LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About the Report
About the Report
Luzhou Laojiao Co. Ltd. (hereinafter referred to as "Luzhou Laojiao" "the Company" or "We") publishes an independent report Data Source and Reliability
annually to disclose information related to sustainable development.All data cited in this Report are derived from the Company's official documents statistical reports and financial statements. All
From 2006 to the present the Company has published 18 social responsibility reports and environmental social and monetary amounts are denominated in Renminbi (RMB). The Company and all members of the Board of Directors undertake
governance (ESG) reports. It aims to truthfully accurately and completely disclose the efforts and achievements made by that the information disclosed herein is true complete and accurate without any misrepresentations misleading statements or
the Company in practicing high-quality sustainable development to stakeholders including the government and regulatory material omissions.authorities shareholders and investors customers suppliers and industries employees and the public thereby fully addressing
their expectations.Terminology Used in the Report
For ease of reference short names are used herein as follows:
Subject Entities Short Name Full Name
Luzhou Laojiao the Company We Luzhou Laojiao Co. Ltd.This Report makes disclosure on Luzhou Laojiao and its subsidiaries. The disclosure scope aligns with that of the annual
report. Distillery Company Luzhou Laojiao Distillery Co. Ltd.Huangyi Huangyi Distilling Ecological Park The park in Huangyi Town Jiangyang District Luzhou City
Basis of Preparation Luohan Luohan Distilling Ecological Park The park in Luohan Town Longmatan District Luzhou City
Xiaoshi Distilling Base The production base in Xiaoshi Subdistrict Longmatan
● The 17 Sustainable Development Goals (SDGs) under the United Nations 2030 Agenda for Sustainable Development District Luzhou City
● The Ten Principles of the United Nations Global Compact (UNGC)
● GRI Sustainability Reporting Standards (GRI Standards) issued by the Global Sustainability Standards Board (GSSB) Reporting Timeframe
● ISO 26000: 2010 Guidelines on Social Responsibility
This Report presents the annual ESG disclosure for the period January 1 2024 to December 31 2024. To enhance
● The Guidelines on Sustainability Reporting for Chinese Enterprises (CASS-ESG6.0) issued by the China Enterprise Reform comparability and completeness retrospective data has been incorporated where necessary.and Development Research Society and Responsibility Cloud Research Institute
● Guidance on Social Responsibility Reporting (GB/T36001-2015)
● Shenzhen Stock Exchange (SZSE) Social Responsibility Instructions to Listed Companies Access to the Report
● SZSE Guidelines No. 1 for Self-Regulation of Listed Companies—Standardized Operation of Main Board Companies
In line with our commitment to low-carbon and environmental sustainability we release this Report exclusively in digital format.● SZSE Guidelines No. 17 for Self-Regulation of Listed Companies—Sustainability Reporting (Trial) You can access both the Chinese and English versions of the Report through our Company's official website (https://000568.iryi.com/#/esgreport) or CNINFO (www.cninfo.com.cn).
01 02LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Message from the Chairman of the Board
Message from the Chairman of the Board
Building on sustainability laying a strong foundation for Additionally we contributed to rural revitalization efforts in
long-term growth. Anchored in our strategic pillars—Brand Hongyuan County. In 2024 we were honored as one of
Leadership Quality Excellence and Cultural Legacy— Sichuan's "Top 10 Philanthropic Enterprises." In terms of
we focus on building a holistic "six-in-one" Luzhou Laojiao corporate governance we prioritize strong management
model which integrates brand value product quality cultural practices constantly refining our integrated framework
heritage technological innovation digital transformation and that covers authority systems and processes. This has
social harmony. We are firmly committed to reclaiming our enabled us to create a highly efficient and well-coordinated
position among the top three in China's baijiu industry with compliance operation system earning the highest "Grade
our leadership reflected in our strong profitability growing A" rating in annual information disclosure assessments
brand value and leading progress in digital intelligence from the Shenzhen Stock Exchange and establishing
transformation. Through our "700 Years of Chinese Aromatic ourselves as a benchmark for corporate compliance. We
Baijiu Heritage" campaign we earned recognition as a also established the "Three Major and One Big" decision-
National Intangible Cultural Heritage Production Base for making mechanism ensuring that major decisions key
2023-2025 and were officially certified as the "Birthplace personnel appointments significant project arrangements
of Chinese Strong Aroma Baijiu". We have also placed and large-scale financial expenditures undergo collective
strong emphasis on environmental stewardship conducting discussion and approval with the Party Committee taking
carbon emissions accounting across the organization a lead role in providiing direction overseeing the big
for four consecutive years performing product carbon picture and ensuring effective implementation. Moreover
footprint assessments analyzing carbon emissions and we have promoted the development of the "Intelligent
the effectiveness of energy-saving and carbon-reduction Human Resources Sharing" and "Digital and Intelligent
measures and completing the evaluation of our Carbon Collaboration Platform" which has helped us build a more
Peaking Action Plan. For eight years we have published effective governance system. This effort has earned us
Product Quality White Papers and received numerous recognition as a leader in industrial data governance in
national-level quality honors including the "Model of Integrity China.and Quality" award.Covenanting with the future co-creating a sustainable
Pledging through action realizing our mission of legacy. At this pivotal moment in history we are fully
shared prosperity. True success is not only measured integrating Environmental Social and Governance (ESG)
by financial results but by how we contribute to society. principles throughout our value chain aligning corporate
At Luzhou Laojiao we integrate social responsibility into growth with societal responsibility. We will continue refining
LUZHOU LAOJIAO every aspect of our business to establish a distinctive our governance structure enhancing transparency and
Secretary of the Party Committee and Chairman and sustainable development model focusing on the strengthening shareholder trust through strong financial
environment collaboration and governance. On the performance and long-term value creation. We will
environmental front our "Digital and Intelligent Luzhou deepen our "Mutual Growth Between Manufacturers and
Laojiao" strategy continues to evolve with investments Vendors" philosophy leveraging digital tools and resource
in projects like the Luzhou Laojiao Intelligent Packaging sharing to build a mutually beneficial industry ecosystem.Center. This new facility is setting industry standards for Embracing the "Five Shared Principles"—shared cultural
both efficiency and energy use driving innovation in the roots unified standards collective rule adherence joint
high-end baijiu sector and promoting its green and intelligent market expansion and mutual support in adversity—we will
2024 marks a crucial year for Luzhou Laojiao as we push forward with our 14th Five-Year Plan. Despite development of the baijiu industry. We have also promoted continue collaborating with industry partners to strengthen
the challenges of a fast-changing economy and growing competition we have embraced this year’s the cultivation of organic sorghum building a low-carbon our collective future. We remain steadfast in our founding
theme of "Resolve Breakthrough Innovation and Collaboration." Through collective effort and supply chain from field to production. On the social side mission of "crafting exceptional baijiu for the people"
determination we have seen steady progress in both revenue and profit while making notable strides in we live by the philosophy of "co-distilling with nature ensuring that every bottle we produce represents our
brand culture smart manufacturing sustainability and social responsibility. coexisting in harmony." We are dedicated to supporting commitment to "consistent quality，sincere service" andinitiatives like the Pillar Project and the Luzhou Laojiao sharing the taste of China with the world.Scholarship which benefited over a thousand students.
03 04LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Message from the Gene总ral经 M理an致ag辞er
Message from the General Manager
This year the Company has made significant progress Additionally the Luzhou Laojiao Intelligent Packaging
in overcoming key market challenges with digital Center has officially opened setting a new benchmark in the
innovation playing a central role in driving growth. industry as the first "Intelligent Manufacturing Benchmark
We actively implemented our marketing strategy of "firm Enterprise" in the baijiu sector of China.commitment digital innovation efficient collaboration and
comprehensive execution" which helped expand our market This year our focus on management innovation has
reach and maintain steady sales growth. The National boosted both quality and efficiency and system
Cellar brand took the lead making a major contribution optimization helped drive momentum. We focused
to revenue while the Luzhou Laojiao brand focused on on refined management and improved the three-in-one
strategic growth continuously strengthening its brand management framework of authorization system and
foundation. By implementing regional strategies such as process. We’ve also deepened state-owned enterprise
the Hundred Cities Plan 2.0 and East China Strategy 2.0 reforms optimizing our governance system and were
we successfully expanded our presence across provinces honored as an "Advanced Primary-Level Party Organization
autonomous regions and cities further improving market in Sichuan Province." Our commitment to safety remained
coverage and penetration. At the same time we accelerated strong with no work-related accidents throughout the
our transformation to digital and intelligent marketing year. We have made remarkable strides in risk prevention
fortifying our digital channels. The innovation and upgrading and control particularly in areas like intellectual property
of Luzhou Laojiao's membership system further enhanced protection and legal risk management and earned the
consumer loyalty and brand stickiness. highest "Grade A" rating in the Shenzhen Stock Exchange's
annual information disclosure assessment. The "Talent Hub"
In 2024 we laid a strong foundation for quality and set has made initial progress enhancing our talent pool and
a new industry benchmark with our intelligent systems. advancing our "three-pillar" human resources management
We upheld strict standards for quality production capacity model. We have also embraced digital and intelligent
and supply chain security ensuring high-quality development management practices building a collaborative platform
at every step. Through a series of measures including and implementing RPA robot scenarios. This innovation has
promoting a digital management system for red sorghum earned us the title of "Forerunner" in China’s industrial data
enhancing our laboratory CNAS system and launching an governance and a place as a "Forerunner" case in China’s
automated paper box production line we have consistently light industry digital transformation.improved product quality. We have also strengthened
production capacity guarantees achieving a 100% execution Looking ahead to 2025 as we conclude our 14th Five-Year
rate for base liquor production processes and a 100% liquor Plan we are ready to tackle new challenges and seize fresh
source guarantee rate. The 63.37 hectare intelligent distilling opportunities with a broader strategic vision a steadier pace LUZHOU LAOJIAO
technical transformation project has made steady progress of innovation and a more efficient coordination!
Deputy Secretary of the Party Committee and General Manager improving both resource utilization and production efficiency.The year 2024 marks the 700th anniversary of Luzhou Laojiao's continuous commitment to preserving
traditional distilling techniques and it is also a pivotal year for the Company as we continue to navigate
a complex market environment. Under the leadership of the Party Committee and the Board everyone at
Luzhou Laojiao has come together staying determined and focused to ensure that all tasks are carried
out smoothly. This unity has allowed us to maintain steady and positive growth creating a strong
foundation for the final phase of our 14th Five-Year Plan.
05 06LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About Luz总ho经u 理La致ojia辞o
About Luzhou Laojiao
Company Overview
Luzhou Laojiao Co. Ltd. (stock code: 000568) is a large state-
owned liquor enterprise that evolved from 36 distilling workshops
established during the Ming and Qing Dynasties. The Company
is recognized as the pioneer of China’s strong-aroma baijiu
techniques the creator of strong-aroma standards and the
builder of strong-aroma brands earning it the title of the "ancestor
of strong-aroma baijiu." The Company preserves the "Traditional
Distilling Techniques of Luzhou Laojiao" passed down through
24 generations since 1324 AD and it has been included in the
first batch of the "National Intangible Cultural Heritage List."
The Company also owns the "1573 National Treasure Cellars"
which has been continuously used since 1573 AD. This cellar
group is the largest most complete and longest-continuously
used "living distilling cultural relic" in the world. It is designated
as a "National Key Cultural Relic Protection Unit" and included
in the "Preliminary List of China’s World Cultural Heritage." The
Company’s main products include the "National Cellar 1573" and
"Luzhou Laojiao" series of baijiu with key performance indicators
ranking among the top in the baijiu industry.As part of its long-term commitment to sustainability Luzhou
Laojiao actively aligns with China's "dual carbon" strategy. The
Company operates with a strong focus on regulatory compliance
clean production energy efficiency and continuous improvement.By upholding this guiding principle it strives to build a green
industry and promote a circular economy. Emphasizing product
quality and safety Luzhou Laojiao practices the philosophy of
"making the quality of Chinese Baijiu visible." It has established
a comprehensive quality control system across the entire
industry chain plays a key role in setting industry standards
and continues to drive the advancement of high-quality baijiu
production. At the same time Luzhou Laojiao is modernizing
its supply chain standardizing supplier admission evaluation
exit and other management mechanisms and integrating
digital technologies to enhance intelligence and upstream and
downstream resource efficiency. While embracing innovation the
Company also preserves traditional distilling techniques. Luzhou
Laojiao's 1573 National Treasure Cellars built during the Wanli
period of the Ming Dynasty and its traditional distilling techniques
passed down for over 700 years are unique and invaluable
assets to the industry. The Company continues to invest in its
brand culture upholding the corporate philosophy of "co-distilling
with nature coexisting in harmony". As a state-owned enterprise
it takes its social responsibilities seriously fostering a strong
business ecosystem.
07 08LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About Luz总ho经u 理La致ojia辞o
Luzhou Laojiao has been making steady strides in high-quality development. In recent years it has experienced consistent Operational Dimension
growth strengthening both its market position and making it a leading Chinese baijiu brand. In 2024 the Company recorded
a total revenue of RMB 31.196billion and a net income attributable to the parent company of RMB 13.473billion. As Luzhou
Laojiao continues to expand its global presence and strengthen its brand value it was listed among China's 500 Most Valuable "Three Unswerving Commitments" "Four Requirements"
Brands in 2024. Additionally it ranked third in the Brand Finance Alcoholic Drinks 2024 with a brand value of USD 8.2 billion
●
further cementing its leadership in the global spirits industry. Commitment to a competitive
● Fostering shared growth ● Win-win partnerships with
marketing strategy with the industry customers
● Commitment to the belief that "sales ● Aligning with customers ● Keeping pace with the market
come first"
● Commitment to the core value of
creating and sharing prosperity
In 2024
the Company recorded a total a net income attributable to
●
revenue of the parent company of Implementation of ● Implementation
● Prince stability organizational structure of service culture
construction
RMB 31.196billion RMB 13.473billion development● Team stability ● Implementation of ● Implementation of
● Policy stability distribution network corporate efficiency
expansion enhancement
● Implementation of brand
Corporate Culture focus and positioning
"Three Stabilities" "Five Implementations"
Conceptual Dimension
Corporate Philosophy Slogan Management Dimension
Growing with society
Thriving with nature Corporate Management Human Resource Management Marketing Management
Coexisting with humanity Principles Philosophy Philosophy
Integration of people-centered and Talent is the foundation of success
digital management Performance earns recognition Customer-centric approach
Corporate Philosophy Corporate Spirit
Co-distilling with nature Respect and dedication
Coexisting in harmony Innovation and excellence R&D Management Production Management Quality Management Philosophy Philosophy Philosophy
Market-oriented development
Preserving ancestral distilling
Corporate Mission Conceptual
Realize Four "First-Class" techniques Making the quality of Chinese Core Values
Dimension Build four core strengths Baijiu visibleMastering the art of distillation
Achieve a transformation
Wherever Chinese people go Inherit culture Continuously innovate
let them savor Luzhou Laojiao Focus on customers Create wealth
Environmental Management Safety Management Social Responsibility
Philosophy Philosophy Philosophy
Corporate Vision Happy life originates from green Culture creates value
production Safety Health Happiness Harmony drives sustainable growth
Be a giant in the Chinese Baijiu industry
Be a flagbearer of Chinese Baijiu culture
09 10LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About Luz总ho经u 理La致ojia辞o
Company Products
National Cellar 1573 * Classic Luzhou Laojiao Tequ 60s Tribute Edition
National Cellar 1573 * Classic originates from the "National Treasure Cellars" built The Luzhou Laojiao Tequ 60s Tribute Edition is a flagship heritage product of Luzhou
during the Wanli period of the Ming Dynasty (1573 AD). Crafted using the traditional Laojiao. In the 1960s due to its limited production it was only available with special
baijiu-making techniques of Luzhou Laojiao this premium baijiu is crystal-clear with an purchase permits issued by county-level or higher authorities. As a result it was
elegant cellar aroma a smooth and mellow taste balanced sweetness and a clean affectionately known as "Old County Magistrate" a highly sought-after baijiu that was
lingering finish embodying the authentic essence of Chinese baijiu. nearly impossible to obtain in the early years of the People's Republic of China. In
2014 this iconic edition was revived meticulously preserving the original 1960s Tequ
packaging and craftsmanship while featuring Luzhou Laojiao’s premium aged liquor.It faithfully recreates the classic taste of the era. The product is exclusively available
through group-purchase channels with a limited allocation system to maintain its
National Cellar 1573 * Spirit of China exclusivity rarity and prestige.Centennial Luzhou Laojiao Jiaoling Baijiu
National Cellar 1573 * Spirit of China is a tribute to both China's tangible and intangible
cultural heritage. This special edition commemorates the inclusion of the 1573 National
Treasure Cellars and Luzhou Laojiao's traditional baijiu-making craftsmanship in the In 2011 Luzhou Laojiao pioneered the concept of cellar-aged baijiu leveraging its
major historical and cultural sites protected at the national level (1996) and the National historic cellar resources to introduce a grading system based on the actual age of
List of Intangible Cultural Heritage of China (2006). This exquisite baijiu is crystal-clear fermentation cellars. It carefully selected cellars aged 30 60 and even over 90 years to
with a refined cellar fragrance delicate aged aroma rich and mellow taste smooth craft China’s first baijiu named after its cellar age—Centennial Luzhou Laojiao Jiaoling
texture and a lingering clean finish embodying the authentic essence of Chinese Baijiu. This product series includes 30-year 60-year and 90-year cellar-aged baijiu. As
baijiu. the first authentic cellar-aged baijiu in China it filled a market gap and established itself
as the pioneer and leader of the Jiaoling baijiu category marking the beginning of the
"Jiaoling Era" in China's baijiu industry.Luzhou Laojiao 1952 Luzhou Laojiao Touqu
Luzhou Laojiao 1952 is a flagship product within Luzhou Laojiao portfolio. It pays tribute
to the brand’s recognition as one of China’s first "Famous Chinese Baijiu" winners in Luzhou Laojiao Touqu is one of Luzhou Laojiao’s core heritage products. Since its debut
1952 incorporating the essence of five consecutive awards to create an outstanding in the 1950s it has been widely recognized for its exceptional quality earning multiple
high-end strong-aroma baijiu. It stands as a benchmark for the value of premium prestigious awards including the Grand Gold Medal at the Moscow International Spirits
Chinese baijiu. Exhibition. Renowned for its rich mellow and well-balanced profile it embodies the
classic strong-aroma baijiu style delivering a harmonious fusion of deep aroma smooth
texture and a long-lasting aftertaste. For over 70 years Luzhou Laojiao Touqu has
remained one of China's most beloved and widely enjoyed baijiu brands.Luzhou Laojiao Tequ
Luzhou Laojiao Black Cap
Luzhou Laojiao Tequ is regarded as the benchmark of strong-aroma baijiu. Its distinctive
bottle design is inspired by the knife-shaped money used as standardized currency Luzhou Laojiao Black Cap is a key strategic product crafted using fermentation cellars
after the unification of China under the Qin Dynasty. Recognized as the authentic that account for 91.3% of all heritage-protected cellars in the Chinese baijiu industry.representation of strong-aroma baijiu Luzhou Laojiao Tequ holds four prestigious Adhering to traditional solid-state grain fermentation and an eco-friendly minimalist
honors: The first strong-aroma baijiu to win an international gold medal; the only strong- distilling philosophy this baijiu is produced using the industry’s pioneering "cellar mud
aroma baijiu to win the "Famous Chinese Baijiu" title across multiple generations; a key inheritance technology". Its quality has been rigorously evaluated by experts from the
contributor to the establishment of strong-aroma baijiu standards; and the pioneer of Chinese Academy of Engineering and the China Alcoholic Drinks Association meeting
the Tequ baijiu category. This baijiu is world-renowned for its crystal-clear appearance the standards of baijiu aged in cellars over 30 years old. With its rich grain aroma
rich and mellow aroma smooth yet vibrant taste long-lasting aftertaste and lingering smooth and full-bodied texture and lingering sweetness Luzhou Laojiao Black Cap
fragrance making it a beloved choice among consumers. sets a new benchmark for high-quality simply packaged value-driven baijiu.
11 12LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT 2024 Performanc总e 经Hig理hl致igh辞ts
Luzhou Laojiao Health Care Baijiu-Mingniang 2024 Performance Highlights
Mingniang is an innovative herbal tea-infused baijiu developed under the Healthy China
Initiative. Inspired by the distilling traditions of Su Dongpo from the Northern Song Operate with integrity and uphold shared responsibility
Dynasty it harmoniously blends two of China’s most iconic beverages—tea-infused
baijiu—through modern biotechnology. The result is a smooth aromatic and well-
balanced drinking experience featuring a gentle entrance effortless swallow distinctive
●
tea fragrance slow intoxication and quick recovery. Mingniang follows four core brand The Board of Directors held a total of 9 meetings with a 100% attendance rate;
values: technology fashion health and happiness. It's crafted under the leadership of
Shen Caihong Chief Engineer of Luzhou Laojiao a Chinese Baijiu Master and one of ● The Company responded to 100% of investor inquiries via the Shenzhen Stock Exchange investor interaction
the first National Intangible Cultural Heritage Inheritors. It is made using high-quality
Luzhou Laojiao base liquor and premium high-mountain ecological black tea supported platform answered over 600 investor inquiries by phone participated in 73 securities strategy meetings
by five professional platforms including the National Engineering Research Center of
Solid-State Brewing. By overcoming the technical challenges of integrating tea and organized 67 investor exchange meetings and hosted 2 online earnings briefings;
baijiu Mingniang activates natural plant bioactive compounds reduces metabolic strain
and offers a refined drinking experience characterized by a light pleasant buzz that ● A total of 118 periodic and interim reports were issued and the Company has consistently received a Class A allows for full enjoyment.rating (highest level) for information disclosure from the Shenzhen Stock Exchange for multiple years;
Luzhou Laojiao Whitail Craft Beer 980 ● No corruption-related lawsuits occurred;
Luzhou Laojiao Whitail Craft Beer 980 is brewed using imported Australian malt ● 100% of the Company's suppliers and distributors signed the Agreement on Joint Integrity Building;
exclusive yeast and premium imported hops ensuring exceptional quality from the
● Conducted business ethics and anti-corruption training for directors management and all employees achieving
source. It follows the traditional German ale fermentation method using top-fermenting
ale yeast and incorporates a unique "double yeast" fermentation technique. By 100% coverage;
selecting high-aroma high-quality fermentation strains this beer undergoes a slow 35-
day brewing process allowing flavors to fully develop. The brewing process adheres ● Organized 6 cybersecurity training sessions with 1523 employees participating in online information security
to a zero-additive zero-filtration and zero-dilution standard ensuring a pure full-
bodied and rich malt taste. With its golden hue creamy and delicate foam and classic awareness programs and completing the training assessments;
German flavor profile the product delivers a truly exceptional and authentic craft beer 1469
experience.● No privacy security breaches occurred.Customized Baijiu-National Cellar 1573 Auspicious Snake
The National Cellar 1573 Auspicious Snake is a special edition baijiu designed by Produce greenly in harmony with the environment
internationally renowned designer Zhang Chaoyang as part of Luzhou Laojiao’s
Spring Festival tribute series. The bottle’s graceful flowing form reflects a decade of
continuous innovation elegantly capturing the auspicious imagery of the snake. Rooted
in Chinese zodiac tradition the snake embodies the essence of Chinese civilization ● Calculated the carbon footprint for 14 products;
symbolizing smooth progress and good fortune. This edition celebrates the Year of Yisi
extending blessings for prosperity and success in the journey ahead. ● Invested RMB 58.01 million in environmental management including RMB 34.20 million for energy
conservation and efficiency upgrades and RMB 23.81 million for other environmental initiatives;
● Conducted 14 environmental training sessions with 14450 participants;
● Energy consumption intensity per unit of raw liquor dropped by 6.44% achieving the target of a 0.43%
year-over-year reduction in base liquor production energy intensity;
● Purchased 5944 MWh of green electricity recycled 3599200 cubic meters of biogas reducing carbon
dioxide emissions by 58808 tonnes;
13 14LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT 2024 Performance Highlights
● The Company's compliant disposal volume of hazardous waste reached 28.12 tonnes and solid waste
● Achieved 100% employee satisfaction rate;
reached 395040 tonnes achieving a 97.9% resource utilization rate;
● Provided 1876 instances of financial assistance supported 13 employees' children with education
● Implemented water-saving measures: 61100 tonnes of water saved in water production; 2367100 subsidies and allocated RMB 871800 for employees in financial hardship;
tonnes through the recycling of brewing cooling water; 1346 tonnes of water saved in baijiu production; ● Achieved 100% health check-up coverage with no suspected occupational disease cases.
97000 tonnes of water saved in product packaging;
● Hosted nearly 150 biodiversity-related training sessions with over 10000 participants annually.Create value and drive progress with the industry
Craft with excellence and grow together with customers
●
No 51 suppliers obtained the ISO 45001 certification for occupational health and safety 56 obtained the ISO 14001 ● product recall occurred;
certification for environmental management and 65 obtained the ISO 9001 certification for quality management;
● No food safety incidents occurred;
● Organized 46 hours of ESG-related training for suppliers covering workplace safety resource conservation and
● Conducted 24 quality training sessions engaging nearly 1000 employees;
anti-corruption with 48 suppliers participating;
● Achieved a 100% response rate to customer feedback and a 97.30% resolution rate for customer
● 60% of suppliers are based in Luzhou City contributing to over 90% of the total annual procurement
complaints;
4 1879 99.70% amount while suppliers in the Baijiu Industry Park accounted for over of annual procurement;● Conducted dealership customer surveys covering dealers with a customer satisfaction 85%
rate; ● Secured approval for three provincial-level projects with a total funding of RMB 2.40 million;
● Provided 2 responsible marketing training sessions ensuring 100% participation of employees in the Brand ● The postdoctoral research station welcomed 40 new postdoctoral researchers 17 PhD candidates and 37
Center and Planning Department. master's degree students.Foster diversity and thrive alongside employees
Preserve cultural heritage and advance with society
● No cases of child labor forced labor or discrimination were identified;
● The Company employs 269 evaluators including 15 expert-level 173 intermediate-level and 81
● Invested RMB 3.54 million in rural revitalization benefiting over 4460 villagers;
junior-level evaluators;
● RMB 13.88 million was invested in employee training totaling 297378.88 hours with an ● 2664 employees participated in 120 volunteer activities contributing over 1200 service hours;
average of 88.90 training hours per employee; ● RMB 11.49 million was invested in philanthropy.
