2024 Annual Report of Luzhou Laojiao Co. Ltd.
Luzhou Laojiao Co. Ltd.2024 Annual Report
【April 2025】
12024 Annual Report of Luzhou Laojiao Co. Ltd.
2024 Annual Report
Section I Important Statements Contents and Definitions
The Board of Directors Board of Supervisors directors supervisors and senior management guarantee
that the information presented in this report is free of any false records misleading statements or
material omissions and shall individually and together be legally liable for truthfulness accuracy and
completeness of its contents.Liu Miao responsible person for the Company Xie Hong responsible person for accounting work and
Song Ying responsible person for the Company’s financial affairs (Accounting Supervisor) have
warranted that the financial statements in this report are true accurate and complete.Other directors attended the board meeting to deliberate this report by themselves except the following
directors.Position of directors who
Name of directors who did not Reason for not attending
did not attend the meeting Name of deputies
attend the meeting in person the meeting in person
in person
Lin Feng Director Work Xiong Pingting
Affected by risks uncertainties and assumptions the forward-looking statements concerning business
objectives and future plans made in this report based on the subjective assumptions and judgments of
the future policies and economic conditions may be significantly different from the actual results. Such
statements shall not be considered as virtual promises of the Company to investors and the investors
and relevant persons shall maintain adequate risk awareness and shall understand the differences
between plans forecasts and commitments.In the annual report the potential risks in the operation of the Company have been disclosed. Investors
are kindly reminded to pay attention to possible investment risks.The profit distribution plan approved by the board of directors: based on 1471951503 shares a cash
dividend of CNY 45.92 (tax inclusive) will be distributed for every 10 existing shares held 0 shares of
bonus shares (tax inclusive) and reserves would not be converted into share capital. On January 24
2025 the Company carried out the 2024 interim dividend payout of CNY 13.58 (tax inclusive) for every
10 existing shares held totaling CNY 1998910141.07 (tax inclusive). If the said profit distribution plan
is approved at a general meeting of shareholders the total cash dividend payout for 2024 would be
CNY 8758111442.85 (tax inclusive) accounting for approximately 65.00% of the net profits
attributable to shareholders of the Company in 2024.This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.
22024 Annual Report of Luzhou Laojiao Co. Ltd.
Contents
Section I Important Statements Contents and Defini... 2
Section II Company Profile and Key Financial Resul... 6
Section III Management Discussion and Analysis ..... 12
Section IV Corporate Governance .................... 52
Section V Environmental and Social Responsibility .. 82
Section VI Significant Events ...................... 95
Section VII Changes in Shares and Information abou. 103
Section VIII Preferred Shares ..................... 116
Section IX Information about Bond ................. 116
Section X Financial Report ........................ 122
32024 Annual Report of Luzhou Laojiao Co. Ltd.
Documents Available for Reference
1. Financial statements signed and stamped by the responsible person for the Company the
responsible person for accounting work and the responsible person for the Company’s financial affairs
(Accounting Supervisor);
2. The original of the auditor’s report with the seal of the accounting firm and signed and stamped by
CPAs; and
3. The originals of all company documents and announcements that are disclosed to the public during
the reporting period.
42024 Annual Report of Luzhou Laojiao Co. Ltd.
Definitions
Term Reference Definition
Company the Company Luzhou
Refer to Luzhou Laojiao Co. Ltd.Laojiao
Laojiao Group Refer to Luzhou Laojiao Group Co. Ltd.XingLu Group Refer to Luzhou XingLu Investment Group Co. Ltd.State-owned Assets Supervision and Administration
SASAC of Luzhou Refer to
Commission of Luzhou
Huaxi Securities Refer to Huaxi Securities Co. Ltd.Luzhou Bank Refer to Luzhou Bank Co. Ltd.Sales Company Refer to Luzhou Laojiao Sales Co. Ltd.Brewing Company Refer to Luzhou Laojiao Brewing Co. Ltd.Golden Rudder Refer to Sichuan Golden Rudder Investment Co. Ltd.
52024 Annual Report of Luzhou Laojiao Co. Ltd.
Section II Company Profile and Key Financial Results
1. Corporate information
Stock abbreviation Luzhou Laojiao Stock code 000568
Stock exchange where
the shares of the Shenzhen Stock Exchange
Company are listed
Name of the Company泸州老窖股份有限公司
in Chinese
Abbr. of the Company泸州老窖
name in Chinese
Name of the Company
Luzhou Laojiao Co. Ltd.in English (if any)
Abbr. of the Company
LZLJ
name in English (if any)
Legal representative Liu Miao
Registered address Guojiao Square Luzhou City Sichuan Province China
Postal code 646000
The Company’s registered address has changed from 46 Guihua Street
Past changes of
Luzhou City Sichuan Province China to Guojiao Square Luzhou City
registered address
Sichuan Province China in 2000.Luzhou Laojiao Command Center 71 Nanguang Road Luzhou City Sichuan
Business address
Province China
Postal code 646000
Company website www.lzlj.com
E-mail lzlj@lzlj.com
2. Contact us
Representative for securities
Secretary of the board affairs
Name Li Yong Wang Chuan
Luzhou Laojiao Command Center 71 Nanguang Road Luzhou
Address
City Sichuan Province China
Tel. (0830)2398826 (0830)2398826
Fax (0830)2398864 (0830)2398864
E-mail dsb@lzlj.com dsb@lzlj.com
62024 Annual Report of Luzhou Laojiao Co. Ltd.
3. Information disclosure and place where the annual report is kept
Stock exchange website where this
China Securities Journal Securities Times Securities Daily
Report is disclosed
Media and website where this Report
http://www. cninfo.com.cn
is disclosed
Place where the annual report of the
Board office
Company is kept
4. Company registration and alteration
Unified social credit code 91510500204706718H
Changes in main business activities
since the Company was listed (if None
any)
Before September 2009 the controlling shareholder was the
Changes of controlling shareholders SASAC of Luzhou. After the equity transfer in September 2009
of the Company (if any) the controlling shareholder was changed to Laojiao Group but the
actual controller is still the SASAC of Luzhou.
5. Other relevant information
Accounting firm engaged by the Company
Name of the accounting
ShineWing Certified Public Accountants
firm
Business address of the 8/F Tower A Fuhua Building 8 Chaoyangmen North Street Dongcheng
accounting firm District Beijing China
Name of accountants for
He Jun and Ouyang Lihua
writing signature
Sponsors engaged by the Company to continuously perform its supervisory function during the
reporting period
□ Applicable □ N/A
Financial adviser engaged by the Company to continuously perform its supervisory function during
the reporting period.□ Applicable □ N/A?
6. Key accounting data and financial indicators
72024 Annual Report of Luzhou Laojiao Co. Ltd.
Whether the Company performed a retroactive adjustment to or restatement of accounting data.□ Yes □ No
2024 2023 YoY Change 2022
Operating revenues
31196248208.3330233301388.263.19%25123563271.62
(CNY)
Net profits
attributable to
13472986476.0113246394700.591.71%10365383281.80
shareholders of the
Company (CNY)
Net profits
attributable to
shareholders of the
13399514669.4913150392806.651.89%10321481236.93
Company before
non-recurring gains
and losses (CNY)
Net cash flows from
operating activities 19181768363.65 10648364935.46 80.14% 8262648269.72
(CNY)
Basic earnings per
9.189.021.77%7.06
share (CNY/share)
Diluted earnings per
9.189.021.77%7.06
share (CNY/share)
Weighted average
30.44%35.07%-4.63%33.32%
ROE
At the end of 2024 At the end of 2023 YoY Change At the end of 2022
Total assets (CNY) 68334595564.58 63294455201.60 7.96% 51385481354.52
Net assets
attributable to
47388500553.4641391410494.8914.49%34207871130.03
shareholders of the
Company (CNY)
Whether the lower of the net profits before and after non-recurring gains and losses was negative for
the last three accounting years and the latest auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern
□ Yes □ No
Whether the lowest of the audited total profits before tax net profits and net profits before non-
recurring gains and losses for the last accounting year was negative
□ Yes □ No
7. Differences in accounting data under domestic and overseas
accounting standards
82024 Annual Report of Luzhou Laojiao Co. Ltd.
7.1. Differences in the net profits and net assets disclosed in the financial reports
prepared under the international and China accounting standards
□ Applicable □ N/A?
No such differences for the reporting period.
7.2. Differences in the net profits and net assets disclosed in the financial reports
prepared under the overseas and China accounting standards
□ Applicable □ N/A?
No such differences for the reporting period.
8. Key financial results by quarter
Unit: CNY
Q1 Q2 Q3 Q4
Operating revenues 9188402377.79 7716482791.59 7398670017.92 6892693021.03
Net profits
attributable to
4573950129.903453588035.413565502984.741879945325.96
shareholders of the
Company
Net profits
attributable to
shareholders of the
4552423532.383441687198.863570292253.981835111684.27
Company before
non-recurring gains
and losses
Net cash flows from
4359428564.463865631648.114239654583.546717053567.54
operating activities
Whether there are any material differences between the financial indicators above or their summations
and those which have been disclosed in quarterly or semi-annual reports
□ Yes □ No
9. Non-recurring profits and losses
□ Applicable □ N/A
Unit: CNY
Item 2024 2023 2022 Note
Profit or loss from
disposal of non-
current assets
1058750.2244694238.3719805093.70
(including the write-
off portion of the
impairment
92024 Annual Report of Luzhou Laojiao Co. Ltd.
provision)
Government grants
accounted for in the
profit or loss for the
current period
(except for the
government grants
closely related to the
business of the
Company and given 41225885.28 51950003.11 34931161.52
in accordance with
defined criteria and
in compliance with
government policies
and have a
continuing impact on
the Company's profit
or loss)
Gain or loss on fair-
value changes in
financial assets and
liabilities held by a
non-financial
enterprise as well as
on disposal of
54342655.4668181502.73-2585156.72
financial assets and
liabilities (exclusive
of the effective
portion of hedges
that is related to the
Company's normal
business operations)
Reversed portions of
impairment
allowances for
receivables which 422217.14
are tested
individually for
impairment
Other non-operating
income and
expenditure except -1550111.21 -35875412.66 7873927.25
above-mentioned
items
Less: Corporate
20932166.5431697444.1214413895.31
income tax
Minority
1095423.831250993.491709085.57
interests (after tax)
Total 73471806.52 96001893.94 43902044.87 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable □ N/A?
No such cases for the reporting period.
102024 Annual Report of Luzhou Laojiao Co. Ltd.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to
the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.□ Applicable □ N/A?
No such cases for the reporting period.
112024 Annual Report of Luzhou Laojiao Co. Ltd.
Section III Management Discussion and Analysis
1. Industry overview for the reporting period
In 2024 the baijiu industry entered a new adjustment cycle. Over the coming period the industry is
expected to undergo accelerated “differentiation” with market competition becoming increasingly
intense. The industry is trending towards younger consumers lower alcohol content and a focus on
health. Only companies that continue to innovate will be able to seize development opportunities.
2. Business scope in the reporting period
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.Holding three food business licenses the Company operates within the baijiu subdivision industry
which belongs to the liquor & wine beverage and refined tea production industry with specialized
baijiu product design production and sales as its main business model. The Company’s primary
products are baijiu series such as "National Cellar 1573" and "Luzhou Laojiao" and its main
comprehensive performance indicators rank high in the baijiu industry. For the reporting period
operating revenue amounted to CNY 31.196 billion up 3.19% year on year; and the net profit
attributable to the shareholders of the listed company reached CNY 13.473 billion up 1.71% year on
year.For the Company's brand operations please refer to "4.1 Overview" under “4. Analysis of mainbusiness” in this section. The Company’s main products are classified as follows:
Main product types Classification criteria Representative brand name
National Cellar 1573 Luzhou
Tax-inclusive sales price ≥ CNY
Mid- and high-end baijiu Laojiao Tequ and Century-old
150 per bottle
Luzhou Laojiao Jiaoling Baijiu
Tax-inclusive sales price < CNY Luzhou Laojiao Touqu and Luzhou
Other baijiu
150 per bottle Laojiao · Hey Guys
122024 Annual Report of Luzhou Laojiao Co. Ltd.
Main sales models:
Currently the Company has two main sales models:
1. Traditional channel operation model: It is mainly authorized distribution of the offline distributors. The
Company establishes cooperative relationships with the distributors by product lines and regions. The
Company directly supplies goods to the distributors and then distributors sell them to consumers and
terminal outlets.
2. Emerging channel operation model: It is mainly online sales operations. The Company establishes
cooperative relationships with e-commerce platforms self-media and webcasters and sells the goods
to consumers through flagship stores specialty stores live streaming rooms on online platforms and
other network terminals.Distribution models:
□ Applicable □N/A
1. Main sales models
Unit: CNY
Gross YoY change of YoY change of
YoY change of Operating revenue Cost of sales profit operating gross profit
cost of sales margin revenue margin
By sales model
Traditional channel
29573326673.25 3550217152.71 88.00% 3.20% 12.93% -1.03% operation model
Emerging channel
1479326664.30 294200778.24 80.11% 4.16% -13.66% 4.10% operation model
2. Distributors
Increased
Number of Decreased
number YoY change of
distributors at number during Region during the number of Reason for any significant change
the end of the the reporting
reporting distributors (%) reporting period period
period
Domestic 1701 183 192 -0.53
Overseas 85 11 30 -18.27
132024 Annual Report of Luzhou Laojiao Co. Ltd.
3. Main settlement method for distributors and distribution method
The Company's main settlement method for distributors is payment before delivery. The distribution
method is authorized distribution.
4. Top five distributors
The Company had no accounts receivable from the top five distributors at the end of the period. For
details please refer to Section III 4.2.8. "Main customers and suppliers".Store sales terminals accounted for more than 10%
□ Applicable □ N/A
Online direct sales
□ Applicable □N/A
For the sales of the Company's main products please refer to Section III 4.2.1. "Breakdown of
operating revenues". The Company's complete series of products are sold online. Its main cooperation
platforms included JD.com and Tmall.Sales price of main products contributing over 10% of the total operating revenues for the current
period changed by more than 30% from the previous reporting period
□ Applicable □ N/A
Purchase model and purchase content
Unit: CNY
Purchase model Purchase content Amount of main purchase content
Organic raw grains are purchased
through cooperative model and
supplied by organic raw grain bases;
Raw materials 3907073658.46
other raw grains and packaging
materials are purchased through bid
invitation
Purchase based on the unified
pricing of the National Development
and Reform Commission and the Fuels and energies 186003014.55
price bureau and purchase through
bid invitation
Purchase through bid invitation Low-value consumables 69781382.75
The purchase of raw materials from cooperatives or farmers accounted for more than 30% of the total
purchase amount
□ Applicable □ N/A
The price of main raw materials purchased externally changed by more than 30% year-on-year
□ Applicable □ N/A
Main production model:
142024 Annual Report of Luzhou Laojiao Co. Ltd.
The Company's main production model is self-production.Commissioned processing and production
□ Applicable □ N/A
Main breakdown items of cost of sales
Unit: CNY
20242023
By business
Item YoY Change
segment As % of cost of As % of cost of Amount Amount
sales sales
Baijiu Raw materials 3088023001.56 80.32% 2938909467.97 84.34% 5.07%
Baijiu Labor costs 292097887.79 7.60% 261260432.24 7.50% 11.80%
Manufacturing Baijiu 464297041.59 12.08% 284374819.89 8.16% 63.27%
overhead
Note: The 63.27% YoY increase in manufacturing overhead is mainly because the Intelligent Packaging
Center was put into operation during the reporting period.Production volume and inventory
1. Production volume sales volume and inventory of main products
YoY change YoY change
Production
Product Sales volume Inventory of production of sales volume YoY change Description of
classification (ton) (ton) volume volume of inventory major changes (ton)
(%)(%)
Mid- and
high-end 39441.69 42990.65 33002.59 26.18 14.39 -9.71
baijiu
Mainly due to the
Other baijiu 65426.97 increased stock of 60770.41 10355.88 24.15 3.54 81.70
Touqu products for
the year-end period
2. Inventory at the end of the reporting period
Unit: Ton
Finished baijiu Semi-finished baijiu (including base baijiu)
43358.47429840.35
3. Capacity
Unit: Ton
Main products Design capacity Actual capacity Capacity in progress
Baijiu 170000 170000 80000
3. Analysis of core competitiveness
A. Geographical advantage
Luzhou City where the Company is located sits in the transitional area between the southern rim of the
Sichuan Basin and the Yunnan-Guizhou Plateau featuring a warmer and more humid sub-tropical
climate compared to other areas at the same latitude with a temperature above 0℃ throughout the
152024 Annual Report of Luzhou Laojiao Co. Ltd.
year. The unique climate and soil are agreeable to grow grains for baijiu brewing. The glutinous red
sorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.The cellars in which the Company brews its baijiu are made of the local loessal clay characterized by
strong viscosity rich minerals and excellent moisture retention. In addition the abundant and quality
water in the region creates a unique geographical advantage for the production of the Company’s baijiu.B. Advantage of cellars and brewing technique
Aged cellars are the most essential condition for a strong aromatic baijiu maker to produce good quality
baijiu. The Cellars of National Treasure 1573 founded in 1573 was granted by the State Council as the
first Cultural Relic of National Importance in the industry under the Protection of the State in December
1996. 1619 cellars of Luzhou Laojiao which have been continuously used for over 100 years together
with its 16 ancient brewing workshops and three natural cellar holes were all selected as the fourth
batch of Cultural Relics of National Importance under the Protection of the State in 2013. They are
unique resources that cannot be replicated. In both 2006 and 2012 Luzhou Laojiao Daqu Cellars were
twice selected into the preliminary list of China for World Heritage. In November 2018 Luzhou Laojiao
Cellars and Brewing Workshops were selected into China’s Industrial Heritage List. The time-honored
Traditional Brewing Technique of Luzhou Laojiao is a 24-generation inheritance and a classic brewing
technique for strong aromatic baijiu. This technique was selected as the first batch of National
Intangible Cultural Heritage in May 2006. The Cellars of National Treasure 1573 and the Traditional
Brewing Technique of Luzhou Laojiao together provide the most essential basis and assurance for the
quality of the product series of National Cellar 1573 and Luzhou Laojiao. Additionally Huangyi Brewery
Eco-Park has moved into full production in late 2020. Upholding the cultural connotations of
“inheritance of ancient ways pure-grain brewing traditional techniques and intelligent technologies”
the Company carried out brewing technical renovation featuring automatic intelligent and information
technology-based transformation. As such it has established a baijiu brewery eco-park comprising
brewing workshops leaven making workshops and base baijiu storage cellars along with energy and
sewage treatment facilities. This brewery eco-park brings with it new production capacities of 100000
tons of quality pure-grain solid baijiu and 100000 tons of leaven in addition to a new storage capacity of
380000 tons of baijiu per year marking a substantial increase in the Company’s production capacity.
162024 Annual Report of Luzhou Laojiao Co. Ltd.
3、品牌优势
C. Brand advantage
Brand is a key business resource for baijiu producers. The Company’s reputation is greatly built on its
superiority in brand. National Cellar 1573 which is of a connoisseurship level is a world-famous high-
end brand. Luzhou Laojiao Tequ a classic brand for strong aromatic baijiu was selected in 1952 by the
first national tasting competition judges as one of the four most famous baijiu brands in China. It is the
only strong aromatic baijiu brand that won the title of “National Famous Baijiu” for five consecutive times
as well as the pioneer with regard to the “Tequ” variety of baijiu. In recent years the Company hassuccessfully put in place a brand system of “dual brands three product series and major singleproducts” with great clarity and focus. The programs carried out to promote the brand of National Cellar
1573 and revive the brand of Luzhou Laojiao have produced remarkable results with significant
improvement in brand influence. The Company’s baijiu is increasingly known by consumers as a
national brand of strong aromatic baijiu and of authentic flavor.
172024 Annual Report of Luzhou Laojiao Co. Ltd.
D. Quality and R&D advantageThe Company is committed to producing high-quality baijiu advocating a healthy lifestyle and “makingthe quality visible”. The first “Organic Sorghum Planting Base” was established and the six-factor
management system (including organic quality safety environment measurement and energy) was
built and improved. The research platforms are established including National Engineering Research
Center of Solid-State Brewing National Liquor Test Center National Postdoctoral Workstation etc.which all support the innovation and upgrading of products with their strong technical force. In recent
years the Company has put in a lot of efforts in researching Tequ production informatization and
intelligent transformation of brewing and packaging. Relying on the technological innovation platforms
such as the National Industrial Design Center and continuously deepening the cooperation with
universities and scientific research institutes including the Chinese Academy of Sciences and the
Jiangnan University the Company has undertaken dozens of national- or provincial-level projects and
has been granted hundreds of invention or utility model patents. And remarkable results have been
achieved with respect to improvement of the quality of base Baijiu as well as production efficiency
improvement.E. Talent advantage
The Company has 1 inheritor of national intangible cultural heritage 4 masters of Chinese brewing 2
masters of Chinese baijiu 2 Chinese liquor connoisseurs 1 master of Chinese baijiu technique 18
senior professor engineers 8 experts who receive special allowances from the State Council 4 national
technicians 3 national model workers 5 national Labor Day Medal winners 4 academic and
technologic leaders of Sichuan province 1 expert with outstanding contribution in Sichuan province 1
technology leader of Tianfu 1 excellent engineer of Tianfu 1 skills leader of Tianfu 3 craftsmen of
Tianfu 5 craftsmen of Sichuan province 1 technological elite of Tianfu 2 young science and
technology talents of Tianfu 4 technicians of Sichuan province as well as hundreds of highly skilled
personnel including national baijiu judges as well as master technicians senior technicians and
technicians in baijiu brewing and tasting. The comprehensive and professional personnel system
assures the sound development of the Company.
182024 Annual Report of Luzhou Laojiao Co. Ltd.
4. Analysis of main business
4.1. Overview
2024 marked the 700th anniversary of the birth of Luzhou Laojiao’s strong aromatic baijiu. TheCompany remained firmly committed to the annual development theme of “proceeding with confidenceovercoming challenges innovating and collaborating” continuously strengthening its internal growth
momentum enhancing market competitiveness and maintaining a sound and stable development trend.Over the past year the Company achieved the following key results:
A. Multi-pronged efforts yielded marketing breakthroughsThe Company actively implemented the marketing theme of “strategic determination digital innovationefficient collaboration and comprehensive breakthroughs”. Market value was further consolidated and
expanded sales performance grew steadily and the Company’s development resilience and strength
became increasingly evident. Market value advanced steadily. The National Cellar brand firmly
maintained its position in the CNY 20 billion echelon while the Luzhou Laojiao brand surpassed the
CNY 10 billion mark. Market coverage and penetration continued to expand. Digital and intelligent
transformation in marketing accelerated. The Company launched five-code products promotedscenario code application and reshaped the consumer channel system driving a shift toward a “right-side strategy” focused on consumer-driven bottle-opening and scanning. Marketing collaboration
empowered efficiency. Full collaboration across the sales team was advanced enabling headquarters
to support sales back-end to support front-end and teams to support customers thereby unleashing
coordinated growth momentum. Circle development achieved remarkable results. Relying on a
three-tier public relations system at the headquarters sales company and sales unit levels the
Company continuously conducted public relations efforts achieving notable progress in expanding
target customer circles.B. Culture-driven branding elevation
Centered around the theme of “Chinese Strong Aromatic Baijiu for 700 Years” the Company
extensively carried out various cultural activities to promote the continuous recovery of the value of
Luzhou Laojiao as a famous baijiu brand. Brand connotation deepened. The Company meticulously
organized the “Chinese Strong Aromatic Baijiu for 700 Years” themed exhibition and vigorouslyadvanced cultural tourism projects earning certification as the “Origin of Chinese Strong AromaticBaijiu”. Branding events were effectively implemented. Leveraging cultural IP events such as the
192024 Annual Report of Luzhou Laojiao Co. Ltd.
“Baijiu Seal-off Ceremony” global events including the Paris Olympics and the 60th anniversary of
China-France diplomatic relations the Company consistently elevated its brand image. Brand
presence was strengthened. By leveraging cultural and artistic resources such as the Chinese Nebula
Awards and the Hundred Flowers Awards for Popular Films the Company infused its brand with
fashion and artistic appeal. Through the “letting the world taste the Chinese flavor” global cultural tour it
continued expanding its international presence. In 2024 National Cellar 1573 was ranked among the
top 10 of the Hurun Most Valuable China Brands and the Luzhou Laojiao brand was listed on the
“China’s 500 Most Valuable Brands” ranking.C. Enhancing quality and efficiency to strengthen production assurance
The Company remained firmly committed to upholding the bottom lines of quality assurance production
capacity assurance and supply chain assurance thereby laying a more solid foundation for high-quality
development. Quality assurance continuously strengthened. The eight organic raw grain planting
bases successfully passed organic recertification. The external audit pass rate for quality food safety
and other management systems reached 100%. By focusing on process execution and key control
points the Company further improved the quality of base Baijiu and upgraded packaging quality.Production capacity assurance was solid and effective. The utilization rate of brewing resources
and production efficiency continued to improve. The Luzhou Laojiao 950-mu Technical Upgrade Project
of Intelligent Brewing achieved phased progress accelerating the steps toward the goal of building a
“digital lighthouse factory for baijiu brewing”. Supply chain assurance gained new momentum. TheLuzhou Laojiao Intelligent Packaging Center the first in the baijiu industry constructed to “lighthousefactory” standards officially started operations. The Company added a new production capacity of
100000 tons in intelligent bottling further solidifying product assurance. Luzhou Laojiao was
recognized as the first “National Intelligent Manufacturing Benchmark Enterprise” in the baijiu industry.D. Technological innovation stimulating endogenous growth
The Company is committed to building a “moat” of technological innovation leveraging strong
technological capabilities to safeguard quality enhance brand value and empower sales. An
innovation-driven R&D ecosystem has taken shape. The Company fully utilized major innovation
platforms such as the National Engineering Research Center of Solid-state Brewing and the Sichuan
Provincial Technological Innovation Center. By collaborating with top universities and research
institutes the Company tackled and applied key common and frontier-leading technologies cultivatinga large pool of senior scientific and technical talent. The Company officially released the “Top TenScientific and Technological Innovation Achievements of Luzhou Laojiao from 2015 to 2024”
showcasing the industry-leading technological strength of the Company. Implementation of
innovation projects accelerated. The Company led the application for 16 key projects successfully
obtained approval for 11 government-funded science and technology projects and completed
acceptance inspections for 10 projects with a 100% pass rate. R&D achievements continued to
emerge. The Company presided over and participated in the formulation and revision of 21 national
industry association and local standards. A total of 38 scientific papers were published. The Company
submitted 165 patent applications and obtained 53 patent authorizations. The Company received
multiple prestigious awards including the Special Prize for Technological Invention from the China
General Chamber of Commerce First Prize for Employee Technological Innovation Achievements from
202024 Annual Report of Luzhou Laojiao Co. Ltd.
the China Association for Science and Technology First Prize for Scientific and Technological Progress
from the Chinese Institute of Food Science and Technology and First Prize for Technological Invention
from the China Alcoholic Drinks Association.E. Strengthening headquarters capabilities
The Company focused on refined management continuously improving a management framework that
integrates authorization systems and processes forming an efficient sound and diversified
compliance operation system. The corporate governance system was continuously optimized. The
Company implemented the deployment of deepening reform and enhancement actions for state-ownedenterprises established and improved the decision-making mechanism of “decision-making on majorissues appointment and removal of important personnel investment decisions on major projects anduse of funds of a large amount” and ensured the respective roles of the Board of Directors the Board
of Supervisors general meetings of shareholders and the management. The Company’s Party
Committee was honored as an “Outstanding Primary Party Organization in Sichuan Province” and the
Board of Directors won the “Best Practice Case of Listed Company Board of Directors” awarded by the
China Association for Public Companies. The Company repeatedly received the highest A-level rating
in the annual information disclosure assessment of listed companies on the Shenzhen Stock Exchange.Foundational management was steadily strengthened. The Company continued to carry outplanning control performance assessment and investment supervision. The “nine safety responsibilitychecklists” were fully implemented and the incidence of production safety accidents and occupational
diseases remained zero throughout the year. Talent-driven momentum was continuously enhanced.The Company focused on three modules— “smart HR sharing” “smart talent management” and “smartHR operations”—and established a “three-pillar” human resources management model. The “LuzhouLaojiao Employees” intelligent labor union platform has been successfully launched and the digital-
intelligent “Employee Paradise” began to show its effectiveness. Digital and intelligent management
continued to upgrade. The smart office collaboration platform is now online and operational the
application of RPA robots was advanced and financial sharing was continuously upgraded. The
Company was honored with the title of “Pioneer” in China’s industrial data governance and selected as
a “Pioneer” case in the digital transformation of China’s light industry.F. Proactively fulfilling responsibilities and demonstrating the role of a state-owned enterprise
The Company continued to practice the corporate philosophy of “Baijiu for the World a Shared Future”
earnestly fulfilling its social responsibilities as a state-owned enterprise. The Company made solid
progress in philanthropic initiatives consistently carrying out social welfare activities such as rural
revitalization and assistance for the underprivileged. In implementing bottom-line assistance measures
the Company was recognized as one of the “Top Ten Philanthropic Enterprises in Sichuan”. The
Company remained committed to green low-carbon and sustainable development. For four
consecutive years the Company has conducted carbon emission accounting across its organizational
boundaries and carried out product carbon footprint assessments. The Company also completed an
evaluation of the Action Plan for Carbon Peaking. The ESG system continued to improve. The
Company established a Strategy and ESG Committee under the Board of Directors formulated a
medium- and long-term plan for ESG system development and achieved continuous improvement in
the MSCI rating ranking among the top in the industry.
212024 Annual Report of Luzhou Laojiao Co. Ltd.
4.2. Revenues and cost of sales
4.2.1. Breakdown of operating revenues
Unit: CNY
20242023
As % of As % of YoY Change
Amount operating Amount operating
revenues revenues
Total 31196248208.33 100% 30233301388.26 100% 3.19%
By business segment
Baijiu 31052653337.55 99.54% 30077278859.58 99.48% 3.24%
Other revenues 143594870.78 0.46% 156022528.68 0.52% -7.97%
By product
Mid- and high-
27585319704.6288.43%26841342073.1488.78%2.77%
end baijiu
Other baijiu 3467333632.93 11.11% 3235936786.44 10.70% 7.15%
Other revenues 143594870.78 0.46% 156022528.68 0.52% -7.97%
By geographical segment
Domestic 31010093741.29 99.40% 30056130668.72 99.41% 3.17%
Overseas 186154467.04 0.60% 177170719.54 0.59% 5.07%
By sales model
Traditional
channel 29573326673.25 94.80% 28657038767.86 94.79% 3.20%
operation model
Emerging
channel 1479326664.30 4.74% 1420240091.72 4.70% 4.16%
operation model
222024 Annual Report of Luzhou Laojiao Co. Ltd.
Other revenues 143594870.78 0.46% 156022528.68 0.51% -7.97%
4.2.2. Business segments products geographical segments or sales models
contributing over 10% of the operating revenues or profits
□ Applicable □ N/A
Unit: CNY
YoY
Gross YoY change YoY change
change of
Operating revenue Cost of sales profit of cost of of gross
operating
margin sales profit margin
revenue
By business segment
Baijiu 31052653337.55 3844417930.95 87.62% 3.24% 10.33% -0.79%
By product
Mid- and high-
27585319704.622248007003.0191.85%2.77%8.28%-0.42%
end baijiu
Other baijiu 3467333632.93 1596410927.94 53.96% 7.15% 13.35% -2.52%
By geographical segment
Domestic 31010093741.29 3862718079.68 87.54% 3.17% 10.01% -0.78%
By sales model
Traditional
channel
29573326673.253550217152.7188.00%3.20%12.93%-1.03%
operation
model
Under the circumstances that the statistical standards for the Company’s main business data were
adjusted in the reporting period the Company’s main business data in the current year is calculated
based on adjusted statistical standards at the end of the reporting period
□ Applicable □ N/A
4.2.3. Whether revenue from sales of goods is higher than revenue of rendering
services
□ Yes □ No
By business
Item Unit 2024 2023 YoY Change
segment
Sales volume Ton 103761.06 96278.12 7.77%
Production
Baijiu Ton 104868.66 83956.49 24.91%
volume
Inventory Ton 43358.47 42250.87 2.62%
Reason for any over 30% YoY movements in the data above
□ Applicable □ N/A
4.2.4. Execution of significant sales or purchase contracts in the reporting period
□ Applicable □ N/A
232024 Annual Report of Luzhou Laojiao Co. Ltd.
4.2.5. Breakdown of cost of sales
By business segment
Unit: CNY
20242023
By business
Item As % of As % of YoY Change
segment Amount cost of Amount cost of
sales sales
Baijiu Raw materials 3088023001.56 80.32% 2938909467.97 84.34% 5.07%
Baijiu Labor costs 292097887.79 7.60% 261260432.24 7.50% 11.80%
Manufacturing
Baijiu 464297041.59 12.08% 284374819.89 8.16% 63.27%
overhead
Note: The 63.27% YoY increase in manufacturing overhead is mainly because the intelligent packaging
center was put into operation during the reporting period.
4.2.6. Change in the scope of the consolidated financial statements for the
reporting period
□ Yes □ No
Luzhou Laojiao Whitail Liquor Industry Co. Ltd. a subsidiary of the Company was liquidated and de-
registered in June 2024. And it has thus been excluded from the consolidated financial statements of
the Company.
4.2.7. Major changes in the business products or services in the reporting period
□ Applicable □ N/A
4.2.8. Main customers and suppliers
Sales to main customers of the Company
Total sales to top five customers（CNY） 21067404089.23
Total sales to top five customers as % of the total
67.54%
sales
Total sales to related parties among top five
0.00%
customers as % of the total sales
Information on top five customers
As % of the total sales
No. Customer Sales amount (CNY)
for the year
1 Customer A 12843472296.80 41.17%
2 Customer B 4035698543.60 12.94%
3 Customer C 2538145987.32 8.14%
4 Customer D 1017880050.74 3.26%
5 Customer E 632207210.77 2.03%
Total -- 21067404089.23 67.54%
242024 Annual Report of Luzhou Laojiao Co. Ltd.
Other information on main customers
□ Applicable □ N/A
Main suppliers of the Company
Total purchases from top five suppliers（CNY） 1394524586.86
Total purchases from top five suppliers as % of
33.49%
the total purchases
Total purchases from related parties among top
7.98%
five suppliers as % of the total purchases
Information on top five suppliers
As % of the total
No. Supplier Purchases (CNY)
purchases for the year
1 Supplier A 394394837.42 9.47%
2 Supplier B 332071782.49 7.98%
3 Supplier C 294354553.42 7.07%
4 Supplier D 189509275.34 4.55%
5 Supplier E 184194138.18 4.42%
Total -- 1394524586.86 33.49%
Other information on main suppliers
□ Applicable □ N/A
4.3. Expenses
Unit: CNY
Reason for any
2024 2023 YoY Change
significant change
Selling and
3538382615.993974425526.92-10.97%
distribution expenses
General and
administrative 1100779964.56 1139480677.23 -3.40%
expenses
Mainly due to the
reclassification of
Finance expenses -488521059.32 -371152206.41 note discount
expenses to
investment income
R&D expenses 260975311.10 225955797.33 15.50%
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
252024 Annual Report of Luzhou Laojiao Co. Ltd.
4.3.1. Breakdown of selling and distribution expenses
Unit: CNY
Selling and distribution
2024 2023 YoY Change Reason for any significant change expenses
Advertising expenses 1548153847.96 1614086963.33 -4.08%
Sales promotion
1109741814.611479620839.26-25.00%
expenses
Warehousing and
162568387.89 198741925.26 -18.20% logistics expenses
Mainly due to the increase in
Labor costs 387418851.76 297757314.24 30.11% accrued remunerations for sales
staff in the year
Other 330499713.77 384218484.83 -13.98%
4.3.2. Breakdown of advertising expenses
Unit: CNY
Advertising Expenses
Online advertising (exclusive of TV advertising) 140288998.95
Offline advertising 317843979.92
TV advertising 316513059.44
Other (inclusive of branding ideas exhibitions & showcases advertising materials activity
773507809.65 planning etc.)
4.4. R&D investments
□ Applicable □ N/A
Expected impact on
Major R&D projects Purpose Progress Specific objectives
the Company
This project
The project is a successfully passed To develop an
national key R&D the acceptance intelligent equipment
program during the review by the system with
"13th Five-year Plan" Ministry of Science packaged technology
period undertaken by and Technology in for the resource- and
Luzhou Laojiao August 2024. energy-based
which aims to realize Focusing on brewing utilization of brewing
Realize a large-scale
Thermochemical the energy- and waste (discarded waste successfully
resource- and
Energy- and resource-based grains) as the build a
energy-based
Resource-based utilization of brewing research subject the demonstration base
utilization of brewing
Coupled Utilization waste with project adopted for the project
waste and achieve
Technology of thermochemical technologies such as industrialization and
both ecological and
Brewing Waste technology and high-efficiency drying achieve resource-
economic benefits.develop a complete and thermochemical and energy-based
set of intelligent conversion of utilization of brewing
equipment systems biomass to thermally waste to ensure the
for the resource- and decompose the low-carbon green
energy-based discarded grains into development of the
utilization of brewing pyrolysis gas and Chinese baijiu
waste. biochar. The industry.pyrolysis gas is
262024 Annual Report of Luzhou Laojiao Co. Ltd.
reused as energy in
the distilling process
while the biochar
serves as an organic
fertilizer for sorghum
cultivation. The
project established
the industry’s first
demonstration
project for the
coupled utilization of
energy and
resources from
brewing waste with
an annual processing
capacity of 100000
tons. It achieved a
resource utilization
rate of over 90% for
brewing waste and a
gas energy recycling
rate of over 95%
filling the
technological gap in
thermochemical
treatment of brewing
waste (discarded
grains) and
promoting
breakthroughs in key
general technologies
for the efficient
conversion and safe
disposal of organic
solid waste under the
solid waste resource
utilization initiative.This project
successfully passed
The project is an
the acceptance
international project
review by the
that the Company To develop functional
Ministry of Science
jointly undertook leaven according to
and Technology in
which studies the different quality
Study on the August 2024.evolution pattern and indicator
Expression Centered on the
formation requirements based
Regulation of Key formation Improve the leaven
mechanism of on functional leaven-
Genes in Leaven mechanism and and baijiu quality and
microbiomes during marking
Microorganisms in quality improvement enhance the
the natural leaven- microorganisms and
China and Japan of strong aroma Company's core
marking and key gene expression
and the Improvement Daqu light aroma competitiveness.fermentation and regulation
of Chinese Leaven Daqu and light
screens for microbial systematically
Quality aroma Xiaoqu the
strains with specific evaluate the efficacy
project carried out a
functions for the of leaven and
study on the diversity
production of optimize the process.of microorganisms in
functional enhanced
fermentation starters
leaven.and systematically
analyzed the
272024 Annual Report of Luzhou Laojiao Co. Ltd.
microbial community
structure and
metabolic
characteristics of
fermentation starters.Four strains were
isolated; key genes
related to starch
decomposition and
sugar production
were studied. The
research on fortified
Daqu was
completed and
functional enhanced
fermentation starters
were developed.The Company
continuously
improved the
enterprise’s
intellectual property
management
system passed the
The Company has
annual supervision
strengthened the
and audit of the
close integration of
management
The project is to intellectual property
system and
implement national creation and
strengthened the
standards for protection with the
review of IP clauses
intellectual property whole process of
in technology
management and technological
contracts. Focusing
achieve efficient innovation enhanced The Company has
on key brewing
management of the the capability of the established a sound
technologies the
Company in the enterprise to create intellectual property
Company fully
creation application intellectual property management
utilized patent
High-value Patent and protection of and prevent potential system
analysis tools to
Incubation Center intellectual property. intellectual property strengthened the
conduct competitive
Project of Luzhou An all-round layout of risks. The Company creation and
situation analysis
Laojiao intellectual property has strengthened the protection of
and layout analysis.is made around the analysis and intellectual property
Patent risk warning
core key application of patent and enhanced the
measures were
technologies of the information laid out core competitiveness
reinforced through
industrial chain to and explored of the enterprise.regular monitoring
promote the creation intellectual property
and analysis of key
of high-quality around core key
technical outcomes
patents and build a technologies and
in relevant branches.patent pool for core formed a series of
The Company also
technologies. high-value patents
organized high-value
with technical
patent cultivation
economic and legal
training and mining
value.workshops
comprehensively
enhancing R&D
personnel’s
awareness of
innovation drafting
competence and
282024 Annual Report of Luzhou Laojiao Co. Ltd.
protection
capabilities.In research areas
such as brewing
processes and
intelligentization
fermentation
mechanisms and
microbiology as well
as flavor and health
the Company
continuously
advanced innovation
R&D and application
of key common
technologies and
cutting-edge leading
technologies across
the industry chain.Luzhou Laojiao took These efforts To gathering
the lead to jointly supported solid-sate innovative resources
build the Sichuan brewing technology in solid-state
Innovation Center for research industry brewing create an
Solid-state Brewing exchanges result innovation alliance in Successfully build a
Technologies with transformation and the solid-sate technological
Establishment of several universities talent training. brewing sector make innovation platform
Sichuan Innovation institutes and other Relying on the breakthroughs in thereby improving
Center for Solid-state enterprises aiming Innovation Center as core key the Company's
Brewing to overcome a batch the carrier Luzhou technologies in the scientific and
Technologies of core technological Laojiao initiated the solid-sate brewing technological
challenges in solid- establishment of the sector and form a innovationstate brewing and “Solid-state Brewing science and capabilities and level.facilitate the Technology technology
development of the Innovation Alliance in innovation center
solid-state brewing the Chengdu- with national
sector. Chongqing Twin City influence.Economic Circle” andconvened the “2024Annual Meeting of
the Sichuan
Innovation Center for
Solid-state Brewing
Technologies and
the Solid-state
Brewing Technology
Innovation Alliance in
the Chengdu-
Chongqing Twin CityEconomic Circle” at
which the Alliance’s
2024 project
proposals were
announced.A Study on the By applying modern Luzhou Laojiao Level up the
To build an intelligent
Optimization of Key technologies such as carried out industry- Company's intelligent
brewing
Intelligent Equipment intelligent sensing university-research brewing and promote
demonstration
and the System image recognition cooperation with the transformation
production line.Control for Brewing spectral technology universities and and upgrading of the
292024 Annual Report of Luzhou Laojiao Co. Ltd.
and bio-chips the research institutes in traditional brewing
project aims to the field of intelligent industry.develop core brewing deeply
technologies for each analyzed traditional
link of brewing production processes
production including and fermentation
fermentation principles
vinasse-based innovatively applied
ingredient making simulation
distillation of grains technology
in retorts and baijiu automation
selection and build technology online
intelligent brewing testing industrial
production lines with robots big data
independent analysis intelligent
optimization decision-making and
production decision- other technologies to
making and the brewing
execution capabilities engineering
to comprehensively renovation project of
upgrade the solid- Luzhou Laojiao.state brewing These efforts
technologies in the addressed
baijiu industry. challenges in data
collection intelligent
equipment
development and
real-time process
optimization in
traditional brewing
realizing full-process
intelligent production
covering raw and
auxiliary materials
storage brewing
operations distillers’
grain fermentation
and base Baijiu
management.The project aims to Luzhou Laojiao
carry out collection of carried out industry-
brewing microbial university-research
resources rapid cooperation with To establish a
isolation universities and brewing microbial
authentication based on the strain bank of a Master the core
review and transfer analysis of the certain scale which resources of baijiu
of microbial metabolic can achieve long- brewing
Construction of the
resources in the mechanisms of the term safe microorganisms and
Brewing Microbial
brewing process of microbial flora in the preservation of enhance the
Resources and Data
baijiu and mud of the 400-year- strains and is Company's ability to
Platform
development of old national treasure supplemented by protect and utilize
excellent strains for fermentation pit special information brewing microbial
industrial use completed diversity technology to resources.establish a brewing analysis on over manage strain
microbial strain 1000 brewing information.library and related samples identified
enzymology library and preserved more
and promote the than 2000 microbial
302024 Annual Report of Luzhou Laojiao Co. Ltd.
protection sharing strains and obtained
and sustainable flavor compound
utilization of brewing data for over 300
microbial resources. strains and whole-
genome sequencing
data for over 200
strains. The
Company screened
and obtained a
series of new
species and key
functional
microorganisms suchas the “LaojiaoLactobacillus”“LaojiaoSyntrophococcus”and “LaojiaoClostridium” and
filed 21 applications
for invention patents
related to functional
strains of which four
have been granted.Information about R&D personnel
2024 2023 YoY Change
Number of R&D
4754681.50%
personnel
R&D personnel as % of
12.40%12.55%-0.15%
total employees
Educational backgrounds of R&D personnel
Bachelor’s degree 276 307 -10.10%
Master’s degree 149 131 13.74%
Doctoral degree
(including postdoctoral 50 30 66.67%
workstations)
Age structure of R&D personnel
Below 30 188 217 -13.36%
30~402072041.47%
Information about R&D investments
2024 2023 YoY Change
R&D investments
280166160.16267474647.164.74%
(CNY)
R&D investments as %
0.90%0.88%0.02%
of operating revenues
Capitalized R&D
0.000.000.00%
investments (CNY)
Capitalized R&D 0.00% 0.00% 0.00%
312024 Annual Report of Luzhou Laojiao Co. Ltd.
investments as % of
total R&D investments
Reason for any significant change in the composition of R&D personnel and the impact
□ Applicable □ N/A
Reason for any significant YoY change in the percentage of the R&D investments in the operating
revenues
□ Applicable □ N/A
Reason for any sharp variation in the percentage of the capitalized R&D investments and rationale
□ Applicable □ N/A
4.5. Cash flows
Unit: CNY
Item 2024 2023 YoY Change
Subtotal of cash
inflows from operating 41014285259.97 32865186758.61 24.80%
activities
Subtotal of cash
outflows from operating 21832516896.32 22216821823.15 -1.73%
activities
Net cash flows from
19181768363.6510648364935.4680.14%
operating activities
Subtotal of cash
inflows from investing 2277579273.71 1933604489.48 17.79%
activities
Subtotal of cash
outflows from investing 3660085206.26 3201722342.48 14.32%
activities
Net cash flows from
-1382505932.55-1268117853.00
investing activities
Subtotal of cash
inflows from financing 2000079496.11 6860373039.14 -70.85%
activities
Subtotal of cash
outflows from financing 12328932533.79 8078799107.43 52.61%
activities
Net cash flows from
-10328853037.68-1218426068.29
financing activities
Net increase in cash
7474638736.608164022685.99-8.44%
and cash equivalents
Explanation of why the data above varied significantly
322024 Annual Report of Luzhou Laojiao Co. Ltd.
□ Applicable □ N/A
Net cash flows from operating activities increased by 80.14% mainly due to the increased cash
received from sales and discounted notes in the current period.Explanation of main reasons leading to the material difference between net cash flows from operating
activities during the reporting period and net profit for the year
□ Applicable □ N/A
This is mainly due to the effects of the honoring of due notes the discounting of notes and the
increased advance payments from suppliers on net cash flows from operating activities in the year.
5. Analysis of non-core business
□ Applicable □ N/A
6. Assets and liabilities
6.1. Significant change of asset items
Unit: CNY
At the end of 2024 At the beginning of 2024 Reason for any
Change in
As % of total As % of total significant
Amount Amount percentage
assets assets change
Cash and cash
33578396831.3349.14%25952025091.2841.00%8.14%
equivalents
Accounts
11022302.310.02%17461378.980.03%-0.01%
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 13392794475.96 19.60% 11622043947.46 18.36% 1.24%
Investment
50246694.160.07%37785416.770.06%0.01%
property
Long-term equity
2801252317.934.10%2708254833.504.28%-0.18%
investments
Fixed assets 9131776915.51 13.36% 8613223465.46 13.61% -0.25%
Construction in
807233988.901.18%1718468880.532.72%-1.54%
progress
Right-of-use
29254214.230.04%23260955.230.04%0.00%
assets
Short-term loans 0.00% 0.00% 0.00%
Contract
3978131528.885.82%2672977090.304.22%1.60%
liabilities
Mainly due to the
repayment of
Long-term loans 6279900000.00 9.19% 10000300000.00 15.80% -6.61%
due bank loans
and the
332024 Annual Report of Luzhou Laojiao Co. Ltd.
reclassification of
bank loans due
soon as non-
current liabilities
due within one
year
Lease liabilities 24528519.13 0.04% 22356404.47 0.04% 0.00%
Whether overseas assets account for a larger proportion in total assets
□ Applicable □ N/A
6.2. Assets and liabilities measured at fair value
□ Applicable □ N/A
Unit: CNY
Changes in
Changes in
cumulative
Opening fair value Provision for Amount of Amount of Other Closing
Item fair value
balance through impairment purchase sale changes balance
recorded
profit or loss
into equity
Financial asset
1.Held-for-
trading
financial
assets 14269920 27528769. 24600000 22202385 16942822
(exclusive of 98.83 00 00.00 71.86 95.97
derivative
financial
assets)
4.Investmen
ts in other 402893468 150915802 407194706
equity .80 .27 .55
instruments
6. Accounts -
5938171018019474
receivables 41362235
07.9355.78
financing 52.15
Subtotal of -
7768056527528769.150915802246000002220238516942822
financial 0.00 41362235
75.5600.2700.0071.8695.97
assets 52.15
-
7768056527528769.150915802246000002220238539034244
Total 0.00 41362235
75.5600.2700.0071.8658.30
52.15
Financial
9763.87-9870.60106.730.00
liability
Contents of other changes
None
Whether measurement attribution of main assets changes significantly in this year
342024 Annual Report of Luzhou Laojiao Co. Ltd.
□Yes □ No
6.3. Restricted asset rights as of the end of this reporting period
Item Closing balance Reason
Other cash and cash
10000000.00 Restricted security deposits for bank guarantees
equivalents (CNY)
Other cash and cash
1627857.48 Restricted security deposits at e-commerce platforms
equivalents (CNY)
Bank deposits (CNY) 181100955.95 Accrued interest on term deposits
Other cash and cash
18000003.44 Judicially frozen
equivalents (CNY)
Total 210728816.87
7. Investment
7.1. Total investment
□ Applicable □ N/A
Investment made in the Investment made in the prior
YoY change
reporting period (CNY) year (CNY)
2954722709.663415581665.59-13.49%
7.2. Significant equity investment made in the reporting period
□ Applicable □ N/A
7.3. Significant ongoing non-equity investment in the reporting period
□ Applicable □ N/A
Unit: CNY
Accum
Accum Reason
ulated
ulated s for
actual
Whethe Amount actual not
Industr input
r it is a of input income meetin Date of Disclos
Investm y of the amount Project Project
fixed in the Capital by the g the disclos ure
Item ent investm by the progres ed
asset reportin source end of schedul ure (if index
form ent end of s income
investm g the e and any) (if any)
project the
ent period reportin project
reportin
g ed
g
period income
period
Luzhou Self- Yes Baijiu 28854 10773 Self- 30.00% 0.00 0.00 N/A 13 July Announ
352024 Annual Report of Luzhou Laojiao Co. Ltd.
Laojiao built 2548.0 98554. financin 2022 cement
Technic 8 89 g on the
al Implem
Upgrad entatio
e n of
Project Luzhou
of Laojiao
Intellige Technic
nt al
Brewin Upgrad
g e
(Phase Project
I) of
Intellige
nt
Brewin
g
(Phase
I) by
Subsidi
ary
2885410773
Total -- -- -- 2548.0 98554. -- -- 0.00 0.00 -- -- --
889
7.4. Financial assets investment
7.4.1. Securities investment
□ Applicable □ N/A
Unit: CNY
Chang
Chang es in Profit
es in the and
Abbre Accou Beginn
Categ Initial fair cumul Amou loss Closin
viation nting ing Amou Accou
ory of Stock invest value ative nt of during g book Capital
of measu book nt of nting
securit code ment recogn fair purcha the balanc source
securit rement balanc sale item
ies cost ized in value se reporti e
ies model e
profit record ng
or loss ed into period
equity
Invest
Dome ments
Fair
stic 12719 17524 20692 21964 in
60121 value 6477 Own
and GTJA 156.7 1715. 1837. 0994. other
1 measu 348.35 fund
foreign 6 34 27 03 equity
rement
stock instru
ments
Dome Invest
Fair
stic 12805 14840 15870 ments
00224 1030 value 78177 Own
and SNC 515.4 083.2 083.2 in
6 000.00 measu .75 fund
foreign 4 4 4 other
rement
stock equity
362024 Annual Report of Luzhou Laojiao Co. Ltd.
instru
ments
Invest
Dome ments
Fair
stic 51120 96733 27236 78356 in
LZBA value 3905 Own
and 01983 000.0 837.6 318.9 318.9 other
NK measu 280.00 fund
foreign 0 9 9 9 equity
rement
stock instru
ments
Invest
Dome ments
Fair -
stic CTG 54228 84854 60069 in
value 91129 2015 Own
and 01880 Duty- 5380. 489.6 399.6 other
measu 295.6 648.45 fund
foreign Free 80 8 4 equity
rement 4
stock instru
ments
6071536963157861247637393
Total 4537. -- 5558. 0.00 8943. 0.00 0.00 454.5 6795. -- --
561586590
7.4.2. Derivative investment
□ Applicable □ N/A
No such cases in the reporting period
7.5. Use of funds raised
□ Applicable □ N/A
7.5.1. General use of funds raised
□ Applicable □ N/A
Unit: CNY 10000
Raised
funds
used Total Accum
Total Total
as % amoun ulated Amou
amoun Accum amoun Purpo
of total t of re- re- Total nt of
t of ulated t of se and
Date Total raised purpos purpos amoun funds
raised amoun accum directi
of amoun Net funds ed ed t of raised
Metho funds t of ulated on of
Year securit t of procee at the funds funds unuse idle for
d used raised re- unuse
ies funds ds (1) end of raised raised d more
in the funds purpos d
listing raised the in the as % funds than
reporti used ed funds
reporti reporti of total raised two
ng (2) funds raised
ng ng funds years
period raised
period period raised
(3)=
(2)/
372024 Annual Report of Luzhou Laojiao Co. Ltd.
(1)
Deposi
Public
ted in
offerin
March special
g of 15000 14900 25408 13644 91.57 21099
2020 17 0 0 0.00% accou 0
corpor 0 0 .69 4.23 % .08
2020 nt for
ate
raised
bond
funds
1500014900254081364491.5721099
Total -- -- 0 0 0.00% -- 0
00.694.23%.08
Notes for general use of funds raised
The total amount of unused funds raised of the corporate bond “20 Laojiao 01” includes interest on some funds raised.
7.5.2. Fund raised for committed projects
□ Applicable □ N/A
Unit: CNY 10000
Date
Whet
of the Cumu Whet
Com her Accu Invest Whet
Total projec lative her
mitted the mulat ment Realiz her
amou Invest ts realiz the
invest projec Adjust ed progr ed the
nt of ment reach ed feasib
Date ment t has ed input ess benefi expec
Finan funds Invest amou the benefi ility of
of projec Projec been ment by the by the ts ted cing raised nt in worki ts by the
securi ts and t chang total end of end of during benefi
projec for amou the ng the projec
ties directi nature ed the reporti the ts
t comm nt reporti condit end of t has
listing on of (inclu reporti ng reporti have
itted (1) ng ion for the chang
over- ding ng period ng been
invest period their reporti ed
raised partial period (3)＝ period achie
ment intend ng signifi
funds chang (2) (2)/(1) ved
ed period cantly
e)
use
Committed investment projects
2020
Public Techn
Offeri ical
ng of Reno
Produ
Corpo vation
March ction June
rate Projec 2317 3526
17 and No 30 N/A N/A Yes No
Bond t of 4.4 72.27
2020 constr 2021
for Brewi
uction
Qualifi ng
ed (Phas
3984398497.77
Invest e II)
0000%
ors
2020 Projec
Public t of
Opera
Offeri Intelli
tion
ng of March gent
and 2234. 1983
Corpo 17 Upgra No N/A N/A N/A No No
mana 28 0.25
rate 2020 ding
geme
Bond and
nt
for Buildi
Qualifi ng of
382024 Annual Report of Luzhou Laojiao Co. Ltd.
ed the
Invest Inform
ors ation
Mana
geme
nt
Syste
m
Projec
t of
2020 Acquir
Public ing
Offeri Sealin
ng of g
Produ
Corpo Equip
March ction June
rate ment 1204
17 and No 0 30 N/A N/A Yes No
Bond for the 3.3
2020 constr 2021
for Cellar
uction
Qualifi of
ed Huan
Invest gyi
ors Brewi
ng
Base
Projec
t of
Acquir
2020 ing
Public Acces
Offeri sory
ng of Equip
Produ
Corpo ment
March ction June
rate for 4980.
17 and No 0 30 N/A N/A Yes No
Bond Leave 25
2020 constr 2021
for n
uction
Qualifi Makin
ed g for
Invest Huan
ors gyi
Brewi
ng
Base
Subtotal of committed investment 3984 3984 2540 3895
----------
projects 001 00 8.68 26.07
Use of over-raised funds
None
3984398425403895
Total -- -- -- 0 0 -- --
00008.6826.07
Explain project
by project the
situation and
reason for not
reaching plan N/A
progress or
expected
benefits
(including
392024 Annual Report of Luzhou Laojiao Co. Ltd.
reason for
inputting “N/A”for “Whetherthe expected
benefits have
beenachieved”)
Significant
changes of
N/A
project
feasibility
Amount
purpose and
progress of N/A
over-raised
funds
Change of
implementation
site of N/A
investment
projects
Adjustment of
the
implementation
mode of raised N/A
funds
investment
projects
Applicable
On May 14 2019 the Company held the First Extraordinary General Meeting of Shareholders of 2019 which considered
and approved the Proposal on Requesting the Company’s General Meeting of Shareholders to Fully Authorize Chairman
Situation of
of the Board or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate
advance
Bond. According to the Proposal in the event of inconsistency between the payment of the raised funds and the progress
investment and
of the project implementation the Company may make advance investments using other funds (including self-owned
replacement
funds bank project loans etc.) according to the actual situation and replace fund investment other than capital funds
when the raised funds are in place. As of December 31 2024 the Company had replaced advance investments of self-
pooled funds of CNY 653444758.68 using the raised funds.Idle raised
funds used for
temporary N/A
supplementary
liquidity
Amount and
reason for
N/A
surplus of funds
raised
Purpose and The idle raised funds are deposited in the special account No. 9550880046723000135 for raised funds in the Chengdu
whereabouts of Branch of China Guangfa Bank Co. Ltd. the special account No. 517517460013000000860 for raised funds in the Luzhou
unused funds Branch of Bank of Communications Co. Ltd. and the special account No. 631395395 for raised funds in the Chengdu
raised Branch of China Minsheng Banking Corp. Ltd.Problems and
other situation
when raised N/A
funds are used
and disclosed
402024 Annual Report of Luzhou Laojiao Co. Ltd.
Note 1: The subtotal of funds raised for committed projects was CNY 3984 million which was the
combined amount of CNY 4000 million (CNY 2500 million of corporate bonds issued in August 2019
plus CNY 1500 million of corporate bonds issued in March 2020) minus the total issuance costs of
CNY 16 million.Note 2: Because there are uncertainties in the approval and issue time for bond in order to ensure
smooth progress of the projects and protect the interests of the Company’s shareholders the
investment sequence and specific amounts of the corresponding raised funds should be determined
by the Chairman of the Board as authorized by the general meeting of shareholders or other persons
as authorized by the Board of Directors within the scope of the four raised funds investment projects
according to the actual needs provided that the capital funds for each project is no less than 20% of
the total investment.Note 3: As of December 31 2024 the Project of Intelligent Upgrading and Building of the Information
Management System was in the process.Note 4: These raised funds investment projects have helped further expand the Company’s
production and sales and increase its comprehensive competitiveness. The economic benefits of
these projects cannot be measured separately.
7.5.3. Re-purposed funds raised
□ Applicable □ N/A
No such cases in the reporting period
8. Sale of major assets and equity interests
8.1. Sale of major assets
□ Applicable □ N/A
No such cases in the reporting period.
