Jiangsu Yanghe Distillery Co. Ltd.2024 Annual Report
April 2025
1Section I Important Statements Contents and Definitions
The board of directors board of supervisors directors supervisors and senior management of Jiangsu Yanghe
Distillery Co. Ltd. (hereinafter referred to as the Company) hereby 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.Mr. Zhang Liandong the responsible person for the Company Mr. Yin Qiuming the responsible person for
accounting affairs and Mr. Zhao Qike the responsible person for accounting department (the accounting
supervisor) have warranted that the financial statements in this report are true accurate and complete. Except for
the directors listed below all other directors attended the board meeting in person to review this annual report.Positions of Directors
Names of Directors Who Reason for Not Attending
Who Did Not Attend in Name of Proxy
Did Not Attend in Person the Meeting in Person
Person
Nie Yao Independent Director Business Trip Lu Guoping
The future plans and other forward-looking statements mentioned in this annual report due to their inherent
uncertainties shall not be regarded as substantive commitments of the Company to investors. Investors and
people concerned should maintain adequate risk awareness and understand the difference between plans
predictions and promises. Investors are kindly reminded to pay attention to possible investment risks.In the annual report the possible risks in the operation of the Company are described in detail (see 11. Outlook
for the Future Development of the Company in Section III Management Discussion and Analysis). Investors are
kindly reminded to pay attention to relevant content.The profit distribution plan approved by the board of directors: based on 1506445074 shares a cash dividend of
CNY 23.17 (tax inclusive) will be distributed for every 10 existing shares held 0 shares of bonus shares (tax
inclusive) and reserves would not be converted into share capital.The Company’s Chinese 2024 Annual Report was publicly disclosed on the Shenzhen Stock Exchange and
www.cninfo.com.cn on 29 April 2025. If there are any differences between the English version and the Chinese
one please refer to the latter.
2Contents
Section I Important Statements Contents and Definitions……………………………….2
Section II Company Profile and Key Financial Results……………………………………….6
Section Ⅲ Management Discussion and Analysis……………………………………………11
Section Ⅳ Corporate Governance…………………………………………………………………..37
Section Ⅳ Environment and Social Responsibility…………………………………………..72
Section Ⅳ Significant Events…………………………………………………………………………..79
Section Ⅳ Changes in Shares and Information about Shareholders……………….. 94
Section Ⅳ Information about Preference Shares…………………………………………… 104
Section Ⅳ Information about Bonds…………………………………………………………….. 105
Section Ⅳ Financial Reports……………………………………………………………………………106
3Document Catalog
(I) Financial statements containing the signatures and seals of the person in charge of the Company the
accounting head and the person in charge of the accounting body (accounting manager).(II) The original audit reports with the seal of the accounting firm and the signatures and seals of the certified
public accountants.(III) The originals of all Company documents and announcements publicly disclosed during the reporting period.
4Definitions
Term Reference Definition
The Company This Company Yanghe Refer to Jiangsu Yanghe Distillery Co. Ltd.Yanghe Group Controlling shareholder Refer to Jiangsu Yanghe Group Co.Ltd.The current year In the reporting period Refer to 1 Jan. 2024 to 31 Dec. 2024
The report Refer to 2024 Annual Report
Yuan Ten thousand yuan A hundred million yuan Refer to CNY 0.00 CNY 10000.00 CNY 100000000.00
The shareholders' meeting the board of directors The Shareholders' Meeting Board of Directors and
Refer to
the board of supervisors Supervisory Board of Jiangsu Yanghe Distillery Co.Articles of incorporation of Jiangsu Yanghe Distillery
Articles of incorporation Refer to
Co. Ltd.SSE Refer to Shenzhen Stock Exchange
SRC CSRC Refer to China Securities Regulatory Commission
State-owned Assets Supervision and Administration
SAC of Suqian SASAC of Suqian Refer to
Commission of Suqian
Zhongxi Accounting firm Refer to Zhongxi CPA LLP
Blue Alliance Refer to Jiangsu Blue Alliance Co. Ltd.Yanghe Branch of the Company Refer to Jiangsu Yanghe Distillery Co. Ltd. Yanghe Branch
Siyang Branch of the Company Refer to Jiangsu Yanghe Distillery Co. Ltd. Siyang Branch
Shuanggou Distillery Refer to Jiangsu Shuanggou Distillery Stock Co.Ltd.Guijiu Company Refer to Guizhou Guijiu Co. Ltd.Inside and outside the province Refer to Inside and outside Jiangsu Province
5Section II Company Profile and Key Financial Results
I. Corporate information
Stock abbreviation Yanghe Stock code 002304
Stock exchange where the
shares of the Company Shenzhen Stock Exchange
are listed
Name of the Company in江苏洋河酒厂股份有限公司
Chinese
Abbr. of the Company洋河股份
name in Chinese
Name of the Company in
JIANGSU YANGHE DISTILLERY CO. LTD.English (if any)
Abbr. of the Company
Yanghe
name in English (if any)
Legal representative Zhang Liandong
Registered address No.118 Middle Avenue Yanghe Town Suqian City Jiangsu Province China
Postal code of registered
223800
address
Historical changes of the
company's registered N/A
address
Business address No.118 Jiudu Avenue Yanghe Town Suqian City Jiangsu Province China
Postal code of business
223800
address
Company website http://www.chinayanghe.com
E-mail yanghe002304@chinayanghe.com
II. Contact us
Company secretary Representative for securities affairs
Name Lu Hongzhen Zhu Haihui
No.118 Jiudu Avenue Yanghe Town No.118 Jiudu Avenue Yanghe Town
Address
Suqian City Jiangsu Province Suqian City Jiangsu Province
Tels. 0527-84938128 0527-84938128
Fax 0527-84938128 0527-84938128
E-mail yanghe002304@chinayanghe.com yanghe002304@chinayanghe.com
III. Information disclosure and place where the annual report is kept
The website of the stock exchange where
Shenzhen Stock Exchange (www.szse.cn)
the company discloses the annual report
Media name and website of the annual Securities Times Shanghai Securities Times China Securities
report disclosed by the company Journal Securities Daily and Cninfo (http://www. cninfo.com.cn)
Place where the Annual Report of the Shareholder reading room the headquarters of the
Company is kept Company Suqian City Jiangsu Province
6IV. Company registration and alteration
Organization code 9132000074557990XP
Changes in main business activities
since the Company was listed (if None
any)
Changes of controlling shareholders
None
of the Company (if any)
V. Other relevant information
Accounting firm engaged by the Company
Name of the accounting firm Zhongxi CPA LLP
Business address of the 11th Floor Room 1101 No. 11 Chongwenmenwai Street Dongcheng District
accounting firm Beijing
Name of accountants for
Gong Zhaoping Wang Wenjuan
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
VI. Key accounting data and financial indicators
Whether the Company performed a retroactive adjustment or restatement of accounting data
□Yes ?No
Increase/Decrease
2024 2023 Compared to the 2022
Previous Year
Operating revenues
28876296993.5633126277551.51-12.83%30104896186.70
(CNY)
Net profits
attributable to
6673388602.1210015930040.27-33.37%9377865479.41
shareholders of the
Company (CNY)
Net profits
attributable to
shareholders of the
6835235643.359842844980.49-30.56%9276677881.62
Company before
non-recurring gains
and losses (CNY)
Net cash flows from
4628711237.286130220867.96-24.49%3647623952.19
operating activities
7(CNY)
Basic earnings per
4.42996.6487-33.37%6.2252
share (CNY/share)
Diluted earnings
per share 4.4299 6.6487 -33.37% 6.2252
(CNY/share)
Weighted average
12.07%20.34%-8.27%21.03%
ROE
Increase/Decrease
at the End of This
At the end of 2024 At the end of 2023 At the end of 2022
Year Compared to
the End of Last Year
Total assets (CNY) 67345265219.62 69792287455.91 -3.51% 67972824646.81
Net assets
attributable to
51588243128.6551938515345.20-0.67%47475039184.70
shareholders of the
Company (CNY)
The Company's net profit before or after deducting non-recurring profits and losses in the last three fiscal years is
negative and the audit report of the last year shows that the Company's ability to continue operating is uncertain
□Yes □No
The net profit before or after deducting non-recurring profits and losses is negative
□Yes □No
VII. Differences in accounting data under domestic and overseas accounting standards
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 during this period.
2. Differences in the net profits and net assets disclosed in the financial reports prepared under the outbound
and China accounting standards
□Applicable ?N/A
No such differences during this period.VIII. Key financial results by quarter
Unit: CNY
Q1 Q2 Q3 Q4
Operating revenues 16254884718.38 6620864175.19 4640733548.45 1359814551.54
Net profits attributable to
6055230532.041892014895.14631466120.39-1905322945.45
shareholders of the Company
Net profits attributable to
shareholders of the Company
6050415450.861890771215.20455892588.81-1561843611.52
before deducting non-
recurring profits and losses
Net cash flows from 4850465091.64 -2807136463.35 1414979714.11 1170402894.88
8operating 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
IX. Non-recurring profits and losses
Unit: CNY
Item 2024 2023 2022 Note
Profit or loss from disposal of non-current
assets (including the write-off portion of the -40249265.21 -10375821.67 -5887909.75
impairment provision)
Government grants included in the profit or
loss for the current period (except those
closely related to the normal business of the
company in line with the provisions of 50445321.61 51085965.67 60162525.57
national policies and continuously enjoyed
according to a certain standard quota or
quantity)
Except for the effective hedging business
related to the normal business of the
company profits and losses from changes in
fair value arising from holding trading
financial assets and trading financial -242790641.63 211499562.04 77907331.60
liabilities as well as the investment income
obtained from the disposal of trading
financial assets trading financial liabilities
and financial assets available for sale
The cost of investments in subsidiaries
associates and joint ventures acquired by an
enterprise is less than its share of the gain
13641150.48
arising from the fair value of the identifiable
net assets of the investee at the time of
acquisition.Other non-operating income and
6241035.85-19590043.61827476.72
expenditure except above-mentioned items
Other items of profit or loss that meet the
3610292.93
definition of non-recurring profit or loss
Less: Corporate income tax -51001648.61 59943924.97 34647176.78
Minority interests (after tax) 136290.94 -409322.32 784942.50
Total -161847041.23 173085059.78 101187597.79 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss：
□Applicable ?N/A
The company has no specific circumstances of other profit and loss items that meet the definition of non-recurring
profit and loss.Description of defining non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Listed Companies -Non-recurring Profits and Losses as recurring profit and loss items.□Applicable ?N/A
There is no such situation that the company classifies the non-recurring profit and loss items listed in the
9Explanatory Announcement No. 1 on Information Disclosure for Listed Companies -Non-recurring Profits and Losses
as recurring profit and loss items.
10Section Ⅲ Management Discussion and Analysis
I. Industry conditions faced by the company during the reporting period
During the reporting period the competition in the liquor industry continued and became increasingly fierce
gradually shifting from diversified and differentiated competition to the competition centering on the leading
enterprises. The characteristics of strong concentration and strong differentiation became more prominent
indicating increased Matthew effect. According to the data from the National Bureau of Statistics the output of
liquor (equivalent to 65 degrees commodity volume) of enterprises above designated size in China was 4.145
million kiloliters in 2024 a year-on-year decrease of 1.80%.Yanghe is a large Chinese Baijiu production enterprise possessing high brand awareness and reputation nationwide.It is the only enterprise in the Chinese Baijiu industry that owns two famous Chinese Baijiu brands Yanghe and
Shuanggou two time-honored Chinese brands six well-known Chinese trademarks and two 4A level scenic spots.The company's major products are Dream Blue Sky Blue Ocean Blue Sujiu Zhenbaofang Yanghe Daqu
Shuanggou Daqu and so on which have high brand recognition and reputation throughout China.II. Main Businesses of the Company During the Reporting Period
The company shall comply with the disclosure requirements of food and wine manufacturing industries in Self-
regulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry Information Disclosure
The main business engaged
The main business of the company is the production and sale of Chinese Baijiu that is manufactured by solid-state
fermentation and traded mainly through two modes: wholesale distribution and online direct sales. The company's
main business and business model did not change during the reporting period. According to the Industry
Classification Guidelines for Listed Companies (revised in 2012) issued by the CSRC the company belongs to the
"C15 wine beverage and refined tea manufacturing industry".Information about brand operation
The Company’s products include Dream Blue Sujiu Sky Blue Zhenbaofang Ocean Blue Yanghe Daqu Shuanggou
Daqu Guijiu Sidus Wine and so on. According to the price range standard of ex-factory price the Company
categorizes the products into mid/high end and ordinary products. The mid/high end products refer to those with
ex-factory price ≥ CNY 100 / 500ml mainly including Dream Blue craft class Dream Blue M9 Dream Blue M6 +
Dream Blue Crystal version Su Jiu Sky Blue Zhenbaofang (Difang Shengfang) Ocean Blue and so on. Ordinary
products refer to those with ex-factory price ＜ CNY 100 / 500ml mainly consisting of Yanghe Daqu and Shuanggou
Daqu etc.The revenue of various products is as follows:
Unit: CNY
Operating revenue
Products
2024 YoY change
Mid/high end products 24317191550.05 -14.79%
Ordinary products 3931104279.57 -0.49%
Main sales model
11The company sells its products mainly through distributors. Its sales models include wholesale distribution and
online direct selling among which wholesale distribution is the main sales model.?Applicable □N/A
1. Disclosure of main business composition by different types
Unit: CNY
Gross
Types Operating revenue YoY change Operating cost YoY change YoY change
margin
By sales model
Wholesale
27854167407.45-13.10%7214696009.53-5.54%74.10%-2.07%
distribution
Online
394128422.17-9.77%113496434.65-8.20%71.20%-0.50%
direct selling
Subtotal 28248295829.62 -13.05% 7328192444.18 -5.58% 74.06% -2.05%
By geographical segment
Jiangsu 12748484435.48 -11.43% 3254113271.23 -9.91% 74.47% -0.43%
Ex-Jiangsu 15499811394.14 -14.35% 4074079172.95 -1.82% 73.72% -3.35%
Subtotal 28248295829.62 -13.05% 7328192444.18 -5.58% 74.06% -2.05%
By product
Mid/high
end 24317191550.05 -14.79% 5176882645.38 -8.12% 78.71% -1.55%
products
Ordinary
3931104279.57-0.49%2151309798.801.15%45.27%-0.89%
products
Subtotal 28248295829.62 -13.05% 7328192444.18 -5.58% 74.06% -2.05%
The company's main products are classified according to the price range standard of ex-factory price including
medium/high end products ≥ 100 CNY / 500ml and ordinary products < 100 CNY / 500ml.
2. Disclose the number of distributors according to regional classification
Geographical segment The number of distributors at the end of Increase (decrease) in the number
the reporting period during the reporting period
Jiangsu 2999 39
Ex-Jiangsu 5867 38
Total 8866 77
3. Settlement method and distribution method
The Company mainly adopts the bank transfer method for settlement and applies the method of payment before
goods for product sales.
4. Sales amount and sales proportion of the top five distributors
In 2024 the total sales amount of the top five distributors was CNY 2351.77 million accounting for 8.15% of the
total sales of this year. Among the sales of the top five distributors the sales from related parties were CNY 0
accounting for 0% of the total sales of this year. The total amount of receivables of the top five distributors at the
end of the period was zero.Retail sales accounted for more than 10%.
12□Applicable ?N/A
Online direct selling
?Applicable □N/A
Unit: CNY
Online direct
Product Sales amount in 2024 Sales amount in 2023 YoY change
selling
Tmall JD and
Liquor 394128422.17 436807935.79 -9.77%
other platforms
The sales price of the main products contributing more than 10% of the total operating revenue of the current
period changed by more than 30% compared with the previous reporting period
□Applicable ?N/A
Procurement mode and content
Unit: CNY
Procurement mode Procurement content Amount
Raw materials and packaging
Market bidding 5908651371.36
materials
Marketing purchase Energy 429689201.35
Procurement of raw materials from cooperatives or farmers accounted for more than 30% of the total purchase
amount
□Applicable ?N/A
The price of major outsourced raw materials changed by over 30% year on year
□Applicable ?N/A
Main production mode
The Company's production mode is self-produced mode with major parts including raw material crushing
fermentation distillation grade storage liquor body design and combination product packaging etc.Commissioned production
□Applicable ?N/A
The main components of operating costs
Unit:CNY
20242023
As a
Types Cost item percentage As a percentage YoY change
Amount Amount
of operating of operating cost
cost
Direct materials 5524407465.24 71.27% 5740988852.45 70.01% -3.77%
Direct labor 1268364612.69 16.36% 1389888502.86 16.95% -8.74%
Chinese Fuels and 252653570.95 3.26% 284861395.36 3.47% -11.31%
Baijiu energy
Manufacturing
235657087.563.04%283217880.583.45%-16.79%
overhead
13Output and inventory
1. Production volume sales volume and inventory of major products
Types Item 2024 2023 YoY change
Sales (ton) 139076.05 166154.73 -16.30%
Chinese Baijiu
Production (ton) 145494.73 158834.29 -8.40%
Inventory (ton) 45594.72 39176.04 16.38%
2. Inventory of finished and semi-finished Baijiu at the end of the period
Inventory of finished products (including finished Inventory of semi-finished Baijiu (including raw liquor)
baijiu and wine) (ton) (ton)
46169.17697082.59
3. Capacity of the Company
Name of production entity Design capacity (ton) Actual capacity in 2024 (ton)
Yanghe (including Yanghe branch and Siyang branch) 222545 117371
Shuanggou Distillery 97040 25296
III. Analysis of core competitiveness
The Company has significant advantages in natural environment quality technology brand building marketing
network and so on. The Company has formed its unique core competencies which remain unchanged during the
reporting period.
1. Natural environment advantage
The Company is located in Suqian the capital of Chinese Baijiu with 'three rivers two lakes and one wetland’. As
one of the three famous wetlands in the world Suqian enjoys equal popularity with the Scotch whisky producing
area and the French Cognac producing area. The long history and unique ecological environment provide a good
source of water soil and air for production for liquor production. Especially the microorganism condition is
significantly beneficial to production. The Yanghe distillery originated in the Sui and Tang Dynasties flourished in
the Ming and Qing Dynasties. It had been sold in Jianghuai area during the period of Yong Zheng of Qing Dynasty.It has a good reputation that 'dainty taste derived from fortune spring and liquor ocean which made Yanghe rank
first in Jianghuai area'. Shuanggou alongside Yanghe was praised as the origin of Chinese natural liquor by domestic
and overseas experts due to the discovery of drunken ape fossils in Xiacaowan.
2. Quality advantage
Considering the diversification and individuation of consumption demand the Company took the lead in breaking
the traditional classification of Baijiu flavor. The Company classifies Baijiu based on taste and emphasizes the value
of taste. The Company strengthens the mellowness of Baijiu puts forward the new style of the mellow Baijiu quality
and deeply meets core demand of target consumers. It has successfully established new craft of mellow Baijiu
production and system framework of mellowness mechanism which caters to market consumption. In June 2008
"Mellowness" a special type of Yanghe was first written into the national standard in China Protected
Geographical Indication Product- Yanghe Daqu (Standard No. GB/T22046-2008). In 2019 the company formulated
the group standard named "Mellow Baijiu" (i.e. T/CBJ2104-2019) which further enriched and improved the
relevant standards of mellow Baijiu. In 2022 the company formulated the standards of "Baijiu Wetland Real Estate
Area" (T/CBJ2305-2022) and "Wetland Baijiu" (T/CBJ2110-2022) which promoted the specification of technicalquality standards for wetland liquor. In 2023 the company released the “China's Baijiu Mellow Quality
14Development Report” and comprehensively constructed the “mellow system”.
3. Talent advantage
The Company has 56 Masters of Chinese Baijiu 78 provincial Baijiu tasting committee members and 2009
technicians. The Company also has 10 national and provincial technical research and development platforms. The
distinctness advantage of technical talents provides technical support for the continuous improvement of mellow
Baijiu quality. In 2024 the company's three scientific and technological achievements including "Key Technologies
for Analysis and Application of Microbiome in the Brewing Process of Mellow Liquor" have been appraised by the
China Light Industry Federation five scientific research projects have won provincial and above awards and the
company won the first and second places in the Second China Liquor Chief Taster Competition.
4. Brand advantage
The Company as one of the eight traditional well-known Baijiu enterprises is the only one in China's liquor industry
that has two Chinese famous baijiu Yanghe and Shuanggou two Chinese time-honored brands six well-known
Chinese trademarks such as Yanghe Shuanggou Blue Classic Zhenbaofang Dream Blue Su two national 4A scenic
spots two national industrial heritages and a national key cultural relics protection unit. In the research report
"Top 500 Most Valuable Chinese Brands in 2024" released by GYBrand Global Brand Research Institute the
company ranked third in China's liquor industry with a brand value of 90.979 billion yuan; in the "Global Most
Valuable Liquor Brands List in 2024" released by Brand Finance a world-renowned brand value research
organization the company ranked fifth in the world with a brand value of 6.3 billion US dollars.
5. Marketing network advantage
The company has a marketing team with innovative ideas and strong execution. Its marketing network has
penetrated into all counties and regions in China. The high-speed channel for distribution has been basically built
laying a solid foundation for future market expansion and category extension. Meanwhile as a traditional
enterprise Yanghe has consistently optimized new sales model and advanced digital transformation. The sales
digitalization of Yanghe has become a case study for Tsinghua University showcasing the leading position of Yanghe
in internet application.IV. Analysis of main business
1. Overview
At the beginning of the reporting period the company planned to strive for a year-on-year growth of 5%-10% in
operating income in 2024. During the reporting period the liquor industry entered the stage of zero-sum
competition and the market competition became more intense. The medium and sub-high-end price categories
which the company's main products compete in were under great pressure. In the view of principles of scientific
and sustainable development the company actively adjusted its business strategies to cope with changes in the
external environment and problems in its own development. In 2024 the company achieved operating income of
28.876 billion yuan a year-on-year decrease of 12.83%; the net profit attributable to shareholders of listed
company was 6.673 billion yuan a year-on-year reduction of 33.37%.
2024 was a year of enterprise readjustment the company concentrated on long-termism main responsibilities
and primary businesses and comprehensively promoted the following tasks:
Promoting productions quality steadiness. The company deepened the application of mellow mechanism
15optimized the key processes and parameters that affect the quality of base liquor and continuously improved the
distilling process system. Therefore the company’s base liquor achieved outstanding output and quality with
distinctive characteristics and a complex aroma of mellow taste. Three scientific and technological achievements
have been appraised by the China Light Industry Federation and five scientific research projects have won
provincial and above awards. The company also took the first and second places of Second China Liquor Chief
Sommelier Competition and the technical strength of the company sustained. The digital management platform
for liquor body was launched to facilitate the interaction between liquor body design and intelligent digitalization
thus further securing the stability of product quality.Highlighting value of productions through three-dimensional dissemination. The company released the strategy
of aged liquor with mellow taste highlighting the core value of "Aged liquor produced by hand-made skills from
intangible cultural heritage " and launched the Chinese high-end aged liquor - Mengzhilan Hand-made Class
which made the company become the first aged liquor in the industry to be authorized by the "China Alcoholic
Drinks Association" and authoritatively certified by the third-party certification agency "Fangyuan Group" further
raising the brand reputation as well. Centralizing the theme of mellowness of a great country the company
propagated its main tune of the brand in stereoscopic dimension by presenting a tribute to the 60th anniversary
of the establishment of diplomatic relations between China and France participating major international events
such as the G20 Summit and the Davos Forum and launching the "Yanghe Mengzhilan" Jielong III carrier rocket.All those efforts were dedicated to the further enhancement of brand image.Focusing on marketing and constructed an unshakable basis. Based on the principle of "streamlining and
efficiency strengthening the overall management" the company optimized its marketing organization structure
raised the regional focus by brands and enhanced synergy between different brands. The management
distinguished the market into four categories: highland model weak and blank markets and accordingly applied
local policies with matched resources. The company deepened the provincial base camp market and the Yangtze
River Delta market which turned into a strategic focus underpinned by necessary resources. The deployment of
Mengzhilan Hand-made Class Aged Liquor would be mainly focusing on replenishment and improvement of the
crucial aspects of the leading brand products matrix and fulfill the marketing and production structure upgrading
and demands for competition. The company highlighted terminal operations optimized the "Dream Benefit"
platform and took multiple measures to enhance enthusiasm of the terminal and maintain the stability of the
market. The company improved the rating entry and exit mechanism of distributors and built a dealer counsel
platform to ensure the basic management of marketing sophisticated.Promoting the sustainable development continuously and thoroughly. The company committed to promote
sustainable governance improved the platform for non-executive directors to comply with their duties upgraded
the corporate governance system strengthened the information system of internal audit and continuously
optimized the shareholders return mechanism. For the purpose of propelling green and sustainability carrying out
energy conservation and carbon reduction thoroughly the company founded two zero-carbon workshops which
were verified by the carbon management system certification and won recognitions such as "The Leading
Enterprise of Chinese Industrial Peak Carbon Dioxide Emissions and Carbon Neutrality for the year 2024". The
company deepened the sustainability development of society boosted smartness production projects improved
the supply chain system and continuously lifted the level of digital and intelligent application. Yanghe complied
with the enterprise annuity system and formulated packages of employee caring policies. The company have been
awarded as the honorary title of "Annual Charity Enterprise" by the China Charity Federation for three consecutive
16years for supporting Chinese aerospace rural revitalization and students to realize their dreams.
During the reporting period facing the changes of the external environment the base of management issue of the
company further consolidated nevertheless the transformation and adjustment still require time and space. For
details of the next step of work plan please refer to the "Business Plan by the year 2025" in Section 3 of this report.
2. Revenues and cost of sales
(1) Breakdown of operating revenues
Unit：CNY
20242023
As a percentage As a percentage
YoY change
Amount of operating Amount of operating
revenues revenues
Total 28876296993.56 100% 33126277551.51 100% -12.83%
By business segment
Alcoholic Drinks 28248295829.62 97.83% 32489436696.05 98.08% -13.05%
Other 628001163.94 2.17% 636840855.46 1.92% -1.39%
By product
Baijiu 28175707878.18 97.57% 32389581931.71 97.78% -13.01%
Wine 72587951.44 0.26% 99854764.34 0.30% -27.31%
Other 628001163.94 2.17% 636840855.46 1.92% -1.39%
By geographical segment
Jiangsu 13031872833.19 45.13% 14675188393.55 44.30% -11.20%
Ex-Jiangsu 15844424160.37 54.87% 18451089157.96 55.70% -14.13%
By sales model
Wholesale
27854167407.4596.46%32052628760.2696.76%-13.10%
distribution
Online direct
394128422.171.37%436807935.791.32%-9.77%
selling
Other 628001163.94 2.17% 636840855.46 1.92% -1.39%
(2) Business segment products geographical segments or sales models contributing over 10% of the operating
revenues or profits
?Applicable □N/A
Unit: CNY
Gross YoY change of YoY change of
Operating YoY change of
Cost of sales profit operating gross profit
revenues cost of sales
margin revenue margin
By business segment
Alcoholic
28248295829.627328192444.1874.06%-13.05%-5.58%-2.05%
Drinks
By product
Baijiu 28175707878.18 7281082736.44 74.16% -13.01% -5.43% -2.07%
By geographical segment
Jiangsu 12748484435.48 3254113271.23 74.47% -11.43% -9.91% -0.43%
Ex-Jiangsu 15499811394.14 4074079172.95 73.72% -14.35% -1.82% -3.35%
By sales mode
Wholesale 27854167407.45 7214696009.53 74.10% -13.10% -5.54% -2.07%
17distribution
Online
direct 394128422.17 113496434.65 71.20% -9.77% -8.20% -0.50%
selling
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the
reporting period the Company’s main business data in the current one year is calculated based on adjusted
statistical standards at the end of the reporting period.□Applicable ?N/A
(3) Whether revenue from physical sales is higher than service revenue
?Applicable □N/A
By business
Item Unit 2024 2023 YoY change
segment
Sales volume Ton 139076.05 166154.73 -16.30%
Production
Baijiu Ton 145494.73 158834.29 -8.40%
volume
Inventory volume Ton 45594.72 39176.04 16.38%
Sales volume Ton 1427.75 1682.34 -15.13%
Production
Wine Ton 1302.77 1542.62 -15.55%
volume
Inventory volume Ton 574.45 699.43 -17.87%
Reasons for any over 30% YoY changes in the data above.□Applicable ?N/A
(4) Execution of significant sales contracts and significant purchase contracts in the reporting period
□Applicable ?N/A
(5) Breakdown of cost of sales
By business and product segment
Unit：CNY
20242023
By business As a As a
Item YoY change
segment Amount percentage of Amount percentage of
cost of sales cost of sales
Alcoholic
7328192444.1894.54%7761633378.6094.65%-5.58%
Drinks
Unit：CNY
20242023
As a As a
By product
Item percentage percentage YoY change
segment Amount Amount
of cost of of cost of
sales sales
Alcoholic Direct
5570735174.6971.87%5801995203.1970.75%-3.99%
Drinks materials
Alcoholic Direct
1268867989.5016.37%1390804791.5316.96%-8.77%
Drinks labor
Alcoholic Fuels and
252784524.563.26%285195260.043.48%-11.36%
Drinks energy
Alcoholic Manufact 235804755.43 3.04% 283638123.84 3.46% -16.86%
18Drinks uring
overhead
Note: N/A
(6) Changes in the scope of the consolidated financial statements for the reporting period
?Applicable □N/A
a)Establishment of subsidiaries
1) Jiangsu Yangmingliwei Liquor Co. Ltd. a controlling subsidiary subscribed RMB10 million established Tibet
Yangmingwei Liquor Co. Ltd. which was included in the scope of the consolidated financial statements from
January 2024.
2) Jiangsu Yiguoxiang Biotechnology Co. Ltd. a controlling subsidiary subscribed RMB2 million established Suqian
Yiguoxiang Sales Co. Ltd. which was included in the scope of the consolidated financial statements from June
2024.
3) Jiangsu Yiguoxiang Biotechnology Co. Ltd. a controlling subsidiary subscribed RMB1 million to established
Hangzhou Yiguoxiang Brand Operation Management Co. Ltd. which was included in the scope of the consolidated
financial statements from February 2024.
4) The Company subscribed RMB20 million established Hainan Yanghe Trading Co. Ltd. which was included in the
scope of the consolidated financial statements from July 2024.b) Deregistration of subsidiaries
1) Jiangsu Shiyang Network Technology Co. Ltd. a holding subsidiary has completed the industrial and commercial
deregistration and would no longer be included in the scope of the consolidated financial statements from
November 2024.
2) Jiangsu Yanghe Micro Classroom Network Technology Co. Ltd. a holding subsidiary has completed the industrial
and commercial deregistration and would no longer be included in the scope of the consolidated financial
statements from December 2024.
(7) Major changes in the business products or services in the reporting period
□Applicable ?N/A
(8) Main customers and suppliers
Sales to major customers of the Company
Total sales from top five customers（CNY） 2351769956.63
Total sales from top five customers as a percentage of
8.15%
the total sales
Total sales from related parties among top five
0.00%
customers as a percentage of the total sales
Information on top five customers
As a percentage of the total sales
No. Customer Sales amount (CNY)
for the year
1 Customer A 1148284663.17 3.98%
2 Customer B 373078860.46 1.29%
193 Customer C 296940777.43 1.03%
4 Customer D 280498068.84 0.97%
5 Customer E 252967586.73 0.88%
Total -- 2351769956.63 8.15%
Other information on major customers
□Applicable ?N/A
Major suppliers of the Company
Total purchase from top five suppliers（CNY） 1325658043.71
Total purchase from top five suppliers as a
18.61%
percentage of the total sales
Total purchase from related parties among top
five suppliers as a percentage of the total 0.00%
purchase
Information on top five suppliers
As a percentage of the total
No. Supplier Purchases (CNY)
purchase for the year
1 Supplier A 486804429.09 6.83%
2 Supplier B 251608659.37 3.53%
3 Supplier C 243472648.94 3.42%
4 Supplier D 182172028.43 2.56%
5 Supplier E 161600277.88 2.27%
Total -- 1325658043.71 18.61%
Other information on major suppliers
□Applicable ?N/A
3. Expense
Unit：CNY
2024 2023 YoY change Reason for any significant change
Selling and
5516238544.795386953700.622.40%
distribution expenses
General and
administrative 1924730302.35 1764423149.06 9.09%
expenses
Finance expenses -610889994.14 -754525568.63 19.04%
The numbers of R&D projects
decreased during the period
R&D expenses 104796407.26 284753881.33 -63.20%
resulted in a corresponding
decrease in R&D expenses.The company shall comply with the disclosure requirements of food and wine manufacturing businesses in Self
Regulatory Guidelines for Listed Companies in Shenzhen Stock Exchange No. 3 - Industry Information Disclosure
The composition of selling and distribution expenses
Unit：CNY
Current period As a percentage of Previous period As a percentage of
Item YoY change
amount selling and amount selling and
20distribution distribution
expenses expenses
Advertising and
promotion 3648740884.77 66.15% 3460573010.51 64.24% 5.44%
expense
Employee salary 1199353317.76 21.74% 1278306975.33 23.73% -6.18%
Travel expense 485971661.37 8.81% 473214108.76 8.78% 2.70%
Labor expense 24494592.14 0.44% 29938594.80 0.56% -18.18%
E-commerce
68031081.971.23%57389122.191.07%18.54%
expense
Other expense 89647006.78 1.63% 87531889.03 1.62% 2.42%
Subtotal 5516238544.79 100.00% 5386953700.62 100% 2.40%
Composition of advertising costs:
Unit：CNY
As a percentage of advertising
Item Current period amount
expense
Nationwide advertising expense 800678417.65 53.23%
Regional advertising expense 703629700.31 46.77%
Total 1504308117.96 100.00%
4. R&D input
?Applicable □N/A
Name of main R & Objectives to be Expected impact on
Purpose Progress
D projects achieved future development
1. Establish the
natural ecological
and microbial
Analyze the natural
profile of the
ecological
Suqian production
conditions of the
area for Chinese
Suqian production
baijiu;
Research on the area of Chinese
2. Determine the Provide support for
ecological baijiu elucidate the
environment and the ecological
environment and environmental
Accomplished in brewing dominant advantages and key
brewing microbiota microbiota and
June 2024. microbial flora in technological
in the Suqian brewing microbiota
different seasons applications of
production area of structure and
and divisions of mellow baijiu.Chinese baijiu expound on the
Suqian liquor
ecological brewing
production area
characteristics of
and analyze the
mellow Chinese
interactive impacts
baijiu.of the environment
on the brewing
microecology.Research on new By analyzing the The interim goal 1. Focusing The raw liquor
technology of typical will be completed refining expressing would like to serve
mellow liquor characteristics of in December 2024 and analyzing the as the base liquor
based on improving the new process of and the goal is typical reserve for the
the quality of raw mellow raw liquor expected to be characteristics and company's future
21liquor. style and studying achieved in styles of the new development of
the biological December 2025 process raw liquor new product
mechanism of mellowness. categories.clarified the 2. Study on the
fermentation biological
container of the mechanism of the
new process of formation of the
mellow and typical style of the
solidified the model new process raw
of process in order liquor of mellow.to further highlight 3. Revealing the
the characteristics fermentation and
of the body and microbial
enable the succession laws of
company to different
develop new fermentation
product categories containers.in the future. 4. Solidification of
the new process
model of mellow
based on quality
improvement.
1. Clarify the
parameters of
Luzhou-flavor
fermented grains
entering the cellar
The key parameters and their impacts
of Luzhou-flavor during the
fermented grains fermentation
entering the cellar process that reflect
are studied and an quality of liquor
Study on optimization model The interim goal find the optimal
optimization of for the parameters will be completed combination of Help the company
parameters and of Luzhou-flavor in December 2024 parameters through upgrade quality of
modeling for fermented grains and the final target experimental products and
Luzhou-flavor entering the cellar is expected to be verification. enhance its market
fermented grains is established to completed in 2. Establish an competitiveness.entering cellar provide theoretical December 2025 optimization model
guidance and for the parameters
technical support of Luzhou-flavor
for the production fermented grains
practice of entering the cellar
company apply it to pilot
production and
improve the
production and
quality of raw
liquor.Reconstruct the 1. Combining the
Study on the combination ratio application results Provide technical
correlation of sesame-flavored of flavor yeast support for sesame-
between sesame- yeast production strains and the flavor process
Accomplished in
flavor fermentation strains optimize research results of fermentation
June 2024
driving system and the raw material Jiangnan University optimization and
functional microbial ratio and cultivation that a systematic form a seasonal
structure process parameters study was process model.of sesame-flavored conducted on the
22yeast production growth
take the metabolic characteristics
regulation of flavor flavor metabolism
substances as the biochemical
guide clarify the indicators and
influence of other indexes of
different stacking the three types of
fermentation existing yeast
methods on white yeast and
sesame-flavored bacteria strains to
liquor and confirm the the
determine the category of sesame
stacking process flavor yeast strain.parameters. 2. From the
perspective of the
growth metabolism
of functional
microorganisms in
accumulation and
fermentation of
sesame flavor
optimized the use
of yeast shells
water etc. to form
a seasonal process
model for sesame
flavor.Information about R&D personnel
2024 2023 YoY change
Number of R&D personnel 608 632 -3.80%
R&D personnel as a
percentage in total 2.82% 3.08% -0.26%
employees
Educational background of R & D personnel
Bachelor degree 166 173 -4.05%
Master degree 57 60 -5.00%
Age of R & D personnel
Under 30 49 58 -15.52%
Between 30 and 40 314 350 -10.29%
Above 40 245 224 9.38%
Information about R&D input
2024 2023 YoY change
R&D input (CNY) 108276667.57 291491760.35 -62.85%
R&D input as a percentage
0.37%0.88%-0.51%
in operating revenues
Capitalized R&D input
3480260.316737879.02-48.35%
(CNY)
Capitalized R&D input
percentage in total R&D 3.21% 2.31% 0.90%
input
Reasons and effects of YoY change in the composition of R & D personnel.□Applicable ?N/A
23Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.
□Applicable ?N/A
Reasons for any significant YoY change in the ratio of the R&D input to the operating revenues.□Applicable ?N/A
5. Cash flow
Unit：CNY
Item 2024 2023 YoY change
Subtotal of cash inflows
31945110362.0635756560836.18-10.66%
from operating activities
Subtotal of cash outflows
27316399124.7829626339968.22-7.80%
from operating activities
Net cash flows from
4628711237.286130220867.96-24.49%
operating activities
Subtotal of cash inflows
13783485811.4611413472196.9520.77%
from investing activities
Subtotal of cash outflows
15085731267.1410752437520.0140.30%
from investing activities
Net cash flows from
-1302245455.68661034676.94-297.00%
investing activities
Subtotal of cash inflows
57000000.00-100.00%
from financing activities
Subtotal of cash outflows
7049805120.985665338295.4624.44%
from financing activities
Net cash flows from
-7049805120.98-5608338295.46-25.70%
financing activities
Net increase in cash and
-3719711942.651182007012.68-414.69%
cash equivalents
Explanation of why the data above varied significantly.?Applicable □N/A
(1) Cash outflows from investing activities increased by 40.30% in this period compared with the previous period
mainly due to the increase in structured deposits purchased during this period.
(2) Net cash flows from investing activities decreased by 297% in this period compared with the previous period
basically because the increase in cash outflows from investing activities in this period was greater than the increase
in cash inflows from investing activities resulted in a reduction in net cash flows from investing activities.
(3) Cash inflows from financing activities reduced by 100.00% in this period compared with the previous period
mainly for the cash received from minority shareholders' investment by subsidiaries in the previous period did not
occur in this period.
(4) Net increase in cash and cash equivalents declined by 414.69% in this period compared with the previous period
mainly attributed to the decrease in net cash flows from operating activities investing activities and financing
activities in this period.An explanation of the reasons for the significant difference between the net cash flow generated by the Company's
operating activities and the net profit for the year during the reporting period
24□Applicable ?N/A
V. Analysis of non-core business
?Applicable □N/A
Unit：CNY
As a percentage
Amount Reasons Sustainability
of total profits
It is mainly the wealth
management income
Investment and the investment
146415168.80 1.60% No
income income of trading
financial assets during
the holding period
Mainly due to changes
Changes in fair
-396164080.43 -4.33% in fair value of financial No
value
assets held for trading
Asset Provision for stock
-11203156.73 -0.12% No
impairment obsolescence
The investment cost of
acquiring an associate is
less than the fair value
of the identifiable net
Non-operating assets of the investee
52446752.81 0.57% No
income that should be affirmed
when the investment is
acquired compensation
and liquidated damages
income
Mainly due to donation
Non-operating expenses and losses
70140310.99 0.77% No
expenses from retirement of fixed
assets
VI. Analysis of assets and liabilities
1. Significant changes of asset items
Unit：CNY
As at the end of 2024 As at the beginning of 2024
As a As a Change
percen percenta In Explanation about any
Amount tage of Amount ge of percenta significant changes
total total ge
assets assets
Cash and cash
21748297978.3732.29%25812787646.8636.99%-4.70%
equivalents
Accounts
8994904.730.01%3528778.280.01%0.00%
receivable
Inventories 19732881051.73 29.30% 18954235402.25 27.16% 2.14%
Long-term 1235408741.87 1.83% 1229838793.04 1.76% 0.07%
25equity
investments
Fixed assets 5571618070.98 8.27% 5305626964.48 7.60% 0.67%
Construction in
1912601220.282.84%1457315739.562.09%0.75%
progress
Right-of-use
66814914.620.10%82464551.160.12%-0.02%
asset
Contract
10343779848.0715.36%11104763487.1815.91%-0.55%
liabilities
Lease
40134989.460.06%48709685.880.07%-0.01%
Liabilities
The proportion of overseas assets is relatively high.□Applicable ?N/A
2. Assets and liabilities measured at fair value
?Applicable □ N/A
Unit：CNY
Changes in
Changes in
the
fair value Amount
Opening cumulative Provision for Amount of Other Closing
Item recognized of
balance fair value impairment sale changes balance
in profit or purchase
recorded
loss
into equity
Financial
Assets
1. Financial
assets held
for trading
5851217680143881.1360000131512176380145
(excluding
84.93061556.08684.93437.14
derivative
financial
assets)
5. Other
-
non-current 55327922 3015745 47316264 669672.4 4614148
47630796
financial 81.26 5.57 8.59 6 799.21
1.49
assets
Receivables
financing
Bank
2615765682927511090851
acceptance
8.3020.37688.67
bill
-
1164558613630151362438082994471208514
Total 39616408
534.499011.65333.5292.835925.02
0.43
Financial
0.000.000.000.000.000.00
liabilities
Other changes
Other changes are the net change of bank acceptance bills during the period and the impacts of exchange rate
fluctuating of other non-current financial assets.
26Whether measurement attribution of main assets changed significantly during this period
□Applicable ?N/A
3. Restricted asset rights as of the end of this reporting period
Closing balance
Item(s)
Book balance Book value Restricted Type Restrictions
Cash and cash
2000000.00 2000000.00 Blocked funds Litigation freeze
equivalents
VII. Investment
1. Total investment
?Applicable □N/A
Investment made in the reporting Investment made in the prior year
YoY change
period (CNY) (CNY)
31711455.571340808034.84-97.63%
2. Significant equity investment made in the reporting period
□Applicable ?N/A
3. Significant non-equity investment ongoing in the reporting period
□Applicable ?N/A
4. Investment in financial assets
(1) Securities investment
?Applicable □ N/A
Unit：CNY
27Changes
in the
Accoun Changes in Profit and
cumulati
Initial ting fair value loss during
Category of Stock Abbr. of Opening ve fair Amount of Amount of Closing Accounting Capital
investment measur recognized the
securities code securities balance value purchase sale balance subject source
cost ement in profit or reporting
recorded
model loss period
into
equity
Other Non-
Domestic and BOCI Securities Fair current Owned
601696300000000.00813157890.4067894736.484037215.84881052626.88
foreign stocks LLC value financial Fund
assets
Other Non-
Shanghai Yunfeng
Xincheng 1012429757.6 Fair current Owned Other Nil 1148364120.10 -278429757.67 135934362.43 734000000.00 Investment 7 value financial Fund
Center (L.P.)
assets
Other Non-
Lianchu Reserve
Fair current Owned Other Nil Securities Co. 330000000.00 330000000.00 330000000.00 value
Ltd. financial Fund
assets
Other Non-
Pan Mao
(Shanghai) Fair current Owned Other Nil 196392315.55 424312885.65 -55756945.50 42686962.27 325868977.88 Investment value financial Fund
Center (L.P.)
assets
Xiamen Yuanfeng Other Non-
Ronghao Equity
Investment current Owned
Other Fair Nil 218550000.00 224487985.30 14945.17 30000000.00 4500000.00 250002930.47 Partnership value financial Fund
(Limited
Partnership) assets
Nanjing Xingnahai Other Non-
Equity Investment
Fair current Owned Other Nil Partnership 214386300.00 262646298.52 -7675944.10 10370700.00 244599654.42 value
(Limited financial Fund
Partnership) assets
Nanjing Xingnahe
Fair Other Non- Owned Other Nil Venture Capital 174370000.00 196627500.00 22257500.00 174370000.00 value
Partnership current Fund
28(Limited financial
Partnership)
assets
Other Non-
Jiangsu Siyang
Fair current Owned
Other Nil Rural Commercial 7987200.00 151394268.49 10310469.27 2959120.32 161704737.76
Bank Co.Ltd. value financial Fund
assets
Other Non-
Domestic and Fair current Owned
VSPT Vina San Pedro 425350132.53 221059279.38 -76538225.20 6725982.22 144521054.18
foreign stocks value financial Fund
assets
Jiangsu Zijin
Hongyun Health Other Non-
Industry
Investment Fair current Owned
Other Nil 120000000.00 144094987.35 -7541658.44 136553328.91 Partnership value financial Fund
Enterprise
(Limited assets
Partnership)
Other securities investments held at the end of this 1482697781.0 1796647066.07 -128585581.50 157455.57 437413123.89 848360.46 1231475488.7
period 7 -- 1 -- --
4482163486.85712792281.26-476307961.4930157455.57653162648.5914570678.844614148799.2
Total -- -- --
21
(2) Derivative investments
□Applicable ?N/A
29No such cases in the reporting period.