15 16LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT ESG 总Go经ve理rn致an辞ce
2024 Awards and Honors ESG Governance
National Safety Culture Construction Provincial Safety Culture Construction Luzhou Laojiao actively upholds its social responsibility philosophy of "growing with society thriving with nature coexisting with
Demonstration Enterprise Demonstration Enterprise humanity." The Company continuously refines its ESG management system strengthens ESG issue governance and upholds
China Association of Work Safety Office of Sichuan Work Safety Committee environmental protection social responsibility and corporate governance as the three pillars of its long-term development.By working closely with stakeholders the Company strives to create a greener more socially responsible industry and drive
Excellent Organizer of the Luzhou Work sustainable progress.Advanced Enterprise Full-time Fire Safety Emergency Science Popularization
Brigade of Sichuan Province Scene Drama Competition
ESG Governance Framework
Fire and Rescue Department of Sichuan Office of Luzhou Work Safety Committee
Province
Selected as one of the first batch of on-site Luzhou Laojiao places great emphasis on ESG governance continuously optimizing its ESG governance framework and
Contact Point for Female Workers of the teaching sites for key work innovation cases improving governance effectiveness. In 2024 the Company issued the Rules of Procedure of the Strategy and ESG Committee
All-China Federation of Trade Unions of the All-China Federation of Trade Unions of the Board of Directors1. The Board of Directors is the highest governing body for ESG matters and oversees the Strategy and
ESG Committee which includes three directors including the Chairman. This committee guides long-term strategy investment
Women Workers Committee of the All- All-China Federation of Trade Unions decisions sustainable development and ESG efforts while providing regular updates to the Board. Additionally the Strategy
China Federation of Trade Unions and ESG Committee establishes an ESG Working Group as needed to collect information coordinate meetings and ensure the
execution of ESG-related decisions.Executive Director Unite of Enterprise Intelligent Manufacturing Benchmark
Anti-Fraud Alliance Enterprise
Enterprise Anti-Fraud Alliance Secretariat of the China Intelligent Manufacturing
System Integrator Consortium ESG governance framework of Luzhou Laojiao
"Pacemaker" in China's Industrial 2024 "Pacemaker" Case of Digital
Data Governance Transformation in China's Light Industry
China Federation of Industrial Economics China Light Industry Information Center
● Being the highest decision-making body on ESG matters
Board of
Golden Bull Awards for Most Valuable ●
Environmental Integrity Enterprise Directors
Reviewing the Company's ESG strategy and objectives
Investment and Best Disclosure Practice ● Makeing decisions on major sustainability-related issue
Decision-
Department of Ecology and Environment China Securities Journal making level
●
of Sichuan Province Studying and advising on sustainable development
Strategy ESG and related matters
Top 100 of the 18th Awards of the Value of Best Practice in Board Governance for and ESG ● Reviewing the Company's ESG report and reporting
Listed Companies in China Listed Companies Management level Committee to the Board
● Coordinating ESG initiatives across the company
Securities Times China Association for Public Companies
● Collecting relevant information and data and
Best Practice in Investor Relations Grade A (Excellent) in Information ESG
Execution level Working arranging meetings regularlyManagement for Listed Companies Disclosure Assessment
Group ● Implementing decisions made by the Strategy and
ESG Committee
China Association for Public Companies Shenzhen Stock Exchange
Top 10 of the Hurun Most Valuable 2024 Special Award for Scientific and
China Brands 2023 Technological Invention
1 https://www.szse.cn/disclosure/listed/bulletinDetail/index.html64f41c0e-1ef8-492f-9078-c4966a07a9ed
Hurun Brands List China General Chamber of Commerce
17 18LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT ESG 总Go经ve理rn致an辞ce
Materiality Issues Assessment Stakeholder Communication
In 2024 Luzhou Laojiao conducted a materiality assessment based on the compliance requirements of the Shenzhen Stock Luzhou Laojiao actively engages with stakeholders closely monitoring their expectations and concerns. By maintaining effective
Exchange leading ESG rating frameworks and industry best practices. The process incorporated stakeholder expectations and ongoing communication and using diverse engagement channels the Company ensures timely responses to stakeholder needs
concerns identifying 20 key material topics and updating the company’s materiality matrix. Luzhou Laojiao bases its response to and incorporates their insights into its sustainability strategy.stakeholder concerns on these findings and provides relevant disclosures in this report.Luzhou Laojiao's stakeholders and communication channels
Materiality issues assessment process of Luzhou Laojiao
Stakeholders Expectations and Concerns Communication and Response Measures
Stakeholder ● Establishing a regular communication mechanism with government bodies regulatory agencies
engagement investors employees and other stakeholders to document and address their concerns
●
● Ensuring legal and compliant operations
Government Compliance with laws and regulations
and ● ● Business ethics Aligning with national policies
Regulatory ●
● Identifying actual and potential economic environmental and social impacts based on operations ● Supporting local economic Fulfilling corporate social responsibilitiesAuthorities
business relationships and stakeholder input development ● Strengthening governance mechanisms
Material topic
identification
● Selecting an initial list of 20 material topics in alignment with SZSE compliance requirements leading
● Maintaining prudent business operation
ESG rating frameworks and industry best practices while incorporating stakeholder expectations ● Economic and market performance
Shareholders ● Enhancing information disclosure
●
and Investors Risk management ● Ensuring fair profit distribution
● Information disclosure
Materiality ● Conducting ESG materiality surveys to gather stakeholder insights on key ESG topics and corporate ● Organizing investor meetings
issues
assessment strategy
● Improving training and promotion systems
● Competitive compensation and
●
benefits Enhancing employee welfare programs
Materiality ● Reviewing and prioritizing material topics based on survey results with input from third-party consultants Employees ●● Occupational health and safety Strengthening employee health
matrix
confirmation and company management then visualizing them in a two-dimensional materiality matrix management● Career development and training
● Holding employee representative meetings
● Strengthening quality control
Luzhou Laojiao 2024 ESG materiality matrix ● Product quality and safety
● Enhancing customer service
Moderate Importance High Importance Consumers/ ● Customer service
●
Clients Standardizing marketing communications● Responsible marketing
●
Water resource management Advocating responsible drinking● Promoting responsible drinking
Occupational health and safety ● Conducting customer satisfaction surveys
Business ethics and anti-corruption Product safety and quality
●
Packaging materials and waste management Establishing a robust supply chain
Data security and ●
Corporate governance Business ethics management systemprivacy protection
Employee training and development Cultural heritage and Partners and Supply chain management ● ● Disclosing procurement informationsocial contribution Employee Rights and Protection Supply Chain
Responsible marketing ● Industry exchanges ● Providing supplier training
Responsible drinking Product carbon footprint ● Hosting distributor conferences
Industry collaboration and advancement Responding to climate change
Customer service Customer service
● Environmental protection ● Implementing green production initiatives
Supply chain management Environment
● Climate change mitigation ● Practicing sustainable operations
R&D and innovation
●
Biodiversity conservation Community engagement ● Participating in public welfare programs
●
Low Importance Community Public welfare initiatives ● Supporting rural revitalizationImportance to Luzhou Laojiao
● Rural revitalization ● Organizing volunteer activities
Social issues Governance issues Environmental issues
1920
Importance to Stakeholders01 Operate with Integrity and Uphold Shared Responsibility
Sustained growth relies on strong corporate governance. Luzhou Laojiao strengthens the foundation of compliance
upholds business ethics and anti-corruption principles and establishes a comprehensive risk management framework
to proactively identify and mitigate risks. Simultaneously the Company continues to advance its "Digital and Intelligent
Luzhou Laojiao" initiative enhancing information security and privacy protection while promoting high-quality sustainable
development across the industry.Corporate Governance Business Ethics and Anti-corruption
Information Security and Privacy Protection Digital and Intelligent Luzhou LaojiaoLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Corporate Governance
Luzhou Laojiao strictly adheres to all applicable laws regulations departmental rules and corporate governance standards Luzhou Laojiao prioritizes building a professional independent and diverse Board of Directors. The Company follows a
including the Company Law the Securities Law of the People's Republic of China and the Guidelines for the Articles of structured diversity framework when selecting board members considering factors such as gender age cultural and educational
Association of Listed Companies. In compliance with these legal and regulatory requirements the Company has formulated background professional experience skills knowledge and tenure. By optimizing the Board’s composition and introducing
governance policies such as the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders specialized talent the Company ensures a well-structured governance system that supports the Board’s efficient and strategic
ensuring a robust corporate governance framework. The Company’s governance structure is built on clear rights responsibilities operations. Board members bring expertise from various sectors including accounting finance engineering and the food
and a system of checks and balances. It includes the General Meeting of Shareholders the Board of Directors the Board of industry. As of December 31 2024 the Board comprised 11 members including four independent directors. During the reporting
Supervisors (collectively referred to as the "Three Boards") and the Executive Management Team. The Board of Directors period the Board held nine meetings achieving a 100% attendance rate.oversees four specialized committees: the Strategy and ESG Committee the Nomination Committee the Audit Committee
and the Remuneration and Appraisal Committee. Focusing on the operation of the Three Boards the Company continuously
enhances and refines its governance system formulates comprehensive rules of procedure and clearly defines the rights and
responsibilities of all parties. These efforts strengthen the independent operation and oversight of the Three Boards ensuring
sound governance and safeguarding shareholders' rights and interests. During the reporting period
Luzhou Laojiao governance framework
the Board held achieved a
General Meeting of Shareholders 9 meetings 100% attendance rate
Board of Supervisors
Board of Directors
Professionalism independence and diversity of Luzhou Laojiao's Board of Directors
Audit Committee Strategy and ESG Nomination Committee Remuneration and Committee Appraisal Committee
● The Board has four specialized committees: the Nomination Committee Remuneration and Appraisal
Committee Strategy and ESG Committee and Audit Committee;
Executive Management Team
● All 11 directors hold a master's degree or higher;
●
Governance framework and responsibilities of Luzhou Laojiao Board members possess expertise across various professional fields with some directors recognized as
industry experts.The General Meeting of Shareholders is Luzhou Laojiao’s highest decision-making body with its
General resolutions shaping the Company’s development. To safeguard shareholder rights the Company
Meeting of has established the Rules of Procedure for the General Meeting of Shareholders in line with
Shareholders legal requirements. These rules define key processes ensuring standardized operations and ● Among the 11 directors four are independent directors accounting for 36.4% of the Board;
promoting an open fair and transparent environment. Shareholders are guaranteed the right to
access information participate in decisions and exercise their voting rights. ● Independent directors serve as chairpersons of the Audit Committee Nomination Committee and
Remuneration and Appraisal Committee and constitute the majority of members in these committees;
●
The Board of Directors reports to the General Meeting of Shareholders and operates under the The Company enforces a separation of roles between the Chairman and the General Manager ensuring that
Articles of Association the Rules of Procedure for the Board of Directors and the rules governing these positions are not held by the same person.Board of
Directors its specialized committees. It carefully evaluates internal and external factors deliberates on
major strategic and business decisions and exercises its authority with diligence ensuring the
Company’s stable and sustainable growth.The Board of Supervisors performs its duties in accordance with the ● Articles of Association and The Board includes one female director;
the Rules of Procedure for the Board of Supervisors. It oversees the Company’s financial and
Board of ● Board members represent a diverse age range.Supervisors business activities and monitors the performance of directors and senior executives to ensure
regulatory compliance. By safeguarding the interests of the Company and its shareholders the
Board of Supervisors plays a key role in promoting stable development.
2324
Diversity Independence ProfessionalismLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
We are committed to fostering transparent and effective communication with investors safeguarding the rights and interests of
all shareholders particularly minority investors. The Company has established and implemented internal governance policies
including the Information Disclosure Management System and the Investor Relations Management System to enhance In 2024
transparency and engagement. By utilizing various communication channels and platforms we strengthen investor relations
build market confidence and work to maximize corporate value and shareholder returns. the Company maintained a addressed over
100% response rate to investor inquiries through the 600 investor inquiries
Information disclosure management mechanism Shenzhen Stock Exchange’s investor interaction platform by telephone
the Company actively engaged with organized
Information ● The Board of Directors oversees information disclosure while the Board the capital market by participating in 67 investor hosted 2 online
Disclosure Secretary manages day-to-day disclosure responsibilities. The Company earnings briefings securities strategy meetings exchange meetings
Management and ensures the Board Secretary has the necessary resources and all disclosure 73
Responsibilities obligors are expected to provide full support and cooperation.the Company prepared and published the Company had consistently received an "A"
118 periodic and interim reports rating—the highest level—for information disclosure
from the Shenzhen Stock Exchange for multiple
consecutive years
Contents of ● Disclosures include regular reports (Annual and Interim Reports) and interim
Information disclosures for material events that could significantly impact the Company’s
Disclosure securities or derivatives prices.Compliance Management
Information ● Information is released through the official Shenzhen Stock Exchange website Luzhou Laojiao prioritizes corporate compliance and is committed to building a comprehensive management system that
Disclosure Channels and other regulatory-compliant platforms approved by the China Securities ensures stable operations within legal and regulatory frameworks industry standards and internal policies. The Compliance
Regulatory Commission (CSRC). Committee serves as the central body for oversight ensuring adherence to best practices and long-term sustainable
development.Compliance management framework of Luzhou Laojiao
Investor relations management mechanism
Institution Name Functional Scope
Compliance The Compliance Committee is composed of various functional departments and subsidiary companies
Committee and is responsible for providing guidance supervision and assessment of compliance management.Communication Content for Investors Investor Relations Information Disclosure Management Channels Channels Compliance The Legal and Risk Control Center is responsible for the daily management of compliance-related tasks.Office
● The Company's long-term development strategy ● Multiple communication platforms ● The Board Secretary is
● Legally required disclosures including the Company’s official responsible for coordinating
website social media platforms and managing investor The Company has established a comprehensive compliance and internal control system by formulating the Compliance
● The Company's information related to daily
telephone hotline and email relations. The Board Office Management Measures and the Basic Standards for Enterprise Internal Control. To mitigate legal risks the Company operations and management
serves as the dedicated continuously strengthens risk monitoring and early warning mechanisms across key areas including capital operations project ●
The Company's ESG information Utilization of network service ● department for investor execution major asset acquisitions significant loan transactions contract review and employment practices. Legal support platforms provided by stock is integrated into decision-making processes to safeguard corporate interests. Additionally the Company conducts systematic
● Corporate culture and values exchanges securities registration relations management reviews of past case studies and offers compliance training across all business units to enhance awareness and ensure
● Processes and procedures for shareholders to and infrastructure adherence to compliance protocols.exercise their rights ● In-depth engagement through
● Investor inquiries and concerns various investor forums including
● Current and potential risks and challenges faced shareholders' meetings investor
by the Company exchange meetings roadshows
Other relevant corporate updates analyst meetings and symposiums●
25 26LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Business Ethics and Anti-corruption
Risk Management
Luzhou Laojiao firmly opposes corruption bribery extortion fraud monopoly money laundering and unfair competition. The
Luzhou Laojiao continuously improves its internal control system guided by laws and regulations and anchored in compliance Company continuously strengthens its supervision system ensures open and unobstructed reporting channels safeguards
management. The Company implements a comprehensive risk management framework and has established a "Three Lines of whistleblower confidentiality and actively fosters a transparent and ethical business environment.Defense" mechanism to assess monitor and mitigate various risks ensuring legal and regulatory compliance in all business
activities.Anti-Bribery and Anti-corruption
"Three Lines of Defense" risk management mechanism
Luzhou Laojiao strictly complies with the Supervision Law and other applicable laws and regulations. The Company has
First Line of Defense Second Line of Defense Third Line of Defense established a robust internal governance framework which includes policies such as the "Three Early Warnings and Three
Cards" Integrity Alert Mechanism the Regulations on Employee Integrity Compliance the Measures for Integrity Review in
Official Selection and Appointment the Interim Provisions on Middle-Level Official Accountability the Several Provisions on
Middle-Level Official Integrity Compliance and the Official Management Measures. During the reporting period the Company
revised several internal policies including the Administrative Measures for Tangible and Monetary Gifts the Administrative
Each business department is The Legal Risk Control Center The Discipline Inspection Measures for Integrity Supervisors (Trial) and the Detailed Rules for the Supervision of the Discipline Inspection Committees of
responsible for managing risks serves as the Company’s risk Supervision and Audit Primary-Level Party Organizations (Trial) explicitly reinforcing a “zero-tolerance” policy toward any form of corruption or bribery.within its scope serving as the management unit organizing Departments oversee
first line of defense. coordinating and supervising compliance within their The Company has established a stringent discipline inspection and supervision framework with the Discipline Inspection
risk management efforts while designated authority forming Committee overseeing the daily management of business ethics issues. Luzhou Laojiao Co. Ltd. Luzhou Laojiao Distillery Co.providing support to other the third line of defense. Ltd. and Luzhou Laojiao Sales Co. Ltd. have established Discipline Inspection Committees with subordinate offices. All primary-
departments fulfilling its role level Party branches appointed dedicated discipline inspection commissioners enabling comprehensive disciplinary oversight
as the second line of defense. across all business operations. In 2024 no corruption-related litigation cases were reported.Key integrity management mechanisms
Risk management process
"Three Early ● This proactive mechanism identifies potential corruption risks and unethical behaviors through
Warnings and Three
Risk Identification Cards" Integrity early detection immediate warning and rapid intervention. It utilizes reminder caution and
Alert Mechanism correction cards to reinforce prevention and ensure timely alerts.Departments and affiliated enterprises are required
to complete risk assessment questionnaires which Code of Conduct ● The Company has established conduct guidelines for employees in external business
are then collected and analyzed. for Professional activities explicitly outlining prohibited actions and establishing a structured penalty system for
Integrity violations.Risk Confirmation
● Strict integrity reviews are conducted during the official appointment process. The Discipline
Identified risks are verified to confirm their actual Inspection Committee evaluates candidates comprehensively before their promotion issuing
existence and specific impact on the Company’s final integrity review opinions. Integrity Review
operations. ● For directly managed officials the Party Committee and Discipline Inspection Committee hold
Risk Analysis decisive "one-vote veto" authority in assessing ethics and integrity.● When holding middle-level officials accountable the focus is on aligning responsibilities
The verified risks undergo in-depth evaluation
assessing their likelihood of occurrence and potential Accountability
with actual faults following the principle of "seeking truth from facts" and combining both
of Middle-level educational and disciplinary measures.impact including legal financial and reputational Officials
●
consequences. A hierarchical accountability system is in place to ensure that responsibility for accountability is
implemented at each level.Risk Prevention and Control
●
Tangible and Leaders and employees at all levels are expected to reject tangible and monetary gifts in
Preventive and mitigation measures are developed Monetary Gifts business dealings. If gifts cannot be declined or returned they must be reported properly
Management
and implemented to reduce or eliminate risks and managed and disposed of in line with relevant regulations.minimize their potential adverse effects.
27 28LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Luzhou Laojiao priori t izes integri ty in i ts
partnerships promoting ethical collaboration Case Business ethics and anti-corruption training series activities
through the Agreement on Joint Integrity
Building and the issuance of integrity supervision
cards. These measures clarify business ethics To enhance employees' awareness of integrity the Company has taken a range of measures to cultivate a culture of integrity:
requirements including anti-corruption and
anti-bribery standards and outline penalties ● By combining comprehensive coverage and personalized approaches we have developed a series of integrity education
such as liquidated damages deductions and courses with 372 sessions for all employees. Additionally key personnel have received personalized education including 132
disqualification from cooperation. In procurement specialized sessions and 43 unique activities. We have developed 79 distinctive courses covering over 16000 participants.management the Company works with multiple
● Integrating a commitment to core values with a focus on warning education we have strengthened thematic education by
departments to rigorously review supplier conducting 30 discipline education sessions and implementing 55 "Four Ones" warning education activities reaching more
qualifications ensuring compliance across than 3000 participants.the supply chain. During the reporting period
100% of suppliers and distributors signed the ● Integrating cultural leadership with clean governance initiatives we have deepened the significance of our "Pure Spirit National
Agreement on Joint Integrity Building. Ceremony for signing the Agreement on Joint Integrity Building Cellar · Eternal Prosperity Through Excellence" campaign. We have guided 35 primary-level party organizations in building
their unique brands upgraded online education platforms published 287 articles on our public accounts which received over
The Company integrates business ethics audits into its overall audit process annually with a focus on anti-corruption and 80000 clicks and shares. Additionally we organized 6 themed events covering more than 5000 people trained 83 lecturers
business ethics. In 2024 the Company enhanced governance by incorporating daily supervision into project management and created 25 pieces of content.procurement and key business oversight. It also improved the "1+5+N" supervision system2 to integrate various supervisory
measures more effectively. Key actions included conducting eight risk analyses and evaluations identifying and rectifying
multiple risks employing 42 integrity supervisors and clearly defining the roles and responsibilities of Discipline Inspection
Committee members strengthening joint supervision through five special initiatives across multiple departments to eliminate
risks and enhance management processes and deepening on-site inspections in sales regions such as Shijiazhuang Tianjin
and Chengdu leading to the identification and rectification of several issues.The Company continues to promote business ethics and anti-corruption training and awareness campaigns. Integrity education Case Anti-corruption theme activity for families
is provided to the Board of Directors management and all employees in various formats. In 2024 the Company achieved 100%
training coverage for directors management and employees. The Company focuses on key groups such as young and newly promoted officials conducting family-based anti-corruption
visits under the theme "Bringing Integrity and Warmth to Families: Promoting Clean Family Values." These visits cover all
employees at different levels using discussions risk reminders and "Family Integrity Support Packs" to clarify integrity
requirements and risks in the workplace for employees and their families while inviting them to jointly safeguard good family
traditions.During the reporting period In 2024 the Company will develop the
"Four Ones" family tradition activity brand
and organize the theme event "Fostering
100% the Integrity Culture of National Cellar of suppliers and distributors signed the Agreement on Joint Integrity Building and Cultivating a Better Life Together."
This will involve primary-level party
organizations conducting 16 activities
including on-site education at family
tradition education bases and distinctive
the Company achieved family tradition-themed activities. We
will create family tradition classrooms to
100% training coverage for directors management and employees reinforce family values select the "Top Ten ‘Incorruptible’ Domestic Assistants"
and 2024 Exemplary Family and actively
promote family role models. Additionally
we will host the "Big Hands Little Hands
Pract ic ing Good Family Tradi t ion"
themed study activities on June 1st Family integrity support initiative
organizing employees and their children
2 "1" refers to the specialized supervision by the Company's Discipline Inspection Commission; "5" refers to the supervision by the Party organization to participate further fostering parent-
functional departments employees partners and third-party professional institutions; and "N" refers to the joint supervision by multiple departments within child integrity.the Company including finance auditing legal affairs human resources enterprise management safety environmental protection and others. This
supervision system covers all categories across the entire chain of the Company and applies to all employees.
29 30LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Anti-monopoly and Anti-unfair Competition
Luzhou Laojiao strictly adheres to the Anti-Monopoly Law of the People's Republic of China and the Anti-Unfair Competition
Law of the People's Republic of China and has formulated the Employee Code of Conduct and Labor Discipline Management
Measures which clarify the handling of trade secrets and rights protection cases reinforcing awareness of fair competition.During the reporting period the Company received no complaints
or reports regarding unfair competition. A total of 90 cases of unfair
competition disputes were handled including cases involving the During the reporting period
infringement of Luzhou Laojiao’s intellectual property. Notable casesincluded the “The Shaanxi Baishui Dukang Distillery Co. Ltd. case the Company receivedinvolving trademark infringement and unfair competition” “The Zhu Yucomplaints or reportscase related to trademark infringement and unfair competition” and no“The Luzhou Shikefu Daqu Distillery Co. Ltd. case involving trademark regarding unfair competitioninfringement and unfair competition.” These cases were recognized as
top-ten typical intellectual property cases in Sichuan Province Gansu
Province and Wuxi City.Letter and visit reporting mechanism
Anti-money Laundering
● Embezzlement misappropriation or deliberate damage to the Company's assets;
Luzhou Laojiao strictly complies with the Anti-Money Laundering Law of the People's Republic of China and the Measures
● Causing significant losses to the Company due to dereliction of duty or abuse of powers;
for the Administration of RMB Current Accounts with Banks. The Company has established internal systems including the
Monetary Fund Management Measures and the Bank Deposit Management Measures which regulate the opening usage Scope ● Soliciting or accepting bribes or kickbacks in any form;
and cancellation of RMB bank settlement accounts to effectively mitigate money laundering risks. In collaboration with financial of Letter ● Malicious disclosure of the Company's core secrets for personal gain;
and Visit
institutions Luzhou Laojiao conducts client identification and due diligence in line with anti-money laundering practices. It has Reporting ● Damaging the Company's interests through fraudulent reporting impersonation jobbery or
also established a robust monetary fund management system and promotes the effective management of financial information. internal-external collusion;
To strengthen internal awareness the Company conducts periodic training and awareness campaigns to enhance employees’
● Other actions that violate Company regulations and harm the rights and interests of the Company
understanding of anti-money laundering practices. and its employees.Whistleblower Protection
● Report hotline: 0830-2398612;
● E-mail: jiwei@lzlj.com;
The Company has developed the Administrative Measures for Letters Ways of
●
and Visits Reporting to encourage employee supervision ensure Petition Address for letter or on-site reporting: Discipline Inspection Commission Office Luzhou Laojiao
efficient issue handling and protect whistleblower rights. A dedicated During the reporting period Reporting Command Center Nanguang Road Longmatan District Luzhou City Sichuan Province;
post has been established to manage various types of reports ensuring ● Online reporting: "Supervision and Reporting" section on the WeChat official account "Integrity the Company accepted and
they are processed approved and addressed following proper Luzhou Laojiao."resolved
procedures. Confidentiality measures are strictly enforced to protect
the identity of whistleblowers and the content of their reports. Any 13 petition reports
form of retaliation against whistleblowers is strictly prohibited. In 2024
the Company accepted and resolved 13 petition reports ensuring ● The legitimate rights and interests of whistleblowers are protected by law. The Discipline
compliance with corporate discipline and safeguarding employees' Inspection Commission Office ensures the confidentiality of the whistleblower’s personal
rights and interests. information and report details and provides necessary protective measures to guarantee their
Protection safety;
and Reward ● If the reported matters are verified to be true resulting in disciplinary action or legal penalties
for wrongdoers and successful recovery or reduction of economic losses for the Company the
whistleblower will be rewarded accordingly to commend their contribution to the Company’s
compliance operations.