8.2. Sale of major equity interests
□ Applicable □ N/A
412024 Annual Report of Luzhou Laojiao Co. Ltd.
9. Analysis of major subsidiaries
□ Applicable □ N/A
Main subsidiaries and joint companies with an over 10% influence on the Company’s net profit
Unit: CNY
Company Company Business Registere Total Operating Operating
Net assets Net profit
name type scope d capital assets Revenue profit
Sales of
baijiu
series
Luzhou
such as
Laojiao 1000000 8401258 2466368 3001899 1302776 9732243Subsidiary “NationalSales Co. 00.00 791.55 056.96 6416.68 3327.45 326.25
Cellar
Ltd.
1573” and“LuzhouLaojiao”
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ N/A
Notes for major holding companies and joint stock companies
None
10. Structured entities controlled by the Company
□ Applicable □ N/A
11. Outlook for the future development of the Company
11.1. Industry landscape and trends
A. According to data from the National Bureau of Statistics and the China Alcoholic Drinks
Association in 2024 baijiu enterprises above the designated size nationwide produced a total of
4.145 million kiloliters of baijiu representing a year-on-year decrease of 1.8%. These enterprises
generated sales revenue of CNY 796.384 billion and total profit of CNY 250.865 billion. In recent
years production volume among baijiu enterprises above the designated size has continued to
decline as the baijiu industry undergoes a transformation from extensive to refined development
from volume-driven to quality-oriented growth and from high-speed to high-quality development.B. At present alcohol consumption has entered a “dual rationality era” characterized by both price
rationality and consumption rationality. Consumers are placing greater emphasis on health factors
and social responsibility in alcohol consumption demanding that companies elevate product and
service standards in terms of quality and safety. Baijiu enterprises must continuously adapt enhance
intrinsic value and explore new growth paths.
422024 Annual Report of Luzhou Laojiao Co. Ltd.
C. Baijiu marketing has evolved through the product era and channel era and is now in a
convergence period of the brand era traffic era and cultural era. Particularly as the “traffic era”
enters a stage of deep development enterprises must focus on attracting converting and utilizing
consumer traffic innovating brand communication strategies to enhance brand recognition reach
and engagement.D. The trend toward younger consumer demographics has increasingly become a key challenge for
the sustainable development of the baijiu industry. Younger consumers especially Gen Z exhibit
more rational consumption behavior and prefer personalized expressions in alcoholic beverages
“self-love” elements and favored consumption scenarios. Enterprises need to focus on visual appeal
taste brand storytelling and the sensory experience after consumption to meet young consumers’
motivational needs and desires for “self-love”.
11.2. The Company’s development strategy
11.2.1. Development opportunities in the future
A. Since 2024 the Party and the government have introduced a series of policy packages to address
new situations and challenges in economic operations aiming to promote stable growth structural
optimization and positive momentum in the economy. China’s industrial system remains
comprehensive with strong supporting capabilities and a continued role as the “world’s factory”. The
Chinese economy possesses robust resilience and strong capabilities while domestic consumers
retain substantial purchasing power. In this context baijiu consumption maintains both inertia and
potential with a solid foundation.B. In recent years the baijiu industry has continuously enhanced innovation and application of key
technologies facilitating industrial upgrading. The proportion of high-quality base Baijiu has increased
significantly effectively mitigating risks of declining quality reputation. Through standard-setting joint
risk prevention and collaborative anti-counterfeiting efforts the industry has effectively safeguarded
intellectual property rights. By pursuing diversified development and differentiated competition a
diversified and harmonious brand landscape has been formed enhancing resilience to consumption
adjustments and competition from foreign liquor brands. The future of China’s baijiu industry will be
healthier and more sustainable.C. Digitalization and intelligentization are central themes for future economic and social development
and serve as key drivers of enterprise competitiveness. The Company is actively advancing the
construction of “Digital and Intelligent Luzhou Laojiao” establishing a digital-intelligent ecosystem
featuring “one framework five transformations and five connected flows” which has effectively
realized digital-intelligent management intelligent production and smart marketing thereby securing
a first-mover advantage for future competition.
11.2.2. Possible challenges and risks in the future
The trend of market concentration—where strong players grow stronger and weaker players fall
further behind—will become more pronounced in the baijiu industry. Leading production regions
enterprises and brands will continue to consolidate their market positions. Well-known Baijiu brands
face significant challenges of differentiation across product lines. The downward channel expansion
and pricing adjustments by leading brands and regions will intensify competition prompting brands to
optimize strategies reposition products to attract consumers and accelerate reshuffling within the
industry.
432024 Annual Report of Luzhou Laojiao Co. Ltd.
11.2.3. The Company's "14th five-year" development strategy
No change occurred to the Company’s "14th five-year" development strategy. For details see the
2021 Annual Report.
11.3. Completion of the business plan in 2024
For the reporting period operating revenue amounted to CNY 31.196 billion up 3.19% year on year;
and the net profit attributable to the shareholders of the listed company reached CNY 13.473 billionup 1.71% year on year. The Company has failed to complete its business target “to achieve a year-on-year increase in operating revenue by at least 15%" as set by the Board of Directors at the
beginning of the year. This is primarily driven by the clear shift and divergence in the supply-demand
structure of alcohol consumption in recent years. The market has entered a stock-driven phase and
as the economy transitions to new growth drivers the baijiu industry is also entering a new stage of
development. Guided by the principle of high-quality development the Company will make every
effort to promote the construction of “Digital and Intelligent Luzhou Laojiao” ensure healthy channel
operations and stable pricing systems and strive to achieve long-term returns on industrial value and
sustainable corporate development.
11.4. Business plan in 2025
2025 marks the final and critical year of the Company’s 14th Five-Year Plan. In accordance with the
2025 Production and Operation Guidelines approved by the Board of Directors the Company willfocus on the annual theme of “Building Momentum for Breakthroughs Advancing Stable Growththrough Intensive Cultivation; Seizing Opportunities to Drive Development through Reform andInnovation”. The Company will promote high-quality development with the goal of achieving steady
progress in annual operating revenue. (The business plan in 2025 is formulated by the Company
according to the 14th five-year strategic plan and based on its business capabilities. It does not
represent the Company's profit forecast for 2025 and is not a commitment by the Company. Whether
it can be achieved depends on many factors such as changes in market conditions and efforts of the
operation team. There are great uncertainties. Investors are kindly reminded to pay special attention).The main work plan is as follows:
A. Building momentum for breakthroughs advancing stable growth through intensive
cultivation
a. Focusing on three priorities to ensure sales investment
First the Company will vigorously “expand coverage” by accelerating market and team
expansion intensively cultivating base markets and continuing to make breakthroughs in strategic
markets. The sales team will strengthen talent reserves and expand personnel when appropriate.Second the Company will vigorously “increase bottle opening” by promoting the five-code
correlation and enabling digital intelligence intensifying public relations efforts guiding consumption
orientation and encouraging bottle opening and consumption. Third the Company will vigorously
“expand touchpoints” by optimizing distributor selection broadening channels and enhancing
terminal display thereby increasing product availability and ensuring stable and healthy sales growth.b. Focusing on three tasks to maintain healthy market conditions
442024 Annual Report of Luzhou Laojiao Co. Ltd.
First the Company will enhance operational capability by implementing digital-intelligent market
management intensifying market inspections and anti-counterfeiting efforts and safeguarding the
core interests of the Company and consumers. Second the Company will increase channel
profitability by closely monitoring customer profitability and maintaining a profit margin higher than
that of competing products. Third the Company will strengthen brand image by firmly upholding
price stability and brand positioning ensuring that the National Cellar 1573 maintains its position
among the “three high-end baijiu brands” while Luzhou Laojiao series products remain firmly
established in their respective price ranges.c. Seizing three strategic high grounds to build competitive moats
First the Company will seize the cultural high ground by leveraging the historic opportunity of the
China Baijiu Museum being established in Luzhou. The Company will enhance the display and
presentation of the “Living Dual National Treasures” and historical artifacts and develop cultural
experience scenarios to create strong consumer appeal. Second the Company will seize the
brand high ground by building an integrated internal and external brand communication matrix
updating and upgrading promotional campaigns enhancing evaluation of promotional effectiveness
and creating strong momentum to empower sales. Third the Company will seize the innovationhigh ground by unwaveringly advancing “lower alcohol content younger consumer orientationscenario-based consumption and digital and intelligent transformation” striving to keep pace with
rapid innovation cycles and where appropriate develop ahead of the curve.B. Seizing opportunities to drive development through reform and innovation
a. Enhancing core technologies to strengthen support for development
In quality assurance the Company will uphold solid-state pure grain fermentation comprehensive
quality management throughout the process and standards that exceed national requirements. In
production assurance the “Huangyi Brewery Eco-Park” and the “Intelligent Packaging Center” will
fully leverage new productive forces and dynamically adjust production output based on sales
demand. In traditional brewing areas the Company will advance integrated development of
production and exhibition. In R&D assurance the Company will focus on delivering tangible
results—transforming more research into productive capacity securing more awards through patent
applications and actively pursuing provincial and national science and technology accolades. The
Company will also strengthen science communication and innovation outreach to deepen consumer
understanding and appreciation of baijiu.b. Enhancing core capabilities to win in market competition
In service improvement the Company will shift from traditional control-oriented thinking to service-
oriented thinking. The management system must excel both as a “manager” and a “service provider”.In efficiency improvement the Company will ensure continued safe and sound development while
further optimizing systems and processes to build a modern management system that is responsive
and efficient. In talent development the Company will focus on cultivating supporting developing
and empowering its people—providing opportunities for those who are motivated platforms for those
who are capable and incentives for those who deliver—thereby enhancing employees’ sense of
belonging happiness and achievement.c. Upholding core principles to ensure steady and sustainable progress
452024 Annual Report of Luzhou Laojiao Co. Ltd.
First the Company will strengthen Party building by enhancing political ideological
organizational and institutional development to foster unity and collective momentum. Second the
Company will reinforce integrity by emphasizing accountability strengthening oversight promoting
sound conduct and adopting both preventive and corrective measures to uphold Luzhou Laojiao’s
positive reputation in the industry. Third the Company will strengthen safety and environmental
protection by comprehensively identifying and addressing issues and laying a solid foundation in
these areas. Fourth the Company will enhance its sense of responsibility by ensuring sound
corporate governance that is accountable to shareholders and by fulfilling its social responsibilities
through advancing ESG system development and contributing to a harmonious society.
12. Visits paid to the Company for purposes of research
communication interview etc. in the reporting period
□ Applicable □ N/A
Main inquiry
Index to main
information
Date of visit Place of visit Way of visit Type of visitor Visitor inquiry
and materials
information
provided
Conference Industry
March 19 Center of Institutional trends and http://www.cni
Field survey Institution
2024 Huaxi investor company nfo.com.cn/
Securities performance
Communicatio Industry
Company n through an Institutional trends and http://www.cni
April 29 2024 Institution
Headquarters online investor company nfo.com.cn/
platform performance
Communicatio Industry
Company n through an trends and http://www.cni
May 9 2024 Other All investors
Headquarters online company nfo.com.cn/
platform performance
Institutional Industry
Company and individual trends and http://www.cni
June 27 2024 Field survey Institution
Headquarters investors and company nfo.com.cn/
media performance
Communicatio
September 2 Company n through an Institutional Company http://www.cni
Institution
2024 Headquarters online investor performance nfo.com.cn/
platform
Communicatio Industry
September Company n through an trends and http://www.cni
Other All investors
12 2024 Headquarters online company nfo.com.cn/
platform performance
Communicatio Industry
November 1 Company n through an Institutional trends and http://www.cni
Institution
2024 Headquarters online investor company nfo.com.cn/
platform performance
462024 Annual Report of Luzhou Laojiao Co. Ltd.
13. Development and implementation of market value management rules and
valuation enhancement plan
Indicate whether the Company has developed market value management rules.□ Yes □ No
Indicate whether the Company has disclosed its valuation enhancement plan.□ Yes □ No
In order to strengthen the Company's market value management effectively promote the Company to
enhance investment value enhance investor returns and safeguard investor interests in accordance
with the Company Law of the People's Republic of China the Securities Law of the People's Republic
of China the Information Disclosure Management Measures for Listed Companies the Listed
Company Regulatory Guideline No. 10 - Market Value Management and other applicable laws
regulations normative documents and the Company's Articles of Association etc. the Market Value
Management Rules of Luzhou Laojiao Co. Ltd. has been formulated upon approval at the Sixth
Meeting of the11th Board of Directors.
14. Implementation of the action plan for "Dual Enhancement of
Development Quality and Shareholder Returns"
Indicate whether the Company has disclosed its action plan for "Dual Enhancement of Development
Quality and Shareholder Returns".□ Yes □ No
In accordance with the guiding ideology of "further invigorating the capital market and boosting investor
confidence" proposed at the Political Bureau meeting of the CPC Central Committee and "vigorously
improving the quality and investment value of listed companies taking more powerful and effective
measures and focusing on stabilizing the market and confidence" proposed at the State Council
Executive Meeting in order to safeguard the interests of all shareholders boost investor confidence
and promote the long-term healthy and sustainable development of the Company Luzhou Laojiao Co.Ltd. (hereinafter referred to as "the Company") has formulated its action plan for "Dual Enhancement of
Development Quality and Shareholder Returns" in combination with the Company's development
strategy business picture and financial condition. The specific measures are as follows:
A. Strengthening confidence in strategic planning and aiming at the Company's development
goals
The Company has formulated the "136" strategic plan for the 14th Five-Year Plan based on the
development idea of "giving play to advantages tackling areas of weaknesses improving quality
building strength and seeking rejuvenation". Specifically "1" refers to one development goal namely
firmly insisting on the goal of regaining the "Top 3" ranking among the Chinese baijiu industry; "3" refers
to three major development principles namely insisting on brand leadership and fully enhancing the
value of Chinese famous baijiu brands insisting on taking quality as foundation and sparing no efforts
to build a core production area of world famous baijiu and insisting on take culture as the foundation
472024 Annual Report of Luzhou Laojiao Co. Ltd.
and striving to build a pilgrimage site for Chinese baijiu culture; "6" refers to "Six-in-One" Luzhou
Laojiao namely building a strong-brand Luzhou Laojiao a quality Luzhou Laojiao a cultural Luzhou
Laojiao an innovative Luzhou Laojiao a digital and intelligent Luzhou Laojiao and a harmonious
Luzhou Laojiao. Since the 14th Five-Year Plan period the Company has firmly implemented the "136"
development strategy won key battles such as expanding production capacity upgrading brands and
strengthening teams and has entered a stage of high-quality development. The National Cellar 1573
brand achieved comprehensive coverage in the domestic market and was fully expanding in overseas
markets; the Luzhou Laojiao brand built a strong basis in the granary market and has gained a stable
and penetrating presence in the opportunity market with much good news of the revival of famous
baijiu; the breakthrough project of expanding key sales areas has been deeply promoted market
consumption has been further activated and market share has been further increased. In terms of
digital marketing and brand building channel development and public relations empowerment online
expansion and offline integration and overseas layout and domestic boosting a clearer and more
effective path has been created with the characteristics of Luzhou Laojiao which has made
contributions to the healthy and rapid development of the Company. During the 14th Five-Year Plan
period the compound growth rate of the Company's net profit attributable to the parent company
reached 22.38%. In 2024 operating revenue amounted to CNY 31.196 billion up 3.19% year on year;
and the net profit attributable to the parent company reached CNY 13.472 billion up 1.71% year on
year. Various performance indicators reached a new historical high. In the future the Company will
continue to steadfastly implement the principle of "growing as fast as possible on the basis of healthy
development" and resolutely "compete" for better performance while benchmarking against
outstanding enterprises in the industry and main competitors and move towards the established goals
prudently and meticulously.B. Deeply promoting technological innovation and strengthening the transformation of scientific
research achievements
In recent years the Company has attached great importance to the development mode of innovation
leading progress integrated innovation forces gathered innovation resources tackled the frontier and
common key technologies of the baijiu industry and promoted the transfer and transformation of
achievements and industry sharing thus promoting the transformation of the baijiu industry from
experience oriented to technological oriented. This has made important contributions to the
technological innovation transformation and upgrading of the baijiu industry in China. First the
Company has successfully established multiple major national-level technological innovation platforms
including the National Engineering Research Centre of Solid-State Brewing the National Industrial
Design Centre and the National Postdoctoral Workstation. The Company has formed a comprehensive
technological innovation platform system with the National Engineering Research Centre of Solid-State
Brewing as the R&D core covering basic R&D talent cultivation and engineering transformation in
multiple fields and has built a highland for technological innovation in the entire industry. Second the
Company has continuously increased investment in technological innovation research and
development and continuously enhanced its independent innovation capabilities. In the past five years
the total R&D investment reached CNY 1035.4329 million and the compound annual growth rate of
innovation R&D investment reached 26.40%. Third the Company has actively carried out collaborative
innovation between the Company universities and research institutions establishing cooperative
relationships with more than 30 universities and institutions such as Tsinghua University and Shanghai
482024 Annual Report of Luzhou Laojiao Co. Ltd.
Jiao Tong University. Through various forms including joint laboratory building joint undertaking of
major projects joint training of talents and establishment of open projects the Company has carried
out extensive technical exchange and cooperation forming a good pattern of diversified cooperation
innovative development and mutual benefit between universities and the Company. Fourth the
Company has attached great importance to the creation and protection of intellectual property rights
and regarded intellectual property building as an important development strategy for the Company. The
number of applications and authorizations for invention and utility model patents has maintained a rapid
growth. Up to now the Company has been granted 583 patents including 211 invention patents and
372 utility models both of which are at the forefront of the industry. In the future the Company will
continue to leverage its advantages in scientific research platforms talent and publicity to
comprehensively consolidate Luzhou Laojiao's leading position in scientific research.C. Highly valuing standardized operations and improving corporate governance level
The Company has continuously consolidated the foundation of corporate governance improved the
corporate governance structure actively studied laws and regulations and the latest regulatory policies
and standardized the Company's management system. The Company has also clearly defined the
responsibilities and authorities of the Board of Directors the Board of Supervisors general meetings of
shareholders and the management in decision-making execution and supervision and regulated the
rights and obligations of the Company and shareholders. The Company has vigorously promoted the
systematization standardization and digitalization of corporate governance synchronously enhanced
the information-based level in the Board of Directors the Board of Supervisors and general meetings of
shareholders and incorporated the building of the integrated securities business platform into the
"digital and intelligent Luzhou Laojiao" system to continuously improve the level of corporate
governance. In order to further improve the Company's risk management system and ensure that the
directors supervisors and senior management of the Company fully perform their duties within their
scope of responsibilities the Company has actively promoted the purchase of liability insurances for
directors supervisors and senior management. Meanwhile the Company has become the first listed
company in the industry to sign a liability insurance agreement for directors supervisors and senior
management which has been approved by a general meeting of shareholders. In the future the
Company will continue to promote information technology building to empower corporate governance
continuously improve operational efficiency and scientific decision-making level.D. Fulfilling the information disclosure obligation compliantly and strictly guarding the defense
line of insider trading
The Company takes standardized information disclosure as the bottom line conducts information
disclosure with high standards and effectively respects and safeguards the legitimate rights and
interests of investors. First the Company has established and improved a management system
centered on major information internal reporting system temporary and periodic report preparation
procedure insider information management system and other policy documents and continuously
promoted the standardized and procedural business work to ensure accurate and rigorous information
disclosure. Second the Company has adhered to investor demand orientation actively promoted
voluntary information disclosure attached importance to the pertinence readability and effectiveness
of disclosure content and continuously improved the transparency of information disclosure of the
Company. The Company has been awarded the highest A grade in the information disclosure
492024 Annual Report of Luzhou Laojiao Co. Ltd.
assessment of listed companies on the Shenzhen Stock Exchange for several consecutive years. In the
future the Company will continuously improve the transparency of information disclosure and
continuously display information on the Company's operations at multiple levels angles and
dimensions.E. Efficiently carrying out investor relations activities and conveying the Company's investment
value
The Company has actively adapted to the needs of investor research and carried out investor
relationship management through a combination of "inviting in" and "going out" models. It has actively
communicated with investors on industry hot topics the Company's business picture and development
strategies through the Shenzhen Stock Exchange investor interaction platform establishment of
investor hotlines improvement of investor relationship websites hosting online collective reception
days and on-site investor surveys. In doing so the Company has conveyed its investment value and
safeguarded investors' right to know. At the same time the Company has adhered to investor demand
orientation. Based on the continuous growth of overseas shareholders in recent years the Company
has innovatively used overseas accounts such as Facebook twitter and IG to simultaneously publish
the Company's performance promotion shortened the disclosure time interval between Chinese and
English versions and conducted overseas roadshows to ensure the timeliness of information
acquisition for overseas investors. Going forward the Company will continue to build a two-way
communication mechanism for a deep understanding and positive interaction with the capital market to
transmit the Company's value. (The Company's investor relations website has been updated. Investors
are welcome to visit https://000568.iryi.com/).F. Improving shareholder returns and safeguarding the legitimate rights and interests of
shareholders
The Company adheres to the implementation of an active profit distribution policy attaches importance
to reasonable returns to investors while considering the sustainable development of the Company and
maintains the continuity and stability of profit distribution. The Company clearly stipulates in its Articles
of Association that the Company may distribute dividend in cash or stocks and the dividend should not
be less than 50% of the distributable profit realized for that year and the profit to be distributed in cash
should not be less than 30% of the distributable profit realized for that year. By the end of 2024 the
Company has paid out a cumulative cash dividend amount of CNY 43.301 billion with a dividend
payout ratio of 60.93% ranking among the top among more than 5000 listed companies in the
Shanghai and Shenzhen stock markets. This has allowed all shareholders to fully share the Company's
development achievements and effectively maintained the Company's good image in the capital
market. In order to further improve the profit distribution policy establish a scientific sustained and
consistent shareholder return mechanism and enhance investment value the Company has formulated
the 2024-2026 Shareholder Dividend Plan. The Company's annual cash dividends shall account for no
less than 65% 70% and 75% of the net profit attributable to shareholders of the listed company in
2024 2025 and 2026 respectively and shall not be less than CNY 8.5 billion. In principle cash
dividends can be paid twice a year.G. Encouraging the controlling shareholder to actively increase its shareholdings to maintain
the stability of the capital market
502024 Annual Report of Luzhou Laojiao Co. Ltd.
Based on its recognition of the Company's long-term value and its firm belief in the Company's
development prospects the controlling shareholder of the Company Luzhou Laojiao Group Co. Ltd.increased its holdings in the Company by 1140200 shares in total through call auction trading during
the period from December 15 2023 to June 15 2024 accounting for 0.08% of the total share capital of
the Company with a total amount of approximately CNY 200.9629 million. Additionally Laojiao Group
plans to increase its shareholdings in the Company through call auction trading within six months from
March 14 2025 using special loans and its own funds. The amount of increase will not be less than
CNY 150 million and not more than CNY 300 million.Moving forward the Company will focus on the development theme of “Building Momentum forBreakthroughs Advancing Stable Growth through Intensive Cultivation; Seizing Opportunities to DriveDevelopment through Reform and Innovation” actively take responsibility keep diligent and make solid
progress while striving for high-quality development. The Company will also firmly establish a sense of
return to shareholders effectively implement the "dual enhancement of development quality and
shareholder returns" action plan significantly enhance investors' satisfaction and actively contribute to
stabilizing the capital market and investor confidence.
512024 Annual Report of Luzhou Laojiao Co. Ltd.
Section IV Corporate Governance
1. Basic situation of corporate governance
Since it was listed in accordance with the Corporate Law the Securities Law The Listed Company
Governance Standards and other laws administrative regulations and departmental rules and
normative documents the Company has constantly perfected corporate governance structure
standardized its operation established the rules and system on the basis of the Company's articles of
association whose main framework is the rules of procedure of the shareholders' general meeting
rules of procedure of the board of directors and rules of procedure of the board of supervisors which
is formed the management system whose main structure is the shareholders meeting board of
directors board of supervisors and management. During the reporting period the Company won anumber of honors and awards including “The 26th Golden Bull Awards—Best Investment ValueAward” “The 18th Top 100 Most Valuable Main Board Listed Companies” and “Best Practice Casefor Listed Company Boards in 2024”.Any incompliance with the applicable laws and administrative regulations as well as regulations
related to the governance of listed companies issued by the CSRC
□ Yes □ No
There is no incompliance with the applicable laws and administrative regulations as well as
regulations related to the governance of listed companies issued by the CSRC.
2. Independency of assets personnel finance organizations and
businesses which are separated from the controlling shareholder and
the actual controller
The Company has an independent and complete production and operation system and independent
decision-making ability. There is no horizontal competition between the Company and the controlling
shareholders and its subsidiaries. The Company has daily affiliated transactions with the controlling
shareholders and its subsidiaries. Such daily affiliated transactions belong to the need of rational
allocation of resources and do not affect the independence of the Company. For affiliated
transactions the Company has strictly fulfilled the relevant decision-making procedures and
information disclosure obligations and implemented the system of Non-executive directors' prior
examination and avoidance system of related directors (shareholders).
2.1 In the aspect of assets
Asset integrity. There are clear ownership and independency of the Company's assets invested by
controlling shareholders. The Company has an independent and complete production supply sales
system and auxiliary production system and supporting facilities. The industrial property rights
trademarks and non-patented technology and other intangible assets are owned by the Company.There is no situation that the controlling shareholders occupy and transfer the assets of the company.
522024 Annual Report of Luzhou Laojiao Co. Ltd.
2.2. In the aspect of business
Business apart. The Company is totally independent in the operation production and sales of baijiu
series of “National Cellar 1573” and “Luzhou Laojiao” . It has the ability to operate independently in
the market. The board of directors and the management can independently make production and
operation decisions within the corresponding authority.
2.3 In the aspect of personnel
The Company has built independent labor management personnel management and salary
management. The Company has established a relatively complete labor management system and
post responsibility system. Meanwhile the Company's senior management personnel all receive
salary in the Company but not at the controlling shareholders.
2.4 In the aspect of organization
Organization independence. The Company has independent production management organization
and system independent office and production management place and independent management
organization functional organization and branch.
2.5 In the aspect of finance
Financial independence. The Company has completed and independent financial department.Independent accounting system and financial management are established. The Company separately
sets bank accountants conducts external settlement and pays taxes according to law.
3. Horizontal competition
□Applicable □ N/A
4. Annual meeting of shareholders and special meetings of
shareholders convened during the reporting period
4.1. Meetings of shareholders convened during the reporting period
Investor
Meeting Type Convened date Disclosure date Resolutions
participation ratio
Announcement
on Resolutions of
The 2023 Annual
2023 Annual General Meeting
General Meeting
General Meeting 65.26% June 27 2024 June 28 2024 of Shareholders
of Shareholders
of Shareholders Announcement
No: 2024-36
(http://www.cninf
o.com.cn/)
532024 Annual Report of Luzhou Laojiao Co. Ltd.
4.2. Special meetings of shareholders convened at the request of preferred
shareholders with resumed voting rights
□Applicable □ N/A
5. Directors supervisors and senior management
5.1 General information
Shar
es
Shares
incre
Shares decrea Other
ased Shares
held by the sed increa Reas
durin held by the
Incumb beginning during se/ on for
g the end of the
Name Gender Age Title ent/ Period of service of the the decre share
report reporting
Former reporting reportin ase chan
ing period
period g (shar ges
perio (share)
(share) period e)
d
(share)
(shar
e)
Chairman
Liu June 30 2015 to
Male 55 of the Current 288087 288087
Miao June 27 2027
board
Director
Lin June 30 2015 to
Male 51 General Current 95900 95900
Feng June 27 2027
manager
Director
December 29
Zhang Deputy
Male 53 Current 2015 to June 27 76700 76700
Suyi general
2027
manager
Director
Xiong
Deputy June 29 2021 to
Pingtin Female 49 Current 62800 62800
general June 27 2027
g
manager
Non-
Chen June 29 2021 to
Male 67 executive Current
You’an June 27 2027
director
Non-
Lyu June 29 2021 to
Male 61 executive Current
Xianpei June 27 2027
director
Li Non-
June 29 2022 to
Guowa Male 61 executive Current
June 27 2027
ng director
Li Non-
June 27 2024 to
Liangch Male 50 executive Current
June 27 2027
en director
Qian External June 30 2015 to
Male 61 Current
Xu director June 27 2027
September 13
Ying External
Male 55 Current 2016 to June 27
Hanjie director
2027
Xiong Male 48 External Current June 27 2024 to
542024 Annual Report of Luzhou Laojiao Co. Ltd.
Bo director June 27 2027
Chairman
of the
Yang June 29 2021 to
Male 48 Board of Current
Ping June 27 2027
Supervis
ors
Li
Supervis June 27 2018 to
Guangji Male 55 Current
or June 27 2027
e
Li Supervis June 29 2021 to
Female 38 Current
Lunyu or June 27 2027
Zhou Supervis June 27 2024 to
Female 51 Current
Lei or June 27 2027
Zhang Supervis June 27 2024 to
Female 50 Current
Li or June 27 2027
Tang Deputy December 24
Donglia Male 47 general Current 2024 to June 27
ng manager 2027
Shen Deputy June 30 2002
Caihon Male 59 general Current to June 27 180481 180481
g manager 2027
Xie March 6 2015 to
Female 55 CFO Current 76700 76700
Hong June 27 2027
Deputy
He June 30 2015 to
Male 58 general Current 76700 76700
Cheng June 27 2027
manager
Deputy
general
September 20
manager
Li Yong Male 48 Current 2021 to June 27 62800 62800
Secretary
2027
of the
board
Zhao Deputy
August 2 2024
Bingku Male 45 general Current 30000 30000
to June 27 2027
n manager
Director
Wang Deputy Resign March 6 2015 to
Male 61 76700 76700
Hongbo general ation February 2 2024
manager
Non-
Liu Resign June 27 2018 to
Male 55 executive
Junhai ation June 27 2024
director
Gong
External Resign June 29 2022 to
Zhengy Female 55
director ation June 27 2024
ing
Supervis Resign June 29 2022 to
Ou Fei Male 39
or ation June 27 2024
Tang Supervis Resign June 29 2022 to
Male 48
Shijun or ation June 27 2024
Total -- -- -- -- -- -- 1026868 0 0 0 1026868 --
Whether any director supervisor or senior management resigned before the expiry of their periods of
service during the reporting period
□ Yes □ No
During the reporting period Mr. Wang Hongbo resigned as he reached the statutory retirement age.
552024 Annual Report of Luzhou Laojiao Co. Ltd.
Changes in directors supervisors and senior management
□ Applicable □ N/A
Name Title Type Date Reason
Deputy general
Tang Dongliang Appointed December 24 2024 Appointed
manager
Deputy general
Zhao Bingkun Appointed August 02 2024 Appointed
manager
Non-executive
Li Liangchen Elected June 27 2024 Change of term
director
Xiong Bo External director Elected June 27 2024 Change of term
Zhou Lei Supervisor Elected June 27 2024 Change of term
Zhang Li Supervisor Elected June 27 2024 Change of term
Director Deputy
Wang Hongbo Resignation February 02 2024 Retirement
general manager
Resignation upon the
Non-executive
Liu Junhai expiry of period of June 27 2024 Change of term
director
service
Resignation upon the
Gong Zhengying External director expiry of period of June 27 2024 Change of term
service
Resignation upon the
Ou Fei Supervisor expiry of period of June 27 2024 Change of term
service
Resignation upon the
Tang Shijun Supervisor expiry of period of June 27 2024 Change of term
service
5.2 Employment information
Professional background work experience and major duties of current directors supervisors and
senior management.Mr. Liu Miao male born in 1969 MBA of Wright State University in the USA Master of Chinese
Brewing professorate senior engineer and senior marketing specialist. He used to serve as planning
minister general manager of Sales Company general manager assistant and deputy general
manager of the Company. At present he is secretary of the party committee and chairman of the
board in Laojiao Group secretary of the party committee and chairman of the board in the Company
as well as chairman of the board in Luzhou Sanrenxuan Liquor Industry Co. Ltd.Mr. Lin Feng male born in 1973 Master degree professorate senior economist senior marketing
specialist. He was deputy general manager and general manager of Sales Company director of
marketing director of human resources chief dispatcher deputy general manager of the Company.At present he is deputy secretary of the party committee director and general manager of the
Company.Mr. Zhang Suyi male born in 1971 PhD professorate senior engineer representative inheritor of
Sichuan Intangible Cultural Heritage. He was a worker production team leader and assistant
562024 Annual Report of Luzhou Laojiao Co. Ltd.
superintendent at Brewing Workshop No. 6 vice director and director of Gouchu Center and deputy
chief engineer of the Company as well as deputy general manager and director of the Baijiu Body
Design Centre of Brewing Company. At present he is director deputy general manager and director
of safety and environmental protection of the Company.Ms. Xiong Pingting female born in 1975 holds a master's degree and the titles of Professorate
Human Resource Management Professional and Political Mentor. Positions previously held by her
include Deputy Director and Director of the Office of Luzhou Laojiao Sales Co. Ltd. Deputy Director
of the Office of Jiangyang District People's Government of Luzhou (temporary) Deputy Director of the
Human Resources Department and Corporate Management Department of Luzhou Laojiao Co. Ltd.General Manager of the Brand Operation Department Director of the Office (concurrently) Secretary
of the general Party branch and Deputy General Manager of Luzhou Laojiao Sales Co. Ltd. At
present she is member of the Party Committee Director Deputy General Manager and Chairman of
the Labor Union of the Company.Mr. Chen You'an male born in 1958 holds an Eng.D. degree in management science and
engineering and is a Senior Engineer. Currently he is Independent Director of Nomura Orient
International Securities Co. Ltd. Hexie Health Insurance Co. Ltd. CPIC Fund Management Co. Ltd.and Tech-bank Food Co. Ltd. He has served as an non-executive director of the Company since
June 2021.Mr. Lyu Xianpei male born in 1964 holds a Ph.D. degree in accounting. Positions previously held by
him include Vice Dean at the School of Accounting and Director at the Auditing Department of
Southwestern University of Finance and Economics. Currently he serves as Professor and Doctoral
Supervisor at Southwestern University of Finance and Economics Chairman of Sichuan Society of
Education Audit Director of Sichuan State-owned Assets Operation Puhui Financing Guarantee Co.Ltd. as well as Independent Director of Sichuan Teway Food Group Co. Ltd. and North Chemical
Industries Co. Ltd. He has served as a non-executive director of the Company since June 2021.Mr. Li Guowang male born in 1963 holds a postgraduate degree and is a senior economist. He
once served as the Deputy Director of the Information Center of the Ministry of Commerce Deputy
General Manager of Futures Brokerage Co. Ltd. under China Banking and Insurance Information
Technology Management Co. Ltd. General Manager of the Shanghai Securities Business
Department of China Banking and Insurance Information Technology Management Co. Ltd. Director
of the Strategic Development Department of the R&D Center of China Galaxy Securities Co. Ltd.General Manager of the R&D Center of Shanghai Securities Co. Ltd. Marketing Director of Galaxy
Asset Management Co. Ltd. Director of the Research Institute of Hwa Bao Securities Co. Ltd. Chief
Economist and Director of the Research Institute of Zhongshan Securities Co. Ltd. Chief Economist
of Shanghai Dalu Futures Co. Ltd. and Deputy Director of the Green Finance Committee of the
Jiangsu Financial Association. Currently he is a member of the Association of Zhejiang Talent in
Shanghai. He has served as a non-executive director of the Company since June 2022.Mr. Li Liangchen male born in 1974 MBA. He used to be senior partner of Shanghai AllBright
572024 Annual Report of Luzhou Laojiao Co. Ltd.
(Hangzhou) Law Offices and lawyer of Beijing Tianyuan (Hangzhou) Law Firm. At present he is
partner of Beijing Zhong Lun (Hangzhou) Law Firm as well as non-executive director of Gree Real
Estate Co. Ltd. Sijin Intelligent Forming Machinery Co. Ltd. Ningbo FLK Technology Co. Ltd. (non-
listed) and Anhui Yingfa Ruineng Technology Co. Ltd. (non-listed). He has served as a non-
executive director of the Company since June 2024.Mr. Qian Xu Male born in 1963 PhD. He was general manager and chairman of the board of Beijing
Enterprises Real-Estate Group Co. Ltd. chairman of the board and general manager of Beijing
Enterprises Urban Development Group Co. Ltd. chairman of the board of Beijing Properties
(Holdings) Limited (listed on the Hong Kong Stock Exchange) and non-executive director of CAQ
Holdings Limited (listed on the Australian Stock Exchange). He has served as a director of the
Company since June 2015.Mr. Ying Hanjie Male born in 1969 Doctor of Biochemistry professor and academician of the
Chinese Academy of Engineering. He was deputy director of Pharmacy and Life Sciences School of
Nanjing University of Technology and chairman of the board of Nanjing Biotogether Co. Ltd. At
present he is president of Soochow University director of National Biochemical Engineering
Technology Research Center of Nanjing Tech University director of Nanjing High Tech University
Biological Technology Research Institute Co. Ltd. and director of Jiangsu Institute of Industrial
Biotechnology. He has served as a director of the Company since September 2016.Mr. Xiong Bo male born in 1976 Master of Public Administration. He used to be deputy chief and
chief of the Policy Regulations and Talent Planning and Development Department of Luzhou
Municipal Human Resources Bureau deputy chief of Secretary Department I of Luzhou Municipal
Government Office deputy director of office and chief of the Procurement Department of Luzhou
Municipal Finance Bureau director of Luzhou Financial Supervision and Inspection Bureau as well
as member of the party committee and deputy director of the State-owned Assets Supervision and
Administration Commission of Luzhou. At present he is party secretary and chairman of the board of
Luzhou State Owned Capital Operation Management Co. Ltd. as well as full-time external director of
Laojiao Group XingLu Group Luzhou Industrial Development Investment Group Co. Ltd. and
Luzhou Development Holding Group Co. Ltd. He has served as a director of the Company since
June 2024.Mr. Yang Ping male born in 1976 professorate senior engineer holds a doctoral degree. Positions
previously held by him include deputy director and director at the National Cellar Workshop Section
director at the Production and Technology Department and deputy general manager of Luzhou
Laojiao Brewing Co. Ltd. Currently he is chairman of the Board of Supervisors and member of the
Discipline Inspection Committee of the Company as well as secretary of the Party Committee and
general manager of Luzhou Laojiao Brewing Co. Ltd.Mr. Li Guangjie male born in 1969 Master degree economist. He was manager of Planning
Department of the Company deputy director of Sales Company manager of Import and Export
company general manager assistant and deputy general manager of Sales Company. At present he
582024 Annual Report of Luzhou Laojiao Co. Ltd.
is supervisor and management consultant of Sales Company.Ms. Li Lunyu female born in 1986 holds a university degree as well as is Assistant Political Mentor
and Assistant Engineer. Positions previously held by her include Publicity Officer at the Office of the
CPC Luzhou Laojiao Committee Deputy Head and Manager of Tianjin Division of the Business
Department for Luzhou Laojiao Tequ 60 and 80 Secretary of the CPC National Cellar Section Branch
of Luzhou Laojiao Brewing Co. Ltd. Director of the Office of the CPC Luzhou Laojiao Brewing
Committee and Director of the Discipline Inspection Department and Vice Chairman of the Labor
Union of Luzhou Laojiao Brewing Co. Ltd. Currently she is Supervisor Vice Chairman of the Labor
Union and Director of the Office of the Labor Union of the Company.Ms. Zhou Lei female born in 1973 Master degree accountant. She used to work in the Financial
Department of the Company and in the Investment and Financing Department of Luzhou Laojiao
Zhitong Trading Co. Ltd. At present she is supervisor and head of finance of the Financial
Management and Operation Center of the Company.Ms. Zhang Li female born in 1975 Bachelor’s degree senior accountant. She used to work in The
First Construction Department of China Railway Construction 15th Bureau the Chengdu branch of
China Railway Construction 15th Bureau China Railway Construction 15th Bureau Group Chengdu
Construction Co. Ltd. and the Financial Department of the Company. At present she is supervisor
and comprehensive auditor of the Audit Office of the Company.Mr. Tang Dongliang male born in 1977 holds a postgraduate degree. He used to be the deputy head
of the People’s Government of Longmatan District Luzhou City a member of the standing committee
and the deputy head of the government of Jiangyang District Luzhou City and the deputy secretary
of the committee and the head of the government of Jiangyang District Luzhou City. He is now a
deputy general manager of the Company.Mr. Shen Caihong Male born in 1966 Master degree professor-level senior engineer one of the
first batch of representative inheritors of national intangible cultural heritage one of the first batch of
“Master of Chinese Brewing” and one of the first batch of "Sichuan craftsmen". He was manager of
the Company’s leaven-making branch manager of base baijiu company general manager assistant
and director of production department. At present he is deputy general manager chief engineer
director of national solid brewing engineering technology research center and chairman of the board
of Luzhou Pinchuang Technology Co. Ltd.Ms. Xie Hong female born in 1969 Master degree senior accountant and professorate senior
economist. She was section chief of Treasury Section of the Finance Bureau section chief of Non-tax
Revenue Collection Management Section director of Luzhou Municipal Finance Treasury Payment
Center chief accountant of Luzhou Finance Bureau. At present she is a member of the party
committee and CFO of the Company.Mr. He Cheng male born in 1966 Master of Management Economics of Nanyang Technological
592024 Annual Report of Luzhou Laojiao Co. Ltd.
University senior engineer expert who receives special allowances from the State Council Master of
Chinese Baijiu and Master of Chinese Brewing. He was chief dispatcher of the Company general
manager of Brewing Company as well as director of the business administration department director
of the human resources department director of the quality department and director of the dispatching
center of the Company. At present he is a member of the party committee deputy general manager
chief quality officer and director of food safety of the Company.Mr. Li Yong male born in 1977 holds a postgraduate degree and is a brewing engineer. He once
worked in the education sector at the Party and government organizations at the township level as
well as departments at the county and municipal levels. Also he used to be Director of the Group
Office of Luzhou Laojiao Group Director of the General Manager’s Office of the Company as well as
Deputy Secretary of the Party Committee Secretary of the Discipline Inspection Committee and
Deputy General Manager of Sales Company. Currently he is Deputy General Manager Secretary of
the Board and member of the Discipline Inspection Committee of the Company as well as Chairman
of the Board of Luzhou Laojiao Technology Innovation Co. Ltd.Mr. Zhao Bingkun male born in 1979 holds a university degree and is Senior Engineer. He used to
be head of office and deputy general manager of Brewing Company deputy head (temporary) of the
People's Government of Longmatan District Luzhou City and general manager of the Packaging
Materials Sourcing Centre of the Company. At present he is deputy general manager of the Company.Position in shareholder-holding companies
□ Applicable □ N/A
Any
Name of Position in remunerations
shareholder- shareholder- Beginning date Ending date of received from
Name
holding holding of term term shareholder-
companies companies holding
companies
Secretary of the
party committee
Liu Miao Laojiao Group 11 March 2022 No
Chairman of the
board
Full-time external
Xiong Bo Laojiao Group July 5 2023 No
director
Full-time external
Xiong Bo XingLu Group July 5 2023 No
director
Position in other companies
□ Applicable □ N/A
Any
Name of other Position in other Beginning date Ending date of remunerations
Name
companies companies of term term received from
other companies
Nomura Oriental
Non-executive
Chen You’an International
director
Securities Co.
602024 Annual Report of Luzhou Laojiao Co. Ltd.
Ltd. Hexie
Health Insurance
Co. Ltd. CPIC
Fund
Management
Co. Ltd. and
Tech-bank Food
Co. Ltd.Sichuan Society
Lyu Xianpei of Education Chairman
Audit
Sichuan State-
owned Assets
Operation Puhui
Lyu Xianpei Director
Financing
Guarantee Co.Ltd.Sichuan Teway
Food Group Co.Ltd. and North Non-executive
Lyu Xianpei
Chemical director
Industries Co.Ltd.Association of
Li Guowang Zhejiang Talent Director
in Shanghai
Gree Real Estate
Co. Ltd. Sijin
Intelligent
Forming
Machinery Co.Ltd. Ningbo FLK Non-executive
Li Liangchen
Technology Co. director
Ltd. (non-listed)
and Anhui Yingfa
Ruineng
Technology Co.Ltd. (non-listed)
Soochow
Ying Hanjie President
University
National
Biochemical
Engineering
Technology
Ying Hanjie Director
Research Center
of Nanjing
University of
Technology
Nanjing High
Tech University
Biological
Technology
Ying Hanjie Research Director
Institute Co.Ltd. and
Jiangsu Institute
of Industrial
612024 Annual Report of Luzhou Laojiao Co. Ltd.
Biotechnology
Luzhou State
Owned Capital Party secretary
Xiong Bo Operation chairman of the
Management board
Co. Ltd.Luzhou Industrial
Development
Investment
Group Co. Ltd.Xiong Bo Director
and Luzhou
Development
Holding Group
Co. Ltd.Punishments imposed in the recent three years by the securities regulators on the incumbent
directors supervisors and senior management as well as those who left in the reporting period
□ Applicable □ N/A
5.3 Remuneration of directors supervisors and senior management
The following describes the decision-making procedures grounds on which decisions are made and
actual remuneration payment of directors supervisors and senior management.Decision-making procedures for directors supervisors and senior management: The remuneration of
non-executive directors external directors and external supervisors shall be determined by the
general meeting of shareholders and the remuneration of directors supervisors and senior
management who hold positions within the Company shall be determined by relevant rules of SASAC
of Luzhou and relevant rules of the Company.Grounds on which decisions are made of directors supervisors and senior management: Calculate
according to the appraisal methods formulated at the beginning of the year.Actual remuneration payment of directors supervisors and senior management: Details refer to
“Remuneration of directors supervisors and senior management during the reporting period”.Remuneration of directors supervisors and senior management during the reporting period
Unit: CNY 10000
Total before-
Remuneration
tax
Incumbent/ from related
Name Gender Age Title remuneration
Former parties of the
from the
Company
Company
Chairman of
Liu Miao Male 55 Current 136.91 No
the board
Lin Feng Male 51 Director Current 135.2 No
622024 Annual Report of Luzhou Laojiao Co. Ltd.
General
manager
Director
Deputy
Zhang Suyi Male 53 Current 108.13 No
general
manager
Director
Deputy
Xiong Pingting Female 49 Current 107.25 No
general
manager
Non-executive
Chen You’an Male 67 Current 9.52 No
director
Non-executive
Lyu Xianpei Male 61 Current 9.52 No
director
Non-executive
Li Guowang Male 61 Current 9.52 No
director
Non-executive
Li Liangchen Male 50 Current 4.76 No
director
External
Qian Xu Male 61 Current 9.52 No
director
External
Ying Hanjie Male 55 Current 9.52 No
director
External
Xiong Bo Male 48 Current 0 Yes
director
Chairman of
Yang Ping Male 48 the Board of Current 108.49 No
Supervisors
Li Guangjie Male 55 Supervisor Current 106.43 No
Li Lunyu Female 38 Supervisor Current 67.26 No
Zhou Lei Female 51 Supervisor Current 26.47 No
Zhang Li Female 50 Supervisor Current 22.93 No
Deputy
Tang
Male 47 general Current 5.2 No
Dongliang
manager
Deputy
Shen Caihong Male 59 general Current 108.82 No
manager
Xie Hong Female 55 CFO Current 109.3 No
Deputy
He Cheng Male 58 general Current 108.07 No
manager
Deputy
general
Li Yong Male 48 manager Current 107.05 No
Secretary of
the board
Deputy
Zhao Bingkun Male 45 general Current 25 No
manager
Director
Deputy
Wang Hongbo Male 61 Resignation 5.33 No
general
manager
Non-executive
Liu Junhai Male 55 Resignation 4.76 No
director
Gong External
Female 55 Resignation 0 Yes
Zhengying director
632024 Annual Report of Luzhou Laojiao Co. Ltd.
Ou Fei Male 39 Supervisor Resignation 0 Yes
Tang Shijun Male 48 Supervisor Resignation 0 Yes
Total -- -- -- -- 1344.96 --
Other information
□ Applicable □ N/A
6. Performance of directors during the reporting period
6.1. Board meetings convened during the reporting period
Meeting Convened date Disclosure date Resolutions
Announcement on Resolutions of the
The 38th Meeting of the 38th Meeting of the 10th Board of
January 23 2024 January 24 2024
10th Board of Directors Directors (Announcement No. 2024-1)
(http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The 39th Meeting of the 39th Meeting of the 10th Board of
April 25 2024 April 27 2024
10th Board of Directors Directors (Announcement No. 2024-
15) (http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The 40th Meeting of the 40th Meeting of the 10th Board of
June 04 2024 June 05 2024
10th Board of Directors Directors (Announcement No. 2024-
23) (http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The First Meeting of the First Meeting of the 11th Board of
June 27 2024 June 28 2024
11th Board of Directors Directors (Announcement No. 2024-
37) (http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The Second Meeting of the Second Meeting of the 11th Board of
August 02 2024 August 03 2024
11th Board of Directors Directors (Announcement No. 2024-
40) (http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The Third Meeting of the Third Meeting of the 11th Board of
August 29 2024 August 31 2024
11th Board of Directors Directors (Announcement No. 2024-
44) (http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The Fourth Meeting of the September 24 Fourth Meeting of the 11th Board of
September 23 2024
11th Board of Directors 2024 Directors (Announcement No. 2024-
48) (http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The Fifth Meeting of the Fifth Meeting of the 11th Board of
October 30 2024 October 31 2024
11th Board of Directors Directors (Announcement No. 2024-
57) (http://www.cninfo.com.cn/)
Announcement on Resolutions of the
The Sixth Meeting of the Sixth Meeting of the 11th Board of
December 24 2024 December 25 2024
11th Board of Directors Directors (Announcement No. 2024-
60) (http://www.cninfo.com.cn/)
642024 Annual Report of Luzhou Laojiao Co. Ltd.
6.2. Attendance of directors in board meeting and general meeting of shareholders
Attendance of director in board meeting and general meeting of shareholders
Attendance Attendance Attendance
Attendance Absence for
due in the Attendance by at general
through a Absence two
Director reporting on site telecommun meeting of
proxy (times) consecutive
period (times) ication shareholder
(times) times
(times) (times) s (times)
Liu Miao 9 2 5 2 0 No 1
Lin Feng 9 4 5 0 0 No 1
Zhang Suyi 6 2 4 0 0 No 1
Xiong
9 3 5 1 0 No 1
Pingting
Chen
9 4 5 0 0 No 1
You’an
Lyu Xianpei 9 4 5 0 0 No 1
Li Guowang 9 4 5 0 0 No 1
Li
6 2 4 0 0 No 1
Liangchen
Qian Xu 9 4 5 0 0 No 1
Ying Hanjie 9 3 5 1 0 No 0
Xiong Bo 6 2 4 0 0 No 1
Wang
3 2 1 0 0 No 0
Hongbo
Liu Junhai 3 2 1 0 0 No 0
Gong
3 2 1 0 0 No 0
Zhengying
Notes to absence for two consecutive times
6.3. Objections from directors in related issues of the Company
Were there any objections on related issues of the Company from director
□ Yes □ No
Directors have no objection on related issues of the Company during the reporting period.
6.4. Other details about the performance of duties by directors
Was there any advice from directors adopted by the Company
□ Yes □ No
Explanation about advice of directors is adopted or not adopted by the Company or not
The Company adopted the advice of non-executive directors in respect of safe production system
improvement and internal control construction.
652024 Annual Report of Luzhou Laojiao Co. Ltd.
7. Activities of special committees under the Board of Directors during
the reporting period
Number of Substantial opinion Details of
Convened Other
Committee Members meetings Topics and objections
date information
convened recommendations (if any)
Review of the
following
proposal: The Approved to be
May 27 Proposal on the submitted to the
2024 De-registration of Board of Directors
Luzhou Laojiao for further review
Whitail Liquor
Industry Co. Ltd.Review of the
following
proposal: The Approved to be
Liu Miao Lin
The Strategy July 29 Proposal on the submitted to the
Feng and 3
Committee 2024 Investment and Board of Directors
Zhang Suyi
Wealth for further review
Management
with Own Funds
Review of the
following
proposal: The Approved to be
December Proposal on Joint submitted to the
05 2024 Stock Subsidiary Board of Directors
Reducing the for further review
Registered
Capital
Review of the
following
proposal: The
Proposal on
Approved to be
Reviewing the
May 31 submitted to the
Qualifications of
2024 Board of Directors
Non-employee
for further review
Director
Li Liangchen
Candidates for
Lyu Xianpei
the 11th Board of
and Xiong
Directors
Pingting (Liu
Review of the
The Junhai
following
Nomination resigned as a 4
proposal: The
Committee member of the
Proposal on
Nomination Approved to be
Formulating the
Committee on June 18 submitted to the
Work Plan for the
June 27 2024 Board of Directors
Appointment of
2024) for further review
Deputy General
Manager of
Luzhou Laojiao
Co. Ltd.Review of the Approved to be
July 29 following submitted to the
2024 proposal: The Board of Directors
Proposal on for further review
662024 Annual Report of Luzhou Laojiao Co. Ltd.
Nominating
Candidates for
Senior
Management
Review of the
following
proposal: The Approved to be
December Proposal on submitted to the
20 2024 Recommending Board of Directors
Candidates for for further review
Senior
Management
Review of the
following
proposals: 1. The
2023 Annual
Financial Report;
2. The 2023
Internal Control
Self-assessment
Report; 3. The
Summary Report
of the Audit
Committee of the
Board of
Directors on the
2023 Annual
Approved to be
Audit; 4. The
April 15 submitted to the
Report on the
2024 Board of Directors
Assessment and
for further review
Performance of
Supervisory
Responsibilities
of the Audit
Lyu Xianpei
The Audit Committee of the
Chen You’an 5
Committee Board of
and Qian Xu
Directors on the
Performance of
the Accounting
Firm in 2023; 5.The Work Plan
for the 2024
Internal Audit;
and 6. The Q1
2024 Report
Review of the
following
proposals: 1. The
Proposal on the
Formulation of
Approved to be
the Rules of
April 19 submitted to the
Luzhou Laojiao
2024 Board of Directors
Co. Ltd. for the
for further review
Appointment of
Accounting Firm;
and 2. The
Proposal on
Starting the
672024 Annual Report of Luzhou Laojiao Co. Ltd.
Appointment of
Accounting Firm
Review of the
following Approved to be
May 27 proposal: The submitted to the
2024 Proposal on Board of Directors
Chaging the for further review
Accounting Firm
Review of the
following
proposals: 1. The
Approved to be
Proposal on the
August 16 submitted to the
2024 Interim
2024 Board of Directors
Financial Report;
for further review
and 2. The 2024
Interim Audit
Work Report
Review of the
following
Approved to be
proposals: 1. The
October 23 submitted to the
Audit Work
2024 Board of Directors
Report for Q1-Q3
for further review
2024; and 2. The
Q3 2024 Report
Review of the
following
proposal: The
Proposal on the
Satisfaction of Approved to be
January 19 Unlocking submitted to the
2024 Conditions for Board of Directors
the First for further review
Unlocking Period
of the 2021
Restricted Share
Incentive Plan
Review of the
following
proposal: The
The Chen You’an Proposal on
Remuneration Li Guowang Amending the
5 Approved to be
and Appraisal and Ying Appraisal and
May 28 submitted to the
Committee Hanjie Management
2024 Board of Directors
Measures for
for further review
Remunerations
of the
Management of
Luzhou Laojiao
Co. Ltd.Review of the
following
proposals: 1. The
Approved to be
Proposal on
July 22 submitted to the
Revising the
2024 Board of Directors
Management
for further review
Rules of Luzhou
Laojiao Co. Ltd.for
682024 Annual Report of Luzhou Laojiao Co. Ltd.
Remunerations
of the
Management
and the
Management
Rules of Luzhou
Laojiao Co. Ltd.for Performance
Appraisal of the
Management;
and 2. The
Proposal on
Reviewing the
Appraisal
Implementation
Plan of Luzhou
Laojiao Co. Ltd.for the
Management
Review of the
following
proposal: The
Proposal on the
Satisfaction of
Unlocking
Approved to be
Conditions for
September submitted to the
the First
18 2024 Board of Directors
Unlocking Period
for further review
of the Reserved
Restricted
Shares under the
2021 Restricted
Share Incentive
Plan
Review of the
following
proposal: The Approved to be
December Proposal on the submitted to the
20 2024 Remunerations Board of Directors
of the for further review
Management for
2023
8. Performance of duties by the board of supervisors
Were there any risks to the Company identified by the board of supervisors when performing its duties
during the reporting period
□ Yes □ No
The board of supervisors has no objection during the reporting period.
692024 Annual Report of Luzhou Laojiao Co. Ltd.
9. Staff in the Company
9.1. Number functions and educational backgrounds of the staff
Number of in-service staff of the parent company at the
1292
end of the reporting period
Number of in-service staff of main subsidiaries at the end
2540
of the reporting period
Total number of in-service staff at the end of the reporting
3832
period
Total number of staff with remuneration in the period 3832
Number of retirees to whom the Company or its main
895
subsidiaries need to pay retirement pension
Functions
Function by category Number of staff
Production staff 1358
Sales staff 927
R&D staff 853
Financial staff 104
Administrative staff 590
Total 3832
Educational backgrounds
Educational background by category Number of staff
Senior high school and below 417
Junior college 765
Bachelor 2031
Master 603
Doctor 16
Total 3832
9.2. Staff remuneration policy
In 2024 the Company implemented the distribution policy of "sharing benefits paying for losses
classification and setting and long-term policy effects" continuously strengthened the digital
assessment linked individual performance with organizational performance and highlighted the
distribution according to performance. The Company implemented the post rating wage system and
strengthened the performance management of all employees. According to the following principles:
Link individual performance with organizational performance: The increase of wages is linked to the
increase of the Company's operating performance and profit growth; Under the same caliber the
proportion of increase in salaries shall not exceed the proportion of increase in performance and profit
growth.Salary and its changes based on position ability and performance: The salary of employee shall be
determined by position and the depth of their expertise. The salary shall be adjusted accordingly
702024 Annual Report of Luzhou Laojiao Co. Ltd.
when the position ability and performance change.Performance orientation bonus and forfeit: Performance assessment is conducted according to the
actual contributions of employees and the salary distribution is inclined to the employees with
excellent performance.The principle of equal wage negotiation: Abide by the principles that both sides of labor and capital
agrees in collective negotiation so as to realize the unity of benefit and fairness.
9.3. Staff training plans
In 2024 the Company continued to promote the improvement of talent capabilities and qualities
optimize the targeted talent development program according to the career development stages of
employees and achieve precise talent development in different levels and grades. At the same time
targeted at different professional lines the Company horizontally designed "Elite Program" training
and strove to create a large number of elite employees who would be rooted in various fields.Sail Program: The "Sail Program" training was conducted for new employees hired through campus
and social recruitment. The implemented training involved four stages: general ability training
marketing practical training business capability enhancement training and career planning. The
purpose of this program is to enhance new employees' understanding and recognition of the
Company's core values and familiarize them with the Company's production and operation so that
they can settle in well.Dive Program: The “Dive Program” is designed for general employees. With the focus on introductory
courses such as corporate culture and what employees should know and be able to do office skills
professional ethics etc. the purpose of this program is to strengthen what employees should know
and be able to do enhance the accumulation of professional knowledge improve employees’
competence and improve work performance.Speed Navigation Program: This program is aimed at grassroots backbones focusing on improving
work efficiency solving complex problems communication reporting and horizontal collaboration etc.The purpose of this program is to consolidate professional knowledge and skills expand general
qualities and capabilities enhance professional problem-solving capabilities improve employees’
competence and improve work performance.Voyage Program: The “Voyage Program” training was conducted for key personnel with a systematic
design of three-year development plans and a focus on three themes including “self-management”
“work management” and “interpersonal management”. The purpose was to enrich employees’
knowledge on corporate business management improve their knowledge structure and enhance
their strategic understanding and abilities of work and team management.