5. Use of fund-raising
□Applicable ?N/A
No such cases in the reporting period.VIII. Sale of major assets and equity Interests
1. Sale of major Assets
□Applicable ?N/A
No such cases in the reporting period
2. Sale of major equity Interests.
□Applicable ?N/A
IX. 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 Registered Operating Operating
Total assets Net assets Net profit
name type scope capital revenue profit
Su Wine Wholesalin
Trade g and
Group Subsidiary retailing of 334400000.00 21681060187.36 2590824019.41 24010995910.40 1860716517.54 1622179315.54
Limited by prepackage
Share Ltd. d food
Jiangsu
Shuanggou Production
Distillery Subsidiary and sales 110000000.00 12256306096.46 10488820025.93 3741929908.43 2440249844.31 2222862565.15
Stock Co. of Baijiu
Ltd.Jiangsu Wholesalin
Shuanggou g and
Liquor Subsidiary retailing of 5000000.00 13915550429.14 1948956963.57 13232219981.83 2581077115.94 1935865335.36
Operation prepackage
Co. Ltd. d food
Jiangsu
Yanghe Wholesalin
Liquor g and
Operation Subsidiary retailing of 10000000.00 8382968903.77 826756627.63 11369639545.12 1081038444.31 810773347.63
and prepackage
Manageme d food
nt Co. Ltd
Siyang Wholesalin
Blueprint g and
Liquor Subsidiary retailing of 3000000.00 23499885501.89 802576972.76 11145219750.02 1063892299.14 797915272.76
Operation prepackage
Co. Ltd d food
30Wholesalin
Jiangsu Blue
g and
Dream E-
Subsidiary retailing of 10000000.00 2051170071.40 812472232.93 2390958176.66 1062123691.07 796736638.35
commerce
prepackage
Co. Ltd
d food
Acquisition and disposal of subsidiaries during the reporting period
?Applicable □ N/A
How subsidiary was acquired or
Impact on overall operation and
Subsidiary name disposed during the reporting
results
period
Tibet Yangmingwei Liquor Co. Ltd Establishment minor
Suqian Yiguoxiang Sales Co. Ltd. Establishment minor
Hangzhou Yiguoxiang Brand Operation
Establishment minor
Management Co. Ltd
Hainan Yanghe Trading Co. Ltd. Establishment minor
Jiangsu Shiyang Network Technology Co.Deregistration minor
Ltd
Jiangsu Yanghe Micro Classroom
Deregistration minor
Network Technology Co. Ltd
X. Structured entities controlled by the Company
□Applicable ?N/A
XI. Outlook for the future development of the Company
(1) Industry situation analysis
a) Industry output declines. According to the data from the National Bureau of Statistics in 2024 the total output
of liquor (equivalent to 65 degrees commodity volume) of enterprises above designated size nationwide was 4.145
million kiloliters a year-on-year decrease of 1.8%. The competition of the industry shifted into inventories in stock
sustained to upgrading.b) The Matthew effect intensifies. Against the background of the slowdown in the overall growth of the liquor
industry the competition of the industry is accelerating and the market shares are further centralized in
advantageous production areas enterprises and brands.c) Rational consumption is demonstrated. Liquor consumption has entered the era of "consumption rationality as
well as price rationality" and consumers have formed a drinking consumption concept of rational drinking wisely
consumption and drinking less but better.d) Quality pursuit is boosting. With the continuous enhancement of healthy awareness national widely consumers
pay more attention to health and safety and product quality and prefer products with comfortable taste and
excellent quality.
(2) The company's development strategy and business plan
a) Development strategy
During the "14th Five-Year Plan" period the company adheres to the consumer-centered growth route with
31double-famous baijiu brands as the main body and multi-brand as the pillar focuses on quality brands culture
and innovation and builds the "12345" strategic system making Yanghe brand as the leading force and Shuanggou
brand as the surging power. The company aims to promote the continuous growth of the quantity and the steady
improvement of the quality to a higher level to achieve better more balanced higher quality and more efficient
development leading Yanghe to become a Chinese taste that Chinese are proud of and a Chinese business card
that is remembered by the world.b) Business plan for 2025
According to current period development of the liquor industry and the market competition environment
combining with the current development stage of the company in 2025 we would like to concentrate on the Long-
termism strengthen quality publicizing and good reputation orienting build a brand system operating based on
demands customers and accumulate potential competitiveness of brand. The company will thoroughly centralize
on dominating products and major markets further consolidate the market foundation and promote healthy and
sustainable development. The main issues to be complied are as followings:
(I) In terms of marketing the company would maintain the control of quantity and price of dominating products
and actively optimize the relationship between supply and demand through methods such as reasonable quota
control. The company will clarify the policy guiding of open bottles for bonus and promote the benign growth of
channels centralizing Jiangsu and periphery around Jiangsu markets to create and foster models and highland
markets strengthen channels and promote them positively and solidify the base market. We will upgrade the
effectiveness of resources allocation support core terminals to improve enhance the market expansion and
operation capabilities of dealers and support dealers to expand and prosper. We will reinforce BC linkage analysis
and control expenditure effectiveness and improve the accuracy of expense investment. We hope to achieve
breakthroughs of hotel channels expansion and group purchase channels pushing forward market penetration
into rural community and continuously strengthening the basal channels.(II) In terms of brands we would like to focus on the value of scarcity of "mellowness aged liquor " continue to
carry out integration of the brands as well as their dissemination and deepen the high-end image of the hand-
made class. Combining with propagandize the theme of "Mellowness Aged Liquor of a Great Country" we would
focus on consumption scenarios and daily life scenarios and strengthen the brand scenario expression. We hope
to enhance the reputation of quality appreciated by consumers accelerate the upgrading of the productions
promotion system thoroughly and launch diversified consumer development activities to discover nurture and
transform consumers whole-heartedly.(III) In terms of quality we would like to perfect the technological innovation system gradually promote
independent innovation and deepen integration of industry academia and research increase efforts to tackle key
issues and the transformation to apply research results. We target to boost the mellow distilling system optimize
production capacity improve quality and continuously develop higher-quality raw liquor that is richer cozier more
mellowness. We will ameliorate the resource guarantee system promote the application of the digital platform
for liquor body efficiently coordinate the scientific allocation of resources and ensure the capability that
guarantee products iteration and upgrading. The company plans to enhance the quality expression system and
deeply explore the mellow genes mellow mechanisms and mellow culture.(IV) In terms of management we would like to strictly follow the latest requirements of laws and regulations to
32optimize corporate governance structure and system of the company. Centering on the top-level planning of
"Digital Yanghe" we will further promote the digitalization and intelligence of operations strengthen the
application of AI technology in customer service business training and other management aspects and deeply
explore innovative methods and effective paths for the brand and its reputation building in the AI era. We will
continue to study and implement the "Dual-Carbon" policy promote the use of smartness energy platforms
improve the internal assessment system for carbon emissions and deeply integrate the ESG concepts into the
internal management of the enterprise. We will adhere to prevent and control from the source through high-
efficiency governance accelerate the construction of an inherent safety management standard system and
continue to tighten the four major responsibilities of all employees i.e. "production safety firefighting safety food
safety and public security safety."
(3) Possible risks
1. Risk of uncertainty of the external environment. Currently the economy of China is gradually recovering but
still facing a complex and severe external situation which brings great uncertainties to the development of the
liquor industry.
2. Risk of intensified industry competition. Presently squeeze-type competition in the liquor industry is accelerating
and the competition among liquor enterprises especially the market competition among the leading liquor
companies becomes more intensified. Each famous liquors are competing directly in the same region.
3. Risk of changes in consumer demand. The scale and group structure of the current main liquor consumer groups
their demands and concepts have changed and the drinking habits of the new consumer groups would have a
certain impact on the development of the industry.XII. Visits paid to the Company for research communication interview
etc. during the reporting period.?Applicable □N/A
The main
contents of
the Index to
Reception Type of
Date of visit Way of visit Visitor discussion main inquiry
site visitor
and the information
information
provided
Guosen
Securities;
Shenwan
The
Hongyuan
company's Yanghe Share
Securities;
production Survery
Zheshang
marketing Activities
Telephone Securities;
Telephone finance Information
2024-04-28 communicati Institution Guotai
conference production on 30 Apr
on Haitong
planning 2024 on
Securities;
strategy www.cninfo.c
Huaitai
investor om.cn
Securities;
returns etc.Changjiang
Securities;
CITIC
33Securities;
Industrial
Securities;
Dongxing
Securities;
Tianfeng
Securities;
Zhongtai
Securities
other
brokerage
analysts and
institutional
investors.Investors
The Yanghe Share
who
company's Survery
participated
production Activities
in the online
Panorama.co Online marketing Information
2024-05-13 Other briefing on
m platform management on 14 May
the
finance 2024 on
company's
strategies www.cninfo.c
2023 annual
etc. om.cn
results
Shareholders
and investors
Yanghe Share
who
Company Survery
participated
Suqian operation Activities
in the on-site
Hengli production Information
2024-06-07 Field survey Other communicati
International planning on 12 Jun
on of the
Hotel investor 2024 on
company's
returns etc. www.cninfo.c
2023 annual
om.cn
general
meeting
Investors
from
Yanghe Share
Tianfeng
Survery
Securities;
Company Activities
CIB Wealth
operation Information
2024-09-26 Headquarter Field survey Institution Management
strategies on 30 Sep
; BOC
etc. 2024 on
Investment
www.cninfo.c
Management
om.cn
; Bin Yuan
Capital
XIII Development and implementation of market value management
system and valuation enhancement plan
Whether the company has established a market value management system.□Yes □No
Whether the company has disclosed its valuation enhancement plan.
34□Yes ?No
In order to strengthen the company's market value management promote the improvement of the company's
investment value and safeguard the legitimate rights and interests of the company investors and other
stakeholders in accordance with the "Company Law of the People's Republic of China" "Securities Law of the
People's Republic of China" "Several Opinions of the State Council on Strengthening Supervision Preventing Risks
and Promoting High-quality Development of the Capital Market" "Guidelines for the Supervision of Listed
Companies No. 10-Market Value Management" "Shenzhen Stock Exchange Listing Rules" and other relevant laws
administrative regulations normative documents and the company's "Articles of Association" and other provisions
and in combination with the company's actual situation the "Market Value Management System" was formulated.The system clarifies the market value management institutions and personnel specific management measures
monitoring and early warning mechanisms etc. and disclosed after being reviewed and approved at the seventh
meeting of the eighth board of directors of the company on December 30 2024.XIV Implementation status of the 'Quality Improvement and Dual
Enhancement' action plan
Whether the company disclosed the 'Quality Improvement and Dual Enhancement' action plan
□Yes □No
To embody the development concept of 'investors first' for listed companies continuously enhance the company's
value creation capability and shareholder return capability the company has formulated and disclosed the 'Quality
Improvement and Dual Enhancement' action plan. For specific details please refer to the announcement titled
'Announcement on the 'Quality Improvement and Dual Enhancement' Action Plan' disclosed by the company on
the Juchao Information Network (www.cninfo.com.cn) (Announcement No.: 2024-002). The company boosts the
implement of "Quality Improvement and Dual Enhancement" action plan positively:
Firstly focus on the main responsibilities and primary business. Facing the intricate external environment and
market competition circumstance the company practically adjusted its business strategy in line with the steady
rational and sustainable development of the enterprise to cope with the upgrading of external competition and
the problems existing in its own development. Secondly lay a solid foundation of governance. In 2024 three
systems including the "Independent Director Working System" and the "Independent Director Special Conference
Working System" were formulated and 10 systems such as the "Company Articles of Association" and the "Rules
of Procedure of the Audit Committee of the Board of Directors" were revised to further improve the corporate
governance system. Thirdly standardize information disclosure. By the year 2024 79 regular reports and
temporary announcements were disclosed social responsibility reports or environmental social and corporate
governance (ESG) reports were disclosed for consecutive 14 years and the A rating was obtained by the company
in the information disclosure assessment organized by the Shenzhen Stock Exchange for twelve successive years.Fourthly proactive communication. Interaction and communication with investors in multiple methods hold the
2023 annual report online performance briefing and the 2023 annual shareholders' meeting positively interacted
with shareholders and investors and deepen investors' understanding of the value of the company. Fifthly
enhancing shareholder returns. Actively share the results of corporate development achievements with investors
for the year 2023 a cash dividends of RMB 7.02 billion (tax included) accounting for 70.09% of the net profits
attributable to shareholders of the listed company were delivered to investors; to ensure the further enhancement
of shareholder returns the company has formulated the "Cash Dividend Return Plan (2024-2026)" and
35implemented the 2024 interim profit distribution pay cash dividends of CNY 23.30 (tax included) per 10 shares to
all shareholders and the mid-term cash dividends subtotaled was CNY 3.51 billion (tax included). The 2024 profit
distribution pre-arranged plan is based on the total existing share capital of 1506445074 shares cash dividends
of CNY 23.17 (tax included) per 10 shares would like to paid to all shareholders totally CNY 3.49 billion (tax included)
would be paid. The distribution plan remains to be submitted to the general meeting of shareholder for
deliberation.For details on the specific progress of the company's " Quality Improvement and Dual Enhancement " action plan
please refer to the "Progress Announcement on the Action Plan for Quality Improvement and Dual Enhancement
" disclosed by the company on April 29 2025.
36Section IV Corporate Governance
I. Basic Situation of Corporate Governance
The company has strictly been following the "Company Law" "Securities Law" "Governance Guidelines for Listed
Companies" "Shenzhen Stock Exchange Listing Rules" and other laws administrative regulations departmental
rules and normative documents. Combining the actual development of the company the company constantly has
improved its modern enterprise system and corporate governance structure. During the reporting period the
overall operation of the company was standardized and complied line with the governance requirements of listed
companies.
1. Shareholders and shareholders’ meetings
The responsibilities of the company's general meeting of shareholders were clear with accurate rules of procedure
and practical implementation. The calling convening and deliberation procedures of the company's general
meeting of shareholders complied with the relevant provisions of the Company Law the Articles of Association
and the Rules of Procedure for the General Meeting of Shareholders of the Company. All shareholders were treated
equally especially to ensure that small and medium shareholders enjoy equal status and ensure that small and
medium shareholders can sufficiently exercise its own rights. The board of directors of the company earnestly has
implemented the resolutions of the general meeting of shareholders.
2. Directors and Board of directors
The responsibilities of the board of directors of the company were clear and all directors could perform their duties
conscientiously. The board of directors of the company elected directors in strict accordance with the selection
and appointment procedures stipulated in the Company Law and the Articles of Association. The board of directors
of the company currently consisted of 11 directors 4 of which were independent directors. The composition of
the board of directors conformed to the requirements of laws and regulations. The board of directors of the
company strictly complied with the "Company Law" "Articles of Association" and other relevant regulations to
regulate the deliberation and operation of the board of directors. All directors of the company could attend the
board of directors in accordance with the "Procedure Rules of the Board of Directors" "Working System for
Independent Directors" and other regulations diligently and conscientiously reviewed each case making scientific
and reasonable decisions on major issues of the company and earnestly safeguarding the interests of the company
and the legitimate rights and interests of all shareholders. The company's board of directors consisted of four
professional committees namely the strategy committee the nomination committee the audit committee and
the remuneration and appraisal committee. Each committee had a clear division of labor powers and
responsibilities and gived full play to its professional functions providing scientific and professional opinion for
the decision-making of the board of directors.
3. Supervisors and Board of Supervisors
The company's board of supervisors has clear responsibilities and all supervisors can conscientiously and
responsibly perform their duties. The board of Supervisors of the company election was in strict accordance with
the recruitment procedures stipulated in the Company Law and the Articles of Association and etc. The board of
supervisors of the company was composed of 4 supervisors among which 2 are employees' representatives. The
composition of the members of the board of supervisors meeted the requirements of laws and regulations. The
37board of supervisors operated in strict accordance with the company law the company's articles and other
regulations the supervisors could attend the board requested by the rules of procedure of the board of supervisors
earnestly performed their duties effectively supervising and expressing opinions on the major issues of the
company financial status and how the directors and President perform. Safeguarding the legitimate rights and
interests of the company and shareholders was also the duty of the board of supervisors.
4. Performance appraisal and incentive and restraint mechanism
The appointment of the company's directors supervisors and senior management personnel was open and
transparent in line with relevant laws and regulations and a fair and transparent management performance
evaluation standard and incentive and restraint mechanism have been established. During the reporting period
the company conducted a performance appraisal on the goals set by the executive suites in accordance with the
annual business plan and all the executive suites have conscientiously performed their duties.
5. Performance appraisal and incentive and restraint mechanism
The controlling shareholder of the company exercised the rights of the investor and took the obligations in strict
accordance with the requirements of the Company Law. The company and the controlling shareholder separated
personnel assets and finances with independent organization and business accounting independently and taking
responsibilities and risks independently. During the reporting period the controlling shareholder did not directly
or indirectly interfere with the company's decision-making and business activities beyond the company's general
meeting of shareholders and there was no situation where the controlling shareholder harmed the legitimate
rights and interests of other shareholders of the company. There was no major related transaction between the
company and its controlling shareholder there was no phenomenon that the controlling shareholder occupies the
funds of the company and the company did not provide guarantees for the controlling shareholder and its
subsidiaries.
6. Investor relations activities
The company payed great attention to the management of investor relations and actively safeguarded the
legitimate rights and interest of the company's shareholders. In addition to performing information disclosure
obligations diligently and honestly the chairman president and secretary of the board of directors maintained
positive interactions with investors by receiving investor surveys participating in online performance briefings and
brokerage strategy meetings etc. The securities department acting as a specialized relationship management
agency strengthened communication with investors through telephone email interactive and other methods
fully guaranteeing the investors' right to know and safeguarding their legitimate rights and interests.
7. Stakeholders environmental protection social responsibility
The company fulfilled its social responsibility obligations in accordance with the requirements of social
responsibility fully respected and safeguardd the legitimate rights and interests of relevant stakeholders realized
the coordination and balance of the interests of the society government shareholders the company employees
and other parties and jointly promoted the harmonious and stable development of the company. The company
advocated the governance concept of ‘green brewing ecological enterprise’ integrates ecological and
environmental protection requirements into the company's development strategy and corporate governance
process. While maintaining the sustainable development the company actively participated in social welfare
undertakings and practices social responsibility.
388. Information disclosure and transparency
In strict accordance with the requirements of the regulatory authorities the company earnestly implemented
the "Information Disclosure Management System" "Investor Relations Management System" and others
strengthened the management of information disclosure affairs and earnestly fulfilled its information disclosure
obligations in accordance with the law and discloses truthfully accurately completely timely and fairly.information ensuring that all shareholders have equal access to information.
9 Continue to improve the internal management system
The company continued to improve the internal control system further strengthen corporate governance so
that the level of corporate governance has been further improved. The audit committee of the company
comprehensively reviewed and supervised the effectiveness of the company's financial reporting internal control
and corporate governance. As an internal audit unit the company's audit center conductd routine and continuous
supervision and inspection for the improvement and implementation of the internal control system timely
discoverd and improved the deficiencies of internal control ensured the effectiveness of internal control and
improved the company's operation and management level and risk prevention ability.Is the actual situation of corporate governance significantly different from laws administrative regulations and
regulations on listed company governance issued by the CSRC？
□ Yes ? No
The actual situation of corporate governance is not significantly different from laws administrative regulations
and regulations on listed company governance issued by the CSRC.II Company’s Independence in Assets Personnel Finances Organizations and Businesses from
Controlling Shareholders and Actual Controller
The company has a complete independent production and management system and independent decision-
making management ability covering business personnel assets organizations and finance five aspects.
1. For business aspect
The company's business structure is independent and complete with the ability to independently face the market
and operate independently. There is no horizontal competition with the controlling shareholder and the
controlling shareholder does not directly or indirectly interfere with the company's operations.
2. For personnel aspect
The company has established an independent personnel and wage management system and signed a "labor
contract" with employees. The chairman president vice president chief financial officer and secretary of the
board of directors of the company receive remuneration from the company but do not receive remuneration from
the controlling shareholder. The directors supervisors and senior management of the company do not hold
positions prohibited by laws and regulations in other companies with the same or similar business as the company.
3. For assets aspect
The company has a clear property relationship with the controlling shareholder has independent land use rights
and housing property rights and independently registers builds accounts accounts and manages company assets.
39The controlling shareholder has not occupied or dominated the company's assets or interfered with the company's
operation and management of the assets.
4. For organization aspect
The company has a mature organizational system. The general meeting of shareholders the board of directors
the board of supervisors the management and each functional department operate independently and a
corresponding internal management and control system has been formulated so that the division of labor among
each department is clear and each department performs its own duties. The cooperation with each other forms
an organic whole which ensures the legal operation of the company and there is no subordination relationship
with the controlling shareholder's functional department.
5. For finance aspect
The company has a complete and independent financial institution equipped with sufficient full-time financial
accounting personnel established an independent accounting system and financial management system and
independently opened bank accounts paid taxes and made financial decisions independently. The controlling
shareholder does not intervene in the financial management of the company.III. Competition in the same industry
□Applicable ?N/A
IV. Annual general meeting and extraordinary general meeting held during the reporting
period
1. Shareholders' general meeting during the reporting period
Investor
Which Session Type Open Date Disclose Date Meeting Outcome
Participation Ratio
For details please
refer to the
st "Announcement 2024 1 Extraordin
on Resolutions of
Extraordinary ary general
the 2024 1st
General meeting of 73.27% April 022024 April 032024
Extraordinary
Meeting of Shareholde
General Meeting
Shareholders rs
of Shareholders "
(Announcement
No.: 2024-010)
For details please
refer to the
"Announcement
Annual
2023 Annual on Resolutions of
General
General the 2023 Annual
Meeting of 73.70% June 07 2024 June 08 2024
Meeting of General Meeting
Shareholde
Shareholders of Shareholders"
rs
disclosed by the
company in the
statutory
40information
disclosure media
(Announcement
No.: 2024-027)
2. Preference shareholders with restored voting rights request to convene an extraordinary general meeting
□Applicable ?N/A
41V. Directors Supervisors and Senior Managers
1. Basic situation
42Number of Number
Number of Number of Other
shares of shares
Shares Shares Increase
held at the held at
Ag Service Term Start Term increased in decreased or
Name Gender Position beginning the end Reasons
e status Date End Date current in current decrease
of the of the
period period changes
period period
(Shares) (Shares) (shares)
(shares) (shares)
Zhang February April 02
Male 57 Chairman Incumbent 0 0 0 0 0
Liandong 23 2021 2027
Vice
February April 02
Zhong Yu Male 61 Chairman Incumbent 0 0 0 0 0
1020152027
President
Yang May 30 April 02
Male 51 Director Incumbent 0 0 0 0 0
Weiguo 2022 2027
January 15 April 02
Xu Jun Male 49 Director Incumbent 0 0 0 0 0
20252027
Director
April 02 April 02
Chen Jun Male 49 Vice Incumbent 0 0 0 0 0
20242027
President
43Zheng April 02 April 02
Male 58 Director Incumbent 45000 0 0 0 45000
Bujun 2024 2027
Dai April 02 April 02
Male 54 Director Incumbent 0 0 0 0 0
Jianbing 2024 2027
Independe February April 02
Nie Yao Male 48 Incumbent 0 0 0 0 0
nt Director 23 2021 2027
Independe February April 02
Lu Guoping Male 65 Incumbent 0 0 0 0 0
nt Director 23 2021 2027
Mao Independe February April 02
Male 61 Incumbent 0 0 0 0 0
Lingxiao nt Director 23 2021 2027
Hong Independe April 02 April 02
Male 44 Incumbent 0 0 0 0 0
Jinming nt Director 2024 2027
Chairman
of the April 02 April 02
Lin Qing Female 50 Incumbent 0 0 0 0 0
Supervisor 2024 2027
y Board
Ma April 02 April 02
Male 48 Supervisor Incumbent 0 0 0 0 0
Wenxiang 2024 2027
44April 02 April 02
Jin Yaguang Male 49 Supervisor Incumbent 0 0 0 0 0
20242027
Huang April 02 April 02
Male 55 Supervisor Incumbent 0 0 0 0 0
Jinhua 2024 2027
Vice
Yin July 13 April 02
Male 53 President Incumbent 0 0 0 0 0
Qiuming 2020 2027
CFO
Vice July 13 April 02
Li Yuling Male 55 Incumbent 0 0 0 0 0
President 2020 2027
Vice November April 02
Fan Xiaolu Male 41 Incumbent 0 0 0 0 0
President 102023 2027
Chen Vice November April 02
Male 57 Incumbent 0 0 0 0 0
Taisong President 102023 2027
Zhang Vice November April 02
Male 56 Incumbent 0 0 0 0 0
Xueqian President 102023 2027
Song Vice November April 02
Female 50 Incumbent 0 0 0 0 0
Zhimin President 102023 2027
45Lu Board February April 02
Female 47 Incumbent 0 0 0 0 0
Hongzhen Secretary 23 2021 2027
Leaving May 19 July 26
Wang Kai Male 48 Director 2400 0 0 0 2400
office 2017 2024
Zhao Independe Leaving February April 02
Male 73 0 0 0 0 0
Shuming nt Director office 23 2021 2024
Chairman
Chen of the Leaving July 13 April 02
Male 60 0 0 0 0 0
Taiqing Supervisor office 2020 2024
y Board
Xu Leaving May 23 August
Male 48 Supervisor 0 0 0 0 0
Youheng office 2019 19 2024
Leaving February April 02
Xu Lili Female 46 Supervisor 0 0 0 0 0
office 23 2021 2024
Leaving July 06 April 02
Chen Fuya Male 60 Supervisor 0 0 0 0 0
office 2020 2024
Total -- -- -- -- -- -- 47400 0 0 0 47400 --
46During the reporting period is there any resignation of directors and supervisors and dismissal of senior managers during their term of office？
47?Applicable □N/A
During the reporting period Mr. Zhao Shuming resigned from the position as Independent Director upon
expiration of his term; Mr. Chen Taiqing resigned from the position as Chairman of the Supervisory Board upon
expiration of his term; Ms. Xu Lili and Mr. Chen Fuya resigned from the position as Supervisors upon expiration of
their terms. Mr. Wang Kai resigned from his position as Director due to job reassignment and Mr. Xu Youheng
resigned from his position as Supervisor due to job reassignment.Changes in directors supervisors and senior management of the company
?Applicable □N/A
Name Position Type Date Reasons
Wang Kai Director Leaving office July 26 2024 job reassignment
Zhao Shuming Independent Retired upon
April 02 2024 expiration of term
Director expiration of term
Chen Taiqing Chairman of the Retired upon
April 02 2024 expiration of term
Supervisory Board expiration of term
Xu Youheng Supervisor Leaving office August 19 2024 job reassignment
Xu Lili Supervisor Retired upon
April 02 2024 expiration of term
expiration of term
Chen Fuya Supervisor Retired upon
April 02 2024 expiration of term
expiration of term
2. Situation of Employers
The professional background main work experience and main responsibilities of the current directors supervisors
and senior management of the company
(1) Directors
Mr. Zhang Liandong born in September 1968 master degree from the Party School deputy to the National
People's Congress. He successively served as director of the Management Committee of Sucheng District Economic
Development Zone Deputy Director of the Sucheng District member of the Standing Committee of the Sucheng
District Committee secretary of the Party Working Committee of Sucheng Economic Development Zone deputy
secretary-general of the Suqian Municipal Government director of the Suqian City Administration Bureau deputy
secretary-general of Suqian Municipal Government (section level) secretary of the Party and Working Committee
of Suqian City's Yanghe New District chairman of Sujiu Group Trading Co. Ltd. He is currently the company’s the
Party secretary and chairman of the board of directors chairman of Jiangsu Shuanggou Wine Co. Ltd.Mr. Zhong Yu born in May 1964 master degree Chinese Brewmaster a master of Chinese liquor a senior engineer
and a representative of the 13th and the 14th Jiangsu Provincial People's Congress. He successively served as the
director of the technical department the director of the environmental protection department director of the
Production Technology Division and minister of the Production Technology Department and the director of the
technology center of Jiangsu Shuanggou Winery; the deputy chief engineer assistant to the general manager
brewing director assistant to the president vice president general manager of Siyang Co. Ltd. ; general manager
of Yanghe Co. Ltd. He is currently the deputy secretary of the party committee vice chairman and president of
the company.Mr. Yang Weiguo born in February 1974 bachelor degree and master degree. He has served as Standing
Committee member of Siyang County Party Committee Minister of Publicity Department member of Party
48Leading Group of County government deputy county head deputy secretary-general of Suqian Municipal Party
Committee deputy director of Suqian Reform Office Party Secretary and President of Suqian Daily. He is
currently secretary of the party committee and chairman of Suqian Industrial Development Group Co. LTD.chairman of Jiangsu Yanghe Group Co. LTD. and chairman of Jiangsu Shuanggou Group Co. LTD.Mr. Xu Jun born in April 1976holds a master's degree and is a Certified Intermediate Economist. He previously
served as Assistant General Manager and Deputy General Manager (deputy division level) of Shanghai Tobacco
Trade Center Co. Ltd. He is currently a Director of the Company. Deputy General Manager of Shanghai Haiyan
Logistics Development Co. Ltd. and a Director of Shanghai Tobacco Group Huangpu Tobacco Liquor & Sugar Co.Ltd. Shanghai Tobacco Group Xuhui Tobacco Liquor & Sugar Co. Ltd. Shanghai Tobacco Group Minhang
Tobacco Liquor & Sugar Co. Ltd. and Shanghai Tobacco Group Fengxian Tobacco Liquor & Sugar Co. Ltd.Mr. Chen Jun born in January 1976 is a graduate of the Party School with a master's degree and holds the title
of Senior Economist. He has served in various positions including Deputy Director of the Accounting and
Accounting Center of Suqian Finance Bureau Vice President (Deputy Department-level) of the Chinese
Accounting Correspondence College Suqian Branch Director and Deputy Director of the Financial Work Office of
Suqian Municipal People's Government Member of the Party Working Committee and Deputy Director (on
secondment) of the Management Committee of Suqian Economic and Technological Development Zone Deputy
Secretary of the Party Working Committee. He served as Deputy Party Secretary Director and General Manager
of Suqian Industrial Development Group Co. Ltd.; Director of Jiangsu Yanghe Group Co. Ltd. He serves as the
Deputy Secretary of the Party Committee Director and Vice President of the company as well as the Chairman
of Sujiu Group Trading Co. Ltd.Mr. Zheng Bujun born in January 1967 holds an MBA degree and the title of Senior Engineer. He has served as
the General Manager of Jiangsu Yanghe Group Co. Ltd. General Manager of Suqian State-owned Assets
Investment Management Co. Ltd. member of the Party Committee director and Deputy General Manager of
Jiangsu Shuanggou Liquor Co. Ltd. as well as the Director of the company. He has also held positions within the
company including Director of Procurement and Logistics President's Assistant member of the Party Committee
and Vice President. Currently he is a member of the Party Committee and Director of the company as well as
the Party Secretary and General Manager of the company's Siyang Branch.Mr. Dai Jianbing born in September 1971 holds an associate degree. He has served in various positions
including Deputy Director of the Office of Jiangsu Yanghe Group Co. Ltd. Manager of the Suqian Zhenjiang and
Suzhou Branches of Yanghe Sales Company Deputy General Manager and General Manager of the East China
Marketing Center of Sujiu Group Trading Co. Ltd. Sales Director and General Manager of Jiangxi Region and
Southern Jiangsu Region as well as Vice General Manager and General Manager of Shandong Region. Currently
he serves as a director of the company and Vice General Manager and General Manager of the Huan Su Region
of Sujiu Group Trading Co. Ltd.Mr. Nie Yao born in June 1977 holds a doctorate degree. He has served as a visiting scholar at the Advanced
Biotechnology and Medical Center of Rutgers University (State University of New Jersey) an associate professor at
the School of Bioengineering Jiangnan University and an independent director of Jinhui Liquor Co. Ltd. He is
currently an independent director of the company subdean and professor of the School of Bioengineering
Jiangnan University.
49Mr. Lu Guoping born in March 1960 bachelor degree professor of accounting CPA outstanding educator in
Jiangsu Province. He has successively served as lecturer associate professor director of teaching and research
section of the School of Engineering of Nanjing Agricultural University.He has been an independent director of
listed companies such as Anhui Shenjian New Materials Co. Ltd. Langbo Sealing Technologies Co. Ltd. Huaxin
New Material Co. Ltd. Research Institute of Building Sciences Group Co. Ltd. and a director of Lamborghini.Currently he is the independent director of Yanghe Brewery the professor and master tutor of the National Wealth
Auditing College of Nanjing Audit University the lead Instructor of the National First-class Undergraduate Course
(Online and Blended) "Advanced Financial Accounting" and the national first-class Head of the undergraduate
course "Advanced Financial Accounting" independent director of Baosheng Technology Innovation Co. Ltd. and
Suzhou Lianxun Instrument Co. Ltd.Mr. Mao Lingxiao born in January 1964 bachelor’s degree first-class lawyer (Senior professional title). He has
served as a staff member of the Jiangsu Provincial Department of Justice a full-time lawyer of Jiangsu International
Economic and Trade Law Firm a senior partner and director of Jiangsu Lingxiao Law Firm a senior partner of
Jiangsu Jinding Law Firm and a senior partner and director of Jiangsu Tianzhe Law Firm. Full-time lawyer senior
partner and executive director of Beijing Zhongyin (Nanjing) Law Firm. He is currently an independent director of
the company Independent Director of Hicin Pharmaceutical Co. Ltd. a full-time lawyer senior partner and
chairman of the partner meeting of Beijing Haotian (Nanjing) Law Firm.Mr. Hong Jinming born in October 1981 holds a Ph.D. and is an associate researcher and doctoral supervisor. He
has served as Credit Manager at the Beijing Development Zone Branch of Agricultural Bank of China Limited
Product Manager at the Planning and Accounting Department of the Beijing Branch and Senior Specialist (Chief
Clerk) at the Head Office of Agricultural Bank of China. Currently he serves as an independent director of the
company Wuzhou Specialty Paper Co. Ltd. Deputy Director of the Financial and Accounting Research Center at
the Chinese Academy of Fiscal Sciences and an independent director of companies such as Aibru and EarthView
Image Co.Ltd.
(2) Supervisors
Ms. Lin Qing born in May 1975 master's degree senior accountant and certified public accountant. She
successively served as deputy director of the Enterprise Division of Suqian Finance Bureau of Jiangsu Province
assistant to the director of the Municipal Price Bureau member and deputy director of the Suqian Party Committee
of the Municipal Development and Reform Commission member of the Standing Committee of the Party
Committee of the company vice president of the company and head of the internal audit of the company. She is
currently a member of the Standing Committee of the company's party committee vice chairman of Sujiu Group
Trading Co. Ltd.Mr. Ma Wenxiang born in September 1977 holds a bachelor's degree and is a junior economist. He has served
as an investment manager at Shanghai Jiangju Investment Company officer at the Asset Department and Deputy
Director of the General Office at Shanghai Ruitai Investment Development Company Director of the Party
Committee Office and Director of the Party Work Department at Shanghai Sugar Tobacco (Group) Co. Ltd.committee member and secretary of the committee at Shanghai Jieqiang Tobacco Sugar and Liquor (Group) Co.Ltd. as well as Deputy General Manager. Currently he serves as a supervisor of the company Deputy Secretary
of the Party Committee and General Manager of Shanghai Jieqiang Tobacco Sugar and Liquor (Group) Co. Ltd.and a director of Shanghai Haiyan Logistics Development Co. Ltd.
50Mr. Jin Yaguang born in July 1976 holds a bachelor's degree. He has served as the Director of the Office and
member of the Party Committee at Jiangsu Shuanggou Liquor Co. Ltd. Director of the Office Director of the
Party Committee Office and Minister of the Organization Department at the company Administrative Director
and Director of the Office at the Yanghe Branch of the company General Manager of the Procurement and
Logistics Center and General Manager of the Supply Chain Management Center. Currently he serves as a
supervisor of the company and General Manager of the North China Region and Beijing Branch of Sujiu Group
Trading Co. Ltd.Mr. Huang Jinhua born in September 1970 holds a secondary school education. He has served as the head of
the General Dispatching Office Director of the Equipment Department and Deputy Director of the Thermal
Power Plant at Jiangsu Yanghe Group Co. Ltd. Manager of the Xuzhou Branch and Yancheng Branch at Yanghe
Sales Company General Manager of the Yanlian Huaitong Region Tianjin-Hebei Region Hebei Region Sutong
Region and Sales Director at Sujiu Group Trading Co. Ltd. Deputy General Manager and General Manager of
Shuanggou Shandong Sales Co. Ltd. as well as General Manager of the Xuzhou Division at Jiangsu Shuanggou
Liquor Sales Co. Ltd. Currently he serves as Currently a supervisor and marketing director of the Company
Deputy General Manager and General Manager of the Xuzhou Division at Jiangsu Shuanggou Liquor Sales Co.Ltd.
(3) Executives
Mr. Zhong Yu President of the company the same resume as above.Mr. Chen Jun Vice president of the company the same resume as above.Mr. Yin Qiuming born in July 1972 college's degree auditor. He successively served as Assistant to the Director
of Audit Director of Audit Deputy Secretary of the Disciplinary Committee of Jiangsu Yanghe Group Co. Ltd.Director of the Company's Management Department Deputy General Manager of Jiangsu Yanghe Sales Co. Ltd.Deputy General Manager Party Committee Member Financial Officer of Jiangsu Yanghe Wine Co. Ltd. Minister
company supervisor deputy secretary of the Disciplinary Committee deputy general manager of the company's
Yanghe branch finished product scheduling director financial director financial director and general manager of
the financial center. He is currently the vice president and CFO of the company.Mr. Li Yuling born in December 1970 master's degree in MBA from Nanjing University intermediate economist.He successively served as the assistant to the director of the supply department the assistant to the director of
the finance department the deputy chief dispatcher of the general dispatching room the director of the supply
department the director of the company's supply department the assistant to the general manager of Yanghe
Branch the director of procurement and logistics and the director of supply chain management in Jiangsu Yanghe
Group Co. Ltd. Deputy Director and Office Director of the Procurement and Supply Logistics Center. He is currently
the vice president of the company secretary of the party committee and general manager of Jiangsu Shuanggou
Wine Co. Ltd.Mr. Fan Xiaolu born in November 1984 holds a master's degree. He has served as a director Deputy General
Manager and member of the Party Committee at Suqian Industrial Development Group Co. Ltd. a director at
Jiangsu Yanghe Group Co. Ltd. Chairman and General Manager at Jiangsu Huaihai Finance Leasing Co. Ltd. a
director at Suqian Financial Asset Management Co. Ltd. an executive director and General Manager at Suqian
Science and Technology Venture Investment Co. Ltd. General Manager at Jiangsu Shuanggou Liquor Sales Co. Ltd.
51and Assistant to the President of the company. Currently he serves as Vice President of the company General
Manager of Jiangsu Shuanggou Liquor Co. Ltd. Executive Director and Party Branch Secretary of Jiangsu
Shuanggou Liquor Sales Co. Ltd.Mr. Chen Taisong born in January 1968 master’s degree. He has successively served as a member and secretary
of the Legislative Bureau of Siyang County Government Secretary of the Office of the Siyang County Government
Office Deputy Section Chief Section Chief Director Assistant Deputy Director Siyang County Chief of Chuancheng
Town Secretary of the Party Committee Jiangsu Sujiu Industrial Co. Ltd. Deputy Secretary Secretary of the
Discipline Inspection Commission Chairman of the Supervisory Board Deputy Secretary of the Discipline
Inspection Commission Standing Committee of the Party Committee and Organization Minister of the company
Deputy Secretary of the Party Committee of Sujiu Group Trading Co. Ltd. Secretary of the Discipline Inspection
Commission and Chairman of the Supervisory Board. He is currently a member of the Standing Committee of the
Party Committee Supervisor Chairman of Guijiu Co. Ltd.Mr. Zhang Xueqian born in November 1969 holds a bachelor's degree. He has served as the Deputy Director of
the Sales Department at Jiangsu Yanghe Group Co. Ltd. Deputy Director of the Product Department at Jiangsu
Yanghe Liquor Co. Ltd. Marketing Department Director Product Department Manager Manager of Strategic
Research Department and Vice President of the company at Jiangsu Yanghe Sales Co. Ltd. He also held positions
such as Party Committee Member and Vice President at Sujiu Group Trading Co. Ltd. General Manager of
Jiangsu Shuanggou Liquor Sales Co. Ltd. and Assistant to the President. Currently he serves as Vice President
and Chief Product Officer of the company Vice President of Sujiu Group Trading Co. Ltd. and Chairman of Tibet
Earth Third Pole Liquor Co. Ltd.Ms. Song Zhimin born in October 1975 holds a master's degree. She has worked as a Regional Manager in the
Sales Department Deputy Office Director and Marketing Department Director at Jiangsu Yanghe Group Co. Ltd.She also served as the Head of the Management Department Assistant General Manager at Jiangsu Yanghe
Liquor Co. Ltd. Deputy General Manager of the Yanghe Branch of the company Party Committee Member
Assistant to the President Director of Management Director of Strategic Research and General Manager of
Management Center and Strategic Research Center. Currently she is Vice President and Director of Management
of the company and General Manager of the Yanghe Branch.Ms. Lu Hongzhen born in October 1978 holds a bachelor's degree is a member of the China Democratic League
and has obtained the Board Secretary Qualification Certificate issued by the Shenzhen Stock Exchange. She has
served as the Secretary of the Office Deputy Minister of the Comprehensive Department Deputy Director of the
Office Director of the Securities Department Securities Affairs Representative and General Manager of the
Human Resources Center at Yanghe Co. Ltd. Currently she is the Secretary of the Board of Directors and Deputy
Director of Human Resources of the company.Positions in shareholder corporations
?Applicable □N/A
Whether to
receive
Name of Position held in the Term start Term end remuneration
Shareholder name
employee shareholder company date date allowance in
the shareholder
company
52Jiangsu Yanghe January 18
Yang Weiguo Chairman NO
Group Co. Ltd 2022
Shanghai HAIYAN
Logistics
Xu Jun Vice General Manager July 30 2024 YES
Development
Co.Ltd.Shanghai Jieqiang
Party Committee
Tobacco Sugar October 12
Ma Wenxiang Secretary and General YES
and Alcohol 2024
Manager
(Group) Co. Ltd.Shanghai Haiyan
Logistics March 09
Ma Wenxiang Director NO
Development Co. 2022
Ltd.Employments in other corporations
?Applicable □N/A
Whether to
receive
Name of Other corporation Positions held in Term end remuneration
Term start date
employee name other companies date allowances in
other
companies
Suqian Industry Secretary of the
Yang Weiguo Development Party Committee January 182022 YES
Group Co. Ltd. Chairman
Jiangsu
Yang Weiguo Shuanggou Group Chairman January 182022 NO
Co. Ltd.Shanghai Tobacco
Group Huangpu
Xu Jun Director January 182023 NO
Tobacco Sugar &
Wine Co.Shanghai Tobacco
Group Xuhui
Xu Jun Director January 182023 NO
Tobacco Sugar &
Wine Co.Shanghai Tobacco
Group Minhang
Xu Jun Director January 182023 NO
Tobacco Sugar &
Wine Co.Shanghai Tobacco
Group Fengxian
Xu Jun Director January 182023 NO
Tobacco Sugar &
Wine Co.Vice Dean and
Jiangnan Professor of
Nie Yao June 10 2020 YES
University Bioengineering
Students
Professor of
Nanjing Audit
Lu Guoping Guofu Zhongxin March 02 2020 YES
University
College
Changzhou
February
Lu Guoping Langbo Sealing Director February 22 2022 YES
282025
Technology Co.
53Ltd.