31 32LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Information Security and Privacy Protection Data management committee structure and responsibilities
Luzhou Laojiao strictly adheres to laws and regulations such as the Decision- Approving data management strategies objectives plans policies
Cybersecurity Law of the People’s Republic of China the Data Security making
Data Management
Committee and annual plans approving changes to mechanisms and supervising Level
Law of the People’s Republic of China and the Personal Information coordinating and resolving major data management issues
Protection Law of the People’s Republic of China. The Company has
developed various internal management systems including the Network
and Information Security Management System (Trial) the Internet Access Developing and executing data management strategies and plans
Behavior Management Specification the Detailed Rules for the Use and Management Data Management
Management of IT Terminal Equipment the Domain Name Management Level Office
improving systems and standards and leading efforts to enhance cross-
domain data capabilities.Regulations the Computer Room Management Rules the Administrative
Measures for System Data Backup and the Detailed Rules for Handling
Information Security Vulnerabilities. These procedures are designed to
mitigate operational risks prevent security incidents and ensure the safe Business Execution Standardizing the generation management and use of business data
and stable operation of the Company’s networks and information systems.Execution Departments enhancing data quality monitoring and addressing data security and and System
The Company has established a Network and Information Security Level Maintenance quality issues supporting data management initiatives and ensuring the
Committee with a dedicated office to enhance information protection. In Departments effective implementation of data security practices.
2024 the Company also formed a Data Management Committee at the
corporate level chaired by the General Manager with business area
leaders as deputy directors and the Chief Digital Officer as Secretary-
General. This committee ensures comprehensive coordination and Focusing on safety management security technology and secure operation the Company has developed a security
guidance of data management efforts. management plan and implemented a series of security measures to ensure the smooth execution of the digital transformation
during the 14th Five-Year Plan period.Security Safety management and control blueprint Security
Management Operation
Information security management structure and responsibilities
Security
Technology
● Regulatory compliance ● Security posture awareness
management ● Information asset management
Network and Information Network and Information ● Security organization ● Zone partitioning and layered defense ● Security penetration testing
Security Committee Security Office establishment
● Identity authentication and access ● Vulnerability closed-loop
● Security protection construction control management
●
Overseeing the implementation Implementing security Security policy standardization ● Intrusion prevention and virus protection ● Attack and defense drills
of network and information resolutions strategies and ● Security process control ● Host hardening and disaster recovery ● Emergency response
security policies formulating management systems ● Security awareness training ● Security monitoring and log auditing ● Critical support
strategic plans reviewing supervising assessments
●
systems coordinating the Project security managementorganizing evaluations ● Data security and personal information
resolution of major issues and coordinating major events ● Third-party partner management protection
providing overall guidance for strengthening internal and ● Mobile application security DLP
security initiatives. external cooperation and ● Terminal data security DLP
promoting security awareness
● Industrial control security protection
across the organization.● Zero trust architecture
To further strengthen and standardize data management and improve data quality the Company has implemented a top-down To ensure business continuity and enhance emergency response capabilities the Company actively participated in attack and
three-tier management structure with the Data Management Committee as the core ensuring the unity and standardization of defense drills. In 2024 the Company was awarded "Outstanding Defensive Unit" in the Luzhou-Yongchuan-Jiangjin "Luyouqi"
data. Cup Cybersecurity Drill organized by the Luzhou Cyberspace Affairs Administration and Public Security Bureau.
33 34LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Case Luzhou Laojiao participated in the "2024 Sichuan-Chongqing-Yunnan-Guizhou-Guangxi Case Luzhou Laojiao launched cybersecurity publicity week
Network Security Attack and Defense Drill"
Luzhou Laojiao participated in the "2024 The Company is committed to building a secure network environment safeguarding information assets ensuring stable business
Sichuan-Chongqing-Yunnan-Guizhou- operations and collectively maintaining national network security. Luzhou Laojiao held a Cybersecurity Publicity Week from
Guangxi Network Securi ty Attack and September 9 to September 15 2024 aimed at enhancing the cybersecurity awareness and skills of all employees through internal
Defense Drill". As one of the defense teams training and practical drills. During the event the Company focused on promoting network security laws regulations and protective
it competed alongside 440 defense units and knowledge while strengthening employees' ability to identify and respond to cybersecurity risks.
33 attack teams under the organization of the
Office of the Cyberspace Affairs Commission
of the CPC Sichuan Provincial Committee
and the corresponding authorities from
Chongqing Yunnan Guizhou and Guangxi.During the drill Luzhou Laojiao successfully
completed its defense task through measures
such as surface convergence enhanced
securi ty checks and cont inuous 24/7
monitoring. This drill effectively improved the
Company's emergency protection capabilities Network security attack and defense drill
and strengthened its security strategy.Cybersecurity publicity week
The Company regularly engages qualified third-party institutions to conduct audit certifications and security assessments. During
the reporting period the Company’s portal website enterprise mailbox and paperless office system obtained Level II certificates
for national information system security protection.The Company enforces strict regulations on internal data usage and
To enhance employee awareness of network security and information protection the Company conducted six cybersecurity processing while prioritizing customer privacy protection. The Luzhou During the reporting period
training sessions and promoted online to 1523 employees to participate in online "Information Security" awareness training. Of Laojiao App's mini-program clearly outlines privacy protection terms
these 1469 employees successfully completed the training assessment. requiring customers to read and acknowledge them before any
information is collected. Data collection only occurs after customers no privacy breaches occurred
provide informed consent. During the reporting period no privacy
breaches occurred.During the reporting period
the Company conducted and promoted online to 1469 employees
6 cybersecurity training 1523 employees to successfully completed the training assessment
sessions participate in online "Information
Security" awareness training
35 36LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Digital and Intelligent Luzhou Laojiao Enterprise Digital Architecture Planning
Luzhou Laojiao is driving the digital and intelligent transformation of traditional industries through technological innovation. As Luzhou Laojiao is advancing its digital transformation by optimizing business architecture enhancing the innovation capacity
part of its 14th Five-Year Plan the Company outlined the strategic vision of building a "Digital and Intelligent Luzhou Laojiao." of its application architecture and building a robust data architecture to support precision marketing and intelligent production.This strategy integrates key business systems using digital technologies connecting value chains across management These efforts improve product quality and production efficiency while strengthening consumer engagement and deepening
procurement production quality inspection marketing and service. Concurrently the Company has accelerated the integration recognition of the Luzhou Laojiao brand culture.of intelligent equipment and systems across its entire industry chain to reduce costs and enhance efficiency. Its goal is to
become a leader in intelligent technology and a model for industrial innovation and upgrading. By the end of 2024 Luzhou Enterprise Digital Architecture Planning
Laojiao had essentially completed the comprehensive digitalization of its business and is progressing toward full intelligence.In 2024 Luzhou Laojiao was successfully selected as one of the Pacemakers in China's Industrial Data Governance due to
its solid efforts and excellent performance in industrial data ecosystem development and business digital transformation. The
Company was also included in the "Intelligent Manufacturing Benchmark Enterprises (9th Batch)" list issued by the China
Electronics Standardization Institute under the Ministry of Industry and Information Technology becoming the first national-level
intelligent manufacturing benchmark enterprise in the baijiu industry. Business Application Data Technical
Architecture Architecture Architecture Architecture
Digital Transformation
Luzhou Laojiao has established a comprehensive digital support system which includes the establishment of a Digital
Transformation Steering Committee and a Network and Information Security Committee both chaired by the Chairman and
General Manager. A Digital Transformation Executive Office has also been set up comprising business area leaders and IT Digital Construction Guarantee System Architecture
department heads ensuring the efficient promotion of the transformation process.To achieve the strategic goal of "Building a Digital and Intelligent Luzhou Laojiao" the Digital Transformation Steering Luzhou Laojiao has established an internal "Digital Construction Guarantee System Architecture" reflecting the Company's
Committee has developed a top-level planning scheme for the 14th Five-Year Plan period. This plan outlines the Company’s commitment and strategic direction toward digital transformation. The system is structured into three core segments namely the
digital transformation blueprint defines its enterprise-level digital architecture and establishes a construction guarantee system. "Center of Excellence" "Information Sharing Services" and "ITBP3". These components form a collaborative and well-structured
It also clearly defines the implementation path for the digital transformation process. digital operational system that accelerates the implementation of Luzhou Laojiao's digital transformation initiatives.Digital transformation business blueprint under the 14th Five-Year Plan
Digital Development Center
Digital Transformation Business Blueprint Planning Enterprise Digital Architecture Planning
Defines the core strategy of "assigning value Conducts comprehensive planning across
with data and advancing four modernizations business data application and technology
simultaneously" aiming to optimize business domains providing a solid architectural
operations and enhance management foundation for the Company’s digital
decisions through digital technology transformation Center of Excellence Information Sharing Service ITBP
Guarantee System for Digital Construction Digital Transformation Path
Establishes mechanisms for digital Outlines a detailed implementation strategy
operations data application and governance and roadmap to translate planning into
and IT governance to ensure the efficient actionable projects and tasks ensuring the
3
execution of digital construction initiatives smooth execution of digital transformation ITBP (IT Business Partner) refers to a team within the IT department that works closely with business departments as strategic partners. They focus on exploring and implementing ways to leverage technology for business empowerment. ITBP collaborates deeply with business teams thoroughly
during the 14th Five-Year Plan period understanding their needs and transforming those needs into practical and feasible IT solutions. Their role is to act as a "technology bridge driving
business forward."
37 38LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Operate with Integrity and Uphold Shared R总es经po理nsi致bil辞ity
Achievements in Digital Intelligence Case Intelligent distillation-Huangyi distilling ecological park
Luzhou Laojiao has made significant strides in digital and intelligent technologies. Key initiatives include the construction of a Luzhou Laojiao has built the first smart distillation base in the industry. It inherits 700 years of intangible cultural heritage distillation
techniques and combines modern industrial bionic distillation processes with "intelligent and interconnected" technologies. The
smart distillery the application of big data analytics the implementation of digital financial shared services and the development Huangyi Distilling Ecological Park is currently the largest technological transformation project in the baijiu industry characterized by
of an intelligent packaging center. These efforts have enhanced production efficiency strengthened market competitiveness low consumption high efficiency and circular development. It has won several prestigious awards including the China Construction
and fostered innovation achieving a harmonious balance between traditional craftsmanship and digital-intelligence-driven Engineering Luban Prize (National Quality Project) CIIF Green Energy Saving Award and China Installation Engineering Quality
processes. Award (China Installation Star) issued by China Installation Association and the Tianfu Cup Gold Medal. The park has secured 41
invention patents and 29 utility model patents with one scientific achievement reaching internationally advanced standards. This project
has effectively driven the transformation and upgrading of the traditional distillation industry and promoted the efficient and green
Case Smart park platform construction development of the baijiu industry.Luzhou Laojiao Huangyi Distilling Ecological Park is also the largest green and low-carbon distilling ecological park in the industry with
Luzhou Laojiao has reconstructed over 3000 mu (approximately 200 hectares) of its park into digital space integrating 14 business the highest scale of solid liquor distillation the largest production capacity of distiller's yeast and the highest degree of automation
systems and completing over 60000 equipment governance projects using digital twin technology. The park prioritizes security by and intelligence. Luzhou Laojiao has successfully developed the industry-leading automatic baijiu distillation equipment realizing fully
building a dual prevention system to accurately detect intrusions. In terms of personnel management the Company has established automated operation across the entire liquor production process. This has increased labor efficiency by about 75% improved liquor yield
by 5%-10% increased the rate of high-quality products by 10% reduced water consumption per tonne of liquor by 50% and lowered
a unified face recognition database for precise authority management. The management of production vehicles is centralized with the comprehensive energy consumption per tonne of liquor by 35%. The digital and intelligent level of baijiu distillation production has
full-process online circulation to improve logistics efficiency. Fire management integrates more than 30000 sensors enabling remote reached internationally leading standards and it was awarded the "Demonstration Case of Intelligent Manufacturing in China's Light
video review and linkage. AI technology is deployed to cover key areas and automatically identify hidden risks. The digital operation Industry."
system creates a situational awareness view and an AR-based safety and environmental diagram to visually display security
information. The executive-level workbench ensures smooth communication and rapid response to commands.Case The first "Lighthouse Factory" standard smart packaging center of Luzhou Laojiao has
started trial production
In 2024 the Luzhou Laojiao Intelligent Packaging Center was completed and put into operation achieving the "five industry-leading
achievements"—fastest filling speed most rigorous quality inspection highest level of intelligence most advanced digitization and
the greatest number of independent technological innovations—leading the Chinese baijiu industry into a new era of digitization and
intelligence.The Luzhou Laojiao Intelligent Packaging Center Project covers a planned land area of 304 mu (approximately 202.6 acres) with a
total construction area of 181300 square meters. It includes an intelligent packaging material center an intelligent packaging center
an intelligent logistics center and a supply chain dispatching center. Currently the center has 5 high-speed automated filling production
lines 20000 storage spaces for packaging materials and 120000 storage spaces for finished products. It boasts an annual packaging
Smart park platform capacity of 100000 tonnes and a storage capacity of over 5 million bottles of finished baijiu. The level of digitization and intelligence at
the center is unparalleled in the industry.The project utilizes new-generation intelligent manufacturing technologies such as AI intelligence digital twinning edge computing
and the Industrial Internet of Things (IIoT) integrating six major information systems including production control procurement
management and logistics management. The five filling lines achieve an average production speed of 15000 bottles per hour doubling
Case Intelligent computing center construction production efficiency. Automation informatization digitization and intelligence levels have reached the highest industry standards
greatly enhancing Luzhou Laojiao's supply chain digitization.Luzhou Laojiao is committed to technological innovation. By implementing the intelligent packaging
It has established an Intelligent Computing Center which center featuring "intelligent equipment
significantly improves heat dissipation efficiency and standardized management first-class
reduces energy consumption through row-level precision quality and digital operation" together
air conditioning and cold aisle containment technologies. with the Huangyi Brewing Ecological Park
which was established in 2019 with a
The center adopts virtualization and containerization focus on "inheriting ancient methods pure
architecture to flexibly adapt to multi-scenario computing grain distillation innovation grounded in
needs meeting the requirements of the entire process integrity and driven by digital intelligence"
from model training to application reasoning. The Luzhou Laojiao has built an intensive and
Intelligent Computing Center provides Luzhou Laojiao digitally intelligent production system
with comprehensive computing power services—high offering a comprehensive solution to lead
density high performance and high stability—supporting China's baijiu industry into the digital
Intelligent computing center
diversified intelligent scenarios. intelligence era.Intelligent packaging center Intelligent packaging workshop
39 4002 Produce Greenly in Harmony with the Environment
Luzhou Laojiao attaches great importance to environmental protection and actively responds to the national
"dual carbon" strategy. The Company implements measures to reduce pollution and carbon emissions
collaborates in resource and energy management enhances adaptability to climate change and promotes the
development of a circular economy.Responding to Climate Change Green Operation
Management of Three Wastes and Noise Energy Management
Water Resources Management Packaging Material Management
Sustainable AgricultureLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Responding to Climate Change Strategy
Following the guidelines of the International Sustainability Standards Board (ISSB) and regulatory frameworks Luzhou Laojiao Luzhou Laojiao considers climate change a critical part of its corporate strategy. The Company has established the Ecological
has developed a climate change management strategy based on four key pillars: governance strategy risk management Environment Protection Management System and the Carbon Emissions Management System along with an annual action
and key indicators. We systematically promote the development of a greenhouse gas management system including carbon plan to achieve peak carbon emissions. It has also launched various climate-related initiatives including the development of
inventories and conducts in-depth research and innovation on climate change response strategies. Additionally through a carbon emission management systems the creation of carbon inventories the calculation of product carbon footprints and the
coordinated industry chain mechanism the Company works with partners to explore low-carbon development pathways for the implementation of green and low-carbon measures.industry. We are committed to actively addressing climate change challenges and contributing to the creation of a harmonious
coexistence between humanity and nature.Luzhou Laojiao's strategy to address climate change
Governance
Luzhou Laojiao has established a three-tier environmental management framework with the Ecological Environment Protection Carbon
Committee serving as the decision-making body. Climate change-related supervision management and implementation The Company has established a three-tier organizational structure to manage emission
responsibilities have been integrated into this framework with the Chairman holding the highest leadership responsibility for carbon emissions. It has developed management systems manuals and procedural management
climate-related matters. system guidelines to strengthen the top-level framework for controlling carbon emissions.Luzhou Laojiao climate change management organization
Ecological Environment Protection Committee
The Company has thoroughly assessed its foundation for green and low-carbon
Strategy Planning: Formulate the overall climate change strategy for the Company to align with long-term development goals development covering areas like management systems infrastructure green
Policy Formulation: Develop and approve the climate change management policy to ensure compliance with relevant laws Action plan
for carbon supply chains resource use energy structure adjustments and digital innovation. regulations and international standards
dioxide By exploring advanced technologies relevant to the sustainable development of
Supervision and Evaluation: Oversee the implementation of climate change management measures regularly assess their peaking the baijiu industry and analyzing the benefits and economic impact of emission
effectiveness and make adjustments as needed reduction the Company has outlined clear pathways for carbon peaking and
Risk Management: Identify and evaluate potential risks associated with climate change and formulate corresponding risk developed actionable plans.management strategies
Office of the Ecological Environment Protection Committee
(Ecological Environment Protection Center) GHG
inventory In accordance with the international standard ISO 14064 the Company completed a
Implementation and Coordination: Responsible for executing the climate change management policies and strategies verification verified inventory of its annual Scope 1 Scope 2 and Scope 3 GHG emissions.formulated by the Ecological Environment Protection Committee
Objective Setting: Develop specific climate change management goals and action plans in line with the Company's strategy
Cross-departmental Collaboration: Facilitate cooperation across departments to ensure comprehensive implementation of
climate change management measures within the Company
Data Management: Responsible for collecting sorting and analyzing climate change-related data and providing decision- Product Aligned with the international standard ISO 14067 the Company conducted full
making support to the governance layer carbon life cycle carbon footprint assessments for fourteen products. These assessments
Training and Awareness: Organize employee training to enhance awareness of climate change and improve the ability to footprint identified carbon emissions at each stage of the product lifecycle resulting in
respond to such challenges accounting fourteen Product Carbon Footprint Assessment Reports.Committee Member Units
(Departments (Units) of the Company) The Company conducted specialized training sessions on carbon emission
management including the 2024 Essential Training on Ecological and Environmental
Implementation Planning: Carry out specific action plans and ensure that various measures are implemented in daily Specialized Protection. Employees were organized to study materials such as the Ecological
operations carbon Civilization Story Series Short Videos and Understanding the Carbon Inclusion
Daily Monitoring: Monitor the implementation of climate change management measures to detect and resolve issues in a emission
management Mechanism and Practicing a Low-carbon Lifestyle. The Company also promoted timely manner
training the Ecological Environmental Protection Green and Low-carbon Work Report to
Data Collection: Gather and organize climate change-related data to ensure its accuracy and completeness deepen employees’ understanding of green and low-carbon principles thereby
Reporting and Feedback: Regularly report the progress of climate change management to the Ecological Environment advancing the Company’s green and high-quality development.Protection Center and provide feedback and suggestions
43 44LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Risk Management Climate change opportunity identification and response of Luzhou Laojiao
Luzhou Laojiao identifies climate change risks and has built a structured mechanism for climate risk management. We conduct
Opportunity Type Opportunity Description Countermeasure
thorough risk assessments using climate scenario analysis models aligning them with our strategic plans and business
operations to identify physical risks transition risks and climate-related opportunities. To strengthen our approach we have ● Technological collaboration: Partnering with research institutions to
improved monitoring systems to track both short-term shocks and long-term climate impacts. This provides a solid scientific Resource efficiency ● Developing a circular economy to maximize develop waste recycling and utilization technologies
foundation for informed decision-making and effective mitigation strategies. improvement resource efficiency and repurpose waste ● Industry chain expansion: Working with upstream and downstream
enterprises to build a circular economy supply chain
Climate risk identification and mitigation of Luzhou Laojiao ● Aligning with the consumer trend of "drinking ● R&D innovation: Increasing investment in the development of low-
less but drinking better" by developing low- alcohol and health-focused liquor products creating new offerings R&D and innovation for alcohol low-sugar and functional ingredient- that cater to consumer demand
Risk Type Risk Description Mitigation Strategies low-carbon products enriched alcoholic beverages to enhance ● Technology upgrades: Utilizing bioengineering and enzyme
market competitiveness
● Damaging distillation facilities engineering to improve product quality and enhance health benefits
warehouses and supply chain
infrastructure may lead to production ● Facility reinforcement: Enhancing the disaster resilience of key infrastructure
disruptions and revenue loss such as distilleries and warehouses by implementing flood barriers wind-
resistant structures and other protective measures
Acute risk ● Impacting raw material supply such
as flooding of industry parks or ● Diversification of supply chain: Establishing multiple raw material supply (Extreme reduced grain yields due to extreme channels to mitigate risksweather events heat ●
such as floods Emergency preparedness: Developing comprehensive contingency plans
Indicators and Targets
● Disruptions in logistics and including post-disaster recovery and business continuity strategieshurricanes and
heatwaves) transportation may delay product ●
Insurance coverage: Securing sufficient property and business interruption
delivery to the market insurance to mitigate financial losses In alignment with the Action Plan for Carbon Dioxide Peaking Before 2030 issued by the Chinese government and the
● Power outages caused by extreme ● Employee protection: Implementing cooling measures and regulate working
heat may lead to operational hours for employees exposed to high temperatures while providing company's Action Plan for Carbon Dioxide Peaking Luzhou Laojiao will continue conducting carbon footprint assessments and
shutdowns and impact employee necessary protective equipment set phased targets for emissions reduction.health equipment performance and
workplace safety
Physical risks ● Varietal improvement: Developing climate-adaptive distillation raw material
● Rising temperatures may alter varieties including high-temperature drought-resistant and salt-tolerant
the growth cycle and quality of sorghum and wheat varieties to improve resilience and ensure stable
key distillation raw materials (e.g. production under changing climatic conditions.sorghum wheat) and rising sea Greenhouse gas emission (scope 1&2) data of Luzhou Laojiao in 2024
●
levels can lead to soil salinization Technical optimization: Establishing climate-smart predictive models to
impacting the quality of raw materials adjust sowing times and planting areas in real-time enhancing raw material
Chronic for distillation and subsequently quality through precise nitrogen fertilizer application and pest and disease
risk (Rise in Category Unit Data of 2024affecting the flavor profile of products management.temperature rise ● Rising temperatures will increase Process optimization: Optimizing equipment and technology to adapt to the ●
in sea level etc.) cooling requirements in the distillation impacts of climate change while ensuring the process requirements are met Direct GHG emissions (Scope 1) tCO2e 126172
process leading to higher energy and maintaining stable production.costs ● Energy-efficient cooling: Optimizing operational methods and fine-tuning Indirect GHG emissions (Scope 2) tCO2e 24829
● Changes in storage conditions management to reduce energy consumption in the cooling water circulation
may increase the risk of product system. Total GHG emissions (Scope 1 & 2) tCO2e 151001
deterioration affecting productivity ● Intelligent warehousing: Developing intelligent storage facilities with precise
and revenue temperature and humidity control to ensure optimal storage conditions for raw
materials. GHG emission intensity (Scope 1 & 2) tCO2e/million gross industrial output value 4.15
● Raising the cost of emissions ● Clean production: Implementing energy-efficient distillation technologies
reduction for enterprises due to waste heat recovery systems and expand the use of renewable energy to
stricter government carbon emission lower energy consumption and carbon emissions
Policy and legal policies ● Carbon footprint management: Establishing a product carbon footprint
risk ● Increasing regulatory requirements accounting system and explore pathways to carbon neutrality
for high-energy-consuming and high- ● Policy monitoring: Tracking regulatory developments closely formulate Carbon emission data of Scope 3 of Luzhou Laojiao in 2024
emission-intensive processes such carbon peaking action plans and proactively implement emissions reduction
as distillation in baijiu production strategies
● Making it difficult to meet emissions ● Technology R&D: Increasing investment in cleaner distillation technologies
reduction targets due to the lack of and collaborate with research institutions to drive innovation
mature clean production technologies
Technological ● Digital factory development: Advancing intelligent manufacturing by upgrading 2.00%
Transition risks risk ● Hindering precise process control production equipment and building digital distilleries
efficiency optimization and
emissions reduction due to low levels ● Technology tracking: Staying informed about emerging technologies and
of digitization assess their impact on the industry Upstream transportation and distribution of goods34.91%
● Prioritizing environmental protection
● Downstream transportation and distribution of goods
Market risk and sustainability by consumers Green marketing: Promoting eco-friendly production practices and 56.39%
favoring greener products strengthening the Company’s green brand image 4.33% Employee commuting
● Strengthening communication: Increasing engagement with stakeholders and
● Failing to meet stakeholder enhance transparency in green initiatives
Reputation risk expectations regarding climate action 2.37% Business travelcould negatively impact corporate ● Information disclosure: Proactively communicating the Company’s
reputation sustainability strategies energy conservation efforts and achievements in Product end-of-life phase
low-carbon development
45 46LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Carbon Reduction Initiative
By accounting carbon emissions at both organizational and product levels Luzhou Laojiao establishes carbon reduction
pathways from a life cycle perspective systematically reducing emissions across all processes to drive green low-carbon high-
quality development.Production and Manufacturing
The Company has implemented energy-saving and carbon reduction measures across key production processes including
spreading bran steaming and distillation. By adopting advanced equipment and upgrading production techniques it has
significantly reduced carbon emissions during manufacturing.Product Carbon Footprint Carbon reduction practices of Luzhou Laojiao
The Company has implemented various carbon reduction initiatives
● Implemented waste heat recovery during the bran steaming process saving 1.24 million cubic
including product carbon footprint (PCF) accounting and broader meters of natural gas and reducing over 2700 tonnes of carbon dioxide emissions annually;
decarbonization efforts. Using the Life Cycle Assessment (LCA) As of the reporting period
methodology and ISO 14067:2018 Greenhouse Gases — Carbon
Footprint of Products — Requirements and Guidelines for Quantification PCF assessments have been
we systematically measure emissions throughout the entire product completed for ● Upgraded the biogas desulfurization process at the distilling wastewater treatment facility in
l i fecycle—from raw mater ial extract ion and manufactur ing to
14 Luohan Distilling Ecological Park increasing biogas supply by 144% compared to previous transportation usage and disposal. Concurrently the Company products years;
collaborates with upstream and downstream supply chain partners to
●
optimize procurement improve energy efficiency and adopt renewable Recovered and utilized biogas achieving an annual recovery of 3599200 cubic meters.energy solutions reducing carbon intensity across the value chain. As
of the reporting period PCF assessments have been completed for 14
products.● Optimized the Huangyi rice husk spreading and drying process saving 46464 kWh of electricity
Carbon footprint of 52°National Cellar 1573 (2010 Edition) annually reducing energy consumption by 50% and cutting 26 tonnes of carbon dioxide emissions;
● Enhanced energy efficiency in sorghum cleaning and impurity removal equipment at Huangyi
Phase I project reducing power consumption by 4.06 kWh/tonne saving 35100 kWh of
electricity annually and lowering carbon dioxide emissions by 20 tonnes;
● Operated a cogeneration system generating 23.84 million kWh of electricity in 2024 saving 4200
tonnes of standard coal.To enhance energy efficiency targeted measures were implemented across production logistics and retail operations. These
included waste heat recovery process optimization adoption of renewable energy and biogas recycling. In 2024 the Company
purchased 5944 MWh of green electricity and recovered 3599200 cubic meters of biogas achieving a total carbon dioxide
emissions reduction of 58808 tonnes.Raw material production Product Product Product waste
and acquisition stage manufacturing stage distribution stage treatment stage
In 2024
71.23% 14.10% 2.05% 12.62% the Company purchased recovered achieving a total carbon
5944 dioxide emissions reduction of MWh of green 3599200
tonnes
electricity cubic meters of biogas 58808
Note: Functional unit is 1 bottle (500 mL); System boundary follows "cradle-to-grave" approach with percentages representing
each stage's contribution to total carbon footprint.