712024 Annual Report of Luzhou Laojiao Co. Ltd.
Steering Program: The “Steering Program” training was conducted for middle management personnel
and department experts in the form of online and offline trainings combined as well as “coming in”
and “going out” combined. Through the learning of advanced management concepts and practices
the training aimed to drive employees to broaden their mind expand their vision strengthen their
leadership skills and enhance their level of corporate management.Elite Program: Targeting employees from different professional lines of the Company the Company
focused on training programs for digital human resources public relations and other professional
lines. Model learning external training and introduction of teaching staff were employed to improve
the professional level of employees.In addition in terms of technical talent training in combination with the relevant provincial and
municipal policies and the Company’s strategic needs of talent development the Companystrengthens study on skilled worker development policies fully promotes the “New Eight Grades ofEmployees” and actively carries out the work of staff title appraisal skill rating recommendation and
assessment and so on. Meanwhile it continues to deepen the "Laojiao Skilled Worker Action" a
special task for reforming the building of the industrial workforce and strengthen the training
appraisal and incentives for industrial workers.
9.4. Labor outsourcing
□ Applicable □ N/A
10. Profit distribution and converting capital reserves into share capital
Formulation execution or adjustments of profit distribution policy especially cash dividend policy in
the reporting period.□ Applicable □ N/A
According to the plan for profit distribution for 2023 deliberated and approved by 2023 annual meeting
of shareholders based on its total of 1471966503 shares the Company distributed a cash dividend
of CNY 54.000780 (tax inclusive) per 10 shares to all shareholders. The distribution plan was
implemented on August 23 2024.A special statement of the policy of cash dividends
Whether it meets the requirements of the articles
of corporation or the resolution of shareholders' Yes
meeting:
Whether the standard and proportion of dividends
Yes
are clear:
Whether the relevant decision-making process and
Yes
systems are complete:
722024 Annual Report of Luzhou Laojiao Co. Ltd.
Whether non-executive directors perform their
Yes
duties and play their due role:
If the Company has no dividend plan it should
disclose the specific reasons and the next steps it N/A
intends to take to enhance investor returns
Whether the minority shareholders have the
opportunity to fully express their opinions and
Yes
appeals and whether their legitimate rights and
interests have been adequately protected:
Whether the conditions and procedures are
compliant and transparent and whether the cash N/A
dividend policy is adjusted or changed:
The Company made a profit in the reporting period and the profit distributable to shareholders of the
Company was positive but it did not put forward a preliminary plan for cash dividend distribution to
shareholders.□ Applicable □ N/A
Preliminary plan for profit distribution and converting capital reserves into share capital for the
reporting period
□ Applicable □ N/A
Bonus shares for every 10 shares (share) 0
Dividends for every 10 shares (CNY) (tax included) 45.92
Total shares as the basis for the preliminary plan for profit
1471951503
distribution (share)
Total cash dividends (CNY) (tax included) 6759201301.78
Cash dividends in other forms (e.g. repurchase share) 0.00
Total cash dividends (CNY) (including other forms) 6759201301.78
Distributable profit (CNY) 31526616851.39
Percentage of cash dividends in the total distributed profit
100%
(including other forms)
Information of the cash dividends
The development stage of the Company is mature and the Company has no major fund expenditure arrangement.When the profit distribution is carried out the proportion of cash dividends in this profit distribution should at least
reach 80%.Details of preliminary plan for profit distribution and converting capital reserves into share capital
On January 24 2025 the Company carried out the 2024 interim dividend payout of CNY 13.58 (tax inclusive) for
every 10 existing shares held totaling CNY 1998910141.07 (tax inclusive). If the said profit distribution plan is
approved at a general meeting of shareholders the total cash dividend payout for 2024 would be CNY
8758111442.85 (tax inclusive) accounting for approximately 65.00% of the net profits attributable to shareholders of
the Company in 2024.
11. Implementation of any equity incentive plan employee stock
ownership plan or other incentive measures for employees
□ Applicable □ N/A
732024 Annual Report of Luzhou Laojiao Co. Ltd.
11.1. Equity incentives
A. On September 26 2021 relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co. Ltd. were approved at the Seventh Meeting
of the 10th Board of Directors and the Third Meeting of the 10th Board of Supervisors of the Company
respectively.B. On December 2 2021 the Company received the Approval of Luzhou State-owned Assets
Supervision and Administration Commission on the Implementation of the Second Phase of the Equity
Incentive Plan for Listed Companies by Luzhou Laojiao Co. Ltd. (L.G.Z.K.P. [2021] No. 62) from the
Luzhou State-owned Assets Supervision and Administration Commission which approved in principle
to the implementation of the Restricted Share Incentive Plan by the Company.C. On December 24 2021 the Board of Supervisors of the Company issued the review opinion i.e.Explanation on the Review and Announcement of the List of Awardees of the 2021 Restricted Share
Incentive Plan.D. On December 29 2021 the relevant proposals such as the Proposal on the 2021 Restricted Share
Incentive Plan (Draft) and Summary of Luzhou Laojiao Co. Ltd. were approved at the First
Extraordinary General Meeting of Shareholders of 2021. Meanwhile a self-inspection on the trading of
the Company's shares by insiders of the Incentive Plan and the proposed awardees was conducted
and the Self-Inspection Report on the Trading of the Company's Shares by Insiders and Awardees in
the 2021 Restricted Share Incentive Plan was disclosed.E. On December 29 2021 the Company held the 12th Meeting of the 10th Board of Directors and the
Sixth Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant
of Restricted Shares to Awardees respectively. The independent directors consented to the relevant
matters.F. On February 21 2022 the Company disclosed the Announcement on the Completion of Registration
of Restricted Share Grant completed the registration of the first grant of restricted shares. Upon the
registration of the grant 6862600 restricted shares were granted to 437 objects the grant price was
CNY 92.71 per share and the listing date was February 22 2022.G. On July 25 2022 the Company held the 18th Meeting of the 10th Board of Directors and the Ninth
Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.H. On August 5 2022 the Board of Supervisors of the Company issued the review opinion i.e.Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.
742024 Annual Report of Luzhou Laojiao Co. Ltd.
I. On September 2 2022 the Company held the 22nd Meeting of the 10th Board of Directors and the
13th Meeting of the 10th Board of Supervisors at which the Proposal on the Repurchase and
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal on
the Adjustment of the Granted Price of Reserved Restricted Shares of 2021 Restricted Share Incentive
Plan were reviewed and approved respectively. In accordance with the relevant provisions of the
incentive plan of the Company and the authorization of the First Extraordinary General Meeting of
Shareholders of 2021 the Board of Directors of the Company agreed to adjust the grant price and
repurchase price of the reserved restricted shares under the incentive plan from CNY 92.71 per share
to CNY 89.466 per share in view of the implementation of the Company's profit distribution plan for
2021. The independent directors consented to this matter.
J. On September 3 2022 the Company disclosed the Announcement on the Repurchase and
Retirement of Certain Restricted Shares to Reduce Registered Capital and Notice to Creditors. By the
expiration of the declaring period the Company had not received any declaration from the relevant
creditors for early payout of debts or provision of guarantee.K. On September 26 2022 the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares 342334 restricted shares
were granted to 46 objects the grant price was CNY 89.466 per share and the listing date was
September 28 2022.L. On November 29 2022 the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. The Company proposed to repurchase and
cancel a total of 62310 restricted shares granted but not lifted from restricted sales. As at November 29
2022 the Company completed the aforesaid repurchase and retirement of restricted shares.
M. On December 29 2022 the Company held the 26th Meeting of the 10th Board of Directors and the
15th Meeting of the 10th Board of Supervisors and reviewed and approved the Proposal on the Grant of
Reserved Restricted Shares to Awardees respectively. The independent directors consented to this
matter.N. On January 13 2023 the Board of Supervisors of the Company issued the review opinion i.e.Explanation on the Review and Announcement of the List of Awardees for the Reserved Restricted
Shares of the 2021 Restricted Share Incentive Plan.O. On February 16 2023 the Company disclosed the Announcement on the Completion of the
Registration of the Grant of the Reserved Restricted Shares under the 2021 Restricted Share Incentive
Plan. Upon the registration of the grant of the reserved restricted shares 92669 restricted shares were
granted to 17 objects the grant price was CNY 89.466 per share and the listing date was February 17
2023.
P. On January 23 2024 the Company held the 38th Meeting of the 10th Board of Directors and the
752024 Annual Report of Luzhou Laojiao Co. Ltd.
20th Meeting of the 10th Board of Supervisors at which the Proposal on the Repurchase and
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price and the Proposal on
the Satisfaction of Unlocking Conditions for the First Unlocking Period of the 2021 Restricted Share
Incentive Plan were reviewed and approved respectively. The Company's Board of Supervisors issued
a review opinion and the law firm and the independent financial advisor issued a legal opinion and the
independent financial advisor’s report respectively.Q. On February 22 2024 the Company disclosed the Reminder Announcement on Unlocked Shares in
the First Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public Trading.As such the unlocked restricted shares in the first unlocking period of the 2021 Restricted Share
Incentive Plan were allowed for public trading on February 22 2024.R. On June 4 2024 the Proposal on the Repurchase and Retirement of Certain Restricted Shares was
approved at the 40th Meeting of the 10th Board of Directors and the 22nd Meeting of the Board of
Supervisors respectively. On June 5 the Company disclosed the Announcement on the Repurchase
and Retirement of Certain Restricted Shares to Reduce Registered Capital and Notice to Creditors. By
the expiration of the declaring period the Company had not received any declaration from the relevant
creditors for early payout of debts or provision of guarantee.S. On August 14 2024 the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at August 14 2024 the Company
completed the repurchase and retirement of 21266 restricted shares.T. On September 23 2024 the Company held the Fourth Meeting of the 11th Board of Directors and
the Third Meeting of the 11th Board of Supervisors at which the Proposal on the Satisfaction of
Unlocking Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021
Restricted Share Incentive Plan and the Proposal on the Repurchase and Retirement of Certain
Restricted Shares and the Adjustment of Repurchase Price were reviewed and approved respectively.The Company's Board of Supervisors issued a review opinion and the law firm issued a legal opinion.U. On September 28 2024 the Company disclosed the Reminder Announcement on Unlocked Shares
in the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted Share
Incentive Plan Being Allowed for Public Trading. As such the unlocked restricted shares in the first
unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan were
allowed for public trading on October 9 2024.V. On December 18 2024 the Company disclosed the Announcement on the Completion of the
Repurchase and Retirement of Certain Restricted Shares. As at December 18 2024 the Company
completed the repurchase and retirement of 15000 restricted shares.W. On January 21 2025 the Company held the Eighth Meeting of the 11th Board of Directors and the
Sixth Meeting of the 11th Board of Supervisors at which the Proposal on the Satisfaction of Unlocking
Conditions for the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted
Share Incentive Plan and the Proposal on the Satisfaction of Unlocking Conditions for the Second
762024 Annual Report of Luzhou Laojiao Co. Ltd.
Unlocking Period of the 2021 Restricted Share Incentive Plan were reviewed and approved respectively.X. On February 14 2025 the Company disclosed the Reminder Announcement on Unlocked Shares in
the First Unlocking Period of the Reserved Restricted Shares under the 2021 Restricted Share
Incentive Plan Being Allowed for Public Trading. As such the unlocked restricted shares in the first
unlocking period of the reserved restricted shares under the 2021 Restricted Share Incentive Plan were
allowed for public trading on February 17 2025.Y. On February 21 2025 the Company disclosed the Reminder Announcement on Unlocked Shares in
the Second Unlocking Period of the 2021 Restricted Share Incentive Plan Being Allowed for Public
Trading. As such the unlocked restricted shares in the second unlocking period of the 2021 Restricted
Share Incentive Plan were allowed for public trading on February 24 2025.Equity incentives for directors and senior management
□ Applicable □ N/A
Unit: share
Exerci
se
price Restric
Stock Market Restric
Stock Exerci Exerci for Stock ted Restric
option price Grant ted
option sable sed exerci option shares Unlock ted
s held at the price shares
s share share sed s held held at ed shares
at the end of of the held at
grante option option share at the the shares grante
Office beginn the restrict the
Name d in s for s in option end of beginn in the d in
title ing of reporti ed end of
the the the s in the ing of reporti the
the ng shares the
reporti reporti reporti the reporti the ng reporti
reporti period (CNY/ reporti
ng ng ng reporti ng reporti period ng
ng (CNY / share) ng
period period period ng period ng period
period share) period
period period
(CNY /
share)
Chair
Liu man of
959003836092.7157540
Miao the
board
Direct
or
Lin Gener
959003836092.7157540
Feng al
manag
er
Deput
y
Shen
genera
Caiho 76700 30680 92.71 46020
l
ng
manag
er
Xie
CFO 76700 30680 92.71 46020
Hong
He Deput
767003068092.7146020
Cheng y
772024 Annual Report of Luzhou Laojiao Co. Ltd.
genera
l
manag
er
Direct
or
Deput
Zhang y
767003068092.7146020
Suyi genera
l
manag
er
Direct
or
Deput
Xiong
y
Pingtin 62800 25120 92.71 37680
genera
g
l
manag
er
Deput
y
genera
l
Li manag
628002512092.7137680
Yong er
Secret
ary of
the
board
Deput
y
Zhao
genera
Bingku 30000 12000 92.71 18000
l
n
manag
er
654202616839252
Total -- 0 0 0 0 -- 0 -- 0 --
000
The first grant date for the 2021 Restricted Share Incentive Plan was December 29 2021 and the registration date of the
Notes (if any) grant was February 21 2022. And the unlocked restricted shares in the first unlocking period of the Incentive Plan were
allowed for public trading on February 22 2024.Appraisal mechanism and incentives for senior management
For details please refer to the 2021 Restricted Share Incentive Plan (Draft) and Summary of Luzhou
Laojiao Co. Ltd. the Performance Appraisal Methods for the 2021 Restricted Share Incentive Plan of
Luzhou Laojiao Co. Ltd. and the Management Methods for the 2021 Restricted Share Incentive Plan
of Luzhou Laojiao Co. Ltd. which have been disclosed by the Company on www.cninfo.com.cn on
September 26 2021.
11.2. Implementation of employee stock ownership plans
□ Applicable □ N/A
782024 Annual Report of Luzhou Laojiao Co. Ltd.
11.3. Other incentive measures for employees
□ Applicable □ N/A
12. Establishment and implementation of the internal control system
during the reporting period
12.1. Establishment and implementation of the internal control system
During the reporting period in accordance with the Basic Rules for Internal Control of Enterprises
relevant laws administrative regulations normative documents and other regulatory requirements
concerning internal control as well as the reality of the Company the Company consistently improved
and optimized its internal control systems and established a well-developed system that covered the
corporate governance administrative management operations management financial management
human resources production guarantee and safety and environmental protection. Additionally it
strengthened the implementation supervision inspection feedback and improvement of the internal
control systems in the operations management to ensure that each internal control system is
reasonable complete and effective thereby promoting the sound sustainable development of the
Company.
12.2. Material internal control deficiencies found in the reporting period
□ Yes □ No
13. The Company’s management and control of subsidiaries during the
reporting period
Problems Solution
Consolidation Consolidation Subsequent
Company name arising in Solutions taken implementation
plan progress solutions
consolidation progress
N/A
14. Internal control assessment report and auditor report
14.1. Internal control assessment report
Disclosure date of the internal control
April 28 2025
assessment report
Disclosure index of the internal control
2024 Internal Control Assessment Report (http://www.cninfo.com.cn/)
assessment report
792024 Annual Report of Luzhou Laojiao Co. Ltd.
Ratio of the total assets of the
appraised entitles to the consolidated 90.00%
total assets
Ratio of the operating revenues of the
appraised entitles to the consolidated 90.00%
operating revenue
Deficiencies identification standard
Type Financial report Non-financial report
Material deficiencies：（1）violate
Material deficiencies：（1）Correction national regulations and laws；（2）
of material errors in financial reports that The Company’s decision-making
have been announced (except procedures are unscientific；if there
retroactive adjustment of previous years is a decision-making misplay it will
due to changes in policies or other result in significant deal failure; （3）
objective factors)；（2）Material The substantial loss of managerial or
Qualitative standard misstatement of current financial report technical staff；（4）Important
which was unrecognized but found by business lacks system control or
the auditor；（3） Corrupt transaction system failure important economic
of senior management；（4）Audit business has internal control system
committee and internal audit department guidance but with no effective
are not effective to the internal control operation；（5）material
supervision . deficiencies of internal control cannot
be rectified in time.
1. Material deficiencies：Misstatement ≥
5% of total profits；Misstatement ≥ 1%
of total assets；Misstatement ≥ 5% of
total operating revenue；Misstatement
≥5% of owner's equity
2. Significant deficiencies：3% of gross
profits≤Misstatement<5% of gross
profits；0.5% of total 1. Material deficiencies：loss≥5% of
assets≤Misstatement<1% of total net profits.assets；3% of total operating 2. Significant deficiencies：3% of net
Quantitative standard
revenue≤Misstatement<5% of total profits≤ loss＜5% of net profits.operating revenue；3% of owner's 3. General deficiencies：loss＜3% of
equity≤Misstatement<5% of owner's net profits
equity.
3. General deficiencies：
Misstatement<3% of gross profits；
Misstatement<0.5% of total assets；
Misstatement<3% of total operating
revenue；Misstatement<3% of owner's
equity.Number of financial-report material
0
deficiencies
Number of non-financial-report material
0
deficiencies
Number of significant financial-report
0
related deficiencies
Number of significant Non-financial-
0
report related deficiencies
14.2. Internal control auditor report
□ Applicable □ N/A
802024 Annual Report of Luzhou Laojiao Co. Ltd.
Deliberation opinion section in the internal control audit report
The Company maintained in all material respects effective internal control over financial reporting as of December
31 2024 based on the Basic Rules on Enterprise Internal Control and other applicable regulations.
Disclosure of internal control audit report Disclosed
Disclosure date of the internal control audit report April 28 2025
2024 Internal Control Auditor Report
Disclosure index of the internal control audit report
(http://www.cninfo.com.cn/)
Type of the audit’s opinion Standard unqualified opinion
Significant deficiencies found in the non-financial report No
The accounting firm issued the internal control audit report of non-standard opinions
□ Yes □ No
Whether the internal control audit report issued by the accounting firm is consistent with the self-
assessment report issued by the board of directors.□ Yes □ No
15. Remediation of Problems Identified by Self-inspection in the Special
Campaign on Listed Company Governance
None.
812024 Annual Report of Luzhou Laojiao Co. Ltd.
Section V Environmental and Social Responsibility
1. Information about environment protection
Whether the listed company and its subsidiaries belong to heavy polluting industries prescribed by
the environmental protection department
□ Yes □ No
Policies and industry standards on environmental protection
In the process of production and operation the Company strictly follow the laws regulations and
industry standards related to environmental protection such as the Environmental Protection Law of
the People's Republic of China Law of the People's Republic of China on Environmental Impact
Assessment Law of the People's Republic of China on Atmospheric Pollution Prevention and Control
Law of the People's Republic of China on Water Pollution Prevention and Control Administrative
Measures for the Legal Disclosure of Enterprise Environmental Information Regulations on the
Administration of Environmental Protection of Construction Projects of the People's Republic of China
Regulations on Administration of Pollutant Discharge Permits Policies and Industry Standards on
Environmental Protection Standard for Pollution Control on Hazardous Waste Storage Standards for
the Emission of Water Pollutants in the Fermented Alcohol and Baijiu Industry Regulations on the
Prevention and Control of Environmental Pollution by Solid Waste in Sichuan Province and
Regulations on Environmental Protection of Sichuan Province.Environmental protection administrative permission
In 2024 Luzhou Laojiao Co. Ltd. obtained eight ecological and environmental administrative permits
including a total of five permits for change and renewal of discharge permits and three approval of
environmental impact assessment reports.Review and
Acquiring
Name of permit Administrative permit No. issuance Valid term Permitted matter Remark
time
authority
In Sichuan Luzhou Baijiu Industrial
Park a production line for the
Reply of Luzhou resource- and energy-based
Municipal utilization of disposed grains will be
Ecology and built processing distiller's
Environment 50450.45 tons of grains per year
Bureau to the and producing 2880 tons of
Report of biochar per year and 15192.68
Luzhou Laojiao tons of grain residue per year. This
Luzhou
Brewing Co. project will generate additional
Municipal
Ltd. on the March 12 annual air pollutant emissions of: Newly
L.SH.H.J.H. [2024] No. 33 Ecology and 5 years
Environmental 2024 sulfur dioxide 0.18 t/a nitrogen acquired
Environment
Impact of oxides 1.44 t/a particulate matter
Bureau
Thermochemical 1.06 t/a and volatile organic
Energy- and compounds 1.49 t/a. The main
Resource-based water pollutants from the project will
Coupled be treated by the Sichuan Luzhou
Utilization Baijiu Industrial Park Wastewater
Technology of Treatment Plant with final
Brewing Waste discharge volumes as follows:
chemical oxygen demand (COD)
2.26 t/a ammonia nitrogen 0.113
822024 Annual Report of Luzhou Laojiao Co. Ltd.
t/a and total phosphorus 0.0226
t/a. The actual emission volumes of
the main pollutants for this project
are subject to confirmation during
the pollutant discharge permit
application.Within the Huangyi Brewery Eco-
Park based on the existing two 75
t/h and one 20 t/h gas-fired steam
boilers and two 7 MW back-
pressure turbine generator units
the project plans to build two new
220 t/h gas-fired steam boilers (one
in use and one as a backup) and
one 21 MW back-pressure turbine
generator unit. Auxiliary facilities
will be constructed including the
fuel handling system demineralized
water system compressed air
system water supply and drainage
system and fire protection system. Reply of Luzhou
Additional annual air pollutant
Municipal
emissions from the project are:
Ecology and
sulfur dioxide 10.66 t/a nitrogen
Environment
oxides 80.79 t/a and particulate
Bureau to the
matter 4.85 t/a. After project
Report of
completion the total annual air
Sichuan Luzhou Luzhou
pollutant emissions from the entire
Baijiu Industrial Municipal
January heat supply center will be: sulfur Newly
Park (Huangyi) Ecology and 5 years
L.SH.H.J.H. [2024] No. 10 10 2024 dioxide 18.89 t/a nitrogen oxides acquired
on the Environment
135.44 t/a and particulate matter
Environmental Bureau
8.59 t/a. Before being treated by
Impact of
the Sichuan Luzhou Baijiu Industrial
Thermoelectric
Park Wastewater Treatment Plant
Cogeneration
the wastewater pollutant emissions
Expansion
are: COD 269.28 t/a ammonia
Project (Phase
nitrogen 20.2 t/a and total
I)
phosphorus 2.02 t/a. After
treatment the discharge volumes
will be: COD 20.20 t/a ammonia
nitrogen 1.01 t/a and total
phosphorus 0.20 t/a. Upon
completion the wastewater
discharge volumes from the entire
heat supply center will be: COD
34.93 t/a ammonia nitrogen 1.75
t/a and total phosphorus 0.35 t/a.The actual emission volumes of the
main pollutants for this project are
subject to confirmation during the
pollutant discharge permit
application.The project is located in the
Sichuan Luzhou Baijiu Industrial
Park with a total planned land area
Reply of Luzhou of 633047 m2 (approximately 950
Municipal mu). The project will be expanded
Ecology and in phases. Phase I includes the
Environment construction of two brewing
Bureau to the workshops nine semi-open liquor
Report of rooms a sorghum pretreatment
Luzhou Laojiao Luzhou area a rice husk pretreatment area
Brewing Co. Municipal a circulating water station a
April 18 Newly
Ltd. on the L.SH.H.J.H. [2024] No. 35 Ecology and 5 years maintenance workshop and an air
2024 acquired
Environmental Environment compression station adding a
Impact of Bureau production capacity of 80000 tons
Luzhou Laojiao per year for strong aromatic base
Technical baijiu and a storage capacity of
Upgrade Project 104000 tons for base baijiu. Phase
of Intelligent II involves the construction of 10
Brewing (Phase ceramic liquor rooms adding a
I & II) storage capacity of 56000 tons for
base baijiu. Upon completion of the
project the entire plant will have an
annual production capacity of
832024 Annual Report of Luzhou Laojiao Co. Ltd.
205000 tons of strong aromatic
base baijiu and a storage capacity
of 540000 tons for base baijiu. The
total investment of the project is
CNY 6.075 billion of which CNY
25.5 million is invested in
environmental protection.
1. The circulating cooling water
discharge outlet shall comply with
Pollutant the Class III discharge standard of
Discharge the Integrated Wastewater
Permit — Discharge Standard (GB8978-
Luzhou
Luzhou Laojiao 1996);
Municipal
Brewing Co. October October 2. The plant boundary noise
91510500204755181G002V Ecology and Change
Ltd. (Energy 12 2024 26 2026 monitoring shall be combined with
Environment
Center of that of Huangyi Brewery Eco-Park
Bureau
Sichuan Luzhou of Luzhou Laojiao Co. Ltd. and
Baijiu Industrial shall comply with Class 3 standards
Park) under the Emission Standard for
Industrial Enterprises Noise at
Boundary (GB12348-2008).Pollutant Licensed annual emission limits: Air
Discharge pollutants: particulate matter 0.06
Luzhou
Permit — t/a sulfur dioxide 0.18 t/a and
Municipal
Luzhou Laojiao July 26 July 25 nitrogen oxides 1.44 t/a;
91510500204706718H004Q Ecology and Change
Co. Ltd. 2024 2029 water pollutants: COD 482.76 t/a
Environment
(Huangyi ammonia nitrogen 36.213 t/a total
Bureau
Brewery Eco- nitrogen 62.5 t/a total phosphorus
Park) 3.6226 t/a.Discharge
Permitted annual discharge limits
Permit for Luzhou
for wastewater: 480.5t/a for
Luzhou Laojiao Municipal
February February chemical oxygen demand (COD)
Co. Ltd. 91510500204706718H004Q Ecology and Change
2 2024 1 2029 36.1t/a for ammonia nitrogen
(Huangyi Environment
62.5t/a for total nitrogen (TN) and
Brewery Eco- Bureau
3.6t/a for total phosphorus (TP).
Park)
Discharge
Permit for
Luzhou
Luzhou Laojiao
Municipal Permitted standards and limits for
Co. Ltd. January September
91510500204706718H003Q Ecology and non-NMHC: No applicable Change
(National Cellar 6 2024 2 2026
Environment standards.and
Bureau
Zaojiaoxiang
Bases)
Discharge
Permit for Luzhou
Luzhou Laojiao Municipal Permitted standards and limits for
January November
Co. Ltd. 91510500204706718H001V Ecology and non-NMHC: No applicable Change
82024282027
(Luohan Environment standards.Brewery Eco- Bureau
Park)
Industry discharge standards and pollutants in producing and operating activities
Type of Name of
main main Number Distributi Emission
Discharg Pollution Approved Excessiv
Company pollutant pollutant e of on of concentra Total
discharge total e
name and and type discharge discharge tion/inten emission standard emission discharge
particular particular outlet outlet sity
pollutant pollutant
Luzhou Luohan
Water Direct
Laojiao COD 1 Brewery 20.3mg/L 50mg/L 7.7408t 23.183t/a No
pollutant discharge
Co. Ltd. Eco-Park
Luzhou Luohan
Water Ammonia Direct 0.328mg/
Laojiao 1 Brewery 5mg/L 0.1239t 2.017t/a No
pollutant nitrogen discharge L
Co. Ltd. Eco-Park
Luzhou Luohan
Water Total Direct 7.482mg/
Laojiao 1 Brewery 15mg/L 2.7891t 5.796t/a No
pollutant nitrogen discharge L
Co. Ltd. Eco-Park
Luzhou Water Total Direct Luohan 0.074mg/
1 0.5mg/L 0.0294t 0.232t/a No
Laojiao pollutant phosphor discharge Brewery L
842024 Annual Report of Luzhou Laojiao Co. Ltd.
Co. Ltd. us Eco-Park
Luzhou Organize Luohan
Air 0.742mg/
Laojiao PM d 2 Brewery 20mg/m3 0.1044t / No
pollutant m3
Co. Ltd. discharge Eco-Park
Luzhou Organize Luohan
Air Sulfur 0.804mg/
Laojiao d 2 Brewery 50mg/m3 0.1342t / No
pollutant dioxide m3
Co. Ltd. discharge Eco-Park
Luzhou Organize Luohan
Air Oxynitrid 23.564m 150mg/m
Laojiao d 2 Brewery 3.7058t 22.1t/a No
pollutant e g/m3 3
Co. Ltd. discharge Eco-Park
Luzhou Organize Luohan
Air
Laojiao PM d 1 Brewery 0mg/m3 20mg/m3 0t 1.1t/a No
pollutant
Co. Ltd. discharge Eco-Park
Luzhou Organize Luohan
Air Sulfur
Laojiao d 1 Brewery 0mg/m3 50mg/m3 0t / No
pollutant dioxide
Co. Ltd. discharge Eco-Park
Luzhou Organize Luohan
Air Oxynitrid 150mg/m
Laojiao d 1 Brewery 0mg/m3 0t 23.3t/a No
pollutant e 3
Co. Ltd. discharge Eco-Park
Luzhou Huangyi
Water Indirect 36.013m
Laojiao COD 1 Brewery 400mg/L 22.1593t 482.76t/a No
pollutant discharge g/L
Co. Ltd. Eco-Park
Luzhou Huangyi
Water Ammonia Indirect 1.375mg/
Laojiao 1 Brewery 30mg/L 0.8128t 36.213t/a No
pollutant nitrogen discharge L
Co. Ltd. Eco-Park
Luzhou Huangyi
Water Total Indirect 19.859m
Laojiao 1 Brewery 50mg/L 12.2214t 62.5t/a No
pollutant nitrogen discharge g/L
Co. Ltd. Eco-Park
Luzhou Total Huangyi
Water Indirect 0.895mg/
Laojiao phosphor 1 Brewery 3.0mg/L 0.5529t 3.6226t/a No
pollutant discharge L
Co. Ltd. us Eco-Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air 0.7545m
Dust d 2 Luzhou 5mg/m3 0.4626t No
Brewing pollutant g/m3
discharge Baijiu
Co. Ltd.Industrial
Park
8.640t/a
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air 0.9982m
PM d 1 Luzhou 20mg/m3 0.0117t No
Brewing pollutant g/m3
discharge Baijiu
Co. Ltd.Industrial
Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air Sulfur 0.47935
d 2 Luzhou 35mg/m3 0.3238t No
Brewing pollutant dioxide mg/m3
discharge Baijiu
Co. Ltd.Industrial
18.880t/a
Park
Energy
Luzhou
Organize Center of
Laojiao Air Sulfur 0.5527m
d 1 Sichuan 50mg/m3 0.0064t No
Brewing pollutant dioxide g/m3
discharge Luzhou
Co. Ltd.Baijiu
852024 Annual Report of Luzhou Laojiao Co. Ltd.
Industrial
Park
Energy
Center of
Luzhou
Organize Sichuan
Laojiao Air Oxynitrid 30.4398 100mg/m
d 2 Luzhou 18.7061t No
Brewing pollutant e mg/m3 3
discharge Baijiu
Co. Ltd.Industrial
Park 136.080t/
Energy a
Center of
Luzhou
Organize Sichuan
Laojiao Air Oxynitrid 49.2419 150mg/m
d 1 Luzhou 0.4039t No
Brewing pollutant e mg/m3 3
discharge Baijiu
Co. Ltd.Industrial
Park
Treatments of pollutants
A. Waste water: Areas of the Company that produce wastewater are National Cellar Brewery Base
Zaojiaoxiang Brewery Base Xiaoshi Brewery Base Anning Technology Park Luohan Brewery Eco-
Park and Huangyi Brewery Eco-Park. In National Cellar Brewery Base Zaojiaoxiang Brewery Base
Xiaoshi Brewery Base and Anning Technology Park the high-concentration brewing wastewater is
temporarily collected in pools (or tanks) and is later transferred to the wastewater treatment station of
Huangyi Brewery Eco-Park by truck for treatment. The wastewater treatment stations of Luohan
Brewery Eco-Park and Huangyi Brewery Eco-Park are equipped with online monitors to automatically
monitor COD ammonia nitrogen total phosphorus total nitrogen pH value and flows and transmit the
monitoring data to the supervision platform of the higher authority. During the reporting period the
Company reduced wastewater discharge by more than 3.08 million tons through methods such as
reclaimed water reuse and cooling water recycling. The Company's facilities for prevention and control
of wastewater pollution are under normal operations ensuring up-to-standard discharge through
general discharging outlets. Compared with last year suspended matter discharge was reduced by
6.82% and Five-day BOD discharge by 16.81%.
B. Waste gas: Main areas of the Company that produce exhaust gas are National Cellar Brewery Base
Zaojiaoxiang Brewery Base Xiaoshi Brewery Base Luohan Brewery Eco-Park and Huangyi Brewery
Eco-Park. In National Cellar Brewery Base natural gas boilers are used while in Xiaoshi Brewery Base
and Zaojiaoxiang Brewery Base direct-fired bottom boilers are used. The natural gas boilers of Luohan
Brewery Eco-Park (20t/h 30t/h) and the natural gas boilers of Huangyi Brewery Eco-Park (20t/h 75t/h
75t/h) are equipped with online monitors to automatically monitor exhaust gas and transmit the
monitoring data to the supervision platform of the higher authority. Low NOx combustion technology is
adopted for the natural gas boilers. During the reporting period the Company's facilities for prevention
and control of exhaust gas pollution were under normal operations ensuring up-to-standard emission of
exhaust gas through outlets. Compared with last year PM discharge was reduced by 34.28% nitrogen
oxide discharge by 22.03% and sulfur dioxide by 2.69%.C. Solid waste: The Company has established a digital ledger for general solid waste to
comprehensively manage the types quantities flows storage utilization methods and disposal entities
862024 Annual Report of Luzhou Laojiao Co. Ltd.
of general industrial solid waste. In strict compliance with relevant laws and regulations such as the
Administrative Measures for the Transfer Manifest of Hazardous Waste and the Standard for Pollution
Control on Hazardous Waste Storage the Company regulated the collection temporary storage
transfer and disposal of hazardous waste. The Company has completed the industry’s first
demonstration project for the coupled utilization of energy and resources from brewing waste with an
annual processing capacity of 100000 tons. The project has achieved a resource utilization rate of over
90% for brewing waste and a gas energy recycling rate of over 95% filling a technological gap in the
field of thermochemical treatment of brewing waste (discarded grains). It represents a breakthrough in
addressing the common and critical technologies for efficient conversion and safe disposal of discarded
grains in the distillery industry.D. Noise: During the reporting period the Company strictly complied with the Law of the People’s
Republic of China on the Prevention and Control of Environmental Noise Pollution. It mitigated noise
pollution by selecting low-noise equipment installing vibration dampers and enhancing the
maintenance and operational management of equipment used in production processes.Emergency plan for environmental emergencies
The Company has revised and issued in 2023 the Contingency Plan for Environmental Emergencies
in Jiangyang District of Luzhou Laojiao Co. Ltd. (2023) and the Contingency Plan for Environmental
Emergencies in Longmatan District of Luzhou Laojiao Co. Ltd. (2023) which have been filed with the
Luzhou Municipal Environmental Emergency Command Platform. In 2024 the Company
implemented relevant management requirements in accordance with the contingency plans and
carried out emergency training and emergency drills.Environmental self-monitoring plan
Monitoring
Monitoring Implementation Monitoring Monitoring
Monitoring site Emission limit compliance
indicator standard frequency form
rate in 2024
Odor 20
concentration Emission Standards for (dimensionless)
Hydrogen Odor Pollutants 3
Unorganized monitoring 0.06mg/m sulfide (GB14554- 93)
points 1#-4# for the
Ammonia 1.5mg/m3 1 time/half-
exhaust gas emission Manual 100%
NMHC / / year
outlets of Luohan Brewery
Eco-Park Integrated Emission
Particulate Standards for Air
1mg/m3
matters Pollutants (GB16297-
1996)
Ringelman
≤1 Manual
Exhaust gas emission emittance
Emission Standards for
outlets DA022 DA021 Nitrogen oxide 150mg/m3 1
Air Pollutants for Boiler 100%
(unused) and DA020 of Particulate 3 time/quarter (GB13271-2014) 20mg/m Automatic
Luohan Brewery Eco-Park matters
Sulfur dioxide: 50mg/m3
Hydrogen 15000
sulfide /
Exhaust gas emission Emission Standards for
/ 1 time/half-
outlet DA019 of Luohan Ammonia Odor Pollutants Manual 100%
1.8kg/h year
Brewery Eco-Park (GB14554-93)
Odor /
concentration 27kg/h
240mg/m3
Sulfur dioxide: Integrated Emission
Exhaust gas emission 0.77kg/h
Standards for Air 1
outlet DA018 of Luohan Particulate 120mg/m3 Manual 100% Pollutants (GB16297- time/quarter
Brewery Eco-Park matters 1996) 3.5kg/h
Nitrogen oxide 550mg/m3
872024 Annual Report of Luzhou Laojiao Co. Ltd.
2.6kg/h
Volatile
organic / /
compounds
Exhaust gas emission
1
outlet DA017 of Luohan NMHC / / Manual 100%
time/quarter
Brewery Eco-Park
Integrated Emission
Exhaust gas emission
Particulate Standards for Air 3 1 time/half-outlets DA001-DA016 of 120 mg/m Manual 100%
matters Pollutants (GB16297- year
Luohan Brewery Eco-Park
1996)
Flow /
PH value 6-9
COD Standards for the 50mg/L 1 Automatic
Main outlet DW001 of the Ammonia Emission of Water time/quarter
5mg/L
wastewater treatment nitrogen Pollutants in the
100%
station of Luohan Brewery TP Fermented Alcohol and 0.5mg/L
Eco-Park TN Baijiu Industry 15mg/L
(GB27931-2011)
Suspended
20mg/L
solids
1 time/month Manual
Five-day BOD 20mg/L
Chroma 20
Suspended Standards for the 1 time/month
20 mg/L
solids Emission of Water (1
Rainwater outlets DW002-
Pollutants in the time/quarter
DW006 of Luohan Manual 100%
Fermented Alcohol and in case of no
Brewery Eco-Park COD 50mg/L
Baijiu Industry (GB2731- abnormalities
2011) monitored)
Emission Standard for
Noise monitoring points 1- Daytime: 60 dB
Boundary Noise of Industrial 1
4# at the boundary of (A); nighttime: Manual 100%
noise Enterprises at Boundary time/quarter
Luohan Brewery Eco-Park 50 dB (A)
(GB12348-2008)
Circulating cooling water COD 500mg/L
Integrated Wastewater
outlet DW002 of the PH value 1 Discharge Standard 6-9mg/L Manual 100%
Energy Center of Baijiu time/quarter
TP (P) (GB8978-1996) Industrial Park /mg/L
PH value 6-9
Total
dissolved /
solids (TDS)
Wastewater outlet DW001 Suspended
solids Integrated Wastewater
140mg/L
of the Energy Center of 1
Discharge Standard Manual 100%
Sichuan Luzhou Baijiu Five-day BOD 80mg/L time/quarter
(GB8978-1996)
Industrial Park COD 400mg/L
TN 50mg/L
Ammonia
30mg/L
nitrogen
TP 3mg/L
Boiler exhaust gas vents Ringelman
emittance Emission Standard of Air
≤1 Manual
DA001-DA002 of the
Pollutants for Thermal 1
Energy Center of Sichuan Nitrogen oxide 100mg/m3 100%
Power Plants (GB13223- time/quarter
Luzhou Baijiu Industrial Soot 5mg/m3 Automatic
2011)
Park Sulfur dioxide: 35mg/m3
Ringelman
≤1 Manual
Boiler exhaust gas vent emittance
Emission Standards for
DA003 of the Energy Nitrogen oxide 150mg/m3 1
Air Pollutants for Boiler 100%
Center of Sichuan Luzhou Particulate time/quarter
(GB13271-2014) 20mg/m3 Automatic
Baijiu Industrial Park matters
Sulfur dioxide 50mg/m3
Suspended Standards for the 1 time/month
50mg/L
solids Emission of Water (1
Rainwater outlets DW004-
Pollutants in the time/quarter
DW010 of Huangyi Manual 100%
Fermented Alcohol and in case of no
Brewery Eco-Park COD 100mg/L
Baijiu Industry (GB2731- abnormalities
2011) monitored)
Odor 20
concentration Emission Standards for (dimensionless)
Unorganized monitoring Hydrogen Odor Pollutants
points 1#-4# at the 0.06mg/m
3
sulfide (GB14554-93) 1 Manual 100%
boundary of Huangyi time/quarter
Ammonia 1.5mg/m3
Brewery Eco-Park
NMHC / /
Particulate Integrated Emission 1mg/m3
882024 Annual Report of Luzhou Laojiao Co. Ltd.
matters Standards for Air
Pollutants (GB16297-
1996)
Odor 2000
DA041 and DA042 of concentration Emission Standards for (dimensionless)
1 time/half-
Huangyi Brewery Eco- Ammonia Odor Pollutants 4.9kg/h Manual 100%
year
Park Hydrogen (GB14554-93)
0.33kg/h
sulfide
DA096-DA097 of Huangyi 1
NMHC / / Manual 100%
Brewery Eco-Park time/quarter
DA034-DA040 DA043-
DA070 DA076-DA086 Integrated Emission 100%
DA088-DA095 DA098 Particulate Standards for Air 1 time/half- (DA100-101 not
120mg/m3 Manual
and DA099-DA101 of matters Pollutants (GB16297- year yet put into
Huangyi Brewery Eco- 1996) operation )
Park
Particulate Emission Standard of Air 200mg/m3
matters Pollutants for Industrial
1 time/month
Sulfur dioxide Kiln and Furnace (GB /
DA102 of Huangyi Nitrogen oxide 9078-1996) / Not yet put into
Manual
Brewery Eco-Park Ammonia Emission Standards for operation
/
(NH3) Odor Pollutants 1
8.55kg/h
(GB14554-93) time/quarter
NMHC / /
Flow /
PH value 6-9
COD 400mg/L
1
Ammonia Standards for the Automatic
Main outlet of the nitrogen Emission of Water
30mg/L time/quarter
wastewater treatment Pollutants in the
TP 3mg/L 100%
station of Huangyi Fermented Alcohol and
Brewery Eco-Park TN Baijiu Industry (GB2731- 50mg/L
Suspended 2011) 140mg/L
solids
1 time/month Manual
Five-day BOD 80mg/L
Chroma 80
Noise monitoring points 1- Emission Standard for
Daytime: 65 dB
4# at the boundary of Boundary Noise of Industrial 1
(A); nighttime: Manual 100%
Huangyi Brewery Eco- noise Enterprises at Boundary time/quarter
55 dB (A)
Park (GB12348-2008)
Emission Standards for
Unorganized monitoring Odor
Odor Pollutants 20 1 time/half-
points 1#-7# at Xiaoshi concentration Manual 100%
(GB14554- 93) year
Brewery Base
NMHC / /
Ringelman
≤1
Boiler exhaust gas vents emittance Emission Standards for
3 1 time/year DA001-DA010 of Xiaoshi Soot Air Pollutants for Boiler 20mg/m Manual 100%
Brewery Base Sulfur dioxide: (GB13271-2014) 50mg/m3
Nitrogen oxide 150mg/m3 1 time/month
Emission Standard for
Noise monitoring points at
Boundary Noise of Industrial Daytime: 60 dB 1
the boundary of Xiaoshi Manual 100%
noise Enterprises at Boundary (A) time/quarter
Brewery Base
(GB12348-2008)
Unorganized monitoring Emission Standards for
Odor
points 1#-4# of National Odor Pollutants 20
concentration 1 time/half-
Cellar and 1#-3# of (GB14554- 93) Manual 100%
year
Zaojiaoxiang Brewery
NMHC / /
Bases
Ringelman
Boiler exhaust gas vents ≤1 emittance Emission Standards for
DA001-DA003 of National 1 time/year
Soot Air Pollutants for Boiler 20mg/m3 Manual 100%
Cellar and Zaojiaoxiang
Sulfur dioxide: (GB13271-2014) 50mg/m3
Brewery Bases
Nitrogen oxide 150mg/m3 1 time/month
Emission Standard for
Noise monitoring points at
Noise of Industrial
the boundary of National Boundary Daytime: 60 dB 1
Enterprises at Boundary Manual 100%
Cellar and Zaojiaoxiang noise (A) time/quarter
(Class 4 for street
Brewery Bases
frontage)
Standards for the 1 time/month
Emission of Water (1
Rainwater outlet DW003
Suspended Pollutants in the time/quarter
of National Cellar Brewery 20mg/L Manual 100%
solids Fermented Alcohol and in case of no
Base
Baijiu Industry (GB2731- abnormalities
2011) monitored)
892024 Annual Report of Luzhou Laojiao Co. Ltd.
Input in environmental management and protection and the payment of environmental protection-
related taxes
During the reporting period CNY 58.01 million was input in environmental governance and protection
and CNY 156 thousand was paid in environmental protection tax as required.Amount of tax payable (CNY Actual amount paid (CNY Tax deduction (CNY Taxable pollutant
10000)10000)10000)
Water pollutant and air
16.115.60.5
pollutant
Measures taken to reduce carbon emissions during the reporting period and the results
□ Applicable □ N/A
The Company reduced CO2 emissions through resource recycling. Waste heat recovery is carried out
during the bran steaming stage to save steam reducing natural gas consumption by approximately
1.24 million cubic meters and carbon dioxide emissions by more than 2700 tons per year. The
Company recycled the marsh gas generated from the wastewater treatment process as boiler fuel
with 3.5992 million cubic meters of marsh gas recycled during the reporting period and more than
52281 tons of carbon dioxide emissions were reduced. In addition the Company reduced carbon
dioxide emissions by purchasing green power. During the reporting period 5944000 kilowatt-hours
of green power were purchased and carbon emissions were reduced by 3190 tons.Administrative penalties received in the reporting period due to environmental issues
The Company or Reason for Regulation Impact on the
Penalties Rectification
subsidiary penalties violated Company
N/A
Other information about environmental protection that should be disclosed
None
Other information about environment protection
None
2. Social responsibility
See the 2024 Environmental Social and Governance (ESG) Report disclosed on the same day with
this Annual Report.
3. Efforts in poverty alleviation and rural revitalization
3.1. Work plan for rural revitalization in 2024
In 2024 the Company will strictly implement the arrangement of the central provincial and municipal
Party committees regarding effectively connecting consolidation and expansion of poverty alleviation
902024 Annual Report of Luzhou Laojiao Co. Ltd.
achievements with rural revitalization as well as follow the principle of "what the locality needs is whatthe enterprise can provide”. Focusing on the bottom-line assistance for Hongyuan County as well as
the targeted assistance for Guntang Village in Hongyuan County Xiangtian Village in Gulin County
Hongdongqiao Village and Baiyang Village in Xuyong County a series of targeted beneficial and
forward-looking key projects will be initiated and carried out effectively advancing the bottom-line and
targeted assistance for the assisted areas so that they can catch up and achieve leapfrog development.A. Enhance industrial assistance and stimulate the development momentum. By virtue of the resource
endowment of the assisted areas and the operational advantages of the Company the Company will
focus on incorporating agricultural and animal husbandry industries into modernized industrial parks.Our goal is to promote the transformation and high-quality development of modern animal husbandry
tap into and utilize the unique advantages of resources in the assisted villages. It plans to broaden the
sales channels of characteristic agricultural and sideline products through bulk purchases "purchase
for sales" initiatives and e-commerce platforms aiming to accelerate the conversion of resource
advantages into industrial strengths.B. Improve the infrastructure and enhance the living environment. To effectively improve the rural living
environment and enhance the happiness index of the people one of the Company's objectives is to
build ecologically beautiful and livable villages. In 2024 the plan is to add movable trash bins to the
assisted villages further improving the hygiene of the village environment beautifying the village
appearance and cultivating good hygiene habits among the people in Tibetan areas; and the plan also
includes upgrading the heating equipment in the assisted villages to help solve the heating problems in
the high-cold environments of the assisted villages.C. Focusing on educational assistance to support students’ growth. The Company will continue to carry
out the “Pillar Program – Gratitude and Striving Forward” initiative granting a scholarship of CNY 5000
to each financially disadvantaged college freshman graduating in 2025 from the assisted villages. This
initiative aims to support underprivileged students in their educational journey address the challenge of
access to education and fundamentally prevent school dropout due to financial hardship.D. Strengthening the talent support and enhancing the vitality of development. Focusing on the
requirements of the new era and based on the new stage of development the Company will continue
transitioning the assistance model toward capacity enhancement industry-driven and sustainable
development types. Youth training programs will be conducted according to the needs of characteristic
industries in assisted regions with the goal of cultivating a dedicated and capable talent team that is
willing to stay and contribute.E. Increase cultural support and enrich the cultural knowledge. To further solidify the ideological and
ethical standards and build up moral power for rural revitalization the company will continue to focus on
local cultural characteristics and the spiritual needs of the masses. It will strongly support the promotion
of traditional culture such as Tibetan opera and support themed events for International Women's Day
and other activities to enrich the cultural life of the masses. These efforts aim to broaden the villagers'
horizons and uplift their spirits.F. Enhance the building of the assistance team to boost rural revitalization. Considering the next steps
in the assistance plan the Company guided by the principle of sending people who are needed and
suitable for the task will select a group of individuals with strong execution abilities high professional
qualities and broad expertise to form an assistance team. The Company will ensure that the assistance
initiative is effectively implemented on the front line and the role of assistance is well played on the
front line so as to contribute to the comprehensive revitalization of rural industries culture ecosystem
912024 Annual Report of Luzhou Laojiao Co. Ltd.
organizations and talents.
3.2. The achievements of rural revitalization assistance in 2024
In 2024 the Company fully implemented the decisions and arrangements of the Provincial Party
Committee and Government as well as the Luzhou Municipal Party Committee and Government
regarding bottom-line and targeted assistance. Leveraging its advantages in capital technology talent
and management the Company invested a total of CNY 3543900 in assistance projects. Over ten
high-quality projects were carried out focusing on industrial support educational support employment
assistance consumer support talent development and the promotion of rural civility aiming to ensure
effective alignment between poverty alleviation achievements and rural revitalization.First the Company strengthened organizational leadership to systematically advance
responsibility fulfillment. Throughout the year four Party committee meetings were convened to
communicate and deploy related work and six special meetings on assistance were held to study
implementation measures. Tailored plans under the “One Enterprise One Policy” approach were
formulated and members of the leadership team conducted eight visits to counties and villages for on-
site coordination and research into revitalization paths. Six politically reliable highly competent and
proactive young employees were assigned to reside in the villages full-time to ensure effective
implementation of assistance efforts.Second the Company focused on industrial upgrading to inject strong momentum into
development. A total of CNY 1065000 was invested to support Hongyuan County in establishing the
“Yak Grassland Enterprise Store” livestreaming studio on Douyin where sales during the livestream
exceeded CNY 1 million effectively boosting the local yak industry. The Company actively carried out
bulk procurement and “purchase instead of donation” campaigns purchasing CNY 1760600 worth of
specialty products such as yak milk powder and yak jerky from Hongyuan County and CNY 220000 of
alpine specialty rice from Xiangtian Village. These efforts achieved tangible results in promoting supply-
demand linkage and rural revitalization strengthening collective economies and increasing villagers’
income. The Company also continued to deepen the “self-motivation-based” assistance model by
distributing 5000 charity chicks to Xiangtian Village helping 294 households increase income by
approximately CNY 500000.Third the Company enhanced talent development to accumulate momentum for growth. To
encourage rural students to study diligently the Company granted a total of CNY 160000 in
scholarships to 32 college freshmen from Guntang Village and Xiangtian Village helping disadvantaged
students fulfill their college dreams. The Company launched a “charity teaching support” initiative in
Xiangtian Village to deliver school uniforms and care packages to underprivileged students contributing
to the prevention of intergenerational poverty transmission. In earnest fulfillment of the key political task
of “preventing dropout and ensuring compulsory education” the Company invested CNY 266700 to
organize a summer camp for 32 teachers and students from Hongyuan County. Additionally CNY
100000 was allocated for a youth talent training program in Hongyuan County under which experts
were invited to provide e-commerce training and hands-on sessions for over 50 aspiring entrepreneurs
aiming to cultivate a locally rooted capable and committed talent pool for the assisted region.Fourth the Company improved infrastructure to enhance the rural environment. The Company
invested CNY 80000 to upgrade and repair the heating facilities and equipment of the Maiwa Township
Government in Hongyuan providing a comfortable working environment for staff in this alpine region.Additionally CNY 70000 was allocated to install nine 2.5-cubic-meter detachable garbage container
922024 Annual Report of Luzhou Laojiao Co. Ltd.
boxes in Hongyuan County thereby facilitating the establishment of a village-wide waste collection and
transportation network and improving the living environment for villagers by making it cleaner more
pleasant and more comfortable.Fifth the Company expanded benefit measures to safeguard people’s well-being. The Company
has always upheld the principle of “I do practical things for the public” as a key guideline in its
assistance work resolving over twenty urgent and difficult issues for villagers in assisted areas
including medical care and permafrost removal. CNY 50000 was used to procure high-quality coal for
distribution to 100 households lifted out of poverty and over CNY 100000 was spent on distributing
New Year relief packages to more than 400 households ensuring warmth during winter. The stationed
village work team actively fulfilled their responsibilities by completing safety inspections for all houses of
poverty-alleviated households and assisting the village committees in implementing a special winter
pipe protection campaign. These efforts helped consolidate the achievements in the “three guarantees”
and drinking water safety ensuring the effective delivery of various benefit measures.Sixth the Company promoted traditional culture to enhance villagers’ spiritual outlook. The
Company invested CNY 95000 to support festival and local cultural activities in Guntang Village which
helped promote and pass on intangible cultural heritage such as Baiwang playing and singing and
Tibetan opera. These efforts actively disseminated traditional rural and Tibetan culture and enriched the
cultural and spiritual life of herders.
3.3. Assistance highlights in 2024
A. Promoting industrial training to enhance professional “capabilities”. In accordance with the
requirement to “strengthen industry-led support” the Company invested CNY 100000 to implement a
youth talent training program in Hongyuan County. By delivering technologies and sharing practical
experiences the Company effectively transformed assistance resources into villagers’ capacity for self-
driven development fueling new drivers for industrial revitalization and providing sustainable support for
rural revitalization.B. Supporting courtyard farming to enhance the “momentum” for prosperity. At the beginning of the year
the Company distributed 5000 disease-resistant chicks to nearly 300 low-income households in
assisted villages and guided them in scientific farming. At year-end the Company coordinated with the
Wumengshan Supply and Marketing Cooperative to purchase the poultry in villages enabling farmers
to increase their income by nearly CNY 500000. Courtyard farming has become an important means
for poverty-alleviated households to boost their income and a new growth driver for rural collective
economic development. This has effectively motivated villagers to pursue prosperity and provided
stronger “driving power” for rural industrial development.C. Conducting themed education to strengthen “emotional support”. Four “Gratitude and StrivingForward” themed education sessions were held in assisted villages. Through comparisons between
past and present and through showcasing development achievements these sessions highlighted the
results of regional revitalization helping villagers deeply appreciate social transformation and
government care and cultivating a sense of gratitude. By uncovering local role models of perseverance
villagers were inspired to cherish development opportunities and transform their gratitude into active
participation in residential environment improvement and specialty industry cultivation thereby building
consensus for the revitalization and development of assisted villages.
3.4. Work plan for assistance in 2025
932024 Annual Report of Luzhou Laojiao Co. Ltd.
Looking ahead the Company will firmly regard supporting the revitalization and development of
assisted regions as a significant political responsibility and mission and will fully implement all tasks
related to bottom-line and targeted assistance.A. Deepening industrial support to unleash development potential. The Company will adhere to the
implementation of the strategy to “strengthen industry-led support” as the central focus consistently
treating industrial development as the key to both development and assistance. The Company will
concentrate on the characteristic and advantageous resources of assisted counties and leverage the
Company’s strengths in business operation and management to promote high-quality development of
local industries. At the same time the Company will participate to the fullest extent possible in the
“matrix-style” assistance efforts for underdeveloped counties supporting their accelerated growth.B. Sustaining consumer assistance to broaden income channels. The Company will actively practice its
corporate philosophy of “Baijiu for the World a Shared Future” by continuing to carry out “bulkprocurement” campaigns and mobilizing upstream and downstream partners to participate in “purchaseinstead of donation” initiatives. Through the purchase of specialty products from underdeveloped
counties the Company aims to resolve their agricultural product sales challenges and transform local
specialties into income-generating industries for farmers thereby establishing a key engine for
comprehensive rural revitalization.C. Strengthening talent assistance to boost endogenous momentum. The Company will remain
committed to providing intellectual support and talent assistance by conducting multi-dimensional
capacity-building actions such as educational support talent training and pairing co-development. The
focus will shift from one-way input to empowerment-based models treating local talent cultivation as an
effective approach to improving the quality and capability of assisted regions and fully reinforcing the
talent foundation for rural revitalization.D. Implementing multiple measures to safeguard people’s well-being. The Company will continue to
prioritize livelihood-related assistance as both the starting point and the ultimate goal of rural
revitalization. Through activities such as joint Party building visits and condolences and spiritual
civilization promotion the Company will implement multi-dimensional and multi-level support measures
to effectively prevent the risk of returning to poverty and improve the quality of life for farmers and
herders in underdeveloped counties.
942024 Annual Report of Luzhou Laojiao Co. Ltd.
Section VI Significant Events
1. Performance of undertakings
1.1. Undertakings of the Company's actual controller shareholders related parties
and acquirer as well as the Company and other commitment makers fulfilled in
the reporting period or ongoing by the end of this reporting period
□ Applicable □ N/A
Type of Date of
Term of
Commitment Promisor commitme Details of commitment commitment Fulfillment
commitment
nt making
Not to reduce shares of
Other Luzhou Laojiao Co. Ltd.Laojiao August 25 Having
commitme held by us in any way 12 months
Group 2023 expired
nts within 12 months from
August 25 2023
Laojiao Group plans to
increase its holdings of
the Company's shares
via its wholly-owned
subsidiary Golden
Rudder through call
auction trading within 6
months from December
15 2023 with the
amount of increase not
less than CNY 200
Other
million and not more than
commitments
Laojiao CNY 250 million. Laojiao
Other
Group and Group and Golden December Having
commitme 6 months
Golden Rudder promise not to 15 2023 expired
nts
Rudder reduce their holdings of
the Company's shares
during the increase
period within the
statutory period and
before the announcement
of the completion of the
increase plan and will
complete the
implementation of the
increase plan within the
above implementation
period.Executed on
Yes
time or not
952024 Annual Report of Luzhou Laojiao Co. Ltd.
1.2. Where any earnings forecast was made for any of the Company's assets or
projects and the reporting period is still within the forecast period the Company
shall explain whether the performance of the asset or project reaches the earnings
forecast and reasons
□ Applicable □ N/A
2. Occupation of the Company's fund by the controlling shareholder or
its related parties for non-operating purposes
□ Applicable □ N/A?
No such cases in the reporting period.
3. Irregularities in the provision of guarantees
□ Applicable □ N/A
No such cases in the reporting period.
4. Explanation of the board of directors regarding the latest "non-
standard audit opinion"
□ Applicable □ N/A
5. Explanation of the board of directors the board of supervisors and
non-executive directors (if any) regarding the "non-standard audit
opinion" for the reporting period
□ Applicable □ N/A
6. Reason for changes in accounting policies and accounting estimates
as well as correction of major accounting errors compared to the
financial report for the prior year
□ Applicable □ N/AFor details of changes in accounting policies please refer to “5.37 Changes in significant accountingpolicies and accounting estimates” in Section X.
962024 Annual Report of Luzhou Laojiao Co. Ltd.
7. Reason for changes in scope of the consolidated financial statements
compared to the financial report for the prior year
□ Applicable □ N/A
Luzhou Laojiao Whitail Liquor Industry Co. Ltd. a subsidiary of the Company was liquidated and de-
registered in June 2024. And it has thus been excluded from the consolidated financial statements of
the Company.
