62 Current 9.52 No
director
Non-executive
Li Guowang Male 62 Current 9.52 No
director
Non-executive
Li Liangchen Male 51 Current 9.52 No
director
Non-executive
Yi Zhi Male 54 Current 0 No
director
Chen Non-executive
Male 63 Current 0 No
Guoxiang director
Qian Xu Male 62 Director Resignation 1.59 No
Ying Hanjie Male 56 Director Resignation 0 No
Xiong Bo Male 49 Director Current 0 Yes
Deputy
Tang
Male 48 general Current 65.12 No
Dongliang
manager
Deputy
Shen Caihong Male 60 Current 94.64 No
general
572025 Annual Report of Luzhou Laojiao Co. Ltd.
manager
Xie Hong Female 56 CFO Current 95.2 No
Deputy
He Cheng Male 59 general Current 93.99 No
manager
Deputy
general
Li Yong Male 49 manager Current 93.21 No
Secretary of
the board
Deputy
Zhao Bingkun Male 46 general Current 92.74 No
manager
Total -- -- -- -- 997.64 --
Performance appraisal basis for the actual remuneration Applicable national policies and the Appraisal and
received by all directors and senior management at the Management Measures for Remunerations of the
end of the reporting period Management of Luzhou Laojiao Co. Ltd.Performance appraisal for the actual remuneration
The appraisals were completed in accordance with
received by all directors and senior management at the
applicable rules.end of the reporting period
Deferred payment arrangements for the actual
remuneration received by all directors and senior None
management at the end of the reporting period
Payment termination and recovery of the actual
remuneration received by all directors and senior None
management at the end of the reporting period
Other information
□ Applicable □ N/A
5. Performance of directors during the reporting period
5.1. Attendance of directors in board meeting and meeting of shareholders
Attendance of director in board meeting and meeting of shareholders
Attendance Attendance Attendance
Attendance Absence for
due in the Attendance by at meeting
through a Absence two
Director reporting on site telecommun of
proxy (times) consecutive
period (times) ication shareholder
(times) times
(times) (times) s (times)
Liu Miao 13 2 11 No 3
Lin Feng 13 0 11 2 No 3
Zhang Suyi 13 2 11 No 1
Xiong
13 2 11 No 2
Pingting
Chen
13 2 11 No 3
You’an
Lyu Xianpei 13 2 11 No 3
582025 Annual Report of Luzhou Laojiao Co. Ltd.
Li Guowang 13 1 11 1 No 3
Li
13 2 11 No 3
Liangchen
Qian Xu 4 1 3 No 0
Ying Hanjie 12 2 10 No 0
Xiong Bo 13 2 11 No 2
Chen
1 1 No 1
Guoxiang
Yi Zhi 1 1 No 1
Notes to absence for two consecutive times
5.2. Objections from directors in related issues of the Company
Were there any objections on related issues of the Company from director
□ Yes □ No
Directors have no objection on related issues of the Company during the reporting period.
5.3. Other details about the performance of duties by directors
Was there any advice from directors adopted by the Company
□ Yes □ No
Explanation about whether the advice of directors was adopted by the Company
The Company adopted the advice of non-executive directors in respect of external investments rules
improvement and internal control construction.
6. Activities of special committees under the Board of Directors during
the reporting period
Substantial
Number of Details of
Convened opinion and Other
Committee Members meetings Topics objections
date recommen information
convened (if any)
dations
1. The Proposal on the
Satisfaction of Unlocking
Conditions for the First Approved
Unlocking Period of the to be
Chen
The Reserved Restricted Shares submitted
You’an Li
Remuneration January under the 2021 Restricted Share to the
Guowang 3
and Appraisal 17 2025 Incentive Plan Board of
and Ying
Committee 2. The Proposal on the Directors
Hanjie
Satisfaction of Unlocking for further
Conditions for the Second review
Unlocking Period of the 2021
Restricted Share Incentive Plan
592025 Annual Report of Luzhou Laojiao Co. Ltd.
1. The Proposal on the
Satisfaction of Unlocking
Conditions for the Second Approved
Unlocking Period of the to be
Reserved Restricted Shares submitted
September under the 2021 Restricted Share to the
8 2025 Incentive Plan Board of
2. The Proposal on the Directors
Repurchase and Retirement of for further
Certain Restricted Shares and review
the Adjustment of Repurchase
Price
Approved
to be
submitted
The Proposal on Reviewing the
November to the
Remunerations of the
24 2025 Board of
Management for 2024
Directors
for further
review
1. The Proposal on Reviewing Approved
Li the Qualification of Mr. Yi Zhi as to be
Liangchen Candidate for Non-Executive submitted
The
Lyu November Director to the
Nomination 1
Xianpei 27 2025 2. The Proposal on Reviewing Board of
Committee
and Xiong the Qualification of Mr. Chen Directors
Pingting Guoxiang as Candidate for Non- for further
Executive Director review
1. The 2024 Annual Financial
Report
2. The 2024 Internal Control
Self-assessment Report
3. The Summary Report on the
2024 Annual Audit
Approved
4. The Report on the
to be
Lyu Assessment and Performance of
submitted
Xianpei Supervisory Responsibilities of
The Audit April 14 to the
Chen 1 the Audit Committee of the
Committee 2025 Board of
You’an and Board of Directors on the
Directors
Qian Xu Performance of the Accounting
for further
Firm in 2024
review
5. The Work Plan for the 2025
Internal Audit
6. The Proposal on the Re-
appointment of the Accounting
Firm
7. The Q1 2025 Report
Approved
to be
1. The Proposal on the 2025 submitted
Lyu August 18 Interim Financial Report to the
Xianpei 2025 2. The 2025 Interim Audit Work Board of
The Audit
Chen 2 Report Directors
Committee
You’an and for further
Li Guowang review
1. The Audit Work Report for Approved
October
Q1-Q3 2025 to be
232025
2. The Q3 2025 Report submitted
602025 Annual Report of Luzhou Laojiao Co. Ltd.
to the
Board of
Directors
for further
review
Approved
to be
submitted
The 2024 Environmental Social
April 14 to the
and Governance (ESG) Report
2025 Board of
of Luzhou Laojiao Co. Ltd.Directors
for further
review
Approved
to be
submitted
The Proposal on the De-
May 23 to the
registration of Luzhou Laojiao
2025 Board of
Electronic Commerce Co. Ltd.Directors
for further
review
Approved
to be
Liu Miao submitted
The Strategy The Proposal on the Investment
Lin Feng August 18 to the
and ESG 5 and Wealth Management with
and Zhang 2025 Board of
Committee Own Funds
Suyi Directors
for further
review
Approved
to be
The Proposal on the Investment
submitted
in and Construction of the
September to the
Luzhou Laojiao Historical and
30 2025 Board of
Cultural Industrial Park & China
Directors
Baijiu Museum (Sichuan) Project
for further
review
Approved
to be
The Proposal on the De- submitted
December registration of Investee CTS to the
22 2025 Luzhou Laojiao Cultural Tourism Board of
Development Co. Ltd. Directors
for further
review
7. Performance of duties by the Audit Committee
Whether there were any risks to the Company identified by the Audit Committee when performing its
duties during the reporting period
□ Yes □ No
The Audit Committee has no objection during the reporting period.
612025 Annual Report of Luzhou Laojiao Co. Ltd.
8. Staff in the Company
8.1. Number functions and educational backgrounds of the staff
Number of in-service staff of the parent company at the
1298
end of the reporting period
Number of in-service staff of main subsidiaries at the end
2614
of the reporting period
Total number of in-service staff at the end of the reporting
3912
period
Total number of staff with remuneration in the period 3912
Number of retirees to whom the Company or its main
895
subsidiaries need to pay retirement pension
Functions
Function by category Number of staff
Production staff 1315
Sales staff 893
R&D staff 963
Financial staff 100
Administrative staff 641
Total 3912
Educational backgrounds
Educational background by category Number of staff
Senior high school and below 399
Junior college 667
Bachelor 2122
Master 702
Doctor 22
Total 3912
8.2. Staff remuneration policy
In 2025 the Company implemented the distribution policy of "sharing benefits paying for losses
classification and setting and long-term policy effects" continuously strengthened the digital
assessment linked individual performance with organizational performance and highlighted the
distribution according to performance. The Company implemented the post rating wage system and
strengthened the performance management of all employees. According to the following principles:
Link individual performance with organizational performance: The increase of wages is linked to the
increase of the Company's operating performance and profit growth; Under the same caliber the
proportion of increase in salaries shall not exceed the proportion of increase in performance and profit
growth.Salary and its changes based on position ability and performance: The salary of employee shall be
determined by position and the depth of their expertise. The salary shall be adjusted accordingly
622025 Annual Report of Luzhou Laojiao Co. Ltd.
when the position ability and performance change.Performance orientation bonus and forfeit: Performance assessment is conducted according to the
actual contributions of employees and the salary distribution is inclined to the employees with
excellent performance.The principle of equal wage negotiation: Abide by the principles that both sides of labor and capital
agree in collective negotiation so as to realize the unity of benefit and fairness.
8.3. Staff training plans
In 2025 the Company continued to promote the improvement of talent capabilities and qualities
optimize the targeted talent development program according to the career development stages of
employees and achieve precise talent development in different levels and grades. At the same time
targeted at different professional lines the Company horizontally designed "Elite Program" training
and strove to create a large number of elite employees who would be rooted in various fields.Sail Program: The "Sail Program" training was conducted for new employees. The implemented
training involved four stages: general ability training marketing practical training business capability
enhancement training and career planning. The purpose of this program is to enhance new
employees' understanding and recognition of the Company's core values and familiarize them with
the Company's production and operation so that they can settle in well.Dive Program: The “Dive Program” is designed for general employees. With the focus on introductory
courses such as corporate culture and what employees should know and be able to do office skills
professional ethics etc. the purpose of this program is to strengthen what employees should know
and be able to do enhance the accumulation of professional knowledge improve employees’
competence and improve work performance.Speed Navigation Program: This program is aimed at grassroots backbones focusing on improving
work efficiency solving complex problems communication reporting and horizontal collaboration etc.Adopting a model of online learning map plus offline empowerment this program aims to consolidate
professional knowledge and skills expand general qualities and capabilities enhance professional
problem-solving capabilities improve employees’ competence and improve work performance.Voyage Program: The “Voyage Program” training was conducted for key personnel with a systematic
design of three-year development plans and a focus on three themes including “self-management”
“work management” and “interpersonal management”. The purpose was to optimize employees’
knowledge structure improve their professional capabilities and enhance their strategic
understanding and abilities of work and team management.Steering Program: The “Steering Program” training was conducted for middle-level management
632025 Annual Report of Luzhou Laojiao Co. Ltd.
personnel and department experts and focused on the development of all employees and newly
promoted middle-level management personnel in the form of online and offline trainings combined as
well as “coming in” and “going out” combined. Through the learning of advanced management
concepts and practices the training aimed to drive employees to broaden their mind expand their
vision strengthen their leadership skills and enhance their level of corporate management.Elite Program: Targeting employees from different professional lines of the Company the Company
focused on training programs for digital human resources administration and other professional
lines. Model learning external training and introduction of teaching staff were employed to improve
the professional level of employees.In addition in terms of technical talent training in combination with the relevant provincial and
municipal policies and the Company’s strategic needs of talent development the Companystrengthens study on skilled worker development policies fully promotes the “New Eight Grades ofEmployees” obtains qualification accreditation credentials for electricians and fitters and
continuously carries out external and independent professional title evaluation skill certification
selection of outstanding employees etc. Meanwhile it continues to deepen the "Laojiao Skilled
Worker Action" a special task for reforming the building of the industrial workforce and strengthen
the training appraisal and incentives for industrial workers.
8.4. Labor outsourcing
□ Applicable □ N/A
9. Profit distribution and converting capital reserves into share capital
Formulation execution or adjustments of profit distribution policy especially cash dividend policy in
the reporting period.□ Applicable □ N/A
A. According to the 2024 Interim Dividend Plan approved at the First Extraordinary Meeting of
Shareholders in 2025 based on its total 1471951503 shares the Company distributed a cash
dividend of CNY 13.58 (tax inclusive) per 10 shares to all shareholders. The distribution plan was
implemented on January 24 2025.B. According to the 2024 Final Dividend Plan approved at the 2024 Annual Meeting of Shareholders
based on its total 1471951503 shares the Company distributed a cash dividend of CNY 45.92 (tax
inclusive) per 10 shares to all shareholders. The distribution plan was implemented on August 8
2025.
A special statement of the policy of cash dividends
Whether it meets the requirements of the articles Yes
642025 Annual Report of Luzhou Laojiao Co. Ltd.
of corporation or the resolution of a meeting of
shareholders:
Whether the standard and proportion of dividends
are clear: Yes
Whether the relevant decision-making process and
systems are complete: Yes
Whether non-executive directors perform their
duties and play their due role: Yes
If the Company has no dividend plan it should
disclose the specific reasons and the next steps it N/A
intends to take to enhance investor returns
Whether the minority shareholders have the
opportunity to fully express their opinions and
appeals and whether their legitimate rights and Yes
interests have been adequately protected:
Whether the conditions and procedures are
compliant and transparent and whether the cash N/A
dividend policy is adjusted or changed:
The Company made a profit in the reporting period and the profit distributable to shareholders of the
Company was positive but it did not put forward a preliminary plan for cash dividend distribution to
shareholders.□ Applicable □ N/A
Preliminary plan for profit distribution and converting capital reserves into share capital for the
reporting period
□ Applicable □ N/A
Bonus shares for every 10 shares (share) 0
Dividends for every 10 shares (CNY) (tax included) 44.17
Total shares as the basis for the preliminary plan for profit
1471941963
distribution (share)
Total cash dividends (CNY) (tax included) 6501567650.57
Cash dividends in other forms (e.g. repurchase share) 0.00
Total cash dividends (CNY) (including other forms) 6501567650.57
Distributable profit (CNY) 31070237008.89
Percentage of cash dividends in the total distributed profit
100%
(including other forms)
Information of the cash dividends
The development stage of the Company is mature and the Company has no major fund expenditure arrangement.When the profit distribution is carried out the proportion of cash dividends in this profit distribution should at least
reach 80%.Details of preliminary plan for profit distribution and converting capital reserves into share capital
On January 30 2026 based on its total existing share capital of 1471941963 shares the Company carried out the
2025 interim dividend payout of CNY 13.58 (tax inclusive) for every 10 existing shares held totaling CNY
1998897185.75 (tax inclusive). If the said profit distribution plan is approved at a meeting of shareholders the total
cash dividend payout for 2025 would be CNY 8500464836.32 (tax inclusive) accounting for approximately 78.48%
of the net profits attributable to shareholders of the Company in 2025.
652025 Annual Report of Luzhou Laojiao Co. Ltd.
10. Implementation of any equity incentive plan employee stock
ownership plan or other incentive measures for employees
□ Applicable □ N/A
10.1. Equity incentives
A. On September 26 2021 relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co. Ltd. were reviewed and 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 December 2 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 December 24 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 December 29 2021 the relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co. Ltd. were reviewed and approved at the
First Extraordinary 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 December 29 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 February 21 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 February 22 2022.G. On July 25 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
662025 Annual Report of Luzhou Laojiao Co. Ltd.
matter.H. On August 5 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 September 2 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 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 September 3 2022 the Company disclosed the Announcement on the Repurchase and
Retirement of Certain 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 September 26 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 awardees the grant price was CNY 89.466 per share and the listing date was
September 28 2022.L. On November 29 2022 the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. The Company proposed to repurchase and
cancel a total of 62310 restricted shares granted but not lifted from restricted sales. As at November 29
2022 the Company completed the aforementioned repurchase and retirement of restricted shares.
M. On December 29 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 January 13 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 February 16 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
672025 Annual 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 awardees the grant price was CNY 89.466 per share and the listing date was February
172023.
P. On January 23 2024 the Company held the 38th Meeting of the 10th Board of Directors and the
20th 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 Satisfaction of Unlocking Conditions for the First Unlocking Period of the 2021 Restricted Share
Incentive Plan were reviewed and approved respectively. The Company's Board of Supervisors issued
a review opinion and the law firm and the independent financial advisor issued a legal opinion and the
independent financial advisor’s report respectively.Q. On February 22 2024 the Company disclosed the Reminder Announcement on Unlocked Shares in
the First Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public Trading.As such the unlocked restricted shares in the first unlocking period of the 2021 Restricted Share
Incentive Plan were allowed for public trading on February 22 2024.R. On June 4 2024 the Proposal on the Repurchase and Retirement of Certain Restricted Shares was
reviewed and approved at the 40th Meeting of the 10th Board of Directors and the 22nd Meeting of the
Board of Supervisors respectively. On June 5 the Company disclosed the Announcement on the
Repurchase and Retirement of Certain 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.S. On August 14 2024 the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at August 14 2024 the Company
completed the repurchase and retirement of 21266 restricted shares.T. On September 23 2024 the Company held the Fourth Meeting of the 11th Board of Directors and
the Third Meeting of the 11th Board of Supervisors at which the Proposal on the Satisfaction of
Unlocking Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021
Restricted Share Incentive Plan and the Proposal on the Repurchase and Retirement of Certain
Restricted Shares and the Adjustment of Repurchase Price were reviewed and approved respectively.The Company's Board of Supervisors issued a review opinion and the law firm issued a legal opinion.U. On September 28 2024 the Company disclosed the Reminder Announcement on Unlocked Shares
in the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted Share
Incentive Plan Being Allowed for Public Trading. As such the unlocked restricted shares in the first
unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan were
allowed for public trading on October 9 2024.V. On December 18 2024 the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at December 18 2024 the Company
completed the repurchase and retirement of 15000 restricted shares.
682025 Annual Report of Luzhou Laojiao Co. Ltd.
W. On January 21 2025 the Company held the Eighth Meeting of the 11th Board of Directors and the
Sixth Meeting of the 11th Board of Supervisors at which the Proposal on the Satisfaction of Unlocking
Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted
Share Incentive Plan and the Proposal on the Satisfaction of Unlocking Conditions for the Second
Unlocking Period of the 2021 Restricted Share Incentive Plan were reviewed and approved respectively.X. On February 14 2025 the Company disclosed the Reminder Announcement on Unlocked Shares in
the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted Share
Incentive Plan Being Allowed for Public Trading. As such the unlocked restricted shares in the first
unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan were
allowed for public trading on February 17 2025.Y. On February 21 2025 the Company disclosed the Reminder Announcement on Unlocked Shares in
the Second Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public
Trading. As such the unlocked restricted shares in the second unlocking period of the 2021 Restricted
Share Incentive Plan were allowed for public trading on February 24 2025.Z. On September 16 2025 the Company held the 15th Meeting of the 11th Board of Directors at which
the Proposal on the Satisfaction of Unlocking Conditions for the Second Unlocking Period of the
Reserved Restricted Shares under the 2021 Restricted Share Incentive Plan and the Proposal on the
Repurchase and Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price
were reviewed and approved. On September 17 the Company disclosed the Announcement on the
Repurchase and Retirement of Certain 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.AA. On September 26 2025 the Company disclosed the Reminder Announcement on Unlocked
Shares in the Second Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted
Share Incentive Plan Being Allowed for Public Trading. As such the unlocked restricted shares in the
second unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive
Plan were allowed for public trading on September 29 2025.BB. On November 22 2025 the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at November 22 2025 the Company
completed the repurchase and retirement of 9540 restricted shares.CC. On February 4 2025 the Company held the 21st Meeting of the 11th Board of Directors at which
the Proposal on the Satisfaction of Unlocking Conditions for the Second Unlocking Period of the
Reserved Restricted Shares under the 2021 Restricted Share Incentive Plan and the Proposal on the
Satisfaction of Unlocking Conditions for the Third Unlocking Period of the 2021 Restricted Share
Incentive Plan were reviewed and approved.DD. On February 13 2026 the Company disclosed the Reminder Announcement on Unlocked Shares
692025 Annual Report of Luzhou Laojiao Co. Ltd.
in the Third Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public
Trading. As such the unlocked restricted shares in the third unlocking period of the 2021 Restricted
Share Incentive Plan were allowed for public trading on February 24 2026.Equity incentives for directors and senior management
□ Applicable □ N/A
Unit: share
Exerci
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price Restric
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title ing of reporti ed end of
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reporti reporti reporti the reporti the ng reporti
reporti period (CNY/ reporti
ng ng ng reporti ng reporti period ng
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period period period ng period ng period
period share) period
period period
(CNY /
share)
Chair
Liu man of
575402877092.7128770
Miao the
board
Direct
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Lin Gener
575402877092.7128770
Feng al
manag
er
Deput
y
Shen
genera
Caiho 46020 23010 92.71 23010
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ng
manag
er
Xie
CFO 46020 23010 92.71 23010
Hong
Deput
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He genera
460202301092.7123010
Cheng l
manag
er
Direct
or
Deput
Zhang y
460202301092.7123010
Suyi genera
l
manag
er
702025 Annual Report of Luzhou Laojiao Co. Ltd.
Direct
or
Deput
Xiong
y
Pingtin 37680 18840 92.71 18840
genera
g
l
manag
er
Deput
y
genera
l
Li manag
376801884092.7118840
Yong er
Secret
ary of
the
board
Deput
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Zhao
genera
Bingku 18000 9000 92.71 9000
l
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manag
er
392521962619626
Total -- 0 0 0 0 -- 0 -- 0 --
000
Appraisal mechanism and incentives for senior management
For details please refer to the 2021 Restricted Share Incentive Plan (Draft) and Summary of Luzhou
Laojiao Co. Ltd. the Performance Appraisal Methods for the 2021 Restricted Share Incentive Plan of
Luzhou Laojiao Co. Ltd. and the Management Methods for the 2021 Restricted Share Incentive Plan
of Luzhou Laojiao Co. Ltd. which have been disclosed by the Company on www.cninfo.com.cn on
September 26 2021.
10.2. Implementation of employee stock ownership plans
□ Applicable □ N/A
10.3. Other incentive measures for employees
□ Applicable □ N/A
712025 Annual Report of Luzhou Laojiao Co. Ltd.
11. Establishment and implementation of the internal control system
during the reporting period
11.1. Establishment and implementation of the internal control system
During the reporting period in accordance with the Basic Rules for Internal Control of Enterprises
relevant laws administrative regulations normative documents and other regulatory requirements
concerning internal control as well as the reality of the Company the Company consistently improved
and optimized its internal control systems and established a well-developed system that covered the
corporate governance administrative management operations management financial management
human resources production guarantee and safety and environmental protection. Additionally it
strengthened the implementation supervision inspection feedback and improvement of the internal
control systems in the operations management to ensure that each internal control system is
reasonable complete and effective thereby promoting the sound sustainable development of the
Company.
11.2. Material internal control deficiencies found in the reporting period
□ Yes □ No
12. The Company’s management and control of subsidiaries during the
reporting period
Company name Consolidation Consolidation
Problems Solution Subsequent
plan progress arising in Solutions taken implementationconsolidation progress solutions
N/A
Anomalies found in the management and control of subsidiaries
□ Yes □ No
13. Internal control assessment report and auditor report
13.1. Internal control assessment report
Disclosure date of the internal control
assessment report April 29 2026
Disclosure index of the internal control
assessment report 2025 Internal Control Assessment Report (http://www.cninfo.com.cn/)
Ratio of the total assets of the
appraised entities to the consolidated 90.00%
total assets
Ratio of the operating revenues of the 90.00%
appraised entitles to the consolidated
722025 Annual Report of Luzhou Laojiao Co. Ltd.
operating revenue
Deficiencies identification standard
Type Financial report Non-financial report
Material deficiencies：（1）violate
Material deficiencies：（1）Correction national regulations and laws；（2）
of material errors in financial reports that The Company’s decision-making
have been announced (except procedures are unscientific；if there
retroactive adjustment of previous years is a decision-making misplay it will
due to changes in policies or other result in significant deal failure; （3）
objective factors)；（2）Material The substantial loss of managerial or
Qualitative standard misstatement of current financial report technical staff；（4）Important
which was unrecognized but found by business lacks system control or
the auditor；（3） Corrupt transaction system failure important economic
of senior management；（4）Audit business has internal control system
committee and internal audit department guidance but with no effective
are not effective in the internal control operation；（5）material
supervision . deficiencies of internal control cannot
be rectified in time.
1. Material deficiencies：Misstatement ≥
5% of total profits；Misstatement ≥ 1%
of total assets；Misstatement ≥ 5% of
total operating revenue；Misstatement
≥5% of owner's equity
2. Significant deficiencies：3% of gross
profits≤Misstatement<5% of gross
profits；0.5% of total 1. Material deficiencies：loss≥5% of
assets≤Misstatement<1% of total net profits.Quantitative standard assets；3% of total operating
2. Significant deficiencies：3% of net
revenue≤Misstatement<5% of total profits≤ loss＜5% of net profits.operating revenue；3% of owner's 3. General deficiencies：loss＜3% of
equity≤Misstatement<5% of owner's net profits
equity.
3. General deficiencies：
Misstatement<3% of gross profits；
Misstatement<0.5% of total assets；
Misstatement<3% of total operating
revenue；Misstatement<3% of owner's
equity.Number of financial-report material
deficiencies 0
Number of non-financial-report material
deficiencies 0
Number of significant financial-report
related deficiencies 0
Number of significant Non-financial-
report related deficiencies 0
13.2. Internal control auditor report
□ Applicable □ N/A
Deliberation opinion section in the internal control audit report
Luzhou Laojiao Co. Ltd. maintained in all material respects effective internal control over financial reporting as of
December 31 2025 based on the Basic Rules on Enterprise Internal Control and other applicable regulations.Disclosure of internal control audit report Disclosed
Disclosure date of the internal control audit report April 29 2026
732025 Annual Report of Luzhou Laojiao Co. Ltd.
2025 Internal Control Auditor Report
Disclosure index of the internal control audit report
(http://www.cninfo.com.cn/)
Type of the audit’s opinion Standard unqualified opinion
Significant deficiencies found in the non-financial report No
The accounting firm issued the internal control audit report of non-standard opinions
□ Yes □ No
Whether the internal control audit report issued by the accounting firm is consistent with the self-
assessment report issued by the board of directors.□ Yes □ No
Whether the Company was issued any modified opinion by the independent auditor on its internal
control for the reporting period or last year
□ Yes □ No
14. Remediation of Problems Identified by Self-inspection in the Special
Campaign on Listed Company Governance
None.
15. Environmental information disclosure
Whether the listed company or any of its major subsidiaries is included in the list of companies that
are required by law to disclose environmental information.□ Yes □ No
Number of companies included in the list of companies that are required by
law to disclose environmental information
Index to the report on required
No. Company
environmental information
https://tftb.sczwfw.gov.cn:8085/jmope
npub/jmopen_files/webapp/html5/qyh
1 Luzhou Laojiao Co. Ltd.
jxxyfpl/index.html#/fillIn/now-
fill/year/ndbg
16. Social responsibility
See the 2025 Environmental Social and Governance (ESG) Report disclosed on the same day with
this Annual Report.
742025 Annual Report of Luzhou Laojiao Co. Ltd.
17. Efforts in poverty alleviation and rural revitalization
In 2025 under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a
New Era the Company upheld its corporate philosophy of “Baijiu for the World a Shared Future”.Following the principle of “what society needs is what the enterprise can provide” the Company
focused on foundational assistance for Hongyuan County and targeted assistance for Guntang
Village in Hongyuan County Xiangtian Village in Gulin County and Hongdongqiao Village and
Baiyang Village in Xuyong County. It advanced assistance initiatives in a systematic manner striving
to further strengthen the foundations invigorate industries and improve living conditions in the
assisted areas thereby demonstrating the mission and responsibility of a state-owned enterprise in
the comprehensive advancement of rural revitalization.
17.1. Key rural revitalization work and results in 2025In 2025 the Company adhered to a working mechanism featuring “Party Committee leadership leadresponsibility by relevant departments multi-party coordination and dedicated implementation”. It
reinforced assistance responsibilities carried out systematic planning and targeted measures and
focused on key areas including industrial assistance talent assistance livelihood assistance
organizational assistance and cultural assistance. During the year the Company invested a total of
CNY 13.3762 million in assistance funds and implemented various high-quality assistance projects
effectively consolidating the achievements in poverty alleviation and injecting strong momentum into
rural revitalization.A. Strengthen organizational leadership and reinforce assistance responsibilities
The Company has consistently regarded rural revitalization as an important political task
incorporating it into annual key work for coordinated planning and implementation. Throughout the
year the Company convened three Party Committee meetings and eight special work meetings to
communicate and study the guiding principles of higher-level authorities review and approve the
2025 Work Plan for Foundational Assistance and the 2025 Work Plan for Targeted Assistance and
refine seven categories of assistance into 19 specific measures. These efforts ensured that the
Company’s assistance work was highly aligned with the instructions of the CPC Sichuan Provincial
Committee and the People’s Government of Sichuan Province and closely matched the practical
needs of the assisted areas. Members of the Company’s leadership team made seven visits to the
frontline of assistance work including Guntang Village in Hongyuan County and Hongdongqiao
Village in Xuyong County to conduct research and provide guidance. They coordinated on site to
resolve four difficult issues and bottlenecks related to industrial development and infrastructure
construction. The Company selected six politically reliable and highly capable young employees to
serve full-time as resident village cadres. It fully implemented mechanisms for compensation benefits
care and support ensuring that these cadres could settle in stay committed and perform effectively
and truly serve as the “vanguard” and “liaisons” for rural revitalization.B. Deepen industry-based assistance and broaden income channels
The Company continued to regard industry-based assistance as the core means of enhancing the
self-sustaining development capacity of assisted areas. First the Company strengthened project
support. It invested dedicated funds to support the construction of the Integrated Information Service
Center for the Live Livestock Trading Market in Hongyuan County and established a joint working
group composed of 17 outstanding mid-level managers and key business personnel to follow up
752025 Annual Report of Luzhou Laojiao Co. Ltd.
throughout the process. These efforts helped build a demonstration trading market with strong
practicality and a high level of digitalization. Second the Company activated the courtyard economy.It distributed more than 9000 chicks to nearly 600 farming households in assisted villages such as
Xiangtian Village in Gulin County and Baiyang Village in Xuyong County and coordinated
cooperatives to purchase the poultry under unified arrangements. This helped increase average
household income by approximately CNY 1700 turning “courtyard farming” into a “micro-factory” for
villagers to increase income and become better off. Third the Company broadened sales channels. It
continued to carry out initiatives that “replace donations with purchases” and “create wealth throughsales”. During the year the Company directly purchased CNY 1.2462 million worth of specialty
products from Hongyuan County including yak jerky and yak milk powder. It also incorporated
Hongyuan organic yak milk into trade union activity rewards purchasing a total of 2000 units worthCNY 130000. These efforts helped create a positive development model featuring “corporate supportcollective income and household income growth”. Fourth the Company carried out matrix-style
assistance. Leveraging its professional strengths the Company proactively undertook the testing and
inspection of Jinchuan Snow Pear Brandy. It organized seven national-level liquor tasters to conduct
sensory evaluation and completed testing of 31 physicochemical indicators for four samples helping
move the deep processing of Jinchuan County’s specialty agricultural products from the laboratory
toward industrialization.C. Strengthen talent development and stimulate endogenous momentum
The Company combined knowledge-based support with aspiration-building support and used talent
development as a key lever to continuously strengthen the endogenous development momentum ofassisted areas. First the Company carried out skills training. It invested CNY 100000 to hold the “E-commerce Talent Training Program for Foundational Assistance at the Party School of the CPCHongyuan County Committee”. In response to the pain points in the development of Hongyuan
County’s specialty industries the Company organized senior experts to provide full-chain instruction
to 40 trainees and implemented an entrepreneurship incentive program helping 11 young people
from Tibetan areas start businesses and increase income. Second the Company deepened
employment assistance. In partnership with three enterprises including Hongyuan Yak Dairy
Company the Company provided job opportunities for 19 unemployed young people. It also worked
with village Party branch committees and villagers’ committees to develop four categories of public-
interest positions related to environmental improvement and other work helping more than 20
members of the poverty-alleviated workforce secure employment and effectively addressing
employment difficulties among key groups. Third the Company advanced education assistance. It
continued to implement the “Pillars Project” student assistance program providing financial support
during the year to help 29 disadvantaged college freshmen from Guntang Village and Xiangtian
Village pursue higher education. It also donated sports equipment including basketballs and
badminton sets to Maiwa Primary School in Hongyuan County providing strong support for students
on the plateau to build physical fitness and grow in good health.D. Strengthen livelihood support and deliver care with warmth
The Company has always regarded livelihood improvement as the starting point and ultimate goal of
its assistance work. First the Company provided care and support. It invested CNY 180000 to
donate blankets wheat flour edible oil and other supplies to disadvantaged residents helping
address their practical difficulties. Second the Company implemented lighting projects. In response
to infrastructure shortcomings in assisted villages it introduced dedicated funds to donate and install
762025 Annual Report of Luzhou Laojiao Co. Ltd.
250 solar-powered streetlights in Baiyang Village and Hongdongqiao Village in Xuyong County.