47 48LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Logistics and Transportation Green Operation
The Company is committed to low-carbon transportation systematically optimizing logistics routes modernizing As a global leader in the baijiu industry Luzhou Laojiao has consistently adhered to the principles of " legal compliance cleaner
transportation fleets and ensuring efficient and eco-friendly freight operations. production energy efficiency and continuous improvement." The Company has built and refined its environmental management
system strengthened resource and energy management and actively promoted waste reduction recycling and safe disposal.By integrating business operations with environmental protection Luzhou Laojiao is driving the low-carbon transformation of the
food and beverage industry.Case Diesel forklift replacement project in Luohan Distilling Ecological Park
To eliminate outdated non-road mobile machinery the Company initiated a diesel forklift replacement project in Luohan Distilling Environmental Management Philosophy
Ecological Park improving the environmental performance of its fleet.In 2024 seven diesel forklifts were upgraded saving 3.64 tonnes of standard coal annually and significantly reducing total Luzhou Laojiao regards environmental management as a strategic priority continuously improving its governance structure
pollutant emissions. and risk prevention mechanisms in line with its environmental philosophy and policies. Through initiatives focused on clean
production energy conservation emission reduction and pollution control the Company has established a strong foundation for
sustainable development. In 2024 the Company did not experience any violations of environmental laws or regulations.The Concept Principle and Policy of environmental protection management at Luzhou Laojiao
Distribution Center and Store Operations
Concept Principle Policy
The Company has integrated green technologies into its distribution centers and retail stores launching innovative
environmental projects to enhance operational efficiency and reduce carbon footprints. Happy life originates from Compliance with laws Protection first prevention
green production and regulations cleaner foremost comprehensive
production energy treatment full
saving and consumption participation and liability
reduction and continuous for damage
Case Autonomous vehicle delivery service project improvement
In September 2024 the Company launched a green autonomous vehicle leasing and logistics operation project. This initiative
optimized product distribution within the liquor industry park establishing a fully autonomous logistics system from packaging
material supply to the filling production line. The project features a fully digitized logistics management system which automates During the reporting period
task reception dispatches autonomous vehicles for transport and coordinates packaging material unloading at the filling line.This significantly enhances logistics efficiency while dramatically reducing carbon emissions at distribution centers.the Company invested a Including RMB and RMB
total of RMB
34.20 million in energy-saving 23.81 million in other 58.01 million in and consumption-reducing initiatives environmental protection
environmental management measures
49 50LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Environmental Management System
● Established a dual-prevention system integrating risk classification control with hazard identification
and mitigation;
The Company strictly complies with the Environmental Protection Law of the People's Republic of China the Regulations
●
of Sichuan Province on Environmental Protection and other relevant laws and regulations. It has established 19 internal Implemented a three-tier hazard detection approach combining comprehensive inspections Environmental
environmental management policies including the Environmental Management Manual the Collection of Environmental specialized inspections and routine inspections to ensure continuous risk identification and risk monitoring
Protection Management Systems and the Environmental Protection Responsibility System and Assessment Management mechanism management efficiency improvement;
System to fully implement environmental management requirements. ● Conducted real-time pollutant discharge monitoring through automated third-party and internal
manual monitoring systems ensuring a continuous and stable 100% compliance rate for all
Environmental governance is led by the Ecological emissions.Environment Protection Committee the highest decision-
making body for environmental responsibility chaired by In 2024
the Chairman of the Board. Under this committee the ●
the Company has successfully Developed the Compliance Identification and Evaluation List for Ecological Environmental Protection Office of the Ecological Environment Protection Committee to guide in conducting compliance assessments. Regular on-site inspections and evaluation reports
(Ecological Environmental Protection Center) is the obtained ISO 14001 Environmental Environmental ensure adherence to environmental regulations;
dedicated management unit coordinating environmental Management System certification. risk assessment mechanism ● Based on assessment results develop improvement measures to enhance localized environmental efforts across the Company. Every functional department management optimize the Company's environmental management system and ensure ongoing
and production unit has dedicated environmental protection compliance with national and local laws.staff to ensure full implementation of responsibilities.The Company has also established a target-oriented
responsibility system for environmental protection. The ● Conducted environmental emergency risk assessments to determine risk levels;
Office of the Ecological Environment Protection Committee Environmental ● Prepared and filed environmental risk assessment reports and emergency resource investigation
sets annual environmental objectives signs responsibility emergency plan reports with regulatory authorities;
agreements with departments and units and oversees and drill
●
their implementation through regular supervision and Carried out regular environmental emergency drills to enhance preparedness and response
assessment. capabilities.ISO 14001 certificate
Case "Promoting Prevention through Drills Strengthening Protection through Training"
Environmental Risk Prevention and Control comprehensive environmental emergency drill
On November 27 2024 Luzhou Laojiao organized a comprehensive emergency drill for environmental incidents (response to
Luzhou Laojiao strictly complies with national and local environmental protection regulations and has established comprehensive severe pollution weather) at the Information Center of the Huangji Distilling Ecological Park. The drill followed a yellow warning
environmental risk prevention systems including the Management System for Laws and Regulations on Ecological for severe pollution weather by Luzhou Municipal Government the Company has activated its emergency emission reduction
Environmental Protection and Evaluation of Environmental Factors the Information Reporting and Emergency Management implementation plan.System for Environmental Emergencies and the Management System for Investigation and Control of Potential Environmental
Hazards. The Company has also developed an environmental monitoring and evaluation system covering its entire industry The drill provided a thorough evaluation of the Company’s emergency response capabilities for severe pollution weather from
chain continuously improving emergency response plans and enhancing its capacity to manage environmental risks effectively. multiple angles including information reporting organizational command communication and coordination on-site control and
emergency management. The drill achieved its objectives of testing the emergency plan enhancing preparedness training
teams optimizing operational mechanisms and raising public awareness. It significantly strengthened the Company’s ability to
respond to and manage emergencies through collaborative defense control and treatment thus laying a strong foundation for
reinforcing ecological environmental safeguards and supporting the Company’s green and high-quality development.Comprehensive environmental emergency drill
51 52LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Environmental Protection Capacity Building
Case Special environmental protection training for stakeholders to strengthen environmental
Luzhou Laojiao regards environmental protection culture as essential for sustainable development. The Company promotes protection measures
environmental awareness through a multi-dimensional approach regularly organizing specialized training sessions and
awareness campaigns to foster a strong sense of environmental responsibility. We also exchange with upstream and To enhance environmental protection management among stakeholders the Company tailored a systematic training program
downstream partners communities industry associations and other stakeholders to promote green development and raise covering five key areas: general environmental protection requirements for stakeholders environmental management of bulk
environmental standards across the industry. brewing wastewater transportation environmental management of base liquor transportation environmental management of
base liquor storage and environmental management of engineering and construction projects. The training helped participants
enhance their on-site environmental management capabilities while ensuring compliance with relevant environmental laws and
regulations.In 2024 This initiative further reinforced the importance of proper environmental management among stakeholders significantly
improving the Company’s overall environmental risk prevention and control capabilities.the Company conducted Including
14 environmental training sessions 2 company-wide training programs
6 specialized sessions 14450 employees participated
Training site
For several consecutive years we have actively organized initiatives
Case Environmental risk training for baijiu enterprises and strengthening emergency response teams to celebrate World Environment Day actively promoting the concept
of green development through diverse outreach methods including
In October 2024 to enhance the Company's ecological and environmental risk prevention efforts Luzhou Laojiao provided poster and banner displays as well as continuous looping of
emergency response capacity-building training for middle management and environmental protection personnel from various promotional videos on digital screens. The Company also leverages
departments and units. The training aimed to clarify the key aspects of environmental risk prevention control and emergency social media platforms such as WeChat official accounts and
management specific to the baijiu industry. short video platforms to create and share environmental protection
content. These efforts expand public engagement raise awareness
The training covered three key areas: risk management theory hazard identification and rectification and environmental and foster a culture where all employees actively participate in
emergency response. It provided a comprehensive review of environmental risk management and emergency handling within environmental protection.the baijiu industry supplemented by multiple case studies from the liquor sector. Additionally experts analyzed the Company’s
environmental risk emergency response plan offering targeted recommendations and improvement measures to further
optimize the Company's environmental risk management and emergency response framework.Training site
World Environment Day banners and posters
53 54LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
“Promoting Ecological and Environmental Culture Building a Clean and Beautiful Luzhou Laojiao Together”
Environmental Awareness Campaign
Case "Driving Innovation in Energy Conservation Pioneering the Green Economy" — Energy
Conservation Knowledge Competition
"Clean Your Plate Low-Carbon Travel"
Employees are engaged to earn low-carbon action points through the "Luzhou Green Sprout Points" mini-program. As of the In November 2024 the company organized the "Driving Innovation in Energy Conservation Pioneering the Green Economy"
end of the reporting period employees have collectively accumulated more than 140000 Green Sprout Points. Energy Knowledge Competition. Nearly 40 energy management participants from various departments took part in the event.Amidst fierce competition 6 teams and 24 individuals were honored with awards.Golden idea of "I Contribute to Green Development"
Employees are encouraged to propose suggestions and improvement measures for energy conservation emission reduction
ecological brewing pollution prevention and environmental protection management."Combat Pollution Honor Nature"
Employees are encouraged to explore and appreciate the beauty of the ecological environment by creating themed works such
as calligraphy paintings photography and posters to document the progress of ecological civilization.Energy Conservation Knowledge Competition
Management of Three Wastes and Noise
Luzhou Laojiao strictly adheres to national and local waste management standards establishing a full-process pollution
prevention and control system based on "source reduction process control and end treatment." This system enhances
environmental governance and ensures compliance with regulations for wastewater exhaust gas solid waste and noise
emissions.Case Environment Day initiatives to foster a culture of environmental responsibility In 2024 through systematic measures such as cleaner production resource optimization and enhanced end-of-pipe treatment
the Company achieved significant progress in waste reduction.In July 2024 the Company launched a company-wide ecological and environmental protection knowledge competition on its
knowledge management platform. Employees participated in learning sessions covering topics such as pollution prevention Luzhou Laojiao per unit of product waste reduction performance in 2024
green and low-carbon development and ecological civilization. The initiative covered all employees with more than 2700
participants over 600 of whom achieved excellent results greatly enhancing engagement and enthusiasm for environmental
protection.Additionally the Company organized an environmental In 2024
emergency dr i l l compet i t ion. A total of 22 teams
participated producing full-process drill videos based on particulate matter emissions smoke and dust emissions nitrogen oxide emissions
assigned themes. After four months of rigorous preparation decreased by decreased by decreased by
the teams competed through a "scenario preview + live
commentary" micro-lecture format. In a highly competitive 45.72% year-on-year 39.25% year-on-yearcontest the Supply Chain Management Center and the 29.60% year-on-year
Packaging Production Department secured the first-place
award.sulfur dioxide emissions suspended solids emissions five-day BOD emissions
decreased by decreased by decreased by
12.14% year-on-year 15.88% year-on-year 24.90% year-on-year
Awarding ceremony of the competition
55 56LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Wastewater Waste Gas
The Company has formulated the Water Pollution Prevention and Control Management System reinforcing its commitment Luzhou Laojiao strictly follows national and provincial air pollution control standards including the Emission Standard for Air
to environmental protection and pollution prevention. The Ecological Environment Protection Center oversees water pollution Pollutants for Boilers the Emission Standard for Air Pollutants for Thermal Power Plants and the Integrated Emission Standard
control efforts. Wastewater treatment stations have been set up at both the Huangyi and Luohan Distilling Ecological Parks to of Air Pollutants. The Company has also developed an internal Air Pollution Prevention and Control Management System
ensure compliance with discharge standards. overseen by the Ecological Environment Protection Center which is responsible for monitoring and implementing air pollution
control measures.The Company's wastewater treatment plant employs "pre-treatment + anaerobic treatment + aerobic treatment + advanced
treatment" processes with effluent meeting the GB 27631-2011: Discharge Standard of Water Pollutants for Fermented Alcohol Luzhou Laojiao has established a waste gas prevention system that ensures stable efficient operation of treatment facilities
and Distilled Spirits Industry. The facility is equipped with complementary biogas utilization odor control sludge treatment and keeping emissions consistently below national standards. The Company uses low-nitrogen combustion technology and a flue
central control systems gas recirculation system to reduce nitrogen oxide emissions. It has also adopted a closed spreading process to minimize fugitive
emissions and eliminate dispersed steam discharge.In 2024 the Company partnered with downstream enterprises to reuse distilling wastewater as a supplementary carbon source
for municipal wastewater treatment promoting wastewater "reutilization."
Waste gas discharge performance of Luzhou Laojiao in 2024
Case Exploring new approaches to wastewater treatment and advancing green development
Indicator Unit Data of 2024
In compliance with the Discharge Standard of Water Total waste gas emissions Cubic meter 799468961.90
Pollutants for Fermentation Alcohol and Distilled
Spirits Industry (GB 27631-2011) and under Particulate matter emissions Tonne 0.12
regulatory guidance Luzhou Laojiao collaborated
with Luzhou Xinglu Water (Group) Co. Ltd. to Sulfur oxides emissions Tonne 0.46
explore innovative wastewater discharge solutions Nitrogen oxides emissions Tonne 22.82
for distilling and municipal wastewater.Smoke and dust emissions Tonne 0.46
Through negotiated discharge agreements both
parties achieve significant environmental and
economic benefits through resource sharing
and complementary advantages. This simplifies
the Company's wastewater treatment process
while reducing operational pressure and costs.Downstream municipal treatment plants receive
high-concentration organic wastewater as premium
carbon source supplementation minimizing external Cooperation signing ceremony
carbon source purchases. This innovative approach
realizes resource utilization of distilling wastewater
creating a win-win scenario where downstream
plants essentially receive "strong-aroma baijiu".Wastewater discharge performance of Luzhou Laojiao in 2024
Indicator Unit Data of 2024
Total wastewater discharge Tonne 1300200.68
Ammonia nitrogen Tonne 0.94
Phosphorus Tonne 0.58
COD Tonne 29.90
57 58LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Waste Management Energy Management
Luzhou Laojiao strictly complies with national and provincial solid waste management regulations including the Management
System for Transfer Manifests of Hazardous Waste the Standard for Pollution Control on Hazardous Waste Storage the
Regulations of Sichuan Province on Prevention and Control of Environmental Pollution by Solid Waste and the Notice on Luzhou Laojiao has built a comprehensive energy management framework with a systematic energy assessment mechanism.Enabling Electronic Management Ledger for General Industrial Solid Waste. In alignment with these regulations the Company The Measures for Energy Management Assessment set clear energy efficiency targets and consumption evaluation indicators.has developed a comprehensive solid waste management framework which includes the Standardized Management System A quarterly review process tracks and evaluates energy use while energy consumption targets are integrated into the distillery’s
for General Solid Waste the Standardized Management System for Hazardous Waste and the Operation Management System salary and performance system directly linking achievements to employee performance. This approach motivates active
for Pollution Prevention and Control Facilities. This ensures a standardized approach to collecting storing transferring and participation in energy-saving initiatives and supports sustainable development.disposing of solid and hazardous waste.In 2024 the Luzhou municipal government set a target for
Luzhou Laojiao has implemented a waste classification system to ensure efficient collection proper storage and professional energy consumption intensity requiring a reduction of no
disposal. The Company uses a solid waste management information system to digitally track waste generation transfer and less than 0.43% in the comprehensive energy consumption In 2024
disposal. Hazardous waste is managed under a strict transfer manifest system and handled by certified third-party providers to of raw liquor per unit of product. The Company exceeded
ensure traceability and compliance. For general industrial waste Luzhou Laojiao promotes recycling initiatives such as reusing this target with a 6.44% reduction. As of 2024 the company reduction in comprehensive energy
spent grain and recycling waste pit mud. In 2024 the Company's compliant disposal volume of hazardous waste reached 28.12 has consecutively passed the GB/T 23331-2020 Energy consumption of raw liquor per unit of product
tonnes and comprehensive utilization volume of general solid waste reached 395040 tonnes. The resource utilization rate for Management System certification for 14 years.solid waste reached 97.9%. 6.44%
In 2024
Case Implementing WSR energy-saving technology in bran steaming to advance green distillation
the Company's compliant disposal contributing to a total solid the resource utilization rate
volume of hazardous waste reached waste utilization of for solid waste reached
To advance green production the Company conducted an
28.12 tonnes 395040 tonnes 97.9% energy-efficient transformation of the WSR bran steaming system in Huangyi Park. Through lean innovation and In 2024 this initiative resulted in
extensive testing the project integrated waste heat steam
purification pressurization recovery and smokeless emission 14561 tonnes of steam savings and
technology. By automating the entire energy recovery
process the system recaptures and reuses waste steam
while ensuring cleaner emissions. In 2024 this initiative 1485 tonnes of standard coal savingsWaste discharge performance of Luzhou Laojiao in 2024 resulted in 14561 tonnes of steam savings and 1485 tonnes
of standard coal savings.Indicator Unit Data of 2024
Total waste discharged Tonne 403645.46
Energy performance of Luzhou Laojiao in 2024
Waste discharge density Tonne/million gross industrial output value 11.08
Indicator Unit Data of 2024
Non-renewable energy consumption Tonne of standard coal 72336.20
Control of Noise and Other Pollutants Renewable energy consumption Tonne of standard coal 730.52
Comprehensive energy consumption4 Tonne of standard coal 73066.72
The Company has made the prevention and control of noise odors and other pollutants a key part of its environmental
management. It strictly follows national environmental standards and has established internal policies including the Comprehensive energy consumption intensity Tonne of standard coal/million gross 2.01
Management System for Prevention and Control of Environmental Noise Pollution to guide pollution control efforts. In terms industrial output value
of noise control the Company fully complies with the Law on Noise Pollution Prevention and Control of the People's Republic
of China. Measures include using low-noise equipment installing shock absorbers and enhancing equipment maintenance
and management. As a result factory boundary noise levels are consistently below national standards. To control odors the
Company uses sealed collection systems and biofilters to minimize odor generation at the source. As of the end of the reporting 4 T otal energy consumption includes gasoline diesel natural gas purchased electricity and the energy conversion factor is based on the values specified in
period the Company’s noise and odor emissions have remained 100% compliant with national standards for consecutive years. GB/T 2589-2020 General Rules for Calculation of the Comprehensive Energy Consumption.
59 60LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Water Resources Management
Luzhou Laojiao strictly adheres to the Water Law of the People’s Republic of China and has formulated an internal Energy Water saving practices in different production stages of Luzhou Laojiao
Management System that clearly defines requirements for water supply and usage. The Company has also established a
structured water management framework with the General Manager serving as the highest authority. A dedicated water
management department staffed by professionals ensures a top-down approach to managing responsibilities.Water ● Optimization and graded utilization of water treatment systems have increased water
The Company prioritizes water conservation and has made production recovery rate by approximately 2% saving 27800 tonnes annually.Team Leader (General Manager) efficient water use a key part of its sustainable development
strategy. By adopting advanced water-saving technologies
implementing intelligent monitoring systems and optimizing
water use in production it has built a comprehensive water
recycling system that spans the entire industry chain
● Reused the water discharge from the water treatment system for road cleaning
Deputy Team Leader (Deputy General During the reporting period the Company's water-saving landscaping and equipment washing saving 33300 tonnes of water per year;
Manager) initiatives resulted in 61100 tonnes of water savings in the Circulating ● The Luohan 7 Center implemented the reuse of distilling cooling water for the boiler
water production process 2367100 tonnes through the water system achieving reclaimed water usage saving 31000 tonnes of water per year;
recycling of brewing cooling water 1346 tonnes in brewing
● The distilling cooling water process used a closed-loop water system saving 2367100
production and 97000 tonnes in product packaging. tonnes of water per year.Members
(Leaders of functional departments
production units and water management
specialists)
● Optimized the bottom pot water usage in the bran steaming process at Huangyi resulting
Production in an annual water saving of at least 1346 tonnes.Water resources management structure
of Luzhou Laojiao
●
In 2024 The bottle washing machines in the Huangjie South District first cleans the inside of the
the Company's water-saving Packaging bottles then reuses the water for cleaning the exterior. After cleaning the wastewater is
initiatives resulted in 2367100 tonnes through the further reused in the spray tower. In 2024 a total of 97000 tonnes of water was reused.