Baosheng
Technology Independent
Lu Guoping May 9 2019 YES
Innovation Co. Director
Ltd.Changzhou
Academy of
Independent January
Lu Guoping Architecture and July 6 2020 YES
Director 05 2024
Technology Co.Ltd.Suzhou Lianxun
Independent December 17
Lu Guoping Instrument Co. YES
Director 2022
Ltd.Full-time lawyer
Beijing Hylands senior partner
Mao Lingxiao (Nanjing) Law chairman of the January 1 2021 YES
Firm partnership
meeting
Nanjing Haichen
Independent
Mao Lingxiao Pharmaceutical May 15 2023 YES
Director
Co. Ltd.Deputy Director
of the Research
Chinese Academy
Hong Jinming Center for May 31 2018 YES
of Fiscal Sciences
Finance and
Accounting
Quzhou Wuzhou
Independent April 29
Hong Jinming Special Paper Co. July 01 2021 YES
Director 2024
Ltd.Hunan Aibulu
Environmental
Independent September 30
Hong Jinming Protection YES
Director 2023
Technology Co.Ltd.Beijing Guoyao
New World
Independent
Hong Jinming Information October 102021 YES
Director
Technology Co.Ltd.Penalties imposed by securities regulators on current and outgoing directors supervisors and senior managers of
the company in the past three years
□Applicable ?N/A
3. Remuneration of directors supervisors and senior managers
Decision-making procedures basis for determination and actual payment of remuneration for directors
supervisors and senior managersDecision procedure: The remuneration shall be implemented based on the cases “Adjusting the Allowance ofIndependent Directors” approved by the Company's 2020 Annual General Meeting of Shareholders and
“Compensation and Assessment Management Measures for Members of Management Team” approved by the
Company's 2021 Annual General Meeting of Shareholders.
54Determination basis: According to the company's current business situation reference to the regional economic
level industry and market level.Actual payment: Paid on time according to the corporate's performance and compensation institutions.Remuneration of directors supervisors and senior managers during the reporting period
Unit: CNY10 000
Whether to
Total pre-tax obtain
compensatio remuneratio
Name Gender Age Position Employed or not n received n from
from the related
company parties of the
company
Zhang
Male 57 Chairman Incumbent 157.59 NO
Liandong
Vice
Zhong Yu Male 61 Chairman Incumbent 157.77 NO
President
Board
Yang Weiguo Male 51 Incumbent 0 YES
Director
Board
Xu Jun Male 49 Incumbent 0 YES
Director
Board
Director
Chen Jun Male 49 Incumbent 121.43 NO
Vice
President
Board
Zheng Bujun Male 58 Incumbent 125.55 NO
Director
Board
Dai Jianbing Male 54 Incumbent 102.57 NO
Director
Independe
Nie Yao Male 48 Incumbent 10 NO
nt Director
Independe
Lu Guoping Male 65 Incumbent 10 NO
nt Director
Independe
Mao Lingxiao Male 61 Incumbent 10 NO
nt Director
Independe
Hong Jinming Male 44 Incumbent 7.5 NO
nt Director
Chairman
of the
Lin Qing Female 50 Incumbent 125.36 NO
Supervisory
Committee
Ma Wenxiang Male 48 Supervisor Incumbent 0 YES
Qin Yaguang Male 49 Supervisor Incumbent 112.94 NO
Huang Jinhua Male 55 Supervisor Incumbent 112.71 NO
Vice
Yin Qiuming Male 53 President Incumbent 125.47 NO
CFO
Vice
Li Yuling Male 55 Incumbent 129.18 NO
President
Vice
Fan Xiaolu Male 41 Incumbent 121.44 NO
President
55Vice
Chen Taisong Male 57 Incumbent 129.28 NO
President
Vice
Zhang Xueqian Male 56 Incumbent 121.42 NO
President
Vice
Song Zhimin Female 50 Incumbent 125.4 NO
President
Secretary
Lu Hongzhen Female 47 of the Incumbent 85.28 NO
Board
Board
Wang Kai Male 48 Leaving office 0 YES
Director
Independe
Zhao Shuming Male 73 Leaving office 2.5 NO
nt Director
Chairman
of the
Chen Taiqing Male 60 Leaving office 32.41 NO
Supervisory
Committee
Xu Youheng Male 48 Supervisor Leaving office 0 YES
Xu Lili Female 46 Supervisor Leaving office 0 YES
Chen Fuya Male 60 Supervisor Leaving office 31.48 NO
Total -- -- -- -- 1957.28 --
VI. Directors' performance of duties during the reporting period
1. The Board of Directors during the Reporting Period
Session Open Date Disclose Date Resolution
For details please refer
to the "Announcement of
the Twentieth Session of
the Seventh Board of
The Twentieth Session of
Directors" disclosed by
the Seventh Board of February 052024 February 06 2024
the company in the
Directors
statutory information
disclosure media
(Announcement No.
2024-001).
For details please refer
The Twenty-first Session to the "Announcement of
of the Seventh Board of March 15 2024 March 162024 the Twenty-first Session
Directors of the Seventh Board of
Directors" disclosed by
56the company in the
statutory information
disclosure media
(Announcement No.
2024-004).
For details please refer
to the "Announcement of
the First Session of the
eighth Board of
The First Session of the Directors" disclosed by
April 022024 April 032024
eighth Board of Directors the company in the
statutory information
disclosure media
(Announcement No.
2024-011).
For details please refer
to the "Announcement of
the Second Session of the
eighth Board of
The Second Session of
Directors" disclosed by
the eighth Board of April 252024 April 272024
the company in the
Directors
statutory information
disclosure media
(Announcement No.
2024-013).
For details please refer
to the "Announcement of
the Third Session of the
eighth Board of
The Third Session of the Directors" disclosed by
May 152024 May 162024
eighth Board of Directors the company in the
statutory information
disclosure media
(Announcement No.
2024-024).
For details please refer
to the "Announcement of
the Fourth Session of the
eighth Board of
The Fourth Session of the Directors" disclosed by
August 092024 August 102024
eighth Board of Directors the company in the
statutory information
disclosure media
(Announcement No.
2024-030).
For details please refer
to the "Announcement of
the Fifth Session of the
eighth Board of
The Fifth Session of the Directors" disclosed by
August 282024 August 302024
eighth Board of Directors the company in the
statutory information
disclosure media
(Announcement No.
2024-033).
The Sixth Session of the For details please refer
October 292024 October 312024
eighth Board of Directors to the "Announcement of
57the Sixth Session of the
eighth Board of
Directors" disclosed by
the company in the
statutory information
disclosure media
(Announcement No.
2024-038).
For details please refer
to the "Announcement of
the Seventh Session of
the eighth Board of
The Seventh Session of
Directors" disclosed by
the eighth Board of December 302024 December 312024
the company in the
Directors
statutory information
disclosure media
(Announcement No.
2024-039).
2. Attendance of Directors at Board of Directors and General Meetings of Shareholders
Attendance of Directors at Board of Directors and General Meetings of Shareholders
The
number of Whether
Number of
times they Number of Amounts not Amounts
board
should Number of proxy of attended of
meetings
Name of attend the on-site attendance absences two attendance
by means
Directors board of board at the from the consecutiv at
of
directors attendance board of Board of e board shareholde
communic
during the directors Directors meetings r meetings
ation
reporting in person
period
Zhang
9 7 2 0 0 NO 2
Liandong
Zhong Yu 9 8 1 0 0 NO 2
Yang
9 4 5 0 0 NO 2
Weiguo
Chen Jun 7 4 3 0 0 NO 2
Zhen Bujun 7 2 5 0 0 NO 2
Dai
7 3 4 0 0 NO 2
Jianbing
Nie Yao 9 2 7 0 0 NO 2
Lu Guoping 9 4 5 0 0 NO 2
Mao
9 4 5 0 0 NO 2
Lingxiao
Hong
7 2 5 0 0 NO 1
Jinming
Wang Kai 5 3 2 0 0 NO 2
Zhao
2 0 2 0 0 NO 0
Shuming
Explanation of two consecutive absences from attending the board of directors in person
N/A
583. Circumstances where directors raise objections to company-related matters
Were there any objections on related issues of the Company from directors
□Yes ?No
During the reporting period there is no objections on related issues of the Company from directors.
4. Other instructions for directors to perform their duties
Were there any suggestions from directors accepted by the Company
?Yes □No
The statement on whether the director's recommendation to the company's proposal has been adopted or notDuring the reporting period the directors of the Company in accordance with the relevant requirements of “theCompany Law” “the Securities Law” “the Articles of Association” and other laws regulations and rules carried
out various work diligently and responsibly provided reasonable opinions and suggestions for the company's
business decisions and effectively safeguarded the interests of the company and all shareholders.VII. The special committees under the board of directors during the reporting period
Specific
Number Important Other
circumstan
Committee of Opening Content of comments perform
Members ces of the
name meeting date meeting and ance of
objection
s held suggestions duties
(if any)
Zhang
Liandong "2023 Annual
Zhong Yu Business
Strategy Yang April Operation
Committee Weiguo 222024 Report" "2024
Chen Jun Annual Business
Lu Plan"
Guoping
Nie Yao
"Proposal for
Zhang
Nomination March the Re-election
Liandong 1
Committee 132024 of the Board of
Mao
Directors"
Lingxiao
"Proposal on the
Appointment of
Nie Yao
Senior
Zhang
Nomination March Management
Liandong 1
Committee 282024 Personnel of the
Mao
Company"
Lingxiao
"Proposal on the
Appointment of
59the Head of the
Internal Audit
Department of
the Company"
"Proposal on the
Appointment of
the Securities
Affairs
Representative
of the Company"
"Proposal on the
Nomination of
Mr. Xu Jun as a
Non-
Nie Yao
independent
Zhang
Nomination October Director
Liandong 1
Committee 242024 Candidate for
Mao
the Eighth
Lingxiao
Session of the
Board of
Directors of the
Company"
"Performance
and
Hong
Remunerati Compensation
Jinming
on and April Implementation
Nie Yao Lu 1
Appraisal 232024 of the
Guoping
Committee Company's
Management
Team in 2023"
"The 2023
The report
Annual Financial
recommend
Statements
s leveraging
Lu Audit Work
big data
Audit Guoping February Plan"
1 technologies
Committee Mao 03 2024 "Summary of
to further
Lingxiao the 2023 Annual
enhance
Internal Audit
audit
Work and the
efficiency.
2024 Work Plan"“Resolution onthe
Appointment of
Lu
the Head of
Audit Guoping March 26
1 Finance and the
Committee Mao 2024
Head of the
Lingxiao
Internal Audit
Organization ofthe Company”
Lu "2023 Annual
Guoping Internal Control
Audit April 23
Mao 1 Self-Evaluation
Committee 2024
Lingxiao Report"
Hong "Proposal on
60Jinming Confirming
Routine Related
Party
Transactions for
2023 and
Anticipated
Routine Related
Party
Transactions for
2024"
"First Quarter
2024 Internal
Audit Work
Report" "Draft
Audit Report for
the Year 2023"
"2023 Annual
Financial
Settlement
Report" "First
Quarter 2024
Financial
Accounting
Statements"
"Status of 2023
Annual Financial
Statements
Audit Work"
"Assessment
Report on the
Performance of
the Accounting
Firm in 2023"
"Report of the
Board Audit
Committee on
the Supervision
of the
Accounting
Firm’s
Performance in
2023" "Proposal
on the Change
of Accounting
Firm"
The report
Reviewed the
recommend
Lu "First Half of
s that
Guoping 2024 Internal
internal
Audit Mao August 26 Audit Work
1 audit
Committee Lingxiao 2024 Report"
personnel
Hong "2024 Interim
participate
Jinming Financial
in various
Statements"
business
61training
programs to
continuously
improve
their overall
competence
and
professional
capabilities.Reviewed the
"Third Quarter
Lu
2024 Internal
Guoping
Audit Work
Audit Mao October
1 Report"
Committee Lingxiao 25 2024
"2024 Third
Hong
Quarter
Jinming
Financial
Statements"
VIII. Performance of Duties by the Supervisory Committee
Were there any risks to the Company identified by Board of Supervisors when performing its duties during the
reporting period
□Yes ?No
The Supervisory Committee has no objection to the supervision matters during the reporting period.IX. Staff in the Company
1. Statistics of Employees Professional Structure of the Staff and Educational Background
Number of on-the-job employees of the parent
11341
company at the end of the reporting period (person)
Number of on-the-job employees of major
subsidiaries at the end of the reporting period 10191
(person)
Total number of on-the-job employees at the end of
21532
the reporting period (person)
The total number of employees receiving salary in the
21532
current period (person)
Number of retired employees (persons) that the
0
parent company and major subsidiaries need to pay
Professional Composition
Professional Composition Category Professional composition number (person)
Production staff 10278
Sales staff 6626
Technical staff 2009
Financial staff 227
Administration staff 2392
Total 21532
Education Level
Educational level category Quantity (person)
62Master 494
Bachelor 5048
College 4922
Senior High School and below 11068
Total 21532
2. Salary Policy
The salary of the company's employees is composed of basic salary performance salary and profit increment
sharing award. All departments of the company implement a post-self-organization mechanism and revised the
"Administrative Measures for Post-Self-organization" to further improve the quantity quality efficiency and
economic value of work. It has established quantifiable and assessable indicators to encourage employees to be
spontaneous improve their work efficiency and improve the company's management level in order to achieve a
win-win situation between the company and its employees.
3. Training Program
The company adheres to the incentive philosophy of "encouraging innovators urging laggards and promoting hard
workers." In 2024 the Company continued to strengthen the "Leadership Academy Marketing Academy Customer
Academy and Craftsman Academy" with the aim of broadening the vision of senior management enhancing the
execution capability of middle management and improving the skills of frontline staff thereby deepening the
development of the leadership team. Guided by the overarching principle of "putting the market at the center
empowering marketing with full strength and contributing to overall development" the Company actively
promoted the cultivation of market-oriented talent. Through the approach of "establishing mechanisms focusing
on training building platforms and promoting growth" targeted support was provided to empower distributors.With the goal of developing a knowledgeable skilled and innovative workforce the Company continuously
optimized the structure and competence levels of technical personnel. Throughout the year a total of 144600
employees participated in training sessions further reinforcing the Company's talent development efforts.
4. Outsourcing of labor service
□Applicable ?N/A
X. Profit Distribution and Capitalization of Capital Reserves
Profit distribution policy in the reporting period especially the formulation implementation and adjustment
of cash dividend policy
?Applicable □N/A
On June 7 2024 the Company held the 2023 Annual General Meeting of Shareholders and reviewed and approved
the Company’s 2023 equity distribution plan. The specific plan is: based on the existing total share capital of
1506445074 shares the Company will distribute a cash dividend of CNY 46.60 (tax included) per 10 shares to all
shareholders using undistributed profits; no bonus shares will be issued and there will be no conversion of capital
reserves into share capital.
63The Company implements the 2023 annual equity distribution with June 25 2024 as the equity registration date
and June 26 2024 as the ex-rights and ex-dividend date. Based on the current total share capital of 1506445074
shares a cash dividend of CNY 46.60 (tax included) will be distributed for every 10 shares to all shareholders with
a total cash dividend distribution of CNY 7020034044.84 (tax included).Special explanation of cash dividend policy
Whether it complies with the provisions of the
company's articles of association or the requirements YES
of the resolution of the shareholders' meeting
Whether the dividend standard and ratio are explicit
YES
and clear
Whether the relevant decision-making procedures
YES
and mechanisms are complete
Whether the independent directors performed their
YES
duties and played their roles
If the company has not conducted cash dividends it
should disclose the specific reasons for this decision
N/A
and outline the next steps it plans to take to enhance
investor returns.Whether minority shareholders have the opportunity
to fully express their opinions and demands and
YES
whether their legitimate rights and interests are fully
protected
If the cash dividend policy is adjusted or changed
The company's cash dividend policy does not adjust
whether the conditions and procedures are compliant
or change
and transparent
The company was profitable during the reporting period and the parent company's profit available for
distribution to shareholders was positive but no cash dividend distribution plan was proposed
□Applicable ?N/A
Profit distribution and conversion of capital reserve into paid-in capital during the reporting period
?Applicable □N/A
Number of bonus shares for every 10 shares (shares) 0
Dividends per 10 shares (CNY) (tax included) 23.17
Base of shares (shares) of the distribution plan 1506445074
Amount of cash dividends (CNY) (tax included) 3490433236.45
Amount of cash dividends in other ways (such as
0.00
share repurchase) (CNY)
Total cash dividends (including other methods) (CNY) 3490433236.45
Distributable profit (CNY) 31867283870.96
Proportion of total cash dividends (including other
100%
methods) to total profit distribution
Cash dividend situation
If the company's development stage is mature and there is no major capital expenditure arrangement when
making profit distribution the proportion of cash dividends in this profit distribution should be at least 80%.Detailed description of profit distribution or capital reserve conversion plan
As audited by Zhongxi Certified Public Accountants (Special General Partnership) the parent company realized
a net profit of CNY 7362925869.22 in 2024. The statutory surplus reserve for the year was CNY 0.00. Adding
the undistributed profit at the beginning of the year of CNY 31524392046.58 and deducting the 2023 profit
distribution of CNY 7020034044.84 the undistributed profit available for distribution to shareholders at the
64end of the year amounted to CNY 31867283870.96.In line with the principle of ensuring the long-term
development of the Company while providing reasonable returns to shareholders the Company plans to
implement the 2024 profit distribution.The 2024 profit distribution plan is as follows: based on the existing total share capital of 1506445074
shares the Company proposes to distribute a cash dividend of CNY 23.17 (tax included) per 10 shares to all
shareholders amounting to a total cash dividend of CNY 3490433236.45 (tax included) without bonus
shares or capitalization. In the event of any changes in the total share capital before the equity registration
date for the implementation of the equity distribution the distribution ratio will be adjusted in accordance
with the principle of maintaining the total distribution amount unchanged.XI. Implementation of company equity incentive plans employee stock ownership plans or
other employee incentives
?Applicable □N/A
1. Equity incentive
N/A
Equity incentives obtained by the directors and senior management of the company
□Applicable ?N/A
Evaluation mechanism and incentives for senior managers
The company continues to establish and improve the assessment and traction mechanism based on business
performance and the compensation and incentive mechanism for management team members oriented by value
contribution that are compatible with the market economy system and modern enterprise system. The 2021Annual General Meeting of shareholders of the Company reviewed and approved the “Management Measures forCompensation and Assessment of Management Team Member” which stipulates that the annual remuneration
of the members of the management team of the Company consists of basic annual salary performance-based
annual salary tenure incentive and other income the basic annual salary is paid monthly the performance-based
annual salary is implemented according to the annual performance appraisal results and the tenure incentive is
linked to the operating performance appraisal during the term of office.
2. Implementation of employee stock ownership plans
?Applicable □N/A
All valid employee stock ownership plans during the reporting period
Proportion to Funding sources
Range of Number of Total shares the total share for the
Changes
employees employees held capital of listed implementation
companies plan
Company’s Participants’
directors 4738 6379081 N/A 0.42% legal
(excluding remuneration
65independent self-financing
directors) and other
supervisors methods
senior permitted by
management laws and
personnel and regulations
middle-level
and above
personnel and
core backbones
who are
determined by
the board of
directors of the
company and
wholly-owned
subsidiaries to
play an
important role
in the
company's
overall
performance
and medium
and long-term
development
Shareholdings of Directors Supervisors and Senior Management in the Employee Stock Ownership Plan during
the Reporting Period
Number of shares Number of shares
Proportion to the
held at the held at the end of
Name Title total share capital
beginning of the the reporting
of listed companies
reporting period period
Zhang Liandong Chairman 96404 67443 0.00%
Deputy chairman
Zhong Yu 96404 67443 0.00%
President
Zheng Bujun Director 48202 33721 0.00%
Dai Jianbing Director 28921 20233 0.00%
Chairman of the
Lin Qing 48202 33721 0.00%
Supervisory Board
Jin Yaguang supervisor 19281 13489 0.00%
Huang Jinhua supervisor 19281 13489 0.00%
Vice president
Yin Qiuming 48202 33721 0.00%
CFO
Li Yuling Vice president 48202 33721 0.00%
Chen Taisong Vice president 48202 33721 0.00%
Zhang Xueqian Vice president 28921 20233 0.00%
Song Zhimin Vice president 28921 20233 0.00%
Secretary of the
Lu Hongzhen 19281 13489 0.00%
Board
Chairman of the
Supervisory
Chen taiqing 48202 33721 0.00%
Board(Term
expires)
Chen Fuya supervisor(Term 48202 33721 0.00%
66expires)
Changes in asset management institutions during the reporting period
□Applicable ?N/A
Changes in equity due to disposal of shares by holders during the reporting period
?Applicable □N/A
During the reporting period the Company's First Phase Core Employee Shareholding Plan reduced its holdings
of the Company’s shares by 2739303 shares through centralized bidding and block trading. As of December
31 2024 the First Phase Core Employee Shareholding Plan held 6379081 shares of the Company accounting
for 0.42% of the Company’s total share capital.The exercise of shareholders' rights during the reporting period
N/A
Other relevant situations and explanations of the employee stock ownership plan during the reporting period
□Applicable ?N/A
Members of Employee Stock Ownership Plan Management Committee Change
□Applicable ?N/A
The financial impact of the employee stock ownership plan on the listed company during the reporting period
and related accounting treatment
□Applicable ?N/A
Termination of employee stock ownership plans during the reporting period
□Applicable ?N/A
Other instructions: As approved at the fourth meeting of the Eighth Session of the Board of Directors the
Company agreed to extend the duration of the First Phase Core Employee Shareholding Plan to September 10
2025.
3. Other employee incentives
□Applicable ?N/A
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
(1)Internal control system construction
a) Optimize the internal control environment of the enterprise.i. Standardize the establishment of the organizational structure. According to the relevant laws and regulations of
China clarify the responsibilities authority conditions rules of procedure and work procedures of the board of
directors board of supervisors and managers to ensure that decision-making execution and supervision are
separated from each other and form checks and balances. Clarify the internal division of labor of the board of
directors and set up special committees including audit committee remuneration and appraisal committee
strategy committee nomination committee.ii. Improve human resources policies. * Enhance the employee development mechanism. Candidates must
undergo a rigorous assessment process before being hired. The Company has established a comprehensive system
67covering employee training compensation performance evaluation and promotion. For employees in different
positions the Company provides pathways to improve their overall competence aiming to cultivate high-quality
talent.* Establish and improve the incentive mechanism. On the basis of ensuring fairness and relative stability in
incentives and constraints the Company implements shareholding plans and spontaneous incentive mechanisms
to stimulate employees’ initiative fully tap their potential and safeguard corporate interests.iii. Foster a healthy corporate culture. With a culture of aspiration at its core the Company adheres to the
development philosophy of "being a leader in the industry and serving the country the people and the local
community." It remains committed to a positive cultural direction continuously gathering momentum and
integrating strong cultural energy into all aspects of production operations and management. This helps inspire
the enthusiasm initiative and creativity of all employees using cultural soft power to drive corporate
development.b) Establish a risk assessment firewall. To effectively control various business risks the Company identifies potential
risks in areas such as production safety food safety behavioral safety financial safety and environmental safety.Full-process risk control measures have been established across key business segments. The Company has also
formulated corresponding risk control systems including the Risk and Opportunity Management Measures the
Risk Management Accountability System the Hazard Identification and Risk Assessment Management Measures
and the Environmental Factor Identification Evaluation and Update Management Measures. It regularly inspects
and evaluates the effectiveness and appropriateness of internal control design and operation promptly identifying
institutional barriers that hinder deepened reform and risk prevention. These efforts promote the establishment
of a sound system for risk prevention early warning response and accountability further reinforcing the crucial
role of both "curing existing issues" and "preventing potential risks."
c) Implement effective internal control activities. Based on the level of risk assessment the Company carries out
internal control activities such as division of responsibilities control authorization control review and approval
control budget control and performance evaluation control. Tailored management systems standardized
operating procedures and key control points are developed according to the specific characteristics of each
business. Corresponding task assignments responsibilities and authority are defined along with clear operating
procedures handling protocols disciplinary rules and inspection standards. This ensures a coordinated balance
between duties responsibilities authority and benefits with subordinates subject to supervision by superiors
and superiors constrained by subordinates. These measures effectively safeguard the interests of the enterprise
and ensure the stable and orderly advancement of various operations.d) Improve the information and communication mechanism. The company establishes the technical platform of
the information system establishes a sensitive information collection and feedback system realizes the upward
parallel or downward flow and communication of various information within the enterprise and implements the
whole process of the entire internal control information from production release to feedback modern
management.e) The Board of Directors of the Company has established an Audit Committee which is responsible for regularly
reviewing the audit work plan supervising the completion of the annual audit and examining the Company’s
internal control system and financial statements. The internal audit department reports the annual audit work to
both the Party Committee and the Board of Directors.The Company adheres to comprehensive audit coverage
focusing on key areas of its operations. Audits are conducted across all subsidiaries and functional departments
68targeting critical areas key departments and sensitive positions. The Company strengthens supervision over major
funds key projects significant assets and the economic responsibilities of personnel in important positions.The
Company also reinforces the coordination between disciplinary inspection and audit functions ensuring the
sharing of critical information and joint review of significant matters. This enables internal audit to fully play its
supervisory role in standardizing management preventing risks and improving corporate governance. It enhances
checks and balances contributes to the development of an anti-corruption and prevention system and promotes
the efficient and orderly operation of the enterprise.
(2)Internal control system implementation
The Company has established a comprehensive internal control system covering areas such as financial
management human resources management risk management and information technology management.Business operations are conducted in accordance with standardized systems and procedures. The Audit Committee
of the Board of Directors conducts comprehensive reviews and supervision of financial reporting the effectiveness
of internal controls and the rationality and effectiveness of corporate governance. The Company performs annual
self-assessments of internal controls. In response to internal and external developments and business needs
relevant internal control systems are continuously optimized. In 2024 the Company updated 63 internal control
policies abolished 1 and introduced 8 new ones. The Company's management departments conduct regular
inspections to ensure long-term compliance with internal policies and internal audit conducts routine oversight
achieving full audit coverage across all subsidiaries and functional departments.
2. Details of major deficiencies in internal control discovered during the reporting period
□Yes ?No
XIII. The company's management and control of subsidiaries during the reporting period
Name of the Combination Combination Resolve Follow-up
Issues Solutions
subsidiaries plan progress progress resolution plan
N/A N/A N/A N/A N/A N/A N/A
XIV. Internal control self-assessment report or internal control audit report
1. Self-evaluation Report on Internal Control
Date of disclosure of the full text
of the internal control evaluation April 29 2025
report
Disclosure Index of the Full Text of
The full text of the "Internal Control Self-Assessment Report for 2024"
the Internal Control Evaluation
will be disclosed on http://www.cninfo.com.cn on April 29 2025
Report
69The ratio of the total assets of the
company included in the
evaluation scope to the total 99.62%
assets of the company's
consolidated financial statements
The ratio of the operating income
of the company included in the
evaluation scope to the operating 99.97%
income of the company's
consolidated financial statements
Defect identification standard
Type Financial report Non-financial report
(1) Signs of major deficiencies in
financial reports include: i.Fraudulent conduct by the
(1) Signs of major deficiencies in
company’s directors supervisors
non-financial reports include:
or senior executives;
i. lack of democratic decision-
ii. Significant misstatements in the
making procedures unscientific
current financial statements were
decision-making procedures
found but the management failed
major mistakes which resulting in
to detect them during the
major property losses to the
operation of internal control;
company;
iii. As a result of internal control
ii. Serious violation of national
evaluation major deficiencies have
laws and regulations;
not been rectified;
iii.Lack of important business
iv. The audit committee and
management system or systemic
internal audit institution's
failure of system operation;
supervision of internal control is
iv. The company's major or
invalid.important internal control
(2) Signs of significant deficiencies
deficiencies cannot be rectified in
in financial reporting include:
a timely manner; v. The company
i. Failure to select and apply
Qualitative Criteria continues or has a large number of
accounting policies in accordance
important internal control
with generally accepted
deficiencies .accounting principles;
(2) Signs of significant deficiencies
ii. Failure to establish anti-fraud
in non- financial reporting include:
procedures and control measures;
i. The business behavior violates
iii. Failure to establish
relevant national laws;
corresponding accounting
ii. Inadequate decision-making
treatment for non-routine or
process leads to important errors
special transactions
and large losses;
iv. There are one or more
iii. Serious loss of business
deficiencies in the control over the
personnel in key positions; iv.period-end financial reporting
Deficiencies in important business
process and there is no reasonable
systems or systems.assurance that the prepared
(3) General deficiencies refer to
financial statements will achieve
control deficiencies other than the
the true and accurate objectives.above major deficiencies and
(3) General defects refer to other
significant deficiencies.control defects other than the
above-mentioned major defects
and important defects.Major defects: Misstatement > 3% Major defect: loss accounts for ≥
of total operating income; 1% of total assets.Quantitative standard Misstatement > 5% of total profit; Important defects: 0.5%≤losses
Misstatement > 2% of total assets. account for less than 1% of total
Important defects: 1% of total assets.
70operating income < misstatement General defects: The proportion of
≤ 3% of total operating income; loss to total assets is less than
3% of total profit < misstatement 0.5%.
≤ 5% of total profit; 1% of total
assets < misstatement ≤ 2% of
total assets.General defects: misstatement ≤
1% of total operating income;
misstatement ≤ 3% of total profit;
misstatement ≤ 1% of total
assets.Number of major deficiencies in
0
financial reports (pieces)
Number of major deficiencies in
0
non-financial reports (pieces)
Number of material deficiencies in
0
financial reports (pieces)
Number of material deficiencies in
0
non-financial reports (pieces)
2. Internal Control Audit Report
?Applicable □N/A
Deliberation Opinion Paragraph in Internal Control Audit Report
We believe that on December 31 2024 Yanghe Co. Ltd. maintained effective internal control over financial
reporting in all material aspects in accordance with the “Basic Norms for Corporate Internal Control” and
relevant regulations.Disclosure Situation of
Disclosed
Internal Control Audit Report
Disclosure date of the full text
of the internal control audit April 29 2025
report
Full text disclosure index of
The full text will be disclosed on http://www.cninfo.com.cn on April 29 2025
internal control audit report
Types of opinions on internal
Standard unqualified opinion
control audit reports
Whether there are material
deficiencies in non-financial No
reporting
Whether the accounting firm issued an internal control audit report with a non-standard opinion
□Yes ?No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation
report of the board of directors
?Yes □No
XV. Special Rectification Actions for Self-inspected Problems of Listed Companies
Completed.
71Section V Environmental and Social Responsibility
I. Significant environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge companies announced by
the environmental protection department
?Yes □No
Environmental protection related policies and industry standards
The company strictly complies with environmental protection related laws and regulations and industry standards.Relevant laws and regulations: “Environmental Protection Law of the People's Republic of China” “Law of thePeople's Republic of China on Water Pollution Prevention and Control” “Law of the People's Republic of China onthe Prevention and Control of Environmental Pollution by Solid Waste” “Law of the People's Republic of China onPrevention and Control of Air Pollution” “Law of the People's Republic of China on the Prevention of NoisePollution””Law of the People's Republic of China on Prevention and Control of Soil Pollution” “Regulations ondischarge permit Administration” “Regulations on the Prevention and Control of Environmental Pollution byIndustrial Solid Wastes in Suqian City” etc; Relevant industry standards: “Discharge standard for water pollutantsof fermented alcohol and liquor industry” （GB27631-2011） and its amendment list “Discharge standard of airpollutants from boilers” （DB32/ 4385—2022) “Comprehensive Emission Standards for Air Pollutants”
(DB324041-2021) and “Industrial enterprise boundary environmental noise emission standard” (GB12348-2008)
and so on.Environmental protection administrative permit
The company and its subsidiaries have complete materials such as environmental impact reports and pollutant
discharge permits for construction projects. Among them:
Jiangsu Yanghe Distillery Co. Ltd.：On October 31 2024 the Company applied to Suqian Bureau of Ecological
Environment for the “Pollutant Discharge Permit of Yanghe Branch of Yanghe Stock Co. LTD.” valid from October
31 2024 to October 30 2029.
Jiangsu Shuanggou Wine Co. Ltd.：The Company has obtained “Jiangsu Provincial Pollutant Discharge License”
issued by Suqian Municipal Bureau of Ecological Environment on August 12 2021 valid from August 12 2021 to
August 11 2026.Jiangsu Yanghe Distillery Co. Ltd. Siyang Branch：On November 28 2024 the Company obtained the “PollutantDischarge License of Siyang Branch of Yanghe Corporation” issued by Suqian Municipal Bureau of Ecological
Environment. The license is valid from November 28 2024 to November 27 2029.Guizhou Guijiu Group Co. Ltd.：The company applied for the renewal of the pollutant discharge permit in
November 30 2022 which has been approved by Guiyang Bureau of Ecological Environment and is valid from
October 18 2022 to October 17 2027.Industrial discharge standards and details of the discharge of pollutants involved in production and business
activities
Compa Types Names Emission Num Distrib Emissio Implem Total Total Exces
ny of of method ber ution n ented emissio approved sive
72name major major of of concen polluta ns emissions emis
or polluta polluta vent dischar tration nt sions
subsidi nts and nts and s ge dischar
ary charact charact outlets ge
name eristic eristic standar
polluta polluta ds
nts nts
Oxygen
Deman Longitu
d de： 94.974t 1025.26t
Ammo 48mg/L ons ons/year
Jiangsu 650mg
nia 118°22′ 1.13mg 1.19to 63
Yanghe /L
Waste Nitroge Indirect 33.74″ /L ns tons/year
Distiller 1 40mg/L None
water n Total emissions Latitud 1.27mg 2.12 7.8
y Co. 5mg/L
Phosph e： /L tons tons/year
Ltd. 60mg/L
orus 20mg/L 33.29 94.6
Total 33°47′2 tons tons/year
Nitroge 6.74 ″
n
Oxygen
Deman
d Longitu 59.86 44.39 400
Jiangsu Ammo de： mg/L tons tons/year
500mg
Shuang nia 118°12′ 1.67 1.02 32
/L
gou Waste Nitroge Indirect 07″ mg/L tons tons/year
1 40mg/L None
Wine water n Total emissions Latitud 1.98 1.36 6.4
8mg/L
Co. Phosph e： mg/L tons tons/year
60mg/L
Ltd. orus 33°13′4 14.34 10.55 48
Total 5″ mg/L tons tons/year
Nitroge
n
Oxygen
Deman
d Longitu 138.8m 115.12 650
Jiangsu
Ammo de： g/L tons tons/year
Yanghe 500mg
nia 118°45′ 8.364m 6.58 104
Distiller /L
Waste Nitroge Indirect 33.08″ g/L tons tons/year
y Co. 1 80mg/L None
water n Total emissions Latitud 2.087m 1.64 15.6
Ltd. 12mg/L
Phosph e： g/L tons tons/year
Siyang 80mg/L
orus 33°42′2 15.421 13.16 104
Branch
Total 5.70″ mg/L tons tons/year
Nitroge
n
Oxygen
Deman
Longitu 46.04m 4.438 8.958
d
de： g/L tons tons/year
Guizho Ammo Straight 100mg
106°35′ 0.199m 0.019 0.898
u Guijiu nia emissions /L
Waste 43″ g/L tons tons/year
Group Nitroge after 1 10mg/L None
water Latitud 0.206m 0.020 0.0925
Co. n Total processin 1mg/L
e： g/L tons tons/year
Ltd. Phosph g 20mg/L
25°50′5 5.904m 0.569 1.85
orus
2″ g/L tons tons/year
Total
Nitroge
73n
Longitu
de：
Guizho
106°35′
u Guijiu
exhaus Nitroge Straight 43″ 23.679 200mg 2.076 6.199
Group 1 None
t gas n oxide emissions Latitud mg/m3 /m3 tons tons/year
Co.e：
Ltd.
25°50′5
2″
Treatments of pollutants
Jiangsu Yanghe Distillery Co. Ltd. Siyang Branch：The sewage treatment station in use was completed in 2012
with a total investment of CNY 96 million covering an area of 19000 square meters with a designed sewage
treatment capacity of 10000 tons per day. The sewage treatment process adopts physical treatment method +
chemical treatment method + anaerobic biological treatment method + aerobic biological treatment method in
order to reach the treatment of high-concentration wastewater of 250 tons per hour. The emission implements
the "Fermentation Alcohol and Liquor Industry Pollutant Emission Standard (GB27631-2011)" and the modified list
of indirect emission protocol standards. In 2023 two new anaerobic towers were built to improve the efficiency
of anaerobic treatment. In 2024 1.8735 million tons of wastewater were treated. COD reduction was 16967 tons
ammonia nitrogen reduction was 191 tons total nitrogen reduction was 321 tons total phosphorus reduction was
184 tons. The emission concentration of all pollutants is lower than the national emission standard. There is a
biogas boiler room equipped with 9 biogas boilers their production capacity reaches 32 tons per hour and the
biogas produced by anaerobic fermentation of sewage treatment was all used for biogas boiler combustion. The
steam output was 147300 tons in 2024. The distiller’s grains were recycled and centrally disposed of with a
utilization rate of 100% and the sludge was mainly recycled by qualified third-party units.Jiangsu Shuanggou Wine Co. Ltd.：The sewage treatment station in use was completed in 2013 with a total
investment of CNY 42.5 million covering an area of 15000 square meters with a designed sewage treatment
capacity of 5400 tons per day. Sewage treatment adopts anaerobic tower + UASB + AAO + secondary
sedimentation tank + phosphorus removal tank treatment process in accordance with the revised list of
“Fermentation Alcohol and Liquor Industrial Pollutant Discharge Standard (GB27631-2011)” and “ShuanggouTownship Wastewater Treatment Plant takeover standards”. In 2024 710700 tons of wastewater were treated.COD reduction was 6589 tons ammonia nitrogen reduction was 105.84 tons total phosphorus reduction was
59.07 tons total nitrogen reduction was 163.15 tons. The emission concentration of all pollutants is lower than
the national emission standard. There is a biogas boiler room equipped with 3 biogas boilers and the biogas
produced by anaerobic fermentation of sewage treatment was all used for biogas boiler combustion. The steam
produced by the biogas boiler was used for brewing production and the steam output was 33800 tons in 2024.The sludge and vinasse are mainly recycled by qualified third-party units.Jiangsu Yanghe Distillery Co. Ltd. Siyang Branch：The sewage treatment station in use was completed in 2015
with a total investment of CNY 50 million covering an area of about 15000 square meters with a designed sewage
treatment capacity of 6000 tons per day. The sewage treatment process adopts EGSB + AAO + advanced treatment
technology and implements the indirect discharge agreement standard of the revised list of "Fermentation Alcohol
and Liquor Industry Pollutant Discharge Standard (GB27631-2011)". In 2024 850900 tons of wastewater were
treated. COD reduction was 18909 tons ammonia nitrogen reduction was 199 tons total nitrogen reduction was
74429 tons total phosphorus reduction was 177 tons. The emission concentration of all pollutants is lower than the
national emission standard. There is a biogas boiler room equipped with 6 biogas boilers and the biogas produced
by anaerobic fermentation of sewage treatment was all collected and used for biogas boiler combustion. The steam
produced by the biogas boiler was used for brewing production and the steam output was 92900 tons in 2024.The sludge and vinasse are mainly recycled by qualified third-party units.Guizhou Guijiu Group Co. Ltd.：The sewage treatment station in use was completed in 2021 with a total
investment of CNY 18.5 million covering an area of about 1980 square meters with a designed sewage treatment
capacity of 700 tons per day. The wastewater treatment process adopts pretreatment + anaerobic system + primary
biochemical system + secondary biochemical system + MBR membrane/ozone + phosphorus removal
sedimentation system and the wastewater discharge complies with the direct discharge standard in Table 2 of the
"Discharge Standard for Water Pollutants in Fermented Alcohol and Liquor Industry (GB27631-2011)". In 2024
96000 tons of wastewater were treated. COD reduction was 273.7 tons ammonia nitrogen reduction was 8.16
tons total nitrogen reduction was 14.2 tons total phosphorus reduction was 4.19 tons. The emission
concentration of all pollutants is lower than the national emission standard. The boilers used are gas-fired boilers
with natural gas as fuel and the exhaust gas is directly discharged complying with the "Emission Standard of Air
Pollutants for Boilers (GB13271-2014)" Table 2 for gas-fired boilers with standard limit emissions. The sludge is
mainly recycled by qualified third-party units.Emergency plan for environmental emergencies
The company and its subsidiaries have formulated contingency plans for environmental emergencies. The company
has filed with the Bureau of Ecological Environment of Suqian City; Shuanggou Wine has filed with the Sihong
Ecological Environment Bureau of Suqian City; the company’s Siyang Branch has filed with Siyang County Ecological
Environment Bureau; and Guijiu Company has filed with the Guiyang Environmental Emergency Response Center.The company and its branches and subsidiaries actively organize employees to train and learn the plan and
regularly carry out environmental emergency plan drills to improve the environmental protection awareness and
emergency handling ability of all staff.Environmental Self-Monitoring Program
The company and its subsidiaries have completed self-monitoring plans
Jiangsu Yanghe Distillery Co. Ltd. Siyang Branch COD ammonia nitrogen total nitrogen total phosphorus and
pH online monitoring instruments have been installed and are connected to the provincial and municipal data
monitoring platforms. The sewage treatment station is equipped with dedicated personnel for sewage testing and
analysis. Daily manual sampling and testing are conducted for COD ammonia nitrogen total nitrogen total
phosphorus and pH in the discharged wastewater with records maintained. A qualified third-party organization is
entrusted to regularly sample and test the company’s wastewater. The environmental self-monitoring program
has been filed with the Jiangsu Province self-monitoring information release platform for key monitoring
enterprises.Jiangsu Shuanggou Wine Co. Ltd. COD ammonia nitrogen total nitrogen total phosphorus and pH online
75monitoring instruments have been installed and data is connected to the provincial and municipal data monitoring
platforms. The sewage treatment station has designated staff responsible for sewage testing and analysis
conducting daily manual sampling and testing of indicators such as COD ammonia nitrogen total nitrogen total
phosphorus and pH of the discharged sewage with records maintained. Third-party qualified institutions are
entrusted to periodically sample and test the company's sewage. The environmental self-monitoring program has
been filed with the Jiangsu Province self-monitoring information release platform for key monitoring enterprises.Jiangsu Yanghe Distillery Co. Ltd. COD ammonia nitrogen total nitrogen total phosphorus and pH online
monitoring instruments have been installed and the data is connected to the provincial and municipal data
monitoring platforms. The sewage treatment station has designated staff for sewage testing and analysis
conducting daily manual sampling and testing of indicators such as COD ammonia nitrogen total nitrogen total
phosphorus and pH in the discharged sewage with records maintained. The company has entrusted a third-party
institution with sewage testing qualifications to periodically sample and test the company's sewage. The
environmental self-monitoring program has been filed with the Jiangsu Province self-monitoring information
release platform for key monitoring enterprises.Guizhou Guijiu Group Co. Ltd. COD ammonia nitrogen total nitrogen total phosphorus pH and SS online
automatic monitoring instruments have been installed and nitrogen oxide online automatic monitoring
instruments have been installed for exhaust gases with data connected to the provincial and municipal data
monitoring platforms. A third-party institution with testing qualifications has been entrusted to sample and test
the company's wastewater and exhaust gases monthly and quarterly and generate testing reports. In November
2024 the "Self-Monitoring Program" was updated and filed with the Xiuwen Branch of the Guiyang Ecological
Environment Bureau.Input in environmental governance and protection and payment of environmental protection tax
The company its branches and subsidiaries actively carry out environmental treatment and protection work. In
2024 the total investment of sewage operation and environmental management is about CNY 52.03 million and
the environmental protection tax is about CNY 0.9602 million.Measures taken to reduce carbon emissions during the reporting period and their effects
?Applicable □N/A
In 2024 the company fully implemented the "One-Two-Five-Seven" dual carbon strategy carrying out extensive
practices in areas such as comprehensive energy efficiency enhancement energy structure adjustment and digital
transformation for emission reduction achieving remarkable results.
(1)Energy Saving and Emission Reduction: The company has continuously reduced energy consumption and carbon
emissions while improving quality and efficiency through the development of an industry-leading smart energy
management platform the establishment of zero-carbon model workshops and the application of new
technologies such as workshop-level pressure regulation control. The total carbon emission reduction for the year
was 43000 tons. Green electricity consumption reached 32.85 million kWh with a consumption rate increase to
33.21% reducing carbon emissions by 18300 tons. The comprehensive energy consumption per unit of brewing
decreased by 4% compared to the previous year saving 82000 tons of steam and reducing carbon emissions by
7625000 tons.
(2) Use of Clean Energy: The Yanghe subsidiary maximized the use of photovoltaic green electricity consuming
17.72 million kWh of photovoltaic electricity accounting for 31.71% reducing carbon emissions by 24900 tons.
Shuanggou Wine Industry used 9.04 million kWh of photovoltaic electricity in 2024 while transformer upgrades
saved 67500 kWh of electricity resulting in a reduction of carbon emissions by 5071 tons. The Siyang subsidiary
in line with the overall layout of the plant's electrical circuits completed small-scale energy storage construction
in 2024. By using the "off-peak storage and peak release" method it was able to save 400 kWh per day resulting
in an annual cost saving of approximately CNY 72000. Guijiu Company installed a 1.8MW distributed photovoltaic
system using 837600 kWh of photovoltaic electricity and reducing carbon emissions by 477.66 tons.
(3) Optimizing Production Processes to Promote Energy Saving: The Yanghe subsidiary saved 45200 tons of steam
by installing a steam pressure stabilization and self-control system in the workshop and implementing full coverage
of grain addition inside the fermenter under the same input conditions. Shuanggou Wine Industry saved 35900
tons of steam by re-insulating steam pipes upgrading to constant-pressure steam supply and replacing steam
production with biogas boilers resulting in a reduction of carbon emissions by 11100 tons. Guijiu Company carried
out the recovery of residual steam in steam pipes reducing natural gas consumption per unit of steam produced
to 78.46m3 saving 34400 cubic meters of natural gas throughout the year.Administrative penalties for environmental issues during the reporting period
The impact on
Company or the production
Reason for Violation Punishment Rectification
subsidiary and operation
punishment situation result measures
name of listed
companies
None None None None None None
Other environmental information that should be disclosed
None
Other environmental protection related information
None
II. Social responsibility
The company has disclosed the “2024 Annual Social Responsibility Report and ESG Report” ，seewww.cninfo.com.cn for details.III. The Achievements of Poverty Alleviation and Rural Revitalization
In 2024 the company actively integrated a sense of national responsibility into its development adhering to the
concept of sustainable collaboration implementing rural revitalization support and industrial revitalization and
actively participating in social welfare activities to fulfill its social responsibilities.