Covering main roads and concentrated residential areas the project effectively addressed the lack of
lighting for residents traveling at night and illuminated a “road to happiness” for rural revitalization.Third the Company strengthened the foundation for people’s livelihoods. It assisted in organizing
lectures and free clinics on the prevention and treatment of common diseases in plateau areas
dynamic inspections of housing safety water source protection awareness campaigns and water
quality testing. These efforts continued to help improve the level of the “three guarantees” and
drinking water safety and effectively enhanced the sense of gain happiness and security among
residents in the assisted areas. Fourth the Company helped preserve a distinctive culture. It invested
CNY 35000 to support assisted villages in holding festival activities and distinctive local cultural
activities promoting the wider dissemination and orderly preservation of intangible cultural heritage
such as Baiwang playing and singing and Tibetan opera. These efforts enriched the cultural life of
local residents and improved the overall spirit of the villagers.E. Innovate assistance mechanisms and deepen joint organizational developmentFirst the Company actively explored a long-term assistance model “combining public welfare fundswith rural revitalization”. In 2025 together with the China Foundation for Rural Development it
established the “Luzhou Laojiao Rural Revitalization Public Welfare Fund”. Focusing on areas such
as rural industry assistance and the cultivation of rural artisans the fund systematically carries out
public welfare projects and provides lasting momentum for rural revitalization. In 2025 the Company
completed a donation of CNY 5 million. Second the Company deepened Party building partnerships
and co-development. It organized grassroots Party organizations of the Company to carry out paired
co-development activities with the Party branch of Guntang Village donated supporting facilities such
as conference tables and chairs to help build a standardized Party member activity room and
effectively strengthened the role of grassroots Party organizations as strong fighting fortresses and
the pioneering and exemplary role of Party members through discussions film-based learning and
visits to Party members in difficulty.
17.2. Work plan for rural revitalization in 2026
In 2026 the Company will continue to follow the guidance of General Secretary Xi Jinping’s important
expositions and instructions on work related to agriculture rural areas and farmers and fully
implement the decisions and arrangements of the CPC Central Committee the State Council the
CPC Sichuan Provincial Committee the People’s Government of Sichuan Province the CPC Luzhou
Municipal Committee and the People’s Government of Luzhou Municipality on comprehensively
advancing rural revitalization. On the basis of systematically summarizing the effectiveness of
assistance work in 2025 and reviewing existing issues the Company will also focus on the
development needs of the assisted areas continue to consolidate and expand the achievements of
poverty alleviation advance all aspects of rural revitalization with more practical measures and better
methods and continue to contribute as a state-owned enterprise.A. The Company will continue to deepen industry-based assistance. Focusing on distinctive
resources such as Hongyuan Maiwa yaks and guided by the park-based and standardized
development of agricultural and animal husbandry industries the Company will strengthen the role of
the joint project working group and accelerate the implementation of the Integrated Information
Service Center for the Live Livestock Trading Market in Hongyuan County helping drive the
transformation and upgrading of modern animal husbandry. The Company will also work to extend
772025 Annual Report of Luzhou Laojiao Co. Ltd.
the industrial chains and build the brands of specialty agricultural and livestock products in theassisted areas continue to deepen the initiatives of “replacing donations with purchases and creatingwealth through sales” explore innovative mechanisms that organically integrate trade union activities
with consumption-based assistance and further broaden sales channels.B. The Company will continue to strengthen talent support. The Company will regard the cultivation of
local talent as an effective way to enhance the knowledge base and development quality of the
assisted areas. It will strengthen follow-up services for e-commerce training and strive to train a group
of rural e-commerce talent capable of promoting and selling local products for Hongyuan County. In
cooperation with professional institutions the Company will carry out skills training in modern
agricultural technology rural tourism management business operation and management and other
fields promoting stable employment through capability improvement. It will further deepen
employment assistance pathways including enterprise-to-enterprise cooperation and the provision of
village-level public-interest jobs provide more job opportunities for unemployed people and continue
to stimulate the endogenous momentum of the assisted areas.C. The Company will continue to strengthen the foundation of people’s livelihoods. Focusing on the
urgent concerns and practical difficulties of local residents the Company will help the assisted
villages continuously improve infrastructure conditions related to roads drinking water housing and
other areas. It will work with local Party committees and governments to carry out dynamic monitoring
and targeted assistance to prevent people from falling back into poverty and firmly safeguard the
bottom line of preventing a large-scale relapse into poverty. The Company will also further carry out
the practical initiative of “I do practical things for the public” and regularly conduct activities such as
student assistance visits and care for people in need free medical consultations and volunteer
services continuously improving people’s sense of gain happiness and security.D. The Company will continually empower rural governance. The Company will deepen the
mechanism for Party building partnerships and co-development support the assisted villages in
strengthening grassroots Party organizations and improve the modernization of governance
capabilities. With the practice of Core Socialist Values as the guiding principle the Company will
support mass cultural activities and initiatives to promote cultural and ethical advancement
encourage the transformation of outdated customs and practices and foster a civilized rural culture
good family traditions and simple honest social customs.
782025 Annual Report of Luzhou Laojiao Co. Ltd.
Section V Significant Events
1. Performance of undertakings
1.1. 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
Date of
Type of Term of
Commitment Promisor Details of commitment commitment Fulfillment
commitment commitment
making
Laojiao Group plans to
increase its holdings of
the Company's shares
through call auction
trading using a special
loan for the shareholding
increase and own funds
within 6 months from
March 14 2025 with the
amount of increase not
Other Other less than CNY 150
Laojiao March 14 Having
commitment commitment million and not more than 6 months
Group 2025 expired
s s CNY 300 million. Laojiao
Group has promised not
to reduce its holdings of
the Company's shares
during the increase
period and the statutory
period and will complete
the implementation of the
increase plan within the
above implementation
period.Executed on
Yes
time or not
1.2. Where any earnings forecast was made for any of the Company's assets or
projects and the reporting period is still within the forecast period the Company
shall explain whether the performance of the asset or project reaches the earnings
forecast and reasons
□ Applicable □ N/A
792025 Annual Report of Luzhou Laojiao Co. Ltd.
1.3. Performance commitments involving the Company
□ Applicable □ N/A
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. Explanation of the board of directors regarding the latest "non-
standard audit opinion"
□ Applicable □ N/A
5. Explanation of the board of directors and non-executive directors (if
any) regarding the "non-standard audit opinion" for the reporting period
□ Applicable □ N/A
6. Reason for changes in accounting policies and accounting estimates
as well as correction of major accounting errors compared to the
financial report for the prior year
□ Applicable □ N/A
No such cases in the reporting period.
7. Reason for changes in scope of the consolidated financial statements
compared to the financial report for the prior year
□ Applicable □ N/A
802025 Annual Report of Luzhou Laojiao Co. Ltd.
In August 2025 the Company invested in and established a wholly-owned subsidiary namely Luzhou
Laojiao Cultural Tourism Development Co. Ltd.
8. Engagement and disengagement of CPA firm
CPA firm at present
Name of the domestic CPA firm ShineWing Certified Public Accountants
The Company’s payment for the domestic CPA
firm (CNY 10000) 84.5
Consecutive years of the audit service provided
by the domestic CPA firm 2
Names of the certified public accountants from
the domestic CPA firm Wang Xiaodong Ouyang Lihua
Consecutive years of the audit service provided Wang Xiaodong: 1 year
by the certified public accountants Ouyang Lihua: 2 years
Whether the CPA firm was changed in the current period
□ Yes □ No
Engagement of any CPA firm for internal control audit financial advisor or sponsor
□ Applicable □ N/A
The Company appointed ShineWing Certified Public Accountants as the internal control auditor for
this year. The remuneration of audit in total paid by the Company was CNY 440 thousand.
9. Possibility of delisting after disclosure of this annual report
□ Applicable □ N/A
10. Bankruptcy and reorganization
□ Applicable □ N/A
No such cases in the reporting period.
11. Material litigation and arbitration
□ Applicable □ N/A
Profile of Amount Whether it Trial results Execution of
litigation involved in forms an
Progress in and impacts of judgment of Date of Disclosure
(arbitration) the case (CNY estimate
litigation
(arbitration) litigation litigation disclosure index10000) liability (arbitration) (arbitration)
The Company The second For the losses The Company
filed a lawsuit trial has been that the applied to
14942.5 No October 15 http://www.cniwith ABC concluded Company Hunan 2014 nfo.com.cn/
Changsha and the case cannot Province
Yingxin is now at the recover Higher
812025 Annual Report of Luzhou Laojiao Co. Ltd.
Branch over a stage of through People's Court
deposit enforcement. criminal for
dispute and execution enforcement
the case has procedures of the verdict.been 40% shall be Hunan
completed in borne by ABC Province
the first Changsha Higher
instance of Yingxin People's Court
Hunan Branch 20% ruled that
Province shall be borne Hunan
Higher by ABC Changsha
People's Court Changsha Intermediate
and the final Hongxin People’s Court
trial of the Branch and should see to
Supreme the rest shall the execution
People's be borne by of the verdict.Court. The the Company Upon the
case is now at itself. enforcement
the stage of the banks
enforcement. have paid part
of the
compensation
s.
12. Punishments and rectifications
□ Applicable □ N/A
No such cases in the reporting period.
13. Credit conditions of the Company as well as its controlling
shareholder and actual controller
□ Applicable □ N/A
14. Significant related party transactions
14.1. Related party transactions arising from routine operation
□ Applicable □ N/A
No such cases in the reporting period.
14.2. Related party transactions regarding purchase or sales of assets or equity
interests
□ Applicable □ N/A
No such cases in the reporting period.
14.3. Related party transactions arising from joint investments in external parties
□ Applicable □ N/A
No such cases in the reporting period.
822025 Annual Report of Luzhou Laojiao Co. Ltd.
14.4. Credits and liabilities with related parties
□ Applicable □ N/A
No such cases in the reporting period.
14.5. 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.
14.6. 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.
14.7. Other significant related party transactions
□ Applicable □ N/A
No such cases in the reporting period.
15. Significant contracts and their execution
15.1. Trusteeship contracting and leasing
15.1.1. Trusteeship
□ Applicable □ N/A
No such cases in the reporting period.
15.1.2. Contracting
□ Applicable □ N/A
No such cases in the reporting period.
832025 Annual Report of Luzhou Laojiao Co. Ltd.
15.1.3. Leasing
□ Applicable □ N/A
No such cases in the reporting period.
15.2. Major guarantees
□ Applicable □ N/A
No such cases in the reporting period.
15.3. Entrusted cash asset management
15.3.1. Entrusted asset management
□ Applicable □ N/A
Entrusted asset management during the reporting period
Unit: CNY 10000
Entrusted asset
Overdue outstanding
Product type Risk characteristic management balance
amount
during the reporting period
Wealth management
R2 (medium-low risk) 140000 0
product of securities firm
Wealth management
R2 (medium-low risk) 10000 0
product of bank
Others R3 (medium risk) 10000 0
Asset management entrusted by the Company as a single principal to financial institutions or high-
risk entrusted asset management investments with low security or poor liquidity
□ Applicable □ N/A
Unit: CNY 10000
Name Actual
Type of
of Actual recover
entruste Fund Overvie
entruste gain/los y of
d Risk investm w and
d Product Start End s during gain/los
institutio charact Amount ent inquiry
institutio type date date the s during
n (or eristic directio index (if
n (or reportin the
individu n any)
individu g period reportin
al)
al) g period
The
Asset
product
manage
Guotai s did
R2 ment
Haitong Septem March not
Securiti (mediu product Debt
Securiti 1000 ber 26 26 mature
es m-low issued assets
es Co. 2025 2026 during
risk) by
Ltd. the
securiti
reportin
es firm
g
842025 Annual Report of Luzhou Laojiao Co. Ltd.
period
and
there
was no
actual
amount
recover
ed.The
product
s did
not
mature
Asset
during
manage
Guotai the
R2 ment
Haitong October April reportin
Securiti (mediu product Debt
Securiti 29000 13 13 g
es m-low issued assets
es Co. 2025 2026 period
risk) by
Ltd. and
securiti
there
es firm
was no
actual
amount
recover
ed.The
product
s did
not
mature
Asset
during
manage
Guotai the
R2 ment
Haitong Novem reportin
Securiti (mediu product May 10 Debt
Securiti 1000 ber 10 g
es m-low issued 2026 assets
es Co. 2025 period
risk) by
Ltd. and
securiti
there
es firm
was no
actual
amount
recover
ed.The
product
s did
not
Asset mature
manage during
Guotai
R2 ment the
Haitong Novem
Securiti (mediu product May 18 Debt reportin
Securiti 19000 ber 18
es m-low issued 2026 assets g
es Co. 2025
risk) by period
Ltd.securiti and
es firm there
was no
actual
amount
recover
852025 Annual Report of Luzhou Laojiao Co. Ltd.
ed.The
product
s did
not
mature
China Asset
during
CICC manage
the
Wealth R2 ment
Novem reportin
Manage Securiti (mediu product May 25 Debt
20000 ber 25 g
ment es m-low issued 2026 assets
2025 period
Securiti risk) by
and
es Co. securiti
there
Ltd. es firm
was no
actual
amount
recover
ed.Total 70000 -- -- -- 0 -- --
15.3.2 Entrust loans
□ Applicable □ N/A
No such cases in the reporting period.
15.4. Other significant contracts
□ Applicable □ N/A
No such cases in the reporting period.
16. Use of funds raised
□ Applicable □ N/A
16.1. General use of funds raised
□ Applicable □ N/A
Unit：CNY 10000
Total Accum Raised Total Total Accum Total Purpo Amou
Date Total amoun ulated funds amoun amoun ulated amoun se and nt of
of amoun Net t of amoun used t of re- t of re- t of directi funds
Metho
Year securit t of procee raised t of as % purpos accum purpos unuse on of raised
d
ies funds ds (1) funds raised of total ed ulated ed d unuse idle for
listing raised used funds raised funds re- funds funds d more
in the used funds raised purpos raised raised funds than
862025 Annual Report of Luzhou Laojiao Co. Ltd.
reporti (2) at the in the ed as % raised two
ng end of reporti funds of total years
period the ng raised funds
reporti period raised
ng
period
(3)=
(2)/
(1)
Deposi
Public
ted in
offerin
March special
g of 15000 14940 14054 15049 100.74 7044.
2020 17 0 0 0.00% accou 0
corpor 0 0 .57 8.8 % 49
2020 nt for
ate
raised
bond
funds
15000149401405415049100.747044.
Total -- -- 0 0 0.00% -- 0
00.578.8%49
Notes for general use of funds raised:
The total amounts of used and unused funds raised of the corporate bond “20 Laojiao 01” included
interest on some funds raised.
16.2. Fund raised for committed projects
□ Applicable □ N/A
Unit：CNY 10000
Date
Whet
of the Cumu Whet
Com her Accu Invest Whet
Total projec lative her
mitted the mulat ment Realiz her
amou Invest ts realiz the
invest projec Adjust ed progr ed thent of ed ment reach ed feasibDate ment t has input ess benefi expec
Finan funds Invest amou the benefi ility of
of projec Projec been by the by the ts ted
cing raised ment nt in worki ts by the
securi ts and t chang total end of end of during benefi
projec for
ties directi nature ed amou
the ng the projec
nt the reporti the tst comm reporti condit end of t has
listing on of (inclu reporti ng reporti have
itted (1) ng ion for the chang
over- ding ng period ng been
invest period their reporti ed
raised partial period (3)＝ period achie
ment intend ng signifi
funds chang (2) (2)/(1) ved
ed period cantly
e)
use
Committed investment projects
2020 Techn
Public ical
Offeri Reno Produ
ng of March vation ction June
398439849142.3618101.3
Corpo 17 Projec and No 30 N/A N/A Yes No
00005314.80%
rate 2020 t of constr 2021
Bond Baijiu uction
for Produ
Qualifi ction
872025 Annual Report of Luzhou Laojiao Co. Ltd.
ed (Phas
Invest e II)
ors
Projec
t of
Intelli
2020
gent
Public
Upgra
Offeri
ding
ng of Opera
and
Corpo tion Dece
March Buildi
rate and 4912. 2474 mber
17 ng of No N/A N/A N/A No
Bond mana 04 2.29 31
2020 the
for geme 2026
Inform
Qualifi nt
ation
ed
Mana
Invest
geme
ors
nt
Syste
m
Projec
t of
Acquir
2020
ing
Public
Sealin
Offeri
g
ng of
Equip Produ
Corpo
March ment ction June
rate 1204
17 for the and No 0 30 N/A N/A Yes No
Bond 3.3
2020 Cellar constr 2021
for
of uction
Qualifi
Huan
ed
gyi
Invest
Baijiu
ors
Produ
ction
Base
Projec
t of
Acquir
ing
2020
Acces
Public
sory
Offeri
Equip
ng of
ment Produ
Corpo
March for ction June
rate 4980.
17 Leave and No 0 30 N/A N/A Yes No
Bond 25
2020 n constr 2021
for
Makin uction
Qualifi
g for
ed
Huan
Invest
gyi
ors
Baijiu
Produ
ction
Base
3984398414054035
Subtotal of committed investment -- -- -- -- --
001004.5780.64
882025 Annual Report of Luzhou Laojiao Co. Ltd.
projects
Use of over-raised funds
None
3984398414054035
Total -- -- -- 0 0 -- --
00004.5780.64
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”)
Significant
changes of
N/A
project
feasibility
Amount
purpose and
progress of N/A
over-raised
funds
Unauthorized
change of the
purpose of
raised funds or N/A
illegal
occupation of
raised funds
Change of
implementation
site of N/A
investment
projects
Adjustment of
the
implementation
mode of raised N/A
funds
investment
projects
Applicable
Situation of On May 14 2019 the Company held the First Extraordinary Meeting of Shareholders of 2019 which considered and
advance approved the Proposal on Requesting the Company’s Meeting of Shareholders to Fully Authorize Chairman of the Board
investment and or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond.replacement According to the Proposal in the event of inconsistency between the payment of the raised funds and the progress of the
project implementation the Company may make advance investments using other funds (including self-owned funds bank
892025 Annual Report of Luzhou Laojiao Co. Ltd.
project loans etc.) according to the actual situation and replace fund investment other than capital funds when the raised
funds are in place. As of December 31 2025 the Company had replaced advance investments of self-pooled funds of
CNY 653444758.68 using the raised funds.Idle raised
funds used for
temporary N/A
supplementary
liquidity
Amount and
reason for
N/A
surplus of funds
raised
Purpose and
whereabouts of The idle raised funds are deposited in the Company’s special account No. 631395395 for raised funds in the Chengdu
unused funds Branch of China Minsheng Banking Corp. Ltd.raised
Problems and
other situation
when raised N/A
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 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 December 31 2025 the Project of Intelligent Upgrading and Building of the Information
Management System was in the process.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.
16.3. Re-purposed funds raised
□ Applicable □ N/A
No such cases in the reporting period
902025 Annual Report of Luzhou Laojiao Co. Ltd.
16.4. Intermediary institution’s assurance opinion on the deposit and use of funds
raised
□ Applicable □ N/A
ShineWing Certified Public Accountants has performed assurance on the Company’s special report
on the deposit and use of funds raised for 2025 and the assurance opinion is set out as follows:“We have conducted our assurance in accordance with China Standards on Other AssuranceEngagements No. 3101 — Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information to obtain reasonable assurance that the special report on the annual deposit
and use of funds raised is free from material misstatement. In the course of performing the assurance
we have carried out necessary assurance procedures including inquiry inspection and recalculation
as we deem appropriate. The procedures selected depend on our professional judgment.We believe that our assurance provides a reasonable basis for our opinion. In our opinion the
aforesaid special report on the annual deposit and use of funds raised of Luzhou Laojiao Co. Ltd.has been prepared in accordance with the relevant provisions of the Shenzhen Stock Exchange and
fairly reflects in all material respects the actual deposit and use of the Company’s funds raisedduring 2025.”
17. Other significant events
□ Applicable □ N/A
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. As of the end of the reporting period the
deposit dispute case with ICBC Nanyang Zhongzhou Branch has been concluded the deposit
dispute case with ABC Changsha Yingxin Branch is currently in the court enforcement process and
the Company had recovered a total amount of CNY 408 million for the three disputes.B. On January 30 2026 the Company carried out the 2025 interim dividend payout of CNY 13.58
(tax inclusive) for every 10 existing shares held totaling CNY 1998897185.75 (tax inclusive).
18. Significant events of subsidiaries
□ Applicable □ N/A
The Company invested in the Technical Renovation Project of Intelligent Baijiu Production (Phase I)
with the wholly-owned subsidiary Baijiu Production Company as the implementer. The total
investment amount approximated CNY 4782.5090 million. For further information see
912025 Annual Report of Luzhou Laojiao Co. Ltd.
Announcement No. 2022-24 on the Implementation of Luzhou Laojiao’s Technical Renovation Project
of Intelligent Baijiu Production (Phase I) by Subsidiary. The program is currently under construction.
922025 Annual Report of Luzhou Laojiao Co. Ltd.
Section VI Changes in Shares and Information about
Shareholders
1. Changes in shares
1.1 Changes in shares
Unit：Share
Before Changes in this period (＋，－) AfterCapitalizati
Issuance
Bonus on of
Number Proportion of new Other Subtotal Number Proportion
shares capital
shares
reserves
I.Restricted 4649959 0.32% -1973779 -1973779 2676180 0.18%
shares
1.
Shares
held by the
state
2.
Shares
held by
state-
owned
corporatio
ns
3.
Shares
held by
46499590.32%-1973779-197377926761800.18%
other
domestic
investors
Of
which:
shares
held by
domestic
corporatio
ns
Share
s held by
46499590.32%-1973779-197377926761800.18%
domestic
individuals
4.
Shares
held by
foreign
corporatio
ns
Of
which:
932025 Annual Report of Luzhou Laojiao Co. Ltd.
shares
held by
foreign
corporatio
ns
Share
s held by
foreign
individuals
II. Non-
14673011469265
restricted 99.68% 1964239 1964239 99.82%
544783
shares
1.CNY
14673011469265
common 99.68% 1964239 1964239 99.82%
544783
shares
2.
Domestical
ly listed
foreign
shares
3.
Overseas
listed
foreign
shares
4. Other
III. Total 1471951 1471941
100.00%-9540-9540100.00%
shares 503 963
Reasons for the change in shares
□ Applicable □ N/A
A. According to the provisions of the 2021 Restricted Share Incentive Plan (Draft) 37069 restricted
shares of 17 awardees that satisfied the unlocking conditions for the first unlocking period of the
reserved restricted shares under the 2021 Restricted Share Incentive Plan 2022530 restricted
shares of 434 awardees that satisfied the unlocking conditions for the second unlocking period of the
2021 Restricted Share Incentive Plan and 100900 restricted shares of 45 awardees that satisfied the
unlocking conditions for the second unlocking period of the reserved restricted shares under the 2021
Restricted Share Incentive Plan were allowed for public trading on February 17 February 24 and
September 29 2025 respectively.B. On September 16 2025 the Company held the 15th Meeting of the 11th Board of Directors at
which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and the
Adjustment of Repurchase Price was reviewed and approved. As three awardees were no longer
eligible for the incentives the Company decided to repurchase and retire a total of 9540 restricted
shares that had been granted to the aforesaid awardees but remained in lockup.C. During the reporting period due to the unlocking of restricted shares under the restricted share
incentive plan locked shares of the Company’s senior management increased by 196260 shares.Approval of share changes
942025 Annual Report of Luzhou Laojiao Co. Ltd.
□ Applicable □ N/A
A. On January 21 2025 the Company held the Eighth Meeting of the 11th Board of Directors and the
Sixth Meeting of the 11th Board of Supervisors at which the Proposal on the Satisfaction of
Unlocking Conditions for the First Unlocking Period of the Reserved Restricted Shares under the
2021 Restricted Share Incentive Plan and the Proposal on the Satisfaction of Unlocking Conditions
for the Second Unlocking Period of the 2021 Restricted Share Incentive Plan were approved. As such
37069 restricted shares of 17 awardees that satisfied the unlocking conditions for the first unlocking
period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan and
2022530 restricted shares of 434 awardees that satisfied the unlocking conditions for the second
unlocking period of the 2021 Restricted Share Incentive Plan were allowed for public trading on
February 17 and 24 2025 respectively.B. On September 16 2025 the Company held the 15th Meeting of the 11th Board of Directors at
which the Proposal on the Satisfaction of Unlocking Conditions for the Second Unlocking Period of
the Reserved Restricted Shares under the 2021 Restricted Share Incentive Plan was reviewed and
approved. 100900 restricted shares of 45 awardees that satisfied the unlocking conditions for the
second unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive
Plan were allowed for public trading on September 29 2025.C. On September 16 2025 the Company held the 15th Meeting of the 11th Board of Directors at
which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and the
Adjustment of Repurchase Price was reviewed and approved. As three awardees were no longer
eligible for the incentives the Company decided to repurchase and retire a total of 9540 restricted
shares that had been granted to the aforesaid awardees but remained in lockup which was
completed on November 22 2025. Upon that the total share capital of the Company decreased from
1471951503 shares to 1471941963 shares.
Transfer of share ownership
□ 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
Name of Number of Increase in Decrease in Number of Reason for Date of
shareholder restricted restricted restricted restricted restriction unlocking
952025 Annual Report of Luzhou Laojiao Co. Ltd.
shares held at shares during shares during shares held at
the beginning the reporting the reporting the end of the
of the period period reporting
reporting period
period
In accordance
with the
Restricted
relevant
2021 shares under
unlocking
Restricted the 2021
4329853 2170039 2159814 provisions of
Share Restricted
the 2021
Incentive Plan Share
Restricted
Incentive Plan
Share
Incentive Plan
In accordance
with the
Restricted
relevant
Locked shares under
unlocking
shares of the 2021
320106 196260 516366 provisions of
senior Restricted
the 2021
management Share
Restricted
Incentive Plan
Share
Incentive Plan
Total 4649959 196260 2170039 2676180 -- --
2. Issuance and listing of securities
2.1 Securities (excluding preferred shares) issued in the reporting period
□ Applicable □ N/A
2.2 Changes in total shares of the Company and the shareholder structure as well
as the asset and liability structure
□ Applicable □ N/A
During the reporting period the total share capital of the Company decreased from 1471951503
shares to 1471941963 shares due to the repurchase and retirement of certain restricted shares.
2.3 Existing staff-held shares
□ Applicable □ N/A
962025 Annual Report of Luzhou Laojiao Co. Ltd.
3. Shareholders and actual controller
3.1 Total number of shareholders and their shareholdings
Unit: Share
Total
Total number of
number of preferred
Total
common shareholder
number of
shareholder s with Total number of preferred
common
s at the prior resumed shareholders with resumed
shareholder
164074 month-end 182100 voting rights 0 voting rights by the end of 0
s at the end
before the by the end the reporting period (if any)
of the
disclosure of the (see Note 8)
reporting
date of the reporting
period
annual period (if
report any)(see
Note 8)
Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders (exclusive of shares lent in refinancing)
Total shares Increase/de Pledged marked or frozen
Number of Number of
Shareholdin held by the crease shares
Name of Nature of holding holding non-
g end of the during the
shareholder shareholder restricted restricted
percentage reporting reporting Status of Number of
shares shares
period period shares shares
Luzhou
Laojiao State-owned
26.05% 383433639 2345250 0 383433639 N/A 0
Group Co. corporation
Ltd.Luzhou
XingLu
State-owned
Investment 24.86% 365971142 0 0 365971142 N/A 0
corporation
Group Co.Ltd.Bank of
China Co.Ltd. – Baijiu
index
classification
securities Other 3.67% 53997775 3162006 0 53997775 N/A 0
investment
fund by
China
Merchants
Fund
Hong Kong
Securities
Outbound
Clearing 2.34% 34514375 -1399271 0 34514375 N/A 0
corporation
Company
Limited
China
Securities
Finance Other 2.30% 33842059 0 0 33842059 N/A 0
Corporation
Limited
Bank of Other 1.74% 25552600 3302600 0 25552600 N/A 0
972025 Annual Report of Luzhou Laojiao Co. Ltd.
China Co.Ltd.－Blue
chip
selected
hybrid
securities
investment
fund by E
Fund
China
Construction
Bank
Corporation
－Penghua
Other 1.34% 19664908 9657188 0 19664908 N/A 0
Wine &
Liquor
Exchange-
Traded
Fund
Guofeng
Xinghua
(Beijing)
Private
Equity Fund
Managemen
t Co. Ltd.－
Guofeng Other 1.28% 18871962 18871962 0 18871962 N/A 0
Xinghua
Honghuzhiy
uan Tranche
3 Private
Securities
Investment
Fund No. 1
China Life
Insurance
Company
Limited –
Traditional –
Ordinary Other 1.15% 16873922 14246098 0 16873922 N/A 0
Insurance
Product –
005L–
CT001
(Shanghai)
Central
Huijin Asset State-owned
0.92% 13539862 0 0 13539862 N/A 0
Managemen corporation
t Co. Ltd.Strategic investors or
general corporations
become the top-ten
N/A
shareholders due to placing
of new shares (if any) (see
note 3)
Related parties or acting-in- 1. Luzhou Laojiao Group Co. Ltd. and Luzhou XingLu Investment Group Co. Ltd. are both state-owned
concert holding companies under the jurisdiction of SASAC of Luzhou. The two companies have signed the
982025 Annual Report of Luzhou Laojiao Co. Ltd.
agreement of persons acting in concert. For details please refer to the announcement of the Company on
May 23 2024 - Announcement on the Renewed Agreement of Persons Acting in Concert Signed by
Shareholders (Announcement No. 2024-22).
2. During the reporting period Luzhou Laojiao Group Co. Ltd. increased its holdings in the Company by
2345250 shares through call auction trading. By the end of the reporting period Luzhou Laojiao Group Co.
Ltd. and Golden Rudder collectively held 384573839 shares in the Company representing 26.13% of the
total share capital of the Company.
3. 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 N/A
entrusted with voting rights
or waiving voting rights
Special account for
repurchased shares among
N/A
the top 10 shareholders (if
any) (see note 10)
Shareholdings of the top 10 non-restricted shareholders (exclusive of shares lent in refinancing and locked shares of senior management)
Type of shares
Name of shareholder Number of non-restricted shares held by the end of the reporting period
Type Number
CNY
Luzhou Laojiao Group Co.
383433639 common 383433639
Ltd.shares
CNY
Luzhou XingLu Investment
365971142 common 365971142
Group Co. Ltd.shares
Bank of China Co. Ltd. –
CNY
Baijiu index classification
53997775 common 53997775
securities investment fund
shares
by China Merchants Fund
CNY
Hong Kong Securities
34514375 common 34514375
Clearing Company Limited
shares
CNY
China Securities Finance
33842059 common 33842059
Corporation Limited
shares
Bank of China Co. Ltd.－
CNY
Blue chip selected hybrid
25552600 common 25552600
securities investment fund
shares
by E Fund
China Construction Bank
CNY
Corporation－Penghua Wine
19664908 common 19664908
& Liquor Exchange-Traded
shares
Fund
Guofeng Xinghua (Beijing)
Private Equity Fund
Management Co. Ltd.－ CNY
Guofeng Xinghua 18871962 common 18871962
Honghuzhiyuan Tranche 3 shares
Private Securities
Investment Fund No. 1
China Life Insurance
CNY
Company Limited –
16873922 common 16873922
Traditional – Ordinary
shares
Insurance Product – 005L–
992025 Annual Report of Luzhou Laojiao Co. Ltd.
CT001 (Shanghai)
CNY
Central Huijin Asset
13539862 common 13539862
Management Co. Ltd.shares
The statement of association
or acting-in-concert between
the top 10 shareholders of
unrestricted shares and
See the upper part of this table
between the top 10
shareholders of unrestricted
shares and top 10
shareholders
Top 10 common
shareholders participating in
None
securities margin trading (if
any) (see note 4)
5% or greater shareholders top 10 shareholders and top 10 non-restricted shareholders involved in
refinancing shares lending
□ Applicable □ N/A
Changes in top 10 shareholders and top 10 non-restricted shareholders due to refinancing shares
lending/return compared with the prior period
□ Applicable □ N/A
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 top 10 common shareholders did not conduct
any promissory repurchase during the reporting period.