8. Engagement and disengagement of CPA firm
CPA firm at present
Name of the domestic CPA firm ShineWing Certified Public Accountants
The Company’s payment for the domestic CPA
88
firm (CNY 10000)
Consecutive years of the audit service provided
1
by the domestic CPA firm
Names of the certified public accountants from
He Jun Ouyang Lihua
the domestic CPA firm
Consecutive years of the audit service provided He Jun: 1 year
by the certified public accountants Ouyang Lihua: 1 year
Whether the CPA firm was changed in the current period
□ Yes □ No
Whether the CPA firm was changed during the audit
□ Yes □ No
Whether an approval procedure was executed for the change of CPA firm
□ Yes □ No
Details of the change of CPA firm
In view of the fact that Sichuan Huaxin (Group) CPA Firm has provided audit services to the Company
for 26 consecutive years in order to ensure the independence and objectivity of the audit work in
accordance with the relevant provisions of the Management Measures for the Appointment of
Accounting Firm by State-owned Enterprises and Listed Companies upon open bidding the
Company appointed ShineWing Certified Public Accountants as the 2024 annual financial report and
internal control audit agency.Engagement of any CPA firm for internal control audit financial advisor or sponsor
□ Applicable □ N/A
The Company appointed ShineWing Certified Public Accountants as the internal control auditor for
this year. The remuneration of audit in total paid by the Company was CNY 440 thousand.
972024 Annual Report of Luzhou Laojiao Co. Ltd.
9. Possibility of delisting after disclosure of this annual report
□ Applicable □ N/A
10. Bankruptcy and reorganization
□ Applicable □ N/A
No such cases in the reporting period.
11. Material litigation and arbitration
□ Applicable □ N/A
Amount Whether it Trial results Execution of
Profile of Progress in
involved in forms an and impacts of judgment of Date of Disclosure
litigation litigation
the case (CNY estimate litigation litigation disclosure index
(arbitration) (arbitration)
10000) liability (arbitration) (arbitration)
The Company
applied to
The Company
Hunan
filed a lawsuit For the losses
Province
with ABC that the
Higher
Changsha Company
People's Court
Yingxin cannot
for
Branch over a recover
enforcement
deposit through
of the verdict.dispute and criminal
Hunan
the case has execution
Province
been The second procedures
Higher
completed in trial has been 40% shall be
People's Court See Section
the first concluded borne by ABCruled that October 15 VI “Otherinstance of 14942.5 No and the case Changsha Hunan 2014 significant
Hunan is now at the YingxinChangsha events”
Province stage of Branch 20%
Intermediate
Higher enforcement. shall be borne
People’s Court
People's Court by ABC
should see to
and the final Changsha
the execution
trial of the Hongxin
of the verdict.Supreme Branch and
Upon the
People's the rest shall
enforcement
Court. The be borne by
the banks
case is now at the Company
have paid part
the stage of itself.of the
enforcement.compensation
s.The Company ICBC
filed a lawsuit Nanyang
with ICBC Zhongzhou Upon the
Nanyang Branch ICBC bank's
Zhongzhou Nanyang voluntary
Branch over a Branch and execution and
deposit Sanya Rural execution by
dispute and Commercial the Nanyang
the case has Both the trial Bank Hongsha Intermediate See Sectionbeen and execution Branch shall People's January 10 VI “Other
15000 No
completed in have been pay Court the 2015 significantthe first concluded. compensation Company events”
instance of s of CNY 75 received a
Henan million CNY total
Province 7.5 million and compensation
Higher CNY 6.105 of CNY
People's Court million 106.1426
and the final respectively million.trial of the with the
Supreme relevant
982024 Annual Report of Luzhou Laojiao Co. Ltd.
People's interest to the
Court. The Company and
case is now the rest of the
concluded and loss shall be
the judgment borne by the
has been Company
executed. itself.
12. Punishments and rectifications
□ Applicable □ N/A
No such cases in the reporting period.
13. Credit conditions of the Company as well as its controlling
shareholder and actual controller
□ Applicable □ N/A
14. Significant related party transactions
14.1. Related party transactions arising from routine operation
□ Applicable □ N/A
No such cases in the reporting period.
14.2. Related party transactions regarding purchase or sales of assets or equity
interests
□ Applicable □ N/A
No such cases in the reporting period.
14.3. Related party transitions arising from joint investments in external parties
□ Applicable □ N/A
No such cases in the reporting period.
14.4. Credits and liabilities with related parties
□ Applicable □ N/A
No such cases in the reporting period.
992024 Annual Report of Luzhou Laojiao Co. Ltd.
14.5. Transactions with related finance companies
□ Applicable □ N/A
The Company did not make deposits in receive loans or credit from and was not involved in any
other finance business with any related finance company or any of its related parties.
14.6. Transactions between finance companies controlled by the Company and
related parties
□ Applicable □ N/A
No related parties made deposits in received loans or credit from or was involved in any other
finance business with any finance company controlled by the Company.
14.7. Other significant related party transactions
□ Applicable □ N/A
No such cases in the reporting period.
15. Significant contracts and their execution
15.1. Trusteeship contracting and leasing
15.1.1. Trusteeship
□ Applicable □ N/A
No such cases in the reporting period.
15.1.2. Contracting
□ Applicable □ N/A
No such cases in the reporting period.
15.1.3. Leasing
□ Applicable □ N/A
No such cases in the reporting period.
15.2. Major guarantees
□ Applicable □ N/A
No such cases in the reporting period.
1002024 Annual Report of Luzhou Laojiao Co. Ltd.
15.3. Entrusted cash asset management
15.3.1. Entrusted assets management
□ Applicable □ N/A
Entrusted assets management during the reporting period
Unit: CNY 10000
Impairment
Fund source for Amount of Overdue allowances for
Type entrusted assets entrusted assets Undue balance outstanding the overdue
management management amount outstanding
amount
Wealth
management
Own funds 246000 170000 0 0
product of
securities firm
Total 246000 170000 0 0
Particulars of high risk wealth management products with a significant single amount or low security
or poor liquidity
□ Applicable □ N/A
Expected inability to recover the principal of entrusted assets management or other circumstances
that may result in impairment
□ Applicable □ N/A
15.3.2 Entrust loans
□ Applicable □ N/A
No such cases in the reporting period.
15.4. Other significant contracts
□ Applicable □ N/A
No such cases in the reporting period.
16. Other significant events
□ Applicable □ N/A
The Company disclosed in October 2014 and January 2015 respectively the contract disputes
involving three savings deposits of CNY 500 million in total with banks including ABC Changsha
Yingxin Branch and ICBC Nanyang Zhongzhou Branch. Upon criminal booty recovery criminal and
1012024 Annual Report of Luzhou Laojiao Co. Ltd.
civil enforcement as of the end of the reporting period the Company had recovered a total amount of
CNY 376 million for the three disputes.See details in the Company’s announcements:
Date of announcement No. Catalogue Official website
Announcement of significant http://www.cninfo.com.cn/
October 15 2014 2014-35
litigation
Announcement of significant
November 12 2014 2014-41
litigation progress
Announcement of significant
December 6 2014 2014-43
litigation progress part II
Announcement of significant
January 10 2015 2015-1
events
Announcement of significant
February 4 2015 2015-4
events progress
Announcement of significant
March 25 2015 2015-11
litigation progress part III
Announcement of significant
April 18 2015 2015-20
litigation progress part IV
Announcement of significant
April 22 2015 2015-21
events progress part II
Announcement of significant
April 24 2015 2015-25
litigation progress part V
Announcement of significant
July 15 2015 2015-44
litigation progress part VI
Announcement of significant
July 22 2015 2015-45
litigation progress part VII
Announcement of significant
June 6 2018 2018-17
litigation progress part VIII
Announcement of significant
May 7 2019 2019-11
litigation progress part IX
Announcement of significant
May 17 2019 2019-13
litigation progress part X
Announcement of significant
March 24 2020 2020-6
litigation progress part XI
Announcement of significant
May 6 2020 2020-14
litigation progress part XII
Announcement of significant
November 7 2020 2020-34
litigation progress part XIII
Announcement of significant
July 6 2021 2021-30
litigation progress part XIV
Announcement of significant
December 15 2021 2021-57
litigation progress part XV
Announcement of significant
December 30 2021 2021-64
litigation progress part XVI
17. Significant events of subsidiaries
□ Applicable □ N/A
The Company invested in the technical upgrade program of intelligent brewing (Phase I) with the
wholly-owned subsidiary Brewing Company as the implementer. The total investment amount
approximated CNY 4782.5090 million. For further information see Announcement No. 2022-24 on
the Implementation of Luzhou Laojiao’s Technical Upgrade Program of Intelligent Brewing (Phase I)
by Subsidiary. The program is currently under construction.
1022024 Annual Report of Luzhou Laojiao Co. Ltd.
Section VII Changes in Shares and Information about
Shareholders
1. Changes in shares
1.1 Changes in shares
Unit：Share
Before Changes in this year (＋，－) AfterIssuanc Capitalizati
Proportio e of Bonus on of Subtot
Number Other Number Proportion
n new shares capital al
shares reserves
I. - -
Restricted 7468589 0.51% 281863 2818 4649959 0.32%
shares
0630
1. Shares
held by the
state
2. Shares
held by
state-
owned
corporatio
ns
3. Shares
held by - -
other 7468589 0.51% 281863 2818 4649959 0.32%
domestic
0630
investors
Of which:
shares
held by
domestic
corporatio
ns
Shares - -
held by
domestic 7468589 0.51% 281863 2818 4649959 0.32%
individuals 0 630
4. Shares
held by
foreign
corporatio
ns
Of which:
shares
held by
foreign
corporatio
ns
Shares
held by
foreign
individuals
II. Non-
2782362782
restricted 1464519180 99.49% 1467301544 99.68%
shares 4 364
1.CNY
2782362782
common 1464519180 99.49% 1467301544 99.68%
shares 4 364
2.
Domestical
ly listed
foreign
shares
1032024 Annual Report of Luzhou Laojiao Co. Ltd.
3.
Overseas
listed
foreign
shares
4. Other
III. Total -
shares 1471987769 100.00% -36266 1471951503 100.00% 36266
Reasons for the change in shares
□ Applicable □ N/A
A. On January 23 2024 the Company held the 38th Meeting of the 10th Board of Directors and the
20th Meeting of the 10th Board of Supervisors at which the Proposal on the Satisfaction of Unlocking
Conditions for the First Unlocking Period of the 2021 Restricted Share Incentive Plan was reviewed
and approved. As such 2734640 restricted shares of 435 awardees that satisfied the unlocking
conditions for the first unlocking period of the 2021 Restricted Share Incentive Plan were allowed for
public trading on February 22 2024. On September 23 2024 the Company held the Fourth Meeting
of the 11th Board of Directors and the Third Meeting of the 11th Board of Supervisors at which the
Proposal on the Satisfaction of Unlocking Conditions for the First Unlocking Period of the Reserved
Restricted Shares under the 2021 Restricted Share Incentive Plan was reviewed and approved. As
such 134534 reserved restricted shares of 45 awardees that satisfied the unlocking conditions for
the first unlocking period of the 2021 Restricted Share Incentive Plan were allowed for public trading
on October 9 2024.B. On January 23 2024 the Company held the 38th Meeting of the 10th Board of Directors and the
20th Meeting of the 10th Board of Supervisors at which the Proposal on the Repurchase and
Retirement of Certain Restricted Shares and the Adjustment of Repurchase Price was reviewed and
approved. As three awardees were no longer eligible for the incentives the Company decided to
repurchase and retire a total of 15266 restricted shares that had been granted to the aforesaid
awardees but remained in lockup. On June 4 2024 the Proposal on the Repurchase and Retirement
of Certain Restricted Shares was approved at the 40th Meeting of the 10th Board of Directors and the
22nd Meeting of the Board of Supervisors respectively. As one awardee was no longer eligible for the
incentives the Company decided to repurchase and retire a total of 6000 restricted shares that had
been granted to the aforesaid awardee but remained in lockup. The repurchase and retirement of the
aforesaid shares was completed on August 14 2024. On September 23 2024 the Company held the
Fourth Meeting of the 11th Board of Directors and the Third Meeting of the 11th Board of Supervisors
at which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and the
Adjustment of Repurchase Price was reviewed and approved. As one awardee was no longer eligible
for the incentives the Company decided to repurchase and retire a total of 15000 restricted shares
that had been granted to the aforesaid awardee but remained in lockup. The repurchase and
retirement of the aforesaid shares was completed on December 18 2024.C. During the reporting period due to the unlocking of restricted shares under the restricted share
incentive plan locked shares of the Company’s senior management increased by 98130 shares.D. During the reporting period 11320 locked shares of Shen Caihong a member of the Company’s
senior management were unlocked.Approval of share changes
1042024 Annual Report of Luzhou Laojiao Co. Ltd.
□ Applicable □ N/A
On January 23 2024 the Company held the 38th Meeting of the 10th Board of Directors and the 20th
Meeting of the 10th Board of Supervisors at which the Proposal on the Repurchase and Retirement
of Certain Restricted Shares and the Adjustment of Repurchase Price was reviewed and approved.As three awardees were no longer eligible for the incentives the Company decided to repurchase
and retire a total of 15266 restricted shares that had been granted to the aforesaid awardees but
remained in lockup. On June 4 2024 the Proposal on the Repurchase and Retirement of Certain
Restricted Shares was approved at the 40th Meeting of the 10th Board of Directors and the 22nd
Meeting of the Board of Supervisors respectively. As one awardee was no longer eligible for the
incentives the Company decided to repurchase and retire a total of 6000 restricted shares that had
been granted to the aforesaid awardee but remained in lockup. The repurchase and retirement of the
aforesaid shares was completed on August 14 2024. On September 23 2024 the Company held the
Fourth Meeting of the 11th Board of Directors and the Third Meeting of the 11th Board of Supervisors
at which the Proposal on the Repurchase and Retirement of Certain Restricted Shares and the
Adjustment of Repurchase Price was reviewed and approved. As one awardee was no longer eligible
for the incentives the Company decided to repurchase and retire a total of 15000 restricted shares
that had been granted to the aforesaid awardee but remained in lockup. The repurchase and
retirement of the aforesaid shares was completed on December 18 2024. Upon the above-mentioned
repurchases and retirements the total share capital of the Company decreased to 1471951503
shares from 1471987769.Transfer of share ownership
□ Applicable □ N/A
Effects of changes in shares on the basic EPS diluted EPS net assets per share attributable to
common shareholders of the Company and other financial indexes over the last year and the last
reporting period
□ Applicable □ N/A
Other contents that the Company considers it necessary or required by the securities regulatory
authorities to disclose
□ Applicable □ N/A
1.2 Changes in restricted shares
□ Applicable □ N/A
Unit: Share
Number of
Number of
restricted Increase in Decrease in
restricted
shares held at restricted restricted
Name of shares held at Reason for Date of
the beginning shares during shares during
shareholder the end of the restriction unlocking
of the the reporting the reporting
reporting
reporting period period
period
period
1052024 Annual Report of Luzhou Laojiao Co. Ltd.
In accordance
with the
Restricted
relevant
2021 shares under
unlocking
Restricted the 2021
7235293 -36266 2869174 4329853 provisions of
Share Restricted
the 2021
Incentive Plan Share
Restricted
Incentive Plan
Share
Incentive Plan
Locked
shares of
In accordance
senior
with the
management
relevant
Locked converted
unlocking
shares of from unlocked
233296 98130 11320 320106 provisions of
senior restricted
the 2021
management shares under
Restricted
the 2021
Share
Restricted
Incentive Plan
Share
Incentive Plan
Total 7468589 61864 2880494 4649959 -- --
2. Issuance and listing of securities
2.1 Securities (excluding preferred shares) issued in the reporting period
□ Applicable □ N/A
2.2 Changes in total shares of the Company and the shareholder structure as well
as the asset and liability structure
□ Applicable □ N/A
During the reporting period the total share capital of the Company decreased to 1471951503 shares
from 1471987769 due to the repurchase and retirement of certain restricted shares.
2.3 Existing staff-held shares
□ Applicable □ N/A
1062024 Annual Report of Luzhou Laojiao Co. Ltd.
3. Shareholders and actual controller
3.1 Total number of shareholders and their shareholdings
Unit: Share
Total
Total number of
number of preferred
Total
common shareholder
number of
shareholder s with Total number of preferred
common
s at the prior resumed shareholders with resumed
shareholder
210742 month-end 180122 voting rights 0 voting rights by the end of 0
s at the end
before the by the end the reporting period (if
of the
disclosure of the any)(see Note 8)
reporting
date of the reporting
period
annual period (if
report any)(see
Note 8)
Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders (exclusive of shares lent in refinancing)
Total shares Increase/de Pledged marked or frozen
Number of Number of
Shareholdin held by the crease shares
Name of Nature of holding holding non-
g end of the during the
shareholder shareholder restricted restricted Status of Number of
percentage reporting reporting
shares shares shares shares
period period
Luzhou
Laojiao State-owned
25.89% 381088389 0 0 381088389 N/A 0
Group Co. corporation
Ltd.Luzhou
XingLu
State-owned
Investment 24.86% 365971142 0 0 365971142 N/A 0
corporation
Group Co.Ltd.Bank of
China Co.Ltd. – Baijiu
index
classification
7818790.0
securities Other 3.45% 50835769 0 50835769 N/A 0
0
investment
fund by
China
Merchants
Fund
Hong Kong
Securities -
Outbound
Clearing 2.44% 35913646 11577615. 0 35913646 N/A 0
corporation
Company 00
Limited
China
Securities
Finance Other 2.30% 33842059 0 0 33842059 N/A 0
Corporation
Limited
Bank of Other 1.51% 22250000 780000.00 0 22250000 N/A 0
1072024 Annual Report of Luzhou Laojiao Co. Ltd.
China Co.Ltd.－Blue
chip
selected
hybrid
securities
investment
fund by E
Fund
Central
Huijin Asset State-owned
0.92% 13539862 0 0 13539862 N/A 0
Managemen corporation
t Co. Ltd.Industrial
and
Commercial
Bank of
China Co.
7350600.0
Ltd.- Huatai- Other 0.87% 12761135 0 12761135 N/A 0
0
Pinebridge
CSI 300
Exchange-
Traded
Fund
Industrial
and
Commercial
Bank of
China Co.Ltd.-Newly -
growth Other 0.85% 12550000 1048087.0 0 12550000 N/A 0
hybrid 0
securities
investment
fund by
Invesco
Great Wall
China
Construction
Bank
Corporation
－Penghua 2204771.0
Other 0.68% 10007720 0 10007720 N/A 0
Wine & 0
Liquor
Exchange-
Traded
Fund
Strategic investors or
general corporations
become the top-ten
N/A
shareholders due to placing
of new shares (if any) (see
note 3)
1. Luzhou Laojiao Group Co. Ltd. and Luzhou XingLu Investment Group Co. Ltd. are both holding state-
Related parties or acting-in- owned companies under the jurisdiction of SASAC of Luzhou. The two companies signed the agreement of
concert persons acting in concert on December 31 2015 and the renewed agreement of persons acting in concert on
May 27 2021. For details please refer to the announcement of the Company on January 5 2016 -
1082024 Annual Report of Luzhou Laojiao Co. Ltd.
Announcement on the Agreement of Persons Acting in Concert Signed by Shareholders (Announcement No.
2016-1) and the announcement of the Company on May 29 2021 - Announcement on the Renewed
Agreement of Persons Acting in Concert Signed by Shareholders (Announcement No. 2021-18). The two
companies signed the renewed agreement of persons acting in concert again on May 23 2024. For details
please refer to the announcement of the Company on May 23 2024 - Announcement on the Renewed
Agreement of Persons Acting in Concert Signed by Shareholders (Announcement No. 2024-22).
2. During the reporting period Luzhou Laojiao Group Co. Ltd. through its wholly-owned subsidiary Golden
Rudder increased its holdings in the Company by 1140200 shares through call auction trading accounting
for 0.08% of the total share capital of the Company. By the end of the reporting period Luzhou Laojiao Group
Co. Ltd. and Golden Rudder collectively held 382228589 shares in the Company representing 25.97% of
the total share capital of the Company.
3. In addition whether there is an association between the remaining shareholders or they belong to persons
acting in concert is unknown.Explain if any of the
shareholders above was
involved in entrusting/being N/A
entrusted with voting rights
or waiving voting rights
Special account for
repurchased shares among
N/A
the top 10 shareholders (if
any) (see note 10)
Shareholdings of the top 10 non-restricted shareholders (exclusive of shares lent in refinancing and locked shares of senior management)
Type of shares
Name of shareholder Number of non-restricted shares held by the end of the reporting period
Type Number
CNY
Luzhou Laojiao Group Co.
381088389 common 381088389
Ltd.shares
CNY
Luzhou XingLu Investment
365971142 common 365971142
Group Co. Ltd.shares
Bank of China Co. Ltd. –
CNY
Baijiu index classification
50835769 common 50835769
securities investment fund
shares
by China Merchants Fund
CNY
Hong Kong Securities
35913646 common 35913646
Clearing Company Limited
shares
CNY
China Securities Finance
33842059 common 33842059
Corporation Limited
shares
Bank of China Co. Ltd.－
CNY
Blue chip selected hybrid
22250000 common 22250000
securities investment fund
shares
by E Fund
CNY
Central Huijin Asset
13539862 common 13539862
Management Co. Ltd.shares
Industrial and Commercial
CNY
Bank of China Co. Ltd.-
12761135 common 12761135
Huatai-Pinebridge CSI 300
shares
Exchange-Traded Fund
Industrial and Commercial
CNY
Bank of China Co. Ltd.-
12550000 common 12550000
Newly growth hybrid
shares
securities investment fund
1092024 Annual Report of Luzhou Laojiao Co. Ltd.
by Invesco Great Wall
China Construction Bank
CNY
Corporation－Penghua Wine
10007720 common 10007720
& Liquor Exchange-Traded
shares
Fund
The statement of association
or acting-in-concert between
the top 10 shareholders of
unrestricted shares and
See the upper part of this table
between the top 10
shareholders of unrestricted
shares and top 10
shareholders
1. During the reporting period Bank of China Co. Ltd. – Baijiu index classification securities investment fund
by China Merchants Fund Industrial and Commercial Bank of China Co. Ltd.- Huatai-Pinebridge CSI 300
Top 10 common
Exchange-Traded Fund and China Construction Bank Corporation－Penghua Wine & Liquor Exchange-
shareholders participating in
Traded Fund among the Company’s top 10 common shareholders participated in securities refinancing with
securities margin trading (if
details in the table below.any) (see note 4)
2. Save as disclosed above as of the end of the reporting period no other top 10 common shareholders of
the Company participated in securities margin trading.
5% or greater shareholders top 10 shareholders and top 10 non-restricted shareholders involved in
refinancing shares lending
□ Applicable □ N/A
Unit: Share
5% or greater shareholders top 10 shareholders and top 10 non-restricted shareholders involved in refinancing
shares lending
Shares in the common Shares lent in Shares in the common Shares lent in
account and credit refinancing and not yet account and credit refinancing and not yet
Full name account at the period- returned at the period- account at the period- returned at the period-
of begin begin end end
sharehold
er As % of As % of As % of As % of Total Total Total Total
total share total share total share total share
shares shares shares shares
capital capital capital capital
Bank of
China Co.Ltd. –
Baijiu
index
classificati
43016975083576
on 2.92% 55000.00 0.00% 3.45% 0.00 0.00%
9.009.00
securities
investmen
t fund by
China
Merchants
Fund
Industrial
and
Commerci
5410535.1276113
al Bank of 0.37% 3700.00 0.00% 0.87% 0.00 0.00%
005.00
China Co.Ltd.-
Huatai-
1102024 Annual Report of Luzhou Laojiao Co. Ltd.
Pinebridg
e CSI 300
Exchange
-Traded
Fund
China
Constructi
on Bank
Corporatio
n－
7802949.181800.01000772
Penghua 0.53% 0.01% 0.68% 0.00 0.00%
0000.00
Wine &
Liquor
Exchange
-Traded
Fund
Changes in top 10 shareholders and top 10 non-restricted shareholders due to refinancing shares
lending/return compared with the prior period
□ Applicable □ N/A
Did any of the top 10 common shareholders or the top non-restricted common shareholders of the
Company conduct any promissory repurchase during the reporting period.□ Yes □ No
The top 10 non-restricted common shareholders the top 10 common shareholders did not conduct
any promissory repurchase during the reporting period.
3.2 Controlling shareholder
Nature of controlling shareholder：Local state-owned
Type of controlling shareholder：Corporation
Legal
Name of controlling
representative/Company Date of establishment Credibility code Main business scope
shareholder
principal
General project: Social
economy consulting
services; business
management consulting;
financial consulting;
business headquarters
management; import and
export agency; trade
Luzhou Laojiao Group
Liu Miao December 21 2000
Co. Ltd. 91510500723203346 brokerage; crops planting
services; trees planting
operation; elder care
services; tourism
development project
planning and consulting;
technical agency
services; engineering and
technological research
1112024 Annual Report of Luzhou Laojiao Co. Ltd.
and experimental
development; display
device manufacturing;
supply chain
management services;
technical services
technical development
technical consulting
technical communication
technical transfer and
technical promotion;
domestic freight transport
agency; equity fund-
invested asset
management services;
passenger ticket agent;
and business agency
service. It shall also
include licensed projects
(business activities can
be carried out legally and
independently with
business license in
addition to projects that
must be approved by
law): Agency
bookkeeping; career
intermediary activities;
food production; food
sales; and medical
services. (business
activities that require
approval in accordance
with laws can be carried
out upon approval of
relevant authorities and
the specific business
projects shall be subject
to the approval document
or license of relevant
departments)
1. As of June 30 2024 Laojiao Group holds 70406310 shares of Luzhou Xinglu Water (Group) Co. Ltd.
Shareholdings of the (02281.HK) accounting for 8.19% of the total issued shares.controlling shareholder in 2. As of September 30 2024 Laojiao Group holds 212954666 shares of Hongli Zhihui Group Co. Ltd.other controlled or non- (300219.SZ) through its wholly-owned subsidiary Golden Rudder accounting for 30.08% of the total issued
controlled listed shares.companies at home or 3. As of September 30 2024 Laojiao Group holds 475940143 shares of Huaxi Securities Co. Ltd.abroad during the (002926.SZ) accounting for 18.13% of the total issued shares.reporting period 4. As of June 30 2024 Laojiao Group holds 390528000 shares of Luzhou Bank (01983.HK) accounting for
14.37% of the total issued shares.
Change of the controlling shareholder during the reporting period
□ Applicable □ N/A
No such cases in the reporting period
1122024 Annual Report of Luzhou Laojiao Co. Ltd.
3.3 Actual controller and its persons acting in concert
Nature of actual controller：Local State-owned Assets Supervision and Administration Commission
Type of actual controller：Corporation
Legal
Name of actual controller representative/Company Date of establishment Credibility code Main business scope
principal
State-owned assets
supervision and
SASAC of Luzhou Zhang Xuebin March 1 2005 11510400771686813T
administration
department
1. As of June 30 2024 Luzhou XingLu Asset Management Co. Ltd. a controlled subsidiary of XingLu Group (a
controlled subsidiary of SASAC of Luzhou) holds 511654127 shares of Luzhou Xinglu Water (Group) Co. Ltd.
(02281.HK) accounting for 59.51% of the total issued shares. Luzhou Infrastructure Construction Investment
Co. Ltd. a holding subsidiary of XingLu Group holds 62709563 shares of Luzhou Xinglu Water (Group) Co.Ltd. (02281.HK) and accounting for 7.29% of the total issued shares. Laojiao Group a controlled subsidiary
under SASAC of Luzhou holds 70406310 shares of Luzhou Xinglu Water (Group) Co. Ltd. (02281.HK)
accounting for 8.19% of the total issued shares.
2. As of September 30 2024 Laojiao Group holds 212954666 shares of Hongli Zhihui Group Co. Ltd.
Share holdings of the
(300219.SZ) through its controlled subsidiary Golden Rudder accounting for 30.08% of the total shares issued.
controlling shareholder in
3. As of March 25 2025 Luzhou Industrial Investment Group Co. Ltd. a holding Company under the jurisdiction
other controlled or non-
of SASAC of Luzhou holds 195110310 shares of Sichuan Lutianhua Company Limited (000912.SZ)
controlled listed
accounting for 12.44% of the total shares issued. Lutianhua Group Company Limited a wholly-owned subsidiary
companies at home or
of Luzhou Industrial Investment Group Co. Ltd. holds 236550393 shares of Sichuan Lutianhua Company
abroad during the
Limited (000912.SZ) and accounting for 15.09% of the total issued shares.reporting period.
4. As of September 30 2024 Laojiao Group a controlled subsidiary under SASAC of Luzhou holds
475940143 shares of Huaxi Securities Co. Ltd. (002926.SZ) accounting for 18.13% of the total issued shares.
5. As of June 30 2024 Laojiao Group a controlled subsidiary under SASAC of Luzhou holds 390528000
shares of Luzhou Bank (01983.HK) accounting for 14.37% of the total issued shares. Luzhou State-Owned
Assets Management Co. Ltd. a controlled subsidiary under SASAC of Luzhou holds 173568000 shares of
Luzhou Bank (01983.HK) accounting for 6.39% of the total issued shares. XingLu Group a controlled subsidiary
under SASAC of Luzhou holds 62154702 shares of Luzhou Bank (01983.HK) accounting for 2.29% of the total
issued shares.Change of the actual controller during the reporting period
□ Applicable □ N/A
The actual controller of the Company has not changed during the reporting period.Ownership and control relations between the actual controller and the Company
1132024 Annual Report of Luzhou Laojiao Co. Ltd.
State-owned Assets Supervision and
Administration Commission of Luzhou
Luzhou Development Holdings
Group Co. Ltd.Luzhou Laojiao Luzhou XingLu Investment
Group Co. Ltd. Group Co. Ltd.Sichuan Golden Rudder
Investment Co. Ltd.Luzhou Laojiao
Co. Ltd.The actual controller control the company through a trust or other ways of assets management
□ Applicable □ N/A
3.4 Number of accumulative pledged shares held by the company’s controlling
shareholder or the largest shareholder as well as its acting-in-concert parties
accounts for 80% of all shares of the company held by them
□ Applicable □ N/A
3.5 Other corporate shareholders with a shareholding proportion over 10%
□ Applicable □ N/A
Legal
Name of corporate Date of Registered capital
representative/Comp Main business scope
shareholder establishment (CNY)
any principal
Investment and asset
Luzhou XingLu management; project
Investment Group Dai Zhiwei January 28 2003 4934049244 management
Co. Ltd. services; self-finance
real estate business
1142024 Annual Report of Luzhou Laojiao Co. Ltd.
activities; investment
advisory services
and financial
advisory services
(excluding such
financial activities as
illegal capital raising
and collecting public
funds) (business
activities that require
approval in
accordance with laws
can be carried out
upon approval of
relevant authorities)
3.6 Limits on reduction of the Company’s shares held by its controlling shareholder
actual controller restructuring party and other commitment entities.□ Applicable □ N/A
4. Specific implementation of share repurchase during the reporting
period
Implementation progress of shares repurchases
□ Applicable □ N/A
Implementation progress of share buyback reduction through centralized bidding
□ Applicable □ N/A
1152024 Annual Report of Luzhou Laojiao Co. Ltd.
Section VIII Preferred Shares
□ Applicable □ N/A
No preferred stock in the Company during the reporting period.Section IX Information about Bond
□ Applicable □ N/A
1. Enterprise bonds
□ Applicable □ N/A
No such cases in the reporting period.
2. Corporate bonds
□ Applicable □ N/A
2.1. Basic information about the corporate bond
Unit: CNY 10000
Way of
Issue Value Bond Interest Place of
Name Abbr. Code Due date redempti
date date balance rate trading
on
In terms
of the
bonds of
this
phase
interests
2020 will be
Public paid by
Offering year and
of the Shenzhe16 17 17
Corporat 20 Lao 149062. n Stock
March March March principal 150000 3.50%
e Bond Jiao 01 SZ Exchang2020 2020 2025 will be
for repaid in e
Qualified lump
Investors sum at
(Phase I) maturity.The
interests
will be
paid
once
every
1162024 Annual Report of Luzhou Laojiao Co. Ltd.
year and
the
interests
for the
last
installme
nt will be
paid
together
with the
principal.The bonds are applicable to eligible investors who have qualified securities
accounts with Shenzhen Branch of China Securities Depository and Clearing Co.Ltd. are permitted to engage in the subscription and transfer of corporate bonds
in accordance with the Management Measures for the Issue and Transaction
Appropriate arrangement of the
Management of Corporate Bonds Management Measures for the Suitability of
investors (if any)
Securities and Futures Investors Management Measures of Shenzhen Stock
Exchange for the Suitability of Securities Market Investors and relevant laws and
regulations and have the corresponding risk identification and bearing capacity
(excluding those prohibited by laws and regulations)
Trading systems applicable Tradable by way of bidding offering inquiry and agreement
Risk of termination of listing and
trading (if any) and N/A
countermeasures
Overdue bonds
□ Applicable □ N/A
2.2. Triggering and execution of issuer or investor option clauses and investor
protection clauses
□ Applicable □ N/A
2.3. Information about the intermediaries
Signature Contact person
Bond Intermediary Office address Contact number
accountant of intermediary
33rd Floor China
2020 Public
China World Office 2
Offering of
International No. 1
Corporate Bond
Capital Jianguomenwai (010)65051166
for Qualified N/A Qi Qin
Corporation Avenue
Investors (Phase
Limited. Chaoyang
I)
District Beijing
Building 6
2020 Public Galaxy SOHO
Offering of China Chengxin No.2 Nanzhugan
Corporate Bond International hutong
(027)87339288
for Qualified Credit Rating Chaoyangmenne N/A Liang Ziqiu
Investors (Phase Co. Ltd. i Avenue
I) Dongcheng
District Beijing
Indicate by tick mark whether above intermediaries changed in the reporting period
1172024 Annual Report of Luzhou Laojiao Co. Ltd.
□Yes □ No
2.4. List of the usage of the raised funds
Unit: CNY 10000
Whether
Actual
is
use of
consisten
raised
t with the
funds
Rectificati usage
(classifie Operation
Actual on of using
d by of special
Bond use of raised plan and
Bond Total Stated Amount purpose Unused account
abbreviati raised funds for other
code amount purpose spent excluding amount for raised
on funds by violation agreeme
temporar funds (if
purpose operation nts
y any)
(if any) stipulated
replenish
in the
ment of
raising
working
specificati
capital)
on
Used for Used for
the the
Technical Technical
The
Renovati Renovati
Company
on on
has set
Project of Project of
up a
Brewing Brewing
special
(Phase (Phase
account
II) the II) the
to deposit
Project of Project of
the funds
Intelligent Intelligent
raised
Upgradin Upgradin
and has
g and g and
signed a
Building Building
Used for fund
of the of the
the account
Informati Informati
constructi supervisi
20 on on
149062.S 136444. on and 21099.0 on
Laojiao 150000 Manage Manage None Yes
Z 23 operation 8 agreeme
01 ment ment
of nt to
System System
physical clarify it.the the
projects The
Project of Project of
special
Acquiring Acquiring
account
Sealing Sealing
for fund
Equipme Equipme
raising
nt for the nt for the
was
Cellar of Cellar of
operating
Huangyi Huangyi
normally
Brewing Brewing
during
Base Base
the
and the and the
reporting
Project of Project of
period.Acquiring Acquiring
Accessor Accessor
y y
1182024 Annual Report of Luzhou Laojiao Co. Ltd.
Equipme Equipme
nt for nt for
Leaven Leaven
Making Making
for for
Huangyi Huangyi
Brewing Brewing
Base Base
The raised funds were used for construction project
□ Applicable □ N/A
Whether the net
income of the
project during the
reporting period
has decreased
by more than
Whether there
50% compared Changes in the
were any major
with the project's net
changes in the
disclosure in the income and
Project progress project during the Project changes
Bond prospectus or impact on the
Bond code and operational reporting period and procedure
abbreviation whether other issuer's solvency
benefits that may affect implementation
major adverse and investors'
the investment
changes that equity and
and use plan of
may affect the countermeasures
the raised funds
project's
operating
efficiency have
occurred during
the reporting
periodSee “7.5. Use of
149062.SZ 20 Laojiao 01 funds raised” in No N/A No N/A
Section III
The Company changed the usage of above funds raised from bonds during the reporting period.□ Applicable □ N/A
2.5. Changes in credit ratings in the reporting period
□ Applicable □ N/A
2.6. Execution and changes with respect to guarantees repayment plans and other
repayment-ensuring measures in the reporting period as well as the impact on the
interests of bond holders
□ Applicable □ N/A
1192024 Annual Report of Luzhou Laojiao Co. Ltd.
3. Debt instruments as a non-financial enterprise
□ Applicable □ N/A
No such cases in the reporting period.
4. Convertible corporate bonds
□ Applicable □ N/A
No such cases in the reporting period.
5. Consolidated loss of the reporting period over 10% of net assets as at
the end of last year
□ Applicable □ N/A
6. Matured interest-bearing debt excluding bonds up the period-end
□ Applicable □ N/A
7. Whether there was any violation of rules and regulations during the
reporting period
□ Yes □ No
8. The major accounting data and the financial indicators of the recent
2 years of the company as of the end of the reporting period
Unit: CNY 10000
1202024 Annual Report of Luzhou Laojiao Co. Ltd.
Item December 31 2024 December 31 2023 Change
Current ratio 3.56 4.50 -20.89%
Debt/asset ratio 30.48% 34.38% -3.90%
Quick ratio 2.60 3.31 -21.45%
2024 2023 Change
Net profits before non-
1339951.471315039.281.89%
recurring gains and losses
EBITDA/debt ratio 201.87% 163.53% 38.34%
Interest cover (times) 60.60 37.49 61.64%
EBITDA-to-interest cover
63.3238.8762.90%
(times)
1212024 Annual Report of Luzhou Laojiao Co. Ltd.
Section X Financial Report
1. Auditor’s report
Type of audit report Standard without reserved opinion
Signing date of auditor’s report April 24 2025
Name of Audit ShineWing Certified Public Accountants
No. of auditor’s report XYZH/2025CDAA7B0258
Names of auditors He Jun Ouyang Lihua
Auditor’s Report
To the shareholders of Luzhou Laojiao Co. Ltd.:
Opinion
We have audited the financial statements of Luzhou Laojiao Co. Ltd. (hereinafter referred to as the
“Company”) which comprise the consolidated balance sheet and balance sheet as at December 31
2024 consolidated income statement and income statement consolidated cash flow statement and
cash flow statement consolidated statement of changes in owners' equity and statement of changes in
owners' equity for the year then ended; and notes to the financial statements.In our opinion the attached financial statements are prepared in all material respects in accordance
with Accounting Standards for Business Enterprises and present fairly the financial position of the
company as at December 31 2024 and its operating results and cash flow for the year then ended.Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”) for Certified Public
Accountants. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the Code of professional ethics for Certified Public Accountants in
China (“the Code”) and we have fulfilled our other ethical responsibilities in accordance with the Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in our
1222024 Annual Report of Luzhou Laojiao Co. Ltd.
audit of the consolidated financial statements of the current period. These matters were addressed in
the context of our audit of the consolidated financial statements as a whole and in forming our opinion
thereon and we do not provide a separate opinion on these matters.
1. Existence and completeness of cash and cash equivalents
Key audit matter Audit response
As of December 31 2024 the cash We performed the following audit procedures in response to the existence and
and cash equivalent balance of completeness of cash and cash equivalents:
Luzhou Laojiao was CNY 1. Understood tested and evaluated internal controls related to monetary fund
33578396800 accounting for management;
49.14% of total assets. Given the 2. Obtained a list of all bank accounts opened and compared it with Luzhou
significant balance and the large Laojiao’s accounting records to verify the completeness of bank accounts;
number of bank accounts the 3. Obtained bank statements and bank reconciliation statements conducted
security of deposits as well as the bank confirmations and controlled the confirmation process;
accuracy and completeness of 4. Performed inventory count procedures on time deposits and reviewed details
balances have a material impact on such as the holder of the time deposits;
the financial statements. Therefore 5. Obtained the enterprise credit report to examine whether there were any
we identified the existence and pledges mortgages or guarantees related to cash and cash equivalents;
completeness of cash and cash 6. Examined the accuracy and completeness of disclosures regarding cash and
equivalents as a key audit matter. cash equivalent balances and restrictions.Please refer to Item 5.1 under “5.Notes to the main items of theconsolidated financial statements” in
the notes to the financial statements.
2. Recognition of operating revenue
Key audit matter Audit response
Luzhou Laojiao’s operating revenue We performed the following key audit procedures in relation to the recognition of
for 2024 amounted to CNY operating revenue:
31196248200 which was the main 1. Understood tested and evaluated the design and implementation
source of the Company’s operating effectiveness of internal controls over the sales and collection cycle;
profit and a key performance 2. Inspected a sample of sales contracts to identify rights and obligations
indicator. Therefore we identified evaluated the timing of performance obligations and assessed whether
revenue recognition as a key audit management’s judgments regarding the transfer of control complied with the
matter. Please refer to Item 3.31 Accounting Standards for Business Enterprises and the Company’s accountingunder “3. Significant accounting policies;policies and accounting estimates” 3. Performed analytical review procedures comparing current year salesand Item 5.38 under “5. Notes to the volume unit price gross margin and key customer metrics with prior-year datamain items of the consolidated to identify significant changes and assess their reasonableness;financial statements” in the notes to 4. Performed substantive testing on a sample of recorded operating revenue
the financial statements. transactions for the year inspecting supporting documents such as sales
contracts or orders warehouse dispatch orders delivery notes customer
acknowledgments sales invoices and reconciliation statements to assess the
authenticity and accuracy of revenue recognition;
5. Selected samples of sales transactions occurring near year-end and
inspected relevant supporting documents (including delivery notes or
documents confirming customer receipt) to evaluate whether revenue was
recognized in the appropriate accounting period;
6. In conjunction with contract liability audits conducted confirmation
procedures with a sample of major distributors to confirm revenue amounts and
contract liability balances validating the authenticity and accuracy of revenue
recognized by management;
7. Performed site visits to a sample of major distributors.
Other information
The directors of the Company are responsible for the other information. The other information
comprises the information included in the annual report but does not include the financial statements
and our auditor’s report thereon.
1232024 Annual Report of Luzhou Laojiao Co. Ltd.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the work we have performed we conclude that there is a material misstatement of this
other information we are required to report that fact. We have nothing to report in this regard.Responsibilities of directors and those charged with governance for the financial statements
The directors of the Company are responsible for the preparation of the financial statements that give a
true and fair view in accordance with the disclosure requirements of Accounting Standards for Business
Enterprises and designing implementing and maintaining internal control that is necessary to ensure
the financial statements are free from material misstatement whether due to fraud or error.In preparing the financial statements the directors are responsible for assessing the Company’s ability
to continue as a going concern disclosing as applicable matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the
aggregate they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgment and maintain
1242024 Annual Report of Luzhou Laojiao Co. Ltd.
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error as fraud may
involve collusion forgery intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
(4) Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and
based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or if such disclosures are inadequate to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However future events or conditions may cause the Company to cease to continue as a going
concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction supervision and performance of the group audit. We remain solely
responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide the governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and where applicable related
safeguards.
1252024 Annual Report of Luzhou Laojiao Co. Ltd.
From the matters communicated with the governance we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when in extremely rare circumstances we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.ShineWing Certified Public Accountants Chinese CPA: He Jun
(Engagement Partner)
Beijing China Chinese CPA: Ouyang Lihua
April 24 2025
2. Financial statements
Monetary unit for the financial statements and the notes thereto: CNY
Prepared by: Luzhou Laojiao Co. Ltd.Consolidated balance sheet
As at December 31 2024
Unit: CNY
Item Balance as at December 31 2024 Balance as at January 1 2024
Current assets:
Cash and cash equivalents 33578396831.33 25952025091.28
Settlement reserves
Lending funds
Held-for-trading financial assets 1694282295.97 1426992098.83
Derivative financial assets
Notes receivables
Accounts receivables 11022302.31 17461378.98
Accounts receivables financing 1801947455.78 5938171007.93
Prepayment 123870282.65 202309186.70
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 13053645.00 22716893.12
Including：Interests receivable
Dividends receivable
1262024 Annual Report of Luzhou Laojiao Co. Ltd.
Buying back the sale of financial
assets
Inventories 13392794475.96 11622043947.46
Including：Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 241081908.89 176684731.97
Total current assets 50856449197.89 45358404336.27
Non-current assets:
Disbursement of loans and advances
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2801252317.93 2708254833.50
Investments in other equity
407194706.55402893468.80
instruments
Other non-current financial assets
Investment property 50246694.16 37785416.77
Fixed assets 9131776915.51 8613223465.46
Construction in progress 807233988.90 1718468880.53
Productive biological assets
Oil and gas assets
Use right assets 29254214.23 23260955.23
Intangible assets 3417898796.19 3397873791.08
Including：Data resources
Development expenses
Including：Data resources
Goodwill
Long-term deferred expenses 1756272.03 960005.91
Deferred tax assets 424185093.04 674429617.92
Other non-current assets 407347368.15 358900430.13
Total non-current assets 17478146366.69 17936050865.33
Total assets 68334595564.58 63294455201.60
Current liabilities:
Short-term loans
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities 9763.87
Derivative financial liabilities
Notes payable
Accounts payable 1844497206.78 2357223733.21
Advance from customer
Contract liabilities 3978131528.88 2672977090.30
Financial assets sold for repurchase
Deposits from customers and inter-
bank
1272024 Annual Report of Luzhou Laojiao Co. Ltd.
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee benefits payable 553580768.99 523866711.41
Taxes payable 3233948597.08 2939627533.00
Other payable 873595429.08 1150721162.53
Including：Interests payable
Dividends payable 29668290.20 29684819.82
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
3276628616.7478918152.41
year
Other current liabilities 516729820.48 347485071.57
Total current liabilities 14277111968.03 10070829218.30
Non-current liabilities:
Insurance contract reserves
Long-term loans 6279900000.00 10000300000.00
Bonds payable 1498716737.02
Including：Preferred shares
Perpetual bonds
Lease liabilities 24528519.13 22356404.47
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 86672726.83 27772083.74
Deferred tax liabilities 158375714.88 142773028.22
Other non-current liabilities
Total non-current liabilities 6549476960.84 11691918253.45
Total liabilities 20826588928.87 21762747471.75
Owners' equity
Share capital 1471951503.00 1471987769.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 5365763566.55 5185481523.22
Less: treasury stock 345699443.89 616743610.59
Other comprehensive income 84235115.38 63130469.51
Special reserves
Surplus reserves 1471951503.00 1471987769.00
General risk reserve
Undistributed profits 39340298309.42 33815566574.75
Total equity attributable to owners of
47388500553.4641391410494.89
the parent company
Non-controlling interests 119506082.25 140297234.96
Total owners' equity 47508006635.71 41531707729.85
Total liabilities and owners' equity 68334595564.58 63294455201.60
1282024 Annual Report of Luzhou Laojiao Co. Ltd.
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Song Ying
Balance sheet of parent company
As at December 31 2024
Unit: CNY
Item Balance as at December 31 2024 Balance as at January 1 2024
Current assets:
Cash and cash equivalents 26651132665.66 24271855815.25
Held-for-trading financial assets 1694282295.97 1426992098.83
Derivative financial assets
Notes receivables
Accounts receivables 14701.83
Accounts receivables financing
Prepayment 12888111.51 6360210.40
Other receivables 14619833493.32 14844650322.98
Including：Interests receivable
Dividends receivable
Inventories 898380.40 1051717.53
Including：Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 172283759.93 108073731.77
Total current assets 43151333408.62 40658983896.76
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 6735926560.88 6494866955.20
Investments in other equity
406890784.92402589547.17
instruments
Other non-current financial assets
Investment property 50246694.16 37785416.77
Fixed assets 866342467.75 950099737.28
Construction in progress 174069734.13 57369565.37
Productive biological assets
Oil and gas assets
Use right assets 118384.41 316259.61
Intangible assets 770645637.66 781194544.01
Including：Data resources
Development expenses
Including：Data resources
Goodwill
1292024 Annual Report of Luzhou Laojiao Co. Ltd.
Long-term deferred expenses 341637.85 820758.81
Deferred tax assets 124327561.74 154645014.28
Other non-current assets 215109132.46 200783195.94
Total non-current assets 9344018595.96 9080470994.44
Total assets 52495352004.58 49739454891.20
Current liabilities:
Short-term loans
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 36143495.43 19666554.15
Advance from customer
Contract liabilities 3354639.36 2230734.50
Employee benefits payable 175075638.37 163823844.30
Taxes payable 94520857.23 204018131.83
Other payables 2980878449.35 1960371090.55
Including：Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
3266940267.7274018942.63
year
Other current liabilities 436103.12 289995.48
Total current liabilities 6557349450.58 2424419293.44
Non-current liabilities:
Long-term loans 6279900000.00 10000300000.00
Bonds payable 1498716737.02
Including：Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payables
Accrued liabilities
Deferred income 8714300.00
Deferred tax liabilities 82430689.59 72592887.99
Other non-current liabilities
Total non-current liabilities 6371044989.59 11571609625.01
Total liabilities 12928394440.17 13996028918.45
Owners' equity
Share capital 1471951503.00 1471987769.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 5361333958.25 5179307881.60
Less: treasury stock 345699443.89 616743610.59
Other comprehensive income 80803192.66 60513567.32
Special reserves
Surplus reserves 1471951503.00 1471987769.00
1302024 Annual Report of Luzhou Laojiao Co. Ltd.
Undistributed profits 31526616851.39 28176372596.42
Total owners' equity 39566957564.41 35743425972.75
Total liabilities and owners' equity 52495352004.58 49739454891.20
Consolidated income statement
Unit: CNY
Item Year 2024 Year 2023
1. Total operating revenue 31196248208.33 30233301388.26
Including: Operating revenue 31196248208.33 30233301388.26
Interest income
Earned premium
Fee and commission
income
2. Total operating costs 13053488597.44 12638987548.90
Including: Cost of sales 3888116183.93 3537151403.15
Interest expense
Handling charges and
commission expenses
Refunded premiums
Net payments for
insurance claims
Net provision for
insurance contracts
Bond insurance expense
Reinsurance Expenses
Taxes and surcharges 4753755581.18 4133126350.68
Selling and distribution
3538382615.993974425526.92
expenses
General and administrative
1100779964.561139480677.23
expenses
Research and
260975311.10225955797.33
Development expenses
Financial expenses -488521059.32 -371152206.41
Including：Interest
305448236.36488003010.93
expenses
Interest income 797923434.30 864006165.58
Plus: Other income 43752551.73 54179605.39
Investment income ("-" for
-9892859.8084724581.98
losses)
Including: income from
investment in associates and joint 106578492.71 66927156.69
ventures
Income from the
derecognition of financial assets
measured at amortized cost (“-” for
losses)
Foreign exchange gains ("-"
for losses)
Net gain on exposure hedges
1312024 Annual Report of Luzhou Laojiao Co. Ltd.
(“-” for losses)
Gains from the changes in fair
27538639.6062988462.30values(“-“ for losses)Credit impairment losses (“-”
1632237.61932241.70
for losses)Impairment losses(“-“ forlosses)
Gains from disposal of
1058750.2244694238.37
assets("-" for losses)
3. Operating profits ("-" for losses) 18206848930.25 17841832969.10
Plus: non-operating income 24229862.26 36203863.17
Less: non-operating expenses 25779973.47 72079275.83
4. Total profits before tax ("-" for
18205298819.0417805957556.44
total losses)
Less: income tax expenses 4707520248.15 4517297533.23
5. Net profit ("-" for net loss) 13497778570.89 13288660023.21
5.1 By operating continuity
5.1.1 Net profit from continuing
13497778570.8913288660023.21
operation ("-" for losses)
5.1.2 Net profit from discontinued
operation ("-" for losses)
5.2 By ownership
1) Attributable to shareholders of the
13472986476.0113246394700.59
parent company
2) Attributable to non-controlling
24792094.8842265322.62
interests
6. Net of tax from other
21861927.17-267285844.76
comprehensive income
Net of tax from other comprehensive
income to the owner of the parent 21195697.36 -267620776.33
company
6.1 Other comprehensive income
that cannot be reclassified into the 3388621.68 -270029977.35
profit and loss:
1) Remeasure the variation of net
indebtedness or net asset of defined
benefit plans
2) Share in other comprehensive
income that cannot be classified into 162693.33 106537.86
profit and loss under equity method
3) Changes in fair value of
investments in other equity 3225928.35 -270136515.21
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
6.2 Other comprehensive income
that will be reclassified into the profit 17807075.68 2409201.02
and loss
1) Share in other comprehensive
income that will be classified into 16992055.15 2000549.31
profit and loss under equity method
2) Changes in fair value of
investments in other debt obligations
3) Other comprehensive income
1322024 Annual Report of Luzhou Laojiao Co. Ltd.
arising from the reclassification of
financial assets
4) Allowance for credit impairments in
investments in other debt obligations
5) Reserve for cash-flow hedge
6) Balance arising from the
translation of foreign currency 815020.53 408651.71
financial statements
7) Others
Net of tax from other comprehensive
666229.81334931.57
income to non-controlling interests
7. Total comprehensive income 13519640498.06 13021374178.45
Total comprehensive income
attributable to owners of the parent 13494182173.37 12978773924.26
company
Total comprehensive income
attributable to non-controlling 25458324.69 42600254.19
interests
8. Earnings per share
(1) Basic earnings per share 9.18 9.02
(2) Diluted earnings per share 9.18 9.02
Legal representative：Liu Miao
Person in charge of accounting affairs：Xie Hong
Person in charge of accounting department：Song Ying
Income statement of parent company
Unit: CNY
Item Year 2024 Year 2023
1. Operating revenue 11090969698.38 9145460581.25
Less: Cost of sales 8454312608.86 6915061972.96
Taxes and surcharges 74473268.61 69667975.44
Selling and distribution
expenses
General and administrative
929395807.24955055338.48
expenses
Research and Development
109645034.1093610992.94
expenses
Financial expenses -458345168.33 -523148275.90
Including：Interest expenses 304323204.07 344865497.27
Interest income 766784421.39 872919941.62
Plus: Other income 14051099.41 20117651.96
Investment income ("-" for
9846935832.269964009506.49
losses)
Including: income from
investment in associates and joint 74877362.33 43134582.17
ventures
Income from the
derecognition of financial assets at
amortized cost (“-” for losses)
1332024 Annual Report of Luzhou Laojiao Co. Ltd.
Net gain on exposure hedges
(“-” for losses)
Gains from the changes in fair
27528769.0060959140.61values(“-“ for losses)Credit impairment losses (“-” for
287004.41630355.40
losses)
Asset impairment losses (“-” for
losses)
Gains from disposal of assets("-"
1177426.7644029637.89
for losses)
2. Operating profits ("-" for losses) 11871468279.74 11724958869.68
Plus: non-operating income 17436206.22 26553752.25
Less: non-operating expenses 20162234.74 24214208.31
3. Total profits before tax ("-" for
11868742251.2211727298413.62
total losses)
Less: income tax expenses 570243254.91 479471279.32
4. Net profit ("-" for net loss) 11298498996.31 11247827134.30
4.1 Net profit from continuing
11298498996.3111247827134.30
operation ("-" for losses)
4.2 Net profit from discontinued
operation ("-" for losses)
5. Net of tax from other
20380676.83-268029428.04
comprehensive income
5.1 Other comprehensive income
that cannot be reclassified into the 3388621.68 -270029977.35
profit and loss:
1) Remeasure the variation of net
indebtedness or net asset of defined
benefit plans
2) Share in other comprehensive
income that cannot be classified into 162693.33 106537.86
profit and loss under equity method
3) Changes in fair value of
investments in other equity 3225928.35 -270136515.21
instruments
4) Changes in fair value of the
company’s credit risks
5) Other
5.2 Other comprehensive income
that will be reclassified into the profit 16992055.15 2000549.31
and loss
1) Share in other comprehensive
income that will be classified into 16992055.15 2000549.31
profit and loss under equity method
2) Changes in fair value of
investments in other debt obligations
3) Other comprehensive income
arising from the reclassification of
financial assets
4) Allowance for credit impairments in
investments in other debt obligations
5) Reserve for cash-flow hedge
6) Balance arising from the
translation of foreign currency
financial statements
1342024 Annual Report of Luzhou Laojiao Co. Ltd.
7) Others
6. Total comprehensive income 11318879673.14 10979797706.26
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
Consolidated statement of cash flows
Unit: CNY
Item Year 2024 Year 2023
1. Cash flows from operating
activities
Cash received from sale of goods
40036206060.6631589430458.52
and rendering of services
Net increase in customer bank
deposits and placement from banks
and other financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received from original
insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interest handling
charges and commissions
Net increase in placements from
other financial institutions
Net capital increase in repurchase
business
Net cash received from customer
brokerage deposits
Refunds of taxes and surcharges 8746142.49 4311439.27
Cash received from other operating
969333056.821271444860.82
activities
Subtotal of cash inflows from
41014285259.9732865186758.61
operating activities
Cash paid for goods purchased and
5963558109.596584743337.24
services received
Net increase in loans and advances
to customers
Net increase in deposits in central
bank and other banks and financial
institutions
Cash paid for original insurance
contract claims
Net increase in lending funds
Cash paid for interests handling
1352024 Annual Report of Luzhou Laojiao Co. Ltd.
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
1313523728.571291700762.53
employees
Cash paid for taxes and surcharges 12329320329.48 11873473704.94
Cash paid for other operating
2226114728.682466904018.44
activities
Subtotal of cash outflows from
21832516896.3222216821823.15
operating activities
Net cash flows from operating
19181768363.6510648364935.46
activities
2. Cash flows from investing
activities
Cash received from disposal of
2190773011.551806849496.56
investments
Cash received from returns on
75373409.8057070473.44
investments
Net cash received from disposal of
fixed assets intangible assets and 11432852.36 69684519.48
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
2277579273.711933604489.48
investing activities
Cash paid to acquire and construct
fixed assets intangible assets and 1188370866.64 1501625135.45
other long-term assets
Cash paid for investments 2471700000.00 1700000000.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
14339.6297207.03
activities
Subtotal of cash outflows from
3660085206.263201722342.48
investing activities
Net cash flows from investing
-1382505932.55-1268117853.00
activities
3. Cash flows from financing
activities
Cash received from investors 79496.11 10373039.14
Including: cash received by
subsidiaries from investments by 79496.11 2082314.40
minority shareholders
Cash received from borrowings 2000000000.00 6850000000.00
Cash received from other financing
activities
Subtotal of cash inflows from
2000079496.116860373039.14
financing activities
Cash paid for debt repayments 4025200000.00 1524700000.00
Cash paid for distribution of
dividends and profits or payment of 8283493371.53 6546495859.54
interest
Including: dividends and profits paid 29684819.82 16594850.59
1362024 Annual Report of Luzhou Laojiao Co. Ltd.
to minority shareholders by
subsidiaries
Cash paid for other financing
20239162.267603247.89
activities
Subtotal of cash outflows from
12328932533.798078799107.43
financing activities
Net cash flows from financing
-10328853037.68-1218426068.29
activities
4. Effect of fluctuation in exchange
4229343.182201671.82
rate on cash and cash equivalents
5. Net increase in cash and cash
7474638736.608164022685.99
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 25893029277.86 17729006591.87
period
6. Balance of cash and cash
equivalents at the end of the 33367668014.46 25893029277.86
period
Cash flow statements of parent company
Unit: CNY
Item Year 2024 Year 2023
1. Cash flows from operating
activities
Cash received from sale of goods
12533904242.209465106131.52
and rendering of services
Refunds of taxes and surcharges
Cash received from other operating
839554176.00883796732.00
activities
Subtotal of cash inflows from
13373458418.2010348902863.52
operating activities
Cash paid for goods purchased and
8190445319.947055302497.34
services received
Cash paid to and on behalf of
456045492.39459785090.92
employees
Cash paid for taxes and surcharges 1111830751.18 1081990787.32
Cash paid for other operating
446783054.68344059510.02
activities
Subtotal of cash outflows from
10205104618.198941137885.60
operating activities
Net cash flows from operating
3168353800.011407764977.92
activities
2. Cash flows from investing
activities
Cash received from disposal of
2190773011.551725428067.29
investments
Cash received from returns on
9836384328.889960472292.73
investments
Net cash received from disposal of
fixed assets intangible assets and 10363496.03 57611113.20
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
1372024 Annual Report of Luzhou Laojiao Co. Ltd.
activities
Subtotal of cash inflows from
12037520836.4611743511473.22
investing activities
Cash paid to acquire and construct
fixed assets intangible assets and 212817179.55 440672744.69
other long-term assets
Cash paid for investments 2460000000.00 1720000000.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows from
2672817179.552160672744.69
investing activities
Net cash flows from investing
9364703656.919582838728.53
activities
3. Cash flows from financing
activities
Cash received from investors 8290724.74
Cash received from loans 2000000000.00 6850000000.00
Cash received from other financing
28533781.29
activities
Subtotal of cash inflows from
2000000000.006886824506.03
financing activities
Cash paid for debt repayments 4025200000.00 1524700000.00
Cash paid for distribution of
dividends and profits or payment of 8253808551.71 6542888426.79
interest
Cash paid for other financing
3253410.812576358468.60
activities
Subtotal of cash outflows from
12282261962.5210643946895.39
financing activities
Net cash flows from financing
-10282261962.52-3757122389.36
activities
4. Effect of fluctuation in exchange
327855.29102691.83
rate on cash and cash equivalents
5. Net increase in cash and cash
2251123349.697233584008.92
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 24225475946.42 16991891937.50
period
6. Balance of cash and cash
equivalents at the end of the 26476599296.11 24225475946.42
period
Consolidated statement of changes in owners' equity
For the year ended December 31 2024
Unit: CNY
Year 2024
Equity attributable to owners of the parent company Non-
Total
Other equity Less Gene contr
Item Shar Othe owneinstruments Capit Spec Surpl Undi： r ral olline al ial us strib Othe Subt rs' g
capit Prefe reser Trea Com
risk equit
Perp Othe reser reser uted r otal
rred sury preh reser
inter
al y etual r ve ve ve profit ests
stoc stoc ensiv ve
1382024 Annual Report of Luzhou Laojiao Co. Ltd.
k bond k e
Inco
me
1.