1. Village-Enterprise Joint Construction and New Trends: Partnered with Zhangdu Village a key village for rural
revitalization support to continuously carry out the "Village-Enterprise Joint Construction* Unique New Trend -
Weekend Hair Salon" initiative. Throughout the year free haircut services were provided to 3000 villagers
fostering local warmth and nurturing a civil harmonious rural atmosphere. Donated organic fertilizers to
77Zhangdu Village to support the sorghum base construction enabling resource sharing and complementing each
other's strengths thus helping farmers increase income and improve livelihoods.
2. Village Support and Public Welfare: Actively carried out paired assistance work in Lai'an and Shuangqiao
Village in Siyang visiting 104 low-income households during the Mid-Autumn Festival and Chinese New Year.They delivered supplies and care to people in need and carried out activities such as "Welcoming the New Year
Writing Spring Festival Couplets and Sending Blessings" bringing a strong festive atmosphere to the village.
3. Promoting Regional Economic Development: Utilized the "Company + Base" management model to promote
green low-carbon circular agriculture. While ensuring production needs the company also actively drove the
scale development of rural industries creating employment opportunities in surrounding areas and boosting the
growth of upstream and downstream enterprises thus contributing to regional economic development.
4. Charitable Contributions and Social Responsibility: Fulfilled the role of strategic partner for China’s aerospace
industry supporting the development of the aerospace sector. Donated charitable funds established the "Dream
Education Development Fund" and contributed to the "My University My Dream" scholarship program lighting
the path of dreams for students. Actively participated in flood prevention and post-flood reconstruction efforts
helping communities recover. For three consecutive years the company has been awarded the "Annual Charity
Enterprise" honor by the China Charity Federation.For further details please refer to the company's disclosed "2024 Annual Environmental Social and Corporate
Governance Report."
78Section VI Significant Events
I. Performance of commitments
1. Complete and incomplete commitments of the Company and its actual controller shareholders related
parties acquirers and other related parties for the commitments by the end of the reporting period
?Applicable □N/A
Giver of
Commitment Commitment Details of Date of Term of
commitment Performance
s Type Commitment Commitment Commitment
s
1.
Commitment
to avoid
horizontal
competition:
(1) The
company is
not currently
engaged in
any business
that
competes
with the
joint-stock
company.The company
promises to
Commitment
maintain the
s on
existing
Commitment Jiangsu horizontal
business
s made at Yanghe competition August 26 In normal
structure Long-term
IPO or Group Co. related 2009 execution
and not to
refinancing Ltd. transactions
directly or
and capital
indirectly
occupation
operate with
the business
of the joint-
stock
company
that actually
constitutes
competition
or may
constitute
competition.Any business
or newly
established
subsidiaries
or affiliated
enterprises
79engaged in
the above-
mentioned
business. (2)
If the
company
violates the
above
commitment
s the joint-
stock
company has
the right to
request the
company to
immediately
terminate
the business
of horizontal
competition
and
compensate
the economic
loss caused
to the joint-
stock
company. At
the same
time the
company
shall pay
liquidated
damages of
CNY 10
million to the
joint-stock
company. (3)
The company
promises not
to use its
status as the
controlling
shareholder
in the joint-
stock
company to
damage the
legitimate
rights and
interests of
the joint-
stock
company
other
shareholders
of the joint-
stock
company and
80creditors of
the joint-
stock
company. ⑷
This letter of
commitment
takes effect
from the
date of
signing and
cannot be
revoked
without the
consent of
the joint-
stock
company. 2.Commitment
to reduce
related-party
transactions:
The company
will strictly
abide by the
requirements
of relevant
laws
regulations
and
normative
documents
such as the
Company
Law the
Securities
Law and the
Code of
Corporate
Governance
for Listed
Companies
and further
reduce and
strictly
regulate the
relationship
with joint-
stock
companies.All kinds of
related-party
transactions
between the
two
companies
to ensure
that the
status of the
81controlling
shareholder
and actual
controller
will not be
used to harm
the interests
of the joint-
stock
company and
other
shareholders
of the joint-
stock
company
and that no
new
occupation
of the joint-
stock
company will
occur.Commitment
to avoid
horizontal
competition:
1. The
company is
mainly
engaged in
investment
management
and does
not operate
the same or
Commitment related
s on business as
horizontal
Jiangsu Blue the issuer.competition November In normal
Alliance Co. The company Long-term
related 23 2017 execution
Ltd. will not
transactions
and capital engage in the
occupation same or
related
business as
the issuer's
business and
will not harm
the issuer's
interests nor
will it seek
illegitimate
benefits from
the issuer; 2.If the
company
82violates the
above
commitment
s the issuer
has the right
to demand
compensatio
n from it
owing to
economic
losses caused
to the issuer
and pay
liquidated
damages of
CNY 5
million and
have the
right to
request the
acquisition of
the business
project at the
market price
of the
business
project or
the
establishmen
t cost price
(whichever is
lower); 3.This
commitment
The book will
take effect
from the
date of
signing and
cannot be
revoked
without the
consent of
the issuer.After the
issuer's
shares have
been listed
Jiangsu Blue Share
and traded November In normal
Alliance Co. Reduction Long-term
on the stock 23 2017 execution
Ltd. Commitment
exchange for
one year the
shares
transferred
83each year
shall not
exceed 25%
of the total
number of
the issuer's
shares held
by the issuer
and the
issuer's
shares held
and their
changes shall
be reported
to the issuer
in a timely
manner.As one of the
directors
supervisors
and senior
managers of
the of
Jiangsu Blue
Alliance Co.Ltd. I
promise: 1.During the
term of
office of the
issuer the
annual
transfer of
Blue Alliance
Other equity shall Implementati
Cong November March 30
commitment not exceed on
Xuenian 23 2017 2024
s 25% of the completed
total equity
of Blue
Alliance held
by me 2. If I
resign from
the issuer I
shall not
transfer the
shares of the
Blue Alliance
held by me
within six
months after
resignation;
3. If I resign
from the
issuer the
84number of
shares
transferred
shall not
exceed 50%
of the total
shares of the
Blue Alliance
held by me
within 12
months of six
months of
resignation
Whether the
promise is
YES
fulfilled on
time
If the
commitment
is overdue
and not
fulfilled the
specific
reasons for
the failure to
N/A
fulfill and the
next work
plan shall be
explained in
detail
2.Where any profit forecast was made for any of the Company’s assets or projects and the current reporting
period is still within the forecast period the Company shall explain whether the performance of the asset or
project reaches the profit forecast and why:
□Applicable ?N/A
II. Non-operating capital occupation of listed companies by controlling shareholders and other
related parties
□Applicable ?N/A
No such case during the current reporting period.III. Illegal Provision of Guarantees for External Parties
□Applicable ?N/A
No such case during the current reporting period.
85IV. Explanation of the board of directors on the latest ‘non-standard audit report’
□Applicable ?N/A
V. Explanation Given by the Board of Directors Supervisory Committee and Independent
Directors (if applicable) regarding the “Non-standard Auditor’s Report” Issued by the CPA
Firm for the Current Reporting Period
□Applicable ?N/A
VI. For Changes in Accounting Policies Accounting Estimates or Correction of Significant
Accounting Errors Compared with the Financial Report for the Prior Year
?Applicable □N/A
1. On October 25 2023 the Ministry of Finance issued the "Interpretation No. 17 of the Enterprise Accounting
Standards" (Finance [2023] No. 21 hereinafter referred to as "Interpretation No. 17") which provides guidance on
the classification of current and non-current liabilities disclosure of supplier financing arrangements and
accounting treatment of sale and leaseback transactions. The company has adopted this interpretation starting
from January 1 2024. The implementation of this interpretation has no impact on the opening financial statements.
2. On December 6 2024 the Ministry of Finance issued the "Interpretation No. 18 of the Enterprise Accounting
Standards" (Finance [2024] No. 24 hereinafter referred to as "Interpretation No. 18") which provides guidance on
the accounting treatment of guarantee-type quality assurances that do not constitute separate performance
obligations. The company has adopted this interpretation starting from January 1 2024. The implementation of
this interpretation has no impact on the opening financial statements.VII. Explanation of changes in the scope of consolidated statements compared with the financial
report of the previous year
?Applicable □N/A
1. Set up subsidiaries
(1) The holding subsidiary Jiangsu Yangmi Liwei Distillery Co. Ltd. subscribed capital of CNY10 million to establish
Tibet Yangmiwei Distillery Co. Ltd. which has been included in the scope of consolidation for the consolidated
financial statements starting from January 2024.
(2) The holding subsidiary Jiangsu Yiguo Xiang Biotechnology Co. Ltd. subscribed capital of CNY2 million to
establish Suqian Yiguo Xiang Sales Co. Ltd. which has been included in the scope of consolidation for the
consolidated financial statements starting from June 2024.
(3) The holding subsidiary Jiangsu Yiguo Xiang Biotechnology Co. Ltd. subscribed capital of CNY1 million to
establish Hangzhou Yiguo Xiang Brand Operation Management Co. Ltd. which has been included in the scope of
consolidation for the consolidated financial statements starting from February 2024.
(4) The company subscribed capital of CNY20 million to establish Hainan Yanghe Trading Co. Ltd. which has been
included in the scope of consolidation for the consolidated financial statements starting from July 2024.
2. Deregistration of Subsidiaries
86(1) The holding subsidiary Jiangsu Shiyang Network Technology Co. Ltd. has completed its industrial and
commercial deregistration and has been excluded from the scope of consolidation for the consolidated financial
statements starting from November 2024.
(2) The holding subsidiary Jiangsu Yanghe Weiketang Network Technology Co. Ltd. has completed its industrial and
commercial deregistration and has been excluded from the scope of consolidation for the consolidated financial
statements starting from December 2024.VIII. Engagement and Disengagement of the CPA firm
CPA firm engaged at present
Name of domestic accounting firm Zhongxi CPA LLP.Remuneration of domestic accounting firm
176.68
(CNY10000)
Consecutive years of audit services of domestic
1
accounting firms
The name of the certified public accountant of the
Gong Zhaoping Wang Wenjuan
domestic accounting firm
Consecutive years of auditing services by certified
1
public accountants of domestic accounting firms
Whether to change the CPA firm in the current period
?Yes □No
Whether the accounting firm was changed during the audit period
□Yes ?No
Whether the change of accounting firm followed the approval procedures
?Yes □No
Explanation on the Change of Accounting Firm
In accordance with the relevant provisions on auditor rotation under the Measures for the Administration of
the Selection and Appointment of Accounting Firms by State-Owned Enterprises and Listed Companies the
company changed its accounting firm. In June 2024 upon approval at the 2023 Annual General Meeting of
Shareholders it was resolved to appoint Zhongxi Certified Public Accountants LLP (Special General Partnership)
as the company’s financial and internal control auditor for the year 2024.Engagement of internal control audit CPA firm financial advisor or sponsor
?Applicable □N/A
During the reporting period the Company hired Zhongxi CPA LLP. as the internal control audit accounting firm
and paid a total of CNY 471200 of financial consulting fees during the period.IX. Facing delisting after annual report disclosure
□Applicable ?N/A
X. Bankruptcy and Restructuring
□Applicable ?N/A
No such case during the reporting period.
87XI. Material Litigations and Arbitration
□Applicable ?N/A
The Company had no material litigation or arbitration during the current reporting period.XII. Punishment and rectification
□Applicable ?N/A
No such case during the reporting period.XIII. The integrity of the company and its controlling shareholders and actual controllers
□Applicable ?N/A
XIV. Significant Related-party Transactions
1. Related-party Transactions Arising from Routine Daily Operations
□Applicable ?N/A
No such case during the reporting period.
2. Related-party Transactions regarding Purchase and Disposal of Assets or Equity
□Applicable ?N/A
No such case during the reporting period.
3. Significant Related-party Transactions Arising from Joint Investments on External Parties
□Applicable ?N/A
No such case during the reporting period.
4. Related Credit and Debt Transactions
□Applicable ?N/A
No such case during the reporting period.
5. Transactions with related financial companies
□Applicable ?N/A
No such case during the reporting period.
6. Transactions between the financial company controlled by the company and related parties
□Applicable ?N/A
88There is no deposit loan credit or other financial business between the financial company controlled by the
Company and its related parties.
7. Other significant related-party transactions
□Applicable ?N/A
The company has no other significant related transactions during the reporting period.XV. Significant Contracts and Their Execution
1. Trusteeship Contracting and Leasing
（1）Trusteeship
□Applicable ?N/A
No such case in the reporting period.
（2）Contracting
□Applicable ?N/A
No such case in the reporting period.
（3）Leasing
□Applicable ?N/A
No such case in the reporting period.
2. Significant Guarantees
□Applicable ?N/A
No such case in the reporting period.
3. Entrusting Others to Manage Cash Assets
(1) Entrusted financial management
?Applicable □N/A
Overview of entrusted wealth management during the reporting period
Unit: CNY10 000
Amount of
impairment
Amount not
Outstanding accrued owing
Product types Source of funds Amount collected after
balance to overdue
the due date
financial
management
Bank wealth Private funds 960000 630000 0 0
89management
products
Trust wealth
management Private funds 24512.85 0 6512.85 6512.85
products
Total 984512.85 630000 6512.85 6512.85
Specific circumstances of high-risk entrusted wealth management with a single large amount or low security and
low liquidity
?Applicable □N/A
90Unit: CNY10 000
Ref
ere Is there
Typ Inv Actual The actual Whethe
Remun nce any
e of Sou est Expect profit and recovery of Amount of r it has An overview of
Trus Star eration ann entruste
Trus Am rce End me ed loss profit and provision gone the matter and
tee t determ uali d
tee Type oun s of dat nt earnin amount loss during for through an index of
nam dat ination zed financial
(or t fun e dire gs (if during the the impairme legal related queries
e e metho rate plan in
Trus ds ctio any) reporting reporting nt (if any) proced (if any)
d of the
tee) n period period ures
ret future
urn
The trust
financing
expires and
CITIC
part of the
Trust
principal and
*
income are
Jiahe
deferred. For
No.details please
118
refer to the
Everg Nov
Ma "Announcement
CITI rande Priv em Deb
65 y on the Deferred
C Trus Guiya ate ber t 7.6 1085.
12. 29 Cash 0 0 6512.85 Yes No Payment of the
Trus t ng fun 29 ass 0% 97
85 202 Expired
t New ds 202 ets
0 Principal and
World 1
Income of
Accu
Entrusted
mulat
Wealth
ive
Management"
Fund
disclosed by the
Trust
company on
Plan
December 4
2021
(Announcement
91No. 2021-044)
65
Total 1085.
12.------------0--6512.85------
97
85
Entrust finance expected to be failed to recover principle or other situation leading to impairment
?Applicable □N/A
(1) The “CITIC Trust Jiahe No. 118 Evergrande Guiyang New World Collective Fund Trust Plan” purchased by the company was extended. Based on the principle of
prudence the company handled changes in fair value and as of December 31 2024 an impairment provision of CNY65128500 was recognized.(2) The company
purchased the “AVIC Trust * Tianxin Bay Area Renewal No. 10 Collective Fund Trust Plan Phase 1” and “AVIC Trust * Tianxin Bay Area Renewal No. 10 CollectiveFund Trust Plan Phase 2.” As of the end of the reporting period the full principal of the aforementioned products had been recovered.
92(2) Entrusted loan management
□Applicable ?N/A
No such case during the reporting period
4. Other major contracts
□Applicable ?N/A
No such case during the reporting period
XVI. Explanation of other significant matters
□Applicable ?N/A
No other significant matters that need to be explained exist during the reporting period.XVII. Significant Events of the Company's Subsidiaries
□Applicable ?N/A
93Section VII Changes in Shares and Shareholders
I. Changes in shares
1. Table of Changes in Share Capital
Unit：share
Before the change Changes in the period (+ -) After the change
Share
transfe
New
Bonus rred
Shares Ratio Shares Others Sub-total Shares Ratio
issue from
Issued
capital
reserve
1. Shares subject to -
42892360.28%000-4253086361500.00%
conditional restriction(s) 4253086
1.1 State holdings 0 0.00% 0 0 0 0 0 0 0.00%
1.2 Shares held by
00.00%0000000.00%
State-owned corporate
1.3. Other domestic -
42892360.28%000-4253086361500.00%
holdings 4253086
Including: held by
00.00%0000000.00%
domestic corporates
held by domestic -
42892360.28%000-4253086361500.00%
natural persons 4253086
4. Foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
Including: held by
00.00%0000000.00%
overseas corporates
held by
00.00%0000000.00%
overseas natural person
2. Shares without 1502155 15064
99.72%00042530864253086100.00%
restriction 838 08924
2.1 CNY ordinary 1502155 15064
99.72%00042530864253086100.00%
shares 838 08924
2.2 Domestically listed
00.00%0000000.00%
foreign shares
2.3 Foreign shares
00.00%0000000.00%
listed overseas
2.4 Others
1506445100.0015064
3. Total shares 0 0 0 0 0 100.00%
074%45074
Reason for share changes
?Applicable □N/A
The main changes in shareholding are due to the changes in locked shares held by current and departing
directors supervisors and senior management personnel.Approval for changes in share capital
94□Applicable ?N/A
Transfer for changes in share capital
□Applicable ?N/A
Effects of changes in share capital on the basic earnings per share ("EPS") diluted EPS net assets per share
attributable to common shareholders of the Company and other financial indexes over the last year and last
period
□Applicable ?N/A
Other contents that the Company considers necessary or required by the securities regulatory authorities to
disclose
□Applicable ?N/A
2. Changes in Restricted Shares
?Applicable □N/A
Unit：share
Opening Closing Note for
Name of Increased in Vested in Date of
restricted restricted restricted
shareholder current period current period unlocking
shares shares shares
The lock-up
period for
On August 22
departing
2024 all
directors has
shares held
Zhou Xinhu 2158718 0 2158718 0 expired and
were released
all restrictions
from the lock-
on the shares
up period.have been
lifted
The lock-up
period for
On August 22
departing
2024 all
directors has
shares held
Cong Xuenian 2083718 0 2083718 0 expired and
were released
all restrictions
from the lock-
on the shares
up period.have been
lifted
On May 08
2024 25% of
the shares
held were
Locked shares
lifted from
held by the
Zheng Bujun 45000 0 11250 33750 restrictions on
current
sale and the
directors.remaining
shares that
have not been
lifted from
95restrictions on
sale will be
lifted in
accordance
with relevant
regulations.On January 24
2025 25% of
the shares
held were
lifted from
restrictions on
sale and the
Lock in upon remaining
Wang Kai 1800 600 0 2400 director's shares that
departure have not been
lifted from
restrictions on
sale will be
lifted in
accordance
with relevant
regulations.Total 4289236 600 4253686 36150 -- --
II. Issuance and Listing of Securities
1. Securities (exclude Preferred Share) Issued during the Reporting Period
□Applicable ?N/A
2. Explanation on Changes in Share Capital & the Structure of Shareholders the Structure of Assets and
Liabilities
□Applicable ?N/A
3. Existent Shares Held by Internal Staff of the Company
□Applicable ?N/A
III. Particulars about the Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit：share
Total number Total number The total The total
of common of common number of number of
shareholders shareholders preferred preference
18605418757700
at the end of at the end of shareholders shareholders
the reporting the previous whose voting whose voting
period month prior to rights have rights have
96the annual been restored been restored
report at the end of at the end of
disclosure the reporting the previous
date period (if any) month before
(see Note 8) the disclosure
date of the
annual report
(if any) (see
Note 8)
Shareholders who hold more than 5% of total shares or the top 10 shareholders (excluding lending of shares
through the transfer facility)
Total Pledge marking or freezing
Increase
commo Number
/decrea Number
Share- n shares of
se of
Name of Nature of holding held at unrestric
during restricte
Shareholders shareholders percent the end ted Status Amount
the d shares
age (%) of the shares
reportin held
reportin held
g period
g period
Jiangsu Yanghe State-owned 514858 514858
34.18% 0 0 N/A 0
Group Co. Ltd. legal person 939 939
Domestic Non-
Jiangsu Blue 264991 264991
state-owned 17.59% 0 0 N/A 0
Alliance Co. Ltd. 926 926
legal person
Shanghai Haiyan
Logistics State-owned 145708 145708
9.67% 0 0 N/A 0
Development legal person 137 137
Co. Ltd.Shanghai
Jieqiang
State-owned 59744 597440
Tobacco Sugar & 3.97% 0 0 N/A 0
legal person 099 99
Wine (Group)
Co. Ltd.Bank of China
Limited - China
Merchants CSI
Baijiu Index 46945 - 469451
Others 3.12% 0 N/A 0
Classified 193 461178 93
Securities
Investment
Fund
Bank of China
Limited - E Fund
Blue Chip
36000360000
Selected Mixed Others 2.39% 0 0 N/A 0
00606
Securities
Investment
Fund
Hong Kong
Securities -
Overseas legal 24727 247276
Clearing 1.64% 13793 0 N/A 0
persons 677 77
Company 169
Limited
97China Securities
Domestic Non-
Finance 13790 137900
state-owned 0.92% 0 0 N/A 0
Corporation 044 44
legal person
Limited
Bank of China
Limited - E Fund
Premium
12500125000
Selected Hybrid Others 0.83% 0 0 N/A 0
03232
Securities
Investment
Fund
Domestic 10946 10946 109460
Xing Fuping 0.73% 0 N/A 0
natural persons 000 000 00
Strategic investors or general
legal persons becoming the top
10 shareholders due to NO
placement of new shares (if any)
(see Note 3)
Explanation of the related
relationship or concerted action NO
of the above shareholders
Explanation of the above-
mentioned shareholders
involving entrusted/entrusted NO
voting rights and abstention
from voting rights
Special instructions for the
existence of a special repurchase
account among the top 10 NO
shareholders (if any) (see Note
10)
Shareholdings of the top 10 shareholders without restrictions on sales
Number of unrestricted shares held at the Type of shares
Name of shareholders
end of the reporting period Type Amount
CNY common
Jiangsu Yanghe Group Co. Ltd. 514858939 514858939
shares
CNY common
Jiangsu Blue Alliance Co. Ltd 264991926 264991926
shares
Shanghai Haiyan Logistics CNY common
145708137145708137
Development Co. Ltd. shares
Shanghai Jieqiang Tobacco Sugar CNY common
5974409959744099
& Wine (Group) Co. Ltd. shares
Bank of China Limited－China CNY common
Merchants CSI Liquor Index shares
4694519346945193
Graded Securities Investment
Fund
Bank of China Limited－E Fund CNY common
Blue Chip Selected Mixed 36000006 shares 36000006
Securities Investment Fund
Hong Kong Securities Clearing CNY common
2472767724727677
Co. Ltd shares
CNY common
China Securities Finance Co. LTD 13790044 13790044
shares
98Bank of China Limited－E Fund CNY common
Premium Selected Hybrid 12500032 shares 12500032
Securities Investment Fund
CNY common
Xing Fuping 10946000 10946000
shares
Description of the connected
relationship or concerted action
among the top 10 shareholders
of unrestricted tradable shares
NO
and between the top 10
shareholders of unrestricted
tradable shares and the top 10
shareholders
Explanation on the participation As of the end of the reporting period Mr. Xing Fuping a shareholder of the
of the top 10 ordinary company held a total of 10946000 shares in the company comprising
shareholders in the securities 655400 shares held through a regular securities account and 10290600
margin trading (if any) (see Note shares held through a client margin trading and securities lending account
4) with CITIC Securities Company Limited.
Stock lending situation of shareholders holding more than 5% top 10 shareholders and top 10 unrestricted
circulating shareholders involved in margin trading and securities lending business
□Applicable ?N/A
Changes in Top 10 Shareholders and Top 10 Unrestricted Circulating Shareholders Due to Securities
Lending/Repayment in Margin Trading.□Applicable ?N/A
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducted
any agreed buy-back in the reporting period
□Yes ?No
No such case during the current reporting period.
2. Particulars about Controlling Shareholder of the Company
Nature of controlling shareholder: local state-owned holding
Type of controlling shareholder: Corporation
Legal
Name of Controlling Date of
representative/ Organization Code Business scope
Shareholder establishment
People in charge
The business scope
includes grain
procurement; import
and export of various
commodities and
technologies on a self-
Jiangsu Yanghe Group 91321300142334989 operated or agency
Yang Weiguo May 8 1997
Co. LTD Y basis (excluding
commodities and
technologies restricted
or prohibited from
import and export by
the state); sales of
nickel molybdenum
99iron refined nickel-
iron nickel-chromium
pig iron nickel-
chromium ore furnace
charge steel
mechanical parts
castings light stabilizer
944 light stabilizer 622
antioxidant 3114
organic fertilizers
compound fertilizers
chemical raw materials
(excluding dangerous
goods) viscose staple
fibers cotton pulp
pellets electric bicycles
and accessories
lithium batteries
hardware and electrical
sales; sales of raw
grains; property
leasing; industrial
investment; municipal
public works building
construction projects
tourism and cultural
industry investment
(business activities
shall be carried out
with the approval of
relevant departments
as required by law).General projects: sales
of communication
equipment; sales of
optical communication
equipment; sales of
electronic products;
sales of mobile
communication
equipment; sales of
mobile terminal
equipment; wholesale
of computer hardware
and auxiliary
equipment; software
development;
information system
integration services
(business activities
shall be carried out
independently in
accordance with the
business license except
100for projects that
require approval by
law).The controlling
shareholder reports on
the equity status of other
domestic and foreign N/A
listed companies held or
invested in during the
reporting period.Change of controlling shareholder during the reporting period
□Applicable ?N/A
The Company's controlling shareholder has not changed during the reporting period.
3. Particulars about the Company’s Actual Controller & Concerted Parties
Nature of actual controller: local state-owned assets management organization
Actual controller type: Corporation
Legal
representative/ Date of
Name of Actual Controller Organization Code Business scope
People in establishment
charge
On behalf of Suqian
Municipal people's
State-owned Assets Government to execute the
Supervision and responsibilities of state-
Administration October 22 owned enterprise investors
Zhao Xiaoli N/A
Commission of Suqian 2005 implementing the
Municipal People's supervision and
Government management of state-
owned assets and state-
owned enterprises.The equity of other
domestic and foreign listed
companies controlled by N/A
the actual controller during
the reporting period
Change of the actual controller during the reporting period
□Applicable ?N/A
No such change during the reporting period.The ownership and controlling relationship between the actual controller of the Company and the Company is
detailed as follows:
101The actual controller controls the company through trust or other asset management methods
□Applicable ?N/A
4. The Company's Controlling Shareholder or the Largest Shareholder and its Concerted Action Person's
Cumulative Pledged Shares Account for 80% of the Company's Shares Held by Them
□Applicable ?N/A
5. Particulars about Other Corporate Shareholders with Shareholding Proportion over 10%
?Applicable □N/A
Legal
Date of
Name of Actual Controller representative/ Organization Code Business scope
establishment
People in charge
Sales of daily
necessities
biotechnology research
and development
Jiangsu Blue Alliance Co. LTD Cong Xuenian 28 July 2016 CNY 105.6 million furniture production
business management
consulting services
fruit tree planting pre-
packaged food sales.
1026. Particulars on Shareholding Decrease Restrictions for the Controlling Shareholders Actual Controller
Restructurer or Other Committing Parties
□Applicable ?N/A
IV. The specific implementation of share repurchases during the reporting period
The implementation progress of share repurchases
□Applicable ?N/A
The implementation progress of reducing repurchased shares by centralized bidding
□Applicable ?N/A
103Section VIII Preferred Shares
□Applicable ?N/A
There are no preferred shares in the company during the reporting period.
104Section IX Bonds
□Applicable ?N/A
105Section X Financial Report
I.Auditor’s report
Type of audit report Standard and unqualified opinion
Date of signature 27 April 2025
Name of Audit Zhongxi CPA LLP.No. of auditor’s report Zhongxi Audit 2025S01382
Names of auditors Gong Zhaoping Wang Wenjuan
Body of Audit Report
To all the shareholders of Jiangsu Yanghe Distillery Co. Ltd.:
Opinion
We have audited the financial statements of Jiangsu Yanghe Distillery Co. Ltd. (hereinafter referred
to as the “Company”) which comprise the consolidated balance sheet and balance sheet as at 31
December 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 31 December 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 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.Recognition of revenue
Please refer to note 27 “Significant Accounting Policies and Accounting Estimates” in Note Ⅲ note 36 in Note
V "main Items of the Consolidated Financial Statements".Key audit matters How our audit addressed the key audit matter
The Company’s specific condition of Our procedures in relation to revenue recognition included:
revenue recognition is that revenue
(1) Understood tested and evaluated the effectiveness of internal
106is recognized after customer control of sales and cash receipts cycle designed and executed by the
acceptance based on transfer of management.control. In 2024 the Company’s (2) Through sampling inspection of the sales contract identified the
annual operating revenue was contractual rights and obligations evaluated the point of time of
CNY28.876 billion. The amount performance obligations and evaluated whether the judgment of the
substantial and operating revenue is transfer of control related to revenue recognition conforms to the
an important component of income Company's accounting policies and Accounting Standards for Business
statement. Therefore we identified Enterprises.operating revenue as a key audit (3) Judged whether there is an abnormal fluctuation of revenue in the
matter. reporting period with the analytic review of revenue and gross profit
margin in combination with product category.
(4) Sampling inspection of supporting documents related to revenue
recognition including sales contracts or orders invoices delivery lists or
receiving reports shipping lists and bank slips.
(5) Implemented the external confirmation of selected major
franchisers and inspected the payback of account receivables after
the reporting period in combination with audit of accounts receivable
and contract liabilities.
(6) Sampling inspection of calculation and accounting treatment of
sales discount and sales allowance.
(7) Chose samples from sales revenue records before and after the
balance sheet date inspected related supporting documents and
evaluated whether the revenue recorded in the appropriate accounting
period.
2. Existence valuation and allocation of inventories
Please refer to note 13 “Significant Accounting Policies and Accounting Estimates” in Note Ⅲ and note 8 in
Note V "main Items of the Consolidated Financial Statements".Key audit matters How our audit addressed the key audit matter
As at 31 December 2024 the book Our procedures in relation to existence valuation allocation of
value of inventory is CNY 19.733 inventories included:
billion accounting for 29.30% of the
(1) Understood tested and evaluated the effectiveness of
total assets and 39.21% of all
management's design and implementation of inventory-related internal
current assets. The book value of
control.the inventories at year end is
(2) Carried out the inventory analysis review procedure.
relatively large and accounts for a
relatively large proportion of the (3) Supervised the inventory at the end of the period.total assets at the year end. (4) Sample check of production cost calculation table and other cost
Therefore the existence valuation accounting data and conducted valuation test on inventory and
and allocation of inventories are evaluated the accuracy of closing balance of inventory.identified as a key audit matter. (5) Obtained the calculation table of provision for stock obsolescence
conduct the inventory impairment test reviewed the inventory
impairment test process and checked whether the provision for stock
obsolescence is made sufficiently.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 auditors report thereon.Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
107In 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
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.
(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
108or 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 including
the disclosures 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.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.Zhongxi CPA LLP
CPA of China:
CPA of China:
Beijing China 27 April 2025
II. Financial statements
109Consolidated balance sheet
Prepared by: Jiangsu Yanghe Distillery Co. Ltd.As at 31 December 2024
Unit: CNY
Item Ending Balance Beginning Balance
Current assets:
Cash and bank balances 21748297978.37 25812787646.86
Settlement reserves
Lending funds
Financial assets held for trading 6380145437.14 5851217684.93
Derivative financial assets
Notes receivables 413398699.00 526476976.44
Accounts receivables 8994904.73 3528778.28
Account receivables financing 1090851688.67 261576568.30
Prepayment 23310180.68 50971870.03
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 17051847.78 57782263.17
Including: Interests receivable
Dividends receivable
Buying back the sale of financial
assets
Inventories 19732881051.73 18954235402.25
Including: Data Resource
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 909932715.44 1016160416.30
Total current assets 50324864503.54 52534737606.56
Non-current assets:
Disbursement of loans and
advances
Investment in debt instruments
Investment in other debt
instruments
Long-term receivables
Long-term equity investments 1235408741.87 1229838793.04
Investment in other equity
instruments
Other non-current financial assets 4614148799.21 5532792281.26
Investment property
110Fixed assets 5571618070.98 5305626964.48
Construction in progress 1912601220.28 1457315739.56
Productive biological assets
Oil and gas assets
Right-of-use asset 66814914.62 82464551.16
Intangible assets 1804220059.96 1773115842.97
Including: Data Resource
Development expenses
Including: Data Resource
Goodwill 276001989.95 276001989.95
Long-term deferred expenses 116472530.48 8052339.84
Deferred tax assets 1242507668.92 1326312613.59
Other non-current assets 180606719.81 266028733.50
Total non-current assets 17020400716.08 17257549849.35
Total assets 67345265219.62 69792287455.91
Current liabilities:
Short-term loans
Borrowings from the central bank
Loans from other banks
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payables 1264620215.06 1425873552.42
Advance from customer
Contract liabilities 10343779848.07 11104763487.18
Financial assets sold for repurchase
Customer brokerage deposits
Securities underwriting brokerage
deposits
Receivings from vicariously sold
securities
Employee benefits payable 299707073.73 338213836.87
Taxes payable 564746863.05 1009471862.46
Other payables 2066406374.07 2024640485.37
Including: Interests payable
Dividends payable
Handling charges and commissions
payable
Reinsurance accounts payables
Liabilities held for sale
Non-current liabilities due within
23588100.8525080946.40
one year
Other current liabilities 695673863.30 1247749929.26
111Total current liabilities 15258522338.13 17175794099.96
Non-current liabilities:
Insurance contract reserves
Long-term loans
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 40134989.46 48709685.88
Long-term payables 195638914.53 196013394.53
Long-term payroll payables
Accrued liabilities 2000000.00
Deferred income 45530066.67 87520166.67
Deferred tax liabilities 110393056.95 234386134.01
Other non-current liabilities
Total non-current liabilities 393697027.61 566629381.09
Total liabilities 15652219365.74 17742423481.05
Shareholders' equity
Share capital 1506445074.00 1506445074.00
Other equity instruments
Including: preference shares
Perpetual bonds
Capital reserves 930146459.78 930524463.31
Less: treasury stock
Other comprehensive income -1225575.49 2023194.81
Special reserves
Surplus reserves 753494000.00 753494000.00
General risk reserve
Undistributed profits 48399383170.36 48746028613.08
Total equity attributable to owners of
51588243128.6551938515345.20
the parent company
Non-controlling interests 104802725.23 111348629.66
Total owners' equity 51693045853.88 52049863974.86
Total liabilities and owners' equity 67345265219.62 69792287455.91
Legal representative: Zhang Liandong
Person in charge of accounting affairs: Yin Qiuming
Person in charge of accounting department: Zhao Qike
Balance sheet of parent company
As at 31 December 2024
Unit: CNY
Item Ending Balance Beginning Balance
Current assets:
112Cash and bank balances 18026699995.33 23078403040.50
Financial assets held for trading 5880053441.08 4353570013.70
Derivative financial assets
Notes receivables 365519104.00 355328831.49
Accounts receivables 280194833.50 95491609.32
Account receivables financing 804449307.36
Prepayment 69477477.38 55401319.74
Other receivables 430983882.60 2510993906.82
Including: Interests receivable
Dividends receivable 519220.27
Inventories 12737571701.91 12298697844.56
Including: Data Resource
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 46583153.33 238168160.66
Total current assets 38641532896.49 42986054726.79
Non-current assets:
Investment in debt instruments
Investment in other debt
instruments
Long-term receivables
Long-term equity investments 9532358054.59 9530201578.43
Investment in other equity
instruments
Other non-current financial assets 1713315303.51 1782878797.80
Investment property
Fixed assets 3437400309.66 3327872021.12
Construction in progress 332536085.42 495375718.02
Productive biological assets
Oil and gas assets
Right-of-use asset 3503051.26 615303.37
Intangible assets 1128055608.65 1133200138.15
Including: Data Resource
Development expenses
Including: Data Resource
Goodwill
Long-term deferred expenses 102297788.44 8052339.84
Deferred tax assets 26541057.86 33504216.38
Other non-current assets 166700132.43 194423677.41
Total Non-current Assets 16442707391.82 16506123790.52
Total Assets 55084240288.31 59492178517.31
113Current liabilities:
Short-term loans
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payables 1121399732.48 3210117125.20
Advance from customer
Contract liabilities 13821314226.37 16052768704.31
Employee benefits payable
Taxes payable 306330294.15 157200430.68
Other payables 2097128345.98 2280556716.49
Including: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within
1138685.00369739.52
one year
Other current liabilities 1873926418.76 2267828469.82
Total current liabilities 19221237702.74 23968841186.02
Non-current liabilities:
Long-term loans
Bonds payable
Including：preference shares
Perpetual bonds
Lease liabilities 2455456.12 286396.18
Long-term payables 143340029.73 143601709.73
Long-term payroll payables
Provisions
Deferred income 7791666.67 8791666.67
Deferred tax liabilities 51572093.98 55706044.02
Other non-current liabilities
Total non-current liabilities 205159246.50 208385816.60
Total liabilities 19426396949.24 24177227002.62
Owners' equity (or shareholders'
equity)
Share capital 1506445074.00 1506445074.00
Other equity instruments
Including: preference shares
Perpetual bonds
Capital reserves 1530620394.11 1530620394.11
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 753494000.00 753494000.00
114Undistributed profits 31867283870.96 31524392046.58
Total owners' equity 35657843339.07 35314951514.69
Total liabilities and owners' equity 55084240288.31 59492178517.31
Consolidated Income Statement
For the year ended 31 December 2024
Unit: CNY
Item Year 2024 Year 2023
1. Total operating revenue 28876296993.56 33126277551.51
Including: Operating revenue 28876296993.56 33126277551.51
Interest income
Earned premium
Fee and commission income
2. Total operating costs 19512180569.56 20151096010.15
Including: cost of sales 7751218356.66 8200245255.42
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 4826086952.64 5269245592.35
Selling and distribution expenses 5516238544.79 5386953700.62
General and administrative
1924730302.351764423149.06
expenses
Research and Development
104796407.26284753881.33
expenses
Financial expenses -610889994.14 -754525568.63
Including: Interest expenses 2955080.49 1707107.98
Interest income 621439988.97 765369577.25
Plus: Other income 59667934.13 56179399.53
Investment income ("-" for losses) 146415168.80 255520777.61
Including: income from investment
-7094112.58-2070468.13
in associates and joint ventures
Disposal of financial instruments at
-14336475.80-27758655.92
a mortised cost ("-" for losses)
Foreign exchange gains ("-" for
losses)
Net exposure to hedging gains("-
"for loss)
115Gains from the changes in fair
-396164080.43-37082477.77values (“-“ for losses)Losses from credit impairment ("-"
667208.93881383.32
for losses)
Losses from asset impairment ("-"
-11203156.73-2828018.24
for losses)
Gains from disposal of assets ("-" for
-2729328.84-5282977.32
losses)
3. Operating profits ("-" for losses) 9160770169.86 13242569628.49
Plus: non-operating income 52446752.81 39176788.83
Less: non-operating expenses 70140310.99 63913298.25
4. Total profits before tax ("-" for total
9143076611.6813217833119.07
losses)
Less: income tax expenses 2476620791.72 3197064562.60
5. Net profit ("-" for net loss) 6666455819.96 10020768556.47
Classification by operating
continuity
Net profit from continuing
6666455819.9610020768556.47
operation ("-" for losses)
Net profit from discontinued
operation ("-" for losses)
Classification by owners
Attributable to owners of the parent
6673388602.1210015930040.27
company
Attributable to non-controlling
-6932782.164838516.20
interests
6.Net of tax from other
-3239896.1046942.15
comprehensive income
Net of tax from other
comprehensive income to the owner -3248770.30 41157.80
of the parent company
Other comprehensive income
cannot reclassified into the profit and
loss:
Including: Changes in remeasured
defined benefit obligations
Share in other comprehensive
income that cannot be classified into
profit and loss under equity method
Changes in the fair value of other
equity instruments
Fair value changes in enterprise's
own credit risk
Others
Other comprehensive income that
will be reclassified into the profit and -3248770.30 41157.80
loss
Including: Share in other
comprehensive income that will be
116classified into profit and loss under
equity method
Net gain on debt instruments at fair
value through other comprehensive
income
The amount of financial assets
reclassified into other comprehensive
income
Other debt investment credit
impairment provision
Cash flow hedging reserve
Balance arising from the translation
of foreign currency financial -3248770.30 41157.80
statements
Others
Net of tax from other
comprehensive income to non- 8874.20 5784.35
controlling interests
7. Total comprehensive income 6663215923.86 10020815498.62
Total comprehensive income
attributable to owners of the parent 6670139831.82 10015971198.07
company
Total comprehensive income
attributable to non-controlling -6923907.96 4844300.55
interests
8. Earnings per share
(1) Basic earnings per share 4.4299 6.6487
(2) Diluted earnings per share 4.4299 6.6487
Where an enterprise is merged under the same control in the current period the net profit realized by
the merged party before the merger is: CNY 0.00 and the net profit realized by the merged party in the
previous period is: CNY 0.00.Legal representative: Zhang Liandong
Person in charge of accounting affairs: Yin Qiuming
Person in charge of accounting department: Zhao Qike
Income statement of parent company
For the year ended 31 December 2024
Unit: CNY
Item Year 2024 Year 2023
1. Operating revenue 12852221243.40 13212200864.23
Less: Cost of sales 6840375733.91 6866625130.04
Taxes and surcharges 3870675967.65 4286738232.15
Selling and distribution expenses 43493351.83 21375400.72
General and administrative 1020972213.60 967000222.04
117expenses
Research and Development
102303188.29273595370.01
expenses
Financial expenses -518365619.77 -711466339.14
Including: Interest expenses 198899.22 43225.12
Interest income 525826877.54 718317862.75
Plus: Other income 11169819.69 11391006.14
Investment income ("-" for losses) 6266148989.03 6555756927.65
Including: income from investment
-83523.84300199.49
in associates and joint ventures
Disposal of financial instruments at
-14336475.80-27758655.92
a mortised cost ("-" for losses)
Net exposure to hedging gains ("-
"for loss)
Gains from the changes in fair
39708601.59-319221773.34values (“-“ for losses)Losses from credit impairment ("-"
-56518255.22-486029.72
for losses)
Losses from asset impairment ("-"
-11388852.76-2985642.31
for losses)
Gains from disposal of assets ("-" for
220085.06
losses)
2. Operating profits ("-" For Losses) 7741886710.22 7753007421.89
Plus: non-operating income 22015501.36 14670553.09
Less: non-operating expenses 8430010.79 31017552.84
3. Total profits before tax ("-" For Total
7755472200.797736660422.14
Losses)
Less: income tax expenses 392546331.57 254522291.88
4. Net profit ("-" For Net Loss) 7362925869.22 7482138130.26
Net profit from continuing
7362925869.227482138130.26
operation ("-" for losses)
Net profit from discontinued
operation ("-" for losses)
5.Net of tax from other
comprehensive income
Other comprehensive income
cannot reclassified into the profit and
loss:
Including: Changes in remeasured
defined benefit obligations
Other comprehensive income that
cannot be transferred under the
equity method
Net gain on equity instrument at
fair value through other
comprehensive income
Fair value changes in enterprise's
own credit risk
118Others
Other comprehensive income that
will be reclassified into the profit and
loss
Including: Share in other
comprehensive income that will be
classified into profit and loss under
equity method
Net gain on debt instruments at fair
value through other comprehensive
income
The amount of financial assets
reclassified into other comprehensive
income
Other debt investment credit
impairment provision
Cash flow hedging reserve
Balance arising from the translation
of foreign currency financial
statements
others
6. Total comprehensive income 7362925869.22 7482138130.26
7. Earnings per share
(1)Basic earnings per share
(2)Diluted earnings per share
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
Unit: CNY
Item Year 2023 Year 2022
1. Cash flows from operating activities
Cash received from sale of goods
30813853834.2534853832478.90
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
119investments 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 for the sale of
securities
Refunds of taxes and surcharges 7654144.19 2297371.73
Cash received from other operating
1123602383.62900430985.55
activities
Sub-total of cash inflows from
31945110362.0635756560836.18
operating activities
Cash paid for goods purchased and
8265541593.449046851531.74
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
A net increase in divested funds
Cash paid for interests handling
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
3691944709.503631502767.93
employees
Cash paid for taxes and surcharges 10470592260.63 12151041331.84
Cash paid for other operating
4888320561.214796944336.71
activities
Sub-total of cash outflows from
27316399124.7829626339968.22
operating activities
Net cash flows from activities
4628711237.286130220867.96
operating
2. Cash flows from investing activities
Cash received from disposal of
13628114333.5211154008547.25
investments
Cash received from returns on
153509281.38257591245.74
investments
Net cash received from disposal of
fixed assets intangible assets and 1862196.56 1872403.96
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
120Sub-total of cash inflows from
13783485811.4611413472196.95
investing activities
Cash paid to acquire and construct
fixed assets intangible assets and 1454019811.57 1111629485.17
other long-term assets
Cash paid for investments 13631711455.57 9640808034.84
Net increase in pledge loans
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
activities
Sub-total of cash outflows from
15085731267.1410752437520.01
investing activities
Net cash flows from investing activities -1302245455.68 661034676.94
3. Cash flows from financing activities
Cash received from investors 57000000.00
Including: cash received by
subsidiaries from investments by 57000000.00
minority shareholders
Cash received from borrowings
Cash received from other financing
activities
Sub-total of cash inflows from
57000000.00
financing activities
Cash paid for debt repayments
Cash paid for distribution of
dividends and profits or payment of 7020034044.84 5634104576.76
interest
Including: dividends and profits
paid to minority shareholders by
subsidiaries
Cash paid for other financing
29771076.1431233718.70
activities
Sub-total of cash outflows from
7049805120.985665338295.46
financing activities
Net cash flows from financing
-7049805120.98-5608338295.46
activities
4. Effect of fluctuation in exchange
3627396.73-910236.76
rate on cash and cash equivalents
5. Net increase in cash and cash
-3719711942.651182007012.68
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 25201023553.40 24019016540.72
period
6. Balance of cash and cash
21481311610.7525201023553.40
equivalents at the end of the period
Cash flow statements of parent company
121For the year ended 31 December 2024
Unit: CNY
Item Year 2024 Year 2023
1. Cash flows from operating activities
Cash received from sale of goods
10760412245.0514975434852.75
and rendering of services
Refunds of taxes and surcharges 7589257.55 2297371.73
Cash received from other operating
5701098312.94526760153.32
activities
Sub-total of cash inflows from
16469099815.5415504492377.80
operating activities
Cash paid for goods purchased and
9173435682.105294280877.13
services received
Cash paid to and on behalf of
1530381430.541470245728.10
employees
Cash paid for taxes and surcharges 4594080593.05 6085955339.44
Cash paid for other operating
3281240424.573272079710.56
activities
Sub-total of cash outflows from
18579138130.2616122561655.23
operating activities
Net cash flows from activities
-2110038314.72-618069277.43
operating
2. Cash flows from investing activities
Cash received from disposal of
10688548668.507041027668.46
investments
Cash received from returns on
6266751733.146554937507.89
investments
Net cash received from disposal of
fixed assets intangible assets and 90265.49 332189.17
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Sub-total of cash inflows from
16955390667.1313596297365.52
investing activities
Cash paid to acquire and construct
fixed assets intangible assets and 396128024.47 420020950.78
other long-term assets
Cash paid for investments 12110000000.00 7298000000.00
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
activities
Sub-total of cash outflows from
12506128024.477718020950.78
investing activities
Net cash flows from investing activities 4449262642.66 5878276414.74
1223. Cash flows from financing activities
Cash received from investors
Cash received from loans
Cash received from other financing
activities
Sub-total of cash inflows from
financing activities
Cash paid for debt repayments
Cash paid for distribution of
dividends and profits or payment of 7020034044.84 5634104576.76
interest
Cash paid for other financing
1533750.64546330.28
activities
Sub-total of cash outflows from
7021567795.485634650907.04
financing activities
Net cash flows from financing
-7021567795.48-5634650907.04
activities
4. Effect of fluctuation in exchange
424015.80804193.37
rate on cash and cash equivalents
5. Net increase in cash and cash
-4681919451.74-373639576.36
equivalents
Plus: balance of cash and cash
equivalents at the beginning of the 22510052919.64 22883692496.00
period
6. Balance of cash and cash
17828133467.9022510052919.64
equivalents at the end of the period
123Consolidated statement of changes in shareholders' equity
For the year ended 31 December 2024
Unit: CNY
Year 2024
Equity attributable to owners of the parent company Non- Total
Share Other equity Share Other equity Other controllinSpecial Surplus General Undistrib Oth Subto sharehold
Item capital instruments capital instruments Compre reserve reserve risk
g interests
uted ers tal ers'
Perpe hensive reserve profit equity
Preferr Othe
tual Income
ed rs
bond
stock
1. Balance as at 31 51938
150644593052420231947534940487460281113486252049863
December of last 5153
074.00463.31.8100.00613.089.66974.86
year 45.20
Plus:
adjustments for
changes in
accounting
policies
Adjustments for
correction of
accounting errors
in prior year
Others
2. Balance as at 51938
150644593052420231947534940487460281113486252049863
January 1 of the 5153
074.00463.31.8100.00613.089.66974.86
current year 45.20
3.Increases/decrea -
-----
ses in the current 35027
378003.3248770346645446545904.35681812
year (“ -” for 2216.53 .30 2.72 43 0.98
decreases) 55
(1) Total - 6670 -
66733886663215
comprehensive 3248770 13983 6923907.