61100 recycling of brewing cooling water tonnes of water savings
in the water production process
Water resources use performance of Luzhou Laojiao in 2024
1346 tonnes in brewing 97000 tonnes in product Indicator Unit Data of 2024
production packaging
Reuse of reclaimed water Tonne 376775
Circulating water consumption Tonne 2705482
Total freshwater intake Tonne 3151865
Total water consumption Tonne 3151865
Water consumption intensity Tonne/million gross industrial output value 86.54
61 62LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Packaging Material Management
Luzhou Laojiao is committed to eco-friendly packaging and integrates green principles into its design process. The Design Case Green packaging training for suppliers to promote the development of the company's green
Standard for Non-Woven Handbags sets clear requirements for material selection quality control and inspection ensuring supply chain
sustainability without compromising product quality. At the company level our Green Packaging Strategy aims to reduce
resource consumption minimize environmental pollution and enhance recyclability—balancing both economic and ecological In May 2024 to enhance the green and low-carbon awareness of packaging material suppliers the Company organized a
benefits. supplier training session on green packaging. This training based on the national "dual carbon" strategy introduced certification
requirements and incentive policies for green and low-carbon packaging materials. It also provided a detailed explanation of
Green Packaging Strategy green indicators and standards for packaging materials such as bottles crates boxes and caps supplied to the Company.Additionally the training shared best practices from the food and beverage industry showcasing leading examples of green
Optimizing packaging Enhancing Greening packaging Promoting green
design recyclability transformation packaging product implementation and green procurement. Suppliers were encouraged to take proactive measures to reduce pollution and
carbon emissions.Reducing reliance Minimizing Circular utilization of Raising environmental
on natural resources packaging waste and packaging materials awareness through
through efficient promoting the use of and building a green sustainable packaging
packaging design and biodegradable and packaging industry and encourage
material selection. recyclable materials. chain. consumers to adopt
green lifestyles
Sustainability principles guide every stage of our packaging process from raw material selection and design to recycling. It
actively promotes lightweight packaging material reduction and eco-friendly design to reduce environmental impact.Management measures for packaging materials of Luzhou Laojiao
● Prioritizing the use of degradable and recyclable environmentally friendly materials reducing the use of PE film for Green packaging training site
gift boxes and minimizing the environmental impact of packaging saving 1156 tonnes of PE plastic bags annually;
● Utilizing anti-counterfeit labels made of polymer materials to extend their service life with RFID5 (Radio Frequency
Identification) chips embedded in the core to facilitate intelligent inventory management and distribution tracking
effectively preventing the loss of anti-counterfeit packaging materials and supporting recycling efforts. Additionally
recycling sealing rubber cores reducing solid waste by 3.5 tonnes per year; Packaging materials consumption of Luzhou Laojiao in 2024
● Introducing standardized recyclable carriers for packaging materials such as bottles crates boxes caps handbags
anti-counterfeit labels and sealing glue standardizing the dimensions of incoming materials. These carriers enable Indicator Unit Data of 2024
the reuse of outer packaging improving transportation efficiency and reducing solid waste generation.Glass consumption Tonne 13769.41
Metal consumption Tonne 4657.25
The Company is committed to building a green industry chain requiring all suppliers and partners to follow its packaging
material management standards invest in green packaging R&D and support a full-process environmental protection system Ceramic consumption Tonne 841.95
covering procurement production and logistics. To ensure compliance the Company has established 11 evaluation indicators
for safety and environmental management and works with third-party audit institutions to assess suppliers' production processes Wood and paper consumption Tonne 8279.45
raw material use and environmental risks. The findings are compiled into the Report on Proposals for Environmental Protection Plastic consumption Tonne 3219.76
Production of Packaging Materials.Other packaging materials Tonne 2873.06
As of the end of the reporting period the Company obtained the ISO/TS 22002-4 Food Packaging Manufacturing and the
supplier of the 2010 version 500ml handbag for National Cellar 1573 passed the product carbon footprint certification. Total packaging materials consumption Tonne 33640.88
5 Radio Frequency Identification.
63 64LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Produce Greenly in Harmony with the Environment
Sustainable Agriculture Biodiversity Conservation
Luzhou Laojiao recognizes the critical role of sustainable agriculture in ensuring food security and ecological protection. The As China's baijiu industry leader Luzhou Laojiao deeply implements its "co-distilling with nature coexisting in harmony"
Company has introduced initiatives such as waste recycling reducing chemical inputs and promoting the use of organic philosophy integrating biodiversity conservation into its sustainable development strategy.fertilizers.The Company has established organic sorghum cultivation bases and implemented comprehensive organic farming protocols.We have developed standardized documentation including the Organic Management Manual and the Organic Production
Technical Procedures effectively combining traditional distillery crop cultivation with ecological preservation. This initiative
has created an exemplary sustainable agricultural model for the industry that actively protects regional biodiversity. Through
Case Create a vinasse recycling project to drive industrial transformation scientific planning and precision management we have optimized operational schedules upgraded production methods and
implemented strategic fallow periods to continuously improve soil fertility and enhance the stability of farmland ecosystems.The Company has developed a demonstration project for the thermochemical energy conversion and resource utilization of
distilling waste with an annual vinasse treatment capacity of 100000 tonnes. This project employs advanced processes such as Biodiversity conservation measures of Luzhou Laojiao Organic Sorghum Base
impurity removal drying screening and pyrolysis to enable large-scale treatment and high-efficiency utilization of vinasse. Each
year the project yields 15000 tonnes of feed protein and 4000 tonnes of biochar from the treated vinasse. The feed protein
enhances the nutritional value of biological feed while the biochar improves soil quality for sorghum cultivation. Additionally the
pyrolysis gas generated during treatment is combusted to produce heat for preheating boiler water replacing approximately 3 ● Promoting organic fertilizers and bio-agents as eco-friendly agricultural inputs effectively reduces ecological
million Nm3 of natural gas annually and reducing carbon dioxide emissions by over 10000 tonnes. pollution from traditional farming while protecting soil biodiversity and maintaining subterranean ecosystem balance.The base's soil shows 2-3 times higher earthworm density and more active microbial communities than conventional
By implementing this project the Company has eliminated the environmental risks associated with vinasse disposal and farmland;
facilitated the sustainable transformation and upgrading of the baijiu industry.● The base employs agricultural/physical controls manual weeding and biological methods utilizing natural predators
(parasitic wasps ladybugs trichogramma) to manage pests/weeds increasing populations of both phytophagous
insects and their natural enemies;
● Crop rotation intercropping and relay intercropping diversify vegetation providing habitats and food sources for
various species;
● Winter fallowing and minimum tillage effectively protect topsoil. Organic cultivation prevents land degradation and
reduces groundwater/surface water pollution significantly restoring benthic organisms (e.g. snails) in adjacent
water bodies;
● The base mandates protection of natural vegetation adjacent to farmland establishing ecological buffer zones that
enhance biodiversity within the cultivation area. This conservation measure promotes population growth of beneficial
birds and other wildlife thereby maintaining agro-ecosystem equilibrium. Our monitoring data demonstrates
significant ecological improvements with observed avian species increasing from 15 in 2015 to 28 in 2023 including
nationally protected Class II species such as the gray crane.The Company prioritizes ecological awareness development for both employees and contracted growers implementing regular
biodiversity conservation training programs. These include specialized seminars on biological pest control delivered by industry
experts. As of the reporting period we have conducted over 150 biodiversity-focused training sessions reaching over 10000
annual training attendances.Demonstration project of thermochemical energy and resource utilization of distilling waste
In 2024
we have conducted over reaching over
150 biodiversity-related training sessions 10000 annual training attendances
65 6603 Craft with Excellence and Grow Together with Customers
Luzhou Laojiao considers product safety as the lifeline of its corporate development. The Company has established
a full-industry-chain quality control system and a customer-focused service system to enhance brand reputation.It also actively participates in industry collaborations leading the development of baijiu quality standards sharing
technological innovations and promoting high-quality industry growth.Product Quality and Safety Food Safety Assurance
Excellent Customer Service Responsible Marketing
Intellectual Property ProtectionLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
Product Quality and Safety Quality Management Mechanism
The Company strictly adheres to national quality management laws and standards and has developed a series of internal The Company has established a comprehensive quality management system that rigorously monitors raw materials packaging
systems and strategies. It has also established a comprehensive management framework that covers raw material cultivation production and logistics. This end-to-end approach ensures consistent quality control and strengthens overall product quality
brewing warehousing logistics and terminal sales ensuring stable and reliable product quality. management.Quality management mechanism of Luzhou Laojiao
Quality Strategy
Luzhou Laojiao pioneered the "organic" concept in the baijiu industry and established organic
Guided by the philosophy of "making the quality of Chinese baijiu visible" the Company has implemented the "Luzhou Laojiao sorghum production bases in more than ten townships across four districts and counties of
Intelligent Distilling 4.0" strategy. This approach leverages digitalization and intelligent technologies to upgrade equipment Luzhou City. Since 2008 the Company has maintained organic certification for 17 consecutive
develop talent and optimize management strengthening the Company's leadership in total quality management within the baijiu years. "National Cellar 1573" became the first Luzhou-flavor baijiu to obtain organic certification.industry. Through years of continuous innovation and exploration the Company has developed a completeQuality green organic industry chain that spans from “raw materials—distilling—by-products—organiccontrol of rawgrains for fertilizers—planting—tourism.” "Luzhou Glutinous Red Sorghum" received geographical indication
distillation protection from the former Ministry of Agriculture. The Company's "Research and Integrated Quality strategic objectives and implementation of Luzhou Laojiao Demonstration of Key Technologies for Standardized Planting of Distilling Sorghum" won third
prize for technological invention from the China Alcoholic Drinks Association. The Company
Intelligent transformation and upgrading of distilling processes with notable improvements in has been recognized as a "National Key Leading Enterprise in Agricultural Industrialization" a ●
capacity expansion quality enhancement and efficiency "National Standardized Demonstration Area for Organic Sorghum Planting" and has received the
"National Agricultural Animal Husbandry and Fishery Harvest Award."
Equipment ● Officially launched the baijiu industry's first intelligent packaging center built to "Lighthouse Factory"
upgrade standards promoting industrial linkage across the entire value chain
● Replacing manual labor with instruments offline with online processes and conventional methods
with faster ones
The Company strengthens the quality and safety control of packaging materials conducting risk
Packaging
material quality assessments on the materials structure and processes of "new products new technologies and
control new suppliers." Simulations of production storage and transportation conditions are performed
● Fostering deeper integration of production academia research and application to test the materials effectively controlling the external quality of products from the source.Technology
●
Upgrade Reinforcing the stabilizing role of industry chain standards
● Promoting the widespread application of industrial measurement
The Company is advancing the construction of an information management platform that
integrates the entire production and logistics chain—from raw grain planting and procurement
● Integrating information systems to achieve full coordination from research and development design to production logistics distribution and terminal sales. This full-chain approach ensures better
to after-sales service
Management risk control and supports the implementation of quality and safety responsibilities throughout the
upgrade ● Applying quality data throughout the product lifecycle driving decision-making Transportation process. The Company has implemented a third-party specialized warehousing and logistics
quality control management model and formulated the Quality Manual for Logistics Enterprises which sets
● Optimizing the quality inspection model standards for product protection and service requirements for logistics partners including
China Logistics COSCO Logistics and China Postal Express & Logistics. By strengthening
warehousing and transport capabilities and improving the efficiency of distribution services the
Company ensures product quality and safety are maintained right up to the final delivery.● Optimizing the talent structure for quality within the industry chain
Talent ● Pioneering the industry chain’s first grid-based chief quality officer system
upgrading
● Introducing the first industry-wide qualification certification system for quality professionals in the
industry chain
69 70LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
Product Recall Management Training on product quality of Luzhou Laojiao in 2024
Training Name Training Content Training Effectiveness
Luzhou Laojiao has established a comprehensive product recall management system and developed plans such as the 2024
Food Safety Emergency Drill and Food Safety Recall Drill Plan to ensure a rapid and effective response to potential product
quality issues. These measures aim to minimize impacts on consumers and the Company. In 2024 no product recalls occurred Industry Chain 10 training sessions
in the Company. Covering system construction quality tool Quality Lecture with nearly 400 application site management and food safety
attendances
Case Product recall drill
Continuing Covering quality management improvement About 500 attendances
education for quality testing technology and opportunities including chief quality
In March 2024 the Company organized a recall drill for the 2010 version of 52°National Cellar 1573 simulating a scenario in industry chain and challenges of quality management under officers and quality
which excessive iron ion precipitation in the glass bottle caused product discoloration. The Company has established a recall CQOs intelligent manufacturing management personnel
drill team to review product complaints strictly following the corresponding procedures steps and timelines for recall activities.Through these drills the effectiveness of the Company’s recall system has been verified ensuring that the Company can
respond quickly to potential product quality issues and handle them correctly.Case Luzhou baijiu industry chain quality improvement pilot: Implementing cross-boundary
management for cluster-based development
Quality Culture Construction The State Administration for Market Regulation the National Development and Reform Commission and four other ministries
jointly issued the Opinions on Quality Infrastructure Facilitating the Linkage Improvement of Industrial and Supply Chains
launching pilot projects for supply chain quality linkage improvement. As the leader of the Baijiu Industry Chain in Luzhou City
The Company continues to promote the construction of quality culture and strengthen quality awareness across all staff. An the Company leverages the cluster development model of the baijiu industry in Huangyi Park to implement cross-boundary
expert team consisting of universities research institutes and benchmark enterprises in the industry chain has been formed. quality management. Through this systematic quality enhancement program addressing common industry challenges we have
Through activities such as "Quality Month" "Industry Chain Quality Lectures" "Continuing Education for Quality Professionals" established a comprehensive quality mapping framework while identifying 32 key research projects and 10 quality policy tools."Benchmark Learning" and "Quality Salons" the Company continuously enhances quality awareness improves quality business The quality improvement drive has enabled us to diagnose 12 critical quality issues implement targeted solutions for baijiu bottle
skills and strengthens the foundation of quality. In 2024 the Company conducted 24 quality training sessions engaging nearly and gift packaging quality enhancements and conduct 25 professional training sessions achieving over 1000 attendances.
1000 employees. These coordinated efforts have significantly raised overall supply chain quality standards. Recognized as an industry benchmark
the pilot's achievements were presented as a case study at Sichuan Province's Quality Development Conference receiving
high-level recognition.In 2024
the Company conducted engaging nearly
24 quality training sessions 1000 employees
Scene from the Provincial Quality Excellence Conference
The Company is committed to building a skilled quality talent team to support the strategic objectives of the 14th Five-Year
Plan. In 2024 it will continue enhancing its quality training system which includes nine key modules covering general quality
knowledge professional training advanced quality management and specialized food safety programs. The curriculum features
over 60 specialized courses such as "Fundamentals of Quality Management and Food Safety" "Risk Analysis and Control
of Baijiu Quality and Safety" and "Theoretical Knowledge and Practical Application of Baijiu Tasting Skills." This structured
approach ensures a strong pipeline of quality professionals to support long-term quality management strategies.Furthermore the Company actively promotes talent development across the industry chain by offering supplementary
certification re-certification programs for quality inspectors and continuing education for chief quality officers. In 2024
130 professionals from 61 enterprises successfully obtained quality inspector qualifications under the Company's quality
management system.
71 72LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
Quality-related honors obtained by Luzhou Laojiao
"Sichuan Famous Brands" in 2024 Stable and Qualified Products in National Quality Inspection
National Advanced Quality and Integrity National Product and Service Quality Integrity
Enterprise Demonstration Enterprise
2024 National "Quality Month" Quality Integrity Recognized as a Leading Enterprise in the
Initiative Enterprise Provincial Quality Excellence Program
Craftsmanship Enterprise · Quality Pioneer National Model Case of
Industry Chain Quality Management "Integrity Prospering Business"
Luzhou Laojiao has developed a cross-border quality management model based on the concept of "from the field to the tip of
the tongue." Guided by consumer experience the Company leverages its industrial cluster model to enhance quality and safety Star Enterprise of Quality 2024 Outstanding
management across the entire value chain. This approach extends quality control both upstream—covering raw grain planting Pioneer Practice Award for Management in Sichuan Contribution Award to the Food Authenticity
and packaging material production—and downstream ensuring quality in logistics warehousing distribution and consumer-end Province Industry
management. Traceability and control systems are also in place to safeguard product safety throughout the baijiu industry chain.To enhance quality management the Company has established comprehensive regulations including the Quality Manual of
Packaging Material Suppliers the Quality Manual of Distilling Raw and Auxiliary Materials Suppliers the Quality Manual of
Logistics Enterprises and the Quality Manual of Product Distribution Enterprises. These manuals set "red line" requirements
and operational guidelines for every stage including packaging material production raw grain management logistics and
distribution ensuring strict compliance with quality and safety standards. In addition the Company has implemented a "three-
level five-law" supervision mechanism deploying quality supervision personnel conducting audits and inspections managing
targets and performing performance assessments to uphold quality management and standards. These measures have
significantly improved quality management efficiency and strengthened assurance practices across the entire industry chain.In 2024 the Company completed 4030 supplier pre-inspection tasks and conducted 3778 quality patrol inspections of supplier 2024 Craftsmanship Excellent Cases of Food
production processes. The Company also optimized over 10 process systems including the Manufacturing Execution System Inheritance Achievement Safety Management
(MES6) and Supplier Relationship Management (SRM7) processes improving pre-inspection efficiency digitalizing abnormality Award Innovation in 2024
management and enhancing traceability.To continuously improve the quality level across various links of the industry chain in recent years the Company has organized
42 special quality improvement initiatives related to issues such as the peeling of floral patterns on glass bottles and mold
growth on gift boxes. In addition 76 standards and regulatory documents have been formulated or revised effectively increasing
product pass rates.
6 MES: Manufacturing Execution System.
7 SRM: Supplier Relationship Management.
73 74LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
Food Safety Assurance The Company conducts system control process control supervision and inspection. This multi-tiered supervision system ensures comprehensive oversight and effective management of food safety.Luzhou Laojiao strictly adheres to the Food Safety Law of the People's Republic of China the Administrative Measures for Food safety supervision and inspection system of Luzhou Laojiao
Food Recall and the ISO 9001 Quality Management System and the ISO 22000 Food Safety Management Systemensuring
food safety responsibilities are fully implemented. The Company has established a grid-based quality coordination mechanism
covering both internal (horizontal) and industry chain (vertical) levels. To ensure comprehensive food safety governance the Audit and Supervision Method Audit Content
Company has developed over 400 internal quality and safety assurance systems including the HACCP8 Plan the Food Safety
Protection Plan and the Measures for Food Safety Risk Assessment. These systems cover all production and functional The Company strictly complies with national laws regulations and standards and has established
departments ensuring product quality is safeguarded and consumer rights are protected. a comprehensive standardized management system which includes key documents such as the
System HACCP Plan and the Food Safety Management Manual. The Group has obtained ISO 22000
control certification and conducts regular internal and external audits in accordance with the ISO 22000
food safety management system ensuring ongoing monitoring continuous improvement and
Food Safety Management System effective maintenance of its food safety management system.Luzhou Laojiao has established a systematic and comprehensive food safety responsibility framework characterized by The Company implements end-to-end food safety controls across the entire industry chain. From
"leadership accountability full staff participation and stakeholder co-governance". By operating a "daily control weekly Process raw grain cultivation procurement of raw and auxiliary materials and packaging distilling and control
inspection and monthly scheduling" mechanism the Group has defined critical control points key processes and inspection source management to packaging production warehousing and logistics every stage of the
criteria further reinforcing its food safety defenses. Adhering to the food safety policy of "prevention first eliminating hazards production process is strictly managed to ensure comprehensive food safety oversight.continuous improvement and ensuring safety" the Group set a goal of "zero food safety incidents" which was successfully
achieved in 2024. During the reporting period the Company has not experienced any food safety incidents. The Company has established a robust food safety supervision
system that carries out multi-dimensional testing—including
sensory physical and chemical analysis—on raw and auxiliary
materials food contact substances semi-finished products
Chairman of the Board Supervision and and finished products across key stages such as distilling
inspection source processing and packaging. Through regular sampling
Food Safety Director inspections and a comprehensive traceability mechanism
Monthly potential risks are promptly identified and addressed ensuring
Scheduling that all products achieve 100% compliance.Quality Management Center
Red Sorghum Production Packaging Material Packaging Supply Chain
Weekly
Company Management Purchasing and Supply Production Management InspectionDepartment Center Department Center
In 2024
Daily
Control the Company has obtained
Equipment Energy Raw Materials Liquor Starter- Warehousing the ISO 9001 Quality Man-
Certificate CN15/20820.00
External Number F01FSMS1500096
The management system of
and Excipients Design and Distilling Packaging Luzhou Laojiao Co. Ltd. Management Management Management making Management workshops and logistics agement System Certification Centers Unified Social Credit Code: 91510500204706718H Business Registration Address: Guojiao Plaza Luzhou City Sichuan Province P. R. China Business Operation Address: No.9 Nanguang Road(Luzhou Laojiao Plaza) Longmatan District Department Department Center companies Luzhou CitySichuan Province P. R. China the ISO 10012 Measurement has been assessed and certified as meeting the requirements of Department Center ISO 22000:2018 For the following activities Manufacture and packaging of distilled spirit
Management System Certifi-
Food Category: CIV - Processing of ambient stable products
This certificate is valid from 30 June 2024 until 29 June 2027
and remains valid subject to satisfactory surveillance audits.cation and ISO 22000 Food Issue 6. Certified since 19 October 2006 Multiple certificates have been issued for this scope the main certificate is numbered CN15/20820.00 Certified activities performed by additional sites are listed on subsequent pages.Safety Management System
Authorised by
Jonathan Hall
Certif ication successful ly Global Head - Certification Services SGS United Kingdom Ltd
Rossmore Business Park Ellesmere Port Cheshire CH65 3EN UK
t +44 (0)151 350-6666 - www.sgs.com
Working mechanism of "daily control weekly investigation and monthly scheduling" The certification information can be verified on the web site of Certification and Accreditation Administration of the People’s Republic of achieving the annual target of China www.cnca.gov.cn
"100% pass rate for external
This document is an authentic electronic certificate for Client’ business purposes use only. Printed version of the electronic certificate are permitted and will be considered as a copy. This
document is issued by the Company subject to SGS General Conditions of certification services available on Terms and Conditions | SGS. Attention is drawn to the limitation of liability
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System certifications achieved
8 Hazard Analysis and Critical Control Point.
75 76LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
Food Safety Risk Prevention and Control Excellent Customer Service
The Company adheres to the principle of "prevention first systematic risk control" continuously enhancing its food safety Luzhou Laojiao upholds a "customer-centered" philosophy continuously refining its customer service framework by
management system. A food safety risk monitoring system has been established to enable real-time monitoring across the entire strengthening complaint resolution and feedback mechanisms. Through service upgrades and intelligent solutions the Company
industry chain. The Company has also developed a risk review mechanism to standardize temporary mitigation measures and meets diverse customer needs while enhancing overall satisfaction.integrate routine risk management across product R&D distillation production liquor design and packaging reinforcing its
quality and safety defenses.Furthermore the Company has implemented a digital traceability system integrating three core modules—"Enterprise Internal Customer Service System
Management Platform" "Warehousing and Logistics Management Platform" and "Consumption Management Platform." This
system ensures seamless information flow across the supply chain records end-to-end product quality and safety data and
enables efficient traceability throughout the product lifecycle. Customer service philosophy of Luzhou Laojiao
Digital traceability system of Luzhou Laojiao
Classified guidance for "precise policy implementation"
Enterprise internal management platform plays a key role in information traceability on the production side
The Company tailors customer service standards based on regional characteristics and customer concerns
This platform traceability during production by enabling supervision verification and tracking across the entire aligning with market dynamics to improve frontline service efficiency.process—from procurement and brewing to packaging operations. It enhances production efficiency and
strengthens quality control.Information exchange to develop service standards
Warehousing and logistics management platform helps with information tracking on the sales side
By fostering collaboration among business departments the Company establishes unified customer service
This platform supports traceability during the sales stage by integrating product coding data with traceability standards. Leveraging departmental strengths and promoting a "co-construction co-governance and shared
records. It ensures seamless linkage between production and sales tracking batch details quantities and responsibility" approach enhances information sharing optimizes internal workflows and improves external
warehouse movement. By reducing human error it helps prevent missed or incorrect shipments and optimizes service efficiency.inventory management.Consumption management platform plays a role in backend data mining and analysis
Innovative thinking to optimize customer experience
Leveraging big data analytics this platform supports market-driven strategies. By integrating anti-counterfeiting
scan data it enables early warnings and trend analysis in high-risk areas improving the precision of counterfeit
prevention efforts. The Company has established efficient channels for information collection and feedback. Through innovation-
driven strategies it identifies real customer needs improves product and service quality enhances customer
experience and strengthens brand loyalty
The Company integrates its service philosophy across the entire service process adhering to the principle of "Customer
First Reputation Supreme." It has established the Management Measures for After-Sales Service to create a compliant and
systematic customer service framework. Our Grading Emergency Plan for Abnormal Market Information enables accurate
identification and hierarchical management of market demands improving service response efficiency. To expand consumer
feedback channels the Company has proactively integrated with the National Administration for Market Regulation’s ODR9 (Online
Dispute Resolution) system. Dedicated personnel monitors the platform in real time ensuring critical feedback is promptly
addressed and managed within a closed-loop system.
9 Online Dispute Resolution.
77 78LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
The Company follows a three-step process—information collection verification and handling and customer follow-up—to ensure Customer Satisfaction
timely responses clear resolutions and seamless service experiences.Customer complaint resolution process of Luzhou Laojiao To better understand distributor and end-customer evaluations
of products and services the Company has established a
comprehensive research system combining annual surveys
quarterly assessments and ongoing feedback collection. In
2024 it conducted four distributor satisfaction surveys involving
1879 customers achieving a customer satisfaction rate of
99.70%.
Information Verification and Customer
Collection Handling Follow-up In March 2024 at the launching ceremony of the 2024 Luzhou
International Consumer Rights and Interests Day the Company
was honored as a "Luzhou 2023 Outstanding Consumer
Recognition ODR Unit."
Honorary certificate of "2023 Outstanding Consumer
Recognition ODR Unit"
● Categoriz ing complaints: ● Providing direct Interpretation ● Contacting customers to
product complaints service confirm whether they accept Upholding the principle of "Promoting Supporting and Protecting Business Partners" the Company conducts various customer
quality issues and complaints ● Verifying complaint details the proposed resolutions support initiatives offering targeted assistance and integrating resources to help customers strengthen competitiveness and
referred by law enforcement and offering a resolution plan resilience. In 2024 the Company conducted 66 consumer engagement activities reaching 305032 consumers.agencies
● If a complaint does not fall
into these three categories
it must be reviewed by the Case Provide customer assistance and showcase corporate responsibility
customer service supervisor
From August 24 to 27 the Customer Service Department collaborated with the Market Supervision Department to assist a
customer in Tangshan City in managing post-fire inventory recovery. The team sorted and salvaged 1913 National Cellar
In 2024 the Company handled 2400 customer complaints achieving a 100% response rate and a 97.30% overall complaint products that met quality standards which were then reworked according to the Quality Management Center’s guidelines
resolution rate meeting all established service targets. helping the customer restore confidence in business operations.Due to severe weather conditions some distributors in Hangzhou and Changsha suffered flood damage to their inventory. The
Luzhou Laojiao Customer Service Goals and Progress Customer Service Department in coordination with the Market Supervision Department conducted on-site assessments and
inventory verification to account for damaged products demonstrating the Company's rapid emergency response capabilities
and strong commitment to corporate social responsibility.Target 2024 Target Completion
2400 market complaints received 2300 complaints resolved
Complaint resolution rate ≥ 90%
achieving a completion rate of 97.30%
One-time resolution rate for 90400 market inquiries received 71800 resolved in a single
market inquiries ≥ 60% response achieving a one-time resolution rate of 79.42%
The Company has strengthened key customer service roles and enhanced staff expertise through targeted training continuously
improving service quality to deliver a better customer experience. In 2024 we held 15 specialized training sessions for market Inventory check of affected distributor customers
personnel with over 600 participants covering complaint handling operational procedures and effective communication.