Bala
nce 1471 5185 1471 3381 4139 4153
as at 6167 6313 1402
987481987556614101707
Dece 4361 0469 9723
mber 769.0 523.2 769.0 574. 494. 729.
0.59.514.96
31 of 0 2 0 75 89 85
last
year
Plus:
adjus
tment
s for
chan
ges
in
acco
untin
g
polici
es
Adjus
tment
s for
corre
ction
of
acco
untin
g
error
s in
prior
year
Other
s
2.
Bala
nce
as at 1471 5185 1471 3381 4139 4153
Janu 6167 6313 1402
987481987556614101707
ary 1 4361 0469 9723
of 769.0 523.2 769.0 574. 494. 729.
0.59.514.96
the 0 2 0 75 89 85
curre
nt
year
3.Inc
reas
es/de
crea
ses
in - 5524 5997 - 5976
the - 1802 2110 -
27107310902079298
curre 3626 8204 4645 3626
nt 4416 734.6 058.5 1152 905.8
6.003.33.876.00
perio 6.70 7 7 .71 6
d (“-”
for
decr
ease
s)
(1)
Total 1347 1349 1351
comp 2119 2545
298641829640
rehen 5697 8324
sive 476. 173. 498..36.69
inco 01 37 06
me
(2)-1802-4512-4347
Capit
362682042710899416580875
al
contri 6.00 3.33 4416 4.03 1187 6.84
1392024 Annual Report of Luzhou Laojiao Co. Ltd.
buted 6.70 .19
or
reduc
ed by
owne
rs
Capit
al - -
contri - 2436 2437
332524707960
butio 3626 5174 3134
ns by 954. 1396 4.28
6.002.336.61
owne 86 3.19
rs
Capit
al
contri
butio
ns by
other
equit
y
instru
ment
s
holde
rs
Amo
unts
of
share
-
base
-
d 1836 2076 1744 2093
paym 2403
ents 0799 3820 033. 82230203
recog 8.19 1.70 28 4.98
nized .51
in
owne
rs'
equit
y
--
Other 1840 1840
s 4824 4824.75.75
---
(3)-
Profit - 7948 7948 7978
2966
distri 3626 345 382 050
butio 8290
6.00792.8058.8349.0
n .21
334
Withd
rawal
of -
3626
surpl 3626
us 6.00
6.00
reser
ves
Withd
rawal
of
gener
al
risk
reser
ve
Profit
distri - - -
-
buted 7948 7948 7978
to 2966
382382050
owne 8290
rs (or 058.8 058.8 349.0
share .21 3 3 4
holde
1402024 Annual Report of Luzhou Laojiao Co. Ltd.
rs)
Other
s
(4)
Intern
al
carry- -
forwa 9105
rd of 9105 1.49
owne 1.49
rs'
equit
y
Conv
ersio
n of
capit
al
reser
ves
into
paid-
in
capit
al
Conv
ersio
n of
surpl
us
reser
ves
into
paid-
in
capit
al
Surpl
us
reser
ves
offset
ting
losse
s
Carry
-
forwa
rd of
retain
ed
earni
ngs
from
chan
ges
in
defin
ed
benef
it
plans
Carry
-
forwa
rd of
retain
ed
earni -
9105
ngs 9105
from 1.49
1.49
other
comp
rehen
sive
inco
me
1412024 Annual Report of Luzhou Laojiao Co. Ltd.
Other
s
(5)
Speci
al
reser
ves
Withd
rawal
for
the
perio
d
Use
for
the
perio
d
(6)
Other
s
4.
Bala
nce
as at 1471 5365 1471 3934 4738 4750
Dece 3456 8423 1195
951763951029885008006
mber 9944 5115 0608
31 of 503.0 566.5 503.0 309. 553. 635.
3.89.382.25
the 0 5 0 42 46 71
curre
nt
year
For the year ended December 31 2023
Unit: CNY
Year 2023
Equity attributable to owners of the parent company
Other equity Othe Non-
instruments Less r Total
Gene contr
Item Shar Capit ： Com Spec Surpl Undi owne
ral ollin
e Prefe al Trea preh ial us strib Othe Subt
rs'
risk g
capit Perp equitrred Othe reser sury ensiv reser reser uted r otal
etual reser
inter
al ve stoc e ve ve profit y stoc r ests
bond ve
k k Inco
me
1.
Bala
nce 1471 4800 1471 2677 3420 3432
as at 6390 3307 1209
895154895219778718794
Dece 2199 5124 2380
mber 100.0 468.9 100.0 213. 130. 936.
8.785.846.61
31 of 0 9 0 98 03 64
last
year
Plus:
adjus
tment
s for
chan
ges
in
acco
untin
g
polici
es
Adjus
tment
s for
corre
ction
of
1422024 Annual Report of Luzhou Laojiao Co. Ltd.
acco
untin
g
error
s in
prior
year
Other
s
2.
Bala
nce
as at 1471 4800 1471 2677 3420 3432
Janu 6390 3307 1209
895154895219778718794
ary 1 2199 5124 2380
of 100.0 468.9 100.0 213. 130. 936.
8.785.846.61
the 0 9 0 98 03 64
curre
nt
year
3.Inc
reas
es/de
crea
ses
in - - 7043 7183 7202
the 3853 1937
9266222726769266369539912
curre 2705 3428
nt 9.00 8388 2077 9.00 360.7 364.8 793.2
4.23.35
perio .19 6.33 7 6 1
d (“-”
for
decr
ease
s)
(1)
Total - 1324 1299 1303
comp 4260
2514639449897589
rehen 0254
sive 0512 700. 577. 831..19
inco 3.12 59 47 66
me
(2)
Capit
al
-
contri 3850 4074 6457 4139
buted 9266 2227
or 9922 7028 993. 28279.00 8388
reduc 8.22 5.41 99 9.40
ed by .19
owne
rs
Capit
al
contri 8198 8290 2082 2082
9266
butio 055. 724. 314. 314.ns by 9.00
74744040
owne
rs
Capit
al
contri
butio
ns by
other
equit
y
instru
ment
s
holde
rs
Amo 3769 - 4074 4375 4118
unts
011730567028679.4596
of
share 2.48 9112 5.41 59 5.00
1432024 Annual Report of Luzhou Laojiao Co. Ltd.
-.93
base
d
paym
ents
recog
nized
in
owne
rs'
equit
y
Other
s
---
(3)-
Profit 6219 6219 6248
92662968
distri 240 148 833
butio 9.00 4819
993.0324.0143.8
n .83
336
Withd
rawal
of -
9266
surpl 9266
us 9.00
9.00
reser
ves
Withd
rawal
of
gener
al
risk
reser
ve
Profit
distri - - -
buted -
to 6219 6219 6248
2968
owne 148 148 833
rs (or 4819
324.0324.0143.8
share .83
holde 3 3 6
rs)
Other
s
(4)
Intern
al
-
carry- 1621
forwa 1621
rd of 5653 5653
owne .21
rs' .21
equit
y
Conv
ersio
n of
capit
al
reser
ves
into
paid-
in
capit
al
Conv
ersio
n of
surpl
us
reser
ves
1442024 Annual Report of Luzhou Laojiao Co. Ltd.
into
paid-
in
capit
al
Surpl
us
reser
ves
offset
ting
losse
s
Carry
-
forwa
rd of
retain
ed
earni
ngs
from
chan
ges
in
defin
ed
benef
it
plans
Carry
-
forwa
rd of
retain
ed -
earni 1621
1621
ngs 5653
from 5653.21
other .21
comp
rehen
sive
inco
me
Other
s
(5)
Speci
al
reser
ves
Withd
rawal
for
the
perio
d
Use
for
the
perio
d
(6)
227822782278
Other
s 26.01 26.01 26.01
4.
Bala
nce
147151851471338141394153
as at 6167 6313 1402
Dece 987 481 987 5566 1410 1707
436104699723
mber 769.0 523.2 769.0 574. 494. 729.
31 of 0.59 .51 4.96
the 0 2 0 75 89 85
curre
nt
1452024 Annual Report of Luzhou Laojiao Co. Ltd.
year
Statement of changes in owners' equity of parent company
For the year ended December 31 2024
Unit: CNY
Year 2024
Other equity instruments Other
Less： Compr Specia Surplu
Item Capital Undistr Total Share Preferr Perpet Treasu ehensi l s reserv ibuted Other owners
capital ed ual Other ry ve reserv reserve profit ' equity
stock bond stock Incom e e
e
1.
Balanc
e as at 14719 51793 61674 14719 28176 35743
60513
Decem 87769. 07881. 3610.5 87769. 37259 42597
ber 31 567.32
00609006.422.75
of last
year
Plus:
adjust
ments
for
change
s in
accoun
ting
policies
Adjust
ments
for
correcti
on of
accoun
ting
errors
in prior
year
Others
2.
Balanc
e as at 14719 51793 61674 14719 28176 35743
Januar 60513
y 1 of 87769. 07881. 3610.5 87769. 37259 42597567.32
the 00 60 9 00 6.42 2.75
current
year
3.Incre
ases/d
ecreas
-
es in - 18202 - 33502 38235
the 27104 20289
current 36266. 6076.6 36266. 44254. 31591.4166.7 625.34
period 00 5 00 97 66
(“-” for 0
decrea
ses)
(1)
Other 11298 11318
20380
compre 49899 87967
hensive 676.83
6.313.14
income
(2)-18202-45303
Capital
contrib 36266. 6076.6 27104 3977.3
1462024 Annual Report of Luzhou Laojiao Co. Ltd.
uted or 00 5 4166.7 5
reduce
d by 0
owners
Capital -
contrib - - 24349
24685
utions 36266. 33259 2906.5
by 5127.4
0054.868
owners 4
Capital
contrib
utions
by
other
equity
instrum
ents
holders
Amount
s of
share-
based 18535 - 20954
payme
nts 2031.5 24189 1070.7
recogni 1 039.26 7
zed in
owners'
equity
Others
--
(3)-
Profit 79483 79483
distribu 36266. 45792. 82058.tion 00
8383
Withdra
wal of -
36266.
surplus 36266.reserve 00
00
s
Profit
distribu - -
ted to
7948379483
owners
(or 82058. 82058.shareh 83 83
olders)
Others
(4)
Internal
carry- -
91051.
forward 91051.of 49
49
owners'
equity
Conver
sion of
capital
reserve
s into
paid-in
capital
Conver
sion of
surplus
reserve
s into
paid-in
capital
Surplus
reserve
s
offsetti
ng
losses
1472024 Annual Report of Luzhou Laojiao Co. Ltd.
Carry-
forward
of
retaine
d
earning
s from
change
s in
defined
benefit
plans
Carry-
forward
of
retaine
d -
91051.
earning 91051.s from 49
49
other
compre
hensive
income
Others
(5)
Special
reserve
s
Withdra
wal for
the
period
Use for
the
period
(6)
Others
4.
Balanc
e as at 14719 53613 34569 14719 31526 39566
Decem 80803
ber 31 51503. 33958. 9443.8 51503. 61685 95756192.66
of the 00 25 9 00 1.39 4.41
current
year
For the year ended December 31 2023
Unit: CNY
Year 2023
Other equity instruments Other
Less： Compr Specia Surplu
Item Capital Undistr Total Share Preferr Perpet Treasu ehensi l s reserv ibuted Other owners
capital ed ual Other ry ve reserv reserve profit ' equity
stock bond stock Incom e e
e
1.
Balanc
e as at 14718 47896 63902 32854 14718 23131 30554
Decem 95100. 03151. 1998.7 2995.3 95100. 57080 48515
ber 31
006586001.940.17
of last
year
Plus:
adjust
ments
for
change
s in
accoun
ting
policies
1482024 Annual Report of Luzhou Laojiao Co. Ltd.
Adjust
ments
for
correcti
on of
accoun
ting
errors
in prior
year
Others
2.
Balanc
e as at 14718 47896 63902 32854 14718 23131 30554
Januar
y 1 of 95100. 03151. 1998.7 2995.3 95100. 57080 48515
the 00 65 8 6 00 1.94 0.17
current
year
3.Incre
ases/d
ecreas
-
es in 38970 - 50448 51889
the 92669. 26802 92669.current 4729.9 22278 01794. 40822.00 9428.0 00
period 5 388.19 48 58
(“-” for 4
decrea
ses)
(1)-
Other 11247 10996
25181
compre 82713 01335
hensive 3774.8
4.309.47
income 3
(2)
Capital
contrib 38947 - 41184
92669.
uted or 6903.9 22278 7961.1
reduce 00
4388.193
d by
owners
Capital
contrib
92669.8198082907
utions
by 00 55.74 24.74
owners
Capital
contrib
utions
by
other
equity
instrum
ents
holders
Amount
s of
share-
based 38127 - 41184
payme
nts 8848.2 30569 7961.1
recogni 0 112.93 3
zed in
owners'
equity
Others
--
(3)
Profit 92669. 62192 62191
distribu 00 40993. 48324.tion
0303
Withdra -
wal of 92669.
92669.
surplus 00
reserve 00
1492024 Annual Report of Luzhou Laojiao Co. Ltd.
s
Profit
distribu - -
ted to
6219162191
owners
(or 48324. 48324.shareh 03 03
olders)
Others
(4)
Internal
carry- -
16215
forward 16215
of 653.21
653.21
owners'
equity
Conver
sion of
capital
reserve
s into
paid-in
capital
Conver
sion of
surplus
reserve
s into
paid-in
capital
Surplus
reserve
s
offsetti
ng
losses
Carry-
forward
of
retaine
d
earning
s from
change
s in
defined
benefit
plans
Carry-
forward
of
retaine
d -
16215
earning 16215
s from 653.21
653.21
other
compre
hensive
income
Others
(5)
Special
reserve
s
Withdra
wal for
the
period
Use for
the
period
(6)2278222782
Others 6.01 6.01
1502024 Annual Report of Luzhou Laojiao Co. Ltd.
4.
Balanc
e as at 14719 51793 61674 14719 28176 35743
Decem 60513
ber 31 87769. 07881. 3610.5 87769. 37259 42597567.32
of the 00 60 9 00 6.42 2.75
current
year
3. Company Profile
3.1. Company Overview
Luzhou Laojiao Co. Ltd. (hereinafter referred to as "Company" or "the Company") formerly known as
Luzhou City Qu Liquor Factory and Luzhou Laojiao Distillery in Sichuan Province. It was established in
March 1950 on the basis of 36 brewing workshops from the Ming and Qing dynasties. On September
20 1993 Luzhou Laojiao brewery established a joint-stock limited company with fund-raising
exclusively from its operational assets. On October 25 1993 the public offering of shares was
approved by Sichuan Provincial People's Government and CSRC with two documents of ChuanFuHan
(1993) No.673 and FaShenZi (1993) No.108. After the offering the total share capital was 86880000
shares which were listed and traded in Shenzhen stock exchange on May 9 1994.As at December 31 2004 the Company's total share capital reached 841399673 shares after multiple
rights issues among which the controlling shareholder State Assets Management Bureau of Luzhou
(later renamed as State-owned Assets Supervision and Administration Commission of Luzhou
hereinafter referred to as "SASAC of Luzhou") held 585280800 shares of the Company with a
shareholding ratio of 69.56%.On October 27 2005 the Company implemented the non-tradable share reform. After the
implementation the total share capital remained unchanged and the shareholding ratio of SASAC of
Luzhou decreased from 69.56% to 60.43%.In November 2006 the Company implemented private placement and the total share capital increased
from 841399673 shares to 871399673 shares. The shareholding ratio of SASAC of Luzhou
decreased from 60.43% to 58.35%.As at February 27 2007 SASAC of Luzhou sold 42069983 shares of the Company and after the sale
it still held 466375156 shares of the Company with its shareholding ratio reduced to 53.52%.On May 19 2008 the Company increased 522839803 shares of capital stock resulting from capital
reserve and undistributed profits transferred to increase capital stock. After the implementation the total
share capital reached 1394239476 shares among which SASAC of Luzhou held 746200250 shares
of the Company and the shareholding ratio was still 53.52%.On September 3 2009 the 300000000 shares and the 280000000 shares held by SASAC of Luzhou
were separately transferred to Luzhou Laojiao Group Co. Ltd. (hereinafter referred to as the "Laojiao
Group") and Luzhou XingLu Investment Group Co. Ltd. (hereinafter referred to as the "XingLu Group").After the transfer Laojiao Group Xinglu Group and SASAC of Luzhou respectively held 300000000
shares 280000000 shares and 166200250 shares. So far Laojiao Group became the first majority
1512024 Annual Report of Luzhou Laojiao Co. Ltd.
shareholder and SASAC of Luzhou was the actual controller.From June 6 2012 to November 20 2013 the first and second phases of the Company's equity
incentive plan were exercised. After the exercise the total share capital of the Company was changed
to 1402252476 shares.On April 10 2014 and July 18 2016 SASAC of Luzhou transferred 81088320 shares and 84000000
shares to Laojiao Group and XingLu Group respectively. In addition Laojiao Group has increased its
equity stake through the secondary market of 13137100 shares. So far Laojiao Group XingLu Group
and SASAC of Luzhou held 394225489 shares 365971142 shares and 1111930 shares
respectively with the shareholding ratios of 28.11% 26.10% and 0.08% respectively.On August 23 2017 the Company issued CNY 62500000 ordinary shares (A shares) privately raising
a total capital of CNY 3000000000. After the additional issuance the total capital stock of the
Company was changed to 1464752476 shares. In addition from 2017 to 2018 Laojiao Group
decreased 13137100 shares that were increased through the secondary market from April 2014 to
December 2015. After share reduction Laojiao Group XingLu Group and SASAC of Luzhou held
381088389 shares 365971142 shares and 1111930 shares respectively in the Company with the
shareholding ratios of 26.02% 24.99% and 0.08% respectively. Laojiao Group still was the first majority
shareholder and SASAC of Luzhou still was the actual controller.In February 2022 the registration of 6862600 shares of the Restricted Share Incentive Plan granted
by the Company for the first time were completed; in September 2022 the Company granted 342334
shares of the Restricted Share Incentive Plan for the second time; in September 2022 with seven
awardees no longer eligible the Company decided to repurchase and retire the 62310 restricted
shares of them that had been granted to the aforesaid awardees but remained in lockup; in December
2022 the Company granted 92669 shares of the Restricted Share Incentive Plan for the third time.
From December 2023 to June 2024 Luzhou Laojiao Group Co. Ltd. through its wholly-owned
subsidiary Sichuan Golden Rudder Investment Co. Ltd. increased its holdings in the Company by
1140200 shares through call auction trading accounting for 0.08% of the total share capital of the
Company. Following that Luzhou Laojiao Group Co. Ltd. and Sichuan Golden Rudder Investment Co.Ltd. collectively held 382228589 shares in the Company.In January June and September 2024 as five awardees were no longer eligible for the incentives the
Company decided to repurchase and retire a total of 36266 restricted shares that had been granted to
the aforesaid awardees but remained in lockup. As of December 31 2024 the repurchase and
retirement of the said restricted shares had been completed the total shares of the Company changed
to 1471951503 shares and the grants and repurchases under the restricted share incentive plan did
not lead to change of the Company’s controlling shareholder or actual controller. As of December 31
2024 Laojiao Group its wholly-owned subsidiary Sichuan Golden Rudder Investment Co. Ltd. and
XingLu Group held 381088389 shares 1140200 shares and 365971142 shares respectively in the
Company with the shareholding ratios of 25.89% 0.08% and 24.86% respectively. Laojiao Group held
a total of 50.83% of the Company's voting rights.
1522024 Annual Report of Luzhou Laojiao Co. Ltd.
3.2 Registered address of the Company company type and headquarter address
Registered address and headquarter address of the Company are located in Sichuan Luzhou Laojiao
Square and company type is other incorporated company (Listed).
3.3 Business nature of the Company and main business activity
Industry of the Company is the baijiu subdivision industry of the liquor and wine beverage and refined
tea production industry.The main activity are research and development production and sales of “National Cellar
1573””Luzhou Laojiao” and other baijiu series.
The main products are: “National Cellar 1573 Series” ”Century-old Luzhou Laojiao JiaolingSeries” ”Luzhou Laojiao Tequ” ”Touqu” ”Hey Guys” and other baijiu series.
3.4 The name of the controlling shareholder and the ultimate substantive controller
The controlling shareholder is Luzhou Laojiao Group Co. Ltd.; the ultimate substantive control is
SASAC of Luzhou.
3.5 Approval and submission of the financial report and its date
The financial report is approved for issue by the Board of Directors of the Company on April 24 2025.In accordance with the Company's Articles of Association the financial report will be submitted to a
general meeting of shareholders for review.
4. Basis of preparation of financial statements
4.1. Basis of preparation of financial statements
The Company has prepared its financial statements on a going concern basis and the preparation is
based on actual transactions and events in compliance with Accounting Standards for Business
Enterprises and relevant guidance and explanation (the following called the ASBE) issued by Ministry of
Finance and Rules on Company Information Disclosure and Preparation of Publicly Issued Securities
No.15- General Rules on Financial Reporting Rules (2023 Revision) issued by CSRC.
4.2. Going concern
The Company’s business activities have adequate financial support. Based on the current information
obtained by the Company comprehensively considering factors such as macro-policy risk market
operation risk current or long-term profitability debt repayment ability of the Company as well as its
resource of financial support the Company believes that it is reasonable to prepare the financial
statements on a going concern basis and there are no events or situations resulting in significant
doubts over going concern for at least 12 months.
1532024 Annual Report of Luzhou Laojiao Co. Ltd.
5. Significant accounting policies and accounting estimates
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
5.1 The declaration about compliance with ASBE
The financial statements of the Company have been prepared in accordance with ASBE and present
truly and completely the financial position and the Company’s and results of operations changes in
shareholders’ equity and cash flows. In addition in all material respects the financial statements of the
Company comply with disclosure requirements of the financial statements and their notes in
accordance with Rules on Company Information Disclosure and Preparation of Publicly Issued
Securities No.15- General Rules on Financial Reporting Rules revised by CSRC in 2023.
5.2 Accounting period
The Company adopts the calendar year as its accounting year i.e. from January 1 to December 31.
5.3 Business Cycle
The Company’s business cycle is 12 months.
5.4 Functional currency
The Company has adopted China Yuan (CNY) as functional currency.
5.5 Methods for determining materiality standards and selection criteria
□Applicable □ N/A
Item Materiality standard
Material receivables withdrawal of bad debt
provision separately accrued
Material bad debt provision recovered or
reversed in accounts receivables The carrying balance at the end of the Reporting
Significant write-off of accounts receivables Period ≥ CNY 5 million
Significant prepayments aging over one year
accounts payable contract liabilities and other
payables
Single project under construction with a budget
exceeding CNY 150 million and a total amount
Material construction in progress
accounted for the current period exceeding CNY
50 million
The overseas operating entities' external revenue
accounts for ≥ 3% of the consolidated operating
Material overseas operating entity
revenue and the total profit accounts for ≥ 0.5%
of the consolidated total profit
1542024 Annual Report of Luzhou Laojiao Co. Ltd.
The revenue of non-wholly-owned subsidiaries
accounts for ≥ 3% of the consolidated operating
Material non-wholly-owned subsidiary
revenue and the total profit accounts for ≥ 0.5%
of the consolidated total profit
The book value of long-term equity investments
in associated enterprises accounts for ≥ 3% of
Significant associated enterprise
the total assets in the consolidated financial
statements
5.6 The accounting treatment of business combinations involving enterprises under
common control and business combinations not involving enterprises under
common control
(1) Business combination under common control
Assets and liabilities obtained by the Company from the combine through business combination under
common control shall be measured at the book value as stated in the consolidated financial statements
of ultimate controlling party at the combination date. The share of the book value of the merged party’s
owner’s equity in the consolidated financial statements is taken as the initial investment cost of long-
term equity investments in individual financial statements. The capital reserve (stock premium or capital
premium) is adjusted according to the difference between the book value of net asset acquired through
combination and the book value of consideration paid for the combination (or total par value of shares
issued). If the capital reserve (stock premium or capital premium) is insufficient to offset the retained
earnings shall be adjusted.
(2) Business combination not under common control
Assets paid liabilities incurred or assumed and the equity securities issued as consideration for
combination shall be measured based on fair value on the acquisition date the difference between fair
value and its book value shall be included in current profit and loss. The Company shall recognize the
difference of the combination costs in excess of the fair value of the net identifiable asset acquired from
the acquiree through combination as goodwill. After the review if the combination costs are still in short
of the fair value of the net identifiable asset acquired from the acquiree through combination include
the difference in the current profit and loss.Fees commissions and other transaction expenses paid on issuance of equity securities as
combination consideration in the business combination shall be included in the initial measurement
amount of equity securities.
5.7 Criteria for judging control and preparation of consolidated financial statements
(1) Consolidated Financial Statement Scope
The scope of the Company’s consolidated financial statements is based on control and all subsidiaries
controlled are included in the consolidation scope of the consolidated financial statements.
1552024 Annual Report of Luzhou Laojiao Co. Ltd.
(2) Consolidation procedures
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries and are prepared by the parent company with other relevant information. When preparing
consolidated financial statement the Company considers the Group as an accounting entity adopts
unified accounting policies and applies the requirements of ASBE related to recognition measurement
and presentation to reflect the Group’s financial position operating results and cash flows.All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the
same accounting policies and accounting periods as those of the Company. If the accounting policies or
accounting periods of a subsidiary are different from those of the Company the financial statements of
the subsidiary upon preparation of consolidated financial statements shall be made necessary
adjustment based on its own accounting policies and accounting periods of the Company. For
subsidiaries acquired from the business combination not under common control the financial
statements shall be adjusted on the basis of the fair value of identifiable net assets on the date of
purchase. For the subsidiary acquired from the business combination under common control its assets
and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
controlling party) shall be adjusted on the basis of the book value in the consolidated statements of the
ultimate controlling party.The portion of a subsidiary’s equity the current net profit and loss of subsidiaries and the current
comprehensive income attributable to non-controlling interests shall be separately presented as non-
controlling interests in consolidated balance sheet within owners' equity below the net profit line item
and below the total comprehensive income line item in the consolidated income statement respectively.When the amount of current loss attributable to non-controlling shareholders of a subsidiary exceeds
the balance of the non-controlling shareholders’ portion in the opening balance of owner's equity of the
subsidiary the excess shall be allocated against the non-controlling interests.* Acquisition of subsidiaries or business
During the reporting period if the Company acquires subsidiaries from the business combination under
common control the opening balance in the consolidated balance sheet shall be adjusted. The income
expenses and profits of the newly acquired subsidiaries from the beginning to the end of the reporting
period shall be included in the consolidated income statement. The cash flows of the newly acquired
subsidiaries from the beginning to the end of the reporting period shall be included in the consolidated
statement of cash flows. At the same time the relevant items of the comparative information shall be
adjusted as the combined entity existed since the control point of the ultimate controlling party.If the Company can control the investee from the business combination under common control due to
1562024 Annual Report of Luzhou Laojiao Co. Ltd.
additional investment or other reasons the parties involved in the combine shall be deemed to adjust in
the current state when the ultimate controlling party starts to control them. For the equity investment
before obtaining control of the investee the recognized relevant profit or loss and other comprehensive
income and other changes in net assets between the later of acquisition date of previous equity and the
date on which both the investor and the investee are under common control and the combination date
shall respectively write-down the beginning retained earnings or current profits and losses during the
period of comparative information.During the reporting period if the Company acquires subsidiaries from the business combination not
under common control the opening balance in the consolidated balance sheet shall not be adjusted.The income expenses and profits of the newly acquired subsidiaries from the acquisition date to the
end of the reporting period shall be included in the consolidated income statement. The cash flows of
the newly acquired subsidiaries from the acquisition date to the end of the reporting period shall be
included in the consolidated statement of cash flows.When the Company becomes capable of exercising control over an investee not under common control
due to additional investment or other reasons the Company shall re-measure the previously held equity
interests to its fair value on the acquisition date and the difference shall be recognized as investment
income. When the previously held equity investment is accounted for under equity method any other
comprehensive income previously recognized and other equity changes (excluding other
comprehensive net profit and loss and profit distribution ) in relation to the acquiree’s equity changes
shall be transferred to profit and loss for the current period when acquisition took place except for other
comprehensive income resulting from changes in net liabilities or net assets due to re-measurement of
defined benefit plan by investee.* Disposal of subsidiaries and business
General treatments
During the reporting period if the Company disposes subsidiaries the income expenses and profits of
the newly disposed subsidiaries from the beginning to the disposal date shall be included in the
consolidated income statement. The cash flows from the beginning to the disposal date shall be
included in the consolidated statement of cash flows.In case of loss of control over the investee due to partial disposal of the equity investment or other
reasons the Company shall re-measure the remaining equity investment at its fair value at the date of
loss of control. The amount of the consideration obtained from the disposal of the equity and the fair
value of the remaining equity minus the net asset shares calculated continuously from the acquisition
date based on the previous shareholding proportion and the goodwill the difference shall be included in
1572024 Annual Report of Luzhou Laojiao Co. Ltd.
the investment income of the period when the control is lost. Other comprehensive income related to
the former subsidiary’s equity investment of or other changes in owners' equity excluding net profit and
loss other comprehensive income and profit distribution shall be transferred to investment income for
the current period when control is lost. Other comprehensive income resulting from changes in net
liabilities or net assets due to re-measurement of defined benefit plan by investee is excluded.Disposal of subsidiaries by step
If the Company loses control of a subsidiary is through multiple transactions by steps the terms
conditions and economic impact of the disposal transaction shall be considered. When one or more of
the following conditions may indicate that multiple transactions should be treated as a package of
transactions for accounting treatment:
A. These arrangements were entered into at the same time or in contemplation of each other;
B. These arrangements work together to achieve an overall commercial effect;
C. The occurrence of one arrangement depends on the occurrence of at least one other arrangement;
D. One arrangement alone is not economically justified but it is economically justified when considered
together with other arrangements
If the transactions of the disposal of the equity investment of the subsidiary until the loss of control
belong to a package transaction the Company shall account for as a transaction; However the
difference between each disposal consideration received and the corresponding proportion of the
subsidiary’s net assets before the loss of control shall be recognized as other comprehensive income in
the consolidated financial statements and transferred into the profit and loss of the current period when
the control is lost.If the transactions from the disposal of the equity investment of the subsidiary to the loss of control are
not considered as a package transactions the accounting treatment shall be conducted according to
the relevant policies on the partial disposal of the equity investment of the subsidiary where control is
retained before the loss of control. When the control is lost the disposal shall be accounted for
according to the general treatment.* Purchase of non-controlling interests
The difference between the increase in the cost of long-term equity investment result from acquisition of
non-controlling shareholders and the share of net assets of the subsidiary calculated continuously from
the acquisition date or combination date based on newly shareholding proportion shall be adjusted to
equity (share) premium of capital reserves in the consolidated balance sheet. If the capital reserve is
insufficient any excess shall be adjusted against retained earnings.
1582024 Annual Report of Luzhou Laojiao Co. Ltd.
* Partial disposals of equity investment in subsidiaries without loss of control
When the Company disposes of a portion of a long-term equity investment in a subsidiary without loss
of control the difference between disposal consideration and net assets of the subsidiary calculated
continuously since the acquisition date or the combination date related to the disposal of long-term
equity investment shall be adjusted to equity (share) premium of capital reserves in the consolidated
balance sheet. If the capital reserve is insufficient any excess shall be adjusted against retained
earnings.
5.8 Classification of joint venture arrangements and the accounting treatment
method of common operation
(1) Classification of joint venture arrangements
A joint arrangement is classified as either a joint operation or a joint venture according to the structure
legal form agreed terms and other facts and conditions of a joint arrangement. A joint arrangement that
is structured through a separate vehicle is usually classified as a joint venture. However when a joint
arrangement provides clear evidence that it meets any of the following requirements and complies with
applicable laws and regulations as a joint operation:
* The legal form of the joint arrangement indicates that the parties that have joint control have rights to
the assets and obligations for the liabilities relating to the arrangement.* The terms of the joint arrangement specify that the parties that have joint control have the rights to
the assets and the obligations for the liabilities relating to the arrangement.* Other facts and circumstances indicate that the parties that have joint control have rights to the
assets and the obligations for the liabilities relating to the arrangement. The parties that have joint
control have rights to substantially all of the output of the arrangement and the arrangement depends
on the parties that have joint control on a continuous basis for settling the liabilities of the arrangement.
(2) Accounting by parties of a joint operator
A joint operator shall recognize the following items in relation to its interest in a joint operation and
account for them in accordance with relevant accounting standards:
* Its solely-held assets and its share of any assets held jointly;
* Its solely-assumed liabilities and its share of any liabilities incurred jointly;
* Its revenue from the sale of its share of the output arising from the joint operation;
* Its share of the revenue from sale of the output by the joint operation; and
* Its solely-incurred expenses and its share of any expenses incurred jointly.The Company shall only recognize the portion of the profit and loss attributable to other participants in
the joint venture resulting from investment or sale of assets to the joint venture by the Company
(excluding those assets constituting the business) prior to the sale of such assets to a third party. The
1592024 Annual Report of Luzhou Laojiao Co. Ltd.
Company shall fully recognize impairment loss when there is any impairment loss of invested or sold
assets occurring in accordance with the ASBE No.8-Asset Impairment. The Company shall only
recognize the part of the profit and loss attributable to other participants in the joint venture before
selling the assets and other assets purchased from the joint venture (excluding those assets
constituting the business) to a third party. When the impairment loss of the purchased assets is in
accordance with the ASBE No.8-Asset Impairment the Company shall recognize such losses
according to its share. When the Company does not have common control over the joint venture if the
Company enjoys the assets related to the joint venture and assumes the liabilities related to the joint
venture the accounting treatment shall be conducted according to the above principles. Otherwise the
accounting treatment shall be conducted in accordance with the relevant accounting standards.
5.9 Cash and cash equivalents
When preparing the cash flow statement the Company recognizes cash on hand and deposits that can
be readily withdrawn on demand as cash. Cash equivalents are the Company’s short-term (due within 3
months from purchase date) highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value. Restricted bank deposits are not
recognized as cash and cash equivalents in the cash flow statement.
5.10 Foreign currency transactions and translation of foreign currency statements
(1) Foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company the amount in the
foreign currency shall be translated into the amount in CNY currency at the spot exchange rate of the
transaction date. For the monetary items of foreign currencies the translation is done according to spot
rate of the balance sheet date. The exchange difference generated from the difference of spot rate of
the current balance sheet date and the time of initial recognition of a foreign currency or the previous
balance sheet date is charged to the profit or loss of the current period except that the exchange
difference generated from foreign currency borrowings relating to assets of which the acquisition or
production satisfies the capitalization conditions is capitalized.Non-monetary items measured at fair value that is reflected in foreign currency at the end of the period
the Company shall firstly translate the foreign currency into the amount in functional currency at the
spot exchange rate on the date when the fair value is determined and then compare it with the original
functional currency amount. Difference between the translated functional currency amount and the
original functional currency amount is treated as profit or loss from changes in fair value (including
changes in exchange rate) and is recognized in current profit and loss. If there is a non-monetary item
of available-for-sale financial assets the differences are recorded into other comprehensive income.
(2) Translation of foreign currency statements
Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance
1602024 Annual Report of Luzhou Laojiao Co. Ltd.
sheet date. Shareholders’ equity items except for the item of "undistributed profits" are translated at
the spot exchange rates on the dates when the transactions occur. Revenue and expense items in the
income statement are translated at the spot exchange rates on the dates when the transactions occur
or at the exchange rate determined in a systematical and reasonable method and similar to the spot
exchange rate on the day when the transactions occur. Differences arising from the above translations
of foreign currency financial statements are separately listed under other comprehensive income in the
consolidated balance sheet. If the overseas business is partly disposed of the foreign currency
financial statements exchange difference shall be calculated in proportion to the percentage of disposal
and transferred to gain or loss on disposal for the current period.Foreign currency cash flow and cash flow of foreign subsidiaries shall be translated at approximate
exchange rate of spot rate on the date of cash flow.
5.11 Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. When the Company becomes a party to a financial
instrument contract the related financial asset or financial liability should be recognized.
(1) Classification recognition and measurement of financial assets
Based on the business model of financial asset management and the contract cash flow characteristics
of financial assets the Company classifies financial assets into: financial assets measured at amortized
cost; financial assets measured at fair value with their changes included into other comprehensive
income; and financial assets measured at fair value with their changes included into current
profits/losses.At the initial recognition financial assets are measured at fair value. For financial assets measured at
fair value with their changes included into current profits/losses the expenses involved in the
transaction are directly recorded into current profits/losses; for other financial liabilities the expenses
involved in the transaction are recorded into the initially recognized amount.* Financial assets measured at amortized cost
The business model in which the Company manages financial assets measured at amortized cost aims
to receive contract cash flow. Furthermore the characteristics of the contract cash flow of such financial
assets are consistent with basic borrowing and lending arrangements which means that cash flow
generated on a specific date serves only as payment for principal and interests based on the amount of
unpaid principal. The Company adopts the effective interest method for such financial interests
performs subsequent measurement of them at amortized cost and includes the gains or losses from
derecognition changes or impairment of them into current profits/losses.
1612024 Annual Report of Luzhou Laojiao Co. Ltd.
* Financial assets measured at fair value with their changes included into other comprehensive
income
The business model in which the Company manages such financial assets both aims to receive
contract cash flow and for the purpose of sale. Furthermore the characteristics of the contract cash
flow of such financial assets are consistent with basic borrowing and lending arrangements. The
Company measure such financial assets at fair value and include their changes into other
comprehensive income but record impairment losses or gains exchange gains or losses and interest
income calculated in the effective interest method into current profits/losses.At the initial recognition the Company may specify non-trading equity instrument investment as a
financial asset measured at fair value with its changes included into other comprehensive income and
should recognize the dividend income according to regulations; the specification is irrevocable once
made. When the financial asset is derecognized the cumulative gains or losses previously included into
other comprehensive income should be transferred into retained earnings.* Financial assets measured at fair value with their changes included into current profits/losses
For financial assets other than the above financial assets measured at amortized cost and financial
assets measured at fair value with their changes included into other comprehensive income the
Company classifies them as financial assets measured at fair value with their changes included into
current profits/losses. In addition at the initial recognition the Company specifies partial financial
assets as financial assets measured at fair value with their changes included into current profits/losses
in order to eliminate or substantially reduce accounting mismatch. For such financial assets the
Company performs subsequent measurement using fair value and records changes in the fair value
into current profits/losses.
(2) Classification recognition and measurement of financial liabilities
At their initial recognition financial liabilities are divided into financial liabilities measured at fair value
with their changes included into current profits/losses and other financial liabilities. For financial
liabilities measured at fair value with their changes included into current profits/losses the expenses
involved in the transaction are directly recorded into the current profits/losses. For other financial
liabilities the expenses involved in the transaction are recorded into the initially recognized value.* Financial liabilities measured at fair value with their changes included into current profits/losses
Financial liabilities measured at fair value with their changes included into current profits/losses include
trading financial liabilities (including derivatives classified as financial liabilities) and the financial
liabilities specified to be measured at fair value with their changes included into current profits/losses at
1622024 Annual Report of Luzhou Laojiao Co. Ltd.
the initial recognition.Trading financial liabilities (including derivatives classified as financial liabilities) are subsequently
measured at fair value with changes in fair value recorded into current profits/losses except for those
related to hedge accounting.For those specified as financial liabilities measured at fair value with their changes included into current
profits/losses changes in the fair value of such liabilities caused by changes in the Company’s own
credit risk should be included into other comprehensive income. In derecognition of such liabilities
cumulative changes in their value caused by the Company’s own credit risk that have been recorded
into other comprehensive income should be transferred into retained earnings. Other changes in their
fair value should be recorded into current profits/losses. If treatment of the impact of the Company’s
own credit risk changes of such financial liabilities in the above manner causes or expands accounting
mismatch in profits/losses the Company will include all gains or losses of such financial liabilities
(including the amount of the impact of the Company’s own credit risk changes) into current
profits/losses.* Other financial liabilities
Financial liabilities other than those formed from the transfer of financial assets not meeting
derecognition conditions or continuous involvement into transferred financial assets and those outside
financial guarantee contracts are classified as financial liabilities measured at amortized cost. Such
financial liabilities should be subsequently measured at amortized cost and the gains or losses from
derecognition or amortization should be included into current profits/losses.
(3) Recognition basis and measurement method of transfer of financial assets
If a financial asset meets any of the following conditions it shall be derecognized: 1)The contractual
right for collecting the cash flow of the financial asset has been terminated; 2)The financial asset has
been transferred and almost all the risks and remunerations in respect of the ownership of the financial
asset has been transferred to the transferee; 3)The financial asset has been transferred and although
the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset it has abandoned its control over the asset.If the enterprise neither transfers nor retains almost all the risks and remunerations in respect of the
ownership of the financial asset and does not abandon its control over the asset the involved financial
asset shall be recognized according to the level of continuous involvement of the transferred financial
asset and the relevant liabilities shall be recognized accordingly. The level of continuous involvement of
the transferred financial asset refers to the level of risk faced by the enterprise due to changes in the
1632024 Annual Report of Luzhou Laojiao Co. Ltd.
value of the financial asset.If the overall transfer of the financial asset meets the recognition conditions the difference between the
carrying value of the transferred financial asset as well as the consideration received from the transfer
and the cumulative amount of fair value changes originally-recorded into other comprehensive incomes
shall be recorded into the current profits/losses.If partial transfer of the financial asset meets the recognition conditions the carrying value of the
transferred financial asset shall be apportioned at the relative fair value between the derecognition and
underecognition part. The difference between the summation of the consideration received from the
transfer and the cumulative amount of fair value changes originally-recorded into other comprehensive
incomes that should be apportioned to the derecognition part and the apportioned aforementioned
carrying value shall be recorded into the current profits/losses.For a financial asset sold with the right of recourse or with the transfer of the financial asset
endorsement the Company shall decide whether almost all the risks and remunerations in respect of
the ownership of the financial asset should be transferred. If they are transferred the financial asset
shall be derecognized; if they are retained the financial asset shall not be derecognized; if they are
neither transferred nor retained the Company will continue to decide whether the enterprise should
retain control over the asset and perform the accounting treatment according to the principles stated in
previous paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part of it) is relieved the Company will
derecognize the financial liability (or the part of it). When the Company (borrower) signs an agreement
with a lender to replace an original financial liability in the form of bearing a new financial liability and
the contract terms for the new financial liability differ from those for the original in substance the
original financial liability should be derecognized and the new one should be recognized. When the
Company makes substantial changes to the contract terms of an original financial liability (or a part of it)
the original financial liability should be derecognized and a new financial liability should be recognized
according to the amended contract terms.When a financial liability (or a part of it) is derecognized the Company will include the difference
between its carrying value and the consideration paid (including non-cash assets or liabilities borne that
are transferred out) into current profits/losses.
(5) Offsetting of financial assets and financial liabilities
1642024 Annual Report of Luzhou Laojiao Co. Ltd.
When the Company has the legal right to offset recognized financial assets and financial liabilities and
may execute the legal right currently and simultaneously the Company plans to settle or
simultaneously encash the financial assets in net amounts and pay off the financial liabilities the
financial assets and the financial liabilities which are presented in the net amount after the mutual offset
in the balance sheet. Other than that they shall be presented separately in the balance sheet without
the mutual offset.
(6) Method of determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can receive for selling an asset or transferring a
liability in an orderly transaction on the measurement date. For an existing financial instrument in an
active market the Company adopts the quotations in the active market to determine its fair value.Quotations in the active market refer to prices that can be easily obtained from exchanges brokers
industrial associations and pricing service institutions and represent the actual prices in the market
transactions happening in a fair trade. For a non-existing financial instrument in an active market the
Company adopts the valuation technique to determine its fair value. The valuation technique includes
references to familiar situations and the prices used by the parties voluntarily participating in the recent
market transactions as well as references to the present fair value of other financial instruments of the
same nature discounted cash flow method and options pricing model. In the valuation the Company
uses a valuation technique that is applicable in the current situation with sufficient data available and
other information support chooses input values that are consistent with the asset or liability
characteristics considered by market players in related asset or liability transactions and make
maximum effort to use related observable input values on a preferential basis. When it is unable or
unfeasible to obtain related observable input values unobservable will be used.
(7) Equity instruments
Equity instruments refer to the contracts that can prove the Company’s residual equity of assets after
the deduction of all liabilities. The Company’s issuance (including refinancing) repurchase sale or
cancellation of equity instruments serve as the change treatment of equity. Transaction expenses
related to the equity transactions are deducted from the equity. The Company does not recognize
changes in the fair value of equity instruments.Dividends from the Company’s equity instruments distributed during the validity (including the “interests”
from instruments classified as equity instruments) are treated as profit distribution.
(8) Impairment of financial instruments
Based on the expected credit loss the Company treats financial assets measured at amortized cost
and debt instrument investment measured at fair value with its changes included into other
1652024 Annual Report of Luzhou Laojiao Co. Ltd.
comprehensive income by impairment and recognizes the provision for loss.Credit loss means the difference between all contract cash flow discounted at the original effective
interest rate to be received according to contracts and all contract cash flow expected to be received
namely the present value of all cash shortage. For a financial asset with credit impairment purchased
by or originated from the Company it should be discounted by the effective interest rate after credit
adjustment to the financial asset.For accounts receivable that do not contain significant financing components the Company adopts
simplified measurement to measure loss provisions according to the amount equivalent to the expected
credit loss for the entire duration.For a financial asset other than those using the above simplified measurement the Company assesses
on each balance sheet date whether its credit risk has substantially increased since the initial
recognition. If it has not and is in the first stage the Company will measure the loss provision at the
amount equivalent to the expected credit loss for the next 12 months and calculate the interest income
according to the book balance and the effective interest rate; if it has substantially increased since the
initial recognition without credit impairment and is in the second stage the Company will measure the
loss provision at the amount equivalent to the expected credit loss for the entire duration and calculate
the interest income according to the book balance and the effective interest rate; if credit impairment
has occurred since the initial recognition and is in the third stage the Company will measure the loss
provision by the amount equivalent to the expected credit loss for the entire duration and calculate the
interest income according to the amortization cost and the effective interest rate. For financial
instruments with low credit risks on balance sheet dates the Company assumes that their credit risks
have not substantially increased since the initial recognition.The Company assesses expected credit losses of financial instruments based on individual and group
assessment. The Company considers the credit risk characteristics of different customers and
assesses the expected credit losses of accounts receivable and other receivables based on account
age portfolio. When assessing expected credit losses the Company considers reasonable and well-
founded information on past matters present conditions and forecast of future economic conditions.When it no longer reasonably expects to recover all or part of the contract cash flow of financial assets
the Company will directly write down the book balance of such financial assets.
5.12 Notes receivable
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
1662024 Annual Report of Luzhou Laojiao Co. Ltd.
characteristics and the basis for determining them:
Divide notes receivables into various portfolios according to common risk characteristics based on the
credit risk characteristics of acceptors and determine the accounting estimate policies of expected
credit loss：
Portfolio name Provision method
Bank acceptance bill The management evaluates that this type has low credit risk and its fixed bad
portfolio debt provision ratio is 0%.Trade acceptance The provision for impairment is made according to the expected loss rate with
portfolio the same portfolio classification of accounts receivables
5.13 Accounts receivables
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
As for accounts receivables regardless of whether there is a significant financing component the
Company always measures the provision for loss based on the amount equivalent to the expected
credit loss over the entire life and the resulting increase or reversal of provision for loss shall be
included in the current profit or loss as gains or losses on impairment. The accrual method is as follows:
(1) When there is objective evidence showing that an account receivable has incurred credit impairment
the Company shall make bad debt provision for the account receivable and recognize the expected
credit loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost the Company shall divide the accounts receivables portfolio according to credit
risk characteristics and measure the expected credit loss based on portfolios:
Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under
common control the recovery of which are controllable with no risks. Thus no bad debt provision was
made.The aging calculation method of credit risk characteristic portfolio based on aging:
The Company combines the accounts receivables classified as risk portfolio in accordance with similar
credit risk characteristics (aging) and calculates the expected credit loss through the exposure at
default and expected credit loss rate over the entire life based on the current situation and prediction of
future economic situation consulting historical credit loss experience. The comparative table of the
credit loss rate is as follows:
Aging Expected loss provision rate %
Within 1 year 5
1-2 years 10
1672024 Annual Report of Luzhou Laojiao Co. Ltd.
2-3 years 20
3-4 years 40
4-5 years 80
Over 5 years 100
The ageing of accounts receivable is calculated from the month in which the amounts are actually
incurred.
5.14 Accounts receivables financing
The accounts receivables financing of the Company refer to the notes receivables measured at fair
value through other comprehensive income on the balance sheet date. For more details see Note 5.11
Financial instruments.
5.15 Other receivables
The types of portfolios for which bad debt provisions are made according to the portfolios of credit risk
characteristics and the basis for determining them:
As for other receivables regardless of whether there is a significant financing component the Company
always calculates the expected credit loss through the exposure at default and expected credit loss rate
in the next 12 months or over the entire life based on the current situation and prediction of future
economic situation consulting historical credit loss experience and the resulting increase or reversal of
provision for loss shall be included in the current profit or loss as gains or losses on impairment. The
accrual method is as follows:
(1) When there is objective evidence showing that the other receivable has incurred credit impairment
the Company shall make bad debt provision for the other receivable and recognize the expected credit
loss.
(2) When the information about the expected credit loss of a single financial asset cannot be evaluated
at a reasonable cost the Company shall divide the other receivables portfolio according to credit risk
characteristics and measure the expected credit loss based on portfolios.Portfolio name Provision method
Risk portfolio Expected credit loss
Other portfolio No bad debt provision
Other portfolio refers to the normal intercourse funds among the Company and businesses under
common control the recovery of which are controllable with no risks. Thus no bad debt provision was
made.The Company combines the other receivables classified as risk portfolio in accordance with similar
credit risk characteristics and calculates the expected credit loss through the exposure at default and
expected credit loss rate in the next 12 months or over the entire life based on the current situation and
prediction of future economic situation consulting historical credit loss experience.
1682024 Annual Report of Luzhou Laojiao Co. Ltd.
5.16 Contract assets
The Company presents contract assets or contract liabilities on the balance sheet according to the
relationship between the fulfillment of its contract performance obligations and its customers’ payment.Considerations that the Company has the right to collect for commodities transferred or services
provided to customers (and such right depends on other factors than time lapses) are presented as
contract assets. The Company presents the right possessed to collect consideration from customersunconditionally (only depending on the passing of time) as accounts receivable. Refer to “The methodof determining the expected credit loss of accounts receivables and accounting treatment method” for
the detail on the Company’s method of determining the expected credit loss of contract assets and
accounting treatment method.
5.17 Inventory
(1) Classification of inventory
Inventories are classified as: raw materials goods in progress (including semi-finished goods) stock
commodities and dispatched inventories.
(2) Measurement method of acquiring and dispatching inventories
The standard cost is used for daily accounting of raw materials and the difference of material cost
should be carried forward on a monthly basis to adjust the standard cost into the actual cost; The goods
in progress (including semi-finished goods) shall be accounted according to the actual cost and the
weighted average method shall be used when they are received and delivered. The actual cost of the
inventory at the end of the month above shall be taken as the standard cost and the delivery shall be
priced according to the standard cost. At the end of the month the standard cost of the inventory at the
end of the month shall be adjusted into the actual cost through the cost-sharing difference.
(3) Determining criteria and method of provision for stock obsolescence
At the end of the period inventory is measured according to the lower of cost and net realizable value.The difference between inventory cost and net realizable value is higher than the provision for stock
obsolescence which is recorded into current profit and loss. For inventories that are related to product
ranges produced and sold in the same district or used for the same or similar ultimate purpose and are
difficult to be measured separately from other inventories the Company provides for stock
obsolescence as a whole. For inventories that have large quantities but low value the Company
provides for stock obsolescence on a category basis.The materials held for production shall be measured at cost if the net realizable value of the finished
1692024 Annual Report of Luzhou Laojiao Co. Ltd.
products is higher than the cost. If a decline in the value of materials shows that the net realizable value
of the finished products is lower than the cost the materials shall be measured at the net realizable
value.
(4) Inventory system
The Company adopts perpetual inventory system.
(5) Packing materials and low-cost consumables are amortized in full at once.
5.18 Assets held for sale
(1) Determining criteria for non-current assets held for sale or disposal groups
The Company shall classify the non-current assets or disposal group meeting the following conditions
into the held-for-sale category: The assets (or disposal group) must be available for immediate sale in
its present condition subject only to terms that are usual and customary for sales of such assets (or
disposal groups); Its sale must be highly probable.; The Company has already made a decision to
dispose the component and has a commitment from the purchaser the transfer will be completed within
one year.The non-current assets or disposal group acquired by the Company for resale shall be divided into the
held-for-sale category on the acquisition date if it meets the condition that "the sale is expected to be
completed within one year" and if it is likely to meet other conditions for the held-for-sale category within
a short period (usually three months).Due to one of the following reasons that the Company is unable to control leading to the transactions
uncompleted with non-related party within one year and the Company still commits to sale non-current
assets or disposal groups it can continue to account for non-current assets or disposal groups as held-
for-sale: the buyer or any other party accidentally set sale extension condition. The Company has to
take action in time according to these conditions and the extension problem is expected to be solved
within one year; In rare cases the Company has taken the necessary steps and re-satisfy the hold for
sale category condition within the first year for the new circumstances which caused it unable to
complete the sale of the non-current assets or disposal group within one year.
(2) Accounting treatment of non-current assets or disposal groups held for sale
* Initial measurement and subsequent measurement
When the Company measure a non-current asset or disposal group held for sale initially or re-measure
at balance sheet date subsequently the impairment loss should be recognized if the book value is
1702024 Annual Report of Luzhou Laojiao Co. Ltd.
higher than fair value less costs to sell at the amount of the difference of these two in profit and loss
the provision for assets held for sale need to be recognized at the same time.For the non-current assets or disposal groups divided into held-for-sale category on the acquisition date
they shall be measured as the lower of the initial measurement amount and the net amount after
deducting the selling expenses from the fair value under the assumption that it is not divided into held-
for-sale categories at the initial measurement. Except for the non-current assets or the disposal groups
obtained in the enterprise merger the difference caused by the non-current assets or the disposal
groups taking the net amount after the fair value minus the selling expenses as the initial measurement
amount shall be recorded into the current profit and loss.For the impairment of disposal group it should write off goodwill if existing and then write down the
related assets proportionally.Depreciation or amortization should cease for the non-current asset held for sale. Interest and other
charges on liabilities in the disposal groups held for sale continue to be recognized.* Accounting treatment of reversal of impairment loss
If the net amount of the non-current assets held for sale on the subsequent balance sheet date
increases after the fair value minus the selling expenses the amount previously written down shall be
reversed and the amount of the impairment loss recognized after being classified as the held-for-sale
shall be reversed and the reversed amount shall be included in the current profit and loss. The
impairment loss recognized before the classification of the held-for-sale shall not be reversed.If the net amount of the disposal groups held for sale on the subsequent balance sheet date increases
after the fair value deducting the selling expenses the amount previously written down shall be
reversed and the amount of the impairment loss recognized as non-current assets after being
classified as the held-for-sale shall be reversed and the reversed amount shall be included in the
current profit and loss. The book value of the goodwill that has been written down and the impairment
losses recognized before the classification of the held-for-sale shall not be reversed.The subsequent reversed amount of the impairment loss recognized by the disposal groups held for
sale shall be increased in proportion to the book value of non-current assets except goodwill in the
disposal groups.* Recognition criteria and presentation of discontinued operations
Non-current assets or disposal groups that are no longer divided into held-for-sale category or non-
1712024 Annual Report of Luzhou Laojiao Co. Ltd.
current assets are removed from disposal groups held for sale because of no longer meeting the
condition of classification of held-for-sale they are measured at lower of the following two: book value
before being classified as the held-for-sale considering depreciation amortization or impairment that
should have been recognized under the assumption that it is not divided into held-for-sale categories;
and recoverable amount.When terminating the recognition of the non-current assets held for sale or the disposal groups the
unrecognized gains or losses shall be recorded into the current profit and loss.
5.19. Long-term equity investment
(1) Judgment criteria of common control and significant influence
Common control on an agreement with other participants refers to the Company share control with
other participants on an arrangement according to relevant conventions which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.This arrangement belongs to joint venture. Where the joint venture arrangement is made by a separate
entity and the Company is judged to have rights to the net assets of such a separate entity according to
the relevant conventions. Such a separate entity shall be regarded as a joint venture and accounted by
the equity method. If the Company is judged to be not entitled to the net assets of the separate entity
according to relevant conventions the separate entity shall be regarded as a joint venture and the
Company shall recognize the items related to the shares of the joint venture and perform accounting
treatment in accordance with relevant accounting standards.The term ‘significant influence’ refers to the power to participate in decision-making on the financial and
operating policies of the investee but with no control or joint control over the formulation of these
policies. The Company judges that it has a significant impact on the invested entity through one or more
of the following situations and taking all the facts and circumstances into consideration:
* Dispatch representatives to the board of directors or similar authorities of the investee.* To participate in the financial and business policy making process of the investee.* Significant transactions with the investee.* Dispatch management personnel to the investee.* To provide key technical data to the investee.