3.2 Controlling shareholder
Nature of controlling shareholder：Local state-owned
Type of controlling shareholder：Corporation
Name of Legal
controlling representative/ Date of
shareholder Company establishment
Credibility code Main business scope
principal
General project: Social economy consulting
services; business management consulting;
financial consulting; business headquarters
management; import and export agency; trade
Luzhou Laojiao December 21 brokerage; crops planting services; trees planting
Group Co. Ltd. Liu Miao 2000 91510500723203346U 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;
1002025 Annual Report of Luzhou Laojiao Co. Ltd.
technical services technical development technical
consulting technical communication technical
transfer and technical promotion; domestic freight
transport agency; equity fund-invested asset
management services; passenger ticket agent; and
business agency service. 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; and medical
services. (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)
Shareholdings of
1. As of June 30 2025 Laojiao Group holds 70406310 shares of Luzhou Xinglu Water (Group) Co. Ltd. (02281.HK)
the controlling
accounting for 8.19% of the total issued shares.shareholder in
2. As of September 30 2025 Laojiao Group holds 216584666 shares of Hongli Zhihui Group Co. Ltd. (300219.SZ)
other controlled
through its wholly-owned subsidiary Golden Rudder accounting for 30.59% of the total issued shares.or non-controlled
3. As of September 30 2025 Laojiao Group holds 475940143 shares of Huaxi Securities Co. Ltd. (002926.SZ)
listed companies
accounting for 18.13% of the total issued shares.at home or
4. As of June 30 2025 Laojiao Group holds 390528000 shares of Luzhou Bank (01983.HK) accounting for 14.37% of
abroad during the
the total issued shares.reporting period
Change of the controlling shareholder during the reporting period
□ Applicable □ N/A
No such cases in the reporting period
3.3 Actual controller and its parties acting in concert
Nature of actual controller：Local State-owned Assets Supervision and Administration Commission
Type of actual controller：Corporation
Legal
Name of actual controller representative/Company Date of establishment Credibility code Main business scope
principal
State-owned assets
supervision and
SASAC of Luzhou Zhang Xuebin March 1 2005 11510400771686813T
administration
department
1. As of June 30 2025 Luzhou XingLu Asset Management Co. Ltd. a majority-owned subsidiary of XingLu
Group (a majority-owned subsidiary of SASAC of Luzhou) holds 511654127 shares of Luzhou Xinglu Water
Share holdings of the
(Group) Co. Ltd. (02281.HK) accounting for 59.51% of the total issued shares. Luzhou Infrastructure
controlling shareholder in
Construction Investment Co. Ltd. a majority-owned subsidiary of XingLu Group holds 62709563 shares of
other controlled or non-
Luzhou Xinglu Water (Group) Co. Ltd. (02281.HK) accounting for 7.29% of the total issued shares. Laojiao
controlled listed
Group a majority-owned subsidiary under SASAC of Luzhou holds 70406310 shares of Luzhou Xinglu Water
companies at home or
(Group) Co. Ltd. (02281.HK) accounting for 8.19% of the total issued shares.abroad during the
reporting period. 2. As of September 30 2025 Laojiao Group holds 216584666 shares of Hongli Zhihui Group Co. Ltd.
(300219.SZ) through its majority-owned subsidiary Golden Rudder accounting for 30.59% of the total shares
issued.
1012025 Annual Report of Luzhou Laojiao Co. Ltd.
3. As of September 30 2025 Luzhou Industrial Investment Group Co. Ltd. a holding Company under the
jurisdiction of SASAC of Luzhou holds 232664610 shares of Sichuan Lutianhua Company Limited
(000912.SZ) accounting for 14.84% of the total shares issued. Lutianhua Group Company Limited a wholly-
owned subsidiary of Luzhou Industrial Investment Group Co. Ltd. holds 236550393 shares of Sichuan
Lutianhua Company Limited (000912.SZ) accounting for 15.09% of the total issued shares.
4. As of September 30 2025 Laojiao Group a majority-owned subsidiary under SASAC of Luzhou holds
475940143 shares of Huaxi Securities Co. Ltd. (002926.SZ) accounting for 18.13% of the total issued shares.
5. As of June 30 2025 Laojiao Group a majority-owned subsidiary under SASAC of Luzhou holds 390528000
shares of Luzhou Bank (01983.HK) accounting for 14.37% of the total issued shares. Luzhou State-Owned
Assets Management Co. Ltd. a majority-owned subsidiary under SASAC of Luzhou holds 173568000 shares
of Luzhou Bank (01983.HK) accounting for 6.39% of the total issued shares. Luzhou XingLu Asset Management
Co. Ltd. a majority-owned subsidiary of XingLu Group (a majority-owned subsidiary of SASAC of Luzhou)
holds 62154702 shares of Luzhou Bank (01983.HK) accounting for 2.29% of the total issued shares.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.Ownership and control relations between the actual controller and the Company
State-owned Assets Supervision and
Administration Commission of Luzhou
Luzhou Development Holdings
Group Co. Ltd.Luzhou Laojiao Luzhou XingLu Investment
Group Co. Ltd. Group Co. Ltd.Sichuan Golden Rudder
Investment Co. Ltd.Luzhou Laojiao
Co. Ltd.The actual controller controls the Company through a trust or other ways of assets management
□ Applicable □ N/A
1022025 Annual Report of Luzhou Laojiao Co. Ltd.
3.4 Number of accumulative pledged shares held by the company’s controlling
shareholder or the largest shareholder as well as its acting-in-concert parties
accounts for 80% of all shares of the company held by them
□ Applicable □ N/A
3.5 Other corporate shareholders with a shareholding proportion over 10%
□ Applicable □ N/A
Name of corporate Legal Date of Registered capital
shareholder representative/Company principal establishment (CNY)
Main business scope
Investment and asset
management; project
management
services; self-finance
real estate business
activities; investment
advisory services
and financial
advisory services
Luzhou XingLu
Investment Group Dai Zhiwei January 28 2003 4934049244 (excluding such
Co. Ltd. financial activities as
illegal capital raising
and collecting public
funds) (business
activities that require
approval in
accordance with laws
can be carried out
upon approval of
relevant authorities)
3.6 Limits on reduction of the Company’s shares held by its controlling shareholder
actual controller restructuring party and other commitment entities.□ Applicable □ N/A
4. Specific implementation of share repurchase during the reporting
period
Implementation progress of shares repurchases
□ Applicable □ N/A
Implementation progress of share buyback reduction through centralized bidding
□ Applicable □ N/A
1032025 Annual Report of Luzhou Laojiao Co. Ltd.
5. Preferred Shares
□ Applicable □ N/A
No preferred stock in the Company during the reporting period.
1042025 Annual Report of Luzhou Laojiao Co. Ltd.
Section VII 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 10000
Name Abbr. Code Issue Value Due date Bond Interest
Way of
date date balance rate redempti
Place of
on trading
In terms
of the
bonds of
this
phase
interests
will be
paid by
year and
the
principal
2020 will be
Public repaid in
Offering lump
of sum at Shenzhe
Corporat 20 Lao 149062. 16 17 17March March March 150000 3.50% maturity. n Stocke Bond Jiao 01 SZ
for 2020 2020 2025
The Exchang
interests e
Qualified will be
Investors paid
(Phase I) once
every
year and
the
interests
for the
last
installme
nt will be
paid
together
with the
1052025 Annual Report of Luzhou Laojiao Co. Ltd.
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
Appropriate arrangement of the in accordance with the Management Measures for the Issue and Transaction
investors (if any) Management of Corporate Bonds Management Measures for the Suitability ofSecurities 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 (if any) and None
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. Information about the intermediaries
Bond Intermediary Office address Signature Contact personaccountant of intermediary Contact number
2020 Public 33rd Floor China
Offering of China World Office 2
Corporate Bond International No. 1
for Qualified Capital Jianguomenwai N/A Qi Qin (010)65051166
Investors (Phase Corporation Avenue
I) Limited. ChaoyangDistrict Beijing
Building 6
2020 Public Galaxy SOHO
Offering of China Chengxin No.2 Nanzhugan
Corporate Bond International hutong
for Qualified Credit Rating Chaoyangmenne N/A Liang Ziqiu (027)87339288
Investors (Phase Co. Ltd. i Avenue
I) Dongcheng
District Beijing
Indicate by tick mark whether above intermediaries changed in the reporting period
□Yes □ No
2.4. List of the usage of the raised funds
Unit: CNY 10000
Bond Bond Total Stated Amount Actual Actual Unused Operation Rectificati Whether
1062025 Annual Report of Luzhou Laojiao Co. Ltd.
code abbreviati amount purpose spent use of use of amount of special on of is
on raised raised account raised consisten
funds funds by for raised funds for t with the
(classifie purpose funds (if violation usage
d by any) operation using
purpose (if any) plan and
excluding other
temporar agreeme
y nts
replenish stipulated
ment of in the
working raising
capital) specificati
on
Used for Used for
the the
Technical Technical
Renovati Renovati
on on
Project of Project of
Baijiu Baijiu
The
Productio Productio
Company
n (Phase n (Phase
has set
II) the II) the
up a
Project of Project of
special
Intelligent Intelligent
account
Upgradin Upgradin
to deposit
g and g and
the funds
Building Building
raised
of the of the
and has
Informati Informati
signed a
on on
Used for fund
Manage Manage
the account
ment ment
constructi supervisi
20 System System
149062.S 150498. on and on
Laojiao 150000 the the 7044.49 None Yes
Z 8 operation agreeme
01 Project of Project of
of nt to
Acquiring Acquiring
physical clarify it.Sealing Sealing
projects The
Equipme Equipme
special
nt for the nt for the
account
Cellar of Cellar of
for fund
Huangyi Huangyi
raising
Baijiu Baijiu
was
Productio Productio
operating
n Base n Base
normally
and the and the
during
Project of Project of
the
Acquiring Acquiring
reporting
Accessor Accessor
period.y y
Equipme Equipme
nt for nt for
Leaven Leaven
Making Making
for for
Huangyi Huangyi
1072025 Annual Report of Luzhou Laojiao Co. Ltd.
Baijiu Baijiu
Productio Productio
n Base n Base
The raised funds were used for construction project
□ Applicable □ N/A
Whether the net
income of the
project during the
reporting period
has decreased
by more than
Whether there
50% compared Changes in the
were any major
with the project's net
changes in the
disclosure in the income and
Project progress project during the Project changes
Bond prospectus or impact on the
Bond code and operational reporting period and procedure
abbreviation whether other issuer's solvency
benefits that may affect implementation
major adverse and investors'
the investment
changes that equity and
and use plan of
may affect the countermeasures
the raised funds
project's
operating
efficiency have
occurred during
the reporting
periodSee “16. Use of
149062.SZ 20 Laojiao 01 funds raised” in No N/A No N/A
Section V
The Company changed the usage of above funds raised from bonds during the reporting period.□ Applicable □ N/A
2.5. Changes in credit ratings in the reporting period
□ Applicable □ N/A
2.6. 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
1082025 Annual Report of Luzhou Laojiao Co. Ltd.
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
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. Matured interest-bearing debt excluding bonds at the period-end
□ Applicable □ N/A
7. Whether there was any violation of rules and regulations during the
reporting period
□ Yes □ No
8. 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 December 31 2025 December 31 2024 Change
Current ratio 3.86 3.56 8.43%
1092025 Annual Report of Luzhou Laojiao Co. Ltd.
Debt/asset ratio 23.00% 30.48% -7.48%
Quick ratio 2.53 2.6 -2.69%
2025 2024 Change
Net profits before non-
recurring gains and losses 1076003.88 1339951.47 -19.70%
EBITDA/debt ratio 232.33% 201.87% 30.46%
Interest cover (times) 94.04 60.6 55.18%
EBITDA-to-interest cover
(times) 99.08 63.32 56.48%
1102025 Annual Report of Luzhou Laojiao Co. Ltd.
Section VIII Financial Report
1. Auditor’s report
Type of audit report Standard without reserved opinion
Signing date of auditor’s report April 27 2026
Name of Audit ShineWing Certified Public Accountants
No. of auditor’s report XYZH/2026CDAA1B0421
Names of auditors Wang Xiaodong Ouyang Lihua
Auditor’s Report
To the shareholders of Luzhou Laojiao Co. Ltd.:
Opinion
We have audited the financial statements of Luzhou Laojiao Co. Ltd. (hereinafter referred to as the
“Company”) which comprise the consolidated balance sheet and balance sheet as at December 31
2025 consolidated income statement and income statement consolidated cash flow statement and
cash flow statement consolidated statement of changes in owners' equity and statement of changes in
owners' equity for the year then ended; and notes to the financial statements.In our opinion the attached financial statements are prepared in all material respects in accordance
with Accounting Standards for Business Enterprises and present fairly the financial position of the
company as at December 31 2025 and its operating results and cash flow for the year then ended.Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”) for Certified Public
Accountants. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the China Standards on Independence for Certified Public
Accountants and the independence requirements applicable to audits of financial statements of public
interest entities in the Code of Professional Ethics for Certified Public Accountants in China and we
have fulfilled our independence and other ethical responsibilities. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.Key audit matters
1112025 Annual Report of Luzhou Laojiao Co. Ltd.
Key audit matters are those matters that in our professional judgment were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in
the context of our audit of the consolidated financial statements as a whole and in forming our opinion
thereon and we do not provide a separate opinion on these matters.
1. Existence and completeness of cash and cash equivalents
Key audit matter Audit response
As of December 31 2025 the cash We performed the following audit procedures in response to the existence and
and cash equivalent balance of completeness of cash and cash equivalents:
Luzhou Laojiao was CNY 1. Understood tested and evaluated internal controls related to monetary fund
27341.5667 million accounting for management;
42.20% of total assets. Given the 2. Obtained a list of all bank accounts opened and compared it with Luzhou
significant balance and the large Laojiao’s accounting records to verify the completeness of bank accounts;
number of bank accounts the 3. Obtained bank statements and bank reconciliation statements conducted
security of deposits as well as the bank confirmations and controlled the confirmation process;
accuracy and completeness of 4. Performed inventory count procedures on time deposits and reviewed details
balances have a material impact on such as the holder of the time deposits;
the financial statements. Therefore 5. Obtained the enterprise credit report to examine whether there were any
we identified the existence and pledges mortgages or guarantees related to cash and cash equivalents;
completeness of cash and cash 6. Examined the accuracy and completeness of disclosures regarding cash and
equivalents as a key audit matter. cash equivalent balances and restrictions.Please refer to Item 5.1 under “5.Notes to the main items of theconsolidated financial statements” in
the notes to the financial statements.
2. Recognition of operating revenue
Key audit matter Audit response
Luzhou Laojiao’s operating revenue We performed the following key audit procedures in relation to the recognition of
for 2025 amounted to CNY operating revenue:
25731.0106 million which was the 1. Understood tested and evaluated the design and implementation
main source of the Company’s effectiveness of internal controls over the sales and collection cycle;
operating profit and a key 2. Inspected a sample of sales contracts to identify rights and obligations
performance indicator. Therefore we evaluated the timing of performance obligations and assessed whether
identified revenue recognition as a management’s judgments regarding the transfer of control complied with the
key audit matter. Please refer to Item Accounting Standards for Business Enterprises and the Company’s accounting
3.31 under “3. Significant accounting policies;policies and accounting estimates” 3. Performed analytical review procedures comparing current year salesand Item 5.38 under “5. Notes to the volume unit price gross margin and key customer metrics with prior-year datamain items of the consolidated to identify significant changes and assess their reasonableness;financial statements” in the notes to 4. Performed substantive testing on a sample of recorded operating revenue
the financial statements. transactions for the year inspecting supporting documents such as sales
contracts or orders warehouse dispatch orders delivery notes customer
acknowledgments sales invoices and reconciliation statements to assess the
authenticity and accuracy of revenue recognition;
5. Selected samples of sales transactions occurring near year-end and
inspected relevant supporting documents (including delivery notes or
documents confirming customer receipt) to evaluate whether revenue was
recognized in the appropriate accounting period;
6. In conjunction with contract liability audits conducted confirmation
procedures with a sample of major distributors to confirm revenue amounts and
contract liability balances validating the authenticity and accuracy of revenue
recognized by management;
7. Performed site visits to a sample of major distributors.
Other information
The directors of the Company are responsible for the other information. The other information
comprises the information included in the annual report but does not include the financial statements
and our auditor’s report thereon.
1122025 Annual Report of Luzhou Laojiao Co. Ltd.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the work we have performed we conclude that there is a material misstatement of this
other information we are required to report that fact. We have nothing to report in this regard.Responsibilities of directors and those charged with governance for the financial statements
The directors of the Company are responsible for the preparation of the financial statements that give a
true and fair view in accordance with the disclosure requirements of Accounting Standards for Business
Enterprises and designing implementing and maintaining internal control that is necessary to ensure
the financial statements are free from material misstatement whether due to fraud or error.In preparing the financial statements the directors are responsible for assessing the Company’s ability
to continue as a going concern disclosing as applicable matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the
aggregate they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgment and maintain
1132025 Annual Report of Luzhou Laojiao Co. Ltd.
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error as fraud may
involve collusion forgery intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and
based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or if such disclosures are inadequate to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However future events or conditions may cause the Company to cease to continue as a going
concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction supervision and performance of the group audit. We remain solely
responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide the governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and where applicable related
safeguards.
1142025 Annual Report of Luzhou Laojiao Co. Ltd.
From the matters communicated with the governance we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when in extremely rare circumstances we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.ShineWing Certified Public Accountants Chinese CPA: Wang Xiaodong
(Engagement Partner)
Beijing China Chinese CPA: Ouyang Lihua
April 27 2026
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 December 31 2025
Unit: CNY
Item Balance as at December 31 2025 Balance as at January 1 2025
Current assets:
Cash and cash equivalents 27341566698.37 33578396831.33
Settlement reserves
Lending funds
Held-for-trading financial assets 1584771959.37 1694282295.97
Derivative financial assets
Notes receivables
Accounts receivable 6075570.66 11022302.31
Accounts receivable financing 1466494973.96 1801947455.78
Prepayment 145596475.65 123870282.65
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 17318326.51 13053645.00
Including：Interests receivable
Dividends receivable
1152025 Annual Report of Luzhou Laojiao Co. Ltd.
Buying back the sale of financial
assets
Inventories 15396031707.35 13392794475.96
Including：Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 430459910.63 241081908.89
Total current assets 46388315622.50 50856449197.89
Non-current assets:
Disbursement of loans and advances
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2930804469.77 2801252317.93
Investments in other equity
instruments 475499237.90 407194706.55
Other non-current financial assets
Investment property 47892751.08 50246694.16
Fixed assets 8523891404.03 9131776915.51
Construction in progress 2064766283.24 807233988.90
Productive biological assets
Oil and gas assets
Use right assets 19863214.19 29254214.23
Intangible assets 3414065535.11 3417898796.19
Including：Data resources 2856611.80
Development expenses
Including：Data resources
Goodwill
Long-term deferred expenses 1034985.48 1756272.03
Deferred tax assets 264019980.93 424185093.04
Other non-current assets 664841367.04 407347368.15
Total non-current assets 18406679228.77 17478146366.69
Total assets 64794994851.27 68334595564.58
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 1413421175.80 1844497206.78
Advance from customer 2014696.36
Contract liabilities 3367443727.83 3978131528.88
Financial assets sold for repurchase
Deposits from customers and inter-
bank
1162025 Annual Report of Luzhou Laojiao Co. Ltd.
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee benefits payable 481722380.36 553580768.99
Taxes payable 1612884069.81 3233948597.08
Other payable 615753466.88 873595429.08
Including：Interests payable
Dividends payable 28163719.84 29668290.20
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
year 4074199213.05 3276628616.74
Other current liabilities 436920270.99 516729820.48
Total current liabilities 12004359001.08 14277111968.03
Non-current liabilities:
Insurance contract reserves
Long-term loans 2627166310.93 6279900000.00
Bonds payable
Including：Preferred shares
Perpetual bonds
Lease liabilities 15693190.61 24528519.13
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 82513945.77 86672726.83
Deferred tax liabilities 171180022.42 158375714.88
Other non-current liabilities
Total non-current liabilities 2896553469.73 6549476960.84
Total liabilities 14900912470.81 20826588928.87
Owners' equity
Share capital 1471941963.00 1471951503.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 5439328102.53 5365763566.55
Less: treasury stock 159634274.47 345699443.89
Other comprehensive income 143628853.52 84235115.38
Special reserves
Surplus reserves 1471941963.00 1471951503.00
General risk reserve
Undistributed profits 41413087028.16 39340298309.42
Total equity attributable to owners of
the parent company 49780293635.74 47388500553.46
Non-controlling interests 113788744.72 119506082.25
Total owners' equity 49894082380.46 47508006635.71
Total liabilities and owners' equity 64794994851.27 68334595564.58
1172025 Annual Report of Luzhou Laojiao Co. Ltd.
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Song Ying
Balance sheet of parent company
As at December 31 2025
Unit: CNY
Item Balance as at December 31 2025 Balance as at January 1 2025
Current assets:
Cash and cash equivalents 25751391606.26 26651132665.66
Held-for-trading financial assets 1484071959.37 1694282295.97
Derivative financial assets
Notes receivables
Accounts receivable 20408.90 14701.83
Accounts receivable financing
Prepayment 11492777.54 12888111.51
Other receivables 12687994073.65 14619833493.32
Including：Interests receivable
Dividends receivable
Inventories 832455.26 898380.40
Including：Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 326420192.60 172283759.93
Total current assets 40262223473.58 43151333408.62
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 6908843624.36 6735926560.88
Investments in other equity
instruments 475195316.27 406890784.92
Other non-current financial assets
Investment property 47892751.08 50246694.16
Fixed assets 831967244.40 866342467.75
Construction in progress 348549010.10 174069734.13
Productive biological assets
Oil and gas assets
Use right assets 118384.41
Intangible assets 828722903.00 770645637.66
Including：Data resources
Development expenses
Including：Data resources
Goodwill
1182025 Annual Report of Luzhou Laojiao Co. Ltd.
Long-term deferred expenses 341637.85
Deferred tax assets 93739377.83 124327561.74
Other non-current assets 576424111.73 215109132.46
Total non-current assets 10111334338.77 9344018595.96
Total assets 50373557812.35 52495352004.58
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 46523094.84 36143495.43
Advance from customer 925929.49
Contract liabilities 960049.10 3354639.36
Employee benefits payable 153536783.20 175075638.37
Taxes payable 6628201.64 94520857.23
Other payables 4345333587.91 2980878449.35
Including：Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
year 4064407192.04 3266940267.72
Other current liabilities 124806.38 436103.12
Total current liabilities 8618439644.60 6557349450.58
Non-current liabilities:
Long-term loans 2219000000.00 6279900000.00
Bonds payable
Including：Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 10374707.70 8714300.00
Deferred tax liabilities 94405983.06 82430689.59
Other non-current liabilities
Total non-current liabilities 2323780690.76 6371044989.59
Total liabilities 10942220335.36 12928394440.17
Owners' equity
Share capital 1471941963.00 1471951503.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 5435590744.65 5361333958.25
Less: treasury stock 159634274.47 345699443.89
Other comprehensive income 141260071.92 80803192.66
Special reserves
Surplus reserves 1471941963.00 1471951503.00
1192025 Annual Report of Luzhou Laojiao Co. Ltd.
Undistributed profits 31070237008.89 31526616851.39
Total owners' equity 39431337476.99 39566957564.41
Total liabilities and owners' equity 50373557812.35 52495352004.58
Consolidated income statement
Unit: CNY
Item Year 2025 Year 2024
1. Total operating revenue 25731010647.32 31196248208.33
Including: Operating revenue 25731010647.32 31196248208.33
Interest income
Earned premium
Fee and commission
income
2. Total operating costs 11272923807.24 13053488597.44
Including: Cost of sales 3441749582.69 3888116183.93
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 3927743376.52 4753755581.18
Selling and distribution
expenses 3237149369.15 3538382615.99
General and administrative
expenses 962421600.80 1100779964.56
Research and
Development expenses 215855671.81 260975311.10
Financial expenses -511995793.73 -488521059.32
Including：Interest
expenses 157503475.68 305448236.36
Interest income 678460704.26 797923434.30
Plus: Other income 52892626.52 43752551.73
Investment income ("-" for
losses) 125932324.35 -9892859.80
Including: income from
investment in associates and joint 156406734.29 106578492.71
ventures
Income from the
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Foreign exchange gains ("-"
for losses)
Net gain on exposure hedges
1202025 Annual Report of Luzhou Laojiao Co. Ltd.
(“-” for losses)
Gains from the changes in fairvalues(“-“ for losses) 7777112.49 27538639.60Credit impairment losses (“-”
for losses) 40376897.11 1632237.61Impairment losses(“-“ forlosses)
Gains from disposal of
assets("-" for losses) -534054.68 1058750.22
3. Operating profits ("-" for losses) 14684531745.87 18206848930.25
Plus: non-operating income 26849236.20 24229862.26
Less: non-operating expenses 57445245.74 25779973.47
4. Total profits before tax ("-" for
total losses) 14653935736.33 18205298819.04
Less: income tax expenses 3794025056.16 4707520248.15
5. Net profit ("-" for net loss) 10859910680.17 13497778570.89
5.1 By operating continuity
5.1.1 Net profit from continuing
operation ("-" for losses) 10859910680.17 13497778570.89
5.1.2 Net profit from discontinued
operation ("-" for losses)
5.2 By ownership
1) Attributable to shareholders of the
parent company 10830713936.14 13472986476.01
2) Attributable to non-controlling
interests 29196744.03 24792094.88
6. Net of tax from other
comprehensive income 58520654.18 21861927.17
Net of tax from other comprehensive
income to the owner of the parent 59390890.32 21195697.36
company
6.1 Other comprehensive income
that cannot be reclassified into the 51838868.58 3388621.68
profit and 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 610470.04 162693.33
profit and loss under equity method
3) Changes in fair value of
investments in other equity 51228398.54 3225928.35
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 7552021.74 17807075.68
and loss
1) Share in other comprehensive
income that will be classified into 8615162.86 16992055.15
profit and loss under equity method
2) Changes in fair value of
investments in other debt obligations
3) Other comprehensive income
1212025 Annual Report of Luzhou Laojiao Co. Ltd.
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 -1063141.12 815020.53
financial statements
7) Others
Net of tax from other comprehensive
income to non-controlling interests -870236.14 666229.81
7. Total comprehensive income 10918431334.35 13519640498.06
Total comprehensive income
attributable to owners of the parent 10890104826.46 13494182173.37
company
Total comprehensive income
attributable to non-controlling 28326507.89 25458324.69
interests
8. Earnings per share
(1) Basic earnings per share 7.36 9.18
(2) Diluted earnings per share 7.36 9.18
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Song Ying
Income statement of parent company
Unit: CNY
Item Year 2025 Year 2024
1. Operating revenue 10468626342.56 11090969698.38
Less: Cost of sales 8283201155.62 8454312608.86
Taxes and surcharges 67960017.50 74473268.61
Selling and distribution
expenses
General and administrative
expenses 834618423.13 929395807.24
Research and Development
expenses 112825918.52 109645034.10
Financial expenses -444414657.70 -458345168.33
Including：Interest expenses 156013095.03 304323204.07
Interest income 603991052.26 766784421.39
Plus: Other income 11200100.74 14051099.41
Investment income ("-" for
losses) 7111561304.79 9846935832.26
Including: income from
investment in associates and joint 153034503.91 74877362.33
ventures
Income from the
derecognition of financial assets at
amortized cost (“-” for losses)
1222025 Annual Report of Luzhou Laojiao Co. Ltd.
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fairvalues(“-“ for losses) 7077112.49 27528769.00Credit impairment losses (“-” for
losses) 40016580.67 287004.41
Asset impairment losses (“-” for
losses)
Gains from disposal of assets("-"
for losses) 19262.03 1177426.76
2. Operating profits ("-" for losses) 8784309846.21 11871468279.74
Plus: non-operating income 22656906.87 17436206.22
Less: non-operating expenses 40159532.84 20162234.74
3. Total profits before tax ("-" for
total losses) 8766807220.24 11868742251.22
Less: income tax expenses 465261845.34 570243254.91
4. Net profit ("-" for net loss) 8301545374.90 11298498996.31
4.1 Net profit from continuing
operation ("-" for losses) 8301545374.90 11298498996.31
4.2 Net profit from discontinued
operation ("-" for losses)
5. Net of tax from other
comprehensive income 60454031.44 20380676.83
5.1 Other comprehensive income
that cannot be reclassified into the 51838868.58 3388621.68
profit and 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 610470.04 162693.33
profit and loss under equity method
3) Changes in fair value of
investments in other equity 51228398.54 3225928.35
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 8615162.86 16992055.15
and loss
1) Share in other comprehensive
income that will be classified into 8615162.86 16992055.15
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
1232025 Annual Report of Luzhou Laojiao Co. Ltd.
7) Others
6. Total comprehensive income 8361999406.34 11318879673.14
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
Consolidated statement of cash flows
Unit: CNY
Item Year 2025 Year 2024
1. Cash flows from operating
activities
Cash received from sale of goods
and rendering of services 27777276141.94 40036206060.66
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 9025614.40 8746142.49
Cash received from other operating
activities 734568847.34 969333056.82
Subtotal of cash inflows from
operating activities 28520870603.68 41014285259.97
Cash paid for goods purchased and
services received 5530412116.98 5963558109.59
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
1242025 Annual Report of Luzhou Laojiao Co. Ltd.
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees 1331071043.16 1313523728.57
Cash paid for taxes and surcharges 12094908635.30 12329320329.48
Cash paid for other operating
activities 2441260130.36 2226114728.68
Subtotal of cash outflows from
operating activities 21397651925.80 21832516896.32
Net cash flows from operating
activities 7123218677.88 19181768363.65
2. Cash flows from investing
activities
Cash received from disposal of
investments 2220118349.64 2190773011.55
Cash received from returns on
investments 74668176.18 75373409.80
Net cash received from disposal of
fixed assets intangible assets and 1978040.76 11432852.36
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 2296764566.58 2277579273.71
Cash paid to acquire and construct
fixed assets intangible assets and 1932762969.97 1188370866.64
other long-term assets
Cash paid for investments 2100000000.00 2471700000.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities 14339.62
Subtotal of cash outflows from
investing activities 4032762969.97 3660085206.26
Net cash flows from investing
activities -1735998403.39 -1382505932.55
3. Cash flows from financing
activities
Cash received from investors 79496.11
Including: cash received by
subsidiaries from investments by 79496.11
minority shareholders
Cash received from borrowings 408166310.93 2000000000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 408166310.93 2000079496.11
Cash paid for debt repayments 3220200000.00 4025200000.00
Cash paid for distribution of
dividends and profits or payment of 8998017228.32 8283493371.53
interest
Including: dividends and profits paid 36240666.20 29684819.82
1252025 Annual Report of Luzhou Laojiao Co. Ltd.
to minority shareholders by
subsidiaries
Cash paid for other financing
activities 10067985.97 20239162.26
Subtotal of cash outflows from
financing activities 12228285214.29 12328932533.79
Net cash flows from financing
activities -11820118903.36 -10328853037.68
4. Effect of fluctuation in exchange
rate on cash and cash equivalents -9675423.77 4229343.18
5. Net increase in cash and cash
equivalents -6442574052.64 7474638736.60
Plus: balance of cash and cash
equivalents at the beginning of the 33367668014.46 25893029277.86
period
6. Balance of cash and cash
equivalents at the end of the 26925093961.82 33367668014.46
period
Cash flow statements of parent company
Unit: CNY
Item Year 2025 Year 2024
1. Cash flows from operating
activities
Cash received from sale of goods
and rendering of services 11827966876.39 12533904242.20
Refunds of taxes and surcharges
Cash received from other operating
activities 3967155459.09 839554176.00
Subtotal of cash inflows from
operating activities 15795122335.48 13373458418.20
Cash paid for goods purchased and
services received 9348176447.33 8190445319.94
Cash paid to and on behalf of
employees 463679655.26 456045492.39
Cash paid for taxes and surcharges 1005272592.54 1111830751.18
Cash paid for other operating
activities 471921959.62 446783054.68
Subtotal of cash outflows from
operating activities 11289050654.75 10205104618.19
Net cash flows from operating
activities 4506071680.73 3168353800.01
2. Cash flows from investing
activities
Cash received from disposal of
investments 2220118349.64 2190773011.55
Cash received from returns on
investments 7013919266.56 9836384328.88
Net cash received from disposal of
fixed assets intangible assets and 115575.89 10363496.03
other long-term assets
Net cash received from disposal of
1262025 Annual Report of Luzhou Laojiao Co. Ltd.
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities 9234153192.09 12037520836.46
Cash paid to acquire and construct
fixed assets intangible assets and 652780256.66 212817179.55
other long-term assets
Cash paid for investments 2012000000.00 2460000000.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
investing activities 2664780256.66 2672817179.55
Net cash flows from investing
activities 6569372935.43 9364703656.91
3. Cash flows from financing
activities
Cash received from investors
Cash received from loans 2000000000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 2000000000.00
Cash paid for debt repayments 3220200000.00 4025200000.00
Cash paid for distribution of
dividends and profits or payment of 8961426685.20 8253808551.71
interest
Cash paid for other financing
activities 704920.14 3253410.81
Subtotal of cash outflows from
financing activities 12182331605.34 12282261962.52
Net cash flows from financing
activities -12182331605.34 -10282261962.52
4. Effect of fluctuation in exchange
rate on cash and cash equivalents -592809.45 327855.29
5. Net increase in cash and cash
equivalents -1107479798.63 2251123349.69
Plus: balance of cash and cash
equivalents at the beginning of the 26476599296.11 24225475946.42
period
6. Balance of cash and cash
equivalents at the end of the 25369119497.48 26476599296.11
period
Consolidated statement of changes in owners' equity
For the year ended December 31 2025
Unit: CNY
Year 2025
Item Equity attributable to owners of the parent company Non- Total
Shar Other equity Capit Less Othe Spec Surpl Gene Undi Othe Subt contr owne
e instruments al ： r ial us ral strib r otal ollin rs'
1272025 Annual Report of Luzhou Laojiao Co. Ltd.
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Bala
nce
as at 1471 5365 1471 3934 4738 4750
Janu 3456 8423 1195
ary 1 951 763 951 0298 8500 80069944 5115 0608
of 503.0 566.5 503.0 309. 553. 635.the 3.89 .38 2.250 5 0 42 46 71
curre
nt
year
3.Inc
reas
es/de
crea
ses
in - 2072 2391 - 2386
the - 7356 5939 -
curre 1860 788 793 5717 0759540 4535 3738 9540
nt 6516 718.7 082.2 337. 744.7
perio .00 .98 .14 .009.42 4 8 53 5
d (“-”
for
decr
ease
s)
(1)
Total 1083 1089 1091
comp 5939 28320713 0104 8431
rehen 0890 6507
sive 936. 826. 334.inco .32 .8914 46 35
me
(2)-7379-259869222605
1282025 Annual Report of Luzhou Laojiao Co. Ltd.
Capit 9540 2361 1860 4799 50.42 4024
al
contri .00 .99 6516 1.41 1.83
buted 9.42
or
reduc
ed by
owne
rs
Capit
al -
contri - - 1689 16891698
butio 9540 8749 1957 1957
ns by 0403
owne .00 13.40 6.96 6.960.36
rs
Capit
al
contri
butio
ns by
other
equit
y
instru
ment
s
holde
rs
Amo
unts
of
share
-
base
d -7466 9092 9162
paym 1626 6922
ents 7275 8414 06641139 50.42
recog .39 .45 .87
nized .06
in
owne
rs'
equit
y
Other
s
---
(3)-
Profit - 8757 8757 8792
distri 34739540 922 931 668
butio 6095
n .00 369.5 909.5 005.4.84
882
Withd
rawal
of - 9540
surpl 9540
us .00
reser .00
ves
Withd
rawal
of
gener
al
risk
reser
ve
Profit
distri - - --
buted 8757 8757 8792
to 3473
owne 931 931 6686095
rs (or 909.5 909.5 005.4
share .848 8 2
holde
1292025 Annual Report of Luzhou Laojiao Co. Ltd.
rs)
Other
s
(4)
Intern
al
carry- -
forwa 2847
rd of 2847.82
owne .82
rs'
equit
y
Conv
ersio
n of
capit
al
reser
ves
into
paid-
in
capit
al
Conv
ersio
n of
surpl
us
reser
ves
into
paid-
in
capit
al
Surpl
us
reser
ves
offset
ting
losse
s
Carry
-
forwa
rd of
retain
ed
earni
ngs
from
chan
ges
in
defin
ed
benef
it
plans
Carry
-
forwa
rd of
retain
ed
earni -2847
ngs 2847
from .82
other .82
comp
rehen
sive
inco
me
1302025 Annual Report of Luzhou Laojiao Co. Ltd.
Other
s
(5)
Speci
al
reser
ves
Withd
rawal
for
the
perio
d
Use
for
the
perio
d
(6)---
Other 2278 2278 2278
s 26.01 26.01 26.01
4.