79 80LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
Advancing Digital and Intelligent Customer Service Responsible Marketing
The Company has strengthened cross-departmental collaboration enhanced information sharing and optimized resource At Luzhou Laojiao we take social responsibility seriously. We actively promote responsible marketing advocate for mindful
allocation to develop an integrated customer service center. By implementing an end-to-end service system "that combines AI- drinking and collaborate with industry and social groups to encourage healthier drinking habits. Our goal is to shape a new
powered bots human agents and automated work order management" alongside a dual-channel "hotline + online" service culture that values responsible alcohol consumption.system the Company has enhanced customer engagement and strengthened long-term relationships.We strictly follow the Advertisement Law of the People's Republic of China the Law on the Protection of Consumer Rights
and Interests the Interim Measures for the Administration of Internet Advertising and other relevant regulations. To ensure
Integrated customer service center of Luzhou Laojiao compliance we have established clear guidelines under our Brand Asset Management Measures outlining standards for
advertising and marketing practices.With a strong commitment to consumer trust we maintain a rigorous content review system. Every aspect of our advertising
Multi-channel including product labels promotional materials and marketing placements undergoes thorough scrutiny to prevent misleading
●
integration Supporting online service access across multiple platforms and multi-service channels claims and ensure accuracy. We prohibit exaggerated messaging and false advertising making sure all information we share
and unified ● Accessing third-party platforms for multi-terminal unified response and information integration is truthful precise and legally compliant. In addition we conduct responsible marketing audits in line with national policies
response and Company regulations. These audits assess and optimize marketing and promotional activities to ensure that external
communications are truthful accurate and complete effectively conveying reliable information to consumers.Training is a key part of our responsible marketing efforts. We require all relevant employees to participate in specialized training
sessions to reinforce these principles. In 2024 we conducted two training sessionson responsible marketing achieving 100%
participation from employees in the Brand Center and Planning Department.● Providing self-service voice service
Intelligent ● Offering 7×24-hour intelligent response supporting the seamless transfer of unresolved
man-machine
collaborative problems to manual work or automatic generation of work orders by leaving messages
reception ● Assisting with manual intervention and efficient collaboration realizing the preliminary In 2024
screening of customer intentions for accurate distribution we conducted achieving
2 responsible-marketing 100% participation from employees in the
training sessions Brand Center and Planning Department
● Realizing multi-scenario customer clue cleaning such as invitation notification private domain
Intelligent AI
outbound call diversion frequent customer recall and survey return visits to achieve accurate customer
contact
Case Responsible marketing training
Multi-dimensional data board; In 2024 the Company organized the study of responsible ●
Digital marketing-related systems such as the Civil Code of the
intelligent ● Full-link operation monitoring; People's Republic of China the Advertisement Law of the
operation
●
mechanism Real-time quality inspection/offline quality inspection;
People's Republic of China the Law of the People's Republic
of China on the Protection of Consumer Rights and Interests
● Intelligent dialog analysis and the Anti-Unfair Competition Law of the People's Republic
of China. A total of more than 40 employees participated in
the study greatly improving their awareness of compliance
marketing.● Deploying online robots to improve the internal service efficiency of enterprises
Intelligent Training and learning site
service support ● Providing multi-channel online consultation portals such as enterprise website enterprise App
and social media App
81 82LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
Intellectual Property Protection
Luzhou Laojiao has built a standardized and full-chain intellectual property management system to protect core technological
innovations drive technology advancements standardize business cooperation modes and continuously enhance the core
competitiveness of enterprises.The Company has introduced core systems such as the Intellectual Property Management Manual and the Patent Management
Measures and combined with supporting rules such as the Administrative Measures for the Protection of Trade Secrets
these frameworks help streamline processes for managing patents trademarks and trade secrets. We also use structured
control procedures and documentation tools to provide clear guidance ensuring efficient intellectual property management and
supporting the transition of innovations into market value.Encouraging scientific and technological progress is a priority. To inspire innovation among employees and accelerate the
practical application of research we have introduced the the Measures for the Implementation of Policy Research and
Management (Trial) and the Measures for the Implementation of Science and Technology Awards. These initiatives offer
structured incentives for achievements in patents product innovation academic research and industry standards. Each
category of achievement has a designated reward structure ensuring that contributions to technological advancement are
acknowledged. Additionally government-supported research projects influential platforms and prestigious honors that receive
official recognition are also eligible for rewards.During the reporting period the Company has applied for a total of 560 invention patents and 416 utility model patents. We have
Responsible Drinking Advocate received 211 invention patents and 37210 utility model patents bringing our total patent holdings to 583.We actively promote a culture of responsible drinking by clearly displaying messages like "Drink Responsibly" and "No Sales
to Minors" in our advertisements. Through both online and offline initiatives we educate the public on healthy drinking habits
helping to foster a more informed and responsible drinking culture. Our goal is to contribute to a healthier more harmonious
society.During the reporting period
the Company has applied for a total of applied for a total of
Case National Rational Drinking Publicity Week
560 invention patents 416 utility model patents
On October 21 2024 the launching ceremony of the "2024 National Rational Drinking Publicity Week Chongqing Parallel
Session" co-organized by Luzhou Laojiao was held at the News Media Building of Chongqing Daily News Group. The activity
was carried out around three themes: no drinking and driving prevention of underage drinking and healthy drinking advocating we have received received
rational and responsible drinking.
372 utility model patents 211 invention patents
Activity site
10 A s of December 31 2024 165 patents have expired. Since the protection period for utility model patents is 10 years as of December 31 2024 165 utility
model patents have expired.
83 84LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Craft with Excellence and Grow Together with Customers
New patent performance of Luzhou Laojiao from 2022 to 2024
Case Training on patent basics and writing practice
Indicator Unit 2024 2023 2022
New invention patent applications in the year Piece 127 90 49 In January 2024 the Company conducted training on patent basics and writing practice with a total of 60 participants. The
training aims to strengthen the standardized management of the Company's invention and utility model patent applications and
New utility model patent applications in the year Piece 50 50 83 to enhance the awareness of patent creation and protection among the Company's scientific and technical staff.New invention patents granted in the year Piece 25 19 14
New utility model patents granted in the year Piece 33 67 66
Luzhou Laojiao actively educates employees on intellectual property risks and patent preparation to strengthen awareness and
compliance. In 2024 we conducted 2 Intellectual Property Training sessions with 100 participants.In 2024
we conducted with
2 Intellectual Property Training sessions 100 participants Training site
Case Training on protection of intellectual property achievements in technical cooperation
(entrustment) development
In September 2024 the Company organized a training session on the protection of intellectual property achievements in
technical cooperation (entrustment) development with 40 participants. The purpose of this training was to enhance the practical
ability of employees in protecting intellectual property achievements and to improve the protection level of intellectual property in
technical cooperation (entrustment) development within the Company.Training site
85 8604 Foster Diversity and Thrive Alongside Employees
Employees are the backbone of our success. At Luzhou Laojiao we are committed to improving our
employment policies salary structures and benefits to safeguard employee rights and support career
growth. We also prioritize workplace safety and strive to build an equitable diverse and healthy work
environment—ensuring our employees feel valued supported and fulfilled in their roles.Employee Hiring Employee Training and Development
Employee Care Health and SafetyLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Employee Hiring Luzhou Laojiao leverages digital technology to enhance its recruitment process. Using an AI-driven recruitment system we streamline candidate screening by analyzing key resume attributes and conducting online evaluations. In 2024 we introduced
AI interview technology for campus recruitment enabling faster and more efficient candidate assessments. To further
improve talent selection we have established a dedicated recruitment evaluation team that provides expert insights based on
Luzhou Laojiao strictly adheres to the Labor Law the Labor Contract Law the Social Insurance Law of the People's Republic standardized assessment criteria. This year we focused on strengthening internal expertise by training 22 new junior evaluators.of China and other relevant laws and regulations. To maintain compliant employment practices we have established internal As of the end of the reporting period the Company had 269 evaluators including 15 expert-level evaluators 173 intermediate
policies such as the Recruitment Management Measures and the Employee Code of Conduct and Labor Discipline Management evaluators and 81 junior evaluators. In 2024 the evaluation team participated in 115 campus recruitment and talent review
Measures. We are committed to diversity equality and non-discrimination treating employees fairly regardless of race gender project evaluation activities completing over 3500 evaluations.religion or cultural background. We strictly prohibit child labor and any form of forced labor. To prevent labor violations we
12
outline work conditions including hours and related terms clearly in employment and collective contracts. In 2024 our labor During the reporting period Luzhou Laojiao had 3832 employees with 58 female employees holding middle and senior
contract signing rate reached 100% with no incidents of child labor forced labor or workplace discrimination. management positions.We also uphold equal pay for equal work and actively promote employment opportunities for vulnerable groups including
women and individuals with disabilities. This year we employed 52 individuals from disadvantaged backgrounds11. Total number of employees Total employee turnover rate
To support our strategic growth and address talent needs Luzhou Laojiao actively recruits through campus hiring social 3832 6.92%
recruitment and internal promotions. We also run specialized programs like "Baijiu Scholars" "Cellar Newcomers" and "Elite
Cellar Talents."
Number of employees of Luzhou Laojiao in 2024
Talent recruitment projects of Luzhou Laojiao Number of employees Number of employees by age Number of employees by Number of employees
by gender educational background by employee category
"Elite Cellar Talents" recruitment project 2601
2796● This is a new sub-project under the Company’s 2024 national campus recruitment brand “Refreshing Youth and 1998 3655Promising Future”. It primarily targets high-level talent with master's or doctoral degrees specializing in technological 1231 1347
innovation aimed at helping the Company achieve breakthroughs and upgrades. The focus is on recruiting talent in the 487
fields of digitalization and liquor-making technology continuously improving the quality of the Company's talent pool and 603
417 163maintaining a long-term competitive advantage in talent.
1614
● Upon joining "Elite Cellar Talents" will undergo a 3-year systematic training program. A 2-to-1 mentorship team consisting
Male Female 30 years old 31-50 Below associate Bachelor's degree Senior Management
of senior executives and technical experts will provide exclusive guidance. They will be given the opportunity to participate employees employees and below years old degree and associate degree
as core project members in critical initiatives such as digital transformation and production technology advancements to Middle Management
accelerate their growth. Above 50 Postgraduate degree and aboveyears old Entry-level employees
Doctoral degree and above
● In 2024 the Company conducted 2 campus recruitment sessions collected 183 resumes and interviewed 21 candidates.A follow-up assessment in the form of a “National Cellar Trip” was also held where 10 candidates underwent evaluations
and participated in an enterprise visit.Employee turnover rate of Luzhou Laojiao in 2024
"Cellar Newcomers" recruitment program
Employee turnover rate by gender Employee turnover rate by age Employee turnover rate by employee category
● Rooted in the front line of professional expertise this program actively recruits "reserve troops" for the baijiu industry.Through multi-disciplinary training these individuals are cultivated into well-rounded talents who are familiar with the core
value chain of the Company and drive operational efficiency. 8.45% 10.39% 10.47% 7.14% 7.14%
6.19%
Recruitment program of "Freshmen in Cellars"
3.70%
● This program is rooted in the market front line and focuses on recruiting the "new generation" of talent to spread the 1.84%
culture of Luzhou Laojiao baijiu. By undergoing market experience in various regions these recruits are gradually trained
to become leading marketing experts and senior management professionals within the industry.Male employee Female employee 30 years old 31-50 Above 50 Senior Middle Entry-level
turnover rate turnover rate and below years old years old Management Management employees
11 Including migrant workers disabled individuals and demobilized soldiers. 12 Refers to the total number of employees in Chinese mainland excluding employees from Hong Kong Macao Taiwan and overseas.
89 90LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Employee Training and Development "Sailing Plan" training system
Luzhou Laojiao has consistently upheld the guiding principles of "political assurance institutional implementation capabilities
●
enhancement and rights protection" dedicating itself to advancing the reform of the workforce and actively supporting the Targeting new employees recruited from campuses and experienced hires this plan helps Sailing Start
growth and development of its employees. Luzhou Laojiao has established a structured career development system with dual participants quickly integrate into the Company adapt effectively to their roles and become Plan – New
career pathways for "professional + management" roles. Through internal policies such as the Promotion Management Measures job-ready. In 2024 the Company optimized the training content and formats for new campus Employee
and Training Management Measures we provide clear opportunities for career advancement allowing employees to grow Training recruits and experienced hires conducting 17 sessions of the Sailing Start Plan with 874 trainee
based on their expertise and leadership abilities. To support skill development we introduced the "intangible cultural heritage participations.craftsmen" position group and established the "Sail Plan" talent growth platform. These initiatives encourage frontline employees
to transition into areas like scientific research technological innovation and project development. Each year we conduct multi-
level promotion assessments including qualification reviews written exams online evaluations and Comprehensive Personality
Inventory (CPI) personality tests. In 2024 more than 700 industrial workers transitioned from frontline roles to key technical
experts department specialists and middle management positions. ● Designed for P1 and O3 level employees this training strengthens corporate culture integration and
Submersible job role awareness enabling participants to quickly understand their responsibilities and operational
Voyage Plan
Dual-channel career development standards improve work efficiency and enhance their ability to work independently. In 2024 based – P1/O3 Level on the competency requirements for P1 employees the Company developed an online learning
Employee roadmap for P1 staff and conducted P1 public training camps. A total of 16 sessions of the Sailing
Management Training
channel Employees progress through leadership training enhancing their management and leadership skills.Start Plan were held with 610 trainee participations.Professional Employees deepen their technical and industry expertise becoming specialized professionals in
channel the Company and the industry.● Focuses on enhancing the core skills and competencies of P2 and O4 employees conducted sixintensive training camps for over 200 employees improving productivity through courses like “SevenLuzhou Laojiao remains committed to an employee-centered approach building a structured career development system with Fast-track Plan Disciplines for High-Efficiency Personnel”;
clear qualification standards. To support employees at different career stages and across various roles we introduced the
● In 2024 13 Fast-Track Plan training sessions were conducted with 522 employees participating."Sailing Plan" training system. This program provides tiered and specialized training ensuring employees develop well-rounded
skills while fostering mutual growth between individuals and the Company.During the reporting period The Company invested RMB 13881500 in training. Our workforce collectively completed
297378.88 training hours with an average of 88.90 hours per employee.
● Provides specialized training in communication teamwork project management and replay
technology to strengthen key employees' skills to continuously improve core capabilities and broaden
Voyage Plan professional expertise;
During the reporting period ● In 2024 eight Voyage Plan training sessions were conducted reaching over 160 core employees.our workforce collectively completed with an average of
297378.88 training hours 88.90 hours per employee ● Provides special MTP13 management training for new middle-level managers focusing on the
Company's short- medium- and long-term development goals;
Leadership ● Expands leadership development through the "Management Selection Program" offering access
Plan to top external training resources. In 2024 over 130 middle-level managers and P4 employees
participated in these programs to strengthen their leadership skills and overall professional
capabilities
13 MTP: Management Training Program.
91 92LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Diversified training activities in 2024 Management personnel training
● In 2024 Luzhou Laojiao focused on digital capability development for management teams
"Elite Plan" professional training expanding their perspectives. We combined "online learning map + offline professional training
+ visits to benchmarking enterprises" to encourage new ways of thinking. Through the "Genetic
In 2024 Luzhou Laojiao launched the "Elite Learning" project managers gained insights from industry leaders learning best practices firsthand. ●
Plan" to provide a structured approach to talent We also hosted knowledge-sharing sessions on human resources intelligent manufacturing and
development. The program covered key areas intellectual property protection to deepen our expertise. During the reporting period we conducted
such as digitalization human resources and 194 external training sessions with 755 participants supporting continuous learning and innovation.public relations while also strengthening expertise
in production energy equipment and brewing. To
build a skilled workforce we established a core
position talent profile and certification system
ensuring a clear path for professional growth.Additionally we conducted company-wide grading
assessments and specialized training enhancing Elite Plan training
employees' baijiu-tasting skills.Sales system training
"Genetic Learning" project
● In 2024 conducted a training session for middle-level managers in the sales system focusing on
the "3+1" capability model (systematic thinking effective communication collaborative promotion +
professional skills). A three-year training plan was developed for functional teams with structured
batch training for functional personnel; To enhance professional skills each specialized department Employee training performance of Luzhou Laojiao in 2024
designed targeted training programs. In total 13 sessions of professional skills training brainstorming
workshops and bi-monthly knowledge-sharing meetings were held across five key areas including
Total number of Total employee Average training
digitalization brand promotion and public relations;
employees trained training hours hours per employee
● The sales system introduced a specialized digital training program targeting digital leadership
application specialists and marketing professionals and carried out one marketing digitization 3345 297378.88 88.90
seminar and two functional line digitization seminars on functional line digitization; The Company two
field visits on "Genes and Innovation" and two study sessions on "Systems and Tools" to drive digital
capability enhancement and support the Company's digital transformation goals. Number of employees trained by gender Number of employees trained by rank
MTP management talent development training 2253 3150
● In 2024 the Company focused on strengthening leadership across all management levels. We
organized MTP management talent development training for middle-level managers incorporating 1092
external expertise to enhance comprehensive management skills. To support grassroots leadership
we launched a specialized training camp for production system managers. Through phased training 11 184
programs we addressed different levels of management needs helping over 100 grassroots
managers improve their self-management team leadership and other abilities. Number of senior management trainedNumber of male employees trained
Number of middle management trained
Number of female employees trained
Number of entry-level employees trained
Luzhou Laojiao actively encourages employees to enhance their professional and technical skills by supporting them in obtaining
certifications for titles such as baijiu tasters and brewers. To facilitate this we provide certification plans consulting services
and financial incentives including allowances for professional titles and partial reimbursement for transportation and information
costs. In 2024 four employees earned senior professional titles 22 achieved deputy senior titles 31 obtained intermediate titles
and 111 received junior titles. Additionally 241 skilled workers were certified through our vocational skill level evaluation program
MTP management talent development training covering all levels from senior technicians to junior workers. This initiative has strengthened the overall skills and expertise of our
workforce.
93 94LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Employee Care Employee Communication and Care
Luzhou Laojiao is committed to improving employee compensation benefits and workplace satisfaction. We maintain open Luzhou Laojiao prioritizes employee rights workplace harmony and open communication. Through a structured trade union
communication channels and organize various employee support initiatives to enhance overall well-being and job fulfillment. system we safeguard employee interests and maintain stable labor relations. By organizing workers' congresses we foster
democratic management encourage dialogue and ensure employees' voices are heard.To strengthen communication we provide multiple feedback channels including employee dialogue platforms a complaint
mechanism and labor dispute mediation teams. We also invite external experts to conduct mental health lectures. In 2024 we
Employee Compensation and Benefits received 228 employee feedback submissions through the chairman and general manager hotline as well as other channels
all of which were promptly addressed. We also engage employees through collective consultation meetings ensuring that
workplace concerns are discussed openly. As a result employee satisfaction reached 100% in 2024. In addition we conducted
We implement a post-grade performance-based salary system that includes basic salary post-grade salary and specialized surveys in collaboration with the Sichuan Federation of Trade Unions to assess workplace support for female
performance-based earnings. Compensation is determined by individual performance contributions to key business areas employees in Sichuan Province in the new era. These surveys covered topics such as "Women's Participation in Enterprise
and assessment results. To promote sustainability and responsibility some ESG-related indicators such as environmental Decision-Making" with 100% satisfaction reported among all female employees.management occupational health and R&D innovation are integrated into performance evaluations. At the same time
the Company strives to maintain a fair and market-driven compensation system based on the principles of "performance
co-creation risk sharing and achievement sharing." Our "sharing benefits and bearing losses" strategy ensures that
individual performance is closely tied to the Company's overall success. By leveraging digital performance management
we strengthen the connection between employee contributions and organizational growth. During the reporting period
the Company conducted surveys covering 100% of female employees with
Welfare system of the Company
100% satisfaction rate
Statutory ● Endowment insurance medical insurance unemployment insurance maternity insurance
Benefits employment injury insurance and housing provident fund
In addition Luzhou Laojiao is committed to supporting employees facing difficulties by providing financial assistance and welfare
programs. During the reporting period we issued 1876 assistance subsidies including fixed financial aid for employees in need.Additionally we provided education subsidies to the children of 13 employees totaling RMB 871800.● Holiday condolences birthday greetings employee physical examination distribution of sanitary Luzhou Laojiao focuses on employee well-being and team cohesion by organizing cultural and sports activities. We have
products for female employees distribution of wedding souvenirs distribution of child souvenirs established six staff clubs including football drama and dance and host various recreational events such as exercise
model worker therapy and recuperation condolences and other inclusive benefits; tournaments fishing competitions and "The Dream of China the Beauty of Labor" activities helping employees maintain a
Enterprise annuity multiple supplementary medical insurance and multi-level supplementary healthy work-life balance.Corporate ●
Benefits benefits;
● Housing allowance rental allowance work allowance transportation allowance summer and
winter allowance;
● Marketing training subsidies learning organization rewards and more.During the reporting period
substantial assistance and fixed-amount assistance for employees in difficulty
To foster engagement and innovation among key talent Luzhou Laojiao has introduced a restricted stock incentive plan. This hardship subsidies to totaled
program targets directors senior executives middle managers and core business leaders ensuring that those in pivotal roles
are motivated to contribute to the Company's long-term success. 1876 individuals RMB 871800
95 96LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Honorary awards for employees of the Company in 2024
Case Carrying out diversified employee care activities
Contact point for female employees of the Excellent Organization Award in the Baijiu
Luzhou Laojiao has always been committed to building a warm and harmonious corporate culture paying attention to the All-China Federation of Trade Unions Analysis and Testing Skills Competition of the
growth and well-being of each employee and creating a positive working atmosphere through colorful activities and considerate 19th Luzhou Staff Vocational Skills Competition
welfare policies. The Company has taken the following positive measures to celebrate important festivals promote employee
exchanges enhance parent-child relations and care for the health of female employees:
Excellent Organization Award in the Baijiu
● On March 8 2024 the Company held a commemorative and commendation meeting on "Joining Hands for a New Journey Best Organization Award in the First "Red Enterprise Limited Space Operation Skills
Women Chasing Dreams for the Future" which commended 196 outstanding female employees and 302 families hosted Flag Cup" Team Leader Competition Competition of the 19th Luzhou Staff Vocational
festival condolence activities sent sincere holiday greetings to female employees and praised their contributions to the Skills Competition
development of the Company;
● On May 22 2024 the Company and Luzhou Laojiao Qiankun Jiubao held a collective customized wedding activity of "A Excellent Organization Unit in the Light Industry First place in "The Dream of China the Beauty
Lifetime Commitment Brewing Happiness Together" providing a romantic and unforgettable wedding experience for 19 Group of the First "Red Flag Cup" Team Leader of Labor" online fitness activities for employees
couples from the company; Competition in Sichuan Province in 2024
● On June 1 2024 the Company held a parent-child study activity so that children could walk into their parents' work scenes
experience their work contents and enhance understanding and respect between parents and children;
● On August 9 2024 the Youth League Committee and Trade Union of the Company jointly organized the "2024·Have We Met Special Contribution Award in the light industry Selected as one of the first batch of on-site
Before" Qixi Friendship Gathering providing a platform for young employees from Luzhou Laojiao Bank of Luzhou Sichuan group semi-final of the first "Red Flag Cup" Team teaching sites for key work innovation cases by
Police College Luzhou Xinglu Investment Group Co. Ltd. and other units to make friends. Leader Competition the All-China Federation of Trade Unions
In addition we also solicited opinions and suggestions from female employees through meeting discussions face-to-face
communications online collection and other means to formulate a hygiene package. In 2024 more than 2400 hygienic
products were distributed to on-the-job female employees with an investment of RMB 320000; the rehabilitation budget for
female employees was increased to RMB 425/person with an annual investment of RMB 695000. Many new gynecological
examination sites have been added such as the Affiliated Hospital of Southwest Medical University and Sichuan Provincial
People's Hospital aiming to bring a better gynecological examination experience to female employees. Health and Safety
Luzhou Laojiao continuously improves its occupational health and safety management system ensuring a safe and healthy work
environment for employees. We take proactive measures to protect employee health raise safety awareness and minimize
workplace risks.Occupational Health and Safety Management System
Home visit by the Chairman of the Trade Union Psychological care activities for female employees Health and safety are a top priority in our business operations. We strictly comply with the Work Safety Law of the People's
Republic of China and the requirements of the ISO 45001 Occupational Health and Safety Management System. To reinforce
workplace safety we have developed internal policies such as the Work Safety Responsibility System the Work Safety
Commitment Management System and the Safety Management System for Related Parties. These frameworks guide our daily
supervision and inspection processes fostering a culture of safety and health.The Company continues to optimize its standardized occupational health and safety management system. It has invited experts
at various levels to review the system and established a review team led by the chairman in 2024 to conduct self-assessments
with results publicly disclosed. The Company has established a Work Safety Committee led by the Secretary of the Party
Committee and Chairman with the Deputy Secretary of the Party Committee and General Manager serving as executive deputy
directors. The committee includes leaders in charge and department heads who are responsible for reviewing and auditing the
annual work plans and long-term occupational health strategies and occupational disease prevention and reporting on safety
matters to the Board of Directors and performance appraisal department.International Women's Day activities on March 8
97 98LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Safety Management Organization Structure of Luzhou Laojiao The Company has established a safety responsibility system ensuring 100% implementation of the List of Responsibilities for
Work Safety Management and the List of Responsibilities for Safety Production Posts by having teams at all levels sign safety
target liability statements. We require teams at all levels to sign safety target liability statements every year our assessment
team evaluates how well departments meet their safety goals. In 2024 all departments (units) successfully achieved their safety
Work Safety Committee targets.Work Safety Committee Office Objectives and progress of work safety management
(located in the Work Safety Management Center)
Objective Progress in 2024 During the reporting period
Process Occupational
Electrical
Healthcare Fire Safety Equipment Instrument
Infrastructure we have the GB/T 45001-2020/
Safety The minor injury rate per 1000 Achieved
obtained
Safety Safety Safety people is less than 2‰ ISO 45001 Occupational Health and Safety
Committee Professional CommitteeCommittee Committee Professional
Professional
Committee Committee Management System Certification.No serious injury or above safety Achieved
accident
No fire liability accident Achieved
100% pass rate of safety Achieved
education and training
100% special operation and Achieved
special equipment operators
working with certificates
Safety Risk Management
Luzhou Laojiao has strengthened its safety management by implementing a dual prevention mechanism ensuring effective
hazard identification and risk control. We have compiled 1371 safety management checklists across nine key areas including
legal responsibilities safety operations and risk mitigation. The Company also developed the Work Safety Digital Management
Platform which includes 14 standardized management modules and 98 application functions. In 2024 we enhanced safety
inspections by introducing a three-level QR code system tracking responsibilities at "regional" "departmental" and "individual"
levels. With monthly or weekly safety checks we conducted 399320 patrol inspections throughout the year. All identified risks
were addressed using a closed-loop management system ensuring clear accountability and continuous risk control.Employees play a key role in identifying and reporting safety risks. Through the "Safety Management Digital Platform—Quick
Reporting of Hidden Dangers" they can submit hazards internally. Once verified safety teams assign corrective actions to
responsible personnel ensuring timely resolution. In 2024 employees reported 5029 safety hazards all of which were resolved
maintaining a 100% rectification rate. To encourage proactive reporting 508 employees received a total of RMB 252150 in cash
rewards.In addition Luzhou Laojiao continues to strengthen emergency planning expand response training and build full-time
firefighting teams to minimize safety management risks. In 2024 we conducted one comprehensive drill for disaster prevention
and mitigation one drill for work safety accidents and stability 72 emergency response training sessions (covering poisoning
suffocation fire response flood control etc.) 128 on-site drills for specific emergency handling and 81 tabletop drills. These
initiatives covered all employees with more than 6500 participants.Safety management organizational structure
99100
Party Committee Work Department
Board Office
General Manager Office
Discipline Inspection and Supervision Office
Audit Office
Labor Union Office
Security Department
Enterprise Management and Development Center
Financial Management and Operation Center
Sales Company
Assets and Engineering Management Center
Pinchuang Technology Company
Legal Risk Control Center
Distillery Company Digital Development Center
Red Sorghum Company Human Resources Management Center
Health Care Baijiu Company Training Center
Corporate Culture Center
Museum
Supply Chain Management Center
Packaging Material Procurement and Supply Center
Quality Management Center
Work Safety Management Center
Ecological Environment Protection Center
Chief Engineer's Office
Brand Image Management Center
Intellectual Property Protection Center
Tasting Innovation CenterLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Safety management measures
Case Special safety training on "Implementing Safety Responsibilities and Escorting Enterprise
Work safety Fire control management Development"
● Implemented the "Six Major Actions" to improve the safety ● The merging transformation and upgrading of fire control On July 1 2024 the Company invited experts from the Department
quality of all employees. During the reporting period the rooms have been completed. The linkage control manual of Emergency Management of Sichuan Province to conduct a
Company carried out 97 safety training and legal learning control alarm signal display and other functions of a total of special training session on "Implementing Safety Responsibilities
sessions improved governance processes to prevent 9 fire control rooms in each area are integrated into 3 general and Escorting Enterprise Development." Over 160 participants
risks and organized 211 emergency plan drills; fire control centers. 44 full-time on-duty personnel in the fire attended the session in person and more than 300 grassroots
● Installed various safety devices in baijiu warehouses control room have been reduced and firefighting facilities and employees participated online. The training covered General
filling rooms and other areas to ensure explosion-proof equipment have been connected through the Internet of Things Secretary Xi Jinping's important views on work safety the reasons
lightning protection and leakage prevention. Emergency for information sharing. Improve the intelligence level of fire behind China's focus on safety the current safety situation and
rescue equipment is provided and regularly tested and alarm system and realize functions such as remote control of countermeasures helping attendees understand their work safety
maintained; fire extinguishing system remote monitoring of on-site status
Special safety training on "Implementing Safety
responsibilities and improve safety management practices. Responsibilities and Escorting Enterprise Development"
Operators of special operations and special equipment analysis of fire facilities and alarm information data;●
are required to work with certificates with strict approval ● During the reporting period the Company carried out
processes for operations and emergency disposal plans. specialized fire prevention and control work established fire
A safety management system for relevant parties is in rescue teams and micro fire stations implemented 144 joint fire
place to standardize the management of contractors and control inspections and 33 abnormal weather patrols provided Case Activities of 119 Fire Publicity Month
lessees. 26 emergency drill guidance services participated in 39 internal
and external emergency rescues and regularly maintained
firefighting facilities. On November 19 2024 Luzhou Laojiao held a commemorative event for the 30th anniversary of the establishment of its full-
time fire rescue team and the 119 Fire Publicity Month at the fire station in Huang'ai Distilling Ecological Park with approximately
Occupational health 200 employee representatives attending. Following the ceremony the Company organized safety management personnel and
volunteer firefighters for post-skill competitions and a public awareness campaign under the theme "Fire Safety for All Life
● The Company organized health promotion activities such as the "Mini Marathon" and mobile health stations implemented Above All" reaching all employees and improving their fire safety awareness and skills.regular employee health examinations distributed protective equipment based on identified hazard factors and set up on-
site warning signs.Safety Culture Development
Luzhou Laojiao places significant emphasis on work safety training regularly conducting sessions on general safety and fire
prevention for all employees. To further raise awareness we also organize Work Safety Month and other safety initiatives.Case Carrying out a series of activities in the "Work Safety Month"
Launching ceremony of 119 Fire Publicity Month
In 2024 Luzhou Laojiao organized a series of activities for "Work Safety Month" aimed at enhancing safety awareness and
management capabilities across all employees. The activities included "Leadership Team Model Learning" "Specialized Training
for All Employees" and "Team Sharing and Presentation" attracting 4922 participants for learning and 4427 participants in
At the same time the Company ensures that contractors follow the same health and safety standards as employees. Contractors
a competition. More than 70 team lectures were held and the Company implemented 8 emergency drills (with more than 250
are required to comply with national and local safety regulations and participate in specialized health and safety training.participants) and 31 special plan drills (with over 1000 participants).Case Contractor safety training
On July 12 2024 the Company invited Jin Zhengping an expert from the China Chemical Safety Association to conduct special
safety management training for contractor management personnel handlers contractors’ unit leaders and safety management
personnel. A total of 170 participants attended the training. Through on-site Q&A and training simulations the session helped
contractors understand safety legal requirements management essentials and performance obligations assisting them in
Emergency drill of "unblocking life passage" Sharing session of "Safety Production Talk" managing safety for the Company's contractors.