(2) Determination of the initial investment cost
* Long-term equity investment resulting from combination
Business combination under common control：For the long-term equity investments obtained by cash
paid non-monetary assets paid or assumed liabilities and the equity securities issued by the acquirer
on the merger date the initial investment cost of long-term equity investment shall be taken as the
1722024 Annual Report of Luzhou Laojiao Co. Ltd.
share of the owner's equity of the investee in the book value of the final control party's consolidated
financial statements. If the investee under business combination under common control can be
controlled due to additional investment or other reasons the initial investment cost of long-term equity
investment shall be determined on the merger date according to the share of the net assets of the
investee in the book value of the final control party's consolidated financial statements. The difference
between the initial investment cost of the long-term equity investment on the merger date and sum of
the book value of the long-term equity investment before the merger and the new consideration of
acquiring shares on the merger date shall be recorded to adjust the equity premium. If the equity
premium is insufficient to be written down the retained earnings shall be written down.Business combination not under common control：The Company takes the initial investment cost of
long-term equity investment as the merger cost determined on the purchase date. If the investee can be
controlled under business combination not under common control due to additional investment or other
reasons the previous book value of the equity investment held plus the sum of the newly added
investment cost shall be taken as the initial investment cost calculated according to the cost method.* Long-term equity investment obtained by other means
For the long-term equity investments obtained by cash paid the Company recognizes their fair value as
the initial investment costs.For the long-term equity investments acquired by the issue of equity securities the initial investment
cost shall be the fair value of the equity securities issued.For long-term equity investments obtained by non-monetary assets exchange under the condition that
an exchange of non-monetary assets is of commerce nature and the fair value of assets exchanged
can be reliably measured non-monetary assets traded in is initially stated at the fair value of the assets
traded out unless there is conclusive evidence indicating that the fair value of the assets traded in is
more reliable; if the above conditions are not satisfied initial investment costs of long-term equity
investments traded in shall be recognized at the book value of the assets traded out and the relevant
taxes and surcharges payable.For long-term equity investments obtained by debt restructuring the Company recognizes the fair value
of shares of debt-for-equity swap as the initial investment costs.
(3) Subsequent measurement and recognition of profit and loss
* Long-term equity investments measured under the cost method
Long-term equity investments that can control the investee are measured under the cost method. For
1732024 Annual Report of Luzhou Laojiao Co. Ltd.
long-term equity investments accounted at the cost method except cash dividends or profits declared
but not yet distributed which are included in the actual payments or the consideration actually paid for
the investment the cash dividends or profits declared by the investee shall be recognized as the
investment income irrespective of net profits realized by the investee before investment or after
investment.* Long-term equity investments measured under the equity method
For the long-term equity investment which has joint control or significant influence over the investee the
equity method is adopted for accounting. For long-term equity investments measured at the equity
method if the initial investment costs are higher than the investor’s attributable share of the fair value of
the investee’s identifiable net assets no adjustment will be made to the initial costs of the long-term
equity investments; if the initial investment costs are lower than the investor’s attributable share of the
fair value of the investee’s identifiable net assets the difference shall be recognized in current profit and
loss.The Company shall according to the shares of net profits and other comprehensive income realized by
the investee that shall be enjoyed or borne by the Company recognize the profit and loss on the
investments and adjust the book value of the long-term equity investments. When recognizing the net
profits and losses and other comprehensive income of the investee that the Company shall enjoy or
bear the Company shall make a recognition and calculation based on the net book profits and losses of
the investee after appropriate adjustments. However where the Company is unable to obtain the
relevant information due to failure to reasonably determine the fair value of the investee’s identifiable
assets minor difference between the investee’s identifiable assets and the book value thereof or other
reasons the profits or losses on the investments shall be directly calculated and recognized based on
the net book profits and losses of the investee. The Company shall calculate the part distributed from
cash dividends or profits declared by the investee and correspondingly reduce the book value of the
long-term equity investments. When recognizing the income from investments in associates and joint
ventures the Company shall write off the part of incomes from internal unrealized transactions between
the Company and associates and joint ventures which are attributable to the Company and recognize
the profit and loss on investments on such basis. Where the losses on internal transactions between
the Company and the investee are impairment of related assets full amounts of such losses shall be
recognized. Profit and loss from internal unrealized transactions between the Company’s subsidiaries
included into the combination scope and associates and joint ventures shall be written off according to
the above principles and the profit and loss on investments thereafter shall be recognized on such basis.When the share of net loss of the investee attributable to the Company is recognized it is treated in the
following sequence: Firstly write off the book value of the long-term equity investments; where the book
value of the long-term equity investments is insufficient to cover the loss investment losses are
1742024 Annual Report of Luzhou Laojiao Co. Ltd.
recognized to the extent that book value of long-term equity which form net investment in the investee
in other substances and the book value of long-term receivables shall be written off; after all the above
treatments if the Company still assumes additional obligation according to investment contracts or
agreements the obligation expected to be assumed should be recognized as provision and included
into the investment loss in the current period. If the investee is profitable in subsequent accounting
periods the Company shall treat the loss in reverse order against that described above after deducting
unrecognized share of loss: i.e. write down the book value of the recognized provision then restore the
book value of long-term interests which substantially form net investments in the investee then restore
the book value of long-term investments and recognize investment income at the same time.
5.20. Investment property
Measurement model of investment property
Cost model
Method of depreciation or amortization
Investment property is the property that is held to earn rent or capital appreciation or both and can be
measured and sold separately. The Company’s investment property includes land use right already rent
land use right held for appreciation and then sold and buildings already rent.
(1) Initial Recognition
When the Company can obtain the rental income or value-added income related to the investment
property and the cost of the investment property that can be measured reliably the Company will
initially measure it according to the actual expenditure of purchase or construction:
The cost of the purchased investment property includes the purchase price and related taxes directly
attributable to the asset;
The cost of self-built investment property consists of the necessary expenses incurred before the asset
reaches the intended use condition;
The cost of the investment property obtained by other means shall be recognized in accordance with
relevant accounting standards.
(2) Subsequent measurement
In general the Company adopts the cost model to measure the follow-up expenditure of investment
property. The depreciation or amortization of investment property shall be carried out in accordance
with the accounting policies for the Company's fixed assets or intangible assets.If there is solid evidence suggests that the investment property acquired can be measured at fair value
continuously and reliably the Company can use fair value model for subsequent measurement. For the
investment property measured at fair value model the Company does not provide depreciation or
1752024 Annual Report of Luzhou Laojiao Co. Ltd.
amortization and adjusts its book value based on the fair value of investment property at the balance
sheet date. The difference between the fair value and book value is recorded into current profit or loss.
(3) When the Company changes the use of investment property the relevant investment property will
be transferred to other assets.
5.21. Fixed assets
(1) Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities providing
services renting or business management with useful life exceeding one accounting year. Fixed
assets are recognized when the following criteria are satisfied simultaneously: It is probable that the
economic benefits relating to the fixed assets will flow into the Company; the cost of the fixed assets
can be measured reliably.
(2) Depreciation of fixed assets
Estimated Annual
Depreciation Estimated useful
Category residual value depreciation rate
method life (Year)
rate (%) (%)
Buildings and Straight-line
10－455%9.50－2.11
Constructions
method
Special Straight-line
5－355%19.00－2.71
equipment
method
Universal Straight-line
4－255%23.75－3.80
equipment
method
Transportation Straight-line
65%15.83
equipment
method
Straight-line
Other equipment 4－16 5% 23.75－5.94
method
Except for fixed assets still in use after full depreciation the Company depreciates all fixed assets and
calculates the depreciation in the straight-line depreciation method.Based on the nature and use of fixed assets the Company determines their service life and estimated
net salvage value and reviews their service life estimated net salvage value and depreciation method
at the end of the year. Changes in the service life estimated net salvage value and depreciation
method of the same type of assets are treated as changes in accounting estimation.
1762024 Annual Report of Luzhou Laojiao Co. Ltd.
(3) Impairment test method and impairment provision accrued method of fixed assets
At the end of the period the fixed assets shall be measured at the lower of the book value and the
recoverable amount. If the recoverable amount of fixed assets is lower than the book value due to a
continuous decline in the market value or technological obsolescence damage or long-term idleness
a provision for impairment of the fixed assets shall be made for the difference between the recoverable
amount and the book value of individual fixed assets. If the recoverable amount of the individual asset
is difficult to estimate the Company will determine the recoverable amount of the asset group based on
the asset group to which the asset belongs. The impairment losses on fixed assets must not be
reversed in subsequent accounting periods once recognized.For fixed assets for which depreciation provision has been made the depreciation rate and depreciation
amount shall be remeasured according to the book value of the fixed assets (the original price of fixed
assets minus accumulated depreciation and provision for impairment) and the remaining service life.On the balance sheet date the fixed assets shall be measured at the lower of the book value and the
recoverable amount.
5. 22. Construction in progress
(1) Construction in progress refers to various construction and installation works carried out for the
construction or repair of fixed assets including the actual expenditure incurred in new construction
reconstruction and expansion and the net value of fixed assets transferred from the reconstruction and
expansion projects.
(2) Construction in progress is accounted on an individual project basis with actual cost valuation
method. The borrowing costs incurred before the projects reach the intended use condition shall be
included in the project cost. The fixed assets shall be carried forward in the month when the project is
qualified for acceptance and delivery for use. For those that have reached the intended use condition
but have not yet completed the final account from the date of reaching the intended use condition
according to the project budget construction cost or the actual cost of the project the cost transferred
to the fixed assets shall be determined according to the estimated value and the depreciation shall be
recognized; After the completion of the final account the original provisional value shall be adjusted
according to the actual cost but the amount of depreciation accrued shall not be adjusted.
(3) The loan interest and related expenses incurred during the construction period shall be capitalized
into the cost of the construction in Progress.
(4) On the balance sheet date the construction in progress is recognized at the lower of book value and
recoverable amount.
5. 23. Borrowing costs
(1) Scope of borrowing costs and its capitalization conditions
1772024 Annual Report of Luzhou Laojiao Co. Ltd.
The Company’s borrowing costs capitalized during period of capitalization are relevant loan expenses
directly attributable to the assets eligible for capitalization including interest thereon amortization of
discounts or premiums ancillary expenses and exchange differences incurred from foreign currency
loan etc.Borrowing costs are capitalized when the following three conditions are met simultaneously: * the
asset expenditure has occurred * the borrowing costs have occurred * the purchase and
construction activities necessary to make the assets reach the intended use condition have started.
(2) Recognition of capitalized amounts
The capitalized amount of borrowing expenses is calculated as follows: As for special loan borrowed for
acquiring and constructing or producing assets eligible for capitalization borrowing costs of special loan
actually incurred in the current period less the interest income of the loans unused and deposited in
bank or return on temporary investment should be recognized as the capitalization amount of borrowing
costs. As for general loans used for acquiring and constructing or producing assets eligible for
capitalization the interest of general loans to be capitalized should be calculated by multiplying the
weighted average of asset disbursements of the part of accumulated asset disbursements in excess of
special loans by the capitalization rate of used general loans. During the period of capitalization the
capitalized amount of interest of each accounting period shall not exceed the current actual interest of
the relevant loans. Where there are discounts or premiums on loans the amounts of interest for each
accounting period should be adjusted taking account of amortizable discount or premium amounts for
the period by effective interest method. Auxiliary expenses incurred from special loans before the
acquired or constructed assets eligible for capitalization reach the working condition for their intended
use or sale should be capitalized when they incur and charged to the costs of assets eligible for
capitalization; those incurred after the acquired or constructed assets eligible for capitalization reach the
working condition for their intended use or sale should be recognized as costs according to the
amounts incurred when they incur and charged to the current profit or loss.
(3) Recognition of capitalization rate
* For a special loan for the purchase and construction of fixed assets the capitalization rate is the
interest rate of the loan;
* For more than one special loan for the acquisition and construction of fixed assets the capitalization
rate is a weighted average interest rate of these loans.
(4) Capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are
interrupted abnormally and this condition lasts for more than three months the capitalization of
borrowing costs should be suspended. The borrowing costs incurred during interruption are charged to
1782024 Annual Report of Luzhou Laojiao Co. Ltd.
profit or loss for the current period and the capitalization of borrowing costs continues when the
acquisition and construction or production activities of the asset resume.
(5) Capitalization cessation of borrowing costs
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets
eligible for capitalization have reached the working condition for their intended use or sale. Borrowing
costs incurred after the assets eligible for capitalization have reached the working condition for their
intended use or sale should be recognized as the current profit and loss when they incur. If parts of the
acquired and constructed or produced assets are completed separately but the assets cannot be used
or sold externally until overall completion the capitalization of borrowing costs should cease at the time
of overall completion of the said assets.
5.24. Intangible assets
(1) Useful life and the basis for its determination estimation amortization methodology or
review procedures
Intangible assets refer to identifiable non-monetary assets that are owned or controlled by the Company
without a physical form.* Measurement method
A. Costs of intangible assets purchased include purchase price related tax and expenses and other
expenditure that can be distributed to the asset directly to reach its expected use.B. Intangible assets invested by investors shall be valued at the value agreed upon in the investment
contract or agreement;
C. Expenses on the research phase of internally researched and developed intangible assets shall be
included in the current profit and loss when they incur; The expenditures incurred in the development
stage of the internal research and development projects shall be recognized as intangible assets when
the following conditions are met; otherwise they shall be recorded into the current profit and loss when
they incur.a. It is technically feasible to finish intangible assets for use or sale;
b. It is intended to finish and use or sell the intangible assets;
c. The usefulness of methods for intangible assets to generate economic benefits shall be proved
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
d. It is able to finish the development of the intangible assets and able to use or sell the intangible
assets with the support of sufficient technologies financial resources and other resources.e. The expenditure attributable to the intangible asset during its development phase can be measured
1792024 Annual Report of Luzhou Laojiao Co. Ltd.
reliably.D. If payment of the purchase price of intangible assets can be deferred and exceeds normal credit
conditions the purchase has the nature of finance in fact and cost of the intangible asset shall be
determined on the basis of present value of the purchase price. The difference between the amount
actually paid and the present value of the purchase price should be recorded into current profit or loss
other than those should be capitalized during the credit period.* Useful life and the basis for its determination estimation amortization methodology or review
procedures
For intangible assets with limited useful life amortization shall be carried out according to the straight-
line method within the period that brings economic benefits to the enterprise. At the end of each period
the useful life and amortization method of intangible assets with limited service life shall be reviewed. If
there are differences with the original estimates corresponding adjustments shall be made.Intangible assets whose useful life is uncertain shall be regarded as intangible assets if it is impossible
to foresee the term in which intangible assets bring economic benefits to the enterprise. Intangible
assets with uncertain useful life shall not be amortized during the holding period and the life of
intangible assets shall be reviewed at the end of each period. If it is still uncertain after the review at the
end of the period the impairment test shall continue during each accounting period. At the end of each
period the useful life of intangible assets with uncertain service life shall be reviewed.* Impairment test
On the balance sheet date intangible assets are valued at the lower of book value and recoverable
amount.
(2) The scope of research and development expenditure collection and the related accounting
treatment
The R&D expenditure of the Company mainly include the materials consumed in the implementation of
R&D activities salaries of R&D department employees depreciation and amortization of assets such as
equipment and software used in research and development R&D testing R&D technical service fees
and licensing fees.The expenditures incurred in the development stage of the research and development projects shall be
recognized as intangible assets when the following conditions are met; otherwise they shall be
recorded into the current profit and loss when they occur.* It is technically feasible to finish intangible assets for use or sale;
* It is intended to finish and use or sell the intangible assets;
* The usefulness of methods for intangible assets to generate economic benefits shall be proved
1802024 Annual Report of Luzhou Laojiao Co. Ltd.
including being able to prove that there is a potential market for the products manufactured by applying
the intangible assets or there is a potential market for the intangible assets themselves or the intangible
assets will be used internally;
* It is able to finish the development of the intangible assets and able to use or sell the intangible
assets with the support of sufficient technologies financial resources and other resources.* The expenditure attributable to the intangible asset during its development phase can be measured
reliably.Development expenditures that have been recorded into profit and loss in previous periods are not
recognized as assets in subsequent periods. The capitalized expenditure in the development stage is
listed as development expenditure in the balance sheet and it will be recorded into intangible assets
from the date when the project reaches its intended purpose.
5. 25. Long-term assets impairment
On the balance sheet date the Company makes a judgment on whether there are signs of possible
impairment of long-term assets. If there are impairment indicators of non-current assets the Company
estimates the recoverable amount based on individual asset. If recoverable amount of individual asset
is difficult to be estimated the Company should recognize the recoverable amount of the asset group
which the individual asset belongs to.The recoverable amount is the higher of fair values less costs of disposal and the present values of the
future cash flows expected to be derived from the asset.If the measurement result of recoverable amount shows that recoverable amount of the non-current
assets is less than its book value the book value shall be written down to the recoverable amount and
the amount written down shall be recognized as the impairment loss of assets recorded into the current
profit and loss and the corresponding impairment provision of assets shall be made at the same time.Once impairment loss stated above is recognized reversal is not allowed in the subsequent accounting
periods.After the recognition of the impairment loss the depreciation or amortization expense of the impairment
asset shall be adjusted accordingly in the future period so as to systematically apportion the adjusted
book value of the asset (deducting the expected net salvage value) within the remaining service life of
the asset.The Company should perform impairment test for goodwill and intangible assets with indefinite life at
least at each year end no matter whether there is impairment indicator.Goodwill shall be combined with its related asset group or asset group portfolio so as to perform an
impairment test. When the Company performs an impairment test on relevant asset group or asset
group portfolio including goodwill if there are signs of impairment the Company shall firstly perform an
impairment test on asset group or asset group portfolio excluding goodwill and calculate the
recoverable amount and compare with the related book value recognize the corresponding impairment
1812024 Annual Report of Luzhou Laojiao Co. Ltd.
loss. Then the Company performs an impairment test on relevant asset group or asset group portfolio
including goodwill and compares the book value of the relevant asset groups or asset group portfolio
(including proportional book value of goodwill) with its recoverable amount. If the recoverable amount of
relevant asset group or asset group portfolio is less than its book value the Company shall recognize
impairment loss of goodwill.
5. 26. Long-term deferred expenses
Long-term deferred expenses shall be initially measured according to the actual costs incurred. It is
amortized using the straight-line method over the beneficial period. If it cannot benefit the following
accounting period the amortized value of the item that has not been amortized will be transferred to the
current profit and loss.
5. 27. Contract liabilities
The recognition method of contract liabilities: The Company presents contract assets or contract
liabilities on the balance sheet according to the relationship between the fulfillment of its contract
performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of
transferring commodities or providing services to customers as the Company has received or should
receive customers’ considerations are presented as contract liabilities.
5. 28. Employee benefits
(1) Accounting treatment method of short-term benefits
Short-term benefits are the benefits that the Company expects to pay in full within 12 months after the
reporting period in which the employee provided relevant services excluding the compensation for
employment termination. Accrued short term benefits will be recognized as liability during the
accounting period in which the employee is providing the relevant service to the Company. The liability
will be included in the current profit and loss or the relevant assets cost.
(2) Accounting treatment method of post-employment benefits
* Defined contribution plan
The defined contribution plan of the Company includes payments of basic pension and unemployment
insurance calculated according to the local payment base and proportion. The amount shall be included
into the profit and loss or the relevant assets cost for the accounting period in which the employee
provides the service to the Company.* Defined benefit plan
According to the formula determined by the expected accumulative projected unit credit method the
Company will record the benefit obligation generated by the defined benefit plan belonging to the period
1822024 Annual Report of Luzhou Laojiao Co. Ltd.
during in which the employee provides the service into the current profit and loss or the relevant assets
cost.The deficit or surplus resulting from the present value minus the fair value of the assets of a defined
benefit plan is recognized as a net liability or net asset of a defined benefit plan. If there is surplus in the
defined benefit plan the net assets of the defined benefit plan shall be measured at the lower of the
surplus and the upper limit of assets of the defined benefit plan.All defined benefit plan obligations including those expected to be paid within the twelve months
following the end of the annual reporting period in which the employee provides the service are
discounted based on the market yield and high quality corporate bonds in an active market that match
the duration and currency of defined benefit plan obligations on the balance sheet date.The service costs generated by the defined benefit plan and the net interest on net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or relevant assets cost;
Changes in net liabilities or net assets generated by the re-measurement of the defined benefit plan are
included in other comprehensive income and are not reversed to profit and loss in subsequent
accounting periods.At the time of settlement of the defined benefit plan the settlement gains or losses shall be recognized
according to the difference between the present value of the obligations of the defined benefit plan and
the settlement price determined on the settlement date.
(3) Accounting treatment method of termination benefits
Employee benefits liabilities shall be recognized and included into profit or loss for the current period on
the earlier date of the two following circumstances: a. When the Company is not able to withdraw the
benefits from termination of employment or resignation persuasion unilaterally; b. When the Company
recognizes costs and fees relevant to reforming the termination benefits payment. As for the termination
benefits that cannot be fully paid within 12 months after the end of the annual report period the
Company shall choose an appropriate discount rate and record it into current profit and loss based on it.
(4) Accounting treatment method of other long-term employee benefits
Other long-term employee benefits are all employee benefits other than short-term benefits post-
employment benefits and termination benefits.Other long-term employee benefits provided by the Company to the employee that meet the conditions
of the defined contribution plan shall be treated in accordance with the same principles of the defined
contribution plan; If the conditions for defined benefits are met net liabilities or net assets of other long-
term employee benefits shall be recognized and measured in accordance with the relevant principles of
the defined benefits plan.
1832024 Annual Report of Luzhou Laojiao Co. Ltd.
5. 29. Estimated liabilities
(1) Recognition criteria of estimated liabilities
If the contingent obligations meet the following conditions simultaneously the Company shall recognize
it as an estimated liability:
This obligation is the Company's current obligation; the performance of this obligation is highly likely to
result in an outflow of economic benefits from the Company; The amount of the obligation can be
measured reliably.
(2) Measurement method of estimated liabilities
The Company's estimated liabilities are initially measured in terms of the best estimate of the
expenditure of fulfilling the relevant current obligations.For determining the best estimate the Company takes various factors into account such as the risk
uncertainty and time value of money related to contingencies. If the time value of money has a
significant impact the best estimate is determined by discounting the relevant future cash outflows.The best estimate is processed as follows:
Where there is a continuous range (or range) of required expenditures and the probability of the
occurrence of various results within the range is same the best estimate is determined according to the
mean of the middle value of the range namely the mean value of the upper and lower limits.Where there is no continuous range (or range) of required expenditures or where there is a continuous
range but the possibility of various outcomes within the range is different if the contingencies involve a
single item the best estimate is determined according to the most likely amount; If the contingencies
involve more than one item the best estimate is calculated and determined according to various
possible results and relevant probabilities.Where all or part of the expenses required for the liquidation of the estimated liabilities of the Company
are expected to be compensated by a third party the amount of compensation shall be recognized as
an asset when it is basically confirmed that it can be received and the confirmed amount of
compensation shall not exceed the book value of the estimated liabilities.
5. 30. Share-based payment
(1) The type of share-based payment
Share-based payment is classified as equity-settled share-based payment and cash-settled share-
based payment.
(2) The method of determining the fair value of equity instruments
For equity-settled share-based payment related with employees the equity instrument is measured at
fair value. The cash-settled share-based payment shall be measured according to the fair value of the
1842024 Annual Report of Luzhou Laojiao Co. Ltd.
liabilities calculated and determined on the basis of shares or other equity instruments undertaken by
the Company.For the fair value of the stock option granted the fair value is determined by using the stock option
pricing model and the following factors are taken into account: the current price of the underlying
shares the exercise price of the option the risk-free interest rate within the period of the option the
option life and the expected volatility of the stock price.
(3) Recognition of the best estimate basis of instrument that can be exercised
For the equity-settled share-based payment settled immediately after the grant the fair value of the
equity instrument shall be included in the relevant costs or expenses on the grant date and the capital
reserve shall be increased accordingly. Grant date means the date on which the share-payment
agreement is approved.For the equity-settled share-based payment in which the services during waiting period are completed
and the performance conditions are met in return for services of employees on each balance sheet
date during waiting period the current obtained service shall be included in the relevant costs or
expenses and the capital reserves in accordance with the fair value of the equity instruments on the
grant date based on best estimate of the number of vested equity instruments and the subsequent
changes in fair value shall not be recognized. On each balance sheet date during waiting period the
Company makes the best estimate based on the latest available employee number change and other
subsequent information and modifies the number of equity instruments for the estimated vesting. On
the vesting date the final expected number of vesting instruments is the same as the actual number of
vesting instruments.
(4) Relevant accounting treatment of implement modification and termination of share-based payment
plan
For equity-settled share-based payment no adjustments will be made to the recognized costs and total
owners' equity after the vesting date. On the vesting date the Company shall recognize the share
capital and the equity premium according to the exercise situation and carry forward the capital reserve
recognized in the waiting period.No matter how it modifies the terms and conditions of the granted equity instruments or it cancels the
granted equity instruments or its settlement the equity instruments granted by the Company shall be
recognized at fair value on the grant date and it measures obtained the corresponding services unless
it cannot be vested because it cannot meet the vesting conditions of equity instruments (except market
conditions).
5.31. Revenue
Accounting policies for recognition and measurement of revenue disclosed by type of business
(1) Basic principles of revenue identification
1852024 Annual Report of Luzhou Laojiao Co. Ltd.
The Company recognizes revenue when it has fulfilled the performance obligations under the contract
that is when the customers obtain the control of relevant goods or services at the transaction price
allocated to the performance obligations.Performance obligations refer to the Company's promise that it will transfer clearly distinguishable
goods or services to customers under the contract.Obtaining control of related goods refers to that customers can control the use of the goods and obtain
almost all the economic benefits from the goods.The Company will evaluate the contract on the contract start date identify each individual performance
obligation contained in the contract and judge whether each individual performance obligation will be
performed within a certain period of time or at a certain point in time. If one of the following conditions is
met and the performance obligation is performed within a certain period of time the Company will
identify revenue within a period of time according to the performance progress: 1) The customers obtain
and consume the economic profits while the Company performs the contract. 2) The customers can
control the products under construction during the performance of the Company; 3) The products
produced during the performance of the Company cannot be replaced and the Company has the right
to collect payment for the completed performance accumulated during the entire contract period.Otherwise the Company will identify revenue when the customers obtain control rights of the relevant
goods or services.For the performance obligations performed within a certain period of time the Company will apply the
input-output method to identify the appropriate performance progress based on the nature of the goods
and services. The input-output method is to identify the performance progress based on the value of the
goods that have been transferred to the customers to the customers. When the performance progress
cannot be reasonably identified and the Company's incurred costs are expected to be compensated
the Company will identify the revenue according to the amount of the incurred costs until the
performance progress can be reasonably identified.
(2) The methods of revenue identification
The Company primarily sells baijiu which involve performance obligations fulfilled at a certain point in
time. For the recognition of the revenue of domestic products the following conditions must be met:
The Company has delivered the products to the customer as per the contract and the customer has
accepted the goods; payment has been received or a receipt voucher has been obtained and the
relevant economic benefits are likely to flow in; and control of the goods has transferred to the customer.The following requirements must be met to recognise the revenue of export products: The Company
has declared the products according to the contract obtained the bill of lading received the payment or
obtained the receipt voucher and relevant economic benefits are likely to flow in and control of the
goods has transferred to the customer. The following requirements must be met to recognise the
revenue of sales through third-party platforms or company-owned websites: The sales platform is
responsible for delivering the goods to the customer or the Company entrusts a logistics company to
1862024 Annual Report of Luzhou Laojiao Co. Ltd.
deliver the goods to the customer and revenue is recognised upon receipt of the platform settlement
statement or upon delivery of the goods.Different business models for the same type of business involve different revenue recognition and
measurement methods
N/A
5.32. Contract costs
Contract costs comprise incremental costs incurred as the Company obtains a contract and costs for
contract performance. Incremental costs incurred as the Company obtains a contract refer to those
costs which will not incur without entering into a contract (such as sales commission). If it is expected
that the costs are recoverable the Company will recognize the costs incurred to obtain a contract as
one form of assets. In case that the term of asset amortization is shorter than one year or one normal
operating cycle the costs will be recognized as profit and loss of the current period after occurrence.If the costs incurred from contract performance fall outside the inventory or the scope of other
enterprise accounting standards and satisfy all of the following conditions the Company will recognize
the costs for contract performance as assets: a) The costs are directly related to one existing contract
or contract that is expected to be obtained; b) The costs enrich the Company's resources for future
contract performance (including continual fulfillment); c) The costs are estimated to be recovered.Assets recognized from costs incurred to obtain a contract and costs for contract performance
(hereinafter referred to as "assets related to contract costs") will be amortized based on the basis the
same with the income from commodities or services related to the assets and will be recognized as
profit and loss of the current period. In case that the book value of assets related to contract costs is
higher than the difference of the two items below the Company will set aside provisions for assets
impairment to deal with the extra part and recognize that part as impairment losses: a) Estimated
residual consideration to be obtained from transfer of commodities or services related to the assets; b)
Estimated costs incurred from transfer of the relevant commodities or services.
5. 33. Government grants
Government grants are monetary assets and non-monetary assets acquired free of charge by the
Company from the government like fiscal subsidies.
(1) Judgment basis and accounting treatment method of government grants related to assets
Government grants related to assets are government grants that are acquired by the Company and
used for forming long-term assets through purchasing and constructing or other ways. If the
government documents do not clearly specify the target of the subsidy the Company shall separately
1872024 Annual Report of Luzhou Laojiao Co. Ltd.
explain judgment basis of classifying the government grants into the government grants related to
assets or income.Accounting method: it shall be recognized as deferred income allocated evenly over the useful lives
(the period of depreciation and amortization) of the relevant assets from the month of commence of
depreciation or amortization when the relevant assets reaching the intended use condition and
included in the current profit or loss. However government grants measured at the nominal amount
shall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of government grants related to income
Government grants related to income are government grants other than government grants related to
assets;
Accounting method:
* If it is used to compensate the Company’s relevant expenses or losses in future periods it should be
recognized as deferred income and included into the current profit and loss or written off of the related
costs when the relevant expenses losses are recognized.* If it is used to compensate the Company’s relevant expenses or losses incurred it is directly
included into the current profit and loss on acquisition or written off of the related costs.* Recognition time-point of government grants
Government grants are recognized when the Company can meet the attached conditions for the
government grants and the Company can receive the grants.* Measurement of government grants
If a government grant is a monetary asset it shall be measured in the light of the received or receivable
amount. If a government grant is a non-monetary asset it shall be measured at its fair value; and if its
fair value cannot be obtained in a reliable way it shall be measured at a nominal amount.
5. 34. Deferred tax assets or deferred tax liabilities
The Company adopts the balance sheet liability method to account for income tax.The Company recognizes deferred tax assets when the following conditions are met simultaneously:
(1) Temporary differences are highly likely to be reversed in the foreseeable future;
(2) Taxable income that may be used to offset the deductible temporary difference is likely to be
obtained in the future and is limited to the amount of taxable income that is likely to be obtained.On each balance sheet date the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
1882024 Annual Report of Luzhou Laojiao Co. Ltd.
The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income except for the income tax generated from the enterprise merger
transactions or events directly recognized in the owner's equity.Basis for deferred income tax assets and deferred income tax liabilities presented as a net amount after
offset:
When the following conditions are simultaneously met deferred income tax assets and deferred income
tax liabilities are presented as a net amount after offset:
(1) The enterprise has the legal right to settle the current income tax assets and current income tax
liabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities were related to the income tax levied
by the same tax administration department on the same taxpayer or different taxpayers but during the
period when each significant deferred income tax assets and liabilities would be reversed in the future
the involved taxpayer intended to settle the current income tax assets and liabilities on a net basis or to
acquire assets and settle liabilities at the same time.
5. 35. Lease
(1) Accounting treatment with the Company as lessee
* Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as
a lessee for simplified treatment
On the beginning date of the lease term the Company will recognize the lease with a lease term not
exceeding 12 months and exclude the purchase option as a short-term lease. Leases with a value
below CNY 40000 when a single leased asset is a brand-new asset are identified as low-value asset
leases. If the Company sublets or expects to sublet the leased assets the original lease shall not be
deemed as a low-value asset lease.The Company records the payments of short-term and low-value asset leases incurred during each
period of the lease term in the relevant asset costs or the profit or loss for the current period by the
straight-line method.The Company will recognize right-of-use assets and lease liabilities on the inception date of the lease
term excluding the above short-term and low-value asset leases.* Right-of-use assets
Right-of-use assets are initially measured at costs including: A. The initial measurement amount of
lease liabilities; B. If there is a lease incentive for the lease payment paid on or before the start date of
1892024 Annual Report of Luzhou Laojiao Co. Ltd.
the lease term the relevant amount of the lease incentive already enjoyed shall be deducted; C. Initial
direct expenses incurred by the Company; D. The expected cost to be borne by the Company in order
to dismantle and remove the assets leased restore original state of the place where the assets leased
are in or restore the assets leased to the state stipulated in the lease terms.* Lease liabilities
The Company initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term. When calculating the present value of lease
payments the Company uses the interest rate implicit in lease as the rate of discount. If the interest
rate implicit in lease cannot be determined the Company’s incremental lending rate is used as the rate
of discount.After the commencement of the lease term the Company uses the cost model for subsequent
measurement of right-of-use assets depreciates right-of-use assets on a straight-line basis calculates
the interest expense on the lease liability within the lease term and includes it in the current profit or
loss unless such interest charge is stipulated to be included in the underlying asset cost. Variable lease
payments that are not included in the measurement of the lease obligation should be included in the
current profit or loss when they are actually incurred unless such payments are stipulated to be
included in the underlying asset cost.After the commencement of the lease term the Company remeasures the lease liability and adjusts the
corresponding right-of-use asset and if the carrying value of the right-of-use asset has been reduced to
zero but the lease liability is subject to further reduction the difference is recorded in current profit or
loss: (1) When there is a change in the valuation of the purchase option renewal option or termination
option or actual exercise the Company remeasures the lease liabilities at the present value of the
lease payments after the change and the revised discount rate; (2) When there is a change in the
actual fixed payment the estimated payable of the residual value of the guarantee the index or rate
used to confirm the lease payment the Company calculated the present value based on the changed
lease payment amount and the original discount rate to remeasure the lease liabilities. However where
changes in lease payments arise from changes in floating interest rates a revised discount rate was
used to calculate the present value.
(2) Accounting treatment with the Company as lessor
* Lease classification
The Company classifies leases into finance leases and operating leases at the inception of leases. A
finance lease refers to a lease where almost all the risks and rewards related to the ownership of the
leased asset are substantially transferred regardless of whether the ownership is eventually
transferred or not. All leases other than finance leases are classified as operating leases.* Operating leases
1902024 Annual Report of Luzhou Laojiao Co. Ltd.
The Company recognizes the lease payments receivable of the operating lease as rental earnings in
each period within the lease term on a straight-line basis or according to other systematic and
reasonable methods. The initial direct costs related to the operating lease are capitalized amortized
within the lease term on the same basis as the recognition of rental earnings and included in profit or
loss for the current period. The received variable lease payments related to the operating lease that are
not included in the lease payments receivable are included in profit or loss for the current period when
they are actually incurred.* Finance leases
On the commencement date of the lease term the Company recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. In the initial measurement
of finance lease receivables the sum of the unsecured residual value and the present value of the
lease payments receivable not yet received on the commencement date of the lease term discounted at
the interest rate implicit in lease is the entry value of the finance lease receivables. The Company
calculates and recognizes the interest income in each period within the lease term at a fixed interest
rate implicit in the lease. The received variable lease payments that are not included in the
measurement of the net investment in the lease are included in profit or loss for the current period when
they are actually incurred.
5.36. Income tax expenses
The Company adopts the balance sheet liability method to account for income tax.The Company recognizes deferred tax assets when the following conditions are met simultaneously:
1. Temporary differences are highly likely to be reversed in the foreseeable future;
2. Taxable income that may be used to offset the deductible temporary difference is likely to be obtained
in the future and is limited to the amount of taxable income that is likely to be obtained.On each balance sheet date the current income tax liabilities (or assets) incurred in the current period
or prior periods shall be measured by the Company in light of the expected payable (refundable)
amount of income taxes according to the tax law; The deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.The Company shall review the carrying amount of deferred income tax assets on each balance sheet
date. The current income tax and deferred income tax shall be recorded into the current profit and loss
as income tax expense or income except for the income tax generated from the enterprise merger
transactions or events directly recognized in the owner's equity.
1912024 Annual Report of Luzhou Laojiao Co. Ltd.
5. 37. Changes in significant accounting policies and accounting estimates
5.37.1. Changes in significant accounting policies
□ Applicable □ N/A
Unit: CNY
Statement line item
Content and reasons for accounting policy changes Amount affected
significantly affected
On October 25 2023 the Ministry of Finance issued the
"Interpretation No. 17 to the Accounting Standards for
Business Enterprises" (Accounting (2023) No. 21).Provisions "On the division of current liabilities and non-
None
current liabilities" "On the disclosure of supplier
financing arrangements" and "On the accounting
treatment of sale and leaseback transactions" have come
into effect on January 1 2024.On August 1 2023 the Ministry of Finance issued the
"Interim Provisions on Accounting Treatment Related to
Enterprise Data Resources" (Accounting [2023] No. 11)
which regulates the relevant accounting treatment of None
data resources and puts forward specific requirements
for the disclosure of data resources. The provisions have
come into effect on January 1 2024.On December 6 2024 the Ministry of Finance issued the
"Interpretation No. 18 to the Accounting Standards for
Business Enterprises" (Accounting (2024) No. 24) which
stipulates that the estimated liabilities arising from the
product warranties of the guarantee type that does not
belong to the single performance obligation shall be
None
included in the "main business cost" and "other business
cost" according to the determined amount and shall no
longer be included in the "selling and distribution
expenses" which shall be implemented from the date of
publication. And the Company has adopted the said
policy from January 1 2024.
5.37.2. Changes in significant accounting estimates
□ Applicable □ N/A
5.37.3. Adjustments to Financial Statement Items at the Beginning of the Year of the First
Implementation of the New Accounting Standards Implemented since 2024
□ Applicable □ N/A
6. Taxes
6.1. Major tax types and rates
Tax type Tax base Tax rate
1922024 Annual Report of Luzhou Laojiao Co. Ltd.
Value-added tax Taxable sales income 13 % 9% 6%
Urban maintenance and construction
Taxable turnover tax 7% 5%
tax
Corporate income tax Taxable income 25% 15% 16.5% 9% 0%
Consumption tax (based on price) Baijiu tax price or ex-factory price 20%
Consumption tax (based on quantity) Quantity of baijiu CNY 1.00/kg
Education surcharge Taxable turnover tax 3%
Local education surcharge Taxable turnover tax 2%
Original value of the property*70%;
Property tax 1.2% 12%
house rent
Land use tax Land area CNY 1.2-20/m2
Others According to national regulation
Tax payment subject using different corporate income tax rates the corporate income tax rates are
as follows:
Company name Corporate income tax rate
Luzhou Red Sorghum Modern Agricultural Development
Exempted from corporate income tax
Co. Ltd.Guangxi Luzhou Laojiao Imported Liquor Industry Co.
9%
Ltd.Luzhou Laojiao International Trade (Hainan) Co. Ltd. 15%
Luzhou Pinchuang Technology Co. Ltd. 15%
Luzhou Laojiao International Development (Hong Kong)
16.5%
Co. Ltd.Luzhou Laojiao Commercial Development (North
21%-40%
America) Co. Ltd.Mingjiang Co. Ltd. 21%-40%
6.2. Tax preferences
(1) According to Announcement of the Ministry of Finance State Taxation Administration and National
Development and Reform Commission on Continuing the Corporate Income Tax Policies Concerning
the Western Development Strategy (No. 23 in 2020 Ministry of Finance) from 1 January 2021 to 31
December 2030 companies are located in the western region whose primary business is listed in the
Catalogue of Encouraged Industries in the Western Region and the primary business income
accounting for over 60% of the total enterprise income. These companies shall be subject to the
corporate income tax at a reduced rate of 15%. The Company's holding subsidiary Luzhou Pinchuang
Technology Co. Ltd. whose primary business income meet the requirements of scope and standard of
the Catalogue of Encouraged Industries in the Western Region is paid at the rate of 15% for corporate
income tax.
(2) According to Article 27 of the Corporate Income Tax Law of the People's Republic of China and
Article 86 Item 1 of the Implementation Regulations of the Corporate Income Tax Law companies are
exempted from enterprise income tax when they engage in agricultural forestry animal husbandry and
fishery industries. The holding subsidiary of the Company Luzhou Red Sorghum Modern Agricultural
Development Co. Ltd. is engaged in the cultivation and sale of organic sorghum and enjoys the
reduction of corporate income tax preferences.
1932024 Annual Report of Luzhou Laojiao Co. Ltd.
(3) According to the Article 15 Item 1 of the Provisional Regulations on Value-Added Tax agricultural
producers sell self-produced agricultural products exempt from value-added tax. The holding subsidiary
of the Company Luzhou Red Sorghum Modern Agricultural Development Co. Ltd. is engaged in the
cultivation and sale of organic sorghum and enjoys the value-added tax exemption.
(4) According to the Article 3 Item 7 of the Notice on Revise of Interim Measures of Accelerating the
Development in Headquarters Economy of China-Malaysia Qinzhou Industrial Park till 31 December
2025 the enterprises in the Qinzhou Industrial Park that enjoy 15% of tax rate of Western Development
with the half reduction in the tax period of preferential policies shall enjoy the local share of corporate
income tax exemption (namely 40% of corporate income tax was exempted and the proportion
adjusted by the state shall be executed according to new proportion); Guangxi Luzhou Laojiao Imported
Liquor Industry Co. Ltd. the wholly-owned subsidiary of the Company pays corporate income tax at
the rate of 9% according to the tax preference policies.
(5) According to Announcement on Preferential Corporate Income Tax Policies in Hainan Free Trade
Port (Cai Shui [2020] No. 31) the Company's wholly-owned subsidiary Luzhou Laojiao International
Trade (Hainan) Co. Ltd. whose primary business income meet the requirements of scope and
standard of the Catalogue of Encouraged Industries in Hainan Free Trade Port is paid at the rate of 15%
for corporate income tax.
7. Notes to the main items of the consolidated financial statements (All
currency unit is CNY except other statements)
7.1. Cash and cash equivalents
Unit：CNY
Item Closing Balance Opening Balance
Cash 27640.75 24059.24
Bank deposit 33506712545.24 25916630894.83
Other cash and cash equivalents 71656645.34 35370137.21
Total 33578396831.33 25952025091.28
Including: Total deposit
104980028.9693987202.68
outbound
Other statements:
Note 1: The deposit outbound is the balance of cash and cash equivalents of the foreign holding
subsidiary of the Company.Note 2: The closing balance of other monetary funds mainly consists of the remaining funds in
securities accounts of the Company in the amount of CNY 2817992.63 bank guarantee deposits of
CNY 10000000.00 for the subsidiary Luzhou Laojiao Sales Co. Ltd. the closing balance of funds in
self-owned accounts on third-party platforms for subsidiaries such as Luzhou Laojiao Electronic
Commerce Co. Ltd. Luzhou Laojiao New Retail Co. Ltd. and Luzhou Laojiao Nostalgic Liquor
Marketing Co. Ltd. in the amount of CNY 40838649.27 and the court frozen funds of Luzhou
Laojiao Brewing Co. Ltd. in the amount of CNY 18000003.44.Note 3: There is no special benefit arrangement such as establishing a fund co-management account
with related parties in the current period.
1942024 Annual Report of Luzhou Laojiao Co. Ltd.
Liquor and wine manufacturing companies shall disclose in detail whether there are special interest
arrangements such as establishing co-management accounts with related parties.□Applicable □ N/A
7.2. Held-for-trading financial assets
Unit：CNY
Item Closing Balance Opening Balance
Financial assets measured at fair
value with their changes included into 1694282295.97 1426992098.83
current profits/losses
Including:
Wealth management products 1694282295.97 1426992098.83
Including:
Total 1694282295.97 1426992098.83
Other statements:
Note 1: The closing balance is the Company’s wealth management products of the collective asset
management plan purchased from securities-type companies which are measured at fair value based
on the amount calculated on the basis of the net value of relevant asset units published on the official
website of the asset manager.
7.3. Accounts receivable
7.3.1. Disclosure by aging
Unit：CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 11602423.49 18489106.27
2-3 years 263509.80
Total 11602423.49 18752616.07
7.3.2. Disclosure by withdrawal methods for bad debts
Unit：CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Account
s
receiva
ble
tested 372217 372217 100.00
1.98%
for .14 .14 %
impairm
ent
individu
ally
Includin
g:
Account 372217 1.98% 372217 100.00
1952024 Annual Report of Luzhou Laojiao Co. Ltd.
s .14 .14 %
receiva
ble that
are not
individu
ally
material
but for
which a
separat
e
provisio
n for
bad
debts
has
been
made
Account
s
receiva
ble
tested 11602 100.00 580121 11022 18380 919019 17461
5.00%98.02%5.00%
for 423.49 % .18 302.31 398.93 .95 378.98
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
ble
tested
for
impairm
11602100.00580121110221838091901917461
ent on 5.00% 98.02% 5.00%
423.49%.18302.31398.93.95378.98
the
portfolio
with
charact
eristics
of credit
risk
11602100.005801211102218752100.001291217461
Total 5.00% 6.89%
423.49%.18302.31616.07%37.09378.98
Accounts receivable tested for impairment individually: CNY 0
Unit：CNY
Opening Balance Closing Balance
Name Provision for Provision for
Book balance Book balance Proportion Reason
bad debt bad debt
The amount is
Beijing Secoo
not expected
Trading 372217.14 372217.14
to be
Limited1
recovered
Total 372217.14 372217.14
Note: 1 The amount due from Beijing Secoo Trading Limited was fully recovered in the year and the
corresponding balance of the provision for bad debt at the beginning of the year was recovered.
1962024 Annual Report of Luzhou Laojiao Co. Ltd.
Accounts receivable tested for impairment by the portfolio: CNY 580121.18
Unit：CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 11602423.49 580121.18 5.00%
Including: within 1 year 11602423.49 580121.18 5.00%
Other portfolio
Total 11602423.49 580121.18
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.If adopting the general mode of expected credit loss to withdraw provision for bad debt of accounts
receivable
□Applicable □ N/A
7.3.3. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit：CNY
Changes in current period
Opening Closing
Type
Balance Reversal or Allowance Write-off Other Balance
recovery
Accounts
receivable
with a single
372217.14372217.14
provision for
expected
credit loss
Accounts
receivable
with expected 919019.95 338898.77 580121.18
credit loss by
portfolio
Total 1291237.09 711115.91 580121.18
7.3.4. Top five entities with the largest balances of accounts receivable and contract assets
Unit：CNY
Closing balance
of provision for
Proportion to
bad debt
Closing balance total closing
Closing balance Closing balance provision of
of accounts balance of
Company name of accounts of contract accounts
receivable and accounts
receivable assets receivable and
contract assets receivable and
impairment
contract assets
allowance of
contract assets
Beijing User
Growth Network
4228353.654228353.6536.45%211417.68
Technology Co.Ltd.China Duty Free
International Co. 2724518.70 2724518.70 23.48% 136225.94
Ltd.Hangzhou
2453739.292453739.2921.15%122686.96
Youzan
1972024 Annual Report of Luzhou Laojiao Co. Ltd.
Technology Inc.Sazerac
1103625.271103625.279.51%55181.26
Company Inc
Chengdu
Kuaigou
476804.65476804.654.11%23840.23
Technology Co.Ltd.Total 10987041.56 10987041.56 94.70% 549352.07
7.4. Accounts receivable financing
7.4.1. Accounts receivable financing listed by category
Unit：CNY
Item Closing Balance Opening Balance
Bank acceptance bill 1801947455.781 5938171007.93
Total 1801947455.78 5938171007.93
Notes: 1 The closing balance of accounts receivables financing decreased by CNY 4136000000 or
69.65% compared with the opening balance which was mainly due to the impact of bill endorsement
and discount as well as remittance of bills for collection at maturity.
7.4.2. Disclosure by withdrawal methods for bad debts
Unit：CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Incl
uding:
Provisio
n 18019 18019 59381 59381
100.00100.00
allowan 47455. 47455. 71007. 71007.%%
ce by 78 781 93 93
portfolio
Incl
uding:
Bank 18019 18019 59381 59381
100.00100.00
accepta 47455. 47455. 71007. 71007.%%
nce bill 78 78 93 93
18019180195938159381
100.00100.00
Total 47455. 47455. 71007. 71007.%%
78789393
Note: 1. The notes receivable under accounts receivable financing comprise bank acceptance and
the Company believes that the bank acceptance it holds does not pose significant credit risks. It does
not anticipate significant losses due to defaults by banks or other drawers therefore no provision for
credit impairment losses has been recognized.Provision allowance by portfolio: CNY 0
Unit：CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 1801947455.78
1982024 Annual Report of Luzhou Laojiao Co. Ltd.
Other portfolio
Total 1801947455.78
Notes to the determination basis for the portfolio:
As bank acceptance has low credit risks no bad debt provision is made.
7.4.3. Accounts receivable financing that have been endorsed to other parties or discounted
by the Company but have not expired at the end of the period
Unit：CNY
Item Derecognition at period-end Not derecognition at period-end
Bank acceptance bill 7494365701.361
Total 7494365701.36
Note: 1 Due to the fact that the acceptor of bank acceptance is a commercial bank which is of high
credit level the likelihood of default at the maturity of bank acceptance is low. Therefore the
Company derecognizes bank acceptance that has been endorsed or discounted.
7.4.4. Changes in accounts receivable financing in the reporting period and fair value
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Notes receivable 5938171007.93 23043222841.01 27179446393.16 1801947455.78
Total 5938171007.93 23043222841.01 27179446393.16 1801947455.78
Note: Accounts receivable financing represents bank acceptance with a short remaining maturity.The book value closely aligns with the fair value; hence the book value is used as its fair value.
7.4.5. Other statements
7.5. Other receivables
Unit：CNY
Item Closing Balance Opening Balance
Other receivables 13053645.00 22716893.12
Total 13053645.00 22716893.12
7.5.1. Other receivables
7.5.1.1. Other receivables disclosed by nature
Unit：CNY
Nature Closing book balance Opening book balance
Intercourse funds 10388747.89 17537144.37
Petty cash 243853.22 214206.23
Saving deposits involving contract
1 124099253.17 127564873.50 disputes
Total 134731854.28 145316224.10
Note: 1 The saving deposits involving contract disputes are three deposits amounting to CNY
500000000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and Nanyang
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
1992024 Annual Report of Luzhou Laojiao Co. Ltd.
2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement in
contract disputes and have thus been transferred into “other receivables”. In 2024 CNY 3465620.33
of the saving deposits involving contract disputes was recovered. The closing balance of this account
as at the date of the statement was CNY 124099253.17.
7.5.1.2. Disclosure by aging
Unit：CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 9264632.85 15696066.07
1-2 years 139760.59 38347.61
2-3 years 6347.61 293480.00
Over 3 years 125321113.231 129288330.42
3-4 years 36880.00 11500.00
4-5 years 22800.00
Over 5 years 125284233.23 129254030.42
Total 134731854.28 145316224.10
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
savings deposit of CNY 124099253.17 which are yet to be recovered due to contractual disputes.
7.5.1.3. Disclosure by withdrawal methods for bad debts
□Applicable □ N/A
Unit：CNY
Closing balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Provisio
n for
bad 124099 120000 40992 127614 120050 75648
92.11%96.70%87.82%94.07%
debt by 253.17 000.00 53.17 873.50 000.00 73.50
individu
al item
Incl
uding:
Other
receiva
bles
that are
individu
ally
material
and for 124099 120000 40992 127564 120000 75648
92.11%96.70%87.79%94.07%
which a 253.17 000.00 53.17 873.50 000.00 73.50
separat
e
provisio
n for
bad
debts
has
2002024 Annual Report of Luzhou Laojiao Co. Ltd.
been
made
Other
receiva
bles
that are
not
individu
ally
material
but for
50000.50000.100.00
which a 0.03%
0000%
separat
e
provisio
n for
bad
debts
has
been
made
Provisio
n for
bad 10632 16782 89543 17701 25493 15152
7.89%15.78%12.18%14.40%
debt by 601.11 09.28 91.83 350.60 30.98 019.62
the
portfolio
Incl
uding:
Other
receiva
bles
tested
for
impairm
ent on 10632 16782 89543 17701 25493 15152
7.89%15.78%12.18%14.40%
the 601.11 09.28 91.83 350.60 30.98 019.62
portfolio
with
charact
eristics
of credit
risk
134731100.0012167813053145316100.0012259922716
Total 90.31% 84.37%
854.28%209.28645.00224.10%330.98893.12
Provision for bad debt by individual item: CNY 120000000
Unit：CNY
Opening Balance Closing Balance
Name Provision for Provision for
Book balance Book balance Proportion Reason
bad debt bad debt
Saving
deposits Provision
involving 127564873.50 120000000.00 124099253.17 120000000.00 96.70% based on
contract legal opinion
disputes
Beijing The amount is
Secoo not expected
50000.0050000.00
Trading to be
Limited recovered
Total 127614873.50 120050000.00 124099253.17 120000000.00
Provision for bad debt by the portfolio: CNY 1678209.28
Unit：CNY
2012024 Annual Report of Luzhou Laojiao Co. Ltd.
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 10632601.11 1678209.28 15.78%
Including: within 1 year 9264632.85 463231.64 5.00%
1-2 years 139760.59 13976.06 10.00%
2-3 years 6347.61 1269.52 20.00%
3-4 years 36880.00 14752.00 40.00%
4-5 years 80.00%
Over 5 years 1184980.06 1184980.06 100.00%
Other portfolio
Total 10632601.11 1678209.28
Notes to the determination basis for the portfolio:
Accounts receivable of the same age have similar credit risk characteristics.Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit：CNY
First stage Second stage Third stage
Provision for bad Expected loss in the Expected credit loss Expected loss in the
debt duration (credit
Total
of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of January
2549330.98120050000.00122599330.98
12024
Balance of January
1 2024 in the current
period
Reversal of the
871121.7050000.00921121.70
current period
Balance of
1678209.28120000000.00121678209.28
December 31 2024
The basis for the division of each stage and the withdrawal proportion of bad debt provision
The basis for division is that other receivables with single bad debt provision represent credit
impairment losses incurred since initial recognition (Stage 3) while the remaining portion is
categorized based on expected credit risk. Withdrawal proportions of bad debt provision are15.78%
for Stage 1 and 96.70% for Stage 3 totaling 90.31%.Changes of book balance with significant amount changed of loss provision in the current period
□Applicable □ N/A
7.5.1.4. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit：CNY
Changes in current period
Opening Closing
Type
Balance Reversal or Write-off or Allowance Other Balance
recovery verification
Bad debt
provision for
122599330.98921121.70121678209.28
other
receivables
Total 122599330.98 921121.70 121678209.28
2022024 Annual Report of Luzhou Laojiao Co. Ltd.
7.5.1.5. Top five entities with the largest balances of the other receivables
Unit：CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Saving deposits Saving deposits
involving involving 124099253.17 Over 5 years 92.11% 120000000.00
contract disputes contract disputes
Luzhou Intercourse
Within 1 year 1-
Qianheng Labor funds and other 224296.76 0.17% 14922.37
2 years
Service Co. Ltd. accounts
TOWNE
CENTRE Intercourse
OFFICES-PI funds and other 134503.47 Within 1 year 0.10% 6725.17
PROPERTIES accounts
NO 111 LLC
Chen Weirong Petty cash 113853.22 Within 1 year 0.08% 5692.66
Liao Wuhong Petty cash 80000.00 Within 1 year 0.06% 4000.00
Total 124651906.62 92.52% 120031340.20
7.6. Prepayment
7.6.1. Aging analysis
Unit：CNY
Closing Balance Opening Balance
Aging
Amount Proportion Amount Proportion
Within 1 year 115124824.62 92.95% 196801356.07 97.28%
1-2 years 4202267.01 3.39% 1685909.93 0.83%
2-3 years 722670.32 0.58% 2987977.50 1.48%
Over 3 years 3820520.70 3.08% 833943.20 0.41%
Total 123870282.65 202309186.70
Reasons for significant prepayments whose aging is longer than 1 year without timely settlement:
There is no significant prepayment whose aging is longer than 1 year.
7.6.2. Top five entities with the largest balances of prepayment
Proportion to the total
Company Name Closing Balance Aging closing balance of
prepayment
Within 1
Shanghai Merlot Advertising Co. Ltd. 16020000.00 12.93%
year
Within 1
Luzhou Western Gas Co. Ltd. 12010808.11 9.70%
year
Luzhou Power Supply Company of State Grid Within 1
9799623.427.91%
Sichuan Electric Power Company year
Within 1
Luzhou Laojiao Group Co. Ltd. 9180164.89 7.41%
year
Sports Equipment Center of General Administration Within 1
7105776.785.74%
of Sport of China year
Total 54116373.20 43.69%
2032024 Annual Report of Luzhou Laojiao Co. Ltd.
7.7. Inventories
Whether the Company needs to comply with the disclosure requirements of real estate industry
No
7.7.1. Categories of Inventories
Unit：CNY
Closing Balance Opening Balance
Provision for Provision for
stock stock
obsolescence obsolescence
Category or impairment or impairment
Book Balance Book Value Book Balance Book Value
provision of provision of
contract contract
performance performance
costs costs
114546157.4114546157.4112835009.7112835009.7
Raw materials
1177
Goods in 1073954576 1073954576 9169963972 9169963972
progress 4.821
4.82.73.73
Finished 2505218578 2505218578 2316583144 2316583144
goods .73 .73 .62 .62
Goods in
33483975.0033483975.0022661820.3422661820.34
transit
1339279447133927944711622043941162204394
Total
5.965.967.467.46
Note: 1 The increase in goods in progress was mainly due to the Company’s promotion of high-
quality production capacity reserve and quality improvement plan which increased the strategic
reserve of high-quality base liquor.The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.
7.7.2. Notes to the closing balance of inventories including capitalized borrowing expense
There was no capitalized borrowing expense in the closing balance of inventories.
7.8. Other current assets
Unit：CNY
Item Closing Balance Opening Balance
VAT to be deducted 217415843.41 164220376.30
Corporate income tax 20441701.15 8733293.33
Other taxes 3224364.33 3731062.34
Total 241081908.89 176684731.97
Other statements:
The value-added tax expected to be deducted in the next fiscal year and corporate income tax and
other taxes are disclosed in other current assets.
2042024 Annual Report of Luzhou Laojiao Co. Ltd.
7.9. Other equity instrument investment
Unit：CNY
Reason
for
assigning
Gains Losses Accumulat Accumulat
to
recorded recorded ive gains ive losses
Dividend measure
in other in other recorded recorded
income in fair
comprehe comprehe in other in other
Closing Opening recognize value of
Item nsive nsive comprehe comprehe
Balance Balance d in which
income in income in nsive nsive
current changes
the the income at income at
year included
current current the end of the end of
other
period period the period the period
comprehe
nsive
income
Financial
assets
assigned
to
measure
in fair
value of
which
changes
included
other
comprehe
nsive
income:
Including:
Guotai
Haitong
Securities
Co. Ltd.According
(formerly
to the
known as
mode of“Guotai 2196409 1752417 4439927 2069218 6477348.managing
Junan 94.03 15.34 8.69 37.27 35
assets by
Securities
managem
Co. Ltd.ent layer
and
renamed
in April
2025)
According
China
to the
Tourism
mode of
Group 6006939 8485448 2478509 9112929 2015648.managing
Duty Free 9.64 9.68 0.04 5.64 45
assets by
Corporatio
managem
n Limited
ent layer
According
to the
Luzhou mode of
78356319673383183775127236313905280.
Bank Co. managing
8.997.698.708.9900
Ltd. assets by
managem
ent layer
Guotai According
Junan to the 2261183 2261183
Investmen mode of 4.24 4.24
t managing
Managem assets by
2052024 Annual Report of Luzhou Laojiao Co. Ltd.
ent Co. managem
Ltd. ent layer
According
to the
North
mode of
Chemical 1587008 1280551 3064567. 1484008
78177.75 managing
Industries 3.24 5.44 80 3.24
assets by
Co. Ltd.managem
ent layer
According
to the
Guojiu Big mode of
8799784.8799784.1200215.
Data Co. managing
787822
Ltd. assets by
managem
ent layer
Sichuan
China
Baijiu
Golden
Triangle According
Brand to the
Operation mode of
1846291.1846291.5752926.2500000.