Bala
nce
as at 1471 5439 1471 4141 4978 4989
Dece 1596 1436 1137
mber 941 328 941 3087 0293 40823427 2885 8874
31 of 963.0 102.5 963.0 028. 635. 380.
the 4.47 3.52 4.720 3 0 16 74 46
curre
nt
year
For the year ended December 31 2024
Unit: CNY
Year 2024
Equity attributable to owners of the parent company
Other equity Othe Non-
instruments Less r contr Total
Item Shar Capit ： Com Spec Surpl Gene Undi ollin owne
e Prefe al Trea preh ial us
ral strib Othe Subt g rs'
capit riskrred Perpetual Othe
reser sury ensiv reser reser reser uted r otal inter
equit
al stoc r ve stoc e ve ve profitbond ests
y
k k Inco
ve
me
1.
Bala
nce 1471 5185 1471 3381 4139 4153
as at 6167 6313 1402
Dece 987 481 987 5566 1410 17074361 0469 9723
mber 769.0 523.2 769.0 574. 494. 729.
31 of 0.59 .51 4.960 2 0 75 89 85
last
year
Plus:
adjus
tment
s for
chan
ges
in
acco
untin
g
polici
es
Adjus
tment
s for
corre
ction
1312025 Annual Report of Luzhou Laojiao Co. Ltd.
of
acco
untin
g
error
s in
prior
year
Other
s
2.
Bala
nce
as at 1471 5185 1471 3381 4139 4153
Janu 6167 6313 1402
ary 1 987 481 987 5566 1410 17074361 0469 9723
of 769.0 523.2 769.0 574. 494. 729.the 0.59 .51 4.960 2 0 75 89 85
curre
nt
year
3.Inc
reas
es/de
crea
ses
in - 5524 5997 - 5976
the - 1802 2110 -
curre 2710 731 090 2079 2983626 8204 4645 3626
nt 4416 734.6 058.5 1152 905.8
perio 6.00 3.33 .87 6.006.70 7 7 .71 6
d (“-”
for
decr
ease
s)
(1)
Total 1347 1349 1351
comp 2119 25452986 4182 9640
rehen 5697 8324
sive 476. 173. 498.inco .36 .6901 37 06
me
(2)
Capit
al
contri - -- 1802 4512 4347
buted 2710 1658
or 3626 8204 8994 08754416 1187
reduc 6.00 3.33 4.03 6.84
ed by 6.70 .19
owne
rs
Capit
al - -
contri - 2436 24373325 2470 7960
butio 3626 5174 3134
ns by 954. 1396 4.28
owne 6.00 2.33 6.6186 3.19
rs
Capit
al
contri
butio
ns by
other
equit
y
instru
ment
s
holde
rs
Amo 1836 - 2076 1744 2093
unts
of 0799 2403 3820 033. 8223
1322025 Annual Report of Luzhou Laojiao Co. Ltd.
share 8.19 0203 1.70 28 4.98
-
base .51
d
paym
ents
recog
nized
in
owne
rs'
equit
y
--
Other 1840 1840
s 4824 4824.75.75
---
(3)-
Profit - 7948 7948 7978
distri 29663626 345 382 050
butio 8290
n 6.00 792.8 058.8 349.0.21
334
Withd
rawal
of - 3626
surpl 3626
us 6.00
reser 6.00
ves
Withd
rawal
of
gener
al
risk
reser
ve
Profit
distri - - -
buted -
to 7948 7948 79782966
owne 382 382 050
rs (or 8290
share 058.8 058.8 349.0.21
holde 3 3 4
rs)
Other
s
(4)
Intern
al
carry- -
forwa 9105
rd of 9105 1.49
owne 1.49
rs'
equit
y
Conv
ersio
n of
capit
al
reser
ves
into
paid-
in
capit
al
Conv
ersio
n of
1332025 Annual Report of Luzhou Laojiao Co. Ltd.
surpl
us
reser
ves
into
paid-
in
capit
al
Surpl
us
reser
ves
offset
ting
losse
s
Carry
-
forwa
rd of
retain
ed
earni
ngs
from
chan
ges
in
defin
ed
benef
it
plans
Carry
-
forwa
rd of
retain
ed
earni - 9105
ngs 9105
from 1.49
other 1.49
comp
rehen
sive
inco
me
Other
s
(5)
Speci
al
reser
ves
Withd
rawal
for
the
perio
d
Use
for
the
perio
d
(6)
Other
s
4.
Bala 1471 5365 1471 3934 4738 47503456 8423 1195
nce 951 763 951 0298 8500 8006
as at 9944 5115 0608503.0 566.5 503.0 309. 553. 635.Dece 3.89 .38 2.25
mber 0 5 0 42 46 71
1342025 Annual Report of Luzhou Laojiao Co. Ltd.
31 of
the
curre
nt
year
Statement of changes in owners' equity of parent company
For the year ended December 31 2025
Unit: CNY
Year 2025
Other equity instruments Other
Capital Less： Compr Specia SurpluItem Share Undistr TotalPreferr Perpet
capital reserv
Treasu ehensi l s ibuted Other owners
ed ual Other e ry ve reserv reserv profit ' equity
stock bond stock Incom e e
e
1.
Balanc
e as at 14719 53613 34569 14719 31526 39566
Decem 8080351503. 33958. 9443.8 51503. 61685 95756
ber 31 192.66
of last 00 25 9 00 1.39 4.41
year
Plus:
adjust
ments
for
change
s in
accoun
ting
policies
Adjust
ments
for
correcti
on of
accoun
ting
errors
in prior
year
Others
2.
Balanc
e as at 14719 53613 34569 14719 31526 39566
Januar 80803
y 1 of 51503. 33958. 9443.8 51503. 61685 95756192.66
the 00 25 9 00 1.39 4.41
current
year
3.Incre
ases/d
ecreas
es in - - -- -
the 74256 18606 60456 45637 13562
current 9540.0 9540.0786.40 5169.4 879.26 9842.5 0087.4
period 0 0
(“-” for 2 0 2
decrea
ses)
(1)
Other 83015 8361960454
compre 45374. 99406.hensive 031.44
income 90 34
1352025 Annual Report of Luzhou Laojiao Co. Ltd.
(2)
Capital -
contrib - 2605474484 18606
uted or 9540.0 0241.8
reduce 612.41 5169.4
d by 0 32
owners
Capital -
contrib - - 1689116980
utions 9540.0 87491 9576.9
by 4030.3
owners 0 3.40 66
Capital
contrib
utions
by
other
equity
instrum
ents
holders
Amount
s of
share-
based -
payme 75359 91620
nts 16261525.81 664.87
recogni 139.06
zed in
owners'
equity
Others
(3)---
Profit 87579 87579
distribu 9540.0 22369. 31909.tion 0
5858
Withdra
wal of - 9540.0
surplus 9540.0
reserve 0
s 0
Profit
distribu - -
ted to 87579 87579
owners
(or 31909. 31909.shareh 58 58
olders)
Others
(4)
Internal
carry- -2847.8
forward 2847.8
of 2
owners' 2
equity
Conver
sion of
capital
reserve
s into
paid-in
capital
Conver
sion of
surplus
reserve
s into
paid-in
capital
Surplus
reserve
s
1362025 Annual Report of Luzhou Laojiao Co. Ltd.
offsetti
ng
losses
Carry-
forward
of
retaine
d
earning
s from
change
s in
defined
benefit
plans
Carry-
forward
of
retaine
d -2847.8
earning 2847.8
s from 2
other 2
compre
hensive
income
Others
(5)
Special
reserve
s
Withdra
wal for
the
period
Use for
the
period
--
(6)
Others 22782 22782
6.016.01
4.
Balanc
e as at 14719 54355 15963 14126 14719 31070 39431
Decem
ber 31 41963. 90744. 4274.4 0071.9 41963. 23700 33747
of the 00 65 7 2 00 8.89 6.99
current
year
For the year ended December 31 2024
Unit: CNY
Year 2024
Other equity instruments Other
Capital Less： Compr Specia SurpluItem Share Treasu ehensi l s Undistr TotalPreferr Perpet
capital reserv ry ve reserv reserv ibuted Other ownersed ual Other e
stock bond stock Incom e e
profit ' equity
e
1.
Balanc
e as at 14719 51793 61674 14719 28176 35743
Decem 6051387769. 07881. 3610.5 87769. 37259 42597
ber 31 567.32
of last 00 60 9 00 6.42 2.75
year
Plus:
adjust
ments
for
change
1372025 Annual Report of Luzhou Laojiao Co. Ltd.
s in
accoun
ting
policies
Adjust
ments
for
correcti
on of
accoun
ting
errors
in prior
year
Others
2.
Balanc
e as at 14719 51793 61674 14719 28176 35743
Januar 60513
y 1 of 87769. 07881. 3610.5 87769. 37259 42597567.32
the 00 60 9 00 6.42 2.75
current
year
3.Incre
ases/d
ecreas
es in -- 18202 - 33502 38235
the 27104 20289
current 36266. 6076.6 36266. 44254. 31591.4166.7 625.34
period 00 5 00 97 66
(“-” for 0
decrea
ses)
(1)
Other 11298 1131820380
compre 49899 87967
hensive 676.83
income 6.31 3.14
(2)
Capital -
contrib - 18202 4530327104
uted or 36266. 6076.6 3977.3
reduce 4166.7
d by 00 5 50
owners
Capital -
contrib - - 24349
utions 2468536266. 33259 2906.5
by 5127.4
owners 00 54.86 84
Capital
contrib
utions
by
other
equity
instrum
ents
holders
Amount
s of
share-
based 18535 - 20954
payme
nts 2031.5 24189 1070.7
recogni 1 039.26 7
zed in
owners'
equity
Others
(3)---
Profit 79483 79483
distribu 36266. 45792. 82058.tion 00
8383
1382025 Annual Report of Luzhou Laojiao Co. Ltd.
Withdra
wal of - 36266.surplus 36266.reserve 00
s 00
Profit
distribu - -
ted to 79483 79483
owners
(or 82058. 82058.shareh 83 83
olders)
Others
(4)
Internal
carry- - 91051.forward 91051.of 49
owners' 49
equity
Conver
sion of
capital
reserve
s into
paid-in
capital
Conver
sion of
surplus
reserve
s into
paid-in
capital
Surplus
reserve
s
offsetti
ng
losses
Carry-
forward
of
retaine
d
earning
s from
change
s in
defined
benefit
plans
Carry-
forward
of
retaine
d - 91051.earning 91051.s from 49
other 49
compre
hensive
income
Others
(5)
Special
reserve
s
Withdra
wal for
the
period
Use for
the
1392025 Annual Report of Luzhou Laojiao Co. Ltd.
period
(6)
Others
4.
Balanc
e as at 14719 53613 34569 14719 31526 39566
Decem 80803
ber 31 51503. 33958. 9443.8 51503. 61685 95756192.66
of the 00 25 9 00 1.39 4.41
current
year
3. Company Profile
3.1. Company Overview
Luzhou Laojiao Co. Ltd. (hereinafter referred to as "Company" or "the Company") formerly known as
Luzhou City Qu Liquor Factory and Luzhou Laojiao Distillery in Sichuan Province. It was established in
March 1950 on the basis of 36 baijiu workshops from the Ming and Qing dynasties. On September 20
1993 Luzhou Laojiao distillery established a joint-stock limited company with fund-raising exclusively
from its operational assets. On October 25 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 May 9 1994.As at December 31 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 October 27 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 at February 27 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 May 19 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 September 3 2009 the 300000000 shares and the 280000000 shares held by SASAC of Luzhou
1402025 Annual Report of Luzhou Laojiao Co. Ltd.
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 June 6 2012 to November 20 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 April 10 2014 and July 18 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 August 23 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
December 2015. After share reduction Laojiao Group XingLu Group and SASAC of Luzhou held
381088389 shares 365971142 shares and 1111930 shares respectively in the Company 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 was 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 that had been granted to the aforesaid awardees but remained in lockup; in December
2022 the Company granted 92669 shares of the Restricted Share Incentive Plan for the third time.
From December 2023 to June 2024 Luzhou Laojiao Group Co. Ltd. through its wholly-owned
subsidiary Sichuan Golden Rudder Investment Co. Ltd. increased its holdings in the Company by
1140200 shares through call auction trading accounting for 0.08% of the total share capital of the
Company. Following that Luzhou Laojiao Group Co. Ltd. and Sichuan Golden Rudder Investment Co.Ltd. collectively held 382228589 shares in the Company.In January June and September 2024 as five awardees were no longer eligible for the incentives the
Company decided to repurchase and retire a total of 36266 restricted shares that had been granted to
the aforesaid awardees but remained in lockup. As of December 31 2024 the repurchase and
retirement of the said restricted shares had been completed the total shares of the Company changed
to 1471951503 shares.
1412025 Annual Report of Luzhou Laojiao Co. Ltd.
From March to September 2025 Laojiao Group increased its holdings in the Company by 2345250
shares through call auction trading representing 0.16% of the Company's total share capital. Upon that
Laojiao Group held 383433639 shares in the Company.In April and November 2025 as three awardees were no longer eligible for the incentives the Company
decided to repurchase and retire a total of 9540 restricted shares that had been granted to the
aforesaid awardees but remained in lockup. As of December 31 2025 the repurchase and retirement
of the said restricted shares had been completed and the grants and repurchases under the restricted
share incentive plan did not lead to change of the Company’s controlling shareholder or actual
controller.As of December 31 2025 the total number of shares of the Company was 1471941963. Laojiao
Group its wholly-owned subsidiary Sichuan Golden Rudder Investment Co. Ltd. and XingLu Group
held 383433639 shares 1140200 shares and 365971142 shares in the Company respectively
representing shareholding percentages of 26.05% 0.08% and 24.86% respectively; and Laojiao
Group held a total of 50.99% of the Company's voting rights.
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 principal operations 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 The name of the controlling shareholder and the ultimate substantive controller
The controlling shareholder of the Company is Laojiao Group; and the ultimate substantive controller is
SASAC of Luzhou.
3.5 Approval of the financial statements
The financial statements have been approved for issue by the Board of Directors of the Company on
April 27 2026. In accordance with the Company's Articles of Association the financial statements will
be submitted to a meeting of shareholders for review.
1422025 Annual Report of Luzhou Laojiao Co. Ltd.
4. Basis of preparation of financial statements
4.1. Basis of preparation of financial statements
The Company has prepared its financial statements on a going concern basis and the preparation is
based on actual transactions and events in compliance with Accounting Standards for Business
Enterprises and relevant guidance and explanation (hereinafter referred to as 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 (2023 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 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 Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
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 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 2023.
5.2 Accounting period
The Company adopts the calendar year as its accounting year i.e. from January 1 to December 31.
5.3 Business Cycle
The Company’s business cycle is 12 months.
1432025 Annual Report of Luzhou Laojiao Co. Ltd.
5.4 Functional currency
The Company has adopted China Yuan (CNY) as functional currency.
5.5 Methods for determining materiality standards and selection criteria
□Applicable □ N/A
Item Materiality standard
Material receivables withdrawal of bad debt
provision separately accrued
Material bad debt provision recovered or
reversed in accounts receivable The carrying balance at the end of the Reporting
Significant write-off of accounts receivable Period ≥ CNY 5 million
Significant prepayments aging over one year
accounts payable contract liabilities and other
payables
Single project under construction with a budget
Material construction in progress exceeding CNY 150 million and a total amountaccounted for the current period exceeding CNY
50 million
The overseas operating entities' external revenue
Material overseas operating entity accounts for ≥ 3% of the consolidated operatingrevenue and the total profit accounts for ≥ 0.5%
of the consolidated total profit
The revenue of non-wholly-owned subsidiaries
Material non-wholly-owned subsidiary accounts for ≥ 3% of the consolidated operatingrevenue and the total profit accounts for ≥ 0.5%
of the consolidated total profit
The book value of long-term equity investments
Significant associated enterprise in associated enterprises accounts for ≥ 3% ofthe total assets in the consolidated financial
statements
5.6 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.
1442025 Annual Report of Luzhou Laojiao Co. Ltd.
(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 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.
5.7 Criteria for judging control and 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
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 statements the Company considers the whole Company as an accounting entity
adopts unified accounting policies and applies the requirements of ASBE related to recognition
measurement and presentation to reflect the Company’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.
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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.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 combination 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 be written 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
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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
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 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
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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 resulting 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 acquired shareholding
proportion 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.* 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.
5.8 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:
* 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.
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* 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.* 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:
* Its solely-held assets and its share of any assets held jointly;
* Its solely-assumed liabilities and its share of any liabilities incurred jointly;
* Its revenue from the sale of its share of the output arising from the joint operation;
* Its share of the revenue from sale of the output by the joint operation; and
* Its solely-incurred expenses and its share of any expenses incurred jointly.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.
5.9 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.
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5.10 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
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 systematic 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.
5.11 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.
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(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.* Financial assets measured at amortized cost
The business model in which the Company manages financial assets measured at amortized cost aims
to receive contract cash flow. Furthermore the characteristics of the contract cash flow of such financial
assets are consistent with basic borrowing and lending arrangements which means that cash flow
generated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial assets 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.* 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.* Financial assets measured at fair value with their changes included into current profits/losses
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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.* Financial liabilities measured at fair value with their changes included into current profits/losses
Financial liabilities measured at fair value with their changes included into current profits/losses include
trading financial liabilities (including derivatives classified as financial liabilities) and the financial
liabilities specified to be measured at fair value with their changes included into current profits/losses at
the initial recognition.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.
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* 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 have 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
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
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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
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
1542025 Annual Report of Luzhou Laojiao Co. Ltd.
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 makes
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.
(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 their 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
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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.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.
5.12 Notes receivable
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
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 receivable
5.13 Accounts receivable
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
As for accounts receivable 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
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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 receivable 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 intercompany funds among the Company and businesses under
common control the recovery of which is controllable with no risks. Thus no bad debt provision was
made.The aging calculation method of credit risk characteristic portfolio based on aging:
The Company combines the accounts receivable 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
future economic situation consulting historical credit loss experience. The comparative table of the
credit loss rate is as follows:
Ageing 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
The ageing of accounts receivable is calculated from the month in which the amounts are actually
incurred.
5.14 Accounts receivable financing
The accounts receivable financing of the Company refer to the notes receivables measured at fair value
1572025 Annual Report of Luzhou Laojiao Co. Ltd.
through other comprehensive income on the balance sheet date. For more details see Note 5.11
Financial instruments.
5.15 Other receivables
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
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 intercompany funds among the Company and businesses under
common control the recovery of which is 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 and 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.
1582025 Annual Report of Luzhou Laojiao Co. Ltd.
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 receivable 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 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 acquiring and dispatching 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) Determining criteria 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
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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
value.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Packing materials and low-cost consumables are amortized in full at once.
5.18 Assets held for sale
(1) Determining criteria for 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 which the Company is unable to control leading to the transactions
not completed with non-related party within one year and the Company still commits to selling 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 sets sale extension conditions. 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-satisfies 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) Accounting treatment of non-current assets or disposal groups held for sale
* Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
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at balance sheet date subsequently the impairment loss should be recognized if the book value is
higher than fair value less costs to sell by the amount of the difference between 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
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.* 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.* Recognition criteria and presentation of discontinued operations
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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;
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. 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:
* Dispatch representatives to the board of directors or similar authorities of the investee.* To participate in the financial and business policy making process of the investee.* Significant transactions with the investee.* Dispatch management personnel to the investee.* To provide key technical data to the investee.
(2) Determination of the initial investment cost
* Long-term equity investment resulting from combination
1622025 Annual Report of Luzhou Laojiao Co. Ltd.
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.* 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.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.
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(3) Subsequent measurement and recognition of profit and loss
* 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.* 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 income 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
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.
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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.
5.20. 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 for rent
land use right held for appreciation and then sold and buildings for 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
with the accounting policies for the Company's fixed assets or intangible assets.
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If there is solid evidence that 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.
5.21. 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
Category Depreciation Estimated useful
Estimated Annual
method life (Year) residual value depreciation raterate (%) (%)
Buildings and Straight-line
Constructions 10－45 5% 9.50%－2.11%
method
Special Straight-line
equipment 5－35 5% 19.00%－2.71%
method
Universal Straight-line
equipment 4－25 5% 23.75%－3.80%method
Transportation Straight-line
equipment 6 5% 15.83%
method
Other equipment Straight-linemethod 4－16 5% 23.75%－5.94%
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.
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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 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) 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.
5.22. 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
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.
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(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. 23. 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
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.
1682025 Annual Report of Luzhou Laojiao Co. Ltd.
(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) Suspension of capitalization 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) Cessation of capitalization 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.
5.24. Intangible assets
(1) Useful life and the basis for its determination estimation amortization methodology or
review procedures
Intangible assets refer to identifiable non-monetary assets that are owned or controlled by the Company
without a physical form. The Company’s intangible assets consist of land use rights software
trademark use rights patent rights and data resources.* 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
1692025 Annual Report of Luzhou Laojiao Co. Ltd.
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.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.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 the differences that should be capitalized during the credit period.* Useful life and the basis for its determination estimation amortization methodology or review
procedures
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.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.
1702025 Annual Report of Luzhou Laojiao Co. Ltd.
* Impairment test
On the balance sheet date intangible assets are valued at the lower of book value and recoverable
amount.
(2) The scope of research and development expenditure collection and the related accounting
treatment
The R&D expenditure of the Company mainly include the materials consumed in the implementation of
R&D activities salaries of R&D department employees depreciation and amortization of assets such as
equipment and software used in research and development R&D testing R&D technical service fees
and licensing fees.The expenditures incurred in the development stage of the 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.* It is technically feasible to finish intangible assets for use or sale;
* It is intended to finish and use or sell the intangible assets;
* 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;
* 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.* 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.
5.25. 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
1712025 Annual Report of Luzhou Laojiao Co. Ltd.
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.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.
1722025 Annual Report of Luzhou Laojiao Co. Ltd.
5.26. 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.
5.27. 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.
5.28. 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
* 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.* 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 which the employee provides the service into the current profit and loss or the relevant assets
1732025 Annual Report of Luzhou Laojiao Co. Ltd.
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.
(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.
1742025 Annual Report of Luzhou Laojiao Co. Ltd.
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.
5.29. 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
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 the 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.
1752025 Annual Report of Luzhou Laojiao Co. Ltd.
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.
5.30. 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 to 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
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.
1762025 Annual Report of Luzhou Laojiao Co. Ltd.
(4) Relevant accounting treatment of implementation 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 the corresponding services obtained unless
it cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
5.31. Revenue
Accounting policies for recognition and measurement of revenue disclosed by type of business
(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
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 is performed within a certain period of time the Company will
identify revenue within a period of time according to the performance progress: 1) The customers obtain
and consume the economic profits while the Company performs the contract. 2) The customers can
control the products under construction during the performance of the Company; 3) 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.
1772025 Annual Report of Luzhou Laojiao Co. Ltd.
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. 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 primarily sells baijiu which involve performance obligations fulfilled at a certain point in
time. For the recognition of the revenue of domestic products the following conditions must be met:
The Company has delivered the products to the customer as per the contract and the customer has
accepted the goods; payment has been received or a receipt voucher has been obtained and the
relevant economic benefits are likely to flow in; and control of the goods has transferred to the customer.The following requirements must be met to recognise the revenue of export products: The Company
has declared the products according to the contract obtained the bill of lading received the payment or
obtained the receipt voucher and relevant economic benefits are likely to flow in and control of the
goods has transferred to the customer. The following requirements must be met to recognise the
revenue of sales through third-party platforms or company-owned websites: The sales platform is
responsible for delivering the goods to the customer or the Company entrusts a logistics company to
deliver the goods to the customer and revenue is recognised upon receipt of the platform settlement
statement or upon delivery of the goods.Different business models for the same type of business involve different revenue recognition and
measurement methods
N/A
5.32. 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.
1782025 Annual Report of Luzhou Laojiao Co. Ltd.
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 same basis
as 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 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.
5.33. 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
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 commencement
of depreciation or amortization when the relevant assets have reached 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;
1792025 Annual Report of Luzhou Laojiao Co. Ltd.
Accounting method:
* 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 against the
related costs when the relevant expenses losses are recognized.* 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.* 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.* 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.
5.34. 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:
(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.Basis for deferred income tax assets and deferred income tax liabilities presented as a net amount after
offset:
1802025 Annual Report of Luzhou Laojiao Co. Ltd.
When the following conditions are simultaneously met deferred income tax assets and deferred income
tax liabilities are presented as a net amount after offset:
(1) The enterprise has the legal right to settle the current income tax assets and current income tax
liabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities were related to the income tax levied
by the same tax administration department on the same taxpayer or different taxpayers but during the
period when each significant deferred income tax assets and liabilities would be reversed in the future
the involved taxpayer intended to settle the current income tax assets and liabilities on a net basis or to
acquire assets and settle liabilities at the same time.
5.35. Lease
(1) Accounting treatment with the Company as lessee
* Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as
a lessee for simplified treatment
On the commencement date of the lease term the Company will recognize the lease with a lease term
not exceeding 12 months and exclude the purchase option as a short-term lease. Leases with a value
below CNY 40000 when a single leased asset is a brand-new asset are identified as low-value asset
leases. If the Company sublets or expects to sublet the leased assets the original lease shall not be
deemed as a low-value asset lease.The Company records the payments of short-term and low-value asset leases incurred during each
period of the lease term in the relevant asset costs or the profit or loss for the current period by the
straight-line method.The Company will recognize right-of-use assets and lease liabilities on the inception date of the lease
term excluding the above short-term and low-value asset leases.* Right-of-use assets
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.
1812025 Annual Report of Luzhou Laojiao Co. Ltd.
* Lease liabilities
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
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 residual value of the guarantee payable the index or rate used to
confirm the lease payment the Company calculates 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.
(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.* 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
1822025 Annual Report of Luzhou Laojiao Co. Ltd.
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.* 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.
5.36. 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.
1832025 Annual Report of Luzhou Laojiao Co. Ltd.
5.37. Changes in significant accounting policies and accounting estimates
5.37.1. Changes in significant accounting policies
□ Applicable □ N/A
Unit: CNY
Statement line item
Content and reasons for accounting policy changes Amount affected
significantly affected
On July 8 2025 the Ministry of Finance issued implementation
Q&As on the accounting treatment of standard warrant trading.The Q&As specify that under the standard on the recognition and
measurement of financial instruments where an enterprise
frequently enters into contracts for the purchase and sale of
standard warrants on a futures exchange to earn price differences
without taking delivery of the physical commodities corresponding
to such standard warrants this usually indicates that the
enterprise has a practice of reselling the underlying subject matter
of the contracts within a short period after receiving it in order to
obtain profits from short-term fluctuations. The enterprise shall
treat the contracts for the purchase and sale of standard warrants
it has entered into as financial instruments and account for them in The implementation of this
accordance with the standard on the recognition and requirement had no
measurement of financial instruments. Where an enterprise material impact on the
obtains standard warrants under the aforesaid contracts and Company’s financial
resells them within a short period it shall not recognize sales position or operating
revenue but shall recognize the difference between the results.consideration received and the carrying amount of the standard
warrants sold in investment income. Where an enterprise holds
standard warrants that have not yet been sold at the end of the
period such standard warrants shall be presented as other current
assets.According to the requirements of the Notice on Strictly
Implementing the Accounting Standards for Business Enterprises
and Effectively Preparing 2025 Annual Reports (C.K. [2025] No.
33) where an enterprise adjusts its accounting treatment method
as a result of implementing the aforesaid requirements on
standard warrants it shall adjust the information for the
comparable periods in the financial statements.On December 5 2025 the Ministry of Finance issued
Interpretation No. 19 of the Accounting Standards for Business
Enterprises which further regulates and clarifies the accounting
The implementation of this
treatment of indemnification assets in business combinations not
requirement had no
under common control the treatment of capital reserve upon
material impact on the
disposal of a subsidiary consolidated under common control the
Company’s financial
conditions for derecognition of financial liabilities in electronic
position or operating
payment systems the assessment and disclosure requirements
results.for contractual cash flows of financial assets and the disclosures
on the fair value of designated equity instruments. The
interpretation came into effect on January 1 2026.