101 102LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Foster Diversity and Thrive Alongside Employees
Luzhou Laojiao safety and health-related honor awards in 2024 Occupational Health and Safety
The Company strictly adheres to the Law of the People's Republic of China on Prevention and Control of Occupational Diseases
In January 2024 the Company passed the Recognized as a "National Safety Culture the Occupational Health and Safety Management System Certification and other laws and regulations establishing comprehensive
reassessment as a "Provincial-Level Safety Construction Demonstration Enterprise" management systems for employee health and safety. We provide annual health check-ups for all employees manage occupational
Culture Demonstration Enterprise" in March 2024 health records and conduct regular safety training to raise awareness and prevent occupational diseases. In 2024 health
examinations covered 100% of employees with no suspected occupational disease cases reported.报In 告20期24内
health e员xa工m接ina受tion培s 训cov总er时ed长 with 人均受训时长为
100%29 o7f e0mp7lo0ye.e5s 7小时 no suspected occ8up8atio.9na0l di小sea时se cases reported
"Provincial Safety Culture Construction "National Safety Culture Construction
Demonstration Enterprise" award Demonstration Enterprise" award
Employee occupational health management measures
Work safety of Luzhou Laojiao in 2024
Indicator Unit Data of 2024
● The Company has established comprehensive occupational health records
Number of work-related deaths-employees Person 0 Occupational for employers and employee health monitoring files covering all aspects of
health archives occupational health. Through pilot programs specialized training and intelligent
Number of work-related deaths-contractors Person 0 management management upgrades it has achieved one-stop management for occupational
disease prevention.Proportion of work-related death rate-employees % 0
Proportion of work-related death rate-contractors % 0 ● Reassigned employees with occupational contraindications to suitable roles.Distributed personal protective equipment. Ensured 100% coverage of occupational
Days lost due to work-related injuries-employees Day 320 health examinations in 2024 including 138 pre-job employees 2032 on-duty
employees and 22 off-duty employees;
Days lost due to work-related injuries-contractors Day 30
● Equipped workshops with emergency medical kits for immediate medical support;
Safety investment of Luzhou Laojiao in 2024 Safety training of Luzhou Laojiao in 2024 Occupational ● health The Company implements the principle of "prevention first combining prevention
examination and control" throughout the occupational disease prevention process. It strictly
Data of Data of and protection enforces the "Three Simultaneities" requirement for occupational hazard protection Indicator Unit 2024 Indicator Unit 2024 facilities adopting new technologies processes equipment and materials that
benefit occupational health and worker safety. The Company prioritizes source
Work safety input RMB 1273.26 Number of participants in safety drills / 6500 control in occupational disease prevention by innovatively applying advanced 10000 technologies such as simulation automation and online monitoring thereby
Invested amount of workplace RMB Number of safety drills-employees / 211 improving working conditions reducing labor intensity and minimizing exposure to 2462641
safety and health Insurance 10000 Number of safety drills-contractors / 41 occupational hazards.Coverage rate of employees
with workplace safety and % 100 Total safety training hours-employees Hour 85356 ● Organized a series of occupational health training sessions including those
health Insurance Occupational organized by superior administrative departments. Provided specialized training on
Invested amount of work RMB Total safety training hours-contractors Hour 7034 health workplace injury prevention file management and occupational health in production 20 training
safety liability insurance 10000 processes. Offered on-the-job education programs strengthening employees’
Safety training coverage rate-employees % 100 awareness and skills in maintaining a safe and healthy work environment.Coverage rate of work safety
%100
liability insurance Safety training coverage rate-contractors % 100
103 10405 Create Value and Drive Progress with the Industry
On the path of pursuing enterprise growth and industry progress Luzhou Laojiao has continuously
deepened its supply chain management. Through digital transformation intelligent upgrades and distilling
technology innovation we collaborate closely with industry partners to explore new opportunities for
development.Supply Chain Management Industry LeadershipLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Create Value and Drive Progress with the Industry
Supply Chain Management Supplier management process of Luzhou Laojiao in the full life cycle
A stable supply chain is essential for sustainable business growth. Luzhou Laojiao focuses on enhancing supply chain efficiency
● Conducting comprehensive evaluations of suppliers’ production capacity quality control cost
strengthening supplier collaboration and leveraging digital solutions to integrate resources across the entire supply network. Our
management R&D capability financial health industry position willingness to collaborate and
goal is to build a flexible responsive and well-connected supply chain that meets evolving market demands.commitment to sustainability. Assessing alignment with the Company's strategic culture to collaborate;
Supplier
●
access Requiring packaging material suppliers to hold quality management system certification. Suppliers
Supply Chain Management System handling food-contact materials must provide a food safety certificate and a third-party inspection report compliant with GB 4806 national standards14.Luzhou Laojiao has formulated various management systems including the Procurement Management Measures (Trial) the
Detailed Rules for Supply Chain Collaborative Purchasing Management (Trial) the Detailed Rules for Supplier Database (Trial)
●
the Administrative Measures for Packaging Material Supplier Database and the Detailed Rules for Product Sales and Logistics Combining monthly KPI assessments with annual performance reviews to assess suppliers on quality
Third-party Operation. By continuously refining our supply chain framework we standardize supplier management processes Supplier service and innovation. Adjusting order allocation for the next cycle based on evaluation results;
promote efficiency and transparency and work toward a transparent collaborative and sustainable supply chain system. evaluation ● Continuously monitoring risk management integrity quality safety and environmental performance
integrating sustainability metrics into the annual supplier assessment.Supply chain management structure of Luzhou Laojiao
● Identifying risks related to quality health and environmental impact through internal audits and third-
Level I Procurement Supervision and Management Committee Supplier risk party testing as well as classifying and monitoring ESG risks;
management
Guidance and Procurement Supervision and ● Encouraging suppliers to invest in environmental initiatives to minimize the supply chain’s carbon
Decision-making Management Committee Office footprint.Procurement Supervision and Management Department ● Triggering exit conditions if a supplier fails to meet performance standards or is involved in major
Level II safety violations quality issues illegal activities financial instability or security risks. Assessing and Enterprise Management and Office of Luzhou Laojiao Office of Luzhou Laojiao Supplier withdrawal confirming these issues by relevant departments before instructing business units to terminate the
Supervision and Development Center Distillery Co. Ltd. Sales Co. Ltd. supplier relationship and handling the necessary termination procedures.Management
Procurement Execution Department Supplier management and certifications of Luzhou Laojiao in 2024
Each Department (Unit) Full-time (Part-time) Procurement Personnel
Indicator Unit Data of 2024
Level III Total number of suppliers in the year / 100
Organization and Number of suppliers certified by the ISO 45001 occupational health and safety
Execution Procurement Demand Department management system
/51
Each Department (Unit) Number of suppliers certified by the ISO 14001 environmental management system / 56
Number of suppliers certified by the ISO 9001 quality management system / 65
Luzhou Laojiao pays close attention to building an integrity culture with its suppliers and actively promotes integrity-building
activities. In 2024 we conducted four anti-corruption training and awareness sessions ensuring 100% supplier participation.Additionally all suppliers signed the integrity agreement.
14 G B 4806 national standards: It is a series of national food safety standards issued by the National Health Commission which are mandatory regulations
governing the production and use of food contact materials and products.
107 108LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Create Value and Drive Progress with the Industry
Supply Chain Risk Management
Maintaining a stable and resilient supply chain is essential for operational continuity and competitiveness. Led by the Supply Chain
Management Center we have established a comprehensive risk management system that addresses: procurement contract risks Information risk management
inventory risks stockout risks information risks and emergency planning. The Company continuously optimizes the level of supply
chain risk management. ● Data collection integration: Achieve real-time data collection transmission and sharing through systems like MES18
the production exception management platform EWM system for warehousing and OTB19 system for logistics and
transportation ensuring accurate and timely supply chain information.Supply chain risk management mechanism of Luzhou Laojiao
● Information authority management: Clearly defining the permissions and responsibilities of different users within each
information management system in the supply chain domain ensuring that only authorized personnel can access
Risk management of bidding and procurement contracts and operate relevant information thus preventing information leakage and misuse. At the same time classifying and
categorizing the data in the supply chain information management system setting access permissions based on data
sensitivity and importance to ensure information security.● Luzhou Laojiao strictly follows the Procurement Management Measures (Trial) to ensure clear procurement standards
and standardized processes. In bidding and procurement contracts we explicitly define supplier responsibilities
including product quality delivery timelines after-sales services and liability for contract breaches and compensation
mechanisms to protect the legitimate interests of the Company. Emergency plan
● To address potential supply chain risks detailed emergency plans should be developed with clearly defined
emergency response processes and measures ensuring a rapid and effective response when risks occur. In 2024
Inventory risk management we introduced the Emergency Plan for Peak Season Supply Chain Development ahead of the sales peak securing
production and logistics support to maintain a stable product supply.● Inventory counting: Routine inventory checks help maintain accurate records detect discrepancies early and prevent
errors in decision-making caused by incorrect data.● Inventory monitoring and early warning: The EWM15 system tracks real-time inventory movements storage locations
and quantity changes. Key indicators such as inventory levels turnover rates and quality are continuously monitored.If inventory levels exceed or drop below preset thresholds the system sends alerts to business managers ensuring
timely intervention and risk mitigation.Out-of-stock risk management
● Sales demand planning: By leveraging big data analysis and market research Luzhou Laojiao forecasts market
demand for the next two cycles adjusting production and supply plans to minimize stock shortages.
16
● Planning and scheduling optimization: The Company employs both MTO and MTS17 production models to ensure
timely market demand fulfillment and the continuous supply of core products. Production processes and scheduling
are optimized based on sales demand and production capacity enhancing responsiveness and production efficiency.● Production capacity guarantee: We continuously enhance automation and intelligent manufacturing increase capacity 15 E WM: Extended Warehouse Management.reserves and improve equipment maintenance and management to maintain stable production. 16 MTO order-based production: Make to Order refers to the production model in which enterprises begin manufacturing products only after receiving
customer orders.● Diversified logistics supplier cooperation: We collaborate with multiple logistics providers to utilize road rail water 17 MTS reserve production: Make to Stock refers to the production model where enterprises manufacture products in advance based on market demand
and air transport ensuring flexible resource allocation based on regional needs product types and delivery timelines. forecasts store them in warehouses and deliver goods directly from inventory upon receiving customer orders.This approach reduces reliance on a single supplier and helps mitigate transportation risks effectively. 18 MES: Manufacturing Execution System.
19 OTB: The integration of the three modules—OMS (Order Management System) TMS (Transportation Management System) and BMS (Billing and
management system).
109 110LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Create Value and Drive Progress with the Industry
Digital and Intelligent Supply Chain
Case Luzhou Laojiao's "Code System"
Luzhou Laojiao attaches great importance to supply chain digitalization and has set clear strategic goals in its 14th Five-Year Plan.Guided by the principles of "online data-driven intelligent and ecological" development we drive digital transformation across
upstream and downstream industry chains ensuring logistics visibility and intelligent operations. Through initiatives such as digital In 2018 Luzhou Laojiao officially adopted the "One Product One Code" system and initiated the integration of three codes.production lines information platforms intelligent packaging centers and the "one product one code" management system we This allowed for direct communication with terminals and consumers enabling real-time tracking of sales data and scanning
have significantly improved production efficiency enhanced transparency and strengthened traceability at every stage of the supply results. In 2023 to respond to increasing market competition Luzhou Laojiao undertook a digital system reform for all
chain. In 2024 Luzhou Laojiao was recognized as an "Intelligent Manufacturing Benchmark Enterprise" by the China Electronics products upgrading the three-in-one system to a five-in-one system. This included associating the pallet code box code
Standardization Institute under the Ministry of Industry and Information Technology. bottle code and inner cap code with the product thus enabling comprehensive digital management of the supply chain and
significantly improving management efficiency. In 2024 the Company empowered its factory to establish a closed-loop data
Digital and intelligent supply chain process of Luzhou Laojiao security management system using the "One Product One Code" system eliminating data security risks and enhancing the
management of code lifecycle data security.Phase I Phase II Phase III
(2005-2009) (2011-2020) (2021-Present)
Supply Chain Empowerment
Became the first company in China to Focused on standardization and Leveraged the Intelligent Packaging
integrate upstream and downstream digitalization of supply chain processes. Technology Transformation Project Luzhou Laojiao is committed to strengthening its supply chain capabilities through active collaboration with suppliers. We provide
supply chains including packaging Established a collaborative production to achieve full automation and digital platforms for knowledge sharing and technical exchanges by hosting regular logistics performance meetings peak season
materials logistics and filling with and marketing system. Restructured management of the supply chain guarantee kick-off meetings inventory check meetings special training sessions technical exchange meetings and supplier
Luzhou Laojiao at the center. the logistics network and implemented creating an intelligent supply chain. conferences. These initiatives allow suppliers to showcase products exchange experiences and share industry insights
a comprehensive information system fostering mutual growth across the supply chain. In 2024 we conducted 46 hours of ESG-related training covering 48 suppliers
covering the entire industry chain. on key topics such as work safety resource conservation and anti-corruption.Case Luzhou Laojiao Intelligent Packaging Center
In 2024
Luzhou Laojiao Intelligent Packaging Center the industry's first "Lighthouse Factory"—standard facility was established with we conducted covering
an investment of RMB 2.136 billion. The center uses AI technology for quality inspection introduces digital twin technology
to simulate real-world operations and optimize design and employs cloud computing for data storage analysis and sharing. 46 hours of ESG-related training on key topics such as 48 suppliers
Additionally the center leverages the Industrial Internet of Things (IIoT) for equipment interconnectivity.work safety resource conservation and anti-corruption
In terms of production processes the Intelligent Packaging Center implements digital intelligence in key stages such as material
loading filling boxing coding and quality inspection. This has greatly improved both production efficiency and product quality
and has enabled the integration intelligence and informatization of baijiu production packaging warehousing and logistics
distribution. Furthermore the center supports enterprise decision-making by using big data analysis predictive maintenance Relevant measures of the Company to enhance suppliers' capability
and intelligent decision support setting a new benchmark for the intelligent transformation of the baijiu industry.● Organizing supplier visits to leading enterprises to learn best practices and improve operational management.● Inviting top industry experts to provide training and case studies offering insights into delivery management and
process optimization.● Recommending advanced equipment manufacturers and providing suppliers with more reference and guidance
for improving their own equipment.● Sharing management experience and using practical case studies to address product quality issues fostering
continuous improvement.● Assisting suppliers in implementing visual inspection automation and intelligent packaging equipment reducing
Luzhou Laojiao Intelligent Packaging Center manual labor improve product quality and enhancing delivery quality ultimately raising industry-wide packaging
standards in the baijiu sector.
111 112LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Create Value and Drive Progress with the Industry
Industry Leadership
Case Luzhou Laojiao Packaging Material Supplier Conference in 2024-lighthouse leads the future
of manufacturing As a leader and innovator in the baijiu industry Luzhou Laojiao promotes standardization and sustainable growth by contributing
to the formulation of national and industry standards exploring the boundaries of baijiu distilling techniques participating
in scientific research and development projects engaging in industry-academia-research cooperation and facilitating the
In 2024 Luzhou Laojiao held its annual Packaging Material Supplier Conference where the Company shared with suppliers the
conversion of scientific and technological achievements.current state of development innovative practices best experiences challenges and future trends in the alcoholic beverage
packaging industry. The conference also aimed to explore how to achieve innovation-driven development digital intelligence- Luzhou Laojiao's participation in the formulation of industry and national standards
powered manufacturing and lean quality assurance.The conference emphasized that in 2024 the Company conducted joint commissioning and testing of the intelligent packaging ● Liquor Quality Requirements-Part 4: Sauce-flavored Baijiu (GB/T 10781.4-2024)
center and introduced new requirements for various nodes in the supply chain. The Company urged packaging material ● Implementation Guide for Green Supply Chain Management of Green Manufacturing
suppliers to increase investments in product research and development production management and quality inspection based Enterprises (GB/T 43902-2024)
on lessons learned from the test line's filling production. The goal is to align with the Company’s intelligent manufacturing
● General Rules for Restricting Overpackaging of Commodities (GB/T 31268-2024)
development building an integrated end-to-end supply chain ecosystem. The conference also shared and discussed National/
●
topics such as packaging material guarantees informatization implementation progress on intelligent packaging centers Local Industrial Water Quota Part 15: Baijiu (GB/T 18916.15-2024)
and packaging material automation achievements making further strides in the exploration and systematic planning for the standards ● General Technical Requirements for Bottled Baijiu Filling Line (GB/T 44832-2024)
harmonious development of both suppliers and the Company. ● Guidelines for Material Labelling in Food Production (GB/T 44135-2024)
● Technical Specification for Product Carbon Footprint Assessment of Strong-aroma Baijiu
(DB51/T 3209-2024)
● Greenhouse Gas Emissions Accounting and Reporting Requirements for Baijiu Enterprises
Association (T/CBJ 2206-2024)
standards
● Specification for Carbon Footprint Assessment of Baijiu Products (T/CBJ 2207-2024)
● Production Process Control Requirements for Flexible Packaging Printed Products of Green
Industry Printing Foods (CY/T 274-2024)
standards
● Green Factory Evaluation Requirements for Baijiu Industry (QB/T 5935-2024)
Project approval of Luzhou Laojiao provincial-level projects in 2024
Luzhou Laojiao Packaging Material Suppliers Conference in 2024
Project Name Project Type Special Funds
Study on the Structure and Metabolic Function of High- Second batch of provincial projects
Temperature Daqu Fermentation Flora Based on Multiomics in 2024 RMB 200000
In addition Luzhou Laojiao actively implements a "localized procurement" strategy leveraging regional resources to support Development and Efficient Utilization Technology of Microbial 2024 local fund project guided by the
Germplasm Resources for Solid Distilling central government RMB 2 millionlocal economic growth. In 2024 60% of the Company's suppliers were Luzhou City (local) and local suppliers accounted for
over 90% of the total annual procurement settlement and suppliers from the baijiu industry park contributed to 85% of the total Study on Environmental Factors and Influencing Mechanism of First batch of provincial science and
annual procurement amount. Construction of Functional Microbial Community in Cellar Mud technology plans in 2025 RMB 200000
Luzhou Laojiao project acceptance in 2024
Project Name Project Type
In 2024
Coupling Utilization Technology of Thermochemical Energy and Recycling of
local suppliers accounted for over and suppliers from the baijiu industry park contributed to Brewing Waste National Key R&D Program
Study on the Expression Regulation of Key Genes of Characteristic
90% of the total annual 85% of the total annual procurement amount Microorganisms in Chinese and Japanese Distilled Yeast and Its Quality Sub-topics of National Key R&D Program
Improvement in China
procurement settlement
Construction of Sichuan Solid Distilling Technology Innovation Center Special funds for local science and technology development guided by the central government
113 114LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Create Value and Drive Progress with the Industry
Industry-university-research cooperation of Luzhou Laojiao
Case "Coupled Utilization Technology for Thermochemical Energy Conversion and Resource
Jointly building a joint research center Cooperating to cultivate high-end talents Recovery from Distilling Waste" project successfully passed the national acceptance
In 2024 Luzhou Laojiao in collaboration with Tsinghua University Sichuan University Harbin Institute of Technology China
The Company has carried out university-enterprise Luzhou Laojiao has deepened its cooperation with Agricultural University Southwest University and other institutions successfully passed the national acceptance for the key
strategic cooperation with Tsinghua University and other universities in joint training for master's and doctoral R&D project "Coupled Utilization Technology for Thermochemical Energy Conversion and Resource Recovery from Distilling
universities. Eight joint research centers have been degrees. It has hired 17 part-time tutors from universities Waste" under the Ministry of Science and Technology. This project is the first national key R&D initiative in the liquor industry
established focusing on cutting-edge technologies and trained 88 postdoctoral fellows 32 doctoral students led by an enterprise.such as intelligent distilling and green distilling. This and over 200 master's students thereby advancing
collaboration has effectively promoted the application of the cultivation of high-level interdisciplinary talents. In The project has successfully overcome two key technologies: coupling thermochemical energy with drying and the distillation
technologies in related fields. 2024 40 new postdoctoral fellows joined the Company’s process as well as coupling thermochemical soil improvement materials with green planting. It has developed equipment for the
postdoctoral research workstation and there are currently coupled utilization of thermochemical energy and resources from distilling waste contributing 13 invention patent applications
17 doctoral candidates and 37 master's students enrolled. 20 high-quality academic papers and 5 enterprise standards and 3 local standards to the industry.