602.12923.86
income .30 1.82 96
124(2) Capital
--
contributed or
378003.37800378003.53
reduced by 53 3.53
owners
Capital
contributions by
owners
Capital
contributions by
other equity
instruments
holders
Amounts of
share-based
payments
recognized in
owners' equity
Others - -
378003.37800378003.53
533.53
(3) Profit -- -
7020
distribution 7020034 702003403404
044.84044.84
4.84
Withdrawal of
surplus reserves
Withdrawal of
general risk
reserve
Profit -
--
distributed to 7020
70200347020034
owners (or 03404044.84 044.84
shareholders) 4.84
Others
(4) Internal
carry-forward of
owners' equity
125Conversion of
capital reserves
into paid-in capital
Conversion of
surplus reserves
into paid-in capital
Surplus reserves
offsetting losses
Amount of
Changes in setting
benefit plan
transfer to
retained earnings
Other
comprehensive
income transferred
to retained
earnings
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as at 31 - 51588
15064459301467534940483993831048027251693045
December of the 1225575 2431
074.00459.7800.00170.365.23853.88
current year .49 28.65
Item Year 2023
Equity attributable to owners of the parent company Non- Total
126Share Other equity Capital Speci Surplus Genera Undistribu O Subtotal controlling shareh
capital instruments reserve Less :Trea Other al reserve l risk ted th interest olders'
sury stock Comprehens reser reserve profit erPerpet s equity
Preferred Others ive Income s
ual ve
stock
bond
1. Balance as at 31 475245
15069890465067562786807534940044364203474750349504329
December of last 1982037.01 43513.8
8000.008.91.790.00149.579184.70.11
year 1
Plus:
adjustments for
changes in
accounting
policies
Adjustments
for correction of
accounting errors
in prior year
Others
2. Balance as at 475245
15069890465067562786807534940044364203474750349504329
January 1 of the 1982037.01 43513.8
8000.008.91.790.00149.579184.70.11
current year 1
3.Increases/decre
--
ases in the 25873784 4381825 4463476 61844300 452532
542926.5627868041157.80
current year (“ -” .40 463.51 160.50 .55 0461.05 00 .79
for decreases)
(1) Total 100208
1001593010015974844300.
comprehensive 41157.80 15498.6
040.271198.0755
income 2
(2) Capital
--
contributed or 25873784 8160953 57000000 138609
542926.56278680
reduced by .40 9.19 .00 539.19 00 .79
owners
Capital
57000000570000
contributions by.0000.00
owners
127Capital
contributions by
other equity
Instruments
holders
Amounts of
share-based
816095398160953816095
payments.199.1939.19
recognized in
owners' equity
Others - - -
542926.5573575456278680
00.79.79
(3) Profit - - -
56341045634104563410
distribution 576.76 576.76 4576.76
Withdrawal of
surplus reserves
Withdrawal of
general risk
reserve
Profit
---
distributed to
56341045634104563410
owners (or 576.76 576.76 4576.76
shareholders)
Others
(4) Internal
carry-forward of
owners' equity
Conversion of
capital reserves
into paid-in
capital
Conversion of
surplus reserves
into paid-in
capital
128Surplus
reserves
offsetting losses
Carry-forward
of retained
earnings from
changes in
defined benefit
plans
Other
comprehensive
income
transferred to
retained earnings
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as at 520498
150644930524467534940048746028519385111134862
31 December of 2023194.81 63974.8
5074.003.310.00613.085345.209.66
the current year 6
Statement of changes in shareholders' equity of parent company
For the year ended 31 December 2024
Unit: CNY
Year 2024
Item
Share Other equity instruments
129capital
Preferred Perpetu Other
Othe Total
stock al Less：Treasury Compre Special
rs Capital reserve Surplus Undistributed Other shareholder
bond stock hensive reserve reserve profit s
Income s' equity
1. Balance as at 31
150644531524392046.535314951514
December of last 1530620394.11 753494000.00
074.008.69
year
Plus:
adjustments for
changes in
accounting
policies
adjustments for
correction of
accounting errors
in prior year
Others
2. Balance as at
150644531524392046.535314951514
January 1 of the 1530620394.11 753494000.00
074.008.69
current year
3.Increases/decrea
ses in the current
342891824.38342891824.38
year (“ -” for
decreases)
(1) Total
7362925869.
comprehensive 7362925869.22
22
income
(2) Capital
contributed or
reduced by
owners
Capital
contributions by
owners (common
stock)
130Capital
contributions by
other equity
instruments
holders
Amounts of
share-based
payments
recognized in
owners' equity
Others
(3)Profit --
7020034044.
distribution 7020034044.84 84
Withdrawal of
surplus reserves
Profit distributed -
-
to owners (or 7020034044.
7020034044.84
shareholders) 84
Others
(4) Internal
carry-forward of
owners' equity
Conversion of
capital reserves
into paid-in capital
Conversion of
surplus reserves
into paid-in capital
Surplus reserves
offsetting losses
Amount of
Changes in setting
benefit plan
transfer to
retained earnings
131Other
comprehensive
income transferred
to retained
earnings
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
(6) Others
4. Balance as at 31
150644531867283870.935657843339
December of the 1530620394.11 753494000.00
074.006.07
current year
Year 2023
Other equity instruments Other
Less： Total
Item Share Capital Comprehe Special Surplus
Preferred Perpetual Treasury Undistributed profit Others shareholder
capital Others reserve nsive reserve reserve
stock bond stock s' equity
Income
1. Balance as at 31
1506988150474656278680.7753494000.33385308422.0
December of last 29676358493.08
000.00609.719000
year
Plus:
adjustments for
changes in
accounting
policies
adjustments for
correction of
accounting errors
132in prior year
Others
2. Balance as at
1506988150474656278680.7753494000.33385308422.0
January 1 of the 29676358493.08
000.00609.719000
current year
3.Increases/decrea
-
ses in the current - 25873784
56278680.71848033553.501929643092.69
year (“ -” for 542926.00 .40 9
decreases)
(1) Total
comprehensive 7482138130.26 7482138130.26
income
(2) Capital
-
contributed or - 25873784
56278680.781609539.19
reduced by 542926.00 .40 9
owners
Capital
contributions by
owners (common
stock)
Capital
contributions by
other equity
instruments
holders
Amounts of
share-based
81609539
payments 81609539.19.19
recognized in
owners' equity
Others - --
5573575456278680.7
542926.00.799
(3)Profit -
-5634104576.76
distribution 5634104576.76
Withdrawal of
133surplus reserves
Profit
distributed to -
-5634104576.76
owners (or 5634104576.76
shareholders)
Others
(4) Internal
carry-forward of
owners' equity
Conversion of
capital reserves
into paid-in capital
Conversion of
surplus reserves
into paid-in capital
Surplus reserves
offsetting losses
Amount of
Changes in setting
benefit plan
transfer to
retained earnings
Other
comprehensive
income transferred
to retained
earnings
Others
(5) Special
reserves
Withdrawal for
the period
Use for the
period
134(6) Others
4. Balance as at 31
15064451530620753494000.35314951514.6
December of the 31524392046.58
074.00394.11009
current year
135III. Company profile
Jiangsu Yanghe Distillery Co. Ltd.(hereinafter referred to as “the Company”)was established on 26 December 2002
verified by the Government of Jiangsu Province details referred to Reply on The approval of Establishment of
Jiangsu Yanghe Distillery Co. Ltd. by the provincial government (SuZhengFu [2002]No.155) and it was a company
founded by Jiangsu Yanghe Group Co. Ltd. Shanghai Haiyan Logistics Development Co. Ltd. Nantong Zongyi
Investment Co. Ltd. Shanghai Jieqiang Tobacco Sugar & Wine (Group) Co. Ltd. Jiangsu Venture Capital Co.Ltd.China National Research Institute of Food and Fermentation Industries Co. Ltd. Nantong Shengfu Industrial Trade
Co. Ltd. and Yang Yandong and other totally 14 nature persons.On 13 October 2009 the Company was verified by China Securities Regulatory Commission according to the
document Reply on Approving Initial Public Offering of Jiangsu Yanghe Distillery Co. Ltd. (Zheng Jian Approval
[2009] No.1077). The Company announced the initial public offering of 45000000 common shares on 27 February
2009 and was listed for transactions in SZSE since 6 November 2009.
According to the Proposal of the cancellation of the remaining shares in the repurchase special securities account
approved by 2023 first extraordinary general meeting of shareholders on 15 September 2023 the company
cancelled 542926 shares. The share cancellation procedures were completed on October 12 2023. After this share
cancellation the company's registered capital changed to 1506445074 yuan and the total number of shares
became 1506445074 shares.Registered address of the Company: 118 Middle Avenue Yanghe Town Suqian City Jiangsu Province
Company type: Incorporated company (Listed)
Industry of the Company: Brewing food industry
Business scope of the Company: production and sale of liquor wholesaling and retailing of prepackaged food grain
purchase self-operating and agency of import and export of various types of merchandise and technology
excluding merchandise and technology limited or prohibited by the state for import and export domestic trade
construction of e- commerce platform and online sales. ( Business activities of projects needed to be approved by
law must be approved according to related departments )
Parent company of the Company:Jiangsu Yanghe Group Co.Ltd.The scope of the Company's consolidated financial statements is based on control and all subsidiaries are included
in the consolidation scope of the consolidated financial statements.Changes of the scope of consolidation are as follows:
1. Subsidiaries that are newly incorporated into the scope of consolidation are shown in the following table:
Name Measure of acquisition
Tibet Yangmengwei Wine Co. Ltd Newly establishment
Suqian Yiguoxiang Biotechnology Co. Ltd Newly establishment
Hangzhou Yiguoxiang Brand Operation Management Co. Ltd Newly establishment
Hainan Yanghe Trading Co. Ltd Newly establishment
2. Entities No Longer Included in the Scope of Consolidation During the Current Period：
Name Reasons for exclusion from
consolidation
Jiangsu Shiyang Network Technology Co. Ltd deregister
Jiangsu Yanghe Microcosmos Network Technology Co. Ltd deregister
3. Details of the subsidiaries incorporated into the consolidated financial statements show on “Note 10. 1.Interestsin subsidiaries” Changes in the scope of consolidation show on “Note 9. Change in consolidated scope”.
136IV. Basis of preparation of financial statements
1. Basis of preparation
The Company has prepared its financial statements on a going concern basis and recognized and measured its
accounting items in compliance with the Accounting Standards for Business Enterprises—Basic Standards and
various concrete accounting standards and other relevant provisions on the basis of actual transactions and events.
2. Going concern
The Company has sustainable operation ability for at least 12 months from the end of the reporting period. In
addition there is no significant event affecting going concern.V. Significant accounting policies and accounting estimates
The disclosure requirements of food and wine manufacturing-related industries in the Guidelines for Self-
regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -Industry Information Disclosure shall be
observed
1. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with ASBE and present truly and
completely the group’s financial position the Company’s and results of operations and changes in shareholders'
equity cash flows and other related information for the reporting period.
2. Accounting period
The Company’s accounting period is calendar year as its accounting year i.e. from 1 January to 31 December.
3. Operating cycle
The Company’s accounting period is 12 months.
4. Functional currency
The Company has adopted China Yuan (CNY) as functional currency.
5.Methods for Determining Importance Standards and Selection Criteria.
?Applicable □N/A
Project importance criteria
Significant individual provision for bad debts on
Individual amount exceeds 1% of total assets
accounts receivable
Significant construction in progress Individual amount exceeds 1% of total assets
Net profit accounts for 10% of the consolidated
Significant non-wholly-owned subsidiaries
financial statements.
6. The accounting treatment of business combinations involving enterprises under common control and not
under common control
(1) Accounting treatment method for business combination under common control
Business combination under common control is accounted for under pooling of interest method.Assets and liabilities obtained by the Company through business combination under common control shall be
measured at the book value as stated in the combine’s accounting record on 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
137shall be adjusted.
(2) Accounting treatment method of business combination not under common control
The Company accounts for business combination not under common control under purchase method.a) All the net identifiable assets liabilities or contingent liabilities obtained by the Company through business
combination not under common control shall be measured at fair value. Assets paid liabilities incurred or assumed
and the equity securities issued as consideration for combination are generally measured at fair value on the
acquisition date and differences between their fair values and book values shall be included in the current profit
and loss.b) The cost of acquisition shall be respectively determined for the following conditions;
i. Business combination of a transaction implementation the combination cost shall be the sum of the fair value
of the assets given the liabilities incurred or assumed and the equity securities issued by the Company in exchange
for the control on the acquisition date and contingent considerations meeting the recognition conditions. The
combination cost is the initial investment costs of long-term equity investments in individual financial statements.ii. Business combination through multiple transactions step by step to realized the combination cost shall be the
sum of the fair value measurement on the acquisition of the equity investment that holding before the acquisition
date and cost of all the new investment on the acquisition date. Long-term equity investment cost in individual
financial statements shall be the sum of the book value of the equity investment that holding before the acquisition
date and cost of all the new investment on the acquisition date. A package deal is excluded.c) The Company on the acquisition date allocates the combination costs between the identifiable assets and
liabilities acquired
i. All assets of the acquiree obtained by the Company through business combination (not limited to those that have
been recognized by the acquiree) other than intangible assets shall be separately recognized and measured at
fair value when the future economic benefits arising thereafter are expected to flow into the Company and the
fair value can be reliably measured.ii. Intangible assets of the acquiree obtained by the Company through business combination shall be separately
recognized and measured at fair value when their fair values can be reliably measured.iii. All liabilities of the acquiree obtained by the Company through business combination other than contingent
liabilities shall be separately recognized and measured at fair value when fulfillment of relevant obligations is
expected to bring future economic benefits to the Company and the fair value can be reliably measured.iv. Contingent liabilities of the acquiree obtained by the Company through business combination shall be separately
recognized as liabilities and measured at fair value when their fair values can be reliably measured.v. When the Company allocates the cost of business combination and recognizes the identifiable assets and
liabilities acquired through combination it shall not include any goodwill and deferred income taxes that have
been recognized by the acquiree before the business combination.d) Treatment of the difference between the business combination costs and the fair value of net identifiable asset
acquired from the acquiree through combination
i. 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.ii. The Company shall recognize the difference of the combination costs in short of the fair value of the net
identifiable asset acquired from the acquiree through combination according to the following provisions:
Review the measurement of fair values of all the identifiable assets liabilities and contingent liabilities acquired
from the acquiree and the combination costs;
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.
138(3) Treatment of relevant expenses arising from the Company’s business combination
a) Relevant expenses directly arising from the business combination of the Company (including the expenses for
audit legal services evaluation and consultation or other intermediary costs for business combination) shall be
included in the current profit and loss when they are incurred.b) Commissions fees and other expenses paid on issuance of bonds and undertaking of other debts for the
business combination shall be included in the initial measurement amount of debt securities.i. Where the bonds are issued at discount or par value that part of expenses will increase the amount of the
discount;
ii. Where the bonds are issued at premium that part of expenses will decrease the amount of the premium.c) 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.i. Where the equity securities are issued at premium that part of expenses shall be deducted from capital reserves
(stock premium);
ii. Where the equity securities are issued at par value or discount that part of expenses shall be deducted from
the retained earnings.
7. Criteria for determining control and Preparation of consolidated financial statements
(1) Criteria for determining control
The determination of the scope of consolidation of the consolidated financial statements is based on control.Control refers to the investor having power over the investee enjoying variable returns through involvement in
the investee's activities and having the ability to influence the amount of returns through the exercise of power
over the investee. When changes in relevant facts and circumstances lead to changes in the elements involved in
the definition of control the company will conduct a reassessment.
(2) Preparation of consolidated financial statements
(a) Consistency of accounting policies and accounting period
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 adjusted according to the accounting policies and
accounting periods of the Company.(b) Preparation method of consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its subsidiaries
and are prepared by the parent company according to other relevant information after the adjustment to long-
term equity investments in subsidiaries under the equity method and the elimination of effects of the internal
transactions between the Company and its subsidiaries and between the subsidiaries on the consolidated financial
statement.(c) Reflection of excess losses incurred to a subsidiary in the consolidated financial statements
In the consolidated financial statements where the current losses undertaken by the parent company are in excess
of its share of owners’ equity in the subsidiary at the beginning of the period the balance shall reduce the owners’
equity (retained earnings) of the parent company; where the current losses undertaken by a subsidiary’s non-
controlling shareholders excess those non-controlling shareholders’ share of owners’ equity in the subsidiary at
the beginning of the period the balance shall reduce the non- controlling interests.(d) Changes in number of subsidiaries during the reporting period
a) Acquisition of subsidiaries during the reporting period
i. Treatment of acquiring subsidiaries from business combination under common control during the reporting
139period
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.ii. Treatment of acquiring subsidiaries from business combination not under common control during the reporting
period
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.b) Treatment of disposing subsidiaries during the reporting period
During the reporting period if the Company disposes subsidiaries the opening balance in the consolidated balance
sheet shall not be adjusted. The income expenses and profits of the newly disposed sub diaries 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.
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. A joint operation is a joint
arrangement whereby the joint operators have rights to the assets and obligations for the liabilities relating to
the arrangement. A joint venture is a joint arrangement whereby the joint ventures only have the rights to the net
assets under this arrangement.A joint arrangement that is not structured through a separate vehicle shall be classified as a joint operation. A
separate vehicle refers to a separately identifiable financial structure including separate legal entities or entities
without a legal personality but recognized by statute.A joint arrangement that is structured through a separate vehicle is usually classified as a joint venture. However
when a joint arrangement provides clear evidence that it meets any of the following requirements and complies
with applicable laws and regulations as a joint operation:
a) The legal form of the joint arrangement indicates that the parties that have joint control have rights to the assets
and obligations for the liabilities relating to the arrangement.b) The terms of the joint arrangement specify that the parties that have joint control have the rights to the assets
and the obligations for the liabilities relating to the arrangement.c) Other facts and circumstances indicate that the parties that have joint control have rights to the assets and the
obligations for the liabilities relating to the arrangement---for example 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 treatment of a joint operation
A joint operator shall recognize the following items in relation to its interest in a joint operation and account for
them in accordance with relevant accounting standards:
a) Its solely-held assets and its share of any assets held jointly;
b) Its solely-assumed liabilities and its share of any liabilities incurred jointly;
140c) Its revenue from the sale of its share of the output arising from the joint operation;
d) Its share of the revenue from sale of the output by the joint operation; and
e) Its solely-incurred expenses and its share of any expenses incurred jointly.
9. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand.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.
10. Foreign currency transactions and translation of foreign currency statements
(1) Accounting method of foreign currency transactions
a) Initial recognition of foreign currency transactions
For foreign currency transactions incurred the Company converts the amount in foreign currency into the amount
in functional currency at the spot exchange rate (middle rate) announced by the People’s Bank of China on the
transaction date. Among them for foreign currency exchange occurred or transaction involving foreign currency
exchange the Company converts at the exchange rate actually adopted on the transaction date.b) Adjustment or settlement on the balance sheet date or settlement date
On the balance sheet date or the settlement date the Company handles foreign currency monetary items and
foreign currency non-monetary items separately in accordance with the following methods:
i. Accounting principles for handling foreign currency monetary items
For foreign currency monetary items on the balance sheet date or the settlement date the Company converts
them by using the spot exchange rate (middle rate) prevailing on the balance sheet date or settlement date and
adjusts the amount in functional currency of foreign currency monetary items in respect of the difference arising
from exchange rate fluctuations which shall be treated as exchange difference at the same time. Among them
the exchange differences arising from foreign currency loans relating to the acquisition construction or production
of assets eligible for capitalization shall be included in the costs of assets eligible for capitalization; other exchange
differences shall be included in the current financial expenses.ii. Accounting principles for handling foreign currency non-monetary items
For foreign currency non-monetary items measured at historical cost the Company shall convert them at the spot
exchange rate (middle rate) prevailing on the transaction date with their amounts in functional currency remaining
unchanged and no exchange differences incurred.For an inventory that is measured at the lower of its costs or its net realizable values if the net realizable value is
determined in foreign currency the Company when determining the value of the inventory at the end of the period
shall firstly convert the net realizable value into functional currency and then compare it with the inventory cost
reflected in functional currency.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.
(2) Accounting treatment method for translation of foreign currency statements
a) The Company shall translate the financial statements of foreign operations in accordance with the following
methods:
i. Assets and liabilities in the balance sheets shall be translated at the spot exchange rates on balance sheet date.
141Shareholders’ equity items except for the item of "undistributed profits" are translated at the spot exchange rates
on the dates when the transactions occur.ii. 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.The translation of comparative financial statements is handled by reference to the above approach.b) The Company shall translate the financial statements of foreign operations that are in virulent inflation economy
in accordance with the following methods:
i. The Company restates the items in the balance sheet by using the general price index and restates the items in
the income statement by using the changes in general price index and then converts those items at the spot
exchange rate on the latest balance sheet date.ii. Where the foreign operations are no longer in virulent inflation economy the Company ceases to restate the
financial statements and converts the financial statements restated according to the price level on such cease.c) Where the Company disposes of an overseas business it shall transfer the foreign currency financial statements
exchange difference which relates to the business disposed of and is presented under the items of the other
comprehensive income in the balance sheet from the other comprehensive income item to the gain or loss on
disposal for the current period. 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.
11. Financial Instruments
Financial instruments are the financial asset financial liability or (equity) instrument will be recognised when the
Company became one of the parties under a contract.
(1) Classification of financial instruments
a) Classification of financial assets
According to the company's business model of managing financial assets and the characteristics of contract cash
flow of financial assets financial assets are classified into the following three categories: financial assets measured
at amortized cost; financial assets measured at fair value through other comprehensive income (including financial
assets directly designated to be measured at fair value through other comprehensive income); and financial assets
measured at fair value through the current profit or loss.b) Classification of financial liabilities
The Company classifies the financial liabilities into the following two categories: financial liabilities measured at
fair value through current profit and loss (including financial liabilities held for trading and financial liabilities
directly designated to be at fair value through current profit and loss); and financial liabilities measured at
amortized cost.
(2) Recognition basis and measurement method of financial instruments
a) Recognition basis of financial instruments
When the Company becomes a party to a financial instrument it shall recognize a financial asset or financial
liability.b) Measurement method of financial instruments
i. Financial assets
Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through profit
or loss relevant transaction costs are directly recognized in profit or loss for the period. For other categories of
142financial assets relevant transaction costs are included in the amount initially recognized. Accounts receivable or
notes receivable arising from sales of goods or rendering services and without significant financing component or
the company decided not to consider financing elements for less than one year are initially recognized based on
the amount of consideration expected to be entitled to receive according to Accounting Standard for Business
Enterprises No. 14 - Revenue.* Financial assets measured at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method after initial
recognition. Gains/losses on financial assets that are measured at amortized cost and are not a part of any hedging
relationship shall be recognized in profit or loss when the financial asset is derecognised or reclassification or
amortized using the effective interest method or recognized the impairment allowance.* Financial assets measured at fair value through other comprehensive income
These assets are subsequently measured at fair value after initial recognition. Except impairment foreign exchange
gains and losses interest income calculated using the effective interest method are recognized in profit or loss;
other gains and losses are recognized in other comprehensive income. On derecognition gains and losses
accumulated in other comprehensive income are transferred to profit or loss.In addition the company designated some non-tradable equity instruments as financial assets measured at fair
value through other comprehensive income; the company shall recognize the relevant dividend income of such
financial assets into the current profit and loss and recognize the change of fair value in other comprehensive
income. On derecognition the accumulated gains/losses previously recognized in other comprehensive income
shall be transferred to retained earnings and not be recognized in current profit and loss.* Financial assets measured at fair value through profit or loss
The Company classifies the financial assets except for financial assets measured at amortized cost or at fair value
through other comprehensive income as mentioned above into the financial assets measured at fair value through
profit or loss for the current period. In addition the company may designate some financial assets as financial
assets measured at fair value through profit or loss for the current period upon the initial recognition to eliminate
or significantly reduce accounting mismatch. For such financial assets the company adopts the fair value for
subsequent measurement and changes in fair value are recognized in the profit or loss for the current period.ii. Financial liabilities
Financial liabilities shall be classified into financial liabilities measured at fair value through profit or loss for the
current period upon initial recognition and other financial liabilities. For financial liabilities measured at fair value
through profit or loss relevant transaction costs are directly recognized in the current profit and loss and the
relevant transaction costs of other financial liabilities are recognized in the initial recognition amount.* Financial liabilities measured at fair value through profit or loss
Financial liabilities held for trading (including derivatives of financial liabilities) shall be subsequently measured at
the fair value. Except for those related to hedge accounting changes in the fair value shall be recognized in the
profit or loss of the current period. For financial liabilities designated to be at fair value through profit or loss fair
value changes caused by the Company's own credit risk changes which is recognized in other comprehensive
income when the liability is derecognition the accumulated change in its fair value caused by the change in its
own credit risk recognized in other comprehensive income is transferred to retained earnings the remaining
changes of fair value is record in profit of loss. If the above treatment of the impact of the change in the credit risk
of such financial liabilities will cause or expand the accounting mismatch in the profit and loss the company will
record all the gains/losses of such financial liabilities (including the amount affected by fair value changes in
enterprise's own credit risk) into the current profit and loss.* Financial liabilities measured at amortized cost
143Except financial liabilities that arise when a transfer of a financial assets does not qualify for derecognition or when
the continuing involvement approach applies security contract are classified as financial liabilities measured by
amortized cost or financial subsequently measurement at amortized cost and record the profits or losses
guarantee contracts recognition or amortization into the current profit and loss.
(3) Financial assets transfer
If the Company transfers substantially all the risks and rewards of ownership of the financial asset to the transferee
the Company derecognizes the financial asset the rights and obligations arising or retained in the transfer shall be
separately recognized as its assets or liabilities; if the Company retains substantially all the risks and rewards of
ownership of the financial asset it continues to recognize the transferred financial assets. If the Company neither
transfers nor retains substantially all the risks and rewards of ownership of the financial asset it is accounted for
as follows: if the Company has not retained control it derecognizes the financial asset the rights and obligations
arising or retained in the transfer shall be separately recognized as its assets or liabilities; and if the Company has
retained control it continues to recognize the financial asset to the extent of its continuing involvement in the
transferred financial asset and recognizes the relevant liability.Where transfer of financial assets qualify for derecognition entirety the difference between the following two
amounts will be included into current profit or loss: The book value measured at the date of derecognition; and
The sum of the consideration for the derecognition part and the portion of derecognition corresponding to the
accumulated amount of the changes in fair value originally and directly included in OCI (involving the situation
where the financial asset transferred is a debt instrument investment measured at fair value and recognized in
other comprehensive income). The Company transferred the partial transfer of financial assets which qualify for
derecognition the overall carrying amount of the transferred financial asset shall be apportioned according to
their respective relative fair value between the portion of derecognition and the remaining.
(4) Derecognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been discharged the company shall remove
financial liability (or part thereof) and the company shall recognize the difference between its book value and the
consideration paid (including any non-cash assets transferred or liabilities assumed) in the current profit and loss.
(5) Offsetting of financial assets and liabilities
Financial assets and financial liabilities shall be shown separately in the balance sheet and shall not be offset
against each other. If the following conditions are met at the same time the net value offset each other after
amount listed in the balance sheet:
The company has offset the confirmed number of legal rights of financial assets and financial liabilities and this
kind of legal rights is the executable; and
The company plans to net or cash at the same time when the financial assets and liquidation of the financial liability.If the transfer of financial assets does not meet the conditions for derecognition the transferor shall not offset the
transferred financial assets and related liabilities.
(6) Equity instruments
Equity instruments are contracts that prove ownership of the residual interest in the company’s assets after
deducting all liabilities. The issuance (including refinancing) repurchase sale or cancellation of the equity
instruments of the company shall be treated as changes in the equity. The company does not recognize changes in
the fair value of equity instruments and the transaction fees related to the equity transactions shall be deducted
from the equity. Where the equity instrument of the company distributes dividends during the term of its existence
it shall be treated as profit distribution and the total amount of shareholders' equity will not be affected by the
stock dividends issued.
(7) Method for determining the fair value of financial assets and financial liabilities
144Where there is an active market for a financial instrument the company shall determine its fair value by quoting
in the active market. Where there is no active market for the financial instrument the company shall determine
its fair value by means of valuation technology. In valuation the company uses valuation techniques applicable in
the current situation and supported by sufficient available data and other information to select input values
consistent with the characteristics of assets or liabilities considered by market participants in transactions of
related assets or liabilities and gives priority to relevant observable input values as far as possible. Use
unobservable inputs only when relevant observable inputs cannot be obtained or are impracticable to obtain.Upon initial recognition the fair value of financial assets or financial liabilities is determined by the quoted price
of the same assets or liabilities in the active market or other valuation technology that only uses observable market
data the Company defers the difference between the fair value and the transaction price. After initial recognition
the Company recognizes the deferred difference as gain or loss in the corresponding accounting period according
to the changes of a certain factor in the corresponding accounting period.
(8) Impairment of Financial Assets
Based on the expected credit loss the Company shall recognize the impairment loss on financial assets measured
at amortized cost debt instrument investment at fair value through other comprehensive income.a) The approach of recognition loss allowance for expected credit losses
Considering the reasonable and valid information such as past events current conditions and forecast of future
economic conditions and weighted by the risk of default the Company calculates the probability weighted amount
of the present value of the difference between the cash flow receivable under the contract and the expected cash
flow to be received and confirms the expected credit loss.i. General approach
The Company assess whether the credit risk of financial instruments in different stages at each reporting date has
increased significantly. If the financial instruments' credit risk have not increased significantly after initial
recognition it will be included in phase 1 and the Company measures the loss allowance for those instruments at
an amount equal to 12-month expected credit losses; if the financial instruments' credit risk have increased
significantly but without objective evidence for impairment after initial recognition it will be included in phase 2
and the Company measures the loss allowance of those instruments at an amount equal to lifetime expected credit
losses; if the financial asset that is evidently credit-impaired after initial recognition it will be included in phase 3
and the Company measures the loss allowance of those financial instruments at an amount equal to lifetime
expected credit losses. For financial instruments with low credit risk on the balance sheet data (e.g. fixed deposits
in commercial banks with higher credit rating financial instruments with external credit rating above "investment
grade") the Company assumes that the credit risk has not increased significantly since the initial recognition and
chooses to measure the loss provision according to the expected credit loss in the next 12 months.ii. Simplified approach
For accounts receivable contract assets lease receivables and Income-related notes receivable that do not contain
significant financing components or do not consider the financing components in the contracts for no more than
one year old the company adopts simplified approach and shall always measure the loss allowance at an amount
equal to lifetime expected credit losses
For accounts receivable contract assets and lease receivables are defined by the Accounting Standards for Business
Enterprises No. 21-Leasing that include significant financing components the company recognizes a loss allowance
equal to the lifetime expected credit losses.b) Criteria for determining whether credit risk has increased significantly subsequent to the initial recognition
If the probability of default of a financial asset in lifetime as determined on the balance sheet date is significantly
higher than the probability of default in lifetime as determined at the initial recognition the credit risk of the
145financial asset increases significantly.
No matter what method the Company is applied to evaluate whether credit risk has increased significantly it
usually inferred that the credit risk of the financial instrument has increased significantly if the contract payment
delay exceeds 30 days unless the Company can get the reasonable and valid information at reasonable cost to
evidence that the credit risk of the financial instrument has not increased significantly since the initial recognition.Except in special cases the Company shall use the change of default risk in the next 12 months as a reasonable
estimate of the change of default risk in lifetime to determine whether the credit risk has increased significantly
to the initial recognition
c) Approach of assessing expected credit risk on a portfolio basis and determine basis
The company evaluates credit risk individually for the credit risk of significantly different notes receivables
accounts receivables contract assets lease receivables and other receivables with the following characteristics.Such as: accounts receivables in dispute with the other party or involving litigation or arbitration; notes receivables
accounts receivables that have shown clear signs that the debtor is likely to be unable to meet repayment
obligations.When it is impossible to evaluate the expected credit loss information of an individual financial asset at a
reasonable cost the Company divides the receivables into several portfolio according to the credit risk
characteristics and calculates the expected credit loss on collective basis. The basis for determining the portfolio
is as following:
Name Approach of assessing expected credit risk
Bank acceptance bill For notes receivables divided into portfolio the bank acceptance bill and
Portfolio; commercial acceptance bill refer to the historical credit loss experience and
Commercial combines the current situation and the forecast of future economic situation
acceptance bill respectively. The Company calculates the expected credit loss based on the
Portfolio default risk exposure and the expected credit loss rate of the whole duration.For accounts receivables divided into risk portfolio the Company refers to the historical
credit loss experience and combines the current situation and the forecast of future
Risk Portfolio economic situation and prepares a comparison table between overdue ages of accounts
receivables and expected credit loss rate of the whole
duration to calculate the expected credit loss.The Company classifies items without significant recovery risk receivables as other
Other Portfolio portfolio such as items from subsidiaries in the consolidation scope tax refunds
receivable collection and withholding of funds. There is no provision for
bad debt for them.For Lease receivables classified into combinations the expected credit loss is
Lease receivables calculated through the default risk exposure and the expected credit loss rate of
the whole duration according to the historical credit loss experience the current
situation and the forecast of the future economic situation
The Company shall take the provision or transfer the loss into the current profit and loss. For the debt instrument
investment measured at fair value through other comprehensive income the Company shall adjust other
146comprehensive income while recording the impairment loss or gain into the current profit and loss.
12. Contract assets
A contract asset is a company's right to receive consideration for goods transferred to a customer and this right
depends on factors other than the passage of time. The company's contract assets mainly include completed and
unsettled assets and quality guarantee deposit. The contract assets and contract liabilities under the same contract
shall be shown on a net basis and the contract assets and contract liabilities under different contracts shall not be
set off.For the determination method and accounting treatment method of expected credit loss of contract assets refer
to "Impairment of Financial Assets" in Note 10 (8).
13. Inventory
(1) Classification of inventory
Inventories are classified as: raw materials semi-finished goods stock commodities consigned processing
materials goods in progress and revolving materials (including low-cost consumables) etc.Measurement method of dispatched inventories
Dispatched materials and stock commodities are accounted for by using the weighted average method.
(2) Basis to determine net realizable values of inventories and method of provision for
stock obsolescence
a) Determination basis of net realizable values of inventories
i. In normal operation process for merchandise inventories held directly for sale including stock commodities
(finished goods) and materials for sale their net realizable values are determined at their estimated selling prices
minus their estimated selling expenses and relevant taxes and surcharges.ii. In normal operation process for material inventories that need further processing their net realizable values
are determined at the estimated selling prices of finished goods minus estimated costs to completion estimated
selling expenses and relevant taxes and surcharges.iii. For inventories held to execute sales contract or service contract their net realizable values are calculated on
the basis of contract price. If the quantities of inventories specified in the sales contracts are less than the
quantities held by the Company the net realizable value of the excess portion of inventories shall be based on
general selling prices.iv. The materials held for production shall be measured at cost if the net realizable value of the finished products
is higher than the cost. If a decline in the value of materials shows that the net realizable value of the finished
products is lower than the cost the materials shall be measured at the net realizable value.b) Provision for stock obsolescence
i. Provisions for stock obsolescence are made at the lower of costs or net realizable values on a single basis.ii. For inventories with large quantity and relatively low unit prices the provision for stock obsolescence shall be
made on the ground of the categories of inventories.iii. consolidated accruals
For inventories that are related to product lines produced and sold in the same region share the same or similar
ultimate use or purpose and are difficult to be measured separately from other items a consolidated provision
for obsolete stock is made.
(3) Inventory system
The Company adopts perpetual inventory system and takes physical inventory counts on a regular basis.
(4) Amortization method of revolving materials
a) Amortization method of low-cost consumables:
Low-cost consumables are amortized in full at once.
147b) Amortization method of packaging materials
Packing materials are amortized in full at once when fetched for use by the Company.
14. Assets held for sale
(1) Assets held for sale
a) Scope of a non-current asset held for sale and a disposal group
A non-current asset or disposal group is classified as held for sale when a company recovers its carrying value
primarily through the sale (including the exchange of non-monetary assets of a commercial nature) rather than
through the continuous use of such a group.A disposal group is a group of assets that are disposed as a whole through sales or other ways in one transaction
and liabilities directly related to these assets delivered in the transaction.b) Recognition criteria of a non-current asset held for sale and a disposal group
The Company recognizes its component (or non-current asset) that satisfies the following conditions as assets held
for sale:
i. 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;
ii. 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. If it requires shareholders’
approval or supervisors’ approval according to regulations it has already received approval from the general
meeting of stockholders or relative authority institution.c) Accounting treatment and presentation of a non-current asset held for sale and a disposal group
The non-current asset or disposal group is first classified as held for sale the Company should measure the non-
current assets or assets and liabilities made up of disposal group in accordance with relevant accounting standards.When the Company measure a non-current asset or disposal group held for sale initially or re-measure at balance
sheet date subsequently the impairment loss should be recognized if the book value is higher than fair valueless
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 impairment of disposal group 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.No matter the asset is classified as individual asset held for sale or asset belonging to disposal group the asset is
presented as current assets under “assets held for sale” item; liabilities related to the asset transferred in the
disposal group held for sale is presented as current liabilities under “liabilities held for sale” item in the balance
sheet.The Company is committed to a sale plan involving loss of control of subsidiary shall classify all the assets and
liabilities of that subsidiary held for sale in consolidated balance sheets when the above criteria are met regardless
of whether the Company retain a non–controlling interests in its former subsidiary after the sale. In the balance
sheets of parent company the investment should be classified as held for sale in full. In the consolidated financial
statements all assets and liabilities of the subsidiaries are classified as held for sale.
(2) Termination of business operations
a) Criteria for determining termination of operations
Termination means any separate part which satisfies one of the following conditions and which has been disposed
of or classified as being held for sale:
i. The component represents a separate principal business or a separate principal area of operation;
148ii. The component is part of an associated plan to dispose of a separate principal business or a separate principal
operating area;
iii. The component is a subsidiary acquired specifically for resale.b) Presentation of discontinued operations
The Company separately presents the profit or loss from continuing operations and discontinued operations in the
income statement. For non-current assets or disposal groups held for sale that do not meet the definition of
discontinued operations their impairment losses reversal amounts and disposal gains or losses are presented as
part of the profit or loss from continuing operations. Impairment losses reversal amounts operating results and
disposal gains or losses related to discontinued operations are presented as part of the profit or loss from
discontinued operations.
15. Long-term equity investment
(1) Recognition of the initial investment costs of long-term equity investments
a) For long-term equity investments from business combinations the initial investment cost shall be recognized in
accordance with the provisions mentioned in Notes 3(5). Accounting Method for Long-term Equity Investment
from Business Combinations under Common Control and Business Combination not under Common Control.b) Except for the long-term equity investments arising from business combinations those obtained by other means
shall recognize their initial investment costs in accordance with the following provisions:
i. For the long-term equity investments obtained by cash paid the Company recognizes the actual purchase price
as the initial investment costs. The initial investment costs include directly related expense taxes and other
necessary expenses of obtaining long-term equity investments.ii. For the long-term equity investments acquired by the issue of equity securities (equity instrument) the initial
investment cost shall be the fair value of the equity securities (equity instrument) issued. If the fair value of the
long-term equity investment obtained is more reliable than equity securities issued the initial investment cost
shall be the fair value of the long-term equity investment made by the investors. The cost directly attributable to
the issue of equity securities (equity instrument) including fees commissions etc. write-downs premium price of
the issue if premium price of the issue is insufficient write- downs surplus reserve and undistributed profit in turn.For the long-term equity investments acquired by the issue of debt securities (debt instrument) reference through
the issuance of equity securities (equity instrument).iii. 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.iv. 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.Expenses taxes and other necessary expenses incurred to the Company and that are directly related to the
obtainment of long-term equity investments shall be recognized as the initial investment costs of long-term equity
investments.For long-term equity investments obtained by the Company by any means cash dividends or profits declared but
not yet distributed in the actual payments or the consideration actually paid for the investment shall be separately
accounted as dividends receivable and shall not constitute the costs of long- term equity investments.
149(2) Subsequent measurement and recognition of gains and losses of long-term equity investments
a) Long-term equity investment measured under cost method
i. If accompany can control an investee namely investment in subsidiary the long-term equity investment shall
be measured under the cost method.ii. For long-term equity investments accounted at the cost method except cash dividends or profits declared but
not yet distributed which are included in the actual payments or the consideration actually paid for the investment
the cash dividends or profits declared by the investee shall be recognized as the investment income irrespective
of net profits realized by the investee before investment or after investment.b) Long-term equity investments measured under the equity method
i. For the long-term equity investment which has joint control or significant influence over the investee the equity
method is adopted for accounting.ii. 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 and at the same time the adjustment will be made to the initial costs of the
long-term equity investments.iii. After obtaining the long-term equity investments 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 fall into the scope of losses on assets
impairment 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 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
150after 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.