5.37.2. Changes in significant accounting estimates
□ Applicable □ N/A
1842025 Annual Report of Luzhou Laojiao Co. Ltd.
5.37.3. Adjustments to Financial Statement Items at the Beginning of the Year of the First
Implementation of the New Accounting Standards Implemented since 2025
□ Applicable □ 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% 5%
tax
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 1.2-20/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 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%
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%
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) from 1 January 2021 to 31
December 2030 companies located in the western region whose primary business is listed in the
Catalogue of Encouraged Industries in the Western Region and the primary business income
accounting for over 60% of the total enterprise income. These companies shall be subject to the
1852025 Annual Report of Luzhou Laojiao Co. Ltd.
corporate income tax at a reduced rate of 15%. The Company's majority-owned subsidiary Luzhou
Pinchuang Technology Co. Ltd. whose primary business income meets the requirements of scope and
standard of the Catalogue of Encouraged Industries in the Western Region is subject to 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 majority-owned 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 majority-owned
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.
(4) According to the Article 3 Item 7 of the Notice on Revision 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 meets 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 units are CNY except other specific statements)
7.1. Cash and cash equivalents
Unit: CNY
Item Closing Balance Opening Balance
Cash 27640.75
Bank deposit 27299090094.73 33506712545.24
Other cash and cash equivalents 42476603.64 71656645.34
Total 27341566698.37 33578396831.33
Including: Total deposit 97912284.27 104980028.96
1862025 Annual Report of Luzhou Laojiao Co. Ltd.
outbound
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 balance of other cash and cash equivalents mainly consists of balances of funds in self-
owned accounts on third-party platforms for subsidiaries in the amount of CNY 17357789.39
guarantee deposits of CNY 10023572.23 balances of funds in the co-management bank account for
special government funds of CNY 10000053.87 balances in securities accounts of CNY
3885188.15 the court frozen funds of CNY 1200000.00 and other business- related frozen funds
of CNY 10000.00.Of which: The co-management bank account for special government funds was established duringthe current year by a subsidiary Luzhou Laojiao Baijiu Production Co. Ltd. (the “Baijiu ProductionCompany”) together with the Jiangyang District Economy and Information Technology Bureau of
Luzhou City (the “supervisor”) for the purpose of special government funds. This account is managed
in accordance with the measures for the administration of special funds for the project and will be
released upon acceptance of the project.Note 3: There is no special benefit arrangement such as establishing a fund co-management account
with related parties other than those mentioned above 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.□Applicable □ N/A
7.2. Held-for-trading financial assets
Unit: CNY
Item Closing Balance Opening Balance
Financial assets measured at fair
value with their changes included into 1584771959.37 1694282295.97
current profits/losses
Including:
Wealth management products 1584771959.37 1694282295.97
Including:
Total 1584771959.37 1694282295.97
Other statements:
Note: The held-for-trading financial assets held at the end of the year are wealth management
products purchased by the Company.
7.3. Notes receivable
7.3.1. Disclosure by withdrawal methods for bad debts
Unit: CNY
Closing Balance Opening Balance
Type
Book balance Provision for bad Bookdebt value Book balance
Provision for bad Book
debt value
1872025 Annual Report of Luzhou Laojiao Co. Ltd.
Amount Proporti Proporti Proporti Proportion Amount on Amount on Amount on
Includin
g:
Includin
g:
Total 0.00
If adopting the general mode of expected credit loss to withdraw provision for bad debt of notes
receivable
□Applicable □ N/A
7.4. Accounts receivable
7.4.1. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 5454635.77 11602423.49
1-2 years 992962.98
Total 6447598.75 11602423.49
7.4.2. Disclosure by withdrawal methods for bad debts
Unit: CNY
Closing Balance Opening Balance
Book balance Provision for baddebt Book balance
Provision for bad
Type Book debt Book
Amount Proportion Amount
Proporti value
on Amount
Proporti Proporti value
on Amount on
Includin
g:
Account
s
receiva
ble
tested 64475 100.00 372028 60755 11602 100.00 580121 11022
5.77%5.00%
for 98.75 % .09 70.66 423.49 % .18 302.31
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
ble 64475 100.00 372028 60755 11602 100.00 580121 11022
5.77%5.00%
tested 98.75 % .09 70.66 423.49 % .18 302.31
for
impairm
ent on
1882025 Annual Report of Luzhou Laojiao Co. Ltd.
the
portfolio
with
charact
eristics
of credit
risk
64475100.003720286075511602100.0058012111022
Total 5.77% 5.00%
98.75%.0970.66423.49%.18302.31
Accounts receivable tested for impairment by the portfolio: CNY 372028.09
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 6447598.75 372028.09 5.77%
Including: within 1 year 5454635.77 272731.79 5.00%
1-2 years 992962.98 99296.30 10.00%
Other portfolio
Total 6447598.75 372028.09
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.If adopting the general mode of expected credit loss to withdraw provision for bad debt of accounts
receivable
□Applicable □ N/A
7.4.3. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit: CNY
Opening Changes in current periodType ClosingBalance Allowance Reversal orrecovery Write-off Other
Balance
Accounts
receivable
with a single
provision for
expected
credit loss
Accounts
receivable
with expected 580121.18 208093.09 372028.09
credit loss by
portfolio
Total 580121.18 208093.09 372028.09
7.4.4. Top five entities with the largest balances of accounts receivable and contract assets
Unit: CNY
Proportion to Closing balance
Closing balance Closing balance Closing balance total closing of provision for
Company name of accounts of contract of accounts balance of bad debt
receivable assets receivable and accounts provision ofcontract assets receivable and accounts
contract assets receivable and
1892025 Annual Report of Luzhou Laojiao Co. Ltd.
impairment
allowance of
contract assets
Sazerac
2574894.922574894.9239.94%177672.89
Company Inc
Beijing User
Growth Network
1571700.111571700.1124.38%78585.01
Technology Co.Ltd.Hangzhou
Youzan 723493.32 723493.32 11.22% 36174.67
Technology Inc.Hangzhou
Alimama
614618.56614618.569.53%30730.93
Software Service
Co. Ltd.Jiangsu JD Xuke
Information
553140.56553140.568.58%27657.03
Technology Co.Ltd.Total 6037847.47 6037847.47 93.65% 350820.53
7.5. Contract assets
7.5.1. Contract assets
Unit: CNY
Closing Balance Opening Balance
Item
Book balance Provision forbad debt Book value Book balance
Provision for
bad debt Book value
Total 0.00
7.6. Accounts receivable financing
7.6.1. Accounts receivable financing listed by category
Unit: CNY
Item Closing Balance Opening Balance
Bank acceptance bill 1466494973.96 1801947455.78
Total 1466494973.96 1801947455.78
7.6.2. Disclosure by withdrawal methods for bad debts
Unit: CNY
Closing Balance Opening Balance
Book balance Provision for bad Book balance Provision for badType debt Book debt Book
Amount Proporti Amount Proporti value Amount Proportion on on Amount
Proporti value
on
Incl
uding:
Provisio 14664 100.00 14664 18019 100.00 18019
1902025 Annual Report of Luzhou Laojiao Co. Ltd.
n 94973. % 94973. 47455. % 47455.allowan 96 961 78 78
ce by
portfolio
Incl
uding:
Bank 14664 14664 18019 18019
accepta 100.00 100.0094973. 94973. 47455. 47455.nce bill % %96 96 78 78
14664146641801918019
100.00100.00
Total 94973. 94973. 47455. 47455.%%
96967878
Note: 1 The notes receivable under accounts receivable financing comprise bank acceptance and
the Company believes that the bank acceptance it holds does not pose significant credit risks. It does
not anticipate significant losses due to defaults by banks or other drawers therefore no provision for
credit impairment losses has been recognized.Provision allowance by portfolio: CNY 0
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 1466494973.96
Total 1466494973.96
Notes to the determination basis for the portfolio:
As bank acceptance has low credit risks no bad debt provision is made.
7.6.3. Accounts receivable financing that have been endorsed to other parties or discounted
by the Company but have not expired at the end of the period
Unit: CNY
Item Derecognized at period-end Not derecognized at period-end
Bank acceptance bill1 2249475448.63
Total 2249475448.63
Note: 1 Due to the fact that the acceptor of bank acceptance is a commercial bank which is of high
credit level the likelihood of default at the maturity of bank acceptance is low. Therefore the
Company derecognizes bank acceptance that has been endorsed or discounted.
7.6.4. Changes in accounts receivable financing in the reporting period and fair value
Item Opening Balance Increase in current Decrease in currentperiod period Closing Balance
Notes receivable 1801947455.78 12606935530.61 12942388012.43 1466494973.96
Total 1801947455.78 12606935530.61 12942388012.43 1466494973.96
Note: Accounts receivable financing represents bank acceptance with a short remaining maturity.The book value closely aligns with the fair value; hence the book value is used as its fair value.
7.7. Other receivables
Unit: CNY
1912025 Annual Report of Luzhou Laojiao Co. Ltd.
Item Closing Balance Opening Balance
Other receivables 17318326.51 13053645.00
Total 17318326.51 13053645.00
7.7.1. Other receivables
7.7.1.1. Other receivables disclosed by nature
Unit: CNY
Nature Closing book balance Opening book balance
Intercourse funds 7185388.51 10388747.89
Petty cash 290697.61 243853.22
Saving deposits involving contract
91351645.65124099253.17
disputes 1
Total 98827731.77 134731854.28
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”. In 2025 CNY
32747607.52 of the saving deposits involving contract disputes was recovered. The balance of this
account as at the end of the year was CNY 91351645.65.
7.7.1.2. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 5790939.50 9264632.85
1-2 years 485187.10 139760.59
2-3 years 29294.30 6347.61
Over 3 years 92522310.871 125321113.23
3-4 years 6347.61 36880.00
4-5 years 6880.00
Over 5 years 92509083.26 125284233.23
Total 98827731.77 134731854.28
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
saving deposits of CNY 91351645.65 which are yet to be recovered due to contractual disputes.
7.7.1.3. Disclosure by withdrawal methods for bad debts
□ Applicable □ N/A
Unit: CNY
Closing balance Opening Balance
Type Book balance
Provision for bad Book balance Provision for baddebt Book debt Book
Amount Proporti Amount Proporti value Amount Proporti Proporti valueon on on Amount on
1922025 Annual Report of Luzhou Laojiao Co. Ltd.
Provisio
n for
bad 91351 80000 11351 124099 120000 40992
debt by 92.44% 87.57% 92.11% 96.70%645.65 000.00 645.65 253.17 000.00 53.17
individu
al item
Incl
uding:
Other
receiva
bles
that are
individu
ally
material
and for
which a 91351 80000 11351 124099 120000 40992
separat 92.44% 87.57% 92.11% 96.70%645.65 000.00 645.65 253.17 000.00 53.17
e
provisio
n for
bad
debts
has
been
made
Provisio
n for
bad 74760 15094 59666 10632 16782 89543
debt by 7.56% 20.19% 7.89% 15.78%86.12 05.26 80.86 601.11 09.28 91.83
the
portfolio
Incl
uding:
Other
receiva
bles
tested
for
impairm
ent on 74760 15094 59666 10632 16782 89543
the 7.56% 20.19% 7.89% 15.78%86.12 05.26 80.86 601.11 09.28 91.83
portfolio
with
charact
eristics
of credit
risk
98827100.008150917318134731100.0012167813053
Total 82.48% 90.31%
731.77%405.26326.51854.28%209.28645.00
Provision for bad debt by individual item: CNY 80000000.00
Unit: CNY
Opening Balance Closing Balance
Name
Book balance Provision forbad debt Book balance
Provision for
bad debt Proportion Reason
Saving
deposits Provision
124099253.1120000000.0
involving 91351645.65 80000000.00 87.57% based on
70
contract legal opinion
disputes
Total 124099253.1 120000000.0 91351645.65 80000000.00
1932025 Annual Report of Luzhou Laojiao Co. Ltd.
70
Provision for bad debt by the portfolio: CNY 1509405.26
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 7476086.12 1509405.26 20.19%
Including: within 1 year 5790939.50 289546.99 5.00%
1-2 years 485187.10 48518.75 10.00%
2-3 years 29294.30 5858.86 20.00%
3-4 years 6347.61 2539.05 40.00%
4-5 years 6880.00 5504.00 80.00%
Over 5 years 1157437.61 1157437.61 100.00%
Other portfolio
Total 7476086.12 1509405.26
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit: CNY
First stage Second stage Third stage
Provision for bad Expected credit loss Expected loss in the Expected loss in the
debt Totalof the next 12 duration (credit
months impairment not
duration (credit
occurred) impairment occurred)
Balance of January
120251678209.28120000000.00121678209.28
Balance of January
1 2025 in the current
period
Provision of the
120907.12120907.12
current period
Reversal of the
289711.1440000000.0040289711.14
current period
Balance of
1509405.2680000000.0081509405.26
December 31 2025
The basis for the division of each stage and the withdrawal proportion of bad debt provision
The basis for the division of each stage and the withdrawal proportion of bad debt provision: The
basis for division is that other receivables with single bad debt provision represent credit impairment
losses incurred since initial recognition (Stage 3) while the remaining portion is categorized based on
expected credit risk. Withdrawal proportions of bad debt provision are 20.19% for Stage 1 and
87.57% for Stage 3 totaling 82.48%.
Changes of book balance with a significant change of loss provision in the current period
□Applicable □ N/A
7.7.1.4. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
1942025 Annual Report of Luzhou Laojiao Co. Ltd.
Unit: CNY
Opening Changes in current periodType ClosingBalance Allowance Reversal or Write-off or Balancerecovery verification Other
Bad debt
provision for 121678209.2
120907.1240289711.1481509405.26
other 8
receivables
121678209.2
Total 120907.12 40289711.14 81509405.26
8
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
Unit: CNY
Determination basis
for and
Amount recovered or reasonableness of
Company Name Reversal reason Recovery method
transferred-back the previous
withdrawal proportion
of bad debt provision
At the end of each
year the litigation
attorney assesses
The actual recovery the ultimate expected
Three deposits with of CNY recoverable amount
Changsha Yingxin 32747607.52 of based on the latest
Sub-branch of saving deposits recovery tracking
Agricultural Bank of involving contract status and issues a
Cash recovery of
China and Nanyang 40000000.00 disputes in 2025 and special legal opinion.CNY 32747607.52
Zhongzhou Sub- the estimated bad Based on this the
branch of Industrial debt provision as at Company’s
and Commercial year- end based on management
Bank of China the latest estimates the
circumstances corresponding
amount of bad debt
provision at each
year-end.Total 40000000.00
7.7.1.5. Top five entities with the largest balances of the other receivables
Unit: CNY
Company Name Nature Closing Balance Aging Proportion in
Provisioning
total receivables amount at periodend
Saving deposits
Amount in
involving 91351645.65 Over 5 years 92.44% 80000000.00
dispute
contract disputes
Ye Cui Petty cash 140000.00 Within 1 year 0.14% 7000.00
TOWNE
CENTRE
OFFICES- Margin 131445.34 1-2 years 0.13% 13144.53
PIPROPERTIES
NO 111 LLC
Liu Yuanyuan Petty cash 113738.00 Within 1 year 0.12% 5686.90
1952025 Annual Report of Luzhou Laojiao Co. Ltd.
Sichuan Electric
Power
Corporation Margin 50000.00 Over 5 years 0.05% 50000.00
Luzhou Electric
Power Bureau
Total 91786828.99 92.88% 80075831.43
7.8. Prepayment
7.8.1. Aging analysis
Unit: CNY
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 132742078.70 91.17% 115124824.62 92.95%
1-2 years 6006743.32 4.13% 4202267.01 3.39%
2-3 years 2726812.70 1.87% 722670.32 0.58%
Over 3 years 4120840.93 2.83% 3820520.70 3.08%
Total 145596475.65 123870282.65
Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There was no significant prepayment whose aging is longer than 1 year.
7.8.2. Top five entities with the largest balances of prepayment
Company Name Closing Balance Aging Proportion to the total closing balance ofprepayment
Shanghai Merlot Advertising Co. Ltd. 82467023.97 Within 1 56.64%
year
Luzhou Western Gas Co. Ltd. 12010808.11 Within 1 8.25%
year
Luzhou Power Supply Company of
State Grid Sichuan Electric Power 9134365.36 Within 1 6.27%
Company year
Luzhou Laojiao Group Co. Ltd. 8778438.12 Within 1 6.03%
year
Yalu River Valley (Jilin) Liquor Co. Ltd. 4580005.13 1-2 years 3.15%
Total 116970640.69 80.34%
7.9.Inventories
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
7.9.1. Categories of Inventories
Unit: CNY
Closing Balance Opening Balance
Provision for Provision for
Category
Book Balance stock stockobsolescence Book Value Book Balance obsolescence Book Value
or impairment or impairment
1962025 Annual Report of Luzhou Laojiao Co. Ltd.
provision of provision of
contract contract
performance performance
costs costs
Raw materials 146378500.5 146378500.5 114546157.4 114546157.4
7711
Goods in 1192257725 1192257725 1073954576 1073954576
progress 4.611 4.61 4.82 4.82
Finished 3282202880 3282202880 2505218578 2505218578
goods .262 .26 .73 .73
Goods in
transit 44873071.91 44873071.91 33483975.00 33483975.00
1539603170153960317013392794471339279447
Total
7.357.355.965.96
Note: 1 The increase in the closing balance of goods in progress was mainly due to the Company’s
promotion of high-quality production capacity reserve and quality improvement plan which increased
the strategic reserve of high-quality base liquor.
2 The increase in finished goods was mainly due to the slowdown in inventory turnover during the
second half of 2025 in light of market conditions.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 Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
7.9.2. Notes to the closing balance of inventories including capitalized borrowing expense
There was no capitalized borrowing expense in the closing balance of inventories.
7.10. Other current assets
Unit: CNY
Item Closing Balance Opening Balance
VAT to be deducted 344545347.47 217415843.41
Corporate income tax 81820156.01 20441701.15
Other taxes 4094407.15 3224364.33
Total 430459910.63 241081908.89
Other statements:
The value-added tax expected to be deducted in the next fiscal year and corporate income tax and
other taxes are disclosed in other current assets.
7.11. Other equity instrument investment
Unit: CNY
Reason
Gains Losses Accumulat Accumulat for
recorded recorded ive gains ive losses assigning
in other in other recorded recorded Dividend to
Closing Opening comprehe comprehe in other in other
income measure
Item Balance Balance nsive nsive comprehe comprehe
recognize in fair
income in income in nsive nsive d in value of
the the income at income at current which
current current the end of the end of year changes
period period the period the period included
other
1972025 Annual Report of Luzhou Laojiao Co. Ltd.
comprehe
nsive
income
Financial
assets
assigned
to
measure
in fair
value of
which
changes
included
other
comprehe
nsive
income:
Including:
Guotai
Haitong
Securities
Co. Ltd.(formerly According
known as to the“Guotai 2420172 2196409 2237629 2292981 5064108. mode ofJunan managing88.33 94.03 4.30 31.57 71
Securities assets by
Co. Ltd. managem
and ent layer
renamed
in April
2025)
China According
Tourism to the
Group 8700100 6006939 2693160 6419769 1282673. mode of
Duty Free managing4.56 9.64 4.92 0.72 77
Corporatio assets by
n Limited management layer
According
to the
Luzhou
Bank Co. 8504777 7835631 6691454. 3392777 5207040.mode of
managing
Ltd. 3.27 8.99 28 3.27 00 assets by
managem
ent layer
Guotai According
Junan to the
Investmen
t 2261183 2261183
mode of
managing
Managem 4.24 4.24 assets by
ent Co. managem
Ltd. ent layer
According
North to the
Chemical 2817526 1587008 1230517 2714526 mode of
Industries 62542.20 managing1.09 3.24 7.85 1.09
Co. Ltd. assets bymanagem
ent layer
According
Guojiu Big to the
Data Co. 8799784. 8799784. 1200215. mode of
Ltd. 78 78 22 managingassets by
managem
1982025 Annual Report of Luzhou Laojiao Co. Ltd.
ent layer
Sichuan
China
Baijiu
Golden
Triangle According
Brand to the
Operation
Developm 1846291. 1846291. 5752926. 3000000.mode of
managing
ent Co. 63 63 37 00 assets by
Ltd. and managem
other ent layer
equity
instrument
investmen
ts
475499240719476830453290371171150831461636
Total
37.9006.551.3565.932.314.68
Categories of non-trading equity instrument investment in the current period:
Unit: CNY
Reason for
Amount of assigning to Reason of
other measure at other
Recognized
Item dividends Accumulative Accumulative
comprehensiv fair value and comprehensiv
gains losses e income changes e incomeincome transferred to recorded into transferred to
retained other retained
earnings comprehensiv earnings
e income
According to
Guotai the mode of
Haitong 229298131.5 managing
Securities 5064108.71 7 assets by
Co. Ltd. management
layer
China According to
Tourism the mode of
Group Duty 1282673.77 64197690.72 managingFree assets by
Corporation management
Limited layer
According to
the mode of
Luzhou Bank managing
Co. Ltd. 5207040.00 33927773.27 assets by
management
layer
According to
Guotai Junan the mode of
Investment managing
Management assets by
Co. Ltd. management
layer
According to
North the mode of
Chemical
Industries Co. 62542.20 27145261.09
managing
assets by
Ltd. management
layer
Guojiu Big According to
Data Co. Ltd. 1200215.22 the mode ofmanaging
1992025 Annual Report of Luzhou Laojiao Co. Ltd.
assets by
management
layer
Sichuan
China Baijiu
Golden
Triangle According to
Brand the mode of
Operation 3000000.00 5752926.37 managing
Development assets by
Co. Ltd. and management
other equity layer
instrument
investments
290371165.9
Total 14616364.68 71150832.31
3
7.12. Long-term equity investments
Unit: CNY
Changes in current period
Openi Gain Adjust Closin
Openi ng or ments Closin g
ng Balan loss of Cash g Balan
Invest Balan ce of Other divide Provis Balan ce of
ee ce provisi Increa Decre
recog other
nized compr chang d or ion for Other ce provisi
(book on for se ase under ehens es in profit impair (book on for
value) impair equity ive equity declar ment value) impair
ment metho incom ed ment
d e
1. Joint Ventures
2. Associate
Huaxi
Securi 2614 2567 1528 9225 3410 2742 2567
ties 8070 098.8 1954 632.9 3893. 7483 098.8
Co. 32.57 0 9.79 0 00 22.26 0
Ltd.Luzho
u
Laojia
o
Postd
octora
l 3668 3681
Works 13171718. 3478.tation 60.4510 55
Techn
ology
Innov
ation
Co.Ltd.Sichu
an
Devel
opme 5878 5920
nt 4254
Liquor 280.9 824.93.97
Invest 3 0
ment
Co.Ltd.
2002025 Annual Report of Luzhou Laojiao Co. Ltd.
CTS
Luzho
u
Laojia
o
Cultur 1231 1854 - 1247
al
Touris 1017 573.7 2278 3692
m 9.13 9 26.01 6.91
Devel
opme
nt
Co.Ltd.Sichu
an
Tianfu
Grana 1250 1242
ry 8491 9279
Liquor 2140. 3283.22.06 79.16
Indust 27 17
ry
Co.Ltd.Sichu
an
Tongn
iang
Baijiu
Indust
ry 8272 - 8161
Techn 966.9 1113 633.9
ology 3 32.95 8
Resea
rch
Institu
te
Co.Ltd.
2801256715559225-350329302567
Subtot
al 2523 098.8 8621 632.9 2278 1872. 8044 098.8
17.9307.11026.011669.770
2801256715559225-350329302567
Total 2523 098.8 8621 632.9 2278 1872. 8044 098.8
17.9307.11026.011669.770
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□ Applicable □ N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□ Applicable □ N/A
7.13. Investment property
7.13.1. Investment property with cost measurement model
□ Applicable □ N/A
Unit: CNY
Item Buildings andconstructions Land use right
Construction in
progress Total
2012025 Annual Report of Luzhou Laojiao Co. Ltd.
I. Original cost
1. Opening balance 79610430.07 12767067.71 92377497.78
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 79610430.07 12767067.71 92377497.78
II. Accumulated
depreciation and
amortization
1. Opening Balance 36898805.52 5231998.10 42130803.62
2. Increase in current
period 2123825.40 230117.68 2353943.08
(1) Provision or
amortization 2123825.40 230117.68 2353943.08
3. Decrease in
current period
(1) Disposal
(2) Other transfer out
4. Closing Balance 39022630.92 5462115.78 44484746.70
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 40587799.15 7304951.93 47892751.08
2. Opening Book
Value 42711624.55 7535069.61 50246694.16
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□ Applicable □ N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□ Applicable □ N/A
2022025 Annual Report of Luzhou Laojiao Co. Ltd.
7.13.2. Investment property without certification of right
Unit: CNY
Item Book value Reason for not having thecertification of right
Buildings of the Company 13535162.31 In procedure
7.14. Fixed assets
Unit: CNY
Item Closing Balance Opening Balance
Fixed assets 8523544338.21 9131607204.08
Disposal of fixed assets 347065.82 169711.43
Total 8523891404.03 9131776915.51
7.14.1. Details of fixed assets
Unit: CNY
Item Buildings and Specialized General Transportation Otherconstructions equipment equipment equipment equipment Total
I. Original
cost:
1. Opening 8033330478 1469814802 1301578395 1968108153 1281154775
balance 38715922.69.77 .44 .68 .58 3.16
2. Increase in
current period 8002784.13 4770750.89 66877940.61 8368613.42 88020089.05
(1) External
purchase 2344424.80 50616613.39 1576991.16 54538029.35
(2) Transfer
from
construction in 250498.73 2426326.09 16243623.87 6123919.55 25044368.24
progress
(3) Increase
from business
combination
(4)
Adjustment for
7702725.20667702.718370427.91
completion
settlement
(5) Changes
of exchange -12066.66 -12066.66
rates
(6) Other 49560.20 29770.01 79330.21
3. Decrease in
current period 5977187.77 12589759.62 16208597.40 196813.98 3203287.06 38175645.83
(1) Disposal
or retirement 633239.71 10640703.86 5379315.60 196813.98 3203287.06 20053360.21
(2) Transfer to
construction in 2484206.08 130884.06 169917.02 2785007.16
progress
(3)
Adjustment for
completion 1818171.70 10659364.78 12477536.48
settlement
(4) Other 2859741.98 2859741.98
4. Closing 8035356075 1461995793 1352247738 1973273479 1286139219
Balance 38519108.71.13 .71 .89 .94 6.38
II.
2032025 Annual Report of Luzhou Laojiao Co. Ltd.
Accumulated
depreciation
1. Opening 1341175878 750954666.2 668850913.7 895788014.1 3679940549
Balance 23171076.91.03 8 4 2 .08
2. Increase in 266769333.6 156181669.9 150591391.7 677375309.2
current period 4206029.25 99626884.588 7 9 7
(1) Provision 266769333.6 156181669.9 150697111.7 677481029.24206029.25 99626884.58
8720
(2) Changes
of exchange -105719.93 -105719.93
rates
3. Decrease in
current period 2628309.08 9514814.58 5044324.93 172123.10 2108428.49 19468000.18
(1) Disposal
268313.309454865.004942019.11172123.102108428.4916945749.00
or retirement
(2) Transfer of
renovation
and
2359995.7859949.58102305.822522251.18
expansion to
construction in
progress
4. Closing 1605316902 897621521.6 814397980.6 993306470.2 4337847858
Balance 27204983.06.63 7 0 1 .17
III. Provision
for impairment
1. Opening
Balance
2. Increase in
current period
(1) Provision
3. Decrease in
current period
(1) Disposal
or retirement
4. Closing
Balance
IV. Book
Value
1. Closing 6430039172 564374272.0 537849758.2 979967009.7 8523544338
Book Value 11314125.65.50 4 9 3 .21
2. Opening 6692154600 718860136.1 632727481.9 1072320139 9131607204
Book Value 15544845.78.74 6 4 .46 .08
7.14.2. Fixed assets leased out through operating lease
Unit: CNY
Item Closing book value
Buildings and constructions 32174267.42
Equipment 3691820.86
Total 35866088.28
7.14.3. Fixed assets without certification of right
Unit: CNY
Item Book value Reason for not having thecertification of right
Buildings of the Company 21843834.88 The property ownership certificatehas not been processed yet for the
2042025 Annual Report of Luzhou Laojiao Co. Ltd.
historical reasons and it plans to be
processed after gradually improving
procedures.Buildings of the Company 17635482.17 In procedure
Buildings of the subsidiary-Baijiu
Production Company 4305253615.70 In procedure
Total 4344732932.75
Other statements:
7.14.4. Disposal of fixed assets
Unit: CNY
Item Closing Balance Opening Balance
Disposal and retirement of assets 347065.82 169711.43
Total 347065.82 169711.43
7.15. Construction in progress
Unit: CNY
Item Closing Balance Opening Balance
Construction in progress 2064766283.24 807233988.90
Total 2064766283.24 807233988.90
7.15.1. Details of the construction in progress
Unit: CNY
Closing Balance Opening Balance
Provision Provisio
Item
Book balance forimpairme Book value Book balance
n for
impairm Book value
nt ent
Technical
renovation of
Luzhou
Laojiao 38517842.44 38517842.44 6367929.36 6367929.36
Intelligent
packaging
center
Luzhou
Laojiao
Technical
Renovation
Project of 1502441499.75 1502441499.75 506382371.57 506382371.57
Intelligent
Baijiu
Production (I)
Project of
Luzhou
Laojiao's
Flexible 62641666.13 62641666.13 60955418.59 60955418.59
Intelligent
Filling Pilot
Line
Construction
Project of 78823440.76 78823440.76 22407884.55 22407884.55
Luzhou
2052025 Annual Report of Luzhou Laojiao Co. Ltd.
Laojiao's
Strong Aroma
Baijiu
Experience
Marketing
Centre
The
expansion
and
renovation
project of the
office area of
Luzhou 79087098.28 79087098.28 22751740.43 22751740.43
Laojiao
Marketing
Network
Command
Center-Staff
Home
Luzhou
Laojiao
Historical and
Cultural
120613219.60120613219.6097488257.7897488257.78
Industry Park
and National
Baijiu
Museum
Other projects 182641516.28 182641516.28 90880386.62 90880386.62
Total 2064766283.24 2064766283.24 807233988.90 807233988.90
7.15.2. Significant changes in construction in progress
Unit: CNY
Prop
ortio Inclu
Incre n of Accu
ding: Capit
Tran accu mula Capit alizat
Ope ase sfer Othe Closi mula tive alize ion
Item Bud ning
in
curre into
r ng tive Prog capit d rate
get Bala fixed decr Bala proje ress alize inter for Source of funds
nce nt asse ease nce ct (%) d est theperio ts sd input inter
for perio
in est the d
budg perio (%)
et d
Luzh
ou
Laoji
ao
Tech
398506996150
nical
25038205924455.456.0
Ren Other
900371.128.1490%0%
ovati
0.0057189.75
on
Proj
ect
of
Intell
2062025 Annual Report of Luzhou Laojiao Co. Ltd.
igent
Baiji
u
Prod
uctio
n
(Pha
se I)
Luzh
ou
Laoji
ao
Histo
rical
and
Cult
147974999768120
ural
80088292667761342.840.0
Indu Other
00057.788.626.7219.0%0%
stry
0.00819160
Park
and
Nati
onal
Baiji
u
Mus
eum
Con
struc
tion
Proj
ect
of
Luzh
ou
Laoji
ao's
260224564788
Stro
43507815523410.010.0
ng Other
67084.556.240.79%0%
Aro
0.00516
ma
Baiji
u
Expe
rienc
e
Mark
eting
Cent
re
806626115768170
486278246677187
Total
570513.73726.7816
0.00903.0090.11
Note: 1 Other decreases were attributable to the transfer of land with title certificates acquired during
the current year to intangible assets for presentation.