Developm managing
63633700
ent Co. assets by
Ltd. and managem
other ent layer
equity
instrument
investmen
ts
4071947402893447463844316260248998298082431497645
Total
06.5568.806.498.7439.507.234.55
Categories of non-trading equity instrument investment in the current period:
Unit：CNY
Reason for
Amount of
assigning to Reason of
other
measure at other
comprehen
Recognized fair value and comprehensiv
Accumulative Accumulative sive
Item dividends changes e income
gains losses income
income recorded into transferred to
transferred
other retained
to retained
comprehensiv earnings
earnings
e income
According to
Guotai the mode of
Haitong managing
6477348.35206921837.27
Securities assets by
Co. Ltd. management
layer
China According to
Tourism the mode of
Group Duty managing
2015648.4591129295.64
Free assets by
Corporation management
Limited layer
According to
the mode of
Luzhou Bank managing
3905280.0027236318.99
Co. Ltd. assets by
management
layer
2062024 Annual Report of Luzhou Laojiao Co. Ltd.
According to
Guotai Junan the mode of
Investment managing
Management assets by
Co. Ltd. management
layer
According to
North the mode of
Chemical managing
78177.7514840083.24
Industries Co. assets by
Ltd. management
layer
According to
the mode of
Guojiu Big managing
1200215.22
Data Co. Ltd. assets by
management
layer
Sichuan
China Baijiu
Golden
According to
Triangle
the mode of
Brand
managing
Operation 2500000.00 5752926.37
assets by
Development
management
Co. Ltd. and
layer
other equity
instrument
investments
Other statements:
7.10. Long-term equity investments
Unit：CNY
Changes in current period
Openi Gain Adjust Closin
Openi ng or ments Closin g
ng Balan Cash loss of g Balan
Invest Balan ce of Other divide Provisrecog other Balan ce of
ee ce provisi Increa Decre chang d or ion for nized compr Other ce provisi
(book on for se ase es in profit impairunder ehens (book on for
value) impair equity declar ment equity ive value) impair
ment ed metho incom ment
d e
1. Joint Ventures
2. Associate
Huaxi
Securi 2535 2567 7566 1715 1364 2614 2567
ties 6303 098.8 3468. 4748. 1557. 8070 098.8
Co. 72.30 0 99 48 20 32.57 0
Ltd.Luzho
u
Laojia
o
Postd -3833 3668
octora 16579051. 1718.l 333.451 10
Works 1
tation
Techn
ology
Innov
2072024 Annual Report of Luzhou Laojiao Co. Ltd.
ation
Co.Ltd.Sichu
an
Devel
opme
nt
980.81969280.9
Liquor
59.923
Invest
ment
Co.Ltd.CTS
Luzho
u
Laojia
o
Cultur
120030631231
al
4703143.11017
Touris
5.9499.13
m
Devel
opme
nt
Co.Ltd.Sichu
an
Tianfu
Grana
11701250
ry 8021
0000.2140.
Liquor 40.27
0027
Indust
ry
Co.Ltd.Sichu
an
Tongn
iang
Baijiu
Indust
ry 8340 - 8272
Techn 392.9 6742 966.9
ology 0 5.97 3
Resea
rch
Institu
te
Co.Ltd.
27082567117077781715136428012567
Subtot
2548098.80000.4293.4748.1557.2523098.8
al
33.5000015482017.930
27082567117077781715136428012567
Total 2548 098.8 0000. 4293. 4748. 1557. 2523 098.8
33.5000015482017.930
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□Applicable □ N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□Applicable □ N/A
2082024 Annual Report of Luzhou Laojiao Co. Ltd.
7.11. Investment property
7.11.1. Investment property with cost measurement model
□Applicable □ N/A
Unit：CNY
Buildings and Construction in
Item Land use right Total
constructions progress
I. Original cost:
1.Opening balance 47321613.93 9566480.21 56888094.14
2.Increase in current
32288816.143200587.5035489403.64
period
(1) External
purchase
(2) Transfer from
inventories/fixed
32288816.143200587.5035489403.64
assets/construction
in progress
(3) Increase from
business
combination
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance 79610430.07 12767067.71 92377497.78
II. Accumulated
depreciation and
amortization
1.Opening Balance 15788024.62 3314652.75 19102677.37
2.Increase in current
21110780.901917345.3523028126.25
period
(1) Provision or
1332489.69730478.512062968.20
amortization
(2) Transfer from
fixed
assets/construction 19778291.21 1186866.84 20965158.05
in progress/intangible
assets
3.Decrease in
current period
(1) Disposal
(2) Other transfer out
4.Closing Balance 36898805.52 5231998.10 42130803.62
III. Provision for
impairment
1.Opening Balance
2.Increase in current
period
(1) Provision
3.Decrease in
current period
(1) Disposal
2092024 Annual Report of Luzhou Laojiao Co. Ltd.
(2) Other transfer out
4.Closing Balance
IV. Book Value
1.Closing Book
42711624.557535069.6150246694.16
Value
2.Opening Book
31533589.316251827.4637785416.77
Value
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□Applicable □ N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□Applicable □ N/A
The reason for the discrepancy between the foregoing information and the information used in the
impairment tests in prior years or external information
The reason for the discrepancy between the information used in the Company's impairment tests in
prior years and the actual situation of those years
Other statements:
7.11.2. Investment property without certification of right
Unit：CNY
Reason for not having the
Item Book value
certification of right
Buildings of the Company 13832335.36 In procedure
7.12. Fixed assets
Unit：CNY
Item Closing Balance Opening Balance
Fixed assets 9131607204.08 8613187271.67
Disposal of fixed assets 169711.43 36193.79
Total 9131776915.51 8613223465.46
7.12.1. Details of fixed assets
Unit：CNY
Buildings and Specialized General Transportation Other
Item Total
constructions equipment equipment equipment equipment
I. Original
cost:
1.Opening 7601544871 1249997326 1223925013 1652688060 1177492266
46767392.95
balance .04 .78 .96 .94 5.67
2.Increase in 777708299.5 246002383.2 102041092.6 343010928.4 1478598149
9835445.28
current period 7 0 9 4 .18
(1) External
97500.003758081.5243281600.96691247.801245529.7249073960.00
purchase
2102024 Annual Report of Luzhou Laojiao Co. Ltd.
(2) Transfer
from 772988699.2 242244189.1 316242837.8 1392571244
51951320.269144197.48
construction in 6 8 2 .00
progress
(3) Increase
from business
combination
(4) Transfer
from
112.50327870.63327983.13
intangible
assets
(5)
Adjustment for
4061406.776408565.4310469972.20
completion
settlement
(6) Changes
of exchange -71770.81 -71770.81
rates
(7) Other 560693.54 471376.85 25194690.27 26226760.66
3.Decrease in 345922691.8 441973061.6
26184907.5424387710.9717886915.5427590835.80
current period 4 9
(1) Disposal 132177404.8
49364373.2619439930.2724001059.4617881376.6221490665.26
or retirement 7
(2) Transfer to
investment 32288816.14 32288816.14
property
(3) Transfer to
intangible 36714324.50 36714324.50
assets
(4) Transfer to
227449719.9228611847.6
construction in 0.01 1162127.66
96
progress
(5)
Adjustment for
6744977.275538.924742925.7611493441.95
completion
settlement
(6) Other 105457.95 386651.50 195117.12 687226.57
4.Closing 8033330478 1469814802 1301578395 1968108153 1281154775
38715922.69
Balance .77 .44 .68 .58 3.16
II.Accumulated
depreciation
1.Opening 1157287207 606617382.1 541324309.8 820676355.7 3161112453
35207198.35
Balance .89 0 1 8 .93
2.Increase in 272358849.4 163238236.9 147667745.6 680729009.9
4070653.1993393524.70
current period 3 8 4 4
270499692.7163238236.9147743407.9678771186.9
(1) Provision 4070653.19 93219196.04
7875
(2) Transfer
from
174328.66174328.66
intangible
assets
(3)
Adjustment for
1859156.661859156.66
completion
settlement
(4) Changes
of exchange -75662.33 -75662.33
rates
3.Decrease in 161900914.7
88470179.2918900952.8020141141.7116106774.6318281866.36
current period 9
(1) Disposal 115227934.0
43656355.2317051714.6220141141.7116106774.6318271947.88
or retirement 7
(2) Transfer to
investment 19778291.21 19778291.21
property
2112024 Annual Report of Luzhou Laojiao Co. Ltd.
(3) Transfer to
intangible 25035532.85 25035532.85
assets
(4)
Adjustment for
1849238.189918.481859156.66
completion
settlement
4.Closing 1341175878 750954666.2 668850913.7 895788014.1 3679940549
23171076.91
Balance .03 8 4 2 .08
III. Provision
for impairment
1.Opening
622940.07622940.07
Balance
2.Increase in
current period
(1) Provision
3.Decrease in
622940.07622940.07
current period
(1) Disposal
622940.07622940.07
or retirement
4.Closing
Balance
IV. Book
Value
1.Closing 6692154600 718860136.1 632727481.9 1072320139 9131607204
15544845.78
Book Value .74 6 4 .46 .08
2.Opening 6443634723 643379944.6 682600704.1 832011705.1 8613187271
11560194.60
Book Value .08 8 5 6 .67
7.12.2. Fixed assets leased out through operating lease
Unit：CNY
Item Closing book value
Buildings and constructions 21825621.87
Equipment 15224667.58
Total 37050289.45
7.12.3. Fixed assets without certification of right
Unit：CNY
Reason for not having the
Item Book value
certification of right
The property ownership certificate
has not been processed yet for the
Buildings of the Company 18632488.31 historical reasons and it plans to be
processed after gradually improving
procedures.Buildings of the Company 216373516.94 In procedure
Buildings of the subsidiary-brewing
4642895976.37 In procedure
company
Total 4877901981.62
7.12.4. Disposal of fixed assets
Unit：CNY
Item Closing Balance Opening Balance
Disposal and retirement of assets 169711.43 36193.79
Total 169711.43 36193.79
2122024 Annual Report of Luzhou Laojiao Co. Ltd.
7.13. Construction in progress
Unit：CNY
Item Closing Balance Opening Balance
Construction in progress 807233988.90 1718468880.53
Total 807233988.90 1718468880.53
7.13.1. Details of the construction in progress
Unit：CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Technical
renovation of
Luzhou
11327041911132704191
Laojiao 6367929.36 6367929.36.02.02
Intelligent
packaging
center
Technical
renovation
project of
506382371.5506382371.5217839823.4217839823.4
Luzhou
7799
Laojiao
intelligent
brewing (I)
Technical
renovation of
Luzhou
141773898.9141773898.9
Laojiao
77
Intelligent
packaging
center (II)
Project of
Luzhou
Laojiao's
Flexible 60955418.59 60955418.59 92773969.99 92773969.99
Intelligent
Filling Pilot
Line
Construction
Project of
Luzhou
Laojiao's
Strong Aroma 22407884.55 22407884.55 1194002.45 1194002.45
Baijiu
Experience
Marketing
Centre
Technical
Reform
Project of
574755.15574755.15
Luzhou
Laojiao's
Brewing Base
The
expansion
and
22751740.4322751740.433083641.383083641.38
renovation
project of the
office area of
2132024 Annual Report of Luzhou Laojiao Co. Ltd.
Luzhou
Laojiao
Marketing
Network
Command
Center-Staff
Home
188368644.4188368644.4128524598.0128524598.0
Other projects
0088
807233988.9807233988.917184688801718468880
Total
00.53.53
7.13.2. Significant changes in construction in progress
Unit：CNY
Propo
rtion
Includi
of Accu
ng: Capita
Increa accu mulati
Openi Transf Closin Capita lizatio
se in Other mulati Progr ve Sourc
Budge ng er into g lized n rate
Item curren decre ve ess capital e of
t Balan fixed Balan intere for the
t ases projec (%) ized funds
ce assets ce st for period
period t input intere
the (%)
in st
period
budge
t
Techn
ical
renov
ation
of
Luzho
188611326710115834966367
u 84.86 90.00 1858
1760 7041 2915. 4770 2161. 929.3 Other
Laojia % % 76.75
00.0091.029316.49106
o
Intellig
ent
packa
ging
center
Techn
ical
renov
ation
projec
t of
4782217828855063
Luzho 23.19 30.00
5090 3982 4254 8237 Other
u % %
00.003.498.081.57
Laojia
o
intellig
ent
brewi
ng (I)
Techn
ical
renov
ation
of 1880 1417 6679 1479
456789.2289.00
Luzho 0000 7389 184.0 9632 Other
58.48%%
u 0.00 8.97 4 4.53
Laojia
o
Intellig
ent
2142024 Annual Report of Luzhou Laojiao Co. Ltd.
packa
ging
center
(II)
685614923623130635415127
1858
Total 6850 3179 2464 4733 8919. 5030
76.75
00.0013.488.0541.02580.93
7.13.3. Impairment test of construction in progress
□Applicable □ N/A
7.14. Right-of-use assets
7.14.1. Details of right-of-use assets
Unit：CNY
Item Land use right Buildings and constructions Total
I. Original cost
1. Opening Balance 30788322.41 10375681.84 41164004.25
2. Increase in current
16067587.6616067587.66
period
(1) Increase in leases 14797048.30 14797048.30
(2) Changes of exchange
1270539.361270539.36
rates
3. Decrease in current
1117.721117.72
period
(1) Lease expiration 1117.72 1117.72
(2) Adjustment for change
of lease term
4. Closing Balance 30788322.41 26442151.78 57230474.19
II. Accumulated
amortization
1. Opening Balance 10273916.78 7629132.24 17903049.02
2. Increase in current
3424638.936648572.0110073210.94
period
(1) Provision 3424638.93 6270013.69 9694652.62
(2) Changes of exchange
378558.32378558.32
rates
3. Decrease in current
period
(1) Disposal
4. Closing Balance 13698555.71 14277704.25 27976259.96
III. Provision for impairment
1. Opening Balance
2. Increase in current
period
(1) Provision
3. Decrease in current
period
(1) Disposal
4. Closing Balance
IV. Book Value
2152024 Annual Report of Luzhou Laojiao Co. Ltd.
1. Closing Book Value 17089766.70 12164447.53 29254214.23
2. Opening Book Value 20514405.63 2746549.60 23260955.23
7.14.2. Impairment test of right-of-use assets
□Applicable □ N/A
7.15. Intangible assets
7.15.1. Details of intangible assets
Unit：CNY
No-patent
Computer Trademark
Item Land use right Patent right right Total
software right
technology
I. Original cost
1. Opening 3654960826 3748480479
1700050.4489700887.412118716.09
Balance .00 .94
2. Increase in 139464309.5
88436461.6451027847.91
current period 5
(1) Acquired 49169900.00 511051.20 49680951.20
(2) Internal
developed
(3) Business
combination
(4)
Transferred
from 2552237.14 50513394.55 53065631.69
construction in
progress
(5)
Transferred
36714324.5036714324.50
from fixed
assets
(6) Changes
of exchange 3402.16 3402.16
rates
3. Decrease in
3525786.03535287.534061073.56
current period
(1) Disposal 210879.00 321623.93 532502.93
(2)
Transferred to
3200587.503200587.50
investment
property
(3)
Transferred to 114319.53 213663.60 327983.13
fixed assets
4. Closing 3739871501 140193447.7 3883883715
1700050.442118716.09
Balance .61 9 .93
II.Accumulated
amortization
1. Opening 309168468.6 350606688.8
960614.1338581851.651895754.45
Balance 3 6
2. Increase in 107631762.9 117145959.9
130005.059383291.81900.16
current period 1 3
(1) Provision 82596230.06 130005.05 9383291.81 900.16 92110427.08
(2)
Transferred
25035532.8525035532.85
from fixed
assets
2162024 Annual Report of Luzhou Laojiao Co. Ltd.
3. Decrease in
1499111.21268617.841767729.05
current period
(1) Disposal 210879.00 195654.55 406533.55
(2)
Transferred to
1186866.841186866.84
investment
property
(3)
Transferred to 101365.37 72963.29 174328.66
fixed assets
4. Closing 415301120.3 465984919.7
1090619.1847696525.621896654.61
Balance 3 4
III. Provision
for impairment
1. Opening
Balance
2. Increase in
current period
(1) Provision
3. Decrease in
current period
(1) Disposal
4. Closing
Balance
IV. Book
Value
1. Closing 3324570381 3417898796
609431.2692496922.17222061.48
Book Value .28 .19
2. Opening 3345792357 3397873791
739436.3151119035.76222961.64
Book Value .37 .08
There is no proportion of intangible assets formed by internal development to the balance of
intangible assets at the period-end.
7.15.2. Land use right without certification of right
There was no land use right without certification of right at the period-end.
7.16. Long-term deferred expense
Unit：CNY
Item Opening Balance Increase Amortization Other decrease Closing Balance
Improvement
expense of
960005.911500141.28715835.64-11960.481756272.03
rented fixed
assets
Total 960005.91 1500141.28 715835.64 -11960.481 1756272.03
Note: 1 Other decrease was generated from changes of exchange rates.
7.17. Deferred tax assets/ deferred tax liabilities
7.17.1. Deferred tax assets before offset
Unit：CNY
Closing Balance Opening Balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
2172024 Annual Report of Luzhou Laojiao Co. Ltd.
Provision for asset
124771509.8231075237.73127079101.6831572482.83
impairment
Unrealized profits
from internal 742790841.94 185697710.49 1533438058.70 383359514.67
transactions
Impact from salary 493996524.17 121948421.27 466715045.27 115258381.83
Impact from deferred
86672726.8321668181.7127772083.746943020.94
earnings
Impact from fixed
1598536.52405851.10889943.60233853.09
assets depreciation
Recognition costs of
restricted shares for
120257855.9829526566.27460239659.25112958934.99
equity incentive in
the vesting period
Impact from fair
value changes of
other equity 115507633.77 28876908.44 90722543.67 22680635.92
instrument
investment
Impact of income tax
from fair value
changes of held-for- 17238148.79 4309537.19
trading financial
assets
Impact of income tax
from initial
3258868.36676678.848994376.391422793.65
recognition of lease
liabilities
Total 1706092646.18 424185093.04 2715850812.30 674429617.92
7.17.2. Deferred tax liabilities before offset
Unit：CNY
Closing Balance Opening Balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Fair value changes
of other equity
248998239.5062249559.84219911911.7154977977.92
instrument
investment
Fair value changes
of held-for-trading 11520444.76 2880111.17 26992098.76 6748024.69
financial assets
Impact from the
policy of one-time
379464834.3292542193.36330643563.7280965673.53
pre-tax deduction of
fixed assets
Impact of income tax
from initial
3342874.50703850.51345267.4981352.08
recognition of right-
of-use assets
Total 643326393.08 158375714.88 577892841.68 142773028.22
7.17.3. Details of unrecognized deferred tax assets
Unit：CNY
Item Closing Balance Opening Balance
2182024 Annual Report of Luzhou Laojiao Co. Ltd.
Deductible losses 272750289.72 253464624.61
Asset impairment provision 2156.34 1505.26
Employee benefits payable 15915368.47 13557753.92
Total 288667814.53 267023883.79
7.17.4. Deductible losses from unrecognized deferred tax assets will due on the following
years
Unit：CNY
Year Closing Amount Opening Amount Notes
202414491365.44
202515884395.0015884395.00
20268417566.878417566.87
202741945012.3033125772.28
2028170459479.62181545525.02
202936043835.93
Total 272750289.72 253464624.61
7.18. Other non-current assets
Unit：CNY
Closing Balance Opening Balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Prepayment
for
engineering 235101375.05 235101375.05 186654437.03 186654437.03
and
equipment
Prepayment
for long-term 172245993.10 172245993.101 172245993.10 172245993.10
assets
Total 407347368.15 407347368.15 358900430.13 358900430.13
Note: 1 The prepayment for long-term assets was the corresponding advance payment for the
progress of the Chengdu Innovation and Development Center Building customized and constructed
by the Company.
7.19. Assets with restricted ownership or use rights
Unit：CNY
Period-end Period-beginning
Item Book Book Type of Status of Book Book Type of Status of
balance value restriction restriction balance value restriction restriction
Provision Provision
Cash and for fixed for fixed
Fixed Fixed
cash 1811009 1811009 deposit 4822288 4822288 deposit
deposit deposit
equivalent 55.95 55.95 interest on 2.52 2.52 interest on
interest interest
s an accrual an accrual
basis basis
Cash and Frozen 1800000 1800000 Litigation
cash fund by 3.44 3.44 freeze
equivalent the court
2192024 Annual Report of Luzhou Laojiao Co. Ltd.
s
Cash and
Bank cash Bank cash
cash 1000000 1000000 1000000 1000000
Margin deposits Margin deposits
equivalent 0.00 0.00 0.00 0.00
for L/G for L/G
s
Cash and E- E-
cash 1627857. 1627857. commerce 772930.9 772930.9 commerce
Margin Margin
equivalent 48 48 platform 0 0 platform
s margin margin
2107288210728858995815899581
Total
16.8716.873.423.42
7.20. Held-for-trading financial liabilities
Unit：CNY
Item Closing Balance Opening Balance
Held-for-trading financial liabilities 9763.87
Including:
Foreign exchange forward
9763.87
transaction
Including:
Total 9763.87
7.21. Accounts payable
7.21.1. Presentation of accounts payable
Unit：CNY
Category Closing Balance Opening Balance
Engineering equipment expense 854220902.47 1494451313.86
Materials and service expense 990276304.31 862772419.35
Total 1844497206.78 2357223733.21
7.21.2. Significant accounts payable whose aging is longer than 1 year
Unit：CNY
Reason for not payment or carrying
Category Closing Balance
forward
China Construction First Group Project payment within the contract
372990522.07
Corporation Limited settlement period
China Second Metallurgy Group Co. Project payment within the contract
161255355.43
Ltd. settlement period
KSEC Intelligent Technology Co. Project payment within the contract
119148909.07
Ltd. settlement period
Shanghai Defeng Advertising
40000000.00 Outstanding advertising expenses
Communication Co. Ltd.Luzhou Branch of Zhongqi
Project payment within the contract
Construction Group Huamao Co. 21826780.23
settlement period
Ltd.China Credit Investment Construction Project payment within the contract
7635000.00
Group Co. Ltd. settlement period
Total 722856566.80
2202024 Annual Report of Luzhou Laojiao Co. Ltd.
7.22. Other payables
Unit：CNY
Item Closing Balance Opening Balance
Dividend payable 29668290.20 29684819.82
Other payables 843927138.88 1121036342.71
Total 873595429.08 1150721162.53
7.22.1. Dividend payable
Unit：CNY
Item Closing Balance Opening Balance
Dividend payable to minority
shareholders of the Company’s 29668290.201 29684819.82
subsidiary
Total 29668290.20 29684819.82
Note: 1 The closing balance refer to the dividends distributed but not yet paid to minority shareholders
of the Company’s subsidiary Boda Marketing Company.
7.22.2. Other payables
7.22.2.1. Categories by nature
Unit：CNY
Item Closing Balance Opening Balance
Security deposit 447066962.39 471170274.78
Intercourse funds 28522739.40 26994900.06
Repurchase obligations of restricted
345699443.89616743610.59
shares
Others 22637993.20 6127557.28
Total 843927138.88 1121036342.71
7.22.2.2. Significant other payables whose aging are longer than 1 year
Unit：CNY
Reason for not payment or carrying
Item Closing Balance
forward
Within the contract performance
Security deposits from suppliers 31720147.50
period
Within the contract performance
Security deposits from dealers 24829046.77
period
Total 56549194.27
7.23. Contract liabilities
Unit：CNY
Category Closing Balance Opening Balance
Within 1 year 3960810214.93 2648369042.14
1-2 years 11557251.98 11257914.75
2212024 Annual Report of Luzhou Laojiao Co. Ltd.
2-3 years 1918201.08 1537289.68
Over 3 years 3845860.89 11812843.73
Total 3978131528.88 2672977090.30
The Company shall comply with the disclosure requirements for companies engaging in food & liquor
and wine production of the Guidelines No. 3 of the Shenzhen Stock Exchange on Self-regulation of
Listed Companies—Industry-specific Information Disclosure.Note: The carrying amount of contract liabilities at the period-end increased by CNY
1305154438.58 compared with that at the period-begin accounting for 48.83% which was mainly
due to the increase in advances on sales
The total amount of the top five companies in contract liabilities was CNY 1999064056.48
accounting for 50.25%.
7.24. Employee benefits payable
7.24.1. Employee benefits payable shown as follows
Unit：CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Short-term
495138782.211177343466.571148445189.11524037059.67
benefits
2. Post-employment
benefits- defined 28718957.67 168820385.42 167995633.77 29543709.32
contribution plans
3. Termination
8971.538971.53
benefits
Total 523866711.41 1346163851.99 1316449794.41 553580768.99
7.24.2. Short-term employee benefits payable shown as follows
Unit：CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Wages bonuses
allowances and 441221793.71 972418249.12 939482951.09 474157091.74
grants
2. Employees’
20489403.7920489403.79
welfare
3. Social insurance
10323076.2873287351.7077322704.986287723.00
premiums
Including:
Medical insurance 8947557.56 70147578.32 74992527.41 4102608.47
premium
Work-related injury
1375518.723139773.382330177.572185114.53
insurance
4. Housing funds 5572651.95 81201217.62 79795659.68 6978209.89
5. Labor union
expenditures and
38021260.2729947244.3431354469.5736614035.04
employee education
funds
2222024 Annual Report of Luzhou Laojiao Co. Ltd.
Total 495138782.21 1177343466.57 1148445189.11 524037059.67
7.24.3. Defined contribution plan shown as follows
Unit：CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
1. Basic endowment
21964091.48103679476.27105609361.8520034205.90
insurance premium
2. Unemployment
331799.763916975.153983678.09265096.82
insurance premium
3. Enterprise annuity 6423066.43 61223934.00 58402593.83 9244406.60
Total 28718957.67 168820385.42 167995633.77 29543709.32
7.25. Taxes payable
Unit：CNY
Item Closing Balance Opening Balance
Value-added tax 712774935.04 462528000.24
Consumption tax 1446813372.13 1255405887.03
Enterprise income tax 798281280.17 998666442.52
Individual income tax 11091390.13 7810885.88
Urban maintenance and construction
147158156.11119493139.70
tax
Education surcharge 63919687.59 51286192.79
Local education surcharge 43486324.21 34299228.87
Stamp duty 9583849.31 9347536.01
Land use tax 437618.74 437618.74
Others 401983.65 352601.22
Total 3233948597.08 2939627533.00
7.26. Non-current liabilities due within one year
Unit：CNY
Item Closing Balance Opening Balance
Long-term loans due within one year 1720200000.00 25000000.00
Bonds payable due within one year 1499788498.36
Lease liabilities due within one year 9688349.02 5114015.89
Interest of long-term loans due within
5383276.227379478.99
one year
Interest of bonds payable due within
41568493.1441424657.53
one year
Total 3276628616.74 78918152.41
7.27. Other current liabilities
Unit：CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 516729820.48 347485071.57
Total 516729820.48 347485071.57
2232024 Annual Report of Luzhou Laojiao Co. Ltd.
7.28. Long-term loans
7.28.1. Long-term loans
Unit：CNY
Item Closing Balance Opening Balance
Credit loans 8000100000.00 10025300000.00
Less: Long-term loans due within one
-1720200000.00-25000000.00
year
Total 6279900000.00 10000300000.00
Other statements including interest rate range:
The interest rate level of the Company’s long-term loans at the end of the period was loan prime rate
(LPR) - corresponding basic points (BP) for 1-year/5-year and above loan terms.
7.29. Bonds payable
7.29.1. Bonds payable
Unit：CNY
Item Closing Balance Opening Balance
Corporate bonds in 2020 (Phase I) 1498716737.02
Total 1498716737.02
7.29.2. Increase/decrease of bonds payable (excluding other financial instrument classified as
financial liabilities such as preferred shares and perpetual bonds)
Unit：CNY
Amor
Repa
Issue Withd tizatio
ymen
d in rawal n of
Issuin Open t in Closi
Coup Issuin the of premi Recla Defa
Bond Par Durat g ing the ng
on g curre intere um ssific ult or
name value ion amou Balan report Balan
rate date nt st by and ation not
nt ce ing ce
perio par depre
perio
d value ciatio
d
n
Corp
orate
1500149414981499
bond Marc 5250 1071
0003.505000716788
s in h 16 0000 761. Not
000.0 % years 000.0 737.0 498.3
20202020.0034
0026
(Phas
e I)
149414981499
52501071
000716788
Total —— 0000 761. ——
000.0737.0498.3.0034
0261
Note: 1 The outstanding bonds of the Company at the period-begin/Corporate bonds in 2020 (Phase I)
will mature in 2025 which shall be reclassified and presented as non-current liabilities due within one
year accordingly. The Company paid off the principal and interest of the Corporate bonds in 2020
(Phase I) as schedule on March 17 2025.
2242024 Annual Report of Luzhou Laojiao Co. Ltd.
7.30. Lease liabilities
Unit：CNY
Item Closing Balance Opening Balance
Lease payment 38789939.06 32472149.33
Less: unrecognized financing cost -4573070.91 -5001728.97
Less: lease liabilities due within one
-9688349.02-5114015.89
year
Total 24528519.13 22356404.47
7.31. Deferred income
Unit：CNY
Increase in Decrease in
Item Opening Balance Closing Balance Reason
current period current period
Reception of
Government
27772083.74 71041000.00 12140356.91 86672726.83 financial
grants
allocation
Total 27772083.74 71041000.00 12140356.91 86672726.83 --
Other statements:
Details:
Opening Increase in Other income in Closing Related to
Item
Balance current period current period Balance assets/ income
Technological
transformation project of
Luzhou Laojiao 59619000.00 993650.00 58625350.00 Related to assets
Intelligent Packing
Center
Digital upgrade project
of supply chain
management for Luzhou 8862000.00 147700.00 8714300.00 Related to assets
Laojiao Intelligent
Packing Center
New mode application
project of digital
3495363.94 1553495.10 1941868.84 Related to assets
workshop for solid state
baijiu production
Construction project of
liquor room of Luzhou
6042857.20 2685714.29 3357142.91 Related to assets
Laojiao brewing
technical renovation
Luzhou Laojiao
automatic baijiu
785934.06 349304.03 436630.03 Related to assets
production line technical
renovation project
Boiler reconstruction
project of Luohan
5057142.86 1264285.71 3792857.15 Related to assets
Brewing Base of Luzhou
Laojiao
Brewing wastewater
7714285.68 3428571.43 4285714.25 Related to assets
treatment project
Improvement and
technical renovation
project of Luzhou 4676500.00 2560000.00 1717636.35 5518863.65 Related to assets
Laojiao production
supporting
Total 27772083.74 71041000.00 12140356.91 86672726.83
2252024 Annual Report of Luzhou Laojiao Co. Ltd.
7.32. Share capital
Unit：CNY
Increases/decreases in the current period (+ -)
Opening Conversion Closing
Balance Issuance of Bonds of reserves Others Subtotal Balance
new shares share funds into
shares
Total
1471987714719515
number of -36266.00 -36266.001
69.0003.00
shares
Note: 1 In 2024 among the incentive recipients of the Company’s 2021 Restricted Share Incentive
Plan (Draft) five incentive recipients no longer met the incentive conditions due to job transfer
resignation or other reasons. According to the relevant provisions of the incentive plan a total of
36266 restricted shares that have been granted to the above-mentioned incentive recipients but have
not yet been released from restrictions will be repurchased and canceled by the Company.Other statements:
7.33. Capital reserves
Unit：CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Share premium
4205307212.40425852005.913325954.864627833263.45
(capital premium)
Other capital
980174310.82183607998.19425852005.91737930303.10
reserves
Total 5185481523.22 609460004.10 429177960.77 5365763566.55
Other statements including increase/decrease and reasons thereof:
Note 1: The share premium increased this year because some restricted shares granted have been
released from restrictions upon maturity.Note 2: The increase in other capital reserve for the current period was the costs and expenses
attributable to the parent company to be recognized in the current period for the issuance of restricted
shares.
7.34. Treasury shares
Unit：CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Perform the
repurchase
616743610.59271044166.70345699443.89
obligations under the
equity incentive
Total 616743610.59 271044166.70 345699443.89
Other statements including notes to increase and decrease during the reporting period and the
reasons for changes:
The treasury shares reduced by CNY 271044166.70 for the current period due to the repurchase
and cancellation of restricted shares and the expiration and lifting of restrictions on some granted
2262024 Annual Report of Luzhou Laojiao Co. Ltd.
restricted shares.
7.35. Other comprehensive income
Unit：CNY
Current Period
Less:
Less:
Previously
Previously
recognize Amount
Amount in recognize
d in other Amount attribute to
Opening current d in other
Item comprehe Less: attribute to non-
Closing
Balance period comprehe nsive Income parent controlling Balance
before nsive
income tax company sharehold
income income
transferre after tax ers after
tax transferre
d to tax
d to profit
retained
and loss
earnings
I. Other
comprehe
nsive
income
that will 9694856 3388621. 3297570. 1002461
91051.49
not be 3.88 68 19 34.07
reclassifie
d into
profit and
loss
Other
comprehe
nsive
income
that will
not be 106537.8 162693.3 178179.7
91051.4971641.84
reclassifie 6 3 0
d into
profit and
loss under
equity
method
Fair value
changes
of other
96842023225928.3225928.1000679
equity
6.02353554.37
instrument
investmen
t
II. Other
comprehe
nsive
income - -
18473301780707666229.8
that will be 3381809 1601101
5.495.681
reclassifie 4.37 8.69
d into
profit and
loss
Including:
Other
comprehe - -1699205 1699205
nsive 3678419 19792135.15 5.15
income 1.34 6.19
that will be
reclassifie
2272024 Annual Report of Luzhou Laojiao Co. Ltd.
d into
profit and
loss under
equity
method
Difference
from
conversio
n of
2966096.1481250.815020.5666229.83781117.
financial
97343150
statement
s in
foreign
currency
631304621861922110464666229.88423511
Total 91051.49
9.517.175.8715.38
7.36. Surplus reserves
Unit：CNY
Increase in current Decrease in current
Item Opening Balance Closing Balance
period period
Statutory surplus
1471987769.0036266.001471951503.00
reserves
Total 1471987769.00 36266.00 1471951503.00
Statements of surplus reserves including notes to increase and decrease during the reporting period
and the reasons for changes:
The provision ratio of the Company’s statutory surplus reserves has always remained at 100% of the
share capital. Therefore it has been adjusted accordingly with the reduction of share repurchase this
year.
7.37. Undistributed profits
Unit：CNY
Item Current Period Previous Period
Undistributed profit before
33815566574.7526772197213.98
adjustment at the end of the last year
Undistributed profit after adjustment
33815566574.7526772197213.98
at the beginning of year
Plus: Net profit attributable to owners
of the parent company for the current 13472986476.01 13246394700.59
period
Less: Provision of statutory surplus
-36266.0092669.00
reserves
Ordinary share dividends payable 7948382058.83 6219148324.03
Plus: Other transfer in 91051.49 16215653.21
Undistributed profits at the end of the
39340298309.4233815566574.75
period
7.38. Operating revenue and cost of sales
Unit：CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
2282024 Annual Report of Luzhou Laojiao Co. Ltd.
Primary business 30742480590.43 3719472050.52 29832432932.59 3354136725.57
Other business 453767617.90 168644133.41 400868455.67 183014677.58
Total 31196248208.33 3888116183.93 30233301388.26 3537151403.15
Whether the lower of the Company’s total profit net profit net profit after deduction of non-recurring
gains and losses for the most recent fiscal year through audit is negative
□Yes □ No
Details:
Unit：CNY
Contract Baijiu sales Total
category Operating revenue Cost of sales Operating revenue Cost of sales
Commodit
y type
Including:
Medium
and high
27585319704.622248007003.0127585319704.622248007003.01
grade
baijiu
Other
3467333632.931596410927.943467333632.931596410927.94
baijiu
Other
143594870.7843698252.98143594870.7843698252.98
revenue
By
operating
segment
Including:
Domestic 31010093741.29 3862718079.68 31010093741.29 3862718079.68
Outbound 186154467.04 25398104.25 186154467.04 25398104.25
Market or
customer
type
Including:
Contract
type
Including:
Recognize
revenue at
31091711234.373850612763.9631091711234.373850612763.96
point in
time
Recognize
revenue
104536973.9637503419.97104536973.9637503419.97
by time
period
By
commodit
y transfer
time
Including:
By
contract
term
Including:
By sales
2292024 Annual Report of Luzhou Laojiao Co. Ltd.
channel
Including:
Total 31196248208.33 3888116183.93 31196248208.33 3888116183.93
Other statements
The Company's main business is the production and sale of baijiu. Revenue is recognized at the point
when the Company transfers control of the relevant goods to the customer and fulfills its performance
obligations.Information in relation to the transaction price apportioned to the residual contract performance
obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was CNY 3978131528.88 at the period-end among which
CNY 3978131528.88 was expected to be recognized in 2025.
7.39. Business taxes and surcharges
Unit：CNY
Item Current Period Previous Period
Consumption tax 3758818690.82 3240865419.12
Urban maintenance and construction
493311257.37441952895.02
tax
Educational surcharge 214918037.88 189596044.62
Property tax 77927281.84 72159092.39
Land use tax 34031578.65 34404828.33
Stamp duty 31293251.08 27591982.98
Local education surcharge 143278691.91 126397571.29
Others 176791.63 158516.93
Total 4753755581.18 4133126350.68
7.40. General and administrative expenses
Unit：CNY
Item Current Period Previous Period
Employee compensation 477879760.77 438391560.79
Depreciation and amortization 106444738.22 119690409.04
Share-based payment expense 100696953.42 206559351.04
Service expense and others 415758512.15 374839356.36
Total 1100779964.56 1139480677.23
7.41. Selling and distribution expenses
Unit：CNY
Item Current Period Previous Period
Advertising promotion expense 1548153847.96 1614086963.33
Promotion expense 1109741814.61 1479620839.26
Employee compensation 387418851.76 297757314.24
Storage and logistics costs 162568387.89 198741925.26
Share-based payment expense 48618883.85 98732302.98
2302024 Annual Report of Luzhou Laojiao Co. Ltd.
Others 281880829.92 285486181.85
Total 3538382615.99 3974425526.92
7.42. Research and development expenses
Unit：CNY
Item Current Period Previous Period
Comprehensive research and
260975311.10225955797.33
development expenses
Total 260975311.10 225955797.33
7.43. Financial expenses
Unit：CNY
Item Current Period Previous Period
Interest expenses 304312417.151 488003010.93
Less: Interest income -797923434.30 -864006165.58
Losses from currency exchange -3165346.43 -2201671.82
Handling charges 7119485.05 6292845.93
Amortization of unrecognized
1135819.21759774.13
financing costs
Total -488521059.32 -371152206.41
Note: 1 The interest expenses decreased by 37.64% year-on-year mainly due to the reclassification
and presentation of bill discounting expenses as investment income.
7.44. Other income
Unit：CNY
Source Current Period Previous Period
Government grants 41225885.28 51950003.11
Other refund (Individual income tax
2526666.452229602.28
handling fee refund)
Total 43752551.73 54179605.39
7.45. Gain on changes in fair value
Unit：CNY
Source Current Period Previous Period
Held-for-trading financial assets 27528769.00 62998156.40
Held-for-trading financial liabilities 9870.60 -9694.10
Total 27538639.60 62988462.30
7.46. Investment income
Unit：CNY
Item Current Period Previous Period
Investment income from long-term
equity investments under the equity 106578492.71 66927156.69
method
2312024 Annual Report of Luzhou Laojiao Co. Ltd.
Investment income from disposal of
9330148.27
long-term equity investments
Investment income gained during the
period of holding held-for-trading 46953767.52 2391009.80
financial assets
Investment income from disposal of
-29465560.315290247.46
held-for-trading financial assets
Dividend income gained during the
period of holding other equity 14976454.55 11268626.39
instrument investment
Income from derecognition of
financial assets measured at fair
-158251822.921
value with changes recorded in other
comprehensive income
Investment income from early
-1055251.33
redemption of bonds
Investment losses from foreign
-14339.62-97207.03
exchange forward transaction
Total -9892859.80 84724581.98
Note: 1 The Company presented the discounting expenses of derecognized bank acceptance bills
under this account.Other statements:
Including: investment income from long-term equity investments under the equity method:
Item Current Period Previous Period
Huaxi Securities Co. Ltd. 75663468.99 44167627.40
Luzhou Laojiao Postdoctoral Workstation Technology
-1657275.64-1846843.26
Innovation Co. Ltd.Sichuan Development Liquor Investment Co. Ltd. -19699.92 8326.61
Sichuan Tongniang Baijiu Industry Technology Research
-67425.97253536.99
Institute Co. Ltd.CTS Luzhou Laojiao Cultural Tourism Development Co. Ltd. 30048548.68 24344508.95
Sichuan Tianfu Granary Liquor Industry Co. Ltd. 2610876.57
Total 106578492.71 66927156.69
Including: dividend income gained during the period of holding other equity instrument investment:
Item Current Period Previous Period
North Chemical Industries Co. Ltd. 78177.75 78177.75
Guotai Haitong Securities Co. Ltd. 6477348.35 6241808.41
Luzhou Sanrenxuan Liquor Industry Co. Ltd. 2500000.00 500000.00
Luzhou Bank Co. Ltd. 3905280.00 3471360.00
China Tourism Group Duty Free Corporation Limited 2015648.45 977280.23
Total 14976454.55 11268626.39
7.47. Credit impairment loss
Unit：CNY
Item Current Period Previous Period
Bad debt loss of accounts receivable 711115.91 -964767.06
2322024 Annual Report of Luzhou Laojiao Co. Ltd.
Bad debt loss of other receivables 921121.70 1897008.76
Total 1632237.61 932241.70
7.48. Gains from disposal of assets
Unit：CNY
Source Current Period Previous Period
Gains from disposal of fixed assets 1058750.22 35447138.00
Gains from disposal of intangible
8980400.30
assets
Gains from disposal of investment
property
Gains from disposal of use right
266700.07
assets
Total 1058750.22 44694238.37
7.49. Non-operating income
Unit：CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Gains from retirement of
3920498.91
non-current assets
Compensation for default 19994603.60 29859330.01 19994603.60
Others 4235258.66 2424034.25 4235258.66
Total 24229862.26 36203863.17 24229862.26
7.50. Non-operating costs
Unit：CNY
The amount included in the
Item Current Period Previous Period extraordinary gains and
losses of the current period
Donation 11979052.40 21381120.00 11979052.40
Losses from damage
retirement of non-current 13325050.92 2570236.31 13325050.92
assets
Others 475870.15 48127919.52 475870.15
Total 25779973.47 72079275.83 25779973.47
7.51. Income tax expense
7.51.1. Statement of income tax expense
Unit：CNY
Item Current Period Previous Period
Current period income tax 4442748346.01 4119788148.40
Deferred income tax 264771902.14 397509384.83
Total 4707520248.15 4517297533.23
2332024 Annual Report of Luzhou Laojiao Co. Ltd.
7.51.2. Adjustment for accounting profit and income tax expense
Unit：CNY
Item Current Period
Total profit 18205298819.04
Income tax expenses determined by statutory/applicable
4551324704.76
tax rate
Impact from subsidiaries’ different tax rates -1882116.86
Impact from adjust for impact from income tax expense in
87848397.53
previous period
Impact from non-taxable income -21188705.92
Impact from non-deductible costs expenses and losses 898822.28
Impact from deductible temporary difference or losses
11590906.04
due to unrecognized deferred tax asset in current period
Income tax impact of expected pre-tax deductible
amounts of restricted shares in future periods that are 78876256.48
less than the recognized cost and expenses
Impact from deductible temporary difference of
unrecognized deferred income tax assets in prior period
Impact from recognition of other taxable difference of
unrecognized deferred income tax liabilities in prior period 51983.83
as deferred income tax liabilities in current period
Income tax expense 4707520248.15
7.52. Other comprehensive income
Details in Note 7.35. Other comprehensive income.
7.53. Notes to the statement of cash flow
7.53.1. Cash related to operating activities
Cash received from other operating activities
Unit：CNY
Item Current Period Previous Period
Recovery of saving deposits
3465620.331484623.48
involving contract disputes
Government grants 103303033.55 46017763.05
Interest income from bank deposit 667147733.48 831459358.12
Others 195416669.46 392483116.17
Total 969333056.82 1271444860.82
Cash paid for other operating activities
Unit：CNY
Item Current Period Previous Period
Cash paid for expenses 2204134745.45 2466131087.54
Restricted court frozen funds paid 18000003.44
Cash paid to E-commerce platform
3979979.79772930.90
as security deposit
Total 2226114728.68 2466904018.44
2342024 Annual Report of Luzhou Laojiao Co. Ltd.
7.53.2. Cash related to investing activities
Cash received from significant investing activities
Unit：CNY
Item Current Period Previous Period
Recovering the principal invested in
2160000000.001400000000.00
held-for-trading financial assets
Total 2160000000.00 1400000000.00
Cash paid for other investing activities
Unit：CNY
Item Current Period Previous Period
Loss on forward exchange settlement 14339.62 97207.03
Total 14339.62 97207.03
Cash paid for significant investing activities
Unit：CNY
Item Current Period Previous Period
Cash paid for purchasing long-term
1188370866.641501625135.45
assets
Cash paid for purchasing held-for-
2460000000.001700000000.00
trading financial assets
Total 3648370866.64 3201625135.45
7.53.3. Cash related to financing activities
Cash paid for other financing activities
Unit：CNY
Item Current Period Previous Period
Refund of minority shareholders’
investments when a subsidiary was 9074676.53
deregistered
Cash paid for repurchase of
3025890.81
restricted shares
Net losses from put-back of bonds 1055251.33
Cash paid for rent of right-of-use
8138594.926547996.56
assets
Total 20239162.26 7603247.89
Changes in liabilities arising from financing activities
□Applicable □ N/A
Unit：CNY
Increase in current period Decrease in current period
Opening Closing
Item Non-cash Non-cash
Balance Cash change Cash change Balance
change change
Long-term
loans
(including
10032679472000000000250575794.342777719978005483276
long-term
8.99.006.13.22
loans due
within one
year)
Bonds 1540141394 53715596.95 52500000.00 1541356991
2352024 Annual Report of Luzhou Laojiao Co. Ltd.
payable .55 .50
(including
bonds
payable due
within one
year)
Lease
liabilities
(including
27470420.3614879042.718132594.9234216868.15
lease liabilities
due within one
year)
Other
payables
(Repurchase 616743610.5 268033816.5 345699443.8
3010350.11
obligations of 9 9 9
restricted
shares)
12217034902000000000319170434.04341414942268033816.59926756579
Total
4.49.002.169.76
7.54. Supplementary information to statement of cash flow
7.54.1. Supplementary information to statement of cash flow
Unit：CNY
Item Current Period Previous Period
1. Reconciliation of net profit to cash
flow from operating activities:
Net profit 13497778570.89 13288660023.21
Plus: Provision for asset impairment -1632237.61 -932241.70
Depreciation of fixed asset oil and
gas assets and productive biological 680834155.15 587432455.60
assets
Depreciation of right-of-use assets 9694652.62 9851802.53
Amortization of intangible assets 92110427.08 79694038.52
Amortization of long-term deferred
715835.64498487.93
expense
Losses from disposal of fixed assets
intangible assets and other long-term -1058750.22 -44694238.37
assets (Gains use “-”)
Losses from retirement of fixed
13325050.92-1350262.60
assets (Gains use “-”)
Losses from change in fair value
-27538639.60-62988462.30
(Gains use “-”)
Financial expenses (Gains use “-”) 302282889.93 323773618.88
Losses on investments (Gains use
-148358963.12-84724581.98
“-”)
Decrease in deferred income tax
250244524.88351976919.74
assets (Increase uses “-”)
Increase in deferred income tax
15602686.6645532465.09
liabilities (Decrease uses “-”)
Decrease in inventories (Increase
-1770750528.50-1781301572.61
use “-”)
Decrease in operating receivables
4167999841.68-1506903239.71
(Increase use “-”)
2362024 Annual Report of Luzhou Laojiao Co. Ltd.
Increase in operating payables
2100518847.25-556160276.77
(Decrease use “-”)
Others
Net cash flows from operating
19181768363.6510648364935.46
activities
2. Significant investing and financing
activities not involving cash:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets under financing lease
3.Net change in cash and cash
equivalents:
Closing balance of cash 33367668014.461 25893029277.86
Less: Opening balance of cash 25893029277.86 17729006591.87
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net change in cash and cash
7474638736.608164022685.99
equivalents
Note: 1 The amount of direct payment for goods and long-term assets (not involving cash flows) by
the endorsement of bank acceptances receivable in the current and previous periods was CNY
753480000.00 and CNY 799668426.34 respectively which were not included in "cash received
from sales of goods or rendering of services" "cash paid for goods and services" and "cash paid for
the purchase of fixed assets intangible assets and other long-term assets" of the cash flow budget.
7.54.2. Composition of cash and cash equivalent
Unit：CNY
Item Opening Balance Closing Balance
1. Cash 33367668014.46 25893029277.86
Including: Cash on hand 27640.75 24059.24
Unrestricted bank deposit 33325611589.29 25868408012.31
Other unrestricted cash and
42028784.4224597206.31
cash equivalents
3. Closing balance of cash and cash
33367668014.4625893029277.86
equivalents
7.54.3. Monetary funds not classified as cash and cash equivalents
Unit：CNY
Item Current Period Previous Period Reason
Provision for fixed deposit
Bank deposit 181100955.95 48222882.52
interest on an accrual basis
Other monetary funds 18000003.44 Frozen fund by the court
Other monetary funds 10000000.00 10000000.00 Bank cash deposits for L/G
Restricted cash deposit in
Other monetary funds 1627857.48 772930.90
E-commerce platforms
Total 210728816.87 58995813.42
2372024 Annual Report of Luzhou Laojiao Co. Ltd.
7.54.4. Relationship between cash and cash equivalents in the balance sheet and cash in the
statement of cash flow
Item Closing Balance Opening Balance
Cash and cash equivalents in the balance sheet 33578396831.33 25952025091.28
Including: Cash on hand 27640.75 24059.24
Bank deposit 33506712545.24 25916630894.83
Other cash and cash equivalents 71656645.34 35370137.21
Less: Other restricted cash and cash equivalents (amount not included
29631860.89
in cash)
10772930.90
Including: Restricted cash deposits for L/G 10000000.00 10000000.00
Third-party platform funds 1627857.48 772930.90
Restricted frozen funds 18000003.44
Less: Interest receivable 181100955.95 48222882.52
Cash in the statement of cash flow 33367668014.46 25893029277.86
7.55. Notes to items of the statements of changes in owners' equity
Notes to the name of “Other” of closing balance at the end of the previous year adjusted and the
amount adjusted:
N/A
7.56. Foreign currency transactions
7.56.1. Foreign currency transactions
Unit：CNY
Closing Balance in Foreign
Item Exchange Rate Closing Balance in CNY
Currency
Cash at Bank and on Hand 125945823.00
Including: USD 15772833.75 7.1884 113381438.13
EUR 328.11 7.5257 2469.26
HKD 13563547.15 0.92604 12560387.20
AUD 339.12 4.507 1528.41
Accounts Receivable 4294258.79
Including: USD
EUR
HKD 4637228.19 0.92604 4294258.79
Long-term Loans
Including: USD
EUR
HKD
Other Receivables 6032279.87
Including: USD 18697.65 7.1884 134406.19
HKD 6368918.92 0.92604 5897873.68
Accounts Payable 567662.64
2382024 Annual Report of Luzhou Laojiao Co. Ltd.
Including: USD 0.50 7.1884 3.59
HKD 612996.25 0.92604 567659.05
Other Payables 23342169.44
Including: USD 14862.33 7.1884 106836.37
HKD 25091068.50 0.92604 23235333.07
Prepayments 939697.59
Including: USD 5291.50 7.1884 38037.42
HKD 973673.03 0.92604 901660.17
Non-current liabilities due
4185537.56
within one year
Including: USD 67410.06 7.1884 484570.48
HKD 3996552.07 0.92604 3700967.08
Lease liabilities 5019797.03
Including: USD 77832.23 7.1884 559489.20
HKD 4816539.06 0.92604 4460307.83
7.56.2. Description of the foreign business entity including the important foreign business
entity shall disclose its main foreign business place bookkeeping standard currency and
selection basis and shall also disclose the reason for the change of the bookkeeping
standard currency
□ Applicable □ N/A
Bookkeeping
Company Operation site Choosing Reason
currency
Luzhou Laojiao International Development Currency in the Hong Kong China HKD
(Hong Kong) Co. Ltd. registration place
Luzhou Laojiao Commercial Development Currency in the USA USD
(North America) Co. Ltd. registration place
Currency in the
Mingjiang Co. Ltd. USA USD
registration place
7.57. Lease
7.57.1. The Company as lessee
□Applicable □ N/A
Variable lease payments that are not covered in the measurement of the lease liabilities
□Applicable □ N/A
Simplified short-term lease or lease expense for low-value assets
□Applicable □ N/A
The Company uses a simplified approach for short-term leases where the right-of-use assets and
lease liabilities are not recognized. Short-term leases accounted for as expenses in the current period
are listed below:
Item 2024 2023
Short-term lease expenses recognized as current profit or loss
8276228.619494225.98
in the current period using the simplified approach
Total cash outflows related to leases 16408823.53 16042222.54
2392024 Annual Report of Luzhou Laojiao Co. Ltd.
Note: The leased assets of the Company include the buildings and constructions and the land use
right involved in operation. The leasing period of land use right is normally 15-30 years and the lease
contract of land use right generally includes the renewal option clause.Circumstances involving sale and leaseback transactions
N/A
7.57.2. The Company as lessor
Operating leases with the Company as lessor
□ Applicable □ N/A
Unit：CNY
Of which: income related to variable
Item Rental income lease payments not included in lease
receipts
Income from rental of buildings
11134073.64
equipment etc.Total 11134073.64
Finance leases with the Company as lessor
□Applicable □ N/A
Undiscounted lease receipts for each of the next five years
□Applicable □ N/A
Reconciliation of undiscounted lease receipts to net lease investments
7.57.3. Recognition of gain or loss on sales under finance leases with the company as a
manufacturer or dealer
□Applicable □ N/A
7.58. Others
N/A
8. Research and Development Expenditure
Unit：CNY
Item Current Period Previous Period
Material consumption 41829620.38 45375170.08
Research and development and
70364674.6369745731.02
technical services
Share payment expense 12843885.44 25097365.62
Other indirect costs 135937130.65 85737530.61
Total 260975311.10 225955797.33
Of which: Expensed research and
260975311.10225955797.33
development expenditure
2402024 Annual Report of Luzhou Laojiao Co. Ltd.
9. Changes in consolidated scope
9.1. Business combination not under common control
9.1.1. Business combination not under common control during current period
There is no business combination not under common control during current period.
9.2. Business combination under common control
9.2.1. Business combination under common control during current period
There is no business combination under common control during current period.
9.3. Reverse purchase
The basic information of the transaction the basis of the transaction constitutes the reverse purchase
whether the assets and liabilities retained by the listed company constitute the business and its basis
the determination of the merger cost and the adjustment of the equity amount and its calculation
according to the equity transaction:
There is no reverse purchase during current period.
9.4. Disposing subsidiaries
Whether there is a situation of losing control after disposing the investment in the subsidiary only
once
□ Yes □No
Whether there is a situation of disposing the investment in the subsidiary through several transactions
step by step and losing control during the period
□ Yes □No
9.5. Consolidated scope changes due to other reasons
Explain other reasons for changing consolidated scope (such as establishing a new subsidiary
liquidating a subsidiary) and its related situation:
Luzhou Laojiao Whitail Liquor Industry Co. Ltd. a subsidiary of the Company was liquidated and de-
registered in June 2024. And it has thus been excluded from the consolidated financial statements of
the Company.
9.6. Other
No
2412024 Annual Report of Luzhou Laojiao Co. Ltd.
10. Interests in other entities
10.1. Interests in subsidiaries
10.1.1. Group composition
Unit：CNY
Major Shareholding Proportion
Name of Registered Place of Nature of Acquisition
business
Subsidiaries capital registration business
location Direct Indirect
method
Luzhou
Baijiu
Laojiao 48758223
Luzhou Luzhou manufactur 100.00% Investment
Brewing 6.00
e and sales
Co. Ltd.Luzhou Red
Business
Sorghum Agricultural
combination
Modern 10000000. product
Luzhou Luzhou 60.00% under
Agricultural 00 planting and
common
Developme sales
control
nt Co. Ltd.Luzhou
Laojiao 10000000
Luzhou Luzhou Baijiu sales 100.00% Investment
Sales Co. 0.00
Ltd.Luzhou
Laojiao
Nostalgic 5000000.0
Luzhou Luzhou Baijiu sales 100.00% Investment
Liquor 0
Marketing
Co. Ltd.Luzhou
Laojiao
Selected
10000000.
Supply Luzhou Luzhou Baijiu sales 100.00% Investment
00
Chain
Manageme
nt Co. Ltd.Guangxi
Luzhou
Laojiao Red wine
10000000.
Imported Qinzhou Qinzhou production 100.00% Investment
00
Liquor and sales
Industry
Co. Ltd.Luzhou
Dingli
5000000.0
Liquor Luzhou Luzhou Baijiu sales 100.00% Investment
0
Industry
Co. Ltd.Luzhou
Laojiao
Qiankun
Cheteau 5000000.0
Luzhou Luzhou Baijiu sales 100.00% Investment
Custom 0
Liquor
Sales Co.Ltd.2
Luzhou
Laojiao
5000000.0
New Liquor Luzhou Luzhou Baijiu sales 100.00% Investment
0
Industry
Co. Ltd.Luzhou 3000000.0 Luzhou Luzhou Liquor 100.00% Investment
2422024 Annual Report of Luzhou Laojiao Co. Ltd.
Laojiao I & 0 import and
E Co. Ltd. export trade
Luzhou
Laojiao
Boda Liquor 12000000
Luzhou Luzhou Baijiu sales 75.00% Investment
Industry 0.00
Marketing
Co. Ltd.Luzhou
Laojiao
50000000. Fruit wine
Fruit Wine Luzhou Luzhou 41.00% Investment
00 sales
Industry
Co. Ltd.Mingjiang
6000000.0
Co. Ltd. America America Baijiu sales 54.00% Investment
0
(USD)
Luzhou
Laojiao
Internationa 20000000. Food import
Hainan Hainan 100.00% Investment
l Trade 00 and export
(Hainan)
Co. Ltd.Luzhou Technology
Pinchuang 50000000. developmen
Luzhou Luzhou 100.00% Investment
Technology 00 t and
Co. Ltd. service
Luzhou
Laojiao
Internationa
l
10000.00 Hong Kong Hong Kong Liquor sales 55.00% Investment
Developme
nt (Hong
Kong) Co.Ltd. (HKD)
Luzhou
Laojiao
Commercial
Business
Developme
500000.00 America America developmen 100.00% Investment
nt (North
t
America)
Co. Ltd.(USD)
Luzhou
Laojiao
60000000.
Electronic Luzhou Luzhou Liquor sales 90.00% Investment
00
Commerce
Co. Ltd.Luzhou
Laojiao
Whitail 10000000.Luzhou Luzhou Liquor sales 35.00% Investment
Liquor 00
Industry
Co. Ltd. 1
Luzhou
Business
Laojiao Health care
combination
Health 10000000. liquor
Luzhou Luzhou 100.00% under
Liquor 00 manufactur
common
Industry e and sales
control
Co. Ltd.Luzhou Business
Laojiao combination
5000000.0 Health care
Health Luzhou Luzhou 100.00% under
0 liquor sales
Sales Co. common
Ltd. control
Luzhou
50000000.
Laojiao Luzhou Luzhou Baijiu sales 40.00% 60.00% Investment
00
New Retail
2432024 Annual Report of Luzhou Laojiao Co. Ltd.
Co. Ltd.Luzhou
Technology
Laojiao
50000000 developmen
Technology Chengdu Chengdu 40.00% 60.00% Investment
0.00 t and
Innovation
service
Co. Ltd.Note: 1 Luzhou Laojiao Whitail Liquor Industry Co. Ltd. was liquidated and canceled in June 2024.Statement for that the proportion of share-holding is different from the proportion of voting rights:
Basis of holding half or less voting rights but still controlling the investee and holding more than half of
the voting rights but not controlling the investee:
Although the Company holds less than 51% of the equity in Luzhou Laojiao Fruit Wine Industry Co.Ltd. and Luzhou Laojiao Whitail Liquor Industry Co. Ltd. of the five members of the board of
directors of each of these companies three members are appointed by the Company which
represents a majority and the Company exercises substantive control over these companies.Therefore they are included in the scope of consolidation.