(3) Basis for judgment of common control or significant influence over the investee
a) Basis for judgment of common control over investee
Common control is the contractually agreed sharing of control of an arrangement which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. Relevant activities of
an arrangement usually include selling and purchasing of goods or services managing financial assets acquiring
or disposing of assets researching and developing activities and financing activities. A joint venture is a joint
arrangement whereby the joint ventures have rights to the net assets of the arrangement. The parties have rights
to the assets and obligations for the liabilities relating to the arrangement which is a joint operation but not a
joint venture.b) Basis for judgment of significant influence over investee
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. Where
the Company is able to exert significant influence over the investee the investee is its associate.
16. 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:
a) It is probable that the economic benefits relating to the fixed assets will flow into the Company;
b) The cost of the fixed assets can be measured reliably.
(2) Depreciation of fixed assets
Estimated Estimated
useful life residual value Annual depreciation
Category Depreciation method
(Yr) rate (%) rate (%)
Buildings Straight-line method 20 ~25 5 3.80 ~4.75
And constructions
Machinery equipments Straight-line method 10 5 9.50
Transportation Straight-line method 5 9.50
equipments 10
Other equipments Straight-line method 8 5 11.88
17. Construction in progress
(1) Categories of constructions in progress
Constructions in progress are accounted on individual project basis.
(2) Criteria and commencement of conversion of constructions in progress into fixed assets
The book entry values of the fixed assets are stated at total expenditures incurred before construction in progress
reaches the working condition for their intended use. For self- operating projects total expenditures are measured
according to the expenditures of direct materials direct labor direct measurement mechanical construction costs
and other expenditures; for contracting projects total expenditures are measured according to project costs
151payable and other expenditures. Borrowing costs incurred before the projects that are undertaking with borrowing
costs reach working condition for their intended use and meeting the condition for capitalization shall be
capitalized and included into the costs of construction in progress.For construction in progress that has reached working condition for intended use but for which the completion of
settlement has not been handled it shall be transferred into fixed assets at the estimated value according to the
project budget construction price or actual cost etc. from the date when it reaches the working condition for
intended use and the fixed assets shall be depreciated in accordance with the Company’s policy on fixed asset
depreciation; adjustment shall be made to the estimated value based on the actual cost after the completion of
settlement is handled but depreciation already provided will not be adjusted.
18. Borrowing costs
(1) Scope of borrowing costs
The Company’s borrowing costs include interest thereon amortization of discounts or premiums ancillary
expenses and exchange differences incurred from foreign currency loan etc.
(2) Recognition principles of capitalization of borrowing costs
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into relevant asset costs; other
borrowing costs should be recognized as costs according to the amount incurred and be included into the current
profit and loss.Assets eligible for capitalization include fixed assets investment properties inventories and other assets which
may reach the working condition for their intended use or sale by acquisition and construction or production
activities for quite long time.
(3) Recognition of capitalization period of borrowing costs
a) Recognition of commencement of capitalization of borrowing costs
Borrowing costs may be capitalized when asset disbursements have already been incurred borrowing costs have
already been incurred and the acquisition and construction or production activities which are necessary to prepare
the assets for their intended use or sale have already been started. Among which asset disbursements include
those incurred by cash payment the transfer of non-cash assets or the undertaking of interest-bearing debts for
acquiring and constructing or producing assets eligible for capitalization.b) Recognition of period of capitalization suspension of borrowing costs
If the acquisition and construction or production activities of assets eligible for capitalization are interrupted
abnormally and this condition lasts for more than three months the capitalization of borrowing costs should be
suspended. The borrowing costs incurred during interruption are charged to profit or loss for the current period
and the capitalization of borrowing costs continues when the acquisition and construction or production activities
of the asset resume. If the interruption is necessary for the acquisition and construction or production to prepare
the assets for their intended use or sale the capitalization of borrowing costs should continue.c) Recognition of period of 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 all parts of the acquired and constructed or produced assets are completed each part may be used or sold
externally in the process of continuous construction of other parts and the necessary acquisition or production
152activities have been substantially completed to make the part of assets reach the working condition for their
intended use or sale the capitalization of borrowing costs related to the part of assets should be ceased; if all parts
of the acquired and constructed or produced assets are completed 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.
(4) Recognition of capitalized amounts of borrowing costs
a) Recognition of capitalized amounts of interest on borrowing costs
During the period of capitalization capitalized amount of the interest of each accounting period (including
amortization of discounts or premiums) shall be recognized according to the following provisions:
i. 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.ii.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. The capitalization rate is calculated by weighted average interest rate of general loans.iii. 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.iv. 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.b) Recognition of capitalized amounts of auxiliary expenses of loans
i.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.ii. Auxiliary expenses incurred from general loans shall be recognized as costs according to the amounts incurred
when they occur and included in the current profit and loss.c) Recognition of capitalized amount of exchange differences
During the period of capitalization exchange differences incurred from the principal and interest of special foreign
currency loans should be capitalized and included in the costs of the assets eligible for capitalization.
19. Intangible assets
(1) Useful life and the basis for its determination estimation amortization methodology or review procedures
a) Initial measurement of intangible assets
i. Initial measurement of outsourcing intangible assets
Costs of outsourcing intangible assets shall be recognized according to the purchase price related taxes and other
expenses directly attributed to reaching the working condition for their intended use. The cost of intangible assets
shall be recognized based on present value of purchase price when deferred payment over normal credit
conditions with financial nature. The difference between actual payment and purchase price except for capitalized
amount shall be included into the current profit and loss in the period of credit.
153ii. Initial measurement of internally researched and developed intangible assets
Costs of internally researched and developed intangible assets shall be recognized according to the total expenses
during the period after the assets are eligible for capitalization and before they reach the intended purpose and
the expenses that have been included in the previous periods shall no longer be adjusted.Expenses on the research phase of internally researched and developed intangible assets shall be included in the
current profit and loss when they incur; those on the development phase ineligible for capitalization shall be
included in the current profit and loss; those eligible for capitalization shall be recognized as intangible assets. If it
is unable to distinguish expenditure on the research phase and expenditure on development phase the research
and development expenditures shall be all included in the current profit and loss.b) Subsequent measurement of intangible assets
The useful lives of intangible assets are analyzed on acquisition. Intangible assets obtained by the Company are
divided into intangible assets with limited useful lives and intangible assets with indefinite useful lives.i. Subsequent measurement of intangible assets with limited useful lives
The intangible assets with limited useful lives are amortized on a straight-line basis when they reach intended use
over their useful lives with no residual value reserved. Amortizations of intangible assets are usually recorded into
the current profit and loss; where the economic benefits of an intangible asset are realized by the products or
other assets produced thereafter the amortizations are recorded into the costs of the relevant assets.Category estimated useful life estimated net residual value rate and annual amortization rate of intangible assets
are shown below:
Category of intangible Estimated useful life Estimated net residual Annual amortization
assets (years) value rate (%) rate (%)
Land use right 50 0 2.00
Trademark Right 7-10 0 14.29-10.00
Computer software 10 0 10.00
Non-Patent Technology 10 0 10.00
The useful lives and amortization methods of intangible assets with limited useful lives on the balance sheet date
shall be reviewed.ii. Subsequent measurement of intangible assets with indefinite useful lives
Intangible assets with indefinite useful lives are not amortized in the holding period but impairment tests are
performed at the end of each year.c) Estimates of useful lives of intangible assets
i. For intangible assets from any contractual right or other statutory rights their useful lives shall be recognized
according to the period no more than that of the contractual or other statutory rights; when the contractual right
or other statutory rights contract is extended due to renewal of contracts and there is evidence that the renewal
of the Company does not need large costs the renewal period shall be included into the useful lives.ii. Where the contract or the law fails to specify the useful lives the Company integrates situations in all aspects
and determine the period of intangible assets that can bring economic benefits for the Company by hiring the
relevant experts to demonstrate or comparing with the situation of the industry as well as referring to the
Company’s historical experience or otherwise.iii. If it is still unable to reasonably determine that intangible assets may bring economic benefits for the Company
according to the above methods the intangible assets are taken as intangible assets with indefinite useful lives.
(2) The scope of R&D expenditures and the related accounting treatment
a) Specific criteria for delineating the research and development phases of in-house R&D projects
i. The scope of R&D expenditures
154It usually includes research and development staff salary expense direct input expense depreciation and long-
term amortization expense design expense equipment commissioning expense amortization expense for
intangible assets commissioned external research and development expense and other expense including
expensed research expense and capitalized development expenditures.ii. Specific criteria for delineating the research and development phases
According to the actual situation of the research and development the Company classifies the research and
development project into that on the research phase and that on the development phase.* Research stage
Research stage is the stage when creative and planned investigations and research activities are conducted to
acquire and understand new scientific or technological knowledge.* Development stage
Development stage is the stage when the research achievements or other knowledge are applied to a plan or
design prior to the commercial production or use so as to produce any new or substantially improved material
device or product.Expenditure of an internal research and development project on the research phase shall be included in current
profit and loss when it occurs.b) Specific criteria for qualifying expenditure on the development phase for capitalization
Expenditure on the development phase of an internal research and development project shall be recognized as
intangible assets only when the following conditions are simultaneously satisfied:
i. It is technically feasible to finish intangible assets for use or sale;
ii. It is intended to finish and use or sell the intangible assets;
iii. The usefulness of intangible assets to generate economic benefits shall be proved including being able to prove
that there is a potential market for the products manufactured by applying the intangible assets or there is a
potential market for the intangible assets themselves or the intangible assets will be used internally;
iv. It is able to finish the development of the intangible assets and able to use or sell the intangible assets with
the support of sufficient technologies financial resources and other resources;
v. The expenditure attributable to the intangible asset during its development phase can be measured reliably.
20. Non-current assets impairment
If there are impairment indicators of long-term equity investment investment property measured at cost model
fixed assets construction in progress right-of-use assets intangible assets with indefinite useful lives and other
long-term assets at balance sheet date impairment test should be performed. If the result of impairment test
shows that recoverable amount is less than its book value the difference should be provided for impairment and
recorded into impairment loss. 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. Provision for impairment is
calculated and recognized on the basis of 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. Asset group is the minimum asset group which can generate cash inflow separately.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.When the Company performs impairment test book value of goodwill arising from business combination should
be amortized to relevant asset group using the reasonable method from the date of purchase. If it is difficult to
amortize it to relevant asset group amortize it to relevant asset group portfolio. Apportion book value of goodwill
to relevant asset group or asset group portfolio according to the proportion of fair value of asset group or asset
155group portfolio accounting for total amount of relevant asset group or asset group portfolio. If fair value is difficult
to be measured reliably amortize according to the proportion of book value of asset group or asset group portfolio
accounting for total amount of relevant asset group or asset group portfolio. When perform impairment test for
asset group or asset group portfolio including goodwill if there is impairment indicator of asset group or asset
group portfolio relevant to goodwill perform impairment test for asset group or asset group portfolio without
goodwill firstly calculate its recoverable amount compare with relevant book value and recognize impairment loss.Then perform impairment test for asset group or asset group portfolio including goodwill compare book value of
the asset group or asset group portfolio (including proportional book value of goodwill) and its recoverable amount
if recoverable amount of relevant asset group or asset group portfolio is less than its book value recognize
impairment loss of goodwill.Once impairment loss stated above is recognized reversal is not allowed in the subsequent accounting periods.
21. Long-term deferred expenses
(1) Scope of long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred but will be born in this
period and in the future with an amortization period of over 1 year (exclusive).
(2) Initial measurement of long-term deferred expenses
Long-term deferred expenses shall be initially measured according to the actual costs incurred.
(3) Amortization of long-term deferred expenses
Long-term deferred expenses are amortized using the straight-line method over the beneficial period.
22. Contract liability
Contract liabilities refer to the obligation of a company to transfer commodities to customers for consideration
received or receivable from customers. If the customer has paid the contract consideration or the company has
obtained an unconditional right to receive the goods prior to the company's transfer of the goods to the customer
the company will show the amount received or receivable as a contractual liability in which earlier the customer
actually pays the amount or the amount becomes due. The contract assets and contract liabilities under the same
contract shall be shown on a net basis and the contract assets and contract liabilities under different contracts
shall not be set off.
23. Employee benefits
(1) Accounting treatment of short-term benefits
Short-term benefits are the benefits that the Company expect to pay in full within 12 months after the reporting
period in which the employee provided relevant services excluding the compensation for employment
termination.Short-term benefits include: wage bonus allowance and subsidy; employee welfare social securities including
health insurance and work injury insurance; housing common reserve fund; union expenditure and employee
training expenditure; short-term paid leave; short-term profit-sharing; non-monetary welfare and other short-term
benefits.Actual 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 profits and losses or the
cost relevant assets.
(2) Accounting treatment of post-employment benefits
The defined contribution plan of the Company includes payments of basic pension unemployment insurance
156annuity etc. that accord to relevant provisions. The amount which the Company deposit on balance sheet date in
exchange for the service of the employee during the accounting period will be recognized as employee benefits
liability and shall be included into the profit or loss for the current period.
(3) Accounting treatment of termination benefits
Termination benefits are the benefits the Company provide to the employee when the Company terminates the
employment before labor contract expires or encourages voluntary resignation. 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.
(4) Accounting treatment 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. At the end of reporting period the company will recognize the employee
benefits cost from other long-term employee benefits as the following components:
a) Service cost;
b) Net amount of interest from other long-term employee benefits net liabilities or assets;
c) Changes from recalculation of the net liabilities or assets from other long-term employee benefits.In order to simplify related accounting procedure the net amount of the above subjects shall be included into
current profit or loss or the cost of relevant assets.
24. Provisions
(1) Recognition principles of provision
When obligations related to external guarantees pending actions or arbitration product quality assurance
onerous contracts reorganization and contingencies satisfy the following three conditions they shall be
recognized as provision:
a) This obligation is a present obligation of the Company;
b) The settlement of such obligation is likely to result in outflow of economic benefits from the Company; and
c) The amount of the obligation can be measured reliably.
(2) Measurement method of provision
The amount of provision is measured at the best estimate of expenses required for contingencies.a) If there is continuous range for the necessary expenses and probabilities of occurrence of all the outcomes
within this range are equal the best estimate shall be determined at the median of the range.b) The best estimate shall be accounted as follows in other cases:
i. If the contingency involves a single item the best estimate shall be determined at the most likely outcome.ii. If the contingency involves two or more items the best estimate should be determined according to all the
possible outcomes with their relevant probabilities.
25. Share-based payment
Share-based payment is classified as equity-settled share-based payment and cash- settled share-based payment.
(1) Accounting treatment on the date of granting
The Company does not make any accounting treatment on the date of granting neither for equity-settled share-
based payment nor for cash-settled share-based payment except that the right of the share-based payment can
be exercised immediately.
157(2) Accounting treatment on each balance sheet date within vesting period
On each balance sheet date within vesting period the Company records the service provided by employees or
other party as cost and expense and recognizes equity or liability at the same time.For the share-based payment attached with market conditions once employees satisfy all conditions except
market conditions the service acquired can be recognized. If the performance condition is not market condition
the estimate for previous periods can be revised when the vesting period is determined and subsequent
information shows that the estimate for conditions of exercising rights requires adjustments.For equity-settled share-based payment related with employees charge the service into costs expenses and
capital reserve (other capital reserve) using the fair value of the equity instrument on the date of granting. The
subsequent changes of fair value should not be recognized. For cash-settled share-based payment related with
employees recalculate fair value of the equity instrument at each balance sheet date and recognize related costs
expenses and employee benefit payable.At each balance sheet date within vesting period the Company makes the best estimate and revises the number
of equity instrument that can be exercised according to the latest subsequent information such as change of
number of employees who can exercise rights.Use fair value and the number of equity instrument stated above to calculate cumulative amount of costs and
expenses that should be recognized by this period and then deduct the cumulative amount already recognized in
the previous period. The balance is the amount of cost and expense that should be recognized in the current period.
(3) Accounting treatment after the date when rights can be exercised
For equity-settled share-based payment after the date when rights can be exercised no adjustment shall be made
to the total amount of the cost expense and equity already recognized. The Company recognizes share capital and
capital premium and carry forward the capital reserve (other capital reserve) recognized within vesting period at
the he dates when rights can be exercised.For cash-settled share-based payment the Company shall not recognize costs and expenses. The change of fair
value of liability (employee benefit payable) should be recorded into current profit or loss (profit or loss arising
from fair value changes) after the date when rights can be exercised.
(4) Accounting treatment for repurchasing shares regarding employee option incentive.
When the Company encourages employees in the form of repurchasing shares total expenditure of repurchasing
shares is regarded as treasury stock and registered for check. At each balance sheet date within vesting period
charge the employee service acquired into costs and expenses and meanwhile increase capital reserve (other
capital reserve) using fair value of the equity instrument at the date of granting. When the employee exercises
the right to buy the Company’s shares and receives the amount write off the cost of treasury stock delivered to
the employee and the cumulative amount of capital reserve (other capital reserve) recognized within the vesting
period meanwhile the balance adjusting capital reserve (share capital premium).
26.Revenue
Accounting policies adopted in revenue recognition and measurement
(1) Principle and measurement method of revenue recognition
a) Revenue recognition
The Company has fulfilled its contractual performance obligation to recognize revenue when the customer
acquires control of the relevant goods. On the beginning date of the contract the Company evaluates the contract
identifies the individual performance obligations contained in the contract and determines whether the individual
performance obligations are performed within a certain period of time or at a certain point. Then the Company
158recognizes the revenue when the individual performance obligations are fulfilled.
b) Revenue measurement
If the contract contains two or more performance obligations the Company shall on the commencement date of
the contract apportion the transaction price to each single performance obligation according to the relative
proportion of the separate selling price of the commodity or service committed by each single performance
obligation and measure the revenue according to the transaction price apportioned to each single performance
obligation. In determining the transaction price the Company will take into account the impact of variable
consideration material financing elements existing in the contract non-cash consideration and customer
consideration payable and it is assumed that the goods will be transferred to the customer in accordance with the
provisions of the existing contract and that the contract will not be canceled renewed or changed.
(2) Specific revenue recognition policies
a) Sales contract
The Company's sales products promotional products and other goods belong to the performance obligations
performed at a certain point.The Company recognizes the sales revenue when the goods are delivered to the customer and the control of the
goods is transferred. For export sales business the Company recognizes the revenue after the goods are delivered
and the customs clearance procedures are completed.According to the marketing policy and the distributor sales of final product the Company gives the distributor a
percentage discount and regularly or irregularly settles with distributors. At the time of settlement the discounts
are recorded in a sales invoice issued. The net amount of invoice value after the deduction of the discount sales
income is recognized as revenue according to the accrual principle. The discounts that have occurred and have not
yet been settled at the end of the current period shall be taken provision from the sales revenue and recorded into
the contract liabilities.b) Service Contract
The service contract provided by the Company contains the performance obligation of the lease service provided.Since the customer obtains and consumes the economic benefits brought by the performance of the contract at
the same time it is regarded as the performance obligation performed within a certain period of time and is equally
apportioned and confirmed during the service provision.Cases where the same type of business adopts different business models involving different revenue recognition
methods and measurement approaches.
27. Contract costs
Assets related to contract costs include contract acquisition costs and contract performance costs.The cost of contract fulfillment incurred by the company to perform the contract shall be recognized as an asset if
the following conditions are met:
(1) The cost is directly related to a current or anticipated contract.
(2) The cost increases the company's resources for future performance obligations.
(3) The cost is expected to be recovered.
The incremental cost incurred by the company in obtaining the contract is expected to be recovered shall be
recognized as an asset as the cost of obtaining the contract.The Company amortizes the asset related to the contract cost on the same basis as the recognition of the revenue
of the goods or services related to the asset and includes it in the profit or cost for the current period.If the book value of the assets related to the contract cost is higher than the difference between the following two
items the Company will make an impairment provision for the excess part and confirm it as the impairment loss
159of the assets:
(1) The transfer of the goods or services related to the asset less the estimated cost;
(2) Estimated impending costs for the transfer of the related goods or services.
If the impairment provision of the above asset is subsequently reversed the book value of the asset after reversal
shall not exceed the carrying amount the asset would have reached on the date of reversal had the provision for
impairment been not made.
28. Government grants
(1) Types of government grants
Government grants are monetary assets and non-monetary assets acquired free of charge by the Company from
the government including government grants related to assets and government grants related to income.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.Government grants related to income are government grants other than government grants related to assets.
(2) Recognition principles of government grants
Government grants are recognized when both of the following conditions are met:
a) The Company can meet the attached conditions for the government grants;
b) The Company can receive the grants.
(3) Measurement of government grants
a) If a government grant is a monetary asset it shall be measured in the light of the received or receivable amount.b) 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 (a nominal amount is CNY 1).
(4) Accounting treatment method of government grants
a) The government grants related to assets shall be set off of the book value of the related assets or recognized as
deferred income at the actual entry amount on acquisition. Government grants recognized as deferred income
shall be allocated evenly over the useful lives of the relevant assets and included in the current profit or loss.Government grants measured at the nominal amount shall be directly included in current profit and loss.b) Government grants related to income shall be separately handled according to the following circumstances:
i. If government grants related to income are used to compensate the Company’s relevant expenses or losses in
future periods such government grants should be recognized as deferred income on acquisition and be included
into the current profit and loss or written off of the related costs when the relevant expenses losses are recognized.ii. If government grants related to income are used to compensate the
Company’s relevant expenses or losses incurred such government grants are directly included into the current
profit and loss on acquisition or written off of the related costs.c) Government grants related to assets and related to income are received together shall be treated separately. If
it is hard to separate government grants shall be treated as related to income as a whole.d) Government grants related to daily operation shall be recoded in other income or written off relevant expenses
costs. Government grants unrelated to daily operation shall be recorded in non-operating income. Financial
subsidy funds directly allocated to the company shall be offset the relevant borrowing costs.e) Government grants already recognized required to be refunded shall be handled according to the following
circumstances:
160i. If the grants have written down the book value of assets the book value shall be adjusted.
ii. If there is related deferred income the book value of relevant deferred income is written down and the
exceeding part is recorded in the current profit and loss.iii. If there is no related deferred income the exceeding part is directly included in the current profit and loss.
29. Deferred tax assets and deferred tax liabilities
The Company adopts the balance sheet liability method to account for income tax.
(1) Recognition of deferred tax assets or deferred tax liabilities
a) The Company recognizes its tax base on acquisition of assets and liabilities. On the balance sheet date the
Company analyzes and compares the book value of the assets and liabilities and the tax base. If there are
temporary differences in book value of the assets and liabilities and the tax base under the circumstance that the
temporary differences incur in the current period and meet the recognition criteria the Company shall respectively
recognize taxable temporary differences or deductible temporary differences as deferred tax liability or deferred
tax assets.b) Recognition basis of deferred tax assets
i. Deferred tax assets incurred from deductible temporary differences are recognized to the extent that they shall
not exceed the taxable income probably obtained in future periods to be against the deductible temporary
difference. In determining the taxable income probably obtained in future periods including the taxable income
from normal production and operation activities in future periods and the increase of taxable income due to the
reversal of taxable temporary differences during the period of reversal of deductible temporary differences.ii. For deductible losses and tax credits that can be carried forward to the next years the Company is likely to
recognize the corresponding deferred tax assets to the extent that the assets shall not exceed the taxable income
in the future for deducting deductible losses and tax credits and that are probably obtained by the Company.iii. On the balance sheet date the Company reviews the book value of deferred tax assets. If it is probably unable
to obtain sufficient taxable income in the future period to offset the benefits of the deferred tax assets the
Company shall write down the book value of the deferred tax assets; when it is probable to obtain sufficient taxable
income the write-downs shall be reversed.c) Recognition basis of deferred tax liabilities
The Company recognizes the current and previous taxable temporary differences payable but unpaid as deferred
tax liabilities. But they exclude temporary differences arising from goodwill; transactions which are formed other
than from business combinations and neither affect the accounting profits nor affect taxable income at the time
of occurrence.
(2) Measurement of deferred tax assets or deferred tax liabilities
a) On the balance sheet date the deferred tax assets and deferred tax liabilities are measured at the applicable
tax rate during the period of expected recovery of the assets or liquidation of the liabilities in accordance with the
provisions of the tax law.b) Where the applicable tax rate changes the Company remeasures deferred tax assets and deferred tax liabilities
recognized except for those incurred in transactions or events directly recognized in the owner’s equity of which
the effect shall be included in the income tax expenses in the current period when the rate changes.c) When the Company measures the deferred tax assets and deferred tax liabilities the tax rate and tax base in
consistent with the expected recovery of assets or liquidation of liabilities shall be adopted.d) Deferred tax assets and deferred tax liabilities of the Company shall not be discounted.
30. Lease
161(1) Accounting treatment for leases as lessee
On the commencement date of the lease term the company recognizes right-of-use assets and lease liabilities for
leases other than short-term leases and leases of low-value assets and subsequently recognizes depreciation
expense and interest expense during the lease term.a)Accounting treatment for right-of-use assets
A right-of-use asset is the right of the Company as lessee to use the leased asset during the lease term.i. The initial measurement
On the lease commencement date the company measures the right-of-use asset at its initial cost. This cost
comprises four components:* The initial measurement of the lease liability. * Lease payments made at or before
the commencement date net of any lease incentives received if any. * Incurred initial direct costs representing
the incremental costs of obtaining the lease. * Estimated costs expected to be incurred for dismantling and
removing the leased asset restoring the leased asset's site or reinstating the leased asset to the condition
specified in the lease agreement excluding costs for inventory production purposes.ii. Subsequent measurement.After the lease commencement date the company adopts the cost model for subsequent measurement of the
right-of-use asset which means the asset is measured at cost less accumulated depreciation and accumulated
impairment losses. If the company re-measures the lease liability in accordance with the lease standards the
carrying amount of the right-of-use asset is adjusted accordingly.Depreciation is recognized on the right-of-use asset from the lease commencement date. Depreciation on the
right-of-use asset begins in the month of lease commencement. The amount of depreciation recognized is either
capitalized to the cost of related assets or expensed in the current period depending on the use of the right-of-
use asset. The company applies the straight-line method to depreciate the right-of-use asset based on the expected
pattern of consumption of the economic benefits associated with the right-of-use asset. If the right-of-use asset is
impaired subsequent depreciation is based on the carrying amount of the right-of-use asset after deducting
impairment losses. The categories of right-of-use assets their useful lives and annual depreciation rates are as
follows: [Categories useful lives and annual depreciation rates are not provided in the text you provided.The categories of right-of-use The annual depreciation rate (as
The depreciation period (in years).assets. a percentage)
buildings and structures. 2-5 50-20
(2) The accounting treatment method for lease liabilities.
(a) Initial measurement
At the commencement date a lessee shall measure the lease liability at the present value of the lease payments
that are not paid at that
a) Lease payment
The lease payments included in the measurement of the lease liability comprise the following payments for the
right to use the underlying asset during the lease term that are not paid at the commencement date:
i. fixed payments (including in-substance fixed payments) less any lease incentives receivable;
ii. variable lease payments that depend on an index or a rate initially measured using the index or rate as at the
commence date;
iii. The exercise price of the purchase option if the Company is reasonably certain to exercise that option;
iv. Payments of penalties for terminating the lease if the lease term reflects the lessee exercising an option to
terminate the lease;
v. The amount expected to be paid based on the residual value of the guarantee provided by the company.b) The discount rate
162When calculating the present value of lease payments the interest rate in the lease is determined as the discount
rate. If the rate cannot be readily determined the Company shall use the lessee’s incremental borrowing rate
which is the rate of interest that a lessee would have to pay to borrow over a similar term and with a similar
security the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The incremental borrowing rate is based on the bank lending rate and adjusted by the Company
considering relevant factors.(b) Subsequent measurement
After the commencement date the Company shall measure the lease liability by:
* increasing the carrying amount to reflect interest on the lease liability;
* reducing the carrying amount to reflect the lease payments made;
* remeasuring the carrying amount to reflect any reassessment or lease modifications
After the lease commencement date lease payment shall be remeasured if the following circumstances incurred
and the lease liability shall be remeasured at the present value which is based on the revised lease payment and
revised discounting rate. The Company shall remeasure the lease liability to reflect changes to the lease payments.A lessee shall recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-
use asset. However if the carrying amount of the right-of-use asset is reduced to zero and there is a further
reduction in the measurement of the lease liability a lessee shall recognize any remaining amount of the
remeasurement in profit or loss.* change of in-substance fixed payments (subject to original discounting rate)
* change of amounts expected to be payable under residual value guarantees
* change of an index or a rate used for future lease payments
* change in assessment of a buy option
The interest expense during each period of the lease term shall be included in the current profit and loss except
for those that should be capitalized.
(3) The criteria and accounting treatment methods for short-term leases and leases of low-value assets.
For short-term leases they refer to leases where the lease term does not exceed 12 months from the lease
commencement date. Leases that include purchase options are not considered short-term leases. Low-value asset
leases are leases where the individual lease asset has a low value when it is new. Leases of assets for sublease or
expected sublease are excluded from low-value asset leases.The company adopts a simplified approach for short-term leases and leases of low-value assets. Lease payments
for short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis or using
another systematic and rational approach over the lease term in each reporting period. No right-of-use assets and
lease liabilities are recognized for these leases.
(4) The accounting treatment methods for leases as the lessor
(a) Finance lease
At the commencement date of the lease term the Company recognizes the finance lease receivable at the net
value of lease investment (the sum of the unguaranteed residual value and the present value of the lease receipts
not yet received at the commencement date of the lease term that are discounted at the interest rate in the lease)
and derecognizes the finance lease asset. Over the term of the relevant lease the Company calculates and
recognizes interest income based on the interest rate in the lease.The company shall account for a finance lease modification as a separate lease if both conditions are satisfied: *
the modification increases the scope of the lease by adding the right to use one or more underlying assets or
extending the contractual lease term. * the consideration for the lease increases by an amount commensurate
163with the stand-alone price for the increase in scope or the contractual lease term extension and any appropriate
adjustments to that stand-alone price to reflect the circumstances of the particular contract. Stand-alone price to
reflect the circumstances of the particular contract.(b) Operating lease
According to the nature of the assets the company will include the assets used as operating lease in the relevant
items of the balance sheet. The Company shall add initial direct costs incurred in obtaining an operating lease to
the carrying amount of the underlying asset and recognize those costs as an expense over the lease term on the
same basis as the lease income. Lease payment received shall be recognized as lease income on a straight-line
basis within the period. The depreciation policy for depreciable underlying fixed assets subject to operating leases
shall be consistent with the lessor’ s normal depreciation policy for similar assets. Amortization for other
underlying assets subject to operating lease shall be on reasonable systematic basis. The variable lease payments
obtained by the company related to operating leases which are not included in the lease payment received shall
be included in the current profit and loss when actually incurred.A lessor shall account for a modification to an operating lease as a new lease from the effective date of the
modification considering any prepaid or accrued lease payments relating to the original lease as part of the lease
payments for the new lease.
31. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□Applicable □N/A
a) On October 25 2023 the Ministry of Finance issued Interpretation No. 17 of the Enterprise Accounting
Standards (Finance and Accounting [2023] No. 21 hereinafter referred to as "Interpretation No. 17") which
standardizes the "Classification of Current Liabilities and Non-current Liabilities" "Disclosure of Supplier
Financing Arrangements" and "Accounting Treatment of Sale and Leaseback Transactions." The company will
implement this interpretation from January 1 2024 and the implementation of this interpretation will not affect
the opening financial statements.b) On December 6 2024 the Ministry of Finance issued Interpretation No. 18 of the Enterprise Accounting
Standards (Finance and Accounting [2024] No. 24 hereinafter referred to as "Interpretation No. 18") which
standardizes the accounting treatment of quality assurance guarantees that do not constitute a separate
performance obligation. The company will implement this interpretation from January 1 2024 and the
implementation of this interpretation will not affect the opening financial statements.
(2) Changes in significant accounting estimates
□Applicable □N/A
(3) Adjustments to the financial statement items at the beginning of the fiscal year when implementing the new
accounting standards for the first time starting from 2024
□Applicable □N/A
VI. Taxes
1. Major tax types and rates
Tax type Taxation basis Tax rate
164Value-added tax (VAT) Output tax-deductible input tax 13%、9%、6%、19%
Sales revenue or composite assessable
Consumption tax please refer to the instructions
price
Urban maintenance and construction tax Applicable turnover tax amount 7%、5%
Applicable income tax rate Taxable
Corporate income tax 25%、16.5%、0%、27%
income
Disclosure statement if there are various taxpaying bodies with different corporate income tax rates
Company name Applicable tax rate
JSSJ Industry (HK) Holdings Co. Ltd. 16.50%
Hong Kong Zhaiugou International Trade Co. Ltd. 16.50%
ZYG E-Commerce HK Limited 16.50%
Yanghe Hong Kong Distillery Co. Ltd. 16.50%
YANGHE CHILE SPA 27%
YangHe International Investment Ltd 0%
ZYG LTD 0%
ZYG TECHNOLOGY INVESTMENT LTD 0%
2.Other information
Note: Charging of Consumption Tax
(1) Ad valorem taxation: liquor consumption tax shall be calculated and paid according to 20% of the approved
sales amount. The taxable liquor commissioned for processing shall be taxed according to the sales price of similar
liquor of the entrusted party and if there is no sales price of similar liquor the taxable liquor shall be computed
according to the composition assessable price. Consumption tax on red wine (wine) is calculated at 10% of sales.
(2) Quantity-based taxation: liquor consumption tax is calculated and paid according to CNY 1 per kg.
VII. Notes to items in the consolidated financial Statements (all currency unit is CNY except
other statements)
1. Cash and Bank Balances
Unit: CNY
Item Closing balance Opening balance
Cash 292.01 292.01
Bank deposit 21688566331.16 25766215567.22
Other cash and cash equivalents 59731355.20 46571787.63
Total 21748297978.37 25812787646.86
Other notes
On December 31st 2024 the interest receivable for time deposit is CNY 2 million; The ending balance of other
currency funds is mainly the funds deposited in Tenpay Alipay and other platforms.Liquor manufacturing enterprises should disclose in detail whether there is any special interest arrangement
such as the establishment of capital co-management accounts with relevant parties
□Applicable □N/A
2. Held-for-trading financial assets
Unit: CNY
Item Closing balance Opening balance
Financial asset at fair value through
6380145437.145851217684.93
profit and loss
Including:
Debt instruments 6380145437.14 5851217684.93
Including:
165Total 6380145437.14 5851217684.93
Other notes
The debt instrument investments mainly consist of structured bank deposits maturing within one year.
3. Notes receivables
(1) Classification of notes receivables
Unit: CNY
Item Closing balance Opening balance
Bank acceptance bill 413398699.00 526476976.44
Total 413398699.00 526476976.44
(2) Disclosure by classification of provision for bad debts method
Unit: CNY
Closing balance Opening balance
Provision for bad Provision for
Book balance Book balance
Item debt Book bad debt Book
amou propo proporti value proporti amou propo value
amount amount
nt rtion on on nt rtion
Including:
Provision for
bad debt of 4133 52647
100.04133986526476
notes 9869 100.00% 6976.
0%99.00976.44
receivables by 9.00 44
portfolio
Including:
413352647
Bank acceptance 100.0 4133986 526476
9869100.00%6976.
bill portfolio 0% 99.00 976.44
9.0044
Commercial
acceptance bill
portfolio
413352647
100.04133986526476
Total 9869 100.00% 6976.
0%99.00976.44
9.0044
Provision for bad debt by individual: 0.00
Unit: CNY
Closing balance
Item
Book balance Provision for bad debt Proportion
Bank acceptance bill portfolio 413398699.00 0.00 0.00%
Notes to determine provision for bad debt by portfolio:
If provision for bad debt of notes receivable is calculated according to the general model of expected credit loss
please refer to the disclosure method of other receivables to disclose the relevant information about provision for
bad debt:
□Applicable □N/A
(3) Notes receivable that have been endorsed to other parties by the Company but have not expired at the
end of year
Unit: CNY
Item Derecognition at period end Not derecognition at period end
Bank acceptance bill 82084244.00
Total 82084244.00
1664. Accounts receivables
(1) Disclosed by aging
Unit: CNY
Aging Closing book balance Opening book balance
Within1 year (including 1 year) 8992241.30 3083099.43
1-2 years 132228.46 394794.95
2-3 years 75528.52 145836.47
Over 3 years 3236677.55 3099790.38
3-4 years 137146.47 122294.80
4-5 years 122145.00 25199.00
Over 5 years 2977386.08 2952296.58
合计12436675.836723521.23
(2) Disclosed by categories
Unit: CNY
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
Category debt Book debt Book
Proporti Proporti value Proporti Proporti value
Amount Amount Amount Amount
on on on on
Including:
Risk portfolio
Other portfolios
8994
Provision for bad 12436 34417 67235 100.00 31947 35287
100.00%27.67%904.47.52%
debt by portfolio 675.83 71.10 21.23 % 42.95 78.28
73
Including:：
8994
124363441767235100.003194735287
Risk portfolio 100.00% 27.67% 904. 47.52%
675.8371.1021.23%42.9578.28
73
8994
124363441767235100.003194735287
Total 100.00% 27.67% 904. 47.52%
675.8371.1021.23%42.9578.28
73
Provision for bad debts by portfolio: Risk portfolio
Unit: CNY
Closing balance
Aging
Accounts receivables Provision for bad debt Proportion of provision
Within1 year (including 1
8992241.30269767.243.00%
year)
1-2 years 132228.46 13222.85 10.00%
2-3 years 75528.52 15105.70 20.00%
Over 3 years 3236677.55 3143675.31 97.13%
Total 12436675.83 3441771.10
Notes to determine provision for bad debt by portfolio:
If provision for bad debt of accounts receivables is calculated according to the general model of expected credit
loss please refer to the disclosure method of other receivables to disclose the relevant information about
provision for bad debt:
□Applicable □N/A
(3) Provision for bad debt that is accrued recovered or reversed during this period
167Provision for bad debts during this period:
Unit: CNY
Changes in the current period
Opening
Category
balance Recovered or
Closing balance
Provision Write off Others
reversed
Provision 3194742.95 247028.15 3441771.10
Total 3194742.95 247028.15 3441771.10
Significant amount of reversal or recovery during this period
Unit: CNY
Amount recovered or Basis and
Company name Reason Method
reversed reasonableness
(4) Top five entities with the largest balances of the accounts receivables and contract assets
Unit: CNY
Closing balances of
Percentage of
accounts
Closing balance of combined
Closing balance of receivableprovision
Closing balance of accounts accounts
Company's name the accounts for bad debts and
the contract asset receivable and receivable and
receivables allowance for
contract assets contract assets
impairment of
closing balances
contract assets
First 5068200.00 5068200.00 40.75% 152046.00
Second 992240.00 992240.00 7.98% 29767.20
Third 600000.00 600000.00 4.82% 600000.00
Fourth 584500.00 584500.00 4.70% 17535.00
Fifth 474848.41 474848.41 3.82% 14245.45
Total 7719788.41 7719788.41 62.07% 813593.65
5. Receivables for Financing
(1) Classification of accounts receivable financing
Unit: CNY
Item Closing Balance Opening Balance
Bank acceptance bill 1090851688.67 261576568.30
Total 1090851688.67 261576568.30
(2) Notes receivable that have been endorsed to other parties by the Company but have not expired at the
end of year
Unit: CNY
Item Not derecognition at period end Not derecognition at period end
Bank acceptance bill 402892518.29
Total 402892518.29
6. Other receivables
Unit: CNY
Item Closing balance Opening balance
Other receivables 17051847.78 57782263.17
Total 17051847.78 57782263.17
(1) Other receivables
168a) Other receivables by nature
Unit: CNY
Nature of other receivables Closing balance Opening balance
Savings deposits (infringement dispute) 22839924.27 22839924.27
Deposit 19783602.54 57772158.18
Cooperation 3910000.00 3910000.00
Business loans petty cash and others 22635223.49 27530727.48
Total 69168750.30 112052809.93
b) Disclosure by aging
Unit: CNY
Aging Closing balance Opening balance
Within 1 year(including 1 year) 13466023.07 30242714.39
1-2 years 3873955.54 27816553.25
2-3 years 386554.71 1326577.31
Over 3 years 51442216.98 52666964.98
3-4 years 57942.16 153428.50
4-5 years 100099.68 136528.41
Over 5 years 51284175.14 52377008.07
Total 69168750.30 112052809.93
c) Disclosed by categories
Unit: CNY
Closing balance Opening balance
Provision for bad Provision for
Book balance Book balance
debt bad debt
Category Book Book
Prop
Propor Propor value Propor value
Amount Amount Amount Amount ortio
tion tion tion
n
Including:
Including:
provision for bad debt of notes receivable is calculated according to the general model of expected credit loss.Unit: CNY
Stage 1 Stage 2 Stage 3
Expected credit loss for Expected credit loss
Bad debt Expected credit losses Total
lifetime (No credit loss for lifetime (Credit
in the next 12 months
occurred) loss occurred)
Balance as at 1 January 2024 1559755.73 52710791.03 54270546.76
Change of opening balance
as at 1 January 2024 in
current period
Provision in 2024 914237.08 914237.08
Recovery in 2024 92825.65 1147996.20 1240821.85
Other changes 1414.69 1414.69
Balance as at 31
554107.6951562794.8352116902.52
December 2024
Basis for each stage division and provision ratio for bad debt provision
Provision ratio
Stage Book balance bad debts Book balance
for bad debts(%)
Stage 1 16952833.32 3.27 554107.69 16398725.63
Stage 2
169Stage 3 52215916.98 98.75 51562794.83 653122.15
total 69168750.30 75.35 52116902.52 17051847.78
Changes in the carrying amount of the provision for losses that are material during the period
□Applicable □N/A
d) Provision for bad debt that is accrued recovered or reversed during this period
Provision for bad debts during this period:
Unit: CNY
Changes in current period
Opening Changes in
Category Recovered or Other
balance Provision Write off current period
reversed changes
Other receivables 1240821.8
54270546.76914237.081414.6952116902.52
bad debt provision 5
1240821.8
Total 54270546.76 914237.08 1414.69 52116902.52
5
Significant amount of reversal or recovery during this period:
Unit: CNY
Amount recovered or Basis and
Company name Reason Method
reversed reasonableness
e) Top five entities with the largest balances of other receivables
Unit: CNY
Provisioning
Proportion in total
Company’s name Category Closing balance Aging amount at period
receivable
end
Industrial
Commercial Bank Savings deposit
of China Ltd. (Infringement 22839924.27 Over 5 years 33.02% 22839924.27
Kaifeng Haode dispute)
branch
Bankruptcy
administrator of
Jiangsu Juntai
Properties Co. Deposit 15000000.00 Over 5 years 21.69% 15000000.00
Ltd. Suqian Guotai
Department Store
Co. Ltd
Nanjing Peilong
Sports Culture Co. Cooperation 3910000.00 Over 5 years 5.65% 3910000.00
Ltd.Business loans and
Wang Pu 1465000.00 Within 1 year 2.12% 43950.00
petty cash
People's
Government of
Yanghe Town
prepaid amounts 1317920.66 Over 5 years 1.90% 1317920.66
Yanghe New
District Suqian
City
Total 44532844.93 64.38% 43111794.93
1707. Prepayment
(1) Analysis by aging
Unit: CNY
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 19339444.03 82.97% 49986010.55 98.07%
1-2 years 3442486.62 14.77% 553888.73 1.09%
2-3 years 99056.60 0.42% 322652.70 0.63%
Over 3 years 429193.43 1.84% 109318.05 0.21%
Total 23310180.68 50971870.03
Significant prepayment aging over 1 year without settlement on time:
No significant prepayment aging over 1 year is recorded in the ending balance.
(2) Top five entities with the largest balances of prepayment
Company’s name Closing balance Proportion in the total prepayment (%)
First 6984120.00 29.96
Second 3677260.98 15.78
Third 2760000.00 11.84
Fourth 2546160.38 10.92
Fifth 2112358.50 9.06
Total 18079899.86 77.56
Other notes:
8. Inventories
(1) Categories of Inventories
Unit: CNY
Closing balance Opening balance
Provision Provision
Portfolio Name for stock for stock
Book balance Book value Book balance Book value
obsolesce obsolesce
nce nce
239526135895
Raw material 374097980.62 350145360.80 389260644.18 375671102.44
19.8241.74
Work in
725622441.56725622441.56828665166.57828665166.57
progress
3002855864.9
Stock goods 2527102468.33 2527102468.33 3002855864.98
8
semi-finished 14747043268.
16130010781.0416130010781.0414747043268.26
goods 26
23952613589518954235402.