2072025 Annual Report of Luzhou Laojiao Co. Ltd.
7.15.3. Impairment test of construction in progress
□ Applicable □ N/A
7.16. Right-of-use assets
7.16.1. Details of right-of-use assets
Unit: CNY
Item Land use right Buildings and constructions Total
I. Original cost
1. Opening Balance 30788322.41 26442151.78 57230474.19
2. Increase in current
period -310574.81 -310574.81
(1) Increase in leases 318656.02 318656.02
(2) Changes of exchange
rates -629230.83 -629230.83
3. Decrease in current
period 4229640.18 4229640.18
(1) Lease expiration 3763213.00 3763213.00
(2) Adjustment for change
of lease term 466427.18 466427.18
4. Closing Balance 30788322.41 21901936.79 52690259.20
II. Accumulated
amortization
1. Opening Balance 13698555.71 14277704.25 27976259.96
2. Increase in current
period 3424638.92 5269366.87 8694005.79
(1) Provision 3424638.92 5682731.25 9107370.17
(2) Changes of exchange
rates -413364.38 -413364.38
3. Decrease in current
period 3843220.74 3843220.74
(1) Disposal
(2) Lease expiration 3674788.70 3674788.70
(3) Adjustment for change
of lease term 168432.04 168432.04
4. Closing Balance 17123194.63 15703850.38 32827045.01
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 13665127.78 6198086.41 19863214.19
2. Opening Book Value 17089766.70 12164447.53 29254214.23
2082025 Annual Report of Luzhou Laojiao Co. Ltd.
7.16.2. Impairment test of right-of-use assets
□ Applicable □ N/A
7.17. Intangible assets
7.17.1. Details of intangible assets
Unit: CNY
Land use No-patentItem right Patent right right
Computer Trademark Data
technology software right
Total
resources
I. Original
cost
1. Opening 37398715 1700050.4 14019344 2118716.0 38838837
Balance 01.61 4 7.79 9 15.93
2. Increase
in current 82043319. 14348633. 4284917.7 10067687
period 66 33 1 0.70
(1) Acquired 4258912.4 7002333.7 11261246.
4115
(2)
Internally 4284917.7 4284917.7
developed 1 1
(3)
Business
combination
(4)
Transferred
from 77784407. 7346299.6 85130706.construction 22 2 84
in progress
3. Decrease
in current 9060.67 9060.67
period
(1) Disposal 9060.67 9060.67
4. Closing 38219148 1700050.4 15453302 2118716.0 4284917.7 39845515
Balance 21.27 4 0.45 9 1 25.96
II.Accumulate
d
amortization
1. Opening 41530112 1090619.1 47696525. 1896654.6 46598491
Balance 0.33 8 62 1 9.74
2. Increase
in current 90114895. 12828468. 1428305.9 10450257130005.04 900.12
period 56 54 1 5.17
(1)90114895.12828468.1428305.910450257
Provision 130005.04 900.1256 54 1 5.17
3. Decrease
in current 1504.06 1504.06
period
(1) Disposal
(2) Other 1504.06 1504.06
4. Closing 50541601 1220624.2 60523490. 1897554.7 1428305.9 57048599
Balance 5.89 2 10 3 1 0.85
III.Provision
for
impairment
2092025 Annual Report of Luzhou Laojiao Co. Ltd.
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 33164988 94009530. 2856611.8 34140655
Book Value 479426.22 221161.3605.38 35 0 35.11
2. Opening 33245703 92496922. 34178987
Book Value 609431.26 222061.4881.28 17 96.19
The proportion of intangible assets formed by internal development to the balance of intangible
assets at the period-end was 0.08%.
7.17.2. Data resources recognized as intangible assets
□ Applicable □ N/A
Unit: CNY
Data resources
Purchased data Self-developed data
intangible assets
Item resources intangible resources intangible Total
acquired through
assets assets
other means
I. Original cost
1. Opening Balance
2. Increase in current
period 4284917.71 4284917.71
Internal developed 4284917.71 4284917.71
3. Decrease in
current period
4. Closing Balance 4284917.71 4284917.71
II. Accumulated
amortization
1. Opening Balance
2. Increase in current
period 1428305.91 1428305.91
3. Decrease in
current period
4. Closing Balance 1428305.91 1428305.91
III. Provision for
impairment
1. Opening Balance
2. Increase in current
period
3. Decrease in
current period
4. Closing Balance
2102025 Annual Report of Luzhou Laojiao Co. Ltd.
IV. Book Value
1. Closing Book
Value 2856611.80 2856611.80
2. Opening Book
Value
Note: The data resources recognized as intangible assets by the Company during the current year
primarily consisted of data resources such as those used for digital marketing. Based on the
estimated effective period during which these data assets supported the Company’s marketing efforts
their useful life was determined to be three years and they were amortized using the straight-line
method.
7.17.3. Land use right without certification of right
There was no land use right without certification of right at the period-end.
7.18. R&D costs
Increase in current Decrease in current
Op period period
eni Tra Closi Date of
ng nsfe ng commenceme Specific basis R&D progressItem Bal Internal Ot Recognized rred Balan nt of for as at the end of
an development he as intangible to ce capitalization capitalization the period
ce costs r assets profi
t or
loss
Data Details in
resou 4284917.71 4284917.71 January 2025 Note 7.15.Intangible Normalrces assets
Total 4284917.71 4284917.71
7.19. Long-term deferred expense
Unit: CNY
Item Opening Balance Increase Amortization Other decrease Closing Balance
Improvement
expense of
1756272.03687684.7133601.8411034985.48
rented fixed
assets
Total 1756272.03 687684.71 33601.84 1034985.48
Note: 1 Other decrease was generated from changes of exchange rates.
7.20. Deferred tax assets/ deferred tax liabilities
7.20.1. Deferred tax assets before offset
Unit: CNY
Closing Balance Opening Balance
Item Deductible temporary
differences Deferred tax assets
Deductible temporary
differences Deferred tax assets
2112025 Annual Report of Luzhou Laojiao Co. Ltd.
Provision for asset
impairment 84433379.21 20998267.09 124771509.82 31075237.73
Unrealized profits
from internal 310370130.36 77592532.59 742790841.94 185697710.49
transactions
Impact from salary 425943121.57 104988703.13 493996524.17 121948421.27
Impact from deferred
earnings 82513945.77 20628486.45 86672726.83 21668181.71
Impact from fixed
assets depreciation 1581273.36 460226.55 1598536.52 405851.10
Recognition costs of
restricted shares for
equity incentive in 49219427.74 12099077.25 120257855.98 29526566.27
the vesting period
Impact from fair
value changes of
other equity 88576028.89 22144007.22 115507633.77 28876908.44
instrument
investment
Impact of income tax
from fair value
changes of held-for- 19338314.36 4834578.59 17238148.79 4309537.19
trading financial
assets
Impact of income tax
from initial
recognition of lease 1410905.51 274102.06 3258868.36 676678.84
liabilities
Total 1063386526.77 264019980.93 1706092646.18 424185093.04
7.20.2. Deferred tax liabilities before offset
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
instrument 290371165.72 72592791.43 248998239.50 62249559.84
investment
Fair value changes
of held-for-trading 4110273.60 1027568.40 11520444.76 2880111.17
financial assets
Impact from the
policy of one-time
pre-tax deduction of 398337577.12 97270705.50 379464834.32 92542193.36
fixed assets
Impact of income tax
from initial
recognition of right- 1438051.88 288957.09 3342874.50 703850.51
of-use assets
Total 694257068.32 171180022.42 643326393.08 158375714.88
7.20.3. Details of unrecognized deferred tax assets
Unit: CNY
Item Closing Balance Opening Balance
2122025 Annual Report of Luzhou Laojiao Co. Ltd.
Deductible losses 395438064.93 272750289.72
Asset impairment provision 2008.37 2156.34
Employee benefits payable 15500688.36 15915368.47
Total 410940761.66 288667814.53
7.20.4. Deductible losses from unrecognized deferred tax assets will be due in the following
years
Unit: CNY
Year Closing Amount Opening Amount Notes
202515884395.00
20268417566.878417566.87
202741945012.3041945012.30
2028170459479.62170459479.62
202962422108.8836043835.93
2030112193897.26
Total 395438064.93 272750289.72
7.21. Other non-current assets
Unit: CNY
Closing Balance Opening Balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Prepayment
for
engineering 148103387.74 148103387.74 235101375.05 235101375.05
and
equipment
Prepayment
for long-term 516737979.30516737979.30 1 172245993.10 172245993.10
assets
Total 664841367.04 664841367.04 407347368.15 407347368.15
Note: 1 The prepayment for long-term assets was the corresponding advance payment for the
progress of the Chengdu Innovation and Development Center Building customized and constructed
by the Company.
7.22. Assets with restricted ownership or use rights
Unit: CNY
Period-end Period-beginning
Item Book Book Type of Status of Book Book Type of Status of
balance value restriction restriction balance value restriction restriction
Provision Provision
Cash and for fixed
cash 3938346 3938346 Fixed
for fixed Fixed
deposit deposit 1811009 1811009 depositequivalent deposit14.88 14.88 interest interest on 55.95 55.95 interest ons an accrual interest an accrual
basis basis
Co- Administer
Cash and 1000005 1000005 managem ed in
cash 3.87 3.87 ent accordancequivalent account e with the
2132025 Annual Report of Luzhou Laojiao Co. Ltd.
s with measures
restriction for the
s on administra
payments tion of
special
fund for
projects
Cash and
cash 1002357 1002357 Bank cashMargin deposits 1000000 1000000
Bank cash
equivalent Margin deposits2.23 2.23 for L/G 0.00 0.00s for L/G
Cash and E- E-
cash 1404495. 1404495. Margin commerce 1627857. 1627857. Margin commerceequivalent 57 57 platform 48 48 platform
s margin margin
Cash and
cash 1200000. 1200000. Litigation Frozenfund by 1800000 1800000 Litigation
Frozen
equivalent 00 00 freeze the court 3.44 3.44 freeze
fund by
s the court
Cash and Other Other
cash business business
equivalent 10000.00 10000.00 - related - related
s freeze freeze
4164727416472721072882107288
Total
36.5536.5516.8716.87
7.23. Accounts payable
7.23.1. Presentation of accounts payable
Unit: CNY
Item Closing Balance Opening Balance
Engineering equipment expense 742420293.37 854220902.47
Materials and service expense 671000882.43 990276304.31
Total 1413421175.80 1844497206.78
7.23.2. Significant accounts payable whose aging is longer than 1 year or overdue
Unit: CNY
Item Closing Balance Reason for non-payment or carrying
forward
China Construction First Group Project payment within the contract
319962544.23
Corporation Limited settlement period
China Second Metallurgy Group Co. Project payment within the contract
131967754.49
Ltd. settlement period
Luzhou Branch of Zhongqi
Project payment within the contract
Construction Group Huamao Co. 21826780.23
settlement period
Ltd.China Fifth Metallurgy Group Co. Project payment within the contract
15390638.64
Ltd. settlement period
Total 489147717.59
2142025 Annual Report of Luzhou Laojiao Co. Ltd.
7.23.3. Whether there are any overdue and outstanding payments to small and medium-sized
enterprises (SMEs)
Whether the Company is a large enterprise
□ Yes □ No
7.24. Other payables
Unit: CNY
Item Closing Balance Opening Balance
Dividend payable 28163719.84 29668290.20
Other payables 587589747.04 843927138.88
Total 615753466.88 873595429.08
7.24.1. Dividend payable
Unit: CNY
Item Closing Balance Opening Balance
Dividend payable to minority
shareholders of the Company’s 28163719.841 29668290.20
subsidiary
Total 28163719.84 29668290.20
Note: 1 The closing balance refers to the dividends distributed but not yet paid to minority
shareholders of the Company’s subsidiary Boda Marketing Company.
7.24.2. Other payables
7.24.2.1. Categories by nature
Unit: CNY
Item Closing Balance Opening Balance
Security deposit 383977398.34 447066962.39
Intercompany funds 22227075.32 28522739.40
Repurchase obligations of restricted
shares 159634274.47 345699443.89
Others 21750998.91 22637993.20
Total 587589747.04 843927138.88
7.24.2.2. Significant other payables whose aging are longer than 1 year or overdue
Unit: CNY
Item Closing Balance Reason for not payment or carrying
forward
Within the contract performance
Security deposits from suppliers 26029046.77
period
Within the contract performance
Security deposits from dealers 41255039.16
period
Total 67284085.93
2152025 Annual Report of Luzhou Laojiao Co. Ltd.
7.25. Advances from customers
7.25.1. Presentation of advances from customers
Unit: CNY
Item Closing Balance Opening Balance
Advance rent receipts 2014696.36
Total 2014696.36
7.26. Contract liabilities
Unit: CNY
Item Closing Balance Opening Balance
Within 1 year 3312289242.35 3960810214.93
1-2 years 46508887.11 11557251.98
2-3 years 4887777.56 1918201.08
Over 3 years 3757820.81 3845860.89
Total 3367443727.83 3978131528.88
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 Self-regulation of
Listed Companies—Industry-specific Information Disclosure.The total amount of the top five companies in contract liabilities was CNY 1793089854.36
accounting for 53.25%.
7.27. Employee benefits payable
7.27.1. Employee benefits payable shown as follows
Unit: CNY
Item Opening Balance Increase in current Decrease in currentperiod period Closing Balance
1. Short-term
benefits 524037059.67 1088864428.51 1152687031.90 460214456.28
2. Post-employment
benefits- defined 29543709.32 169156488.94 177192274.18 21507924.08
contribution plans
3. Termination
benefits 1158663.75 1158663.75
Total 553580768.99 1259179581.20 1331037969.83 481722380.36
7.27.2. Short-term employee benefits payable shown as follows
Unit: CNY
Item Opening Balance Increase in current Decrease in currentperiod period Closing Balance
1. Wages bonuses
allowances and 474157091.74 868723096.60 927714697.61 415165490.73
grants
2. Employees’ 20658158.87 20658158.87
2162025 Annual Report of Luzhou Laojiao Co. Ltd.
welfare
3. Social insurance
premiums 6287723.00 83934633.04 85468318.30 4754037.74
Including:
Medical insurance 4102608.47 81503970.06 82811147.07 2795431.46
premium
Work-related injury
insurance 2185114.53 2430662.98 2657171.23 1958606.28
4. Housing funds 6978209.89 85861400.32 85942419.05 6897191.16
5. Labor union
expenditures and
employee education 36614035.04 29687139.68 32903438.07 33397736.65
funds
Total 524037059.67 1088864428.51 1152687031.90 460214456.28
7.27.3. Defined contribution plan shown as follows
Unit: CNY
Item Opening Balance Increase in current Decrease in currentperiod period Closing Balance
1. Basic endowment
insurance premium 20034205.90 103977115.71 111999848.33 12011473.28
2. Unemployment
insurance premium 265096.82 4228009.01 4231953.98 261151.85
3. Enterprise annuity 9244406.60 60951364.22 60960471.87 9235298.95
Total 29543709.32 169156488.94 177192274.18 21507924.08
7.28. Taxes payable
Unit: CNY
Item Closing Balance Opening Balance
Value-added tax 276075582.62 712774935.04
Consumption tax 735986504.12 1446813372.13
Enterprise income tax 464627315.26 798281280.17
Individual income tax 9944022.89 11091390.13
Urban maintenance and construction
tax 70393445.36 147158156.11
Education surcharge 30116997.43 63919687.59
Local education surcharge 20186006.39 43486324.21
Stamp duty 5209309.95 9583849.31
Land use tax 437618.74
Others 344885.79 401983.65
Total 1612884069.81 3233948597.08
7.29. Non-current liabilities due within one year
Unit: CNY
Item Closing Balance Opening Balance
Long-term loans due within one year 4060900000.00 1720200000.00
Bonds payable due within one year 1499788498.36
Lease liabilities due within one year 9584667.93 9688349.02
Interest of long-term loans due within 3714545.12 5383276.22
2172025 Annual Report of Luzhou Laojiao Co. Ltd.
one year
Interest of bonds payable due within
one year 41568493.14
Total 4074199213.05 3276628616.74
7.30. Other current liabilities
Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 436920270.99 516729820.48
Total 436920270.99 516729820.48
7.31. Long-term loans
7.31.1. Long-term loans
Unit: CNY
Item Closing Balance Opening Balance
Credit loans 6688066310.93 8000100000.00
Less: Long-term loans due within one
year -4060900000.00 -1720200000.00
Total 2627166310.93 6279900000.00
Other statements including interest rate range:
Note: The interest rate level of the Company’s long-term loans at the end of the period was loan
prime rate (LPR) - corresponding basic points (BP) for 1-year/5-year and above loan terms.
7.32. Lease liabilities
Unit: CNY
Item Closing Balance Opening Balance
Lease payment 28581944.08 38789939.06
Less: unrecognized financing cost -3304085.54 -4573070.91
Less: lease liabilities due within one
year -9584667.93 -9688349.02
Total 15693190.61 24528519.13
7.33. Deferred income
Unit: CNY
Item Opening Balance Increase in Decrease incurrent period current period Closing Balance Reason
Reception of
Government
86672726.83 22315000.00 26473781.06 82513945.77 financial
grants
allocation
Total 86672726.83 22315000.00 26473781.06 82513945.77 --
Other statements:
Details:
2182025 Annual Report of Luzhou Laojiao Co. Ltd.
Item Opening Increase in
Other income Related to
Balance current period in current
Closing
period Balance
assets/
income
Technological transformation
project of Luzhou Laojiao 58625350.00 8517000.00 13162636.40 53979713.60 Related to
Intelligent Packing Center assets
Digital upgrade project of
supply chain management for
Luzhou Laojiao Intelligent 8714300.00 3798000.00 2137592.30 10374707.70
Related to
assets
Packing Center
Cogeneration Expansion Related to
Project (I) 10000000.00 10000000.00 assets
Improvement and technical
renovation project of Luzhou 5518863.65 1892181.84 3626681.81 Related to
Laojiao production supporting assets
Boiler reconstruction project
of Luohan Baijiu Production 3792857.15 1264285.68 2528571.47 Related to
Base of Luzhou Laojiao assets
Distillation wastewater
treatment project 4285714.25 3428571.40 857142.85
Related to
assets
Construction project of liquor
room of Luzhou Laojiao baijiu
production technical 3357142.91 2685714.36 671428.55
Related to
assets
renovation
New mode application project
of digital workshop for solid 1941868.84 1553495.04 388373.80 Related to
state baijiu production assets
Luzhou Laojiao automatic
baijiu production line 436630.03 349304.04 87325.99 Related to
technical renovation project assets
Total 86672726.83 22315000.00 26473781.06 82513945.77
7.34. Share capital
Unit: CNY
Increases/decreases in the current period (+ -)
Opening Conversion Closing
Balance Issuance of Bonus of reserve Balance
new shares shares fund into
Others Subtotal
shares
Total
1471951514719419
number of -9540.00 -9540.001
03.0063.00
shares
Note: 1. In 2025 among the awardees of the Company’s 2021 Restricted Share Incentive Plan (Draft)
three of them no longer met the incentive conditions due to job transfer resignation or other reasons.According to the relevant provisions of the incentive plan a total of 9540 restricted shares that have
been granted to the above-mentioned awardees but have not yet been released from restrictions will
be repurchased and retired by the Company.
7.35. Capital reserves
Unit: CNY
Item Opening Balance Increase in current Decrease in currentperiod period Closing Balance
Share premium
(capital premium) 4627833263.45 320340699.24 874913.40 4947299049.29
2192025 Annual Report of Luzhou Laojiao Co. Ltd.
Other capital
reserves 737930303.10 74439449.38 320340699.24 492029053.24
Total 5365763566.55 394780148.62 321215612.64 5439328102.53
Other statements including increase/decrease and reasons thereof:
Note 1: The capital premium increased this year because some restricted shares granted have been
released from restrictions upon maturity.Note 2: The increase in other capital reserves for the current period was the costs and expenses
attributable to the parent company to be recognized in the current period for the issuance of restricted
shares.
7.36. Treasury shares
Unit: CNY
Item Opening Balance Increase in current Decrease in currentperiod period Closing Balance
Perform the
repurchase
345699443.89186065169.42159634274.47
obligations under the
equity incentive
Total 345699443.89 186065169.42 159634274.47
Other statements including notes to increase and decrease during the reporting period and the
reasons for changes:
Note: The treasury shares reduced by CNY 186065169.42 for the current period due to the
repurchase and cancellation of restricted shares and the expiration and lifting of restrictions on some
granted restricted shares.
7.37. Other comprehensive income
Unit: CNY
Current Period
Less: Less:
Previously Previously
Amount in recognize recognize Amount Amount
Opening current d in other
d in other attributabl
Item period comprehe comprehe Less:
attributabl e to non- Closing
Balance nsive Income e to Balancebefore nsive income tax parent
controlling
income income company sharehold
tax transferre transferre after tax ers after
d to profit d to tax
and loss retainedearnings
I. Other
comprehe
nsive
income
that will 1002461 5183886 5184171 1520878
not be -2847.8234.07 8.58 6.40 50.47
reclassifie
d into
profit and
loss
Other
comprehe 178179.7 610470.0 613317.8 791497.5
nsive -2847.820 4 6 6
income
2202025 Annual Report of Luzhou Laojiao Co. Ltd.
that will
not be
reclassifie
d into
profit and
loss under
equity
method
Fair value
changes
of other
equity 1000679 5122839 5122839 1512963
instrument 54.37 8.54 8.54 52.91
investmen
t
II. Other
comprehe
nsive
income - - -
that will be 6681785. 7552021.1601101 870236.1 8458996.reclassifie 60 748.69 4 95
d into
profit and
loss
Including:
Other
comprehe
nsive
income - -
that will be 8615162. 8615162.reclassifie 1979213 111769786 86
d into 6.19 3.33
profit and
loss under
equity
method
Difference
from
conversio
n of - - -
financial 3781117. 2717976.1933377. 1063141. 870236.1
statement 50 3826 12 4
s in
foreign
currency
-
Total 8423511 5852065 5939373 1436288-2847.82 870236.1
5.384.188.1453.52
4
7.38. Surplus reserves
Unit: CNY
Item Opening Balance Increase in current Decrease in currentperiod period Closing Balance
Statutory surplus
1471951503.009540.001471941963.00
reserves
Total 1471951503.00 9540.00 1471941963.00
Statements of surplus reserves including notes to increase and decrease during the reporting period
and the reasons for changes:
Note: The provision ratio of the Company’s statutory surplus reserves has always remained at 100%
2212025 Annual Report of Luzhou Laojiao Co. Ltd.
of the share capital. Therefore it has been adjusted accordingly with the reduction of share
repurchase this year.
7.39. Undistributed profits
Unit: CNY
Item Current Period Previous Period
Undistributed profit before
adjustment at the end of the last year 39340298309.42 33815566574.75
Undistributed profit after adjustment
at the beginning of year 39340298309.42 33815566574.75
Plus: Net profit attributable to owners
of the parent company for the current 10830713936.14 13472986476.01
period
Less: Provision of statutory surplus
reserves -9540.00 -36266.00
Ordinary share dividends
payable 8757931909.58 7948382058.83
Other transfer in -2847.82 91051.49
Undistributed profits at the end of the
period 41413087028.16 39340298309.42
7.40. Operating revenue and cost of sales
Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 25457964458.18 3321343200.85 30742480590.43 3719472050.52
Other business 273046189.14 120406381.84 453767617.90 168644133.41
Total 25731010647.32 3441749582.69 31196248208.33 3888116183.93
Whether the lowest of the Company’s total profit net profit net profit after deduction of non-recurring
gains and losses for the reporting period through audit is negative
□Yes □ No
Details:
Unit: CNY
Baijiu sales Total
Contract category
Operating revenue Cost of sales Operating revenue Cost of sales
Commodity type
Including:
Medium and high
grade baijiu 22967954695.59 2080399388.33 22967954695.59 2080399388.33
Other baijiu 2637587357.62 1317009724.41 2637587357.62 1317009724.41
Other revenue 125468594.11 44340469.95 125468594.11 44340469.95
By operating
segment
Including:
Domestic 25534165136.80 3412604641.73 25534165136.80 3412604641.73
Outbound 196845510.52 29144940.96 196845510.52 29144940.96
Market or customer
2222025 Annual Report of Luzhou Laojiao Co. Ltd.
type
Including:
Contract type
Including:
Recognize revenue
at point in time 25674673387.40 3403694700.83 25674673387.40 3403694700.83
Recognize revenue
by time period 56337259.92 38054881.86 56337259.92 38054881.86
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 25731010647.32 3441749582.69 25731010647.32 3441749582.69
Other statements
Note 1: The classification standard for Medium and high grade baijiu of the Company is any product
with a selling price including VAT of CNY 150 or more per bottle. Representative product categories
include National Cellar 1573 Luzhou Laojiao Tequ and Century-old Luzhou Laojiao Jiaoling Baijiu.“Other baijiu” is defined as any product with a selling price including VAT of less than CNY 150 per
bottle.Note 2: The Company's main business is the production and sale of baijiu. Revenue is recognized at
the point when the Company transfers control of the relevant goods to the customer and fulfills its
performance obligations.Information in relation to the transaction price apportioned to the residual contract performance
obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was CNY 3367443727.83 at the period-end among which
CNY 3367443727.83 was expected to be recognized in 2026.
7.41. Business taxes and surcharges
Unit: CNY
Item Current Period Previous Period
Consumption tax 3104586232.09 3758818690.82
Urban maintenance and construction
tax 400304422.11 493311257.37
Educational surcharge 173304352.28 214918037.88
Property tax 76320532.63 77927281.84
Land use tax 27858248.28 34031578.65
Stamp duty 29635602.22 31293251.08
Local education surcharge 115536234.80 143278691.91
Others 197752.11 176791.63
Total 3927743376.52 4753755581.18
2232025 Annual Report of Luzhou Laojiao Co. Ltd.
7.42. General and administrative expenses
Unit: CNY
Item Current Period Previous Period
Employee compensation 461004477.14 477879760.77
Depreciation and amortization 111584289.01 106444738.22
Share-based payment expense 44069367.51 100696953.42
Service expense and others 345763467.14 415758512.15
Total 962421600.80 1100779964.56
7.43. Selling and distribution expenses
Unit: CNY
Item Current Period Previous Period
Advertising promotion expense 1275745184.28 1548153847.96
Promotion expense 1281434004.00 1109741814.61
Employee compensation 323502036.15 387418851.76
Storage and logistics costs 140429747.50 162568387.89
Share-based payment expense 18588708.87 48618883.85
Others 197449688.35 281880829.92
Total 3237149369.15 3538382615.99
7.44. Research and development expenses
Unit: CNY
Item Current Period Previous Period
Comprehensive research and
215855671.81260975311.10
development expenses
Total 215855671.81 260975311.10
7.45. Financial expenses
Unit: CNY
Item Current Period Previous Period
Interest expenses 156570325.031 304312417.15
Less: Interest income -678460704.26 -797923434.30
Losses from currency exchange 4817776.90 -3165346.43
Handling charges 4143657.95 7119485.05
Amortization of unrecognized
financing costs 933150.65 1135819.21
Total -511995793.73 -488521059.32
Note: 1 The interest expenses decreased by 48.55% year- on- year mainly due to the gradual
maturity and repayment of the Company’s loans from financial institutions and bonds which resulted
in a reduction in the scale of interest- bearing debt.
2242025 Annual Report of Luzhou Laojiao Co. Ltd.
7.46. Other income
Unit: CNY
Source Current Period Previous Period
Government grants 50072435.13 41225885.28
Other refund (Individual income tax
handling fee refund) 2820191.39 2526666.45
Total 52892626.52 43752551.73
7.47. Gain on changes in fair value
Unit: CNY
Source Current Period Previous Period
Held-for-trading financial assets 7777112.49 27528769.00
Held-for-trading financial liabilities 9870.60
Total 7777112.49 27538639.60
7.48. Investment income
Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under the equity 156406734.29 106578492.71
method
Investment income from disposal of
long-term equity investments 9330148.27
Investment income gained during the
period of holding held-for-trading 25160965.67 46953767.52
financial assets
Investment income from disposal of
held-for-trading financial assets 2830900.55 -29465560.31
Dividend income gained during the
period of holding other equity 14616364.68 14976454.55
instrument investment
Income from derecognition of
financial assets measured at fair 1
value with changes recorded in other -73082640.84 -158251822.92
comprehensive income
Investment losses from foreign
exchange forward transaction -14339.62
Total 125932324.35 -9892859.80
Note: 1 The Company presented the discounting expenses of derecognized bank acceptance bills
under this account.Other statements:
Including: investment income from long-term equity investments under the equity method:
Item Current Period Previous Period
Huaxi Securities Co. Ltd. 152819549.79 75663468.99
Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co. Ltd. 131760.45 -1657275.64
Sichuan Development Liquor Investment Co. Ltd. 42543.97 -19699.92
2252025 Annual Report of Luzhou Laojiao Co. Ltd.
Item Current Period Previous Period
Sichuan Tongniang Baijiu Industry Technology Research
Institute Co. Ltd. -111332.95 -67425.97
CTS Luzhou Laojiao Cultural Tourism Development Co.Ltd. 2513739.68 30048548.68
Sichuan Tianfu Granary Liquor Industry Co. Ltd. 1010473.35 2610876.57
Total 156406734.29 106578492.71
Including: dividend income gained during the period of holding other equity instrument investment:
Item Current Period Previous Period
North Chemical Industries Co. Ltd. 62542.20 78177.75
Guotai Haitong Securities Co. Ltd. 5064108.71 6477348.35
Luzhou Sanrenxuan Liquor Industry Co. Ltd. 3000000.00 2500000.00
Luzhou Bank Co. Ltd. 5207040.00 3905280.00
China Tourism Group Duty Free Corporation Limited 1282673.77 2015648.45
Total 14616364.68 14976454.55
7.49. Credit impairment loss
Unit: CNY
Item Current Period Previous Period
Bad debt loss of accounts receivable 208093.09 711115.91
Bad debt loss of other receivables 40168804.02 921121.70
Total 40376897.11 1632237.61
7.50. Gains from disposal of assets
Unit: CNY
Source Current Period Previous Period
Gains from disposal of fixed assets -520993.44 1058750.22
Gains from disposal of intangible
assets
Gains from disposal of investment
property
Gains from disposal of use right
assets -13061.24
Total -534054.68 1058750.22
7.51. Non-operating income
Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Gains from retirement of
non-current assets 863750.83 863750.83
Compensation for default 21076933.97 19994603.60 21076933.97
Others 4908551.40 4235258.66 4908551.40
Total 26849236.20 24229862.26 26849236.20
2262025 Annual Report of Luzhou Laojiao Co. Ltd.
7.52. Non-operating costs
Unit: CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Donation 36710000.00 11979052.40 36710000.00
Losses from damage
retirement of non-current 290137.91 13325050.92 290137.91
assets
Others 20445107.83 475870.15 20445107.83
Total 57445245.74 25779973.47 57445245.74
7.53. Income tax expense
7.53.1. Statement of income tax expense
Unit: CNY
Item Current Period Previous Period
Current period income tax 3638133812.29 4442748346.01
Deferred income tax 155891243.87 264771902.14
Total 3794025056.16 4707520248.15
7.53.2. Adjustment for accounting profit and income tax expense
Unit: CNY
Item Current Period
Total profit 14653935736.33
Income tax expenses determined by statutory/applicable
tax rate 3663483934.08
Impact from subsidiaries’ different tax rates 1845604.23
Impact from adjustment for impact from income tax
expense in previous period 123149305.58
Impact from non-taxable income -39774608.81
Impact from non-deductible costs expenses and losses 21435765.26
Impact from deductible temporary difference or losses
due to unrecognized deferred tax asset in current period 18011741.34
Income tax impact of expected pre-tax deductible
amounts of restricted shares in future periods that are 19830876.79
less than the recognized cost and expenses
Deduction impact of research and development costs -13957562.31
Income tax expense 3794025056.16
7.54. Other comprehensive income
Details in Note 7.35. Other comprehensive income.