Amid a new wave of technological advancement and industrial transformation Luzhou Laojiao has made major breakthroughs The project team has built the industry's first "Demonstration
in intelligent production solidifying its leading position in smart distilling within the baijiu industry. This year Luzhou Laojiao Project for Coupled Utilization of Energy and Resources
announced its "Top Ten Scientific and Technological Innovation Achievements from 2015 to 2024." from Distilling Waste" with an annual processing capacity of
100000 tonnes. The project achieved a recycling rate of over
90% for distilling waste and more than 95% for gas energy
Top Ten Scientific and Technological Innovation Achievements from 2015 to 2024 thus filling a technical gap in the thermochemical treatment
of distilling waste. This project has realized a material cycle
Research and Application of Brewing Development and Application of Key Technologies for High- of "distilling waste - biochar - sorghum planting - distillation
Microorganisms Comfort Tea-Infused Baijiu production" promoting the sustainable development of
industrial and agricultural cycles and accelerating the green
R&D and Application of Cellar Mud
Replication Technology R&D and Application of Sauce-Aroma Baijiu Technology transformation of the entire distilling industry. Waste resource recovery and circular utilization
R&D and Application of Intelligent Distilling Coupled Utilization Technology for Thermochemical Energy
Technology Conversion and Resource Recovery from Distilling Waste
R&D and Application of Intelligent Baijiu Research and Application of Baijiu Science Popularization
Yeast Production Technology Culture Case Distilling microbial strain resource bank
Research and Application of Intelligent R&D and Application of Supply Chain Technology Based on
Packaging Technology Digital RMB Luzhou Laojiao in collaboration with the Institute of Microbiology Chinese Academy of Sciences Jiangnan University and other
leading institutions utilized modern molecular microecology metabolomics and biomics culture technologies to systematically
Among these achievements three key innovations have tackled major technological challenges in precise baijiu production. analyze the microecological characteristics of distilling in 1573 national treasure cellar groups. By establishing an industry-
These breakthroughs have filled the gap in fully automated production technology and equipment in the distilling industry. They leading resource library of distilling microbial strains the research team successfully discovered seven new microbial species
also set a new standard for intelligent and precise distillation of strong-flavored baijiu driving technological advancement and conducted systematic identification and flavor analysis of thousands of strains completed whole-genome sequencing of
industry transformation. 210 strains and performed diversity analysis of thousands of distilling samples. The research first revealed the microbial
fermentation law of "zoned co-fermentation and synergistic aroma production" and clarified for the first time the microecological
"R&D and Application of "R&D and Application of Intelligent "Research and Application of mechanisms of "mud cellar fragrance" and "old cellars produce high-quality baijiu." Based on this the "multi-bacterial co-
Intelligent Distilling Technology" Baijiu Yeast Production Technology" Intelligent Packaging Technology" fermentation" cellar mud cultivation technology was developed allowing for the precise replication of distilling microecology.This breakthrough marks the Pioneering the three-dimensional The Company pioneered a high- These innovations have been successfully
first achievement in full-process fermentation mode of Daqu speed rotary precision-positioning applied in the 20000 cellars at the
precision distilling technology. Luzhou Laojiao has independently fully automated baijiu boxing Huangqi Distilling Ecological Park. The
The complete set of intelligent developed 8 intelligent systems system and launched a supplier base liquor quality is comparable to that
distilling equipment developed has automating the entire baijiu yeast digital twin platform. In a landmark produced in cellars over 30 years old and
been successfully implemented production process. The Company development the industry’s first the results were recognized as being at
at a 100000-tonne per year has established the largest and smart packaging center built to the "internationally leading level" by the
distilling base setting an industry most intelligent Daqu production the “Lighthouse Factory” standard expert group of the China National Light
benchmark for intelligent distilling. line in the industry. officially commenced operations. Industry Council. Luzhou Laojiao won
the first prize at the 2023 Sichuan Patent
Award and the Excellence Award at the New microbial species
2024 China Patent Award.
115 11606 Preserve Cultural Heritage and Advance with Society
Luzhou Laojiao plays an active role in social responsibility making meaningful contributions through
practical actions. While preserving and passing down its brand heritage the Company works closely with
various sectors to promote cultural development and social harmony.Community Engagement Inheriting Baijiu CultureLUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Preserve Cultural Heritage and Advance with Society
Community Engagement
While pursuing excellence in baijiu production Luzhou Laojiao remains committed to corporate social responsibility. Through
initiatives in rural revitalization environmental protection and cultural preservation the Company contributes to social stability
and development while enriching its own brand identity and cultural value. Ecological Assistance
In November 2024 the Company allocated RMB 70000 to add nine 2.5-cubic-meter
Rural Revitalization detachable garbage trucks in Hongyuan County establishing a comprehensive village-wide
waste collection and transportation network. This effort aimed to create a clean beautiful and
comfortable living environment for the villagers.In 2024 Luzhou Laojiao resolutely implemented the national rural revitalization strategy and followed directives from the
provincial and municipal party committees and governments regarding foundational and targeted assistance. Leveraging its
financial technical talent and management advantages the Company invested RMB 3.5439 million in various assistance Cultural Assistance
projects and carried out more than 10 high-quality programs in terms of industrial educational employment consumption
talent support and rural cultural development benefiting over 4460 villagers. The Company focused on consolidating poverty The Company also invested RMB 95000 to support festival and cultural activities in Guntang
alleviation achievements and effectively connecting them with rural revitalization efforts. Village Hongyuan County promoting the widespread dissemination and orderly inheritance of
intangible cultural heritage such as Baiwang Folk Singing and Instrumental Performance and
Tibetan opera. These efforts actively promoted traditional local and Tibetan cultures enriching
In 2024 the spiritual and cultural lives of the herders.the Company invested benefiting over
RMB 3.5439 million in various assistance projects 4460 villagers
Luzhou Laojiao rural revitalization support activities
Industry Assistance
The Company invested RMB 1.065 million to assist Hongyuan County in establishing the "Yak Rural Cultural Festival in Guntang Village Hongyuan County
Grassland Enterprise Store" on the Douyin live streaming platform. During the live broadcast
sales exceeded RMB 1 million effectively boosting the county's yak industry. Additionally
the Company proactively engaged in "bulk group purchases" and "buy-to-donate programs" Public Welfare Assistance
spending RMB 1.7606 million on local specialty products such as yak milk powder and jerky
and RMB 220000 on highland specialty rice from Xiangtian Village. These actions strengthened Upholding the principle of "doing practical things for the people" the Company addressed
production-to-sales partnerships in rural revitali·zation strengthened the collective economy over 20 urgent issues including medical care and removal of frozen soil for villagers in
and increased farmers' incomes. The Company expanded its sustainable empowerment model assisted areas. An investment of RMB 50000 was made to purchase quality coal for 100
distributing 5000 chicks in Xiangtian Village and helping 294 households generate approximately impoverished families and over RMB 100000 was spent on New Year gifts for more than
RMB 500000 in additional income. 400 households ensuring villagers had a warm winter. Furthermore the village work team
actively fulfilled its duties completing safety inspections for all impoverished households
Talent Assistance assisting village committees in winterizing water pipes and supporting the consolidation of the
"Three Guarantees" (housing education and healthcare) and drinking water safety effectively
To encourage rural students to pursue their studies the Company provided RMB 160000 in implementing various people-friendly measures.scholarships to 32 college freshmen from Guntang and Xiangtian villages in 2024 helping
these students realize their university aspirations. In Xiangtian Village a "charitable teaching"
activity was launched offering school uniforms and support to underprivileged students aiming
to break the cycle of intergenerational poverty. Committed to the critical task of "combating
school dropout rates and ensuring education equity" the Company invested RMB 266700
to organize summer camp activities for 32 teachers and students from Hongyuan County.An investment of RMB 100000 was made to implement a youth talent training program in
Hongyuan County where experts conducted e-commerce training and practical sessions for
over 50 entrepreneurial youths cultivating a skilled locally rooted workforce.
119 120LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Preserve Cultural Heritage and Advance with Society
Public Welfare Initiatives
In 2024 the Company demonstrated its commitment as a state-owned enterprise by actively engaging in public welfare efforts Case "Charity Bazaar to Deliver Love and Help the Disabled" volunteer service activity
including donation initiatives such as “Small Backpacks Big Love” and the “Pillar Project” as well as programs like the “LuzhouLaojiao Scholarship” the “Luzhou Laojiao Golden Chalk Award” and the “Luzhou Laojiao & University of Electronic Science From October 16 to 17 2024 the Luzhou Laojiao Youth League Committee in collaboration with the Jiangyang Xiangyangand Technology of China Education Development Fund.” These efforts aim to recognize outstanding educators and support Comprehensive Service Center for the Disabled jointly organized a volunteer service activity titled "Charity Bazaar to Deliver
the growth of promising students. The Company also organized a wide range of volunteer activities including charity sales Love and Helping the Disabled." A total of more than 360 handcrafted items were sold raising over RMB 7300. Additionally
voluntary blood donations and tree planting. Over the year 2664 employees participated in 120 volunteer events contributing more than 200 pieces of clothing and over 60 books were donated. After the event all proceeds and donations were handed
more than 1200 service hours in total. During the reporting period the Company’s total charitable investment amounted to RMB over to the Xiangyang Comprehensive Service Center for the Disabled providing tangible assistance to the disabled community
11.49 million. improving their quality of life and promoting broader societal attention and support for the cause of people with disabilities.
In 2024
2664 volunteers engaged 120 volunteer service activities held
Volunteer service activity for charity sale
Total volunteer service hours The Company's total investment
exceeded in public welfare amounted to
1200 RMB 11.49 million Case Meeting in Spring to Contribute to the National Ecological Garden City by Planting Trees
On March 12 2024 Luzhou Laojiao organized over 50 young volunteers for a tree planting activity "Meeting in Spring to
Contribute to the National Ecological Garden City by Planting Trees" effectively promoting ecological civilization and contributing
the youthful energy of Luzhou Laojiao to the comprehensive development of the National Ecological Garden City in Luzhou.Case Supporting Luzhou’s “Small Backpacks Big Love” public welfare initiative
In response to Luzhou’s “Small Backpacks Big Love” initiative the Company supported children from underprivileged families
who demonstrate academic motivation resilience and confidence by donating RMB 100000 in January 2024 to the Luzhou
Branch of the Sichuan Poverty Alleviation Foundation a legally registered public welfare organization.Case Donation to the University of Electronic Science and Technology of China Education
Development Foundation
To foster collaborative development and mutual benefit between the Company and academia Luzhou Laojiao entered into a Volunteer tree planting activitydonation agreement with the University of Electronic Science and Technology of China in 2023 to establish the “Luzhou Laojiao& University of Electronic Science and Technology of China Education Development Fund.” In accordance with the agreement
the Company donated RMB 2 million to the University’s Foundation in 2024 to reward exceptional teachers and students. In 2024 Luzhou Laojiao
received the "Compassionate Charity
Award" honorary medal from the Gansu
Case Donation to the “Luzhou Laojiao Hongzhang Teaching and Scholarship Fund” at Luzhou High Provincial Charity Federation
School
named "Outstanding Donor recognized as "Top Ten PublicTo advance education in Luzhou and embody its corporate social responsibility of “funding education and giving back to the Enterprise" by Luzhou City Welfare Enterprises in Sichuan"community” the Company donated RMB 810000 to Luzhou High School in 2024 under the “Luzhou Laojiao Hongzhang Sichuan Province by Sichuan DailyTeaching and Scholarship Fund” agreement signed in 2021.
121 122LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Preserve Cultural Heritage and Advance with Society
Corporate Philosophy Slogan
Inheriting Baijiu Culture Growing with society
Thriving with nature
Coexisting with humanity
Luzhou Laojiao as an outstanding inheritor of Chinese liquor culture blends ancient distilling techniques with modern innovation
ensuring the legacy of baijiu culture thrives. Beyond preserving traditional craftsmanship the Company actively engages the
public through cultural festivals craft exhibitions and tasting events making baijiu culture more appreciated. By using baijiu as
a cultural bridge Luzhou Laojiao connects past and future tradition and innovation sharing the richness of Chinese culture with
the world.Corporate Philosophy Corporate Spirit
Co-distilling with nature Respect and dedication
Coexisting in harmony Innovation and excellence
Shaping Brand Culture
Guided by the corporate philosophy of "co-distilling with nature coexisting in harmony" the Luzhou Laojiao brand is deeply
rooted in its cultural heritage. From the historic 1573 National Treasure Cellars to its corporate spirit of "respect dedication
innovation and excellence" Luzhou Laojiao integrates tradition with innovation. Dedicated to creating a unique and unparalleled Corporate Mission Core Values
brand culture Luzhou Laojiao continuously refines its brand identity and remains committed to preserving and sharing the Wherever Chinese people go Inherit culture Continuously innovate
essence of Chinese baijiu culture globally. let them savor Luzhou Laojiao Focus on customers Create wealth
Corporate Vision
Be a giant in the Chinese Baijiu industry
Be a flagbearer of Chinese Baijiu culture
123 124LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Preserve Cultural Heritage and Advance with Society
Case Luzhou Laojiao Storage Ceremony in 2024 Case Luzhou Laojiao Floating Museum
On March 11 2024 in Fenghuang Mountain Luzhou City Sichuan Province the senior management team of Luzhou Laojiao In 2024 Luzhou Laojiao launched the innovative cultural project "Floating Museum." Leveraging the brand resources of the
together with Cultural Ambassador Jackie Chan and over 1000 guests as well as millions of online viewers jointly held the Luzhou Laojiao Museum the Company held 86 colorful cultural events in 25 major cities across China featuring four core
Storage Ceremony for National Cellar 1573. This ceremony celebrates the 700-year milestone of the uninterrupted transmission activities: museum exhibitions lecture halls cultural interactions and banquets. The initiative successfully showcased the
of traditional distilling techniques in Luzhou Laojiao. Through sacrificial rituals sealing and other activities it inherits and brand's cultural resources and historical legacy facilitated culture-driven sales promoted product sales across the entire range
continues the traditional wine culture of Luzhou showcasing Chinese wine rituals. The ceremony not only reinforced the brand attracted large numbers of consumers and significantly boosted brand influence and loyalty.image of Luzhou Laojiao as "the originator of strong aroma enduring through time" but also launched two commemorative
limited-edition products—Qilin Qi and Strong Aroma 700 Years representing the innovative IP of China’s strong aroma baijiu
culture. Additionally through multi-angle and multi-channel communication strategies and with the support of influential
guests such as Jackie Chan the ceremony generated over 440 million impressions. It dominated trending topics on Weibo
topped Douyin's recommendation list and reached 9.6 million people through live streaming achieving outstanding cultural
communication results and social influence.Luzhou Laojiao Floating Museum
Luzhou Laojiao Storage Ceremony in 2024
Case The 8th China Liquor City · Luzhou Laojiao Culture and Art Week at the 2024 International Case 2024 Luzhou Laojiao "Cellar Master Festival" activity
Poetry & Liquor Culture Conference
In 2024 Luzhou Laojiao successfully held the "Cellar Master Festival" in Chengdu Xi'an Qingdao Guangzhou and other cities.From September 11 to 17 2024 the 8th China Liquor City · Luzhou Laojiao Culture and Art Week was grandly held in Luzhou The event featured an intangible cultural heritage fair sports interaction zones immersive experiences such as the 700-year
Shanghai and other locations. The event brought together over 300 domestic and international guests from fields such as hand-painted scroll and 360° panoramic screen performances effectively combining entertainment with cultural engagement.poetry prose novels painting and music including renowned writers like Jidi Majia and Alai as well as literary representatives The festival attracted a large number of consumers deepening their understanding of the "Cellar Master Festival" IP and the
from South Africa France and other countries. Through a series of vibrant literary and cultural exchange activities including identity of the cellar masters fostering greater interaction and harmony between the brand and consumers. Furthermore
poetry recitations theme painting exhibitions and symphony concerts the Art Week not only showcased Luzhou's profound leveraging celebrity influence regional opportunities and the company’s extensive membership base and media presence
historical and cultural heritage but also promoted dialogue between Chinese and international poetry cultures further enhancing each "Cellar Master Festival" event attracted over 12000 participants on average with more than 8000 new members. The
the global influence of the Luzhou Laojiao brand. The event attracted thousands of participants both online and offline with total online exposure and views surpassed 100 million and 119 million respectively while the overall communication reach
over 47 million news exposures successfully establishing Luzhou as a city renowned for poetry and liquor culture achieving a exceeded 219 million. The event garnered numerous awards in the advertising industry achieving both increased brand visibility
multifaceted impact on cultural inheritance brand enhancement and social resonance. and positive word-of-mouth.Luzhou Laojiao Culture and Art Week in 2024 "Cellar Master Festival" activity of Luzhou Laojiao
125 126LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Preserve Cultural Heritage and Advance with Society
Inheriting Cultural Heritage
Case Luzhou Laojiao joins hands again with "China's Intangible Cultural Heritage" program
Luzhou Laojiao carries forward a profound and unique cultural legacy. The "1573 National Treasure Cellars" which have
been operational for 451 years and the "Traditional Distilling Techniques of Luzhou Laojiao" passed down for over 700 years
represent the Company's "two living national treasures." On August 10 2024 the second season of "China's
Intangible Cultural Heritage" a cultural program exclusively
sponsored by Luzhou Laojiao was launched. The
● In 1996 the State Council designated the "1573 National Treasure Cellars" as a "National program following the creative concept of "ideology + art
Key Cultural Relics Protection Unit" earning it the title of "National Cellars". + technology" showcases the inheritance and innovative
development of intangible cultural heritage projects in the
● In 2006 the National Cultural Heritage Administration of the People's Republic of China new era. In the first Sichuan episode of the program the
"1573 included the Luzhou Laojiao "1573 National Treasure Cellars" in the Tentative List of World
National traditional distilling techniques of Luzhou Laojiao were
Treasure Cultural Heritage Sites as a "living cultural relic" for baijiu distilling. featured alongside Emei martial arts Sichuan figured
Cellars" ● In 2013 Luzhou Laojiao's Old Cellars with more than 100 years of history along with 16 satin Daoming bamboo weaving and other ICH projects
ancient distilling workshops from the Ming and Qing Dynasties and three natural liquor allowing audiences to experience the vibrant charm of Luzhou Laojiao joins hands again with "China's Intangible
storage caves (Chunyang Cave Longquan Cave and Zuiweng Cave) were included as intangible cultural heritage through the camera. Cultural Heritage" program
"National Key Cultural Relics Protection Units".As a prominent representative of intangible cultural heritage in the baijiu industry Luzhou Laojiao once again joined forces with
"China's Intangible Cultural Heritage" Season 2 to promote the unique charm and deep roots of traditional Chinese culture. The
● The "Traditional Distilling Techniques of Luzhou Laojiao" originated in the Qin and Han program wonderfully narrates the stories of the inheritance and innovation of various ICH projects allowing the audience to
"Traditional Dynasties and were refined and perfected across the Yuan Ming and Qing Dynasties.Distilling deeply experience the enduring vitality and time-honored renewal of intangible cultural heritage while enjoying the cultural feast.Techniques Passed down through 24 generations these techniques have been continuously inherited
of Luzhou for 700 years and are known as "living skills" in the distilling industry. In May 2006 as a
Laojiao" representative of strong-aroma baijiu the technique was included in the first batch of National
Representative Works of Intangible Cultural Heritage.Honors of Luzhou Laojiao cultural heritage inheritance in 2024
"National Treasure Journey: Experiencing Living
Case "Moonlight of Spring River" China Liquor City · Intangible Cultural Heritage Night Intangible Cultural Heritage" won the title of Awarded as the "National Intangible Cultural
"Outstanding Case of Integration of Intangible Heritage Productive Protection Demonstration
Cultural Heritage and Tourism" Base (2023 to 2025)"
In 2024 celebrating the 700th anniversary of the uninterrupted inheritance of traditional distilling techniques Luzhou Laojiao
held the "Moonlight of Spring River" China Liquor City · Intangible Cultural Heritage Night in Luzhou a city of baijiu. This event "Living Two National Treasure: The Strong
Fragrance of Chinese Liquor Culture" won the Included in the "Double Pilot" List for Cultural featured five first-batch national intangible cultural heritage techniques including the traditional distilling techniques of Luzhou
nomination for "Top Ten Cultural Brands of State- Heritages in Sichuan Province
Laojiao Peking Opera Huizhou ink Jingdezhen porcelain making and Wudang martial arts. Through immersive interactive owned Enterprises in Sichuan Province"
experiences and exhibitions at the intangible cultural heritage fair alongside performances blending classic Chinese culture
with contemporary trends the event vividly showcased the depth and rejuvenation of intangible cultural heritage. It successfully Officially certified as the "Origin of China's Rated as "Excellent" in the re-evaluation of
established Luzhou Laojiao as a cultural hub for displaying China's baijiu intangible cultural heritage techniques bringing the Strong-aroma Baijiu" Sichuan's Intangible Cultural Heritage Protection
enduring legacy of China’s intangible cultural heritage into the modern era. and Inheritance Bases
"Moonlight of Spring River" China Liquor City · Intangible Cultural Heritage Night Completion of the stone tablet "Origin of China's Strong-aroma Baijiu" at the Guojiao Plaza
127 128LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Appendices
Appendices Sections Laws and Regulations Internal Systems
Produce greenly in harmony with the environment
List of ESG Policies and Regulations Followed Responding to Ecological Environment Protection Management System
Climate Change Carbon Emission Management System
Environmental Protection Law of Environmental Management Manual
the People's Republic of China
Sections Laws and Regulations Internal Systems Green Operation
Collection of Environmental Protection Management Systems
Regulations of Sichuan Province Environmental Protection Responsibility System and
on Environmental Protection
Operate with Integrity and Uphold Shared Responsibility Assessment Management System
Water Resources Water Law of the People's
Articles of Association Management Republic of China
Energy Management System
Company Law of the People's Rules of Procedure for General Meeting of Shareholders Packaging Material
Republic of China Management Design Standard for Non-Woven HandbagsRules of Procedure for the Board of Directors
Corporate Securities Law of the People's
Governance Republic of China Rules of Procedure for the Board of Supervisors
Organic Production Manual
Sustainable
Guidelines for the Articles of Information Disclosure Management System
Agriculture Technical Manual for Identification Prevention and Control of
Major Diseases in Organic Sorghum Bases
Association of Listed Companies Investor Relations Management System
Craft with excellence and grow together with customers
Compliance Management Measures
Metrological Inspection Specifications for Net Content of
"Three Early Warnings and Three Cards" Integrity Alert Mechanism Packaged Finished Spirits
Regulations on Management of Employee Integrity Chief Quality Officer System for Gridding of Industry Chain
Measures for Integrity Review in Official Selection and Appointment Qualification Certification System for Quality Practitioners in the
Industry Chain
Interim Provisions on Middle-Level Official Accountability
Logistics Enterprise Quality Manual
Several Provisions on Middle-Level Official Integrity Compliance
Product Quality Opinions on Quality Infrastructure Facilitating the Linkage
Business Official Management Measures and Safety Improvement of Industrial and Supply Chains
Ethics Administrative Measures for Tangible and Monetary Gifts Quality Manual of Packaging Material Suppliers
and Anti-
corruption Administrative Measures for Integrity Supervisors (Trial) Quality Manual of Distilling Raw and Auxiliary Materials
Detailed Rules for the Supervision of the Discipline Inspection Suppliers
Committees of Primary-Level Party Organizations (Trial) Quality Manual of Packaging Enterprises
Administrative Measures for Letters and Visits Reporting Quality Manual of Logistics Enterprises
Basic Standards for Enterprise Internal Control Quality Manual of Product Distribution Enterprises
Guidelines for Evaluation of Enterprise Internal Control
Guidelines for Audit of Enterprise Internal Control Food Safety Law of the People's HACCP Plan
Food Safety Republic of China
Assurance Food Safety Protection PlanAdministrative Measures for Food
Network and Information Security Management System (Trial) Recall Measures for Food Safety Risk Assessment
Internet Access Behavior Management Specification
After-sales Service Management Measures
Information Detailed Rules for the Use and Management of IT Terminal
Excellent Customer
Equipment Service Emergency Plan for Market Abnormal Information ClassificationSecurity
and Privacy Domain Name Management Regulations
Protection Computer Room Management Rules
Administrative Measures for System Data Backup
Detailed Rules for Handling Information Security Vulnerabilities
129 130LUZHOU LAOJIAO 2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Appendices
SZSE ESG Indicator Index
Sections Laws and Regulations Internal Systems Dimension No. Topic Corresponding Clause (s) Corresponding Chapter
Advertisement Law of the People's Republic of 1 Responding to Climate Change Articles 21-28 Responding to Climate Change
China
Law of the People's Republic of China on the 2 Pollutant Emissions Article 30 Green Operation
Protection of Consumer Rights and Interests
Responsible
Marketing Interim Measures for the Administration of Measures for Brand Assets Management 3 Waste Management Article 31 Management of Three Wastes and NoiseInternet Advertising
Civil Code of the People's Republic of China Ecosystem and Biodiversity
4 Article 32 Sustainable Agriculture
Anti-Unfair Competition Law of the People's Environmental Proteciton
Republic of China Environmental Compliance
5 Article 33 Green Operation
Management
Intellectual Property Management Manual 6 Energy Utilization Article 35 Energy Management
Patent Management Measures
Intellectual Administrative Measures for the Protection of Trade 7 Water Resource Utilization Article 36 Water Resources Management
Property Secrets
Protection Implementation Measures for Policy Research and 8 Circular Economy Article 37 Packaging Material Management
Management (Trial)
Implementation Measures for Science and Technology
Awards 9 Rural Revitalization Article 39 Community Engagement
Foster diversity and thrive alongside employees 10 Social Contribution Article 40 Community Engagement
Labour Law 11 Innovation-driven Development Article 42 Digital and Intelligent Luzhou Laojiao
Employee Hiring Labor Contract Law
Social Insurance Law 12 Technology Ethics Article 43 NA
Employee Promotion Management Measures
Training and Social 13 Supply Chain Security Article 45 Supply Chain Management
Development Training Management Measures
14 Equal Treatment of SMEs Article 46 NA
Health and Work Safety Law of the People's Republic of Work Safety Responsibility System Product and Service Safety and Product Quality and Safety Food Safety
Safety China 15 Article 47Work Safety Commitment Management System Quality Assurance Excellent Customer Service
Data Security and Customer
16 Article 48 Information Security and Privacy Protection
Privacy Protection
Create value and drive progress with the industry Employee Hiring Employee Training and
17 Employees Article 50 Development Employee Care Health and
Procurement Management Measures (Trial) Safety
Detailed Rules for Supply Chain Collaborative
Purchasing Management (Trial) 18 Due Diligence Article 52 Business Ethics and Anti-corruption
Detailed Rules for Supplier Database (Trial)
Supply Chain Administrative Measures for Packaging Material
Management Sustainability-
19 Stakeholder Communication Article 53 Stakeholder Communication
Supplier Database Related
Detailed Rules for Product Sales and Logistics Third- Governance 20 Anti-Bribery and Anti-Corruption Article 55 Business Ethics and Anti-corruption
party Operation
Emergency Response Plan for Peak Season of Supply
Chain Development in 2024 21 Anti-Unfair Competition Article 56 Business Ethics and Anti-corruption
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