Total 19756833671.55 19732881051.73 18967824943.99
19.8241.7425
The disclosure requirements of food and wine manufacturing-related industries in the Guidelines for Self-
regulation NO.3 of Listed Companies of Shenzhen Stock Exchange -Industry Information Disclosure shall be
observed
(2) Provision for stock obsolescence and impairment provision of contract cost
Unit: CNY
171Increases in current period Decreases in current period
Item Opening balance Closing balance
obsolete stocks Other obsolete stocks Other
Raw material 13589541.74 11203156.73 840078.65 23952619.82
Total 13589541.74 11203156.73 840078.65 23952619.82
Provision for obsolete stocks by portfolio
Closing Opening
Provision
Provision for Provision for
Item for stock Provision for stock Opening
Closing balance stock stock
obsolesce obsolescence balance
obsolescence obsolescence
nce
Criteria for making provision for obsolete stocks by portfolio
(3) Other debt investments that will mature within one year
□Applicable □N/A
9. Other current assets
Unit: CNY
Item Closing balance Opening balance
VAT to be deducted 529561363.52 762211934.44
Consumption tax to be deducted 1273596.46 4951140.52
Advance payment of consumption tax 222795853.29
Advance payment of income tax 379097755.46 10829180.68
Advance payment of other taxes 15372307.37
Total 909932715.44 1016160416.30
Other notes:
17210. Long-term equity investments
Unit: CNY
Opening Changes in current period Closing
balance Cash balance
of
Opening Profit or loss Adjustments Other divided Provision
of
Investee provision
balance Decreas recognized of other chang or for
Closing balance provisio
for Increase Other e under equity comprehensi es in profit impairme n for
impairme method ve income equity declare nt impair
nt d ment
1.Joint venture
2.Associated enterprise
Jiangsu Su
Wine
Culture 1202910.
4239247.16168610.035610768.12
Transmissi 93
on on Co
Ltd.Nanjing
Hesong
34000.
Culture 3809817.82 30595.65 3806413.47
00
Technology
Co. Ltd.Jiangsu
Xinghe
Investment 19619060.3
-3801453.5515817606.78
Manageme 3
nt nt Co.Ltd.Nanjing
Huatai
Yanghe
Equity 119687046
-4078401.161192792067.08
Investment 8.24
Master Fund
(limited
partnership)
Jiangsu
Zhibo 5300199.49 -83523.84 5216675.65
Brewing
173Technology
Co. Ltd.Nanjing
Xinglun
Venture 37000
15195150.48670060.2912165210.77
Capital 00.00
Managemen
t Co. Ltd.
122983879373401202910.
Subtotal 15195150.48 -7094112.58 1235408741.87
3.0400.0093
122983879373401202910.
Total 15195150.48 -7094112.58 1235408741.87
3.0400.0093
The recoverable amount is determined as the net of fair value less costs of disposal.□Applicable □N/A
The recoverable amount is determined by the present value of estimated future cash flows
□Applicable □N/A
Reasons for differences between the foregoing information and information used for impairment testing in previous years or external information that is clearly
inconsistent with the information.Reasons for differences between the information used in the company's impairment tests in previous years and the actual situation in the current year that are
clearly inconsistent.Other note:
17411. Other non-current financial assets
Unit: CNY
Item Closing balance Opening balance
equity instrument investment 4614148799.21 5532792281.26
Total 4614148799.21 5532792281.26
Other note:
12. Fixed assets
Unit: CNY
Item Closing balance Opening balance
Fixed Assets 5571618070.98 5305626964.48
Fixed asset disposal
Total 5571618070.98 5305626964.48
(1)Details of fixed assets
Unit: CNY
Buildings and Machinery Transportatio Other Total
Item
constructions equipment n equipment equipment
Original cost of fixed assets
12197888903.3
1.Opening balance 8365742469.06 3318271991.84 57326583.77 456547858.68
5
2.Increase in current period 586637986.95 179781565.82 15464305.30 78271289.24 860155147.31
(1) External purchase 213994285.14 513487.28 9155619.71 73934722.02 297598114.15
(2) Transfer from construction in
372643701.81179268078.546308685.594336567.22562557033.16
progress
(3) Increase from business
combination
3.Decrease in current period 4562088.00 23940353.91 4109962.83 13822500.64 46434905.38
(1) Disposal or retirement 4562088.00 23940353.91 4109962.83 13822500.64 46434905.38
13011609145.2
4.Closing balance 8947818368.01 3474113203.75 68680926.24 520996647.28
8
Accumulated depreciation
1.Opening balance 3806848032.27 2629882772.54 49260723.39 406270410.67 6892261938.87
2.Increase in current period 410102919.14 154197568.42 3479156.21 18812583.41 586592227.18
(1) Provision 410102919.14 154197568.42 3479156.21 18812583.41 586592227.18
3.Decrease in current period 1003639.08 21043601.19 3904464.69 12911386.79 38863091.75
(1) Disposal or retirement 1003639.08 21043601.19 3904464.69 12911386.79 38863091.75
4.Closing balance 4215947312.33 2763036739.77 48835414.91 412171607.29 7439991074.30
Provision for fixed asset
impairment
1.Opening balance
2.Increase in current period
(1) Provision
3.Decrease in current period
(1) Disposal or retirement
4.Closing balance
Book value
1.Closing book value 4731871055.68 711076463.98 19845511.33 108825039.99 5571618070.98
1752.Opening book value 4558894436.79 688389219.30 8065860.38 50277448.01 5305626964.48
(2) Investment properties without certification of right
Unit: CNY
Reason for not having the certification of
Item Book value
right
Yanghe Blue-collar workers apartment 24898812.70 In process
Yanghe Base 20000000 60000 and 80000
324967889.00 In process
tons of ceramic altar warehouse
Yanghe Base Plant and Warehouse 159052527.93 In process
Guizhou Wine Base Workshop Plant 108433765.70 In process
Shuanggou Base Workshop Plant 7327595.41 In process
Su Wine Trade Office House 5751260.38 In process
Other note:
13. Construction in progress
Unit: CNY
Item Closing balance Opening balance
Construction in progress 1912601220.28 1457315739.56
Total 1912601220.28 1457315739.56
176(1) Details of the construction in progress
Unit: CNY
Closing balance Opening balance
Item Provision for Provision for Book value
Book Balance Book value Book Balance
impairment impairment
Shuanggou 120000 ton pottery jar storage project 318984997.36 318984997.36 140295657.74 140295657.74
Nanjing operation center building project 654286668.55 654286668.55 529591557.52 529591557.52
Sesame Fragrant Intelligent brewing Project (Workshop
26802475.8826802475.8866220261.3966220261.39
115 District 3)
Yanghe base 20000 tons of pottery altar warehouse 29788124.36 29788124.36 21303084.96 21303084.96
Yanghe base wastewater treatment capacity expansion
5574551.345574551.344191150.454191150.45
and reconstruction project
80000 tons of pottery jar warehouse project 32794603.51 32794603.51 182867988.73 182867988.73
Six-span brewery workshop 3926760.50 3926760.50 5014659.77 5014659.77
Exhibition and Decoration Engineering of Wine History
78301551.4578301551.45
Museum Wine Rhyme Museum and Wine Art Museum
Renovation of the seasoning distillery at Shuanggou
39730232.6039730232.6038725389.3738725389.37
Base
Upgrade and renovation project of Shuanggou Liquor
93926659.6993926659.6943661565.6143661565.61
Industry and Liquor Culture Tourism Area
Construction of new liquor fermentation workshop at
149900234.88149900234.8884805400.7884805400.78
Siyang Base
Phase II of Gui wine project 30748105.10 30748105.10 23303088.08 23303088.08
Phase III of Gui wine project 138571436.19 138571436.19 37506285.70 37506285.70
Fruit wine and fruit vinegar production line project 27964257.07 27964257.07 55489805.70 55489805.70
Lhasa Langjie Liquor Village Project 209604115.08 209604115.08 36779851.17 36779851.17
Other projects 149997998.17 149997998.17 109258441.14 109258441.14
1457315739.
Total 1912601220.28 1912601220.28 1457315739.56
56
(2) Significant changes in construction in progress
Unit: CNY
Include:Ca Capital
Proportion of Interest
Transfer Other pitalized ization Sourc
Opening Increase in Closing accumulative Progre capitaliz
Item Budget into fixed decrea interest rate e of
balance current period balance project input ss ation assets ses for the for the funds
in budget (%) rate
period period
100000000
Shuanggou 140295657.74 178689339.62 318984997.36 31.90% Mediu Other
0.00
177120000 ton m
pottery jar stage
storage
project
Nanjing
operation
800000000. Late
center 529591557.52 124695111.03 654286668.55 81.79% Other
00 stage
building
project
Sesame Late
Fragrant stage
Intelligent
brewing 68842800.0 44824690.2
66220261.39 5406904.73 26802475.88 128.35% Other
Project 0 4
(Workshop
115 District
3)
Yanghe base Late
20000 tons stage
62000000.0
of pottery 21303084.96 10029935.99 1544896.59 29788124.36 135.12% Other
0
altar
warehouse
Yanghe base
wastewater
treatment
capacity 23000000.0 Late
4191150.45 1383400.89 5574551.34 108.53% Other
expansion 0 stage
and
reconstructio
n project
80000 tons
of pottery jar 240000000. 191231826. Late
182867988.73 41158441.55 32794603.51 93.35% Other
warehouse 00 77 stage
project
Six-span
40000000.0 Late
brewery 5014659.77 6388003.36 7475902.63 3926760.50 103.29% Other
0 stage
workshop
Exhibition Projec
90000000.0104612
and 78301551.45 27589140.05 1278004.25 117.66% t Other
0687.25
Decoration Compl
178Engineering etion
of Wine
History
Museum
Wine Rhyme
Museum and
Wine Art
Museum
Renovation of
the seasoning
50600000.0 Late
distillery at 38725389.37 8658056.96 7653213.73 39730232.60 93.64% Other
0 stage
Shuanggou
Base
Upgrade and
renovation
project of
Shuanggou
80000000.0 Late
Liquor 43661565.61 50547735.69 282641.61 93926659.69 117.76% Other
0 stage
Industry and
Liquor
Culture
Tourism Area
Construction
of new liquor Mediu
600000000.118936722.
fermentation 84805400.78 184031556.61 149900234.88 44.80% m Other
0051
workshop at stage
Siyang Base
Phase II of Gui 139540200. 11856016.3 Late
23303088.08 19301033.40 30748105.10 69.66% Other
wine project 00 8 stage
Phase III of
200000000 17003649.7 Early
Gui wine 37506285.70 118068800.23 138571436.19 7.78% Other
0.004
project stage
Fruit wine
and fruit
80000000.0 68671270.7 Late
vinegar 55489805.70 41145722.10 27964257.07 120.79% Other
03
production stage
line project
Lhasa Langjie
248280000. Late
Liquor Village 36779851.17 172824263.91 209604115.08 84.42% Other
00
Project stage
1795522263001348057298.470758835.1046121762603222.
Total 989917446.12
0.004218687.2511
(3)Impairment testing of the construction in progress
□Applicable ?N/A
14.Right-of-use Assets
180(1)Details of right-to-use assets
Unit: CNY
Item Building and construction Total
Total original carrying amount
1.Opening balance 119082548.45 119082548.45
2. Increased 16748246.98 16748246.98
New Lease 16748246.98 16748246.98
3. Decreased 2565465.13 2565465.13
Disposal 2565465.13 2565465.13
4.Closing balance 133265330.30 133265330.30
Accumulated depreciation
1.Opening balance 36617997.29 36617997.29
2. Increased 32397883.52 32397883.52
(1) Provisions 32397883.52 32397883.52
3. Decreased 2565465.13 2565465.13
(1) Disposal 2565465.13 2565465.13
4.Closing balance 66450415.68 66450415.68
Provision for Right-of-use Assets
impairment
1.Opening balance
2.Increase in current period
(1) Provision
3.Decrease in current period
(1) Disposal or retirement
4.Closing balance
Total book value
1. Closing balance on book value 66814914.62 66814914.62
2. Opening balance on book value 82464551.16 82464551.16
15. Intangible assets
(1) Details of intangible assets
Unit: CNY
No-patent right Trademark Computer
Item Land use right Patent right Total
technology right software
Original cost of
intangible assets
1.Opening 2708322321.2
2124996069.48228495.90399936371.09183161384.81
balance 8
2.Increase in
109380312.9015952891.08125333203.98
current period
(1)Including:
109380312.9015952891.08125333203.98
Acquired
(2)Internally
developed
(3)Business
combination
1813.Decrease in
41240016.7141240016.71
current period
(1)Including:
41240016.7141240016.71
Disposal
2792415508.5
4.Closing balance 2193136365.67 228495.90 399936371.09 199114275.89
5
Accumulated
amortization of
intangible assets
1.Opening
451070007.359520.65395144001.6388982948.68935206478.31
balance
2.Increase in
44441830.8322849.561473912.4115367114.0561305706.85
current period
(1)Including:
44441830.8322849.561473912.4115367114.0561305706.85
Provision
3.Decrease in
8316736.578316736.57
current period
(1)Including:
8316736.578316736.57
Disposal
4.Closing balance 487195101.61 32370.21 396617914.04 104350062.73 988195448.59
Provision for
impairment
1.Opening
balance
2.Increase in
current period
(1)Including:
Provision
3.Decrease in
current period
(1)Including:
Disposal
4.Closing balance
Book value of
intangible assets
Closing book 1804220059.9
1705941264.06196125.693318457.0594764213.16
value 6
Opening book 1773115842.9
1673926062.13218975.254792369.4694178436.13
value 7
The proportion of intangible assets formed through internal research and development of the Company in the
balance of intangible assets at the end of this period is 0.00%.
(2)Status of land use rights without completed property title certificates
Unit: CNY
Reasons for unobtained property
Item Book Value
ownership certificates
Part of the Land for Phase III of the Gui
2281449.74 In process
Wine Project
Other Notes:
According to the Termination Agreement of the Investment Agreement and Land Agreement signed on
November 04 2024 by the Company and its controlling subsidiary Harbin Binzhou Distillery Co. Ltd. with the
182People’s Government of Bin County Harbin and the Bin County Natural Resources Bureau the controlling
subsidiary Harbin Binzhou Distillery Co. Ltd. returned the previously purchased land use rights with the original
cost of CNY 41240016.71 and net book value of CNY 32923280.14.
16. Goodwill
⑴Goodwill book value
Unit: CNY
Decrease in current
Investee’s name Increase in current period
Opening period
or items resulting Closing balance
balance Business
in goodwill Disposal
combination
Jiangsu
Shuanggou
276001989.95276001989.95
Distillery Stock
Co. Ltd.[Note]
Jiangsu Zhaiugou
E-commerce Co. 6940018.79 6940018.79
Ltd
Jiangsu Zhaibianli
E-commerce Co. 21250284.80 21250284.80
Ltd
Guizhou Guijiu
18826210.0118826210.01
Co. Ltd.ZYG
TECHNOLOGY 5057111.19 5057111.19
INVESTMENT LTD
Guizhou
Maotaizhen
11333195.2511333195.25
Guijiu Liquor
Industry Co. Ltd
Total 339408809.99 339408809.99
(2) Goodwill impairment provision
Unit: CNY
Investee’s name or Increase in current period Decrease incurrent period
items resulting in Opening balance Closing balance
Provision Disposal
goodwill
Jiangsu Zhaiugou E-
6940018.796940018.79
commerce Co. Ltd
Jiangsu Zhaibianli E-
21250284.8021250284.80
commerce Co. Ltd
Guizhou Guijiu Co.
18826210.0118826210.01
Ltd.ZYG TECHNOLOGY
5057111.195057111.19
INVESTMENT LTD
Guizhou Maotaizhen
Guijiu Liquor 11333195.25 11333195.25
Industry Co. Ltd
Total 63406820.04 63406820.04
Related information of asset groups or asset group portfolio containing goodwill
(3) Related information of asset groups or asset group portfolio containing goodwill
The composition and The affiliated operating Whether consistent with
Name
basis of the asset group branch and its basis previous years
183or combination to which
it belongs
The asset group related to
The baijiu production and
the goodwill formed by the
sales business corresponding
acquisition of 40.60% equity
to the asset group related to Yes
of Jiangsu Shuanggou Liquor
the goodwill of Shuanggou
Industry Co. Ltd. by Jiangsu
Liquor Industry
Yanghe Distillery Co. Ltd.Changes in asset groups or combinations of asset groups
Composition before Composition after
Name Objective facts and basis
changes changes
Other note:
(4) Specific determination of recoverable amount
The recoverable amount is determined as the net of fair value less costs of disposal.□Applicable □N/A
The recoverable amount is determined by the present value of estimated future cash flows
?Applicable □N/A
Unit: CNY
The basis
for
Key Key
determinin
parameters parameters
Recoverabl Impairmen Forecast g key
Item Book value of the of the
e amount t amount period parameters
forecast stable
of the
period period
stable
period
Revenue Revenue
Jiangsu The same
growth rate: growth rate:
Shuanggou with last
79650943 81830000 2% Average 0% Gross
Liquor 0.00 5 years year of the
84.72 00.00 gross profit profit
Industry Co. forecast
margin: margin:
Ltd. period
44.42%44.42%
7965094381830000
Total 0.00
84.7200.00
Reasons for differences between the foregoing information and information used for impairment testing in previous
years or external information that is clearly inconsistent with the information.Reasons for differences between the information used in the company's impairment tests in previous years and
the actual situation in the current year that are clearly inconsistent.
17. Long-term prepaid expenses
Unit: CNY
Amortization for
Increase in the
Item Opening balance the current Other decreases Closing balance
current period
period
Wine city night
view Identification 6008232.24 3004116.11 3004116.13
project
Brighten old
factory and
872193.70436096.85436096.85
packaging logistics
center project
Decoration
1171913.90585956.96585956.94
expenses of hotel
184Exhibition and
decoration project
for the liquor
history hall liquor 104612687.25 10461268.73 94151418.52
culture hall and
liquor ceremony
hall in wine city
Renovation project
for the coffee in
4578000.00457800.004120200.00
the liquor culture
hall of wine city
Renovation costs
for leased fixed 16355471.57 2180729.53 14174742.04
assets
Total 8052339.84 125546158.82 17125968.18 116472530.48
Other note:
18. Deferred tax assets/ deferred tax liabilities
(1) Deferred tax assets before offset
Unit: CNY
Closing balance Opening balance
Item Deductible Deductible temporary Deferred tax Deferred tax
temporary
differences assets assets
differences
Provision for asset
75546599.4718870816.0272002831.4517919840.18
impairment
Unrealized profit from
277831286.4669457821.62274116122.6768529030.67
internal transaction
Deductible loss 109730103.87 27432525.97 885210849.53 221302712.39
The difference between
book value of debt and tax 4507120830.82 1126746505.31 3829516453.37 957379113.35
base
ESOP 244727667.97 61181917.00
Total 4970228820.62 1242507668.92 5305573924.99 1326312613.59
(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
Incremental valuation of
assets in the consolidation
33746260.808436565.2036406637.569101659.39
of non-controlling
interests
Fair value changes in trading
341144473.3985286118.35818673347.32204668336.83
financial assets
Right-of-use assets 66814914.62 16670373.40 82464551.16 20616137.79
Total 441705648.81 110393056.95 937544536.04 234386134.01
(3) Details of unrecognized deferred tax assets
185Unit: CNY
Item Closing balance Opening balance
Deductible temporary differences 342148098.81 204290853.15
Deductible losses 792102634.37 115511259.53
Total 1134250733.18 319802112.68
(4)Deductible losses for which deferred tax assets have not been recognized and their expiry by year
Unit: CNY
Year Closing balance Opening balance Note
Year 2024 987313.84
Year 2025 170484354.53 13861118.62
Year 2026 251889684.35 33702618.44
Year 2027 192741997.19 24973327.43
Year 2028 41986881.20 41986881.20
Year 2029 134999717.10
Total 792102634.37 115511259.53
19. Other non-current assets
Unit: CNY
Closing balance Opening balance
Item Provision for Provision for
Book Balance Book value Book Balance Book value
impairment impairment
Compensation
203669611.9
for land 165818556.90 165818556.90 203669611.94
4
demolition
Prepayment of
construction
14788162.9114788162.9162359121.5662359121.56
equipment and
house purchase
266028733.5
Total 180606719.81 180606719.81 266028733.50
0
Other note:
20. Assets with restricted ownership or use
Unit: CNY
At the end of the period At the beginning of the period
Item Book Restricted restricted Book Restricted restricted
Book value Book value
Balance type situation Balance type situation
Monetary 2000000. 2000000. Frozen Litigation
Capital 00 00 funds freeze
2000000.2000000.
Total
0000
Other note:
21. Accounts payables
(1) Presentation of accounts payables
Unit: CNY
Item Closing balance Opening balance
Payments for goods 1207733783.47 1403834890.43
Payables on equipment 56886431.59 22038661.99
Total 1264620215.06 1425873552.42
18622. Other payables
Unit: CNY
Item Closing balance Opening balance
Other payables 2066406374.07 2024640485.37
Total 2066406374.07 2024640485.37
(1) Other payables
a) Categories by nature
Unit: CNY
Item Closing balance Opening balance
Dealer deposit 667475112.92 576518846.34
Dealer risk pledged deposit 640952605.43 659025149.71
Accrued expenses 426779055.57 408783098.49
Quality guarantee deposit and
254130058.07222944106.65
performance deposit
Other payables 77069542.08 157369284.18
Total 2066406374.07 2024640485.37
b) Significant other payables aged over one year or past due
Unit: CNY
Reasons for non-settlement or
Item Closing balance
carryforward
Payable Risk Deposit to Distributors and
562248947.14 Not Yet Due for Settlement
Distributor Security Deposit
合计562248947.14
Other note：
23. Contract liabilities
Unit: CNY
Item Closing balance Opening balance
Advance from customers 5982340689.50 7516605557.37
Discounts and allowances payable to
the distributors that have not yet been 4361439158.57 3588157929.81
settled
Total 10343779848.07 11104763487.18
Significant contract liabilities with an aging of over 1 year
Unit: CNY
Reasons for outstanding or carried-over
Item Closing balance
balances
N/A
Amounts and reasons for significant changes in book value during the reporting period
Unit: CNY
Item Amount of change Reason for change
N/A
The company is required to comply with the disclosure requirements of the food and alcohol manufacturing related industries in
the "Shenzhen Stock Exchange Listed Companies Self Regulatory Guidelines No. 3- Industry Information Disclosure"
24. Employee benefits payable
187(1) Employee benefits payable shown as follows:
Unit: CNY
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Short-term benefits 338213836.87 3315468131.54 3353974894.68 299707073.73
Post-employment
benefits-defined 334886442.58 334886442.58
contribution plans
Severance benefits 3083372.23 3083372.23
Total 338213836.87 3653437946.35 3691944709.49 299707073.73
(2) Short-term employee benefits payable shown as follows:
Unit: CNY
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Wages bonuses
allowances and 335299355.54 2879877276.23 2918736602.44 296440029.33
grants
Employees’ welfare 112501091.17 112501091.17
Social insurance
128728875.52128728875.52
premiums
Including: Medical
105500584.55105500584.55
Insurance
Work-related injury
8638765.908638765.90
insurance
Maternity insurance
14589525.0714589525.07
premium
Housing funds 880470.44 180120891.86 179766972.50 1234389.80
Labor union
expenditures and
2034010.8914239996.7614241353.052032654.60
employee education
funds
Total 338213836.87 3315468131.54 3353974894.68 299707073.73
(3) Defined Contribution Plan shown as follows:
Unit: CNY
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Basic endowment
237000024.93237000024.93
insurance premium
Unemployment
7459558.917459558.91
insurance premium
Enterprise Annuity
90426858.7490426858.74
Contributions
Total 334886442.58 334886442.58
Other note:
25. Taxes payable
Unit: CNY
Item Closing balance Opening balance
Value-added tax 125368245.26 393967989.64
Consumption tax 291725718.18 26998106.27
Enterprise income tax 36511222.63 508559557.17
Individual Income Tax 37035658.86 25174574.76
188Urban maintenance and construction tax 21336364.98 12539893.78
Education Surcharge 20650509.19 12315190.92
Property tax 15926027.13 15274168.78
Land use tax 4636450.48 4615997.78
Stamp tax 7981148.15 7541322.67
Comprehensive Fund 1540.48
Other tax 3575518.19 2483520.21
Total 564746863.05 1009471862.46
26. Non-current Liabilities Due within One Year
Unit: CNY
Item Closing balance Opening balance
Lease liabilities due within one year 23588100.85 25080946.40
Total 23588100.85 25080946.40
27. Other current liabilities
Unit: CNY
Item Closing balance Opening balance
Output VAT to be transferred 613589619.30 904141397.77
Notes endorsed but not
82084244.00343608531.49
derecognized
Total 695673863.30 1247749929.26
28. Lease Liabilities
Unit: CNY
Item Closing balance Opening balance
Lease liabilities 40134989.46 48709685.88
Total 40134989.46 48709685.88
29. Long-term payables
Unit: CNY
Item Closing balance Opening balance
Special accounts payables 195638914.53 196013394.53
Total 195638914.53 196013394.53
(1) Special accounts payables
Unit: CNY
Increase in current Decrease in
Item Opening balance Closing balance Reason
period current period
Compensation
Formation of
for replacement
196013394.53 374480.00 195638914.53 corporate
of employee
restructuring
status
Total 196013394.53 374480.00 195638914.53
Other note:
30. Provision liability
Unit: CNY
Item Closing balance Opening balance Reasons for formation
Purchase and sale contract
Pending litigation 2000000.00
disputes
189Total 2000000.00
31. Deferred incomes
Projects involving government grants:
Unit: CNY
Cost
Increase in
Opening reduction in The reasons for the
Liability item current Closing balance balance current formation
period
period
Hubei Lihuacun liquor industry
liquor brewing filling project
9025600.00 4257000.00 4768600.00 Project subsidies
supporting facilities
construction subsidies
Special fund for packaging
logistics project in Shuanggou 3000000.00 3000000.00 Project subsidies
new area
Special fund for Harbin Binzhou 41202900.0
41202900.00 Project subsidies
brewery construction project 0
Shuanggou sewage treatment
1500000.00 1500000.00 Project subsidies
project
The second batch of provincial-
level industrial and information
8791666.67 1000000.00 7791666.67 Project subsidies
industry transformation and
upgrading special funds in 2020
Supplementary funds for the
Shuanggou Pottery Tan 24000000.00 8969800.00 32969800.00 Project subsidies
Warehouse project
50959900.0
Total 87520166.67 8969800.00 45530066.67
0
Other note:
According to the Termination Agreement of the Investment Agreement and Land Agreement signed on
November 04 2024 by the Company and its controlling subsidiary Harbin Binzhou Distillery Co. Ltd. with the
People’s Government of Bin County Harbin and the Bin County Natural Resources Bureau the controlling
subsidiary Harbin Binzhou Distillery Co. Ltd. returned the previously purchased land use rights with the original
cost of CNY 41240016.71 and net book value of CNY 32923280.14.
19032. Share capital
Unit: CNY
Increases/decreases in the current period (+ -)
Opening Conversion of
Issuance of Share reserves Closing balance balance Others Subtotal
new shares donation funds into
shares
1506445071506445074.
Total shares
4.0000
Other notes:
33. Capital reserves
Unit: CNY
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Share premium 930494463.31 378003.53 930116459.78
Other capital reserves 30000.00 30000.00
Total 930524463.31 378003.53 930146459.78
Other notes:
The capital reserve decreased by CNY 378003.53 during the period due to changes in subscribed capital ratios
resulting from the withdrawal of certain minority shareholders of a subsidiary.
19134. Other comprehensive incomes
Unit: CNY
Current period
Less: Previously Less: previously Amount
Opening Amount in Amount
Item recognized in other recognized in other attribute to
balance current period Less: attribute to
Closing balance
comprehensive comprehensive income non-controlling
before income income tax parent company
income transferred transferred to retained shareholders
tax after tax
to profit or loss earnings after tax
II. Other
comprehensive
income that will be 2023194.81 -3239896.10 -3248770.30 8874.20 -1225575.49
reclassified to profit
or loss
Effect on
conversion of
financial
2023194.81-3239896.10-3248770.308874.20-1225575.49
statements
denominated in
foreign currencies
Total other
comprehensiv 2023194.81 -3239896.10 -3248770.30 8874.20 -1225575.49
e income
Other notes including adjustments for valid portion of the gains and or losses from cash flow hedging transferring to initial recognition amount of projects hedged.
19235. Surplus reserves
Unit: CNY
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Statutory surplus
753494000.00753494000.00
reserves
Total 753494000.00 753494000.00
Explanation of Surplus Reserve Including Movements During the Period and Reasons for the Changes:
36. Retained Earnings
Unit: CNY
Item Current period Previous period
Retained Earnings before adjustment at
48746028613.0844364203149.57
the end of the last year
The opening balance of retained
48746028613.0844364203149.57
earnings after adjustment
Add: net profit attributable to
owners of the parent
6673388602.1210015930040.27
company for the current
period
Less: Dividends payable on common
7020034044.845634104576.76
shares
Retained earnings at the end of the
48399383170.3648746028613.08
current reporting period
Notes for adjusting undistributed profits at the beginning of the period:
(1) Retained Earnings at the beginning of the period were affected by CNY0.00 due to the retrospective
adjustment under the Accounting Standards for Business Enterprises and related new regulations.
(2) Retained Earnings at the beginning of the period were affected by CNY0.00 due to changes in accounting
policies.
(3) Undistributed profits at the beginning of the period were affected by CNY0.00 due to the correction of
significant accounting errors.
(4) Retained Earnings s at the beginning of the period were affected by CNY0.00 due to changes in the scope of
consolidation resulting from business combination involving enterprises under common control.
(5) Retained Earnings at the beginning of the period were affected by CNY0.00 in total due to other
adjustments
37. Operating revenue and cost of sales
Unit: CNY
Current period amount Previous period amount
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Operating incomes 28248295829.62 7328192444.18 32489436696.05 7761633378.60
Other operating
628001163.94423025912.48636840855.46438611876.82
income
Total 28876296993.56 7751218356.66 33126277551.51 8200245255.42
Whether the net profit is negative or not after deducting non-recurring profits and losses by audit
□Yes ?No
Information on Operating revenue and cost of sales
Unit: CNY
Category
Segment 1 Segment 2 Current period amount Total
of Contra. Operating Cost of .Operating Cost of .Operating Cost of . Operating Cost of sales
193revenue sales revenue sales revenue sales revenue
Commodit
y type
Including:
2824829 7328192 28248295829. 7328192444liquor
5829.62444.1862.18
6280011 4230259 423025912.4Other 628001163.94
63.9412.488
By
operating
regions
Including:
Type of
market or
customer
Including:
Type of
contract
Including:
By the
time of
commodit
y transfer
Including:
By the
contract
time
Including:
By the
selling
channel
Including:
2887629775121828876296993.7751218356
Total
6993.56356.6656.66
Other note:
N/A
The information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to performance obligations that have been contracted for but not yet
fulfilled or not yet completed at the end of the reporting period is CNY 5982340689.50. Among this amount it
is expected that CNY 5982340689.50 will be recognized as revenue in the fiscal year 2025.
38. Taxes and surcharges
Unit: CNY
Item Current period amount Previous period amount
Consumption tax 4027311662.17 4349218770.04
Urban maintenance and construction tax 332521680.10 397160440.05
Educational surcharge 327244327.65 392222222.83
Resource tax 1087416.08
194Property tax 70094408.78 64961335.23
Land use tax 20764356.64 18966528.89
Vehicle and vessel tax 8259.90 8811.30
Stamp tax 46104635.68 46044367.98
Environmental protection tax 950205.64 663116.03
Total 4826086952.64 5269245592.35
39. General and administrative expenses
Unit: CNY
Item Current period amount Previous period amount
Payroll 825591922.36 733508090.53
Travel expense 31334670.57 25415153.72
Office allowance 7059860.21 8557932.30
Water electric and steam expense 68267243.34 72246397.65
Business entertainment expense 36329981.04 26452270.06
Depreciation cost 366927532.26 408509046.01
Repair charge 50368445.90 50787009.79
Amortization of intangible assets 61096644.50 59054597.55
Vehicle use expense 20934476.56 20497511.65
Shipping and handling cost 27325505.21 26862025.90
Material consumption 81337647.08 56972511.21
Labor cost 40767488.04 42345481.68
Other expense 307388885.28 233215121.01
Total 1924730302.35 1764423149.06
40. Selling and distribution expenses
Unit: CNY
Item Current period amount Previous period amount
Advertising and promotion expense 3648740884.77 3460573010.51
Payroll 1199353317.76 1278306975.33
Travel expense 485971661.37 473214108.76
Labor expense 24494592.14 29938594.80
E-commerce expenses 68031081.97 57389122.19
Other expense 89647006.78 87531889.03
Total 5516238544.79 5386953700.62
41. Research & Development expenses
Unit: CNY
Item Current period amount Previous period amount
Material expenses 38414007.23 157434871.03
Payroll 47717944.83 79372512.44
Other expense 18664455.20 47946497.86
Total 104796407.26 284753881.33
42. Financial expenses
Unit: CNY
Item Current period amount Previous period amount
Interest expense 2955080.49 1707107.98
Bill discount expense 4903825.46 5362271.92
195Interest income -621439988.97 -765369577.25
Losses from currency exchange (Less:
-3627396.73910236.76
income)
Bank charges 6318485.61 2864391.96
Total -610889994.14 -754525568.63
43. Other income
Unit: CNY
Sources of other income Current period amount Previous period amount
Government grants received 50445321.61 51085965.67
Withholding personal tax commission 9222612.52 5093433.86
Total 59667934.13 56179399.53
44. Gains/losses of changes in fair value
Unit: CNY
Gains/losses of changes in fair value Current period amount Previous period amount
Held-for-trading financial assets -396164080.43 -37082477.77
Total -396164080.43 -37082477.77
45. Investment income
Unit: CNY
Item Current period amount Previous period amount
Investment income from long-term equity
-7094112.58-2070468.13
investments under the equity method
Investment income from financial assets held for
14472318.3836767861.85
trading during the holding period
Investment income from disposal of financial
153373438.80248582039.81
assets held for trading
Termination of recognition of financial assets
-14336475.80-27758655.92
measured at amortized cost and the related gains
Total 146415168.80 255520777.61
46. Credit Impairment Loss
Unit: CNY
Item Current period amount Previous period amount
Credit impairment losses of accounts receivables -247028.15 1200734.41
Credit impairment losses of other receivables 914237.08 -319351.09
Total 667208.93 881383.32
47. Losses from asset impairment
Unit: CNY
Item Current period amount Previous period amount
Losses on inventory devaluation and Contract assets
-11203156.73-2742667.54
impairment loss
Others -85350.70
Total -11203156.73 -2828018.24
48. Gains from disposal of assets
Unit: CNY
Gains from disposal of assets Current period amount Previous period amount
196Gains from disposal of fixed assets -2729328.84 -5304286.63
Gains from disposal of right-of-use
21309.31
assets
Total -2729328.84 -5282977.32
49. Non-operating income
Unit: CNY
Amount included in non-
Item Current period amount Previous period amount recurring profit and loss in
current period
Liquidated damages income 5865531.06 12327450.94 5865531.06
Compensation payment 13181980.36 17220582.75 13181980.36
Account payables that are
1549941.67
unable to pay
Gain arising from the excess of
the investor's share of the fair
value of the identifiable net
13641150.4813641150.48
assets of an investee over the
cost of the investment in an
associate.Others 19758090.91 8078813.47 19758090.91
Total 52446752.81 39176788.83 52446752.81
50. Non-operating expenses
Unit: CNY
Amount included in non-
Item Current period amount Previous period amount recurring profit and loss in
current period
Donation expenses 18008000.00 51640406.00 18008000.00
Losses from disposal of
37519936.375092844.3537519936.37
fixed assetn
Integrated fund 55808.14 53621.46
Compensation expenses 2806650.92 435681.98 2806650.92
Other Income 11749915.56 6690744.46 11749915.56
Total 70140310.99 63913298.25 70084502.85
51. Income tax expense
(1) Details of income tax expense
Unit: CNY
Item Current period amount Previous period amount
Income tax for the current reporting
2516808714.603009825870.95
period
Deferred income tax expenses -40187922.88 187238691.65
Total 2476620791.72 3197064562.60
(2) Adjustment for accounting profit and income tax expense
Unit: CNY
Item Current period amount
197Total profit 9143076611.68
Income tax expenses determined by statutory/applicable
2285769152.92
tax rate
Impact from subsidiaries’ different tax rates -2109388.36
Adjust for impact from income tax expense in previous
6019375.58
period
Tax effect of non-taxable income -1844551.45
Impact of non-deductible costs expenses and losses 11689862.81
Deductible from deferred tax assets in previous period -148346.86
Impact of deductible temporary differences or deductible
losses for which no deferred income tax assets is recognized 202820484.15
for the current period
Impact of additional deduction of R&D expenses -25575797.07
Other
Income tax expense 2476620791.72
52. Net other comprehensive income
Refer to note 34 for details.
53. Consolidated cash flow items
(1) Cash related to operation activities
Cash received from other operation activities
Unit: CNY
Item Current period amount Previous period amount
Interest income 968217714.81 510038375.40
Liquidated damages income 5865531.06 12327450.94
Government grants 49658121.61 46328965.67
Charges of withholding individual
9222612.525093433.86
income tax
Others 90638403.62 326642759.68
Total 1123602383.62 900430985.55
Cash paid for other operating activities
Unit: CNY
Item Current period amount Previous period amount
Transportation fee 27952927.32 25051690.74
Advertising promotion expense 3621048705.65 3540003293.93
Repair charge 47723582.77 45704796.31
Travel expense 531626092.34 503056183.81
Entertainment expense 48498800.58 43206639.87
Labor expense 63302329.76 73562470.06
Others 548168122.79 566359261.99
Total 4888320561.21 4796944336.71
198(2) Cash paid for other financing activities
Other cash received relating to financing activities
Unit: CNY
Item Current period amount Previous period amount
Other cash paid relating to financing activities
Unit: CNY
Item Current period amount Previous period amount
Lease payment 29771076.14 31233718.70
Total 29771076.14 31233718.70
Changes in liabilities generated from financing activities
?Applicable □N/A
Unit: CNY
Increase for the period Decrease for the period
Current period Previous period
Item
amount Non-cash Cash change Non-cash change Cash change amount
change
Lease
liabilities
(including
non-current 73790632.28 20956101.46 29771076.14 1252567.29 63723090.31
liabilities due
within one
year)
Dividends
7020034044.847020034044.84
payable
Total 73790632.28 7040990146.30 7049805120.98 1252567.29 63723090.31
54. Supplementary Information about Cash Flow Statement
(1) Supplementary information about of cash flow statement
Unit: CNY
Item Current period amount Previous period amount
Reconciliation of net profit to cash
flow from operating activities
Net profit 6666455819.96 10020768556.47
Add: Impairment of assets 10535947.80 1946634.92
Fixed assets depreciation 586592227.18 639335568.28
Right-of-use assets depreciation 32397883.52 27594763.53
Amortization of intangible assets 61305706.85 59054597.55
Amortization of long-term
17125968.184026169.92
deferred expenses
Gains on disposal of fixed
assets intangible assets and 37268976.98 8522287.93
other long-term assets
Fixed asset scrapping losses 2980288.23 1853533.74
Losses (gains) from changes in fair
396164080.4337082477.77
value
Financial expense -672316.24 2617344.74
199Investments income -146415168.80 -255520777.61
Decrease in deferred tax asset 83804944.67 180381423.47
Increase in deferred tax liabilities -123993077.06 6857126.34
Decrease in inventory -843101567.99 -1226697174.83
Decrease in operation receivables -651364248.55 380090873.53
Increase in operation payables -1830670724.59 -3582948946.71
Others 330296496.71 -174743591.08
Net cash flow from operating activities 4628711237.28 6130220867.96
Significant investing and financing
activities not Involving cash flow:
Conversion of debt into capital
Convertible corporate bonds maturing
within one year
Assets under leases
Net change in cash &cash equivalents
Closing balance of cash 21481311610.75 25201023553.40
Less: Opening balance of cash 25201023553.40 24019016540.72
Add: Closing balance of cash equivalents
Less: Opening balance of cash
equivalents
Net Increase (decrease) in cash and
-3719711942.651182007012.68
cash equivalents
(2) Composition of cash and cash equivalents
Unit: CNY
Item Closing balance Opening balance
Cash 21481311610.75 25201023553.40
Including: cash on hand 292.01 292.01
Unrestricted bank deposit 21421579963.54 25154451473.76
Cash equivalents 59731355.20 46571787.63
Closing balance of cash and cash
21481311610.7525201023553.40
Equivalents
(3) Monetary funds not classified as cash and cash equivalents
Unit: CNY
Item Current period amount Previous period amount Reason
Interest receivable on time
264986367.62 611764093.46 Interest accrued
deposits
Freeze funds 2000000.00 Funds frozen
Total 266986367.62 611764093.46
55. Foreign currency transactions
(1) Foreign currency balance
Unit: CNY
Balance in foreign currency at Balance of CNY converted at the
Item Exchange rate
the end of the reporting period end of the reporting period
Cash and cash equivalents 50427535.94
200Including ：USD 3453081.61 7.1884 24822131.85
EUR 743307.25 7.5257 5593907.37
HKD 5441513.18 0.9260 5039058.87
AUD 305995.50 4.5070 1379121.72
CLP 1806447619.00 0.007232 13063382.32
GBP 58385.26 9.076500 529933.81
Accounts receivables
Including ：USD
EUR
HKD
Other receivables 116383.93
Including ：HKD 125679.16 0.9260 116383.93
Other payable 74083.20
Including ：HKD 80000.00 0.9260 74083.20
Long-term loans
Including ：USD
EUR
HKD
(2) Description of the overseas business entity including the important foreign business entity which 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
Functional
Foreign business entities Operation site Choosing reason
currency
Currency in the main
JSSJ Industry (HK) Holdings Co. Limited Hong Kong China HKD economic environment of
business operations
Currency in the main
Hong Kong Zhaiugo International Trade
Hong Kong China HKD economic environment of
Co. Ltd.business operations
Currency in the main
ZYG E-Commerce HK Limited Hong Kong China HKD economic environment of
business operations
Currency in the main
ZYG LTD Cayman Islands USD economic environment of
business operations
Currency in the main
YangHe International Investment Ltd British Virgin Islands USD economic environment of
business operations
Currency in the main
ZYG TECHNOLOGY INVESTMENT LTD British Virgin Islands USD economic environment of
business operations
Currency in the main
YANGHE CHILE SPA Santiago Chile CLP economic environment of
business operations
Currency in the main
Yanghe Hong Kong Distillery Co. Ltd. Hong Kong China HKD economic environment of
business operations
201VIII. Research and development expenditures
Item Current period amount Previous period amount
Material costs 38414007.23 157434871.03
Payroll 47717944.83 79372512.44
Other expenses 18664455.20 47946497.86
Total 104796407.26 284753881.33
Including ：expensed R&D expenses 104796407.26 284753881.33
IX. Changes in consolidated scope
1. Changes of Consolidation Scope due to Other Causes
Explain the change of merger scope caused by other reasons (such as new subsidiary liquidation subsidiary
etc.) and the relevant situation
(1) Set up subsidiaries
a) The holding subsidiary Jiangsu Yangmi Liwei Distillery Co. Ltd. subscribed capital of CNY10 million to
establish Tibet Yangmiwei Distillery Co. Ltd. which has been included in the scope of consolidation for the
consolidated financial statements starting from January 2024.b) The holding subsidiary Jiangsu Yiguo Xiang Biotechnology Co. Ltd. subscribed capital of CNY2 million to
establish Suqian Yiguo Xiang Sales Co. Ltd. which has been included in the scope of consolidation for the
consolidated financial statements starting from June 2024.c) The holding subsidiary Jiangsu Yiguo Xiang Biotechnology Co. Ltd. subscribed capital of CNY1 million to
establish Hangzhou Yiguo Xiang Brand Operation Management Co. Ltd. which has been included in the scope of
consolidation for the consolidated financial statements starting from February 2024.d) The company subscribed capital of CNY20 million to establish Hainan Yanghe Trading Co. Ltd. which has
been included in the scope of consolidation for the consolidated financial statements starting from July 2024.
(2) Deregistration of Subsidiaries
a) The holding subsidiary Jiangsu Shiyang Network Technology Co. Ltd. has completed its industrial and
commercial deregistration and has been excluded from the scope of consolidation for the consolidated financial
statements starting from November 2024.b) The holding subsidiary Jiangsu Yanghe Weiketang Network Technology Co. Ltd. has completed its
industrial and commercial deregistration and has been excluded from the scope of consolidation for the
consolidated financial statements starting from December 2024.X. Interests in other entities
1. Interests in subsidiaries
(1) Group composition:
Unit: CNY
Registere Major Place of Shareholding
Name of Nature of
d capital business registratio Acquisition method
subsidiaries business
location n Direct Indirect
Nanjing Nanjing
Nanjing Yanghe 100000
Jiangsu Jiangsu Commerce 100.00% Establishment
Blue Classic Co. Ltd 0.00
province province
Beijing Yanghe 300000 Fengtai Fengtai Commerce 100.00% Establishment
202Commerce and 0.00 Beijing Beijing
Trade Co. Ltd.Jiangsu Huaqu Nanjing Nanjing
500000
Wine Group Co. Jiangsu Jiangsu Commerce 97.00% Establishment
00.00
Ltd. province province
Suqian Tianhai Suqian Suqian
500000.
Commerce and Jiangsu Jiangsu Commerce 100.00% Establishment
00
Trade Co. Ltd. province province
Suqian Yanghe Suqian Suqian
700000.