2272025 Annual Report of Luzhou Laojiao Co. Ltd.
7.55. Notes to the statement of cash flow
7.55.1. Cash related to operating activities
Cash received from other operating activities
Unit: CNY
Item Current Period Previous Period
Recovery of saving deposits
involving contract disputes 32747607.52 3465620.33
Government grants 49195033.95 103303033.55
Interest income from bank deposit 477245652.50 667147733.48
Others 175380553.37 195416669.46
Total 734568847.34 969333056.82
Cash paid for other operating activities
Unit: CNY
Item Current Period Previous Period
Cash paid for expenses 2441195520.64 2204134745.45
Restricted court frozen funds paid 44089.72 18000003.44
Cash paid to E-commerce platform
as security deposit 20520.00 3979979.79
Total 2441260130.36 2226114728.68
7.55.2. Cash related to investing activities
Cash received from significant investing activities
Unit: CNY
Item Current Period Previous Period
Recovering the principal invested in
2200000000.002160000000.00
held-for-trading financial assets
Total 2200000000.00 2160000000.00
Cash paid for other investing activities
Unit: CNY
Item Current Period Previous Period
Loss on forward exchange settlement 14339.62
Total 14339.62
Cash paid for significant investing activities
Unit: CNY
Item Current Period Previous Period
Cash paid for purchasing long-term
1932762969.971188370866.64
assets
Cash paid for purchasing held-for-
2100000000.002460000000.00
trading financial assets
Total 4032762969.97 3648370866.64
7.55.3. Cash related to financing activities
Cash paid for other financing activities
2282025 Annual Report of Luzhou Laojiao Co. Ltd.
Unit: CNY
Item Current Period Previous Period
Refund of minority shareholders’
investments when a subsidiary was 9074676.53
deregistered
Cash paid for repurchase of
704920.143025890.81
restricted shares
Net losses from put-back of bonds
Cash paid for rent of right-of-use
9363065.838138594.92
assets
Total 10067985.97 20239162.26
Changes in liabilities arising from financing activities
□ Applicable □ N/A
Unit: CNY
Increase in current period Decrease in current period
Item Opening ClosingBalance Cash change Non-cash Non-cash Balancechange Cash change change
Long-term
loans
(including
long-term 8005483276 408166310.9 1738176946 669178085616308215.15
loans due .22 3 .25 .05
within one
year)
Bonds
payable
(including
bonds 1541356991 155250000011143008.50
payable due .50 .00
within one
year)
Lease
liabilities
(including
lease liabilities 34216868.15 424056.22 9363065.83 25277858.54
due within one
year)
Other
payables
(Repurchase 345699443.8 185360249.2 159634274.4
obligations of 704920.149 8 7
restricted
shares)
9926756579408166310.93300744932185360249.26876692989
Total 27875279.87.763.228.06
7.56. Supplementary information to statement of cash flow
7.56.1. Supplementary information to statement of cash flow
Unit: CNY
Item Current Period Previous Period
1. Reconciliation of net profit to cash
flow from operating activities:
Net profit 10859910680.17 13497778570.89
Plus: Provision for asset impairment -40376897.11 -1632237.61
2292025 Annual Report of Luzhou Laojiao Co. Ltd.
Depreciation of fixed asset oil and
gas assets and productive biological 679729252.35 680834155.15
assets
Depreciation of right-of-use assets 8694005.79 9694652.62
Amortization of intangible assets 104502575.17 92110427.08
Amortization of long-term deferred
expense 721286.55 715835.64
Losses from disposal of fixed assets
intangible assets and other long-term 534054.68 -1058750.22
assets (Gains use “-”)
Losses from retirement of fixed
assets (Gains use “-”) -573612.92 13325050.92
Losses from change in fair value
(Gains use “-”) -7777112.49 -27538639.60
Financial expenses (Gains use “-”) 162321252.58 302282889.93Losses on investments (Gains use “-”)-199014965.19-148358963.12
Decrease in deferred income tax
assets (Increase uses “-”) 153432210.88 250244524.88
Increase in deferred income tax
liabilities (Decrease uses “-”) 2461075.93 15602686.66
Decrease in inventories (Increase
use “-”) -2003237231.39 -1770750528.50
Decrease in operating receivables
(Increase use “-”) 299526477.64 4167999841.68
Increase in operating payables
(Decrease use “-”) -2897634374.76 2100518847.25
Others
Net cash flows from operating
activities 7123218677.88 19181768363.65
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
equivalents:
Closing balance of cash 26925093961.821 33367668014.46
Less: Opening balance of cash 33367668014.46 25893029277.86
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net change in cash and cash
equivalents -6442574052.64 7474638736.60
Note: 1 The amount of direct payment for goods and long-term assets (not involving cash flows) by
the endorsement of bank acceptances receivable in the current and previous periods was CNY
827500000.00 and CNY 753480000.00 respectively which were not included in "cash received
from sales of goods or rendering of services" "cash paid for goods and services" and "cash paid for
the purchase of fixed assets intangible assets and other long-term assets" of the cash flow budget.
2302025 Annual Report of Luzhou Laojiao Co. Ltd.
7.56.2. Composition of cash and cash equivalents
Unit: CNY
Item Opening Balance Closing Balance
1. Cash 26925093961.82 33367668014.46
Including: Cash on hand 27640.75
Unrestricted bank deposit 26905255479.85 33325611589.29
Other unrestricted cash and
cash equivalents 19838481.97 42028784.42
3. Closing balance of cash and cash
equivalents 26925093961.82 33367668014.46
7.56.3. Monetary funds not classified as cash and cash equivalents
Unit: CNY
Item Current Period Previous Period Reason
Provision for fixed deposit
Bank deposit 393834614.88 181100955.95
interest on an accrual basis
Co-management account
managed in accordance
Other monetary funds 10000053.87 with the measures for the
administration of special
funds for projects
Restricted bank cash
Other monetary funds 10023572.23 10000000.00
deposits for L/G
Restricted cash deposit in
Other monetary funds 1404495.57 1627857.48
E-commerce platforms
Other monetary funds 1200000.00 18000003.44 Frozen funds by the court
Other business-related
Other monetary funds 10000.00
frozen funds
Total 416472736.55 210728816.87
7.57. Foreign currency transactions
7.57.1. Foreign currency transactions
Unit: CNY
Item Closing Balance in ForeignCurrency Exchange Rate Closing Balance in CNY
Cash at Bank and on Hand 438428302.65
Including: USD 61701162.64 7.0288 433685131.97
EUR
HKD 5251401.30 0.90322 4743170.68
Accounts Receivable 2620596.97
Including: USD
EUR
HKD 2901393.87 0.90322 2620596.97
Other Receivables 1339851.46
Including: USD 18697.65 7.0288 131422.04
HKD 1337912.60 0.90322 1208429.42
Accounts Payable 14123208.46
2312025 Annual Report of Luzhou Laojiao Co. Ltd.
Including: USD 12811.29 7.0288 90048.00
HKD 15536813.25 0.90322 14033160.46
Other Payables 4081671.12
Including: USD 5500.00 7.0288 38658.40
HKD 4476221.43 0.90322 4043012.72
Prepayments 999035.73
Including: USD 5323.66 7.0288 37418.94
HKD 1064654.00 0.90322 961616.79
Non-current liabilities due
within one year 4222929.16
Including: USD 71615.20 7.0288 503368.92
HKD 4118111.03 0.90322 3719560.24
Lease liabilities 4394092.53
Including: USD 6217.01 7.0288 43698.12
HKD 4816539.06 0.90322 4350394.41
Long-term Loans
Including: USD
EUR
HKD
7.57.2. 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
Company Operation site Bookkeepingcurrency Choosing Reason
Luzhou Laojiao International Development Currency in the
(Hong Kong) Co. Ltd. Hong Kong China HKD registration place
Luzhou Laojiao Commercial Development Currency in the
(North America) Co. Ltd. USA USD registration place
Mingjiang Co. Ltd. USA USD Currency in theregistration place
7.58. Lease
7.58.1. The Company as lessee
□ Applicable □ N/A
Variable lease payments that are not covered in the measurement of the lease liabilities
□ Applicable □ N/A
Simplified short-term lease or lease expense for low-value assets
□ Applicable □ N/A
The Company uses a simplified approach for short-term leases where the right-of-use assets and
lease liabilities are not recognized. Short-term leases accounted for as expenses in the current period
are listed below:
Item Current Period Previous Period
2322025 Annual Report of Luzhou Laojiao Co. Ltd.
Item Current Period Previous Period
Short-term lease expenses recognized as current profit or loss 7572863.43 8276228.61
in the current period using the simplified approach
Total cash outflows related to leases 16935929.26 16408823.53
Note: The leased assets of the Company include the buildings and constructions and the land use
right involved in operation. The leasing period of land use right is normally 15-30 years and the lease
contract of land use right generally includes the renewal option clause.Circumstances involving sale and leaseback transactions
None.
7.58.2. The Company as lessor
Operating leases with the Company as lessor
□ Applicable □ N/A
Unit: CNY
Of which: income related to variable
Item Rental income lease payments not included in lease
receipts
Income from rental of buildings
12365562.02
equipment etc.Total 12365562.02
Finance leases with the Company as lessor
□ Applicable □ N/A
Undiscounted lease receipts for each of the next five years
□ Applicable □ N/A
Reconciliation of undiscounted lease receipts to net lease investments
7.58.3. Recognition of gain or loss on sales under finance leases with the company as a
manufacturer or dealer
□ Applicable □ N/A
7.59. Others
None.
8. Research and Development Expenditure
Unit: CNY
Item Current Period Previous Period
Material consumption 13559369.99 41829620.38
Research and development and
50996780.8670364674.63
technical services
Share payment expense 5499198.18 12843885.44
Other indirect costs 150085240.49 135937130.65
2332025 Annual Report of Luzhou Laojiao Co. Ltd.
Total 220140589.52 260975311.10
Of which: Expensed research and
215855671.81260975311.10
development expenditure
Capitalized research and
4284917.71
development expenditure
9. Changes in consolidated scope
9.1. Business combination not under common control
9.1.1. Business combination not under common control during current period
There is no business combination not under common control during current period.
9.2. Business combination under common control
9.2.1. Business combination under common control during current period
There is no business combination under common control during current period.
9.3. 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.
9.4. 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
9.5. 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:
In August 2025 the Company invested and incorporated a wholly-owned subsidiary Luzhou Laojiao
Cultural Tourism Development Co. Ltd.
9.6. Other
None.
2342025 Annual Report of Luzhou Laojiao Co. Ltd.
10. Interests in other entities
10.1. Interests in subsidiaries
10.1.1. Group composition
Unit: CNY
Name of Registered Major Shareholding Proportion
Subsidiaries capital business
Place of Nature of Acquisition
location registration business Direct Indirect method
Luzhou
Laojiao 48758223 BaijiuBaijiu Luzhou Luzhou manufactur 100.00% Investment
Production 6.00 e and sale
Co. Ltd.Luzhou Red
Sorghum Agricultural Business
Modern 10000000. Luzhou Luzhou product
combination
Agricultural planting and 60.00% under00
Developme sale common
nt Co. Ltd. control
Luzhou
Laojiao 10000000
Sales Co. Luzhou Luzhou Baijiu sale 100.00% Investment0.00
Ltd.Luzhou
Laojiao
Nostalgic 5000000.0
Liquor Luzhou Luzhou Baijiu sale 100.00% Investment0
Marketing
Co. Ltd.Luzhou
Laojiao
Selected
Supply 10000000. Luzhou Luzhou Baijiu sale 100.00% Investment
Chain 00
Manageme
nt Co. Ltd.Guangxi
Luzhou
Laojiao 10000000. Red wineImported Qinzhou Qinzhou production 100.00% Investment
Liquor 00 and sale
Industry
Co. Ltd.Luzhou
Dingli
Liquor 5000000.0 Luzhou Luzhou Baijiu sale 100.00% Investment
Industry 0
Co. Ltd.Luzhou
Laojiao
Qiankun
Cheteau 5000000.0
Custom Luzhou Luzhou Baijiu sale 100.00% Investment0
Liquor
Sales Co.Ltd.2
Luzhou
Laojiao
New Liquor 5000000.0 Luzhou Luzhou Baijiu sale 100.00% Investment
Industry 0
Co. Ltd.
2352025 Annual Report of Luzhou Laojiao Co. Ltd.
Luzhou 3000000.0 LiquorLaojiao I & Luzhou Luzhou import and 100.00% Investment
E Co. Ltd. 0 export trade
Luzhou
Laojiao
Boda Liquor 12000000
Industry Luzhou Luzhou Baijiu sale 75.00% Investment0.00
Marketing
Co. Ltd.Luzhou
Laojiao
Fruit Wine 50000000. Luzhou Luzhou Fruit wine
Industry 00 sale
41.00% Investment
Co. Ltd.Mingjiang
Co. Ltd. 6000000.0 America America Baijiu sale 54.00% Investment
(USD) 0
Luzhou
Laojiao
Internationa 20000000.l Trade Hainan Hainan
Food import
and export 100.00% Investment00
(Hainan)
Co. Ltd.Luzhou Technology
Pinchuang 50000000.Technology Luzhou Luzhou
developmen
00 t and
100.00% Investment
Co. Ltd. service
Luzhou
Laojiao
Internationa
l
Developme 10000.00 Hong Kong Hong Kong Liquor sale 55.00% Investment
nt (Hong
Kong) Co.Ltd. (HKD)
Luzhou
Laojiao
Commercial
Developme Business
nt (North 500000.00 America America developmen 100.00% Investment
America) t
Co. Ltd.(USD)
Luzhou
Laojiao
Electronic 60000000. Luzhou Luzhou Liquor sale 90.00% Investment
Commerce 00
Co. Ltd.Luzhou
Laojiao Health care Business
Health 10000000. liquor combination
Liquor Luzhou Luzhou00 manufactur
100.00% under
Industry e and sale common
Co. Ltd. control
Luzhou
Laojiao Business
Health 5000000.0 Health care combination
Liquor Luzhou Luzhou0 liquor sale
100.00% under
Sales Co. common
Ltd. control
Luzhou
Laojiao 50000000.New Retail Luzhou Luzhou Baijiu sale 40.00% 60.00% Investment00
Co. Ltd.Luzhou 50000000 TechnologyChengdu Chengdu developmen 40.00% 60.00% Investment
Laojiao 0.00 t and
2362025 Annual Report of Luzhou Laojiao Co. Ltd.
Technology service
Innovation
Co. Ltd.Luzhou
Laojiao
Cultural 30000000. Luzhou Luzhou Cultural 40.00% 60.00% Investment
Tourism 00 tourism
Developme
nt Co. Ltd.Statement for the fact that the proportion of share-holding is different from the proportion of voting
rights:
Note: Although the Company holds less than 51% of the equity in Luzhou Laojiao Fruit Wine Industry
Co. Ltd. of the five members of the board of directors of the company three members are appointed
by the Company which represents a majority and the Company exercises substantive control over
the company. Therefore it is included in the scope of consolidation.
10.1.2. Important non-wholly-owned subsidiaries
Unit: CNY
Proportion of share Gains and losses
holdings of non- attributable to non-
Dividends paid to Closing balance of
Name of subsidiary Controlling Controlling
non-controlling
shareholders during shareholders during
non-controlling
shareholders shareholders interestcurrent period current period
Luzhou Laojiao Boda
Liquor Industry 25.00% 28163719.84 28163719.84 61843872.29
Marketing Co. Ltd.
10.1.3. Major financial information of important non-wholly-owned subsidiaries
Unit: CNY
Closing Balance Opening Balance
Name
of Curre Non- Curre
Non- Non- Curre Non-
subsid nt curren Total nt
curren Total Curre
t liabiliti nt curren Total nt
curren Total
t assets liabiliti t liabilitiiary assets assets es liabiliti es assets
t assets liabiliti
assets es liabiliti eses es
Luzho
u
Laojia
o
Boda
44824482200820084711471122372237
Liquor
56895689814081403642364260936093
Indust
3.263.264.114.116.866.867.717.71
ry
Marke
ting
Co.Ltd.Unit: CNY
Current Period Previous Period
Name of Total Total
subsidiary Operating Net profit comprehe Operating Operatingrevenue nsive cash flow revenue Net profit
comprehe Operating
nsive cash flow
income income
2372025 Annual Report of Luzhou Laojiao Co. Ltd.
Luzhou
Laojiao
Boda
12107001126548112654811455971540208118673111867311022042.
Liquor
465.9279.3879.3877.43491.8160.8260.8222
Industry
Marketing
Co. Ltd.Other statements:
10.1.4. Significant restrictions on using the assets and liquidating the liabilities of the
Company
None.
10.1.5. Financial support or other supports provided to structural entities incorporated into the
scope of consolidated financial statements
None.Other statements:
10.2. The transaction of the company with its owner's equity share changing but
the company still controls the subsidiary
10.2.1. Note to the owner's equity share changed in subsidiary
None.
10.2.2. The transaction’s influence on the equity of non-controlling interests and the owner's
equity attributable to the company as the parent
None.
10.3. Interests in joint ventures and associates
10.3.1. Important joint ventures and associates
Name of joint Major Shareholding proportion
venture/associ business Place of Business Accounting
ates location registration nature Direct Indirect Method
Important joint
ventures:
none
Important
associates:
Huaxi
Securities Chengdu ChengduSichuan Sichuan Securities 10.39% Equity methodCo. Ltd.Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or
more voting rights but does not have a significant impact:
The Company has the substantive decision-making power so the Company still has significant
2382025 Annual Report of Luzhou Laojiao Co. Ltd.
influence on Huaxi Securities.
10.3.2. Major financial information of important associates
Unit: CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Current assets 96509002038.54 93869804524.81
Non-current assets 8934253870.69 6470872129.58
Total assets 105443255909.23 100340676654.39
Current liabilities 58119608404.73 55278203069.28
Non-current liabilities 22531896382.85 21499772518.55
Total liabilities 80651504787.58 76777975587.83
Non-controlling shareholder interest 14102701.14 16018731.95
Shareholder interest attributable to
parent company 24777648420.51 23546682334.61
Share of net assets calculated based
on shareholding proportion 2575281586.36 2447340296.67
Adjusted
--Goodwill
--Unrealized profits of internal
transactions
--Others 167466735.90 167466735.90
Book value of equity investments in
associate companies 2742748322.26 2614807032.57
Fair value of equity investments in
associate companies that have public 2531873016.32 2267226806.64
quote
Operating revenue 4615484528.69 3919594533.79
Net profit 1468412144.79 726724518.60
Net profit from discontinued
operation
Other comprehensive income 88781426.46 165051592.33
Total comprehensive income 1557193571.25 893035220.62
Dividends from associate companies
34103893.0013641557.20
this year
10.3.3. Financial information summarized of unimportant joint ventures and associate
companies
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 188056147.51 186445285.36
Total following items calculated on
the basis of shareholding proportion
2392025 Annual Report of Luzhou Laojiao Co. Ltd.
--Net profit 2766667.32 2120824.16
--Total comprehensive income 2766667.32 2120824.16
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co. Ltd. Sichuan Development Liquor Investment Co. Ltd. CTS Luzhou Laojiao Cultural
Tourism Development Co. Ltd. Sichuan Tongniang Baijiu Industry Technology Research Institute Co.Ltd. and Sichuan Tianfu Granary Liquor Industry Co. Ltd.
10.3.4. Notes to the significant restrictions on the ability of joint ventures or associate
companies to transfer funds to the Company
None.
10.3.5. The excess loss of joint ventures or associate companies
None.
10.3.6. The unrecognized commitment related to investment to joint ventures
None.
10.3.7. Contingent liabilities related to investment to joint ventures or associate companies
None.
11. Government grants
11.1. Government grants recognized at the end of the reporting period at the
amount receivable
□ Applicable □ N/A
Reasons for failing to receive government grants in the estimated amount at the estimated point in
time
□ Applicable □ N/A
11.2. Liability items involving government grants
□ Applicable □ N/A
Unit: CNY
Non- Other
Item Opening
Increase in operating
current income in income in Other Closing
Related to
Balance period current current changes Balance
assets/
income
period period
Deferred 86672726. 22315000. 26473781. 82513945. Related to
income 83 00 06 77 assets
86672726.22315000.26473781.82513945.
Total
83000677
2402025 Annual Report of Luzhou Laojiao Co. Ltd.
11.3. Government grants recognized as current profit or loss
□ Applicable □ N/A
Unit: CNY
Item Amount in current period Amount in previous period
Other income 50072435.13 41225885.28
Non-operating revenue
Total 50072435.13 41225885.28
Other statements:
12. Risks related to financial instruments
12.1. Various types of risks arising from 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 accounts payable other payables lease liabilities some other current liabilities and loans.A detailed description of each financial instrument is set out in Note 7. Notes to the main items of the
consolidated financial statements.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
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.
2412025 Annual Report of Luzhou Laojiao Co. Ltd.
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 market 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.
12.1.1. 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 December 31 2025 the balance of the top
five customers of the Company's accounts receivable amounted to CNY 6.0378 million accounting for
93.65% of the balance of the Company's accounts receivable.
12.1.2. Liquidity risk
Liquidity risk refers to the risk unable to obtain sufficient funds in time to meet business development
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 bank loans and issuing corporate bonds to maintain a balance
between financing sustainability and flexibility. As at December 31 2025 the Company has been able
to meet its own continuing operation requirements through the use of cash flow from operations.
2422025 Annual Report of Luzhou Laojiao Co. Ltd.
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
Book value Contract amountnot discounted Within 1 year 1-2 years 2-3 years Over 3 years
Accounts
payable 1413421175.80 1413421175.801413421175.80
Other payable 587589747.04 587589747.04 587589747.04
Non-current
liabilities due 4074199213.05 4074199213.054074199213.05
within one year
Long-term
loans 2627166310.93 2627166310.93 2219000000.00 408166310.93
Lease
liabilities 15693190.61 16070581.80 5679181.80 5069000.00 5322400.00
Total 8718069637.43 8718447028.626075210135.89 2224679181.80 5069000.00 413488710.93
12.1.3. Market risk
(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 fluctuations on its foreign exchange risk and actively tracks the scale of foreign currency
transactions as well as foreign currency assets and liabilities to minimize exposure to exchange rate
risks. In order to hedge risks in the foreign exchange market prevent adverse effects from significant
fluctuations in exchange rates control financial expenses and reduce exchange rate risks in overseas
operations the Company's subsidiary Luzhou Laojiao International Development (Hong Kong) Co.Ltd. has engaged in forward foreign exchange contract transactions. As at December 31 2025 the
Company's assets and liabilities are mainly in CNY balance. At present the Company's management
considers the impact of changes in foreign exchange risk on the Company's financial statements to be
less.
(2) Rate risk
The Company's interest rate risk mainly arises from the long-term loans from banks. 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.
(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
financial instrument or its issuer or all similar financial instruments traded in the market. Other price
risks faced by the Company mainly come from held-for-trading financial assets and investments in other
equity instruments measured at fair value.
2432025 Annual Report of Luzhou Laojiao Co. Ltd.
12.2. Financial assets
12.2.1. Classification of transfer methods
□ Applicable □ N/A
Unit: CNY
Amount of
Nature of transferred Basis for
Transfer method transferred financial Derecognized or not
financial assets derecognition
assets
Outstanding bank
Almost all its risks
Endorsement of acceptance bills in
225069362.87 Yes and rewards have
notes accounts receivable
been transferred
financing
Outstanding bank
Almost all its risks
acceptance bills in
Discount of notes 2024406085.76 Yes and rewards have
accounts receivable
been transferred
financing
Total 2249475448.63
12.2.2. Financial assets derecognized due to transfer
□ Applicable □ N/A
Unit: CNY
Method of financial assets Amount of derecognized Gains or losses related to
Item
transfer financial assets derecognition
Outstanding bank
acceptance bills in
Endorsement of notes 225069362.87
accounts receivable
financing
Outstanding bank
acceptance bills in
Discount of notes 2024406085.76 -9216740.71
accounts receivable
financing
Total 2249475448.63 -9216740.71
12.2.3. Continued involvement in the transfer of financial assets
□ Applicable □ N/A
Other statement
13. Fair value disclosure
13.1. Closing fair value of assets and liabilities measured at fair value
Unit: CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
1. Continuous
measurement at fair -- -- -- --
value
2442025 Annual Report of Luzhou Laojiao Co. Ltd.
1.1 Held-for-trading
financial assets 1584771959.37 1584771959.37
1.1.1 Financial
assets measured at
fair value with their
changes included 1584771959.37 1584771959.37
into current
profits/losses
1.1.1.4 Wealth
management 1584771959.37 1584771959.37
products
1.3 Investments in
other equity 442241327.25 33257910.65 475499237.90
instruments
1.6 Accounts
receivable financing 1466494973.96 1466494973.96
Total assets
continuously
442241327.253084524843.983526766171.23
measured at fair
value
2. Discontinuous
measurement at fair -- -- -- --
value
13.2. 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.
13.3. Valuation technique adopted and nature and amount determination of
important parameters for either continuously or discontinuously within Level 2 of
the fair value hierarchy
None.
13.4. Valuation technique adopted and nature and amount determination of
important parameters for either 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.
2452025 Annual Report of Luzhou Laojiao Co. Ltd.
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.
13.5. 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.
13.6. 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.
13.7. Changes in valuation techniques in the reporting period and reasons for the
changes
None.
13.8. Fair value of financial assets and liabilities not measured at fair value
None.
14. Related parties and related party transactions
14.1. The parent company of the Company
Shareholding Voting rights
Parent company Registration Registeredplace Business nature capital proportion by the proportion by theparent company parent company
Luzhou Laojiao Investment and
Group Co. Ltd. Luzhou Sichuan asset 2798818800 26.05% 50.99%management
Statements for situation of parent company:
Note: The reason for the inconsistency between the shareholding proportion and voting rights
proportion by the controlling shareholder is that: * On May 23 2024 Laojiao Group and XingLu
Investment Group the second biggest shareholder renewed the concerted action agreement again
which is valid as of June 1 2024 and ends on May 31 2027. The agreement: when the parties
dealing 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
2462025 Annual Report of Luzhou Laojiao Co. Ltd.
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. * From March 2025 to September 2025 Laojiao Group increased its
holdings of the Company’s shares by 2345250 shares via centralized bidding transactions. For
details please see Note 3. Company Profile.The nature of the controlling shareholder: Limited liability company (state-owned); Registration place:
Innovation and Entrepreneurship Center Liquor Industry Park Huangyi Town Jiangyang District
Luzhou City 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; equity fund-invested asset management services passenger ticket agent and business
agency service. 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.(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.Other statements:
(1) Registered capital of the controlling shareholder and its changes (Unit: CNY 10000)
Increase in Decrease in
Controlling shareholder Opening balance Closing balance
current period current period
Luzhou Laojiao Group Co. Ltd. 279881.88 279881.88
(2) Shares or equity interests held by the controlling shareholder and the changes therein
Shareholding amount Shareholding proportion (%)
Shareholding Shareholding at
Controlling shareholder
Closing balance Opening balance at the end of the beginning of
the year the year
Luzhou Laojiao Group Co. Ltd. 383433639.00 381088389.00 26.05 25.89
14.2. Subsidiaries of the Company
For details please see Note 10.1. Interests in subsidiaries.
2472025 Annual Report of Luzhou Laojiao Co. Ltd.
14.3. Joint ventures and associates of the Company
For details please see Note 10.3. Interests in joint ventures and associates.
14.4. Other related party of the Company
Name of Other Related Party Relationship with the Company
Luzhou XingLu Investment Group Co. Ltd. The second largest shareholder
Luzhou Airport (Group) Co. Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Water (Group) Co. Ltd. Subsidiary of the second largest shareholder
Luzhou Public Transport Group Co. Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Property Management Co. Ltd. Subsidiary of the second largest shareholder
CTS Luzhou Laojiao Cultural Tourism Development Co.Associate
Ltd.Sichuan Tianfu Granary Liquor Industry Co. Ltd. Associate
Sichuan Development Liquor Investment Co. Ltd. Associate
Luzhou Sanrenxuan Liquor Industry Co. Ltd. Associate of the controlling shareholder
Sichuan Jianxing Park Operation Management Co. Ltd. Associate of the controlling shareholder
Luzhou COSCO Shipping Logistics Co. Ltd. Associate of the controlling shareholder
Sichuan Landstar Supply Chain Technology Co. Ltd. Associate of the controlling shareholder
Shijiazhuang Chengtong Lianzhong Storage and
Associate of the controlling shareholder
Transportation Co. Ltd.Sichuan Sidu Chishui Red Culture Development Co. Ltd. Associate of the controlling shareholder
Sichuan Geyuan Equity Investment Fund Management
Associate of the controlling shareholder
Co. Ltd.Luzhou Bank Co. Ltd. Associate of the controlling shareholder
Luzhou Rural Commercial Bank Co. Ltd. Associate of the controlling shareholder
Sichuan Lianzhong Supply Chain Service Co. Ltd. Other subsidiary of the controlling shareholder
Sichuan Kangrun Group Construction and Installation
Other subsidiary of the controlling shareholder
Engineering Co. Ltd.Shenzhen Mingxincheng Lighting Technology Co. Ltd. Other subsidiary of the controlling shareholder
Luzhou Yuanhai Lianzhong Supply Chain Co. Ltd. Other subsidiary of the controlling shareholder
APTCC Other subsidiary of the controlling shareholder
Luzhou Laojiao Innovation Industry Holdings Co. Ltd. Other subsidiary of the controlling shareholder
Luzhou Jiachuang Liquor Supply Chain Management
Other subsidiary of the controlling shareholder
Co. Ltd.Luzhou Laojiao Property Service Co. Ltd. Other subsidiary of the controlling shareholder
Luzhou Huguo Condiment Co. Ltd. Other subsidiary of the controlling shareholder
SC Global Wine Corporation Limited Other related party
Sichuan Not Single Cultural and Creative Development
Other related party
Co. Ltd.Minority shareholder of the subsidiary Custom Liquor
Sichuan Baijiu Production Art E-business Co. Ltd.Company
Minority shareholder of the subsidiary Custom Liquor
Luzhou Yucheng Trading Co. Ltd.Company
Minority shareholder of the subsidiary Custom Liquor
Luzhou 2013 Liquor Marketing Co. Ltd.Company
Sichuan Meihe Winery Industry Co. Ltd. Minority shareholder of the subsidiary Fruit Wine Industry
2482025 Annual Report of Luzhou Laojiao Co. Ltd.
14.5. Related transactions
14.5.1. Related transactions of purchase and sales of goods / rendering and receipt of
services
Table of purchase of goods / receipt of services
Unit: CNY
Name of Related Amount in Approved trading Whether over Amount in
Party Transaction current period amount approved tradingamount previous period
Receipt of
services:
Training
accommodation
Laojiao Group warehousing
and its loading and
subsidiaries joint unloading 106530297.66 94637427.08
ventures and transportation
associates services and
property costs
etc.Luzhou XingLu
Investment Property service
Group Co. Ltd. advertising 23292479.69 29091328.49
and its service etc.subsidiaries
CTS Luzhou
Laojiao Cultural Conference fees
Tourism travel service 8914614.84 10275324.41
Development fee etc.Co. Ltd.Subtotal of
receipt of 138737392.19 134004079.98
services
Purchase of
goods:
Laojiao Group
and its other Raw materials
subsidiaries joint water power 270080317.97 322867238.48
ventures and etc.associates
Luzhou XingLu
Investment
Group Co. Ltd. Gas water 13469653.07 14699091.83
and its
subsidiaries
Subtotal of
purchase of 283549971.04 337566330.31
goods:
Total 422287363.23 471570410.29
Table of sales of goods and rendering of service
Unit: CNY
Name of Related Party Transaction Amount in current period Amount in previous period
CTS Luzhou Laojiao Liquor etc. 54877667.51 102225092.84
2492025 Annual Report of Luzhou Laojiao Co. Ltd.
Cultural Tourism
Development Co. Ltd.Laojiao Group and its
Liquor etc. 56601495.35 36151086.06
subsidiaries
Luzhou Sanrenxuan Liquor Liquor 38543325.61 37943774.39
Industry Co. Ltd.Sichuan Tianfu Granary Liquor 5021889.15 9273012.30
Liquor Industry Co. Ltd.SC Global Wine Liquor 625965.08 697150.36
Corporation Limited
Sichuan Jianxing Park
Operation Management Liquor 96535.62 76496.28
Co. Ltd.Sichuan Sidu Chishui Red
Culture Development Co. Liquor 38000.00 7764.66
Ltd.Sichuan Geyuan Equity
Investment Fund Liquor 356.22 1150.32
Management Co. Ltd.Sichuan Not Single
Cultural and Creative Liquor 6326.76
Development Co. Ltd.Total 155805234.54 186381853.97
14.5.2. Related party leasing
The Company as lessor:
Unit: CNY
Name of lessee Type of leased asset Leasing income recognized Leasing income recognizedduring current period during previous period
Laojiao Group and its House and equipment
subsidiaries lease 5981119.84 3347760.00
The Company as lessee:
Unit: CNY
Rental expenses
of short-term Variable lease
lease with payments not
Income expense
simplified included in the Increased use
Type Paid rent of lease liabilitiestreatment and measurement of right assets
Name undertakenof low-value asset lease liabilities (ifof lease (if applicable)
lessor assets applicable)
leased Amoun Amoun Amoun Amoun Amoun Amoun
t in t in
Amoun t in Amoun t in Amoun Amoun
previo t in previo t in previo t in
t in t in t in
current current current current previo current previo
period us us us us usperiod period period period period period period period period
Laojiao
Group
and its House 3499 3364 3499 3364
subsidi lease 540.44 818.53 540.44 818.53
aries
2502025 Annual Report of Luzhou Laojiao Co. Ltd.
14.5.3. Key management compensation
Unit: CNY
Item Amount in current period Amount in previous period
Key management compensation 9976525.501 13449854.68
Note: 1 In accordance with the requirements of the new Company Law and the Implementation Plan
for Deepening the Reform of the Board of Supervisors of State-owned Enterprises the Company
completed the reform of its Board of Supervisors during the reporting period. As a result the
statistical scope of key management compensation in this reporting period has changed and the
compensation of supervisors is not included.