10.1.2. Important non-wholly-owned subsidiaries
Unit：CNY
Gains and losses
Proportion of share Dividends paid to
attributable to non- Closing balance of
holdings of non- non-controlling
Name of subsidiary Controlling non-controlling
Controlling shareholders during
shareholders during shareholders interest
shareholders current period
current period
Luzhou Laojiao Boda
Liquor Industry 25.00% 29668290.20 29668290.20 61843872.29
Marketing Co. Ltd.
10.1.3. Major financial information of important non-wholly-owned subsidiaries
Unit：CNY
Closing Balance Opening Balance
Name Non- Non-
of Non- Curre Non- CurreCurre curren Total Curre curren Total
subsid curren Total nt curren Total nt nt t liabiliti nt t liabiliti
iary t assets liabiliti t assets liabilitiassets liabiliti es assets liabiliti es
assets es assets es
es es
Luzho
u
Laojia
o
Boda
47114711223722375693569332203220
Liquor
36423642609360937754775402050205
Indust
6.866.867.717.714.624.625.475.47
ry
Marke
ting
Co.Ltd.Unit：CNY
Current Period Previous Period
Name of Total Total
subsidiary Operating comprehe Operating Operating comprehe Operating Net profit Net profit
revenue nsive cash flow revenue nsive cash flow
income income
Luzhou 1540208 1186731 1186731 1022042. 1012725 1187392 1187392 -
2442024 Annual Report of Luzhou Laojiao Co. Ltd.
Laojiao 491.81 60.82 60.82 22 794.94 79.29 79.29 5434821
Boda 5.68
Liquor
Industry
Marketing
Co. Ltd.
10.1.4. Significant restrictions on using the assets and liquidating the liabilities of the
Company
N/A
10.1.5. Financial support or other supports provided to structural entities incorporated into the
scope of consolidated financial statements
N/A
10.2. The transaction of the company with its owner's equity share changing but
the company still controls the subsidiary
10.2.1. Note to the owner's equity share changed in subsidiary
N/A
10.2.2. The transaction’s influence on the equity of non-controlling interests and the owner's
equity attributable to the company as the parent
N/A
10.3. Interests in joint ventures and associates
10.3.1. Important joint ventures and associates
Name of joint Major Shareholding proportion
Place of Business Accounting
venture/associ business
registration nature
ates location Direct Indirect
Method
Important joint
ventures:
none
Important
associates:
Huaxi
Chengdu Chengdu
Securities Securities 10.39% Equity method
Sichuan Sichuan
Co. Ltd.Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or
more voting rights but does not have a significant impact:
The Company has the substantive decision-making power so the Company still has significant
influence on Huaxi Securities.
2452024 Annual Report of Luzhou Laojiao Co. Ltd.
10.3.2. Major financial information of important associates
Unit：CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Current assets 93869804524.81 80257215749.71
Non-current assets 6470872129.58 8633260818.24
Total assets 100340676654.39 88890476567.95
Current liabilities 55278203069.28 47013859718.97
Non-current liabilities 21499772518.55 19074441893.35
Total liabilities 76777975587.83 66088301612.32
Non-controlling shareholder interest 16018731.95 17277841.64
Shareholder interest attributable to
23546682334.6122784897113.99
parent company
Share of net assets calculated based
2447340296.672368163636.40
on shareholding proportion
Adjusted
--Goodwill
--Unrealized profits of internal
transactions
--Others 167466735.90 167466735.90
Book value of equity investments in
2614807032.572535630372.30
associate companies
Fair value of equity investments in
associate companies that have public 2267226806.64 2117169677.44
quote
Operating revenue 3919594533.79 3180917154.72
Net profit 726724518.60 424951566.18
Net profit from discontinued
operation
Other comprehensive income 165051592.33 20272992.78
Total comprehensive income 893035220.62 445224558.96
Dividends from associate companies
13641557.208184934.32
this year
10.3.3. Financial information summarized of unimportant joint ventures and associate
companies
Unit：CNY
Closing Balance/Amount in current Opening Balance/Amount in previous
period period
Joint ventures:
Total following items calculated on
the basis of shareholding proportion
Associate companies:
Total book value of investments 186445285.36 172624461.20
Total following items calculated on
the basis of shareholding proportion
--Net profit 2120824.16 2436674.07
-- Total comprehensive income 2120824.16 2436674.07
2462024 Annual Report of Luzhou Laojiao Co. Ltd.
Other statements:
Unimportant associate companies refer to Luzhou Laojiao Postdoctoral Workstation Technology
Innovation Co. Ltd. Sichuan Development Liquor Investment Co. Ltd. CTS Luzhou Laojiao Cultural
Tourism Development Co. Ltd. Sichuan Tongniang Baijiu Industry Technology Research Institute Co.Ltd. and Sichuan Tianfu Granary Liquor Industry Co. Ltd.
10.3.4. Notes to the significant restrictions on the ability of joint ventures or associate
companies to transfer funds to the Company
None
10.3.5. The excess loss of joint ventures or associate companies
None
10.3.6. The unrecognized commitment related to investment to joint ventures
None
10.3.7. Contingent liabilities related to investment to joint ventures or associate companies
None
11. Government grants
11.1. Government grants recognized at the end of the reporting period at the
amount receivable
□Applicable □ N/A
Reasons for failing to receive government grants in the estimated amount at the estimated point in
time
□Applicable □ N/A
11.2. Liability items involving government grants
□Applicable □ N/A
Unit：CNY
Non- Other
Increase in operating Related to
Opening income in Other Closing
Item current income in assets/
Balance current changes Balance period current income
period period
Deferred 27772083. 71041000. 12140356. 86672726. Related to
income 74 00 91 83 assets
27772083.71041000.12140356.86672726.
Total
74009183
2472024 Annual Report of Luzhou Laojiao Co. Ltd.
11.3. Government grants recognized as current profit or loss
□Applicable □ N/A
Unit：CNY
Item Amount in current period Amount in previous period
Other income 41225885.28 51950003.11
Non-operating revenue
Total 41225885.28 51950003.11
12. Risks related to financial instruments
12.1. Various types of risks arising from financial instruments
The Company's primary financial instruments include monetary capital trading financial assets
accounts receivable receivables financing receivables other than tax refundable other equity
instruments accounts payable other payables lease liabilities some other current liabilities and loans.A detailed description of each financial instrument is set out in Note V and notes to the Consolidated
Financial Statement.Risks related to these financial instruments and risk management policies the Company has adopted
to reduce these risks are described as follows. The Company management manages and monitors the
risk exposure to ensure the above risks are controlled in a limited scope.The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk variable
rarely changes in isolation and the correlation between variables will have a significant effect on the
final impact amount of the change of a risk variable the following content is based on the assumption
that the change of each variable is independent.Risk management objective: The Company strikes an appropriate balance between risk and return and
strives to minimize the negative impact of risk on the Company's operating performance and maximize
the interests of shareholders and other equity investors.Risk management policy: The Board of Directors shall be responsible for planning and establishing a
risk management framework formulating risk management policies and related guidelines and
supervising the implementation of risk management measures. The Risk Management Committee shall
carry out risk management through close collaboration (including the identification evaluation and
avoidance of relevant risks) with other business units of the Company in accordance with the policies
approved by the Board of Directors. The internal audit department shall conduct regular audits on risk
management controls and procedures and report the results to the Audit Committee.The Company has formulated risk management policies to identify and analyze the risks it faces
clarifying specific risks and covering many aspects such as credit risk liquidity risk and market risk
management. On a regular basis the Company evaluates the specific marketing environment and
various changes in the Company's business operations to determine whether any risk management
policy and system should be updated. The Company diversifies the risks to financial instruments
2482024 Annual Report of Luzhou Laojiao Co. Ltd.
through appropriately diversified investments and business portfolios and reduces the risk of
concentration in any single industry specific geographic area or specific counterparty by formulating
appropriate risk management policies.
12.1.1. Credit risk
Credit risk refers to the risk that one party to a financial instrument cannot perform its obligations
causing financial losses to the other party. The Company only trades with recognized reputable and
large third parties. In accordance with the Company's policy the terms of sale with customers are
based on transactions of payment before delivery with only a small amount of credit transactions and
credit review for all customers who require credit to trade. In addition the Company continuously
monitors and controls the balance of the receivables to ensure that the Company does not face
significant bad debt risks. In addition the Company makes full provision for expected credit losses at
each balance sheet date based on the collection of receivables. Therefore the Company's
management believes that the Company's credit risk has been greatly reduced.The Company's working capital is deposited in banks with high credit rating so the credit risk of working
capital is low.The Company's risk exposures are spread across multiple contract parties and customers in multiple
geographies with customers in the commerce industry in addition to the alcohol distribution industry
(the main industry). No systemic risk has been identified in the relevant industries. Therefore the
Company has no significant credit concentration risk. As at December 31 2024 the balance of the top
five customers of the Company's accounts receivable amounted to CNY 10987000 accounting for
94.70% of the balance of the Company's accounts receivable.
12.1.2. Liquidity risk
Liquidity risk refers to the risk unable to obtain sufficient funds in time to meet business development
needs or to repay debts due and other payment obligations. The Company has sufficient working
capital. The liquidity risk is extremely small. The Company's objective is to use a variety of financing
instruments such as bank clearing bank loans and issuing corporate bonds to maintain a balance
between financing sustainability and flexibility. As at December 31 2024 the Company has been able
to meet its own continuing operation requirements through the use of cash flow from operations.The analysis of the financial liabilities held by the Company based on the maturity period of the
undiscounted remaining contractual obligations is as follows:
Closing Balance
Item
Book value Contract amount not Within 1 year 1-2 years 2-3 years Over 3 years
discounted
Accounts
1844497206.78 1844497206.78 1844497206.78 payable
Other
843927138.88 843927138.88 843927138.88 payable
Non-current
3276628616.743276628616.743276628616.74
liabilities
2492024 Annual Report of Luzhou Laojiao Co. Ltd.
Closing Balance
Item
Book value Contract amount not Within 1 year 1-2 years 2-3 years Over 3 years discounted
due within
one year
Long-term
6279900000.00 6279900000.00 4040500000.00 2 239400000.00 loans
Lease
24528519.13 26472170.43 10401588.63 5679181.80 10391400.00 liabilities
Total 12269481481.53 12271425132.83 5965052962.40 4050901588.63 2245079181.80 10391400.00
12.1.3. Market risk
(1) Foreign exchange risk
The foreign exchange risk refers to the risk of loss due to exchange rate changes. Apart from the three
subsidiaries of the Company which make purchases and sales in USD and HKD the other major
business activities are denominated and settled in CNY. The Company closely monitors the impact of
exchange rate fluctuations on its foreign exchange risk and actively tracks the scale of foreign currency
transactions as well as foreign currency assets and liabilities to minimize exposure to exchange rate
risks. In order to hedge risks in the foreign exchange market prevent adverse effects from significant
fluctuations in exchange rates control financial expenses and reduce exchange rate risks in overseas
operations the Company's subsidiary Luzhou Laojiao International Development (Hong Kong) Co.Ltd. has engaged in forward foreign exchange contract transactions. As at December 31 2024 the
Company's assets and liabilities are mainly in CNY balance. At present the Company's management
considers the impact of changes in foreign exchange risk on the Company's financial statements to be
less.
(2) Rate risk
The Company's interest rate risk mainly arises from the long-term loans from banks. Financial liabilities
based on the floating interest rate will cause the cash flow interest rate risk to the Company and
financial liabilities based on the fixed interest rate the fair value interest rate risk. The Company will
determine the corresponding proportion between the contracts with fixed interest rate and those with
floating interest rate in combination with current market condition.
(3) Other price risks
Other price risk refers to the risk of fluctuation caused by market price changes other than foreign
exchange risk and interest rate risk whether these changes are caused by factors related to a single
financial instrument or its issuer or all similar financial instruments traded in the market. Other price
risks faced by the Company mainly come from held-for-trading financial assets and investments in other
equity instruments measured at fair value.
12.2. Financial assets
12.2.1. Classification of transfer methods
□Applicable □ N/A
Unit：CNY
Nature of transferred Amount of Basis for
Transfer method Derecognized or not
financial assets transferred financial derecognition
2502024 Annual Report of Luzhou Laojiao Co. Ltd.
assets
Outstanding bank
Almost all its risks
Endorsement of acceptance bills in
307684810.36 Yes and rewards have
notes accounts receivable
been transferred
financing
Outstanding bank
Almost all its risks
acceptance bills in
Discount of notes 7186680891.00 Yes and rewards have
accounts receivable
been transferred
financing
Total 7494365701.36
12.2.2. Financial assets derecognized due to transfer
□Applicable □ N/A
Unit：CNY
Method of financial assets Amount of derecognized Gains or losses related to
Item
transfer financial assets derecognition
Outstanding bank
acceptance bills in
Endorsement of notes 307684810.36
accounts receivable
financing
Outstanding bank
acceptance bills in
Discount of notes 7186680891.00 -26199158.05
accounts receivable
financing
Total 7494365701.36 -26199158.05
12.2.3. Continued involvement in the transfer of assets financial assets
□Applicable □ N/A
Other statement
13. Fair value disclosure
13.1. Closing fair value of assets and liabilities measured at fair value
Unit：CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
1. Continuous
measurement at fair -- -- -- --
value
1.1 Held-for-trading
1694282295.971694282295.97
financial assets
1.1.1 Financial
assets measured at
fair value with their
1694282295.971694282295.97
changes included
into current
profits/losses
1.1.1.4 Wealth
management 1694282295.97 1694282295.97
products
2512024 Annual Report of Luzhou Laojiao Co. Ltd.
1.3 Investments in
other equity 373936795.90 33257910.65 407194706.55
instruments
1.6 Accounts
1801947455.781801947455.78
receivable financing
Total assets
continuously
373936795.903529487662.403903424458.30
measured at fair
value
2. Discontinuous
measurement at fair -- -- -- --
value
13.2. Determination basis of the market value of items measured continuously and
discontinuously within Level 1 of the fair value hierarchy
The listed companies in mainland China determine the fair value of other equity instrument investment
according to the closing price on the last trading day of Shenzhen Stock Exchange or Shanghai Stock
Exchange at the period-end. The companies listed in Hong Kong determine the fair value of other
equity instrument investment according to the closing price of Hong Kong Dollar on the last trading day
of Hong Kong Stock Exchange at the period-end and the median price of CNY exchange rate disclosed
on the same day by China Foreign Exchange Trade System.
13.3. Valuation technique adopted and nature and amount determination of
important parameters for continuously and discontinuously within Level 2 of the fair
value hierarchy
None
13.4. Valuation technique adopted and nature and amount determination of
important parameters for continuously and discontinuously within Level 3 of the fair
value hierarchy
Trading financial assets are wealth management products of the collective asset management plan and
are measured at fair value based on the amount calculated on the basis of the net unit value of the
underlying assets as published on the official website of the asset manager.Accounts receivable financing: As the timing and price of bills discounted may not be reliably estimated
due to the short maturity of the bills all being less than one year and the endorsement of the negotiable
bills being valued at book value the Company measures the bills receivable at their book value as a
reasonable estimate of fair value.Other equity instrument investment: Due to no significant changes in business environment business
condition and financial situation of invested companies the Company shall measure the fair value
according to the lower one between investment cost and the share of net assets enjoyed by invested
companies on the base date as the reasonable estimation.
2522024 Annual Report of Luzhou Laojiao Co. Ltd.
13.5. Continuous fair value measurement items at level 3 adjustment between the
beginning carrying value and the ending carrying value and sensitivity analysis on
unobservable parameters
None
13.6. Explain the reason for conversion and the policy governing when the
conversion happens if conversion happens among continuous fair value
measurement items at different level
None
13.7. Changes in valuation techniques in the reporting period and reasons for the
changes
None
13.8. Fair value of financial assets and liabilities not measured at fair value
None
14. Related parties and related party transactions
14.1. The parent company of the Company
Shareholding Voting rights
Registration Registered
Parent company Business nature proportion by the proportion by the
place capital
parent company parent company
Investment and
Luzhou Laojiao
Luzhou Sichuan asset 2798818800 25.89% 50.83%
Group Co. Ltd.management
Statements for situation of parent company:
Note: The reason for the inconsistency between the shareholding proportion and voting rights
proportion by the controlling shareholder is that: * On May 27 2021 Laojiao Group and XingLu
Investment Group the second biggest shareholder renewed the concerted action agreement which is
valid as of June 1 2021 and ends on May 31 2024. The agreement: when the parties in deal with the
Company’s business development and make decisions by shareholders meeting and board of
directors according to the company law and other relevant laws and regulations and the articles of
association the parties should adopt the consistent actions. During the effective period of this
agreement before any party submits proposals involving the major issues of the Company's business
development to the shareholders meeting or exercise the voting rights at the shareholders meeting
and the board of directors the internal coordination for relevant proposals and voting events shall be
conducted by persons acting in concert. If there are different opinions it will be subject to Laojiao
Group’s opinion. Before the expiration date of the above-mentioned agreement this year Laojiao
Group and XingLu Investment Group renewed the concerted action agreement again on May 23
2024. The validity period of this agreement is from June 1 2024 to May 31 2027 and the relevant
2532024 Annual Report of Luzhou Laojiao Co. Ltd.
contents are consistent with the aforementioned agreement. * From December 2023 to June 2024
Laojiao Group increased its holdings of the Company’s shares by 1140200 shares through its
wholly-owned subsidiary Sichuan Golden Rudder Investment Co. Ltd. via centralized bidding
transactions. For details please see Note 3. Company Profile.The nature of the controlling shareholder: Limited liability company (state-owned); Registration place:
No. 9 Nanguang Road Longmatan District Luzhou City China; Business Scope: General project:
Social economy consulting services; business management consulting; financial consulting; business
headquarters management; import and export agency; trade brokerage; crops planting services; trees
planting operation; elder care services; tourism development project planning and consulting;
technical agency services; engineering and technological research and experimental development;
display device manufacturing; supply chain management services; technical services technical
development technical consulting technical communication technical transfer and technical
promotion; domestic freight transport agency; equity fund-invested asset management services
passenger ticket agent and business agency service. It shall also include licensed projects (business
activities can be carried out legally and independently with business license in addition to projects
that must be approved by law): Agency bookkeeping; career intermediary activities; food production;
food sales; medical services. (business activities that require approval in accordance with laws can
be carried out upon approval of relevant authorities and the specific business projects shall be
subject to the approval document or license of relevant departments)
The final control party of the Company is SASAC of Luzhou.
14.2. Subsidiaries of the Company
For details please see Note 10.1. Interests in subsidiaries.
14.3. Joint ventures and associates of the Company
For details please see Note 10.3. Interests in joint ventures and associates.Information on other joint ventures or associates that have related party transactions with the Company
in the current period or in the previous period and result in balance:
There are no other joint ventures or associates that have related party transactions with the Company
in the current period or in the previous period and result in balance.
14.4. Other related party of the Company
Name of Other Related Party Relationship with the Company
Luzhou XingLu Investment Group Co. Ltd. The second largest shareholder
Luzhou Airport (Group) Co. Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Water (Group) Co. Ltd. Subsidiary of the second largest shareholder
Luzhou Public Transport Group Co. Ltd. Subsidiary of the second largest shareholder
Luzhou XingLu Property Management Co. Ltd. Subsidiary of the second largest shareholder
CTS Luzhou Laojiao Cultural Tourism Development Co.Associate
Ltd.Sichuan Tianfu Granary Liquor Industry Co. Ltd. Associate
Sichuan Development Liquor Investment Co. Ltd. Associate
Luzhou Sanrenxuan Liquor Industry Co. Ltd. Associate of the controlling shareholder
2542024 Annual Report of Luzhou Laojiao Co. Ltd.
Sichuan Jianxing Park Operation Management Co. Ltd. Associate of the controlling shareholder
Luzhou COSCO Shipping Logistics Co. Ltd. Associate of the controlling shareholder
Sichuan Landstar Supply Chain Technology Co. Ltd. Associate of the controlling shareholder
Shijiazhuang Chengtong Lianzhong Storage and
Associate of the controlling shareholder
Transportation Co. Ltd.Sichuan Sidu Chishui Red Culture Development Co. Ltd. Associate of the controlling shareholder
Sichuan Geyuan Equity Investment Fund Management
Associate of the controlling shareholder
Co. Ltd.Luzhou Bank Co. Ltd. Associate of the controlling shareholder
Luzhou Rural Commercial Bank Co. Ltd. Associate of the controlling shareholder
Sichuan Lianzhong Supply Chain Service Co. Ltd. Other subsidiary of the controlling shareholder
Sichuan Kangrun Group Construction and Installation
Other subsidiary of the controlling shareholder
Engineering Co. Ltd.Shenzhen Mingxincheng Lighting Technology Co. Ltd. Other subsidiary of the controlling shareholder
Luzhou Yuanhai Lianzhong Supply Chain Co. Ltd. Other subsidiary of the controlling shareholder
APTCC Other subsidiary of the controlling shareholder
Luzhou Laojiao Innovation Industry Holdings Co. Ltd. Other subsidiary of the controlling shareholder
Luzhou Jiachuang Liquor Supply Chain Management
Other subsidiary of the controlling shareholder
Co. Ltd.Luzhou Laojiao Property Service Co. Ltd. Other subsidiary of the controlling shareholder
SC Global Wine Corporation Limited Other related party
Sichuan Not Single Cultural and Creative Development
Other related party
Co. Ltd.Minority shareholder of the subsidiary Custom Liquor
Sichuan Brewing Art E-business Co. Ltd.Company
Minority shareholder of the subsidiary Custom Liquor
Luzhou Yucheng Trading Co. Ltd.Company
Minority shareholder of the subsidiary Custom Liquor
Luzhou 2013 Liquor Marketing Co. Ltd.Company
Sichuan Meihe Winery Industry Co. Ltd. Minority shareholder of the subsidiary Fruit Wine Industry
14.5. Related transactions
14.5.1. Related transactions of purchase and sales of goods / rendering and receipt of
services
Table of purchase of goods / receipt of services
Unit：CNY
Whether over
Name of Related Amount in Approved trading Amount in
Transaction approved trading
Party current period amount previous period
amount
Receipt of
services:
Training
accommodation
Laojiao Group warehousing
and its loading and
subsidiaries joint unloading 94637427.08 49434313.56
ventures and transportation
associates services and
property costs
etc.Luzhou XingLu Property service
Investment advertising 29091328.49 28275528.70
Group Co. Ltd. service etc.
2552024 Annual Report of Luzhou Laojiao Co. Ltd.
and its
subsidiaries
CTS Luzhou
Laojiao Cultural Conference fees
Tourism travel service 10275324.41 7840147.72
Development fee etc.Co. Ltd.Subtotal of
receipt of 134004079.98 85549989.98
services
Purchase of
goods:
Laojiao Group
and its other Raw materials
subsidiaries joint water power 322867238.48 193980923.60
ventures and etc.associates
Luzhou XingLu
Investment
Group Co. Ltd. Gas water 14699091.83 14191020.92
and its
subsidiaries
Sichuan Meihe
Winery Industry Other wine 20160.00
Co.Ltd.Subtotal of
purchase of 337566330.31 208192104.52
goods
Total 471570410.29 293742094.50
Table of sales of goods and rendering of service
Unit：CNY
Name of Related Party Transaction Amount in current period Amount in previous period
CTS Luzhou Laojiao
Cultural Tourism Liquor etc. 102225092.84 80916407.69
Development Co. Ltd.Laojiao Group and its
Liquor etc. 36151086.06 41823418.45
subsidiaries
Luzhou Sanrenxuan Liquor
Liquor 37943774.39 28674936.80
Industry Co. Ltd.Sichuan Tianfu Granary
Liquor 9273012.30
Liquor Industry Co. Ltd.SC Global Wine
Liquor 697150.36
Corporation Limited
Sichuan Jianxing Park
Operation Management Liquor 76496.28
Co. Ltd.Sichuan Sidu Chishui Red
Culture Development Co. Liquor 7764.66
Ltd.Sichuan Not Single
Cultural and Creative Liquor 6326.76
Development Co. Ltd.Sichuan Geyuan Equity
Investment Fund Liquor 1150.32
Management Co. Ltd.
2562024 Annual Report of Luzhou Laojiao Co. Ltd.
Sichuan Brewing Art E-
Liquor 72355864.08
business Co. Ltd.Luzhou Yucheng Trading
Liquor 3787740.88
Co. Ltd.Luzhou 2013 Liquor
Liquor 580.00
Marketing Co. Ltd.Total 186381853.97 227558947.90
14.5.2. Related party leasing
The Company as lessor:
Unit：CNY
Leasing income recognized Leasing income recognized
Name of lessee Type of leased asset
during current period during previous period
Laojiao Group and its House and equipment
3347760.002140080.00
subsidiaries lease
The Company as lessee:
Unit：CNY
Rental expenses Variable lease
of short-term payments not
Income expense
lease simplified included in the Increased use
Paid rent of lease liabilities
Type treated and low- measurement of right assets
undertaken
Name value asset lease lease liabilities (if
of
of (if applicable) applicable)
lessor assets
Amoun Amoun Amoun Amoun Amoun
Amoun Amoun Amoun Amoun Amoun
leased t in t in t in t in t in t in t in t in t in t in
previo previo previo previo previo
current current current current current
us us us us us
period period period period period
period period period period period
Laojiao
Group
House 3364 2480 3364 2480
and its
lease
subsidi 818.53 516.20 818.53 516.20
aries
14.5.3. Key management compensation
Unit：CNY
Item Amount in current period Amount in previous period
Key management compensation 13449854.68 14678785.22
14.5.4. Other related transactions
The Company has daily fund deposit business with its related parties Luzhou Bank Co. Ltd. and
Luzhou Rural Commercial Bank Co. Ltd. As of December 31 2024 the bank deposit balances of the
Company in Luzhou Bank Co. Ltd. and Luzhou Rural Commercial Bank Co. Ltd. were CNY
2485514200 and CNY 600010000 respectively. In 2024 the interest income from bank deposits in
Luzhou Bank Co. Ltd. and Luzhou Rural Commercial Bank Co. Ltd. were CNY82059900 and CNY
21000500 respectively. This year and last year the Company did not conduct loan business with the
above two banks.
2572024 Annual Report of Luzhou Laojiao Co. Ltd.
14.6. Receivables and payables of related parties
14.6.1. Receivables
Unit：CNY
Closing Balance Opening Balance
Item Related party Provision for bad Provision for bad
Book value Book value
debt debt
Luzhou Laojiao
Prepayment 9180164.89 3522751.07
Group Co. Ltd.Luzhou XingLu
Prepayment Water (Group) 691263.37 705446.15
Co. Ltd.Luzhou Public
Prepayment Transport Group 161232.86 126001.64
Co. Ltd.CTS Luzhou
Laojiao Cultural
Prepayment Tourism 518886.00
Development
Co. Ltd.Sichuan Meihe
Prepayment Winery Industry 2961479.50 2961479.50
Co.Ltd.Other Luzhou Airport
10000.00
receivables (Group) Co. Ltd.
14.6.2. Payables
Unit：CNY
Item Related party Closing Balance Opening Balance
Sichuan Lianzhong Supply
Accounts payable 3302166.70 10583919.37
Chain Service Co. Ltd.Sichuan Kangrun Group
Construction and
Accounts payable 3738.20
Installation Engineering
Co. Ltd.Luzhou Yuanhai Lianzhong
Accounts payable 109200.00
Supply Chain Co. Ltd.Luzhou Xinglu Property
Accounts payable 342099.50
Management Co. Ltd.CTS Luzhou Laojiao
Contractual liabilities (tax
Cultural Tourism 30406394.92 13933613.22
inclusive)
Development Co. Ltd.Contractual liabilities (tax
APTCC 709197.66
inclusive)
Contractual liabilities (tax Luzhou Sanrenxuan Liquor
111325.612553000.00
inclusive) Industry Co. Ltd.Sichuan Jianxing Park
Contractual liabilities (tax
Operation Management 1374481.80
inclusive)
Co. Ltd.Contractual liabilities (tax Sichuan Lianzhong Supply
110091.792508.09
inclusive) Chain Service Co. Ltd.Contractual liabilities (tax Luzhou Laojiao Innovation
6587508.00
inclusive) Industry Holdings Co. Ltd.
2582024 Annual Report of Luzhou Laojiao Co. Ltd.
Shijiazhuang Chengtong
Contractual liabilities (tax
Lianzhong Storage and 768.78
inclusive)
Transportation Co. Ltd.Luzhou Jiachuang Liquor
Contractual liabilities (tax
Supply Chain Management 2135.99
inclusive)
Co. Ltd.Contractual liabilities (tax Sichuan Tianfu Granary
6726987.70
inclusive) Liquor Industry Co. Ltd.Luzhou Xinglu Property
Other payables 154920.20 154920.20
Management Co. Ltd.Sichuan Kangrun Group
Construction and
Other payables 70000.00
Installation Engineering
Co. Ltd.Other payables APTCC 150000.00
Luzhou Laojiao Group Co.Other payables 5000.00
Ltd.CTS Luzhou Laojiao
Other payables Cultural Tourism 1355000.00 1050000.00
Development Co. Ltd.Sichuan Jianxing Park
Other payables Operation Management 100000.00
Co. Ltd.Luzhou Laojiao Innovation
Other payables 206000.00
Industry Holdings Co. Ltd.Sichuan Development
Other payables 4494000.00 4494000.00
Liquor Investment Co. Ltd.Sichuan Lianzhong Supply
Other payables 47074343.00 37911448.00
Chain Service Co. Ltd.Luzhou Yuanhai Lianzhong
Other payables 50000.00 50000.00
Supply Chain Co. Ltd.Luzhou Laojiao Property
Other payables 30020.58
Service Co. Ltd.Luzhou Sanrenxuan Liquor
Other payables 300000.00 150000.00
Industry Co. Ltd.Sichuan Tianfu Granary
Other payables 100000.00
Liquor Industry Co. Ltd.
14.7. Commitments of the related parties
None
15. Stock payment
15.1. The overall situation of share-based payments
□ Applicable □ N/A
Unit：CNY
Type of Granted in the Current Exercised in the Unlocked in the Current Invalid in the Current
granting Period Current Period Period Period
object Number Amount Number Amount Number Amount Number Amount
2869174.43040635361017.
36266.00
0037.8214
2592024 Annual Report of Luzhou Laojiao Co. Ltd.
2869174.43040635361017.
Total 36266.00
0037.8214
Outstanding stock options or other equity instruments at the end of the reporting period
□Applicable □ N/A
Other statements:
Note 1: At the 12th Meeting of the 10th Board of Directors of the Company held on December 29 2021
the Proposal on the Grant of Restricted Shares to Awardees was reviewed and approved and it was
agreed to grant 6928600 restricted shares to 441 awardees for the first time at CNY 92.71 per share
with December 29 2021 as the grant date.According to the incentive plan its validity period lasts from the date of registration for the grant of
restricted shares until all restricted shares are lifted from restricted sales or repurchased and retired for
a maximum of 60 months. The lifting restriction period of the restricted shares shall be 24 months from
the date of completion of registration. The restricted shares will be lifted from restricted sales in three
batches after 24 months from the date of completion of registration in the proportion of 40.00%
30.00% 30.00% respectively for each lifting.
In February 2024 the Company announced that 435 awardees met the lifting conditions in the first
lifting restriction period under the 2021 Restricted Share Incentive Plan of the Company. The number of
restricted shares that can be lifted from restricted sales was 2734640 accounting for 0.19% of the
current total share capital of the Company.In September 2024 the Company announced that 45 awardees met the lifting conditions in the first
lifting restriction period under the 2021 Restricted Share Incentive Plan Reserved Portion of the
Company. The number of restricted shares that can be lifted from restricted sales was 134534
accounting for 0.01% of the current total share capital of the Company.Note 2: In 2024 as five awardees no longer met the incentive conditions the Company repurchased
and canceled a total of 36266 restricted shares that had been granted but not yet released from
restrictions for these incentive recipients. As at the end of 2024 the Company had completed the
repurchase and cancellation of the above-mentioned shares.
15.2. Equity-settled share-based payments
□ Applicable □ N/A
Unit：CNY
Method of determining the fair value of equity instruments The closing price of restricted stocks on the grant date
on the grant date deducted the grant price thereof
Important parameters of fair value of equity instruments
The closing price of restricted stocks on the grant date
on the grant date
The Company's management considered factors such as
Basis to determine number of equity instrument that can changes in the number of eligible employees for the latest
be exercised exercisable options and the level of performance
achievement to make the best estimate.
2602024 Annual Report of Luzhou Laojiao Co. Ltd.
Reason for remarkable difference between the estimate
N/A
of the current period and that of previous period
Total amount of equity-settled share-based payments
1642758677.41
included into capital reserves
Total costs of recognizing equity-settled share-based
185352031.51
payments in the current period
15.3. Cash-settled share-based payments
□ Applicable □ N/A
15.4. Share-based payment expenses in the current period
□ Applicable □ N/A
Unit：CNY
Expenses for equity-settled share- Expenses for cash-settled share-
Type of granting object
based payments based payments
Production staff 23192308.80
Sales staff 48618883.85
Administrative staff 100696953.42
R&D staff 12843885.44
Total 185352031.51
15.5. Modification and termination of share-based payments
None
16. Commitments and contingencies
16.1. Commitments
Significant commitments at the balance sheet date
None
16.2. Contingencies
16.2.1. Significant contingencies at the balance sheet date
1. Fund involving contract disputes
On October 15 2014 and January 10 2015 the Company disclosed three saving deposits involving
contract disputes in Agricultural Bank of China Changsha Yingxin Sub-branch Industrial and
Commercial Bank of China Nanyang Zhongzhou Sub-branch and another bank with a total amount
of CNY 500 million. The public security organization has investigated and the investigation of related
cases and the preservation of assets are under way. The Company has initiated a civil procedure to
recover the loss from the responsible unit. As of the period-end the Company has recovered the
above-mentioned saving deposits involving contract disputes with CNY 375900700.
2. Dispute over the Specialized Subcontract for Construction Works
2612024 Annual Report of Luzhou Laojiao Co. Ltd.
China Second Metallurgy Group Co. Ltd. (hereinafter referred to as "China Second Metallurgy") was
the EPC contractor for the technical renovation project of Luzhou Laojiao Intelligent Packaging Center.On October 11 2021 Longpan Construction Engineering Group Co. Ltd. (hereinafter referred to as
"Longpan Construction") entered into a Specialized Subcontract for Construction Works with China
Second Metallurgy under which China Second Metallurgy subcontracted the slope support works of
the project to Longpan Construction. Due to a dispute over project payment settlement between
China Second Metallurgy and Longpan Construction Longpan Construction filed a lawsuit against
China Second Metallurgy with the Jiangyang District People’s Court of Luzhou naming Luzhou
Laojiao Brewing Co. Ltd. the project owner as a co-defendant. On November 4 2024 Longpan
Construction applied to the Jiangyang District People’s Court of Luzhou for the preservation of
litigation-related assets. The court accordingly froze bank deposits of CNY 11000000 of the Brewing
Company.In another dispute over a construction subcontract involving natural persons Guan Jian and Cheng
Yun as plaintiffs and China Construction First Group Corporation Limited and Sichuan Zhonghuan
Yineng Environmental Engineering Co. Ltd. as defendants with Dujiangyan Qihao Seedling Planting
Co. Ltd. and Sichuan Jumao Labor Service Co. Ltd. as third parties Luzhou Laojiao Brewing Co.Ltd. and the Company were also named as co-defendants. The plaintiffs also applied to the
Jiangyang District People’s Court of Luzhou for the preservation of litigation-related assets. The court
accordingly froze bank deposits of CNY 6990003.44 of the Brewing Company.As of December 31 2024 the Group was also involved in several lawsuits arising from daily
operations with relatively small amounts in dispute. However the Group believes that any liabilities
arising from these minor lawsuits will not have a material adverse impact on the Group’s financial
position or operating results.Except for the above matters the Company has no other significant contingencies that need to be
disclosed as of the end of the reporting year.
16.2.2. Explanation shall be given even if there is no significant contingency for the Company
to disclose
There was no significant contingency in the Company to disclose.
17. Post balance sheet event
17.1. Significant non-adjustment matters
None
17.2. Profit distribution
Dividends to be distributed for every 10 existing shares
45.92
held (CNY)
Upon the resolution of the Board of Directors the 2024
Profit distribution plan profit distribution plan was approved: Based on the
current 1471951503 shares a cash dividend of CNY
2622024 Annual Report of Luzhou Laojiao Co. Ltd.
45.92 (tax included) will be distributed for every 10
existing shares held representing a total cash dividend
amount of CNY 6759201301.78 (tax included). Where
any change occurs to the Company's total share capital
before the implementation of the distribution plan
relevant adjustments shall be made with the same total
distribution amount.1
Note: 1 The Company has implemented the interim dividend plan for 2024 on January 24 2025
distributing a cash of CNY 13.58 (tax included) for every 10 existing shares held to all shareholders
totaling CNY 1998910141.07 (tax included) distributed. If the above-mentioned plan is reviewed
and approved by the shareholders’ meeting the total cumulative cash dividend of the Company in
2024 will be CNY 8758111442.85 (tax included) accounting for approximately 65.00% of the net
profit attributable to shareholders of the listed company in 2024.
17.3. Sales return
There are no important sales returning after balance sheet date.
17.4. Statement for other post balance sheet events
1. The achievement of lifting the restriction conditions in the first restriction period under the 2021
Restricted Share Incentive Plan Reserved Portion
At the 8th meeting of the 11th Board of Directors held on January 21 2025 the Proposal on the
Achievement of Lifting the Restriction Conditions in the First Restriction Period under the 2021
Restricted Share Incentive Plan Reserved Portion was reviewed and approved. In accordance with
the relevant provisions of the 2021 Restricted Share Incentive Plan (Draft) and the Performance
Assessment Measures for the 2021 Restricted Share Incentive Pllan the restriction conditions in the
first restriction period under the 2021 Restricted Share Incentive Plan Reserved Portion have been
achieved. The Company agreed to proceed with the restriction lifting procedures for 17 incentive
recipients who met the conditions. Restricted shares eligible for release from restricted sale
amounted to 37069 shares representing 0.0025% of the current total share capital of the Company.This proposal was considered and approved by the Remuneration and Appraisal Committee of the
Board of Directors of the Company. The date of listing for the restricted shares eligible for release
from restricted sale was February 17 2025.
2. The achievement of lifting the restriction conditions in the second restriction period under the 2021
Restricted Share Incentive Plan
At the 8th meeting of the 11th Board of Directors held on January 21 2025 the Proposal on the
Achievement of Lifting the Restriction Conditions in the Second Restriction Period under the 2021
Restricted Share Incentive Plan was reviewed and approved. In accordance with the relevant
provisions of the 2021 Restricted Share Incentive Plan (Draft) and the Performance Assessment
Measures for the 2021 Restricted Share Incentive Plan the restriction conditions in the second
restriction period under the 2021 Restricted Share Incentive Plan have been achieved. The Company
agreed to proceed with the restriction lifting procedures for 434 awardees who met the conditions.Restricted shares eligible for release from restricted sale amounted to 2022530 shares representing
0.1374% of the current total share capital of the Company. This proposal was considered and
2632024 Annual Report of Luzhou Laojiao Co. Ltd.
approved by the Remuneration and Appraisal Committee of the Board of Directors of the Company.The date of listing for the restricted shares eligible for release from restricted sale was February 24
2025.
3. Except for the above matters the Company has no other post balance sheet events.
18. Other important information
18.1. Annuity plan
The Company carried out the enterprise annuity payment work normally during the reporting period.The enterprise annuity funds are paid by both the Company and employees. The Company's
contribution shall not exceed 8% of the Company's total salary in the previous year as stipulated by
the state and the individual contribution shall be withheld by the Company according to 1% of total
salary of the employee in the previous year.
18.2. Segment information
18.2.1 Recognition basis and accounting policies of reportable segment
Except for the business on baijiu sales the Company does not operate other businesses that have a
significant impact on operation results. In addition the Company operates mainly from China and
main assets also located in China so the Company does not need to disclose segment data.
18.3. Other significant events that can affect investors’ decision
18.3.1 Saving deposits involving contract disputes
As stated in Note 16.2 three saving deposits involved contract disputes in Agricultural Bank of China
Changsha Yingxin Sub-branch Industrial and Commercial Bank of China Nanyang Zhongzhou Sub-
branch and another bank with a total amount of CNY 500 million. At present the investigation of
related cases and the preservation of assets have been under way. The Company has initiated a civil
procedure to recover the loss from the responsible unit.Taking into account the current amount of assets preserved by the public security authorities and the
contents of the professional legal opinion issued by Beijing Weiheng (Chengdu) Law Firm on January 6
2025 that “given that since the issuance of the previous legal opinion a few recovery has beenachieved through the criminal and civil execution totalling CNY 376 million. At the same time it is
suggested that the total amount of bad debt provision for the three aforementioned places remain CNY
120 million” the Company has made a bad debt provision of CNY 120 million for savings deposit
involved in contractual disputes as of the end of the period and the amount of the bad debt provision
may be adjusted in the future based on the litigation process and recovery.
2642024 Annual Report of Luzhou Laojiao Co. Ltd.
18.3.2. Deliberating and approving the Proposal on the De-registration of Luzhou Laojiao
Whitail Liquor Industry Co. Ltd.On June 4 2024 at the 40th meeting of the 10th Board of Directors the Proposal on the De-
registration of Luzhou Laojiao Whitail Liquor Industry Co. Ltd. was deliberated and approved. Luzhou
Laojiao Whitail Liquor Industry Co. Ltd. ("Whitail Company") is a subsidiary of Luzhou Laojiao
Electronic Commerce Co. Ltd. a subsidiary in which the Company holds 90% of the shares and is
mainly responsible for R&D and sales of innovative products such as whitail professional base liquor
twelve zodiac ready-to-drink liquor baijiu aged in oak barrel and Panda Xiaojiu etc. According to the
Company's strategic plan for the innovative baijiu business the Company decided to transfer the
relevant business of Whitail Company to Luzhou Laojiao New Liquor Industry Co. Ltd. Therefore the
Whitail Company was de-registered.
19. Notes to the main Items of the financial statements of parent
company (all currency unit is CNY except other statements)
19.1. Accounts receivable
19.1.1. Disclosure by aging
Unit：CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 15421.83
Total 15421.83 0.00
19.1.2. Disclosure by withdrawal methods for bad debts
Unit：CNY
Closing Balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Includin
g:
Account
s
receiva
ble
tested 15421. 100.00 14701.
720.004.67%
for 83 % 83
impairm
ent by
the
portfolio
Includin
g:
Account
s
receiva
15421.100.0014701.
ble 720.00 4.67%
83%83
tested
for
impairm
2652024 Annual Report of Luzhou Laojiao Co. Ltd.
ent on
the
portfolio
with
charact
eristics
of credit
risk
15421.100.0014701.
Total 720.00 4.67% 0.00
83%83
Provision for bad debt by the portfolio: CNY 720.00
Unit：CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 14400.03 720.00 5.00%
Including: within 1 year 14400.03 720.00 5.00%
Other portfolio 1021.80
Total 15421.83 720.00
If adopting the general mode of expected credit loss to withdraw provision for bad debt of accounts
receivable
□Applicable □ N/A
19.1.3. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit：CNY
Changes in current period
Opening Closing
Type
Balance Reversal or Allowance Write-off Other Balance
recovery
Accounts
receivable
with a single
provision for
expected
credit loss
Accounts
receivable
with expected 720.00 720.00
credit loss by
portfolio
Total 720.00 720.00
Of which significant amount of recovered or transferred-back bad debt provision for the current period:
There is no significant provision in accounts receivable reversed or recovered in the reporting period.
19.1.4. Accounts receivable written-off in the current period
There is no accounts receivable written-off in the current period.
19.1.5. Top five entities with the largest balances of accounts receivable and contract assets
Unit：CNY
2662024 Annual Report of Luzhou Laojiao Co. Ltd.
Closing balance
of provision for
Proportion to
bad debt
Closing balance total closing
Closing balance Closing balance provision of
of accounts balance of
Company name of accounts of contract accounts
receivable and accounts
receivable assets receivable and
contract assets receivable and
impairment
contract assets
allowance of
contract assets
Wang Huiying 14400.03 14400.03 93.37% 720.00
Luzhou
Pinchuang
1021.801021.806.63%
Technology Co.Ltd.Total 15421.83 15421.83 100.00% 720.00
19.2. Other receivables
Unit：CNY
Item Closing Balance Opening Balance
Other receivables 14619833493.32 14844650322.98
Total 14619833493.32 14844650322.98
19.2.1. Other receivables
19.2.1.1. Other receivables disclosed by nature
Unit：CNY
Nature Closing book balance Opening book balance
Internal intercourse funds 14612828324.02 14828601798.89
Intercourse funds and others 3139064.91 9004523.78
Saving deposits involving contract
1 124099253.17 127564873.50 disputes
Total 14740066642.10 14965171196.17
Note: 1 The saving deposits involving contract disputes are three deposits amounting to CNY
500000000.00 with Changsha Yingxin Sub-branch of Agricultural Bank of China and Nanyang
Zhongzhou Sub-branch of Industrial and Commercial Bank of China disclosed by the Company in the
2014 Annual Report. The deposits have lost the nature of monetary fund due to their involvement in
contract disputes and have thus been transferred into “other receivables”. In 2024 CNY 3465620.33
of the saving deposits involving contract disputes was recovered. The closing balance of this account
as at the date of the statement was CNY 124099253.17.
19.2.1.2. Disclosure by aging
Unit：CNY
Aging Closing book balance Opening book balance
Within 1 year (including 1 year) 14615795158.37 14837508542.67
1-2 years 92550.56
2-3 years 13480.00
Over 3 years 124178933.171 127649173.50
2672024 Annual Report of Luzhou Laojiao Co. Ltd.
3-4 years 6880.00 11500.00
4-5 years 22800.00
Over 5 years 124172053.17 127614873.50
Total 14740066642.10 14965171196.17
Note: 1 Other receivables with significant single amount exceeding three years in age relates to
savings deposit of CNY 124099253.17 which are yet to be recovered due to contractual disputes.
19.2.1.3. Disclosure by withdrawal methods for bad debts
Unit：CNY
Closing balance Opening Balance
Provision for bad Provision for bad
Book balance Book balance
Type debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Provisio
n for
bad 124099 120000 40992 127564 120000 75648
0.84%96.70%0.85%94.07%
debt by 253.17 000.00 53.17 873.50 000.00 73.50
individu
al item
Inclu
ding:
Other
receiva
bles
that are
individu
ally
material
and for
which a 124099 120000 40992 127564 120000 75648
0.84%96.70%0.85%94.07%
separat 253.17 000.00 53.17 873.50 000.00 73.50
e
provisio
n for
bad
debts
has
been
made
Provisio
n for
14615146151483714837
bad 233148 520873
96738899.16%0.00%73424060632299.15%0.00%085449
debt by .78 .19.93.15.67.48
the
portfolio
Inclu
ding:
Other
receiva
bles
tested
14615146151483714837
for 233148 520873
96738899.16%0.00%73424060632299.15%0.00%085449
impairm .78 .19.93.15.67.48
ent on
the
portfolio
with
2682024 Annual Report of Luzhou Laojiao Co. Ltd.
charact
eristics
of credit
risk
14740146191496514844
100.00120233100.00120520
Total 066642 0.82% 833493 171196 0.81% 650322
%148.78%873.19.10.32.17.98
Provision for bad debt by individual item: CNY 120000000.00
Unit：CNY
Opening Balance Closing Balance
Name Provision for Provision for
Book balance Book balance Proportion Reason
bad debt bad debt
Saving
deposits Provision
127564873.5120000000.0124099253.1120000000.0
involving 96.70% based on
0070
contract legal opinion
disputes
127564873.5120000000.0124099253.1120000000.0
Total
0070
Provision for bad debt by the portfolio: CNY 233148.78
Unit：CNY
Closing Balance
Name
Book balance Provision for bad debt Proportion
Risk portfolio 3139064.91 233148.78 7.43%
Within 1 year 2966834.35 148341.72 5.00%
1-2 years 92550.56 9255.06 10.00%
2-3 years
3-4 years 6880.00 2752.00 40.00%
4-5 years
Over 5 years 72800.00 72800.00 100.00%
Other portfolio 14612828324.02
Total 14615967388.93 233148.78
Allowance of provision for bad debt adopting the general mode of expected credit loss:
Unit：CNY
First stage Second stage Third stage
Provision for bad Expected loss in the Expected credit loss Expected loss in the
duration (credit Total debt of the next 12 duration (credit
impairment not
months impairment occurred)
occurred)
Balance of January
520873.19120000000.00120520873.19
12024
Balance of January
1 2024 in the current
period
Allowance of the
148208.29148208.29
current period
Reversal of the
435932.70435932.70
current period
Balance of 233148.78 120000000.00 120233148.78
2692024 Annual Report of Luzhou Laojiao Co. Ltd.
December 31 2024
The basis for the division of each stage and the withdrawal proportion of bad debt provision
The basis for division is that other receivables with single bad debt provision represent credit
impairment losses incurred since initial recognition (Stage 3) while the remaining portion is
categorized based on expected credit risk. Withdrawal proportions of bad debt provision are 0.002%
for Stage 1 and 96.70% for Stage 3 totalling 0.82%.Changes of book balance with significant amount changed of loss provision in the current period
□Applicable □ N/A
19.2.1.4. Provision and recovery for bad and doubtful debt in the current period
Allowance of provision for bad debt:
Unit：CNY
Changes in current period
Opening
Type
Balance Reversal or Write-off or
Closing Balance
Allowance Other
recovery verification
Bad debt
provision for
120520873.19148208.29435932.70120233148.78
other
receivables
Total 120520873.19 148208.29 435932.70 120233148.78
19.2.1.5. Other receivables written-off in the current period
There is no other receivables written-off in the current period.
19.2.1.6. Top five entities with the largest balances of the other receivables
Unit：CNY
Provisioning
Proportion in
Company Name Nature Closing Balance Aging amount at period
total receivables
end
Luzhou Laojiao Internal
14193164072.04 Within 1 year 96.29%
Brewing Co. Ltd. transactions
Luzhou Laojiao
Import and Internal
200691342.66 Within 1 year 1.36%
Export Trade transactions
Co. Ltd.Luzhou Laojiao
Internal
New Retail Co. 153223495.94 Within 1 year 1.04%
transactions
Ltd.Saving deposits Saving deposits
involving involving 124099253.17 Over 5 years 0.84% 120000000.00
contract disputes contract disputes
Guangxi Luzhou
Laojiao Imported Internal
51505116.46 Within 1 year 0.35%
Liquor Industry transactions
Co. Ltd.Total 14722683280.27 99.88% 120000000.00
2702024 Annual Report of Luzhou Laojiao Co. Ltd.
19.2.1.7. Presentation in other receivables due to the centralized management of funds
There were no other receivables presented in due to the centralized management of funds in the
current period.
19.3. Long-term equity investments
Unit：CNY
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 3952848501 3952848501 3790179449 3790179449
subsidiary .33 .33 .26 .26
Investment in
associates 2785645158 2783078059 2707254604 2704687505
2567098.802567098.80
and joint .35 .55 .74 .94
venture
6738493659673592656064974340546494866955
Total 2567098.80 2567098.80.68.88.00.20
19.3.1. Investment in subsidiary
Unit：CNY
Opening Changes in current period Closing
Opening balance of Closing balance of
provision Provision Balance Balance provision
Investee
(book for for Increase Decrease Other (book for
value) impairmen impairmen value) impairmen
t t t
Luzhou
Laojiao 2937876 4419025 3379778
Sales Co. 35.54 9.97 95.51
Ltd.Luzhou
Laojiao 3291776 7608544 2765361 3395515
Brewing 616.90 3.861 0.21 670.97
Co. Ltd.Luzhou
Laojiao
Health 9771607. 1669712. 1144132
Liquor 98 74 0.72
Industry
Co. Ltd.Luzhou
Laojiao
6097161166571.46113818
Electronic
1.7943.23
Commerc
e Co. Ltd.Luzhou
Pinchuang 9402522 7599230. 1016244
Technolog 9.15 15 59.30
y Co. Ltd.Luzhou
12730832010530.1474136
Laojiao
2.19632.82
Internation
2712024 Annual Report of Luzhou Laojiao Co. Ltd.
al
Developm
ent (Hong
Kong)
Co. Ltd.Luzhou
Laojiao
27115913293693.3040960
New
5.71078.78
Retail Co.Ltd.
3790179760854486583603952848
Total
449.263.868.212501.33
Note: 1 The long-term equity investment increased by CNY 76085443.86 due to that the Company
made a physical capital increase in Luzhou Laojiao Brewing Co. Ltd. this year.
2 The increase in the current period are due to the Company's restricted share incentive business
where the parent company (the settlement enterprise) is an investor in the recipient subsidiary (the
service enterprise) and is recognized as a long-term equity investment in the subsidiary (the recipient
service enterprise) based on the fair value of the equity instruments at the date of grant and the
capital reserve (other capital reserves) is recognized at the same time.
19.3.2. Investment in associate and joint venture
Unit：CNY
Changes in current period
Openi Gain Adjust Closin
Openi ng or ments Closin g
ng Balan Cash loss of g Balan
Invest Balan ce of Other divide Provisrecog other Balan ce of
ee ce provisi Increa Decre chang d or ion for nized compr Other ce provisi
(book on for se ase es in profit impairunder ehens (book on for
value) impair equity declar ment equity ive value) impair
ment ed metho incom ment
d e
1. Joint Ventures
2. Associate
Huaxi
Securi 2535 2567 7566 1715 1364 2614 2567
ties 6303 098.8 3468. 4748. 1557. 8070 098.8
Co. 72.30 0 99 48 20 32.57 0
Ltd.Luzho
u
Laojia
o
Postd
octora
-
l 3833 3668
1657
Works 9051. 1718.
333.4
tation 51 10
1
Techn
ology
Innov
ation
Co.Ltd.Sichu 5897 - 5878
an 980.8 1969 280.9
Devel 5 9.92 3
2722024 Annual Report of Luzhou Laojiao Co. Ltd.
opme
nt
Liquor
Invest
ment
Co.Ltd.CTS
Luzho
u
Laojia
o
Cultur
12481257
al 8909
20101102
Touris 26.67
1.287.95
m
Devel
opme
nt
Co.Ltd.
2704256774871715136427832567
Subtot
6875098.87362.4748.1557.0780098.8
al
05.94033482059.550
2704256774871715136427832567
Total 6875 098.8 7362. 4748. 1557. 0780 098.8
05.94033482059.550
The recoverable amount is determined based on the net amount of the fair value minus disposal
costs
□Applicable □ N/A
The recoverable amount is determined by the present value of the forecasted future cash flow
□Applicable □ N/A
19.4. Operating revenue and cost of sales
Unit：CNY
Current Period Previous Period
Item
Revenue Cost of sales Revenue Cost of sales
Primary business 11068191164.35 8451791359.73 9122675610.69 6913171144.79
Other business 22778534.03 2521249.13 22784970.56 1890828.17
Total 11090969698.38 8454312608.86 9145460581.25 6915061972.96
Details:
Unit：CNY
Contract Baijiu sales Total
category Operating revenue Cost of sales Operating revenue Cost of sales
Commodit
y type
Including:
Medium
and high
10975542666.808405571255.4710975542666.808405571255.47
grade
baijiu
Other
92648497.5546220104.2692648497.5546220104.26
baijiu
2732024 Annual Report of Luzhou Laojiao Co. Ltd.
Other
22778534.032521249.1322778534.032521249.13
revenue
By
operating
segment
Including:
Domestic 11090969698.38 8454312608.86 11090969698.38 8454312608.86
Outbound
Market or
customer
type
Including:
Contract
type
Including:
Recognize
revenue at
11068976487.638451809714.5511068976487.638451809714.55
point in
time
Recognize
revenue
21993210.752502894.3121993210.752502894.31
by time
period
By
commodit
y transfer
time
Including:
By
contract
term
Including:
By sales
channel
Including:
Total 11090969698.38 8454312608.86 11090969698.38 8454312608.86
Other statements
Note 1: The Company's main business is the production and sale of baijiu. Revenue is recognized at
the point when the Company transfers control of the relevant goods to the customer and fulfills its
performance obligations.Information in relation to the transaction price apportioned to the residual contract performance
obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not
performed or not fully performed yet was CNY 3354639.36 at the period-end among which CNY
3354639.36 was expected to be recognized in 2025.
19.5. Investment income
Unit：CNY
Item Current Period Previous Period
Investment income from long-term 9761010919.08 9903401819.29
2742024 Annual Report of Luzhou Laojiao Co. Ltd.
equity investments under cost
method
Investment income from long-term
equity investments under equity 74877362.33 43134582.17
method
Investment income gained during the
period of holding held-for-trading 46953767.52 2391009.80
financial assets
Investment income from disposal of
-29465560.314868720.17
held-for-trading financial assets
Dividends income gained during the
period of holding other equity 14976454.55 11268626.39
instrument investment
Income from derecognition of
financial assets measured at fair
-21417110.91
value with changes recorded in other
comprehensive income1
Investment income gained from put-
-1055251.33
back and early redemption of bonds
Total 9846935832.26 9964009506.49
Note: 1. The Company presented the discounting expenses of derecognized bank acceptance bills
under this account.
19.6. Other
There is no major restriction on the repatriation of the Company's investment income.
1. Investment income from long-term equity investments under the cost method
Item Current Period Previous Period
Luzhou Laojiao Sales Co. Ltd. 9761010919.08 9870272284.78
Luzhou Laojiao New Retail Co. Ltd. 21928367.88
Luzhou Baonuo Biotechnology Co. Ltd. 11201166.63
Total 9761010919.08 9903401819.29
2. Investment income from long-term equity investments under the equity method
Item Current Period Previous Period
Huaxi Securities Co.Ltd. 75663468.99 44167627.40
Luzhou Laojiao Postdoctoral Workstation Technology Innovation
-1657333.41-1846843.26
Co. Ltd.Sichuan Development Liquor Investment Co. Ltd. -19699.92 8326.61
CTS Luzhou Laojiao Cultural Tourism Development Co. Ltd. 890926.67 805471.42
Total 74877362.33 43134582.17
20. Supplementary information
20.1. Detailed statement of non-recurring gains and losses in the current period (+
for gain - for loss)
□ Applicable □ N/A
2752024 Annual Report of Luzhou Laojiao Co. Ltd.
Unit：CNY
Item Amount Note
Gains or losses on disposal non-
1058750.22
current assets
Government grants recognized in
profit or loss (exclusive of those that
are closely related to the Company's
normal business operations and
given in accordance with defined 41225885.28
criteria and in compliance with
government policies and have a
continuing impact on the Company's
profit or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by
a non-financial enterprise as well as
on disposal of financial assets and
54342655.46
liabilities (exclusive of the effective
portion of hedges that is related to
the Company's normal business
operations)
Reverse of bad debt provision of
accounts receivable individually 422217.14
conducting impairment test
Other non-operating income and
expenditure except above-mentioned -1550111.21
items
Less: Corporate income tax 20932166.54
Minority interests (after tax) 1095423.83
Total 73471806.52 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable □ N/A
No such cases for the reporting period.Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities
to the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.□ Applicable □ N/A
20.2. Return on equity and earnings per share
Profit during reporting EPS (CNY/Share)
Weighted average ROE
period Basic EPS Diluted EPS
Net profits attributable to
common shareholders of 30.44% 9.18 9.18
the Company
Net profits attributable to
common shareholders of
30.27%9.139.13
the Company before non-
recurring gains and losses
2762024 Annual Report of Luzhou Laojiao Co. Ltd.
20.3. Differences between accounting data under domestic and overseas
accounting standards
20.3.1. Differences of net profit and net assets disclosed in financial reports prepared under
international and Chinese accounting standards
□ Applicable □ N/A
20.3.2. Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
□ Applicable □ N/A
20.3.3. Explain reasons for the differences between accounting data under domestic and
overseas accounting standards; for any adjustment made to the difference existing in the data
audited by the foreign auditing agent such foreign auditing agent’s name shall be clearly
stated
20.4. Other
None
277
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