Guibinguan Co. Jiangsu Jiangsu Hotel industry 100.00% Establishment
00
Ltd. province province
Suqian Suqian
Su Wine Group 334400
Jiangsu Jiangsu Commerce 83.63% 16.37% Establishment
Trade Co. Ltd 000.00
province province
Jiangsu Yanghe
Suqian Suqian
Liquor Operation 100000
Jiangsu Jiangsu Commerce 100.00% Establishment
Management Co. 00.00
province province
Ltd.Jiangsu Shuanggou Sihong Sihong
500000
Liquor Operation Jiangsu Jiangsu Commerce 100.00% Establishment
0.00
Co. Ltd. province province
Jiangsu Dongdi Suqian Suqian
500000
Union International Jiangsu Jiangsu Commerce 100.00% Establishment
0.00
Trade Co. Ltd. province province
Jiangsu
Suqian Suqian
Dongdixinghui 500000
Jiangsu Jiangsu Commerce 100.00% Establishment
International Trade 0.00
province province
Co. Ltd.Suqian Suqian
Suqian Blue Dream 500000.Jiangsu Jiangsu Commerce 100.00% Establishment
Trade Co. Ltd. 00
province province
Siyang Siyang
Siyang Lantu Liquor 300000
Jiangsu Jiangsu Commerce 100.00% Establishment
Operation Co. Ltd. 0.00
province province
JSSJ Industry (HK) Hong
Hong Kong
Holdings Co. Kong CORP 100.00% Establishment
China
Limited China
Shiyan Yunxian
Hubei Lihuacun 200000
Hubei Hubei Commerce 100.00% Establishment
Trade Co. Ltd. 0.00
province province
Business
Jiangsu Shuanggou Sihong Sihong Liquor combinations
110000
Distillery Stock Co. Jiangsu Jiangsu manufacture 99.99% 0.01% involving enterprises
000.00
Ltd. province province and sales not under common
control
Business
Sihong Shuanggou Sihong Sihong Waste combinations
250000
Antai Waste Jiangsu Jiangsu material 100.00% involving enterprises
0.00
Recycling Co. Ltd. province province recycle not under common
control
Business
Hubei Lihuacun Shiyan Yunxian Process liquor combinations
500000
Liquor Industry Co. Hubei Hubei wine and fruit 100.00% involving enterprises
0.00
Ltd. province province wine not under common
control
Manufacture Business
Ningxiang Ningxiang Ningxiang and sale of combinations
500000.
Miluochun Liquor Hunan Hunan liquor and 100.00% involving enterprises
00
Industry Co. Ltd. province province compound not under common
wine control
Binxian Binxian Business
Harbin Binzhou 220000
Heilongjiang Heilongjian Liquor-making 100.00% combinations
Brewery Co. Ltd. 0.00
province g province involving enterprises
203not under common
control
Assets/invest
Su Wine Group
Nanjing Nanjing ment
Jiangsu Wealth 300000
Jiangsu Jiangsu management 100.00% Establishment
Management Co. 0000.00
province province information
Ltd.consultation
Ningxiang Ningxiang Ningxiang
200000
Miluochun Trade Hunan Hunan Commerce 100.00% Establishment
0.00
Co. Ltd. province province
Suqian Suqian
Suqian Blue Sky 200000
Jiangsu Jiangsu Commerce 100.00% Establishment
Trade Co. Ltd. 0.00
province province
Liquor
compound
Shiyan Yunyang Shiyan Shiyan
200000 wine health
Lihuacun Package Hubei Hubei 100.00% Establishment
0.00 wine
Service Co.Ltd. province province
packaging
service
Business
Nanjing Nanjing combinations
Jiangsu Zhaiugou E- 198670
Jiangsu Jiangsu Commerce 100.00% involving enterprises
commerce Co. Ltd 000.00
province province not under common
control
Business
Freight
NanjingTongmeng Nanjing Nanjing combinations
200000 Transport
City Logistics Co. Jiangsu Jiangsu 99.99% involving enterprises
00.00 Warehouse
Ltd. province province not under common
service
control
Business
Freight
Nanjing Jinling Nanjing Nanjing combinations
100000 Transport
Tongmeng City Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Logistics Co. Ltd. province province not under common
service
control
Business
Freight
Huaian Tongmeng Huaian Huaian combinations
100000 Transport
City Logistics Co. Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Ltd. province province not under common
service
control
Business
Changzhou Freight
Changzhou Changzhou combinations
Jiezzhong 100000 Transport
Jiangsu Jiangsu 51.00% involving enterprises
Tongmeng City 00.00 Warehouse
province province not under common
Logistics Co. Ltd. service
control
Business
Freight
Nantong Tongmeng Nantong Nantong combinations
100000 Transport
City Logistics Co. Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Ltd. province province not under common
service
control
Business
Freight
Suzhou Tongmeng Suzhou Suzhou combinations
100000 Transport
City Logistics Co. Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Ltd. province province not under common
service
control
Business
Freight
Taizhou Tongmeng Taizhou Taizhou combinations
100000 Transport
City Logistics Co. Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Ltd. province province not under common
service
control
Freight Business
Wuxi Tongmeng Wuxi Wuxi
100000 Transport combinations
City Logistics Co. Jiangsu Jiangsu 51.00%
00.00 Warehouse involving enterprises
Ltd. province province
service not under common
204control
Business
Freight
Yancheng Yancheng Yancheng combinations
100000 Transport
Tongmeng City Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Logistics Co. Ltd. province province not under common
service
control
Business
Freight
Zhenjiang Zhenjiang Zhenjiang combinations
100000 Transport
Tongmeng City Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Logistics Co. Ltd. province province not under common
service
control
Business
Freight
Yangzhou Yangzhou Yangzhou combinations
100000 Transport
Tongmeng City Jiangsu Jiangsu 53.00% involving enterprises
00.00 Warehouse
Logistics Co. Ltd. province province not under common
service
control
Business
Freight
Suqian Tongmeng Suqian Suqian combinations
100000 Transport
City Logistics Co. Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Ltd. province province not under common
service
control
Business
Freight
Pizhou Tongmeng Xuzhou Xuzhou combinations
100000 Transport
City Logistics Co. Jiangsu Jiangsu 51.00% involving enterprises
00.00 Warehouse
Ltd. province province not under common
service
control
Business
Lianyungang Freight
Lianyungang Lianyungan combinations
Huaxing Tongmeng 100000 Transport
Jiangsu g Jiangsu 51.00% involving enterprises
City Logistics Co. 00.00 Warehouse
province province not under common
Ltd. service
control
Business
Jiangsu Zhaibianli Nanjing Nanjing combinations
100000
E-commerce Co. Jiangsu Jiangsu Commerce 100.00% involving enterprises
00.00
Ltd province province not under common
control
Business
Hongkong Zhaiugou Hong combinations
Hong Kong
International Trade Kong Commerce 100.00% involving enterprises
China
Co. Ltd China not under common
control
Business
Guizhou Guijiu
Guiyang Guiyang combinations
Liquor Operation 816000
Guizhou Guizhou Commerce 100.00% involving enterprises
Management Co. 000.00
province province not under common
Ltd.control
Guiyang Guiyang
Guizhou Guijiu 200000
Guizhou Guizhou Commerce 100.00% Establishment
Trade Co. Ltd. 0.00
province province
Business
Hong combinations
ZYG E-Commerce Hong Kong Industrial
Kong 100.00% involving enterprises
HK Limited China investment
China not under common
control
Business
combinations
Cayman Cayman Industrial
ZYG LTD 69.08% involving enterprises
Islands Islands investment
not under common
control
YangHe British
British Virgin Industrial
International Virgin 100.00% Establishment
Islands investment
Investment Ltd Islands
205Healthy wine
Jiangsu Shuanggou
Suqian Suqian nutrition and
Healthy Liquor 100000
Jiangsu Jiangsu health food 100.00% Establishment
Research institute 00.00
province province research and
Co. Ltd.development
Business
British combinations
ZYG TECHNOLOGY British Virgin Industrial
Virgin 71.03% involving enterprises
INVESTMENT LTD Islands investment
Islands not under common
control
Jiangsu Blue Dream Suqian Suqian
100000
E- commerce Co. Jiangsu Jiangsu Commerce 100.00% Establishment
00.00
Ltd. province province
Business
Kweichow Moutai Renhuai Renhuai Liquor combinations
260000
Town Guijiu Liquor Guizhou Guizhou manufacture 100.00% involving enterprises
000.00
Industry Co. Ltd province province and sales not under common
control
Road general
cargo
Suqian transport
Suqian Su Wine 500000 SuqianJiang
Jiangsu cargo 100.00% Establishment
Logistics Co. Ltd. 0.00 su province
province distribution
freight
forwarder
Movable and
real estate
investment
Santiago Santiago
YANGHE CHILE SPA services 100.00% Establishment
Chile Chile
building
construction
services
Foreign
Jiangsu Yanghe investment
Suqian Suqian
Investment 300000 Asset
Jiangsu Jiangsu 50.00% 50.00% Establishment
Management Co. 0000.00 management
province province
Ltd. Investment
consulting
Enterprise
management
consulting;
Su Wine Group Industrial
Nanjing Nanjing
Nanjing Operation 500000 investment;
Jiangsu Jiangsu 100.00% Establishment
Management Co. 000.00 Food sales;
province province
Ltd. Gift sales;
House lease;
Hotel
management
Jiangsu Yangming Nanjing Nanjing
100000 Food sales
Liwei liquor Co. Jiangsu Jiangsu 100.00% Establishment
00.00 Gift sales
Ltd. province province
Yanghe Hong Kong HongKong Hong Industrial
100.00% Establishment
Distillery Co. Ltd. China KongChina investment
Painting and
calligraphy
creation
exhibition;
Jiangsu Yanghe Nanjing Nanjing
200000 Academic
Calligraphy and Jiangsu Jiangsu 100.00% Establishment
0.00 research;
Painting Academy province province
Public art
education;
Cultural and
creative
206products
development
and
promotion
Sihong Sihong
Jiangsu Shuanggou 100000
Jiangsu Jiangsu Commerce 100.00% Establishment
Wine Sales Co. Ltd 000.00
Province Province
Internet
Jiangsu Jiushang Suqian Suqian
200000 information
Internet Jiangsu Jiangsu 51.00% Establishment
00.00 service
Technology Co. LTD Province Province
alcohol sales
Tobacco retail
Jiangsu Yanghe Suqian Suqian catering
500000
Cultural Tourism Jiangsu Jiangsu accommodati 100.00% Establishment
00.00
Co. LTD Province Province on tourism
business
Tobacco retail
Jiangsu Yanghe Suqian Suqian catering
200000
Cultural Tourism Jiangsu Jiangsu accommodati 80.00% Establishment
00.00
Operation Co. LTD. Province Province on tourism
business
Wine
Siyang Blue Sky Sihong Sihong
240000 production
Packaging Service Jiangsu Jiangsu 100.00% Establishment
00.00 and packaging
Co. Ltd Province Province
services
Liquor sales
Lhasa City Lhasa City
Tibet Earth's Third food
400000 Tibet Tibet
Pole Liquor Co. production 60.00% Establishment
000.00 Autonomou Autonomo
Ltd. and food
s Region us Region
retailing
Guizhou Guijiu Zunyi City Zunyi City
500000.
Liquor Industry Guizhou Guizhou Commerce 100.00% Establishment
00
Operation Co. Ltd Province Province
Jiangsu Ulan Nanjing Nanjing
Shangyin Catering 100000 Jiangsu Jiangsu Catering
100.00% Establishment
Management Co. 00.00 province province Management
Ltd.Jiangsu Yanghe Nanjing Nanjing Equity
Dream Investment 300000 Jiangsu Jiangsu investment
100.00% Establishment
Management Co. 0000.00 province province
Ltd
Jiangsu Yanghe Nanjing Nanjing Equity
Blue Investment 100000 Jiangsu Jiangsu investment
100.00% Establishment
Management Co. 00.00 province province
Ltd.Suqian Suqian Food
Jiangsu Jiangsu production
Province Province beverage
Jiangsu Yiguoxiang production
150000
Biotechnology Co. liquor 75.00% Establishment
000.00
Ltd production
liquor sales
and food
retailing
Lhasa City Lhasa City Food Sales;
Tibet Tibet Food Import
Autonomou Autonomo and Export;
Jiangsu Yangmi s Region us Region Online Food
100000
Liwei Distillery Sales; 100.00% Establishment
00.00
Co. Ltd. Alcoholic
Product
Manufacturin
g; Liquor
207Business;
Food
Production;
Beverage
Production
Suqian Suqian Food Sales;
Jiangsu Yiguo Jiangsu Jiangsu Online Food
Xiang Province Province Sales; Liquor 200000
Business; 100.00% Establishment
Biotechnology 0.00 Internet
Co. Ltd. Information
Services Etc.Hangzhou Hangzhou Online Food
Zhejiang Zhejiang Sales; Food
Province Province Sales; Liquor
Jiangsu Yiguo Business;
Xiang Performance 100000
Brokerage; 100.00% Establishment
Biotechnology 0.00 Brand
Co. Ltd. Management;
Trade
Brokerage
etc.Dongfang Dongfang Food
Hainan Hainan Production;
Province Province Beverage
Production;
Alcoholic
Hainan Yanghe 200000 Product
100.00% Establishment
Trading Co. Ltd. 00.00 Manufacturin
g; Liquor
Business;
Food Sales;
Online Food
Sales etc.The shareholding ratio in the subsidiary is different from the voting ratio:
The basis for holding half or less of the voting rights but still controlling the invested entity and for
holding more than half of the voting rights but not controlling the invested entity :
For important structural subjects included in the scope of merging the basis of control:
Basis for determining whether the company is an agent or a principal:
Other note:
2. Interests in joint ventures and associates
(1) Important joint ventures or associates
Accounting
Name of Equity ownership percentage treatment for
Main
Joint venture Registered Nature of investments
operating
or associate location business in joint
location
company Direct Indirect ventures or
associates
Nanjing
Huatai
Equity
Yanghe Nanjing Nanjing investment Equity
Equity Jiangsu Jiangsu 60.00%
venture method
Investment province province
capital
Fund
(Limited
208Partnership)
Explanation of the difference between equity ownership percentage and voting rights in joint ventures or
associates:
Huatai Purple Gold Investment Co. Ltd. and Jiangsu Yanghe Blue Investment Management Co. Ltd. are
general partners while Jiangsu Yanghe Dream Investment Management Co. Ltd. and Nanjing Jiangning
High-tech Zone Technology Entrepreneurship Investment Management Co. Ltd. are limited partners.Huatai Purple Gold Investment Co. Ltd. subscribed for CNY1000 million with a contribution ratio of 20%;
Jiangsu Yanghe Blue Investment Management Co. Ltd. subscribed for CNY10 million with a contribution
ratio of 0.20%; Jiangsu Yanghe Dream Investment Management Co. Ltd. subscribed for CNY2990 million
with a contribution ratio of 59.80%; Nanjing Jiangning High-tech Zone Technology Entrepreneurship
Investment Management Co. Ltd. subscribed for CNY1000 million with a contribution ratio of 20%. The
partnership has established an Investment Decision Committee consisting of five members with Huatai
Purple Gold Investment Co. Ltd. appointing 2 members Jiangsu Yanghe Blue Investment Management Co.Ltd. appointing 2 members and Nanjing Jiangning High-tech Zone Technology Entrepreneurship
Investment Management Co. Ltd. appointing 1 member. The executive managing partner is Huatai Purple
Gold Investment Co. Ltd.
(2) Summary of financial information of significant joint ventures and associates
Unit: CNY
Closing balance/Current period Opening balance/Previous period
amount amount
Current assets 1983501827.93 1992133681.31
Non-current assets 4484950.53 2760403.16
Total assets 1987986778.46 1994894084.47
Current liabilities 109970.74
Non-current liabilities
Total liabilities 109970.74
Minority interests
Equity attributable to owners of the
1987986778.461994784113.73
parent company
Net assets attributable to
shareholders based on ownership 1192792067.08 1196870468.24
proportion
Adjustments:
--Goodwill
--Unrealized profits from internal
transactions
--Others
Carrying value of investments in
1192792067.081196870468.24
associates' equity
Fair value of equity investments in
associates with publicly quoted
prices
Revenue 40674811.06 41196288.60
Net profit -6797335.27 -5216821.96
Net profit from discontinued
209operations
Other comprehensive income
Total comprehensive income -6797335.27 -5216821.96
Dividends received from
associates during the current year
(3) Summary of financial information of insignificant joint ventures and associates
Unit: CNY
Closing balance/Current period Opening balance/Previous period
amount amount
Associates:
The aggregate amount of the
following items calculated based on
the Company’s equity share
percentage of the associates
joint ventures:
Total carrying amount of investment 42616674.79 32968324.80
The sum of the following items
calculated according to the
shareholding ratio
--Net profit -3015711.42 1059625.04
-- Total comprehensive income -3015711.42 1059625.04
XI. Government grants
1. Government grants recognized in the current period's income statement
?Applicable □N/A
Unit: CNY
Accounting item Current period amount Previous period amount
Other income 50445321.61 51085965.67
XII. Risks related to financial instruments
The Group is exposed to various financial risks in the ordinary course of business mainly including: credit
risk liquidity risk market risk etc. The Company's management is fully responsible for the formulation of
risk management objectives and policies and takes responsibility for risk management objectives and
policies. The objective of the Company’s risk management is to identify and analysis risk minimizing the
adverse impact of financial risks without excessive influence on the company's competitiveness and
resilience.
1. Credit risks
Credit risk refers to the risk that one party of the financial instruments fails to perform its obligations and
causes the financial losses of the other party. Credit risk mainly related to notes receivables and accounts
receivable in order to control the risk the Company takes the following measures:
(1) Bank deposit
The company's bank deposits are mainly deposited in state-owned holding banks large and medium-sized
listed banks and other commercial banks with high credit. There is no significant credit risk and no
210significant loss caused by default.
(2) Notes receivables and accounts receivables
The Company mainly trades with distributors according to company credit policy and adopts the way of
delivery after the payments finished. For some group purchase business it only deals with the reputable
group clients and continuously monitors the balance of notes receivables and accounts receivables as a
result there is no collateral required and credit risk management concentrates on the clients. The balance
of notes receivables and accounts receivables are small till 31 December 2024. The Company does not hold
any collateral or other credit enhancement for the balance of accounts receivables.
(3) Other receivable
The other receivables are mainly saving deposits involving infringement dispute deposits and petty cash
employee business loan and so on. The Company manages other receivables and continuously monitors its
balance to ensure the Company not to face significant bad debt risks.
2. Liquidity risk
Liquidity risk refers to the risk of capital shortage when enterprise performs its obligations related to
financial liabilities. The Company uses various financing methods such as bill clearing and bank loan to
optimize the financing structure and maintain the balance between financing continuity and flexibility.The maturity of the financial liabilities held by the Company according to the undiscounted remaining
contractual obligations is analyzed as follows:
Closing balance
Item Within 1 year 1-2 years 2-3 years Over 3 years Total
Account
payables 1264620215.06 1264620215.06
Other
payables 2066406374.07 2066406374.07
Long-term
payables 195638914.53 195638914.53
(Continued)
Opening balance
Item
Within 1 year 1-2 years 2-3 years Over 3 years Total
Account payables 1425873552.42 1425873552.42
Other payables 2024640485.37 2024640485.37
Long-term payables 196013394.53 196013394.53
3. Market risk
Market risk is the fair value of financial instrument or future cash flow fluctuates due to the fluctuation of
market price and it mainly includes: interest rate risk foreign exchange risk etc.
(1) Interest rate risk
Interest rate risk refers to the fair value of financial instrument or future cash flow fluctuates due to the
fluctuation of interest rate. The Company faces the risk of market interest rate change mainly related to the
Company's borrowing limit.
(2) Foreign exchange risk
Foreign exchange risk arises from fluctuation in exchange rate relevant to the assets and liabilities in foreign
currency. The less import and export business happened the lower impact of exchange rate fluctuation on
company's operation.The amount in CNY of the Company’s assets and liabilities shown in foreign currencies as follows:
211Closing balance Opening balance
Balance in foreign Exchange Balance in foreign Exchange
Item Balance in CNY Balance in CNY
currency rate currency rate
Cash and
cash
equivalents
Include: USD 3453081.61 7.1884 24822131.85 1571981.46 7.0827 11133873.05
EUR 743307.25 7.525700 5593907.37 1497199.73 7.8592 11766792.12
AUD 305995.50 4.507000 1379121.72 420201.85 4.8484 2037306.65
HKD 5441513.18 0.9260 5039058.87 3085498.47 0.9062 2796140.42
CLP 1806447619.00 0.007232 13063382.32 937238985.00 0.008001 7498822.93
CAD 0.43 5.3673 2.31
GBP 58385.26 9.076500 529933.81
Other
receivables
125679.16 0.9260 116383.93 205679.16 0.9062 186390.57 Include:HKD
Other payables
Include: USD 512.13 7.0827 3627.26
HKD 80000.00 0.9260 74083.20 80000.00 0.9062 72497.60
CLP 222853.00 0.008001 1783.04
50469836.67 35341420.15 Net amount
The amount of foreign currency financial assets and financial liabilities of the company is small and exchange
rate fluctuations have little impact on the company's business performance.XIII. Fair value disclosure
1. The Financial Assets and Financial Liabilities Measured at Fair Value at the end of the
Reporting Period
Unit: CNY
Closing fair value
Item
Level 1 Level 2 Level 3 Total
Continuous fair value
--------
measurement
1.Financial assets held for
6380145437.146380145437.14
trading
(1) Financial assets measured
at fair value with changes 6380145437.14 6380145437.14
recognized in profit or loss.a) Debt instrument
6380145437.146380145437.14
investment
2.Other non-current financial
1025573681.063588575118.154614148799.21
assets
Equity instrument
1025573681.06 3588575118.15 4614148799.21 investment
3.Receivables Financing: 1090851688.67 1090851688.67
Bank acceptance bill 1090851688.67 1090851688.67
Total assets continuously
1025573681.0611059572243.9612085145925.02
measured at fair value
Non-Continuous fair value
--------
measurement
2122. Basis for determining the market price of continuous and non-continuous level 1 fair value
measurement items
Active market price
Item Fair value
Trading price Information source
Continuous fair value measurement
Other non-current financial assets 1025573681.06
Local open market closing
Equity instrument investment 1025573681.06 Closing price
price
Total assets continuously measured at
1025573681.06
fair value
3. Valuation techniques and qualitative and quantitative information of key parameters adopted
for continuous and non-continuous level 3 fair value measurement it
Item Fair value Valuation techniques
Continuous fair value measurement
1.Trading financial assets: 6380145437.14
Using expected rate of return
Debt instrument investment 6380145437.14 as a key reference for
evaluating fair value.
2.Other non-current financial assets: 3588575118.15
Using cost or the investee's
net assets at the end of the
Equity instrument investment 3588575118.15 period as a significant
reference for assessing fair
value.
3.Receivables Financing: 1090851688.67
Bank acceptance bill Using face value as a key
1090851688.67 reference for evaluating fair
value.Total assets continuously measured at fair value 11059572243.96
XIV. Related parties and related party transactions
1. The parent company of the Company
Name of Shareholding Voting Ratio by
Registration Registered
parent Business nature ratio by the the parent
place capital
company parent company company
Grain purchase; self-
supporting and agent of
all kinds of goods and
technology import and
export business (except
Jiangsu
for goods and technology
Yanghe
Suqian Jiangsu that the state limits CNY 1.5 billion 34.18% 34.18%
Group Co.enterprises to operate or
Ltd.prohibits the import and
export); nickel
ferromolybdenum
refined ferronickel nickel-
chromium pig iron nickel-
213chromium ores furnace
materials steel
machinery parts castings
light stabilizer 944 light
stabilizer 622 antioxidant
3114 organic fertilizers
compound fertilizers
chemical raw materials
(except for hazardous
materials) viscose Staple
fiber cotton balances
electric bicycles and their
accessories lithium
batteries hardware and
electricity sales; raw grain
sales; housing rental;
industrial investment;
municipal utility projects
building construction
projects tourism and
cultural industries
investment. (Items
subject to approval
according to law can only
carry out business
activities after approval
by the relevant
departments)
General: sales of
communications
equipment; optical
communications
equipment sales;
electronic product sales;
mobile communications
equipment sales; mobile
terminal equipment
sales; computer software
hardware and auxiliary
equipment wholesale;
software development;
information systems
integration services (in
addition to projects
subject to approval
according to law with a
business license to carry
out business activities
independently according
to law)
Information about the Company’s parent company:
The ultimate controlling party of the Company is the State-owned Assets Supervision and Administration
Commission of Suqian Municipal People's Government.Other statements:
2. Subsidiaries of the Company:
The information about the subsidiaries of the Company refers to NoteV.1 Interests in Subsidiaries.
3. Joint venture and associate of the Company
The information about the joint venture and associate of the Company refers to the Note V.2.
214Other joint ventures and associates whose related party transactions with the Company in the current period or
balance formed from related party transactions with the Company in the prior period as follows:
Name of joint venture and associate Relationship with the Company
Jiangsu Su Wine Cultural Transmission Co. Ltd. Associate
Nanjing Hesong Culture Technology Co. Ltd. Associate
Jiangsu Xinghe Investment Management Co. Ltd. Associate
Jiangsu Zhibo Brewing Technology Co. Ltd. Associate
4. Other related party
Name of other related party Relationship with the Company
Shanghai Haiyan Logistics Development Co. Ltd. Holding 9.67% shares
VSPT Vi?a San Pedro Tarapacá S.A. Joint stock company holding 12.50% shares
Shanghai Jieqiang Tobacco Sugar & Liquor Group Distribution controlled by a shareholder holding 3.97% of the
Co. Ltd. Company's shares.
5. Related party transactions
(1) Related party transactions regarding sales and purchases of goods provision of services and receiving
services
Statement of purchase of goods / Receipt of labor services
Unit: CNY
Whether
Approved exceeding the
Transaction Amount for the Amount for the
Related Party transaction approved
Content current period prior period
amount transaction
amount
VSPT Vi?a San
Pedro Tarapacá Red wine 14824418.75 No 10847369.03
S.A
Nanjing
Advertising and
Hesong Culture
general publicity 2793997.43 No 3691780.87
Technology
expense
Co. Ltd.Jiangsu Su
Wine Cultural Advertising
2745551.69 No
Transmission expenses
Co. Ltd.Jiangsu Zhibo Renovation of
Brewing fermentation
18106902.65 No
Technology cellars in the
Co. Ltd. workshop
Statement of sales of goods/ rendering of labor services
Unit: CNY
Related Party Transaction Content Current period amount Previous period amount
Shanghai Haiyan Logistics
Sales of liquor 6853890.08 16715216.83
Development Co. Ltd.Jiangsu Su Wine Cultural
Sales of liquor 64838.75 470992.66
Transmission Co. Ltd.Shanghai Jieqiang
Tobacco Sugar & Liquor
Sales of liquor 2845281.41
Group Distribution Co.Ltd.Nanjing Huatai Yanghe Management consulting
38291095.898297169.81
Equity Investment Fund services
215(Limited Partnership)
(2) Related party lease
The Company as a lessor
Unit: CNY
Amount in previous
Related party Types of Leased Assets Amount in current period
period
The Company as a lessee
Unit: CNY
Variable lease
Simplified rental
payments not
fees for short-term Interest expense
included in the Increased use
leases and low Rent paid on lease liabilities
Types measurement of rights assets value asset leases assumed
Related of lease liabilities（If （If Applicable）party Leased Applicable）
Assets Previou Previou Previou Previou Previou
Current Current Current Current Current
s s s s s
period period period period period
period period period period period
amount amount amount amount amount
amount amount amount amount amount
Jiangsu
Yanghe lease of 96330. 96330. 4236.3
Group houses 28 28 3
Co. Ltd
(3) Other related-party transactions
According to the Equity Transfer Agreement signed in March 2024 between the Company’s controlling subsidiary
Sujiu Group Jiangsu Wealth Management Co. Ltd. and Jiangsu Xinghe Investment Management Co. Ltd. Jiangsu
Xinghe Investment Management Co. Ltd. transferred its 37% equity interest in Nanjing Xinglun Venture Capital
Management Co. Ltd. to Sujiu Group Jiangsu Wealth Management Co. Ltd.
6. Receivables from and payables to related parties
(1) Payables
Unit: CNY
Item Related party Closing balance Opening balance
Shanghai Haiyan Logistics
Contract liabilities 2225250.44 2369114.16
Development Co. Ltd.Jiangsu Su Wine Cultural Transmission
Contract liabilities 3715442.12 3330783.71
Co. Ltd.Shanghai Jieqiang Tobacco Sugar &
Contract liabilities 3714513.27
Liquor Group Distribution Co. Ltd.VSPT
Accounts payables 7709524.65 1589.42
Vi?a San Pedro Tarapacá S.A.Shanghai Haiyan Logistics
Other Payables 80000.00 133000.00
Development Co. Ltd.Jiangsu Zhibo Brewing
Other Payables 2033700.00
Technology Co. Ltd.Jiangsu Su Wine Cultural Transmission
Other Payables 950000.00 950000.00
Co. Ltd.Shanghai Jieqiang Tobacco Sugar &
Other Payables 106143.60
Liquor Group Distribution Co. Ltd.
216XV. Commitments and contingencies
1. Significant commitments
Significant commitments as of the balance sheet date
By the end of 31 December 2024 there were no significant commitments needed to be disclosed.
2. Contingencies
(1) Significant contingencies existing at the balance sheet date
By the end of 31 December 2024 there were no significant commitments needed to be disclosed.XVI. Post balance sheet event
1. Profit distribution
Unit: CNY
Proposed dividend per 10 shares (yuan) 23.17
Proposed bonus shares per 10 shares (shares) 0
Proposed bonus shares per 10 shares (shares) 0
Dividend per 10 shares declared and approved for distribution
23.17
(yuan)
Bonus shares per 10 shares declared and approved for
0
distribution (shares)
Bonus shares per 10 shares declared and approved for
0
distribution (shares)
The Company intends to distribute a cash dividend of CNY
23.17 (including tax) per 10 shares to all shareholders based on
the existing total share capital of 1506445074 shares totaling
a cash distribution of CNY 3490433236.45 (including tax) with
no bonus shares and no capitalization. If there is any change in
Profit distribution plan
the total share capital of the Company before the share
registration date for the implementation of the equity
distribution the distribution ratio will be adjusted in
accordance with the principle that the total amount of
distribution remains unchanged.
2. Explanation of post-balance sheet date events for other assets and liabilities
Pursuant to the “Proposal on Interim Profit Distribution for the Year 2024” considered and approved at the Seventh
Meeting of the Eighth Session of the Board of Directors held on December 30 2024 the Company proposed to
distribute a cash dividend of CNY 23.30 (inclusive of tax) per 10 shares to all shareholders out of the unappropriated
profits on the basis of its existing total share capital of 1506445074 shares amounting to a total cash dividend
of CNY 3510017022.42 (including tax). This proposal was considered and approved at the First Extraordinary
General Meeting of 2025 held on January 15 2025 and implemented on January 27 2025.By the end of April 27 2025 the company has no post-balance sheet date events that require disclosure.
217XVII. Notes to major items of financial statements of parent company
1. Accounts receivable
(1)Analysis by aging
Unit: CNY
Aging Closing balance Opening balance
Within 1 year (including 1 year) 280389316.67 95503189.71
Total 280389316.67 95503189.71
(2) Disclosure of accounts receivable by categories
Unit: CNY
Closing balance Opening balance
Carrying balance Credit loss provision Carrying balance Credit loss provision
Type Proportion
Percentage Proportion Book value Percentage Book value
Amount Amount Amount Amount of
(%) of provision (%)
provision
Including:
Provision
for bad 194483.1 280194833.5
280389316.67100.00%0.07%95503189.71100.00%11580.390.01%95491609.32
debts by 7 0
portfolio
Including:
194483.1
Risk portfolio 6482772.23 2.31% 3.00% 6288289.06 386013.00 0.40% 11580.39 3.00% 374432.61
7
Other 273906544.4
273906544.4497.69%95117176.7199.60%95117176.71
portfolio 4
194483.1280194833.5
Total 280389316.67 100.00% 0.07% 95503189.71 100.00% 11580.39 0.01% 95491609.32
70
Provision for bad debts by portfolio: risk portfolio
Unit: CNY
Closing balance
Name of portfolio
Accounts receivables Provision for bad debt Proportion
Within 1 year 6482772.23 194483.17 3.00%
218Total 6482772.23 194483.17
Notes to determine provision for bad debt by portfolio:
Provision for bad debts by portfolio: other portfolio
Closing balance
Name of portfolio
Accounts receivables Provision for bad debt Proportion
other portfolio 273906544.44
Notes to determine provision for bad debt by portfolio:
If the Company uses the accounts receivable provision for bad debts according to the general model of expected credit loss please disclose the relevant
information of provision for bad debt by referring to the disclosure method of other receivables
□Applicable □N/A
219Unit: CNY
(3) Provision for bad debt that is accrued recovered or reversed during this period
Provision for bad debts during this period:
Unit: CNY
Changes in the current period
Opening
Category Recovered or Closing balance balance Provision Write off Others
reversed
Provision for
bad debt of
11580.39182902.78194483.17
accounts
receivables
Total 11580.39 182902.78 194483.17
Significant amount of reversal or recovery during this period
Unit: CNY
Company name Amount recovered or reversed Method
(4) Top five entities with the largest balances of the accounts receivables and contractual assets
Unit: CNY
Total closing Proportion in the
Closing balance of balance of the total accounts’
Closing balance of the
Company’s name the contractual accounts receivables and Provision amount
accounts receivables
assets receivables and contractual assets
contractual assets (%)
First 156205384.04 156205384.04 55.71%
Second 111957542.60 111957542.60 39.93%
Third 5743617.80 5743617.80 2.05%
Fourth 5068200.00 5068200.00 1.81% 152046.00
Fifth 992240.00 992240.00 0.35% 29767.20
Total 279966984.44 279966984.44 99.85% 181813.20
2. Other receivables
Unit: CNY
Item Closing balance Opening balance
Dividend receivable 519220.27
Other receivables 430983882.60 2510474686.55
Total 430983882.60 2510993906.82
(1) Dividend receivable
1）Category of dividend receivable
Unit: CNY
Item Closing balance Opening balance
Jiangsu Yanghe Micro Guest Hall Network
519220.27
Technology Co. Ltd.Total 519220.27
(2) Other receivables
1) Disclosure of other receivable by nature
Unit: CNY
Nature of other receivables Closing balance Opening balance
220Payments by related parties within the
486966579.282509089391.72
Group
Guarantee deposit 15000000.00 15994592.00
Business loans and petty cash 386218.75 126160.91
Other receivables 2570110.19 2908216.70
Total 504922908.22 2528118361.33
2) Other receivables by aging
Unit: CNY
Aging Closing balance Opening balance
Within 1 year (including 1 year) 386165395.17 2493474240.21
1-2 years 84447915.02 3232853.31
2-3 years 2983896.32 419534.10
Over 3 years 31325701.71 30991733.71
3-4 years 400000.00 460000.00
4-5 years 460000.00 8830032.00
Over 5 years 30465701.71 21701701.71
Total 504922908.22 2528118361.33
3) According to the general model for expected credit losses
Provision for bad debts is made on the basis of a general model of expected credit losses:
Unit: CNY
Phase 1 Phase 2 Phase 3
Provisions for debts Future 12-month Lifetime ECL(without Lifetime ECL(with credit Total
ECL credit impairment) impairment)
Balance as at 1 January
202469877.2217573797.5617643674.78
Change of opening
balance as at 1 January
2024 in current period
Provision in 2024 -55416.56 56390769.00 56335352.44
Reversal in 2024 40001.60 40001.60
Balance as at 31
14460.6673924564.9673939025.62
December 2024
Basis of classification of stages and percentage of provision for bad debts
The provision for bad debts at the end of the period is based on a three-stage model as follows:
Provision ratio for bad
Stage Book balance Bad debts Book valuedebts(%)
Stage 1 430993506.51 14460.66 430979045.85
Stage 2
Stage 3 73929401.71 99.99 73924564.96 4836.75
total 504922908.22 14.64 73939025.62 430983882.60
Significant change of the book balance of provision during the period
□Applicable □N/A
4) Provision recovery or reversal for bad debt during this period
Provision for bad debts in the current period:
221Unit: CNY
Changes in the current period
Category Opening balance Recovered or Other Closing balance
Provision Write off
reversed changes
Provision for
other
17643674.7856335352.4440001.6073939025.62
receivables
bad debt
Total 17643674.78 56335352.44 40001.60 73939025.62
Significant amount of reversal or recovery during this period:
5) Top five entities with the largest balances of the other receivables
Unit: CNY
Proportion in Provisioning
Company’s Name Category Closing balance Aging total amount at
receivables period end
Siyang Tianlan
financial
Packaging Service 316497317.83 Within 1 year 62.68%
transactions
Co. Ltd.Guizhou Maotai
financial
Town Guijiu Liquor 84059865.02 1-2years 16.65%
transactions
Industry Co. Ltd
Within 1 year
41410000.00 1-2years
Harbin Binzhou financial 190000.002-3years
56407100.00
Brewery Co. Ltd. transactions 230000.00 3-4 years
11.17%56407100.00
400000.00 Over 5
years 13717100.00
Jiangsu Azure
Drinks Catering financial
24824920.22 Within 1 year 4.92%
Management Co. transactions
Ltd.Jiangsu Juntai
Properties Co. Lt.Suqian Guotai deposit 15000000.00 Over 5 years 2.97% 15000000.00
Department Store
Co. Ltd.合计496789203.0798.39%71407100.00
3. Long-term equity investments
Unit: CNY
Closing balance Opening balance
Item Impairment Impairmen
Book balance Book value Book balance Book value
provision t provision
Investment in 9524901378
9529141378.942000000.009527141378.949524901378.94
subsidiaries .94
Investments in
joint ventures 5216675.65 5216675.65 5300199.49 5300199.49
and associates
9530201578
Total 9534358054.59 2000000.00 9532358054.59 9530201578.43.43
(1) Investment in subsidiaries
Unit: CNY
Opening Increase or decrease in the current period Closing
Opening
Investee balance of Provision
Closing balance of
balance provision Increase Decrease for Others balance provision
for impairme for
222impairment nt impairment
Suqian Yanghe
700000.
Guibinguan Co. 700000.00
00
Ltd.Jiangsu
Shuanggou 173785972 173785
Distillery Stock 9.86 9729.86
Co. Ltd.Su Wine Trade 411027669. 411027
Group Co. Ltd. 08 669.08
Jiangsu Yanghe
Liquor
10983280.0109832
Operation
080.00
Management
Co. Ltd
Jiangsu
Dongdi Union
500000
International 5000000.00
0.00
Trade Co.Ltd.Jiangsu
Dongdixing
hui 500000
5000000.00
Internation 0.00
al Trade Co.Ltd
Siyang Lantu
Liquor 316170
3161700.00
Operation Co. 0.00
Ltd.Hubei
Lihuacun
300000
Liquor 3000000.00
0.00
Industry Co.Ltd.Ningxiang
Miluochun
212900
Liquor 2129000.00
0.00
Industry Co.Ltd.Harbin
Binzhou 2000000 2000000.
2000000.00
Brewery Co. .00 00
Ltd.Su Wine
Group
Jiangsu 300000000 300000
Wealth 0.00 0000.00
Management
Co. Ltd.Jiangsu Shiyang
Network 5460000
5460000.00
Technology .00
Co. Ltd.Guizhou
943300000.943300
Guijiu Co.
00000.00
Ltd.Jiangsu
Yanghe
Weiketang 300000.0
300000.00
Network 0
Technology
Co. Ltd.
456880000.456880
YANGHE CHILE
00000.00
223SPA
Jiangsu Yanghe
Investment 150000000 150000
Management 0.00 0000.00
Co. Ltd.Yanghe Hong
18000000.0180000
Kong Liquor
000.00
Co. Ltd.Jiangsu
Jiushang
510000
Internet 5100000.00
0.00
Technology Co.LTD
Tibet Earth
Third Pole 204000000. 204000
Liquor Industry 00 000.00
Co. Ltd
Jiangsu Yanghe
Dream
120600000120600
Investment
0.000000.00
Management
Co. Ltd
Suqian City
500000
Sujiu Logistics 5000000.00
0.00
Co. Ltd.Jiangsu Blue
Sky Drink and
1000000100000
Catering
0.0000.00
Management
Co. Ltd.
9524901371000000576000020000009527142000000.
Total
8.940.00.00.001378.9400
(2) Investment in joint ventures and associates
Unit: CNY
224Current period changes
Opening
balance Additi Reduc Invest Adjust
of onal tion of ment ment Closing
impairm gains for Proinvest invest
Opening balance ent or other Declar visi Closing
ment ment
balance provision losses compr Other
of
ation on balance
Investee provisio
(book recog ehensi equity of cash for Oth (book
n for
value) nized ve chang divide im ers value) impair
under income es nds or pai ment
the profits rm
equity ent
meth
od
1.Joint ventures
2.Associates
Suqian
-
Yanghe 530019 52166
8352
Guibinguan 9.49 75.65 3.84
Co. Ltd.-
53001952166
Subtotal 8352
9.4975.65
3.84
-
53001952166
Total 8352
9.4975.65
3.84
The recoverable amount is determined as the net of fair value less costs of disposal.□Applicable □N/A
The recoverable amount is determined by the present value of estimated future cash flows
□Applicable □N/A
Reasons for differences between the foregoing information and information used for impairment
testing in previous years or external information that is clearly inconsistent with the information.Reasons for differences between the information used in the company's impairment tests in
previous years and the actual situation in the current year that are clearly inconsistent.Other note:
4. Operating revenue and cost of sales
Unit: CNY
Current period amount Previous period amount
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Primary
12502235509.116605640905.2912784912675.466545812647.88
business
Other business 349985734.29 234734828.62 427288188.77 320812482.16
Total 12852221243.40 6840375733.91 13212200864.23 6866625130.04
Information relating to revenue
Unit: CNY
Segment 1 Segment 2 Current period amount Total
Category Operatin .Operatin
of Contra Cost of Cost of .Operating Cost of Operating g g Cost of sales
sales sales revenue sales revenue
revenue revenue
Commodi
ty type
Including
:
1250223 660564 1250223 66056409liquor
5509.110905.295509.1105.29
Other 3499857 234734 3499857 23473482
22534.29828.6234.298.62
By
operating
regions
Including
:
Type of
market
or
customer
Including
:
Type of
contract
Including
:
By the
time of
commodi
ty
transfer
Including
:
By the
contract
time
Including
:
By the
selling
channel
Including
:
1285222684037128522268403757
Total
1243.405733.911243.4033.91
Information relating to performance obligations
N/A
Information related to the transaction prices allocated to remaining performance obligations:
The amount of revenue corresponding to performance obligations under contracts that were signed
but not yet fulfilled or partially fulfilled as of the end of this reporting period is CNY
13821314226.37. Out of this amount CNY 13821314226.37 is expected to be recognized as
revenue in 2025 with the remaining amount to be recognized in subsequent years.
5. Investment income
Unit: CNY
Item Current period amount Previous period amount
Investment income from long-term
equity investments under the cost 6139967261.75 6398636365.50
method
Investment income from long-term
equity investments under the equity -83523.84 300199.49
method
226Investment income from disposal of
134177.91
financial assets held for trading
Investment income from financial assets
held for trading during the holding 7746336.16 6057651.32
period
Investment income from disposal of
132721212.85178521367.26
financial assets held for trading
Termination of recognition of financial
assets measured at amortized cost and -14336475.80 -27758655.92
the related gains
Total 6266148989.03 6555756927.65
XVIII. Supplementary information
1. Detailed statement of non-recurring profits and losses
□Applicable □N/A
Unit: CNY
Item Amount Note
Profit or loss from disposal of
-40249265.21
non- current assets
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 50445321.61
Company and given at a fixed amount or
quantity in accordance with the state's
uniform standards)
In addition to the effective hedging
business related to the company's
normal business operations changes in
fair value from holding financial assets
held for trading derivative financial
assets financial liabilities held for
trading fair value changes and -242790641.63
investment income from disposal of
financial assets held for trading and
derivative financial assets financial
liabilities held for trading derivative
financial liabilities and other debt
investments
The cost of investments in subsidiaries
associates and joint ventures acquired
by an enterprise is less than its share of
13641150.48
the gain arising from the fair value of the
identifiable net assets of the investee at
the time of acquisition.Other non-operating income and
expense except the items mentioned 6241035.85
above
Less: Effect of income tax -51001648.61
Effect of minority equity 136290.94
Total -161847041.23 --
Specific details of other profit and loss items that conform to the definition of non-recurring profits
and losses
227□Applicable □N/A
The Company does not have any Specific details of other profit and loss items that conform to the
definition of non-recurring profits and losses
Statement for extraordinary gain and loss items that the Company defines according to the
definition in Explanatory Announcement of Information Disclosure of Company that Issues
Securities publicly No.1- Extraordinary Gain and Loss and definition of recurrent gain and loss
items that are listed as extraordinary gain and loss in the Explanatory Announcement of
Information Disclosure of Company that Issues Securities publicly NO. 1- Extraordinary Gain and
Loss:
□Applicable □N/A
2. Return on equity and earnings per share
EPS (CNY/Share)
Profit during reporting period Weighted average ROE
Basic EPS Diluted EPS
Net profits attributable
to ordinary
12.07%4.42994.4299
shareholders of the
Company
Net profits attributable
to ordinary
shareholders of the
Company after 12.37% 4.5373 4.5373
deduction of
extraordinary gain and
loss
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable □N/A
(2) Difference of the net profit and net assets disclosed in financial report under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable □N/A
(3) Explain the reasons for differences in accounting data under domestic and foreign accounting
standards and where the data audited by an overseas audit institution are subject to adjustment
for difference indicate the name of the overseas institution.
228
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