14.5.4. Other related transactions
The Company has daily fund deposit business with its related parties Luzhou Bank Co. Ltd. and
Luzhou Rural Commercial Bank Co. Ltd. As of December 31 2025 the bank deposit balances of the
Company in Luzhou Bank Co. Ltd. and Luzhou Rural Commercial Bank Co. Ltd. were CNY
508.6594 million and CNY 609.6356 million respectively. In 2025 the interest income from bank
deposits in Luzhou Bank Co. Ltd. and Luzhou Rural Commercial Bank Co. Ltd. were CNY6.2776
million and CNY 21.5250 million respectively. This year and last year the Company did not conduct
loan business with the above two banks.
14.6. Receivables and payables of related parties
14.6.1. Receivables
Unit: CNY
Closing Balance Opening Balance
Item Related party
Book value Provision for bad Book value Provision for baddebt debt
Prepayment Luzhou Laojiao 8778438.12 9180164.89
Group Co. Ltd.Luzhou XingLu
Prepayment Water (Group) 27682.34 691263.37
Co. Ltd.Luzhou Public
Prepayment Transport Group 161232.86
Co. Ltd.Luzhou China
Resources
Prepayment 107402.91
Xinglu Gas Co.Ltd.Sichuan Meihe
Prepayment Winery Industry 2961479.50 2961479.50
Co. Ltd.Other Luzhou Airport
10000.001000.0010000.00
receivables (Group) Co. Ltd.
14.6.2. Payables
Unit: CNY
2512025 Annual Report of Luzhou Laojiao Co. Ltd.
Item Related party Closing Balance Opening Balance
Accounts payable Sichuan Lianzhong Supply 17764335.79 3302166.70
Chain Service Co. Ltd.Sichuan Kangrun Group
Accounts payable Construction and 7870.20 3738.20
Installation Engineering
Co. Ltd.Accounts payable Luzhou Xinglu Property 342099.50
Management Co. Ltd.CTS Luzhou Laojiao
Contractual liabilities (tax
inclusive) Cultural Tourism 165261.04 30406394.92
Development Co. Ltd.Contractual liabilities (tax
inclusive) APTCC 709197.67 709197.66
Contractual liabilities (tax Luzhou Sanrenxuan Liquor
inclusive) 7633200.00 111325.61Industry Co. Ltd.Sichuan Jianxing Park
Contractual liabilities (tax
inclusive) Operation Management 945027.90 1374481.80
Co. Ltd.Contractual liabilities (tax Sichuan Lianzhong Supply
inclusive) 207700.06 110091.79Chain Service Co. Ltd.Contractual liabilities (tax Luzhou Laojiao Innovation
inclusive) 1592299.16 6587508.00Industry Holdings Co. Ltd.Shijiazhuang Chengtong
Contractual liabilities (tax
inclusive) Lianzhong Storage and 768.78 768.78
Transportation Co. Ltd.Contractual liabilities (tax Luzhou Huguo Condiment
inclusive) 61817.00Co. Ltd.Sichuan Sidu Chishui Red
Contractual liabilities (tax
inclusive) Culture Development Co. 38000.00
Ltd.Contractual liabilities (tax Sichuan Tianfu Granary
inclusive) 4775910.42 6726987.70Liquor Industry Co. Ltd.Other payables Luzhou Xinglu Property 154920.20 154920.20
Management Co. Ltd.Sichuan Kangrun Group
Other payables Construction and 70000.00 70000.00
Installation Engineering
Co. Ltd.Other payables APTCC 150000.00 150000.00
Other payables Luzhou Laojiao Group Co. 5000.00
Ltd.CTS Luzhou Laojiao
Other payables Cultural Tourism 300000.00 1355000.00
Development Co. Ltd.Sichuan Jianxing Park
Other payables Operation Management 95000.00 100000.00
Co. Ltd.Other payables Luzhou Laojiao Innovation 200000.00 206000.00
Industry Holdings Co. Ltd.Other payables Sichuan Development 4494000.00 4494000.00
Liquor Investment Co. Ltd.Other payables Sichuan Lianzhong Supply 31895827.74 47074343.00
Chain Service Co. Ltd.Other payables Luzhou Yuanhai Lianzhong 50000.00 50000.00
Supply Chain Co. Ltd.
2522025 Annual Report of Luzhou Laojiao Co. Ltd.
Other payables Luzhou Laojiao Property 159475.66 30020.58
Service Co. Ltd.Other payables Luzhou Sanrenxuan Liquor 300000.00 300000.00
Industry Co. Ltd.Other payables Sichuan Tianfu Granary 100000.00 100000.00
Liquor Industry Co. Ltd.
14.7. Commitments of the related parties
None.
15. Stock payment
15.1. The overall situation of share-based payments
□ Applicable □ N/A
Unit: CNY
Type of Granted in the Current Exercised in the Unlocked in the Current Invalid in the Current
granting Period Current Period Period Period
object Number Amount Number Amount Number Amount Number Amount
32333731433766.
21604999540
31.8860
32333731433766.
Total 2160499 9540
31.8860
Outstanding stock options or other equity instruments at the end of the reporting period
□ Applicable □ N/A
Other statements:
Note 1: At the 12th Meeting of the 10th Board of Directors of the Company held on December 29
2021 the Proposal on the Grant of Restricted Shares to Awardees was reviewed and approved and it
was agreed to grant 6928600 restricted shares to 441 awardees for the first time at CNY 92.71 per
share with December 29 2021 as the grant date.At the 18th Meeting of the 10th Board of Directors and the 9th Meeting of the 10th Board of
Supervisors of the Company held on July 25 2022 the Proposal on the Grant of Reserved Portion of
Restricted Shares to Awardees was reviewed and approved and it was agreed to grant 342334
restricted shares to 46 awardees at CNY 89.466 per share with July 25 2022 as the grant date.At the 26th Meeting of the 10th Board of Directors and the 15th Meeting of the 10th Board of
Supervisors of the Company held on December 29 2022 the Proposal on the Grant of Reserved
Portion of Restricted Shares to Awardees was reviewed and approved and it was agreed to grant
92669 reserved portion of restricted shares to 17 awardees at CNY 89.466 per share with December
29 2022 as the grant date.
According to the incentive plan its validity period lasts from the date of registration for the grant of
restricted shares until all restricted shares are lifted from restricted sales or repurchased and retired
for a maximum of 60 months. The lifting restriction period of the restricted shares shall be 24 months
from the date of completion of registration. The restricted shares will be lifted from restricted sales in
2532025 Annual Report of Luzhou Laojiao Co. Ltd.
three batches after 24 months from the date of completion of registration in the proportion of 40.00%
30.00% 30.00% respectively for each lifting.
In February 2025 the Company announced that 434 awardees met the lifting conditions in the
second lifting restriction period under the 2021 Restricted Share Incentive Plan of the Company. The
number of restricted shares that can be lifted from restricted sales was 2022530 accounting for
0.1374% of the current total share capital of the Company.
In February 2025 the Company announced that 17 awardees met the lifting conditions in the first
lifting restriction period under the 2021 Restricted Share Incentive Plan Reserved Portion of the
Company. The number of restricted shares that can be lifted from restricted sales was 37069
accounting for 0.0025% of the current total share capital of the Company.In September 2025 45 awardees met the lifting conditions in the second lifting restriction period
under the 2021 Restricted Share Incentive Plan Reserved Portion of the Company. The number of
restricted shares that can be lifted from restricted sales was 100900 accounting for 0.0069% of the
current total share capital of the Company.Note 2: In 2025 as three awardees no longer met the incentive conditions the Company
repurchased and canceled a total of 9540 restricted shares that had been granted but not yet
released from restrictions for these incentive recipients. As at the end of 2025 the Company had
completed the repurchase and cancellation of the above-mentioned shares.
15.2. Equity-settled share-based payments
□ Applicable □ N/A
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 deducts the grant price thereof
Important parameters of fair value of equity instruments
on the grant date The closing price of restricted stocks on the grant date
The Company's management considered factors such as
Basis to determine number of equity instrument that can changes in the number of eligible employees for the latest
be exercised exercisable options and the level of performance
achievement to make the best estimate.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
included into capital reserves 1716551039.40
Total costs of recognizing equity-settled share-based
payments in the current period 75359525.81
15.3. Cash-settled share-based payments
□ Applicable □ N/A
15.4. Share-based payment expenses in the current period
□ Applicable □ N/A
Unit: CNY
2542025 Annual Report of Luzhou Laojiao Co. Ltd.
Type of granting object Expenses for equity-settled share- Expenses for cash-settled share-based payments based payments
Production staff 7202251.25
Sales staff 18588708.87
Administrative staff 44069367.51
R&D staff 5499198.18
Total 75359525.81
15.5. Modification and termination of share-based payments
None.
16. Commitments and contingencies
16.1. Commitments
Significant commitments at the balance sheet date
None.
16.2. Contingencies
16.2.1. Significant contingencies at the balance sheet date
1. Fund involving contract disputes
On October 15 2014 and January 10 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. In 2025 the Company recovered CNY 32.7476 million of
saving deposits involving contract disputes. As of the period-end the Company has recovered the
above-mentioned saving deposits involving contract disputes with CNY 408.6483 million.
2. Matters relating to debt disputes
Civil Ruling of the Jiangyang District People’s Court of Luzhou City Sichuan Province (2025) Chuan
0502 Min Chu No. 5676 in the case of plaintiff Duan Pinghui v. defendants China Construction First
Engineering Bureau (Group) Co. Ltd. Luzhou Laojiao Baijiu Production Co. Ltd. and the third party
Sichuan Zhonghuan Yineng Environmental Protection Engineering Co. Ltd. concerning a dispute
over the right of subrogation of a creditor. On July 21 2025 the applicant Duan Pinghui applied to
the Jiangyang District People’s Court of Luzhou City for asset preservation in litigation requesting the
freezing of bank deposits of the respondents China Construction First Engineering Bureau (Group)
Co. Ltd. and Luzhou Laojiao Baijiu Production Co. Ltd. in the amount of CNY 1200000.00 or the
seizure impoundment or freezing of other property of corresponding value.As of December 31 2025 the Company was also involved in several lawsuits arising from daily
operations with relatively small amounts in dispute. However the Company believes that any
2552025 Annual Report of Luzhou Laojiao Co. Ltd.
liabilities arising from these minor lawsuits will not have a material adverse impact on the Company’s
financial position or operating results.Except for the above matters the Company has no other significant contingencies that need to be
disclosed as of the end of the reporting year.
16.2.2. 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.
17. Post balance sheet event
17.1. Significant non-adjustment matters
None.
17.2. Profit distribution
Dividends to be distributed for every 10 existing shares
44.17
held (CNY)
Upon the resolution of the Board of Directors the 2025
profit distribution plan was approved: Based on the
current 1471941963 shares a cash dividend of CNY
44.17 (tax included) will be distributed for every 10
existing shares held representing a total cash dividend
Profit distribution plan
amount of CNY 6501567650.57 (tax included). Where
any change occurs to the Company's total share capital
before the implementation of the distribution plan
relevant adjustments shall be made with the same total
distribution amount.1
Note: 1 The Company has reviewed and approved the interim profit distribution plan for 2025 at the
20th Meeting of the 11th Board of Directors held on January 9 2026 distributing a cash dividend of
CNY 13.58 (tax included) for every 10 existing shares held to all shareholders totaling CNY
1998897185.75 (tax included) distributed. If the above-mentioned plan is reviewed and approved by
the meeting of shareholders the total cumulative cash dividend of the Company in 2025 will be CNY
8500464836.32 (tax included) accounting for approximately 78.48% of the net profit attributable to
shareholders of the listed company in 2025.
17.3. Sales return
There are no important sales returns after balance sheet date.
17.4. Statement for other post balance sheet events
1. The achievement of lifting the restriction conditions in the third restriction period under the 2021
Restricted Share Incentive Plan
2562025 Annual Report of Luzhou Laojiao Co. Ltd.
At the 21st Meeting of the 11th Board of Directors held on February 4 2026 the Proposal on the
Achievement of Lifting the Restriction Conditions in the Third Restriction Period under the 2021
Restricted Share Incentive Plan was reviewed and approved. In accordance with the 2021 Restricted
Share Incentive Plan (Draft) the restriction conditions in the third restriction period under the 2021
Restricted Share Incentive Plan have been achieved. The Company agreed to proceed with the
restriction lifting procedures for 421 incentive recipients who met the conditions. Restricted shares
eligible for release from restricted sale amounted to 1962814 shares representing 0.1333% of the
current total share capital of the Company. This proposal was considered and approved by the
Remuneration and Appraisal Committee of the Board of Directors of the Company. The date of listing
for the restricted shares eligible for release from restricted sale was February 24 2026.
2. The achievement of lifting the restriction conditions in the second restriction period under the 2021
Restricted Share Incentive Plan Reserved Portion
At the 21st Meeting of the 11th Board of Directors held on February 4 2026 the Proposal on the
Achievement of Lifting the Restriction Conditions in the Second Restriction Period under the 2021
Restricted Share Incentive Plan Reserved Portion was reviewed and approved. In accordance with
the 2021 Restricted Share Incentive Plan (Draft) the restriction conditions in the second restriction
period under the 2021 Restricted Share Incentive Plan Reserved Portion have been achieved. The
Company agreed to proceed with the restriction lifting procedures for 17 awardees who met the
conditions. Restricted shares eligible for release from restricted sale amounted to 27800 shares
representing 0.0019% of the current total share capital of the Company. This proposal was
considered and approved by the Remuneration and Appraisal Committee of the Board of Directors of
the Company. The date of listing for the restricted shares eligible for release from restricted sale was
February 24 2026.
3. Except for the above matters the Company has no other post balance sheet events.
18. Other important information
18.1. 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.
18.2. Segment information
18.2.1 Recognition basis and accounting policies of reportable segment
Except for the business on baijiu 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.
2572025 Annual Report of Luzhou Laojiao Co. Ltd.
18.3. Other significant events that can affect investors’ decision
Saving deposits involving contract disputes
As stated in Note 16.2 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 Sichuan Ding Zheng Law Firm on December 8
2025 that “given that up to now through criminal and civil enforcement the Company hascumulatively recovered CNY 409 million. At the same time it is expected that further recoveries of up
to approximately CNY 10 million may be achieved in the future. The estimated actual loss arising from
the irregular deposits in the three aforementioned places is approximately CNY 80 million. Thus it is
suggested that the total amount of bad debt provision for the irregular deposits in the threeaforementioned places was CNY 80 million” the Company has made a bad debt provision of CNY 80
million for saving deposits involving contract 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.
19. Notes to the main Items of the financial statements of parent
company (all currency units are CNY except other specific statements)
19.1. Accounts receivable
19.1.1. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 7840.91 15421.83
1 to 2 years 14400.03
Total 22240.94 15421.83
19.1.2. Disclosure by withdrawal methods for bad debts
Unit: CNY
Closing Balance Opening Balance
Book balance Provision for bad Book balance Provision for bad
Type debt Book debt Book
Amount Proporti Amount Proporti value Proporti Proporti valueon on Amount on Amount on
Includin
g:
Account
s
receiva 22240. 100.00 1832.0 20408. 15421. 100.00 14701.ble 8.24% 720.00 4.67%94 % 4 90 83 % 83
tested
for
2582025 Annual Report of Luzhou Laojiao Co. Ltd.
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
ble
tested
for
impairm
ent on 22240. 100.00 1832.0 20408. 15421. 100.00 14701.8.24% 720.00 4.67%
the 94 % 4 90 83 % 83
portfolio
with
charact
eristics
of credit
risk
22240.100.001832.020408.15421.100.0014701.
Total 8.24% 720.00 4.67%
94%49083%83
Provision for bad debt by the portfolio: CNY 1832.04
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 22240.94 1832.04 8.24%
Including: within 1 year 7840.91 392.04 5.00%
1 to 2 years 14400.03 1440.00 10.00%
Other portfolio
Total 22240.94 1832.04
Notes to the determination basis for the portfolio:
If adopting the general mode of expected credit loss to withdraw provision for bad debt of accounts
receivable
□ Applicable □ N/A
19.1.3. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit: CNY
Opening Changes in current periodType ClosingBalance Allowance Reversal orrecovery Write-off Other
Balance
Accounts
receivable
with a single
provision for
expected
credit loss
Accounts
receivable
with expected 720.00 1112.04 1832.04
credit loss by
portfolio
2592025 Annual Report of Luzhou Laojiao Co. Ltd.
Total 720.00 1112.04 1832.04
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
There is no significant provision in accounts receivable reversed or recovered in the reporting period.
19.1.4. Accounts receivable written-off in the current period
Notes to write-off of accounts receivable:
There were no accounts receivable written-off in the current period.
19.1.5. Top five entities with the largest balances of accounts receivable and contract assets
Unit: CNY
Closing balance
of provision for
Proportion to
bad debt
Closing balance total closing
Closing balance Closing balance provision of
of accounts balance of
Company name of accounts of contract accounts
receivable and accounts
receivable assets receivable and
contract assets receivable and
impairment
contract assets
allowance of
contract assets
Wang Huiying 14400.03 14400.03 64.75% 1440.00
China Railway
12th Bureau 7840.91 7840.91 35.25% 392.04
Group Co. Ltd.Total 22240.94 22240.94 100.00% 1832.04
19.2. Other receivables
Unit: CNY
Item Closing Balance Opening Balance
Other receivables 12687994073.65 14619833493.32
Total 12687994073.65 14619833493.32
19.2.1. Other receivables
19.2.1.1. Other receivables disclosed by nature
Unit: CNY
Nature Closing book balance Opening book balance
Internal intercourse funds 12674256978.12 14612828324.02
Intercourse funds and others 2600905.95 3139064.91
Saving deposits involving contract
91351645.65124099253.17
disputes 1
Total 12768209529.72 14740066642.10
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
2602025 Annual Report of Luzhou Laojiao Co. Ltd.
contract disputes and have thus been transferred into “other receivables”. In 2025 CNY
32747607.52 of the saving deposits involving contract disputes was recovered. The balance of this
account as at the end of the year was CNY 91351645.65.
19.2.1.2. Disclosure by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 12676568788.72 14615795158.37
1-2 years 203215.35 92550.56
2-3 years 6200.00
Over 3 years 91431325.651 124178933.17
3-4 years 6880.00
4-5 years 6880.00
Over 5 years 91424445.65 124172053.17
Total 12768209529.72 14740066642.10
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
saving deposits of CNY 91351645.65 which are yet to be recovered due to contract disputes.
19.2.1.3. Disclosure by withdrawal methods for bad debts
Unit: CNY
Closing balance Opening Balance
Book balance Provision for bad Book balance Provision for badType debt Book debt Book
Amount Proporti Amount Proporti value Amount Proportion on on Amount
Proporti value
on
Provisio
n for
bad 91351 80000 11351 124099 120000 40992
debt by 0.72% 87.57% 0.84% 96.70%645.65 000.00 645.65 253.17 000.00 53.17
individu
al item
Inclu
ding:
Other
receiva
bles
that are
individu
ally
material
and for
which a 91351 80000 11351 124099 120000 40992
separat 0.72% 87.57% 0.84% 96.70%645.65 000.00 645.65 253.17 000.00 53.17
e
provisio
n for
bad
debts
has
been
made
Provisio 12676 99.28% 215456 0.00% 12676 14615 99.16% 233148 0.00% 14615
2612025 Annual Report of Luzhou Laojiao Co. Ltd.
n for 857884 .07 642428 967388 .78 734240
bad .07 .00 .93 .15
debt by
the
portfolio
Inclu
ding:
Other
receiva
bles
tested
for
impairm 12676 12676 14615 14615
ent on 215456 233148
the 857884 99.28% 0.00% 642428 967388 99.16% 0.00% 734240.07 .78
portfolio .07 .00 .93 .15
with
charact
eristics
of credit
risk
12768126871474014619
Total 100.00 80215 100.00 120233209529 0.63% 994073 066642 0.82% 833493
%456.07%148.78.72.65.10.32
Provision for bad debt by individual item: CNY 80000000.00
Unit: CNY
Opening Balance Closing Balance
Name Provision for Provision for Proporti
Book balance Book balance Reason
bad debt bad debt on
Saving
deposits Provision
involving 124099253.17 120000000.00 91351645.65 80000000.00 87.57% based on
contract legal opinion
disputes
Total 124099253.17 120000000.00 91351645.65 80000000.00
Provision for bad debt by the portfolio: CNY 215456.07
Unit: CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 2600905.95 215456.07 8.28%
Including: within 1 year 2311810.60 115590.53 5.00%
1-2 years 203215.35 20321.54 10.00%
2-3 years 6200.00 1240.00 20.00%
3-4 years
4-5 years 6880.00 5504.00 80.00%
Over 5 years 72800.00 72800.00 100.00%
Other portfolio 12674256978.12
Total 12676857884.07 215456.07
Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit: CNY
Provision for bad First stage Second stage Third stage Total
2622025 Annual Report of Luzhou Laojiao Co. Ltd.
debt Expected loss in the
Expected credit loss Expected loss in the
duration (credit
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of January
233148.78120000000.00120233148.78
12025
Balance of January
1 2025 in the current
period
Allowance of the
53267.7153267.71
current period
Reversal of the
70960.4240000000.0040070960.42
current period
Balance of
215456.0780000000.0080215456.07
December 31 2025
The basis for the division of each stage and the withdrawal proportion of bad debt provision
The basis for the division of each stage and the withdrawal proportion of bad debt provision: The
basis for division is that other receivables with single bad debt provision represent credit impairment
losses incurred since initial recognition (Stage 3) while the remaining portion is categorized based on
expected credit risk. Withdrawal proportions of bad debt provision are 0.002% for Stage 1 and
87.57% for Stage 3 totaling 0.63%.
Changes of book balance with a significant change of loss provision in the current period
□ Applicable □ N/A
19.2.1.4. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit: CNY
Opening Changes in current periodType ClosingBalance Allowance Reversal or Write-off or Balancerecovery verification Other
Bad debt
provision for
120233148.7853267.7140070960.4280215456.07
other
receivables
Total 120233148.78 53267.71 40070960.42 80215456.07
19.2.1.5. Other receivables written-off in the current period
Notes to write-off of other receivables:
There were no other receivables written-off in the current period.
19.2.1.6. Top five entities with the largest balances of the other receivables
Unit: CNY
Company Name Nature Closing Balance Aging Proportion in
Provisioning
total receivables amount at periodend
2632025 Annual Report of Luzhou Laojiao Co. Ltd.
Luzhou Laojiao
Baijiu Production Internaltransactions 12000861912.81 Within 1 year 93.99%Co. Ltd.Luzhou Laojiao
New Retail Co. Internaltransactions 350185016.73 Within 1 year 2.74%Ltd.Luzhou Laojiao
Import and Internal
Export Trade transactions 257587092.15 Within 1 year 2.02%
Co. Ltd.Saving deposits Saving deposits
involving involving 91351645.65 Over 5 years 0.72% 80000000.00
contract disputes contract disputes
Guangxi Luzhou
Laojiao Imported Internal
Liquor Industry transactions 51616153.54 Within 1 year 0.40%
Co. Ltd.Total 12751601820.88 99.87% 80000000.00
19.2.1.7. Presentation in other receivables due to the centralized management of funds
Unit: CNY
Other statements:
There were no other receivables presented due to the centralized management of funds in the current
period.
19.3. Long-term equity investments
Unit: CNY
Closing Balance Opening Balance
Item
Book balance Provision for Book value Book balance Provision forimpairment impairment Book value
Investment in 3997837147 3997837147 3952848501 3952848501
subsidiary .01 .01 .33 .33
Investment in
associates 2913573576 2911006477 2785645158 2783078059
and joint 2567098.80 2567098.80.15 .35 .35 .55
venture
6911410723690884362467384936596735926560
Total 2567098.80 2567098.80.16.36.68.88
19.3.1. Investment in subsidiary
Unit: CNY
Opening Changes in current period Closing
Opening balance of Closing balance of
Investee Balance provision
Provision Balance provision
(book for forIncrease Decrease Other (book for
value) impairmen impairmen value) impairmen
t t t
Luzhou
Laojiao 3379778 1629806 3542759
Sales Co. 95.51 5.66 61.17
Ltd.
2642025 Annual Report of Luzhou Laojiao Co. Ltd.
Luzhou
Laojiao
339551511465673406981
Baijiu
670.971.32342.29
Productio
n Co. Ltd.Luzhou
Laojiao
Health 1144132 700169.4 1214149
Liquor 0.72 3 0.15
Industry
Co. Ltd.Luzhou
Laojiao
61138186113818
Electronic
3.233.23
Commerc
e Co. Ltd.Luzhou
Pinchuang 1016244 2355649. 1039801
Technolog 59.30 75 09.05
y Co. Ltd.Luzhou
Laojiao
Internation
al 1474136 858689.4 1560005
Developm 2.82 3 2.25
ent (Hong
Kong)
Co. Ltd.Luzhou
Laojiao
30409601310400.3172000
New
8.78098.87
Retail Co.Ltd.Luzhou
Laojiao
Cultural
12000001200000
Tourism
0.0010.00
Developm
ent Co.Ltd.
3952848120000032988643997837
Total
501.330.005.682147.01
Note: 1 The long-term equity investment increased by CNY 12000000.00 because the Company
invested in and incorporated Luzhou Laojiao Cultural Tourism Development Co. Ltd. this year.
2 The 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.
19.3.2. Investment in associate and joint venture
Unit: CNY
Invest Openi Openi Changes in current period Closin Closin
2652025 Annual Report of Luzhou Laojiao Co. Ltd.
ee ng ng Gain Adjust g g
Balan Balan or ments Cash Balan Balance ce of loss of
(book provisi recog other Other divide Provis
ce ce of
value) on for Increa Decre
(book provisi
se ase nized compr
chang d or ion for
impair under ehens es in profit impair
Other value) on for
ment equity ive equity declar ment
impair
ment
metho incom ed
d e
1. Joint Ventures
2. Associate
Huaxi
Securi 2614 2567 1528 9225 3410 2742 2567
ties 8070 098.8 1954 632.9 3893. 7483 098.8
Co. 32.57 0 9.79 0 00 22.26 0
Ltd.Luzho
u
Laojia
o
Postd
octora
l 3668 3681
Works 13171718. 3478.tation 60.4510 55
Techn
ology
Innov
ation
Co.Ltd.Sichu
an
Devel
opme 5878 5920
nt 4254
Liquor 280.9 824.93.97
Invest 3 0
ment
Co.Ltd.CTS
Luzho
u
Laojia
o
Cultur 1257 - 1255
al 4064
Touris 1102 2278 23859.70
m 7.95 26.01 1.64
Devel
opme
nt
Co.Ltd.
2783256715309225-341029112567
Subtot
al 0780 098.8 3450 632.9 2278 3893. 0064 098.8
59.5503.91026.010077.350
2783256715309225-341029112567
Total 0780 098.8 3450 632.9 2278 3893. 0064 098.8
59.5503.91026.010077.350
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
2662025 Annual Report of Luzhou Laojiao Co. Ltd.
□ Applicable □ N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□ Applicable □ N/A
19.4. Operating revenue and cost of sales
Unit: CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 10447780093.36 8280349241.83 11068191164.35 8451791359.73
Other business 20846249.20 2851913.79 22778534.03 2521249.13
Total 10468626342.56 8283201155.62 11090969698.38 8454312608.86
Details:
Unit: CNY
Baijiu sales Total
Contract category
Operating revenue Cost of sales Operating revenue Cost of sales
Commodity type
Including:
Medium and high
grade baijiu 10379206890.03 8246853278.57 10379206890.03 8246853278.57
Other baijiu 68573203.33 33495963.26 68573203.33 33495963.26
Other revenue 20846249.20 2851913.79 20846249.20 2851913.79
By operating
segment
Including:
Domestic 10468626342.56 8283201155.62 10468626342.56 8283201155.62
Outbound
Market or customer
type
Including:
Contract type
Including:
Recognize revenue
at point in time 10459000573.44 8280363076.40 10459000573.44 8280363076.40
Recognize revenue
by time period 9625769.12 2838079.22 9625769.12 2838079.22
By commodity
transfer time
Including:
By contract term
Including:
By sales channel
Including:
Total 10468626342.56 8283201155.62 10468626342.56 8283201155.62
Other statements
Note: The Company's main business is the production and sale of baijiu. Revenue is recognized at
the point when the Company transfers control of the relevant goods to the customer and fulfills its
performance obligations.
2672025 Annual Report of Luzhou Laojiao Co. Ltd.
Information in relation to the transaction price apportioned to the residual contract performance
obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was CNY 960049.10 at the period-end among which CNY
960049.10 was expected to be recognized in 2026.
19.5. Investment income
Unit: CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under cost 6940181729.27 9761010919.08
method
Investment income from long-term
equity investments under equity 153034503.91 74877362.33
method
Investment income gained during the
period of holding held-for-trading 25160965.67 46953767.52
financial assets
Investment income from disposal of
held-for-trading financial assets 2830900.55 -29465560.31
Dividends income gained during the
period of holding other equity 14616364.68 14976454.55
instrument investment
Income from derecognition of
financial assets measured at fair
-24263159.29-21417110.91
value with changes recorded in other
comprehensive income 1
Total 7111561304.79 9846935832.26
Note: 1. The Company presented the discounting expenses of derecognized bank acceptance bills
under this account.
19.6. Other
There is no major restriction on the repatriation of the Company's investment income.Including: Investment income from long-term equity investments under the cost method
Item Current Period Previous Period
Luzhou Laojiao Sales Co. Ltd. 6892374112.24 9761010919.08
Luzhou Laojiao New Retail Co. Ltd. 39774713.03
Luzhou Laojiao International Development (Hong Kong) Co. Ltd. 8032904.00
Total 6940181729.27 9761010919.08
Including: investment income from long-term equity investments under the equity method
Item Current Period Previous Period
Huaxi Securities Co. Ltd. 152819549.79 75663468.99
Luzhou Laojiao Postdoctoral Workstation Technology Innovation
Co. Ltd. 131760.45 -1657333.41
Sichuan Development Liquor Investment Co. Ltd. 42543.97 -19699.92
CTS Luzhou Laojiao Cultural Tourism Development Co. Ltd. 40649.70 890926.67
2682025 Annual Report of Luzhou Laojiao Co. Ltd.
Item Current Period Previous Period
Total 153034503.91 74877362.33
20. Supplementary information
20.1. Detailed statement of non-recurring gains and losses in the current period (+
for gain - for loss)
□ Applicable □ N/A
Unit: CNY
Item Amount Note
Gains or losses on disposal non-
current assets -534054.68
Government grants recognized in
profit or loss (exclusive of those that
are closely related to the Company's
normal business operations and
given in accordance with defined 50033249.88
criteria and in compliance with
government policies and have a
continuing impact on the Company's
profit or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by
a non-financial enterprise as well as
on disposal of financial assets and
liabilities (exclusive of the effective 35768978.71
portion of hedges that is related to
the Company's normal business
operations)
Reverse of bad debt provision of
accounts receivable individually 40000000.00
conducting impairment test
Other non-operating income and
expenditure except above-mentioned -30596009.53
items
Less: Corporate income tax 23034464.44
Minority interests (after tax) 962551.56
Total 70675148.38 --
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
20.2. Return on equity and earnings per share
Profit during reporting EPS (CNY/Share)
period Weighted average ROE Basic EPS Diluted EPS
Net profits attributable to 22.66% 7.36 7.36
2692025 Annual Report of Luzhou Laojiao Co. Ltd.
common shareholders of
the Company
Net profits attributable to
common shareholders of
the Company before non- 22.51% 7.31 7.31
recurring gains and losses
20.3. Differences between accounting data under domestic and overseas
accounting standards
20.3.1. Differences of net profit and net assets disclosed in financial reports prepared under
international and Chinese accounting standards
□ Applicable □ N/A
20.3.2. Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
□ Applicable □ N/A
20.3.3. 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
20.4. Other
None.
270
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